Tip to improve your credit score

It's important to find out what happens to the personal information you provide to companies, marketers, and government agencies. These organizations may use your information simply to process your order; they may use it to tell you about products, services, or promotions; or they may share your information with others. More organizations are offering people choices about how their personal information is used. For example, many let you "opt-out" of having your information shared with others or used for promotional purposes The national credit bureaus offer a toll-free number that enables consumers to opt-out of all pre-approved credit offers with just one phone call. Call 1-888-5-OPTOUT (1-888-567-8688) for more information. Right About Real Estate

Tips for Rookie Realtors

The following marketing tips/strategies can help increase new agents’ sales–when applied consistently and with committed follow-up. • Pick your farm and work it well–walk the neighborhood, send mailers, let everyone know this is your neighborhood. • Never miss a chance to introduce yourself and your business. • Strike up conversations about what you do in the line at the bank, the store, the doctor’s office–anywhere people congregate. • Offer to hold open houses for agents in your office. • Offer to cover floor time for agents in your office. • Attend MLS meetings to network and pitch listings. • Develop a mailing campaign and follow up on the campaign. • Call expired listings and FSBOs every day. • Participate in your office’s and MLS caravans each week. • Create a Web site or invest in one and post listings and an e-mail marketing newsletter (an excellent way to capture the relocation market). • Use flyer services to distribute flyers to agents at other offices. • Use marketing tools that boost exposure, such as car magnets, REALTOR® clothing and apparel, real estate jewelry, brief cases, pens/pins, etc. • Carry business cards with you everywhere. • Create listing presentations that sparkle (replete with your photo and logo).Since referrals and repeat business are the most important aspect of marketing, make sure you treat your prospects and principals like the gold that they are.

Four of 10 Existing Homes in 2005 Were Second Homes

Right About Real Estate Four of 10 Existing Homes in 2005 Were Second Homes The National Association of Realtors (NAR) released a report stating that roughly 40% of existing homes bought last year were purchased as second homes. As rates continued at historic lows throughout 2005, almost 28% of homes were bought as an investment, while another 12% were vacation homes. The NAR reported the typical second home investor was a 49-year-old making $81,000 that paid a median price of $183,000 - up 24% from the previous year. While analysts expect investment purchases to taper off, vacation homes for baby boomers are expected to remain strong for years. Americans snapping up second homes — as investments or vacation properties — accounted for four out of every 10 sales of existing homes last year, a record that helped drive the real estate market to new highs, according to a report being released today by the National Association of Realtors. Nearly 28% of homes bought last year were for investment purposes, and an additional 12% were vacation homes, the figures show. Most of the buyers were baby boomers in their top earning years, looking toward retirement and hoping to build wealth or find a more desirable place to live. "Baby boomers are such a powerful economic force," said Dave Jenks, co-author of The Millionaire Real Estate Investor. "They're using their wealth to go buy second homes." The typical investment buyer last year was 49 years old with annual income of $81,400. He or she paid $183,500 for the median-priced investment home, up 24% from 2004. "Real estate, over the past five years, has outperformed virtually every other investment vehicle," said Ron Peltier, president and chief executive of HomeServices of America, the country's second-largest residential brokerage firm. "A lot of people have just speculated in real estate." The trend really started after 1997, when Congress changed the tax code, allowing most homeowners to duck capital gains taxes when they sold their homes. The exemption is $500,000 for married couples, $250,000 for singles, if it was their primary residence for two of the past five years. Under the old system, the only way to avoid the tax was to "roll" the gains into another home of equal or greater value. Americans bought bigger and costlier homes. But now, they can downsize and use the equity built up in their homes to buy second homes. "That's what spurred all this on in the beginning," says David Lereah, the NAR's chief economist. "It's like all the stars are aligned. The tax situations helped, but at the same time, baby boomers were entering their peak earning years. That's why we just boomed in second homes." He thinks the trend crested in 2005. With rising interest rates, tighter lending standards and slower price appreciation, Lereah expects second-home sales to drop this year to 30% of all existing-home sales, and maybe into the 20% range. "What's going to be leaving the market right now are the speculative investors who came into the market and were trying to flip homes," he said. "They were buying one, two, three or four properties at a time, and that was distorting the numbers." Sales of vacation homes, though, are expected to stay strong for years, because the youngest baby boomers are only 42 this year. The typical vacation home buyer last year was 52 years old, earning $82,800 a year, and purchased a property that was about 200 miles from the primary residence. The median price was $204,100, up 7.4%. More than three-fourths of the buyers had no interest in renting their property. About 20% said it would one day be their retirement home. Joe Klein and his wife bought their first vacation home last year on Lake Wabedo in Minnesota, three hours from their primary residence. He says he might like to retire there but might have to persuade his wife. "It's something that we could hand down to the kids," says Klein, 42, a program manager for a medical company. "But secondly, I see it as an investment. If we had to, we could sell it to help pay for their college."

What is a Reverse Mortgage

Right About Real Estate Reverse mortgages (also called home equity conversion loans) enable elderly homeowners to tap into their equity without selling their home. The lender pays you money based on the equity you've accrued in your home; you receive a lump sum, a monthly payment or a line of credit. Repayment is not necessary until the borrower sells the property, moves into a retirement community or passes away. When you sell your home or no longer use it as your primary residence, you or your estate must repay the cash you received from the reverse mortgage plus interest and other finance charges to the lender. Most reverse mortgages require you be at least 62 years of age, have a low or zero balance owed against your home and maintain the property as your principal residence. Reverse mortgages are ideal for homeowners who are retired or no longer working and need to supplement their income. Interest rates can be fixed or adjustable and the money is nontaxable and does not interfere with Social Security or Medicare benefits. Your lender cannot take property away if you outlive your loan nor can you be forced to sell your home to pay off your loan even if the loan balance grows to exceed property value.

Job Opportunity

Right About Real Estate You got your real estate license and so, now what?If you want lo learn how things are done in the real world and start making money quickly, you need to work with serious team of Realtors that will coach you and support you. At Right About Real Estate: * We provide our agents with top commissions and have non-sense fees. * We are constantly implementing new systems to make agents' work easier and more efficient. * Our floor-time is virtual, so our agents can receive leads while on the field If you are a Realtor who thinks Real Estate is a serious business, then we need to talk. Call us for a private interview at (954) 362-0980 Ext 2001 or e-mail yael@rightabouthomes.com http://www.rightabouthomes.com/

WINNING BIG

Investors who put their money in real estate last year were huge winners, earning an unprecedented 34 percent on their dollars. The performance of real estate surpassed the stock market worldwide, and government and corporate bonds, according to a study being released today by the Massachusetts Institute of Technology’s Center for Real Estate. "Real estate as an asset class has great potential for the investment industry because there's so much of it out there," says David Geltner, director of MIT's 21-year-old Center for Real Estate. Source: Boston Globe, Thomas C. Palmer Jr. (02/22/06) © Copyright 2006 INFORMATION, INC. Bethesda, MD (301) 215-4688

ANOTHER REASON TO HIRE A PRO

In 2005, 13 percent of home sellers sold their home without a real estate practitioner; however, the average sales price for a home sold by an unrepresented owner was $163,800 compared with $189,000 for a home sold with the help of a real estate practitioner, according to a study conducted by NAR.

What is a 1031 Exchange?

1031 exchanges are specifically structured transactions that join together the sale of an old property and the purchase of a new property for the purpose of deferring taxes. Exchanges are primarily used for buying and selling investment real estate, but they can also be used for personal property that is used in a business. Examples of qualifying property include bare land, rental property, commercial buildings and homes other than your primary residence. A 1031 exchange can defer the capital gain taxes that are due when you sell property that has increased in value or been depreciated for tax purposes. These federal and state capital gain taxes can be costly. Internal Revenue Code Section 1031 can benefit you in several other ways. By deferring taxes, you have increased flexibility, leverage and buying power. Exchanges also allow you to change, diversify or consolidate your investments.

County offers free trees at five parks

If you lost a tree during Hurricane Wilma, you'll have a chance to replace it later this month. There would be seven to 10 species of trees, with a variety of fruit and native shade trees. Each household will be limited to two trees, and each transaction will require proof of residency and a signed affidavit stating the tree will be planted in Broward. Where to go: Trees will be available from 10 a.m. to 3 p.m. weekends at the following parks, beginning Jan. 28. C.B. Smith Park, 900 N. Flamingo Road, Pembroke Pines, 954-437-2650 (no trees Jan. 29) Plantation Heritage Park, 1100 S. Fig Tree Lane, Plantation, 954-791-1025 Rev. Samuel Delevoe Park, 2520 NW Sixth St., Fort Lauderdale, 954-791-1036 Topeekeegee-Yugnee Park, 3300 N. Park Road, Hollywood, 954-985-1980 Tradewinds Park, 3600 W. Sample Road, Coconut Creek, 954-968-3880

3 Tips for a Hard-to-Sell House

Here are three last-ditch suggestions from SmartMoney magazine to move a house when the usual sales techniques haven’t worked.

• Auction it off. The number of residential auction sales is up 8 percent in 2005. It’s faster, although if you don’t get enough bidders, the price can be less than you might have hoped. Setting a starting bid will make sure you don’t get stuck with a ridiculously low price. The National Auction Group will handle the details. It works with local real estate professionals.
  
  
• Spread the word in cyberspace. From well-known sites like Craigslist and eBay to newcomers like HomeToursOnline.net and ChoiceofHomes.com. Practitioners can handle the details for their customers.
  
  
• Throw in a bonus. Encouraging the seller to pay for all allowable closing costs is a tried-and-true approach. But sweetening the pot with things like a car or a vacation to someplace glamorous also can appeal to some buyers.
  
  Source: SmartMoney, Jim Rendon (02/10/06)
  

Do's & Dont's about home improvements

According to the latest Consumer Reports....

Do: The best way to boost the value of your home is to add square footage that will bring your house up to - but not beyond - neighborhood norms. Renovations that merely update styles will only sell your house faster if you sell when the style is, well, in style.

Don't get ahead of the Joneses: Over-improving yields diminishing returns. You'll get the biggest bang for your buck by keeping up with the Joneses, not by going them one better. For example, don't add a swimming pool or a third story if you're the only one on the block to have one.  

Ten Reason to Market Your Home Now!

        Pricing Power - In most markets sellers are able to sell for top dollar as low interest rates and high demand has fueled a rush of buyers into the market place.

1. High Demand - Low inventory in most markets means that the number of buyers competing for each home is higher than it has ever been. This also means that the time it takes to secure an acceptable offer has dropped considerably.
2. Low Interest Rates - Interest Rates have remained at 30 year lows despite the fact the Federal Reserve has hiked rates for the past several quarters. Today's low rates mean more buyers can afford to purchase more amenities and pay higher prices than in the past.
3. Fewer Contingencies - Because many buyers have been able to sell their homes quickly many are able to write offers that are not contingent on the sale of their home.
4. Flexible Financing - Many buyers today are able to enjoy hundreds of different possible loan programs from ARMS, to reverse amortization mortgages, and even no-documentation loans. This flexibility means more buyers can afford to buy homes than ever before.
5. Timing Control - Sellers who need more time to move, find a replacement property, or move into a rental can be more selective in choosing which offer best suits their needs. They can also specify their timing needs in advance.
6. Tax Savings - Sellers who have owned their home for two of the past five years, and lived in their home for two of the past five years may be able to take up to $250,000 as a single person or up to $500,000 as a married couple in tax free gains out of the sale! See www.irs.gov for details.
7. Nationwide Market Expansion - The national housing market is now at record levels. This may mean more out of state buyers than ever before as potential buyers for a sellers home.
8. Home Ownership Rates - The number of American families who own a home is at all time high - 70%! This is good news for sellers - as more, and more families recognize the value and wealth building potential of owning real estate.
9. Discounted Rental Rates - Although home prices have climbed steadily over the last several months, rental rates in most areas of the country have not kept pace. This can be good news for sellers who would like to take their time finding their next home

How do you prepare your home for sale?

Many factors come into play in preparing your property for showing.  Before you start presenting your home to prospective buyers, there are some things you can do to spruce it up, without spending a lot of money.

Buyers decide to visit a home after they’ve driven by it. If they like the outside, they’ll go inside, so to make sure they like the outside, your first concern should be the “curb appeal” of your home. Keep the lawn and landscape nicely manicured. Water regularly. Trim the bushes and plant some flowers. Be sure your front door area has a "Welcome" feeling. A fresh coat of paint on the front door looks great.

Now, let’s move to the inside. Of all the rooms in your house, pay special attention to the kitchen and bathrooms. They should look bright and fresh. It is very important that they are clean and odor free. It may be a good idea to hire a professional cleaning crew every other week while your home is on the market. A fresh coat of paint and replacing door knobs will give your kitchen and bathrooms a fresh new look. If your kitchen is a constants reminder of the 70's, consider painting your appliances and changing the acrylic ceiling panels that have turned yellow with time for brand new ones; this will make your kitchen much brighter.  Keep your kitchen countertops cleared from clutter and fix leaky faucets.

Finally, for every showing make sure you replace all burned out light bulbs, open all drapes and window blinds, put pets in cages or take them to a neighbor, remove RVs or unappealing cars from the driveway, clear dirty dishes from the sink and laundry from the washer/dryer, put some soft music and light a scented candle or bake something (an apple with sprinkled cinnamon smells like home for the holidays)

Right About Real Estate

Right About Real Estate Welcome