Real Estate Agent Advantages

How do Real Estate Agents sell homes? When a professional Real Estate Agent is retained to sell a home, the agent will develop a marketing plan that has proven effective for selling homes quickly and for the maximum sale price.

The Real Estate Agents will perform a market analysis, comparing the home with similar homes in your neighborhood that have recently sold. Your agent will evaluate the current real estate market in order to develop a price opinion for your home. The next step will be to make recommendations about preparing your home so that it is presented to its best advantage. A description of the home will be uploaded into the local Multiple Listing Service, and your agent will implement a marketing plan tailored to your home.

By listing your property, you expose it to thousands of Real Estate Agents throughout the region. MLS exposure is one of the most valuable services a Real Estate Agents can provide sellers. Real estate professionals aslo network with other agents in their office when they bring new listings to the market. Does this system work? 85% of the homes sold today use this method.

Enough said!

Dress For Success in Real Estate

Looking good is important when you want to make a great impression, whether for a job interview or a social function. The same is true of a home that is on the market. When the "For Sale" sign goes up in front of your home, it should be "dressed" for the occasion.

Since the first impression will be of the front of the house, a well-groomed exterior is crucial, from the landscaping to the paint. The interior of your home should be clean and tastefully decorated. Take care of any minor cosmetic repairs that are needed, such as cracked plaster or peeling paint. A sparkling kitchen and shiny bathrooms, clean windows, and the absence of clutter will help your home "show well". Keeping your home looking good at all times is hard work, especially if you have children and are packing for a move. However, the dividends are impressive, because a home that looks well cared for has an excellent chance of selling quickly and for the best price.

Tax Deductions in Real Estate

Here is a question which is often asked about real estate sales: which home loan fees are deductible for income tax purposes? It is good to know the answer to this question before you sign on the dotted line. It may influence which loan you will choose. Loan fees for certain services are not itemized on your fee statement, but are grouped together into a single category.

The most obvious deductible fee is the loan fee paid to acquire a mortgage for a principal residence. The IRS recently ruled that the buyer could deduct the fee in the first year, even if the seller paid it! Other deductions include pro-rated property taxes and mortgage interest. On these items, the buyer may only deduct their share.

Most of the other closing costs are not deductible, but you may add them to your home's adjusted cost basis when calculating appreciation. Among these costs are appraisal, attorney, and inspection fees, as well as title, recording and notary fees. Fire insurance fees are neither deductible nor do they figure into the cost basis. If you are not sure which fees are deductible, consult a professional tax advisor.

Tax Breaks in  Real Estate

Most homeowners are keenly aware of the interest tax deduction on their home loan, but there are many other tax breaks which are often overlooked at income tax time. Pro-rated property taxes and mortgage interest in the year of sale are deductible. You will find these amounts listed on your closing settlement statement. If you paid off your mortgage and had to pay a pre-payment penalty, it qualifies as tax deductible interest. If you paid an "acquisition mortgage loan fee" on a home loan, this fee can be deducted as itemized interest. Home improvement loan fees are also deductible. Any remaining loan fees from re-financed or paid-off mortgages are fully deductible at the time of the mortgage payoff.

Terms in Real Estate Sales (the B Section)

balance sheet
A financial statement that shows assets, liabilities, and net worth as of a specific date.

balloon mortgage
A mortgage that has level monthly payments that will amortize it over a stated term but that provides for a lump sum payment to be due at the end of an earlier specified term.

balloon payment
The final lump sum payment that is made at the maturity date of a balloon mortgage.

bankrupt
A person, firm, or corporation that, through a court proceeding, is relieved from the payment of all debts after the surrender of all assets to a court-appointed trustee.

bankruptcy
A proceeding in a federal court in which a debtor who owes more than his or her assets can relieve the debts by transferring his or her assets to a trustee.

before-tax income
Income before taxes are deducted.

beneficiary
The person designated to receive the income from a trust, estate, or a deed of trust.

bequeath
To transfer personal property through a will.

betterment
An improvement that increases property value as distinguished from repairs or replacements that simply maintain value.

bill of sale
A written document that transfers title to personal property.

binder
A preliminary agreement, secured by the payment of an earnest money deposit, under which a buyer offers to purchase real estate.

biweekly payment mortgage
A mortgage that requires payments to reduce the debt every two weeks (instead of the standard monthly payment schedule). The 26 (or possibly 27) biweekly payments are each equal to one-half of the monthly payment that would be required if the loan were a standard 30-year fixed-rate mortgage, and they are usually drafted from the borrower’s bank account. The result for the borrower is a substantial savings in interest.

blanket insurance policy
A single policy that covers more than one piece of property (or more than one person).

blanket mortgage
The mortgage that is secured by a cooperative project, as opposed to the share loans on individual units within the project.

bona fide
In good faith, without fraud.

bond
An interest-bearing certificate of debt with a maturity date. An obligation of a government or business corporation. A real estate bond is a written obligation usually secured by a mortgage or a deed of trust.

breach
A violation of any legal obligation.

bridge loan
A form of second trust that is collateralized by the borrower's present home (which is usually for sale) in a manner that allows the proceeds to be used for closing on a new house before the present home is sold. Also known as "swing loan."

broker
A person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them. See mortgage broker.

budget
A detailed plan of income and expenses expected over a certain period of time. A budget can provide guidelines for managing future investments and expenses.

budget category
A category of income or expense data that you can use in a budget. You can also define your own budget categories and add them to some or all of the budgets you create. "Rent" is an example of an expense category. "Salary" is a typical income category.

building code
Local regulations that control design, construction, and materials used in construction. Building codes are based on safety and health standards.

buydown account
An account in which funds are held so that they can be applied as part of the monthly mortgage payment as each payment comes due during the period that an interest rate buydown plan is in effect.

buydown mortgage
A temporary buydown is a mortgage on which an initial lump sum payment is made by any party to reduce a borrower’s monthly payments during the first few years of a mortgage. A permanent buydown reduces the interest rate over the entire life of a mortgage.

Real Estate Glossary (A's)

acceleration clause
A provision in a mortgage that gives the lender the right to demand payment of the entire principal balance if a monthly payment is missed.

acceptance
An offeree’s consent to enter into a contract and be bound by the terms of the offer.

additional principal payment
A payment by a borrower of more than the scheduled principal amount due in order to reduce the remaining balance on the loan.

adjustable-rate mortgage (ARM)
A mortgage that permits the lender to adjust its interest rate periodically on the basis of changes in a specified index.

adjusted basis
The original cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken.

adjustment date
The date on which the interest rate changes for an adjustable-rate mortgage (ARM).

adjustment period
The period that elapses between the adjustment dates for an adjustable-rate mortgage (ARM).

administrator
A person appointed by a probate court to administer the estate of a person who died intestate.

affordability analysis
A detailed analysis of your ability to afford the purchase of a home. An affordability analysis takes into consideration your income, liabilities, and available funds, along with the type of mortgage you plan to use, the area where you want to purchase a home, and the closing costs that you might expect to pay.

amenity
A feature of real property that enhances its attractiveness and increases the occupant’s or user’s satisfaction although the feature is not essential to the property’s use. Natural amenities include a pleasant or desirable location near water, scenic views of the surrounding area, etc. Human-made amenities include swimming pools, tennis courts, community buildings, and other recreational facilities.

amortization
The gradual repayment of a mortgage loan by installments.

amortization schedule
A timetable for payment of a mortgage loan. An amortization schedule shows the amount of each payment applied to interest and principal and shows the remaining balance after each payment is made.

amortization term
The amount of time required to amortize the mortgage loan. The amortization term is expressed as a number of months. For example, for a 30-year fixed-rate mortgage, the amortization term is 360 months.

amortize
To repay a mortgage with regular payments that cover both principal and interest.

annual mortgagor statement
A report sent to the mortgagor each year. The report shows how much was paid in taxes and interest during the year, as well as the remaining mortgage loan balance at the end of the year.

annual percentage rate (APR)
The cost of a mortgage stated as a yearly rate; includes such items as interest, mortgage insurance, and loan origination fee (points).

annuity
An amount paid yearly or at other regular intervals, often on a guaranteed dollar basis.

application
A form used to apply for a mortgage loan and to record pertinent information concerning a prospective mortgagor and the proposed security.

appraisal
A written analysis of the estimated value of a property prepared by a qualified appraiser. Contrast with home inspection.

appraised value
An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property.

appraiser
A person qualified by education, training, and experience to estimate the value of real property and personal property.

appreciation
An increase in the value of a property due to changes in market conditions or other causes. The opposite of depreciation.

assessed value
The valuation placed on property by a public tax assessor for purposes of taxation.

assessment
The process of placing a value on property for the strict purpose of taxation. May also refer to a levy against property for a special purpose, such as a sewer assessment.

assessment rolls
The public record of taxable property.

assessor
A public official who establishes the value of a property for taxation purposes.

asset
Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds, and so on).

assignment
The transfer of a mortgage from one person to another.

assumable mortgage
A mortgage that can be taken over ("assumed") by the buyer when a home is sold.

assumption
The transfer of the seller’s existing mortgage to the buyer. See assumable mortgage.

assumption clause
A provision in an assumable mortgage that allows a buyer to assume responsibility for the mortgage from the seller. The loan does not need to be paid in full by the original borrower upon sale or transfer of the property.

assumption fee
The fee paid to a lender (usually by the purchaser of real property) resulting from the assumption of an existing mortgage.

attorney-in-fact
One who holds a power of attorney from another to execute documents on behalf of the grantor of the power.

Affordable Housing (Doing Business with Freddie Mac)

Created by Congress, Freddie Mac's job is to ensure a reliable supply of funds to mortgage lenders in support of homeownership and rental housing. We attract capital from around the world to finance housing in America, and we constantly innovate to deliver it as effectively as possible. As a result, mortgage rates are lower, 30-year fixed-rate financing is plentiful, and borrowers get loan approvals in minutes.

Valuable Partnerships

Freddie Mac further advances its affordable housing mission through valuable partnerships with other similarly committed groups. These groups include local and state government entities, non-profit organizations and non-lender participants in the housing industry. Freddie Mac is dedicated to working with these and other organizations to provide the service and innovation necessary to continue the record growth of homeownership in America.

Expanding Markets

The nation's homeownership rate has reached a record high, with record numbers of families of all racial and ethnic backgrounds owning homes. Playing a vital role in our nation's mortgage markets, Freddie Mac has opened doors for more than 50 million families. Still, less than half of America's minority households have achieved the dream of homeownership.

• Homeownership Gap
• Future of the Housing Industry

Freddie Mac's Expanding Markets products and services are more accessible than ever before, providing lenders with the solutions they need to reach more borrowers and make a difference in their communities. Together, we work with community housing organizations and non-profit agencies to strengthen communities.

We're up to the challenge of doing more. Building on our strong record of expanding access to the mortgage market, Freddie Mac has launched a number of high-impact initiatives to accelerate the growth in minority homeownership. Our initiatives range from best-in-class homebuyer outreach and education to new technologies and mortgage products designed to put families into homes they can afford and keep.

Affordable Rental Housing

Making the rental housing market more affordable is another part of Freddie Mac's business. From investing in low-income housing tax credit partnerships to developing mortgage products that speed the construction and rental of very low-income housing, our multifamily division has made affordable housing possible for more than 4 million families.

More Information About Affordable Housing

• Buying and Owning a Home
• Department of Housing and Urban Development

FREDDIE MAC TO OFFER $6 BILLION OF PREFERRED STOCK

McLean, VA – Freddie Mac (NYSE: FRE) today announced that it will issue $6 billion of non-cumulative perpetual preferred stock. The issuance will involve a larger offering of non-convertible non-cumulative perpetual preferred stock, and a substantially smaller offering of convertible non-cumulative perpetual preferred stock. Both offerings are expected to price in the near term.

Last week, Freddie Mac announced that, in order to meet the 30 percent mandatory target capital surplus directed by the company's safety and soundness regulator, the Office of Federal Housing Enterprise Oversight (OFHEO), as well as to have the flexibility to further its franchise value, it planned to take near-term capital raising actions. As also announced today, the company has decided to reduce its fourth quarter common stock dividend to $0.25 per share.
 
Freddie Mac's estimated regulatory core capital was approximately $34.6 billion at September 30, 2007. Freddie Mac's minimum capital requirement at that date was $26.2 billion and the 30% mandatory target capital surplus was an additional $7.9 billion. Accordingly Freddie Mac's estimated regulatory core capital at September 30, 2007 represented an estimated cushion of $8.5 billion in excess of the company's regulatory minimum capital requirement and an estimated surplus of $0.6 billion in excess of the 30 percent mandatory target capital surplus imposed on the company by OFHEO. The capital raised through this offering will be used to bolster the company's capital base in light of actual and anticipated losses necessitated by GAAP accounting requirements and help Freddie Mac meet the 30 percent surplus going forward.

"Freddie Mac is announcing today a proactive capital management plan that will help us meet the 30 percent surplus and address regulatory concerns and GAAP accounting requirements, provide sufficient capital to continue fulfilling our important housing mission through the current market environment, and better position us to effectively manage the company going forward," said Freddie Mac Chairman and Chief Executive Officer Richard F. Syron.

The preferred stock is being offered via a syndicate of dealers headed by Lehman Brothers Inc. and Goldman, Sachs & Co. An application has been made to list the preferred stock on the New York Stock Exchange.

Information about these transactions is available in the preliminary Offering Circulars on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors/preferred_stock.html. Copies of the preliminary Offering Circulars can also be obtained from the underwriters at the following addresses:

Lehman Brothers Inc.
c/o Broadridge
Integrated Distribution Services
1155 Long Island Avenue
Edgewood, New York 11717
(888) 603-5847

Goldman, Sachs & Co.
85 Broad Street
New York, New York 10004
Attention:  Prospectus Department
(212) 902-1171

This announcement is neither an offer to sell nor a solicitation of offers to buy any of these securities. Any such offering will be made only by an offering circular.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters.

Countrywide says lending, borrowing ability sound

Help Your Real Estate Agent

Once your home is listed for sale, it may be difficult for you to step aside and let your agent take over. When prospective buyers arrive, you may want to stand by to point out the closet extenders, the hidden spice cabinet behind the kitchen door, the energy-saving storm windows or the updated copper plumbing. If you really want to help, however, you will leave the house whenever it is being shown!

We have found that the sales process does not really begin until buyers have begun to voice their objections about a property. Sometimes these concerns are serious enough to remove your house from consideration. Often, however, people voice objections as an automatic response when they really love the house and want to buy it. Real estate professionals are trained to know the difference.

If a seller is standing at the agent's elbow, the buyer won't be comfortable enough to allow the process of raising objections take place. If the buyer feels intimidated or suppressed, we could lose the sale.

The best way to "help" is to give your Real Estate Agent room to make the sale.

Spotless Homes Sell  (Top Real Estate Tip by Real Estate Agents)

Ideally, real estate agents want the properties we market to look spotless, but even the most impeccable housekeepers find it difficult to keep the house in prime showing condition all the time.

Keeping the beds perpetually made, dishes washed, bathrooms spotless and the closets neat is a lot of work. Is it worth it? Yes, it is -- if you want to get your house sold in a reasonable amount of time for the best price.

Often when buyers see normal household clutter, what registers is "this place hasn't been maintained." They see bathtub rings and think "plumber's bills." They see lint under the refrigerator and grease on the electric range and imagine having to replace all of the appliances. It isn't particularly logical, but people often respond with their feelings when buying a house. When making their final selection, buyers may be going on emotion and adrenaline rather than reason and logic. You can help your real estate agent by minimizing the amount of imagination they will need to fall in love with your home.

House Odors - How this impacts your Real Estate Sale

What is "H.O."? You can probably guess--it means "house odors".

Be careful of odors in your home. If your family room smells stuffy and stale, or if your cat or dog has left a distinctive odor in the hallway, take action by eliminating the source of the odor rather than merely treating the effects.

Smells have a powerful effect on the way people react to a house, and no amount of room freshener or vanilla on the light bulbs can mask a serious odor problem. In fact, such remedies may draw attention to the problem. Real Estate Agents have seen homes with an odor problem languish unsold on the market for months or sell for significantly less than comparable homes in the neighborhood.

If you think that you may have a problem, talk candidly with your Real Estate Agent. Your agent should be able to offer some constructive suggestions, and perhaps refer you to a professional who can help banish H.O. from your home!

Lighting Up the Sale in Real Estate

Lighting is an important factor to take into account when you are selling your home. Natural and artificial lighting can create a mood that buyers notice when they walk into your home, so don't overlook this significant factor which can favorably influence a potential buyer.

Before your house is shown, walk through each room with an eye to creating a pleasant ambiance through lighting. Accentuate the natural light by keeping curtains open and windows sparkling clean. Arrange your furniture to take advantage of the best view. You may want to install indirect lighting to highlight a vaulted ceiling or to draw attention to indoor plants. Dimmer switches can create simple and inexpensive lighting appeal. Place a lamp and table arrangement in a dark alcove or corner to brighten up the area.

It may be late in the year, but there is still time to take a closer look at your business' financial situation and consider potential tax savings strategies. As you evaluate potential credits and minimization opportunities, keep in mind that the application of various strategies may differ depending upon your business's unique situation and accounting method. The cash method allows for deductions and income reported for the year they are paid and received, while the accrual method applies income and expenses in the year incurred.

Some tax-saving tactics and strategies worth considering:

Careful planning is the best way to capitalize on available opportunities. There are many other potential tax-minimization strategies that may apply to your company, regardless of type. Consult an accounting professional about your unique circumstances when evaluating the strategies that are best for your business.

Special thanks to Patrick Hardison, CPA, a Tax & Business Services Senior Manager at CPA firm Weaver and Tidwell, LLP.

2007 TAX UPDATE

As usual, there were a spate of changes for the tax year. As you ready your paperwork for yourself or your accountant, you may want to bear in mind the following shifts for 2007.

For Quick Reference
The chart below outlines a number of personal and business tax rate changes.

Real Estate Quote of the Week

T"he tragedy of life doesn't lie in not reaching your goal. The tragedy lies in having no goal to reach."              Benjamin Mays, 1895-1984, Educator and Minister

Preparing For Sale (Real Estate)

When preparing to sell your home, it is useful to know how homebuyers respond when they look at a house. Very few people will buy a home because they are attracted by fantastic bathrooms. Buyers do react to bathrooms that are not cared for, however, because they view them as a reflection of the overall condition of the property.

Many buyers know that plumbing repairs potentially represent a major expense. They get nervous about dripping faucets, loose tiles, and running toilets. Your pre-marketing preparations should include making sure that your plumbing is working properly and that any cosmetic damage caused by former leaks has been repaired.

Keep the bathroom spotless while your home is on the market. Remove any traces of mold or mildew and scour away any build-up on the bathtub and basin. Re-caulk around the tub and shower, if necessary. A new shower curtain, bath mat, plush towels and scented soap can help give the buyer one more positive reason for liking your home!

When in question, ask you Real Estate Agent what they feel should be addressed so that you are making the best of your home's "First Impression."  Strong First Impressions sell, while Weak Impressions linger.

Tax Implications of Selling Your Home

Most clients profit from selling their homes, and they often have questions about capital gains tax. When you sell your primary residence, you are not taxed on your profit if (1) you have lived in the home for two out of the last five years and (2) your gain does not exceed $250,000 as a single taxpayer or $500,000 as a married couple filing jointly. Gains above these limits are taxed at the current rate of 15% for higher income taxpayers and 5% for lower income taxpayers.

In 2008 the 15% rate will continue for higher income taxpayers; while the 5% lower income rate will drop to 0% for the 2008 tax year only.

On January 1, 2009, the long-term capital gains tax rates will once again be 15% and 5% through 2010. Homeowners can use this tax-free provision every two years. As set forth in the American Job Creation Act of 2004, properties converted from a 1031 exchange property into a primary residence must be held and used as a primary residence for at least five years to qualify for the tax exemption.

Consult your tax accountant for more detailed information regarding your particular circumstance.

1031 Exchange Rules in Real Estate

One of the most popular "tax deferring" strategies for real estate owners who are selling one property and acquiring another is the use of Section 1031 of the Internal Revenue Code. It is an effective way to defer paying income tax on capital gain generated by the sale of a property when you intend to reinvest the proceeds in a similar, "like-kind" property. Almost any kind of real property is considered "like-kind" with any other real property.

A recently enacted law closes what was considered a loophole in the Section 1031 rules. In some cases, owners of investment real estate have used the 1031 Exchange to swap their investment property for real estate that could be readily converted to an owner-occupied residential property. After the exchange, they made the property into their principal residence, lived in it for a couple of years, then sold it. Now the American Job Creation Act of 2004 has ruled that properties converted from a 1031 exchange property into a residence must be held and used as a principal residence for at least five years to qualify for the tax exemption. Otherwise, the basic tax-deferring benefits of 1031 exchanges remain the same.

Consult your tax advisor for more detailed information.

When to Take a Walk in Real Estate

Your agent calls to say they are bringing prospective buyers to see your home at 2:00 p.m. You quickly straighten up the house and run the dishwasher. What should you do then? If you have to let them into the house--then take a drive or walk the dog!

Many owners think they should linger close by while their home is being shown. They are afraid that the Real Estate Agent might miss the storage shelves in the basement or forget to point out the beautiful new floor in the kitchen. It is better for the agent to miss something than for you to be ushering the buyers around, so resist the temptation to stay while your house is being shown.

Buyers usually base their decision to buy on an attraction that often has more to do with emotions than pure logic, and a lot goes on between buyer and agent during a showing. The buyer needs to evaluate the home's pluses and minuses, and the agent needs the opportunity to work with the buyer's objections. This process cannot take place comfortably if the seller is on the scene.

Buyers have to take ownership of the property in their mind and they find it hard to do that when seller's are around.  As a seller, do yourself a favor for a successful showing - take your pets, kids and all of your family out of the area and let the buyer be SOLD by your home.  The home sells itself - give it an opportunity to do so.

Real Estate Agent Referrals

It takes time for Real Estate Agents to build a business. Since a lot of our success depends on referrals from satisfied buyers or sellers, we work hard to exceed your expectations for service.

If a Real Estate Agent has done a superb job of selling your house or finding you a new one, the best way to say "thank you" is to give that person's name (and phone number!) to anyone you know who is considering a move. You are not only doing the agent a favor, you are also directing your friends to a competent, knowledgeable and experienced salesperson. Buying a house or condo can be a little scary if you don't have a strong professional guiding you through the process. Real Estate Agents try extra hard to please referrals of friends or pleased customers. Agents are in the business for the long term and prosper by giving consistently high quality service.

If someone you know is looking for a Real Estate Agent in an area where they and you do not know anyone, make it easy for them and go to www.askaboutrealestate.net and request PROFESSIONAL Real Estate Agent Services from one of our TOP performers.

Ask About Real Estate Listing Service

When you list your house with a Real Estate Agent who participates in the Ask About Real Estate Listing Service (AARELS), you get a lot of service for your money. Depending upon the region, there may be hundreds of participating members.

The Real Estate Agent who lists your home works to get it sold. This is done by marketing directly to home buyers, but an even more powerful tool is marketing your home to other agents who have buyers. Your Real Estate Agent makes all the crucial information about your home available to the other members through the Ask About Real Estate Listing Service (AARELS).

 Information such as your home's location, size, the number of rooms, the style of architecture, what personal property is included, and any other special features is posted. The Ask About Real Estate Listing Service (AARELS) description will also contain information about any special financing that might be available, showing instructions, and special needs you may have with respect to closing. The Ask About Real Estate Listing Service (AARELS) is a powerful tool for real estate matchmakers.

Legal Documents in Real Estate

The stacks of papers that you have to sign in order to buy a house can leave you confused. The person conducting the closing will ask you to sign your name to countless documents that are filled with legal jargon. Some buyers just barely glance at each form and sign them without a lot of questions, while others find it very frustrating to try to read every form at the closing table.

You should read and understand the papers you sign. If you are getting a loan to buy the property, most of the paperwork will come from the mortgage company. In most cases, there is little time to read everything in advance because the forms arrive at the closing office shortly before closing is scheduled to begin. Most of the documents use standardized language, however, and you should be able to get copies of the documents ahead of time from the lender so that you can have your questions answered and be comfortable with the settlement process.

Discuss Your Real Estate Options

When you are working with a Real Estate Agent to find a home, it is very important that you take the time to discuss the full range of your housing and financing options. Your Real Estate Agent wants to understand your criteria and your expectations. Be very clear about the features you want in a home, describing what elements are essential to you and where you are willing to compromise.

When you start looking at homes, you may find that the available homes in your price range require much more of a financial commitment than you were prepared to make. Let your agent know if you are willing to consider alternative mortgage options to increase your buying power. Discuss the possibilities for buying in an area you had not previously considered. Would you consider a house with the same amenities in a different neighborhood, a "handyman special", a smaller yard or fewer bedrooms? An open mind and honest communication are crucial ingredients as you work with your Real Estate Agent to find the best possible home for your needs.

Finding Real Estate Buyers

When a home owner tries to sell "By Owner", they commonly use two basic marketing techniques to advertise the property. They place a "For Sale" sign in the front yard and a classified ad in the local newspaper. When a seller lists their home with a professional Real Estate Agent, however, a very sophisticated process is set in motion in order to facilitate the home sales transaction.

Real Estate Agents have a backlog of prospective buyers for the homes in their market. Through the Multiple Listing Service and Ask About Real Estate.net - www.askaboutrealestate.net, the agent cooperates with other brokers in the area who will show your home to their prospective buyers. Professional Real Estate Agents also combine direct mail, telephone calls, and specialized advertising techniques incorporating media such as the Internet, to reach the sales market. In this way we create activity on our listings that help them to sell quickly--and for the best price.

Choosing A Real Estate Agent

When you buy or sell a home, you want to work with a Real Estate Agent who has the experience and expertise to handle such a complex transaction with a minimum amount of stress. When choosing a Real Estate Agent, you should look for technical competence and interpersonal skills.

Ask prospective Real Estate Agents several questions.

1.  How long have you been in the business?  2.  How do your services differ from those of your colleagues?  3.  Do you have a principal broker/owner who works closely with you and serves as a backup person if you are not available?

Keep in mind that there are no "right" answers to these questions. Don't rule out a less-experienced agent who brings energy and enthusiasm to the job. You want personalized professional service from someone whom you can trust to lead you through the process.

If you do not know where to being you can request TOP Real Estate Agent  services from Ask About Real Estate.net .  Their home page is www.askaboutrealestate.net.

Target Marketing in Real Estate

As soon as the listing agreement is signed, your Real Estate Agent will begin the search for a buyer for your home. This means directing agents marketing efforts to target groups of individuals who are likely to be attracted to the amenities offered by your home and neighborhood.

If your property is near a new office park, your Real Estate Agent will look there for prospects who want to live near their work place. If it is an historic property, the local preservation society may have a publication in which to advertise. Your agent may call or write to the neighbors who may know someone who would be attracted to your home. When your home is being marketed professionally, your agent will do a lot more than just feed the listing into the MLS and place an occasional ad.

Real Estate Referrals

You leave the closing feeling really good about the way your agent handled the sale of your home. It was priced well, and by following your Real Estate Agent's advice on how to show your home to its best advantage, you sold it quickly. The agent followed up with the lender and the appraiser to make sure that everything went smoothly and that small problems didn't become big ones. You had heard stories from friends about their stressful moves, and you are relieved and happy that you were spared any serious mix-ups.

How do you say "Thanks for a job well done" to your agent?

Real Estate Agent depend on referrals for a big part of their business. An agent who has served you well will probably do a professional job for your friends or colleagues. The nicest thing you can do for a good Real Estate Agent is to pass their name on to prospective buyers or sellers that you know.

For the top real estate referral company in America just go to Ask About Real Estate.net - www.askaboutrealestate.net. 

Reviving the Real Estate Listing

In every town there are homes that sell rather quickly, while others linger on the market. Real estate professionals suggest numerous approaches to maximizing a home's curb appeal -- everything from fresh paint to new landscaping. But if the "For Sale" sign in front of your house has become a neighborhood fixture, it is important to work with your Real Estate Agent to keep your listing fresh.

Whenever your house is shown, the Real Estate Agent will get feedback from the buyers or other agents about what they liked about your house and what did not work for them. Allow your agent to be completely frank with you about any feedback he or she receives. Listen with an open mind and with the understanding that there is nothing personal about these comments. Don't delay in implementing any of the ideas that make sense to you.

Your Real Estate Agent's job is to come up with new ideas for marketing your home in order to get buyers inside. Your job is to ensure that your house looks its best.

Following your Real Estate Agent's direction can and will mean all the difference in making your selling goals come true. 

Put their experience to work for you! 

Selling Your Real Estate Before Buying

Timing can sometimes be difficult if you have to sell a home before you can buy another one. Most people need the equity from the sale of their first home for the down payment on the new house. If your present home goes on the market first, you may be concerned that it will sell before you find the one you want to buy. On the other hand, if you find the perfect home before your present home is under contract, the sellers may be reluctant to accept your offer, and you may be too nervous to sign a contract.

It is a good idea to sit down with a good Real Estate Agent for some professional advice before you begin your search. It will probably be necessary to be flexible on the closing date, because it can be easier to find a home that you want to buy than to sell your present home. After finding the house you want, you can ask the lender about arranging a short-term bridge loan that can make the purchase possible before you sell your current residence.

Tell Your Real Estate Agent

Good communication will enable you to get the best service from the Real Estate Agent who is helping you to buy or sell a home. If you have any concerns, make them known not just to your spouse, your mother and your co-workers, but to the person who can do something about it--your agent!

Real estate sales are extremely complex transactions which involve negotiating large sums of money and turning over the largest single asset most individuals will ever own. Since the possibilities for misunderstandings are great, professional Real Estate Agents work hard to ensure that the transaction will go smoothly. This requires clear communication between the buyers and the sellers and other agents.

Most of the breakdowns in real estate transactions result from vague or inadequate communication prior to the signing of the contract. Express any concerns that you may have and ask about anything you don't understand--the only foolish question is the one that isn't asked!

Real Estate Agents have a strong network behind them and will work to give you the best possible advice from that network.  Open communication is a must in every successful real estate transaction and sale.

The Exclusive Real Estate Sale

The most common and popular arrangement to have with a Real Estate Agent when selling a specific property is an "exclusive right-to-sell". This type of agreement has advantages for both the broker and the seller. It allows an agent to give his or her full attention to marketing a seller's home or property for a certain period of time without competition from other real estate companies.

Within such an exclusive arrangement, the Real Estate Agent shares the listing with national and worldwide referral networks through the Multiple Listing Service that is subscribed to by most real estate sales professionals. The MLS listing assures your home of the widest possible exposure to the market place.  Want to increase that market penetration even more, make sure your property is also listed on www.askaboutrealestate.net.

Nine out of ten homes that are sold today are "listed" homes (more in some markets).

Enough said!    

Listening To Your Real Estate Needs

Some buyers purchase the exact kind of house they said they were looking for, in the neighborhood they preferred. Other buyers surprise us by falling in love with a house that is the complete opposite of what they originally wanted.

Real Estate Agents listen carefully when buyers describe their needs and preferences. We screen our current inventory of homes to come up with possible matches. Since there is almost always some compromise involved when selecting a home, we may suggest alternatives that might work for buyers.

If you like a specific neighborhood where there are no homes in your price range, we may suggest homes in other areas with similar amenities. If you want four bedrooms, and one of them will be used as a home office, we may look for a den or family room that could serve your needs. When you look at houses, remember that your feedback is important to Real Estate Agents --and it won't hurt their feelings.

Real Estate Marketing

When you list your home for sale, you and your agent must work as partners to ensure it sells as quickly as possible, and for the best price. While you take the necessary steps to make your property look good inside and out, your Real Estate Agent will go to work to make sure your home is exposed to qualified buyers.

Real Estate Agents work with each seller to develop a written marketing plan. This enables you to know what your agent is doing to sell your home and what you can expect to happen while your property is on the market. It will also include suggestions on how to make your home sell. There will be regular communication between you and your Real Estate Agent from the day the listing agreement is signed. The agent will give you progress reports and feedback from the people who have seen your home. You will also have frequent opportunities to ask questions and discuss changes in the marketing strategy.

Real Estate Marketing Techniques

When a seller lists a home with a Real Estate Agent, a lot of brainstorming follows. Who are the potential buyers, where do they live and work? How can they be reached effectively with information that will attract them to this particular property?

In addition to advertising each home on the widely used Multiple Listing Service, professional Real Estate Agents employ marketing techniques tailored to the individual home they are selling. An agent will review various buyer lists to find potential purchasers. They will use telephone and direct mail marketing, produce property flyers and advertise on the Internet, in the newspaper, in community publications and in real estate magazines. Contacts will be made to other agents who sell homes in the area to encourage them to show the home to prospective buyers.

Real Estate Agents combine pro-active marketing with realistic pricing to generate results for their home sellers

Locate Your Real Estate Lifestyle

If you are looking for a new home, it is important to communicate with your Real Estate Agent about any special aspects of your lifestyle that will influence your choice. This information will help your agent to locate the perfect home for you and your family.

Are you a gourmet cook who loves giving lots of parties? Do you want space to accommodate hobbies such as painting, photography, or woodworking? Will your decision be influenced by the accessibility of a community gym, a golf course or tennis courts? Does your son need space to rehearse with his rock band? Do you need a home office? Are you planning to enlarge your family? Is there someone in your household who cannot climb stairs?

Knowing the significant factors that will influence your housing decision helps the agent to narrow the selection of homes on the market.

Earning Your Loyalty in Real Estate

When you begin to search for a new home, you will probably encounter several Real Estate Agents at open houses, through friends or from signs or advertisements. Each agent would like a commitment from you to work exclusively with him or her. Is this arrangement in your best interest or is it better to play the field?

There is a universal law that also pertains to Real Estate Agents --you get back from a relationship what you put into it. If you are not convinced that one agent could possibly fill all your needs, you may be overlooking the positive aspects of a one-on-one relationship.

The first step is to find an agent whom you like and trust. Don't be afraid to discuss your reluctance to work with one agent exclusively, but be open to other viewpoints. You may be pleasantly surprised by the open communication that such an admission will establish right from the beginning! Making a commitment to work exclusively with an agent is part of the formula for success in real estate.

The strongest accountability is in the marketplace. A good reputation and referrals from happy clients are essential to a Real Estate Agent's success!

Why Your Real Estate (Home) Is It Not Selling

If you are selling your home and it has been on the market for several months, you might start to wonder why it just isn't moving. How can you introduce some extra energy into the sale?

The first thing you should do is have a frank talk with your Real Estate Agent in order to get feedback from prospective buyers who have seen your home, and other agents who have shown it. Does your home look its best? Is it accessible for agents to show on short notice? Is the price in line with the rest of the market? Do you need to consider neutralizing any strong decorating features that may not have wide appeal?

Getting your home sold is a collaborative effort between you and your Real Estate Agent. It is important for your agent to market your property aggressively, but you must do your part to ensure that buyers see a home that is as appealing as it can be. Ask your agent for any new ideas that will create results.

The Listing Agent in Real Estate

Only approximately 2% of all listings nationwide are sold by the listing agent. When you list your house with me, I will try my best to sell it myself, but more importantly, I will simply get it sold.

Colleagues in my firm or Real Estate Agents who are affiliated with a cooperating broker may sell my listings. This is why I work hard to maintain a reputation for being very professional and easy to work with. I make the homes I list as easy as possible for other Real Estate Agents to preview or show to buyers.

When you select a Real Estate Agent to market your property, you are hiring them not only for their list of prospective buyers, but for their ability to tap the lists of other people in the business. I constantly lobby among my competition, asking if they have seen my listings, getting feedback and urging them to add my listings to the short lists that they show when they have a prospective buyer.

Home Loan Rates Flat this Week
Thursday, November 15, 2007 - Freddie Mac

McLEAN, VA - Freddie Mac released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 6.24 percent with an average 0.4 point for the week ending November 15, 2007, unchanged from last week when it averaged 6.24 percent as well. Last year at this time, the 30-year FRM averaged 6.24 percent. The 30-year FRM has not been lower since the week ending May 17, 2007, when it averaged 6.21 percent.

The 15-year FRM this week averaged 5.88 percent with an average 0.4 point, down from last week when it averaged 5.90 percent. A year ago, the 15-year FRM averaged 5.94 percent. The 15-year FRM has not been lower since the week ending May 10, 2007, when it averaged 5.87 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.96 percent this week, with an average 0.4 point, up from last week when it averaged 5.89 percent. A year ago, the 5-year ARM averaged 6.04 percent.

One-year Treasury-indexed ARMs averaged 5.50 percent this week with an average 0.5 point, unchanged from last week. At this time last year, the 1-year ARM averaged 5.53 percent. The 1-year ARM has not been this low since the week ending May 17, 2007, when it averaged 5.48 percent.

"Higher productivity growth in the third quarter coupled with a larger-than-expected decline in consumer confidence in November sent mixed signals to the current state of the economy," said Frank Nothaft, Freddie Mac vice president and chief economist. "As a result, there were no definite upward or downward pressures on mortgage rates this week.

"On a positive note, the National Association of Realtors reported this week an unexpected 0.2 percent gain in September's pending home sales index, which suggests less of a decline in existing home sales for October and November. That said, however, it should be noted the index is still 24 percent below that in December 2006."

Selecting A Top Real Estate Agent

Finding the right Real Estate Agent to help you in your search is the important first step to take when you are ready to buy a new home. Some people feel it is better to use someone you don't know--I can't agree with this thought because someone you know will usually go above and beyond the call of duty and have you as top priority at all times.

Knowledge, professionalism and experience are the important factors to consider when selecting a Real Estate Agent . You should also look for someone who listens carefully to what you want in a new home and who knows the market well enough to find the right house for you within a reasonable period of time. Be comfortable with the person you choose. If you feel like the Real Estate Agent is sensitive to your needs and desires, you will feel confident working with that person.

Need help with this - request your Real Estate Agent  at www.askaboutrealestate.net.

Negotiating Factors in Real Estate

Negotiations for the sale of a home can be affected by emotional factors. For example, it is easy to be offended by someone who is making an offer on your property. Even if the buyers love your house, they are trying to negotiate the best possible price and terms. They probably will not let you know how much they want your home until they have negotiated a purchase agreement.

Buyers almost never write offers that please the sellers entirely. Offers and counter offers may be traded back and forth over days or weeks. Terms of the sale will be discussed and deadlines will be set. When there is finally a meeting of the minds, both sides may feel relieved but exhausted by the process. One of a Real Estate Agent's most important jobs is to act as the intermediary during such negotiations. With your agents knowledge of financing, negotiation procedures, and the tax laws affecting real estate sales, agents come up with creative solutions to the challenges that may arise.

Making Real Estate Choices

Buying a home isn't easy. You may have a good idea of what you want and how much you want to spend, but your search produces a wide array of homes on the market and a bewildering set of financing options.

As your Real Estate Agent, their job is to minimize the confusion and help match you to the best home and loan for your needs and pocketbook. The agent will listen to your requirements and eliminate from consideration the properties that aren't suitable for you. If there is a gap between your taste and how much you feel comfortable spending, I can help you decide where to compromise and can suggest financing plans to increase your buying power. When you have selected a home, your next step is to find a lender, a qualified structural inspector, and a termite inspector.

Know Your Price Range (Real Estate)

As a homebuyer, you may have found the perfect new house for your growing family, but what if it is a little out of your price range? You might list your current home for more than it is worth and be lucky enough to find a qualified buyer who is willing to pay the price, but it is impossible to know in advance what your home will sell for.

If you want to sell your home quickly, have a frank and detailed conversation with your real estate agent to determine the best price for the house. Setting your price within 5% of the fair market value of your home greatly increases your chances of getting solid offers that will result in a relatively quick sale.

Don't buy and sell so close to your target amount that you become anxious when the numbers don't meet your expectations. There may be other approaches, such as adjustable rate mortgages or owner financing, to increase your buying power and get you into that new home. When you are selling one home and buying another, you will need more than good luck. You will need a highly professional and experienced Real Estate Agent who can give you solid advice on how to make the transaction work for your particular requirements.

An Artful Real Estate Compromise

People who try to sell their own homes begin to appreciate the expertise of professional Real Estate Agents as soon as their first offer comes in. They want to sell their home, and they have found prospects who want to buy. But what happens next?

When the negotiating process begins, things can get "sticky". First, there are personalities involved, and real estate transactions can be stressful and challenging. The buyers may seem unreasonable if they make an offer that is considerably less than the sellers are willing to accept. At that point the buyers may become offended by the sellers' attitude.

When professional Real Estate Agents are involved, the process is much less adversarial. The two parties see very little of each other until the rough edges have been smoothed out and there has been a meeting of the minds. Good Real Estate Agents know how to keep personalities out of the transaction and to help both sides reach a mutually agreeable compromise.

A Real Estate Agents Reality

The process of guiding a home sales transaction is in reality more complex than many people realize. When qualified buyers present an offer on your home, it might seem that the deal is done, but this is only the beginning of the negotiations process. Ideally, this aspect of the transaction culminates in a meeting of the minds. At no point can the Real Estate Agent just sit back and relax, because the "glue" that holds each transaction together is subject to a variety of factors and forces that may cause the deal to fall apart.

We can only hope that there are no surprises during the home inspections. We have to presume that the appraiser will think the house is worth as much as the buyer and seller do, but this is never guaranteed. As the buyers make their loan application, we cross our fingers that the credit report reveals they always pay their bills on time.

Rarely is a transaction completed without a few problems. A Real Estate Agent's professional skills come into play primarily during the time between contract ratification and the closing. At this point, we use our creativity, patience and negotiating skills to achieve a happy resolution to your transaction.

Press Release

Release Date: November 2, 2007

For immediate release

 

The Federal Reserve Board on Friday approved final rules to implement new risk-based capital requirements in the United States for large, internationally active banking organizations.  The new advanced capital adequacy framework, known as Basel II, more closely aligns regulatory capital requirements with actual risks and should further strengthen banking organizations’ risk-management practices.

“Basel II is a modern, risk-sensitive capital standard that will protect the safety and soundness of our large, complex, internationally active banking organizations.  The new framework is designed to evolve over time and adapt to innovations in banking and financial markets, a significant improvement from the current system,” said Federal Reserve Board Chairman Ben S. Bernanke.

For banking organizations that meet the relevant qualifying criteria, Basel II would replace the current U.S. rules implementing the Basel Capital Accord of 1988 (Basel I).  Basel II would be mandatory for large, internationally active banking organizations (so-called “core” banking organizations with at least $250 billion in total assets or at least $10 billion in foreign exposure) and optional for others.  Under Basel II, core banking organizations would be required to enhance the measurement and management of their risks, including credit risk and operational risk, through the use of advanced approaches for calculating risk-based capital requirements.

“The improvements in risk management under Basel II will be valuable and important in promoting the resiliency of the banking and financial systems,” said Federal Reserve Board Governor Randall S. Kroszner.

Core banking organizations also would be required to have rigorous processes for assessing their overall capital adequacy in relation to their total risk profile and to publicly disclose information about their risk profile and capital adequacy.  Under Basel II, risk-based capital requirements will vary on the basis of a banking organization’s actual risk profile and experience, which should lead institutions to make better decisions about extending credit, mitigating risks, and determining overall capital needs.  Banking organizations with a higher risk profile will have higher regulatory capital requirements than those with a lower risk profile.

The new U.S. Basel II rule is technically consistent in most respects with international approaches and includes a number of prudential safeguards as originally proposed in September 2006.  These safeguards include a requirement that banking organizations satisfactorily complete a four-quarter parallel run period before operating under the Basel II framework, a requirement that an institution satisfactorily complete a series of transitional periods before operating under Basel II without floors, and a commitment by the agencies to conduct ongoing analysis of the framework to ensure Basel II is working as intended.  Importantly, Basel II in the United States will be implemented with retention of the leverage ratio and prompt corrective action (PCA) requirements, which will continue to bolster capital and complement risk-based measures.

Following a successful parallel run period, a banking organization would have to progress through three transitional periods (each lasting at least one year), during which there would be floors on potential declines in risk-based capital requirements.

Those transitional floors would limit maximum cumulative reductions of a banking organization’s risk-based capital requirements to 5 percent during the first transitional floor period, 10 percent during the second transitional floor period, and 15 percent during the third transitional floor period.  A banking organization would need approval from its primary federal regulator to move into each of the transitional floor periods, and at the end of the third transitional floor period to move to full Basel II.  The federal banking agencies will publish a study after the end of the second transition year that examines the new framework for any material deficiencies. 

“To ensure that banks maintain strong capital ratios, we will diligently monitor Basel II during every step of its implementation,” Governor Kroszner said. “Our goal is for banks to have strong risk-based capital ratios that are substantially more representative of risk profiles, and more sensitive to changes in those risk profiles than they are today.  If our analysis shows that any part of this goal is not being met, we will consider ways to improve the framework.”

As the federal banking agencies said in July, the agencies intend to issue a proposed rule that would provide all non-core banking organizations, which are not required to adopt Basel II’s advanced approaches, with the option to adopt a standardized approach under Basel II.  The proposed rule is intended to be finalized before the core banking organizations may start their first transition period year under Basel II.

The Board authorized the staff to publish the final rules in the Federal Register after all of the federal banking agencies have completed their approval processes

Press Release

Release Date: November 14, 2007

For release at 9:10 a.m. EST

The Federal Open Market Committee (FOMC) announced on Wednesday that, as part of its ongoing commitment to improve the accountability and public understanding of monetary policy making, it will increase the frequency and expand the content of the economic projections that are made by Federal Reserve Board members and Reserve Bank presidents and released to the public.

Since 1979, projections of economic growth, unemployment, and inflation have been published semiannually in the Federal Reserve’s Monetary Policy Report to the Congress. Summaries of those semiannual projections have also been published in the minutes of FOMC meetings.

In the future, the FOMC will compile and release projections four times each year rather than twice a year. In addition, the projection horizon will be extended to three years, from two. FOMC meeting participants will now provide projections for overall personal consumption expenditures (PCE) inflation, as well as for real gross domestic product (GDP) growth, the unemployment rate, and core PCE inflation. Projections of nominal GDP growth will be discontinued. Summaries and explanations of the projections will be published along with the minutes of the FOMC meeting at which they were discussed. These descriptions will provide a fuller discussion of the projections, covering not only the outcomes that most meeting participants see as most likely, but also the risks to the economic outlook and the dispersion of views among policymakers.

The schedule for publication of projections will be approximately quarterly, starting with the minutes of the FOMC meeting of October 30-31, which will be released on November 20, 2007. In 2008, projections made by members of the Board of Governors and presidents of the Federal Reserve Banks will be published with the minutes of the FOMC meetings scheduled for January, April, June, and October. The projections will continue to be described in the semiannual Monetary Policy Report to the Congress.

2007 Monetary Policy Releases

Consult the Real Experts in Real Estate

When you buy your first home, you want the best advice you can get. You want to show the house to friends and relatives before you commit. They will probably tell you about all of the things that went wrong during their own transactions so you can avoid the same mistakes. These experts all have good intentions, but so much advice can put you into a state of high anxiety.

Real estate transactions are very complex, and difficulties can arise. If you are buying your home with the help of a professional Real Estate Agent, your agent will know how to make sure that any minor upsets do not turn into major problems. A Real Estate Agent's expertise is based on formal training and experience in many real estate transactions. Their reputation is on the line with each sale, so they are highly motivated to make your purchase or sale go as smoothly as possible. When you are dealing with a professional Real Estate Agent, you can worry about what might go wrong if you wish, but you don't have to!

The professional Real Estate Agent has you covered!

The Sniff Test in Real Estate

The sense of smell is a powerful motivator. When prospective buyers walk into a house, they respond more positively if they smell freshly baking oatmeal cookies instead of the lingering odor of a household pet.

As the homeowner, you may not notice odors that visitors are aware of as soon as they walk in the door. When your house is for sale, ask a friend or neighbor to give it a "sniff test". If there are offensive odors in your home, how do you get rid of them?

There are a few simple solutions--giving the floors and walls a good scrubbing, using the old vanilla-on-the-light-bulb trick, plugging in an essential oil diffuser and throwing out the dog's special chair. You can temporarily declare your home a "no smoking" zone. You may need professional help for cleaning carpets and drapes or deodorizing walls and wood floors. Your Real Estate Agent will be able to provide you with a list of cleaning services which can assist you in making your home smell clean and fresh.

Selling Your REAL ESTATE For Top Dollar

When you get serious about selling your home, the chances of your selling it quickly for top dollar will improve considerably if you list it with a Real Estate sales professional. If you doubt this, consider the fact that eight out of ten homes sold today--more in some markets--are listed with a professional Real Estate Agent.

Listing your home places it on the local Multiple Listing Service that is subscribed to by a majority of real estate sales professionals. Through the MLS listing, your home is assured of getting the widest possible exposure to the market place.

Some buyers shop the home market on their own, but most save time and money by using the services of a real estate sales professional. Ask yourself which homes the Real Estate Agent. is going to show the prospective buyers--homes listed on the MLS or those that are not?

If you still want to try to sell your own home, be aware that you will face stiff competition when it comes to attracting qualified buyers!

Liens Against the Title in a Real Estate Transaction

Occasionally homeowners who are trying to sell their home are surprised to learn that their title is encumbered by a lien. There are several types of liens; the most common are mechanic's or contractor's liens.

The lien (or debt) must be paid off in order to be cleared. If the owner prefers to challenge the lien, he can release it by posting a bond, pending adjudication. In some types of liens, a title search may disclose claims against the property by an ex-spouse or long-ago heir of a former owner. A simple "quitclaim" deed may be used in these cases. By signing the deed, the person involved signs over whatever rights he or she might have, without laying any claim to the property.

Most real estate transactions involve at least some minor unresolved issues on the part of either the buyer or the seller. This is where an experienced Real Estate Agent can provide solutions to resolve the issues and conclude the sale.

Buyer Preferences in Real Estate

Although every purchase of a home involves a degree of compromise, the process begins with the buyer's preferences. When you are working with a Real Estate Agent, it is important that you give your agent a clear idea which of your criteria are flexible and which items you really must have in your new home. If you prefer a specific location, for example, discuss why you want to live in that neighborhood. The agent might be able to suggest alternatives areas which offer the same amenities or convenience to your office.

How important is size? Do you really need four bedrooms or would three bedrooms work, if there is a den for your home office? How much are you willing to correct with redecorating or remodeling? Are you willing to expand your price range by using an adjustable rate mortgage to increase your buying power?

The agent will ask you a lot of questions so that they can use your time most efficiently by showing you houses that meet your criterion as a buyer.

Purchase Negotiations in Real Estate

If you are selling your home, you should be prepared for the day your first offer comes in. When your Real Estate Agent calls to say there is an offer on your home, you will naturally get excited. When your agent describes the offer, you will probably experience an adrenaline rush. Whether the offer is good or bad, you should just remain calm--and discuss a counter-offer with your agent. The negotiations of a purchase begin with the buyer's ideal terms and a counter offer that communicates the seller's ideal terms.

A good agent will look beyond the price when evaluating an offer. If the buyers' financial qualifications are shaky or the offer includes potentially problematic terms or conditions, your Real Estate Agent should be there to minimize any risk to you and to address these items in your counter-offer. Your agent's job is not to make a decision for you, but to be sure that you understand fully what the offer includes and what is expected.

A Real Estate Agents Expertise

If you are using the services of a professional Real Estate Agents to find a new home, good communication is crucial to the transaction. A Real Estate Agents who knows your most significant criteria can work much more effectively to show you homes that will meet your needs.

Let the Real Estate Agents know why you are interested in a specific location. Discuss specific requirements such as proximity to your job, good schools, or recreational activities. If there are no houses available in your price range, the agent may suggest alternate neighborhoods with the same amenities.

Do you need a home office or do you have hobbies that you want to accommodate?

Is there a particular style of architecture that you prefer?  Agents sometimes have to be intuitive when we work with buyers.

The more you can describe to your agent what elements in the home are essential and where you are willing to compromise, the easier it will be to use their expertise to find a home that's perfect for you.

An Inspired Real Estate Agent

Sometimes a good Real Estate Agent may remind you of a favorite aunt who is always trying to fix up her single nieces or nephews with her friends' sons or daughters. She really gets inspired when her efforts result in a great marriage. Real Estate Agent match prospective buyers with the perfect home for their family--and when it works, they feel terrific! And more important, their buyers and sellers feel terrific.

Sellers often have a strong attachment to a home that holds many memories for them. It is important for them to know that the new buyers will love it, too. While any sale can potentially become complicated and difficult, problems seem to work themselves out more easily if you have started out on a positive note. This is one important reason why agents work hard to maintain a good rapport between the parties involved in every transaction.

Real Estate Agent Representation

Which party in a real estate transaction is represented by the Real Estate Agent--the buyer or the seller? Until recently that question was never asked because the answer was always the same. Traditionally all the marketing professionals involved in real estate transactions were legally and ethically obligated to conduct business on behalf of the seller. They may have aided the buyer in certain situations, but their client was the seller. Today that is not necessarily the case.

In a time of increasing specialization, buyers can be represented by a Real Estate Agent who functions solely as a buyer's broker. In this case, the sales professional helps the buyer locate a home, negotiate the price, and is responsible to the buyer only, for an agreed-upon fee or a percentage commission.

In any real estate transaction you have the right to know which party the Real Estate Agent is representing.

Real Estate Agent Advantages For YOU!

How do Real Estate Agents sell homes? When a professional Real Estate Agent is retained to sell a home, the agent will develop a marketing plan that has proven effective for selling homes quickly and for the maximum sale price.

The Real Estate Agent will perform a market analysis, comparing the home with similar homes in your neighborhood that have recently sold. Your agent will evaluate the current real estate market in order to develop a price opinion for your home. The next step will be to make recommendations about preparing your home so that it is presented to its best advantage. A description of the home will be uploaded into the local Multiple Listing Service, and your agent will implement a marketing plan tailored to your home.

By listing your property, you expose it to thousands of Real Estate Agents throughout the region. MLS exposure is one of the most valuable services a Real Estate Agent can provide sellers. Real estate professionals aslo network with other agents in their office when they bring new listings to the market. Does this system work? 85% of the homes sold today use this method.

Enough said!

Questions from Real Estate Agents

Real Estate Agents begin their professional relationship with buyers by asking numerous questions about the buyer's personal and financial situation. The answers to these questions will give the Real Estate Agents a clear idea about the buyer's housing needs and price range. It is a waste of time for an agent to show a buyer homes they can't afford, and it can be disheartening to consider unrealistic possibilities.

In order to do a great job finding you a home, your real estate agent needs to have some basic information about your income, debts, and the amount of cash you have available for a purchase. Your agent also needs to know something about your lifestyle. How large is your family? Where do you work? Do you have school-age children? Do you enjoy entertaining? What hobbies would you like to accommodate?

The real estate agent who helps you find your new home will get to know you very well, so it is very important that you feel comfortable with that person and free to communicate openly

Real Estate Match Makers - Ask About Real Estate.net

When you list your house with a real estate agent who participates in the Multiple Listing Service (MLS), you get a lot of service for your money. Depending upon the MLS region, there may be hundreds of participating members.

The Real Estate Agent who lists your home works to get it sold. This is done by marketing directly to home buyers, but an even more powerful tool is marketing your home to other agents who have buyers. Your real estate agent makes all the crucial information about your home available to the other members through the MLS, such as location, size, the number of rooms, the style of architecture, what personal property is included, and any other special features. The MLS description will also contain information about any special financing that might be available, showing instructions, and special needs you may have with respect to closing. It is a powerful tool for real estate matchmakers.

Real Estate Finesse - Ask About Real Estate.net

Many changes can occur in a real estate transaction between the initial meeting of the minds and the completion of the sale. This is where having a professional to handle the sale of your home makes a big difference.

Real estate professionals view such changes as challenges, rather than problems. Many potential problems are predictable, but their consequences can be minimized by anticipating them. Real Estate Agents draw on their experience and the experience of their colleagues to ensure a successful closing for the buyers and sellers. When disputes arise, our expertise helps to create a win-win situation. This approach to selling real estate makes the difference for my buyers and sellers. I go the extra mile to handle the countless details and to keep my buyers and sellers informed at each step of the transaction

Finding A Real Estate Agent

Finding an experienced, reliable Real Estate Agent whom you like and trust is the first step in locating your new home. Here is an approach to finding the right agent.

Call or stop by a real estate office and ask to speak with the manager. Describe the type of home you are looking for. The manager can refer you to an agent who knows that market very well. You might also use weekend "open houses" as opportunities to look for a Real Estate Agent, as well as a new home. It is really a matter of chemistry! If you meet someone who is knowledgeable and with whom you feel comfortable, call that person!

Once you establish a strong working relationship with a Real Estate Agent, your agent can show you a number of homes for sale, even if they are listed with other companies. Often the agent can show you a property as soon as it is placed on the market. Many of the best homes never even make it to the weekend classified section of the newspaper!

To find a Top Real Estate Agent simply request one's services from www.askaboutrealestate.net.

Real Estate Tip on Effective Marketing

If your home has been listed for a number of weeks and you have only seen it featured in one newspaper ad, you may start feeling anxious. Although your house is being shown regularly, you wonder if the agent is doing enough.

Home sellers often equate effective marketing with classified ads in the weekend Sunday real estate section. However, the most skilled Real Estate Agents know the market well enough to be aware of where the prospective buyers for your home are likely to come from. They will look for the best ways to reach those people through direct mail, telephone contact or specialized ads in neighborhood publications. They will also work to get their colleagues excited about your house, especially agents who have many listings or sales in your neighborhood. And remember--it is important for you and your agent to communicate often so you will know exactly what is being done to sell your home.

Your Realtor - Selling Selling Sold

Although your Real Estate Agent is responsible for marketing your property, it requires a joint effort to get your home sold.

How can you empower your agent? It is very important that you feel absolutely confident in your agent's ability to produce results--no matter what the market is like in your area! This may sound like stating the obvious, but it is important to let your Real Estate Agent know you trust them to get the job done. Support that trust by putting a realistic price tag on the property and keeping it in prime showing condition. Work out showing agreements that will make it easy for agents to preview or show your home. Meet periodically to discuss any feedback from buyers who have seen your home to determine how you can improve its appeal.

Don't hesitate to share any ideas you may have about marketing your home. I will try anything that works, and have received some very good suggestions from clients.

Sold by Ask About Real Estate.net

Some things are hard to measure, and others are easy. Success in a real estate sale is easy. It occurs when the "SOLD" sign is in your front yard. And having that occur as quickly as possible is the goal of every real estate agent and every home seller.

You have undoubtedly heard that old saying about the "hard way" and the "easy way" to do something. The hard way to get the "SOLD" sign up is to try and sell it yourself. The easy way is to use the services of a real estate sales professional, someone who is not only trained to get it sold, but to get as much for your home as the market will bear.

Remember, the agent doesn't get paid until your home is "SOLD". And the amount they earn in commission is dependent upon the amount of the sale. That's a lot of genuine motivation to do the job right. Save yourself headaches and frustration when you are ready to sell--call a professional real estate agent.

The Best Real Estate Agents by Ask About Real Estate.net

The best Real Estate Agents in today's marketplace are becoming even better about marketing the homes they list to the public, as well as to other agents who have potential buyers.

When you are interviewing prospective Real Estate Agents to help you sell your home, ask how they find buyers. In the past, a "For Sale" sign would go into the ground, the basic information went into the Multiple Listing Service, and then there was an occasional Sunday classified ad and an "open house". If the house did not sell right away, the agent might recommend a price reduction.

Agents today are much more sophisticated and pro-active about getting people into their homes. They rely on computers, direct mail, telemarketing, and just plain clever ideas that no one else has tried. Ask prospective listing agents for two things--a written analysis of what is happening with housing prices in your area and a marketing plan which outlines how they would get your home from "For Sale" to "Sold".

The best Real Estate Agents are best for a reason - they know the market and are creative to make sure your goals are met and commmunicated that sense of urgency to qualified prospective buyers.

The Language of Real Estate Agents by Ask About Real Estate.net

Technical terms can be confusing to people who do not work in a profession, and Real Estate Agents use language that may be confusing to many home buyers and sellers.

If you find your eyes glazing over when your Real Estate Agent starts talking about escrow, clear title, easements, encroachments, contingencies, financing, appraisals and the closing process, don't hesitate to ask for a translation. Buying or selling a home is a major step, and professional real estate agents are totally committed to helping you understand the process thoroughly so that you can make informed decisions.

The simple transaction of trading the sellers' house for the buyers' money has become complicated by several hundred years of custom, common law, and state and local government requirements. Consumer demands have resulted in up-to-date rules that communication be as clear and understandable as possible. Real Estate Agents work to create an atmosphere in which you feel comfortable to ask questions.

Market Trends by Ask About Real Estate.net

Last summer your neighbors put their house on the market and had so many buyers that they were on the winning side of a bidding war. Now you are trying to sell your home, and there's just no action.

The real estate marketplace is very unpredictable. Many factors come into play, the most important being interest rates and prevailing sales prices. In a strong seller's market, prices tend to escalate until they reach a certain point where buyers begin to just say no and listing inventories increase. When this happens, sellers who price their homes at the higher level of previous sales prices must re-think their pricing strategies. If they don't, their homes may not sell. Whether you are buying or selling a home, it is important to remember that the shift from a seller's to a buyer's market can occur very quickly. You can count on your Real Estate Agent for sound advice on what phase the market is in right now.

The Pheromone Factor by Ask About Real Estate.net

Pheromones are mysterious little chemical sensors that are supposed to have a lot to do with whether or not we are attracted to people. They may also play a big part in the way people react to houses.

If you have a house on the market, it will be important to ensure that the pheromone factor is as high as possible--so that the prospects who come inside will involuntarily pull out their checkbooks and offer to pay your asking price. A good real estate agent can give you some important hints about maximizing your home's ability to attract buyers. This could mean completely airing out every room to eliminate musty odors, or allowing enough time for freshly painted walls to lose that telltale toxic smell.

Unless you are already compulsively neat, you may need to make temporary changes in your housekeeping habits to ensure that your home is both fresh-smelling and sparkling clean. Sometimes this will involve hiring a professional cleaning service. Give your real estate agent the space to speak candidly about what you need to do to make your house looks its best.

The Perfect Home from Ask About Real Estate.net

When we help prospective buyers locate a new home we listen carefully to their goals. What are their criteria for selecting a neighborhood, what style of house do they prefer, what price range and floor plan meet their needs? Will any special considerations go into making the homebuying decision? When we have a good picture of what the buyer wants, we will go to work to find the best property on the market that will accommodate those needs.

Our real estate agents succeed when they can make the buyers' goals their goals. Finding the perfect home is a collaborative effort. The buyers communicate what they want, why they want it, and where compromise might be possible, and the agent listens carefully and selects the homes that come as close as possible to meeting the needs expressed. When there is trust and communication between the buyers and the real estate agent, miracles can happen! Creating these miracles for buyers and sellers is "Job #1" for us.

How YOU Can Help Your Real Estate Agent

Once your home is listed for sale, it may be difficult for you to step aside and let your agent take over. When prospective buyers arrive, you may want to stand by to point out the closet extenders, the hidden spice cabinet behind the kitchen door, the energy-saving storm windows or the updated copper plumbing. If you really want to help, however, you will leave the house whenever it is being shown!

We have found that the sales process does not really begin until buyers have begun to voice their objections about a property. Sometimes these concerns are serious enough to remove your house from consideration. Often, however, people voice objections as an automatic response when they really love the house and want to buy it. Real estate professionals are trained to know the difference.

If a seller is standing at the agent's elbow, the buyer won't be comfortable enough to allow the process of raising objections take place. If the buyer feels intimidated or suppressed, we could lose the sale. The best way to help is to give your real estate agent room to make the sale.

Real Estate Sales

Making a move gets high marks on the stress scale, whether you are buying or selling a home. Not only is there a lot of money involved, there is also lot that can go wrong in a real estate transaction.

A professional real estate agent works to minimize the stress involved in the process and to make your closing as smooth as possible. The agent will monitor the progress of the loan application and check on the paperwork. He or she will remind the sellers about any repairs that need to be made before the closing and will assist both parties in coordinating the closing and their moves. The real estate agent will also help ensure a smooth transition by reminding the sellers to arrange for final utility readings and the buyers to set up new utility account.

How to Respond to Low Offers

The beginning of negotiations is usually the end of many months of hard work for the buyer or seller. The work ahead requires skill in order to maintain a strong position.

Sellers can lose their advantage if they do not counter an offer that a buyer has made. Even if the opening offer is beneath what the seller feels is reasonable, it is advisable for the seller to respond with a slight reduction from the asking price. The most important component in negotiating is good communication.

The best way to handle a low offer is to counter it with definite terms that are favorable to the seller. A counter offer has two advantages: 1) it keeps the buyer interested, and 2) it moves the negotiation forward and gives the buyer the opportunity to submit another offer that the seller is more likely to prefer.

Real Estate Sales Professionals

A real estate agent's job is to sell your home for the best price, in the shortest time. Another important part of the agent's responsibility is to make the sales process as easy as possible for you, the seller. Your real estate agent can eliminate much of the hassle involved in selling your home, while providing you and your family with the "peace of mind" you need during this sensitive time. Your agent can help you avoid the inconvenience of having buyers stop by unannounced to see your home or your wasting time with those who are not financially qualified to buy your home.
  

When you list your home with a sales professional, you get an array of valuable services, including the widest possible exposure through Multiple Listing Service. This is the best vehicle to get the most qualified buyers to see your home.
     

What does CRS and GRI mean?

CRS, which stands for Certified Residential Specialist, is a designation that recognizes a high level of professional accomplishments in real estate experience and education. The Residential Sales Council grants the CRS designation only to the most outstanding sales associates in the residential sales field. Besides the completion of a rigorous course of study, the candidate must be able to demonstrate 75 successful transactions or average sales of $1 million per year of experience. Only 4% of all real estate agents are awarded the CRS designation.

GRI stands for Graduate, REALTOR Institute. The REALTOR Institute offers a series of 90 hours of required and elective courses conducted by the local Board or Association of REALTORS. These courses cover all areas of real estate -- residential, investment, construction and mortgage. The GRI designation is a prerequisite of many specialized courses in the REALTOR organization.

An Active Marketing Plan

It takes a lot more than a "For Sale" sign in the front yard, a Multiple Listing entry, and an occasional ad in the classifieds to get a home listing sold. Be sure to discuss the details of the marketing plan with the companies and real estate agents you interview about selling your home.

Real estate agents who provide high quality service will usually have a written marketing plan tailored to fit your home and your individual needs. A good marketing plan begins with pricing the home appropriately. It involves exposing your home to as many real estate professionals and qualified buyers as possible. The agent's job is to get buyers through your front door; your job is to ensure that the buyers like what they see. Top agents are very active in finding prospective buyers and in coaching sellers about how to enhance their home's presentation. There are differences in the marketing approaches of companies and individual agents, so ask for a written plan to give you a clear idea of what you can expect of your agent.

Your Real Estate Agents Role

Recent reforms in the disclosure laws and real estate practices around the country have resulted in new options for buyers and sellers. Real estate agents can take different roles with buyers and sellers.

A seller's agent works with loyalty and fidelity as the seller's advocate and negotiator, and is obligated to disclose to potential buyers all adverse material facts that are known about the property.

A buyer's agent works exclusively to negotiate the lowest purchase price and best terms for the buyer. This agent serves the buyer with undivided loyalty, confidentiality, and full disclosure. The agent would know the highest price that the buyer would be willing to offer for a home, but could not disclose that information to the seller.

A dual agent can work for both the buyer and the seller by written, informed consent of both parties and has fiduciary obligations to both. The agent can only disclose to one party what the other party allows to be revealed.

A transaction broker assists the buyer or seller or both throughout a real estate transaction without being an agent or advocate for any of the parties.

"Stand By Me" - The Real Estate Loyalty Factor!

Real estate transactions are complicated and unpredictable. Professional real estate agents are trained to handle the many facets of buying a home. A good agent is an invaluable asset to your venture if you are in the market for a house.

When you find a real estate agent with whom you feel confident, it is good to enter into a committed working relationship with that person. Concentrating your search with one agent will allow that agent to become truly familiar with your needs, desires, and financial capacities.

Maintaining loyalty to the real estate agent of your choice will bear you more fruit than scattering your attention among several agents. An agent who feels your commitment will devote his or her entire energy to finding the right home for you.

Skillful Real Estate Negotiations

Negotiating the sale or purchase of a home is a highly creative endeavor that can be stressful at times. Even though the process is not usually an adversarial one, there are issues which may require a compromise from each party, such as the price, the date of possession, and the condition of the property at closing.

It helps to know why people are relocating. If a home is part of an estate, for example, it may evoke childhood memories and intense emotions for the person who is overseeing the sale. If the sellers are in the middle of a divorce, their mood will be different than someone who has just won the lottery and is moving to their dream home. Buyers who have been transferred and have to leave their dream home behind will feel differently from someone who feels that your home is their "ideal". One of a real estate agent's most important jobs is managing all of the relationships in the transaction. These situations don't often get really difficult, but when they do, agent's don't take it personally.

Working With A Professional Real Estate Agent

It is not unusual for homeowners to yield to the temptation to try to sell their own home. It seems easy enough--just place an ad in the weekend paper and wait for buyers to show up. Although it may seem simple, real estate sales transactions are extremely complex proceedings.

The first pitfall can come with pricing your property realistically. Homeowners often price their property too high initially, then drastically slash the price when weeks go buy without an offer. Even if a prospective buyer agrees to the initial asking price, there could be complications if the buyers begin to feel that they have agreed to pay too much, or if the lender's appraisal values the property at far less than the agreed-upon price. Some clients hire agents to market their home professionally after weeks or months of trying to sell their own home without success, or after their FSBO transaction fell through.

Real Estate Timing is Everything

Buying real estate can sometimes involve tricky timing. For example, you may have found the perfect house and are thinking about making an offer, but are feeling pressured to make a decision just when you want time to consider the matter. The agent tells you that another party is thinking about making an offer, so you shouldn't hesitate if you really want the house. What should you do? Trust your agent!

It is natural to feel some pressure from even the most easy-going real estate agent--and some uncertainty about making an offer. If you really like a house, there is always the possibility that someone else will share your enthusiasm for it. Whether your local market is active or sluggish, it is sensible to assume that another offer is likely to come in. Perhaps you can afford to "sleep on it", but moving as quickly as possible will minimize the possibility that the house will go to another buyer.

A Very Good Start for Buyers

When a real estate agent begins to work with a new buyer, we will sit down with you, ask a number of questions, and listen carefully to your answers. The purpose during this initial interview is to get a clear idea of what kind of property you are looking for and your approximate price range. We explain how we will function as your representative, what the local market is like, and what we can do to help you locate that perfect home.

It is important for you as a prospective buyer to be as clear as possible about your needs. After we have talked and you have decided how much you can comfortably spend, we will know how to facilitate your home search. We won't take you through a three-story colonial with a top floor master suite if you want to avoid climbing up and down stairs! Establishing clear communication with our clients helps us save you hours of unfocused house hunting.

St. Louis Office Market Improving

Office vacancies in the St. Louis area continue to decline, according to a report by Grubb & Ellis/Gundaker Commercial. The office vacancy rate dropped to 13.4% in Q3, down from 15.8% a year ago. Rents for class-A space also increased, to $22.30/sf, up from $21.51/sf.

Minneapolis Market Continues to Improve

The Minneapolis-area apartment market is improving, according to a report by GVA Marquette Advisors. In Q3, the apartment occupancy rate dropped to 3.6% from 3.9% in Q2 2007, well below 4% during the same period last year. Average rents increased in Q3 to $890/unit, up 2.7% from $866/unit during the same period last year.

By Edvard Pettersson

Oct. 31 (Bloomberg) -- Countrywide Financial Corp. shareholders sued Chief Executive Officer Angelo Mozilo and 19 other company officers and directors, claiming a stock buyback program allowed them to sell shares at inflated prices.

The defendants sold $842 million in company stock while issuing false and misleading statements about the financial health of Countrywide, the biggest U.S. mortgage lender, the New England Teamsters and Trucking Industry Pension Fund alleged in a complaint filed Oct. 29 in Los Angeles Superior Court.

Countrywide shares have dropped 62 percent this year amid what Mozilo has called the worst housing market since the Great Depression. The company had to tap $11.5 billion in emergency credit in August after cash ran short. Mozilo, who has sold more than $280 million of Countrywide shares over the past two years, has said he's facing an informal Securities and Exchange Commission inquiry into stock sales.

Mozilo and the other ``defendants caused Countrywide to engage in unlawful business practices and to disseminate false and misleading statements to the public while simultaneously using more than $2 billion of Countrywide's assets to prop up the price of Countrywide stock via a share repurchase plan,'' the pension fund said in the complaint.

The fund accuses the company's officials of insider selling and breach of their fiduciary duty to both the company and shareholders. They seek unspecified damages.

Countrywide spokesman Rick Simon didn't immediately return a call seeking comment.

Shares of the Calabasas, California-based lender fell 42 cents to $15.52 in New York Stock Exchange composite trading.

The case New England Teamsters and Trucking Industry Pension Fund v. Angelo Mozilo, Los Angeles County Superior Court, BC379944.

To contact the reporter on this story: Edvard Pettersson in Los Angeles at epettersson@bloomberg.net .

Press Release

Release Date: October 31, 2007

For immediate release

The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 4-1/2 percent.

Economic growth was solid in the third quarter, and strains in financial markets have eased somewhat on balance.  However, the pace of economic expansion will likely slow in the near term, partly reflecting the intensification of the housing correction.  Today’s action, combined with the policy action taken in September, should help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and promote moderate growth over time.

Readings on core inflation have improved modestly this year, but recent increases in energy and commodity prices, among other factors, may put renewed upward pressure on inflation.  In this context, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully. 

The Committee judges that, after this action, the upside risks to inflation roughly balance the downside risks to growth.  The Committee will continue to assess the effects of financial and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.

Voting for the FOMC monetary policy action were:  Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans; Donald L. Kohn; Randall S. Kroszner;
Frederic S. Mishkin; William Poole; Eric S. Rosengren; and Kevin M. Warsh.  Voting against was Thomas M. Hoenig, who preferred no change in the federal funds rate at this meeting.

In a related action, the Board of Governors unanimously approved a 25-basis-point decrease in the discount rate to 5 percent.  In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York, Richmond, Atlanta, Chicago, St. Louis, and San Francisco.

2007 Monetary Policy Releases

Home Refinancing

Interest rates fluctuate as changes occur in the general economy. If you purchased your home when interest rates were higher, you may want to consider re-financing your loan at a lower rate.

You will have to apply for the new mortgage and have your current income eligibility assessed. Depending on how long you have had your present loan, a current appraisal may be required. There are closing costs, such as attorney, title fees, recording and notary fees, and appraisal charges. The biggest factor in your decision should be the length of time you plan to remain in your home. If you will be there for only a year or two more, it might not pay to re-finance. If you will be in your home longer, re-financing could provide you with lower mortgage payments. Your real estate agent can help you work out the numbers and can refer you to reputable home appraisers and mortgage lenders.

Appraisals by Professionals

Before your mortgage application is approved, the lender will order a professional appraisal of the home to make sure that the agreed-upon selling price is justifiable based on the current market value of the property. The cost of the appraisal will be based on the complexity of the appraisal report and the time required to complete it.

A professional appraiser will choose the appraisal technique that is applicable to the particular property to arrive at an unbiased opinion of value. One approach is to look at comparable homes in the area that have sold within the last six months. If there are a number of similar properties that have sold recently, the appraiser's job is easy. It is more complicated to arrive at the appraised value if your home is located in a rural area or a diverse neighborhood.

The appraised value will usually be very close to the sale price. If the appraisal comes in lower, the real estate agent may be able to provide the appraisers with additional information on recent sales which will result in increased value.

The Language of REALTORS

Technical terms can be confusing to people who do not work in a profession, and real estate agents use language that may be confusing to many home buyers and sellers.

If you find your eyes glazing over when your real estate agent starts talking about escrow, clear title, easements, encroachments, contingencies, financing, appraisals and the closing process, don't hesitate to ask for a translation. Buying or selling a home is a major step, and professional real estate agents are totally committed to helping you understand the process thoroughly so that you can make informed decisions.

The simple transaction of trading the sellers' house for the buyers' money has become complicated by several hundred years of custom, common law, and state and local government requirements. Consumer demands have resulted in up-to-date rules that communication be as clear and understandable as possible. Real estate agents work to create an atmosphere in which you feel comfortable to ask questions.

The Lender Appraisal

Many sellers think that the price of their home is determined solely by what they are willing to accept and what the buyer is willing to pay. However, there is one more variable that can affect the sale of a home assuming that a bank loan is involved -- the lender's appraisal.

To protect the interest of their investors, the buyer's mortgage lender hires a licensed appraiser to give an independent, objective opinion of what the property is worth. The appraiser compares the house with similar homes in the neighborhood that have recently sold. Square footage, amenities and the condition of the home are taken into account. Renovations and home improvements made by the seller usually add value to the home, while defects such as needed repairs or code violations decrease the property's value. The seller's real estate agent can provide the appraiser with up-to-date information about neighboring homes that have sold to support the seller's asking price.

Three Comparables Sales

When you buy a house or refinance your present home, your lender will ask you to pay for an appraisal to help ensure that the sales price and mortgage amount is consistent with the property's market value. The appraiser will look for "three caballeros" or three "comparables" -- homes that are very similar to the one you are buying -- and will make adjustments to reflect the differences between the properties.

Housing patterns tend to be homogenous, meaning that homes worth $300,000 are usually located in $300,000 neighborhoods. It is important for properties to be within the general pricing patterns of their neighborhoods because over-valued homes, even if they are exceptional, are sometimes difficult to sell at full market price.

This is not the only factor considered in determining the worth of a property, but it is an important one. The buyer or seller may view the property as a home or an investment, but lenders view it in a completely different way. To a lender, property means security in the event a borrower fails to repay a mortgage. Therefore, lenders must know real estate values in order to limit their risks.

The Fair Market Value Approach

What is the best price for a piece of real estate? Mortgage lenders, appraisers, and real estate brokers use what is called the "fair market value" (FMV). FMV has been defined as "the price that a buyer is willing to pay and the seller is willing to accept, when both parties are knowledgeable about the property and neither is under any time pressure to buy or sell". Sounds great, but how is this price determined?

The starting point for determining a fair price may be an opinion of the value or "comparative market analysis". Such an analysis uses information on similar properties which are: 1) currently for sale, 2) already sold, or 3) expired properties (those which did not sell). Local, national and international trends and market conditions must also be evaluated.

By comparing similar properties in each of the three categories and the market conditions, appraisers, lenders and agents come very close to the maximum price that buyers would be willing to pay for a house.

Working With A REALTOR

It is not unusual for homeowners to yield to the temptation to try to sell their own home. It seems easy enough--just place an ad in the weekend paper and wait for buyers to show up. Although it may seem simple, real estate sales transactions are extremely complex proceedings.

The first pitfall can come with pricing your property realistically. Homeowners often price their property too high initially, then drastically slash the price when weeks go buy without an offer. Even if a prospective buyer agrees to the initial asking price, there could be complications if the buyers begin to feel that they have agreed to pay too much, or if the lender's appraisal values the property at far less than the agreed-upon price. Some clients hire agents to market their home professionally after weeks or months of trying to sell their own home without success, or after their FSBO transaction fell through.

Who Represents the Best Interests of the Buyer

Who represents the homebuyer in the transaction? The most common scenario is for homebuyers to purchase a home with the help of the seller's listing agent. In this case, known as "dual agent representation," the real estate agent assists both the sellers and the buyers. However, it is also possible for the buyers to ask another realtor to represent their interests exclusively, acting as the "buyer's agent," a service which is available at no additional cost to the homebuyer.

Any licensed real estate agent can act as your buyer's agent, helping you to locate and look at properties in your price range. However, if that real estate agent works for the same brokerage that is listing a particular property, dual agency or designated agent rules will then apply. The buyer's agent will advise the buyer if issues arise such as termite damage or significant material defects appearing on the home inspection report. If the home appraisal comes in at less than the asking price, the agent will represent the buyer's interest, working with the seller and the lender to negotiate a satisfactory resolution.

Appraisers and When They Enter Into The Transaction

After the buyer and seller come to a "meeting of the minds" on the price of a house, there is one more person who must be convinced that the house is worth the selling price--the mortgage company's appraiser.

The appraiser looks for three similar houses that have sold in the same area within the last several months, and compares the selling prices of these homes with the one that is now on the market. The appraiser makes adjustments to account for the differences in each property, and averages the adjusted prices of the other three homes to arrive at a final opinion of value. In subdivisions or condominium projects where there are many similar properties and numerous recent sales, the appraiser's job is relatively easy. In neighborhoods of older homes that have been renovated or remodeled over the years, it can be like comparing apples and oranges.

If the appraiser's evaluation is lower than the selling price, it can stall the transaction because the lender may decline the buyer's loan because of the discrepancy. A real estate agent can work to minimize potential delays associated with the appraisal process by helping the seller to price the home as close to fair market value as possible.

A Complete Market Analysis

Setting the right price is an important first step in the process of selling a home. Is it necessary to spend $200 to $400 for a professional appraisal of your property before placing your home on the market?

A professional appraiser's opinion of a property's market value is based on the recent sales of similar homes in the neighborhood, and on the square footage and condition of the property. Different appraisers might come up with different figures. Even if all of them agreed on a value, there is no guarantee that you would receive that amount for your property.

An alternative to a professional appraisal is to ask a professional real estate agent for a written market analysis of your property. This analysis will include information about recent home sales in your neighborhood, as well as how those homes compare to yours. Real estate agents may provide this service with no charge or obligation. If you are still unsure of the value of your home, you may wish to pay for an appraisal.