Open Houses Work

A lot of work goes into preparation for an open house but it is all worth it? Positioning a home to be at its peak condition increases exposure and with that the potential for sale.

Many times I’ve heard homeowners lament, “This place has never been this clean.”  And of course they get to enjoy the “freshening” of their home while it is for sale.  We have become a very visual, hands on society.  The traffic that an open house brings through a property provides important exposure and excitement.  Holding a home open also provides an opportunity for prospective buyers and people who know prospective buyers to see first-hand what photographs can’t show… spatial relationship.

Finding open houses can be a challenge in some communities.  Most jurisdictions do not allow open house signs to be placed in the public right-of-way.  They often overlook the minor infraction because it poses little threat to the security and safety of a community.  Oro Valley Arizona is taking a proactive stand on the matter, much to their credit.  By establishing a licensing program for right-of-way advertising, specifically aimed at temporary real estate signage, Oro Valley is working with the community to find balance.

Each community is a bit different but all homeowners should enjoy the benefit of a high standard of care when it comes to selling their home.  Knowledgeable professionals and homeowners prefer the Sign Ordinance language, “No sign shall directly impede pedestrian, bicycle or motor vehicle traffic when placed in the public right-of-way.  Signs may be placed between curb and sidewalk where space is available.  Signs may not be placed on any paved surface.”  This language provides a thoughtful, reasonable solution to signs placed everywhere along a road side.  After all, a temporary open house sign with home buyer traffic is a much better “brand” for a community than foreclosure and short sale signs.

Mark Finchem
Office: (520) 808-7340
MFinchem@longrealty.com

Adding Equity without added Expense

Can you accelerate adding equity to your home without spending a single extra dollar?  Yes it is possible and here is how:  You will need to know the purchase price of your home, how much you put down and how much you financed.  If you have a single mortgage and you are paying MIP or PMI (mortgage insurance) identify who you are paying it to.  If you don’t know contact your lender and they can tell you.

The next step is to contact a REALTOR and ask for the current comparable properties.  The difference between what you financed and the price you paid for your home is the Loan to Value Ratio.  When the value of your home increases and the debt you have against it decreases the Loan to Value Ratio increase.  So, if you put 10% down on a $200,000 home ($20,000) and the value of the home has increased to $218,000 plus you have paid down about $2,000 in debt the Loan to Value Ratio has grown to 20%.

Now you can turn to your lender and present your case.  Most mortgage notes will have a condition that allows the mortgage insurance to be lifted when the Loan to Value Ratio rises above 80%.  You can now add about $105 a month to the principal in what is called a PIP Reduction Plan.  Basically it is Principal + Interest + more Principal.  That is one way you can accelerate your mortgage loan pay off and build equity faster.

Make it a habit to contact your REALTOR once a year for a PMI checkup.

Mark Finchem
Office: (520) 808-7340
MFinchem@longrealty.com

Let’s Burn the Mortgage

Generally Buyer’s focus on the “Price” of a home and not the “Cost” of a home.  The two major considerations when buying a home are present and future, also called Price and Terms.  Price is that sum which one agrees to pay at the moment of closing.  It is the cash that moves from the Buyer to the Seller in that moment called the transaction.

Terms on the other hand are usually what happens after the closing action; not always, but usually.  Interest paid to the Buyer’s Lender would be one of the terms.  It was not dictated by the Seller, but it is part of the transaction nonetheless.  Over the life of a 30-Year, 5% Fixed Rate Mortgage on a $250,000 home the homeowner will pay approximately $434,825 (based on a 10% down payment).  While it is true that in most cases the home mortgage interest can be claimed as a deduction on the homeowners income tax filing, is there an alternative?

PIP (the payment of Principle + Interest + Principal) can save big money over a short period of time.  Paying the current months payment plus the following months principal in effect cuts the term of the loan in half just a little at a time.

At one time in the not too distant past homeowners celebrated the payoff of a mortgage with a mortgage burning party. What a great time to return to that tradition!

Mark Finchem
Office: (520) 808-7340
MFinchem@longrealty.com

Making Your Home Energy Efficient

Energy efficient renovations, especially here in Tucson, are more than just an investment in your home; they pay dividends here and now.  When it comes to summer remodeling, there’s no better way to invest your hard-earned dollars than by making your home energy efficient. An energy efficient summer remodel is truly a worthwhile endeavor as it will result in years of savings on your energy bills.

Some of the common items you can buy and integrate into your energy efficient renovation include:

-Insulation systems and materials
-Roofs that resist heat gain
-Biomass burning stoves
-Energy-efficient windows
-HVAC systems with the highest efficiency tier
-Solar panels
-Fuel cells
-Geothermal heat pumps
-Wind energy systems

Some of these improvements to your property also carry a premium.  They may be eligible for grants or tax incentives.

Mark Finchem
Office: (520) 808-7340
MFinchem@longrealty.com

Hey Mark, is it time to buy yet?

We are at the beginning of a new cycle:

Think about the last time someone told you that you stand at the point of maximum opportunity.  Has anyone ever told you when the time was right and when you should make a move?

In a nutshell the Tucson housing market is alive and recovering for 2010, but the Job Recovery Package implementation (in front of the Arizona Legislature) is crucial for our long term health!

The December Monthly Statistical digest is providing clear and convincing evidence the Southern Arizona housing market is showing definite signs of improvement.  The December 2009 recap shows improvement in every statistical measure including…

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