AOL Real Estate - Blog http://realestate.aol.com/blog AOL Real Estate - Blog http://realestate.aol.com/blog/media/feedlogo.gif AOL Real Estate - Blog http://realestate.aol.com/blog en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/Maintaining a Stable Credit Scorehttp://realestate.aol.com/blog/2010/11/11/maintaining-a-stable-credit-score/http://realestate.aol.com/blog/2010/11/11/maintaining-a-stable-credit-score/http://realestate.aol.com/blog/2010/11/11/maintaining-a-stable-credit-score/#commentsFiled under:


These days maintaining a stable credit score is more important than ever. So you try to do everything right. You pay off credit card debt, avoid new loans, close unused credit card accounts, and make sure that you pay all your bills on time. Then you check your credit score, only to find that it fluctuates by as much as 50 points -- which could mean the difference between a low mortgage rate and a high one. What are you doing wrong?

You may not be doing anything wrong, says Tena Friery, the research director at Privacy Rights Clearinghouse, a nonprofit consumer education organization. "The score really captures the data in your report at any given time," she says. "Accounts are opened, accounts are closed; that all changes daily, weekly, monthly."

Or maybe even more frequently."If you check your credit score right now and then check it an hour later, it could change," says Ken Lin, CEO of Credit Karma, a website that provides free access to credit scores and credit advice.

Does that mean that you have no control over fluctuations in your credit score? It may seem that way, but in reality there are plenty of things you can do to keep your credit score stable. Here are tips from Lin and Friery for keeping fluctuations to a minimum and maintaining the highest credit score possible:
1. Pay your bills on time

The three main credit bureaus (Experian, TransUnion and Equifax) each use a slightly different algorithm to calculate scores. But they all rely on one thing: your payment history. "How you have paid your bills in the past is predictive of how you will pay bills in the future," says Friery. So you want to be sure all your accounts are current. "One delinquency can drop a score by 50 points," Lin says.


2. Check your credit report

Once a year, you can request a free copy of your credit history from each of the three bureaus. And Credit Karma allows you to check your credit score as often as once a day. So if you haven't checked it in the past year, that's the first thing you should do.

"Clear up anything that is inaccurate," said Friery. "You can dispute anything that you believe is wrong. It takes time, but it can pay off. Negative information should be deleted after seven years. Bankruptcies come off after 10 years." (Also see "Disputing Credit Report Errors.")


3. Don't max out on available credit

"You should not have a huge debt load," Lin advises. "You don't want credit card debt to exceed more than 30 percent of the total limit." (Also see: "How to Get a Home Loan With Bad Credit.")


4. Don't be tempted by department store credit card offers

"The more recent the credit application, the more it will affect your score," says Friery. You might be tempted to open a credit account at Home Depot in anticipation of fixing up a home, but it's best to wait until you're ready to start hammering before opening the account.

Another point about multiple credit cards: the more you have, the harder it is to keep track of payments, and the more likely you are to miss one, which will negatively affect your score.


5. Don't close a credit card account

OK, so we just told you that opening a new account could decrease your credit score. So closing an account will raise your score, right? Wrong. It's counterintuitive, Lin acknowledges, but "If you have had a credit account for 12 years, it speaks to your credit worthiness." Even if you have zero balance, he advises, keep it open. It also boosts your credit availability, another factor in the credit score algorithm.

"Diligence and monitoring are important to maintain a stable credit score," says Lin. "Monitor it once a month. That way, you can get a handle on what is going with it. If you get a little bit experience with it, if you stay on top of it, you will see, 'Wow, every time I apply for new card my score goes down. When I pay my bills, it goes up.' When consumers start checking their scores, they will see the correlation of financial activity and credit score, and they will be more likely to manage it better."

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]]>credit cardscredit reportcredit scoreEquifaxExperianmaxing outmortgagePrivacy Rights ClearinghouseTransUnionPatricia Orsini2010-11-11T09:00:00 00:00Credit Score: Why It's Constantly Changinghttp://realestate.aol.com/blog/2010/11/01/credit-scores-watch-out-for-frequent-changes/http://realestate.aol.com/blog/2010/11/01/credit-scores-watch-out-for-frequent-changes/http://realestate.aol.com/blog/2010/11/01/credit-scores-watch-out-for-frequent-changes/#commentsFiled under: ,

Successfully obtaining a mortgage requires meeting certain numbers. There's the amount of the down payment that you must have in your bank account. The amount of annual earnings you must show to prove you can manage the mortgage. And then there is your credit score.

Right now, that credit score needs to be in the mid 700s in order for most lenders to offer the historically low interest rates that are tempting buyers. It is that score that tells the bank that you are the kind of person that pays your bills, and pays them on time.

And if you are the type of person that pays your bills on time, then you are probably the type of person that plans ahead. Mortgage brokers and lenders will tell you that before you apply for a mortgage, you should get a copy of your credit report to ensure that it is accurate, and to know what your score is.

The problem is, said Ken Lin, CEO of Credit Karma, a website that provides free access to credit scores and credit advice, that score is constantly changing. "If you check your credit score right now, and then check it an hour later, everything is subject to change," he said. "There are so many things that affect your score -- depending on when your credit card company is sending its information on balances, and whether you are opening or closing an account -- that it is going to fluctuate."
Tena Friery, research director with the Privacy Rights Clearinghouse, a nonprofit consumer education organization, said the scores are constantly changing because the underlying data upon which these scores are based are constantly changing. What makes it even more difficult to understand, said Friery, is that "the scoring models for all of these bureaus is secret," she said. "So you can't try to figure it out for yourself."

The other factor affecting these scores is that the three main credit repositories -- Experian, TransUnion and Equifax -- are using slightly different data, and different formulas, to determine the scores. For example, a score from Experian will use information about a credit card that might not even be on TransUnion's report.

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All these variables pose a problem for someone who is hoping to get the best deal on a mortgage that they can.

While this is the normal ebb and flow of information, Linn said, it is important for consumers to understand what is happening with their scores and what they can do to control them.

The most important thing consumers need to know, said Friery, is that "one late payment will affect your score. How you have paid your bills in the past is predictive of how you will pay bills in the future," she said. "So it's important to not miss any deadlines."

Another way to keep your score on an even keel is to ignore those department store credit-card come-ons. "If you've opened a number of new accounts right before applying for a mortgage, that would hurt," said Friery. "And if you are all of a sudden maxing out credit cards, that could indicate that maybe you are too deep in debt, and might be a greater risk."

And, while you don't want to open any new credit accounts, you shouldn't be closing any, either. "If you've had a credit card for 12 years, that speaks to your creditworthiness," said Lin. "And, having a credit card, especially one with a zero balance, boosts credit availability."

Ironically, applying for a loan -- such as a mortgage -- can have a negative effect on your score. When the bank "pulls" your credit report, that information goes to the credit bureaus that are responsible for calculating that score. According to an official at Experian, the credit bureau could take 20 points off your score, while at TransUnion, the penalty is about five points. So you want to be sure that when you do apply for a mortgage, your score is already in very good shape.

"Consumers don't see the correlation of financial activity and credit score," said Lin. "If they start checking their score once a month, they will start to see the correlation."

Web sites such as Credit Karma will allow you to check it free of charge once a day. Which might be a little more than necessary, but the key, said Lin, is diligence and monitoring. "By checking it regularly, you can get a handle on what is going on with your score. You'll see that, 'Wow, every time I apply for a new card, it goes down. When I pay bills it goes up.' Your financial health is dependent on your credit score, so we think it's important that people have access to it."

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]]>credit bureauscredit card debtcredit reportcredit scoredown paymentequifaxExperianinterest ratesmortgageTransUnionPatricia Orsini2010-11-01T15:32:00 00:00Home Price vs. Loan Rate: Best-Deal Secretshttp://realestate.aol.com/blog/2010/10/20/home-prices-vs-loan-rates-which-matters-more/http://realestate.aol.com/blog/2010/10/20/home-prices-vs-loan-rates-which-matters-more/http://realestate.aol.com/blog/2010/10/20/home-prices-vs-loan-rates-which-matters-more/#commentsFiled under: ,

Trying to determine the best time to jump into the housing market is always a bit of a gamble. But in this market, with the news see-sawing between stalled housing prices and falling interest rates, it's even harder to gauge whether today is the right day to buy a house.

"There are all kinds of ways to look at it," says Stephen Slotnick, a mortgage consultant with Prospect Mortgage in Maplewood, N.J. "But my first questions to a borrower are always, 'Where would you be comfortable? How much can you afford on a monthly basis?' Because what a buyer needs to find is a home that -- between the cost of the home and the interest rate -- creates a mortgage payment that they can comfortably pay."

Slotnick pointed out that generally, a lower interest rate means you can afford more house. Which means, with interest rates at historically low levels, homebuyers are able to consider homes now that just two years ago might have been out of reach.
However, more house means a larger down payment. Consider the cost of a $100,000 home. The typical 20 percent down payment means the buyer would need to have saved $20,000 to purchase that home. If the home were $120,000, that buyer would need $24,000. No matter what the interest rate, the down payment would be the same. And so for many people, no matter how low the interest rate, the price of the home needs to be within their budget before they can get in the front door.

And buying a more expensive home with the intention of selling it for a larger profit should never be part of the budget equation.

"People should never look at their house as a way to make a killing," says Slotnick. "They should look at it as a stable, long-term investment, which will generally slightly outperform the rate of inflation.

"It's not normal for houses to appreciate 10 percent or 15 percent a year. And it's not normal for people to line up 15 deep to put an offer in on a home," he says. "All of those things were irrational, and we don't expect to see it again any time soon."

Something else that people don't expect to see any time soon: a better incentive to buying a home than the recent homebuyer tax credit. When the Obama tax credit expired at the end of April, some people believed that they missed out on one of the best bargains of the decade. But that's not the case. Interest rates are nearly 1 percent lower than last spring, when first-time buyers were receiving a one-time $8,000 tax credit.

In this case, a lower interest rate gives buyers a boost. For a $250,000 mortgage at a current rate of 4.5 percent on a 30-year mortgage, a buyer saves about $150 per month over a 5 percent interest rate last spring. "That savings will make up that $8,000 in a little less than five years," says Slotnick, "and it will keep on saving you money."

There is another issue that goes beyond interest rates and mortgages. No matter how low home prices or interest rates go, unless someone is certain their job is safe, they are not considering buying a home. That is the biggest obstacle for most buyers, says Slotnick. "With nearly 10 percent unemployment nationwide, people are afraid of making large investments," he says.

But for those who do have a secure financial situation, the current housing market a win-win for homebuyers.

Right now, advise many, the confluence of low home prices and historically low interest rates have combined to make this a great time to buy.

The bottom line, however, is to move ahead when you are ready. "Trying to outguess the market by waiting for the right price or the right interest rate doesn't work," says Slotnick. "When you are feeling comfortable with the entire cost of the mortgage and your personal job situation, that is the best time to buy."

For more on home buying and mortgage rates see these AOL Real Estate guides:
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]]>down paymentDTIfirst-time buyershome pricesinterest ratesmortgage ratestax creditunemployment ratePatricia Orsini2010-10-20T16:15:00 00:00Top 5 Home Improvement Projects for Winterhttp://realestate.aol.com/blog/2010/10/14/home-improvement-projects-winter/http://realestate.aol.com/blog/2010/10/14/home-improvement-projects-winter/http://realestate.aol.com/blog/2010/10/14/home-improvement-projects-winter/#commentsWhen you spend too much time in your home, you are bound to find a home improvement project or two that can keep you busy. And that's usually what happens during the winter, when long hours inside give you time to wonder why you decided to paint the walls avocado green.

For Heydi Cribben and her boyfriend, Jesse (pictured left), who bought a fixer-upper in Minneapolis a little more than a year ago, there is always something that can be improved upon. Last winter's home improvement projects were new floors in the entryway and living room. This winter, Cribben says, "we have a lot of interior doors that need to be hung, and pocket doors that need to be replaced. It's those finishing touches that we're thinking about."

Spike Carlsen, former executive editor of Family Handyman magazine and the author of "Reader's Digest Complete Do-It-Yourself Manual" and, most recently, "A Splintered History of Wood," said it makes sense that people focus on interior home improvements during the winter.

"Especially right before the holidays, people want their houses to look their best," he said. "And any indoor project that doesn't require windows to be open or walls to be taken down are good ones to think about."

And while doors and floors fit that category, Carlsen does warn that "any door that's hung in the winter might be a bit of a tight fit in the summer," when humidity can expand the wood. "So you need to take some care with wood projects."

There are plenty of other home improvement projects that can keep you busy during the winter months. Here are Carlsen's top five suggestions for home improvement projects in winter:


1. Install a programmable thermostat

It's always a bit of a shock when you get that first utility bill in the colder months. And if you haven't already taken steps to save energy, an easy project, according to Carlsen, is installing a thermostat that allows you to automatically set the temperature for different times of the day. By having the heat programmed to go on when you get up in the morning, then off when you leave for the day, then back on when you arrive home, you can keep the temperature of your home constant. Carlsen says this type of project is an easy do-it-yourself project. "It's just a couple of low-voltage wires, so it's really something anyone can handle," he said. "And some of them cost as low as $25. It can pay for itself in a month or two."


2. Insulate the water heater

Another way to save energy is to lower the temperature of your water heater, and insulate it. "The ideal temperature is 120 degrees. It doesn't cost you anything to turn it down," said Carlsen. And by wrapping it in insulation, you can ensure that the water stays hot when it is not being used. You can buy insulation kits at your local hardware store.


3. Paint a room

"This is the greatest winter project," says Carlsen. "It's a great cure for the midwinter blues. And a $50 investment in paint can dramatically transform a room. When you are spending more time inside, you have more time to look at what needs to be refreshed. This is a quick, do-it-yourself project and a small investment can make a big difference.


4. Refinish the basement

Need a contractor for a project? Do it in the winter, advises Carlsen. "Contractors are slower in the winter, and one project that's especially popular is refinishing the basement -- you can often find someone to take this on," he says. Of course, the ever-popular bathroom and kitchen remodels, which Carlsen calls "seasonless, and sometimes endless," can also be started in winter (as long as a wall doesn't need to be knocked out).


5. Get organized

So many people resolve to get organized at the New Year and winter is a great time to actually take action on that resolution. "There are so many great modular closet-organizing systems," said Carlsen, who said a project like this is a great antidote to cabin fever. "You can clear up the clutter in a room or a closet, and make it look like you have twice the space you did to begin with."

Cribben said that she expects the next few winters will be filled with projects. "We still have our whole kitchen to gut and redo; and we want to redo the bathroom. We'll be busy for a while."

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]]>aolorignalbasementcloset organizationClosetOrganizationenergy savingEnergySavingfixer-upperhot water heaterHotWaterHeaterinsulatepaintrefinish basementRefinishBasementremodelPatricia Orsini2010-10-14T15:55:00 00:00Top 5 Home Improvement Projects for Fallhttp://realestate.aol.com/blog/2010/10/13/home-improvement-projects-fall/http://realestate.aol.com/blog/2010/10/13/home-improvement-projects-fall/http://realestate.aol.com/blog/2010/10/13/home-improvement-projects-fall/#commentsOf all the home improvement projects Hyedi Cribben and her boyfriend had on their to-do list, building a patio was one project they were looking forward to completing so that they could it enjoy it during the summer months. So why then did they get started in the fall?

"No one likes to do that kind of work in hot weather," said Cribben. She and her boyfriend, Jesse, are lucky enough to have parents willing to help them get their Minneapolis fixer-upper into shape.

"There was some sifting through dirt, because there was a lot of rock," she said, "and bringing in concrete. It's pretty labor intensive.

"With the humidity and hot weather this summer, it would have been too much. With our parents helping us, I thought, for health reasons, we should wait until fall."

Saving those heavy lifting jobs for fall makes a lot of sense, said Spike Carlsen, former executive editor of Family Handyman magazine and the author of "Reader's Digest Complete Do-It-Yourself Manual" and, most recently, "A Splintered History of Wood."

"If you have the time to wait until fall to do them, it will be less strenuous and more enjoyable," Carlsen says. Here's what else he suggests tackling this fall:


1. Insulate the attic

"Going up into the attic on a hot day isn't something I would choose to do," he says. But there is another reason to wait until fall to do any projects that have to do with insulating your home. "You can feel a draft when the weather starts to cool down," he said. "That's an easy way to tell where you need to improve your insulation."


2. Become energy efficient

Caulking around windows, doors and siding is a simple, inexpensive way to save some money, said Carlsen. "Unless you keep warm air in and cold air out, money is going out the smokestack," he says. A trick he uses to test where you need to caulk is to walk around the interior of your home with a lighted incense stick. "If the smoke starts blowing, that tells the story pretty quickly," he says.

Carlsen recommends using silicone caulk because it's flexible, waterproof and crackproof. You do it on the outside of your home, so make sure you do it before it gets too cold. "If the temperature drops below 40, you shouldn't caulk," because the caulk won't take as well, he warns.


3. Clean the gutters

"Moisture is the number one problem in maintaining a home," says Carlsen. "Getting moisture away from the foundation is key. And the way the do it is to clean your gutters and check your downspouts to make sure water is being funneled away from the house." Clogged gutters in the winter mean ice can build up and cause damage. "In the spring, you want them running free and clear, so do it as soon as all the leaves are off the trees."

Another place where moisture can build up is between the slats of a wood deck. Carlsen offers a simple way to clean them out. "Take a dull handsaw and run it between each board and push the crud out. If you don't, moisture can build up, and you get mold. This will help the wood to breathe, and it will look better, too."


4. Plant a tree

Because trees are dormant in the fall (as they are in the spring), it's easier on the root system, says Carlson. Think about where you plant it so that it can help with saving energy, he advises. If you get it in the right position, it will be a windbreak in the winter, and provide shade in the summer. "Plus," he says, "It's a fun project."


5. Organize the garage

Right now, you've probably got bicycles, lawn tools and the beach umbrella taking up the space your car could occupy, if only you could get everything back where it belongs. "A lot of people never get their car inside the garage in the winter because the garage is overflowing with stuff," said Carlsen. "There are so many great organizing systems -- shelving, hooks that allow you to hang bikes from the ceiling -- that you can get everything into a place and find room for your car." And it's easier to get junk to the dump on a nice fall weekend than a cold, wet, winter day.

And while you are in the garage, advised Carlsen, check the snowblower, shovels and snow brushes to make sure everything is in working order. It's easier to buy replacements in the fall, before the first snow sends everyone to the hardware store.

One other benefit to cleaning the garage: It allows you to be outside to enjoy the beautiful fall weather.

That is what Hyedi Cribben and her boyfriend intend to do, after all the hard work they've put in earlier this fall on their patio. Cleaning that site, putting up a fence, and laying stone and sod have taken up all their free time since the weeks after Labor Day. And now, two weeks into October, it's nearing completion. Said Cribben, "We might even have a week or two to enjoy it before it gets too cold here."


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]]>caulkcleaning guttersenergy efficientfall home improvementgaragehome improvementhome improvementsHomeImprovementHomeImprovementsorganizePatioSpike CarlsenPatricia Orsini2010-10-13T12:31:00 00:00First-Time Homebuyers Leap at Good Dealshttp://realestate.aol.com/blog/2010/10/06/first-time-homebuyers-take-leap-get-good-deals/http://realestate.aol.com/blog/2010/10/06/first-time-homebuyers-take-leap-get-good-deals/http://realestate.aol.com/blog/2010/10/06/first-time-homebuyers-take-leap-get-good-deals/#commentsFiled under: ,

Suni and Ashwin Raghu are under contract on a four-bedroom, 2.5-bath home in Long Hill, N.J.. The expectant parents, who looked at close to 70 homes in the course of their search over the past three months, were a bit surprised to find themselves at this juncture. Six months ago, says Ashwin, they didn't think they were ready to enter the ranks of homeowners. "It was an opportunity," he says. "It's a good time to get in, rather than wait it out. I think home prices are about as low as they can get. And the interest rates are very low."

Buying a home is a big commitment. And for those who have never made it, it's daunting. Given the problems in the housing market during this recession -- from bad mortgages to declining home values -- many potential first-time buyers are hesitating when it comes to dipping a toe into the waters of homeownership. (See "How to Shop for Your First Home.")

But more and more are eagerly signing on the dotted line.
Still, there are concerns. "We've never owned a home before, so we were not sure if we'd have the time and the resources to keep up with a house, especially with a new baby," says Ashwin, a project manager at a financial services company.

In addition, he says, "There is always the concern that one of us might lose our job. But that's true of any
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economy." After weighing the pros and cons, he says, he and his wife (who is due to deliver their child in November) decided that the timing couldn't get much better. So they are hoping that their bid, in the $400,000 to $500,000 range, will be accepted. "I'm feeling pretty positive about this," he says. "I think, in this market, we are getting a great deal."

First-time-homebuyer jitters are not uncommon, says Suki Marsh-Shikiar, the Raghus' real estate agent and a sales associate with Weichert Realtors in Short Hills, N.J. "I meet a lot of people who come to open houses to look, but they are hesitant to buy," she says. "When I call them to follow up, they don't return my call."

However, she says, the ones that do respond are "ready, excited and eager to buy. If they've been pre-approved, they are ready to move full-steam ahead."

What keeps first-time buyers from getting into the market? There are a number of concerns that cause buyers to hesitate, according to Heather Gilheany, Marsh-Shikiar's partner at Weichert.

"The biggest problem is confidence in the general economy and job security," she says. "Even while they are looking at homes, they are saying, 'Maybe we should just keep renting because life is so uncertain. We should stick with the lifestyle we know.' "

While there isn't much that she can say to relieve people of that fear, she does address others, such as the worry that a mortgage will have hidden fees and charges.

"We steer clients reputable mortgage brokers," says Gilheany. "Mortgage requirements are so stringent right now that even people who have good credit ratings and money in the bank are having a tough time getting approved." A reputable broker will ensure that the terms of your mortgage are clear and defined.

Concerns about whether home prices will continue to decline are real, says Marsh-Shikiar. "But if someone is looking to buy a home, not a cashbox, they will do fine," she said. "The days of great appreciation in a home are over. If you think you will want to move in a few years, buying now is not a good idea. But if you believe you will be staying in your home for several years, now is a great time to buy."

The condition of a home is a huge concern for buyers. The Raghus were right to be concerned about keeping up with home maintenance. Bills can pile up fast. (See "The Hidden Costs in Home Buying.")

A thorough home inspection will help alleviate those fears, said Gilheany. "Buyers are doing exhaustive inspections," she says. "Radon, oil tanks, roof, chimneys -- people are checking out everything they can before putting in an offer."

Finally, there is the concern that a better home might come along. "I always tell buyers, finding a house is a lot like falling in love," says Gilheany. "When they see the right house, they won't have any hesitation."

For the Raghus, despite some uncertainties, they found a home that they knew was right for them. And they didn't want to pass up a good time to buy. "The sellers were motivated, and willing to negotiate," says Raghu. "We got a very good deal; we wouldn't have been able to buy this house three or four years ago. With our life situation and the way the market is now, we decided this was a great opportunity we shouldn't miss."

For more on first-time home-buying and mortgages see:
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]]>economyfirst-time buyersFirst-timeBuyershome inspectionsHomeInspectionshousing pricesHousingPricesjob securityJobSecuritymortgage ratesMortgageRatesNew JerseyNewJerseyPatricia Orsini2010-10-06T13:10:00 00:00Homeownership Declines in Popularity as Safe Investmenthttp://realestate.aol.com/blog/2010/09/17/homeownership-declines-in-popularity-as-safe-investment/http://realestate.aol.com/blog/2010/09/17/homeownership-declines-in-popularity-as-safe-investment/http://realestate.aol.com/blog/2010/09/17/homeownership-declines-in-popularity-as-safe-investment/#commentsFiled under: ,

Consumers' attitude toward homeownership has worsenedThe mood of homeowners has not improved much since the beginning of the year. In fact, it's gotten a little darker. Respondents to a new survey conducted by Fannie Mae shows that 67 percent of respondents consider owning a home a safe investment.

That's a decline of 3 percentage points from the beginning of 2010, when 70 percent felt good about owning a home. In 2003, 83 percent of respondents said that they felt that putting money into a house was a good investment.

"Homeowners and renters alike continue to be wary of taking on risk, and they are less confident in the long-term outlook for housing," said Doug Duncan, VP and chief economist for Fannie Mae.
There was some good news in the Fannie Mae National Housing Survey, which polled homeowners and renters in June and July. A majority of the respondents, 78 percent, said they believe that home prices will remain flat or increase over the next year. And 70 percent said it is a good time to buy a house. Of course, those who need to sell their homes are not feeling as optimistic; 83 percent said it's a bad time to buy a house.

That negative feeling was echoed in the 33 percent of respondents who said that, if they were going to move, they would rather rent than buy a home; that number was 3 points higher than it was in a similar poll conducted in January.

Translation: People are taking a second look at homeownership, wondering if it's all it's cracked up to be.

One potential buyer told the The Wall Street Journal that "owning a home looks like an 'economic trap,' " and that while 10 years down the road he might want to purchase a home, being "mobile and adaptable" is what is most important now.

The inability to move from a home because it won't sell it is one huge reason that people are souring on the idea of homeownership. While many expect housing prices to slowly rise, it can't happen quickly enough for those who need to sell their current home in order to take a job in another town.

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With 4 million homes listed for sale as of July, it would take 12.5 months to sell all the homes, according to the National Association of Realtors. And once these homes do sell, economists do not expect prices to rise like they did before the housing bubble burst. Mark Zandi, an economist with Moody's Analytics predicts that home prices might begin rising again by 2013; after that, they will begin to slowly rise at the rate of 3 percent annually. It could take 10 years to return to the peak prices of 2008.

Time magazine reported recently about "the dark side of homeownership: foreclosures, neighborhoods plagued by abandoned properties and decreasing home values, and a nation in which families have $6 trillion less in housing wealth than they did just three years ago."

Not everyone is buying it, of course. The president of the National Association of Realtors responded to the story with a letter stating that research "has shown that home ownership contributes to stable communities helps reduce crime and improves academic achievement." And other housing advocates contend that paying a mortgage is a sort of forced savings.

But for some Americans, purchasing real estate these days is feeling more like a gamble than a sure thing. For them, paying rent may not be the American dream, but at least it lets them pursue other dreams.

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]]>Fannie Maeforeclosureshome ownershiphome salesNational Association of RealtorsrentalsPatricia Orsini2010-09-17T11:15:00 00:00How to Get Pre-Approved for a Mortgagehttp://realestate.aol.com/blog/2010/09/09/how-to-get-pre-approved-for-a-mortgage/http://realestate.aol.com/blog/2010/09/09/how-to-get-pre-approved-for-a-mortgage/http://realestate.aol.com/blog/2010/09/09/how-to-get-pre-approved-for-a-mortgage/#commentsFiled under:

getting pre-approved for a mortgageStories abound about people who couldn't qualify for a mortgage. The problem, say experts, is that people aren't providing the bank with all the documents that they need to prove that they will be able to manage a mortgage.

"You hear it all the time, 'Oh, nobody can get a loan,'" said Todd Huettner, principal of Huettner Capital and a mortgage broker in Denver, Colo., "but it's not true." The increased amount of paperwork means that there's a greater chance you might overlook something that causes your loan to be denied, says Huettner, but if your financials are strong and you fill out the paperwork correctly, you can get a loan.

Huettner said that he had one client who, because his credit cards had recently been stolen, had opened new accounts. It happens everyday, but that's something that sends up red flags when you're attempting to obtain a mortgage. "Opening new credit card accounts right before you apply for a mortgage makes a bank nervous," said Huttner. "The client didn't realize this would be an issue -- he paid off his credit cards, and thought that he was in good shape. Knowing the circumstances, I was able to address it proactively, before the underwriter could deny the loan."

What potential homebuyers need to keep in mind, said Huettner, is that getting a loan is not impossible. The key is to know how to approach getting pre-approved for a mortgage. Here are some tips for how to get pre-approved for a mortgage.



1. Find the right person to work with

"A lot of buyers start on the Internet, which is very convenient," said Steven Slotnick, a mortgage broker with Prospect Mortgage in Maplewood, N.J. "You can do the calculations yourself, and you can play out some what-if scenarios, and get an idea of what you can afford. But it's impersonal. And if you have anything other than the most basic financial situation -- been in the same job for several years, one savings account, one checking account -- then you might have issues you don't even know about that could hold up a loan."

Slotnick said that the best recommendations for a mortgage broker or loan officer will come from someone who has successfully obtained a mortgage. "If they were successful, someone did something right," he said. "Ask them who they used." Realtors and real estate attorneys also can provide recommendations. The important thing, said Slotnick, is to find someone who's asking the right questions.

"If they're asking the important questions that go beyond what your income is -- what kind of work do you do, how many children do you have, how long do you intend to stay in your house -- then they probably have your best interests at heart."
Those questions, he said, help the mortgage broker or loan officer understand what your monthly expenses are and how much of a mortgage you can really afford, which is the first step toward pre-approval.


2. Assemble the correct paperwork

Once you find someone whom you can work with, you will need to start gathering all the pertinent financial information. You can actually start pulling this together before you're ready to go through the pre-approval process. The important thing is to know where all the information is.

According to Slotnick, at minimum you will need to be able to produce these documents to start the pre-approval process:
  • One month of paystubs
  • Two years of W-2s, or two years of tax returns if you're self-employed
  • Bank statements from the last two months
  • If you are currently renting, proof of the last 12 months of rent payments

"With these documents, I can pull a credit report and get the complete picture of someone's financial situation," he said. "If they have a more complicated financial situation, as when someone is involved in a business partnership, the process gets more complicated. Then, we will start asking for more documents."

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3. Create a budget

Your loan officer or mortgage broker should also help you create a budget. "A good mortgage broker will look not just at your income, but your expenses, and find out how much you can really spend on a home," said Huettner. "When we go through the finances, I ask the buyer what they feel they can afford each month. And I make sure they understand what they will need for closing costs and escrow, based on the mortgage they want. All of this will help a buyer determine how much of a mortgage they really can afford."


4. Get more than one quote

You should definitely shop around for a mortgage, advises Slotnick. "The borrower should get two or three reputable quotes," he said. However, there is no need to go through the entire scenario more than once. Instead, a buyer can contact other lenders with the information that they were pre-approved at a certain rate for a certain amount, and ask how other lenders compare. "Ask for their rates and closing costs, and see if there is a difference," said Slotnick. "And if there's a big difference among lenders, make sure you have those quotes in writing before you commit to one over the other."

Slotnick says that a buyer can expect pre-qualification within 24 hours and a full mortgage commitment in about 10 days, he said. In the end, though, it's the ability of the borrower to produce the right documents and answer all the questions that need to be answered. "The borrower's thoroughness determines the length of the process," he said.

"Even for people who have a very straightforward financial situation, it's the fine details that can trip you up," said Huettner. "You have to work with someone who is knowledgeable enough about the process that they will ask the right questions and be able to identify red flags before they get to the underwriter."


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]]>loan officermortgagemortgage brokermortgage pre-approvalMortgagePre-approvalpre-approvalpre-approved mortgagePatricia Orsini2010-09-09T13:31:00 00:00Real Estate Terms and What They Meanhttp://realestate.aol.com/blog/2010/09/08/real-estate-terms-and-what-they-mean/http://realestate.aol.com/blog/2010/09/08/real-estate-terms-and-what-they-mean/http://realestate.aol.com/blog/2010/09/08/real-estate-terms-and-what-they-mean/#commentsJaime Uziel knows that as a real estate attorney his clients depend on him to interpret the legalese that's part of any real estate transaction. He's happy to do that, he says, but he also tries to educate his clients about real estate terms and what they mean.

"They are the ones signing these documents, and they should know what it all means," says Uziel, who practices in San Francisco. "I want them to know what a title is and what exactly goes into closing costs."

Here are common real estate terms that homebuyers encounter when they work with real estate agents, mortgage brokers and real estate attorneys. Be prepared by knowing these real estate terms and what they mean before you sign on the dotted line.

Appraisal: The price a property is valued at, based on comparable sales of homes in its vicinity. An appraisal is conducted by an appraiser. Appraisers sometimes work for mortgage lenders but more often are independent.

Assessed value: The value of the property for tax purposes. The value is determined by a tax assessor. A home can be appraised for one value and assessed at a different value.

Broker: A broker is anyone who earns a fee while acting as an agent to bring two parties together for a transaction. A Realtor is a real estate agent who is a member of the National Association of Realtors, and who often works for a broker. A mortgage broker is the person who puts together the loan for a lender but does not actually lend the money.

Closing: In most states, the closing is a meeting in which the buyer, seller, attorneys and sometimes the real estate agent come together to sign the documents that transfer ownership of the home from one party to another. This is where payments, or closing costs, are made, as well.

Closing costs: Typically, these include escrow fees, recording fees, title search and any other costs associated with obtaining the loan.
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Contingency: A condition that must be met for a contract to be legally binding. This term is used most frequently when talking about home inspections. For instance, when a buyer signs a contract for a home, but the deal is contingent upon the home passing an inspection. Sometimes, a seller can make a sale contingent upon their finding a home to buy within a certain number of days.

Down payment: This is the amount of the purchase price of the home that a buyer pays in cash. You cannot use a mortgage to pay the down payment on a home.

Equity: The difference between the value of the property and the amount still owed on it. If a home is worth $250,000, and the homeowner still owes $100,000 on the mortgage, then the owner's equity in the home is $150,000.

Escrow: The process by which a third party holds money for safekeeping until a transaction is closed.

Escrow account: The account where escrow funds are held, and from which the buyer's money is transferred to the seller and to pay fees in the sale. Once you purchase a home, you may have an escrow account with your lender to cover costs beyond your mortgage interest and principal, including taxes and homeowners insurance. The lender would make those payments monthly, rather than the borrower.

Home inspection: An examination of a home by a professional, who will evaluate the condition of a home for structural and mechanical defects. Most buyers make a satisfactory home inspection a contingency of purchase.

Lien: Claims against a property that must be paid off before a home is sold. A mortgage is considered a lien. Often, a seller still owes money on a mortgage or a home equity loan. When he sells his home, he must immediately pay off those loans, or liens, in order for the closing to be completed.

Loan-to-value: Often referred to as the LTV, it is the ratio between the amount of the loan and the appraised value or sale price of the home. The higher the LTV, the higher the risk for the bank.

Mortgage insurance: Insurance paid by the homebuyer to ensure that if the buyer defaults, the mortgage-holder still gets its money. Mortgage insurance is required when there is a loan-to-value ratio of higher than 80 percent.

Owner financing: A transaction in which the property seller provides the loan to the buyer.

Pre-qualification: Upon review of a borrower's finances, it is a loan officer's favorable opinion on the borrower's ability to qualify for a home loan. Becoming pre-qualified is often a buyer's first step toward obtaining a mortgage.

Rate lock: A commitment by a lender that an interest rate will be available for a specific length of time.

Right of survivorship: When two or more people own a home and one person dies, ownership of the home automatically will become the property of the survivor or survivors.

Tenancy in common: Two or more people may own a property, but in this case, if one person dies, ownership does not automatically go to the other owners. Instead, it could go to heirs, or whomever the deceased has named in a will.

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]]>appraisalassessed valuebrokerclosingdefinitionsdictionarydown paymentequityescrowescrow accountglossaryhome inspectionlienpre-qualificationreal estateReal Estate TermsRealEstateRealEstateTermsterminologyPatricia Orsini2010-09-08T15:40:00 00:00Manhattan Real Estate Values Climb as Inventory Fallshttp://realestate.aol.com/blog/2010/08/27/manhattan-real-estate-defies-national-trend/http://realestate.aol.com/blog/2010/08/27/manhattan-real-estate-defies-national-trend/http://realestate.aol.com/blog/2010/08/27/manhattan-real-estate-defies-national-trend/#commentsFiled under: ,

The national housing market may be in the doldrums, but Manhattan real estate is holding its own, at least for now.

Sales figures for July show that median prices on New York City apartments are up and inventory is down. And with the median sale price at $900,000, there doesn't seem to be a lack of money to spend on real estate. That contrasts with the national numbers for July, which show existing home sales fell 27 percent and new home sales fell 12.4 percent in July.

No one would argue that Manhattan's real estate market is not like the rest of the nation's. But experts are still asking: Can Manhattanites sustain this uptick in sales?
While no one expects too many sales in the $44 million range -- that was the selling price for a townhouse at 1009 Fifth Avenue purchased by Mexican billionaire Carlos Slim -- some question whether people will be willing to plunk down a mere $1 million for a two bedroom-one bath in Manhattan.

Wall Street may be in recovery mode, and hefty bonuses are again a reality, but not everyone is ready to party like it is 2007.

Manhattan real estate agent Dolly Lenz, a broker at Prudential Douglas Elliman, told The Wall Street Journal that she has noticed a little more hesitation among buyers whom she works with. "There is a lack of confidence and a lack of direction," she said. "There is no rush to buy, and people are gambling that prices are going down."

While the unemployment rate in New York City, at 9.4 percent, is a little below the national average of 9.5 percent, the same economic uncertainly that plagues people across the country also lurks in the back of the minds of New Yorkers.
But the numbers are pointing in the right direction.

A study by the Vanderbuilt Appraisal Co. contrasts Manhattan apartment inventory a year ago to today. Last summer, it would have taken 20 months to sell the available properties. Now, that number is down to 9.9 months. Nationally, housing inventory is at 12.5 months. And a study by real estate firm Brown Harris Stevens reports that Manhattan co-op and condominium closings rose 81 percent in the second quarter of 2010, compared to a year ago, the highest level since the third quarter of 2008.

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And, of course, as in any real estate market, if a property is priced right, it will sell. The seven-bedroom duplex apartment on Central Park West that Conan O'Brien sold last month for $25 million is the exception in this market. Most apartments are selling for much less. Sharon Baum, a broker with Corcoran Realty, told the Journal that a one-bedroom apartment on Park Avenue South was put on the market for just under $1 million and had 14 offers within a week.

"When apartments are priced right at all price points they will sell in a week," she said.

Ask Mike Love, one of the founding members of the Beach Boys. His Upper East Side three-bedroom condominium was on the market at the end of 2009 for $2.35 million. It finally sold earlier this summer -- fully furnished -- for $1.6 million.

Another factor that keeps Manhattan real estate on a more even keel than the rest of the nation is its ties to foreign markets, points out Jonathan Miller, CEO of the real estate appraisal firm Miller Samuels. "That sets us apart from the rest of the country," he told the New York Daily News.

One more indication that Manhattan real estate remains in demand: rental prices continue to go up, as well. The Real Estate Group NY's August Manhattan Rental Market Report says that rental prices are up 4.64 percent over August 2009. Inventories are tight, and vacancies are almost flat.

As long as New York City's unemployment rate continues to go down, Manhattan real estate will continue to rise in value.


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]]>Carlos Slimconan obrienmanhattan real estatemedian home pricesnew york city real estateunemployment ratePatricia Orsini2010-08-27T17:45:00 00:00Is Renting the New American Dream?http://realestate.aol.com/blog/2010/08/26/is-renting-the-new-american-dream/http://realestate.aol.com/blog/2010/08/26/is-renting-the-new-american-dream/http://realestate.aol.com/blog/2010/08/26/is-renting-the-new-american-dream/#commentsFiled under: ,

Today's homeowners aspire to ... rent?

That's what the majority of respondents to a Harris Interactive poll said when asked about attitudes toward renting. Seventy-six percent of those who responded to the May survey said that they believe that renting is a better option that buying a home in the current real estate market. Most interesting: 78 percent of those responding to the survey were homeowners.

Even with mortgage rates at historic lows, it seems that more and more people are considering putting their hard-earned dollars into a security deposit rather than a down payment on a home. With the national unemployment rate stuck at 10 percent, people are cautious about committing to a 30-year mortgage.

Tenant Steve Hamilton told The Wall Street Journal that since selling his Carlsbad, Calif., home two years ago, he prefers to rent. "When I see a steady increase in local jobs, that's when we'll step back into the market," he said. His current rent is just one-half of what he used to pay monthly for his mortgage.
And for many, the reality has hit home, literally: A house is a place to live, not a piggy bank that can be used to finance a lifestyle to become accustomed to. While housing values rose steadily in the past decade, homeowners were able to use the equity to pay for everything from cars to vacations to home improvements. And it was a just assumed that after a few years of owning a home, you could sell it, take the profit and buy an even bigger home. It was the American way, and it fueled a decade of spending.

But those benefits are gone for most homeowners. And if the only thing you have to look forward to as a homeowner is paying for upkeep and higher property taxes -- well, then maybe it's not all it's cracked up to be.

The recent financial crisis has changed the way people look at homeownership. "[I]t has meant that homeownership has gone from being pretty much an unmitigated good -- something that would provide stability -- and instead thrown a huge cloud of doubt over the value of homeownership for a lot of people," HousingWatch columnist Alyssa Katz told NPR in a recent interview.

With a glut of unsold homes on the market, there is no shortage of homes to rent. And that means competitive rental prices, and another reason that people might consider it a bargain to rent right now.

A report from the Joint Center for Housing Studies at Harvard, titled "The State of the Nation's Housing 2010," reports that rental vacancies have soared from 2006 to 2009, even with an increase in the number of renters. According to the study, the number of households renting an apartment or house rose by 3.4 million between 2004 and 2009. The Midwest saw the largest rise, with renters increasing by 13.4 percent. The South saw the largest number of renter households, with 1.2 million families turning to rental properties in that time frame.

While for much of the last century, owning a home was a sign of having "made it," that attitude is changing.

"When ... I sold in 2005 and moved into a rental," wrote a blogger on Housing Doom, "the usual response when we told a friend was, 'Are you guys OK?' Now, the usual response is, 'You were so smart to get out when you did.' "

It's a shift in thinking that will affect home sales for the short term. Longer term is still anyone's guess. But as long as the unemployment rate remains high, and home prices continue to flatline, the reasons for owning a home will be more about putting down roots rather than putting money in the bank.

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]]>home equityhomeownershipmortgagerentrent instead of ownPatricia Orsini2010-08-26T17:15:00 00:00Foreclosures at All-Time High, Buyers Are Bargain Huntinghttp://realestate.aol.com/blog/2010/08/23/foreclosures-at-all-time-high-and-buyers-are-bargain-hunting/http://realestate.aol.com/blog/2010/08/23/foreclosures-at-all-time-high-and-buyers-are-bargain-hunting/http://realestate.aol.com/blog/2010/08/23/foreclosures-at-all-time-high-and-buyers-are-bargain-hunting/#commentsFiled under: ,

Foreclosure rate dropped by about 5 percent in first half of 2010While experts predict that the rate of foreclosures in 2010 will exceed those in 2009, there is some good news. RealtyTrac, an Irvine, Calif.-based data company, reported that the foreclosure rate dropped by about 5 percent during the first half of 2010.

Still, in the first quarter of the year, one in seven mortgages was delinquent or in foreclosure. That's the highest rate since 1979, when the Mortgage Bankers Association began keeping records. Foreclosures remain high in several states, including Florida, California and Arizona. In Michigan, one in every 237 homes is in some stage of foreclosure, a number that is expected to grow.

On the upside, that means a lot of deals are out there for homebuyers who have the patience and energy to tackle buying a foreclosed home.
Foreclosure prevention programs are not working as well as the Obama administration had hoped. The Making Home Affordable Program had 96,000 trial modifications canceled by lenders in July, bringing the total number of canceled modifications to 616,000 since the program was started in February 2009. The total number of modifications that have been made permanent is 422,000.

The government isn't giving up on trying to help people stay in their homes, although it is looking for borrowers who will be most likely to continue paying a renegotiated mortgage. It will kick off another program for homeowners in September. Dubbed the "FHA Short Refinance" option, it will allow those who are underwater on their mortgages to refinance into an FHA-backed loan, as long as they are current on their mortgage and their lender agrees to write off at least 10 percent on the loan. Those who apply must have a credit score of 500 or better.

Even with these efforts by the government, as well as by individual banks to get borrowers to pay on their loans, there are still a lot of foreclosed properties just waiting to be bought. The shadow inventory of homes -- those that have been repossessed by banks or are in default and will be offered for sale -- was 7.3 million in the first quarter of 2010.

Which means that between the rock-bottom prices of some homes in foreclosure and today's low mortgage rates -- right now, the average rate for a 30-year fixed-rate mortgage is about 4.5 percent -- people with steady jobs, good credit and a 20 percent down payment will find some bargains.

Among those who are taking advantage of low prices are professional investors, who are snapping up properties at public auctions, to refurbish and resell the homes, or for use as rental properties.

But individuals, especially first-time buyers who don't have to sell a home in order to purchase a new one, are finding foreclosures to be a good deal. Josh and Amanda Brandt found their dream home when they made an offer of $129,000 on a short-sale for a home in Fuquay-Varina, N.C.

Others believe that home prices will continue to slide as the number of foreclosures stall the housing market. They are looking, but they are not in a hurry to buy. "We're still watching prices drop," Marion Lasswell, who lives near Raleigh, N.C., told Bloomberg News. "[We won't buy] until there is an awesome deal."


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]]>delinquentFHA mortgagesforeclosureMaking Home Affordable Programmortgage rateshort salesunderwaterPatricia Orsini2010-08-23T14:30:00 00:00Moving With Storage Containers: Packing, Unpacking Made Easyhttp://realestate.aol.com/blog/2010/08/23/moving-with-storage-containers-packing-and-unpacking-made-easy/http://realestate.aol.com/blog/2010/08/23/moving-with-storage-containers-packing-and-unpacking-made-easy/http://realestate.aol.com/blog/2010/08/23/moving-with-storage-containers-packing-and-unpacking-made-easy/#commentsmoving pods self storageWithout a storage container, Cher Woehl's cross-country move would not have been possible. Woehl had just three weeks to pack up her 4,500-square-foot home in California for a move to her fiancé's 2,200 square-foot log cabin Frederick, Md.

While she considered hiring a moving company to pack for her, she wanted a better way to sort and organize her belongings on such a short timetable. The solution: a storage container.

A portable-storage-unit company would drop a storage container at her home the next day, keep another container on reserve and deliver them to her new home across the country.

With a storage container in her front yard, Woehl was able to start taking stuff out of her home, clear it out little-by-little, and make the process of deciding what to take and what to leave a little easier.

"I need to lay everything out, take a look at it and then organize it," Woehl explains. "I knew there would be some things I would be packing up and not unpacking for a while. I needed a way to be in control of the packing process."

Using portable storage containers for moving is a fairly recent trend, says Josh Greene, director of Internet Marketing for 1800PackRat, which has been in business since 2003. He explains that this type of moving service is "midway between do-it-yourself and a full-service moving van, with some unique benefits.

"You can load and unload at your own pace," he said. "If it's helpful to move some things out before you start packing boxes, you can do that. There's just not the pressure to get everything done in one day."

There are many reasons people might want to use portable storage containers as a moving strategy -- "as many different reasons as there are people who store things" -- says Greene. Here are some of those reasons:


1. You can clear out the clutter in your home so you can stage it before a sale.

Storage containers can be delivered to your home as soon as you need them, often within days of calling. And you can decide how long the containers stay there. A lock on the unit keeps everything secure. Many staging professionals will tell you that the less cluttered a room is, the bigger it looks. So, if you can't live without Grandma's rocking chair, but your real estate agent thinks the open house will look better without it, go ahead and stash it in the storage container. Better there than in the musty garage.

2. Your belongings don't have to be unloaded into a warehouse if they need to go into storage.

You can't always time a move out of a home and into a new one the way you would like. For many reasons, you may have to move out of your current home for a month or two before you can get into your new one. If you're going into temporary digs for a while, your belongings can go into temporary quarters in a storage container, as well.

"We have handled all sorts of weird setups," says Greene. While a traditional mover would have to unload a moving van, put belongings into a storage warehouse, then reload the truck once it is ready to be delivered, a portable storage container can stay loaded, and go into storage. "We've had some unique logistical challenges with military moves," he said. "If someone is being deployed, their spouse might move in with family. So they put all their stuff into a storage unit for a year. It just provides a whole lot more flexibility that can't be maintained in a traditional move."

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3. You can take take some belongings with you, and put others in storage.

Whether it's a temporary move or a permanent one, sometimes you can't take it all with you. If you are finding it difficult to part with Great Aunt Clara's teacup collection, or you just want to save that baby furniture for the grandchildren, then loading it into the storage container and leaving it there until you need it will help you make light work when you unpack in your new home.

This is also an especially good solution for people who are moving overseas for a few years, said Greene. "If you are going to rent your home while you are away, and want to store most of your belongings, a container gets packed up, and it goes straight to a warehouse. There's no co-mingling with items from another move. Everything stays together."


4. You can unload slowly

Some people can take it all with them, but they want to take their time unpacking. And there are many reasons for that, says Greene. "Sometimes a new homeowner will be remodeling, and the work isn't done by move-in time," he points out. "If you can leave the furniture for that room in a storage container in your driveway, then you can unload as things become ready."

As for Woehl: One month later she is still trying to determine what -- from her extensive Christmas decoration cache and Fiestaware collection -- will make it into her new home. But she has the luxury to take her time and consider all her options. In fact, using storage containers proved to be the right choice for Woehl for another reason, something that she didn't quite foresee.

While she was concerned about the steep driveway at her new home, she had been assured that a truck could negotiate it. While there were some hiccups with the first container -- Woehl admits to overloading it -- the second one made it, and remains in her driveway a month after the move.

"We're slowly rearranging things in the house, figuring what we are going to keep, and what's going into storage," she said. "I don't know what I would have done if a moving van had unloaded everything in one day -- or if it could have even made it up the driveway."


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]]>movingmoving companiesMovingCompaniespackingstoragestorage containerstorage unitStorageUnitPatricia Orsini2010-08-23T04:45:00 00:00LIVE: Fannie Mae, Freddie Mac -- Dead or Alivehttp://realestate.aol.com/blog/2010/08/17/live-coverage-what-might-replace-fannie-and-freddie/http://realestate.aol.com/blog/2010/08/17/live-coverage-what-might-replace-fannie-and-freddie/http://realestate.aol.com/blog/2010/08/17/live-coverage-what-might-replace-fannie-and-freddie/#commentsFiled under: ,

The government wants to get out of the mortgage business. But can they do it without bringing a halt to what is already a stalled housing market?

This morning, industry leaders are discussing ways to reform Fannie Mae and Freddie Mac as part of the Conference on the Future of Housing Finance, which is being moderated by Treasury Secretary Timothy Geithner and Housing and Urban Development Secretary Shaun Donovan in Washington, D.C.

For more conference-related coverage on AOL Real Estate, read these columns by housing experts Alyssa Katz and Jeff Corbett.

Panelists include legislators, community activists, academics and bank executives, all of whom have an interest in the outcome of the reform process, including Barbara Desoer, president of Bank of America Home Loans; Mike Heid, co-president of Wells Fargo Home Mortgage; and Susan Wachter, a professor of Real Estate, Finance and City and Regional Planning at the University of Pennsylvania's Wharton School. Topics will cover housing finance reform and the broader financial markets, as well as housing policy goals.

When the financial fallout hit the market in 2008, the government bailed out Fannie and Freddie along with a lot of private banks. The banks have been able to pay back what it borrowed, but with Fannie and Freddie, the problems were so deep, the government is still pouring taxpayer dollars into the agency.

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But that doesn't mean the system is repaired. Earlier this month, Geithner said, referring to Freddie and Fannie, "We have a system that obviously didn't work, and there are fundamental aspects of the current system...that require sweeping fundamental change." What kinds of changes might Geithner be referring to?

The government is in a tough spot regarding these agencies. While they don't actually make the loans, they do buy and insure mortgages from banks; the two government-owned enterprises currently buy or guarantee 90 percent of loans being issued.

However, the government can't just disband the agencies without providing alternatives, since large investors say they would stop buying mortgage bonds if the government is not backing them. That could cripple an already fragile housing market.
Guy Cecala, CEO and publisher of Inside Mortgage Finance, told WNYC radio that, along with FHA and VA loans, "without Fannie Mae and Freddie Mac, there would essentially be no mortgage market in the United States. And that has huge ramifications for the housing market and the overall economy."

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A scenario expected to be discussed at the conference is one where the big mortgage lenders, such as JP Morgan and Citigroup, among others, create a cooperative. The idea is to preserve a system that had, up until 2008, worked quite well. It will work in the same way as Fannie and Freddie, but instead of being publicly owned, it will be owned by the banks. Mortgages would come into this co-op, then go out as mortgage-backed securities.

The only role the government would have in this scheme is as an insurer -- for a price. The banks would pay the government for insurance, which would cover the loans if an extreme market condition kicked in -- perhaps one as extreme as what happened to the markets in 2008. But in this case, the banks, because they own these loans, the theory goes, would be policing each other to ensure that no one takes on the bad loans that got the market into the long-term mess. The cost of insuring these loans will most likely fall onto the borrowers, who might have to pay a higher interest rate. But with interest rates at historically low levels, an increase in the interest rate might be a small price to pay for a more stable housing market.

Of course, change never happens quickly, and no one expects any reform measures to happen overnight. But with a fragile housing market, any changes will be gradual, taking place over the next several years as the agencies and banks ease into new roles.

What those roles will be is still anybody's guess. But the government is taking a step in the right direction, acknowledging that it can't continue to fund money-losing agencies at taxpayer's expense. No one believes that Fannie and Freddie should go on operating as they have.

Tuesday's conference is just the beginning of what will be a long process of change, as the government sorts out what can work and what won't. Geithner, for one, believes the government can figure it out. When speaking to a gathering at New York University earlier this month, he said, "This isn't rocket science."
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]]>Conference on the Future of Housing Financefannie maefreddie machome loansHousing and Urban Developmenttimothy geithnerPatricia Orsini2010-08-17T10:57:00 00:00For Sale by Owner: Answer These 5 Questions Firsthttp://realestate.aol.com/blog/2010/08/13/before-attempting-a-fsbo-answer-these-5-questions/http://realestate.aol.com/blog/2010/08/13/before-attempting-a-fsbo-answer-these-5-questions/http://realestate.aol.com/blog/2010/08/13/before-attempting-a-fsbo-answer-these-5-questions/#commentsWhen John Ullman wanted to sell his Portland, Ore. home 20 years ago, he knew he was going to have trouble selling it through conventional channels. "My wife was a potter, and we had a kiln in the backyard," he recalled. "By anyone's standards, that's a liability."

By anyone's standards except another potter. So rather than use a local real estate agent, who Ullman was sure would suggest that they spend money to tear out the kiln, he advertised it himself in Ceramics Monthly magazine. He found a buyer. "They even paid us extra for the kiln," he said. And a side career was born. Ullman, who runs a performing artists management agency, has since sold two other homes by himself.

Learning how to execute a "For Sale by Owner" (or FSBO), said Ullman, isn't for everyone. It takes a certain "mavericky" type of person, he said, to ignore the real estate agents who will try to convince you that only the pros can navigate the long road to selling a house.

The main reason that people take this on is simple: Homeowners can keep more of the money from home sales if they don't have to pay real estate agents' 6 percent commission. But it's not for everyone, experts warn.

"It's more work to sell your home without a broker," said Joanne Cleaver, senior content producer and spokesperson for ForSaleByOwner.com, a site that offers services and advice to homeowners contemplating a FSBO. "But a lot of the work you will need to do whether you use a broker or not. A real estate agent is valuable to help you list the property and show it. But they can't fix up the house for you or get all your documents in order. If you think that you can handle the marketing, you can think about doing this yourself."

Experts advise homeowners ask themselves these questions before attempting a home sale by owner:


1. Can you price your home competitively?

A real estate agent knows what homes are selling for in your area, and what buyers are willing to pay. You need to be realistic about how much your home is worth. Determine what a fair price is by doing your research. Check out home values on AOL Real Estate and scroll through the Multiple Listing Service, which is an aggregate listing of homes for sale in a geographical listing. No matter what you think your home is worth, you will only sell it if it's priced competitively.


2. Can you be a marketer?

One of the most valuable services a real estate agent provides, said Cleaver, is access to the Multiple Listings Service. Only licensed real estate agents can list a home with the MLS. Keep in mind that 93 percent of homebuyers began their search on the Internet, according to the National Association of Realtors. So if you don't have access to those listings, you'll need a good strategy.

Claire Celsi, a social media strategist and owner of Public Relations Project, in Des Moines, Iowa, has one. She is hoping to sell her 100-year-old, 3-bedroom, 1-bath home via Twitter. She is offering an incentive to her 2,600 Twitter followers to get the word out about her home: a $500 finder's fee. She's also hosting a party for those who live nearby to show people her home and to hand out flyers, and she's inviting her friends in the media, as well. "I'm hoping this is a unique enough approach that people will take an interest," she said.

Celsi, a professional marketer, is comfortable in this role. But not everyone is. If you don't think you can handle this aspect of selling your home you can for a fee, get access to the MLS through sites such as ForSaleByOwner.com.


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3. Can you be available?

If you use an agent, an open house is a chance for the sellers to take the afternoon to go to the movies. But if you are doing it by yourself, you need to be present to watch strangers peek into every corner of your house. And open houses are just the beginning. Buyers like to poke around at other times, too, so you will need to determine whether your schedule is flexible enough to be available to that one buyer who might be the one to buy your home.

"It's a huge time commitment," said Jaime Uziel, a partner with Sheppard, Rosen, Uziel and Sussman in San Francisco, a firm specializing in real estate law. "If the parties have already found each other -- like when a tenant decides to buy from an owner -- then I would say, definitely, yes, go ahead and sell your home without a broker. But if you are working a full-time job, it can be a difficult thing to do."


4. Can you answer the questions?

Those strangers poking around your home are also going to ask tough questions. "You need to be scrupulously honest and clear about what might be wrong with your house," said Ullman. "You will be sorry if you don't tell someone about a potential problem."

Cleaver said the best way to clear up any questions is to assemble a folder with receipts of maintenance and improvements, documentation of when you bought the home and any changes to the title. Not only will it demonstrate to the buyer that your roof really is just two years old, you can "look for any complications that could hold up a sale," she said. "If you never obtained the proper permits when you finished your basement, now is the time to get them."


5. Can you negotiate all the forms?

This is where you would do well to hire an expert, namely, a real estate lawyer. While laws vary state by state and city by city, said Uziel, disclosure statements -- which reveal information about the home to the buyer -- can be complicated and need someone who is familiar with the documents to ensure that they are filled out correctly. In addition, said Uziel, "you want to be sure you have a relatively solid purchase contract. There are so many laws that regulate the purchase of real estate, you want to make sure the contract you are using is a good one. A lot of forms out there don't cover issues specific to your location."


6. Can you handle the insults?

You have to remember this is a business transaction, and not take anything a potential buyer says personally. If you are going to do it yourself, you've got to let go of people who insult your house. Smile, and realize that someone is going to fall in love with it.

"When I told my father I was selling my house myself he said, 'Two hundred people might come through a house, but only one can buy it. Forget about the other 199 people'," he says. Ullman's father had some experience with selling homes, too. He was a real estate agent.


More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.


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]]>AolOriginalFor Sale By OwnerForSaleByOwnerFSBOlawyermaintenancenational association of realtorsNationalAssociationOfRealtorsopen houseOpenHousereal estate agentreal estate attorneyRealEstateAgentRealEstateAttorneyPatricia Orsini2010-08-13T21:17:00 00:00Make Moving Easy With a Moving Checklisthttp://realestate.aol.com/blog/2010/08/13/make-moving-easy-with-a-timeline/http://realestate.aol.com/blog/2010/08/13/make-moving-easy-with-a-timeline/http://realestate.aol.com/blog/2010/08/13/make-moving-easy-with-a-timeline/#commentsmoving checklistThe first thing Niamh Cahill did after she signed a contract to buy her new home in New Jersey was to map out a moving checklist.

"I had to break it down, to think small at first," she said. "If I thought about the whole move, I would have been completely overwhelmed." So she called the movers, set a date, and then started planning.

There is no one-size-fits-all strategy for counting down to moving day. The important thing is to make a plan, says Audrey Dickson, quotation analyst with U-Pack, a national moving company based in Fort Smith, Ark.

"We are a land of procrastinators, and unless there is a deadline, we won't do it," says Dickson, who for five years has been advising stressed-out people on how to pack for long-distance moves.

"The first thing you need to do is nail down that moving date," she says. Even if you have to change it, you'll have a lot more leeway if you book a mover in advance. Once you have the date, she suggests, create a moving checklist to get you to moving day with the least amount of hassle.

Here are expert tips for creating your own countdown to moving day, based on U-Pack's guidelines for a two-month timeframe.


8 weeks before a move:

"People in the middle of a move have a million things to do," Dickson says. "It's easy to lose track of things. So keep a file of important information -- such as contacts for your mortgage broker, your banker, and your mover -- right at your fingertips."

This is also the time to start thinking about your new space and planning where your belongings will go in your new home. Cahill created a color-coded floor plan, then labeled boxes for each room with stickers that matched the colors on the floor plan.


7 weeks before a move:

Take some time to do research about your new town, Dickson urges. This includes getting referrals from your current doctors and dentists for new medical care. Get copies of your family's medical records, and arrange for your children's school records to be transferred to their new schools.


6 weeks before a move:

Decide what belongings to keep and what to throw away. "Whether you sell it or give it away, do whatever it takes to clear out as much as you can before you start packing," says Dickson. "It will save you time and money in the long run."

This is also the time to stop shopping for anything you don't absolutely need. "The trips to Costco should stop right about now," she suggests.


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5 weeks before a move:

If you haven't done it already, call your mover to have them deliver boxes and moving supplies. "You can never have enough boxes," says Itamar Kestenbaum, community manager for Moishe's Moving, located in Jersey City, N.J. "Any moving company will take back the boxes that you don't use. So always overestimate what you need."

This is a also a good time to determine how you will label your boxes for the movers, he says. "It's important to color-code or label each box, so the movers know what boxes go in what specific room. The last thing you want to do is find bedroom stuff in the kitchen."


4 weeks before a move:

Plan ahead for utilities to be disconnected at your old house and connected at your new place. Give yourself a window of a week on both ends, advises Dickson. "You don't want to be packing in the dark, so ask for electricity to be shut off a couple of days after your scheduled move. And have the power on at your new home a couple of days before."

If it's important to have your Internet connection up and running as soon as you move in, schedule an appointment with your cable company for the day after your move, or on a day when you know that you will be there. And make sure you have your router and other essential equipment in well-marked boxes.


3 weeks before a move:

"If you are moving into or out of an apartment, you have to reserve the elevator for the move," explains Kestenbaum. "Don't wait until the day before the move to book it. Make sure it will be available." He also advises people to find out what the parking situation in front of their building is. If you need to get a parking permit for the truck, now is the time to do it.


2 weeks before a move:

By now, you should be whittling down your cleaning supplies and perishables. Plan meals around what you have so that you can empty out the refrigerator.

This is also a good time to visit your bank and tie up loose ends, as well as clear out safety deposit boxes.


1 week before a move:

You should be down to your most essential items. As you put these things into boxes, make sure these are labeled "Essential" or "Unpack First." While most boxes do not need an inventory of what's inside, it will make unpacking a lot easier if you take a few minutes with a Sharpie to write the contents of these boxes on the side of the box.


Moving Day!

Discuss with your movers what items you will need right away, whether it's beds, kitchen items or computer equipment. "These items should be loaded into the truck last so that they can be first off at your final destination," Dickson points out. If your move is across town, you can put some items in your car. But if it's cross-country, you'll need to make sure that the boxes you want first are set aside on moving day.

Finally, check every room, closet and cabinet to make sure everything is out of the house.


Because she was moving just a few towns away, Cahill could have been more casual about her timeline. After all, if boxes weren't packed, throwing the last few items in the car wouldn't have made much difference, right?

Wrong, she says. Making a plan and sticking to it was the only way to get everything done.

She didn't put anything off, including packing her closet. "I decided to live out of a suitcase for a month," she says. "A month before the move, I packed some clothes for work and some clothes for the weekend into one suitcase. Everything else went into boxes. And I was able to cross one more thing off my list."


More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
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Want to learn more about home buying and home finance? If so, you won't want to miss
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created by AOL Real Estate in participation with Bank of America Home Loans.
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]]>apartmentboxesguidesmoversmovingmoving truckpackingtimelineutilitiesPatricia Orsini2010-08-13T10:25:00 00:00Unpacking After Moving: Just as Tough as Packinghttp://realestate.aol.com/blog/2010/08/12/unpacking-after-moving-just-as-tough-as-packing/http://realestate.aol.com/blog/2010/08/12/unpacking-after-moving-just-as-tough-as-packing/http://realestate.aol.com/blog/2010/08/12/unpacking-after-moving-just-as-tough-as-packing/#commentsunpacking moving boxes after a moveBy the time the movers left her new home in Maplewood, N.J., Niamh Cahill was surrounded by more than 50 moving boxes. But after five weeks of packing for this move, she wasn't going to let unpacking a few moving boxes intimidate her.

The key to successfully unpack moving boxes, say experts, is to plan well on the packing end of your move. Cahill had placed colored stickers on her moving boxes, and provided the movers with a color-coded floor plan, so that boxes ended up in the proper rooms. She packed her moving boxes with only those items that corresponded to the specified rooms. And she made sure that the items that she would need to get her up and running quickly in her new home were at the ready.

It is that type of planning that will make unpacking moving boxes manageable, says Audrey Dickson, quotation analyst at U-Pack, a national moving company based in Fort Smith, Ark.

She and other experts offer these tips to make unpacking moving boxes go smoothly:



1. Last in, first out

"An unload is as good as its load," said Dickson. She's referring to how the movers load the moving boxes and furniture into the moving van. It's important, she said, to discuss with your movers what items are most essential to get your home up and running, and which ones will be put aside. "I advise bedroom furniture to be loaded last. That way, when it comes off the truck, it will be easy for the movers to carry it to bedrooms, and they won't have to traipse through piles of moving boxes in the living room."


2. Set up the most important room in the house first

"If what you need to do to feel at home is to have a meal with your family, then get the kitchen set up first," said Dickson. "Decide what will make you feel most in control of your new environment. If that means you are sleeping on the mattress on the floor until you can get to the bedrooms, then do it."

Itamar Kestenbaum, community manager of Moishe's Moving, based in Jersey City, N.J., agrees. "Tackle it room by room. It's the strategy for packing up, and it works just as well for unpacking," he said. "If the kids can unpack their own rooms, ask them to get started. It will help them get familiar with their new surroundings."

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3. Break down tasks into manageable pieces

When it comes to unpacking, smaller deadlines are better than one big deadline, said Dickson. "Decide what rooms are most necessary to pull together, and focus on those."

Kestenbaum advises his clients to break each unpacking task into its smallest components. "If you are unpacking the living room, say, 'I'm going to unpack this bookshelf,' then take a break. If you are doing the bathroom, say, 'I'll finish the linen closet.' It's not overwhelming if you split it into smaller pieces."


4. Find a space to set aside things you don't know what to do with

You can lose your momentum if you get stuck trying to decide what to do with a piece of furniture, a moving box full of books, or that Crockpot that you haven't used in two years. Find a corner in the attic, basement or spare room where you can put moving boxes that you don't quite know what to do with, and get on with the task at hand, advises Dickson. "Moving is so emotional, and trying to part with things that mean something to you can be more stress than you need. So don't force yourself to make decisions. Put the item out of the way. And if, after three months, you still don't know what to do with the items, donate them or have a yard sale.

The "should they stay or should they go" items that Cahill grappled with most during her move were the 15 moving boxes of books that she ended up packing. A voracious reader who finds it difficult to part with anything she has read, she admits that she had second thoughts about her decision to not give any books away as she boxed them up. "While I was packing, I was worried that I would be swimming in books, and I would never get around to unpacking them," she said.

However, waiting for her in her new home was a wall of bookshelves in the attic. The previous owner of her new home, a former librarian who shared her love of books, had them built many years ago. So, Cahill placed colored stickers on her moving boxes that directed the movers to the attic, and while it took her a few weeks to get to those boxes, she said that she made the right decision. "All the books fit," she said. "Those were the easiest moving boxes to unpack."

"I'm pretty well-organized. And moving really improved my sense of organization," she said. "While I was packing, I saw everything I had, and planned what room it would go into in the new house. It took me a while to unpack, but I knew where everything was, and where it was going to go. It wasn't chaotic."


More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
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Want to learn more about home buying and home finance? If so, you won't want to miss
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]]>boxesmoversmovingmoving vanMovingVanpackingunpackingPatricia Orsini2010-08-12T19:36:00 00:00Gulf Spill Update: Florida Real Estate Developer Sues Halliburtonhttp://realestate.aol.com/blog/2010/08/09/gulf-spill-update-florida-real-estate-developer-sues-halliburto/http://realestate.aol.com/blog/2010/08/09/gulf-spill-update-florida-real-estate-developer-sues-halliburto/http://realestate.aol.com/blog/2010/08/09/gulf-spill-update-florida-real-estate-developer-sues-halliburto/#commentsFiled under:

The largest landholder in the Florida Panhandle is suffering huge losses due to the BP oil spill. And it's looking for someone to pay.

The St. Joe Company, a real estate developer in Florida that owns 577,000 acres of land near the Gulf Coast, filed a suit against Halliburton Co. on Aug. 4, asking for more than $1 billion in damages. St. Joe filed the complaint against the oil-services company, it said, because Halliburton, which helped to build the oil well, "ignored multiple warning signs" that the rig was unsafe and could have helped prevent the disaster. Halliburton is perhaps best-known as the company Dick Cheney ran as chief executive before becoming vice president under George W. Bush.

Although the well was owned by BP, St. Joe said in the complaint that Halliburton's work encasing the well in cement was not properly managed, "allowing oil and gas to escape the well, which caused the catastrophic blowout."
"We believe that Halliburton was grossly negligent and bears full responsibility for this tragic accident," said William A. Brewer III, partner at Bickel & Brewer, and lead counsel for St. Joe.

St. Joe claims the fallout from the spill has resulted in lost business at its resorts. The company has suffered a huge decrease in its stock price -- which fell by 40 percent shortly after the explosion -- and a $1 billion drop in market capitalization.

The real estate developer, based in Watersound, Fla., is not the only one suing Halliburton; other Gulf Coast residents and businesses have filed lawsuits against the company. And many have targeted other players in the disaster, including BP PLC and Transocean Ltd.

However, St. Joe is one of the first publicly traded companies seeking compensation by claiming damages due to a loss of investor equity.

Brewer said that St. Joe sued Halliburton first because they expect this to be the quickest way to collect damages and repay shareholders. He said that suits against other companies involved in the disaster are to follow.

The company, which develops resort, residential and commercial properties, about 70 percent of which lie within 15 miles of the Gulf Coast, posts weekly updates and photos of pristine beaches on its website to allay visitors' fears about the condition of the water and beaches due to the Deepwater Horizon catastrophe.

"We have had two incidents of minor tar ball activity from June 19-June 22," it states on the website for its Water Color Inn and Resort on Santa Rosa Beach, Fla. "In both cases the clean up effort was completed swiftly. Furthermore, the owner of Water Color Inn and Resort, The St Joe Company, has contracted an outside firm to do daily inspections of the beaches.... We will continue to monitor the conditions on our beach."

Photos show the beach as of Aug. 2, with families enjoying clear water on white, sandy beaches. Hotels are just one part of St. Joe's business. The company also develops resort communities. In its report on second-quarter 2010 earnings, the company announced a net loss of $8.6 million. The statement also noted that contracts on a total of 36 homesites throughout its communities were accepted in the second quarter.

While the company continues to move forward after the oil spill, said St. Joe CEO Britt Greene in a statement, the losses have been a burden on the company. He said that his company's lawsuit against Halliburton "represents an important first step in our effort to achieve a full and complete recovery for the damages suffered by St. Joe."


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Find real estate markets in Florida.
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]]>bp oil spillDeepwater Horizonfloridagulf coast oil spillgulf coast real estateHalliburton HALresort communitiesSt. JoePatricia Orsini2010-08-09T11:41:00 00:00The Right Moving Supplies for a Smooth Movehttp://realestate.aol.com/blog/2010/08/05/the-right-packing-supplies-for-a-smooth-move/http://realestate.aol.com/blog/2010/08/05/the-right-packing-supplies-for-a-smooth-move/http://realestate.aol.com/blog/2010/08/05/the-right-packing-supplies-for-a-smooth-move/#commentspacking materials for a moveKeats Myer decided that in order to save money when she moved her family from New Jersey to New Hampshire, she would do as much of the packing herself as she could. And if an item was coming with her, she explains, it wasn't going to break. Her moving supply of choice: bubble wrap.
.
"I had tons of it," she says. "I packed all my glassware, all my vases and photos. And nothing broke."

Eric Fierst, director of operations for Fry-Wagner Moving and Storage in St. Louis, agrees that bubble wrap does the trick -- although "tons" might be overkill, he says. Professional packers choose moving supplies carefully. The right supplies can save you money, protect your belongings and make packing and unpacking easier.

Fierst offers these tips from the pros for choosing and using moving supplies.


1. Match the packing boxes to the contents

When it comes to moving supplies, cardboard boxes can be your biggest expense. But while you might be tempted to go from store to store asking for empty boxes, Fierst doesn't recommend collecting boxes of all shapes and sizes. "It will take the movers longer to pack the truck, and there will be wasted space. It could end up costing you money."

Movers use standard-size boxes, as well as specialty boxes for items such as mirrors and artwork.

The key, says Fierst, is to use the right box for the right items. "Don't put a shelf of books in a box meant for linens. It will be too heavy to lift." And do make sure that you fill the box. The more items that are loose in a box, the more likely something inside it will break.

Fierst also suggests saving money by asking your moving company for used boxes. Moving boxes have a two- or three-move life expectancy, he says, and movers often offer used boxes at no fee. If you are doing it yourself, you can go online to find local sources for used moving boxes.


2. Stock up on packing paper

The packing supply of choice for professional movers? Paper, paper, and more paper.

After boxes, blank newsprint paper and tissue paper are the most used moving supplies. "Bubble wrap is not the best thing for the environment, and it creates dead space," Fierst points out, which can cause breakage if things are not packed tightly. "When packing fragile items, it's important to have a lot of material around an item; you can do that more easily with paper than with bubble wrap."

If you don't want the Sunday comics on your Waterford vase, keep your newspaper in the recycle bin and invest in a box of blank newsprint.


2. Use the right kind of packing tape

The right kind of tape is important for two reasons: keeping your box closed and making it easy to open.

"I've seen people use duct tape, masking tape and reinforced tape," Fierst says. "They either don't stick, or they are too hard to open. Use old-fashioned packaging tape, the 2-inch wide kind. It's easy to handle, it sticks well, and you'll be able to cut through it when you open your boxes."


3. Get yourself a box cutter

Once you are ready to unpack those boxes, you don't want to break all your nails (or anything within the box) trying to get the tape off. A box cutter, an important unpacking supply, will slice through the packing tape easily. And if you need to break down your boxes for recycling, the box cutter will make that job a lot easier.


4. Don't forget the Sharpie

The Sharpie is a small but mighty packing tool. Unless you want to play "what's inside this box" when you get to your new house, make sure you label your boxes. "You don't need an inventory of every item," says Fierst. "But a general idea, as well as the room you want it to go to, will really help when you unpack that box."


Once you do unpack, what do you do with the debris? "That was my biggest question," says Myer. She couldn't believe the amount of moving supplies and boxes that littered her new home. Her used boxes had already made two previous moves, so she flattened them, packed up the paper, and took them to the recycling area at the town dump. (For additional eco-minded tips see AOL's "Green Moving Guide.")

Other options include asking the movers if they'll come back to pick up the boxes or saving them for the next move. That wasn't an option for Myer. "I don't want to think about another move," she says.


More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.


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]]>moversmovingmoving suppliesMovingCompanyMovingSuppliespackingpacking paperPackingBoxesPackingMaterialsPackingTapePackingTipsPatricia Orsini2010-08-05T14:09:00 00:00New York's Finger Lakes Region Draws Wine-Loving Homebuyershttp://realestate.aol.com/blog/2010/08/05/new-yorks-finger-lakes-region-draws-wine-loving-home-buyers/http://realestate.aol.com/blog/2010/08/05/new-yorks-finger-lakes-region-draws-wine-loving-home-buyers/http://realestate.aol.com/blog/2010/08/05/new-yorks-finger-lakes-region-draws-wine-loving-home-buyers/#commentsFiled under: ,

If there is anything that will help sell a property or a neighborhood, it's a celebrity. And the Finger Lakes Region of central New York State got a boost when rumors started spreading last month that John Travolta and wife Kelly Preston were looking at a home on Keuka Lake.

Whether Travolta ever expressed interest in the area or not is beside the point -- it has brought attention to an area that many people say is a hidden jewel of the vacation home market.

USA Today said as much when it featured the region in a spread on second homes last month, calling it best for affordable waterfront ownership. And while it might not seem affordable to the people from upstate New York, the prices for waterfront property along the Finger Lakes can seem downright cheap compared to what people pay along Long Island Sound, the Hamptons or the Jersey Shore.

While there are plenty of waterfront properties in the region priced at $1 million or more, there are also a good number of offerings that can be had for between $100,000 and $200,000.
"The people who are coming from out of state to buy property are often people who grew up here, made a good living somewhere else, and are coming back to retire," says Ron K. Miller, an associate broker with Finger Lakes Realty in Penn Yan, N.Y. That's located near Keuka Lake, one of the more popular-and pricier of the 11 lakes that span about 6,000 square miles in the center of New York State. "Some are buying as an investment," he says. "But others are coming back because they have good memories of the place, and they say, 'I don't want the six-lane highway anymore.'"

Two-lane roads wind between the lakes, which are dotted with wineries (the region boasts more than 100 of them), a plethora of farmers' markets, state parks, and more than 1,000 waterfalls. Also nearby are Cornell University (close to Cayuga Lake) and Watkins Glen race track (close to Seneca Lake).

Miller says that in the past couple of years, he has sold homes or spoken to people who have come from as far away as Tulsa and as nearby as New Jersey to buy homes. He deals mostly with property in the Keuka Lake region, and says that the various lakes offer somewhat different attractions.

"People who are coming up from New Jersey and Pennsylvania might consider Cayuga Lake, because it cuts down on their drive time: three-and-a-half hours instead of four-and-a-half hours to Keuka Lake," he said. And, it's closer to Ithaca, which is a bigger town than Penn Yan."

Joan Voight and her husband, who live in the Northern California town of Healdsburg, have invested in two properties in the city of Corning, located in the southernmost reaches of the Finger Lakes area, about a half-hour's drive from the south end of both Seneca and Keuka lakes.

"It's not just the lakefront properties that are the attraction," says Voight. "It's a beautiful rural setting, and the further you get from the lakes, the lower the prices of the homes." They chose Corning, she says, because she felt the community, which is anchored by multinational corporation Corning Inc., supports a vibrant, sophisticated town. They paid less than $100,000 for each of the properties. One home is divided into two units and is used as a rental property; the other is mainly a vacation home, where they spend several days every couple of months.

Voight compares the area to Northern California's wine country, where elegant wineries, interesting shops and restaurants mingle with breathtaking scenery -- but at a lower cost. "Where a home in the town of Healdsburg might cost $1 million, you could get something on the same size lot for about $100,000," she says. She notes, however, that property taxes in New York State are much more than in California (thanks, Proposition 13), and heavy duty weather means that there is more upkeep on the home. But even with all that factored in, she said, property is a great deal.

And, of course, like the price of homes, everything is relative. One person's extreme weather is another's minor nuisance.

"Winters in the Finger Lakes are not that bad," said Miller. "We are positioned far enough from Lake Erie and Lake Ontario that we don't get all that lake-effect snow. A lot of people don't realize that. Summer is wonderful here, but it's livable all year around."


More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.
************************************************

Want to learn more about home buying and home finance? If so, you won't want to miss
our online discussion with industry experts,
"What Works Now: Smart Moves When Buying a Home,"
created by AOL Real Estate in participation with Bank of America Home Loans.
Watch it now on AOL Real Estate.

 

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]]>cayuga lakeCornell Universityfinger lakesKeuka Lakelakefront homelakefront propertylakesproposition 13ruralwatkins glenwatkins glen internationalwine countrywine country real estatePatricia Orsini2010-08-05T11:59:00 00:00