HouseLogic Offers Smart Advice to Owners
The NATIONAL ASSOCIATION of REALTORS® this week launched HouseLogic, a new, comprehensive consumer Web site designed to help home owners make smart decisions to maintain, protect, and increase the value of their homes. HouseLogic will help consumers take responsible actions pertaining to what is likely the largest investment of their lives.

“Backed by the resources and industry insights of NAR and its REALTOR® members, HouseLogic will engage and involve consumers throughout the lifecycle of homeownership,” said NAR President Vicki Cox Golder. “It makes sense that, as the first, best source for real estate information, NAR should collaborate with today’s consumers to help them make the most out of owning a home. HouseLogic will help us do that.”

The free Web site helps home owners plan and organize their home projects and provides timely articles and news; home improvement advice and how-to’s; and information about taxes, home finances and insurance.

“Unlike other homeownership Web sites, HouseLogic helps consumers view their home through a financial lens and make smart, informed home improvement investment decisions,” said Golder. “Families can set goals for saving money on their home or increasing its value, and easily track the progress they are making on those goals.”

Registered users can save relevant information, create to-do lists, and set project reminders. The Web site can also be customized for individual owners depending on how handy or ambitious they are regarding home projects; how much money they want to spend or save; where they live; and their priorities, such as increasing the value of their home or improving their neighborhood.

HouseLogic also empowers home owners who want to get more actively engaged in shaping community life, advocating on neighborhood and homeownership issues that matter most to them. The site provides users with the tools and know-how to effect change, such as establishing a neighborhood watch program, building a community playground, or participating in city or county planning efforts.

“For more than 100 years REALTORS® have been bringing America home,” said Golder. “HouseLogic takes owning a home to the next level, partnering with consumers to truly help people build their futures through homeownership.”

From all of us at Prudential Premier Real Estate here in Fargo, ND, we hope this information helps.  And remember, we are only a phone call or click away from answers to your questions, check us out at www.prudentialpremierrealestate.com 24 hours a day.

More to come, happy reading, Daryl

 I came across this article and as I looked out the window of my office here in Fargo, ND at the 5 foot high snow drift, it made me wonder if any of you could use some good advice too.  At Prudential Premier Real Estate, stress never stops; the stress of helping our clients and customers feel less stress.  The great thing is, we love what we do, and do it for a reason.  And yes, we too can get stressed from time to time, as can anyone, from anywhere, 5 foot snow drifts or not.  I’ve always responded to those from around the world that wonder how we can live and survive when it is so cold up here, and I always respond, how can you when it is 115 degrees where you live?  Point is usually taken.  None the less, from us at Prudential here in Fargo to you in the rest of the quite possibly not so cold world, here are 5 great ways you tolo can reduce the day to day stress in your life.  And if it is real estate related, let us help, that’s what we do, really…

Managing stress doesn’t mean simply avoiding or glossing over challenges. Here are five techniques you can use to deal with the pressures that come with a real estate career.

Remember the odds.

One of the truisms I always remind myself of is the fact that, normally, events work out in some fashion. Think about how many transactions you’ve had that looked like they would go sour. In most cases, those deals probably worked out, even if they didn’t go as perfectly as you might have hoped.

Most transactions will hit a snag here and there, but generally deals do get done.

Constantly stressing out about problems and issues will get you nowhere, and if you ponder the situation too long, it will definitely result in major anxiety. Don’t misunderstand-I’m not saying you should avoid problems, but you can remind yourself during rough times that you can still find compromises and solutions in almost any situation.

Eat your big fish first.

When faced with a mounting obstacle, don’t blow it off until later. Confront it first thing that day. You might be tempted to put off the problem and tackle the easier, smaller stuff first. But this usually winds up prolonging and intensifying the stressful situation.

Instead, go ahead and “eat the bigger fish” on your plate so you can get it out of your way and stop worrying about it.

Be honest and take responsibility when it’s your fault.

Stress can be caused by a wide variety of factors. Sometimes it can be created by our own foibles or when we just drop the ball. It’s difficult to tell someone you forgot to put their papers in the mail or misplaced a key. But if you want to avoid further stress, be honest about the situation and take responsibility.

I’ve found that whenever I’ve made a mistake and explained to a customer what happened, admitted responsibility, and apologized, it almost always produces a positive outcome. Procrastinating or masking over a problem will not give you any peace of mind, and it certainly won’t reassure your clients.

It can be difficult to admit “I made a mistake” or “I’m sorry.” But being honest ultimately goes far in winning trust with all the parties involved.

Exercise.

When nothing else seems to be going right, try to squeeze in a workout. Going for a walk, run, bike ride, swim, or other exercise is an excellent way to feel better.

Exercise can improve your mood because it releases endorphins in your brain, a hormone that can even trigger feelings of euphoria. Physical exertion can add a wide variety of benefits to your life and is excellent for relieving stress. Be sure to consult your physician before starting any major new exercise program.

Remind yourself that this, too, shall pass.

Often you can be in a stressful situation and feel as though it will never end. For many real estate professionals, the current environment has been incredibly stressful and shows few signs of relief. But our country has always been able to rebound, and the real estate market will once again rise up from record lows.

Rather than thinking the situation will never get better, remind yourself that it eventually will improve. It may not be in the next few months, or even until the next year or two, but the real estate market will recuperate and make lasting progress. Understanding that better days are ahead allows you to keep going a little farther.

We have gone from Prudential LRES Realty to Prudential Premier Real Estate in a significant step toward our bigger future in the Fargo, Moorhead and West Fargo real estate markets.  At a time when many other businesses are slowing, or have gone backwards, we completed our move into our new facility, had added 13 agents in the last 5 months to our company, and have grown our sales base by leaps and bounds, helping real estate consumers in all levels of real estate, both locally and nationally through our relocation contacts throughout the country.

What does any of this have to do with you?  An apology from us, from me, and a commitment to insure we will once again get our blog up and running to provide you a source of information compiled from throughout North America but that are tied specifically to real estate and to how we can help you navigate the waters.  We know you have choices, and that you can work with a myriad of agents and firms, in many cases not even talking to a local agent in the steps of buying or selling your home.  We want to be your source for information and guidance in all things real estate.  Feel free to comment, and come back often.  We expect to be making significant changes in the coming weeks to stay relevant, current, and to fulfil our promise and commitment to you, the “blog” reader-we’ll get you information you need, timely and without the fluff, and help you buy, sell, trade or simply get you information to make the biggest decision of your life an easier one.  We are here to help, and are honored to do so.

Prudential Premier Real Estate, that’s our new name, and all we do is real estate in Fargo, Moorhead, West Fargo, Dilworth and surrounding communities.  We can help you, if only by answering your real estate questions through this blog and our website.  Happy to help, and sorry again we were gone for so long.  Daryl.

Perhaps my favorite sale in my 33 year (and counting!) career was to a couple I’ll call John and Jane.  John and Jane were refugees who fled a war-torn country, were separated from each other and the rest of their family as they fled, and managed to find each other many months later in a refugee camp.  Years later, they ended up in Moorhead MN through the support of my church.  One day John called me and said he wanted to buy a house.  After looking at several homes, they chose a very modest rambler, priced in the low $40’s.  On the day of closing, I gave John and Jane a ride to the bank to sign papers.  After the closing, as I was driving them back to their apartment so they could begin to move, I looked in my rear-view mirror and saw John wiping away the tears.  He said, “Lyn, I just can’t believe it.  I have been in America for 1 year, 2 months and 6 days and I BOUGHT A HOUSE! I just can’t believe it.”   Now I was the one who needed to wipe the tears and I knew then that selling houses was far more than a job, it was far more than the money I could make doing it, it was and is a means to change people’s lives.  We are indeed fortunate!

It is also very important to understand that the combination of rate costs, average market prices, and employee earnings have aligned themselves to a point they have not been at in decades.  Affordability is the best it has been in three generations, and the opportunities are literally endless.  For those that have heard credit is hard to get, that’s true if you are trying to buy something you cannot afford, or if you have already damaged your credit by getting out of something you couldn’t afford in the first place.  Other than that, if you are good with your money, use it wisely, and invest in home ownership.  Once again, now really is the time, read on as to why.  Happy reading!

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer’s Credit Amount Determined?

Each home buyer’s tax credit is determined by two additional factors:

• 1. The price of the home.
• 2. The buyer’s income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000-may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income-over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

1. Don’t procrastinate. Start searching for a home now. Getting an early start will give you a better chance of finding the right house before the credit deadline. Before you start house hunting, get preapproved for a mortgage, said Eddie Fadel, a Miami-based mortgage banker, and do a realistic assessment of what you can afford. Buyers who have to sell an existing home should price it aggressively from the beginning to drum up interest and get a buyer as soon as possible.

2. Don’t count on another extension. The credit won’t be available forever, Fadel said. If you want to take advantage, be sure to make that spring deadline.

“This is a medication for the housing crisis. Once the patient—which is the housing market—cures, there will be no medication needed,” he said.

3. Mind the interest rates. Mortgage interest rates are low right now, but will likely rise next year. Higher rates will affect your monthly mortgage payments, thus the affordability of the house you are buying. Average rates on the 30-year fixed-rate mortgage have been hovering around 5%, but when the government stops buying large amounts of mortgage-backed securities, rates could rise.

4. Communicate with your lender. Throughout the process, make sure you’re communicating with your lender regularly; if there’s a piece of documentation you’re asked for, get it turned in as soon as possible, said Doug Heddings, a New York-based real estate agent with Charles Rutenberg Realty. Good communication is important in making sure the loan closes on time. And think twice before pursuing a short sale if you want to make the credit deadline. That’s where someone sells a home for less than what he or she owes on a mortgage, with permission of the lender. The process can be lengthy and unpredictable because the homeowner’s lender has to approve any deal, and can be complicated when there is a second mortgage associated with the property.

5. Don’t take shortcuts. Don’t forgo any of the steps you would normally take just to make the tax credit deadline. Make sure the house is a good fit for your needs and get a home inspection. Skipping steps could cost you in the long run.

(c) 2009, MarketWatch.com Inc.

The U.S. housing market has been in a slump for the past four years. When will it ever end?

In recent years, real estate has proven as jittery and unreliable as any other market. The average U.S. home price nearly doubled between January 2000 and April 2006, according to the First American LoanPerformance index. Since then, the average has fallen about 30%. The drop has been 53% in the Las Vegas metropolitan area and 39% in Miami, where about a quarter of all households with mortgages are behind on their payments or in foreclosure. The value of your home might be determined more by whether the neighbors keep their jobs than whether the house has ample light and closet space.

Here is a guide to navigating a fractured and volatile market:

1. Is the housing market getting better?

It has shown some signs of healing this year, but the much-touted recovery is tentative and fragile.

Home sales have increased from the severely depressed levels of 2008. The inventory of unsold homes listed for sale also is down. Bidding wars are breaking out for foreclosed homes in the sorts of neighborhoods (near jobs and decent schools) that attract both first-time buyers and investors seeking rental properties.

But more than 6.7 million U.S. households with mortgages, or about 13%, are behind on their payments or are in the foreclosure process, according to the Mortgage Bankers Association. Eventually, many of them will lose those homes, sending more supply onto the market. Unemployment has continued to rise, and the housing market is unlikely to show a sustained recovery until job growth resumes.

While the supply of middle-class homes on the market has declined somewhat, it remains ample in most places. And there is a huge glut of high-end houses for sale in many areas. That means prices of high-end homes might still have a long way to fall.

2. When will housing bottom out?

There probably won’t be any clear turning point. Monthly indicators, such as home sales and prices, tend to bounce erratically from month to month, making it hard to discern the underlying trend. And the housing bust will end at different times in different places. House prices already might have bottomed out in the coveted Virginia suburbs with short commutes into Washington, D.C., for instance. But it probably will be years before all of the unsold condos find buyers in parts of Florida.

Generalizations about states or metropolitan areas don’t say much about what is happening in your neighborhood. In Summit, N.J., known for good schools and an easy, 45-minute train commute to Manhattan, the median home price in September was up 1.2% from a year earlier, according to Otteau Valuation Group, an appraisal company. In Atlantic City, N.J., which suffers from too much speculative building of condominiums and weak demand for vacation homes, the median price is down about 12% from a year ago.

3. What signals should I watch to determine whether my local market is improving?

One way to get a sense of supply is to ask a good local real estate agent for stats on how many homes are listed for sale in your town and how many months it would take at the current sales rate to absorb that supply. Anything over about six months generally is considered high, meaning that sellers might have to cut prices. Another way to get a sense of a neighborhood’s health is to count the number of for-sale signs and vacant houses. If there are more than a couple vacant homes in a block, that might be a bad sign, particularly if no one is taking care of them.

The supply of homes listed for sale has fallen very sharply in some areas. But the supply is likely to balloon again in many areas with a renewed surge in foreclosures. Many local newspapers provide information on foreclosure filings.

Demand depends heavily on the job market. The U.S. Bureau of Labor Statistics provides unemployment rates by metropolitan area. In September, they ranged from 2.9% in Bismarck, N.D., to 30% in El Centro, Calif. State and local agencies provide job-market data, too. Celia Chen, a housing economist at Moody’s Economy.com, says help-wanted signs can be a useful local indicator; if you start seeing more of them around your neighborhood, that is a sign that business in your area could be starting to recover.

4. How can I figure out the value of my home?

You never know for sure what a home will fetch until you put it on the market, and then it is partly a matter of luck. Will the eager buyer who shares your taste in home style and neighborhood show up on day one or day 200?

Some Web sites — including Zillow.com, HomeGain.com and Cyberhomes.com — provide estimates of individual home values. These estimates are largely based on recent sales of nearby homes, and in some cases they are wildly off the mark. But they often provide a ballpark idea of a home’s value.

You might come closer to the real value by talking to a local agent and looking at recent prices for homes that you know are very similar to yours. If you want to be more scientific and don’t mind paying a few hundred dollars, hire a professional appraiser.

5. Does it matter whether I’m “under water”?

At least you have plenty of company. About 20% of owners of single-family homes with mortgages owe more than the current estimated value of their homes, according to Zillow.com.

If you can afford your monthly payment and don’t need to move soon, that might not be a big problem. But it is hard, and sometimes impossible, to refinance a mortgage if you are under water, and you will take a bath if you have to sell the home now. Some people who can afford to make their monthly mortgage payments are deciding it doesn’t make sense to do so because they don’t expect their home values ever to recover to past peaks, and they could rent similar houses for much lower monthly costs.

6. If I lose my home to foreclosure, how long will it take to repair my credit record?

It probably will be three to five years before you can qualify for a home mortgage insured by the government, depending on your circumstances, and that assumes you have re-established a record for paying your bills on time. The foreclosure will remain a blot on your credit record for seven years, likely raising your interest costs even if you do get another loan. If you pay bills on time, keep your credit-card balances low and don’t apply for too many cards, you can make a “slow, gradual improvement” in your credit score, says Tom Quinn, a vice president at Fair Isaac Corp., which provides tools for analyzing credit records.

7. If I’m renting, is now a good time to buy a house?

It may well be. Prices in most areas are well below their peaks, even if they haven’t hit bottom. Don’t kid yourself that you can time the bottom of the market perfectly. But don’t feel any pressure to buy in a hurry, because the supply of housing is likely to remain ample for years in many areas.

Generally, it doesn’t make sense to buy unless you expect to remain in the house for at least four or five years, because the transaction costs — including commissions for real estate agents and mortgage fees — are heavy.

But now is clearly a good time to rent. Many landlords need tenants badly. The national apartment-vacancy rate in the third quarter was 7.8%, the highest in 23 years, according to Reis Inc., a New York research firm. So landlords are cutting rents and offering such sweeteners as free flat-screen televisions or several months of free rent to retain or attract tenants. Some owners of condos will “cut their throats to get some kind of rental income to cover part of their expenses,” says Jack McCabe, a real estate consultant in Deerfield Beach, Fla.

8. Can I get a tax credit if I buy a home now?

Under an expanded and extended program approved by Congress earlier this month, tax credits are available to many people who buy or sign a contract to buy a principal residence by April 30 and complete the purchase by June 30. The tax credit is up to $8,000 for first-time home buyers and $6,500 for people who already have owned a home for at least five consecutive years during the previous eight years. The credit is available for individual taxpayers with annual incomes of up to $145,000 or joint filers with incomes up to $245,000.

9. Can I get a mortgage on attractive terms?

Only if you have a good credit record, a moderate amount of debt in relation to your income and the ability to fully document your income. That last requirement is fairly easy for people who work for a salary and have had the same employer for more than two years, but it can be tough for self-employed people with incomes that vary substantially from year to year.

A borrower with a strong credit score of 740 or higher (on the scale of 300 to 850) and the ability to make a down payment of at least 20% could get an interest rate of about 5% with no origination fees on a 30-year fixed-rate mortgage, says Lou Barnes, a mortgage banker in Boulder, Colo. But if your credit score is 680, the rate jumps to about 5.5%.

People who can’t make a down payment of at least 20% generally are being funneled into loans insured by the Federal Housing Administration. That means paying extra fees for the FHA insurance.

Borrowing costs are steeper at the high end of the housing market. For so-called jumbo loans — those above $729,750 in areas with the highest housing costs or $417,000 in places with the lowest costs — interest rates on 30-year fixed-rate mortgages last week averaged 5.95%, according to HSH Associates, a financial publisher.

10. Should I invest in foreclosed homes?

Probably not. A lot of investors chase these properties, and only the most experienced know how to deal with all of the pitfalls. Homes auctioned at trustee or sheriff sales are sold on an as-is basis, and there is no provision for an inspection before you take ownership. If after buying you find out that termites have been treating the floor joists as an all-you-can-eat buffet, that is your problem. You must pay for the full price within a day or two, so you need a lot of cash or access to special short-term loans for investors that come with interest rates of around 18%. This is a pursuit best left to people with a lot of time, nerve, cash and knowledge of the local market.

Details on the program are below:

Homebuyer Tax Credit Summary

Proposals on the home buyer tax credit and NOLs were included in Senate legislation to extend unemployment insurance benefits for jobless Americans. The two housing-related provisions were added through the bipartisan efforts of Senate Finance Committee Chairman Max Baucus (D-Mont.) and Sens. Johnny Isakson (R-Ga.), Chris Dodd (D-Conn.), Olympia Snowe (R-Maine), Lamar Alexander (R-Tenn.) and Joe Lieberman (I-Conn.), and Senate Leaders Harry Reid (D-Nev.) and Mitch McConnell (R-Ky.).

The Senate is also expected to approve the entire package before the end of this week and immediately send it to the House, opening up the possibility that it will reach the White House for the President’s signature in a matter of days.

Specifics of the housing proposals that are likely to be part of the final bill include:

Home Buyer Tax Credit Provisions

• The $8,000 tax credit would be extended until April 30 for first-time home buyers.
• A new $6,500 tax credit would be created for move-up buyers for the same period.
• Both categories of buyers would have until June 30 to close on the home after signing a contract prior to the April 30 deadline.
• Both categories of home buyers would have new, higher income limits of $125,000 for individuals and $225,000 for couples.
• Move-up buyers must have been residing in their primary residence for five consecutive years out of the last eight in order to qualify for the credit.
• Homes over the purchase price of $800,000 do not qualify.

NOL Carryback

• There would be a five-year carryback for NOLs in either 2008 or 2009, not both.
• Years one to four allow for 100% use of NOLs; year five is limited to 50% of a company’s taxable income in that year.
• There would be no size limitation for the company or other cap on revenues.
• Unused NOLs in year five are still eligible for the 20-year carry forward.
• Small businesses (with less than $15 million in gross receipts) would be able to claim a five-year carryback for 2008 losses (under the American Recovery and Reinvestment Act) and for 2009 losses according to the proposal.
• There would be no limitation for NOLs claimed against Alternative Minimum Tax liability in carryback years.

NAHB estimates that the extended and expanded home buyer tax credit will generate 180,000 additional sales; and create 211,000 jobs; and $9.6 billion in wage income, $7.2 billion in small and corporate business income, $5 billion in federal taxes and $1.9 billion in state and local taxes.

In another encouraging development, the Obama Administration, through a joint statement issued by Treasury Secretary Tim Geithner and Housing and Urban Development Secretary Shaun Donovan on Oct. 29 said: “We welcome efforts taken by Congress to extend the first-time home buyer tax credit for a limited period. This credit has brought new families into the housing market and contributed to three consecutive months of rising home prices nationwide.”  

Keeping Pressure on Lawmakers to Act

With partisan politics earlier last week threatening to derail Senate efforts to extend and expand the home buyer tax credit, NAHB CEO Jerry Howard on Oct. 28 issued a press statement calling on Congress to “stop playing politics with Americans’ lives and act now” on the tax credit.

Howard delivered a similar message in an interview with the Philadelphia Inquirer and in a report on NPR’s Marketplace. “Not extending this is economic suicide,” he said. “I think we’ll go right back into a double-dip housing recession, and the recovery will stall itself out.”

In a Legislative Alert issued on Nov. 2, NAHB urged its members to call their senators and representatives immediately and tell them to support the tax credit and NOL carryback because they will preserve and create jobs, stabilize the housing market and provide critical stimulus to the nation’s economy.

NAHB members can send a written message to their members of Congress by visiting www/capitolconnect.com/builderlink. They can also call their legislators toll-free at 866-924-6242 (NAHB).

For more information on the ongoing grassroots effort to extend and expand the tax credit, e-mail Nick Gentile, or call him at 800-368-5242 x8542. For more information on legislative developments on Capitol Hill, contact Greg Brown, x8421.