A grotesque penalty for underwater homeowners

Want to avoid this fate? Come January, you'll be getting a tax bill. (Robyn Beck/AFP Getty Images /October 29, 201

David Dayen spots a new blow for underwater homeowners that thus far has flown under the radar: the coming expiration of the Mortgage Forgiveness Debt Relief Act of 2007, scheduled for Dec. 31.

The act is a mouthful, but it's been a crucial factor in helping countless families get out from under bad mortgages. Simply put, the act relieves homeowners from having to pay taxes on any loan forgiveness they receive in a mortgage restructuring. (The maximum exemption is $2 million for a couple.) The measure was originally set to expire last Dec. 31, but it was extended another year by the fiscal cliff deal. 

The foreclosure crisis is ebbing, but the relief is still needed. Millions of families are still underwater and facing delinquency, default, and foreclosure. As Dayan notes, those who succeed in obtaining principal reductions will be getting a bill that's almost certain to be unaffordable.

As an additional irony, the act's expiration comes just as JPMorgan, one of the banks that contributed massively to the housing crisis, reaches a deal that gives it a tax break on its multibillion-dollar settlement of federal charges related to the disaster.

He suggests folding an extension of the homeowner relief act into the JPMorgan settlement, but the extension looks like something that would have to clear Congress all by its lonesome. What are the chances of that? Congress has a lot to do as the end of the year looms. Somehow the things that aren't on its agenda are all needed to help the less advantaged of society -- food stamp extensions and now mortgage relief. Come New Year's Day, we'll be asking once again: Who do the people on Capitol Hill work for?

For more information contact

Jerry Gusman

The Gusman Group

888-213-4208

jerryggroup@aol.com

6 Secrets to Selling a Home in the Fall

Most sellers won't be able to sell their homes without at least a few showings or open houses, and a buyer's decision to make an offer often comes down to how well the rooms are staged. Our favorite tip in any season: Stage your home from theoutside in. Most buyers begin their search scouting neighborhoods to see what's available. A freshly painted front door, visible house numbers, a raked lawn and clean windows are just a few keys to staging your home.
Here are five more ways to set the stage for a home sale:

1. To get house hunters to your doorstep, you'll need to set the right price. Do your owncomparative market analysis and assess what homes in your neighborhood like yours are worth.
2. Are you guessing what the labels on your microwave buttons used to say? Brand new and updated kitchen appliances are smart investments. Pepper your listing with details that buyers search for.
3. Less is more. Instead of shuffling furniture from one area of the house to another, put extra items in storage until your house is sold.
4. Red walls may be all the rage, but all buyers will see is the time and energy it will take to repaint. Neutral colors, like a blank canvas, inspire buyers to visualize color choices they'll make as owners. Watch our staging hints video.
5. Shorter days and grey skies mean you'll need to compensate for the lack of sunshine. Well-lit rooms look larger and more inviting, in photos and in person. Try these seasonal staging tips.
   
   Your turn: Aside from pulling cookies from the oven minutes before potential buyers arrive, what's your secret for a great showing? 
   
   For More Information Contact
   Jerry Gusman
   The Gusman Group
   888-213-4208
   jerryggroup@aol.com

Near LAX, a once thriving community now stuck in economic limbo

The sprawling scar of unrealized renewal has persisted in Manchester Square because of the changing priorities of politicians, legal battles and evolving visions of what should come next at LAX. Ethan Markosian, 37, a lifelong resident of Manchester Square, has witnessed its bleak transition from a modest stucco home on West 96th Street he inherited from his grandparents. "I miss the families," he says. (Allen J. Schaben / Los Angeles Times / September 13, 2013)

By Dan Weikel

October 27, 2013, 5:49 p.m.

Just north of the big hotels along bustling Century Boulevard east of LAX lie the remains of Manchester Square.

Once a thriving community with its own elementary school, the working-class neighborhood that sprang up in the postwar building boom is now an urban void of unkempt buildings, desolate streets and residential lots scraped bare where thousands used to live. Their long-gone addresses are marked by idle driveways, clusters of trees and chain-link fences that crisscross 20 square blocks.

There's no mystery here: The gradual leveling of the neighborhood is a conscious byproduct of the region's growth — the need to accommodate the expansion of Los Angeles International Airport and resolve complaints from the neighborhood about the din of aircraft noise.

But the sprawling scar of unrealized renewal has persisted for years because of the changing priorities of politicians, legal battles and evolving visions of what should come next at the nation's third-busiest airport.

After 14 years of buyouts, school grounds, a handful of homes and several rows of apartments still must be purchased. There is no agreed-upon plan indicating how or when Los Angeles World Airports, the operator of LAX, will use the land and a few parcels in nearby Belford Square, which have been assembled at a cost of $363 million and counting.

Among the scattered survivors who haven't sold out is Ethan Markosian, 37, a lifelong resident of Manchester Square, who has witnessed the bleak transition from a modest stucco home on West 96th Street he inherited from his grandparents.

The yellow and white, one-story tract house is surrounded by empty lots and brown lawns. Driveways lead nowhere and squatters in battered RVs frequently gather along the deserted side streets where almost 500 homes and apartment buildings once stood.

"I miss the families," said Markosian, sitting in his living room, where a muffled, background roar of jets landing at LAX sounded every few minutes. "It can get a little dull around Halloween and the holidays."

With Markosian was Justin Harrington, a friend since childhood whose parents sold their home to the airport years ago.

"It's been a grand waste of money," Harrington said of the amount spent buying out residents. "It's upsetting. This was a neighborhood."

The way airport officials went about taking control of Manchester Square has been a point of friction. Instead of declaring eminent domain to expeditiously condemn and buy land needed for a public purpose, the airport has dealt individually with residents who chose to sell out voluntarily rather than have their homes soundproofed free of charge.

Many departed owners say they received fair sale prices, and some have profited handsomely during strong economies. But purchases fell off after the 9/11 attacks, when air travel slumped, and again during the Great Recession as home values plummeted.

Markosian and others who have held on to their property say they find themselves stuck in economic limbo, inhabitants of a gutted neighborhood where there's only one potential buyer: the airport.

The city's interest in buying has ebbed at times, they say, and because officials are not using eminent domain, they can't sue to challenge unfair offers or recover losses in property values and rents caused by the blighted conditions.

Nancy Castles, an airport spokeswoman, said the city developed a voluntary purchase program in 1999 to replace soundproofing after a majority of Manchester Square property owners filed a petition with LAX officials. The approach, she said, has provided flexibility during the planning process and made land available for future airport projects.

Airport officials acknowledge that no plan to reuse the land has ever been finalized. During the administration of Mayor Richard Riordan, a cargo facility was discussed. Mayor James Hahn later proposed a giant transportation/check-in center, part of an ambitious LAX master plan challenged in court.

Planners are now eyeing other possibilities, such as a consolidated car rental facility, additional parking and a public transportation hub to accommodate light rail trains and a people mover to serve passenger terminals. Construction could be at least a decade away, assuming those plans proceed at all.

Markosian, who intends to stay as long as he can, recalls a time in Manchester Square when children's bicycles left on the front porch at night would still be there in the morning.

"It used to be an excellent neighborhood," he said. "There were plenty of kids and crime was low."

With no mortgage payment, Markosian says he can tolerate the blighted conditions, which have driven off neighbors who had wanted to stay in their homes.

Copyright © 2013, Los Angeles Times

For More Information Contact

Jerry Gusman

The Gusman Group

888-213-4208

jerryggroup@aol.com

Home Value Appreciation Set to Ease Over the Next Year

The recent fast-paced home price appreciation across the country led some markets to the brink of a bubble, but deceleration over the summer months has Zillow analysts breathing a sigh of relief as the bubble threat deflates.

Home value appreciation has declined steadily for three months, according to Zillow, and half of the nation’s 20 largest metros experienced negative appreciation in September.

“Far from being a negative sign, we’re relieved to see more noticeable signs of cooling in the market,” said Stan Humphries, chief economist for Zillow.

“If home values continued to rise as they have, relatively unchecked, we would almost certainly be headed into another bubble cycle, and nobody wants that,” Humphries said.

At 1.2 percent, home value appreciation in the third quarter was about half that of the second quarter, according to the U.S. Zillow Home Value Index.

Year-over-year, home values appreciated 6.4 percent, according to Zillow.

Zillow’s Home Value Index is now $163,000.

While some markets continue to struggle, a few California markets—despite having escaped the worst of the housing crisis—have experienced fast-paced price gains over the past year.

Rising prices threatened affordability in these markets as income growth lagged behind.

San Diego, California; Los Angeles, California; and San Francisco, California—all having posted monthly price gains around 3 percent a few months ago—experienced price depreciation at the end of the third quarter.

Zillow detected monthly declines of -1.2 percent in San Diego, -1.1 percent in Los Angeles, and -0.1 percent in San Francisco.

“This is more proof that the market recovery is entering a new phase, transitioning away from the bounce off the bottom we’ve been experiencing and finding a more sustainable level,” Humphries said.

“This moderation should help consumers feel more at ease in their decisions to buy and sell, and will help keep the market balanced,” he added.

While half of the 30 largest metros experienced price declines over the month, none experienced price declines over the year in September, according to Zillow.

Zillow expects annual home price appreciation to continue to ease over the next year, reaching about 3.8 percent by September of next year.

The three metros with the greatest annual home price appreciation in September were all located in California—Sacramento, California (34.1 percent), Las Vegas, California (33.3 percent), and Riverside, California (31.8 percent).

Rents rose 1.3 percent in the third quarter and 2 percent over the year in September, according to Zillow.

For more information contact

Jerry Gusman

The Gusman Group

888-213-4208

jerryggroup@aol.com

Existing-Home Sales Slip with Affordability

After reportedly reaching their highest level in nearly four years in August, existing-home sales dropped in September thanks to limited inventory and rising home prices, according to the National Association of Realtors(NAR).

Total existing-home sales—measured as completed transactions of single-family homes, townhomes, condos, and co-ops—fell 1.9 percent in September to a seasonally adjusted annual rate of 5.29 million. August’s sales were revised downward to 5.39 million.

Year-over-year, September transactions were up 10.7 percent, marking the 27th straight month of annual improvement.

Meanwhile, the national median existing-home price for all housing types was $199,200, up 11.7 percent—the 10th consecutive month of double-digit year-over-year gains.

The association says September’s drop in sales wasn’t surprising, especially given the ongoing upward trend in prices.

“Affordability has fallen to a five-year low as home price increases easily outpaced income growth,” said NAR chief economist Lawrence Yun. “Expected rising mortgage interest rates will further lower affordability in upcoming months. Next month we may see some delays associated with the government shutdown.”

According to NAR, data from its listing site, Realtor.com, shows the strongest yearly increases in listing price were in the Detroit area (+44.6 percent), Las Vegas (+30.7 percent), and Sacramento (+28.9 percent).

Total housing inventory was flat at 2.21 million available existing homes for sale, representing a 5.0 month supply compared to 4.9 months in August. Unsold inventory was

1.8 percent above September 2012, when there was a 5.4 month supply. (Months’ supply is calculated based on the current sales pace.)

Distressed homes—foreclosures and short sales—made up 14 percent of September sales, up from 12 percent in August (which was the lowest share since monthly tracking began in October 2008). Nine percent of September sales were foreclosures (with an average discount of 16 percent below market value), while 5 percent were short sales (with an average discount of 12 percent).

The amount of first-time buyers was unchanged from August, with that group accounting for 28 percent of existing-home purchases. Last year, that share was 32 percent. Investors—who usually pay in cash—purchased 19 percent of homes in September, up from 17 percent in August and 18 percent in September 2012.

At the regional level, existing-home sales fell in all regions except the West, where they increased 1.6 percent month-over-month and 7.8 percent year-over-year to a pace of 1.25 million.

In the Northeast, sales declined 2.8 percent to an annual rate of 690,000, coming up 15.0 percent ahead of September 2012. Existing-home sales in the Midwest fell 5.3 percent from August to a pace of 1.25 million, up 12.6 percent year-over-year. Finally, in the South, sales dipped 1.4 percent to an annual level of 2.10 million, 9.9 percent above September 2012.

Median prices increased in all four regions.

Looking ahead to October’s report, NAR expects to see another slowdown in sales as a result of the government shutdown that lasted through the first half of the month.

“Just one impact of the recent government shutdown—delays in tax transcripts needed for approval of mortgage loans—put a monkey wrench in the transaction process and could negatively impact sales closings in next month’s report,” said NAR president Gary Thomas.Thomas also said complications arising from flood insurance concerns may be reflected in the next report as some regions—particularly Colorado—struggle to rebuild.

Realtors report that approximately 10 percent of transactions in September were located in flood zones, and that nearly one out of 10 of those transactions were delayed or canceled due to concerns over rising insurance rates,” he said.

For More information contact 

Jerry Gusman

The Gusman Group

888-213-4208

For Sale: 2BR/2BA Single Family House in San Bernardino, CA, $119,999

For Sale: 2BR/2BA Single Family House in San Bernardino, CA, $119,999

Is the housing market making a major shift?

The real estate market has been one of the strongest pillars of the economy following the greatest financial downturn since the Great Depression. Amid low interest rates and a great deal of intervention from policymakers, home buyers received an added incentive to purchase a home. Meanwhile, sellers enjoyed low inventory levels and rising prices. However, a new survey finds that sellers might be losing their control on the market.

In the third quarter, 72% of real estate agents said now is a good time to sell a home, down from 86% in the previous quarter, and the first drop of the year, according to Redfin, an online estate brokerage. On the other side of the closing table, 55% of agents said now is a good time to buy, up from 46% at the beginning of the year. Thirty percent of agents also said that sellers are having difficulties getting their home to appraise for the contract purchase amount.

"At the end of this summer, you could smell the rubber on the road from buyers hitting the brakes," said Redfin San Diego agent Sara Fischer. "The cutthroat competition and frenzied demand has relaxed considerably."

Although interest rates are still low on a historical basis, the recent rise in home prices is affecting home affordability. In the second quarter, 69.3% of new and existing homes sold were affordable to families earning the U.S. median income of $64,400, according to the National Association of Home Builders. That is down from 73.7% in the first quarter and is the first reading below 70% since late 2008.

In August, home prices across the nation increased on a year-over-year basis for the 18th consecutive month. According to CoreLogic, a property information and analytics provider, home prices jumped 12.4% in August from a year earlier. In fact, home prices have logged double-digit gains for seven straight months. Home prices are still 17.1% below their bubble peak in April 2006, but every state posted an annual increase in August.

GOLD: Good for the global economy?

Going forward, the survey from Redfin finds that only 5% of agents believe home prices will rise a lot in the next 12 months, down from 44% at the beginning of the year. Meanwhile, 11% of agents believe prices will drop a little over the next year, compared to only 4% in the second quarter.

For More Information Contact

Jerry Gusman

The Gusman Group

888-213-4208

One Of The Best Investments You Can Make If You Want To Sell Your Home

Selling a house isn't easy, even with the best professionals by your side.  As if the sales process weren't stressful enough....the preparation of a home, prior to listing, is overwhelming to most sellers.

Preparation is key to a successful sale.   Homes that are listed prematurely do not show well, spend more time on the market, and see multiple price reductions before receiving an offer.

One of the best investments you can make if you want to sell your home, is an investment of time....time prepacking.  Packing can't be avoided... you're selling a house, not the contents.

Pack before listing, and you not only get the job done, you also increase the visual appeal of the house!

• CLOSETS  Prepack off-season clothing, shoes, and accessories and make your closets appear larger.
• KITCHEN  Prepack all dishes and glassware that's not used daily and make cabinets appear more spacious.
• COLLECTIONS   Prepack so buyers are looking at positive features of the house, not your memorabilia. 
• PHOTOGRAPHS  Prepack evidence of who actually lives there so buyers can picture the home as theirs.
• VALUABLES  Don't risk having something of value get damaged or stolen.  

 

Pack it up and get it out so potential buyers can see the features of your home and visualize their new life there.

Pack it up and get it out so you will have less to do in the final weeks before moving day.

Pack it up and get rid of it so you can start fresh in your new home!  

 Pack it sooner, instead of later, and sell your house faster!

For More Information Contact

Jerry Gusman

The Gusman Group

(888) 213-4208

Analyst forecasts a 20% drop in home prices

Mark Hanson, a Menlo Park, Calif., real estate analyst, blogger and founder of consultancy firm Hanson Advisers, may be the only bear left in the housing market, predicting a decline of 20% in housing prices in the next 12 months.

Hanson says private-equity firms caused about 50 percent of the price appreciation in cities like Phoenix and Las Vegas, and generally overpaid by 10 percent to 20 percent, according to his calculations.

With gains of more than 35 percent since the crash for properties in Las Vegas, Phoenix and other of the hardest-hit regions, these vultures will begin to lose interest, he figures. 

However, he does not stand completely alone.

Less bearish real estate experts such as Stan Humphries, chief economist at Zillow and a Hanson fan, also see signs of froth. 

"There’s a strong distinction between a normal slowdown and the wheels coming off the housing recovery," says Humphries. "That's where I depart from Mark's take."

For more information Contact
Jerry Gusman
The Gusman Group
888-213-4208
jerryggroup@aol.com  

HUD Announces New Short Sale Requirements

Effective October 1, 2013, HUD has announced the following changes to their Federal Housing Administration (FHA) short sale requirements.

To be eligible, one must successfully complete a short sale under the FHA short sale program. The borrowers must meet the following requirements:
1) They cannot list the property with or sell it to anyone with whom they are related or have a close personal or business relationship. In legal terms, it must be an “arm’s-length” transaction. 2) Any knowing violation of the arm’s-length requirement may be a violation of federal law. 3)
Your mortgage must be in default, on the date the short sale transaction closes.

Before closing, any additional liens against the property must be released. A lien holder who demands a payment to release its lien must submit a written statement, and an agreement to release the lien if that amount is paid.

For a standard preforeclosure sale, servicers must use a Deficit Income Test (DIT) to determine a homeowner’s financial hardship. The IRS Collection Financial Standards is used to verify homeowners expenses not reflected in their credit report. Only owner-occupied properties are eligible for the standard preforeclosure sale.

Homeowners eligible for a streamlined short sale may not be required to submit financial information or have a financial hardship. Principal residences, second homes, investment properties, and service members who have received Permanent Change of Station (PCS) Orders are potentially eligible.

The appraisal of one’s property should be completed within approximately ten business days. After the appraisal, the short sale file will be updated and prepared for review. In some cases, approval may be required by the investor and/or FHA, which may take more time.

As a new condition, one might be required to make a final payment (sometimes called a cash contribution) before closing. This payment will reduce the deficiency balance.

If one is an owner-occupant, acting in good faith, and successfully selling one’s property, one may be eligible for an incentive of up to $3,000.

The revised FHA short sale addendum must be signed and dated by all parties. Under this addendum, all parties agree that the subject property must be sold through an arm’s-length transaction. An arm’s-length transaction is defined as a short sale between two unrelated parties that is characterized by a selling price and other conditions that would prevail in an open market environment. Also, no hidden terms or special understandings can exist between any of the parties (e.g., buyer, seller, appraiser, sales agent, closing agent, and mortgagee) involved in the transaction.

For more information contact

Jerry Gusman

The Gusman Group

888-213-4208

FHA financing 1 year after Short Sale

The Federal Housing Administration (FHA) recently announced a significant mortgage rule change that will allow some borrowers to get a new FHA loan just one year after a foreclosure, short sale, deed-in-lieu or bankruptcy as part of the new "Back to Work - Extenuating Circumstances" program.

To be eligible for the program, borrowers must be able to prove that a major economic event such as a job loss or severe reduction in income (20 percent for at least six months) was the main catalyst in losing their home. In addition, borrowers will need to show that their income has since fully recovered, and their credit score must be satisfactory. Finally, potential borrowers will need to complete a one-hour one-on-one housing counseling session. Borrowers will need to meet all other FHA eligibility criteria.

To be deemed with "satisfactory credit," borrowers will need to meet the following guidelines for a minimum of 12 months:

• No history of delinquency on rental housing payment.
• No more than one 30-day late payment due to other creditors.
• No collection accounts/court records reporting (other than medical and/or identity theft).

Prior to the major economic event, the borrower's credit must have been satisfactory and in good standing.

However, even with the new rules, whether a particular borrower actually gets financing is ultimately at the discretion of individual lenders - even if the FHA rules say they can lend, individual lender rules could be significantly tighter, prohibiting them from lending below certain preset standards.

For more information contact

Jerry Gusman

The Gusman Group

888-213-4208

What Does the Government Shutdown Mean for the Housing Market?

As the federal government ground to a halt Tuesday, the question of how the shutdown will affect the housing market remains at the front of everyone’s mind. How will the market react? The answer: it depends.

Mortgages will continue to proceed through the usual government channels, although some delays are expected.

More than 90 percent of the residential housing market depends on the government and/or the GSEs for underwriting, insurance, and funding. Mortgages controlled by Fannie Mae and Freddie Mac will not be affected because they are funded by fees from lenders rather than federal appropriations.

Some concern has been raised about how the employment verification process would proceed in the event of an IRS shutdown. Freddie Mac issued the following clarification to lenders Tuesday: “If a loan is made to a government employee and the closing date is during the shutdown period, you do not need to obtain employment verification or re-verification prior to closing if a government office providing the verification is not able to do so as a result of the temporary shutdown. You are also not required to obtain employment verification or re-verification for such loans after the shutdown ends. This exception does not apply to income verification or any other requirements…We only require IRS Form 4506-T to be signed by the borrower prior to closing. We do not require that 4506-T be processed by IRS prior to closing. However, we require that the actual 4506-T information is obtained as part of the Seller’s in-house QC program.”

Most economists agreed that the broader effects of the shutdown should be minimal, assuming that the shutdown is short-lived.

“The most significant immediate term impact of the government shutdown is whether it rattles households and businesses by impacting uncertainty and confidence. With the shutdown only several hours old, it is too early to tell.

So far the financial markets have not reacted wildly, which would get everyone’s attention,” said Peter Muoio, chief economist with Auction.com Research. “All that said, the primary potential transmission mechanism is through uncertainty. So far this year, the decreased levels of uncertainty have supported stronger economic growth and, therefore, demand for both residential and commercial real estate. We must gauge the shutdown’s impact on uncertainty and stress that a quick solution would clearly have less impact than a prolonged fight.” 

The securities division of Wells Fargo issued a report to investors predicting the broad economic effects of a shutdown would be “minor.”

Our expectation is that our fourth quarter GDP call would be reduced by 0.0-0.5 percent…There would be negative effects on government spending and reduced consumption from the furloughed workers,” the report said. “Historically, following a government shutdown, the federal government boosts consumption and federal workers’ payroll is restored. The primary reason for the minimal economic impact during this shutdown stems from the fact that most of the negative effects and the subsequent positive bounce back effects are currently expected to be contained within the same quarter of growth.”

Research firm Capital Economics predicted that the effect of a shutdown would be minimal provided that it doesn’t presage a fight over the upcoming debt ceiling increase.

“Over a whole year, the cost would be equivalent to about 0.3% of GDP, which is manageable,” Capital Economics said in an update. “If the current shutdown drags on, however, then once the debt ceiling limit begins to bite in the second half of this month, the economic and market impact would become much greater. In all likelihood, the Treasury would not have enough cash on hand to make a scheduled Social Security payment of nearly $25 billion on November 1. It would also be unable to meet a debt interest payment of roughly $30 billion that will fall due on November 15, potentially triggering a technical default.”

The communications department at HUD shut down Tuesday morning, issuing the following statement: “MostHUD programs have been temporarily interrupted and most HUD employees have been told they cannot work. We will not be able to check this account or respond to questions during the shutdown.”

The Department of Veterans Affairs will continue its loan guarantee program, although there could be some delays. The Department of Agriculture will cease its mortgage financing activity.

For more information contact

Jerry Gusman

The Gusman Group

888-213-4208

Selling Your Home? Make It More Appealing to Buyers

You've made the decision to sell your home - now you want to position yourself for a quick and successful sale. What's the most important thing you can do to entice buyers?
"The most important thing you can do is to make your home look welcoming when people drive by," says Kimber Powell, Realtor and sales manager in Altoona, Iowa.
"You want to invite them in. Make sure your front door looks nice. Trim and landscape your yard. Accent your entryway with a new door mat and pots of flowers that contrast with the color of your home," she says.
Follow these tips to position your house for a successful sale:
Enhance Curb Appeal
A well-maintained house appeals to more buyers and can sell faster and may sell for a higher price, according to Realtor.com.
Maximize your home's exterior appearance. Keep the lawn and landscaping edged, cut and watered. Inspect doors, windows, trim, foundation and siding for peeling paint. Repaint and replace items as needed. Clean out gutters and replace missing caulk and shingles.
Declutter Inside
Make your home look bigger by removing clutter and storing personal items and extra furniture before prospective buyers arrive. Make repairs where needed, Powell advises.
"Repairs are ongoing maintenance needs that show your home has been well-cared-for and kept up-to-date," she says. "Most potential buyers want turn-key homes that are easy to move into."
Repaint dingy or stained walls with a neutral shade of paint. Repair cracks or holes in walls, ceilings, tile and woodwork. Replace broken items and consider updating worn-out cabinet knobs, dated curtains and battered bath and kitchen hardware.
Show Lifestyle Possibilities
Create a lifestyle story to help buyers envision themselves living in your home. Have a small kitchen but a big deck? Focus on outdoor entertaining by adding lights, comfy cushions and showcasing grilling areas, Powell recommends. If you love your neighborhood, highlight a front porch with wicker furniture and window boxes.
"You want to show buyers the ways they can use the entire home and yard," Powell says. "If you don't have outdoor furniture or decorations, work with a stager to borrow those items." Or consider borrowing items from friends or family to get your home staged for sale.
Highlight Quality Brands
If your home features or you've replaced items with high-quality brands, include their names in your home's sell sheet, Powell says.
"People are very conscious of name brands and high-quality products. They also want to know about energy-saving benefits and warranties that may transfer to them," she says.
Windows, Door Replacement
Projects like window and door replacements can recoup more than 70 percent of their cost at resale, according to the National Association of Realtors and Remodeling magazine's 2013 Remodeling Cost vs. Value Report.
Whether you're preparing your home to sell, or updating it to live in longer, Pella offers low-maintenance, energy-efficient vinyl, wood, and fiberglass replacement windows and doors that can help improve your home's curb appeal, and help lower utility bills.
"Stylish exterior doors that look like wood with the minimal maintenance of fiberglass are popular replacement options," says Kathy Krafka Harkema, Pella spokesperson. "Plus, fiberglass offers exceptional energy efficiency, weather resistance and outstanding durability."

For more information contact
Jerry Gusman
The Gusman Group
888-213-4208

Another 8.3 Million Underwater Homeowners on Track to Resurface Before 2015

While 10.7 million residential homeowners nationwide owe at least 25 percent or more on their mortgages than their properties are worth, another 8.3 million homeowners are either slightly underwater or slightly above water, putting them on track to have enough equity to sell sometime in the next 15 months — without resorting to a short sale.
The 8.3 million include homeowners with a loan to value (LTV) ratio from 90 to 110 percent, meaning they have between 10 percent positive equity and 10 percent negative equity. These homeowners represented 18 percent of all U.S. homeowners with a mortgage as of the beginning of September.
The 10.7 million residential properties with an LTV ratio of at least 125 percent represented 23 percent of U.S. residential properties with a mortgage — down from 11.3 million deeply underwater properties representing 26 percent of all residential properties with a mortgage in May 2013 and down from 12.5 million deeply underwater properties representing 28 percent of all residential properties with a mortgage in September 2012.
“Steadily rising home prices are lifting all boats in this housing market and should spill over into more inventory of homes for sale in the coming months,” says Daren Blomquist, vice president at RealtyTrac. “Homeowners who already have ample equity are quickly building on that equity, while the 8.3 million homeowners on the fence with little or no equity are on track to regain enough equity to sell before 2015 if home prices continue to increase at the rate of 1.33 percent per month that they have since bottoming out in March 2012.”
“In addition, nearly one in four homeowners in foreclosure has at least some equity, giving them a better chance to avoid foreclosure without resorting to a short sale — assuming they realize they have equity and don’t miss the opportunity to leverage that equity,” Blomquist added. “Even homeowners deeply underwater have reason for hope, with about 150,000 each month rising past the 25 percent negative equity milestone — although it will certainly take years rather than months before most of those homeowners have enough equity to sell other than via short sale.”
Other high-level findings from the report:
• More than 126,000 properties in the foreclosure process nationwide had an LTV of 100 percent or lower in September, representing 24 percent of all homes in the foreclosure process. States with the highest percentage of foreclosures with equity included Oklahoma (54 percent), Hawaii (51 percent), New York (47 percent), and Texas (46 percent).
• States with the highest percentage of deeply underwater homes (LTV of 125 percent or higher) included Nevada (46 percent), Illinois (40 percent), Florida (40 percent), Michigan (38 percent), Rhode Island (34 percent), and Ohio (31 percent).
• Metro markets with the highest percentage of homes with resurfacing equity (LTV from 90 to 110 percent) included Omaha, Neb., (29 percent), Colorado Springs, Colo., (29 percent), Tulsa, Okla., (29 percent), Little Rock, Ark., (28 percent), and Raleigh, N.C. (28 percent).
• Nationwide 7.4 million homeowners with a mortgage had 50 percent equity or more, representing 16 percent of all homeowners with a mortgage. Metro markets with the highest percentage of  homeowners with at least 50 percent equity included Honolulu (36 percent), San Jose, Calif., (35 percent), Poughkeepsie, N.Y. (30 percent), Pittsburgh (29 percent), San Francisco (29 percent), and New York (27 percent).

For more information contact
Jerry Gusman
The Gusman Group
888-213-4208