Mitch Home Team Real Estate Updates & News

Eight Essential Facts about Claiming the First-Time Homebuyer Credit

2011-02-21T15:09:00.001-08:00

Keeping to "Our" New Years Resolutions~Cleaning out our Closets

2011-02-21T14:54:00.001-08:00

10 Steps to a Happy Clothes Closet

The clothes closet is one of the least respected areas in the house. It's often stuffed from floor to ceiling with clothing, briefcases, purses and shoes. Valuable clothing rod space has been taken over by vast armies of mis-matched hangers. Books and magazines have managed to somehow sprout out of nowhere. Bed linens are mixed in with towels, umbrellas and shoes. You can barely see the floor. Before you know it, your closet has become clutter central!

Here's some friendly advice. Heed the old saying, "Less is more." You'll save an enormous amount of time, money and stress by thinning out your huge wardrobe.

1. GET THE PROPER SUPPLIES. Buy a starter set of 30 hangers, or 60 if the closet is shared by two people. Get the sturdy, plastic ones. They're inexpensive and can be obtained at a home goods store. Buy all one color for uniformity (or if you're sharing closet space with someone, get one color for yourself, and another color for the person you're sharing space with.)

While you're at the store, pick up a few sturdy skirt and pants hangers. Vertical skirt hangers with clips that hold 5 to 6 skirts on one hanger are a great choice. In addition, pick up an expandable shoe rack and a tie rack if you wear ties.

2. START WITH A CLEAN SLATE. Pull out everything (yes, everything) that's currently in your closet.

Keep in mind, as you're doing so, that you probably only wear 20% of your clothes on a regular basis, 10% of them are for special occasions, and the other 70% of them are probably never used at all.

3. SEPARATE CLOTHES INTO 5 PILES.
A. Clothes that meet any of the following criteria:
* it is outdated
* it is ripped
* it is stained
* it doesn't fit (if you're not sure whether or not it fits, try it on now)
* you think it may come back in fashion someday
* you wouldn't dream of ever wearing it again

B. Wire Hanger Pile (they're weak, they stick up in the air, and they damage your clothing)

C. Clothes that need minor repairs such as sewing a hem or replacing a button. If it’s too much of a hassle to repair it, then don’t put it in this pile.

D. Clothes you love and wear at least once a month AND clothes you love and wear at least twice a year (special occasion wardrobe). Your wardrobe should always make you feel good about yourself. If you don’t love it or wear it often, it doesn’t belong in this pile.

E. Any other items that don’t fit into Category A, B, C or D.

4. CATEGORY A OR B: DUMP IT OR DONATE IT. Ok, now here's the fun part. Grab a large plastic garbage bag and dump everything (yes, everything) from your A pile into it. Bring it to your local charity organization first thing in the morning or dump it now.

If you're still reading this in disbelief, take a deep breath to get over the initial shock, then go ahead and toss it or donate it. You’ll feel better in the end.

While you're at it, take all those terrible, awful, lousy wire hangers (Have you gotten the point that I really don’t like wire hangers?!) in your B pile and bring them to your Dry Cleaner for recycling or dump them immediately.

C'mon now. Are you still considering keeping something in your A or B piles?? Please, dump it. It's clutter. You'll feel better about it later when your closet is organized, inviting and free of chaos.

5. CATEGORY C: REPAIR IT WITHIN 2 WEEKS. Ok, now that your A and B piles are donated or trashed (I hope), let's move on to your C pile. This pile should contain those articles of clothing that need minor repair. Get a basket or container. Dump this entire pile in it. Now, carry that basket over to your clothing repair area.

Give yourself a 2 week deadline. If it's not done in two weeks, dump or donate the entire basket. After all, if it's not important enough for you to repair, it's clutter. Sound drastic? I wouldn't steer you wrong. It's very easy for clutter to build up, and I want to help you eliminate any chance of it happening to you again.

6. CATEGORY D: ORGANIZE YOUR KEEPERS. Sort everything in your D pile by category of clothing (blouses, skirts, pants, suits, etc.) When done sorting, start with one category. Take one article of clothing at a time, put it on a hanger (the colorful, sturdy, plastic kind) and hang it in the closet. (Important Note: If you found something that didn't belong in the closet in the first place, don’t put it there again.)

Do this until you've managed to hang all of your categories of clothing, making sure that all clothing and hangers are facing the same direction. (By the way, if you share your closet with someone, don't mix clothing together. Put each individual's clothing on either side of the closet.)

7. CATEGORY E: CATEGORIZE AND ORGANIZE EVERYTHING ELSE. If, due to lack of additional storage space, you have some items that simply have to be returned to your closet which haven't been put there already (your E pile), categorize them. Then, get some inexpensive organizing containers so that each category remains separated and place the containers on shelves in your closet.

Now is a good time to set up your brand new, sturdy, expandable shoe rack and neatly place your shoes on it.

8. FINISHING TOUCHES. Now, you're ready for some finishing touches. If you install a few hooks on an empty closet wall, you'll be able to hang belts, umbrellas and handbags. If you're lucky enough to have "cubbies" in your closet, purses and hats can be stored there; otherwise, put them on your closet shelves.

You can even pick up a clear, over-the-door shoe bag for small accessories such as hosiery, scarves, jewelry and the like. Don't put shoes in the shoe bag. It may sound funny, but these bags are too flimsy and awkward for the weight of most shoes, plus they collect dirt from shoe bottoms.

9. FINAL THOUGHTS. Don't over stuff. There should be plenty of room in your closet to get an item in or out. If there's not, consider thinning out your wardrobe a little more. The goal here is quality, not quantity. Don't buy another thing to wear without first determining if you really need it. Some people like to discard something they're not really happy with anymore, for a new item.

10. CELEBRATE. Congratulations! You're done. Don't you feel great?! You deserve a special reward for your hard work. Treat yourself to dinner, or a double hot fudge sundae. Go for a massage. Rent and watch a favorite movie. Be happy. Your

Exciting Tax News for Homeowners!

2011-01-20T10:11:00.000-08:00

Great news for the New Year! The mortgage insurance tax-deductibility law has been extended
through 2011.*

Eligible borrowers with adjusted gross incomes up to $100,000 may be able to deduct
100% of the MI premiums paid in 2011.
Deductions are phased out in 10% increments for borrowers with adjusted gross incomes
between $100,000 and $109,000.

For more details, please see our Tax-Deductibility FAQs.
And with PMI, you can give your borrowers even more opportunities to save. Just run the numbers
on our PMI/FHA Calculator to see how homebuyers can save thousands with PMI over FHA.
If you have any questions, please contact me directly.

As always, trying to save you more money! Please remember we love referrals, and our Mission is treat all clients like they were family!

Why Buyer's should get off the fence and BUY Now!

2011-01-03T10:59:00.000-08:00

I normally do not copy and paste other Realtors articles, but this article really says it all in today's real estate market! Besides the rising Mortgage Rates and the stabilizing market values this article says it all...I hope you enjoy the article as much as I did!

5 Reasons Why You Should Write the Offer Today
Do you really need to write the offer today? As an experienced real estate agent, I must confirm that I have seen people lose the house of their dreams because they hesitated just one day. Yes, just one measly day. I hate that this market demands that buyers make decisions so quickly, but it is my job to let you know what the market is actually like. The last thing I ever want to do is to rush any client. But I've also seen the disappointment that can result when someone misses out on a truly exceptional home. And, in almost any kind of market a well priced desirable home will move FAST.
So, you should be aware that even if you are not willing to act swiftly, your competition for the home may be. It's pretty devastating to lose a great house because the offer did not get in fast enough, but it does happen - more often than you think. On the flip side, I have also had my clients win out because other buyers have hesitated and they did not.   Accordingly, when the house is the right house, I do encourage my clients to act swiftly.
The following are five reasons why it may be important for you to write the offer today:
1)      Avoiding a bidding war / Getting a better price. Sometimes if you get an offer in quickly, you will be able to get it accepted quickly at a slightly lower price than if you waited and the situation became a bidding war. I've seen this often with REOs (foreclosures). I've won out on many desirable REOs because my client's offer is the first offer, gets put into the computer portal that evening before the REO agent leaves the office that afternoon, and the next morning when they check their email, it is already accepted. Gone. My client is celebrating as the 10 other higher offers that poured in that evening and the next day are put aside.
2)      They just did a price reduction. When a seller does a price reduction it is highlighted for those searching for a home. In our area, an automatic email alert will be sent to buyers who are actively looking for that type of home, and the home will appear in the "hot sheet" search that most buyer's agents run first thing every morning. Even a modest price reduction can dramatically increase the attention that a listing receives. If the price is now appealing, or you think the owner will now be receptive to your offer, get your offer in quickly before someone else has the same idea.
3)      Your offer may deter other buyers. Buyers dislike bidding wars, so many will shy away from a home with an offer already on it. In our current market, buyers are expecting bidding wars on REOs; however, on short sales or traditional sales, often the presence of another offer will still make buyers and their agents shy away. Accordingly, your early offer may keep others from even bidding. (Note this does not hold true for low ball offers, if you submit a low ball offer, the listing agent will simply tell other buyer's agents that the offer they have in hand is low and it will not generally deter other buyers from bidding.)
4)      Eager can be a good thing. Sometimes buyers don't want to seem eager. They don't want to come off like they want the home too badly. However, while playing "hard to get" may be an effective strategy for some personal relationships, I don't think it translates as well into the home buying arena.   After all, most people don't spend hundreds of thousands of dollars for homes they are indifferent to, so if you write an offer today or write it tomorrow they are still going to assume that you want the home. Also an experienced listing agent will encourage a seller to take a solid offer from the most motivated buyer. Being the first to arrive conveys that you are motivated. Accordingly, writing the offer today on a well priced desirable home can indeed be a smart move.
5)      Logistics matter. An offer doesn't magically appear in front of the seller. For an REO (foreclosure), waiting until Friday to submit an offer means that your offer probably has to withstand weekend buyer traffic and interest, because the asset managers that consider those offers often don't often work weekends or holidays, or the REO listing agent may simply not input offers until Monday. In a sale where a "real" seller is responding, you can (and probably should) limit the time period that the offer can be considered to speed along getting an answer from the seller. However, how soon it will be presented or responded to will still be dependent on the situation.   If you write the offer today, and I find out the listing agent is meeting with the seller in 30 minutes, I can send it right over. If the offer is not already signed and in my hand, I won't be able to take advantage of that information. These minor details matter and, I believe sway in favor of being fast and first in many cases. I've even beat out another offer by being the first offer faxed to an out of town seller because they didn't want to pay to receive another fax the next day. The offers were about equivalent so they just accepted my clients. It happens.

To Believe or not Believe the News Reports on the Real Estate Market

2010-12-14T09:21:00.000-08:00

Every day there are 1000's of News Articles and Reports on what is happening in the Real Estate Market whether it be home sales, foreclosures, bank owned properties, or home rates. One article says,"watch out" while another says, "Now is the time to Buy!". As a Professional Realtor I could spend every waking hour reading what Economists and Reporters have to say about the Market. What should you believe? Who should you believe? What do the Real Estate Specialist believe since we are actually the ones in the trenches?

Let's break it down to the extreme basics~
1. there are a record number of homes on the Market for Sale
2. the homes currently on the market are on general priced around home price's back in the 90's~the lowest in 10-15 years. You can buy more now than many of your counter parts bought their homes for in the past several years, thus putting you in a better financial situation
3. Interest Rates are at an ALL TIME LOW! Now they are moving UP! Maybe you did miss the 4.25% but why cough at 4.75%? Most of us originally purchased our Homes in the high 9's and our Parents in the double digits~feel blessed

Will the housing prices continue to drop? Will rates go back down? Will I get a better deal if I wait alittle longer? Or will I miss the market?

I can definitely tell you this, if you buy now you will be purchasing a Home for alot less money than most people and your interest rate we will probably never see again. And while you are busy waiting what money are you losing? Yep, buying a home gives you many different tax credits that will save you thousands a year. So if the Home prices go down slightly more you may have saved some money, but lost other money while waiting. For every yin there is a yang!

Just food for thought! Stick with what we KNOW now!

Winterizing Your Home!

2010-11-16T10:37:00.000-08:00

Every Year time seems to move faster and faster. Seems like yesterday I was just planting my Flowers! Now we only have 39 Days until Christmas. Yikes! So I guess I am alittle behind in sending out my favorite tips on Winterizing your Home, but the Weather has been amazing, unless of course you live in Minnesota! So let's get a move on! One of the first thing I mention to New Home Owners is not to forget to disconnect your outside Water Hoses from the House. If left on during the Winter the outside water faucet will freeze and break. Thus when you turn on the hose for the first time next year you will flood the basement or worse. Secondly, make sure that all of your leaves are off the ground and out from underneath your bushes and scrubs. If left they will kill the lawn and your plants. Thirdly, always change your Furnace Filter~you should be doing this monthly but now a great time to remind you. You should have changed your Batteries in the Smoke Detectors the day of the time change, but if not now is the time. Fourth, people battle on this one, do you cover or not cover your A/C outside. 2 rules of thumb here~you do not want to keep all the moisture inside the Unit, however you do not want the snow sitting on the Unit to rust and wear the Unit. Therefore, I cover the Top and half way down allowing Air to circulate but blocking the snow from sitting directly on the Unit. Pretty good compromise isn't it? Fifth, nows a great time to wrap your Water Heater since the Basement tends to get cold and causes your Water Heater to run more often to keep your water at it's expected temperature. They have Water Heater Blankets for around $20-$30 dollars and in the long run save you big money! And lastly, one of my Favorite money saving tips. If you do not already have a programmable thermostat, I would install one ASAP. We program ours to lower it's temperature while we are at work and again while we are sleeping. Since we are only home very little why heat our home all day long.
There are of course many Winterizing ideas to protect your Home Life and save you money. What we like to do is investigate ways to do both, and then we keep adding them to our home over time. Both you know the Utility companies will be checking our Meters to make sure they are working!

SERIOUSLY~ Getting your Home Ready to Sell in Today's Market

2010-09-15T09:21:00.000-07:00

Being a Buyer's Specialist I have being showing homes in several different towns and I have been coming across the same situation daily. New Home Buyers are looking for almost the same thing whether in different price ranges or not. Buyer's want CLEAN, and Updated Homes with little to do. Buyers these days are generally both working to purchase a home, do not want to spend time working around their new Home, or have children and do not want to live in what they consider a mess. When we invest in Stocks, mutual funds, etc. there are yearly costs to maintain those funds. However, we as Home Owners believe that our Homes should increase in value with little or no work or updating. If you really think about it, it doesn't make much since. Picture your yearly Home maintenance as a cost of living in your Home, then consider updating each year a few items as a increase in value. I am not talking about updating everything in your Home each year, but keeping things updated being investing a little in your Home yearly. Every week there are 15-25 new Homes entering the market in different towns. Out of those 15-25 homes there will be 1-2 homes that go under contract within days. Why? Because their Clean, have great curb appeal and are updated. They bring more money and they do it fast! Buyer's actually pay over the asking price to get these homes. Agents fight over listing these homes. Does this cost tons of money- heck no! Can you do this projects over a weekend, most of them you can! Have you ever walked into a home with the 5 1/4 inch white baseboard and and Crown Molding and thought, " I would love to have that in my home but it is too costly!". Did you know that you can buy the baseboard and crown molding for the average size room for under $200? Did you know that most of the updated light fixtures I have seen I know have come from Menard's and are priced around $40.00 a piece?

I feel like I am beating a dead horse here to death, but I can not express strongly enough how much of a difference this makes when selling your Home-The current Buyer's think these items are extremely costly and have very little knowledge on changing out lights! Oh, and have I ever mentioned that these Buyer's think dirty caulk in the shower means your Home is full of Mold and that you do not bother to take care of your home at all? This is a new generation of Buyers. A New way of thinking. If you want to get the most value in your Home Sale then you need to invest in your investment-

Most importantly, I would like to share a conversation I had just last night with my Neighbor who has asked me to list their home. I offered suggestions of things to do to the home to get their Home ready and mainly to get the most money for their home. They both looked at me and said, "This is our 3rd home Sale in over 18 years, so we do not think those things really matter. The purple bedroom can be painted by the Buyer to the color of their choice." I tried several times to re-iterate the point of the changes of today's market and such. So now do I list their home for them and allow them to get frustrated with no offers and have them keep lowering their price~thus losing money, or do I refuse the listing? It's a tough position to be in at this time. They know I am the professional and I take my career very seriously, that's why they asked me to list the home for them, however they are not hearing my professional opinion. When you list your home with a Realtor, do not take offense that they know that not everyone is going to love your colors choices, etc.~the Realtor is trying to do their job. Sell your home as fast as they can, for the most amount of money for YOU!

For more ideas and suggestions on inexpensive home updates to increase your value, please feel free to give me a call at 630-674-2215

Moving Up to a Larger Home in this Complex Real Estate Market

2010-09-09T13:58:00.000-07:00

By now you might be able to tell that I am all about making wise decisions that are financially sound! Saving Money is the key! I find it fun to save money, especially when I have the time. My Niece rolled her eyes when I handed her about $200.00 of Bathroom/Cleaning necessities for College the day she was leaving and I had to brag I only spent $24.00. Hey, don't roll those eyes~you have enough Shampoo and stuff for the year, and she can spend that money on more important things like extra books! Yeah!
So when I recently had a past client mention to me that they need to move up to a larger home with more space for their growing family after the economy returns to normal and the housing prices too, I suggested he re-look at the overall picture. Yes, I know his current family home has dropped in value~thankfully they put enough money down and his income has continued to rise. However the prices of the larger homes he is looking at have also fallen. For instance, he bought his Home for 345,000 which he fixed up and brought it up to date, so right now it would probably go for 315,000-295,000 because of all of his hard work and money that he put into the home. Had they not done that the home would probably be worth 265,000. Now they are looking for bigger homes, in fact I have a gorgeous Home listed on Davane Court for 519,000. The difference between the 2 homes is approximately 200,000 in today's market. In the height of the Boom the Davane home since it is in the Mid-High Class home would have been approx. 625,000. So the difference in the boom would be almost 300,000. Thus they can save approximately 100,000 if they move up during this real estate market, not to mention buying at a much better interest rate. So if people are wondering if now is a good time to sell and get more home, contact a Real Estate Professional, contact me and let's look at your needs, current value, and such and make a Wise Financial decision. Saving Money!

To Re-Finance or To Not Re-Finance your Home

2010-08-19T15:26:00.000-07:00

OK, so let's say that you have currently purchased a new home in the past year or so and your Loan Officer got you a GREAT interest rate. Hey, any interest rate lower than when I bought my home 12 years ago is a GREAT interest rate. Maybe you financed at 5.25%, pretty cool! But now the rates are at 4.5% or 4.75%. So do you re-finance? Ask 10 different people the same question and get many different answers. Sure you would be lowering your payment 75.00-90.00 dollars a month, but is it worth the process? You will have re-financing fees of approximately 395.00 to 1700.00 depending on your previous lender, if you need another appraisal or so on. The reason you will get so many different answers is because for each person there situation is different. 1st find out how much your payment will decrease and what your re-finance costs will be. Then decide how long you are going to be staying in the home~be realistic. In this market more of us will be staying longer in our Homes than we would have in the past. Some people then decide by looking at the months it will take them to recoup their re-finance costs. I prefer to look at the amount I am saving monthly by the number of months I will be saving over. For instance 75.00 a month, staying in the home 6 more years which is 72 months. That's a saving of $5400.00. Or maybe look at shortening the term of your loan by 5 years and keeping the payment the same or alittle higher. Shorter terms apply more of your payment to principle thus increasing your savings beyond the $5400.00 dollars. Either way, saving money here is the key! Besides who doesn't like to brag about their LOW interest rate. These rates are historic!