Connie On Fox Business "Bulls & Bears" with Dave Asman Dec 24, 2008

Connie appeared on Fox Business "Bulls & Bears" with anchor Dave Asman to discuss the recent increase in re-financing due to the most recent lowering of rates. Will this help housing? Connie De Groot and Greg Rand of New York were once again asked to comment on this issue. You can view the entire segment by visiting http://www.conniedegroot.com/ and click on "Connie on Tv".

Comment's On Connie's Blog Dec 5, 2008

"I like the ideas as they would certainly encourage people to buy now and create confidence in the market which currently is not there. The people who are now in the market to buy are unsure of what might be ahead for housing prices and rates, and this would be a way for them to hedge against any potential losses."
Jeff Sclesinger-Priority Financial Network
818-385-1970
http://www.jeffschlesinger.com/)

"It would work in theory but there are other factors that would recreate the same mess we are already in without any regulation."
John T.

"Capital gains idea is great. There also has to be a happy medium between handing out credit to everyone, and the current locked upsituation."
Ed R.

Treasury's Low-Rate Mortgage Plan- Would This Help Housing?

Reducing rates will increase demand but lenders need to relax their guidelines or many ready willing buyers will be turned away. An attractive rate would get some buyers off the fence but with most buyers thinking tomorrow's prices will be better, I think additional incentives are needed. Also, if buyers think lower rates will be around for awhile then there will be no real urgency to buy today.

Here are my suggestions to GET BUYERS TO BUY NOW:

Lower mortgage rates but make it for a limited period of time.

Eliminate all capital gains on all existing homes purchased within the next 12months under 1 million dollars for as long as they own the property and withno limit on the number of purchases.
All buyers receive an investment tax credit equal to 10 percent oftheir down payment up to 20 percent down. This concept would immediately create additional demand and help stabilize the decline in housing prices.

The Capital Gains exemption would cost taxpayers almost nothing and for 1 trillion in sales,the investment tax credit would cost 20 billion dollars. This is a very small amount compared to the numbers we hear about every day.

This incentive will offer a future reward to buyers who buy now. It will offset the risks of buying today when many think things will continueto decline tomorrow and it will help all home owners and builders by helping to set a floor on housing prices. Increasing demand will help stabilize prices and help preserve homeowner equity and keep more loans from defaulting.

Home Builders Make Plea for Federal Aid

I went on Fox Business a few weeks ago to speak about 2 ways I believed would help increase demand in housing. Although my idea will not solve every problem demand will help set a floor on housing and begin to effect all those that are dependent on housing. The idea was to eliminate capital gains on any home purchased within the next 12 months and to also offer an investment tax credit of 10 percent of any down payment up to a 20 percent down payment. This would not require a person to have the home be their primary residence and would not limit the number of purchases or length of ownership.

This article just came out in the Wall Street Journal today. I have only posted parts of that article.

NOVEMBER 24, 2008

Wall Street Journal
By NICK TIMIRAOS


The builders' lobby is ramping up its sales pitch for a $250 billion stimulus package called "Fix Housing First," arguing that financial markets won't recover until home prices stop falling. They are calling for a generous tax credit for home purchases and a federal subsidy that would lower a homeowner's mortgage rate.

Congress resisted a similar effort to pass a larger tax credit earlier this year, instead creating a $7,500 credit for new-home purchases that had to be paid back over 15 years, effectively extending an interest-free loan.

The homebuilders' proposal would offer home buyers a tax credit equal to 10% of the home's value, capping it at $22,000, nearly three times the $7,500 credit Congress offered to new buyers earlier this year. Builders say the earlier credit didn't work because it wasn't big enough and had to be repaid.

Builders also want subsidies for interest rates on 30-year fixed-rate mortgages for government-backed "conforming" loans, which currently are around 6.2%, to bring rates down to 3% for loans made in the first half of 2009 and 4% for those in the second half of the year.

A rate reduction of about 1% on a 30-year mortgage typically costs the lender -- in this case the government -- around 4% of the principal. So a 2% buy-down on a $200,000 mortgage would cost $16,000. The NAHB estimates the subsidy portion of its proposal would cost the Treasury $143 billion.

Other critics say that while a large tax credit could motivate buyers to get off the fence, it would do nothing for homeowners unable to refinance mortgages they can't afford, which is arguably a bigger problem.

One idea with broader support -- but with a potentially bigger price tag -- is an interest-rate buy-down that would allow existing homeowners to refinance to lower rates. Chris Mayer, senior vice dean of Columbia Business School, has suggested that the government push interest rates down to 5.25% for homeowners who prove that they can afford to live in their new homes and can document their income.

Eliminate Capital Gains Tax On Any Home Purchased For The Next 12 Months!

There have been extensive bailouts this past year and there could be more to come. Tax payers can not afford to keep throwing money at every problem. ELIMINATING CAPITAL GAINS ON ANY HOME UNDER $1 MILLION PURCHASED WITHIN THE NEXT 12 MONTHS for as long as they own the property will not require one more penny of tax payer's money and it will help set a floor on housing. This should be considered.

1. All buyers receive an investment tax credit equal to 10 percent of their down payment up to 20 percent down. These parameters could be of course modified but the concept would immediately create additional demand and help stabilize the decline in housing prices.

2. Demand drove prices up so increasing demand is part of the solution. An elimination of a capital gains tax on housing could cause many investors to reconsider real estate as a good investment by removing some of the risk in this uncertain marketplace. Since prices have adjusted downward and interest rates are quite attractive this one extra ingredient could move more buyers into buying even in those areas not as effected by foreclosures.

3. It will keep things from becoming worse and it will keep tax payers from continuing to bail out more bad loans and desperate companies.

4. The foreclosure market has attracted many buyers but other homeowners, not yet facing that burden, are in need of help to sell now. Eliminating the capital gains tax for purchases will cause investors and insecure buyers to see this as a unique buying opportunity with attractive future benefits. This will keep some distressed sellers from becoming another foreclosure statistic and from prices declining further.

If I Can't Sell My Home, I Will Lease It!

The number of able and willing buyers has drastically declined but if you are one of the lucky Sellers to receive an offer, my recommendation is to do your very best to make it work.

Many home owners are growing tired of waiting for "the offer" and/or having to repeatedly reduce their asking price. So it has become a popular trend to lease and to try to and sell the home later when the market recovers. It seems that many feel the process of finding a good tenant is easy. Well, I should know since I have lease listings and have been working with clients looking to lease and believe me, it is not an easy task and it can be more complex than an actual purchase! Moreover, tenants in today's market want something in tip-top shape and they want it to be at those "deal" prices. They are not willing to spend money to make any changes to a property they do not own thus they commonly request that landlords make improvements to the property such as repairs, painting, new carpeting etc. before they agree to lease.

All property owners should be aware that there are risks involved such as, a tenant may not pay or may be responsible for serious damage the deposit does not cover or you may be trying to once again lease or sell in a market that is more troubled than before. The decision to lease a property should not be taken lightly or it could be a costly mistake.

Feel free to send me an email with your questions. I am here to help in any way I can.

Connie

Tips To Get The Job Done If You Must Sell Now

You do not always need a lot of money to increase the value of your home.

In these troubled times, most of us can not afford to pay a stager thousands of dollars to design the interior spaces. Here are some thoughts to get your property in tip top shape without breaking the bank!

1. First, get informed as to "what's hot" and "what's not" by visiting other open houses in exclusive neighborhoods nearby. You will quickly see what colors they have on the walls, how furnishings are positioned and you will definitely get some good ideas for decorating your own home. Ask the agent if you may take photos so that if you are having a contractor or handyman copy something, they will have an excellent idea of what you are trying to achieve.

2. You may also do as I have, visit exclusive interior design shops. Again, go into the high-end shopping areas for the best and most recent innovations in home design. You will find sample kitchens and bathrooms that will provide so many ideas and of course you can ask the sales associates about the materials used. You may also elect to purchase some items that will have a large impact and that can not be easily reproduced.

3. Pay for a consultation from a designer in a shop you appreciate or ask a friend to recommend someone. This could be very valuable since they will share ideas and that may be enough for you to move your home in the right direction.

4. Don't forget a resource everyone has.... your friends and family. If you need furnishings and do not have the money to afford them, ask each of your friends to lend you 2 pieces. If you have 4 friends that would give you 8 lovely pieces to add to your home. You are also inviting your friends and family to help you in this process and helping those we care about feels good.

5. Remember that many buyers make up their minds on a property at the CURB and spend the rest of the time trying to justify that FIRST IMPRESSION. Stand at your curb and see how you can improve the overall look and feel of your home and also exam if the exterior of your property matches the interior theme.

6. Paint, Paint, Paint. If you can not afford to paint a tired exterior paint just the trims or the decorative pieces along side the windows. The fresh paint will provide a good contrast and liven up the overall feel of the house. Paint in neutrals for the interior and use darker colors for rooms that are very very large and lighter colors for small rooms and spaces. Always keep in mind that you wish to attract the most buyers possible so keep your selections to calming neutral colors. Again, you can go to open houses and design shops for references.

7. Repair or Replace the Front Door: In searching for a front door do not forget to look on-line since just about everything is sold on-line. You may find an antique! If you do elect to keep your front door perhaps changing the hardware or painting would improve the overall appeal.

8. Small rooms or odd shaped spaces: These areas MUST be defined with decor or the buyer will not give that area any value and this will be reflected in the offer. Moreover, they may not believe the space could be used and that is why the use must be shown.

9. Lighting: Recessed lighting is costly but you can invest in table and floor lamps and spot lights for very little today. Again, this will lighten up the space, provide warmth expected in a home and also make a smaller space feel larger. Perhaps you have enough lighting fixtures and all you need are bulbs with a higher voltage.

10. Outdoor Living Spaces: Many homeowners are now using their outdoor areas as an extension of their home. If you have a small yard a buyer will see that as a negative. If you decorate the area with charming outdoor furniture, some candles, etc. this space will become a positive. The buyer may think, " Wow, we can sit under the stars and have dinner!" See how a little shift can turn a negative feature into something positive and don't forget, it will also add additional value to the property.

11. Lastly, make everything look and smell clean. For example: Be sure your kitchen & bathroom sinks are free of dirty dishes and debris, all fixtures clean, your trash cans emptied, tables and chairs free of clothes and clutter, etc.

Good Luck to Everyone!

Connie De Groot

US Stocks- Extraordinary Rescue Effort Spurs Wall Street Rally

NEW YORK, Sept 19 (Reuters) - Sweeping government measures to rescue the financial system and restore confidence in shaky markets spurred a huge relief rally in U.S. stocks on Friday, ending a week when the financial landscape underwent the most dramatic reshaping since the Great Depression.

The benchmark S&P 500 index had its biggest two-day rally since October 21, 1987, two days after the 1987 stock market crash.
Led by U.S. Treasury Secretary Henry Paulson, officials are working on a solution to mop up hundreds of billions of dollars worth of bad mortgage debt.
In another extraordinary action, the United States joined the United Kingdom in temporarily banning bets that financial stocks will fall, while the Federal Reserve said it will use $50 billion to back money-market mutual funds.
The moves came at the end of an agonizing week for Wall Street, in which Lehman Brothers filed for bankruptcy, insurer American International Group (AIG.N: Quote, Profile, Research, Stock Buzz) was bailed out by the government and Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) was forced into a shotgun marriage with Bank of America (BAC.N: Quote, Profile, Research, Stock Buzz). Investors had worried that the confluence of crises severely threatened the stability of the U.S. economy.
But even with the furious two-day rally, stocks still ended essentially flat in a week marked by extreme volatility -- with the Dow plummeting more than 500 points on Monday, only to rise on Tuesday and drop again on Wednesday.
"The government plan is seen as a comprehensive solution rather than a series of ad hoc, piecemeal moves," said John Praveen, chief investment strategist at Prudential International Investments Advisers LLC in Newark, New Jersey, noting that the ban on short-selling was also contributing to the surge in financial stocks as short sellers bought stocks to close out their positions.
An S&P index of financial stocks jumped 11.1 percent.
Short sellers, who profit when stocks fall, have been blamed for contributing to the demise of Lehman Brothers and the steep declines in other financial stocks this year.
The Dow Jones industrial average .DJI closed up 368.75 points, or 3.35 percent, at 11,388.44. The Standard & Poor's 500 Index .SPX advanced 48.57 points, or 4.03 percent, to 1,255.08. The Nasdaq Composite Index .IXIC shot up 74.80 points, or 3.40 percent, to 2,273.90.
Shares of Washington Mutual (WM.N: Quote, Profile, Research, Stock Buzz) surged 42.1 percent to $4.25 after the Wall Street Journal reported that Citigroup (C.N: Quote, Profile, Research, Stock Buzz) was considering making a bid for the U.S. savings and loan. Citigroup shares leaped 22.7 percent to $20.65 on the New York Stock Exchange.
Shares of Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz), punished earlier this week as investors fretted about the outlook for the last two remaining U.S. investment banks, jumped 20.7 percent to $27.21. Shares of rival Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) climbed 20.2 percent to $129.80.
Morgan Stanley's talks with Wachovia Corp (WB.N: Quote, Profile, Research, Stock Buzz), China Investment Corp and other institutions continue, a person familiar with the matter said, though the rebound in its securities gives the investment bank more time to consider its options. Wachovia's stock surged 29.3 percent to $18.75.
Trading was heavy on the New York Stock Exchange, with about 3 billion shares changing hands, far above last year's estimated daily average of roughly 1.9 billion, while on Nasdaq, about 3.8 billion shares traded, also trouncing last year's daily average of 2.17 billion.
Advancing stocks outnumbered declining ones on the NYSE by about 7 to 1 and on the Nasdaq, by about 2 to 1. (Additional reporting by Steven C. Johnson; Editing by Jan Paschal)

Source: Thomson Reuters 2008

Back To Basics

This past year has been challenging to many but it has offered powerful lessons as well. Many first-time home buyers are struggling with unsatisfactory loan terms of which some will be forced to make difficult decisions that will have long lasting effects. Here are some basic tips to keep in mind if you are out there now looking to buy:

1. Do not proceed if you can not COMFORTABLY afford to handle this financial obligation. Carefully read the loan documents and have them also reviewed by someone you trust.

2. Plan and SAVE for the unexpected. Have reserve accounts for life's surprises.

3. Do not buy on impulse! Take time to inspect a home and the neighborhood. Be sure you have looked at comparable homes in the area to be sure you are not over-paying.

4. Try not to buy on a busy (noisy) street.

5. Try to avoid buying a home with more than 2 levels

6. Try to avoid buying a home that has too unique a floor plan or style that is hard to change.

Remember, one day you may want to sell the property you are buying today so think not only as a Buyer but also as a Seller! In a healthy market, almost anything will sell but in a market like today, those same properties suffer the greatest losses. Since one never knows when they may have to sell, it is best to go for the best location and most popular style home you can afford. If you keep these basic points in mind and surround yourself with experienced professionals, you should do well in any market.

Good luck and Good Fortune to all!

Washington To The Rescue?

Since the elimination of sub-prime loans and the ever increasing challenges to obtain a loan, many willing buyers are struggling to purchase a home today. The result is that the national inventory of available homes is at about an 11 month supply. The steady increase in inventory and growing trend of desperate sellers reducing by large amounts will further be a downward pressure on the housing market unless something comes into play soon.

There needs to some replacement program to help get some buyers back in the marketplace and also more alternatives to keep homeowners in their homes.

The housing bill circulating in Washington, could help set a floor on the housing market by enabling more homeowners to stay in their homes. Slowing down the increasing inventory is one of the first steps to help stabilize markets and that is something every homeowner wants to have happen.

Moreover, the up to $7500 credit to first time home buyers will make it a little easier for those that are having trouble with current guidelines. The big question will be how many people will qualify for these programs because that will determine the effects on the housing crisis.

Your comments and opinions are welcome.

Add a Touch of Europe to Your Home: Build a Wine Cellar

Wine is becoming increasingly popular among Americans, and many homeowners are choosing to complete their luxurious homes with a classy wine cellar. Fortunately, although many factors must be considered before installing a cellar, there are several companies in the area that will guide you through the process. To help you determine whether a cellar will be a worthwhile investment for your home, I will tell you the basics of what you will need so that you can.

Wine is a very delicate and fussy item to properly store. Above anything, the temperature at which you store the wine is absolutely essential: storing wine at the wrong temperature greatly affects the flavors and aromas. Temperature fluctuation—when the wines experience hot and cold—is the worst for the wine’s health.

Therefore, you want to keep your wines in a steadily cool environment. Generally, the optimal temperature for red wines is around 55°-60°; the ideal temperature for white wines is from 49°-56°.

The reason why almost all wine cellars are located in basements or on the lowest floor is because heat rises, even through floors. The lower to the ground that a room is, the cooler it remains. If you have an empty basement, you’re in a great position to build a cellar. If you do not have a basement or have little room on the lowest floor, a cellar may not be a great fit.

Otherwise, you must also pay careful attention to how the coolness and moisture are kept in the wine cellar area:

• Insulation keeps it cool. Fiberglass or rigid foam are common options. These materials are less porous than regular foam, keep a steady climate and protect against harsh winters and hot summers. Additionally, the thicker the walls, the better. Consider using a 2 x 4 or 2 x 6 sizes.
• Ventilation airs it out. You must do everything that you can to keep heat away from the bottles. You may need a vent fan to move the energy generated from the environment and the electrical away from the cellar area. The cellar will also need unobstructed airflow.
• Electrical keeps it running. Most cellars, like refrigerators, require a significant amount of electricity. Make sure that you have at least a 20-amp circuit that can handle upwards of 110 volts.
• Floors keep out mold. The reason why cellars often have floors of slate, tile, or marble is not just because those materials look better but because they are non-porous and will not mildew. As you know, moisture and carpet or wood do not mix well. If you have carpet or wood floors, you will have to replace them.

Of course, you will need some space for the cellar itself as well as moving around and sitting down to drink the wine. But wine cellars come in many sizes and can be custom-built. For more information regarding installing wine cellars, visit http://www.vintagecellars.com/howto.asp or http://www.vinotheque.com/index.html.

**Thanks to vinotheque.com for providing great information

Want to Buy a Retirement Home? Use Your 401(k) or IRA.

With a bleak national economy, many investors are looking for alternatives to maximizing their earnings and retirement savings. A novel way is to use your IRA or 401(k) to purchase a property. Ideally, you can use some of your retirement funds to purchase real estate and earn tax-deferred income from those properties. However, using retirement funds to invest in real estate isn’t necessarily a total goldmine—with the benefits come several caveats.

Who can use IRA’s or 401(k)’s to buy real estate?

Most people who are full-time employees and can prove firm financial standing are eligible to purchase real estate with retirement funds from their 401(k)’s or IRA’s.

What types of properties can I purchase with my retirement accounts?

It is important to realize that this feature of IRA and 401(k) accounts is purely a tool for investment—not home-buying. That is, you can purchase rental homes, condominiums, raw land, and commercial real estate. But you cannot use your retirement accounts to purchase your home or even any other home that you intend to spend time in (that includes vacation beach condos and ski lodges). And you cannot get around this stipulation by putting the homes in a relative’s name: purchases for relatives are also prohibited.

Nevertheless, you can “invest” in a home that you intend to use upon retirement, so long as you prove it is for investment purposes by renting or leasing it out to an outside party for the meantime.

How can you begin to buy real estate with your retirement accounts?

In order to set out independently as a real estate entrepreneur, you must set up a self-directed IRA, which allows you to direct your own retirement funds. You will need consultation from an approved IRA custodian.

What are the drawbacks of purchasing property with an IRA or 401(k)?

First, you do not have unlimited access to your retirement accounts (this is a government safeguard for your own good!) You may be limited to a $10,000 withdrawal, and you may be subject to tax penalties if you withdraw before you are 59½.

Another important caveat is that that you do not borrow from your IRA or 401(k), you withdraw. That is, once you take the money out, you can never get it back. If you are like most people, you want to be extremely conservative with your retirement piggy bank, because there is nothing after that money, and once it’s gone, it’s gone. Therefore, you should really only purchase property with your IRA or 401(k) if you will be very financially comfortable upon retirement and if you are absolutely confident that your real estate venture can earn you at least a marginally higher return on your investment account.

You should also keep in mind that once you open a self-directed IRA, you will basically be out on your own. Although you will have an IRA custodian, your money will be in your hands. Only take on this venture if you really feel the entrepreneurial spirit and only if you really want to handle your retirement funds.

Yes, investing in real estate may be a more active and lucrative way to maximize your retirement funds. But you will also be tossing around a very delicate nest egg that can easily fall on the ground in a tough real estate market like this. No matter what, you should consult an independent financial advisor before taking any action.

**Sources: marketwatch.com, activerain.com

Connie's TV Update

Connie is appearing on local and national media all over America! There has never been a better time to work with this broker who gets her clients real exposure!

Here's a brief recap of where Connie has been and will be in these weeks:

*Connie recently appeared on the Fox News Business segment "Real Deal on Housing." As part of an expert panel, she talked about the potential of an upswing in home sale prices in Southern California (Original Air Date: June 24, 2008).

*Connie spoke on Martha Stewart Living on SIRIUS. (Original Air Date: June 25, 2008)

*Connie will appear on CNN "Open House". The program will appear on CNN Headline News on Saturday, June 28 at 12:30 PM.

*Connie will show her skills for selling a house on "Real Estate Confidential" featuring her most current listing, 1625 Clear View Drive. The feature will be a part of ABC's "Eye on LA" and will air on Saturday, June 28 at 6:30 PM.

To view all of Connie's appearances, click here: http://www.conniedegroot.com/tv.htm

Owner Financing--A Great Strategy for the Right Situation

In today’s difficult market, sellers are looking for any way to sell their homes at a reasonable price. Some sellers are turning to owner financing, an option that bears risks and benefits to both the buyers and sellers. Owner financing is not for everyone, but it could help you greatly if you want to sell your home now or if you want to buy without the hassle of bank mortgages.

What is Owner Financing?

To simplify it as much as possible, owner financing is when the seller of the house provides the loan to the buyer. The loan may be in conjunction with or in place of a mortgage taken from the bank.

Of course, when the seller is the lender, the typical circumstances surrounding closing change. Usually, both sides save time and money from avoiding standard closing costs. First, the owner doesn’t get all of his money up front, but instead receives payments plus interest over a period of time, just as a bank would receive from the borrower. Usually, the lender offers a better rate—or at least a better total package—than the bank can offer. Hence, owner financing is really only viable for sellers who have some extra cash on hand.

The buyer, in turn, does not have to deal with securing a loan from the bank. Because the transaction is with another individual, the deal is much more flexible to negotiation from both sides.


How Does the Seller Benefit?

• The seller may earn a higher selling price in return for offering the buyer a lower interest rate and allowing the buyer to avoid the bank.
• Assuming the buyer can make all the payments, financing may be a safer option than other forms of investment. For example, if the owner can be assured of a 6% return, he may choose to finance the buyer rather than get his money in a lump sum at closing. The steady 6% may be safer than investing that money in a riskier option, such as the stock market, which may not make him that high of a return.
• Because a third party will not be involved, the seller may be able to forego the inspections, appraisals, and insurance terms.

How Does the Buyer Benefit?

• The buyer has more bargaining power with an individual owner than with the stubborn bank.
• The buyer does not necessarily have to endure a tedious mortgage approval process.
• If the loan itself slightly favors the seller, the buyer can leverage the deal to get the seller to do some home improvements as exchange. The seller may also throw in other goodies, such as providing homeowners’ membership fees or installing high-speed wireless internet prior to vacating.

How is the Seller at Risk?

• The seller won’t get all the money upfront as he would in a typical bank mortgage. Hence, he will be unable to gain interest on or to invest the large lump sum that he would ordinarily receive.
• If the seller doesn’t own the home, he has to pay off the existing mortgage before selling it.
• The seller is at risk of the buyer defaulting. Whereas banks expect people to default and can still manage to turn profit when borrowers fail to pay, the individual seller is likely to be greatly affected by non-payment.
• If an emergency arises and the seller needs cash quick, he will have to sell the loan contract. Because the loan likely has a lower interest rate than the bank would provide, the buyer of the contract will discount the price he offers the seller.
• If the seller does not hire a lawyer to properly document the loan, he is at risk of the buyer taking advantage of a loophole.

How is the Buyer at Risk?

• Because a third party will not be involved, unless the buyer demands a home inspection, mortgage insurance, or an appraisal as part of the deal, these buyer safeguards will not be necessary to closing. The buyer would be at higher risk of getting a lemon.

* * *

Owner financing really isn’t a complicated process. But it is only appropriate for certain situations. If the conditions are right for the buyer and seller, then owner financing can be mutually beneficial and profitable to both parties.

**Sources: michaelbluejay.com, financialweb.com, Century 21

Add value to your home with minimal effort

As you know, sometimes the most minor factors make a difference. The same is true when it comes to selling your home. By investing a little time and a minimal amount of money, you can greatly enhance the marketability of your home. I have five suggestions for changes you can make that will increase your home’s value.

Remove personal items

As painful as it may be, in order to attract the most offers and to demand a premium for your home, you should remove personal items from the most visible areas of the home. You cherish your family photographs, trophies, and other memorabilia, but potential buyers will have little connection to these items. The key to selling is having a buyer build an emotional connection to your home. You want the buyers to feel like this home can be their own from the day they walk in the door.

Removing personal items is an easy change that doesn’t cost anything but that will earn you a higher offer. As an added benefit, it will make your home seem cleaner and more open, allowing the buyers to picture how they can add their own personal touches to each room.

Think about what may be too specific

I have sold some of the finest properties in the Beverly Hills area, and many of the owners that I have dealt with have been brilliantly artistic people with magnificently unique homes. But because not everyone has the same tastes or styles, it is important to consider which of your homes features may be wonderful, yet too specific to you.

A few weeks before your first open house, look around the house and try to take an objective view of what rooms may require personal tastes to like. Invite a few friends or neighbors to come by to lend you an honest outsider’s opinion.

Consider painting rooms that are done in non-neutral colors (bright colors like candy-apple red or bright yellow, etc) or rooms that are wallpapered (as quaint as it may be).

Artwork can be another touchy item. Even the most beautiful Renoir—not to mention a bold Rauschenberg—can give just a hint of doubt to the buyer. Again, if the buyers cannot envision themselves in the house on the day of the open house, then they will be more reluctant to make a high offer—or one at all.

My most memorable example of something “too specific” was the home with the large fiberglass tree built in the middle of the living room (go to the Real Estate Confidential Episode 1 video by clicking the “Connie on TV” link above). The owners couldn’t sell the home until I convinced them to remove the tree. The tree, of course, is an extreme example. But are you sure that a majority of people will feel completely at home in each room or with each item? If not, then change those features.

Spruce up with paint

You know how a new coat of paint can completely revive a room or the outside of a house. Use neutral solid colors, which will attract a wider swath of potential buyers. Even if a room is already in a neutral color, consider repainting it in order to give it a fresh look. Your house may be eighty years old, but fresh paint makes it look just built.

Brighten up with light

Nature is your cheapest and best tool. Bringing natural light into your home makes every room warmer, fresher, cleaner, and more inviting. This step is as easy as opening up the blinds or curtains of every window. Even if it is gray outside, buyers will feel more comfortable in an open and light house.

Consider the sense of smell

My previous suggestions have been mainly about how your house looks—but few people really think about the buyers’ other senses, such as how the house smells.

Before the open houses, avoid cooking with fish, garlic, onion, cabbage, or other potentially smelly foods. Also avoid spraying household cleaners around the house, as many people are very sensitive to such smells. Of course, however cliché it may be, the smell of baking pie or cookies seems to always make buyers instantly fall in love with the house.

* * *

All these suggestions are quick, easy, and cheap—the most expensive change is the paint. Taking a little time to neutralize your home will not only allow buyers to envision themselves in the house but will also show them how you went through the extra effort to present your home. And I guarantee that the cost of the minor changes will be far outmatched by the higher asking prices.

Reviving the Forlorn Front Yard

When home prices reach upwards of $600 per square foot, you want to make every inch count. Maybe that’s why the front of the house has become an area of focus for many upscale homeowners.

It is interesting to consider why homeowners often ignore the front of their homes. Think about how many beautiful homes you have seen with stellar interiors, majestic backyards…and forlorn front yards.

Yet all realtors know about the studies that say that home buyers make up their minds within the first five seconds of looking at the house and only spend the rest of the time trying to justify their original impressions of the exterior. Finally, homeowners are catching on by giving the front areas the same respect as the rest of the property.

I have thought of some ways by which you can cultivate a fantastic front yard and add tremendous value to your property without breaking the bank.

The first reason why homeowners only tend to be in their front yards when they are walking from the driveway to the front door is because of privacy. Even on sultry summer days, homeowners will stay away from eating in the front yard because they do not want to be seen by strangers.

You can actually add to both the sanctity as well as the aesthetic value of your front in several ways:

• Elegant gates. Granted, picket-white fences may be lost in the suburbia of the 1950’s, but adding a taller rod-iron gate will lend your home an image of grandeur while allowing you to feel removed from the street.
• Landscape. Flowers, plants, trees, and other vegetation add color and refinement to your front yard. You may even use trees as natural fences that provide both shade and privacy.
• Hardscape. Choosing the right type of material for your driveway and walkways can instantly change your home from a Los Angeles residence to a Tuscan estate. Lose the brick and concrete, and opt for a choice that can add both color and texture. Rustic-colored cobblestone is especially popular nowadays. Stone is another option, which can make your home resemble a French chateau.
• Waterfalls or sculptures. I’m not suggesting that you go buy a dozen pieces and try to recreate the Getty Villa, but a simple three-tiered waterfall or a non-ostentatious stone sculpture by the front entrance can be another tactful and international touch. Stores like Z Gallerie offer some very nice options for very good values.

Now that you have established some privacy and some elegant touches to your front, you may even be willing to spend some more of your time out there. You don’t have to eat your meals in the front, but placing an iron table with some matching chairs on a grassy area will allow you to enjoy a cup of coffee or a glass of wine in another relaxing outdoor part of your home. Even if you live in a particularly busy area, the fence, trees, and the waterfall will do well to muffle the street sounds so that you really can enjoy yourself. And those some features will lend you the privacy and freedom to be yourself.

Connie's Back on TV...and now Sirius!

Next week, I will not only return to the silver screen, but I will be making my debut on satellite radio!

You can catch me on the following programs:

• CNN “Open House” (check soon for airing date)
• Fox Business News with Liz Clayman and Dave Asman (June 24, LIVE! at 1:00 PM in Los Angeles)
• Martha Stewart’s Sirius radio show (Channel 112, June 25, 12:00 PM in Los Angeles)

It's hot time to go solar!

What if I told you that there was a simple, relatively inexpensive change that you could make to your house that could help you cut down your bills, do a public good, and increase the value of your home? There is indeed a solution, and it comes in the form of solar panels.

Solar panels are hot! Due to California and federal subsidies, solar panels are no longer reserved for mega-wealthy eco-friendly celebrities. Now, even the common urban Angeleno can enjoy the benefits of saving the environment, paying less for electricity, and earning a premium when it comes time to selling.

I searched the Go Solar California website (http:///www.gosolarcalifornia.ca.gov) to provide you with information about your burning questions about solar panels.

What’s the news?
The “California Solar Initiative” will provide over $2 billion in incentives over the next decade to subsidize the installment of photovoltaic (PV) solar panels on commercial, industrial, and residential properties. The program is intended to increase the solar electricity market; it is not directed toward solar hot water systems.

What’s the deal?
The CSI will offer you up to $2.50 per watt that your solar panels generate. The more solar panels you have and the more energy from the sun they create in substitute of standard electricity, the more you will receive in return.

For systems that generate over 100 kilowatts, incentives are paid monthly. For systems under 100 kilowatts, you will receive a one-time incentive upfront. The incentives will decline seven percent per year—starting from 2007—over ten years.

The amount of incentive that you receive is based on how much electricity your panels produce. But having more panels does not necessarily mean more electricity generated. The orientation of your panels—where they are located and how much sunlight they receive—is a major factor. I discuss how to optimize your orientation below.

Am I eligible?
If you are a customer of Southern California Edison, Pacific Gas & Electric, or San Diego Gas & Electric, you are eligible for the incentive program.

What is the best environment for solar panels?
The orientation of your solar panels is critical to optimizing the most value. The following bullets detail the best conditions for solar panels:

• Your roof should have clear, unobstructed access to the sun for most of the day and should not be under large amounts of shade (from buildings, trees, pipes).
• It is best if you have your solar panels facing south, which gets the most sunlight.

Do not expect to meet all these standards—few people do. But regardless of where your roof is, we do live in sunny Southern California, which receives more sunshine than almost anywhere in the country. You are sure to reap rewards on your electric bills. You should definitely contact a local provider to inspect your location.

How much space do I need?
You will need 100 square feet for each kilowatt of the common panel. Other types of panels may need more space.

How much do PV systems cost?
The costs of PV panels will vary based on the exact size, add-ons, and installation costs. Currently, systems average about $7.00 per watt.

Are PV systems reliable?
Although they may look delicate, PV panels are incredibly durable. They do not wear out. They can withstand brutal heat and other harsh weather conditions. They last upwards of twenty years.

Why spend money to get electricity I already have?
Solar panels have numerous public and private benefits:

• By using natural energy instead of conventional carbon-based electricity, solar panels keep the air cleaner and reduce the causes of global warming
• Panels save you money over time
• Panels reduce our dependence on that $140 per barrel oil—remember, oil doesn’t only go into your cars!
• Panels increase the value of your home (more on this later)

In addition to the incentives, the federal government also provides incentives. You can get an income tax reduction of 30% of equipment, and higher-income households can reap even more benefits.

How can solar panels increase the value of my home?
This may be the most critical question of all. You may argue that installing solar panels would be futile, because you are not sure if you still may be in your house in ten years. But consider the tremendous financial and psychological value that solar panels add.

Financially, you will offer the buyer a stable, environmentally friendly, and money-saving addition to the house. The buyer will be willing to spend more when he considers that he will be saving money on his utility bills for years to come. Looking ahead to the not too distant future, as solar panels become more of a commodity, legislative measures will make it even easier for households to buy and maintain solar panels—and more difficult to buy and maintain conventional electrical systems.

Finally, the psychological impact is even more profound. Not only are solar panels somewhat visually pleasing even on traditional homes, but they are fast becoming a social sign. The solar-paneled home gains respect and admiration from neighbors. The solar-paneled home declares that its owner is modern, proactive, and economically wise.

Yes, it may be difficult to think about laying down the money for a fancy system on your roof, but once you factor in the benefits of energy saved, reduced bills, and higher home value, the investment becomes quite worthwhile.

**Technical information and statistics gleaned from www.gosolarcalifornia.ca.gov

Green your house without a greenhouse, Part II

This is the second installment of how to make your house eco-friendly in simple and effective ways. Last time, we discussed measures that will help you save water dollars in the laundry room and in the bathroom. Today, we will discuss eco-friendly bedroom furniture and decor options.

Bedroom
Although you may not be awake for many of the hours, you spend far more time in your bedroom than you do anywhere else in the home. Therefore, you should really invest into making your bedroom eco-friendly. Although many green products for the bedroom are slightly more expensive, the benefits are more than worthwhile.

Our beds, where we spend a third of our lives, can be harbingers of chemicals, germs, and eco-unfriendly materials. How can we reduce the environmental impact of our beds?

We have all seen how organic cotton has made its way into clothes, so why not buy sheets and blankets made of organic cotton? We usually associate pesticides with food, but few of us realize that “conventional cotton accounts for up to twenty-five percent of the insecticides used worldwide." In addition, the conventional process of making bedding involves many synthetic chemicals and dyes. Purchasing organic cotton may cost more, but it will make a tremendous contribution to the environment.

Décor
As people become more aware of conservation, having more natural items you have in the house will help you get a premium for your property, and you don’t need a fiberglass tree in the living room! Wood shutters and simple fabrics will make your property look fresher and more modern. Not only will potential buyers feel more grateful and friendly towards you—great assets to have when you are trying to get higher bids—but the general look and feel of the natural items will make your home into a much warmer environment. Natural products may be the answer to the aroma of oven-baked cookies.

* * *

Many people, especially during these harder economic times, are becoming hesitant to spend on slightly more expensive eco-friendly items. But when you consider the hidden costs of conventional products, you will realize that the eco-friendly goods pay for themselves. And just wait until you see the higher bids you will get for your green house!

* * *

The Green Guide provides many companies where you can find great natural products:

A Natural Home (http://www.anaturalhome.com/, 866-239-4142)

Abundant Earth (http://www.tkqlhce.com/click-1408393-1156456, 888-51-EARTH)

FLOR (http://www.florcatalog.com/, 866-281-FLOR)

Greenfeet (http://shop.greenfeet.net/z/6/CD29/, 888-562-8873)

Ikea (http://www.ikea.com/; 800-434-IKEA)

Savvy Rest (http://www.savvyrest.com/, 866-540-6444)

Sealy (http://www.sealy.com/, 800-MY-SEALY)Spiegel (http://www.spiegel.com/)

Tilonia (http://www.tilonia.com/, 888-759-8175)

Under the Canopy (http://www.underthecanopy.com/, 888-226-6799)

White Lotus (http://www.whitelotus.net/, 877-HANDMADE)

Whole Foods ECO Lifestyle Stores (http://www.wholefoodsmarket.com/)

*Thanks to Emily Main and The Green Guide

Green your house without a greenhouse, Part I

How can the common homeowner make her house green without investing in lucrative technology?

The current green movement largely focuses on saving the public environment, but many people can take advantage of the trend for their own personal benefit. Going green can keep extra dollars in your wallet and will keep you and your family safe and healthy.

The green movement is becoming popular among all homeowners. However, many of my clients tell me that they have heard so many different opinions about how exactly to go green at home. In response, I have done some research and will present some of the best—and easiest—ways to green your house. I will tell you quick and easy ways to make your bedroom, bathroom, laundry room, and general household décor into areas that are friendly to the environment and to your family’s health.

Bathroom
Green is usually not a term that we like to associate with bathrooms, but in this case, going green can save the environment and can save you a surprising amount of money. Tap water is the cheapest necessity that we buy, but this fact has only made us into profligate spenders. As cheap as water is, you would be “flushed” to know how much we can save by being smart about how we use our water.

Showers and faucets
Many homeowners adjust the level of water pressure so that their showerheads spray far more water than is needed. Increasing pressure by even an unnoticeable amount will end up using an astonishing amount of more water. Even the most economical showerheads spray over 1.5 gallons per minute; many common showers spray over ten gallons per minute! Water may be cheap, but pennies add up. Look for showerheads that use under four gallons per minute. You may find such products for under $55.

Toilets
Considering how much water we can use in our showers, it is scary to know that the shower isn’t even the least water-friendly appliance in the bathroom. According to The Green Guide, “guzzling twenty-seven percent of your household supply each year, your toilet is by far your home’s largest water user” (The Green Guide). Most toilets use at least 1.5 gallons for each flush. Although we must all flush, we can cut down our water usage by not throwing trash in the toilet. Also, you can now offer high-powered toilets which actually use less water.

Laundry Room
The laundry room is another place where you can save yourself from unnecessary spending and from harmful chemicals.

At first unseen anywhere but in commercial laundries, front-load washers are now the norm. Why? Because for something as long-lived as a washer, the machines pay for themselves. The Energy Star approved machines not only use less water, but they also require far less soap—a double saver! You can find Energy Star approved machines at any home appliance store, and they are coming so far down in price that they have become a staple of every house.

We also use a large amount of chemicals in the laundry room. Conventional soaps and bleaches contain a “laundry list” of chemicals you’ve never heard of. Look for low-chemical detergents and chlorine-free bleaches, which you can easily find in Whole Foods.

Coming soon...
Part II: Going green in your bedroom and with your decor.

**Source: Emily Main and The Green Guide for providing the little details.**

Turn Your Backyard into a Relaxing Oasis

When you look out into your backyard, do you see nothing but grass that needs mowing and dusty furniture from summers past? Maybe it's time to give your outdoor space a face lift. Here are some ideas on how to make your backyard a relaxing oasis:

Add a fire pit

You can spend a lot on fancy built-in models, but for less than $200, you can find a portable fire pit at the local home improvement store. (Do check your town's laws on the matter first; fire pits are illegal in some areas).

Add a fountain

A water feature, like a pond with a waterfall or a standalone waterfall, adds some soothing sounds to your space. The gurgle of a fountain is relaxing and it has the added benefit of drowning out background noise from the street. You don't necessarily have to spend a lot of money digging up the backyard to install plumbing and wiring. A lot of today's outdoor fountains are self-sufficient units, using solar power to circulate the water.

Buy new patio furniture

Have seating in all areas so you can sit and enjoy your creation. If stackable chairs and flimsy plastic tables are the extent of your outdoor "furniture," maybe it's time to upgrade. Now with water-proof fabrics and weather-proof materials means you can get just about anything for the backyard that you can for the living room. Why not invest in something that is comfortable and that will still look good several summers from now?
If you have a large area, create separate seating areas. Maybe adding a multilevel deck that includes a dining area and a relaxing area with lounge chairs and cozy seating around a fireplace. Include a mix lush of greenery and flowering plants in each area and try to incorporate some unique features into your space.

Source: luxuryhousingtrends.com

FHA Loans for Beverly Hills 90210???

I recently sold a home in Beverly Hills Post Office where the buyer purchased the property with an FHA loan. The buyer first attempted to get a conforming loan but when it came time for the appraisal, the process was much more difficult then expected. The mortgage broker was not sure the buyer would get a conforming loan because of the appraisal. Being so, they explored the option of obtaining an FHA loan, where the down payment would be much less and the appraisal process would be a little less rigid. With the limits of FHA loans now at 729,750 that allows for many more buyers to utilize FHA loans. For a first time homebuyer with lending requirements being so conservative this loan may be the loan for you.

If you’re a buyer or seller in today’s rapidly changing market it is crucial that you have an experienced realtor, mortgage broker, appraiser, and home inspector. All parties representing the buyer or seller should be well informed in their area of expertise.

Good luck out there! If you're looking for a realtor or referral in your local area just give me a call.

Connie De Groot

Maximize Your Kitchen Space: Add an Island!

Centrally located, islands are easily accessed and ideal for various kitchen tasks, whether you need a second work station, a space from which to serve an informal buffet, or just a place to put the day’s mail, kitchen islands are a popular solution to the lack of cabinet space. . They are often the focal point in the kitchen.

As the selection of kitchen islands continue to grow, so do the innovations. If you are planning a kitchen remodel that will include an island, the following is a list of the latest kitchen options and tips to consider when building or turning your fantasy island into a functional and stylish workspace:

• Most important, there should be sufficient space between the island and other work surfaces.
• Depending on your needs, the island can be located so it functions as an integral part of the area. It can also serve as a divider between the kitchen and the family room.
• Create Levels: With multiple levels, guests can sit, chat or rest their beverages on the top counter, while the lower tier of the island could feature an ample work area for you to prepare a feast of tasty treats.
• Ample drawers and shelves should be incorporated below the area to keep key ingredients, utensils and cookbooks. Also, consider adding a wine refrigerator to keep your beverages close at hand.
• Cooktop islands have become very desirable, with cooktop; food preparation and cooking can all be done at the island top, while the space below can be used for additional storage or warming drawers.
• A sink and faucet in your kitchen island will make food preparation and cleanup quick and easy. A pull down kitchen faucet can also make performing tasks such as filling large pots, pitchers and vases easy.
• Select a surface finish that will add to the décor.
• With your fantasy island becoming a reality, some finishing touches might be in order. Long vertical drawer and cabinet pulls add some flair to the kitchen, while doubling as towel bars.
• Lastly, consider pendant lighting for your island. A variety of shapes, styles and finishes are available in home improvement stores.

Source: The Los Angeles Times

Tips for Hiring Contractors

Are you planning a major home improvement project in the near future? If so, you’re probably in the market for a contractor.

Here are a few important techniques to finding the right professional to handle such a project and get a fair price:

• When possible, try to get recommendations and referrals from people who have had similar work done.


• Call and pre-qualify several contractors. Be sure that each contractor is licensed and insured for workers compensation, property damage, and personal liability. Request references and ask to see contractors work.


• Request a formal bid based on exactly the same plans and specifications. Don’t automatically choose the lowest bid. If one bid is much lower than the others, be suspicious of inexperience. Generally, if it looks to good to be true, it probably is.


• Chemistry with your contractor is crucial. This person may be around your space for some time, and there may be times when you have to deal with difficult issues.


• Ask if your job will be the only one on their plate or whether they’ll be managing multiple projects at the same time. Find out whether the contractor will be on site to supervise or if they will hand it off to a foreman.


• Once you’ve made your selection, ask to see his or her contractor’s license and double-check insurance coverage.

At this point, you and your contractor should agree upon a written contract and both of you should sign it. The contract should include:

• Make sure your plans are thought through completely. It’s fair for a contractor to charge you for changes and modifications that are not in the original plans, particularly if it will require more work or more expensive materials, which can send your budget through the roof.


• Both names and addresses and details of all work to be performed are should be included. Be sure to specify who will be responsible for demolition, cleanup, and trash collection.


• Be sure to include a completion date and details on how and when payments should be made. If the contractor requests a deposit before starting work do not pay more than 10 percent or $1000, whichever is lower. Make additional payments as the work progresses. This gives the contractor continual incentives. Remember: money is your only leverage for getting things done.


• Don’t sign a completion statement or make the final payment until the job has passed final inspection.

When the job is finished, if you feel you’ve been cheated or wronged, you may lodge a formal complaint with the contractor’s licensing board (this is one of the reasons it’s important to work with licensed professionals).

Source: Hometips.com

How to Cut Down on your Air Conditioning Bill

With summer approaching here are some home improvement projects that can lead to savings on energy costs.

When making a list of improvements, take into consideration the following ideas:

• Regular Maintenance – Change your filter at least once per month during peak season. Check your owner’s guide on how to safely clean the unit or have a professional service it.
  
• Place your air conditioner in a north or east facing area of your property, or a very shaded spot. Placing the unit in a spot that won’t take a beating from the hot midday sun.
  
• Properly size your air conditioning unit to the size of your room or home. If the unit is too small, it won’t adequately cool the space. If the unit is too large, it will waste energy turning on and off frequently.
  
• On very hot days, save energy by closing the fresh air intake on your unit. Re-cooling the air that is already circulating in your home requires less electricity.
  
• Don’t cool rooms that aren’t occupied or used frequently. Close air vents in those rooms to circulate the air where it is needed more.
  
• You can save 3% on your cooling costs for every degree you raise your thermostat in the summer. Raising the thermostat from 73 to 78 degrees can mean savings of up to 15% in cooling costs.
  
• Improved air circulation will cool your home more quickly and efficiently. Employ pedestal or ceiling fans to help circulate cooled air.
  
• Minimize the amount of time you open and shut outside doors, and draw the blinds or curtains to keep sunlight out.
  
• Take care of tasks that would normally add heat or humidity to the home in the early morning or late evening hours.
  
• Retractable awnings that cover outdoor patios or decks during the hottest parts of the day can help cut back on cooling costs.
  
• Reflective films can be used on windows to screen out the hot rays of the sun without compromising the light entering the home.
  
• Do your laundry using cold water. Washing only heavily soiled clothing in hot water will save energy and also keep your home cooler.

Source: The Los Angeles Times

Ouch! Another low offer!

In most areas, homes are sitting longer than most of us have experienced in a very long time. Some Sellers must wait months before they receive an offer to purchase and when that offer comes in, there is usually excitement or perhaps a sense of relief!
Nevertheless, lurking very close by is often disappointment when the Seller learns of the Buyer's purchase price.

My advice is to first, take a deep breath, and give yourself some time to consider all that the Buyer is offering in his agreement to purchase. Go beyond the price and look at the value in knowing that you can move on with your plans, that you can apply those gains towards other opportunities. And most importantly, let's not forget the stress selling a home has on your body and mind. All these items have real value and are often overlooked.

In a market where able willing buyers are slim and offers are rare, throwing away an offer can be an extremely costly mistake!

We are all together in the frustration of this market so each of us must really try a little harder to make things work. If you need to sell at this time, take the time to interview experienced Realtors that have experience selling homes in your neighborhood and that have strong connections to all those people necessary to complete a transaction successfully. This decision can bring you success and certainly more money at the close of escrow. Your Realtor, lender, home inspectors, etc. should be people you sincerely trust and have confidence in. Today, you must form a strong team to make things work given all the challenges that exist in this environment.

Good luck to you all and call me if you need tips or referrals for an excellent Realtor anywhere in the United States!

Make A Room Feel Larger- Tricks Of The Trade!

Many Homeowners are struggling to sell in today's complicated market. They may not have the funds to completely re-design their properties to compete. Color can transform the look and feel of most any home and only for a few hundred dollars! Perhaps this is all you need to do to be successful Seller today! The following items are suggestions of ways that COLOR can cure problem rooms.

If you want to raise or lower a ceiling:
Use bright white on the ceiling or paint a vertical stripe pattern on the wall to stretch the sense of height. If you wish to lower a very high ceiling, you might add a mid to deep hue to the color of the ceiling.

If you want to shrink or expand the room:
Paint shorter walls a deeper color than the longer walls if the room is too narrow or too long. You can also use a combination of colors for example: you could divid a wall and paint the lower half one color and the upper half another.

Select the right sheen:
Glossier finishes offer more warmth and also seem to give added depth than a flat paint.

Source: The Los Angeles Times.

Connie on "Cavuto" - The High-End Market

I had the opportunity to once again appear as a guest of esteemed news anchor Neil Cavuto this week, appearing on his daily show "Cavuto" on the Fox Business Network. We spoke about a topic that I actually blogged about a couple of weeks ago- how the high-end luxury markets are faring in the wake of the nation's current credit and housing slumps. As always, it was such a pleasure to chat with Neil- click here to view the segment!

I also received a lovely note yesterday from Alexis Glick, VP of Business News and Anchor of "Money for Breakfast" on the Fox Business Channel. She thanked me for appearing on her show a couple of weeks ago (at 4:15 a.m.!) and also let me know that she had posted the interview on her blog- you can check it out by clicking here! I am so impressed with her accomplishments and it was such an honor to be her on-air guest.

Latest Trends in Home Design

The Los Angeles Times' "Home" Section from this past Sunday highlighted top 10 trends for home design for 2008. Below are their choices, many of which I feel are fantastic ways to update your home- just in time for spring!

Murals. According to Todd Imholte, president of the company that operates "Murals Your Way," wall art can be a tasteful and creative way to personalize a room.

Cozy Comfort. Rooms that are colorful and vibrant and filled with plush, overstuffed furniture from vintage antique stores or estate sales can be inviting and warm, as well as luxurious (and affordable!)

Recyclable Materials. Recycled, reused and refurbished materials are popping up more and more in the home. Expect to see more recycled carpeting, grass cloth wall coverings and bamboo flooring.

Warm, Spicy Color Palette. Color combinations such as deep purple and burgundy, copper, burnished orange and brown, mixed with unexpected splashes of aqua and chartreuse add unbelievable warmth to rooms. Accents such as chrome, mirrors and mercury glass finish off the effect.

Accent Lighting. Smaller, delicate chandeliers and fixtures provide a unique source of accent lighting, and can also be very energy-efficient.

Luxurious Textures. Textures such as silk or velvet drapery or cushions, natural stone or rich wood add luxury to every space.

Modern Decor. Modern decor is all the rage, with floating objects taking center stage, such as floating sphere chandeliers or square block-base furniture.

Minimalist Kitchens. Simple trims and molding, sleek appliances and warm, designer woods are taking center stage. Heavy, chunky cabinetry and bulky appliances are definitely on their way out!

Elegant Glamour. Refined silhouettes, luxurious finishes, exotic veneers and strong forms are elegant yet welcoming.

Feng Shui. It's all about enhancing positive energy! Balance your water, fire, metal, wood and earth elements in a harmonious way to get the most positive energy for your living space.

Source: The Los Angeles Times. Photo: themls.com

Bevery Hills, Brentwood and Santa Monica on "Forbes" List of Best Suburbs

This week, Forbes released their list of the best "standard of living" suburbs for the nation's 15 largest cities. Beverly Hills, Brentwood and Santa Monica were chosen as the best suburbs for the city of Los Angeles.

The magazine considered such obvious factors such as school quality and crime, but also looked at demographics such as income, education level, and home ownership levels of the suburb's residents.

Click here to read the full article at forbes.com.

(Property in the photo, 1611 Benedict Cyn Drive in BHPO, is currently for sale and can be viewed by clicking here!)

Breaking: Existing Home Sales RISE in February!

Numbers released from the National Association of Realtors yesterday show that sales of existing homes across the U.S. actually increased in February, a sign that things finally may be turning around.

NAR Chief Economist Lawrence Yun stated that while "we're not expecting a notable gain in existing-home sales until the second half of this year, the improvement is another sign that the market is stabilizing."

It also seems that even in areas where prices are falling, activity is strong. According to the NAR roughly half of all metropolitan areas in the nation are experiencing median price increases, while in areas that are seeing prices fall, "a rapid price decline has induced buyers to come into the market, and sales are now rising."

While it remains to be seen whether or not this improving trend will continue, one thing we know for certain is that real estate is LOCAL. Consumers need to work with professionals who have a deep understanding of their neighborhood in order to get a true understanding of a home's value and where prices may be headed.

(Property in the photo, 4218 Vicasa Drive in Calabasas, is currently for sale and can be viewed by clicking here!)

Connie on Fox Business Channels's "Money For Breakfast" Hosted by Alexis Glick

Yesterday morning I woke up VERY early to appear on Fox Business Channel's "Money For Breakfast," hosted by anchor and Business Week VP Alexis Gilck. Because the show airs live on the East Coast, I had to be in the studio on camera...at 4:15am! Needless to say, I was VERY sleepy by the end of the day.

I was asked to speak, along with Director of Deloitte & Touche LLP Real Estate Capital Markets Dennis Yeskey, about the influx of Canadian investors in the United States real estate market. It was an honor to speak with Alexis, who is an extraordinarily talented woman whom I have much respect for. Hopefully I will have honor of being asked to come on her show again in the future!

Working in Los Angeles, I cross paths with buyers from all over the world on a daily basis. One of the things that gives me an edge in working with these clients is the fact that I lived in Europe for seven years. Perhaps that is one of the reasons that I am often asked to comment on international influence on our real estate market- my time abroad gives me a greater insight and perspective to these issues. I think it is important to stay on top of what is happening in our global markets because it inevitably affects us here in the States- especially today, in a time of such uncertainty.

Fed Cuts Interest Rate by 3/4 Point

As suspected, the Federal Reserve did indeed cut interest rates today. Although the 0.75 point cut was a bit less than expected (many investors had hoped for a full point cut), Wall Street surged after the move was announced and had its largest one-day point gain in more than five years.

It remains to be seen how all of the recent rate cuts will affect our currently tumultuous real estate market. Economists note that it takes an average of six months for the effects of any kind of rate cut to be felt in the economy. What it could do sooner, however, is settle the fears of many consumers out there by letting them know that the Fed is willing to step up and do what they can to keep us out of a recession. (the dreaded "R" word!) Time will tell, but let's hope that consumer confidence can grow and that the rate cuts will begin to help us turn things around...

source: msnbc.com

Surprise Weekend Move: Fed Cuts Discount Rate

In a surprise move, the central bank cut the discount rate to 3.25% from 3.5% over the weekend, as a way to make cash more accessible to strapped banks. The move, which applies only to the Fed's short-term loans, was considered a surprise by many because it came only two days before the Fed's regularly scheduled policy meeting. At tomorrow's meeting, the Fed is expected to cut the fed funds rate (a consumer lending rate) by a full percentage point.

Stay tuned for more information on tomorrow's meeting, as well as information on how these cuts will affect you as a homeowner or potential home buyer/seller...

HEADLINE NEWS: Bear Stears Bail Out!

Bear Sterns was bailed out of trouble by the Federal government and rival bank JPMorgan Chase. This morning's move comes on the heels of last week's announcement by the Fed that it will provide as much as $200 billion in loans to banks and investment houses to try to alleviate market turmoil.

In addition, inflation has been a recent topic of discussion. Recent reports show that the rate of inflation is actually lower than many were speculating. It appears that certain areas of our economy are doing well, just as certain areas of real estate are also performing better than many are aware.

Whether you are in the market for a foreclosure fixer or a mansion in Bel Air, I can not reiterate to you enough how important it is to do your research and find quality representation. Please remmeber to qualify a Realtor as you would an attorney or a doctor.

HOPE Helpline Not Making Consumers Happy

Apparently the new Hope Now Alliance, which launched in October as a program to offer assistance to distressed homeowners, isn't offering so much hope after all. The toll-free number established for homeowners in trouble has received harsh criticism from Congress, state officials, and the very people they are aimed at helping- those facing foreclosure.

The Hope Now Alliance ws established to offer aide to the growing number of homeowners who are at risk of losing their homes. The partnership was promoted by President Bush, who mentioned it specifically in a December speech as part of his vow to take an active role in resolving the nation's housing crisis. The programe, however, has been receiving very negative feedback, plagued by insanely long wait times, difficuly getting through to a counselor, lack of follow-up on individual cases, confusion, and making minor loan modifications for those in trouble.

You can click here to read the article and hear some first-hand accounts. If you are one of those homeowners in crisis, please feel free to contact me so that I personally may put you in touch with someone who can help.

source: msnbc.com

Luxury Homes Still Selling Strongly

An article published by Businessweek yesterday discusses the strength of the ultra-luxury home market, despite all of the negativity we hear about housing on a daily basis. Some of the most lavish and luxurious homes our country has ever seen have either just sold or are currently for sale, including the former home of William Randolph Hears and Marion Davies, which is listed right here in Beverly Hills for $165 million, making it the highest asking price for a home in U.S. History.

Even in markets that we hear so much bad news about, the trend is quite clear: the high-end market IS performing. Areas like Las Vegas and Florida, with which we associate the worst of the foreclosure crisis, there are areas of robust sales. Trophy homes are moving- and moving very well. In Las Vegas, the luxury condos on the Strip still have very strong prices and sales. The same goes for Palm Beach, Florida, as well as our very own Beverly Hills. New York is also doing its part to keep up with pace, where recent mind-boggling sales include last year's $103 million oceanfront home in East Hampton, N.Y., and a $49 million townhouse on the Upper East Side which just recently closed.

How can these properties be immune to the mortgage and economic struggles being felt across the nation? Well, there are actually many reasons why these homes continue to move well.

• Quite simply, the mega-rich don't care what's going on in the mortgage markets because it probably won't affect them. If they see a property that they fall in love with, they have the means to cough up the $15 million asking price- CASH.
• The supply of those so-called "trophy" properties is limited- there are only so many of those in the world. And, there are only so many more that can be built without demolishing smaller homes, since land is a limited commodity.
• Foreign buyers are coming to our country in the face of the weak dollar to snatch up what amounts to "bargains" for them.

Who knows if this trend will continue, but for now at least it seems true more than ever...it's good to be rich. :)

Sources: msnbc.com, themls.com

Interview With Eduardo Umansky From Countrywide

Let's face it- times are confusing. I feel that we are constantly being fed mixed-messages regarding what's happening on the housing and mortgage fronts. Even as a real estate professional myself, I often need help gaining some insight as to what is REALLY happening out there, which is why I look to people like Eduardo Umansky from Countrywide Home Loans. Eduardo is experienced, intelligent, and, as I can tell you from past experience doing deals with him- he can make even the toughest loans happen. I recently asked Eduardo a few questions that I thought might offer a little perspective into this mortgage headache so many people are having. Fannie Mae just announced last week that it would begin accepting applications for Fixed Rate Mortgages starting April 1st for the new Jumbo loan limits, and May 1st for all Adjustable Rate Mortgage applications. Below, Eduardo gives us some further insight into the changes being made.

1. With the Fed funds rate cuts, why are the home loans not affected or increasing? Will the spreads continue to grow and is there anything to stop this current trend?
Fed controls liquidity and short term interest rates, such as overnight bank loans and prime rate. The influence on mortgage rates is not very significant.

2. My friend’s home equity loan has been unaffected by the Fed rate cuts- I thought the cuts would have a positive affect.
It will be affected if based on PRIME RATE changes. Those changes will appear on next month's statement.

3. When will we know the rates for the new limits that have gone into effect? I hear they will be slightly higher than the 417,000 conforming rate.
New limits for FHA are $729K for Single Family Residences, $934K for 2-unit dwellings, $1,129K for 3-unit dwellings and$1,403K for 4-units. Rates will be implemented by March 19th, 2008, or possibly earlier. Slightly higher loan limits will also be available with Government Guaranty. (Conforming loans)

4. What is the correct name for this new increased rate- is it still called a conforming loan? Yes- "conforming loan limits."

5. If I had a buyer today, could you get me this loan?
Yes, I can lock a loan and change it when actual rates are available on 3/19. The rate of the loan will be the rate of the day of the transfer.

6. What are the guidelines for this sort of loan, excluding area, that may differ from the original conforming loan restrictions?
Loans must be FULL DOC- i.e. full documentation. The FHA might also require two appraisals as opposed to the usual one.

7. Do you think this will help in the near future (next 3 months) enough that we will see some better housing data in areas with those increased limits?
This, unfortunately, will not affect foreclosures. It will help by increasing liquidity for purchases and refinances. I don't think it will have a "quick" effect in the housing market.

New Economic Data Released Today...

The Labor Department released its figures today, and they're a bit bleaker than we hoped for. Employers cut 63,000 jobs in February, which is a high for any month in the past five years. The job losses were witnessed in nearly every sector, including construction, manufacturing, retailing, finance and other professional and business services.

President Bush even spoke out today, saying that “it’s clear our economy has slowed” while trying to reassure us that the forecast was still good. He insisted that the government has recognized the problem early enough to get on top of it, and expressed hope that the rebate checks that will be sent out in May as part of the Stimulus Package would help spur consumer spending.

There was, however, some good news this week. On Wednesday HUD announced that Fannie Mae and Freddie Mac were temporarily raising their conforming loan limits, from $417,000 to as high as $729,750 in fourteen counties in California for loans originated between July 1, 2007 and Dec. 31, 2008. The idea is to make it easier for home buyers in expensive areas to get loans, as well as to increase investor demand for securities made up of more expensive mortgages. Los Angeles County, with our high home values, was one of the counties raised to the maximum level of $729,750. You can click here to see the values for your county.

(sources: car.org, msnbc.com)

Welcome!

Hello All! If you're a regular reader of my blog, you probably are surprised by the whole new look! I have revamped my blog and have vowed to update it much more frequently so that you all have up-to-the-minute insight on the real estate world. Please feel free to comment and share your thoughts- I truly enjoy hearing what you have to say.

In the meantime, you can access all of my archived blogs by clicking here.

As always, feel free to leave me a comment or send me an email if you would like me to comment on any particular subject, or if you have any thoughts about what you see here.

On that note....welcome and enjoy!

-C