Buyers Want Cozy, Connected Kitchens

The kitchen isn’t just for cooking. Today it’s used as a gathering place for families, a central work space, and an open area to pursue craft projects or entertain.
"Living room and family room activities are merging into the kitchen, and it’s changing how kitchens look," says Susan Serra, a home designer in Huntington, N.Y., who specializes in kitchens. "Particularly as homes are getting smaller, we’re using the kitchen for much more than we have in the past. Home owners want a more versatile floor plan."

Now home owners are saying goodbye to walls between the kitchen and the living room. Kitchens also are being designed in a less utilitarian way with larger windows, fewer cabinets, and softer lighting.

Install a kitchen island. Kitchen islands not only have functional benefits but also provide space for entertaining, informal dining, and extra storage. If your listing doesn’t have one, consider a portable island, which can range from a butcher block to a breakfast table with bar stools.

Look for comfy chairs. Skip the typical wooden stools for an upholstered bar stool with a back, recommends Whittenberger. Switch out traditional chairs around the kitchen table for wing chairs, a love seat, or even an upholstered bench.
Soften the light. Use accent lights and sconces, usually associated with a hallway or den, Serra says. Numerous small lamps also will create a softer effect. Whittenberger suggests hanging a chandelier or light fixture over the kitchen island.

Add storage. Buyers are always drawn to extra storage. Add a standalone cabinet, cupboard, buffet, or wall shelving. Stage cabinets with craft supplies to show that the space can serve many purposes.

Display quality pieces. Take the artwork you may have once reserved for the living room and display it in the kitchen. Accessorize shelves with collectibles or books.

Make sure the basics are strong. "If the bones of the kitchen aren’t strong, fix those first," Whittenberger says. "The condition of countertops, hardware, flooring, appliances, and cabinets aren’t going to be covered up by creating a cozy atmosphere."
Source: Melissa Dittmann Tracey, REALTOR® magazine. October 2010

Short Sales Tips for Sellers

If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

The following conditions qualify a seller for a Short Sale:
.Your property is worth less than the total mortgage you owe on it.
.You have a financial hardship, such as a job loss or major medical bills.
.You have contacted your lender and it is willing to entertain a short sale.

Although a refinancing programs may be available, banks are too busy and may not offer a proper payment method that is convenient to the seller's particular situation. It may turned out to be a stalling process to an inevitably Short Sale.

The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process.

Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include:

A hardship letter detailing your financial situation and why you need the short sale
1)A copy of the purchase contract and listing agreement
2)Proof of your income and assets
3)Copies of your federal income tax returns for the past two years

Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months.

You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale.
Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.
Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit less than foreclosure and bankruptcy. Source from OFFICIAL MAGAZINE OF THE NATIONAL ASSOCIATION OF REALTORS®
September 6,2010

Market Indicators

These are some housing indicators that say where the market is right now.
Housing Market Indicators:

Florida existing home sales:
(month-to-previous-year comparison)15%
Florida existing condo sales:
(month-to-previous-year comparison)33%
Florida existing home median price:$143,400
Florida existing condo median price: $95,000
Florida consumer confidence: 65
National existing home sales:
(month-to-previous-month comparison; all housing types) -5.1%
National existing home median price $183,700
National (Freddie Mac) mortgage rate
(all housing types) 4.56%

Source:Florida Realtors® Headquarters

Lender Checklist: What You Need for a Mortgage

• W-2 forms — or business tax return forms if you're self-employed — for the last two or three years for everyperson signing the loan.
  
• Copies of at least one pay stub for each person signing the loan.
  Account numbers of all your credit cards and the amounts for any outstanding balances.
  
• Copies of two to four months of bank or credit union statements for both checking and savingsaccounts.
  
• Lender, loan number, and amount owed on other installment loans, such as student loans andcar loans.
  
• Addresses where you’ve lived for the last five to seven years, with names of landlords if appropriate.
  
• Copies of brokerage(investments) account statements for two to four months, as well as a list of any other major assets ofvalue, such as a boat, RV, or stocks or bonds not held in a brokerage account.
  
• Copies of your most recent 401(k) or other retirement account statement.
  
• Documentation to verify additional income, such as child support or a pension.
  
• Copies of personal tax forms for the last two to three years.

Source: Realtor ® Magazine, March 6,2010

Landscaping Tricks that will WOW most buyers

In today's market, sellers have to work harder to persuade buyers that their property is worth the bite.

According to Landscape designer Michael Glassman has cooked up a recipe for guaranteed curb appeal.

1. Add splashes of color. With every changing season, a landscape should provide a new display of colors, textures, and fragrances. "It’s best to use one or two and repeat them," Glassman says. Example: white iceberg roses that bloom in spring, summer, and fall as a backdrop; in front, a contrasting punch of purple salvia or lavender that will flower at the same time; and as an accent, a crape myrtle tree that provides changing leaf colors in fall and interesting branches come winter.

2. Size trees and shrubs to scale. These should be planted in the right scale for the house so that they don’t block windows, doors, and other architectural features on the home’s facade. A large two-story house can handle a redwood, Chinese pistache, sycamore, or scarlet oak, but a one-story cottage is better paired with a flowering cherry, crabapple, or eastern redbud. Too many trees cast too much shadow and cause potential buyers to worry about maintenance and costs.

3. Maintain a perfect lawn. A velvety green lawn demonstrates tender loving care, so be sure sellers’ homes don’t have brown spots. Some rocks, pebbles, boulders, drought-tolerant plants, and ornamental grasses will generate more kudos, especially in drought areas.

4. Light up the outside. Good illumination allows buyers to see a home at night and adds drama. Sellers should use low-voltage lamps to highlight branches of specimen trees, a front door, walk, and corners of the house. But less is better. The yard shouldn’t resemble an airport runway.

5. Let them hear the water. The sound of water appeals to buyers, and you shouldn’t just reserve this for your backyard. A small fountain accented with rocks provides a pleasant gurgling sound, blocks street noise, and is affordable.

6. Use decorative architectural elements. A new mailbox, planted window boxes, and a low fence wrapped in potato vines add cachet, particularly during winter months when fewer plants blossom. Colors should complement the landscape and home. Just don’t overdo it: Too much can seem like kitschy lawn ornaments.

Source: REALTOR® magazine by Barbara Ballinger
Source: Michael Glassman, landscape designer, Michael Glassman and Associates, Sacramento, Calif., www.michaelglassman.com

Tax Deductions when owning a house

At tax time, your house is not simply a home: It's also a tax deduction.
You get to deduct:

• Your property taxes. And if you bought the home in 2009, you may be able to deduct more property taxes than you think. Don’t forget to include taxes you may have reimbursed the seller for—taxes the seller had already paid before you took ownership.
• You won't get a 1098 report listing these taxes. Instead, that amount will be shown on the settlement sheet.
  
• Property taxes for taxpayers who don't itemize. You can increase your 2009 standard deduction by up to $500 for real estate taxes paid in 2009 or by up to $1,000 for real estate taxes paid in 2009 if you are married and file jointly.
  
• The mortgage interest on your primary residence, as well as on a second residence. (There are limits, but relatively few taxpayers are affected.)
  
• The interest on up to $100,000 borrowed on a home equity loan or home equity line of credit, regardless of the reason for the loan.
  
• Points that you paid when you purchased the house (or those that you convinced the seller to pay for you).
  
• The premiums paid for Private Mortgage Insurance (PMI) in 2009, but only for policies issued after 2006. (The right to this deduction disappears as Adjusted Gross Income rises from $100,000 to $110,000 (or $50,000 to $55,000 for those who use married filing separately status.)
  
• Home improvements required for medical care.

Call your Accountant for more details or your Tax Return agency.

Source: TurboTax for 2009

Sellers Need to List their House NOW!

Daily Real Estate News January 6, 2010

Sellers Should List Homes Early Selling a home in the dead of winter might seem ill-advised, particularly considering the state of the economy, but some experts think that making the decision to wait until spring to list the property could be a mistake.
Government incentives will likely have a big impact in 2010, with many buyers determined to sign a contract before the April 30 tax credit deadline.“This year, we're anticipating sales will peak earlier,” says Nicole Hall, editor in chief of Lendingtree.com, an online mortgage comparison service. “The best time to get your house on the market will be February or early March, and maybe even earlier if you want to avoid competition.”Traffic on real estate Web sites begins to rise right after the New Year, says Ken Shuman, spokesman for real estate Web site Trulia.com. Source: Forbes.com, Francesca Levy (12/24/2009)