Posted by Annalisa Burgos | October 30, 2009
It’s hard enough to sell a house in this market, but try selling a haunted house! It’s a challenge but not impossible. HGTV’s FrontDoor offers tips and advice to get the job done.
If you’re a buyer looking for the ultimate bargain, a haunted house or other stigmatized property may be right for you — if you can deal with the home’s gruesome past or unexplainable issues.
If the idea of living in a haunted house scares you, there are plenty of haunted houses to visit. Whether it’s the creepy abandoned Victorian at the end of your block or the fancy haunted house attraction you pay to enter, be safe and have a happy Halloween!
Posted by Annalisa Burgos | October 30, 2009
For those of you who’ll be house hunting as well as trick-or-treating this Halloween weekend, your friends at FrontDoor.com have come up with some tips for foreclosure buyers. We call them:
And check out these other Halloween-themed homebuying and selling tips on FrontDoor.com:
Posted by Annalisa Burgos | October 7, 2009
The housing market can be very scary. Just ask any homebuyer or seller — a seemingly normal situation can easily turn into a nightmare.
In this month’s Top 10, read 10 hair-raising real estate horror stories, from showings gone awry to frightening HOAs to houses plagued with unwelcome guests and ghastly pasts.
Plus, get tips on how to avoid these nightmares and ensure your homebuying or selling experience is drama free.
Happy Halloween!
Posted by Annalisa Burgos | September 24, 2009
The economist behind one of the most widely watched measures of the residential housing market is not sure where home prices are headed.
I caught up with Robert Shiller (of the Standard & Poor’s/Case-Shiller Home Price Indices) at the “Distressed Real Estate Summit” in New York City, where he shared his insight with more than 700 real estate developers, investors and other professionals. Hear what he has to say:
Shiller told attendees that current government efforts seem “like a big bailout,” and rather, we should focus on setting up “the framework for new economic systems” and “create a liquid market for real estate.”
Shiller is founder and chief economist of investment management firm MacroMarkets and co-developed the methodology behind the S&P/Case-Shiller Home Price Indices, which track changes in home prices in 20 metropolitan regions across the United States. Each month, investors look to the data for insight into the housing market.
Posted by Annalisa Burgos | September 16, 2009
If you (or your spouse) haven’t owned real estate in the past three years and you’re in a good position to buy a home, it’s time to get your butt in gear!
The deadline to take advantage of the $8,000 tax credit for first-time buyers is midnight on Nov. 30, and that’s coming up sooner than you think.
READ: You have to close on the home purchase by Nov. 30.
The closing process has been known to take at least 30 days, and now with stricter lending standards and a more complicated appraisal process, delays can be expected. And tack on even more time if you’re dealing with a foreclosure or short sale.
So since you’re trying to close by Nov. 30, and Thanksgiving is the week before, plan to have a signed contract and begin the closing process no later than the end of October, unless you’re an all-cash buyer and don’t need financing.
And remember you don’t have to wait until you file your taxes to get your credit. Ask your mortgage broker or real estate professional about programs that will let you apply the credit to your closing costs now.
For most of the year, first time buyers looking for “bargains” (i.e. distress properties) were the main driver of home sales. Should that group go away with the end of the tax credit, the industry could be in for hard times in 2010.
That’s why the National Association of Realtors is lobbying to have Congress extend the credit and real estate agents are creating a sense of urgency (ex: Prudential Connecticut Realty countdown). And you’ve probably seen all the TV commercials encouraging people to buy.
So what are you waiting for?
Of course, if Congress decides to extend it, then all’s good. But with all the focus on healthcare reform, that’s no guarantee.
Posted by Annalisa Burgos | September 8, 2009
FrontDoor insider Rick Sharga, SVP of foreclosure data provider RealtyTrac, offers valuable advice in this guest blog post:
“Foreclosure properties have always been an area of keen interest to real estate investors. Over the years, homes in foreclosure and those already repossessed by the banks have been hidden gems, most often the purview of seasoned investors with “insider” contacts who have given them early notice of upcoming deals.
And the deals have been significant; it’s not unusual to hear of foreclosure and bank-owned homes selling for discounts of 50 percent or more compared to prior sales.
With the advent of the Internet, companies like RealtyTrac have made finding foreclosure properties much easier. Today, virtually anyone with an Internet connection and a valid credit card can start searching for, analyzing and ultimately buying properties in all stages of foreclosure.
The value proposition is compelling: home prices have fallen between 20 and 30 percent in most markets; foreclosure homes tend to sell at even lower prices; and mortgage rates continue to bump along near historic lows. Finding a home that represents a great deal isn’t nearly as difficult as it once was.
Turning that deal into an investment with a high rate of return, however, is as challenging as ever.
In the early part of the decade, foreclosure investors tended to be “flippers.” Neither dolphins nor pizza makers, these flippers would buy homes at a discount and resell them at a profit within a very short period of time.
Foreclosures were prime properties for this pastime. Often, flippers would work directly with the distressed homeowner and lender, leveraging the equity in the home to negotiate a purchase price that covered the bank debt while still allowing the investor to buy the property at a discount. Other times, the investor would work with the bank to purchase, rehab and resell bank-owned properties. This activity gained such momentum that it spawned several TV series, and, fueled by continually appreciating home prices, drew more and more inexperienced investors into the mix, often with disastrous results.
Today’s investor is much more likely to be a landlord than a flipper. While we probably won’t see this turn into a craze punctuated by a new hit show (“Rent this house!”), we are likely to see a more stable, more realistic and ultimately more successful approach to real estate investing.
Apartment occupancy rates often drop during foreclosure cycles, as homes become available to rent at equivalent (or better) prices. There’s a market for rental homes as well, since over 1.5 million property owners have lost their homes to foreclosure since the beginning of 2006. Rental units provide ongoing cash flow to investors. And while there’s usually a long-term appreciation in the value of the properties, which many owners will profit from in subsequent sales, the cash flow helps the investors ride out any short-term price depreciation.
Buying a foreclosure property at a deep discount, doing some repairs, finding a good tenant and holding the property as a long-term investment is a lot of work, isn’t as sexy as flipping a property, and certainly isn’t a “get rich quick” formula. But for investors who are smart enough and willing to work hard enough, buying to rent can be a much safer, less volatile approach to successful real estate profits.”
Check out FrontDoor.com for more real estate tips and advice:
Posted by Annalisa Burgos | August 20, 2009
I’m in the Seattle area trying to take a couple days of R&R, but wherever I go, I always get sucked back into work. And it’s not just the daily responsibilities of managing FrontDoor’s content.
As a real estate editor and licensed real estate salesperson, friends and colleagues often ask me what I think about the market and whether a property they like is actually a deal.
Sometimes I feel like Howie Mandel on “Deal or No Deal,” except on my game show, instead of opening random suitcases looking to eliminate low dollar amounts, homebuyers are looking through houses hoping to eliminate potential money pits.
They weigh the pros and cons of holding on to their current property — their “suitcase” if you will — or taking advantage of what they think is the “ultimate deal.”
To them, I’m the quintessential expert, on topics like home value and foreclosures, because I don’t stand to benefit from the purchase the way their official agent will and they know I’ll give them a straightforward, honest opinion.
So when my Seattle friends showed me a bank-owned property they were interested in, we talked about what needed to be fixed and how much they would need to put into the property to get it into move-in condition.
The exercise proved helpful. If I posed Howie’s question “Deal or no deal?,” the answer would be a resounding “no deal.”
Buying a home? Try these resources from FrontDoor.com:
Posted by Annalisa Burgos | July 10, 2009
In this week’s vlog, I talk to real estate broker and attorney Tara-Nicholle Nelson about how homeowners who are struggling to make their mortgage payments can get their loans modified and avoid foreclosure.
You’ve heard about extending the loan, converting an ARM to a fixed rate mortgage, and reducing the interest rate, but what about loan forgiveness? Will the lender write off all or part of your loan? Do you need to hire a company or can you work directly with your lender and do it yourself?
Get more tips and advice about the loan modification process:
Posted by Annalisa Burgos | June 30, 2009
During the real estate boom, no one really cared about staging — the act of preparing a home before putting it on the market so it can sell quickly and for top dollar. Back then, homes practically sold themselves. Sellers would get their asking price (or more in many cases) even if the place was dirty or filled with clutter.
Today, staging is the new buzz word. It’s become especially important in this highly competitive market, where traditional sellers are up against foreclosures and short sales (so-called distressed properties) that can offer rock-bottom prices for bargain hunters. And that’s what today’s buyers crave — a bargain.
But a nicely staged property offers that “move-in ready” appeal that buyers are willing to pay a bit more for. They want to see that the current owner is taking care of the home, not allowing it to fall apart, like the abandoned foreclosure down the street. If they see a fixer-upper, they’ll offer a fixer-upper price.
Luckily, you don’t have to spend hundreds of dollars on home improvements or hire a professional stager to reap the benefits of a staged home. There are simple, inexpensive things you can do, including:
1) Clear out the clutter. If you don’t use it, sell it, give it away or throw it out. Hold a garage sale, donate it to Goodwill or post it on Craigslist. People are always looking for free or cheap stuff. If you simply can’t part with something that’s taking up a lot of space, like your winter clothes, pack it up and put it in storage.
2) Clean and repair. Cleaniness is next to godliness, especially in real estate. And be sure to fix what’s broken, including a squeaky cabinet door, leaky faucet or a torn screen door. If you like, replace outdated hardware and fixtures. They’re inexpensive and add that shiny new feel buyers love.
3) Make room and lighten up. Remove extra furniture or use a smaller couch or bed if they’re too big. Cramped rooms give buyers the impression that your house is small and lacks space. Store some of your clothes so your closets look bigger. Choose window treatments and lighting that brighten each room.
We’ve got tons more staging advice on FrontDoor.com. Staging Diva and FrontDoor Insider Debra Gould shares her top staging tips, including replacing family photos and personal items with tasteful art.
And if you have a little bit of a budget, get inspired by the experts on HGTV’s hit show “Designed to Sell,” who find creative ways to turn a slow mover into a showpiece for under $2,000.
You can see the dramatic makeovers in FrontDoor’s Designed to Sell: Room by Room Staging Guide. Check out these before and after pictures. As you can see, staging doesn’t just refer to the inside of your home. See what a difference curb appeal can make?
We just added 21 new videos and slideshows, so you get more cool ideas to bring out the best in your home!
Posted by Annalisa Burgos | June 26, 2009
Everyone dreams of their perfect home, but very few get the chance to actually live in it.
The King of Pop was one of them.
In 1987, Michael Jackson shelled out $17 million for more than 2,500 acres in Los Olivos, Calif. (about 125 miles north of Los Angeles).
He designed his dream home, complete with 22 buildings, including a Tudor-style mansion, a zoo and an amusement park with a Ferris wheel, bumper cars and other rides. The Neverland Ranch — named after the island in “Peter Pan” where children never grow up — was estimated to be worth more than $100 million.
But the dream home later became a nightmare, after Jackson faced charges of molesting a boy on the property. He moved out of Neverland in 2005, and the neglected estate went into disrepair.
By 2008, Jackson had defaulted on the mortgage and faced foreclosure if he failed to pay back a $24.5 million loan. An investment company stepped in at the last minute and bought some of the property rights for $35 million, with Jackson maintaining partial ownership.
Now with the legendary artist’s death, what will become of the Neverland Ranch? Personally, I hope the owners will fix up the estate and turn it into a museum and memorial to MJ, similar to what Graceland became for Elvis Presley.
Because Neverland Ranch was always shrouded in mystery, opening it to the public would allow fans to connect with the pop icon at a new level. After all, what better way to get to know a person than by seeing their home.
And I’m sure ticket sales would more than pay off MJ’s massive debt.
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