Joe's Burbank Real Estate Spotlight

One mans view on the Economic Bailout

2008-09-26T07:55:00.001-07:00

OK I came across this in an e-mail today and thoguht that I would share it to see what people thought about this approach to the economic turn. By the way, I have no idea who this Birk guy is, but I think he’s a genius! This idea sounds just crazy enough to possibly work, so naturally it won't be given serious consideration. How great is our bureaucracy!!

Hi Pals, I'm against the $85,000,000,000.00 bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.

Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up.. So divide 200 million adults 18+ into $85 billion that equals $425,000.00.

My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.

Of course, it would NOT be tax free. So let's assume a tax rate of 30%. Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam. But it means that every adult 18+ has $297,500.00 in their pocket. A husband and wife has $595,000.00. What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage - housing crisis solved.

Repay college loans - what a great boost to new grads

Put away money for college - it'll be there

Save in a bank - create money to loan to entrepreneurs.

Buy a new car - create jobs

Invest in the market - capital drives growth

Pay for your parent's medical insurance - health care improves

Enable Deadbeat Dads to come clean - or else

Remember this is for every adult U S Citizen 18+ including the folks who lost the ir job s at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ( 'vote buy' ) economic incentive that is being proposed by one of our candidates for President. If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG - liquidate it.

Sell off its parts.

Let American General go back to being American General.

Sell off the real estate.

Let the private sector bargain hunters cut it up and clean it up.

Here's my rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can 'never work.'

But can you imagine the Coast-To-Coast Block Party!

How do you spell Economic Boom?

I trust my fellow adult Americans to know how to use the $85 Billion We Deserve It Dividend more than I do t he geniuses at AIG or in Washington DC

And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned instantly in taxes to Uncle Sam.

Ahhh...I feel so much better getting that off my chest.

Kindest personal regards,

Birk

T. J . Birkenmeier, A Creative Guy & Citizen of the Republic PS: Feel free to pass this along to your pals as it's either good for a laugh or a tear or a very sobering thought on how to best use $85 Billion!!

Universal Studios, The City & County of Los Angeles One-Day Mobile Collection Event

2008-04-22T15:40:00.000-07:00

Universal Studios Hollywood, the City of Los Angeles and the County of Los Angeles Public Works are proud to present a One-Day Mobile Collection Event. For Residents of the City & County of Los Angeles

Residential Special Materials and Electronic Waste

NO Commercial drop-offs accepted and waste collection is suspended during rain

They will accept: Paint and solvents; used motor oil and filters, anti-freeze, and other automotive fluids; cleaning products; pool and garden chemicals; aerosol cans; all medicine; auto batteries; household (alkaline) batteries; fluorescent tubes and bulbs, thermostats, and other mercury-containing mapls.

They will also accept: Computers, monitors, printers, network equipment, cables, telephones, televisions, microwaves, video games, cell phones, radios, stereos, VCRs, and electronic toys.

They will NOT accept: Business waste, ammunition, explosives, radioactive material, biological waste or tires, Bulky items: Furniture, refrigerators, washers/dryers, conventional ovens, paper, computer software.

For your safety please remain in your vehicle at all times while visiting the collection event.

The transportation limit for chemical related items: It is against the law to transport more than 15 gallons or 125 pounds of hazardous waste to sollection sites. Please pack your waste properly to prevent tipping or spilling of the waste during collection.

When: Saturday April 26th, 2008

Time: The collection time for this event is from 9am - 3pm

Where: Universal Studios Hollywood Parking Lot, Universal City, Ca. 91608

Directions:

FROM THE 101 North - Exit Universal Studios Blvd. Continue North on Buddy Holly Dr. Turn right on Universal Studios Blvd. Follow signs to the parking lot
FROM THE 101 South - Exit Lankershim Blvd. Turn left on Cahuenga Blvd. Turn left on Universal Studios Blvd. Follow the signs to the parking lot.

For more information on this event you can call the city at 1-800-98-TOXIC or the County at 1-888-CLEAN-LA.

City Of Burbank Prosposed Nighttime Curfew at Bob Hope Airport

2008-04-22T14:39:00.000-07:00

For many years the City of Burbank and its residents have been looking forward to meaningful nighttime noise relief at the Bob Hope Airport. Since 1977 there has been a semi-successful voluntary nighttime curfew from 10pm til 7am. Federal law has established a formal process which, among other things, provides a way to turn this voluntary curfew into a mandatory one - this is know as a Part 161 application. In the year 2000, the Airport Authority initiated a Part 161 study for this purpose and in recent months announced its determination that the cost/benefit analysis they performed may adequately meet Federal Requirements and justify the granting of a mandatory nighttime curfew.

In preparation to file this application with the FAA, the Airport Authority must first complete a number of procedural requirements, including implementing a public participation process. therefore, on March 31st, 2008 the Airport Authority commenced a 45-day public comment period (closing May 14th at 11:59pm) regarding its proposed application. During this period, members of the public and organizations are invited to provide comments and ask questions regarding the application.

The City of Burbank encourages residents to participate in this public outreach process by submitting comments and questions to the Airport Authority via the following opportunities:

the May 12th Airport Authority public hearing at the Marriott Hotel 6pm.
the June 16th Airport Authority regular meeting in the Burbank Airport Sky Room at 9am(at which time the Authority will formally consider the submittal of the Part 161 application to the FAA)
via either of the Authority's websites http://www.bobhopeairport.com/ or http://www.burbankairport.com/

Once the Airport Authority submits the Part 161 application to the FAA, there is no guarantee that the FAA will indeed grant the mandatory nighttime curfew. In order to have any chance of success, involvement from the public is going to be essential. Therefore, the City urges that you contact your Federal representatives and let them know your feelings on this landmark event. For your convenience the contact information is provided below:

Honorable Dianne Feistein, 331 Hart Senate Office Bldg, Washington DC 20510. www.feinstein.senate.gov/

Honorable Adam B. Schiff, 326 Cannon House Office Bldg. Washington DC 20515. www.schiff.house.gov/hor/ca29/

Honorable Barbara Boxer, 112 Hart Senate Office Bldg, Washington DC 20510. www.boxer.senate.gov/

Honorable Brad Sherman, 2242 Rayburn Office Bldg, Washington DC 20515. www.sherman.house.gov/

Should you have any questions on the process or the study please feel free to contact Mark Hardyment with the Airport Authority via e-mail at mhardyment@bur.org

It Just got a lot tougher to buy a Condo

2008-04-20T21:10:00.000-07:00

By Kenneth R. Harney, Washington Post Writers Group

April 20, 2008

WASHINGTON -- If you own or plan to buy a condominium, an ominous new phase of the mortgage credit squeeze could be on your horizon.

As a result of underwriting changes by giant investors Fannie Mae and Freddie Mac, plus severe new restrictions by private mortgage insurers, getting a loan on a condo unit -- or even refinancing one -- could be difficult.

Starting May 1, for example, AIG United Guaranty, a major private mortgage insurer, no longer will write coverage on condominiums in hundreds of ZIP Codes across the country that it designates as having "declining" market conditions, including many areas of Southern California. The ban applies regardless of applicants' credit scores, assets or equity stakes.

Even in the healthiest markets, United Guaranty will require a down payment of at least 10% and will reject applications on units in condo projects where more than 30% of the owners are investors.

Buyers with 20% or larger down payments are not affected by the private mortgage insurance cutbacks.

Some mortgage insurers continue to accept applications on condos in declining markets but require down payments of at least 10%.

Fannie Mae, a dominant financing source for condo projects, has rolled out new procedures that some lenders say could tighten up the availability of loans to condo purchasers in the coming months. Freddie Mac has issued similar new guidelines.

Under Fannie Mae's changes, most of the due-diligence research on condo projects' key characteristics -- their legal documentation, the adequacy of association operating budgets, the percentage of unit owners who are late on association-fee payments, the percentage of space allocated to commercial use and the percentage of units owned by investors -- must now be performed upfront by loan officers.

Not only is this time-consuming and costly, but under the new procedures, Fannie Mae also expects the lender to warrant the accuracy of its research. Some condo legal documents run to hundreds of pages, yet lenders are supposed to take legal and financial responsibility for their accuracy.

"It's ridiculous," said Phil Sutcliffe, principal of Project Support Services of Lansdale, Pa., who helps put together condo project financing for developers. Not only does this shift huge paperwork and time burdens on lenders and brokers, but it also forces them to make "absolute judgments on things that are not absolute."

For instance, Sutcliffe said, the new Fannie guidance requires loan officers to make certain that at least 10% of a project's current operating budget is reserved for "capital expenditures and deferred maintenance." Sutcliffe, who has analyzed condo project budgets for two decades, says there are no wiggle-room provisions in the guidance for "compensating factors," such as when part of the line-item reserves are for important but nonphysical expenditures such as insurance. Some loan officers will look at the "reserves" item and, if it's below the 10% mark, might reject the whole building, according to Sutcliffe.

Fannie Mae spokeswoman Marilyn Kornfeld said the new procedures are designed to "protect borrowers and manage increased credit." Freddie Mac spokesman Brad German acknowledged that the changes would make condo unit loans "more labor- and paper-intensive for the lender" but said that weak sales, growing numbers of financially troubled projects and declining values made them necessary.

Jeff Lipes, president of Connecticut-based Family Choice Mortgage Corp., said the Fannie Mae changes -- combined with other retrenchments -- mean that when potential applicants inquire about getting a loan on a condo unit, "we really can't give them a definite answer" because it takes research to determine whether their building qualifies.

"Even if you had an 800 FICO score and 50% equity," Lipes said, "you still might not be able to get a condo loan" under certain circumstances.

The Tale of the Short Sale - How much do Banks want to work with people

2008-04-17T07:26:00.000-07:00

As we all know by now, Short Sales are a way of doing business in the market these days. We also know that this can be a long and painful experience for both the buyer and the Realtor alike. At the same time it can be a relatively smooth transaction as well depending on the bank and the loss manager you are dealing with.

In January I opened escrow on a home for a buyer on a short sale that showed all the signs of being a relatively painless short sale. I could not have been more mistaken.

Prior to writing the offer I ran comps on the home and found that the home was reasonably priced considering the condition, location and market. The listing agent concurred and we started to move forward in the process with hopes of a smooth transaction.

After waiting the usual 60 days to hear back from the bank, the response we received floored both the listing agent, myself and both our clients. What we got was a counter offer for $160,000 more than we were in escrow at.

The bank stated taht due to the BPO that was done on the subject property that they felt that it was in fact worth the price that they were asking.

Confused by this the listing agent and myself re-ran the comps on the home and came to the same conclusion. Armed with this information we proceeded to forward our comps as well as copies of the Home Inspection, Termite Report & Septic inspection back to the bank with a letter outlining the cost of the amount of work that needed to be performed on the home.

One week later we received a call from the bank informing us that they wanted to send their own contractor out to the home to assess and report on the condition. i gladly met the contractor their and went over the issues and concerns regarding the home. After his evaluation of the home he concurred with our estimates and reported to the bank that we were in line with both the price and condition of the home.

We figured that that would be the end of that and expected that the bank would decide to go with our offer and finish the transaction. We were wrong.

I received an e-mail from the listing agents office yesterday that after they received the report form the contractor they decided to send out specialists in each area to do a separate evaluation of the home. So now on Friday I have to meet the General contractor, termite contractor, electrical contractor, foundation specialist and septic company so that they can all re-asses the condition of the home and submit individual estimates on it.

How much confirmation do the banks want these days, how far are they willing to drag out the process, how realistic are they being in trying to move these homes that people want and need to move out of?

To me this borders on the verge of ridiculous. We have submitted everything they needed and more to validate our position.

The big issue is that we still do not know if we will get the home. My buyers are willing to take it As-Is and deal with the work that needs to be done. Are the banks really that willing to let a solid buyer walk away by dragging them through this type of red tape?

Assigning Blame For The Housing Hangover

2008-04-16T10:48:00.000-07:00

Article courtesy of Realty Times.

There's plenty of blame to go around in today's sour housing market.

Home buyers who didn't read the small print.

Speculators who didn't read the writing on the wall.

The Federal Reserve for not reading market conditions fast enough.

Now, mortgage brokers are the latest target in a study that says they often didn't give borrowers an opportunity to read the small print.

That missed opportunity cost some borrowers thousands of dollars more than they needed to pay for a home loan.

The extra cost could make the difference between maintaining homeownership or losing it to foreclosure.

"Steered Wrong: Brokers, Borrowers and Subprime Loans" is the first study to quantify the effect of broker compensation on borrowers, according to the Center for Responsible Lending. The center conducted the study with an analysis of 1.7 million mortgages made between 2004 and 2006.

The study found that borrowers with weak credit often obtained brokered mortgages that carried higher interest rates than the same loan obtained directly from the lender.

In the first four years of a loan, that could cost more than $5,000. Over a 30-year period the extra cost amounts to $36,000, according to the study.

That's not just because borrowers had weak credit. Compensation from lenders to brokers, called "yield spread premiums" or "YSPs" give brokers an incentive to steer borrowers to higher priced mortgages, the study says. The study also blamed a lack of transparency and the complexity of the loans in the subprime market for making it tough for borrowers to know if there's a cheaper mortgage available.

However, the study also found, for others, brokers can often make a better deal than going directly to the lender.

Those with better credit fare better and get comparable loan prices whether they go through a broker or directly to a retail lender.

Borrowers with very high credit tend to get a better deal through a broker than from a direct lender.

The study recommends that policymakers should ban practices that give brokers an incentive to overcharge subprime borrowers; ensure that lenders take responsibility for brokered loans made in their name and policymakers should set standards requiring brokers to serve customers' interests.

Documented discrimination gets some of the blame

In a related study with another "first" element, the National Fair Housing Alliance documents racial and ethnic discrimination and the lack of fair housing enforcement as a contributor to the foreclosure fallout. That's the first time a documented study links discrimination of the housing hangover.

Marking the 40th anniversary of the passage of the federal Fair Housing Act, the alliance says some 3.7 million people face discrimination when they seek housing, but the U.S. Department of Housing and Urban Development (HUD) only issue 31 related charges of discrimination in 2007 while the Department of Justice filed just 35 cases.

"Lack of federal oversight of the work of mortgage lenders and brokers has led us to today's foreclosure crisis," said Shanna L. Smith, President and CEO of the alliance.

The alliance sites "countless studies" that demonstrate unscrupulous lenders targeted minority buyers yet the total number of fair housing complaints filed represents less than on percent of the annual incidence of discrimination.

"Private fair housing groups with minimal resources have processed 10 times more fair lending complaints than the federal government," continued Smith. "How is this possible? This is inexcusable."

When Your Home's Value is Less Than the Mortgage

2008-04-15T12:02:00.000-07:00

For a variety of reasons, it is possible that the total debt on your home may be more than what the home is worth. Most of the time, this isn't a problem because time is the solution. Depending on how much you owe, just wait it out and the value of your home goes up.

Problem solved. Unfortunately, this could take years.

This solution does not work for everyone though, because some folks are stuck in a situation where they absolutely have to sell their house.

This can happen for many reasons, some good and some not so good: relocation, financial hardship, divorce, death, illness, or anything at all. The result is that you may have to move, but you can't sell your house and make enough on the sale to pay the closing costs.

So what do you do?

One option is to do nothing and not make your mortgage payment. That's a worst-case scenario because it impacts your credit rating more severely than anything else possibly can.

Another option is something called a "short sale." This is when you fess up to the lender, let them know about your hardship and ask them to accept less money than you owe.

Of course, the lender doesn't want to do that, but they also don't want to pay all the costs of foreclosing on a home, repairing any defects, placing it on the market, and getting the best price they can in what may be a market already overstressed with excess inventory.

Lenders absolutely hate to foreclose, so they may be willing to consider a short sale.

Not always so don't get your hopes up.

A short sale involves a lot of paperwork, time and effort and it is best if you have a real estate agent or someone knowledgeable to help guide you through the process and give moral support. A lot of stress is involved.

The first step is to contact the Loan Service Department of your lender. That number will be in the documentation you receive about making your payment. Use the phone and the mail. Keep copies.

The lender will ask you to submit a financial statement. They want to know that you really don't have the financial assets to repay the loan after you sell the home.

That's just the beginning, assuming they give a tentative agreement.

Your real estate agent still has to put the home on the market, find a buyer, and get a bona fide offer. Once that has been accomplished, you submit all contracts and paperwork to your lender for a decision. This takes a while because there are several decision makers involved.

Your lender isn't usually your lender. They just service the loan for your actual lender, called the investor. Your paperwork is submitted to the investor for a decision.

Assuming you have mortgage insurance on the loan, they are another decision maker in the process. Mortgage insurance covers lenders in the case of loan defaults. That way they can justify making high LTV (loan-to-value) loans.

If the investor and the insurer both agree, your short sale is approved, and you can sell you home.

A short sale is basically a "forgiveness of debt." That counts as income and you have to declare it to the IRS.

Article courtesy of RealEstateABC.com

Warning: Walking away will be costly

2008-04-14T18:39:00.000-07:00

By Kenneth R. Harney, Washington Post Writers Group April 13, 2008

WASHINGTON -- The two largest sources of mortgage money in the country have a blunt warning for anyone thinking about joining the growing "walkaway" trend and becoming one of those homeowners who stops making payments and months later sends the house keys back to the lender: You will feel the pain.

On March 31, Fannie Mae sent out new guidelines to lenders. Fannie now will prohibit foreclosed borrowers from getting another mortgage through the giant investor for five years unless there are "documented extenuating circumstances." In those cases, the prohibition is three years.

Even after five years, borrowers with foreclosures in their files will be required to make at least a 10% down payment and will need minimum FICO credit scores of 680.

Freddie Mac counts foreclosures as major credit blots for seven years. The company is aggressively pursuing some walkaway borrowers where state laws permit.

The walkaway trend is particularly noteworthy in former housing boom markets -- California, Florida and Nevada, among others -- where many homeowners find themselves upside down on their loans.

A number of websites have popped up this year claiming to cut the hassles of bailing out of a mortgage. One company promises that clients will be able to live in the home "for up to eight months with no mortgage payments," after paying $895 for a customized plan.

Another site claims that your credit can be repaired and you will be able to "purchase a house in as few as two years" -- after paying a $495 fee. Still another company says walkaways can expect "up to one year living payment free" as the lender goes about filing for foreclosure. That company charges $995 for its how-to-do-it kit.

Fair Isaac Corp., developer of the FICO scores used in most mortgage transactions, is unhappy at any suggestion that a foreclosure could be minimized or wiped away in a short period of time. Its scoring model counts foreclosure as a long-standing and severe event, nearly comparable to bankruptcy, with negative consequences for all forms of credit. That includes credit card applications, auto loans, student loans -- even insurance and employment.

FICO spokesman Craig Watts said that the effect of a foreclosure on an individual's score depends heavily on the payment history, but "it is always significant."

Robin Stout Migala, consumer outreach manager for Freddie Mac, said that "there are so many bad reasons for walking away" from a home loan. Not only are borrowers' credit standings wrecked, but they also face other potential problems, including federal income tax liabilities.

Federal legislation enacted last year allows homeowners who negotiate loan modifications with lenders and have portions of their principal debt eliminated to escape income tax liability for the amount forgiven. Walkaways, by contrast, have nothing forgiven, and the IRS may demand income taxes on the balance they never paid, according to Migala.

Many borrowers facing foreclosure have endured serious financial crises, said Migala -- loss of employment, medical issues, predatory loans -- that led to their inability to make their mortgage payments.

When they apply for a loan from either Freddie Mac or Fannie Mae, she said, the standard application form asks whether they have ever experienced a foreclosure or handed over their deed in lieu of foreclosure. If applicants check "yes," the loan is immediately shifted to manual underwriting. Every piece of information is scrutinized by underwriters, who probe for the facts surrounding the loss of the house.

For borrowers who faced genuine financial hardships leading to foreclosure, underwriters are likely to be more sympathetic a few years down the road. But if you walk away, here's the deal: Don't expect to get a new home loan -- certainly not one with favorable terms -- for five to seven years.

That's no matter what some promoter online promised you.

Earth Day 2008 in Burbank

2008-04-13T23:02:00.001-07:00

Saturday, April 19, 2008. 38th Annual Earth Day Celebration.

The City of Burbank invites you to celebrate Earth Day at Stough Canyon Nature Center, 2300 Walnut Avenue (top of Walnut). Come early and join the Canyon Clean Up at Noon! Activities are planned 1-4 p.m. -- enjoy arts and crafts, green films, nature hikes, live animals, refreshments. There will be door prizes from IKEA, Disney and other local businesses. At 2 p.m. "Go Green" with Mayor Marsha Ramos. For more information about this Free event, call 818-238-3900 or 238-5440.

Earth Day is always a great day to get out and enjoy the day while at the same time giving back a little to our community as well as our enviroment.

Hope to see you out there.

Burbank Healthy Kids Day at the YMCA April 12, 2008

2008-04-08T14:30:00.001-07:00

Saturday, April 12, 2008 from 11:00am-3:00pm. The Burbank Community YMCA is hosting Healthy Kids Day.

The event will take place in the YMCA parking lot located at the corner of Third Street and San Jose. There will be free health screenings, a rock wall, interactive boxing demo, a basketball shoot out contest and more. This event is free to the community.

The weather should be great this weekend so bring the family out for what should be a great event.

For more information call (818) 845-8551 ext. 236.

Its that time again. Burbank on Parade is back on April 26, 2008

2008-04-04T21:50:00.000-07:00

It's that time of the year again here in Burbank, Ca. Burbank on Parade is back!!!!!!!!!

Every year the community comes together to celebrate our city, it's business as well as its residents.

It is a great time to bring out the family for loads of fun and events within this great community.

The annual Burbank On Parade will take place Saturday, April 26 at 11 a.m. on Olive Avenue from Keystone to Lomita.

Here is a quick history of this special event:

To celebrate the conclusion of World War II in 1945, the Burbank Junior Chamber of Commerce organized a city parade in association with their May Festival. The festival was a big affair, lasting a week and including a pageant, dances, baking contests, and a carnival. The extravaganza was so successful it became an annual tradition that continued for 12 years.

In 1981, a handful of Burbank citizens recalling great memories of the May Festival and its parade, decided they wanted to revive this grand event. A week long festival would be a huge undertaking, so they narrowed their focus on a city parade. One year later, with the help of many volunteers and aid from numerous organizations, Burbank on Parade, Inc. produced an event to remember, and the spectators came out in droves, comprised of Burbank's residents, as well as locals from nearby cities.

The inaugural revival of this event succeeded in once again, bringing together the community, and the residents, businesses and organizations that exist within it. The original founders of the revival succeeded in reestablishing a tradition that celebrates its 25th anniversary this year, and the parade organizers take great pleasure in once again inviting you to join in the celebration.

We are a pround spnsor of Burbank on Parade 2008

For further information, check their website at http://www.burbankonparade.com/

I hope to see you there!!!

2008-04-03T21:21:00.000-07:00

BURBANK, CA – America’s Promise Alliance, the nation’s largest alliance dedicated to children and youth, in partnership with Capital One, today announced that the City of Burbank has been named a winner of its 2008 100 Best Communities for Young People competition. Burbank is the only city in Los Angeles County to be named to the list.

The 100 Best competition recognizes the 100 outstanding communities across America – large and small, rural and urban – that are the best places for young people to live and grow up. More than 300 communities in all 50 states applied for the honor this year. The 100 winning communities span 37 states.

Burbank was selected as one of the 100 Best in large part because of the city’s focus on increasing health and wellness programs for its youth. The city’s theme in 2007 was “A Healthy Community.” Community-wide collaborations involving the City of Burbank, Burbank Unified School District, local businesses, the local YMCA, and Boys and Girls Club have resulted in afterschool, nutrition, and exercise programs on school campuses and neighborhood achievement centers. The Youth Task Force has been instrumental in the initiation of counseling programs on campuses, youth transportation, conflict resolution programs, video productions related to teen issues, and youth employment programs. In addition to passing an ordinance that prohibited smoking in public places, the mayor invites families to join her weekly walks and talk about issues impacting their lives.

“This designation is really an incredible achievement that recognizes our entire community’s commitment to our young people,” said Burbank Mayor Marsha Ramos, expressing excitement about the win. “The collaborative efforts of Burbank’s community partners present extraordinary opportunities for our youth to achieve all their potential. Our holistic approach addresses their needs from infancy through teens and into adulthood. We are working to build a community of good health, hope and harmony.”

“Over the past few years I have witnessed the time and effort that this city dedicates to its youth first-hand,” said 18-year-old Steven Ferguson, citing a specific example. “The City took the results from a teen survey and decided to gather a group of teen whose job would be to create a one-day Youth Solution Summit where teens could come and provide solutions to their survey-identified problems. Those solutions are being implemented with new teen oriented programs throughout our City.”

“The prosperity of every community and this country depends on how well we care for our children and youth,” said Marguerite W. Kondracke, president and CEO, America’s Promise Alliance, “Although no place is perfect, when we have communities that make young people a priority and are working to make sure they stay in school and have all the resources necessary to lead healthy, productive lives, we must recognize them and by extension inspire other cities and towns to follow their lead.”

The 100 Best competition was first held in 2005. This year’s winners were selected by a distinguished panel that included some of the nation’s most well-known civic, business and nonprofit leaders such as: Gayle Manchin, first lady of West Virginia; United Way President Brian Gallagher; Thomas Donohue, president and CEO, U.S. Chamber of Commerce; Christine James-Brown, president and CEO, the Child Welfare League of America; and Dr. Suzanne Morse, executive director of the Pew Partnership for Civic Change.

“At Capital One, we are committed building stronger communities, one neighborhood at a time,” said Carolyn Berkowitz, Vice President of Community Affairs for Capital One.

All communities that completed entries in the 100 Best competition were required to submit detailed information to the Alliance on existing community programs and initiatives that help deliver the Five Promises—resources identified by America’s Promise as being critical to the development of healthy, successful children: caring adults; safe places; healthy start; effective education; and opportunities to help others; to their young people. Applicants were also asked to describe how different sectors of their community come together to deliver the Five Promises and specific efforts and programs developed to ensure that their young people graduate from high school prepared for college and/or the workforce. Each of these communities, regardless of whether they were selected as a winner, will be eligible to apply for $300,000 in grants from the Alliance next month.

For more details about the 100 Best competition and to see a complete list of the 2008 winners, please visit www.americaspromise.org.

City of Burbank Mayor's Healthy Community Fair

2008-04-03T18:40:00.001-07:00

Saturday, April 5th -- 9am to 12pm

Chandler Blvd between Keystone St. and Lincoln St.

Starts right after the Mayor’s weekly 8 a.m. walk on Chandler Bikeway. There will be health screenings, lots of great information to help keep families healthy, a fun-filled activity zone, entertainment, and prizes. The Entertainment Showcase will include ballet and jazz, country cardio, hula dancing, family exercise, and family dance. Fun activities in the Activity Zone include a rock climbing wall, gymnastics arenas, and an obstacle course. The Burbank Healthy Community Fair is sponsored by the City of Burbank , Burbank Community YMCA, Providence Saint Joseph Medical Center , Robeks Juice and Trader Joe’s. The Fair will take place rain or shine. And it's all FREE.

Check here for further details on a printable flyer

Apt Owners & Managers Rental Property Forum

2008-03-27T13:45:00.000-07:00

LAPD Foothill Division

Apartment Owners & Managers Rental Property Forum

(A learning series on how to run, a safer & more profitable apartment building)

March 27, 2008 / Thursday

6:30 to 8:30 p.m.

Presented by: The City of Los Angeles in conjunction with The Apartment Association of Greater Los Angeles Topics will include:

1. WORKING WITH LAPD(Meet your Senior Lead Officer)

2. FOOTHILL GANG UNIT(LA City Attorney's Office)

3. HOW TO CONTROL CRIME & NUISANCE AROUND YOUR PROPERTY(Crime prevention through environmental design – CPTED &documentation for evicting nuisance tenants)

4. EVICTION ATTORNEY - LESLIE BORN v QUESTIONS / ANSWERS

Meeting Location:

7747 Foothill Boulevard, Tujunga CA 91042

(Sunland Tujunga Municipal Bldg. - Councilmember Wendy Greuel Field Office)

For more information, call:

Arnie Corlin at (310) 308-4511

New FHA Limits for Los Angeles County

2008-03-12T13:36:00.000-07:00

I just attended a class with my preferred lender about the new FHA Limits and Guidlines for the County of Los Angeles. Per the class what I found was that the new basic guidline Key Popints are as follows:

3% down Payment - Gift funds are ok without seasoning
No Income Restrictions
Rates are currently below conforming
No required roof inspections such as Termite, Roof, Septic etc.
Normal appraisal requirements
Normal Timeline are in place for direct FHA approved lender. Longer time limits may apply for brokers
Non-occupying co-borrowers are allowed
Seller Disclosures are quick and easy
Owner Occupied and Full Doc only
Seller not required to pay upfront MIP
Temorary Loan Limits for Los Angeles County are set at:

1 - Unit: $729,750
2 - Units: $934,200
3 - Units: $1,129,250
4 - Units: $1,403,400

As it stands these limits are in place until the end of 2008. They are forcasting that in the next few months FHA will account for over 70% of all loans out there.

Please feel free to comment on any holes that may have been missed in this post as there was a lot of material to cover.

Windermere Burbank Open Homes for the Weekend of February 22, 2008

2008-02-22T20:27:00.000-08:00

Please click on the following link to view all of our Open Homes for the weekend of February 22, 2008.

Windermere Burbank Open Homes

There are some great homes being held open and we would love to see you there.

Windermere Burbank Open Homes for the weekend of February 16, 2008

2008-02-15T19:13:00.000-08:00

Please click on the following link to view all of our Open Homes for the weekend of February 9, 2008.

Windermere Burbank Open Homes

There are some great homes being held open and we would love to see you there.

Great Burbank Home under 500K - Pre Foreclosure

2008-02-12T16:25:00.000-08:00

A great opportunity to buy a home in Burbank. This home is completely finished on the inside.

It offers 2 bedroom 1 bath in 1300 sq ft of living space. This is a MUST SEE.

Windermere Burbank Open Homes for the Weekend of February 9, 2008

2008-02-08T18:29:00.000-08:00

Please click on the following link to view all of our Open Homes for the weekend of February 9, 2008.

Windermere Burbank Open Homes

There are some great homes being held open and we would love to see you there.

Windermere Burbank Open Homes for the weekend of November 30, 2007

2007-11-30T18:41:00.000-08:00

Please click on the following link to view all of our Open Homes for the weekend of October 27, 2007.

Windermere Burbank Open Homes

There are some great homes being held open and we would love to see you there.

Breakfast With Santa in Burbank

2007-11-17T09:08:00.000-08:00

The City of Burbank, Parks, Recreation & Community Services Department Present: BREAKFAST WITH SANTA

Come spend the morning with Santa while participating in Crafts, Games and Letters to Santa

When - December 8th, 2007

What time - From 8:30 - 10am

Where - Burbank Towne Center Food Court, 201 E. Magnolia Blvd. 3rd Floor

How Much - $7 per person(kids under 2 FREE)

Seating is limited so please purchase your tickets in advance. You can purchase tickets at the following locations:

Administrative Services Building - 301 E. Olive Ave. 3rd Floor McCambridge Recreation Center - 1515 N. Glenoaks Blvd. Olive Recreation Center - 1111 W. Olive Ave. Verdugo Recreation Center - 3201 W. Olive Ave. Burbank Town Center Customer Service Desk 1st Floor - 201 E. Magnolia Blvd. 1st Floor.

For More information you can call (818)238-5300

Windermere Burbank Open Homes for the weekend of October 27, 2007

2007-10-26T19:15:00.000-07:00

Please click on the following link to view all of our Open Homes for the weekend of October 27, 2007.

Windermere Burbank Open Homes

There are some great homes being held open and we would love to see you there.

City of Burbank Free Graffiti Removal Service

2007-10-24T22:00:00.000-07:00

While the City of Burbank does not experience a large amount of graffiti in the city. As is true with any area of a metropolitan area some things are bound to happen.

In order to cope with the issue and to keep our city clean and as graffiti free as possible the City of Burbank several years ago instituted a Graffiti Removal program. This is a free service to its residence and the response time is usually within 3 business days from the report of incident.

The guidlines are very simple:

To remove graffiti from publicly visible areas of your property, please call (818) 238-3806. There is no charge for Burbank's graffiti removal service. Before graffiti can be removed, a signed "Right to Enter" release must be on file with the Public Works Department. Please call (818) 238-3800 to verify that a release is on file or to obtain a release. Graffiti found elsewhere should be reported to the following:

Burbank schools	(818) 729-4400
Post office mail boxes	(626) 405-1208
Light poles	(818) 238-3806
Bus benches, shelters	(818) 846-1300
Concrete benches	(818) 238-3806
Freeway walls and ramps	(661) 259-2550
Wall of L.A. River wash	(800) 675-4357
Newspaper boxes	Newspaper office

The City cannot remove graffiti from back or side yards of your property (unless publicly visible and easily accessible within 5 to 10 feet of your property line), vehicles, company signs, billboards, railroad property, or telephone property. Owners of these properties remove graffiti from their own property. To report any person(s) placing graffiti on private or public property, call the Burbank Police at (818) 238-3000.

Let's keep the city clean for all to enjoy.

City of Burbank Green Power Program "Green Energy Champion"

2007-10-20T22:36:00.000-07:00

As many people know, the City of Burbank has long provided its residents and businesses with power from our own private power facility. What many people do not know is that the city has also been committed to progressing into renewable energy(Green energy) for them as well.

Over the course of the past 6 years the city has built several new facilities to help to achieve their goals. these are to include:

A new power plant which uses about 25% less fuel than our older power plant while producing 95% less nitrogen oxide emissions(a key ingredient in smog).
Landfill Generators which draw power from a renewable energy source located at the city landfill. Burbank hit the books with this as the WORLDS FIRST commercial Capstone micro-turbine installation running on landfill gas. This is producing enough power for 500 homes.
A Water Reclamation Treatment System which reduces the use of the city's potable water use by up to 70,000 gallons a day.
2 New Hydro Generators which produce enough power for 200 homes a day.
Solar Water Heating for the public pools in the city.

The city is always researching new ways to provide its residents and business with clean and efficient power sources.

There is now a program which many residents may not be aware of called the "Green Energy Champion" program which residents may enroll in to receive green power from the city based on a percentage of use that they would like to recieve. There are 3 levels of participation (Bronze 15%, Silver 37.5% and Gold 60%). The additional cost to each resident for normal use is under $6 a month. You can call the Burbank Department of Water and Power directly at 818-238-3700 or enroll on-line at the BWP website.

Tennis Anyone - Come play at the Burbank Tennis Center

2007-10-17T19:15:00.000-07:00

The City of Burbank has many great things to offer people of all ages. One of the things that the city prides itself on is a constantly improving and reinventing itself with newer updated facilities for residents.

One such place is the Burbank Tennis Center. Located at 1515 N. Glenoaks Blvd. Burbank, CA 91504 the center offers something for everyone.

This includes a Fitness Center, Pro Shop, a Thai Restaurant and more importantly 12 Tennis Court to include a mini tournament stadium(Pictured above).

The city provides public classes for kids ages 3-18 at a minimal cost. For information on these classes please visit The Burbank Tennis Center website.

As the court is located at McCambridge park there are plenty of other things to do with the family while there to include Playgrounds, Basketball Courts, Baseball Fields, Swimming Pool and plenty of indoor games.

Parks & Playgrounds in Burbank

2007-10-14T08:52:00.000-07:00

Whether you are looking for a place to take the kids to play, shoot some hoops, play some ball, get in some tennis, go for a swim or just sit and relax. Burbank has more than enough to accomodate your needs.

All our parks are well maintained places where you can always go to enjoy a nice day in the shade.

Below is a list of parks in the City of Burbank.

Bel Aire Park · 1750 N Bel Aire Dr

Brace Canyon Park · 2901 Haven Way

Earthwalk Park · 1922 Grismer Ave.

George Izay Park · 1111 W. Olive Ave.
Burbank Little Theater · 238-9998
Olive Recreation Center · 238-5385
Sports Office · 238-5330
Creative Arts Center · 1100 W. Clark Ave. · 238-5397
Joslyn Adult Center · 1301 W. Olive · 238-5353

Johnny Carson Park · 400 Bob Hope Dr.

Maple Street Playground · 3820 W. Jeffries Ave

McCambridge Park · 1515 N. Glenoaks Blvd.
McCambridge Pool · 238-5381
McCambridge Recreation Center · 238-5378
Burbank Tennis Center · 843-4105

Miller Park · 720 E. Providencia Ave.

Mountain View Park · 751 S. Griffith Park Dr.

Pacific Park · 3715 W Pacific Ave.

Palm Park · 1125 E Orange Grove Ave

Ralph Foy Park · 3211 W. Victory Blvd
Roller Hockey Rink · 845-0960

Robert E. Gross Park · 2800 W. Empire Ave.

Robert E. Lundigan Park · 2701 Thornton Ave.

Santa Anita Playlot · 250 W. Santa Anita Ave

Stough Canyon Park · 1335 Lockheed View Dr.

Valley Park Skate Park · 1625 N. Valley St. · 238-5390

Verdugo Park & Recreation Center · 3201 W. Verdugo Ave
Verdugo Recreation Center · 238-5390
Verdugo Pool · 238-5391

Vickroy Park · 2300 W Monterey Pl.

Whitnall Highway Park North · 1302 N. Whitnall Hwy.

Whitnall Highway Park South · 610 N. Whitnall Hwy.

Wildwood Canyon Park · 1701 Wildwood Cyn Rd

Windermere Burbank Open Homes for the weekend of October 13, 2007

2007-10-12T15:23:00.000-07:00

Please click on the following link to view all of our Open Homes for the weekend of October 13, 2007.

Windermere Burbank Open Homes

There are some great homes being held open and we would love to see you there.

Book a Tee Time at De Bell Golf Course in Burbank

2007-10-11T20:37:00.001-07:00

Many people who come to visit Burbank usually come for business or to visit the Studios. There is one very well kept secret about this great city. That secret is the De Bell Public Golf Course.

Nestled in the mountains overlooking the city and most of the San Fernando Valley is a challenging 18 hole Golf Course, Driving Range and a 3 Par course. The course holds a nice challenge for beginner or novice alike and wraps around the mountains. It also provides a great workout if you should you decide to walk the course as there are also many hills along the course as well.

It is conveniently located near the Castaways Restaurant, Starlight Amphitheatre and the hiking trails. There are discounts for Burbank Residents as well as Senior and Junior Golfers.

1500 E Walnut Ave
Burbank, CA 91501-1097
United States
P: (818) 845-0022
About this course: De Bell Course
18 hole regulation length course
Municipal golf course
71 par
5,633 yards
69 rating
114 slope
Kikuyu grass
$43 green fees* on weekends
$38 green fees* on weekdays
$26 twilight fees*
* includes golf cart where available
About this facility: DeBell Golf Course
27 total holes at this golf facility
Golf Only facility
20 tees driving range
18 regulation holes
9 par 3 holes

The course is also in the process of building a brand new clubhouse and pro-shop due to be completed in 2008.

Book in advance as the tee times fill up pretty quick.

"Martino's Bakery" Another great place in Burbank

2007-10-08T21:16:00.000-07:00

>Martino's Bakery has been a fixture in the Burbank Community since 1926. They started as a small pie business in a garage and grew into a household name in Burbank. The quality is incredible and you can always count on great service when you go there.

Located at 335 North Victory Blvd. they are centrally located in the heart of Burbank. Their claim to fame(which has been well earned) is their "World Famous" Tea Cakes which are always a must for any visitor and or for any party. They have served cakes for countless weddings in our area and are a true fixture in the community.

They have always managed to keep the mom and pop feel of the establishment and will always walk out satisfied.

For more info give them a call at 818-842-0715 or just stop by, you will NOT be disappointed.

The "Handy Market" Saturday BBQ is a must when near Burbank

2007-10-07T15:04:00.000-07:00

If you are ever in Burbank or even close by on any Saturday afternoon, this is a must see detour for you. It will not be hard to find near the corner of Magnolia and Buena Vista as you will see a huge cloud of smoke coming from the parking lot behind the Shell gas Station. As you get closer you will find the line of people waiting for the fresh meat that is being served off of the row of BBQ's in the parking lot.

Take you pick as everything is great. You have a choice of Turkey Legs, Tri-Tip(my favorite), Chicken and ribs. All are great sized portions and the ribs have a ton of meat on them. If you are looking for a great cold sandwich then you simply have to walk inside to the deli which has the reputation of having "The best meat in Burbank". There fresh deli sandwiches are just a satisfying as the BBQ.

The Burbank "Handy Market" is a family owned and operated business and a long time fixture in our community. Walking through the doors of this small but quaint store will take you back in time a few decades and has a warm and small town feel to it.

The Handy Market also provides a full catering service for parties. Give them a call at 818-848-2500

Dig in and enjoy.

Trick or Treat in Downtown Burbank

2007-10-05T12:44:00.000-07:00

Well, it's getting to be that time of the year again. Time to get the kids dressed up and out to trick or treat.

In an effort to keep trick or treating safe and fun for the kids has set up "Booo-tiful Downtown Burbank - Halloween day, October 31"

On October 31st parents are invited to bring their kids to Downtown Burbank from 4-7pm merchants participating will be providing treat for all the little ghosts and goblins.

Hope to see you there.

Windermere Burbank Open Homes for the weekend of October 6, 2007

2007-10-05T12:02:00.000-07:00

Please click on the following link to view all of our Open Homes for the weekend of September 22, 2007.

Windermere Burbank Open Homes

There are some great homes being held open and we would love to see you there.

Windermere Burbank Open Homes for the weekend of September 29, 2007

2007-09-28T11:36:00.001-07:00

Please click on the following link to view all of our Open Homes for the weekend of September 22, 2007.

Windermere Burbank Open Homes

There are some great homes being held open and we would love to see you there.

Burbanks NEW Personal Shopping Cart Rebate Program

2007-09-28T11:27:00.000-07:00

In response to concerns about abandoned shopping carts, the Burbank City Council has created a personal shopping cart rebate program. Burbank residents may purchase a personal shopping cart and receive a rebate of 50% of the cost of the cart (up to a maximum of $20). Carts are not available for purchase from the City of Burbank. Purchase any type of personal shopping cart from any merchant. Proof of Burbank residency and the original receipt for the cart (purchased on or after September 23) must be provided at the time of applying for the rebate. The rebate program begins September 23 and ends after one year or when funding runs out, whichever occurs first. Apply here on-line or at the License and Code Services Division, 333 E. Olive Avenue., 8 a.m. to 5 pm. Monday through Thursday and 8 a.m. to noon or 1-5 p.m. on Fridays. If you have any questions, call Ed at 238-5285 or Jack at 238-5291.

Windermere Burbank Open Homes for the weekend of September 22, 2007

2007-09-21T19:10:00.000-07:00

Please click on the following link to view all of our Open Homes for the weekend of September 22, 2007.

Windermere Burbank Open Homes

There are some great homes being held open and we would love to see you there.

Windermere Burbank Open Homes for the weekend of September 15, 2007

2007-09-14T17:21:00.001-07:00

Please click on the following link to view all of our Open Homes for the weekend of September 16, 2007.

Windermere Burbank Open Homes

There are some great homes being held open and we would love to see you there.

Great Magnolia Park Home

2007-09-13T22:17:00.000-07:00

When in Burbank the Monte Carlo Italian Deli & Market is a must

2007-09-09T21:43:00.000-07:00

If you love Italian food and are ever looking for a great Italian Deli then the Monte Carlo is a must.

This great location has been in Burbank for over 40 years and has an incredible Market & Deli. The Deli offers a huge selection of Italian Specialties like Focaccia, Homemade Italian Sausage, Fresh Daily Veal Cutlets and Ground Beef, Italian Cookies, Pastries and Cannolis. In addition the Market and Deli has a Imported Grocery section features dozens of Olive Oils, a giant selection of Pastas, San Marzano Tomatoes, Italian Coffees, Balsamic Vinegars, Risotto, Olive Spreads and many hard to find imported items including a large selection of Imported Wines.

While there be sure to enjoy some of their 24 Flavors of Gelato and Sorbet for those hot summer nights.

The location also features a wonderful casual dining experience so feel free to eat there or take out. They also cater events and have very competitive pricing.

The location is open 7 days a week and is a wonderful place to take the entire family.

To find out more about this wonderful place please visit their website at The Monte Carlo

Windermere Burbank Open Homes for the weekend of September 8, 2007

2007-09-07T11:23:00.001-07:00

Please click on the following link to view all of our Open Homes for the weekend of September 8, 2007.

Windermere Burbank Open Homes

There are some great homes being held open and we would love to see you there.

The Neon Bus Tour is a Must when in Los Angeles

2007-09-02T17:23:00.000-07:00

Last night our office in conjunction with our in house lender enjoyed a treat that I felt the need to share.

We had the opportunity to go on the NEON BUS TOUR. Now I have always been a fan of being a tourist in your own town as it can be fun to see what visitors do and this was a prime example.

The NEON BUS TOUR is a 3 hour trip on a double decker bus through the streets of Downtown Los Angeles and Hollywood. It highlights the architectural history of the buildings and their backgrounds. There are also stops in China Town and Canter's in Hollywood.

The tour guides are a lot of fun and the tour is informative as well as entertaining. This is must do on anyones list whether you are a tourist or a resident. I have lived in Los Angeles my entire life and walked away learning a few new things.

For more info on this great tour in our wonderful city you can visit http://www.neonmona.org/.

Windermere Burbank Open Homes for the weekend of September 1, 2007

2007-08-31T15:07:00.000-07:00

Please click on the following link to view all of our Open Homes for the weekend of September 1, 2007.

Windermere Burbank Open Homes

There are some great homes being held open and we would love to see you there.

Great Home in Lakeview Terrace

2007-08-26T21:02:00.000-07:00

Great Burbank Hills Home oover 12,000 sq ft. lot

2007-08-26T20:52:00.000-07:00

Windermere Burbank Presents a FREE Home Buyers Class

2007-08-22T23:22:00.000-07:00

We are pleased to announce our FREE Home Buyers Class. This is great opportunity for first time buyers to be introduced to the home buying process as well as for repeat buyers to get up to speed with the current real estate market. You will be able to speak with leading professionals in the fields of Title Insurance, Home Warranty, Mortgages, Home Inspection as well as Seasoned Realtors.

All are welcome but seating is limited so please call to reserve your seat today.

We hope to see you there.

Please call 1(800)320-1231 x1091 to reserve your seat today

Now that you have the keys, don't forget to change the locks !!!!!

2007-08-19T22:24:00.001-07:00

Today I recieved an e-mail from a past client who closed their first home purchase about a month ago. She e-mailed me to thank me for a recomendation that I had made to her before closing. That recomendation was simply to ensure that she had all the locks in the home changed immediately after taking possession.

At first she was confused as she thought that due to the fact that the previous owners were long gone that their was nothing to worry about. I went on to explain that she did not know who else might possess a set to the home. So per my guidance she went ahead and had a locksmith come out to do the work.

It seems that she unfortunately locked herself out of her home the other day. While she was waiting in front of the home for her husband to arrive the next door neighbor saw her and stopped by to see if she was ok.

They proceeded to find out that she was unable to get into the home and told her not to worry because they had a full set of keys to the home from the previous owner. Now while I do agree that the intention of the neighbor was a good one. The fact is that they have not been their long enough to have even begun to develop a relationship with their new neighbors.

Whenever you buy a home or close a deal for a buyer please make sure that you recommend having the client change the locks. You really just do not know how many people may possess access to your new home. The minimal cost compared to the peace of mind is money well spent.

All because of a sponge, what have you found in there?

2007-08-01T07:36:00.000-07:00

I have some first time buyers that I closed a few weeks ago. The owners had a 7 day rent back to get a concurrent close on their new home. Last Friday I handed them there keys. All is well right? Well mostly yes.

Then today I get the call. The wife had a small leak yesterday from the toilet tank which was not a big concern for her. She went to bed and thought nothing more of it. Until this morning. Not only did the leak continue but now all the waste that went down the toilet from the previous day has now found its way back into the bowl.

She is horrified as this is only a 2 bed 1 bath home. Her husband is at work and the contractor is there working on the chimney that needed to be repaired and she has no bath. She is a new home owner and has no idea what to do.

I tell her not to worry as I had purchased them a home warranty with Land America so after a few calls to my rep we were finally able to get a plumber out to the house at 6pm tonight.

I figured that it was just a minor stoppage in the line and all they had to do was to root it out and all would be well. The plumbers ran the line and it was clear so we were all a bit perplexed at the situation. After digging a bit deeper what the plumbers had found was new to me.

After examining further they found that the previous owner had actually flushed a sponge down the toilet and it was jammed in the line clogging it up.

Now I have heard of wipes, cat litter, q-tips and other misc things going down that way before but a sponge? What were they thinking. It almost seemed intentional. The transaction went smooth but the sellers left the home in disarray and filthy for my clients to occupy. They left trash in the driveway, trashcans full and did not even bother to wipe anything down when they left so it had to be intentional, right? What could or would posses someone to do something like this to a couple to paid full price for the home and gave them a trouble free transaction?

What is the worst thing you have even seen along these lines?

Always remember "It's a Great Day to Sell Real Estate"

2007-07-31T09:08:00.000-07:00

In today's market it is very easy to get depressed or to lose focus of our priorities. We sometimes have a difficult time remembering what a great business it is that we are all involved in and all the possibilities that each day has to offer us.

Every morning I try to make it a point to start off on a positive note as I wake up and start my day. I always remind myself that "It's a great day to sell Real Estate".

Real Estate is a career like no other and provides us with countless possibilities that we may have never realized in any other career choice. We have the opportunity to meet great people, both in other agents and in clients, help people who need assistance in hard times and help others to realize their dreams of home ownership. What a GREAT JOB we have.

I remind myself of all the possibilities that each day can hold for me:

A buyer may call to write an offer
The perfect listing may come on the market for a buyer
An offer can come in for a listing
I can get a listing appointment
I may acquire a new client
A referral can come in from a past client, family member or another agent
I can open an escrow for an offer I wrote
I may meet a new colleague to network with

The possibilities are virtually endless and I love all of them, each and everyone. We should and need to be excited about these types of possibilities as well as what each day can and may produce for us.

Unlike other professions, our days are always filled with hope. For this I am always grateful as it makes each day full of question and excitement. We all need to take a moment out of each day and try to remember that we are fortunate for our careers, clients and profession.

But most of all we need to always remember that it is "A Great Day to Sell Real Estate". After all, if you cannot be excited about what it is that you do then maybe you have chosen the wrong career. It is important to me that my clients know that I have a passion for my job and that I truly enjoy it, in turn they will enjoy you as their agent. They need to know that you are excited to help them and they in turn will be excited with you.

Windermere Burbank Open Home Extravaganza for the weekend of July 29, 2007

2007-07-27T07:17:00.000-07:00

Please click on the following link to view all of our Open Homes for the weekend of July 29, 2007.

Windermere Burbank Open Homes

During our Quaterly Open house Extravaganza we open some of finest homes for public showings. This Sunday we will have a total of 19 homes available to view. In addition all visitors may enter to win a $20 gift certificate to McCormick & Scmidts. You may enter the drawing once at every home you visit.

There are some great homes being held open and we would love to see you there.

If you have questions or would like to schedule a showing of any of these fine homes please do not hesitate to let me know.

We look forward to seeing you there.

2007-07-26T07:37:00.000-07:00

Every year the residents of the City of Burbank through our local newspaper The Burbank Leader are asked to vote for their favorite businesses in the area. Our city has over 140,000 residents and businesses who have the opportunity to cast their votes. This is the 12th Yearthat the city has run this prestigious award for its local businesses

I am please to say that this year Windermere Real Estate / Bill Toth & Associates was officially voted "Best Real Estate Company". In addition our owner/broker Bill Toth was voted "Best Real Estate Agent".

Our office in staying with the Windermere philosophy is a great group of close knit agents where we foster teamwork and family values. Windermere is a community oriented company who firmly believes in giving back to the community. It is this philosophy which sets not just our Brokerage but the entire Windermere Family apart.

Home sales slump, but prices tick up

2007-07-25T08:23:00.001-07:00

Pace of existing home sales shows bigger-than-expected drop, but year-over-year price measure shows first gain in nearly a year.
NEW YORK (CNNMoney.com) -- The pace of existing home sales fell to a more than four-year low in June, according to the latest reading on the state of the battered real estate market, although year-over-year price comparison showed the first uptick in nearly a year.

Sales of existing homes slowed to an annual pace of 5.75 million in June, according to the National Association of Realtors, compared with the revised 5.98 million sales pace in May.

It was the slowest pace of home sales since November 2002, as rising mortgage rates and problems in the subprime mortgage sector continue to put a squeeze on financing. Economists surveyed by Briefing.com had forecast that sales would slow to a 5.9 million pace.

But the median price of a home sold in the month edged up 0.3 percent compared to a year ago to $230,100. It was the first time since July 2006 that there has been a gain in that closely-watched price measure. The June price jumped 3.3 percent compared to May.

The numbers suggest that some potential home sellers have pulled their homes off the market, or chosen not to list them, because of the current weakness. The inventory of homes available for sale fell 4.2 percent compared to May, despite the weak sales pace during the month.

Still that glut of 4.2 million existing homes on the market is up more than 12 percent from a year ago, and it represents an 8.8 month supply, the same as in May, when it hit a nearly 15-year high.

But any reluctance by sellers to enter the market is also being matched by caution from potential buyers.

"Although general buying conditions remain favorable for long-term home buyers, it appears some buyers are looking for more signs of stability before they have enough confidence to make an offer," said Lawrence Yun, NAR senior economist, in the group's statement.

Home sales and prices have been hurt by problems in the subprime mortgage market, and the CEO of one of the nation's leading mortgage lenders, Countrywide Financial (Charts, Fortune 500), warned Tuesday that it does not expect a rebound in housing until at least 2009.

Many of the nation's leading home builders have also seen results hurt by the slowdown in housing. Late last month, Lennar, the nation's largest home builder by revenue, reported an unexpected loss in the most recent quarter, as did KB Home (Charts, Fortune 500), the nations' No. 5 builder. Two other builders larger than KB Home, Centex (Charts, Fortune 500) and Pulte Homes (Charts, Fortune 500), have also reported losses, and No 2 D.R. Horton (Charts, Fortune 500) is forecast to post a loss in its next report

The relationship between a Realtor and a Lender, How important is it?

2007-07-23T07:46:00.001-07:00

The other day I wrote a post about a situation I had with some buyers and their Direct Lender Calling all lenders and agents, a little insight please.

These same clients asked me a question after these events which was one that I had never really been asked "How important is your relationship with my lender?". This statement got me to thinking about this relationship and how important it is to not just me but to my clients and the process of purchasing a home.

I simply told them that my relationship with their lender is as important as their relationship with me. The Lender that they chose to work with needs to:

Be sure to lock them at a good rate and in the payment range that they need to be at
Ensure that the loan funds on time
Needs to communicate any loan issues with myself as well as Escrow
Needs to make sure that their docs are signed and in good order in a timely manner
Be reachable to both myself as well as Escrow should we need anything from them
Ensure that escrow can close on time

I proceeded to tell them that in order to do my job effectively I needed to ensure that their lender was as well. Without a solid REACHABLE lender it could greatly inhibit my ability to guide them through contingency removal and to adequately protect their deposit. Let alone to be able to close the deal in a timely manner. I went on to inform them that the lender needed to stay in contact iwth both escrow and myself to let us know how the file was progressing.

They really had no idea how important that this relationship is for and agent during the offer and escrow process. In their minds they truly thought that the lender just did some paperwork and that was all.

Many buyers and sellers do feel that it is the Realtors who control the deal and all aspects of it. While this is true in most aspects of it their are some things that are out of our hands. Lenders play an equal if not larger part of the transaction, THE MONEY!!!! If they do not do their job well then we cannot do ours.

Subsequently, my clients met with my lender and love him. They are going forward with him at this point as the direct lender still has not returned a call that they place from last Thursday morning.

Drop anchor, you're home

2007-07-22T08:30:00.001-07:00

With housing prices high, living on a boat is gaining popularity among ocean lovers.

There are few issues in a marina more likely to rock the boats than the topic of live-aboards -- people or families who live full time on board.

For some, it's the fulfillment of a fantasy lifestyle -- the freedom to pick up anchor on a whim, living unburdened by possessions beyond one's true needs. But the reality is that people choose to live on the water for a number of practical reasons as well.

In Southern California, where homeownership can be cost-prohibitive and rents aren't far behind, living on a boat can be a low-cost housing option or a retirement choice for those seeking adventure. And it's a more affordable answer for families seeking a vacation home on the water.

There are no census or other reliable statistics to indicate how many people live aboard boats. But the long waiting lists at marinas suggest that the demand for live-aboard slips is strong, whereas 10 years ago, some marinas had to offer a free month's rent for people willing to sign a year's lease.

But against the backdrop of today's increased demand, boaters and marinas throughout the country continue to engage in a lively back-and-forth about whether having some -- or any -- boats occupied full time is a good thing. The issues involve safety, environmental concerns, establishing fair usage fees and plain old snobbery.

"If you are a considerate boater, clean and take care of your boat and dock area," said Dave Geoffroy, executive director of the Southern California Marine Assn., "living aboard can be a pleasant experience for all involved."

Once a live-aboard for four years himself, Geoffroy said a few bad apples can spoil it for everyone. "There are people who hang their laundry out, let their boats fall into disrepair, you know, make it look like a tenement."

According to Linda Ridihalgh, editor of Living Aboard magazine, marinas sometimes undervalue their live-aboard clientele -- an opinion echoed by many boaters.

"Sometimes, marinas lose sight of the fact that full-time boaters can be an asset," she said. In a storm, the live-aboards tend to take to the water in their dinghies, recapturing boats that have broken loose. In less dramatic circumstances, their everyday presence helps thwart criminals and vandals.

"Living aboard used to have a certain image, of derelicts or hippies," she said, "but now it's more for boomers heading toward retirement, people looking for more out of life."

But those boomers and others contemplating the lifestyle may find themselves met with a "no vacancy" sign.

Some marinas prohibit live-aboards outright; others follow the industry standard and allow 10% of their slips to be rented to them; far rarer are the marinas that welcome live-aboards unabashedly. And in virtually every marina, there are sneak-aboards, people who stay on their boats without the marina's knowledge or permission.

In most Los Angeles-area marinas, the demand for live-aboard slips so greatly outpaces the number available that long waiting lists are common.

Mark Nicholas, author of "The Essentials of Living Aboard a Boat," said that although it may seem backward, live-aboard wannabes should line up an available slip before buying a boat. This may mean paying rent for an unused slip for several months while they shop for a boat.

The Ventura West Marina in Ventura is rare inasmuch as it allows almost half -- 250 -- of its 554 slips to be rented to live-aboards. All live-aboard slips are presently occupied and there is a 200-name waiting list of people who plopped down half a month's rent as a deposit, general manager Chuck Ormson said.

"We are a reasonable alternative to not being able to afford a $500,000 house," Ormson said. Monthly slip fees range from $210 for a 20-foot boat to $1,080 for an 80-footer. Live-aboards pay an additional $110 a month (for one person; $135 for two; $155 for three) in Phase II and $160 a month (for one person; $210 for two; $255 for three) in Phase I. Children under 10 are free; 10- to 16-year-olds are charged $20 a month.

The Ventura West Marina, in welcoming live-aboards, also provides reasonable accommodations that address some of the problems other marinas have with live-aboards. It rents out inside and outdoor storage lockers for $20 and $10 a month, respectively. There is a laundry on site plus a game room with a lending library, video rental and gym. All the boats are owner-occupied and live-aboard slips are staggered -- meaning all the live-boards aren't in one part of the marina.

The live-aboard population at this well-maintained 30-year-old marina includes a number of families. A few are military families with one parent deployed in the Middle East.

Linda and Brady Guillaume moved on board their 35-foot sailboat with their two sons 18 months ago. The boys, now 6 and 8, attend Pierpont Elementary School in Ventura. Brady commutes to Camarillo to his engineering job. Linda, with a master's degree in counseling and a teaching credential, is a stay-at-home mom for now.

She said living in such close quarters -- about 300 square feet -- isn't a problem because her family "loves being together." Her only condition before agreeing to renting out their 2,000-square-foot Oxnard Shores home and moving onboard full time was that both boys take year-round swimming lessons.

Does the small space ever bother her? Cooking and serving dinner is a cinch, she said, because she doesn't need to take more than a step or two in any direction to reach anything. And when they lived in a land home, "we were all in the same room all the time anyway."

"Less is more," she said. "Some women dream about bigger houses. I dream about getting a bigger boat."

She has an off-site storage area where some family heirlooms are kept. The family's plan is to buy a mountain home in a few years.

Laurin and Caston Dalon spent a year cruising around Central America before the birth of their now-8-month-old son, Cas, prompted them to drop anchor at the Ventura West Marina in January.

"It's a good lifestyle," said Laurin Dalon, 34. "Don't let anyone tell you that's it's necessarily a cheap way to live. It helps if you can work on your own boat, or it can get pretty expensive." She added there's a running joke that "B.O.A.T. stands for 'bring on another thousand.' "

The price varies, depending on size, features and whether they are new or used. Even pre-owned boats can cost $100,000 or more. Many live-aboards get around this by buying fixer-uppers. The Internal Revenue Service permits tax deductions for boat-loan interest provided the craft is used as a primary or secondary home and has cooking, sleeping and toilet facilities. Another way to ensure the interest deduction is to refinance the mortgage on your land-based home to buy the boat.

Author Nicholas, who lives and practices law in Redondo Beach, agrees that the lifestyle only appears to be inexpensive. Typical costs include a monthly boat payment, slip fees, live-aboard fees, insurance and the normal expenses of cable, Internet and cellphone service plus routine boat maintenance and operating costs. He estimated that these could be as much as $20,000 a year.

The Dalons' 46-foot sailboat was a few years used when they bought it for $200,000. It provides them with about 650 square feet of living space on two levels.

Caston, an engineer and businessman, has been a lifelong sailor. Laurin came to the water later, when she met him.

"I can't say we won't, at some point, be land-based," Laurin said. "But we probably will always have a boat."

Although families dot the live-aboard scene, it's more common to find live-aboards like Rick Clemenson, a Santa Monica architect with his own firm. Clemenson, a bachelor, had been living on the water full time in Marina del Rey for the last few years but now spends a few nights a week at his girlfriend's home in Mar Vista.

At 57, he has lived on and off boats for 30 years and came to his current live-aboard status when he and his wife divorced.

"She got the house and everything in it and I got the boat," he said, joking. "It was meant to be."

Although his own boat and dock are clutter-free and spotlessly maintained, Clemenson is quick to admit that some live-aboards cause problems. Live-aboards get a bad name, he said, when they "junk up" the dock with their overflow possessions, don't maintain their boats and disturb their neighbors with excessive partying.

Boats are moored close to one another, Clemenson said, and it's hard to avoid overhearing everything occurring in your neighbors' slip. "Who wants a bunch of drunks next door?" he said. "If you have a bad-neighbor problem, it's literally on top of you."

Clemenson, who calls the Mariners Bay marina home and pays $790 a month for his slip rental (which includes $200 a month for live-aboard privileges), has mastered the art of scaling down possessions to those that are necessary for life on board.

The architect in him likes the minimalism that boat-living necessitates. He uses one of his three bedrooms for storage and tools, and his 150-square-foot living room-galley-dining room area is sufficient space to entertain. There are two bathrooms.

Despite the small quarters, he manages to fit in his books, guitar, laptop and a 17-inch flat screen TV. His business suits hang neatly in a closet tucked behind what doubles as a sink and vanity top. "Things are stacked, so you need to remember where you put them because they are often covered up by something else," Clemenson said.

Live-aboards seem to fall in and out of favor, author Nicholas said. The trend now, he added, is that marinas want "boaters whose boats look good."

He added, "They want their boaters to not look like they have garages in their slips. Right now, they are more flexible with live-aboards. They want people there to keep an eye on things."

Nicholas lives on land now, having had the sailor's curse of falling in love with a woman who experiences seasickness. But he keeps his 35-foot sailboat moored in Long Beach and is introducing his future wife to life on the water in weekend-long increments.

Ann Brenoff, Los Angeles Times Staff Writer

The Reason I (and every agent should) Love My Job

2007-07-21T09:13:00.001-07:00

In life there are many jobs which people have that can give them a sense of fulfilment and satisfaction. Keeping in mind that this satisfaction is different for each individual based on their own needs and values.

In my life there have been a few but nothing which compares to being a Realtor. No matter how hard times are or how good or bad the market may be it is days like today which always remind me why it is that I love my job.

Today I had the pleasure of handing a wonderful young couple the keys to their first home. The look on their faces, the emotion involved with watching them open their front door for the first time and stepping through it is one that I can never seem to get enough of.

Do not get me wrong. There is great satisfaction in finding a repeat buyer their "dream home" or the one that they were waiting to upgrade to but first time buyers are just different to me.

This couple had been looking for over 10 months to find the right place. We had viewed over 30 homes in the process and they just could not seem to find the right one. Then one day it happened, we found the right home priced below market and we submitted immediately. We went into multiples and at the end of it all they were rewarded with the home of their choice. Their time and patience had paid off.

No matter how many repeat clients I get or how many second or third time buyers I work with nothing can ever come close to handing a first time buyer the keys to their home. It is in a word "priceless" for these are the people who are finally realizing their dreams in life and I as their agent am able to help them to accomplish them.

It truly was a great day

2007-07-20T07:43:00.000-07:00

As many Realtors and clients alike know, over the past several years it seemed like everyone was getting a real estate license. Much like during the dot com era where everyone was a web designer now everyone was either a Realtor or a Mortgage Consultant.

As the market has changed I think that for those of us who are still here we sometimes need a little reminder as to what it is that we are here to do and why it is that we do it.

We need to remember that it is not only our job to find and sell homes for our clients, that is the easy part.

Our job is to also:

1. Guide our clients

2. Educate our clients

3. Communicate with our clients

4. Provide for our clients

5. Inform our clients

6. Respect our clients

7. Make the process and enjoyable one for our clients

8. Appreciate our clients

9. Most of all, cherish and remember our clients

Over the past few months I have seen more and more of the agents who got in the market for the quick dollar off looking for the next great boom. I am more than glad to see them go as they tarnished our profession and left us to clean up the mess.

Many clients had terrible experiences and have come to look at agents as overpaid car salespeople. It is up to us to regain the trust of those clients who fell prey to less than honorable Realtors and Mortgage Consultants.

This is our time to shine and show them what a REAL professional agent can do for them and what a great experience they can have when working with a true professional Realtor and or Lender.

For buyers they need to know that the buying process should always be a fun and exciting time and that we will be there for them every step of the way. Sellers need to know that we are here to market and sell their home for the best price we can get and that we are ready and willing to give them our all.

We have to remind ourselves that it is the service after the sale that matters as well. Many clients were left by the wayside after their home was purchased and or sold, then forgotten by their Realtors.

It should not always be about the payday but the relationships we gain in the process that truly matter. While we all need to make a living we can still do so and take great care of our clients.

Bottom line there is more to being a Realtor than having a license, you have to EARN the right to call yourself a Realtor. Lets go out there and show them what it is that we can really do.

Calling all lenders and agents, a little insight please

2007-07-19T08:14:00.000-07:00

Ok, so I am just a bit frustrated right now and need some insight from the lenders and agents out there.

While I know and understand that the loan business is just a bit off right now I had something happen that has really made me so irritated that I was at a loss.

Last Sunday I took some clients out to view some homes. We were scheduled to view 6 for the day but after home #2 they found the one they wanted. We spent quite some time in the home and spoke with the owners. Afterwards we talked for around another 30 minutes outside the home going over options. Upon parting they had decided to go home and discuss the home between themselves. Then I got the call 2 hours later that they wanted to submit an offer.

They traveled 40 minutes to my office, we sat down and drafted a very good offer. I knew that they were talking to a lender(bank) and they had called the loan officer who told them that the loan would not be a problem and that they would have a pre-approval done by 9am the next day. With that in mind we sat and drafted the offer until 10pm Sunday night, we got everything lined up so all we needed was the letter to submit.

The next day(Monday) I went back to the office and began my day, but by 11am no letter. I called my clients who in turn contacted their loan person who said that they would have it to me by 3pm. I continued about my day with my other clients and at 4:30 still no letter. I then called her myself and she informed me that she had not heard from her underwriter and that she could only provide me with a pre-qual letter.

It was at this point that I was about to lose it. I asked her if she was certain that I would have it the next day at which they assured me. I then explained that I do not normally submit offers with a pre-qual and that I would need the new letter the next day as I was going to inform the listing agent of this so they new it was coming. I went on to reiterate the need for the letter and how I base my reputation on coming through with what I promise to clients and agents alike.

At 7pm that night I got an e-mail from the lender in word format, no company letterhead, no signature and no branch affiliation. I was at a total and complete loss for words, there was no way that I could submit this letter. This is not how I do business and my clients were stressing out as they are first time home buyers. I was able to talk to them about the situation and assure them that all was well.

Now keep in mind that my clients are putting 40% down and have near 700 FICO scores each. I fail to see any problem with a pre-approval for this loan.

Ultimately my clients call my lender who provides them a pre-approval with a great rate within 30 minutes.

Here is my grief. We drafted the offer on Sunday night and I just got the pre-approval from the bank today(wed) in the late afternoon. We had already submitted the offer with my lenders letter and I was promised her letter Monday morning. however due to the time delay we are now in a multiple situation.

Has the loan business at the banking level gotten this strict or was this person out of their mind. I have done quite a few deals and never run across this type of issue before. How can it possibly take 3 days to get a pre-approval with well qualified clients from a bank? Is this a sign of things to come or just a bad loan officer?

Burbank Blvd. Redevelopment Project Underway

2007-07-18T07:38:00.000-07:00

Above is an artists rendition of the completed project.

The long awaited redevelopment project of Burbank Blvd has finally begun. Be ready for traffic delays and heavy machinery all along Burbank Blvd.

This week the City of Burbank and the Burbank Redevelopment Agency begun the demolishon Phaseof Burbank Blvd. This is outlined in Phase I and Phase II of the project and is running from Clybourn all the way to Buena Vista St.

During the projected 7 month project which will ultimately stretch from Clybourn to Victory Blvd. (2.2 miles) most of the street will be limited to 1 lane in each direction during normal business hours and may be extended to 2 lanes each as construction permits. Street parking will also be limited as will turning onto side streets.

The ultimate goal of the project is to beautify and update the look of one of the cities busiest streets by placing center islands with trees and plants.

Rent-to-Own Real Estate Deals - Buyer and Seller Beware

2007-07-17T10:53:00.001-07:00

Although they've actually been around for decades, rent-to-own contracts that substitute for mortgages and conventional home loans are enjoying a surge in popularity in several regions of the country. The slumping real estate markets in parts of the U.S. fuels these deals, where homes can sit on the selling block for months at a time.

Add to this the recent tightening of rules and regulations for bad credit loans and a near perfect storm has been created for rent-to-own scenarios. It sounds like a great way for home sellers to speed up the sale of their home.

Think of it this way: Lots of folks with bad or bruised credit simply can't qualify for a home loan under current guidelines. So, instead of just renting a place to live, they opt for non-traditional arrangements to buy a home. These arrangements are contracts between the buyer and seller and don't involve a bank or mortgage company. One of the most common rent-to-own contracts is the land contract.

A land contract is essentially an agreement between the buyer and seller where the seller "finances" the buyer to purchase the home. A payment schedule (monthly amount multiplied by the number of months) is agreed upon, and the buyer pays a down payment as a security deposit to the seller. The title of the home remains with the seller until the buyer has made all the payments. The payment schedule usually covers only a part of the sale price of the home, which means that at the end of the payment schedule, an outstanding balance remains. This is usually paid using what's called a balloon payment. So, the buyer pays payments for a set period of time, and then must pay the remaining amount to buy the home. For example, the buyer may pay $800 a month for 10 years and have a balloon payment of $50,000 due at the end of the 10-year contract.

Here is the risk: Land contracts aren't always publicly documented and recorded; rarely a good idea when dealing with real estate and this much cash at risk. Another common rent-to-own scenario is renting or leasing with the option to buy. Such options are different from land contracts in that the agreement is usually filed and is a legal arrangement. They give the renter or lessee the option to buy the property at a set time during the loan. With an option, rent payments become equity in the property.

While the benefits of rent-to-own arrangements may seem strong, both the buyer and seller need to be aware of problems that can result from poor planning. A few of the most common problems faced with rent-to-own scenarios are:

* Repossession can be difficult if the buyer defaults on payments

* The seller is stuck with any repairs, even if the buyer caused them

* The seller may be responsible for real estate tax and property insurance

* If anything goes wrong, the buyer may lose any money paid, including the deposit

* When the time comes, the buyer may not be able to finance the balloon payment after all (remember, the buyer couldn't get financing to buy the home in the first place)

The most important factor to remember with rent-to-own is that all terms of the contract or option must be spelled out to the smallest detail to avoid any problems. Who is responsible for repairs to the home? Who is responsible for maintenance? What happens if the buyer misses a payment? When is a late fee added? When is the down payment refundable, or at what point does it become non-refundable? Are pets or roommates allowed? Who is responsible for paying property tax and insurance? These are just a few of the important questions buyers and sellers should consider and work out prior to entering into an agreement.

It's not hard to see why hiring a lawyer to review a land contract or "option to purchase" agreement is a very good idea. There are so many details and potential issues that need to be covered that it's almost impossible for people to set these up correctly without professional guidance.

A little painstaking preparation setting up a land contract or option-to-purchase will help prevent a lot of problems down the road. And even with proper legal and real estate guidance, know the risks. A traditional mortgage to buy and sell the home may still be worth the wait.

News provided by Quicken Loans

Six popular incentives that might catch a home buyer's attention

2007-07-16T13:22:00.001-07:00

Price is king, but these extras also might catch a buyer's attention

CHICAGO (MarketWatch) -- Flashy buyer incentives like a new car parked in the driveway or a flat-panel TV might grab headlines but when it comes to actually enticing someone to buy a home it's the more practical perks that count, real-estate professionals say.

"Serious buyers are looking for a place to buy a home, not a trip to Tahiti," said Dave Ledebuhr, owner/broker of Musselman Realty in East Lansing, Mich. On top of that, lenders are leery of gimmicky incentives, fearing that they're built into the price of the home and that loan dollars are being used to pay for that tropical trip, he added.

Instead, effective incentives get to the heart of what's on the minds of potential buyers -- the overall cost of the home and the monthly payments they'll have to manage, he said.

Help in bringing down the interest rate of the mortgage for a year or two by paying points, for example, can go a long way in giving one home an advantage over another, said Dave Dalzell, owner/broker of Dalzell, Realtors in Abilene, Texas. Contributions to the down payment and common closing costs could especially be of help to a first-time home buyer, said Greg Zadel, owner of Zadel Realty in Firestone, Colo.

Incentives can be considered when the home is first listed as a way to distinguish it from the start, Dalzell said. They can also be added when the home hasn't sold in two or three months as a way of enticing a buyer without lowering the cost. Or incentives could arise in negotiations, when a buyer needs that one extra little nudge to commit.

Make no mistake, the location and condition of a home are going to be its main selling points. But if sellers "put on their buyer's cap" and really consider what issues the buyer might have, it could make all the difference, Dalzell said.

"I tell my seller to look at his bottom line," said Susan Ramsey, a Realtor with Re/Max Integrity Realtors in the Phoenix area. A seller should figure how low he or she is willing to go, factoring in both the selling price and other incentives used to get a buyer to commit.

But also be aware that most seller concessions need to be disclosed. "Everything should be in writing and attached to the contract," Dalzell added.

In addition, buyers and sellers need to make sure that they don't exceed the lender's allowable seller-paid assistance, Ledebuhr said.

Below are six of the most common incentives being used in markets today:

1. Reducing the price

A price reduction might be the most common buyer incentive, and often it is the one that is looked at first, said Delores Conway, director of the Casden Forecast at the University of Southern California's Lusk Center for Real Estate.

"The price is something that is a common currency -- it appeals to everybody," she said.

Gene Rivers, who owns four Keller Williams offices in Florida, agreed. If a buyer has in her mind that she'll pay $350,000 for a home and the seller won't budge from $375,000, "$5,000 in closing costs and a plasma TV ain't going to get it done," he said.

But those extra little perks can grab the attention of a buyer; it also might inspire a commitment from someone on the fence between two similarly priced properties, Dalzell said.

"What we usually recommend before you reduce the price ... think about what you can do with the same dollars in an incentive," Dalzell said.

2. Paying points
Sellers can offer to pay mortgage points for a buyer, an incentive that Dalzell tends to use in environments like today's, when rising interest rates are at the front of a buyer's mind. One point is 1% of the loan amount, charged as prepaid interest. For example, instead of having an interest rate at, say, 6.5%, a seller might be able to pay points so that the rate is at 4.5% for the first year, Dalzell said.

"When a buyer sees a lower interest rate or monthly payment, that's something they can relate to," he said. The setup makes sense for a buyer who has furnishings to buy for the new place; it also can make for an easier monthly-payment transition for families that are upsizing.

A word of caution to buyers considering this tactic, however: This assistance doesn't last forever and usually spans about one to three years. Before accepting, understand and plan for the point in time when the window closes and payments return to their normal levels.

3. Down-payment aid

For some buyers, the hardest part of entering the ranks of homeownership is the down payment -- also an area where a seller can help. It's mostly first-time home buyers interested in this kind of assistance because they're often the ones lacking in funds to complete a deal, Zadel said.

"It gets people into homeownership," he said. "The disadvantage is that the buyer is financing that additional amount," he added, because a seller would likely come down in the price of the home if a chunk weren't dedicated to down-payment assistance.

4. Help with closing costs

Closing costs include items ranging from taxes to title insurance and can add up, ranging between 2% and 7% of the loan value, according to Freddie Mac. So many buyers, especially those stretching to make a down payment, will be interested in having a seller help out.

In Phoenix, buyers in every price range have been asking that these costs be covered, according to Ramsey. "They ask for it because they know that they'll get it," she said.

5. Adding a home warranty

A residential service contract is sometimes thrown in as an incentive because it acts as insurance for a home's systems, often including plumbing, heating and cooling.

At a cost of a few hundred dollars, some real-estate agents consider it an inexpensive add-on that affords a buyer a little extra peace of mind, Dalzell said. That peace of mind can be especially welcome during the first year in a house.

Others take a different view, and say there's often confusion over what elements are covered. If a problem is considered a pre-existing condition, assistance could be limited.

Plus, a warranty might not be necessary for a handy buyer who would likely take on projects himself, or " if you're buying a condo that's two years old, a home warranty might not be that big of a deal," added Zadel.

Those who accept a warranty should read the service contract and call the 1-800 number to ask questions, Dalzell said. If the seller pays for this add-on, he recommends having the buyer choose which company to use.

6. The little things

Other perks will appeal to buyers, too, ranging from the common to the unique.

Payment of homeowner association fees -- typically associated with condo developments -- are sometimes offered. Ramsey said that sellers with pools might also offer a year's worth of upkeep for it, a welcome help to those worried about the maintenance of the backyard attraction.

Or maybe if a corner of the home was designed to fit a grand piano, leaving that instrument behind entices a buyer to go through with the deal, Conway said.

The important thing for buyers to remember, Conway added, is that they should honestly want this add-on. Translation: A homeowner with no interest in music probably should give up a piano for a more personalized incentive.

MarketWatch

By Amy Hoak

Deals draw homebuyers into the housing market during holiday week

2007-07-13T08:45:00.001-07:00

News provided by Quicken Loans

The number of Americans looking to buy a home increased last week despite it being a holiday week, the Mortgage Bankers Association (MBA) announced today. In its Weekly Mortgage Applications Survey for the week ending, July 6, the MBA found that the Market Composite Index, which measures how many consumers have applied for a mortgage loan, increased 1.1 percent over the previous week.

Mortgage applications to refinance an existing mortgage tapered 3.0 percent from the previous week; however the Purchase Index, measuring applications to buy a home, increased 3.8 percent from one week earlier.

Bob Walters, chief economist of Quicken Loans, says the sheer number of homes currently for sale has created opportunities that many potential homebuyers see as too good to pass up.

"The increase in consumers purchasing homes is welcomed news coming from a holiday-shortened week, and it seems to indicate that people are recognizing the fact that there are deals to be found in the housing market as a result of the current inventory of unsold homes," says Walters. "Homeowners are willing to make concessions to get their homes sold, plus we've seen favorable employment numbers the past two months, so I would expect strong home sales numbers throughout the summer season."

Windermere Burbank Open Homes for the weekend of July 13, 2007

2007-07-13T08:39:00.000-07:00

Please click on the following link to view all of our Open Homes for the weekend of July 13, 2007.

Windermere Burbank Open Homes

There are some great homes being held open and we would love to see you there.

Seller Concessions Can Help You Sell Your Home

2007-07-10T08:59:00.001-07:00

News provided by Quicken Loans

If someone is unfortunate enough to live in an area with a glut of homes for sale, they probably know how hard it can be to sell a house in such a real estate market. It's the old "supply vs. demand" concept, and when supply outgrows demand, things can get hairy for sellers. It's not uncommon for homes to spend months, if not years, on the market in certain areas of the country.

As a result, home sellers have gotten creative with finding innovative ways to promote their homes and make them stand out. From home staging to major landscaping updates, sellers are doing more today than ever to increase the curb (and indoor) appeal of their homes. There is no question such tactics work, but they can be very expensive. When looking for less expensive solutions to make a home more sellable, home owners may want to consider seller concessions.

Seller concessions, also referred to as seller contributions, are a great way to make a home more affordable and appealing to a buyer. The concept of seller concessions is actual pretty simple. The seller basically agrees to cover some, or all, of the costs associated with buying a home. For example, the seller may agree to cover such closing costs and fees as discount points, title insurance, appraisal fees, attorney's fees, inspection fees, etc. Another way to arrange seller concessions that is becoming popular is to have the seller pay the first six months of mortgage payments for the buyer. This is a great benefit for first-time home buyers, and can help them save money and transition into their new home.

Some may wonder why home sellers would be willing to offer such concessions, as opposed to just lowering the home price. The answer is simple math. A seller most likely can deduct some of the costs associated with seller concessions from their taxes. For example, discount points and real estate taxes most often will be tax deductible (check with a professional tax advisor before finalizing any seller concessions). And selling a home quickly can be a huge savings to the seller, especially if they have moved before they sell. Bills on unsold homes can add up to the thousands very quickly.

But remember, there are restrictions and rules that govern what are legal seller concessions and what may not be. Be sure to check with your real estate agent and mortgage professional about local laws and regulations. An all-too-common, but potentially illegal and unethical activity, is for buyers to inflate the price of a home and ask for "cash under the table" at closing. For example, a buyer may agree to purchase a house for $120,000, but actually only want to pay $110,000. At the closing the seller must bring $10,000 cash to the buyer. Be very careful with "under the table" arrangements such as this. They may not be considered "seller concessions" and may actually be illegal. If presented with such an arrangement, be sure to check with lawyers and tax advisors before accepting.

And the sky is not the limit when it comes to how much a seller can pay with seller concessions. For the most part, the seller can legally cover two to nine percent of the purchase price. The exact amount depends on several factors, including the kind of mortgage the buyer chooses, how the home will be occupied, and the amount for which the home appraises.

Seller concessions can be a useful and appealing tool for sellers to make their homes more attractive to buyers. With guidance from mortgage and real estate professionals, sellers can put together a concession package that benefits both themselves and the buyer. When tax deductions and lower costs associated with a home being on the market a shorter time are considered, seller concessions can actually be a low-cost way to entice buyers to purchase a home.

Burbanks Energy Saving "Made in the Shade" FREE tree program

2007-07-08T23:06:00.000-07:00

One of the greatest things about the City of Burbank is how they are always looking for ways to improve the quality of life for its residents and at the same time provide them incredible services at no charge.

One such example of these programs is the cities "Made in the Shade" program. This program is run through Burbank Water and Power and entitles each property up to (3)three FREE shade trees. They include the tree, stakes, ties and arbor guards.

The program is designed to not only increase the appeal of homes in our community but to also create a tree lined street which will keep homes cooler in the hot summer months. As Burbank has its own private Water and Power facility which services over 45,000 households and 6,000 businesses this adds up to a great saving to residents in the city, hence keeping our bills lower than average.

Burbank Water & Power, they will send an arborist from the city will come out and assess the property to give you ideas on where to place the trees and which of the 30 trees may best suit your needs. You are given a 30 minute video to watch and will need to plant the trees yourself.

This program has proven to reduce air conditioning cost from 10-50% for our residents in the past and helps with the quality of air in the city.

For more information on this great program you can visit the cities website or call the Burbank Department of Water and Power at 1-(818)238-3700.

Windermere Burbank Open Homes for the weekend of July 7, 2007

2007-07-06T09:02:00.000-07:00

Please click on the following link to view all of our Open Homes for the weekend of July 7, 2007.

Windermere Burbank Open Homes

There are some great homes being held open and we would love to see you there.

Short Sales Not Just About Cancelling Mortgage

2007-07-06T08:16:00.001-07:00

We're hearing a lot about short sales these days (summer 2007). The key words in the Multiple Listing Systems around the country are "third party approval required," or "bank approval required," which is a signal that the property you're looking at is actually being sold by the mortgage holder rather than the deed holder.

Before you get involved in one of these transactions, understand what they are not: a short sale is not simply a sale of a property for less than the original purchase price. It is not necessarily a "pre-foreclosure." It is not always a good deal.

What a short sale is: A short sale is a pre-foreclosure only in the fact that the lender has decided to receive payment on the note for less than the face amount. The sellers have determined there's no way they are going to get as much for the house as they owe and they can't stay in the property for one reason or another. The terms of such sales will differ lender to lender. Some require that the owners demonstrate they can't afford the house (that they're broke, in essence) and that there's no money to bring to the table to make up the difference.

It's a sticky situation for the sellers/owners. They don't want to hurt their credit or go into foreclosure, but they have to move because they've been transferred, lost a job, took a new job or are overextended, but they don't have the cash to pay the marketing costs, closing costs and pay off the mortgage.

Some short sales are real diamonds. I've seen some that look great, offer closing costs, priced aggressively and offer selling bonuses just to get the house off their books.

Conversely, they can also be some of the toughest deals to get through to settlement if the lender has lost too much money already and just wants to wait out the buyers until one comes along who's willing to buy the house in disrepair with no closing costs.

If you're writing a contract on a short sale here are a few tips to keep in mind:

Be patient. Because of the current default situation on mortgages, the lenders are inundated with many of these type properties. You're offer is one of many and the processor will get to it in turn. Don't expect a response in a day -- maybe not even two to three days. Sometimes a week is not out of the ordinary. Putting in language such as "response required within 24 hours," may just be a waste of time, rather than a stimulus to get a faster response.

A good comparative market analysis is imperative. Be sure to hit the price right on the head and offer close to it. Most lenders have already lost enough money, they don't want to lose more with a really low offer. If it's overpriced, then offer right at the CMA amount. But if it's right on, offer the full price.

Pile on the contingencies. This works well if you're writing a full price offer. Those would include inspections (home, pest, radon, etc.); appraisal; financing; etc. Ask for a lot and expect nothing.

Be on top of your walk through. Most short sales don't like home inspections, thus be aware of the condition of the property. If possible, test all the systems (electrical, plumbing, heating/air). This is as simple as flushing toilets, using a socket tester (available at hardware stores); and turning on the furnace/heater/air. You may even want to turn on the washing machine and dishwasher – but ask the listing agent beforehand. (PLEASE DON'T BRING YOUR OWN LAUNDRY AND DIRTY DISHES).

If you're on the selling side of a short sale, keep in mind you're not the one in control anymore. The buyer/agent is going to be dealing with the listing agent and the lender more than anyone else. You may want to be involved in the sale, but you're mainly there to agree to the terms set forth by the lender. Sign the paper work. Move your stuff -- out. They want their money and your home is the only thing standing in the way.

So you're out of trouble, right? Not so fast. The bank could come after the rest of the balance separately from the sale, just like they can with a foreclosure. On top of that, any cancellation of debt above $600 is supposed to be reported as income to you through Form 1099-C (Cancellation of Debt) to the IRS. For instance, let's say you sell your house for $30,000 less than you owe, that 30-grand could be additional income the IRS will want to tax.

by M. Anthony Carr - Realty Times

Burbank 7-11 Converted to Kwik-E-Mart

2007-07-05T12:15:00.000-07:00

One of the joys of living in a astudio community is being able to enjoy certain fun little things that come around from time to time.

This is one of those times.

Right now in an effort to promote the new upcoming Simpsons movie the 7-11 franchise has converted one of our Burbank locations into a Kwik-E-Mart.

You will be able to actually buy the following products:

Squishee

In Springfield, Squishee is available in many flavors including blue, red, lime, green, chutney, and champagne. For the month of July only, Squishee is available in Blue Woo Hoo! Vanilla – be sure to get there before Apu decides to try chutney flavor again. In special honor of the 80th Birthday of 7-Eleven, stop by for a complimentary 7.11 oz. sample – sort of our birthday gift to you!

Buzz Cola

Come in for a 12oz. can of Buzz Cola, the cola of choice for citizens of Springfield, while supplies last. Add a can to your collection – remember, Buzz isn’t just for drinking! “Twice the caffeine, twice the sugar,” or at least that’s what the say in Springfield. For 7-Eleven, the caffeine and sugar levels may be more in line with what customers are used to drinking.

The Official Pink Movie Donut

Full of sugary goodness, take home a couple dozen of Homer’s sprinklicious pink donuts with sprinkles on your way to work in Sector 7G at the Springfield Nuclear Power Plant. Apu reminds all customers that “a Twizzler® is not a sprinkle; a Mounds® Bar is not a sprinkle; a Jolly Rancher® is not a sprinkle. Perhaps in Shangri-La they are, but not here.”

KrustyO’s Cereal

Available only while supplies last, KrustyO’s breakfast cereal in the convenient 13.5 oz. box is endorsed by Springfield’s most famous entertainer, Krusty the Clown. Is there a jagged piece of metal in every box? No, but there’s no nutritional value in every box either. Can you really eat it? Sure you can – Bart has been eating KrustyO’s for more than 18 years and, well, maybe that’s why he stays so young. It’s not just breakfast cereal – it’s collectible too!

The Simpsons Movie Collectible Slurpee Cups and Magnetic Straws
Created exclusively for 7-Eleven, each collectible 22oz. Slurpee cup features a character from The Simpsons Movie in a scene from the film. The reverse side of each cup proudly displays the Kwik-E-Mart badge of honor: Squishee! These bright yellow cups with yellow lids feature the likes of Homer and Bart, Homer and the pig, Marge with her favorite copy of Springfield Tattler, Naked Bart, and Lisa. Collect all five while supplies last.

What would a collectible Slurpee cup be without a collectible Slurpee spoon-straw? Sold separately, six designs bring characters from The Simpsons Movie to life with a removable, dimensional magnet. Decorate your filing cabinet, refrigerator, or even the metal plate in your head with the likes of Homer, Homer and the pig, Marge and Maggie, Naked Bart, Apu, and Lisa! Supplies are limited and will sell out quickly.

Radioactive Man Comic Book Edition #711
Limited edition #711 has been created exclusively for sale by 7-Eleven and features Bart’s favorite superhero, Radioactive Man. Originally featured in a mid-20th Century black and white serial sponsored by Laramie Cigarettes, Radioactive Man made his debut in 1952, in Springfield that is. He now comes to life in the newest edition of this highly collectible comic book, while supplies last.

Sorry no Duff Beer
Stop on by to get a taste of pop culture history. You can visit this special store located at:

1611 West Olive Avenue

Burbank, CA 91506

You can see other available locations at the 7-11 website.

Helping the new agent in the office, everyone should take the time

2007-07-03T08:06:00.001-07:00

When I first started out in Real Estate I was at a top office in my area. There were almost 100 agents there and the office had a buzz about it that was both exciting and encouraging.

As time moved on and I was trying to learn the ropes, something became overwhelmingly clear to me, I was on my own. Everytime I would try to approach an agent or broker for advise or help I was quickly brushed off and pushed into a corner. No one seemed to want to be bothered with a "new agent".

I worked evenings and weekends at the office for a few weeks trying to read up on how to go about getting started and which direction may be best suited for me. During the evenings at the office I found a few other new agents like myself that were just about as clueless as I and equally as frustrated.

When it came time for me to write my first offer I found the same empty space where I once thought that support would come from and was at a loss when assistance could not be found.

After a while with that office I came to a realization that this was simply not the place for me so I started my search for a new home. After a few weeks of interviews with other brokers I found my current broker and have no intention of ever moving again.

When I met my broker for my interview he took the time to show me around the office and introduce me to all the agents who were there. Each smiled shook my hand and made me feel right at home. After I made the move and people knew that I was now a part of the "team" they each came to my desk and introduced themselves to me. Each offered any and all assistance that I may need in getting started. They all made good on their offers. This one simple gesture rekindled my energy and motivation that had all been lost.

It has been quite some time since that first day and I have come along way in my career but not without the help of just about each and every agent in my office. Each one has taught me something and now I have been able to give back what once was given to me. My office is now comprised of over 50 agents and we all openly communicate and share information with each other.

I have since started helping new agents learn the ropes as they start their careers in Real Estate.

While our office does offer classes as many do there are a few simple things you can do to help a new agent feel comfortable and at the same time educate them:

1. Take them on caravan with you - Most will not go by themselves and this is a great way to get to know them and educate them on the inventory.

2. Take them to preview homes with you - If you are going to preview a home for a client offer to let them come along. Again this will help them to understand other aspects of the business as well.

3. Share an Open House with them - You can show them how to conduct an open home and how to talk to clients that show up.

4. Sit on floor time with them - Help them to learn how to handle floor calls to get the most out of floor time. Even if they sit in on your floor time to see how you do it. Many new agents are eager to learn this skill.

The reason I write this is that last week we had another new agent in the office who is friend of mine write her first real offer. She was panicking and confused and not very sure of herself. She is a great lady and will be a great agent. I put aside my work for a bit and sat down with her and helped her to prepare her offer for her clients and explained everything to her. She was extremely grateful and ultimately opened her first escrow yesterday. I think that I was as excited for her as she was for herself.

New agents are nervous enough to begin with but we all have to remember that we all started in the same place. We need to take some time to help the new agents in our offices and help them to become the best that they can.

Unfortunately not all will make it but at least we will know that we were able to give them a chance. That we did not just leave them sitting in a corner wondering what to do next.

It can not always be about us as individuals for even though we are all private contractors we are all a family as well. It is not just how well we do by ourselves but how well our individual offices do too.

Subprime loans get new standards

2007-07-01T07:50:00.000-07:00

Principles issued by bank regulators include new consumer protections; lenders should only offer loans to those who have proof they can repay.

WASHINGTON (Reuters) -- U.S. bank regulators Friday tightened standards for mortgage lending in a bid to curtail risky practices that have been blamed for a record level of foreclosures.

Borrowers should not be penalized for refinancing a mortgage before a low introductory rate resets to a higher level and lenders must have evidence a borrower can repay, according to a statement of principles issued by the regulators.

While several lawmakers congratulated the regulators' initiative, they said more must be done to prevent the current crisis from happening again and to aid troubled borrowers.

"The regulators have taken an important step in the right direction, but it only gets us part way to our final goal," said Sen. Christopher Dodd, chairman of the Senate Banking Committee, who has said the regulators stood aside for too long as the current mortgage crisis unfolded.

The guidelines, which lenders treat as binding, also call for lenders to warn borrowers when a reset is coming and grant them at least 60 days to refinance.

"This guidance ... underscores that the Federal Reserve and other banking regulators expect lenders to make sure subprime borrowers not only can afford their monthly payments while the introductory rate is in effect but also after the interest rate resets," Federal Reserve Governor Randall Kroszner said in a statement.

Many lenders relaxed underwriting standards for subprime borrowers with shaky credit during the recent housing boom. Among the most popular loans were those that offered low early payments that spiked within a few years.

As the housing market has soured, many of those borrowers fell behind in their payments and a record portion of borrowers faced losing their homes in the first three months of the year. Many of the biggest lenders to subprime borrowers have been pushed into bankruptcy.

Besides protecting borrowers from costly refinancing, the guidance discourages loans that have let borrowers inflate their income to qualify for a loan. So-called "low doc" mortgages were offered to borrowers, even if they could not document that they had the resources to make payments.

Lenders should only offer such loans to borrowers if there is other evidence that they can repay, according to the Friday statement.

A borrower who is refinancing a home or has a valuable asset that can be turned into cash might not need to prove all their income, but low-doc loans should be the exception rather than the rule, said John Dugan, head of the Office of the Comptroller of the Currency.

Dugan said he did not expect the standard to discourage home purchases by immigrants and those who work in a cash economy.

"I don't think this precludes [low-doc loans in] some special circumstances as long as there is some way to look at the income the borrower has ... like a tax return," Dugan said in an interview with Reuters.

Some lenders had hoped regulators would leave space for subprime borrowers to get a new loan without meeting the stringent new underwriting standards.

However, Friday's principles seemed to close the door on those hopes as it stressed that borrowers should be qualified based on whether they can make payments over the life of the loan.

Dodd, a Connecticut Democrat, on Friday pushed the Fed to enhance the guidance by requiring lenders to collect and hold a subprime borrower's taxes and insurance in a trust, called escrow. Under the Home Ownership and Equity Protection Act, the Fed has broad power to stamp out unfair lending practices and it is currently reviewing its authority.

Sen. Charles Schumer, a Democrat of New York, said Friday that "there is still more that needs to be done" and called for support of his plan to spend $300 million in assistance to troubled borrowers.

The guidance was issued by the Fed, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp., the Office of Thrift Supervision and the National Credit Union Administration.

While the guidelines will immediately affect banks and others who lend funds from their depositors, it does not apply to firms that lend money from investors and Wall Street. In recent years, a large share of risky subprime loans came from non-banks that are regulated by the states.

On Friday, the Conference of State Bank Supervisors said it intended to harmonize state regulations with the federal standards.

cnnmoney.com

OUTDOOR SUMMER MOVIES ARE BACK! - WEDNESDAYS IN JULY AND AUGUST

2007-06-30T15:03:00.000-07:00

OUTDOOR SUMMER MOVIES ARE BACK! - WEDNESDAYS IN JULY AND AUGUST

When the sun goes down, the screen will go up on Wednesdays from July 11 to August 15 starting at 5:00 P.M. as Burbank Town Center's ever-popular summer outdoor movies returns for an encore presentation.

These are great movies and a lot of fun for the family during the summer months. Come on out and enjoy the fun.

For a schedule of movies and more info please click here

Windermere Burbank Open Homes for the weekend of June 30, 2007

2007-06-29T12:42:00.001-07:00

Please click on the following link to view all of our Open Homes for the weekend of June 30, 2007.

Windermere Burbank Open Homes

There are some great homes being held open and we would love to see you there.

Fed Keeps Funds Rate at 5.25%

2007-06-29T08:13:00.000-07:00

News provided by Quicken Loans

The Federal Open Market Committee (FOMC, Fed) has decided for the eighth consecutive meeting to maintain the current Fed Funds Rate (the overnight rate at which banks lend to each other) at 5.25%. This decision reflects further evidence that the housing market is showing signs of stabilization. This decision impacts consumers with adjustable-rate mortgages, home equity lines of credit and credit cards. The Fed meets eight times a year and is scheduled to meet again, August 7th.

This decision was generally expected by the financial markets, according to Bob Walters, chief economist of Quicken Loans, the nation's largest online lender.

"The Fed did not shock anyone with its decision to leave the Fed Funds Rate unchanged at 5.25 percent, particularly the markets, which had already priced in another pause in advance of today's announcement," Walters said. "What was most important coming out of today's meeting was the tone of the Fed's announcement, which can itself cause mortgage rates to fluctuate. As in past reports, the Fed showed concern over inflation, but feels these concerns should diminish over time. Given the tone of the Fed's statement, I doubt we will see much movement in mortgage rates."

Selling the offer for the client, getting back to the basics

2007-06-28T07:12:00.000-07:00

In recent years the strength or weakness of offers were primarily based on the dollar amount. As lending did not seem to be much of a problem for most buyers and many homes were going into multiple offers quickly sellers pretty much just wanted to see the bottom line on how much they were going to make on the sale of their home.

Many deals were done with faxes, messengers and phone calls, sometimes without either agent ever meeting face to face. This is not the situation anymore. The market has changed, the loans have changed and the game has changed. With this change price is no longer the only major factor involved. There are issues outside of the contract which can and do affect the decision making process of the sellers and sellers agents alike.

As the market has shifted, it is time to get back to the true art of presentation. As agents it is our job to represent our clients to the best of our ability. This includes a communicable relationship with other agents with whom you may potentially be working a deal with.

This also means that now you not only have to sell the client and the offer but you also have to sell yourself as a professional who other agents will want to work with. You have to let them know that you are a "good agent" who will be easy to communicate with and will be responsive to issues which may arise during the escrow process. From what I have seen lately there are many agents out there who have forgotten this very important fact.

Here are some of the things that I try to do to set myself apart. These may seem like common sense to some but there are many agents out their who no longer do it:

1. Call the listing agent and let them know in advance that an offer is coming there way.(this used to happen a lot but seems to have been forgotten)

2. Make sure you have a pre-approval not a pre-qual for your clients(many sellers are getting nervous about pre-quals as the loan industry shifts as well)

3. Hand carry the offer to the listing agent, this is a must. You need to meet the other agent and establish a repour with them and let them feel comfortable with you. You should always put a face with an offer as it adds a personality to it that will help them to remember you as well as your clients when they present it to the sellers.

4. Make a follow up call after you drop off the offer letting them know that it was a pleasure meeting them and that you look forward to working with them on this deal.

5. Have your loan officer call the listing agent and express their confidence in your clients loan and to let them know that your clients are qualified buyers.

6. Find out when they are presenting and if there are any questions you or your buyers can answer. This way the listing agent will have answers rather than questions for the sellers when they review the offer with them.

7. Thank the listing agent for their time and their consideration of your offer.

I have closed deals where we were not the strongest offer but the fact that I represented my clients well and did these few basic things for my clients made the difference.

Let's face it, sellers have to chose their buyers a bit more cautiously these days. They need to make the best choice the first time out. This includes not just chosing the right buyers but the right agent to work with as well. They do not want to fall out of escrow and go back onto the market as there may not be another buyer waiting like there was before.

I truly believe that buyers should make sure that their agents are doing this for them to know that they are being represented the best possible way.

Putting the card before the house

2007-06-27T08:38:00.000-07:00

For many subprime borrowers, their first priority is now keeping their credit cards current.

NEW YORK (CNNMoney.com) -- In another symptom of the subprime mortgage meltdown, stressed-out borrowers may be taking care of their credit card bills before making their mortgage payments.

According to a report from consumer credit reporting agency Experian, borrowers with credit scores of 620 or below are 30 days late more often with mortgage payments than with payments on bank-card debt.

Josh Rosner, managing director at financial research firm Graham Fisher & Co., said the data "highlights the level of distress among subprime borrowers and how close they are to the precipice. They need credit cards to make daily purchases, which takes priority over monthly payments like the mortgage."

Linda Haran, director of product management and strategy for Experian's Decision Sciences division, said the data marks a departure from how subprime borrowers acted in the past, when their first priority was to keep mortgage payments current.

The survey noted that historically, consumers have prioritized mortgage debt over credit card debt as they "traditionally view their home as their most valuable asset which should be protected at all costs."

But the current housing slump, in a very fundamental way, has changed the math that governs the way subprime borrowers deal with debt.

Part of it, according to Doug Duncan, chief economist of the Mortgage Bankers Association, is that people have different attitudes about spending. "The real issue is lifestyle," he said.

To maintain spending levels, homeowners, including many subprime borrowers, relied on the equity they built up in their homes. The last housing boom made many homeowners wealthier by building up home equity.

But you can't spend home equity - not until you convert it to cash - which can be done through cash-back refinancings and home equity loans. Many subprime borrowers joined other homeowners in tapping the value of their property through these products, which increased their debt.

When home prices stopped growing, this fragile balancing act collapsed for many subprime borrowers. With their equity tapped out, they found themselves owing more on their mortgage than the home was worth. Their ability to borrow any more cash was gone.

Duncan said that these subprime borrowers with "little skin in the game," have little or nothing to lose if their lenders foreclose on their homes.

They still have to have a car to drive to work, and they still have to buy groceries. Then, it may make good financial sense to pay charge card bills before the mortgage.

Rosner pointed out another reason that borrowers might be more eager to make credit card payments: Credit card companies tend to be better - more dogged -at collecting debt than mortgage servicers.

Consumers who have dealt with phone calls, letters and wage garnishees from credit card collectors in the past may want to avoid repeating the experience.

Finally, subprime borrowers may have been using some of the cash from their home equity loans or cash back refinancings to pay off credit card debt itself, according to Duncan. Home loans have much lower interest rates than credit cards. And most credit counselors will tell borrowers in over their heads to pay down their credit card debt above all else.

CNNMoney.com

Doing both sides of a Real Estate Transaction, how do you do it if at all?

2007-06-26T08:47:00.000-07:00

I know that in some states an agent is not able to represent both the buyer and a seller in a Real Estate Transaction. In California however it is permissible. In the time that I have been in Real Estate I have yet to do this and have feel that I would have an issue with even attempting it at all.

I simply cannot see how an agent representing Seller A and knowing what the sellers bottom price or position may be can represent Buyer A and not give a little bit of guidance intentional or not on how to structure the offer.

If the buyer tells you he is willing to go up $10k how do you not encourage the seller to counter for more money even if the initial offer is still a good one as is? Likewise if you know that the seller will take $10k less how do you not guide the buyer to offer less when you are armed with that knowledge?

Even if you get beyond the offer you still have to go into the counter offer mode and try to negotiate with both parties without compromising a little bit of information(again, intentional or not).

Then you have to go through inspections and repair requests and negotiate for both parties yet again.

I have seen agents in my office do it, some with great success and some needing a vacation after it was all over. Is it really worth it to put yourself in this type of a position?

I have had clients want to write on listings and in order to protect myself I have refereed them to another agent in the office for a referral fee.

I am not saying that it cannot be done without the clients best interest in mind. I am just asking those agents out there who have experience in this type of a situation how do you pull off doing both sides of the coin?

The Skinny on Mortgage Closing Costs and Fees

2007-06-25T08:46:00.000-07:00

If you've ever gone through the mortgage process, you know about closing costs. Most likely you were given a list of costs associated with the mortgage and told to either bring the money to closing or roll the costs into your mortgage. But, if this is your first mortgage, you're still getting used to the concept of paying more money, beyond your down payment. Usually, closing costs are paid by the person purchasing the home, but with some mortgages (VA for example) the seller can pay closing costs. A little-known fact is that a big part of costs and fees actually go to third parties who process the mortgage, as well as local governments as taxes. The money doesn't go to the mortgage company.

Most people take closing costs and fees for granted and just pay what they are told. They don't question the mortgage or title company about the costs associated with a mortgage closing. That's too bad, because they should.

As an informed mortgage customer, you should make your mortgage banker walk you through each cost, and explain in detail what you are paying. The bottom line is that you don't want to be surprised at the last moment. Imagine getting a call from your mortgage banker the day of your closing with a message that your closing costs are $1,200 more than you thought. And the only explanation is that the title company made a mistake. Chances are you may have to reschedule your closing to get the money together for the difference, or have your mortgage adjusted to have the amount rolled in.

To avoid a situation like this, it's a good idea to know exactly what the costs and fees are, how they are calculated, and why you (or the seller) have to pay them. Here's a breakdown of the most common closing costs and fees with a rough estimate of average cost:

Appraisal (up to $450) - This is paid to the appraisal company to confirm the fair market value of the home.

Credit Report (up to $30) - This goes to up to three credit reporting agencies to get your credit history and score.

Closing Fee (up to $400) - This is paid to the title company or attorney for conducting the closing. The title company oversees the closing as an independent party in your home purchase. Some states require a real estate attorney be present at every closing.

Title Company Title Search or Exam Fee (varies greatly) - This fee is paid to the title company for doing a thorough search of the property's records. The title company researches the deed to your new home, ensuring that no one else has a claim to the property.

Survey Fee (up to $400) - This fee goes to a survey company to verify all property lines and things like shared fences on the property.

Flood Determination or Life of Loan Coverage (up to $20) - This is paid to a third party to determine if the property is located in a flood zone. If the property is found to be located within a flood zone, you will need to buy flood insurance. The insurance, of course, is paid separately.

Courier Fee (up to $30) - This covers the cost of transporting documents to complete the loan transaction as quickly as possible.

Lender's Policy Title Insurance (up to $875) - This is insurance to assure the lender that you own the home and the lender's mortgage is a valid lien. Similar to the title search, but sometimes a separate line item.

Owner's Policy Title Insurance (up to $875) - This is an insurance policy protecting you in the event someone challenges your ownership of the home.

Homeowners' Insurance ($300 and up) - This covers possible damages to your home. Your first year's insurance is often paid at closing.

Buyer's Attorney Fee (not required in all states - $400 and up)

Lender's Attorney Fee (not required in all states - $150 and up)

Escrow Deposit for Property Taxes & Mortgage Insurance (varies widely) - Often you are asked to put down two months of property tax and mortgage insurance payments at closing.

Transfer Taxes (varies widely by state & municipality) - This is the tax paid when the title passes from seller to buyer.

Recording Fees (varies widely depending on municipality) - A fee charged by your local recording office, usually city or county, for the recording of public land records.

Processing Fee (up to $1,000) - This goes to your lender. It reimburses the cost to process the information on your loan application.

Underwriting Fee (up to $795) - This also goes to your lender, covering the cost of researching whether or not to approve you for the loan.

Loan Discount Points (often zero to two percent of loan amount) - "Points" are prepaid interest. One point is one percent of your loan amount. This is a lump sum payment that lowers your monthly payment for the life of your loan.

Pre-Paid Interest (varies depending on loan amount, interest rate and time of month you close on your loan) - This is money you pay at closing in order to get the interest paid up through the first of the month.

Last, but not least, you probably will get your own home inspection that usually costs around $225 - $450 to verify the condition of a property and to check for home repairs that may be needed before closing.

Closing costs and fees are part of a mortgage, and knowing what they are and how much they should be is a good idea. This will put you in a position to challenge a cost or fee that seems exorbitant. Even if everything is correct, you have the right to ask, and your mortgage company has the duty to explain -- in detail -- each and every closing cost and fee.

News provided by Quicken Loans

Windermere Burbank Open Homes for the weekend of June 23, 2007

2007-06-23T08:06:00.001-07:00

Saturday June 23rd

Burbank - 330 N. California St. 3 bd 2 bath Rancho home, Stables & Pool View home 1-4pm

Burbank - 817 N. Lima St. 3 bd 1 bath Magnolia Park Tudor View home 2-5pm

Toluca Woods - 5145 Willowcrest 3 bd 1 bath Spanish View home 1-4pm

Sunday June 24th

Burbank - 330 N. California St. 3 bd 2 bath Rancho home, Stables & Pool View home 1-4pm

Burbank - 817 N. Lima St. 3 bd 1 bath Magnolia Park Tudor View home 2-5pm

Burbank - 631 Kenwood St. 5 bd 3 bath Great Magnolia Park Home View home 1-4pm

Burbank - 835 Evergreen St. 5 bd 3 bath New Home in Magnolia Park View Home 1-4pm

Burbank - 212 Beachwood Dr. 5 bd 3 bath Rancho Home View Home 1-4pm

Burbank - 1100 Orchard Dr. 3 bd 2 bath View home 1-4pm

Montrose - 4424 Young Dr. 4 bd 3 bath View home 1-4pm

Toluca Lake - 4618 Denny Ave. 3 bd 2 bath View home 1-4pm

Come by and see any one of these great homes this weekend.

We look forward to seeing you.

Burbanks Annual 4th of July Fireworks CANCELLED

2007-06-22T12:14:00.001-07:00

Due to an abnormally dry winter out here in Burbank, California the city has decided to cancel its annual 4th of July Fireworks held at the Starlight Bowl.

This is usually a great show which can be seen from across the entire San Fernando Valley which many residents look forward to each year.

There will still be entertainment proiveded at the Starlight Bowl for the 4th for those who still want to get out and enjoy the great weather.

For more information on the canceling of this event please click here

3 problems with refis - and what you can do

2007-06-19T08:15:00.000-07:00

You may want to lock in a low interest rate with a new mortgage, but getting one will take the right moves.
By Gerri Willis, Money Magazine contributing columnist

(Money Magazine) -- When my husband and I took out a mortgage a few years ago, our mortgage broker assured us that no matter which product we chose, we didn't have to worry.

If we decided we didn't like the loan in a few years, we could simply swap it for a new one. Nowadays a lot of borrowers with adjustable-rate and interest-only loans are facing rate resets and would love to swap out of trouble.

But despite low interest rates and plenty of competition among lenders, would-be refinancers are finding it anything but easy to get new loans.

Here's why.

Problem: Hidden charges
No doubt closing costs won't be a surprise if you already have a mortgage; fees for application, credit check, title policy, flood certification (if necessary) and the bank attorney can easily exceed $2,000.

Overall, mortgage origination fees average 1.7% of the loan balance, with third-party fees adding another 1.1%, according to the Department of Housing and Urban Development.

But watch out for this zinger: the prepayment penalty. Many people who took out loans in the past few years are on the hook for anywhere from 1% to 3% of the loan value when they refinance, says Bob Moulton, president of Americana Mortgage Group in Manhasset, N.Y.

The penalty may phase out gradually, from 3% in the first year to 2% in the second and 1% in the third.

What to do:

Total up all the fees for a new loan, and you can see how the bill might wipe out the savings you get from a lower rate. Use the refinancing calculator at bankrate.com to determine if you'll come out ahead.

If you won't, you may have to wait a year or two for your prepayment penalty to expire. ("Feds look to rein in 'liar loans'")

Another check is to look at the APR, or annual percentage rate, when you shop. This is the effective interest rate you'll pay on your loan, rolling in one-time fees, and it's the critical number for comparing mortgage offers.

Problem: Shrinking equity

With every refinancing comes a new appraisal. If you live in a market where home prices are off sharply, you may find that your house appraises for less than you expected. Worse, you could find yourself owing more than your house is worth. (Latest home prices)

What to do:

John Bredemeyer, an appraiser and spokesman for the Appraisal Institute, suggests inspecting the bank's appraisal carefully. Does it correctly describe your property?

Remember, some appraisers conduct inspections from the street, making it hard for them to see upgrades like a new kitchen or finished basement that have raised the value of your home.

Problem: Steeper rates

Lenders, now trying to steer clear of losses after a wave of subprime loan defaults, have tightened credit standards for all borrowers.

Plus, notes mortgage broker Melissa Cohn of Manhattan Mortgage Co., banks have tacked on another eighth to a quarter of a percent to already rising mortgage rates to cover their risks.

What to do:

Find out what rate you qualify for before you apply for a loan. First buy your credit score from all three major bureaus for $15.95 at myfico.com. Then use the tool on the home page labeled "The higher your FICO score, the lower your payments" to see what rate someone with your credit score would likely pay and what your monthly payment would be.

If the number is high, make sure your credit report doesn't contain errors that are dragging down your score. Chipping away at your credit-card debts will also help you refinance profitably.

Today many lenders are penalizing you if your card balances eat up more than 35% of your available credit, compared with 50% in looser times.

Old realtors vs. young Web threat

2007-06-18T08:34:00.000-07:00

The Internet can make home sellers more self-sufficient, but is it really time for your real estate agent to look for a new line of work?

NEW YORK (CNNMoney.com) -- If there's a lesson to be learned from the Internet, it's that old business models can't rely on past results - just ask your neighborhood travel agent.

Like stock brokerages, travel agencies have watched their customers migrate to do-it-yourself sites like Orbitz and eTrade because of easy service and low charges.

But what about real estate? Agents collect sizeable commissions for what looks like little effort. And now, for-sale-by-owner Web sites promise to eliminate the middleman and put more money in your pocket. So are realtors worried they're going to be replaced by masses of home sellers infected with the D.I.Y. spirit?

"Selling without using a real estate agent is like representing yourself in court," said Walter Molony, a spokesman for the National Association of Realtors.

When NAR reported on selling trends last year, it said 12 percent of homes sold were through FSBO methods and 8 percent though a flat fee listing on a multiple listing service.

That's down from 16 percent in 1999, according to Molony. He attributed part of the decline to competition from other new business models, such as discount and fee-for-service brokers. He also cited the myriad disclosure and legal issues that have made consumers wary about taking on such an important financial transaction by themselves

But a recent study showed that home sellers in Madison, Wis., along with a little help from an FSBO site, sold their homes for higher prices than their neighbors who used agents.

The report by three economists from Northwestern University and the University of Wisconsin found that homes sold on FSBOMadison.com received an average price of $175,068 during the seven years studied, while homes sold on local multiple listing services (MLS) brought an average price of $173,205. Those averages are essentially equal after taking into account sampling errors.

"The survey validates what we've been saying all along," said Colby Sambrotto, chief executive of ForSaleByOwner.com, a D.I.Y. Web site with a national reach.

"Our business is growing very rapidly with listings increasing 50 percent to 70 percent a year," he said. "We're having 60,000 homes listed."

A NAR report from 2005, however, found that, nationally, FSBO sellers got a median price of $198,200, but those sold through an agent went for an average of $230,000, for 16 percent more.

"That 16 percent always smacked us as not true." said Sambrotto. According to him, NAR's data included "non-arm's-length" sales, such as those made to relatives. And, he said, the mix of properties may have skewed toward lower-priced homes.

Glenn Kelman, CEO of Redfin, a web-based, discount broker that charges a flat fee of $3,000 to list a house, said, "Consumers are a lot smarter than the real estate industry gives them credit for."

According to its own internal studies, Redfin said its buyers paid about 1 percent less than clients working through traditional real estate agents. On top of that, the company rebates two thirds of its commission back to buyers.

The Madison study did find that houses listed with real estate agents sold faster than the FSBO ones, but that stat cuts both ways. It's usually to a seller's financial advantage to make a quick sale.

But, as Kelman said, "Usually, real estate agents are motivated to close deals quickly. Our customers spend a longer time on the market because they are not pressured by agents to deal." That can help sellers hold out for higher prices.

The Madison survey attempted to control for such differences, but it did say that sellers who wanted speed and experience were more likely to go with a broker.

As Web sites take over more and more of the role of the traditional real estate broker, even consumers who need the kind of help provided by full-service brokers are asking why it costs so much.

Said Payam Zamani, founder of real estate Web site, Reply.com, a "broker's role is changing. They're moving into more service, and some clients may be picking and choosing the services they require. The question becomes, 'How much should they charge for that?'"

As to whether more NAR members will change with the times, Molony said, "It's a very entrepreneurial business. People are constantly experimenting with new business models."

Even within NAR, which represents discounters as well as traditional brokerages, Molony has heard of a rise in the minimal-service model.

Still, he said he'd be surprised to see a significant shift in the way the industry operates.

"This MLS model has been working well for a long time," he said.

By Les Christie, CNNMoney.com staff writer

How Much Home Can You Really Afford?

2007-06-16T09:46:00.000-07:00

The spring and summer home buying season is in full swing. If you are one of the millions of Americans who are buying or selling a home this year, you probably have met with a real estate agent or mortgage professional to decide what home price range you qualify for or are interested in.

Most people take for granted how much home they can afford. If the real estate agent or mortgage professional tells you that you can get up to a $300,000 home, do you argue? Probably not. Most people don't question it. But you should understand it and make sure you don't get in over your head in mortgage payments.

Debt-to-Income Ratio

The question is: just how do mortgage professionals decide how much home a person qualifies for? There are several factors: credit score, total assets and what's known as your "debt-to-income" ratio (DTI). Your DTI is extremely important, yet most people have never heard of it. In simple terms, DTI is your total "minimum" monthly debt payments divided by your gross monthly income. Here's a good rule of thumb: the lower your DTI, the better.

What is "minimum monthly debt?" It's the amount you are required to pay on a monthly basis, like your car payment, student loans and credit card payments. If you pay more than the minimum amount on your credit cards, this does not count against your DTI, since only the minimum amount you're required to pay is included in the total.

Here's a quick example:

Your gross monthly income is $1,000. You also have a car payment of $250, and a credit card that requires a minimum payment of $50. Your minimum monthly debt is $300. You divide 300 by 1000 and your DTI is 0.3. Since DTI is normally referred to in percentages, that 0.3 becomes 30 percent.

Any DTI less than 50 percent is considered workable by most mortgage professionals. If the DTI is higher than 50 percent, it can be difficult to qualify for a mortgage. The lower your DTI, the more you can borrow and the more options you'll have. A DTI of 20 percent or below is considered fantastic.

Keep in mind that minimum monthly debt simply means the minimum you have to pay each month. Even if you owe $5,000 on a high interest credit card, if your minimum monthly payment on that card is $100, that is what goes into figuring your DTI. But be careful. Only paying minimums can actually make some debts grow larger.

Other Home Owner Expenses
Another factor to understand with DTI is that only debt reported on your credit report is included. Other monthly expenses are not. So, for example, some utilities may not be included. Certainly your telephone isn't. Your property taxes aren't. These are considered "housing expenses." Monthly food expenses, then, by the same logic, aren't included either.

The point is that there are many expenses above what is used to figure your DTI, so plan well when purchasing a home. You don't want your expenses to overwhelm you once you settle in your new home. You might end up not being able to afford your mortgage after all, which is a losing situation for everyone -- you, the mortgage company and the economy.

Go over all your expenses and debts with your mortgage professional when buying a home. Make sure you understand how your home affordability is calculated. By planning properly, you'll be in the best financial shape to make sure your dream home doesn't turn into a nightmare.

News provided by Quicken Loans

8 signs you're ready to buy your first home

2007-06-15T08:12:00.000-07:00

With home prices cooling off and apartment rents heating up, is now the time to buy your own place? Here are the ways to know when it makes sense financially to purchase your first home.
p>The squeeze is on for renters. Apartment rents are expected to rise 5.3% this year, according to the National Association of Realtors. That's about double last year's increase, and it's the highest jump since 2000. Until now, rents have seen slow growth over the past few years as the booming real estate market has lured away renters into homeownership.

But that's starting to change. Interest rates are rising and home price appreciation is slowing, so fewer buyers are looking for new homes. That gives landlords the upper hand to raise rents. Meanwhile, the real estate market is starting to turn from the seller's favor toward the buyer's. So if you're a renter who has been dreaming of homeownership, is now a good time to take the leap?

Sure, a cooling real estate market is good news for buyers because it's easier for them to negotiate a deal. But it shouldn't be the main reason that pushes you into your first home. In fact, buying your first home is a personal decision that you should make independent of what the market may or may not be doing.

"Time means nothing," says Michael Eisenberg, a CPA and financial planning specialist in West Los Angeles. You can't predict what will happen to home prices in your neighborhood in the next few months, let alone the next few years. But if you're looking to make the long-term commitment of homeownership, it helps to approach the decision like you would any business decision. You don't want to buy on emotion, or because everyone else is doing it. "This is the biggest financial move a young person may ever make," Eisenberg says. "You should make the investment because it makes sense for your finances. You buy when you're ready."

So how, exactly, do you know when your finances are ready? We provide a checklist of eight things first-time home buyers should have squared away before they consider a purchase -- no matter where analysts say home prices are heading.

You are ready to buy when …

No. 1: You have a budget -- and you know how to use it

Owning your own place comes with a slew of new expenses, so good money management skills are a must-have. If you don't have a household budget right now, start one. (See "Build your budget" and "A simpler way to save: The 60% solution" to learn how.) You need to know where you are financially -- where your money is coming from and where it goes every month -- to know exactly how much you can afford to spend on a new home.

Once you have your current finances sorted out, draw up a mock budget for homeownership. Find out how much homes cost in your area and how much your mortgage payment will run. Then, factor in higher utility bills, homeowner's insurance, property taxes, homeowners association fees, and maintenance and upkeep costs, as well as higher commuting costs if you're considering a neighborhood further from work. If you simply cannot afford the increased expenses that come with a house, it's never a good time to buy -- no matter what's happening in the real estate market.

No. 2: You have a sizeable down payment
Traditionally, to get your foot in the door, you'll need a down payment worth 20% of the home price. That means for a $250,000 home, you'll need $50,000 upfront. Sure, there are ways to get around that steep requirement with zero- or low-down loans, but those options will cost you. You may have to pay extra for private mortgage insurance or take out a piggyback loan with a much higher interest rate. With the slowing housing market, having that 20% down payment becomes even more important because you'll start off with some equity in case you have to move earlier than expected. "In the early years, you aren't building any equity with the mortgage payment," says Eisenberg. "If the market changes or your personal circumstances change and you're forced to sell, you could lose money" if you made little or no down payment. The equity in your home can also give you an extra source of cash in an emergency. (See "Why you need a home down payment" to learn more.)

And the money down is only the beginning. Don't forget to factor in closing costs (3% to 6% of the purchase price) property taxes, initial repairs, moving expenses and decorating costs.

No. 3: You have a reliable source of income
Buying a home is a long-term financial commitment, so you'll need consistent cash flow to cover those monthly payments -- not to mention the little extra expenses that come with homeownership. If you're in school, plan to go back to school, have a less-than-reliable job or plan to start a family, you need to take a good look at your future cash-flow abilities. Will you be able to make your mortgage payment six months from now? How about six years from now? "Some couples can afford the house when they're both working, but if a kid comes along and one wants to stop working, then they have a problem," says Eisenberg.

No. 4: You have an emergency savings fund
If you have enough cash on hand to cover three to six months of your living expenses, you're one step closer to being prepared for homeownership. Just in case something happens to disrupt your steady income -- say a serious illness, unexpected layoff or even a natural disaster that prevents you from working -- you want to make sure you can still afford to make your mortgage payments until you can get out of your rough patch, says Bob Baldwin, a CPA in Charleston, S.C. Learn more about how and where to build your emergency stash.

No. 5: You have your debts under control

Call 'em crazy, but lenders like to make sure you'll have enough money each month to pay your obligations. So before they'll give you a mortgage, they take a look at your so-called debt-to-income ratio. Generally speaking, they want to make sure your monthly housing costs -- including principal, interest, taxes and insurance -- will consume no more than 33% of your monthly gross income; and that your total debt payments, including your mortgage, credit cards, student loans and auto loans, will remain below 38% of your total pay. So if you have large outstanding debts, it's a good idea to try to pay them down before applying for a mortgage to make sure you can qualify for as much money as you'll need. This also means you should avoid taking on any substantial new debt six months to one year prior to your purchase, or you may throw your ratio off. So, it may be best to drive that clunker for a little while longer, or put off charging that European vacation. Find out here how much you can qualify to borrow.

No. 6: Your credit report is in good shape
Nowadays you don't have to have perfect credit to become a homeowner, but a decent history can help you get a lower interest rate on your mortgage and a lower monthly payment. The government allows you to check your credit history free once a year from each of the three main credit bureaus at AnnualCreditReport.com. So take a peek to find out what lenders see about you. If you see any errors, correct them now. If you see room for improvement, find out how you can boost your score.

"Don't be sloppy the year or two before you buy the house," says Baldwin. You don't want any missed payments or other black marks that could lower your estimation in the eyes of lenders.

Having bad credit, however, may not be your biggest concern. If you're just starting out, you need to make sure you have a credit history. If you hold a credit card or took out student loans, you're probably covered. If not, find out how you can build a stellar credit history from scratch, preferably one year or more before you plan to buy.

No. 7: You can make a long-term commitment

Are you ready to stay put for at least three to five years? Typically, that's how long you'll have to keep the house in order to recoup your buying and selling costs. If you sell before then, you may lose money on the deal. And if you do turn a profit, you'll have to pay capital gains taxes if you lived in the house less than two years. The length of your stay becomes even more important now that home appreciation is beginning to slow from its previous pace. If you don't think you'd stay put for that long, you may be better off renting.

Don't fret: Renting can actually make better financial sense for some people at different times in their lives, says Eisenberg. If you think you may get a job transfer, go back to school or otherwise need to move within the next five years, renting gives you the flexibility you need and could possibly save you money.

Want to find out if renting or buying makes the most sense for you? Our calculator will crunch the numbers to help you decide. In the slot for "appreciation rate," assume your home will appreciate at the rate of inflation or a little more, just to be safe. Right now, that's around 3% to 4% annually.

No. 8: You are prepared to become your own landlord
Even if you can afford homeownership, don't buy simply because you can. You need to make sure you're ready to live the lifestyle. Owning a place comes with a fair share of new responsibilities, headaches and costs -- not the least of which is becoming your own landlord. When you rent an apartment, you simply call the landlord if something breaks. With your own home, if it's broke, you fix it -- or you'll have to pay someone else to fix it. You're also responsible for upkeep, including yard work and shoveling snow (unless, of course, you buy a condo without a yard). Will you have the time, energy or desire to maintain the property? How about the money for all those little extras, such as buying your own lawn mower and hiring the occasional plumber? Make sure you know what you're getting into.

By Erin Burt, Kiplinger's

Sales of homes down 34% in region

2007-06-14T08:39:00.000-07:00

Build them and the buyers will come. That's how developer Shone Wang has been selling homes in Southern California for the last 15 years.

But this spring, Wang hit a snag: no takers for a cluster of luxury homes he built in Rancho Cucamonga.

"The first day my homes went on sale I decided I had to do something else," Wang said.

His solution is an auction, set for Saturday, at which bidders have to agree to pay at least $700,000 for homes originally priced at $1.2 million.

It's no secret that fewer buyers are snapping up homes these days, and statistics released Wednesday bear that out. In May, home sales in six Southland counties plunged to a 12-year low, declining 34% from a year ago, real estate tracker DataQuick Information Systems reported.

Even as sales continued to drop, home prices held steady, however. For the third straight month, the Southland's median home price came in at $505,000. That's up 4.9% from May 2006, DataQuick said.

Still, the drop-off in sales, which has been particularly acute in lower-priced neighborhoods, has started to weigh down prices throughout the region, DataQuick said.

May's data show that sales of homes priced below $800,000 plummeted 38%, while sales of homes priced at or above that amount saw little to no change from May 2006.

What's more, if homes sold at $800,000 or more are excluded, prices overall would be down 2% from year-earlier levels, DataQuick said.

The absence of those low-end sales is keeping the median from being tugged down," said John Karevoll, DataQuick's chief analyst.

Karevoll, who has been crunching real estate data for nearly 20 years, believes Southern California home prices have yet to hit bottom. One year from now, he said, values will probably be about 4% lower on average.

"That's the most likely scenario," Karevoll said.

He added, however, that "all bets are off" if interest rates rise another percentage point or more. The nationwide average for a 30-year fixed-rate mortgage rose to 6.61% last week, its highest level in almost a year.

Economists point to rising rates and tougher lending standards as the biggest blows to demand, especially among first-time buyers.

Those buyers have helped power sales in the Inland Empire, with its ample supply of new, moderately priced housing. Now the area is watching values dip and sales crater.

In Riverside County, the median price declined 3.3% year over year to $406,000, as sales dropped 45.4%. In neighboring San Bernardino County, the median was $361,750, or only 0.5% higher than a year ago, as sales slid 46.5%.

The median is the price at which half the homes sell for more and half for less.

The area is also experiencing the highest number of loan defaults in Southern California, but foreclosed properties have not been a drag on home values in most communities, DataQuick said.

But that is expected to change as more lender-owned homes are put up for sale and at below-market rates, experts say.

Robert Harris bristles when he hears talk of a housing slump. The Simi Valley real estate broker likes to remind people that 2004, 2005 and 2006 were three of the best years for real estate sales.

"Yes, we're off of our highs — but they were the highest in history," Harris said.

He acknowledges that his business in east Ventura County is slower these days as potential buyers wait for signs that the market is stabilizing. Last month, the median price in Ventura County fell 1.6% to $590,000 as sales dropped 25% from a year earlier.

"The market will find its legs again, and people will build their confidence again," he said.

For his part, developer Wang would rather give wannabe homeowners a nudge than wait for them to respond at their own pace.

That's why he is resurrecting a sales method he hasn't used since the early 1990s: the auction. He hopes that by setting the minimum bid 40% below his original $1.2-million asking price, buyers will elbow one another for the chance to buy one of his houses.

Over the weekend, Wang was heartened to see about 80 people attend a one-time pre-auction session to learn how to bid on his homes.

"There are people sitting on the sidelines, but the market's not dead," he said.

In May, the strongest segment of the region's housing market remained Los Angeles County, where the median rose 6.8% to a record $550,000, even as sales fell 31% from a year earlier, DataQuick reported. The state's biggest county accounts for about a third of Southland residential sales.In

Orange County, the priciest local market, the median of $635,000 was about the same as the year earlier. Sales there declined 29%

.San Diego County, where home prices started depreciating nearly a year ago, saw its median price edge 1.6% lower to $492,000. Sales fell 24.4%.

By Annette Haddad, Times Staff Writer

The Importance of Chimney Inspections

2007-06-12T23:22:00.000-07:00

Chimneys and fireplaces while always a great selling point in any home can become one of the most troublesome and costly issues a home buyer or seller can face in the purchase and or sale of a home.

Whenever a client enters into an escrow I always encourage them to retain the services of a professional chimney inspector as well as their regular home inspector.

Many times a home inspector may not be able to see things which a professional chimney company can.

This one inspection has saved my clients many headaches and money in repairs that may have gone unnoticed until it was to late.

Also many times the current home owner has not had the chimney inspected since they purchased the home and probably has no knowledge of the possible issues involved with it. Many people take for granted that if it is there it works.

In the past year I have had 3 escrows in which the chimney alone needed in excess of $7000 worth of work. In 2 of those cases the current home owner was completely unaware of the condition of the chimney and had not even done an inspection at the time they purchased the home. One owner was devasted to find out that he had been using a chimney that very well could have caught the home on fire as the stack was completely cracked all the way through at the roofline and the mortar was all but completely gone. Even as I write this I am in an escrow where my buyers love the house and the home inspection went great. We got to the chimney and discovered that the entire chimney will need to be broken down all the way to the mantle. Total cost $13,000 in repairs. The sellers had no idea of the condition of the home and have lived in the home for 7 years.

For the minor added expense of the inspection it really is a must for any home buyer and even seller to do.

The true cost of owning a home

2007-06-12T08:01:00.000-07:00

Your mortgage payments are only a fraction of what you'll pay out after you become a homeowner. The total? For this writer, $43,555 in four years, not counting house payments.

If you're entertaining thoughts of buying your first home now that the housing market is cooling off and prices are coming down, take note: The cost of home ownership might be a lot more than you think.

I'm not talking about the down payment or monthly mortgage payments. Although buying a home is a big investment, owning one comes with a new set of expenses you may not have had while renting or living with Mom and Dad. These extras can put a strain on your daily finances if you aren't prepared.

know the temptation to buy a house can be strong, especially if you've been renting for a while, have gotten married or are ready to start a family. When my husband, Alex, and I moved to Kentucky four years ago from Washington, D.C., where we rented an apartment for six years, I couldn't wait to buy a house. Since then, we have sold our first home, bought our dream home (well, at least it will be after we do a lot of work on it) and learned plenty about how much it really costs to be homeowners.

So to help you estimate your own cost of ownership and come up with a realistic housing budget, I offer my experience as an example. Below, I itemize the expenses Alex and I have paid over the past four years, complete with dollar amounts. Your own costs will vary depending on the size, condition and location of the house, but this should help you anticipate what you're getting into. Homeownership comes with a bevy of benefits, but you'll want to make sure it's the right move for you at this point in your life before making that long-term commitment.

Our annual insurance premium nearly doubled when we moved into our dream home -- not bad considering we'd gone from a modern, 2,600-square-foot home to a 100-year-old house with 6,000 square feet. It pays to shop around for the lowest premium. If we had chosen the first insurer we called, we would have paid $1,000 more for annual coverage. Alex and I ended up going with the same company that insures our vehicles because it gave us a $250 annual multipolicy discount, and its rates were a lot lower than other companies. Total: $825 a year in our starter home; $1,583 a year in our dream home.

* Property taxes. This is another expense you can't escape. Property taxes are based on the value of your home. So the more expensive your house, the more you'll have to pay in taxes. You'll have to pay state property taxes and usually county or city property taxes, too. Total: $1,532 a year in our starter home; $4,307 a year in our dream home.

* Utilities. You're probably used to budgeting for utilities if you are renting. But the cost of heating a one-bedroom apartment can pale in comparison with the bills for an entire house. Total: $2,045 a year in our starter home; $4,800 a year in our dream home.

* Appliances. When you buy a house, most major appliances will come with it, except perhaps the washer and dryer. We spent about $800 buying these two appliances when we bought our first house. The sellers also took their refrigerator, so that was an additional $750 (for a pretty basic model). Total:$1,550.

* Furniture. If you move from a one-bedroom apartment to, say, a three-bedroom house, you probably won't have the furniture to fill it. When we bought our first house, we bought a king-size bed, a bedroom set, a dining-room set and a kitchen table and chairs. For our current house, we had more space to fill, so we bought another casual-dining set, a sofa and an area rug. Total: $4,550.

>* Repair and maintenance. If you've been renting, your landlord probably has picked up the tab for repairs and general maintenance of your abode. Once you have your own house, you'll foot the bill. And if you're not handy, it can get expensive if you have to call in a pro to paint the interior or exterior of your house, clean or repair gutters, or fix plumbing or wiring. I'm getting ready to shell out $615 to have our gutters cleaned and repaired. In our starter home, we spent at least $200 on paint for the rooms and kitchen cabinets that we painted ourselves. Then we paid $650 to a professional to paint a large room with a vaulted ceiling. We also paid $500 to have someone replace drywall with slight water damage and $150 to have the flashing replaced around the chimney (the source of the water damage). We paid about $100 to have our asphalt driveway sealed. My husband was handy enough to chop down a small tree that had split in half during a storm, but we paid about $150 to have another trimmed so it wouldn't meet the same fate. Plus, we spent at least $150 buying hand tools (such as hammers and screwdrivers), nails, screws and a drill. Total:$2,515.

* Yard care. If you are used to living in an apartment with no yard, this can be the biggest expense shocker. At the least, you'll have to buy a mower to keep the grass trimmed. But you probably will have to invest in many more lawn and garden tools. We got lucky because we "inherited" several lawn tools from my uncle when he moved from a house to an apartment and a push mower from a neighbor when he bought a new one. Despite the freebies, we've spent plenty buying a trimmer ($70), an extension chainsaw ($100) and an electric blower ($60), and then a gas-powered blower ($130) after my husband complained the electric blower was too cumbersome. We rented a pressure washer for $64 for the weekend to get layers of gunk off our patio, front steps, deck and fence. We also bought lawn furniture ($600) and have spent $900 on landscaping. Total:$1,924.

* Pest control. This is one expense you may not have to deal with, but we've had to at both our homes. Before you buy a house, be sure to get a termite inspection. Unfortunately, even if there is no infestation at the time of the inspection, that's no guarantee these creepy-crawlies won't show up and do a lot of damage if you don't wipe them out quickly. Our first home was termite-free when we bought it, but these pests showed up the next year. We spent about $1,200 having a bait system installed to eradicate them and paid $75 each quarter for monitoring of the system. A few months ago, we discovered termites in the rental cottage behind our new house and have decided to get not only that property treated but our main house, too. Total: $1,800 in our starter home, $2,370 in our dream home.

* Remodeling. The home-remodeling TV shows make it look so easy (and often fail to mention the cost.) So some of us buy homes with fixes we'd like to make -- an upgraded kitchen, perhaps -- without being honest with ourselves about how much it's going to cost. Our first home had lots of carpet, and I wanted hardwood floors. So we had them installed in two rooms for about $4,000. In our current house, we've spent $1,000 to have a wall added. But we have several major projects we plan to tackle over the years. Total: $5,000.

The grand total
Add this all up and -- brace yourself -- we've spent $43,555 over four years. That breaks down to an average of about $10,900 a year for Alex and me to be homeowners, and that doesn't include mortgage payments. The regular costs such as taxes, insurance and utilities are fairly easy to anticipate, depending on the home's size and location. It's your home's start-up costs and life's little surprises that you need to watch out for. Before you buy, you should draw up a mock budget for yourself to see if you really can afford the financial commitment.

Once you buy, a good way to make sure you have the cash when you need it is to set aside a fixed amount of money in your monthly budget for home expenses. Park the money in a high-yield online savings account specifically for that purpose. That way, you won't have to lean on your credit cards or raid your long-term savings when your home needs a repair or something else arises.

I'll admit, once I sat down and added up my own personal costs, I was blown away. But remember, your costs will vary. Our expenses were quite different between our starter home and our dream home, for example. But the bottom line is, despite the high cost of owning a home, I wouldn't give mine up to move back into an apartment. I just wish someone would have told me before I bought my home how expensive it was going to be.

By Cameron Huddleston, Kiplinger.com

Subprime crisis: Was Greenspan remiss?

2007-06-11T09:31:00.001-07:00

Former Fed governor says Greenspan blocked proposal to crack down on subprime lending practices.

Former Federal Reserve Governor Edward Gramlich claims that former Fed Chairman Alan Greenspan blocked a proposal to crack down on subprime lending practices back in 2000, according to The Wall Street Journal.

Gramlich, who was Fed governor from 1997-2005, says he proposed the idea to Greenspan personally, The Journal reported. He suggested that the Fed send examiners into offices of lenders that were units of Fed-regulated bank holding companies. He claims Greenspan - well-known for his deregulatory practices - rejected the idea.

"He was opposed to it, so I didn't really pursue it," says Gramlich, who is now a scholar at the Urban Institute.

Subprime lending practices - giving high-interest loans to individuals with poor credit history - became increasingly popular during the real estate boom of the last several years. But since 2006, subprime borrowers have been defaulting at alarming rates, putting downward pressure on the overall housing market.

The Democratic Congress is now pointing fingers at regulators - particularly the Fed - for failing to prevent the subprime fallout.

When asked about the proposal, Greenspan claimed he did not recall the specific conversation with Gramlich, but did confirm that he was opposed to the idea, for fear that "Fed-inspected" lenders might give borrowers a false sense of security.

Under current Chairman Ben Bernanke, the Fed has begun reviewing its practices in overseeing holding-company units. On Thursday the Fed will hold a public meeting on regulating subprime lending.

CNNMoney.com

How to Handle Low Ball Offers

2007-06-10T08:09:00.000-07:00

If your house has been on the market for quite a while (3 to 6 months), you may have already dropped your price and now you're waiting for the buyers to rush in and make wonderful offers on this now-priced right property. And then it happens.

The lone buyer does appear, like a bandit in the night and offers you even less than what you just agreed to. Quite a bit less -- about 10 percent less. So on your $350,000 house, that you just dropped to $324,000, you now have an offer for $299,000. With a seller subsidy request of $5,000. At this point, your net is $294,000.

So how do you handle such a low-ball offer. Well, first of all -- don't panic, get angry or lose sleep. Especially, don't reject the offer right off the bat and tell them to come back when they're serious. Remember, it's now a negotiation game and the buyer IS serious or he or she would not have made an offer.

Several things have happened before this offer came in. The buyer, with his agent, has researched the market, walked through as many as 30 or 50 properties, conducted a study on the value of the property and written an offer for your house. Remember, you just won the lottery. They could have written on any other house, but they selected yours. So let's get busy.

First of all, do an analysis of your own goals and needs. How much do you really need to come out of this house to meet your goals of moving to your next home? What could you really live with and what amount are you going to counter. Remember this last point -- what are you going to counter? This is assuming that you're not rolling over and that you're going to stay in the game.

Next, conduct a comparative market analysis of the house once again. What's happened in the market to get this buyer to offer such an offer (notice I didn't say 'low'). It might be that your house is now worth that amount. And if it is -- that's okay, because it probably means the house you wanted to buy up into is also worth less. At the worse, you're going to take away less money. The best thing to look at, however, is that now you're going to buy up with a smaller down payment because the buy-up property is also less.

Now, let's start the negotiation. Keep in mind, this is for the long haul. Keep it alive as long as the buyer will keep it alive. Give up a little bit at a time. If you reduced the house to $324,000, expecting an offer of $319,999 with closing costs of $10,000 -- then start there. You're already willing to accept a net of $309,999, so you're not really that far off. Understand you're not going to get top dollar with no seller subsidy. So come down to $320,000 and give them their closing costs. So now, your net has come up to $315,000.

Hey -- you're actually ahead of the game if they accept. Oops -- they don't. Now they've countered to $309,000 and still want the $5,000 in closing. (Now our net's at $304,000). Great. Just think. When you started, you were $324,000 apart (remember, you had NO offer at all). Now, you're only $5,999 away from the net you were willing to accept in the first place.

We're almost there. Now, before I go much further, here's a negotiation tip -- keep this civil. Use a lot of complements about the offer, the buyers and the agent. "What a great offer. Thanks so much for writing. We are very excited about selling this house to you."

You want the buyer agent and his/her clients to know you're wanting to work with them. You've been waiting six months for this day (negotiation day) and you want to keep everyone engaged in the process to get your goals met -- sold and on your way to your new home in the country.

Now offer your final counter (or maybe next to final). You definitely want to use the complements at this point: "We are so close." "I can't wait till we wrap this up, then we can all celebrate."

At this point, you know the buyers want to buy and your sellers are ready to start packing, so emphasize that you're very close. Use a dialogue like this: "We are so close. We have some goals to meet, just like you do. And I hope we can bring this together to get us both where we want to be."

This is when you make the final offer and stick with it. If you offer $314,000, they definitely get what they need and you get closer to your final net -- which at this point would be $309,000 -- just $999 off of your initial goal. Then you know if it goes forward or you're back on the market. However, don't be so stubborn that you lose the lone buyer because of $2,000 or so.

If the buyer is stretching and this won't work, this is when the honesty comes out. The agent may tell you, If we can't do $309,000, it's just not going to work. It goes too far beyond their qualification." Then you can decide whether to keep it on the market (hoping you don't have to drop the price again), or you cut the loss and move forward with settlement.

Be patient with the process. Don't get upset, remember, they're trying to meet goals just like you are. By working together, both can get what they want.

by M. Anthony - Realtytimes.com

Take a bite out of closing costs

2007-06-09T08:24:00.000-07:00

Hold the fees please. How to save if you're buying a new home or just refinancing.

With mortgage rates still as low as they are, financing a house is dirt cheap these days, right?

Not if you pay a fortune in closing costs.

As anyone who has shopped around for a mortgage knows, it's extremely difficult to compare one lender's offering to with that of another lender because the up-front fees vary so much and are not guaranteed. Lenders and their venders can, and sometimes do, add or inflate fees in the eleventh hour of a transaction.

The U.S. Department of Housing and Urban Development (HUD) has been working on regulations that promise to simplify the mortgage process and save consumers as much as $1,000 off a typical mortgage transaction. When such rules will be rolled out, if ever, is still anyone's guess.

With no regulation in sight, borrowers should consider these strategies for keeping their closing costs in check.

Get friendly with your current lender

If you're looking into refinancing, the first call you should make is to your existing lender, who already has critical information about you and your house on file, said Keith Gumbinger, vice president for HSH Associates.

Since you have an existing relationship, a "streamlined" process might be possible. That can save you a lot of extra paperwork and money on everything from application fees to appraisal fees.

Although fees for title search and title insurance are not determined by the lender, you may also get a break there. If you recently refinanced or took out a loan, you can save as much as 50 percent on title insurance by asking for a reissue rate, which your lender can request on your behalf.

If you're a homeowner shopping for a new house, you should also try giving your existing lender first dibs on the new business. Assuming you've been a good client and your lender originates the kind of mortgage you're interested in, it's possible to get a better-than-market deal, according to Gumbinger.

Get nitpicky about fees...
p>There are more than a dozen kinds of fees that could show up on your final closing statement, including credit report fees, appraisal fees, document preparation fees, title fees, recording fees and underwriting fees.

All told, fees on a $200,000 mortgage could add up to anywhere from $1,000 to $3,000 – that's not including any "discount" points you pay up front to get the best interest rate. (A "point" is a fee that equals 1 percent of the loan amount.)

Lenders are required to give you a good-faith estimate of your closing costs within three days after you apply for a loan. Some will give you such an estimate even before you apply if you ask for one. Even if it is no guarantee, this written estimate will give you an idea of what kind of fees you can expect to pay, as well as an opportunity to negotiate for a better deal.

"If you're a good credit borrower you can challenge fees if they seem excessive," said Gumbinger, noting that lenders don't control many fees that show up on your statement.

Keep in mind that the good faith estimate doesn't include such out-of-pocket costs as state mortgage taxes, homeowners insurance and property taxes, which you may be expected to pay at the time of closing. In fact, your total tab at closing could be several times more than originally estimated, said Gumbinger.

>... but keep the big picture in view

Closing costs are certainly a consideration for both new loans and refinancing. But it's important to not lose sight of what should be your first priority – getting the lowest rate possible.

Indeed, the difference between paying, say, 6 percent and 5.5 percent on a new loan adds up to nearly $23,000 in total interest on a $200,000 30-year loan. If you have to pay a few hundred dollars in closing costs to get that rate, you can rest assured that it is a worthy investment.

It may even be worth it to pay a point or so up front in order to lock in the lowest rates. Let's say that you'll knock your rate down to 5 percent on that $200,000 loan by paying an extra point ($2,000) up front. Considering that you'll cut $62 off your monthly payment and about $22,000 from total interest by going from 6 percent to 5.5 percent, it makes sense as long as you plan to stay in the house long enough to recoup those up front costs.

In fact, if you're short on cash you might even consider rolling the closing costs into your loan, if that is an option. You'll want to consider how much more you'll pay each month as well as in interest over the life of a loan.

If you roll $2,000 in finance costs into a loan with a 5.5 percent rate, for example, you'll pay an extra $11 a month and about $2,000 extra in total interest. In this case you're still better off than if you had not refinanced at all.

By Sarah Max, CNN/Money senior writer

Buying a High Credit Score

2007-06-08T07:50:00.000-07:00

In the market for a mortgage loan with a low interest rate? Instead of qualifying for a discount rate by earning a good credit score, you can simply buy your way to a great credit score -- the kind of score that convinces lenders to loan you money at lower interest rates. You simply piggyback on someone else's excellent credit history. Here's how it's done:

1. A credit enhancement company pays people who have excellent credit histories to allow others to be listed, temporarily and in name only, on their credit cards.

2. The credit enhancement company then allows people with lousy credit scores to buy positions on the credit cards of people with good credit histories.

3. The low credit scores get a boost, often allowing high-risk borrowers to qualify for loans with much lower interest rates.

What's so bad about that? After all, people who sell their good credit profit from the good credit histories they have earned, borrowers with bruised credit have lower monthly payments (and they are the people who really need it), the credit enhancement company provides a valuable service and earns a good profit, and the lender gets another happy customer. Everybody wins, right?

Wrong!

Why? Because these piggybacking schemes are another type of mortgage fraud. Essentially, the borrower is lying to the lender -- claiming to have a better credit history than they really have. This practice fools the lender into making a decision to approve a loan based on false information. I don't know about you, but if someone who was asking to borrow money from me misled me about his or her ability to pay it back, I would get more than a little upset. Just because a bank or other institution rather than an individual is lending the money doesn't make it any less wrong to lie.

As citizens, one of our responsibilities is to protect the American Dream, and one of those dreams is the American Dream of Homeownership. If we begin to turn the other way when people are committing obvious fraud, we place the entire system at risk. Homes will begin to cost more money, loans will be less accessible, and someday our children and grandchildren will no longer be able to afford their own homes.

Credit enhancement companies who engage in this sort of activity claim that they are not breaking any laws. But no matter what they say, using trickery and schemes to beat the system will eventually catch up with all of us, and we will get stuck with the bill -- somebody always does. Borrowers need to earn credit scores that honestly reflect their ability to pay back a loan.

Fortunately, Fair Isaac Corp. (the company that computes the most commonly used credit scores) has recently decided to fight back, announcing that its next version of the FICO score "will no longer consider certain types of credit card accounts, closing a loophole that allowed strangers to coattail on a cardholder's good credit. See "Fair Isaac combats credit manipulation," for more details.

Piggybacking on someone else's good credit may not qualify as a crime, but anyone looking at it can see that it is just plain wrong.

by Ralph Roberts - Realtytimes.com

Real Estate Sky Won't Fall: Here's Why

2007-06-07T07:22:00.000-07:00

Real estate hasn't made much of a case for itself lately and it's not getting much help from any of the sub industries, such as builders and mortgage makers. Just in the past few weeks, so called experts from the mortgage industry, the building industry, and the resale real estate industry have all been quoted as saying that the sky is falling.

Nice job guys!

And while real estate's reputation as the number one investment is on the ropes, the general media and other investment categories have stepped up their attacks on real estate value.

What do you need to know?

The Sky isn't falling.
The real estate market always fluctuates.

Real estate sales prices are largely determined by the principal of substitution and reflect the uniqueness of the property, at a specific point in time, competing against only those other similar properties that happen to be available for sale, at that point in time.

If there are many similar homes available at that time, there will be downward pressure on sales prices. As an expanding population absorbs the excess, competition for a dwindling resource will cause selling prices to escalate.

Real estate is unique.

There's a reason that homes and real estate aren't traded like commodities on the Chicago Mercantile. They are too dissimilar. Even each tract home has a somewhat different location, orientation, lot dimension, proximity, and view.

There is no bubble.

The value of real estate isn't driven by speculation; it's driven by its utility. If the economy moves away, such as in the rust-belt, that utility may decline. If high paying jobs are headed into a region, the value of the scarcest of all commodities, real estate will rise.

Increasing development costs absolutely guarantee that new construction will cost more than existing properties are selling for.

This factor alone has caused many developers to mothball projects in the pipeline until shortages again push prices up

Value is a complicated cocktail.

Assessed value, appraised value, market value, replacement value, and selling price all mean something different. When the media says that real estate values are falling, they really mean that the prices people paid for a small number of homes, last month, was less than what a different group of people paid for a different assortment the month before.

There is always a baseline of demand.

An increasing population must be housed. There is a natural ebb and flow, not a boom bust. At various times, demand outstrips supply; supply is increased until the surge recedes to baseline or below.

There is always a baseline of mortgage defaults.

There will always be unforeseen circumstances that will bring some homeowners into default. Even in good economic times. And even with good mortgage loans. In an appreciating market, they are able to sell in a short period of time. So, in most markets, foreclosure activity has been below the historic baseline.

Now, it could increase, spiking a little to reflect those who can no longer survive on increasing equity and then may level out at baseline again. When the next rapid appreciation cycle begins, and it almost assuredly will, rates may fall back below the newly adjusted baseline.

There is no risk.

Save the term risk for high stakes poker in Vegas.

Buying real estate isn't inherently risky. But it isn't a get-rich-quick scheme, either. It's a formula for building long term wealth.

Real estate is a great way to build wealth.
You have to live somewhere. If you rent, you are making some or all of someone else's mortgage payment. But even if you have to work two jobs and barely scrape by to make your own mortgage payment, you are building equity that over time will be quite substantial.

So, perhaps, don't believe every "the sky if falling" report or article. Educate yourself on the market and happy wealth homeowning!

Realty Times

Study says home prices not falling

2007-06-06T07:48:00.000-07:00

In contrast to other reports, a Federal index shows house prices are higher than a year ago.
NEW YORK (CNNMoney.com) -- Most studies say U.S. home prices are on the decline, but a new report from the federal government says just the opposite.

The Office of Federal Housing Enterprise Oversight (OFHEO), which has tracked prices for more than 30 years, said Thursday its housing price index grew 4.3 percent in the first quarter compared with a year ago. It was the slowest rate of growth in 10 years, however.

Earlier this month, the National Association of Realtors reported the latest national average home price dropped 1.8 percent in the first quarter compared with a year ago. The Case-Shiller index, based, in part on OFHEO data, also showed a drop in prices.

Part of the disparity between the OFHEO index and NAR prices may stem form the way each organization calculates change.

OFHEO's housing price index looks at differences in values when single-family homes are resold or refinanced. When borrowers refinance their mortgages, new home-value appraisals are made, and those numbers are factored into the OFHEO index.

(The agency has an additional index for purchase-only deals and reported that the values of homes sold during the 12-month period ended March 31 had risen slightly less than the overall index's 4.3 percent climb.)

NAR simply calculates the median sale price for each housing market. The median is a midpoint: it eliminates the impact an unusually large number of extremely expensive or very cheap properties would have on mean averages.

The values that NAR comes up with, however, do not take into account differences in the mix of homes sold. If more starter homes in lower-income neighborhoods were sold, and fewer larger homes in expensive neighborhoods changed hands, it could skew median prices lower.

And if a fast-growing area was adding virtually nothing but much cheaper houses, that would also make it seem like prices were increasing at a slower rate than they might actually be growing.

OFHEO hopes to get a clearer picture of house values by comparing selling prices of specific homes over time. Although it's considered an accurate barometer of prime movements and amplitudes, however, the OFHEO index has its own quirks.

The agency draws its data from Fannie Mae and Freddie Mac, the government-sponsored enterprises that purchase mortgage loans. Those agencies have limits to the size of loans they buy, which leaves out the impact of transactions involving more expensive homes. The OFHEO index also may not account for additions to the living spaces of homes or changes in their general conditions.

One of its strengths, however, is that it does incorporate the statistics on some 31 million same-sale transactions over the years.

The OFHEO's index for the first quarter revealed that the metro area with the highest rate of home-price appreciation over the 12 months ended March 31, 2006 was Wenatchee, Washington, where houses jumped in value by a resounding 25.6 percent.

Other impressive increases were in Provo-Orem, Utah (19.7 percent) and Salt Lake City (19.1 percent).

Poorly performing metro areas included Punta Gorda, Florida, where prices fell 4.6 percent, Sacramento and Modesto, California, both down 4.4 percent.

Of the total of 285 metro areas listed, 237 had positive four-quarter appreciation, 46 had price declines, and prices were unchanged in two cities.

Home price forecasts for 100 biggest markets

Latest home prices from realtors

By Les Christie, CNNMoney.com staff writer

Who's most at risk for foreclosure?

2007-06-05T08:05:00.001-07:00

There's a flood of foreclosures coming -- about 1.1 million of them, a new study estimates. Here are the borrowers who are most likely to lose their homes.

You have a 1-in-3 chance of losing your house to foreclosure if you got an adjustable-rate mortgage, or ARM, in 2004 through 2006 that had an initial teaser rate of less than 4%.

If you got a subprime ARM in that period, you started out with a higher rate, and that puts you at less risk. You have a 1-in-8 chance of losing your home.

That's the takeaway message from a densely detailed report by Christopher Cagan, director of research and analytics for First American CoreLogic. Cagan's study focuses on 8.4 million ARMs that were originated in 2004, 2005 and 2006. About 1.1 million of those borrowers will lose their homes in the next six to seven years because of payment shock brought on by rate resets or loan recasting, Cagan estimates.

Cagan assumes that property values will remain relatively flat from their December 2006 levels. If house prices fall -- and in many markets, they already have fallen since the start of the year -- foreclosures will be higher than his estimates. If house prices rise, there will be fewer foreclosures than forecast. Each 1% rise or drop in house prices will translate into a decrease or increase of roughly 70,000 in foreclosures.

"These losses are (from) reset only," Cagan says. "I do not study job loss, death, divorce, illness or fraud." For example, the foreclosure rate is high right now in Detroit, but that has little to do with low-rate teaser loans or subprime ARMs. Job losses are driving foreclosures in the Motor City.

Pain will linger
It's important to remember that Cagan's estimate of 1.1 million foreclosures is forecast to occur over the next six or seven years, not all at once. He says much of the pain will be felt next year and the year after.

The "pinch year" is 2008, he says. "That is the pileup of 2/28s originated in 2006 at the peak of the market. And also, you have the 3/27s starting in 2005. Those two years are the peak market years, also very generous lending years, so you had the peak of the market, with people borrowing with nothing down or 5% down."

When Cagan talks about the peak of the market, he's talking about house prices. In much of the country, especially along the coasts, prices peaked in 2006. If you borrowed 100% or 95% of the home's value in 2006, you immediately were underwater, owing more than you would get if you immediately sold your house and paid a real-estate commission.

Subprime ARMs: 2/28, 3/27
Most subprime ARMs are 2/28 mortgages, which start out with an introductory rate that lasts two years and then are adjusted every six or 12 months thereafter for the next 28 years. Subprime 3/27 mortgages have an introductory rate that lasts three years then are adjusted for each of the next 27 years.

A lot of borrowers get 2/28 and 3/27 subprime ARMs with the intention of refinancing in two, three or four years, after they have cleaned up their credit problems. This would help them get a better rate. Those who made small down payments, though, will find it difficult to impossible to refinance if their homes have lost value.

Cagan assumes that people will lose their homes if they made small or no down payments and they get caught in the payment-value vise: when their monthly house payments rise to unaffordable levels and the value of the home has dropped or even remained unchanged. Because subprime borrowers start out with relatively higher introductory rates, they won't suffer the worst payment shock.

The biggest payment shocks will be felt by borrowers who got those low-rate introductory loans of less than 4% (and, Cagan finds, if you got a teaser rate below 4%, it probably was under 2.5% -- there weren't many between 2.5% and 4%). Their monthly payments can double quickly. About 32% of those borrowers will find themselves in the payment-value vise and will lose their homes, Cagan estimates.

This is the second year in which Cagan has estimated how many foreclosures would result from rate reset. A year ago, he forecast that almost $200 billion in foreclosures would result over the next six or seven years. He noted that this would be a problem for borrowers but not for the economy as a whole.

By Holden Lewis, Bankrate.com

Don't let your yard sabotage your home sale

2007-06-03T08:18:00.000-07:00

Will your landscaping pull in buyers or make them drive on by? Outdated or extreme styles, high-maintenance features and invasive or overgrown foliage can kill interest. Here are the experts' do's and don'ts.

For homemaker Sue Wildrick, it was the koi ponds that killed the deal.

While the house she and her husband looked at in Denver last winter had its appeal, its elaborately bricked-in backyard and large network of fish ponds seemed like too much work. "It was a little overwhelming," Wildrick says. And it provided little room for the family to play games or throw a ball to their dog. "We would have probably had to take some of that stuff out."

These days, elaborate patios, outdated or high-maintenance landscaping and invasive plants and trees can kill buyer interest in a home almost as quickly as an outdated kitchen or orange shag carpeting, according to landscaping experts and real-estate agents.

"Landscaping often makes the difference between a prospective buyer getting out of the car for a closer look at the house and simply driving on by," says Cynthia Bee, of Solscapes Landscape Design in Salt Lake City.

Indeed, agents say, good landscaping can provide more bang for your buck than almost any other home improvement -- provided it's done right.

A few do's -- and 6 don'ts

Buyers today expect landscaping that's easy to take care of and water-wise, and offers benefits like shade or privacy, says Bruce Butterfield, research director for the National Gardening Association.

A pot of bright annuals by the front door isn't going to do it for most discriminating buyers.

"There's really a trend towards landscaping that is both functionally and environmentally correct," Butterfield says. "You want to have the right plants in the right place."

Here's a look at the top landscaping turnoffs for buyers and what homeowners can do to make sure their landscaping efforts enhance, rather than detract from the value of their home.

1. Your father's landscaping
Rounded junipers, squared-off boxwood and holly bushes, and topiary shrubs scream that the house is a throwback to the 1960s and '70s, agents say. People now want their landscaping to look natural, with more native plants and interesting, varied foliage. "Flat-top haircuts were big in the '50s," Butterfield jokes. Shrubs with poodlelike puffs are also out, landscapers say.

Big pine trees and other evergreens planted decades ago also can be a turnoff to buyers. These trees can get too big and must be continually hacked off at the top (a bad look) or taken out entirely to avoid roofs and power lines.

2. Gnomes gone wild
It should go without saying, but put the lawn ornaments away. Other buyers may not share your love of lawn globes, gnomes and plastic deer. The same rules for depersonalizing and de-cluttering inside your home apply to the outside, as well.

3. High-maintenance yards
While many buyers fancy themselves green-thumb gardeners, few want to invest serious time in pruning, spraying, mowing and fertilizing. Beds of non-disease-resistant plants such as hybrid tea roses can eat up a buyer's weekends with pruning and applying fungicide. "They may be beautiful when they are in flower, but it's a nightmare to keep them from getting sick," Butterfield says.

Jack Rhoads, an agent with Murney Associates Realtors of St. Louis, remembers one property he showed with an elaborate English country garden that dominated the backyard. A key inside the house mapped out the names of all of the manicured shrubs, roses and gardenias, as well as the contents of the adjoining vegetable garden. "People were just mesmerized," Rhoads says. "For a minute they would say 'I've always wanted a place like this.' Then they started talking about it and said this must take a long time to maintain every week." The house stayed on the market for quite a while, Rhoads says, specifically because of the rigors of its landscaping.

"What we are hearing from our customers is that they want more flower power with less maintenance," says Joe Stoffregen, owner of Homewood Nursery & Garden Center in Raleigh, N.C. That means fewer annuals with short bloom times and more native plants and hardy perennials. In his area, he recommends planting newer flower varieties with longer bloom times, such as continuous blooming hydrangeas; knockout roses, which flower abundantly and require little pruning or spraying; and some of the newer types of azaleas that bloom twice a year.

4. Over-the-top outdoor living spaces
The line between the indoors and outdoors has been blurring in recent years, with more homeowners building elaborate outdoor living spaces complete with fireplaces, kitchens, outdoor showers and custom stone work. In many parts of the country, these areas are a big selling point, making the house seem larger. But when the work gets too ornate or extensive, it can sometimes detract from the value of a home -- especially in colder climates.

Homeowners who put in these improvements should not expect to recoup their total investment at resale. One man's $80,000 outdoor kitchen may only be worth an extra $30,000 to another, says Orange County, Calif., appraiser Jeff Siler. "People have to remember that this is their own personal preference," he says. In essence, you're renting this lifestyle, he says, and you probably won't see the bulk of the money back.

Denver homemaker Wildrick, for one, found the huge amount of brickwork in that Denver house with the koi ponds to be distracting and overdone. "If you go overboard, you are going to limit the number of people interested in the property," says Joe Schnurr, an agent with Prudential Colorado in Denver.

5. Bad seeds
Some plants send up a red flag with many knowledgeable buyers because they are so invasive. High on the list are ficus trees, especially those planted too close to a driveway, house or patio. The fast-growing, shallow roots of the ficus crack pavement and can wreak havoc on foundations. Similarly, ivy and other vines can proliferate too quickly, posing a danger to other plants, as well as to windows and roofs. They also can attract bugs to the house.

Invasive trees such as the Callery pear can be beautiful when flowering, but dump a lot of litter on the lawn. The trees also are very brittle, making them susceptible to storm damage. And like some other fast-growing varieties, Callery pear trees have a relatively short life span of 25 years. This life span is something buyers should consider when buying a house with a mature tree that figures prominently, landscapers say.

Indeed, real-estate agent Sonia Corona of House2Home in Salt Lake City urges her clients to take pictures and leaf samples to a nursery to find out what to expect maintenance-wise. When Corona and her husband were house hunting a few years ago, she passed on a beautiful house with nine cottonwood trees surrounding the patio. Why? She feared the trees, with their huge roots, would have eventually ripped up the patio and surrounding stone work. Taking them out would have cost $14,000, according to the estimates she received. And she was at least partially right: She later found out these trees wound up destroying part of the sprinkler system in the backyard.

6. Too much green?
Many people are asking for smaller expanses of grass so they spend less time pushing the lawn mower and running the sprinkler. "People don't want a yard that makes huge demands on their time," Butterfield says.

Sacramento landscape architect John Nicolaus plants grass for his clients in shadier ends of the lawn along with higher-water plants like azaleas or ferns. He groups drought-resistant specimens where the sun is most brutal. By sorting plants according to water need, he says, you waste less water and homeowners can spend less time wielding the hose. But, he notes, that doesn't mean buyers are ready to give up color. "You don't want everything to be a moonscape or desert garden," he says. "There are lots of . . . drought-resistant plants that are very lush-looking."

And just as important, consider the landscaping in relation to the house. Corona had a listing on a four-bedroom house with intricate xeriscape landscaping with cactus, gravel and walkways, instead of back and front yards. Since most of the people looking at the house had families and pets, it took a long time to sell, she says. "If you're going to have a four bedroom (house), you better have a yard," Corona says.

Most important, agents say, maintain whatever landscaping you have. Overgrown hedges, dying flowers and leggy bushes send the message that the inside of the house is ill-kept, as well. "Maintenance is key to maintaining your value," Rhoads says.

By Melinda Fulmer MSN.com

Home Staging May Help You Sell Your Home

2007-06-02T07:43:00.001-07:00

You understand the value of curb appeal and how important it is to get the buyer to consider looking at your home. You've done everything you can to make the front view of your home beautiful; it looks perfect.

You get them through the front door. Now what?

What about "once-they-get-inside-the-front-door" appeal? How important are your prospective buyers' first impressions as they tour your home? Very important, say the experts. In fact, it's so important that many people are turning to professional "home stagers" to sell their homes faster.

Home staging can be simple and inexpensive, involving small projects like repainting rooms or adding fresh flowers and plants. But, sellers who really want to impress might drop the big bucks and rent high quality furniture, or even remodel.

You might not think the fancy tissue box or those fresh flowers on the kitchen counter make a difference, but they do. In fact, according to stagedhomes.com, most home staging efforts have a return on investment somewhere between 400-700%.

For example, simply cleaning and de-cluttering your house has a value nearly seven times the cost. So if you spend $400 getting rid of junk, it can raise your home value by an estimated $2,800. Lightening and brightening your home can also have a great affect on homebuyers. A $200 investment in new lights and making sure all windows are free of obstacles has an estimated value on a home of $1,700!

Following are a few points that home stagers consider when preparing a home to look its best:

* Do whatever you can to reduce clutter and "junk." Throw it away. The cost of the dumpster may be the best investment you'll make in selling your home. Messy homes don't sell for top dollar.

* Make sure all hallways and doorways are free of obstacles and the home is easy to navigate. Shelves and other items in hallways are visually unappealing and give an impression of sloppy caretaking.

* Fresh flowers in the home go a long way in making people feel good about both the home and the sellers. It signals a genuine desire to keep a home beautiful.

* Pictures and paintings look nice, but too many actually hurt your sale price.

* Make sure you home smells nice. Boiling cinnamon in water makes a wonderful smell. Also try burning scented candles or baking something just before a showing (another great way to leverage that cinnamon aroma).

* Avoid dark painted walls and brighten your home with lights as much as possible.

* If there is one place clutter may be an asset, it's your flower garden. Use a variety of seasonal flowers to ensure beautiful plants are always in bloom, regardless of the season. Good landscaping is considered one of the most important facets of home staging.

* Renting furniture can be expensive, but it gives your home a professional look. Secure all rugs with non-slip pads.

Home staging is growing in popularity, and for good economic reasons. According to the stagedhomes.com, homes that are professionally staged spend 50% less time on the market and sell for an average of 6.9% higher than homes not staged.

Quicken Loans Marketing Manager Regis Hadiaris staged his home before selling it last year. Although he did the work himself and didn't use a professional, he thinks staging definitely made a difference in selling his home.

"People were very impressed with the little things we did around the house, such as buying new deck furniture, adding new custom blinds, and repainting the exterior," said Hadiaris. "Our staging improvements helped potential buyers more easily visualize living in the home. Our home sold pretty quickly, so I'm convinced it was money well spent."

As the housing markets in some areas of the country continue to be "buyer's markets," many sellers are turning to techniques such as home staging. Highlighting your home's best attributes and making it as beautiful as possible can impact how long it stays on the market and its selling price. Whether you go with a professional or do it yourself is up to you and your budget.

Which backyard improvements pay off?

2007-06-01T07:07:00.001-07:00

Creating an outdoor retreat can be a worthwhile but costly venture. So make sure your money is well-spent on features that add the most value to your property.

When it comes to backyards, a couple of lawn chairs and a portable grill just don't cut it these days. More Americans want an outdoor living space with comfortable furniture, built-in grills or complete kitchens, fireplaces, televisions, pools and spas -- and they're expected to spend more than $40 billion this year creating these retreats.

In fact, spending six digits to create a backyard retreat isn't a big deal anymore, says Jeff Carbo, an award-winning landscape architect in Alexandria, La. His firm, Jeffrey Carbo Landscape Architects and Site Planners, has worked on projects that run up to $300,000. For that kind of money, you get a custom-made pool, paving, a covered area with a fireplace, outdoor TV, bathroom and changing area, outdoor shower, fencing, landscaping and an irrigation system.

Is it worth it to spend as much money renovating a backyard as it costs to buy a house? Depends on whom you ask. But if you're going to fork over the big bucks to revamp your yard -- or even if you're on a tight budget -- you should consider putting your dollars into features that add the most value to your property. Here's some advice from the pros:

Which features add value?

Jason Cupp, co-founder of design/build, landscape company Highland Outdoor of Olathe, Kan., says his clients frequently ask whether renovating their yards will add value to their property. If two similar neighboring houses were for sale and one had a great landscape design, that house would sell faster, he says.

However, he and other landscape designers agree that you probably won't get a return on your investment if your property is the only one in the neighborhood with the outdoor fireplace and kitchen, waterfall, custom-made pool and spa. That's why you should weigh your needs versus your desires when it comes to renovating your yard and deciding which features to add -- especially if you're on a tight budget. Even a little bit of money can go a long way if you prioritize and opt for features that are functional rather than purely aesthetic, says Brett Wendell, director of design build for HighGrove Partners in Austell, Ga.

Quality landscape design and installation will add value to your property and help it sell faster, landscape pros agree. If you're on a tight budget, hire a landscape architect or designer to create a design, then install the landscaping yourself -- over time, if you have to. "Some advice is better than none," Carbo says. A landscape architect charges $85 to $135, on average, to create a design plan, Wendell says, and could spend 12 to 18 hours creating that plan. A landscape designer typically charges $50 to $75 an hour. To find a designer or architect, talk with friends or family who have used one or check the American Society of Landscape Architect's FirmFinder and the Association of Professional Landscape Designers' database of firms. Wendell recommends interviewing several pros, talking to their customers and checking out their projects. The designer or architect should ask you lifestyle questions (Do you like to garden? Will you maintain the landscaping or will someone else?) so he or she can give you what you need.

Also, if you make a significant investment in landscape, Cupp says, "it won't look as good if you don't have a proper irrigation system, and your investment will erode." Again, if you're on a budget, install the irrigation system before the landscaping, Cupp says. Expect to pay at least $3,000 to $4,000 for irrigation.

Outdoor living rooms, in particular, have been a growing trend over the last 10 years, especially since the Sept. 11, 2001, terrorist attacks, Carbo says. In fact, designing and furnishing an outdoor room is the second-most popular home remodeling project after remodeling kitchens, according to the Propane Education & Research Council. Homeowners spent $3.7 billion on patios and terraces in 2004 -- a 366% increase since 1994, according to the Census Bureau. The number of people who are complementing their patio with furniture and larger grills is growing (42% in 2005 versus 32% in 2003), according to a study by the Hearth, Patio & Barbecue Association.

Functional or purely luxury?

Outdoor living rooms often include a fireplace or firepit, cooking station and comfortable furniture. "We're finding that we have more and more clients spending money creating rooms outdoors," Cupp says. But this is an important area to decide whether you're spending money on something that's functional and will add value to your property versus something that is purely a luxury item.

Covered patio -- adds value.

"There's no reason to have a great outdoors without an area to sit and enjoy it," Cupp says. For a patio to add value, though, it's got to be more than a concrete slab. He says 95% of the patios he installs are paver patios (brick-like material made of concrete that comes in a variety of styles and colors). The price of materials and installation runs from $12 to $15 a square foot up to $40 to $50 a square foot. And Carbo says patios should be covered to provide shade or protection from rain. Otherwise, you'd be wasting your money if you created a space without a cover to protect you from the elements.

Fireplaces -- luxury item only.

The outdoor fireplace -- as well as the firepit -- is a relatively new trend and is growing in popularity, says Carol Kaplan of the Hearth, Patio and Barbecue Association. Portable firepits are a cheap way to create a cozy outdoor setting. The actual built-in fireplace, though, can cost $8,000 to $35,000, is beautiful to look at but isn't that functional, Wendell says. Because of the maintenance involved, outdoor fireplaces usually are used just during parties or when guests visit. So you probably won't get a return on your investment with this pricey feature, he says.

Kitchens -- add value.

For anywhere from $15,000 to $100,000, you can have a refrigerator, grill and sink installed to cook and dine al fresco. "Why not have it all outside where cooking is part of the process of entertaining?" Wendell says. He recommends getting a professional involved to properly locate your outdoor kitchen so you can get the most out of it.

Television -- luxury item only.

The cool factor is high here, but functionality is low because it's usually too bright during the day to watch outdoor TVs.

Swimming pools -- questionable value.

Pools are one of those features that can be both functional and aesthetic and can add value -- or detract -- depending on the type of pool and type of home buyer or owner. A 2004 National Association of Realtors study of home sales in the Philadelphia area from 1996 to 2003 found in-ground pools added 8% to the sales price of a home. However, all of the landscape designers we talked to said for a pool to add value to property, it has to be custom-made -- not a prefabricated pool that can be found in any backyard. A basic customized concrete pool can cost $60,000 to $80,000. Throw in a hot tub and water feature, such as a waterfall, and you could spend well into the six digits. The problem is, landscape designers say, some home buyers want nothing to do with a pool and will steer clear of houses with one -- regardless of whether it is custom-made or prefabricated. So a pool actually could lower the value of your property in some people's eyes.

Water features.
Features such as a pond or waterfall, also are somewhat questionable as to whether they add value. Cupp says water features are popular and have a high level of value. Costs can range from $1,000 for a small pool of water to $25,000 or more for a pond with a waterfall. Wendell agrees water features are popular but are expensive to maintain. He says they usually aren't worth the money you have to put into them because 50% are abandoned or ignored after the first four years.

By Cameron Huddleston, Kiplinger's