REAL ESTATE 101

Some loan rates can look great in an advertisement but don't offer the whole story as to what you might ACTUALLY pay for the loan.

Points, PMI (private mortgage insurance), penalties, down payments and closing costs are also factors you need to consider.

When buying or selling a home, or refinancing a loan, understanding the contractual fine print and clauses can be overwhelming.  Know that I am here to help answer any questions you have. I have the experience and expertise to make sure you not only know your loans, but you also can sort out the options that make the most sense for you and your family.  Call me today to lean more!

TAKE FIVE - Five Handy Household Tips from your Neighborhood specialist

1. Stains in Plastic Storage Containers: Use a baking soda past (baking soda and water) and rub into the stain.  You can then rinse the vinegar (optional and wash normally.  Another method is to place container outside on a nice sunny day and the sun actually bleaches the stain out.  To avoid stains in the first place, spray container with cooking spray before putting things in it that stain i.e. spaghetti sauce.
2. Stickers, Decals, and Glue: To remove them from furniture, glass, plastic, etc. saturate with vegetable oil and rub off.
3. Stuck-On Food in Pots, Pans, and Crockpots: Fill the pan with water and place a fabric softener sheet in the water.  Allow the pan to soak overnight. The food will wipe right out!
4. Stovetops: To prevent grease and grime from sticking to your stove top, making it easy to clean, rub it down with car wax on occasion.
5. Tarnished Silverware: Line a cake pan with aluminum foil.  Fill with water and add 1 Tablespoon of baking soda per 2 cups of water.  Heat to 150 degrees. Lay silverware in pan, touching aluminum foil. Watch the stains disappear!

Environmental Reminders

• Do not bury or spread used motor oil on the ground as it will prevent anything from growing in that location for many years and may contaminate nearby water sources. To dispose of it, take it to your community recycling center.  By law, communities must have such a center, which may be located at an auto service or repair station, or at any station that sells or changes oil.  Diesel fuel, brake and transmission lubricants, lamp oil, and kerosene can also be brought to the recycling center.
• Whenever you apply pesticides, adhere strictly to the direction on the package.  Do not spray when temperatures are over 85 degrees Fahrenheit or when it is windy.

Open House - Sunday July 20th 1-3 This Sunday you will find me at 431 Hillside in Des Moines.  This is the first time I've held this home open.  This little home has been well maintained and is ready to move into.  It has 3 BR's, a large kitchen and dining area, hardwood floors, convenient laundry area, newer windows, and lots of storage space. It's located in a friendly south side neighborhood where the street is divided with a large island median. It really is a great home for only $67,900.  If you or someone you know might be interested in this home and would like more information, please contact me today.  Virginia Gruver 515/577-2412 or Virginia@RealEstateConcepts.net.

Directions - Follow Indianola Ave to Hillside, turn east to property.

Fannie and Freddie push the market higher?

Friday's news about the uncertainty of the future of Fannie Mae and Freddie Mac led to a huge sell off in stock for the 2 mortgage giants.  Was it warranted, or just a fearful market overreacting?  That question will probably not be answered today.  But, the Treasury department stepping up to help out lends a little more stability to an uncertain market.

Treasury Secretary Henry Paulson and FED Chairman Ben Bernanke have given the green light to Fannie Mae and Freddie Mac to borrow money directly from the Central Bank at the federal discount rate of 2.25%.  This is significant because it has never happened in the past.  The federal funds discount window has been historically limited to banks and credit unions, but this option being made available to Fannie and Freddie is giving a little boost to the mortgage bond market and mortgage rates this morning.

It is not likely that this is a long term rebound in bond prices, but it is worth mentioning.  In addition, the Producer Price Index (PPI) and the Retail Sales Report are due out tomorrow and will dictate the direction of the market when they come out.

If you have a mortgage currently working, you might want to go ahead and lock your rate.  But, if your mortgage is a little farther out, wait and see what happens tomorrow to make a decision to lock or not.

Michael Perry [CEO of IndyMac] called the markets for mortgage securities "panicked and illiquid" in a letter to employees Thursday.

He said the lender has "very strong liquidity, a good amount of excess capital," and added that "there are no realistic scenarios that I can foresee that would impair IndyMac's viability."

He goes on to say that IndyMac, a large Alt-A lender, will continue to "widen its pricing and tighten product and underwriting guidelines to ensure that a much greater percentage of our production qualifies for sale."

Quote above from August 2, 2007, TheStreet.com (IndyMac stock closed at $21.05 on August 2, 2007).

IndyMac was shut down by federal regulators over the weekend.

I thought the announcement by Realius today was worth noting — Zip Realty is their first national real estate partner for their Price Me Now game. You can see the game on Zip Realty here.More:Price Me Now Partners with Zip Realty...

Retirement is something that most people look forward to. The chance to take a break, to have all the time for yourself, to enjoy life after many years of hard work is indeed a very inviting prospect. However, financial instability makes the future of retirement a little bleak.

The Bleak Reality of Retirement

For many retirees, having an investment and savings can make a big difference when retirement arrives. In fact, recent surveys show that retirees today are only counting on their personal savings for support. Although the government gives Social Security, not all companies or employers provide traditional pensions for their employees. According to the Boston College Center for Retirement Research, in 2003 there were only 19% of workers who have traditional pensions to support them. This percentage continues to decline as more and more employers cut back pension plans for their employees.

Read full article: The Keys to a Happy Retirement

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There are times when the Seller or Buyer to a real estate transaction may appoint someone to act on their respective behalf and even to sign agreements relating to the Contract of Purchase and Sale as their agents, thereby meeting the requirements at law that all dealings involving land or interests in land be in writing. However, it is always mandatory (in British Columbia) that the agent obtain specific instructions prior to signing any documents on behalf of the parties to a transaction. This is all the more true when a Realtor is authorized to sign on behalf of one of the parties.

The written authorization must set out the exact terms, conditions and scope under which the agent is authorized to sign. A telegram, letter or fax may be used for this purpose, but it must be received by the agent before he/she attempts to act on the Seller's or Buyer's behalf. Agents must avoid signing documents on behalf of anyone based on verbal, telephone or e-mail instructions. Furthermore, evidence of written authority granted by one party to a real estate transaction must be attached to any and all documents where the agent has signed on behalf of the party.

Powers Of Attorney

Where it is desirable or necessary to rely on a Power of Attorney, it is widely recommended that it be granted to someone in accordance with the advices of a lawyer. When a person who has been granted a Power of Attorney signs a contract involving land or an interest in land on behalf of the person granting the Power of Attorney, the correct way for the contract to be completed is as shown on the following example:

"Mary Smith grants a Power of Attorney to Ted Lee to enter into a contract for the sale of her property located at [address in full]".

Ted Lee, then, would sign both the Listing Agreement and the Contract of Purchase and Sale using the following statement:

"Mary Smith, by her attorney in fact" followed immediately by Ted Lee's signature.

Furthermore, a transfer of title executed under a Power of Attorney to be filed at the Land Title Office (in British Columbia) at the time of completion requires the Power of Attorney to be drafted in proper form. This is so, because different Power of Attorneys can be granted by one person to another. While the form of such authority may authorize a party to sign contracts and certain other documents for another party, it may not be sufficient for Land Title registration purposes. Therefore, whenever a Power of Attorney is contemplated or utilized in a trade involving real estate, the parties ought to seek the advices of legal counsel as soon as possible to ensure the form of the Power of Attorney being used is valid and is acceptable for registration. It should be also noted that the Power of Attorney may expire after a specific time or be invalid for other reasons. Therefore the advices of a legal practitioner specializing in real estate transactions are always the best venue.

Dealing With Legal Or Beneficial Owners

The person or legal entity shown as the registered owner of a real property on the Certificate of Title at the Land Title Office may not be the person or entity that signs the Contract of Purchase and Sale as Seller of that particular property. This is a relatively common occurrence in the real estate trade. For a variety of reasons one entity may appear as the registered owner, while another entity may sign the Contract of Purchase and Sale as the Seller. This may happen, for example, if the registered owner holds the subject property in trust for another entity. In this case the beneficial owner (the person for whom the property is being held in trust) may sign the contract.

If the contract is signed by the beneficial owner, there will usually be a recognition of the trust in the contract {for example, John Doe in trust for Mary Black). As well, there will be normally a covenant by the Buyer to accept a transfer from the registered owner and not the beneficial owner who signs the contract. This covenant acts as a waiver of section 6 of the Property Law Act (in British Columbia), which provides that the person who signs the contract as Seller is the person who must sign the transfer. There may be warranties or representations of the beneficial owner, of the registered owner, of both, or limited warranties and representations of each.

In other circumstances the registered owner may wish to structure the transaction as a sale of shares rather than a sale of real property. Such sale may involve the shares of the registered owner or the shares of the beneficial owner of the interest in land.

It is always advisable to deal with legal or beneficial owners after a thorough title search has been executed. For example, in a typical residential real estate transaction problems can arise when a Contract of Purchase and Sale is drafted with the Seller when, in fact, the property is legally owned by some other person or company. In this particular case the Seller may have to transfer the subject property into his or her own name to comply with section 6 of the Property Law Act (a costly transaction involving, among other things, payment of taxes), or face the possibility that the Buyer may legally refuse to complete the transaction if presented with a transfer from the Seller as shown on the contract, rather than the registered owner as shown on title.

Buying From An Estate

A Buyer purchasing from an estate must be assured that the title must pass to him or her without legal problems, and that all parties who can claim against the estate have had their opportunity to do so. If Letters Probate have been granted already and the Wills Variation Act (in British Columbia) has been complied with, no additional clause is required. If, however, these steps have not been concluded a clause similar to the one that follows should be incorporated into the Contract of Purchase and Sale:

"Subject to the Seller receiving the following by [date]:

1) copy of Letters Probate; and 2) assurance that everyone entitled to claim under the Wills Variation Act has waived or released his or her claim against the subject property". An example of a proper way for an executor to sign a contract on behalf of the estate is:

"John Smith, Executor for the estate of (name of the deceased).

In some cases there may be a delay in obtaining Letters Probate.Should that occur, the Buyer may agree to an extension to allow the Executor additional time to obtain the Letters Probate.

To possess a home of our own there are various processes that has to undergo. It is not that simple. It is an after effect of a long process of planning, execution and proper administration of various factors. You deserve only the best home loan deal. Here are some tips to help you get the best mortgage deal possible.

Mortgages are not created equal. The home loan industry is thriving these days, with lenders offering various types to fit different financial circumstances and needs. The competition in the industry is just as tight that lenders are in the lookout for potential borrowers who would like to get a mortgage.

If you have looked around online for good mortgage deals and have signed up for a few sites, do not be surprised to receive email offers almost immediately after signing up. What you should look for is the best home loan deal that you can get given your circumstances. You wouldn't want to pay higher rates or pay unwanted fees. But even if this is the case, be very wary about the oh-so-attractive loan offers you see in the mail. Use your instincts, be a smart borrower, and get the best deal you can possibly get. Here are some steps to help you find the best deal:

Know your credit rating and your credit score. Many people are not aware of the fact that their credit standing has a good bearing on their home loan deal. It is a good idea to get a copy of your credit standing as it can be a useful tool in negotiating for the best loan so that you do not end up paying more than you should. If you have credit report mistakes, immediately correct them before applying for your loan.

Be careful when using your home equity to consolidate debts. Though debt consolidation is almost always a good idea, doing so against your home can pose bigger risk. This type of loan may be useful but missing out on your repayment may get you at a higher risk for foreclosure.

Shop around for a good deal. There is no harm in shopping around for a good deal. You can contact three or four potential lenders, ask pertinent information, and then compare their home loan offers. What you should look for is the lender which can offer you the best interest rate, loan term and those which can provide you with the excellent service you deserve. You should also pay close attention to closing costs and fees that they charge. Remember that you should never base your decision only on monthly payments. Some companies do charge low monthly fees but impose hidden fees or balloon payments which can either cost you more in the long run or will be difficult for you to pay in due time. Also, be very wary of those who will ask you to pay upfront fees before actual negotiations have been talked about.

Close your deal with caution. Once you have chosen the lender and the type of deal you think is best, make sure that you read all the home loan papers before signing them. Make sure that you understand everything written and that what is reflected in writing is the actual deal you talked about. Be careful of lenders who will rush you into signing. If in doubt, do not sign the home loan deal!

A few minor home improvements could make the difference to sell your home.. So it is worth spending a bit of time and money on home improvements. See our home selling tips below and you will notice that some of them wont cost you a fortune.

Price and presentation are critical to sell your home

Top tip :First impressions count, buyers will have already formed an impression before they step into your property. A well-kept garden, pathway and fence, plus a freshly painted front door are immediately appealing, whereas a scruffy outdoor space with a litter bin outside the front door may turn many prospective buyers away.

• De-clutter - don't underestimate the appeal of a tidy property.
• Throw out the junk - use moving as a good excuse to get rid of old, unwanted and unused items.
• Clean - dust and clean the whole house thoroughly, from cobwebs on the ceiling to crumbs and stains on carpets and rugs. Remember to wash down paintwork and clean windows.
• Natural Colours - research shows that, most buyers prefer natural, earthy colours to bright, bold shades. Although there is a wide range of paint colours available, magnolia is still the top-selling colour.
• Add a bit of colour - to prevent rooms looking too bland, use strong colours for accent walls or cushions and accessories.
• De-personalise - remove personal items, such as family photographs and children's drawings, which may distract potential buyers.It may sound harsh but it really helps sell property
• Maintenance – Complete all minor repairs.
• Major Jobs- If you don’t spend out on home improvements to complete major repairs it could have a disproportionate affect on the value of the property.
• Lighting - the right lighting can improve the mood of a room. A room looks cosier with a few table lamps rather than bright general lighting.
• Create a scent - it may be a bit of a cliché to bake bread or grind coffee beans just before the arrival of a potential buyer, but scent does plays an important role in creating the right impression.
• Open windows - most buyers like the smell of a freshly cleaned and aired room. Open the windows every day to let fresh air into the house.
• Avoid strong food odours - don't cook foods such as fish or curry before a viewing as the smell will linger.
• Take pets out - ask friends or family to look after pets during viewings.
• Fresh flowers and fruit - flowers and a bowl of fruit will brighten up a room and provide a pleasant smell.
• Define your rooms - a property will be more appealing if rooms have a specific purpose and this allows buyers to see the full potential of the property.
• Seasons - the best time for selling property is spring and autumn; the market slows down during late summer and over Christmas/New Year. If a property is sold while the market is buoyant, it's much more likely to attract the asking price.

Are you among the thousands of people in Greater Victoria who pay rent each month, knowing full well that you will never see that money again? For many, this need not be the case. Instead, why not take that money and build it into an investment that can last a lifetime? Right now there are excellent opportunities for first-time buyers. Mortgage rates are attractive and there are plenty of reasonably priced homes on the market.

What kind of home do you need and want?

Buying a home is a balance of many requirements such as family size, location, income and lifestyle. REALTORS® are excellent sources of advice and help in these matters. Not only do they have the experience and knowledge to make sure the choice you make will be the right one, but with access to the Multiple Listing Service® (MLS®), they can seek out suitable properties for you and provide you with a customized list of homes that meet your needs, wants and budget.

Ask yourself exactly what you need in a home. How many bedrooms? How close to schools or shopping centres? Do you plan to have more children? Do you need a garage or a finished basement? New homes offer extensive warranties and pristine conditions but may not have mature trees or landscaping. Older homes often include improvements such as finished basements or rec rooms, decks and patios. Be sure to have any resale home inspected for needed repairs or upgrading.

Next decide on a preferred location. Living in the city means you will be close to amenities such as theatres and shopping. If you prefer a more rural lifestyle, make sure the extra time spent driving each day won't detract from your enjoyment of the property.

Town homes and condominiums are obviously suited to particular lifestyles or budgets. Townhome or condominium living offers convenience and often means sharing common areas such as parking, hallways and landscaping.

What can you afford?

Once you have determined what it is you want and need, you'll have to find out what you can afford. The first tip is to set a maximum price range instead of just an upper price. It's not always wise to buy the most expensive home you can afford but better to aim lower in anticipation of extra costs or fluctuations in your income.

A REALTOR® or your financial institution can help you determine the amount of the mortgage you can carry by calculating your debt-service ratio. The rule of thumb is that the sum of all your current loan payments (car, personal, credit card, etc.) plus your mortgage should not exceed 40 per cent of your gross income. In addition, mortgage payments and property taxes should not be more than 30 per cent of gross income.

Buying your first home may seem intimidating in the beginning, but with careful planning, a clear idea of what you want and the help of a REALTOR®, home ownership can be become a joyful reality for you and your family.

I thought the announcement by Realius today was worth noting — Zip Realty is their first national real estate partner for their Price Me Now game. You can see the game on Zip Realty here.More:Price Me Now Partners with Zip Realty...