Green Appliances

Choosing the right appliances for a new home or a remodel is easy if you apply a few simple steps. Do you know how you use the appliances you currently have? How many loads of laundry do you do a week? What kinds of laundry loads- mostly utilitarian clothing on normal cycles or would you benefit from a machine that accommodated handwashing and delicates? There are machines designed for energy efficiency like front loaders as well as top loaders that act as front loaders. Do you do a lot of dry cleaning? One way to help the environment and your wallet is to buy a washer that will handwash and a dryer unit that will dry flat items and those on hangers. How many dishwasher loads do you do? Are you often running a half full machine or do you have trouble fitting everything in one load? There are dishwashers that have 2 drawers you can run separately as well as considering adding a second drawer- type dishwasher in addition to a standard unit. How about the oven? Large family and lots of casseroles? There are a variety of double ovens available from two unit wall ovens to stoves that are double. If you are a gourmet, consider dual fuel which allows gas cooktop and electric oven for maximum efficiency. And keep in mind adding a convection oven for quicker cooking, energy efficiency and improved baked goods. Microwaves come with this option as well which can be a huge energy savings. The refrigerator needs special consideration. If you entertain a lot you might appreciate a armoire style which gives maximum shelf space to accommodate large platters. The freezer on the bottom of these units can also be larger and more efficient use of space. Remember to look for the energy star certification. Appliances use an estimated 20% of your total energy use for your home so energy efficient appliances can make a huge impact on your costs and the environment.

Prejudice against Pregnancy

The news coming from the mortgage industry seems to change on a daily basis.  Mortgage applications are on the rise; mostly due to refinancing of existing loans.  Mortgage profits are down, due to the rise in costs for appraisals and documentation for underwriting.  The mortgage industry is in a tizzy trying to comply with regulations that seem to change on an hourly basis.  The latest twist in lending is this: if you are a pregnant woman on maternity leave your income will not be considered as qualifying toward a loan.  In the past, if you had a letter from your employer guaranteeing your job upon the end of your leave, that was sufficient to secure your loan. Most Californians need two incomes to make the qualifying ratios for a home mortgage.  Eliminating your pregnant wife's income could eliminate your chances of obtaining a mortgage.  Lenders are running scared and rightly so.  First they are blamed for the lenient policies of the past which lead us to the sub prime lending debacle, when in fact, it was government policy that strongly encouraged them to enable everyone who wanted one to get a loan.  Now HUD has announced that they will investigate this discriminatory trend. Why do they require an "investigation"?  Why don't they just notify lenders that they will not prosecute them if a loan made to a pregnant woman who never returns to her job defaults?  Then lenders will return to moderate lending policies and everyone will benefit.

Repaint and Refresh

It is the standard advice from a sales professional to paint a home in neutral colors to facilitate an easy resale.  But what about your enjoyment of your home while you live there?  Paint is a quick and inexpensive way to update your home and it is easily changed. There are buyers who find  "Builder Beige" cold and off-putting.  So if you would like to know what the key color trends will be in 2011, here are some predictions covered in  Benjamin Moore's ColorPulse web conference:
Farm- colors influenced by nature.  Whites will be creamier, butter yellows and green will remain popular.  Earthy brown will replace cooler gray tones as the neutral.
Order- a sort of return to minimalism with strong graphic design in monochrome, primaries, or black and white with a hit of color.
Escape- influenced by fantasy and lush digital worlds.  Satin, pearl, frosty finishes in fairytale or dreamy shades.Think pink!
Tribe- rich spicy tones of orange, berry, brown and  bronze metallic. Texture in textiles and tribal patterns will influence this trend.
So if you are looking for a home improvement project to tackle consider refreshing your home with fresh paint.

Conservation in Your Backyard

The lack of water is a constant dilemma for California residents, as it is for many other states.  Our Mediterranean climate may be beautiful but it does not provide sufficient moisture to accommodate lush landscapes.  In many parts of our region, the terrain is considered semi-arid.  When we try to impose traditional ideas and standards of landscape to our climate we cause water usage to soar.  Xeriscaping, is the method of choosing drought tolerant plants suited to the local climate, along with garden design that captures environmental water.  Have you lost plants from water loss when watering restrictions are in place?  How much did that cost, not only in dollars but time and effort?  Some plants that are frequently used for xeriscaping are agave, cactus, lavender, juniper, sedum, and thyme.  Plants that are indigenous to our area would be ideal.  Local garden centers are a good resource as are several websites including http://xeriscapelandscaping.org.  Mulching and grading of soil are also used for rainfall retention.  So if your neighbor takes a backhoe to his front yard and creates a desert landscape, he just may be insuring you have enough water for your bubble bath tonight.

4 Trillion Upside Down

Bloomberg reports that American homeowners are 4 trillion dollars in the hole.  They took figures from the Federal Reserve on the outstanding mortgages versus market values to arrive at that number.  How will the housing market recover?  A large obstacle is the National Appraisal Protocol Policy which has established guidelines for appraisers that makes it practically impossible for values to begin to recover.  When an appraiser is limited to considering comparable properties for a sale that have closed in the last 3 months only, how can values creep up?  REO's now outnumber New Home Sales 19.5% as compare to 11%.  Does an REO property reasonably set the value for a neighborhood?  Resales account for 69.5% of sales but included in that figure are Short Sales which NAR  (National Association of REALTORS) reports count for  most of the homes closing today.  Short Sales are REO's waiting to happen and are by nature sold at fire sale pricing.  How can this be an accurate portrayal of true value?

Will Short Sale Incentives Succeed?

An interesting article in the current issue of DS ( default servicing) News explores the dilemma of  secondary lender capitulation in the short sale process.  Many short sales have been derailed by the second lien holder refusing to cooperate and agree to take little or nothing in the impending deal.  Under the Treasury Department's HAFA program there are a host of financial incentives for borrowers, servicers, and investors. But are the incentives for secondary lien holders enough to convince them to cooperate in a short sale scenario?  The secondary lien holder has other avenues for pursuing borrowers for the debt owed.  Statistics show that 52.2 percent of all second liens were held by Bank of America, Wells Fargo, JP Morgan Chase, and Citigroup as of the fourth quarter of 2009.  Do these names sound familiar?  These are our primary sources here in California.  How many borrowers in our area can buy a home without a second mortgage?  If these secondary lenders can pursue debtors, can HAFA incentives sweeten the deal enough?  In a non-HAFA transaction, Realtors, buyers, and even the primary lien holder can contribute to the second's portion of the deal.  But the usual result of a secondary lien holder's refusal or foot dragging is a foreclosure.  And in foreclosure nobody wins.

Short Sale Fraud?

The government program HAFA has strict guidelines concerning buyer responsibilities in a Short Sale.  As mentioned in our blog yesterday, the buyer can have no personal connection to the seller or lender in the transaction.  In addition, the buyer may not receive any funds from the transaction so no seller concessions can be demanded.  Lastly, the buyer cannot sell the property for 90 days after closing.. This is designed to prevent "flipping" of property.  These programs are aimed at homeowners, not investors.  There has been some issue of fraud being reported where a property is resold at a higher price a mere 2 months after closing as a Short Sale.  However, in these examples it is likely that the property was distressed and sold at a reduced rate.  The investor poured time and money into rehabilitating the property and then sold it at market value.  Should investors be able to take advantage of the current market?  Holding a property for the full 3 month time period could eliminate all the profit.  Improving properties and getting higher values for them increases the property values in a community which is good for everyone and is key to the housing recovery.  What do you think?

More info on Short Sales and HAFA

HAFA, the government program that governs guidelines for Short Sales, has lots of stipulations and conditions for qualification.  One of the stipulations to keep in mind is that any transaction must be "arm's length".  That means that none of the parties involved may have close personal relationships.  Even if your potential buyer is a business associate; if you are known to be close in a way that might be construed as "personal" it may violate the rules of HAFA to enter into a contract with that individual.  True " arm's length" transactions in real estate mean that the playing field is level and no one has any unfair advantages.  Personal relationships, where meaningful information could be inadvertently conveyed are to be avoided.

Jumbo Loans Popular Again!

Rates for a 30- year fixed Jumbo loan have dropped more than a percent in just a year.  Current rates are the lowest they've been since 2003.  A Jumbo loan is one that is not backed by Fannie Mae or Freddie Mac where the loan amount exceeds $729,750.  In California,  that makes up a large percentage of mortgages.  Rates have gotten competitive and because of this, applications have gone up..  Buyers who qualify for Jumbo loans have pristine credit therefore these loans may be considered low risk.  Before the financial crisis,these loans were sold on the secondary market freeing up more capital to lend more money to more buyers.  Afterward, these loans seemed risky and government insured loans were where underwriters felt secure.  Private lenders were stuck holding these loans in their portfolios and the luxury housing market ground to a halt.  Now the luxury market is moving again and Jumbo loans may lead the way to a housing recovery in California.

Which way is up?

The latest financial news is that American FICO scores (your personal credit rating) are careening downwards.  Current statistics show that 25 % of Americans have a FICO score below 599!  That's about 33.4 million people.  The correlation between these figures and 26 million unemployed cannot be denied.  What will happen to the people who cannot get home loans, car loans, personal consumer loans, or small business loans?  What impact will this have on the communities they live in?  No man is an island and we need to be concerned because the health of our economy depends on the individual consumer.  Prior to the financial meltdown, lenders were too lenient in their credit requirements.  Now it seems, things have swung too far the other way.  Should an individual who defaulted on a mortgage due to job loss  be evaluated on the same scale as someone who made a strategic decision to allow foreclosure?  We've seen many investors do just that very thing.  We think new guidelines need to be in place to allow consumers to be judged individually and our economic policies to swing back to a middle ground.

Recoup Taxpayer Losses

The Federal Housing Finance Agency issued 64 subpoenas to Wall Street Firms requesting documents and files pertaining to the sale of mortgage backed securities to Fannie Mae and Freddie Mac.   Government regulators are looking for false statements or omissions that might have led to the sales of these securities being fraudulent.  Fannie Mae and Freddie Mac had tried to get this information but were unsuccessful. Perhaps the government can recoup some of the $145 billion dollars lost by Fannie and Freddie in the loan debacle.  Let's not forget that these two government controlled companies are culpable in this mess for relaxing the guidelines used in procuring home loans.  Strict guidelines that determine affordability and consumer suitability protect everyone, especially the consumer.

The Grass is Greener than you think

What do we do with the outpouring of negativity coming at us from the media and colleagues alike?  Just because so called experts predict doom and gloom does that mean we give up and declare defeat before we've begun?  How about we look at existing conditions as challenges to be overcome with a change in attitude and tactics?
  That is what the city of Philadelphia did at the beginning of 2007 when the real estate market faltered and foreclosures flooded the city.  The city bought foreclosed sites, bulldozed them, and built public parks and green spaces.  Expensive? Not really.  The city's return on their investment was substantial.  Property values in the neighborhoods surrounding these parks increased and the city collected more taxes on the properties.  Homeowners benefited because the rise in home prices more than compensated for the higher tax rate.  Additionally, they benefited from a more beautified environment and the recreational aspects of the parks.
How are you going to face the challenges of a changing market?  Opportunity is everywhere- you just have to look.

The Future is Bright

One of the best new developments in lighting is the availability of LED ( light- emitting diodes) light bulbs. If you are concerned with the environment and your wallet, you may be searching for alternatives to traditional incandescent bulbs.  There is talk of banning the manufacture of incandescent bulbs in the future so the lighting industry has been working on new products to bring to the marketplace.  You may already have replaced your standard bulbs with CFL ( fluorescent).  CFL's are economical but they shatter easily and they contain mercury, which leaches into the ground if dumped in a landfill.  LED's are shatterproof, run cool to the touch and contain no hazardous chemicals.  They come in all the varieties of standard bulbs for every application.  They are more costly in initial outlay but the savings is tremendous.
  You can replace a 75 to 100 watt bulb with an LED with the equivalent light output that only consumes 3 to 13 watts!  LED light bulbs last upwards of 50,000 hours and consume very little electricity.  You will definitely notice an difference in your monthly bill.  A 7 watt LED bulb ( which replaces a 65 watt incandescent) will cost $2.00 a year to run left on 8 hours a day and last 10 years versus a standard bulb which will be replaced 2 to 3 times a year  and cost $20.00 to run.
LED is the best GREEN alternative in lighting today.

Homeownership - more affordable than ever

The latest economic news can seem bleak.  Experts and pundits suggest that the recovery may be slower than anticipated.  Job growth, the deficit, unemployment figures- all contribute to the general feeling of malaise. Guess what? There has never been a better time to buy a home.  Due to all the factors at play, interest rates are at record lows and home prices have not been this attractive in a long time.  Sellers are more motivated than ever and great concessions can be snagged by the savvy buyer.  The first time home buyer tax credit may be a distant memory but it has made it's impact on the market.  Sellers are keenly aware that they may have to make up for that loss. Tax incentives are still in play and there are even new loan products available, especially for distressed properties.  What are you waiting for?  Interest rates and home values to begin their inevitable climb upward?  If a new home is in your future your future may be right now.

Senior Retirement Community

One of the largest growing segments of property development is the 55+ senior community.  As the population ages, these communities grow in popularity and importance.  In Camarillo, Leisure Village is an established and desired destination for many retirees.  There are so many benefits to buying in this community including transportation services, recreational facilities and activities, gated security and exterior maintenance.
  Many younger Boomers are investing early, buying a desirable unit that they envision as a retirement home at a reduced market price.  Many seniors are eager to rent rather than tie up valuable liquid assets in a down payment.  RE/MAX Integrity has a brand new listing in Leisure Village in Camarillo.  This unit has one of the most sought after features in this community- a gorgeous mountain view.  A popular Del Mar model that has two bedrooms, two baths, and a one car garage listed at $254,000.  Contact our office for more information at (805) 482-3640.

Welcome to our innagural Blog as REMAX Integrity

Traditionally, local real estate offices that are not franchised dominate the local market.  This model has altered as the economic climate has changed and many offices struggle to continue and prosper.  I began my real estate career in 1986 and opened my first brokerage in 1995.  I have seen all manner of markets come and go; the good, the bad, and the ugly.  I have been fortunate to have a solid foundation that has seen me through troubled times and allowed my business to continue to grow.  Recently, I was approached by REMAX and offered the opportunity to re-open in a new location as part of the international REMAX corporation.  I knew this was an exciting chance to offer my clients not only my years of local expertise but also the power of an international brand.  Our office is poised at the beginning of what we hope is a long and successful journey.  We have already attracted some illustrious agents to our team.  There is much to be said for the REMAX  business model combined with an intimate atmosphere and personal attention.  We here at REMAX Integrity are excited to bring the best of the best to our community.