Is the old American Dream of owning your own home or your own car or at least your own purse going down the tubes? If the proponents of transumerism are right, then maybe it is. Let's hope they're not right!  Just what is transumerism, you may be asking. It's a supposedly anti-materialistic, leasing lifestyle where buyers don't buy individual things they have to take care of and keep, but rather purchase access to a variety of things that come and go. So in the long run, transumers are no less materialistic as they would have us believe, they just prefer different things rather than the same old thing. For example, how about this intriguing idea. A company called BookSwim, which is similar to Netflix that rents out movies, except they rent out books. Gee, I thought that's what libraries... 05/27/2009

Congress is pumping out reform legislation, with support from both sides of the aisle, that's aimed at correcting some of the problems that contributed to the financial crisis. Last week alone President Obama signed two major bills into law. The first is intended to combat widespread mortgage fraud. It authorizes nearly half a billion dollars for the federal government to hire new prosecutors targeting mortgage fraud, and to beef up Secret Service, U.S. Postal Service and HUD fraud investigation capabilities. The Fraud Enforcement and Recovery Act extends the federal government's legal reach to pursue companies and individuals who currently avoid federal oversight and pursuit. Under the legislation, people committing mortgage fraud would now be subject to federal investigation and prose... 05/27/2009

Loan modifications and principal reductions are big news for homeowners, but what about real estate investors who own apartment buildings, strip shopping centers, and small office buildings? Are loan "mods" possible for them? Absolutely, says Jonathan Hornik, executive vice president and general counsel for Kennedy Funding, Inc., a New Jersey-based lender who not only helps investment property owners negotiate debt restructurings with their creditors, but provides the take-out financing to make the deals happen. In fact, according to Hornik, far more loan modifications involving writeoffs of portions of existing mortgage debts are needed in commercial real estate right now. Many income properties carry loans that must be rolled over -- refinanced -- in 2009, 2010 and 2011. But with decl... 05/26/2009

Selling your home may not be in the near future for you, but that doesn't mean you shouldn't conduct proper maintenance on it to keep it in the best shape for a future sale. Here are some things to do every spring: First, open the doors and windows and let the sun shine in. This can even kill some mold and other pests and put you in a great frame of mind to complete the other necessary maintenance chores. Be sure to change or clean the air filters on your air conditioning and heating units. A good plan is to change them once every month or two during seasons of use. Have a professional inspect the system for any problems before they happen. This will be a good time for you to consider which of the new energy tax credits you may be able to apply for when you upgrade this system. Keep mol... 05/26/2009

Being a salesperson is one of the greatest professions on earth. As real estate salespeople, we are helping people achieve the great "American Dream". We get into trouble when we don't understand the process of the sale. Most real estate salespeople have never studied sales. They have learned a few scripts and dialogues, but they don't clearly understand the buying process. They have never become students of selling. To be a Champion salesperson you have to understand and study sales. The first step is to understand the sales process. The truth in sales is that people make decisions based on emotion. How they feel emotionally about something governs their decision-making process. We don't do things based on logic, reason, and intelligence. We will use those tools to justify our decision... 05/22/2009

A home is not an island. The surrounding neighborhood is just as important because it can have a big impact on your lifestyle -- safety, available amenities, and convenience all play their part, according to the National Association of Realtors (NAR). NAR also says you can keep your home value buoyed if you find the right neighborhood. And you can find the right neighborhood by getting information direct from the best sources -- rather than from second hand and often incomplete data bases professing to offer you one stop shopping for all your neighborhood checking needs. • Make a list of the activities -- movies, health clubs, churches -- you engage in regularly and stores you visit frequently. See how far you would have to travel from each neighborhood you’re considering to engage in y... 05/21/2009

In today's sluggish real estate market, if you really need or want to move out of your old residence but are having a problem selling it, turning it into a rental property may be your answer. Here are some tips to help you with your new role as a landlord:  1. Be Sure You Know the Law. A good place to start is by looking at the Dept. of Housing & Urban Development website and reading up on how to stay within the law while renting property.  2. Be Careful How You Advertise. Don't have any discriminatory language. If there are certain types of renters that you prefer, you can advertise where you think they will be searching. For instance, young tech savvy people are more likely to look on the Internet for ads while seniors usually look in the newspaper. Be sure to list details about the h... 05/21/2009

The National Association of Realtors is reporting that the national media existing single-family home price was $169,000 in the first quarter 2009 -- down 13.8 percent from the first quarter of 2008. Dr. Lawrence Yun, chief economist for the NAR, said some areas showed dramatic drops in home prices. "In areas with the biggest price declines, we also see much higher levels of distressed sales which are distorting the data," Yun said. "We are very much in a bifurcated market with sharp differences between foreclosures and short sales on one hand, and traditional homes on the other. In many cases homes are selling below replacement construction costs, which speaks to great value in the current market." The bright spots in the market were found in Nevada, California, Arizona, and Florida. A... 05/20/2009

Golf great Greg Norman was keynote speaker at the unveiling of 52 private villas that will act as the cornerstone of a $1 billion development in the island country of Dominican Republic in April. Known as “The Great White Shark,” Norman greeted an international press corps to show off his latest golf course development at Costa Blanca’s two-day kickoff. Costa Blanca’s plans are enormous; spread over 300 acres in the town of Juan Dolio and incorporating 10 towers with 52 private villas. The condominium project is the latest of condo developer Group Metro. The Caribbean development will play host to a mega-yacht marina, as well as the usual accoutrements of a luxury condo development – “a tennis village, clubhouses for both tennis and golf, a secured, private beach, and the first signatur... 05/19/2009

From just about every perspective, missing a mortgage payment on purpose in the hope of convincing your lender to modify your loan is a bad idea. In days gone by, when the mortgage market worked a bit differently, skipping a payment or payments might have helped your lender get the message that your mortgage payments were simply too high and they needed to help you by changing them to something more affordable. That is not the case today, however. In fact, skipping payments can cause other major problems down the road. For example, your credit report will suffer and your chances of obtaining credit cards or a car loan will dwindle along with the chance of refinancing your mortgage or obtaining another one in the future. As if that weren't enough, the missed payments are still owed, but ... 05/19/2009

Home builders and Realtors cheered in Washington last week when HUD Secretary Shaun Donovan announced that FHA will allow lenders and government agencies to “monetize” the $8,000 federal homebuyer tax credit, providing purchasers with downpayment cash upfront, available at closing, rather than waiting for the IRS to mail them a tax credit check. Speaking at the mid-year conference of the National Association of Realtors, Donovan said HUD supports “bridge loan” programs designed to help first-time buyers come up with needed cash. Under the bridge loan concept, an FHA-approved private lender, a state or local housing agency, or an FHA-approved nonprofit organization could advance as much as $8,000 for downpayment and closing costs -- in anticipation of receipt of the $8,000 credit months ... 05/18/2009

When the sunshine starts to warm the air (and melt the snow, depending on where you live), many of us homeowners start to think about making some outdoor improvements. That can be a very good decision especially if selling is in the near future. According to Angie's List, a Web site where thousands of consumers share their ratings and reviews on local service providers in more than 425 different categories, well-designed landscaping can increase the value of your home by 7 percent to 14 percent. I've written a lot about the importance of curb appeal and, well, let's face it, curb appeal is similar to meeting someone for the first time -- a good first impression is likely to increase the chances of a second meeting -- so, too, for a home on the market. With still so much inventory for sa... 05/15/2009

When builders go bankrupt in the middle of finishing that handsome house, banks who wind up with the house have two options: either hire another contractor to complete the job so the house can be sold or sell the house in its unfinished state.  Should you buy such a house? Is it really as good a deal as it seems or will it wind up being a money pit? Here are a few suggestions of ways you can try to make sure that this great buy you've found is really such a bargain after all:  Talk with the home's neighbors. They can probably tell you how long the house has been standing and possibly some information about the builder. If they tell you something that is a bit scary, you may be better off to look elsewhere for that dream home. Follow the city or county paper trail. All new construction h... 05/14/2009

Want to get top dollar when you sell your home?Listen to what professional appraisers say.Their job is to determine the true market value of homes so they know what makes a property sell for the greatest amount and can tell you how to best ready your home for market now and later."A few years ago, houses were selling quickly with little effort. Now many homeowners actually have to make improvements before they can sell their home," said appraiser Mike Evans, a Fellow of the American Society of Appraisers (ASA).In the term, cosmetic touch ups can help a home sell a faster. They include:• Updating the paint and carpeting. A fresh coat of paint (preferably white) inside and out and new floor covering give the home the look and smell of "new." With the facelift treatment, gone are the wrink... 05/14/2009

Last week saw the official kickoff of Fannie Mae's and Freddie Mac's mandatory new system of appraisals nationwide, and some mortgage and appraisal groups are up in arms over sharply higher costs for consumers. The so-called "home valuation code of conduct" imposed by Fannie and Freddie puts most appraisal assignments in the hands of management companies, some of whom are owned by major lenders such as Bank of America and Wells Fargo. The Appraisal Institute, which represents 20,000 appraisers across the country, and the National Association of Realtors, which has thousands of appraiser members, both have been critical of the new code. The Institute is particularly incensed at the expanded management company role in appraisals because those companies pay appraisers much less than their ... 05/13/2009

Want to invest in home values without actually buying houses? Well, starting later this month, you'll be able to do precisely that by buying into New York Stock Exchange-traded funds tied to the movement of house prices - up or down - in major metropolitan real estate markets. They're called "Macro shares," and their values will move based on home prices as measured by the Standard & Poor's/Case-Shiller index. If you think house prices in 10 key markets are likely to decline over the next several years, you can buy "down" Macro shares from your stock broker. On the other hand, if you believe that values are likely to rise, you can buy "up" Macros. The cost of a Macro share at any given time will depend on investor demand for either "up" or "down" indexed shares. So, if more investors be... 05/12/2009

So you've finally found the house of your dreams. The price is right, the landscaping is perfect, it's close to school and work and you simply must have it. You can handle mortgage payments but there's one obstacle that still stands between you and your dream house. The down payment. In days gone by, it was sometimes possible to buy a house without a down payment, but for the most part, those days are long gone. Perhaps if you're a veteran, you may be able to get a no-down-payment VA loan through the U.S. Department of Veterans Affairs or you may qualify for an FHA loan with a 3.5 percent down payment. But for those who need to come up with down payment dollars, here are twelve ways to find that money: Set up a savings plan to take money automatically out of your wages Find relatives w... 05/12/2009

The Treasury Department recently released its Home Affordable Modification Program Guidelines (part of its Making Home Affordable initiative), which include eligibility requirements to determine which homeowners qualify for relief under the plan. Following are the eligibility requirements as specified in the guidelines: Mortgage must have originated on or before January 1, 2009. Home must be an owner-occupied primary residence (verified with tax return, credit report, and other documentation such as a utility bill) – this program is not designed for investor-owned properties. Home must be a single family 1-4 unit property (including condominium, cooperative, and manufactured home affixed to a foundation and treated as real property under state law). Home may not be vacant or condemned. ... 05/11/2009

When the real estate bubble burst, so too, did the dreams of many speculators who were snatching up and flipping condos like hotcakes. Today, buying a condo can still be a great choice but getting financing for it could be a bit more challenging because some financial institutions are "blacklisting" some condo complexes due to high speculator ownership and dropping prices. According to a recent Marketplace report by Dan Grech, government-backed Fannie Mae and other banks in states such as Michigan, California, Florida, and Nevada are refusing to lend to credit-worthy potential buyers who are interested in purchasing condos in certain complexes that may have either high speculator ownership or freefalling prices. "If no one can get financing, no one can buy the available units; eventuall... 05/08/2009

In talking to real estate folks from around the country one of the common themes I have heard is that so many buyers are "sitting on the fence." They just don't know whether to get into the market now or not. Clearly, they lack sufficient incentive. (It wouldn't be surprising if this same lament is to be heard among stock brokers.) One thing, though, is for sure: there are trillions of dollars (that's trillions with a T, not billions with a B) sitting on the sidelines looking for a smart and profitable place to be. They are waiting for a sufficient incentive to move into this market or that. It is a stated and worthy goal of the current administration to bring stability to the housing market. So far, however, the main focus of the administration's efforts has been on trying to keep thin... 05/07/2009