Your Estate

I really loathe this quote. It’s such a downer and so cynical - never mind that it’s so true. It doesn’t begin to lift my spirits or offer any hope. And hope is what we in the real estate world need, especially these days.

Whether or not you agree with the government’s October bailout program, it is, in fact, a reality. Fannie Mae/Freddie Mac are going to be working with delinquent homeowners to get them back on track so they can keep their homes. JPMorgan Chase & Co, Bank of America Corp and Citicorp are also falling in line to offer mortgage loan modifications to those who qualify.

Qualify - therein lies the rub.

The country is aware there are hundreds of thousands of homeowners in need of assistance who want to stay in their homes and be able to make their monthly mortgage payments. It would appear these lending institutions have laid out specific and clear criteria by which to judge whether applicants meet the standards for assistance. And as much as I’d like to think every applicant will be truthful about their housing situation, I’m reminded there are always “a few” who can spoil it for the rest. It even happened after the Twin Towers tragedy. Some people have no shame.

Here’s what Euro Pacific Capital investment manager Peter Schiff wrote in an e-mail last Tuesday:

“By offering to reduce mortgage payments to 38% of household income for homeowners who are 90 days delinquent, the mortgage program announced today will spark a new wave of delinquencies. In a classic case of unintended consequences, the plan will encourage homeowners to rearrange their finances to qualify for the benefit. Those who could conceivably economize to meet their existing obligation will now have a strong reason to forgo such sacrifices.

“The intentional reduction of income is also a possibility. In many cases dual-income families may decide to eliminate one job altogether as reduced mortgage payments combined with lower child care and other work-related expenses will likely exceed the after-tax value of the lost paycheck.

“It may also be tempting for some homeowners to temporarily quit high-paying jobs, or delay job searches, and accept low-paying jobs while the creditors consider their fate. Once their mortgage payments have been modified to fit their diminished incomes, these homeowners would then be free to pursue better-paying jobs. With mortgage payments reduced to a fraction of the prior payments, these workers will have much more employment flexibility than those foolishly struggling to meet non-modified mortgages.”

I’m not sure where Mr. Schiff is residing, but here in the state of Michigan, job-hopping is not exactly an Olympic sport. A year ago I applied for a part-time clerical position, working two days per week, with no benefits. I got the position - and had to beat out 300 other applicants. I just don’t think people are going to give up a paycheck or work for less in order to qualify for a mortgage reduction. It seems far too risky to me.

Quitting a “high-paying” job, which more than likely includes medical benefits, sounds irresponsible and a little nutty. I’m not saying it won’t happen, but my hope is that if lenders have learned anything from this fiasco, it’s that close scrutiny of documentation and strict adherence to qualifications by borrowers must be in place.

Something had to be done. The bailout may not have been your first choice, but now that it’s been implemented, let’s try and have a little faith in humankind. Otherwise it really doesn’t matter what course of action is taken - failure of people to have integrity and faith in one another will be the demise of us all.

Posted by Sharon Walker

Aside from price, home buyers customarily have a laundry list of “needs” they would like to see fulfilled when purchasing a new home. Certainly there are those common factors, such as number of bedrooms and bathrooms, square footage, garage size, etc. There are often community desires as well, like high-ranking schools, reasonable taxes and accessible shopping, to name a few. During the years, these amenities have remained fairly constant.

The new millennium has brought to light an additional necessity: broadband availability.

Once upon a time, having broadband in your home was tantamount to the introduction of the television in the early 1950s. Many Baby Boomers can remember a time when whole families were invited to a neighbor’s home to watch Milton Berle or the Saturday night fights. An entire scene in the 1985 movie Back to the Future conveys the uniqueness of the television experience in the home - no big deal to Marty McFly, but quite remarkable to his extended, “back-in-time” family.

For some of us, initial access to the World Wide Web, even through a modem, was awe-inspiring. Because of its limited ability, we might have had to wait 20 minutes for something to download. No matter! We felt like this was the “cutting edge” of technology and we were content to just know someone who had the Internet at home.

Today, many home buyers are adding broadband access to their list of real estate priorities. Urban workers who are looking for wide-open living spaces in rural communities may find getting away from the hustle and bustle of the city could leave them empty-handed when it comes to a high-speed Internet connection.

For “at-home” workers, whether urban or rural, broadband has become a huge factor in their choice of where to live - it is literally their lifeline. For the worker on the move, it’s great that many motels/hotels, coffee shops and fast food restaurants offer wireless access to the Internet, but at the end of the day, if they can’t work in their jammies, in the comfort of their own home, off-site Wi-Fi is of little consequence.

The importance of broadband access is surely a sign of the times. And like the demand to be readily available, the speed in which it’s delivered is entering a Star Trek dimension. Soon we’ll no longer be content to wait 5 to 10 seconds for information to download. Our expectations may be no different than the command of a well-known captain: “Mr. Sulu, ahead warp one.” I wonder if g-forces will come with that connection? 

Posted by Sharon Walker

It’s just a few weeks before Thanksgiving, the beginning of what I call “Family Season.” Thoughts turn to gathering together with relatives and friends around a full and festive meal. It’s a time for preparation, not only inside but outside of your house as well.

This time of year, the outdoors hosts a number of wonderful aromas and experiences. There’s nothing like stepping out on an autumn Saturday morning to be met by the cool, fresh air that has the crispness of a Granny Smith apple. It can be invigorating and motivating. Here’s where you can spend some free time with your family and tackle some of those yard chores you’ve been putting off.

Tackling the garage can be a good family endeavor. If you have children, they can sort through and clean their summer toys and help put them on shelves or on wall hooks to take care of some of the clutter. Children can also help with draining the garden hose. And if you’re thinking about planting those tulip or crocus bulbs, showing older children how to use an adjustable bulb planter can help give a little ownership to the family flower garden. Don’t have a planter? What kid doesn’t like digging in the dirt? Give guidance while your child uses a good old-fashioned hand shovel to set the stage for bulb dropping.

It’s a good time to have plenty of rakes and yard bags on hand - if possible, a rake for each child, even toddlers. Many toy manufacturers make pint-sized yard tools, wheelbarrows and wagons that can allow the little ones to tote leaves and twigs to the bags. Just having them pick up twigs and such is a great idea - since they’re so close to the ground to begin with, it could save you from that backache at the end of the day.

Before bagging the leaves, the kids are going to want to rake them into a “giant” pile - the higher, the better. And like any other self-respecting parent, you lay aside your parental role and turn back the clock to the days when you thought fallen leaves were only meant for romping in. Go ahead and join the kids in jumping and rolling in the pile. Let the aroma of the dried leaves take you back to the days when you didn’t have a care in the world. Listen to the familiar crackling of the leaves and to the delightful cries of joy from your children.

Exhausted, lie on your back and look up into the blue sky, feel the warmth of the sun and know it’s at moments like these that you’ve helped create a warm, loving memory for your children. And in the end you’ll have a clean yard and the satisfaction of knowing you’ve given your kids a priceless gift: your time.

Posted by Sharon Walker

I’m a Baby Boomer, born to parents who lived during the Great Depression. My mother was a very young girl during the Depression’s early years; my dad was in his late teens. Each walked away with different perspectives.

My mom always considered her family poor, living in rural Fargo, ND. My dad grew up in somewhat better circumstances on the island of Saint Croix, in the Virgin Islands. He was a Danish citizen until the U.S. purchased the islands in 1927 and he came to the States.

Marrying after World War II, they lived simply in Chicago in a one-bedroom apartment until I came along. My sister followed a couple of years later.

We were a family of modest means that thought nothing of eating leftovers. We were taught to throw garbage (litter) in trash cans and to pick up after ourselves in public places. Our week off of school in April was not referred to as “Spring Break,” but Clean-Up Week. Kids from our block got together to sweep sidewalks and curbs and eliminate trash. We were even given a certificate from the City of Chicago for our contributions.

My dad used to walk around our apartment switching off room lights, shouting, “What do you think, I’m married to an Edison?” I knew what he meant long before I’d ever heard the word conserve. He used mass transit to get to and from work.

I guess my point is this: My family didn’t need incentives - monetary or otherwise - to be kind to the earth. Whether poor or modestly well-off, families practiced good stewardship of their homes, property and community.

Our efforts were not based on fear, but on pride of our “little piece of real estate,” whether an apartment or a single-family home. I’m not sure when the message of personal and communal responsibility for the planet got lost, but I know it’s one I’ve been hearing all my short life.

When you think about it, at the infancy of our nation Ben Franklin was way ahead of the curve when he said, “Waste not, want not.” I don’t think it could be said any plainer.

Posted by Sharon Walker

It’s been 25 years since my first experience as a home buyer. We were thrilled to find a house that was in our price range, met our family needs and was in a desirable neighborhood. My recollection of that purchase may be somewhat rose-colored, but the biggest concern I remember having was whether the owner was going to accept our offer, and if we had any competition. As it turned out, both of those were non-issues.

Jettison to today’s home buying situation. My newlywed daughter and her husband are living in the home he has owned for several years prior to their marriage. Recently they began looking at larger homes outside the city limits with a few acres of land. I got a call from her after they made an offer on a house, in which she expressed her anxiety over the whole process.

A little second guessing on her part: Was their offer too low? Was she really in “love” with the house? Should they have looked longer? Although her husband has jumped through these hoops before, for all intents and purposes she is a “first-time” buyer. And I believe she’s experiencing the angst that seems to be typical of “first-timers” in this particular housing market.

Based on my readings, my advice to her and to others stepping out in faith to become homeowners is that long before you actually step inside of your potential “dream home,” you’ve got to do your homework.

Reflect upon these questions:

• Should I become a home owner? Your investment is not only financial, but time-consuming and labor-intensive. If you’re a renter, you’ll no longer have a landlord to rely on for repairs and outdoor maintenance. On the flip side, a home can provide stability for a family and an investment in the future.
• How much house can I afford? Sitting down and determining your monthly budget - including outstanding debt - should give you an idea of how much of your income you’ll have available to pay toward a mortgage.
• How do I begin a home search? It’s been reported that nearly 80 percent of potential home buyers begin their search on the Internet. There are a throng of listings that can be found online. Not only can you see photos of the exterior of a home, often there are multiple shots of the interior. Some even offer virtual tours. This is an unobtrusive way to filter through the market and narrow down the possibilities.

What’s next after selecting a few properties to view? Contact a reputable real estate agent. Don’t know any? An excellent resource is Connect2Agent. It offers buyers (and sellers) a selection of real estate agents, enabling you to select an agent who will best meet your needs.

Of course, any agent would be glad to work with a buyer who comes to them with all of their particular home needs and wants, location and a rough estimate of how much they feel they can afford. However, don’t you want to work with someone who is genuinely looking out for your best interests? Make sure you know who’s representing you.

What are the steps of financing a home? Your local housing market may determine how much of a downpayment will be necessary. Regardless of that requirement, your agent will undoubtedly encourage you to seek pre-approval from a lender. This means your lender is willing to extend a loan to you after verification of your income, assets and debt.

Once your mind is set on purchasing, allow your real estate agent to do his/her job. They know the local market well, have listened to your particular house desires and can arrange to show you your selections. Once you’ve narrowed your choices to one or two homes, take a second look. Don’t be afraid to open closets, look under sinks and behind the furnace. Remember: These spaces potentially could be yours. You want to make sure they’re adequate and problem-free.

Buying a home can be an exhilarating and traumatic experience. Doing your best to be prepared for the process can help take some of the anxiety out of the journey and leave you with the satisfaction that your new home is everything you wanted and can afford.

Posted by Sharon Walker

When you’re putting your home on the market for sale, you do your best to make it attractive to a wide variety of buyers. You get rid of the clutter, clean, repair and paint to the point where you ask yourself, “Why wasn’t I motivated to do all this for myself and my family?” (That’s a whole other topic.)

After all this hard work, you’re feeling good about your accomplishments and know your home is ready for showing. Just then you look out your front window and notice several small mounds of earth sticking up in your lush, meticulously manicured lawn. You scream - if only in your head - and dash out of the house.

In your mind you know what you’re up against, but in your heart you’re hoping your 5-year-old has been wandering the property again with her sand shovel. That notion is immediately dispelled when you see how neatly the little piles of soil lay. It is, as you suspected, moles!

You think to yourself, “If they would stay deep under ground, aerating the soil and eating their weight in food, life above ground would be smooth sailing.” But the fact is, moles leave a trademark of their handiwork - a mound or a ridge of dirt, all of which makes the cleaning, repairing, etc., you’ve done inside seem like a cake walk compared to the task that lies ahead: getting rid of the moles, once and for all, before that first open house.

I’ve read about numerous homemade remedies, which appear to have worked for some people, but in the long run seem to be only a temporary fix. Here are some of the many examples I’ve come across:

• bleach
• broken or ground glass
• pickle juice
• Drano
• razor blades
• human hair
• moth balls
• red pepper
• chewing gum
• vibrating mechanisms
• gasoline
• explosives

There is no scientific evidence that supports that these remedies eliminate moles. Quite frankly, they sound like something Jethro Bodine might use at the behest of Granny. Yikes!

Insecticides have been suggested too, killing off the mole’s food supply. That may do one of two things: The moles may leave the area, but are likely to return. The other possibility is they may increase their digging in search of food, making the problem more widespread. And really, can you blame them?

Here’s what I’ve learned about mole removal from my simple Internet investigation: The only way to be rid of moles in your property is to trap them and by doing so, they are killed. It’s the only method that has proven successful and has been recommended for nearly 100 years. The trick is choosing a reliable trap and using it correctly. I say “a trap” only if you’re certain you have only one mole. If there are multiples, you’ll need multiple traps.

Recognizing active mole tunnels and knowing where to place the traps is key to extermination. I highly recommend The MoleMan and Controlling Nuisance Moles, two Internet sources with details about different types of traps.

So what’s your slant on permanently getting rid of moles? What’s worked for you? What hasn’t worked for you? With all the other “uphill” battles sellers are climbing these days, shouldn’t exterminating moles be an easier “row to hoe?”

Posted by Sharon Walker

“Change is inevitable,” or so the saying goes. The very young often balk at change. They have a need for consistency with defined boundaries. Young people seem to embrace change. Their desire for new and exciting events appears unquenchable. Middle-aged people struggle between seeking change and battling life’s changes, over which they have no control. The elderly are often frightened by change and long for days past when they felt more certainty in life.

Understanding that there’s no stopping change can make dealing with it much more palatable. For the past 10 months, the airwaves have been filled with promises of change from our local and national politicians. Each has his or her own idea of what will be beneficial and effectual change.

Voters will have an opportunity to decide whose “change package” they wish to support on November 4. But let’s keep in mind that the day after the election will show little signs that anything has changed. Many of us will still wake up next to the same spouse. Lunches will still have to be made for our children before sending them off to school. Paying the rent or mortgage and utilities will need to be done on a timely basis. Some will still be unemployed and others will trot off to the same job, like it or not.

But what about the change in the here and now?

Home buyers and sellers have been dealing with the catastrophic change of home values these past few weeks. Despite the conditions of the market, many sellers have an unrealistic perception that their homes have maintained their value through this month’s financial crisis. They recognize the need to address their spending differently, but are in denial about making adjustments in the pricing of their home.

Buyers, on the other hand, can get so caught up in “getting the best deal” that they lose focus of looking for the home that best fits their budget and their family’s needs. These are necessary mindsets that need to be adjusted now. The results of tomorrow’s election are not going to have an immediate effect on the realm of the real estate situation.

If you’re buying or selling a home, get with the program. Talk with someone who has a handle on the conditions of your market; a qualified real estate professional.

Be open-minded about the realities of the housing situation. Make informed decisions by listening to your real estate agent, and be prepared to be flexible. I think we could amend that old saying, “Nothing is certain except death and taxes,” - and change.

Posted by Sharon Walker

My children are all grown, so I’m not dealing with their Halloween makeup, costumes and accessories anymore. However, I still enjoy greeting children at my front door with their bags held out in eager anticipation of the candy I’ll give them. As a participant in the tradition of “Trick or Treating,” I am very conscious of the children’s safety as they come and go from my front porch.

I think of my own childhood Halloween experiences growing up in Chicago. (That’s the city, not suburbia.) My parents would allow my sister and I to freely wander the neighborhood, up two or three flights of stairs to knock on the doors of the flats (apartments) of people we didn’t even know. We traveled in packs of friends, being loud as we checked our candy booty under the light of a corner street lamp. It seemed everyone became your neighbor on Halloween, even if they lived blocks away.

It’s a different Halloween “world” for kids today. Closely escorted by their parents, they move cautiously through their neighborhoods and subdivisions, usually knocking on the doors of immediate neighbors and friends of the family.

The caution I take as a homeowner is to provide a lighted area of my porch stairs, and rather than open my storm door to distribute candy, I’ve come up with a safer alternative.

Like so many people who have adopted the habit of changing their smoke alarm batteries at the time of the seasonal clock change, I use Halloween as a marker for my storm door change. I remove my screen from the door, which leaves that portion of the door completely unobstructed. It’s from this vantage point I distribute my Halloween candy.

Some children are a bit surprised to see my hand reach out to them while the door is closed; some don’t seem to pay any mind. For me, I feel I’ve just provided a safe environment for kids to receive the payoff of Halloween - a handful of candy. That’s part of what makes the holiday a sweet deal for me!

Posted by Sharon Walker

The Internet is an integral part of real estate today. Technology can be used from the house-hunt up until the final days you close escrow. If you manage your real estate transaction with technology, you will be able to manage your time for other important things - like work, play and most important, family.

Let’s explore time management with technology, shall we?

House-hunt the smart way. You should be utilizing the Internet to research listings online. You can do this on many real estate sites, but you will want to get on an email automatic feed that sends you new listings that have come onto your local market. This can be found on many real estate agents’ websites.

Your real estate agent has better access to listing information because of technology:

“I’m not sure how anybody practiced real estate before the Internet. I am able to research listings better through recent updates with my local Multiple Listing Service (MLS). If I am looking for properties for a client that have a second downstairs master bedroom for an elderly parent, I am now able to put in that search criteria.” -Nancy Halvorson, Connect2Agent member and San Antonio Texas real estate agent.

Keep up on current local market price conditions. A good source for this information is individual real estate agent’s blogs. Many real estate agents will provide a monthly/bimonthly market report that will drill down the most recent sales to specific neighborhoods. This information is a good way for you to measure your budget against the subdivisions you are looking to buy a house in.

Partner with your real estate agent by sharing your real estate findings. Your real estate agent should also be able to communicate and update you online.

“I bought a house in the 80s and my real estate agent had a thick book that she used to show me listings. How did she find me a house? Today’s technology allows me to send some properties to my clients to narrow the list down. I also use Google’s Street View to see what the neighborhood is really like for the properties I am finding for clients.” -Halvorson

Once you enter into an offer to purchase agreement, make sure you keep in communication with your real estate agent. Texting and emailing allows you to set up appointments without having to be on the phone. This can be a true gift to busy homeowners pressed for quiet time to get out a phone call.

Use document collaboration to hammer out home inspection concerns and finalize final walk-through issues. A service like Google Docs will allow you to list your concerns and send notification via email to your real estate agent. Your real estate agent can then add their comments and the changes can be tracked. Document collaboration is a great way to make sure all parties are on the same page.

Once you close escrow, you can also use technology to say thanks. Say you care by sending an electronic greeting card or by letting your real estate agent know you think they are truly awesome.

Time manage your real estate transaction with technology - and breathe a sigh of relief today.

Posted by Rebecca D. Levinson