What Determines My Home Value?

Many people look to their neighbors’ homes to see what they sold for when they estimate what value their home may appraise for. However, that is just one of the pieces of the appraisal puzzle.

Here are some of the factors that are considered when determining value:

· Incentives and concessions. Most of today’s buyers expect to pay the lowest possible price and still get some extras. Sellers and home builders are offering money toward closing costs, remodeling and decorating, upgrades, and association dues. The price set initially may not be the final price once concessions are factored out. Appraisers care about that final number.

· Closing date. Forget what comparable neighborhood houses sold for a few months back. Appraisers want prices from the most recently closed transactions. “If a sale was more than 45 days ago, even 35, the price may be irrelevant.

· Condition and curb appeal. Appraisers typically find several properties with similar interior and exterior features to determine value. When markets are healthy, blemishes matter less, but when markets soften, problems—a dated kitchen or barren lawn—can reduce prices and deter buyers. The difference in value is not just the repair costs but the time and hassle to make them. It’s better for sellers to do work in advance.

· Foreclosures. Appraisers technically shouldn’t consider neighborhood foreclosures when valuing a home, since foreclosures don’t meet the Appraisal Institute’s definition of a property reasonably exposed in a competitive market. But when several neighborhood homes are abandoned, it’s hard not to caution sellers that this is a troubling trend and may affect home values.

· Changing demographics. If a house is in an up-and-coming area, the value can be expected to rise. A location that’s perceived as safe also may help attract the increasing number of single female buyers.

· Economic clouds. If there’s an oversupply of comparable homes for sale, or if the local job market is suffering, buyers may be hesitant to invest.

· Chemistry. It’s hard to account for those times when buyers fall in love with a house, despite a high price, poor condition, or tough economy. Emotional attachment is a factor that can’t be predicted. It’s what makes it harder to appraise homes versus commercial buildings, where buyers care more about the bottom line.

For more information on the value of your home contact bill.swanson@cbshome.com, or visit www.billswanso.com for a free online home valuation.

Horror film draws unwanted visitors to Connecticut house

A Hollywood horror film that depicts the alleged haunting of a former funeral parlor in central Connecticut is turning into a nightmare for the home's current owners and their neighbors.

The movie, A Haunting In Connecticut, opens today and curious fans are already making a beeline for the Southington home that inspired the movie.

The family has never seen anything unusual inside their five-bedroom, two-family white wood-frame house and does not believe the property was haunted.

The movie, starring is loosely based on stories that revolved around the house in the 1980s.

The residents at the time, the Snedeker family , claimed their son would hear strange noises in his basement bedroom, which once held casket displays and was near the old embalming room. He also claimed to see shadows on the wall of people who were not there. A niece visiting the home said she felt hands on her body as she tried to sleep, and her covers levitated.

The family brought in Ed and Lorraine Warren , self-described paranormal researchers, who became famous for documenting the alleged " Amityville Horror " haunting of a home on Long Island.

Lorraine Warren says she felt an evil presence in the Southington home and experienced the haunting herself when she spent a night there.

"In the master bedroom, there was a trap door where the coffins were brought up," she said. "And during the night, you would hear that chain hoist, as if a coffin were being brought up. But when Ed went to check, there was nobody down there."

Warren, whose husband died in 2006, has nothing to do with the movie. She said the house was "cleared" of the evil presence after a seance in 1988. A book and a television documentary followed.

Film producer Andrew Trapani said he believed the mother, Carmen Snedeker, was very credible, and believes the film does a good job depicting what her family went through.

He said the names of the family and town in the film were fictionalized, in part to try and keep unwanted attention away from the real home. The Snedekers and Southington are identified on the film's Web site.

International Trend: Home Ownership Opens Up to Women in India

A higher real estate tax rebate and cheaper loans for women in some parts of India is increasingly attracting the fairer sex to invest in property.

States such as Uttar Pradesh, Delhi, Orissa and Punjab have reduced rates for women. A lower stamp duty rate helps in saving on the overall costs while purchasing property, thus acting as a significant boost for prospective women buyers.

The emergence of the new breed of women achievers who place career before marriage, the desire for self-acquired security and awareness of tax benefits has fuelled interest levels. Plus, the lack of hesitation showed by banks in lending to women is an added bonus. Women, regardless of whether they are married or single, face no specific problems in obtaining property loans today.

It is true that banks were earlier hesitant about granting loans to single women since they saw a possible loss of income and therefore inability to service the loan following marriage. However, this is the age of double income families and such misgivings are a thing of the past. About 20% of all loan applications are from women and almost half of those are unmarried.

Women today are on the same professional, personal and financial platform as men. They are independent, earning high salaries, driving their own cars, and have an impressive lifestyle full of luxuries. Owning a house makes them feel safe and secure for the future and serves as a wise investment option.

Here in the United States single women have realized the benefits of homeownership for quite some time. Single women now comprise more than one in every five homebuyers, outranking the number of single men purchasing homes.

For information on real estate and how to finance your dream home feel free to contact bill.swanson@cbshome.com, or visit www.billswanson.com.

Federal Reserve Surprises Financial Markets

Here we go again, with the talking heads on financial news misinterpreting the impact of the Fed's actions on home loan rates.

Here's the scoop. What the Fed just announced is huge – they have committed to buy another $750B in Mortgage Backed Securities, and $300B in Treasuries.

But what does this mean and why do you care?

Their actions provide a demand for Mortgage Backed Securities, which should help keep a ceiling on home loan rates moving much higher in the foreseeable future. That's good news, for homebuyers who are seeing the bargains out there and understanding that now is the time to act. Good news for those who are ready to refinance too.

But an important distinction – this does not mean rates may move significantly lower. Depending on exactly which coupons the Fed purchases when they go shopping for Mortgage Backed Securities, their actions may keep a lid on rates, but not push them very much lower. And based on what they've been buying since the beginning of this year when they started their purchasing program – that is exactly how it has played out.

Present home loan rates are within inches of historic lows. What is keeping you on the sidelines from moving forward to buy the home of your dreams, while it is still on sale?

For more information on homes in your area contact bill.swanson@cbshome.com or visit www.billswanson.com.

Bill's Shopping Secrets

Every season in all the major cities, fashion designers offer their wares for below-wholesale prices. The catch is that these are invitation only events.

No need to worry – you can get the same deals on these five websites. Some even offer a credit towards your first purchase if you just follow our tips.

Hautelook.com: Clothing and cosmetics are discounted by up to 75%. Create an account at hautelook.com/realsimple and receive a $20 credit toward your first purchase.

Gilt.com: Clothes by big designers up to 70% off. Skip the invitation process and go to gilt.com/rs for an account and a $25 credit.

Ruelala.com: Formal and casual clothes as well as home goods for up to 80% off. Skip the waiting list and sign up at ruelala.com/simple.

Billiondollarbabes.com: Clothing from many established designers for 80% off.

Badjoan.com: Clothes and shoes from up and coming designers for 80% off.

Just point and click to shop like an insider!

When Bill is not looking for bargains on designer duds he is busy helping people find the home of their dreams. If you are in need of someone to assist you in your home search feel free to contact bill.swanson@cbshome.com or visit www.billswanson.com.

Would you like to be Lord of the Manor?

The idyllic village of Linkenholt is on the market and, should you have a spare £25 million sitting in the bank, it could be yours in its entirety.

The historic village has 22 houses and cottages and is situated in the Test Valley in north Hampshire, a region designated as an area of outstanding natural beauty.The sale also includes a cricket pitch and pavilion, a three-story manor house, a village shop, a commercial shoot, blacksmith shop and farming land. The only property not included in the lot is the village church, St Peters.

The estate is currently owned by a charitable trust, set up by Herbert and Peter Blagrave, and the sale will raise money for the trust’s work in helping disabled children and injury jockeys.

Village residents currently rent properties in Linkenholt, and tenants will be allowed to remain in their homes after the sale. Whoever buys the estate will get everything, lock, stock and barrel. The tenants are hopeful that whoever buys it will run it like it is now and perhaps even move into the manor house.

It's an excellent opportunity for someone to invest in prime agricultural and residential property and it's a safe location to park their money in these troubled times.

If you would like information on real estate in your area feel free to contact http://www.billswanson.com/.

What is that technology, anyway?

We've all been there. We hear our friends, family, and co-workers talking about mysterious things called RSS, Wikis, and Twitter, and we secretly think...what is that anyway?

We try to hide the fact that we don't have a clue what they're talking about. Well no more. Enter Common Craft's "In Plain English" video series. These short, entertaining videos sum up hard to understand concepts usually in about 3 minutes or less. Besides their technology topics, they also cover how to save and borrow money, how phishing scams work, and why we should use CFL lightbulbs.

Check it out here http://www.commoncraft.com/show.

For real estate information feel free to contact bill.swanson@cbshome.com or visit www.billswanson.com.

Original or extra soggy?

He was covered in mud when pulled from the river, and had lost both legs and hands, not to mention his glasses. But Colonel Sanders still had his trademark smile, 24 years later.

A statue of the KFC mascot has been found in a river in Osaka, a city official said today, nearly a quarter century after being tossed in by crazed baseball fans who felt the image of restaurant founder Harland Sanders resembled a key team member.

Local fans thought the Colonel bore a resemblance to Randy Bass, a bearded power hitter and first baseman from the U.S. who played for the team at the time.

Fans often jump into the murky river to celebrate the team's successes, but there has been little to celebrate in recent years. Many fans feel the team has been plagued by the "curse of Colonel Sanders" since his effigy was submerged in 1985.

It has failed to win a national championship since, although it did win its division in 2003.
The upper half of the statue was found Tuesday in Osaka's Dotonburi River during construction work to build a new walkway, according to city official Hideo Yuko. His legs and right hand were found this morning.

The colonel will be kept in police custody for the time being, but Yokakawa said KFC is considering donating him to the home stadium of the Tigers in Osaka. The store where he originally stood has since closed.

An Easy to Read Summary of the New Housing Plan

Who Will Benefit from the Plan?

* Homeowners that are in distress and at risk of foreclosure.

* Homeowners that are current on their mortgages, have high interest rates, and little to no equity.
* Fannie and Freddie will receive a capital injection of $200 billion from the Treasury Department to increase the amount of available credit.

Who Will Not Benefit from the Plan?

* Those that are trying to either save a non-owner occupied home from foreclosure or want to benefit from newly introduced government backed refinancing guidelines
* If you are in an owner occupied home and you can’t afford the home because you have a complete inability to pay, lenders will not be forced to help nor will the government come to your aid.
* Absolutely no aid for speculators or second home owners.

What are the Specific Details of the Plan?

The new program rolled out on March 4th, 2009, focuses on three critical needs:

1. Incentivize lenders to modify loans for distressed borrowers.
Provide refinance options for homeowners that are current, but have homes with little to negative equity.
2. Increase the amount of available credit.
3. Incentivizing lenders to provide loan modifications:

Plan is voluntary for mortgage servicers except for Fannie Mae and Freddie Mac and banks that accept help from the government. These institutions must adopt loan modification plans.
The loan modification plan is for primary residences only, and will benefit borrowers with higher rates, adjustable rates, and interest only loans.

A Shared Effort to Reduce Monthly Payments:

* The servicer would reduce interest rates so that the monthly obligation is no more than 38% of a borrower’s income, and then the government would contribute money to bring payments down to 31% of the homeowner’s income. Servicers can also reduce the loan balance to achieve these affordability levels. The government will share in the cost, up to the amount the servicer would have received, if it had reduced the interest rates.

* Homeowners may be required to enter a debt counseling program as well.
* "Pay for Success" Incentives to Servicers: Servicers will receive an up-front fee of $1,000 for each eligible modification. They will also receive a monthly fee of up to $100 annually for 3 years, as long as the borrower stays current.

Incentives to Help Borrowers Stay Current

* Initiatives will provide a monthly balance reduction payment, that goes straight toward reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.

Reaching Borrowers Early

* An incentive payment of $500 will be paid to servicers, and $1,500 will be paid to mortgage holders, if they modify at-risk loans before the borrower falls behind.

Home Price Decline Reserve Payments:

* An insurance fund of $10 billion dollars will be created by the Treasury Department. It will be designed to encourage lenders not to foreclose on mortgages because they fear a further reduction in home prices. Holders of mortgages modified under the program, would be provided with an additional insurance payment on each modified loan that is linked to a decline in the home price index.

On the need to provide refinance options for responsible borrowers:

* Those who are current on their payments and whose loans are held or guaranteed by Fannie Mae and Freddie Mac are eligible.

* The plan would help borrowers who owe more than 80% of their home’s value to refinance and reduce their monthly payments. However, the new mortgage, including refinancing costs, can’t exceed 105% of the current market value of the property.
* Borrowers with a second mortgage are eligible, as long as their first mortgage isn’t more than 105 percent of their home’s value.
* The value of the property will be determined after application is made to refinance.
* The government backed refinance program allows borrowers to refinance into 15-year or 30-year fixed-rate mortgage at prevailing market rates.

Increasing the amount of available credit:

* More capital will be supplied to Fannie Mae and Freddie Mac in the amount of $200 billion.
* This capital will be used to add to the amount of available credit to individual borrowers.
*This new injection of capital will allow Fannie Mae and Freddie Mac to expand the size and scope of their mortgage portfolios, perhaps as a safety valve for banks on the brink of insolvency.

I have outlined the facts, now I would like to hear what YOU think about the plan. Please feel free to post comments or email bill.swanson@cbshome.com with your thoughts.

Divorce the House Before the Spouse

Splitting up after years of marriage? Divorce your house, then your spouse. If you're still linked through the house, than you're not really divorced.

That bit of advice goes against the almost universal desire to hang on to the family home, especially by the spouse who ends up with custody of the children. Indeed, the courts almost always give special consideration to the parent who gets the kids: Keep the kids, keep the house.

However, the place is often so filled with memories, both good and bad it's not the family home anymore. It can be a huge anchor both emotionally and financially. People also tend to underestimate the true cost of homeownership, so much so that the remaining spouse's ability to afford the place is often drastically overstated.

Even in a friendly divorce, if there really is such a thing, certain key expenses are either forgotten or overlooked. Lawn care, homeowners' association fees, even the basic costs of maintenance and upkeep are among the costs that are rarely considered, either by the courts or the spouses.

Then there's the even bigger issue of hidden debt. Ideally there will have been no secrets between the husband and wife. But money is a major cause of divorce, and in many cases, one spouse has no clue that the other one has rung up big bills that have become undisclosed liens against the property.

In most divorces, the spouses determine what the house is worth, and the one who gives up the place is usually given a credit of some sort for his or her half of the equity the couple has in the place. Typically, the parties split the difference based on an appraisal.

But along with that appraisal one should obtain an independent, third-party inspection of the property to determine whether there are any latent defects that could impact its value. You wouldn't buy a house without an inspection, so why would you accept one in a divorce without an inspection? What if something's wrong or about to go wrong? You can use the inspector's report as a punch list, and either use the marital assets to make the necessary repairs or reduce the value of the property accordingly.

Make sure to ask your inspector to estimate the remaining life of the property's major appliances and systems. If something is on its last legs, you'll want to know in advance so you can adjust for that as well. While you're at it, order a termite inspection—the damage those little buggers cause is often significant.

One other item that needs to be factored in is the tax ramifications of any settlement. A settlement can not be fairly evaluated without checking with how the IRS will interpret your division of property.

Fortunately, a major mistake is preventable—but only during your divorce, not afterwards. Information is the key – more of it and as early as possible. More due diligence and more information from more financial and real estate experts, all much earlier in the divorce process should safeguard you and your family’s financial future.

For more information on selling your home contact bill.swanson@cbshome.com, or visit www.billswanson.com.

What Is All This Talk About Permaculture?

The term permaculture, meaning "permanent agriculture" was coined in the 1970's by Australian Bill Mollison. Originally it was a beneficial assembly of plants and animals in relation to human settlements, mostly aimed towards household and community self reliance, and perhaps as a commercial endeavor only arising from a surplus from the system.

However, permaculture has come to mean more than just food sufficiency in the household. Self-reliance in food is meaningless unless people have access to land, information, and financial resources. So in recent years it has come to encompass appropriate legal and financial strategies, including strategies for land access, business structures, and regional self-financing. This way it is a whole human system. When correctly designed such a system will, like a natural ecosystem, become increasingly diverse and self-sustaining.

All permaculture design is based on three ethics: Care of the earth (because all living things have intrinsic worth); care of the people; and reinvest all surpluses, whether it is information, money, or labor, to support the first two ethics.

Modern permaculture is a system design tool whose approach follows these 4 simple steps:

1. Looking at a whole system or problem
2. Observing how the parts relate
3. Planning to mend sick systems by applying ideas learned from long-term sustainable working systems.
4. Seeing connections between key parts.

Actually, you could apply these steps to all areas of your life. Once again, we are shown that we can learn a lot from Mother Earth.

For more information contact bill.swanson@cbshome.com or visit http://www.cbshome.com/.

Mortgage Deduction at Risk in U.S. Budget

A new proposal in the Obama administration's federal budget outline would limit the mortgage interest deduction (MID) amount for thousands of families, which would impact the housing market for everyone.

The NATIONAL ASSOCIATION OF REALTORS®, which has supported the Obama administration’s housing and stimulus plans, is opposed to this proposal. NAR President Charles McMillan has sent a letter to President Obama, saying that "there is never a good time to propose something that undermines the basic foundation of homeownership."

McMillan also released the following statement to members this afternoon:

"Fellow REALTOR®,You may have seen news reports about President Obama’s Budget Proposal that was released today at 11:30 a.m., Eastern Time. A small section of the sweeping budget plan has the potential to become a major impediment to a recovery in real estate markets across the nation. NAR is 100 percent opposed to the provision that modifies the Mortgage Interest Deduction and is prepared to use its formidable array of resources against its enactment.As currently drafted, the plan changes the Mortgage Interest Deduction by reducing the amount of mortgage deductibility on families earning over $250,000. This proposed change in the Mortgage Interest Deduction will result in further erosion of home prices and home values. If this proposal is enacted it will set off a new round of price depreciation, will cause greater distress on the balance sheets of banks as the collateral value of mortgage backed securities declines. A second credit crisis could emerge before the first one is resolved.As you read this NAR is launching a multiphase plan of action to eliminate this provision from the budget plan. In the next 24 hours, NAR will be expressing our concerns directly to President Obama, to all members of the United States House of Representatives and the Senate, placing advertisements in the publications read by Washington, D.C., decision makers. Additionally, NAR will be forming a coalition with other groups affected by this proposal. This communication is the first salvo of our response, we will continue to update you as the situation and events warrant."

For more information read: REALTORS® Oppose MID Reduction

For real estate information contact bill.swanson@cbshome.com or visit www.billswanson.com.