Let's Talk Real Estate!

From Coral: Banks...Can They Help Themselves?

Back in December, I had a buyer who was interested in buying a short sale property--that is when the owner owes more than the home is now worth, can't make their payments, and is trying to get the bank to accept the sale at a loss.

The townhouse was listed for $399,999 and my purchaser offered $370K with $11K in closing assistance. We were almost instantly verbally countered by the bank, Wells Fargo, for $377K with $11K back in closing and we verbally agreed. Six very long weeks ensued of being promised we would get something in writing from the bank. Literally every day we were told a new story on why we were not getting the counter in writing, but were assured by our WF contact and the listing agent that this deal was "99% sure to go through."

My buyer and I kept an eye on the market, and eventually started looking for another house to buy. Finally around the end of the sixth week, they rejected our offer, citing some comparable sale that was over $400K. No counter offer, no bottom line, just a rejection.

My buyer has since bought another home, directly from a seller, and has been happily settled for about two months now.

I've kept track of this little townhouse ever since, and see now that it is listed as a foreclosure, with a contingent contract. Listed price: $339,150. Seven months have passed since my buyer originally wrote his offer in December. We were originally going to settle on January 21. That's five months of higher mortgage payments that the bank could have been receiving, rather than 5 months of losses, ending in a price that is sure to be around anywhere from $30K-$50K lower than what my buyer would have paid.

I am not sure what the moral of this story is, other than the banks got themselves into this mess and are having a really hard time getting themselves out. Anyone have a positive short sale experience? Please share!

The Green Corner by Michelle Sagatov

Some Things to Make your Home a Little Greener

Indoor plants: Some recent studies (including one from NASA) have shown that particular plants can help to improve your indoor air quality. Bamboo palm, Chinese evergreen, Gerbera daisies, English ivy and Peace lilies are among the list of beneficial houseplants.

Window coverings: Try using natural materials and heat reflecting window treatments. Some eco-friendly sustainable window coverings include those manufactured from high quality rapidly renewable grasses, reeds, bamboo, hemp or other cellulose fibers. When you replace curtains or blinds, keep these green choices in mind.

Low-Flow fixtures: Replace your toilets with low-flow (1.6 gallon) and dual flush toilets, and put low-flow faucets throughout your home. Just replacing a shower head can save from 3 to 28 gallons of water for a 5 minute shower!

Hot water heaters: Go with solar water systems or tankless, on-demand water heaters. The solar heaters use the sun so your energy costs are non-existent, and the tankless heaters only heat water when you need it, removing the constant energy loss associated with a standard hot water heater. Plus, you never run out of hot water.

Mattress: Naturally flame retardant wool and cotton mattresses and futons used with organic linens allow for air circulation and a healthier sleep environment. Take a look at some of the offerings the next time you're in the market for a new mattress.

Lighting: Increase natural light (let the sunshine in!), and make the switch to compact fluorescent bulbs and energy star fixtures.

Furniture: Green furniture is getting easier to find everyday. Sustainably-grown solid wood furniture with non-toxic finishes, organic fabrics and natural cushioning materials are kinder to the environment and to the health of your family, too.

Flooring: Use natural fiber area rugs in combination with non-toxic flooring materials.

Appliances: As your appliances age, replace them with Energy Star rated models. You'll be helping to save the planet, cutting your energy bills, and sometimes even getting a tax credit.

Cleaning products: The aisles of your local grocery store are filled with alternative cleaning supplies: non-toxic, fragrance-free products; and you can always look into old-fashioned (but effective) homemade methods.

From Coral: How is your Credit doing these Days?

Do you even know? Nobody's perfect. Things happen and bills go in late, get lost in the mail, eaten by the dog, what have you. But if you want to buy a house, you need to make sure those things are fixed. And not just with the person to whom you owe money, but to the three major credit reporting bureaus: Equifax, Experian and Trans Union. My FICO.com is a great place to start.

Even when you resolve an issue with a creditor, you need to make sure that they have resolved it with the credit bureaus. And if you want to buy a house, you are judged by your credit score. Yes, your income and assets matter. But if you have spotty credit history, get prepared for some very personal questions.

So, if you pay a bill late, immediately call the creditor and play nice. Beg, plead, and give all kinds of personal reasons for why it was late, promise to never do it again, and then ask them if they can please not report you to the credit bureaus. If they have already, and agree to "forgive" the late payment, you need to file a dispute with the credit bureaus.

If you have something long standing that you delayed paying, like taxes, and it's on your credit report, don't assume that once you've paid it , it has been taken off the report. Sometimes you have to ask several times.

This has happened to me personally: a credit card I had paid off was simply not removed from my credit report. It showed a full balance and a monthly payment that did not exist. I had to call the creditor and say "please take this off my credit report." And then they did.

The most important thing you should know is this: You are the only one who will look out for your credit. Check it once or twice a year and resolve any issues on it, big or small. There are almost always mistakes, and it's your job to clean them up. If you're diligent about this, then when you need for your credit to be stellar, it will be.

ANTS, ANTS, Little Tiny Black Ants!

I wanted to write something "fun" for the Blog today but little, tiny, black ants have invaded my kitchen - my life - even my dreams for the past couple of weeks.  They say it is best to write about something near and dear to produce a quality product, so, I am writing begrudgingly about ants.  On a more altruistic level; however, I am providing ammunition to you the reader, if not to totally wipe out these pesky buggers - at least to keep them somewhat at bay!!!  You won't believe this - one of the peskies just walked across my "ant" reference paper.  He rode upstairs to my computer room by my very own hand!  I squashed him and immediately went back to typing.

Here is my ant story.  I wake up one morning, go to the kitchen for my morning cuppa, and what to my amazing eyes - there are little, tiny, black ants -- the "peskies," a lot of them:  savoring the cat food, making a jungle gym out of my window sill, playing hide and seek on the kitchen floor.  If you care about what kind of ant, (I didn't as ANTS are ANTS in my mind) this website might help. OK -- first line of defense - call neighbor Mairi who had cats for years and years.  Yes, build a moat by setting the cat bowl in a bowl of water - so they drown attempting to fill their little bellies.  It worked - at least for the cat food.

But the peskies were still showing up.  I didn't want to use ant spray as it is bad for my lovable kitties:  Charlie and Lemmie.  It also is not a "green eco approach" to the problem.  I then recalled friend Rita had ants.  Her remedy - use Windex.  This also kinda works as it kills them, but their friends and family members march right back in.  My own brainstorm, use the ever-versatile "vinegar."  HHmm, again works but not for long!  As you can imagine, I was getting increasingly frustrated.

Ok, I got really serious about tackling the problem so I googled "solving ant problems."  Ahh, I am so much wiser now that I have the scientific "why" information.  Those peskies love moisture, human food (especially sugar and grease), and warmth.  I now know the unappealing spring weather has contributed to my problem.  BUT, I still have ants!  They now are swimming in the cats' water bowl, playing on my counters, and climbing up the refrigerator.  (I blame Jerry for the refrig as Oreo cookie remains on the door handle is a sure fire ant attraction!!  By the way Jerry, why are you you eating Oreos and not sharing them with me?)

I finally came across a somewhat effective method. The solution:  good, old, basic cleaning and sound food storage methods!!  So, I am Ms. Clean, daily wiping the floors, counters with soap and water, and keeping the counters free of "any and all food."  One mishap:  the unopened packaged pound cake purchased for Mother's Day strawberry shortcake stored on top of the refrigerator.  What a feast for those peskies - who would have thought they would be so clever!!  Oh, well, it saved me some calories.

The "green" answer is diligently monitoring and eliminating the conditions that contribute to infestations.  By following these tips, you can effectively reduce ant populations indoors without using toxic chemical or interfering in ants' ecological roles outdoors.  If you must use a pesticide, considering using a bait product, but they contain poison so it is crucial to always place baits out of the reach of children, pets, and wildlife.

I have to go now as it is time to check for ants!

P.S. I promise you I am really not a bad housekeeper, but I can assure you, I am a much better one than I was - at least when it comes to my kitchen!!

The Green Corner by Michelle Sagatov

Here are some tips to keep money in your pocket while you live a little Greener!

Free - Things that Cost Nothing & Save Cash

• Turn down water heater thermostats as appropriate.
• Turn off lights when leaving a room.
• Set thermostats to 68 degrees in winter when you're home, and down to 55 degrees when you go to bed or you're away. (Programmable thermostats do this automatically.)
• Use energy-saving settings on washing machines, clothes dryers, dishwashers, and refrigerators.
• Avoid wasting water, hot or cold, inside and outside your home.
• Clean your refrigerator's condenser coils once a year.
• Air-dry your clothes, when practical.
• Close heating vents in unused rooms.
• Repair leaky faucets and toilets (5% of water "use" is leakage).
• Close drapes (and windows) during sunny summer days and after sunset in the winter.

Simple and Inexpensive--Things that will Pay for Themselves in Lower Energy Bills in Less than a Year

• Install a water-saving 2.5 gallon-per-minute shower head ($15).
• Install water-efficient faucet heads for your kitchen and bathroom sinks ($2 each).
• Install a programmable thermostat ($26).
• In the attic and basement, plug the air leaks a cat could crawl through, and replace and re-putty broken window panes (about $20).
• Clean or change the air filter on your warm-air heating system during the winter and on air conditioning units in the summer ($2).
• Install an R-7 or R-11 water heater wrap ($12).
• Insulate the first three feet of hot and inlet cold water pipes ($6).
• Install a compact fluorescent light bulb in the fixture you use the most ($15).

If you keep these tips in mind and make the changes one at a time, you'll be keeping the planet a little greener, and keeping a little green in your pocket!

Allergies?? Duct Cleaning may NOT be the solution!

Allergy season has hit! Can duct cleaning minimize the allergens circulating throughout your home? Certainly, the ads want you to believe there are health and energy saving benefits. But be cautious--this might not be the answer. A thorough annual furnace and air conditioning maintenance program may be a more appropriate approach.

Unless there are specific, identifiable problems, such as mold, the evidence does not support the duct cleaners' claims. An EPA study found that "duct cleaning has never been shown to actually prevent health problems," nor do studies conclusively demonstrate that particle (dust) levels in homes increase because of dirty air ducts.

Actually, duct cleaning may do more harm -- and it is costly. The cleaning process involves using negative pressure by connecting a very large, powerful vacuum cleaner to the ductwork, sucking out loose dust and debris using a rotary brush, compressed air nozzles, or a special tool called a skipper ball. This process churns up dust and may break the duct system seals. Cost is a major consideration. A 3000 sq ft living space on 3 levels is in the range of $600-$750.

Consider other steps before hiring a duct-cleaning service. Change or upgrade your air filter and clean and maintain your heating and cooling system. Consumer Reports recommended the 3M Ultra-Allergen Reduction 1250. It has a MERV rating of 11 and costs about $16.

An annual HVAC maintenance contract may be best way to go. Duct cleaning services may not include cleaning the heating & cooling equipment (heat exchangers, cooling coils, condensate drain pans, fan motors, blades and housings). Cleaning the blower fans and evaporator coils helps the system work more efficiently and avoids dirt and mold build up. Whether you use a duct cleaning firm or an HVAC contractor, always ask if these services will be part of the regular maintenance. Checkbook magazine periodically rates AC contractors.

One caveat -- duct cleaning may be necessary if there is evidence of mold growth, infestation of insects or rodents, or substantial deposits of dust or debris, for instance if the registers were not sealed during a renovation project. If your allergies are off the chart, consult with your physician to identify the problem and suggest other remedies before considering duct cleaning. 

April = Spring = Farmer's Markets = JOY!

  I've started putting together some story ideas for our quarterly newsletter, and one thing we always include in the Spring issue is a guide to our local Farmer's Markets, that I mainly steal from the Washington Post after we fact-check their info. But this is a topic that is very dear to me.

In Falls Church (VA), we now have a year-round Farmer's Market. I've always been a huge fan of buying local produce, but the market offerings today are amazing! Sure, you can still get the freshest fruits and veges available in your area, but I believe that the impact of Boomers reinventing themselves has affected the diversity of products. At my local FM, we have bakers (of course), free-range meat and bison(!), artisan cheeses, fresh mozzarella, handmade truffles, a mushroom guy (who knew there were so many kinds of mushrooms?), crabcakes & gazpacho, empanadas, herbal soaps, honey, jams, fresh eggs, homemade pastas, flowers & plants, and even a Master Gardener Plant Clinic. All I need at the grocery store is dog food!

Chefs in the know have been touting the delights of locally grown products for since the 70's. Alice Waters of Chez Panisse in Berkeley, CA built her reputation (and her restaurant) on serving only the highest quality products only during their natural growing season. Want to make your mouth water? Take a look at her current menu. Locally, Ris Lacoste of Georgetown's 1789 restaurant has made local produce a must. And Roberto Donna, of Galileo & Bebe Trattoria fame, has a section on his website dedicated entirely to fresh local ingredients.

Between 1996 and 2006, the number of Farmer's Markets in the US almost doubled. And the interest in eating healthier crosses all lines -- racial, economic, regional. We are what we eat. While I was preparing to write this blog, I took a look at what Amazon.com is showing in "locally grown" cookbooks. Two that are going on my wish list are Ivy Manning's The Farm to Table Cookbook: The Art of Eating Locally and Myra Goodman's Food to Live By: The Earthbound Farm Organic Cookbook. Plus the foodie magazines are filled with recipes built around fresh local produce. Here's a link to Spring recipes from epicurious.com, home for both Bon Appetit and Gourmet magazines.

Find your local Farmer's Markets and start taking advantage of this tremendous resource. Not only will you be taking better care of yourself, but you'll be supporting smaller Family farms, sustainable agriculture, and your local economy. Happy shopping -- and don't forget to take your own reusable bags. You can't be too green.

It's time to Stop Renting & BUY!

Rents for U.S. apartments increased 1% in the first quarter of 2008 for the 24th consecutive quarter...that means there hasn't been a decrease since early 2002. Why do so many people rent? Right now, the soft housing market combined with tougher loan terms have combined to drive potential buyers into rental units.

Are you a renter? Maybe it's time to jump into home ownership. Here's a calculator to help you look at your specific situation -- "Buy vs. Rent." Some of the reasons to invest in a home are financial: tax breaks -- you get to deduct loan interest, property taxes & some of your purchase costs; equity -- money paid for rent is money you'll never see again, but mortgage payments let you build equity ownership interest in your home; savings -- building equity is a ready-made savings plan, and you can take up to $250,000 ($500,000 for a married couple) as gain when you sell, without paying any federal income tax.

Some other reasons to buy are predictability -- unlike rents, your fixed rate mortgage payment won't increase; freedom -- your home is yours, and you can decorate as you like and improve your home to suit your needs; and stability -- living in the same neighborhood for several years allows you to make friends, participate in your community, and keep your children in the same school system.

So take a look at your finances. Speak to a lender and decide what you can afford. Make a "wish list" of features you'd like in your own home, and then prioritize them -- your must-haves, your desires, and your dreams. Choose neighborhoods that you like. Get your credit in order & start saving with purpose (it's really easier to save when you have something specific you're saving for).

If you have any questions, we are always here to help you. And we can hook you up with lenders that can clarify the numbers for you...with no obligation. Before you know it, you, too, will be on the way to home ownership, and leaving your landlord behind.

Improve your Curb Appeal to Sell your Home

In a new study, 82% of real estate agents surveyed said buyers decline to see the interior of a home when they are not impressed by the exterior. What this means to the home seller, particularly in a tough market, is that curb appeal matters. Big Time.

Take a look at your home with a critical eye. You want it to look inviting, well-maintained, and clean.

Put away any toys & bikes, and clean up the clutter (yard ornaments, yard tools, hoses). Fill potholes in your driveway. Tidy up & weed the walkway. Paint the front door, and use a power washer on the siding, brick & deck.

Keep your lawn cut, weeded & edged, and mulch any bare ground. Trim the greenery -- trees from the bottom and foundation plantings from the top, so they don't block the windows. And wash those windows--it will make a huge difference on the inside, too.

If you don't have any flowers, plant some. Color is a good thing. Straighten the gutters, the mailbox, the fence...anything that sags. Repair any broken windows and shutters. Fix the doorbell, tighten the doorknob, oil the hinges. Add a new welcome mat.

Make sure that any potential buyers are so impressed with the outside of your home that they can't wait to see the inside. Now that's curb appeal!

Turn off your lights for Earth Hour - March 29

On March 29, 2008, at 8PM (whatever your time zone) turn off your lights for an hour - Earth Hour. You'll be joining millions of people world-wide who are making a statement about climate change.

The World Wildlife Fund created Earth Hour in Sydney, Australia just last year. Globally, 200 cities will acknowledge their concern for the planet, with more than 100 cities across North America participating. Individuals, business, governments and civic organizations are involved.

So wherever you are on Saturday night at 8PM, turn off your lights, at home or at work, with family and friends or by yourself, and let this planet know you care.