FHA May Ease Seller Concession Cap

Many in the real estate industry were concerned that a change announced last year to the maximum seller contributions allowed for Federal Housing Administration-insured loans could cause more deals to fall apart. The FHA announced last year that it would cut seller contributions from 6 percent to 3 percent for purchases using FHA-insured loans. Seller concessions, such as seller assistance to buyers in closing costs, can play a big part in FHA-financed home sales and in closing deals, real estate agents say.

Inman News reports that the FHA may be rethinking its seller contribution cap and will likely announce changes to its policy in April.

“Rather than an across-the-board 3 percent ceiling on all FHA mortgages, the new policy would permit higher seller contributions, probably between 4 and 5 percent, on smaller loan balances,” Inman News reports. “Meanwhile, the 3 percent cap would be mandatory on all loan amounts above some yet-to-be-specified limit.”

Inman News also speculates that a dollar ceiling on seller concessions might be announced, like a maximum cap of $6,000 instead of a percentage.

“The FHA is what’s keeping us alive,” Steve A. Brown, executive vice president of Memphis-based Crye-Leike, told Inman News. “If they do a 3 percent across-the-board limit, that would knock out a lot of our sales. But if they go with some graduated deal tied into lower-priced homes, then we should be all right.”

Source: “FHA Concessions on Seller Concessions?” Inman News (Jan. 25, 2012)

Winterize Home Maintenance

It may be cold outside, but it’s no time hibernate when it comes to home maintenance. Have you ever wondered how some friends or neighbors live in older homes that are still in good working order? This isn’t just a lucky coincidence.

Houses require careful attention, especially in the Winter, in order to keep in good working order. If you take the extra time each season to check your home over and perform the necessary maintenance, then you’ll be sure to have a sturdy home for years to come.

First, it’s important to keep your family safe and warm when it’s chilly outside. Do a twice yearly check on your windows and doors for air leaks. Under most circumstances you can easily fix these with caulking.

Are your windows in need of a more energy efficient upgrade? Have you thought about installing storm windows and doors? These are important questions to ask yourself. If you have older, non-insulated windows it may be time to replace them. You can even deduct some of these upgrades from your incomes taxes!

If you find leaks, then take the necessary action to fix them pronto. You may find that some doors continue to leak air even after you’ve made them “air-tight.” This means it is time for Plan B. Storm doors work wonders for keeping out the elements. Many stores also sell draft blockers that sit at the bottom of you doors.

Next, schedule a time to service your heating system. Central heat and air units need to be checked over. When a unit is well-serviced it will save you fuel and thus money.

If your home is older, then you might consider a trip to the attic to check ductwork. You never know what critter has chewed through ducts or what parts have become disconnected.

While you’re in the attic take a hard look at the state of your insulation. Is it adequate for your region? Is ductwork well-insulated? Older homes can sometimes be completely devoid of attic insulation. If so then it’s time to bring in some reinforcements. Insulation is relatively inexpensive and can save you big in the long run.

Do you heat using a wood burning fireplace? Is it imperative for your safety to have your chimney cleaned and checked multiple times during the Winter season if you use your fireplace regularly. Chimney fires happen all the time.

There are smaller issues to attend to as well. Did you know that your ceiling fans have two settings for the blades? You want to be sure to reverse your fan in the Winter so that it pushes the hot air (which naturally rises) back down into your living spaces.

Gutters become full of leaves and other debris. If you fail to clean your gutters they can begin to hold water which can eventually rot away the siding and roof of your home.

When the weather drops below freezing you need to keep your pipes from freezing. Let faucets drip and unhook all outdoor hoses.

Finally, every responsible homeowner is stocked with the proper tools. Keep sand or salt on hand to de-ice slipper steps and sidewalks. Invest in a heavy duty snow shovel or snow blower.

Your home is your biggest asset and literally keeps a roof over your head. Be kind and take care even during the chilly Winter months.

by Carla Hill

For more on this an other hot Real Estate Topics also check out this great resource.

http://realtytimes.com/

Do you have to be hard on yourself in order to succeed in your Real Estate Marketing Strategies?

When I coach real estate agents in creating their multiple six-figure incomes, I often hear this misconception: “I need to be hard on myself in order to succeed.”

When I ask about the origin of this belief, I often receive stories of being conditioned by well-meaning teachers and parents in a controlling and rigid way. Since we learn to treat ourselves we were treated, my clients are just carrying on the legacy because they don’t know how else to motivate themselves in order to succeed.

Unfortunately, however, their strategy actually works against them. Studies have shown that when we are hard on ourselves, and beat ourselves up, we actually lower our energy. This leads to decreased motivation and eventually burnout.

So what is the answer? If you’re not going to be hard on yourself, then how do you motivate yourself to succeed in your Real Estate Marketing Strategies?

Fortunately, there is a positive solution. Research indicates that if we choose a positive and encouraging way to get ourselves focused and on track; that this can be a very efficient motivation technique.

So here are some tips on how to change your motivational strategy for Real Estate Marketing.

1. Awareness – Start becoming aware of the words you say to yourself every day in order to get up to speed. Do they have a positive or negative tone? Do they build you up or tear you down?
2. Observe – Observe your energy when you hear these words. Does your energy increase or decrease? If you have an inner tyrant, do you also have an inner rebel?
3. Intervene – when you become aware of how often and you are being hard on yourself, it’s time to intervene. The best way to break into your own thoughts is to use the “Stop Technique.”

Here’s how it goes:

• Say the word “STOP” when negative voices arises in you
• Then take a deep breath interrupt the pattern
• Finally, put in a positive new thought

What kind of positive new thoughts should you install in your Real Estate Marketing Strategies? I recommend thoughts of positive self talk, such as:

• I now motivate myself in a loving and encouraging way
• I inspire myself with the enthusiasm and energy
• I treat myself with kindness and respect

Create your own phrases of self-talk. They can be as simple as saying to yourself: “Good job” or “You are on the right track.”

When you start treating yourself with more respect, you will notice your energy level increase. Use that increased energy to prioritize your day, and implement what you planned.

Remember, you don’t need to work harder; you just need to work smarter in 2012 on your Real Estate Marketing.

Relying On An Agent

The latest NAR Profile of Home Buyers and Sellers showed a growing trend among recent buyers.

The latest figures show that 89 percent of buyers purchased their home with the help of a real estate or broker. This is a sharp increase from a decade ago in 2001, when only 69 percent of buyers enlisted the help of an agent or broker.

Why do today’s buyers buyers choose to work with an agent? Let’s look at just a few of the many reasons an agent can be your biggest ally.

First, agents are licensed professionals, which means they had to complete coursework and pass an exam in order to become and agent. They have the education and experience to help you navigate what will be one of the biggest purchases of your life.

They also have access to a wide range of properties and can guide you to those that are the best fit for you, which can save you time and energy. If you are unsure what type of property you’re interest in, an agent can help explain the pros and cons of things such as condo life versus single-family detached living.

Where are the up and coming neighborhoods? Which areas are more walkable or have access to better schools? These are all issues an agent deals with daily.

They can also ease the burden of buying by simplifying the process. They set up showings, drive you to appointments if needed, and help you handle the intricacies of negotiations.

Today’s market also presents challenges that simply weren’t present or didn’t dominate the market a decade ago. Buyers are faced with some great deals, but through some complicated channels, such as short sale or foreclosure. How does one handle these sort of contracts? Your agent or broker will know.

According to the NAR, “More than ever home buyers are relying on real estate agents and brokers to help them with their home purchase regardless of whether the home they are buying is a foreclosure, short sale, or even a FSBO sale because they need a real estate agent to help them through the process.”

Finally, buyers are unsure if now is really a good time to buy. They need to rely on someone with local market knowledge. Is this a good neighbor to invest in? Are prices still dropping in this community? How long do homes take to sell? What is the median selling price? Buyers want the best deal out there.

The 2011 Profile found that more buyers are opting against dual agency, where the agent represents both the buyer and seller. This could signal that today’s buyers are very cautious about getting into the market. While a dual agent isn’t supposed to harbor any bias, buyers now want to be extra sure they are getting the best deal possible. In fact, “60 percent of recent buyers had an oral or written arrangement with the real estate agent or broker so that the buyer’s agent only represented the buyer and not the seller.”

If you are considering entering buying a home this year, be sure to strongly consider using a real estate agent. They could be your biggest ally.