Paul C Longo

Buying or selling a home is one of the most important decisions a person will have to make in their lifetime. This experience can be daunting unless you are working together with a professional real estate broker who understands the process. If you are thinking of engaging in the buying process, contact me.

When Selling a Home:

A seller should never underestimate the importance of making a good first impression on a potential buyer. Here are a few simple tips that can help increase your home’s appeal and value:

An Appealing Exterior:
Keep the front walkway swept
Remove newspapers, bikes and toys from the front walk or yard
Park extra cars away from the property
Trim back the shrubs
Apply a fresh coat of exterior paint if necessary
Clean windows and window coverings
Keep plumbing and all appliances in working order
Maintain all sealants (sink, tub, window, shower, etc.) in good condition
Make sure roof and gutters are in good condition
Mow the lawn frequently and plant flowers, hire a professional landscaping company if necessary
A Clean and Inviting Interior:
Keep the kitchen and bathrooms spotless
Vacuum carpets and keep floor surfaces clean
Accent living and dining rooms with freshly cut flowers
Put dishes and laundry away
Make beds
Open drapes and turn on lights to enhance the atmosphere
Keep closets neat
Put toys away
Switch off the television
Keep pets out of the way and pet areas clean and odor-free
Make safe jewelry, cash, prescription medication and other valuables
Avoid clutter to enhance the spaciousness of your home

Generally speaking, potential buyers usually feel more comfortable when owners are not present. If an interested party is unaccompanied by an agent and request to see your property, please refer them to your real estate professional for an appointment. If you are leaving town, even for a weekend, remember to leave the number where you can be reached so that offers can be made promptly.

When Buying a Home:

Your first step in the process of buying a home is to determine how much you can afford to borrow. A basic rule of thumb is that a lender will want your monthly mortgage payment to be no more than 29% of your monthly gross income.

Mortgages and Home Buying Programs

There are many different kinds of mortgage programs available. It is best to do some research about the pros and cons of each program. A real estate broker can help you understand the steps you will need to take, and can refer you to a reputable mortgage broker or service. There are also special home buying programs available from various organizations and many local governments that offer special home buying programs to help first-time home buyers and those in a lower income bracket. Get informed - you may be surprised to discover what you are eligible for!

Determine Your Search Criteria

Begin your home search by focusing on the location where you want to buy, and the amenities you want in a home. Determine how much square footage you want, how many bedrooms and baths you need, etc. Knowing what you're looking for will not only help you focus your search but will also help your real estate broker understand your needs so that he/she can best assist you in the process.

Shopping for a Home

There are several avenues to take once you begin your home search. Your real estate broker can supply you with listings, based on your search criteria. You may also look for property on the Internet, and then ask your broker to set up an appointment to show you the house. Reading the real estate section of your local newspaper, or driving around neighborhoods that interest you is also a viable strategy. It is important to see as many open houses as possible, so that you can develop an understanding of the market, and get a solid idea of what is available in your price range.

The Home Inspection

Once you have made an offer on a home, you will need to schedule a home inspection, conducted by an independent authorized inspector. It is extremely import to hire a reputable inspector so that you know exactly what you are buying. Do not hesitate to ask friends, family, and co-workers for advice. If you are satisfied with the results of the inspection, then you can proceed to the Purchase and Sales agreement. If the inspector finds problems with the property, you may want to negotiate with the seller to lower the price, or to pay for certain repairs.

Appraisal

Your lender will require you to get an appraisal of the house you want to buy, to make sure it is worth the money that you are borrowing. You may select your own appraiser, or you may ask your real estate broker to help you with this task.

Homeowner's Insurance

Lenders require that you have homeowners insurance, to protect both your interests and theirs. Like everything else, be sure to shop around for insurance that fits your needs.

Settlement or Closing

Finally, you are ready for the closing. Be sure to read everything before you sign! You should have both your real estate broker and an attorney present at the closing to ensure that all is in order.

10 Ways To Make Your Home More Salable

10 Ways To Make Your Home More Salable

There's little doubt that the real estate marketplace is now in transition. Sale volume has begun to weaken and in many markets the days of quick sales and multiple offers are going or gone.

"The cooling from overheated sales conditions in recent months is helping to bring inventory levels up to the point where buyers have more choices than they've seen in the last five years," says David Lereah, NAR's chief economist. "Annual price appreciation is still running at double-digit rates, but the cause of those sharp increases is going away. As the market readjusts, price appreciation should return to more normal rates of growth this year."

Translation: Homes are not selling as quickly as before -- that's good news for buyers. Sharp increases in value are moderating -- that's also good for buyers. Values are not falling -- that's great news for sellers.

Meanwhile, the National Association of Home Builders says that permits for new construction for February fell by 3 percent when compared with a year earlier.

Neither the existing nor new home unit declines should trouble anyone. These changes follow record year after record year, a pace that's not sustainable. The good news is that the changes are modest rather than manic.

The catch is that a softer marketplace means sellers will have to fight harder to get top prices and quick sales. Here are 10 ways to get more out of your local marketplace.

Go for the junk -- and get rid of it. A house with less stuff looks bigger and roomier. If what you want to throw out can have value to others, see if you can help by donating goods to local charities.

Price within reason. Trying to sell a home for $700,000 when like homes go for $525,000 is a non-starter. The days of "testing" the market with huge price increases is finished in many areas. Overprice and you won't be competitive.

Use the best local broker you can find. Experience, connections and reputation can be a real edge when marketing a property.

Require your broker to have a marketing plan that makes sense for you and your property. The technique that sells one property may not be appropriate for another, so find the approach that's right for you.

If the home doesn't sell within a reasonable time period, think about changing the deal rather than lowering the price. In other words, rather than cutting the price from $500,000 to $480,000, instead keep the $500,000 price and offer a 2 percent "seller contribution" to help a buyer pay for closing costs. This approach is cheaper ($10,000 in closing cost help rather than a $20,000 price reduction) plus it gets to the real need of many buyers, closing assistance.

Have a home equity line of credit in place -- even if you don't expect to sell for several years. This way you can have funds available if you want to buy a replacement home while the current property is being sold. Just be aware of the risk -- if your current home does not sell in a reasonable period you could face lots of mortgage payments.

Make sure everything works -- and nothing leaks. Expect buyers to ask for a home inspection and be prepared to make reasonable repairs if requested. Remember that it may be better to upgrade an electrical service box than to look for a new buyer.

Find out what buyers thought after a showing or open house. Don't take negative comments personally. Look for ideas that can help you make a better impression with the next prospect.

Beware of buyers who want you to take back financing. At a time when loans with little or nothing down are available from every lender, don't go into the banking business and take back a loan when there is less risk to you with an outright sale.

Don't get upset with small inconveniences. If a prospect wants to see a home with little notice or at an odd hour, don't worry about it. It's better to show the property than to have a home which is both undisturbed and unsold.

What's Your Boss's House Worth? - Zillow Can Tell You

What's Your Boss's House Worth?
Zillow Can Tell You

By Noelle Knox
There's something voyeuristic about Zillow.com that draws you in. The Internet real estate tool gives the value of your home, your boss's, your high-school sweetheart's. You can even see it on a satellite map. Zillow.com will tell you how much homes in your neighborhood have sold for and what the property tax is. It has gathered data from county property records for 62 million homes across the country, and adds more daily.

There's only one problem: You can't believe everything you see.

The property values, or "Zestimates," are only within 10% of the right price 62% of the time, and the accuracy varies widely by county and state, ranging from a low of 47% for New York to a high of 82% for Nebraska, the company says.

There is no data available for Idaho, Maine, New Hampshire, North Dakota and South Dakota because of state disclosure laws.
Co-founder Richard Barton, who shook up the travel business when he founded Expedia.com, says Zillow.com is still in the test stage. "Our ultimate mission is to put great information and tools in the hands of everyday consumers." Barton, 38, founded Seattle-based Zillow.com last year with Lloyd Frink, 41, a former senior vice president at Expedia.com. They have 75 employees.

Zillow.com's debut this month has drawn mixed reviews. "My home was Zillow-priced at $429,000, and I just had it appraised two weeks ago for $510,000. Big difference," says Guy Sutherland, an agent at Windermere Real Estate in Seattle. "It's not reliable, and it's misleading to consumers."

Zillow.com also has received feedback from consumers who complain that the site has the wrong number of bedrooms or bathrooms, or doesn't reflect the value of a recent remodeling. Zillow.com allows users to modify a property description to get a better value, and Barton says the company is working to clean up the data.

Zillow.com also can be surprisingly accurate. Its Zestimate was just $5,000 higher than a home currently listed for sale at $489,000 in Orange County, Calif., says Dennis Mihelic, marketing director of Realty Executives/OC Dream Homes in Orange County.

Many real estate websites help buyers and sellers, including homevalue.com and realestateinfo4free.com, as well as regional sites. But these sites usually require customers to give an e-mail address or telephone number, which is passed to real estate agents who pay for leads on potential clients.

Zillow.com doesn't do that. It plans to make money selling ads on the site.

Last year, 77% of home buyers used the Internet for research, the National Association of Realtors says; 24% said they found their home on the Internet.

Taxes & the Homeowner:

Taxes & the Homeowner:
Rolling Over Capital Gains

If you sell your main home for a large profit, you may owe capital gains taxes. However, you can exclude up to $250,000 in capital gains from your taxable income, provided you meet the IRS' ownership and use tests.

If you're married and filing a joint return, you can exclude up to $500,000 in capital gains from your income, provided:

Either you or your spouse meets the IRS' ownership test. Both of you meet the IRS' use test. Neither of you have excluded the capital gains from the sale of a home in the previous two years.

The amount of your capital gain is your amount realized minus your adjusted basis. If your adjusted basis is larger than your amount realized, you have a capital loss.

To calculate your adjusted basis, start with your basis. This is the cost of buying or building your home, and includes closing costs and settlement fees. Add any increases or decreases to basis to calculate your adjusted basis.

IRS Pub. 523: "Selling Your Home" includes two worksheets. The first worksheet helps you calculate your adjusted basis. The second worksheet calculates the gain or sale on your home, and the amounts of any exclusions or taxable gains.

If you have a taxable gain, you'll need to complete Schedule D of IRS Form 1040.

For additional information, see IRS Pub. 551: "Basis of Assets."

Getting the Best Deal on a Home

Getting the Best Deal on a Home

Buying a home is very often an emotional process especially if it's going to be your primary residence. Every buyer wants a good deal, but as one California agent told me, they'd like to find money on trees too! Well, buyers, fear not -- you don't have to start searching for that money tree to buy your next home. Just make sure you review these helpful tips before you make your next offer on a house. It could give you an advantage over another buyer in the market.

Determine true market size

There may be plenty of homes in a particular area where you are house hunting, but that doesn't mean that they'll all be suitable for your needs. Identifying how many homes actually could be right for you will help to determine your negotiating power. Choices are always critical to creating a better deal.

"If there are only two homes that meet your needs then it may not be possible to negotiate the best possible offer," says George Mantor President and CEO of The Associates Financial Group in Carlsbad, California.

Look for vacant properties

Finding properties that are vacant is a good opportunity to get a deal. Very often sellers might have moved out because they purchased another home and they don't want to now have to carry two mortgages. The longer vacant homes sit on the market, often the more eager and motivated the sellers become to begin negotiating with buyers.

Look for the diamond in the rough

Have you ever been shown a house and your first thought was, "This is awful. Who would ever live here?" The home sells; the new owner makes a few changes to it and puts it back on the market. You go see it again and it feels completely different -- now it's charming and pleasant. This is the diamond-in-the-rough scenario. A lot of buyers will pass up a good buy on a home because they can't see its potential.

Real estate agent, Tim Finn of Keller Williams Realty in Woodland Hills, California saw how his savvy clients got the upper hand because they could envision how the home would look after a little work was done to it.

"The property was really nicely redone by somebody five years ago but the man living there hadn't really done a thing since and he kept a lot of cats there -- it smelled really bad. [My buyers] were willing to overlook that. They knew that once the cats were out of there and the place was cleaned up it would smell fine, so they got a good buy," says Finn.

Look at schools in the area

You may not have kids but you'll still want to look at the school districts where you are planning to buy your home. This can be a good bargaining chip with the seller. "If the schools are really, really great it re-affirms that there is underlying value in the property. If the schools aren't so great then maybe it's a negotiating point," says Mantor.

Be willing to visit difficult-to-show properties

Some houses that are considered good buys on the market are the ones that frequently aren't easy to show. Whether it's because a tenant is living there and won't cooperate, the seller has refused to allow a lockbox to be put on the home or the showing hours are extremely limited -- regardless of the reason, this is a home you should see. Why? Because many agents and buyers won't bother with the home as it is too difficult to show. If you have a home for sale with minimal showings, then there are likely very few, if any, offers. It's the perfect opportunity to bait a seller by putting in an offer.

Remember, though, you have to be patient with these types of homes and you have to let your agent know that you're willing to take the risks that go along with seeing difficult homes to show. "Typically if I take [a buyer] out to a property and we get stood up by the tenant, that reflects badly on me and I may lose that buyer. But if that buyer has told me 'look, Tim, don't worry about these kinds of things,' then I have permission to attack those sorts of problems and they can result in a very good buy," says Finn.

Be flexible with your closing date

There are lots of reasons why sellers have to close escrow by a certain date. They may be trying to move to get their children into another school or they may have a job lined up somewhere else -- whatever the reason, if you can match your closing date with the seller's you might get the best deal on the house. Make sure you know when the seller wants to be out of the house before you put in an offer and then do your best to meet the seller's closing date.

Shy away from price-per-square-foot method

This method only determines the square footage of a home, but it leaves out upgrades such as recently-remodeled kitchens or bathrooms. It also doesn't take into account homes that have views or are located on very busy streets. It gives you an idea of what you're paying per square foot, but other details about the home may be the reason it is priced higher or lower than a home in the neighborhood with similar square footage.

"It isn't just the price. It's really how close does this particular thing come to providing you the satisfaction that you would get by virtue of the fact that it meets more of your needs," says Mantor.

If you can keep your emotions in check, practice patience and follow the tips in this column, you'll find you're in a better position to get the best deal on your next home

Unlocking the black box -Ten surprising tips for improving your credit score

Unlocking the black box
Ten surprising tips for improving your credit score

SAN FRANCISCO (CBS.MW) -- Given that credit scoring is based on proprietary statistical models, there's little hope that consumers will ever fully understand why they've been allocated one score over another. While light is increasingly being shed on how the system works, much of it remains a mystery. "It's far too complex and confusing for consumers. It's just very, very difficult to know what you should do," said Gerri Detweiler, author of The Ultimate Credit Handbook and founder of DebtConsolidationRx.com.
"Part of the problem is there's just so much information being put into and coming out of credit reports. It's getting harder than ever to stay on top of it, but if you don't you end up really paying the price," she said. A steep price: A consumer scoring 600 pays about $300 more a month on a $150,000 mortgage, or almost $108,000 over the life of a 30-year fixed-rate mortgage versus someone logging an 800, according to the MyFico.com calculator. And people with high scores can be hit the hardest. "The irony is, the higher your score, the farther you can fall," said Craig Watts, spokesman at Fair Isaac, creator of the FICO score. One late payment could push an 800 down to 640. When someone with an 800 "stumbles for the first time it puts them in such a different pool of consumers their credit risk increases hugely," Watts said. That consumer is "much more likely to run into problems than they were before they encountered that single (late) payment. In order to reflect that change in their risk, the score drops precipitously," he said. Given the degree to which scores affect your financial life, consider the following ways to push your score higher. Some may even surprise you:

1. Ensure lenders are reporting your credit-card limits

A chunk of your score is based on revolving debt outstanding compared with the total amount of credit available, or your debt-to-credit-limit ratio. If your debt nudges up against your credit limit, your score will fall. But some creditors withhold credit limits to tarnish customers' credit histories, making them less appealing to competitors. "If a lender doesn't report your credit limit, you look a little bit worse to any other creditor, and you're less likely to get (competing) offers," said Brad Scriber, credit-scoring expert at the Consumer Federation of America. "Credit-card companies benefit by protecting their customer base, and consumers are left to pay higher prices for a wide range of services," he said. "Complain to your credit card company. Tell them you don't like their gaming the system to hurt your credit score."

2. Pay down a home-equity line of credit

Home-equity lines of credit are considered revolving credit, Detweiler said. One client raised his credit score by 60 points by paying down his $50,000 equity line. "It was having quite an impact," she said.

3. Request good credit history on your report

Often, student loans and other debt aren't reported to all three agencies, potentially reducing your score. "Ask your lender to report it, or you can write to the credit bureau directly. 'I have this account. Please add this to my credit file,'" said Lynnette Khalfani, author of "Zero Debt: The Ultimate Guide to Financial Freedom."
"The disputes don't always have to be removing information. The dispute can be 'I have this student loan and I paid it and I want that shown on my credit report.'"

4. Be wary about moving to a new 'credit scorecard'

You'd think a bankruptcy filing dropping off your credit report after the requisite 10 years would push your score up. That's what one of Detweiler's customers thought. Instead, she said, "it went down about 10 points." Said Watts, of Fair Isaac: "This can happen. It can be a rather unpleasant bump." Risk models put borrowers into different groups to compare them. The FICO score model has 10 groups. With a bankruptcy filing on his report, Detweiler's client was grouped with others with similar filings, but his single negative entry made him look less risky than others in the group with worse credit histories. Once the filing aged away, he was moved to the pool of people without bankruptcy filings, where his skimpy credit history looked worse, pushing his score down.

5. Ask about the date of last activity

A creditor may report your payment of an old debt as new account activity, harming your score because new actions are weighed more heavily than older transactions. Your effort to take care of long overdue accounts may push old, negative information to the forefront of your credit report. A five-year-old debt "doesn't hurt your credit score as much," said Evan Hendricks, author of "Credit Scores & Credit Reports: How the System Really Works, What You Can Do." "If you pay off that five-year-old debt and they change the day of last activity to the day you paid it, then this five-year-old collection becomes a new collection," he said. Ask creditors and credit bureaus to refrain from updating the date for old debt.
Fair Isaac is working to change the practice. "We've been working with the credit bureaus to help them understand the problem and persuade them to change the way they're recording
these activity dates," Watts said. "We've had a lot of success ... two out of three bureaus do it this way now."

6. Remove duplicate data

There's a reason consumer advocates repeat their "check your credit report" mantra: Oddities and errors occur. For instance, a lender may sell a loan but it appears on your report under the original and new lenders' names. "It makes it look like you've got two, three, four times as many loans out as you do," Hendricks said. "You want to watch out to make sure only the correct number ... are being reported on your credit report." See Ray Martin's advice on credit-report errors.

7. Consider credit re-scoring through a mortgage lender

Those shopping for a mortgage might ask for a credit re-scoring to get negative information off your report quickly.
"You can go to a lender who will submit your documentation to one of the big three credit bureaus," Khalfani said.
"All of the credit bureaus have special departments set up to deal with those kinds of requests on an expedited basis. After they receive proper proof that there's been a mistake and update your credit file, most times it raises your FICO score," she said. This process is a quick means of dealing with tax liens or collection accounts that erroneously show up as unpaid, as long as you have official documentation and are applying for a mortgage.

8. Don't close old accounts

Closing an old account in good standing could harm your score by shortening your credit history. "What you've done is decreased your average account age. This is another one of the factors that goes into determining your credit score," Khalfani said. Closing that account also reduces your available credit, making your debt-to-limit ratio higher, thus negatively affecting your credit score. Plus, there's no guarantee the closed account will disappear. "It will stay on your report as long as the credit bureau wants to keep it there," Watts said.
Others say it's OK to close accounts, but avoid closing those with the longest history. "Part of what they're looking at is the length of the history ... close the more recent ones before you close the older ones," said Deborah McNaughton, president of Professional Credit Counselors and author of "The Get Out of Debt Kit: Your Road Map to Financial Freedom"

9. Keep revolving-account balances low

Along with paying bills on time and catching up on past-due accounts, keep your account balances low, and don't open a slew of credit lines. "So many people get hit because they have too-high balances to their credit limit," McNaughton said, adding that keeping balances at 30 percent of your credit limit will help your score. The FICO score measures balances on individual cards as well as total debt outstanding. But should a consumer run up three cards to moderate levels, rather than maxing out just one? "Perhaps, depending on what else is on her credit report and how soon she pays off the debt," Watts said. His rule for a better FICO score: "Keep balances low when possible and pay down any high balances."

10. Don't open too many credit lines

McNaughton recommends no more than three or four open credit lines. But credit scoring is never that simple. Here's Watts: "Say you and your friend both have been managing credit for just one year and the only difference in your credit reports is you have six accounts and he has three. It's likely your higher number of accounts will pull your score down relative to his score because people who open a lot of credit lines very early in their credit lives are statistically more likely to have credit problems in the next 24 months."
But 30 years later, and both of you perfect, on-time bill payers? "Now your six accounts could improve your score compared with your friend's score, because statistically your mastery of six accounts makes you a better credit risk than someone who has successfully managed just three accounts over 30 years," Watts said.

I will continually strive to provide you with excellent service because, in my business, the most profound assets I possess are your respect and trust and I would rather spend my time servicing loyal clients such as you.

If you or any of your friends or family are thinking of buying or selling a home, please give me a call with their name and address and I'll follow up with them.

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