While the summer months offer plenty of sunshine and opportunity for enjoying the great outdoors, it is also a good time to take care of some of your home’s important maintenance needs. Today’s home buyers expect a home that is well maintained. In order to give yourself the best chance of selling your home, here is a brief maintenance checklist that you should consider completing this summer.

Maintenance Tip #1: Perform an Energy Audit

Experts estimate that homeowners can save as much as 20 percent on their heating and cooling costs by repairing gaps, cracks and leaks throughout the home. Some places to look for potential leaks include:

• The switch-plate that covers the circuit box, which can be replaced with an insulated cover
• Phone jack covers, which can be replaced with insulated covers
• Junctures where walls meet the floor, where windows meet walls and where the wires enter the home
• Mail slots
• Fireplace dampers
• Air conditioning units
• Attic doors
• Weather stripping

If you would rather have a professional conduct an energy audit, your utility company should be able to provide you with referrals.

Maintenance Tip #2: Clean and Repair Concrete

Driveways, sidewalks and patios can become dirty and grimy over time, but you can keep them looking great with the help of a power washer during the summer months. To clean up oil stains, soak the area for a half-hour with a mixture of a cup of TSP mixed with a gallon of hot water. Then, scrub the area with a stiff-bristled brush before rinsing.

If you have cracks in your concrete, you can patch them with masonry crack filler. Before injecting the filler into the cracks, make sure to clean the area thoroughly. If you have more than just cracks in need of repair, vinyl concrete patching compound will fill in the openings.

Maintenance Tip #3: Repair Asphalt

If you have asphalt instead of concrete, it is important to inspect the asphalt two or three times per year. All cracks should be repaired with asphalt patching caulk. If the cracks are left unrepaired, they will widen over time and will cause further damage. Furthermore, you should be sure to coat the asphalt with a sealer every five years.

Maintenance Tip #4: Prune and Remove Problematic Trees

Any trees hanging over your roof or rubbing against your gutters should be pruned in order to prevent damage to your home. Not only can these trees drop leaves and sticks onto your roof, but they also provide a way for rats, squirrels and other pests to get to your home. Damaged trees should also be removed in order to prevent them from falling into your home. If you are uncomfortable with pruning and removing trees, consider contacting a professional tree-care service.

Maintenance Tip #5: Mend Fences

Repairing damage as it occurs is the most cost-effective way to keep your home properly protected and secured. Before inspecting the fence, be sure to mow down the surrounding grass in order to obtain the best visibility. Then, walk the length of the fence and inspect its condition by tugging on posts and slats and looking for signs of rot. After ensuring all of the parts are properly attached and in good condition, repaint or stain any areas where the finish is cracked, thin or peeling.

There is no doubt about it – nearly anyone who tries to sell a home in today’s market will be facing a uphill battle. This is not to say, however, that getting a home sold in a buyer’s market is an impossible task. Rather, it simply means that you and your real estate agent may need to work a little harder to get the home sold. To that end, here are five tips for selling your home for top dollar in a tough real estate market.

Tip #1: Know the Difference Between Price and Value

When putting your home on the market, keep in mind that there is a difference between price and value. While the price is the amount you ask for your home, value is all a matter of perception. Factors that go into determining the value of your home include features, location, condition and how your home compares to similar homes.

Tip #2: Open Up Your Space

To increase the perceived value of a home, it is important to make it appear large and open. In fact, the perceived size of a home is more important than the actual square footage. Whether your home has an open floor plan or not, you can make it appear larger by reducing clutter and removing unnecessary furniture in order to open up the space further.

Tip #3: Move Out of the Home

If possible, you should move out of your home while it is on the market. By moving out and removing all of your belongings, potential buyers will have no problems with setting up a viewing. Similarly, it will be far easier for potential buyers to see themselves living in your home if your personal belongings have been gone. Of course, if you are already moved out, it will also give the buyer the perception that it will be easier to move in as soon as the deal is done.

Tip #4: Freshen Things Up

Most buyers are looking for a home that is in move-in condition. You can help convince them that your home is ready to move into by taking a few simple steps to freshen things up. Some things you should do before putting your home on the market include:

• Apply a fresh layer of paint
• Clean the carpeting and flooring
• Do some minor landscaping, particularly in the entry area

Making repairs to obvious problem such as a spot left over from a roof leak will also go a long way toward increasing the perceived value of your home and getting it sold. Similarly, making simple updates and remodeling key areas such as the bathroom and kitchen will help you get your home sold.

Tip #5: Get a Home Inspection

Interested buyers will have your home inspected before they finalize a purchase, so get one done beforehand so you can make any necessary repairs before the buyer’s inspection. This way, you won’t have to worry about any unexpected problems delaying or canceling the sale.

About the Author: John Allen represents buyers and sellers of Sarasota homes for sale, condominiums and investment properties.

BAC Deficiency Language

BAC Home Loans Servicing, LP and/or its investors may pursue a deficiency judgment for the difference in the payment received and the total balance due, unless agreed otherwise or prohibited by law, if the short sale closes on the loan referenced above. In addition, if this loan is covered by mortgage insurance, the mortgage insurance company may reserve the right to pursue the seller for the deficiency based on the terms of the mortgage insurance policy. Furthermore, there may be tax consequences associated with entering into a short sale. The seller is encouraged to seek guidance from an independent tax advisor, and/or an attorney, before proceeding with the short sale.

BAC Waives Deficiency Language

Upon receipt of the agreed amount, BAC Home Loans Servicing, LP, and/or its investors will waive the remaining balance due on the above referenced loan and release the borrower from further obligation therein, and waive all rights to pursue further judgment or deficiency. BAC Home Loans Servicing, LP will report the debt as “settled for less than the amount owed” and issue a 1099 for the remaining balance. The seller is encouraged to seek guidance from an independent tax advisor, and/or an attorney, before proceeding with the short sale.

If it is subsequently determined that the approval of the short sale was based, in part, on information which BAC Home Loans Servicing, LP later determined to be false or misrepresented or fraudulent, BAC Home Loans Servicing, LP reserves the right to pursue the remaining balance of the note.

Isn’t it amazing that they would even try to sneak this by my client? Be careful with your short sales! If you decide not to use my services, please make sure your short sale approval letter follows this verbiage.

Disclaimer: This is for informational purposes. I am not an attorney, and this is not legal advice.

You could sell your home, owe nothing more on your mortgage and get $20,000!

Dear <homeowner’s name>:

We’re contacting you because we have a new program that could be right for you. Don’t lose hope – you have options that may help you avoid foreclosure and make a fresh start.

You may be able to owe nothing more on your mortgage and get $20,000 after you sell your home!

We would like to talk with you about the possibility of selling your home for less than the amount you owe. If we agree on a lower sale price and a few other terms and you sell your house for that amount before foreclosure, you will get $20,000.

After your home is sold through this program you will not owe any future payments for this mortgage. This program also may allow you to stay in your home while it is for sale. Plus, after you sell your house, you can use the $20,000 to pay expenses, including moving to a new home.

Avoiding foreclosure is possible.
Call us today at 1-877-496-3820

Sounds great, right! For sure, if I was offered $20,000 to short sale, I would in a heart beat! So who qualifies? The target homeowner is a person whose loan has the following qualities:

• Loan was originated through Washington Mutual and was acquired by Chase through the merger
• Loan is a pay-option arm, also known as negative amortization loan, also known as pick-a-pay

There may have been no crazier idea during the boom than the negative amortization loan.  Sure, the NINJA (No income, no job or assets) loans are great to laugh about even though they were a large contributor to where we are today.  However, allowing a homeowner to decide how much of a payment they want to make toward their mortgage is definitely financial suicide for the banks.  Effectively, if you had what would normally be a mortgage payment of $1000 per month, the bank would accept between $300 and $1000 every month.  Anything short of $1000 would be added to your principal.  You think you’re underwater today? Wait until next month when you’re guaranteed to be more upside down!

OK, time to get off the soapbox.  Now that these banks are starting to regain their sanity, they know that these pick-a-pay loans are ticking time bombs.  They want to approach the homeowner before they walk away, and they ask that the homeowner keep the property in good condition so that it is marketable.  To motivate the homeowner, Chase is waiving all deficiency and offering up to $20,000. Best of all, the seller does NOT need to be behind on payments to participate, and they are not required to provide hardship or financials.  This is a great program, and from what I hear, Wells Fargo isn’t that far behind.

Unfortunately, a recent client of mine had the misfortune of dealing with this awful BoA/Fannie combo.

From the BoA CEO’s office this morning.  They had to research this file since it was being mishandled by BoA so badly. This is what the person who was helping me has explained:

1)      The closing officer, and the negotiator, did not do their diligence, and their jobs by not helping to correct the approval.  I spoke to the closing officer yesterday who informed me that she sent the correct approval letter a couple of weeks ago. I asked her to show me where she sent it, and I then proved to her that she forgot to send it. She told me that she thought my next plethora of emails were just duplicates…. Her managers are holding her accountable for this, I assure you.

2)      The negotiator did not put in the foreclosure request in time even though I was personally told that it was in, and that everything was being taken care of. He too is being held accountable for his lack of actions. The CEO’s office person has assured me of this.

Fannie Mae is taking just about everything to sale when it comes to short sales. The government is telling us that they are helping homeowners, but having their companies send everything to sale.

This is pretty awful news.  Fortunately, we can still help you if you have a Fannie mortgage, but we need to start quickly, because Fannie will not postpone the sale date.

It’s unfortunate that my name was not before the fold, so to speak.  Here’s the part I was honored to contribute:

Steve Trang, a Realtor with Occasio Realty in Tempe, said having someone waiting in the wings for a short-sale deal is not always bad, because it can expedite the process and keep the home from going into foreclosure. He said lenders always can turn down suspicious offers.

Anyway, it’s always great to see all your hard work pay off.  If you have any short sale questions, I would be happy to answer them for you.

October 2009 Real Estate Supply

There were two very strong source of buyers.  First time home buyers trying to get the tax credit were still very active.  Investors trying to take advantage of the market have also bought up many homes.  We see that in October 32.66% of the homes were bought in cash.  The rumors is that on top of the Canadian money coming in, there’s a lot of Chinese and Japanese money pumping into our market.  No doubt with the winter season upon us, there will be even more Canadian buyers.

October 2009 Numbers

Most of the cities have remained pretty consistent during this time period.  Only Tempe and Scottsdale have seen noticeable changes.  Tempe has gone from 6.1 to 7.2 months of inventory while Scottsdale has gone from 10.3 months to 9.4.  We have noticed that there was a small drop in activity in the first week of November with the tax credit expected to expire at the end of the month.  Now that the credit has been extended again, activity has also picked up again.  Other great news for the real estate market is that the tax credit now is offered to homeowners that have been in their homes for more than 5 years.  It will be interesting to see who qualifies for this program.

Real Estate Market Analysis for October 2009

August Inventory of Homes Available in Phoenix

Another interesting trend is that the overall number of homes available for sale have continued to go down, despite the number of homes sales has slowed just a bit.  With the number of sales going down, though, monthly inventory naturally goes up.  Overall in Phoenix metro, we have gone from 4.59 months of inventory for July to 5.24 months in August.  Across the board, most of the cities have increased by about a month.  The exceptions would be Gilbert and Chandler, which have maintained the same level.

Status of Homes sold in August in Phoenix metro

Overall, we are seeing roughly 35% of homes bought in cash, 51% of are foreclosures, 18% are short sales, and 31% are traditional resales.

The next few months will be very interesting.  Just like when down payment assistance ended before, there will be a crazy rush here.  The deadline for the First Time Home Buyer Tax Credit is Dec 1.  That means that anybody participating in the program needs to be in contract by October 16th at the latest if they’re going FHA.  So imagine all the people bidding for homes in the first couple weeks of October.  They will be competing very strongly against one another.  I strongly suggest that if you are interested in this program, that you find something in the next couple of weeks.  Or else, you may find yourself outbidded during the most critical stretch.

Short Sale Success

July 2009 Inventory of Homes Available

11531 pending homes sales in May led to 8291 homes sold in June.  And likewise, 11638 pending homes sales in June led to 8009 homes sold in July.  That is a 72% and 69% closing ratio respectively.  Those numbers in themselves aren’t all that high, but that indicates that we are no longer having the problems of financing fallouts like we did last year.  We also saw 2859 homes bought in cash for the month of July, which means that we are still seeing 36% of the homes being bought in cash.

Status of Homes for the month of July