What Can You Do To Get Your Home Sold?

It's a question that all sellers ask, yet, many are still searching for answers. At one time, houses flew off the market but today's market conditions have changed. With the flood of foreclosures, short sales, and excess inventory, some houses sit for a long time on the market. It could take years to move some of those properties and see the excess supply diminish. However, if you take action and you have a plan, there's a good chance that your home will sell faster. The first important action step is to bring in the most qualified expert to help.Finding the best agent to guide you through the real estate transaction can be the difference between a real estate dream or nightmare.
Make your home stand out. In a CONTINUED...

Spring Market Conditions Bode Well For Buyers

Optimism about the housing market isn't quite sweeping the nation, but Americans remain sold on the value of home ownership at a good time to be bullish about buying a home.

With home sales and prices still falling, the spring could shape up as an opportune time to make a deal.

The housing downturn hasn't shaken consumers' resolve to consider home ownership an integral part of an American Dream, even among home owners with homes that have lost value [read more...]

7 Things All Borrowers Should Know About FHA Loans

RISMEDIA, July 1, 2010--FHA Pros, LLC, a national FHA condo approval service, has developed a list of facts speaking to the top misconceptions associated with FHA loans in order to help home buyers better navigate an already confusing market. FHA loans are mortgages issued by qualified lenders and insured by the Federal Housing Administration (FHA).

“We have seen home buyer interest in FHA loans go from practically zero three years ago to upwards of 87 percent today,” said Christopher Gardner, founder and president of FHA Pros, LLC. “Despite this rapid rise in popularity, many buyers still do not fully understand the benefits of these loans, and we believe it’s time to change that.”

1. FHA Loans Are Not Only For Lower-Income Borrowers. FHA loans are available to everyone. In fact, even Bill Gates can get one. There is no maximum income restriction associated with FHA loans. Borrowers do need to substantiate income and assets by submitting proper documentation. This requirement ensures that borrowers are well-vetted and truly able to afford their future homes.

2. FHA Loans Are Not Only For First-Time Buyers. Many people believe FHA loans are available only to first-time homebuyers. This is not the case. Whether borrowers are making their first home purchase or their fifth, they can look to FHA loans as a home financing option.

3. FHA Loans Are Not Just Small Loans; In Fact, Loan Amounts Can Be As High As Almost $800,000. The government recently raised the maximum loan amount from its original cap of $362,790 to $793,750 as a way to help stabilize the housing market. The amount a buyer can borrow varies from county to county. Later this summer, condo buyers interested in FHA loans can visit www.checkfhaapproval.com to instantly identify FHA-approved condo associations and review maximum loan amounts for a given location.

4. FHA Loans Are Not Affiliated With The Section 8 Housing Program. While both programs are administered by the U.S. Department of Housing and Urban Development (HUD), FHA loans have nothing to do with low-income subsidized housing. FHA loans are simply mortgages insured by FHA. This insurance provided by the federal government allows lenders to lend more freely by assuring them that they will be repaid in the event of default. Most traditional lenders, including Wells Fargo & Co., JP Morgan Chase and Citigroup are able to provide FHA loans to their customers.

5. FHA Loans Are Often More Affordable Than Conventional Loans. While FHA loans typically offer the same interest rates as other loans, borrowers benefit from a much lower down payment of as low as 3.5 percent.

6. FHA-Approved Condo Developments Are More Desirable To Buyers. With 87 percent of home buyers indicating that they plan to use FHA loans, condo associations that are not FHA approved are missing out on a significant pool of prospective buyers. Under rules in place since February 2010, an entire condominium development must now apply to HUD and be granted FHA approval before a buyer can purchase a unit in an association with an FHA loan or before an existing unit owner can refinance into an FHA loan.

Due to the general unwillingness of today’s lenders to extend credit with respect to conventional loans, many borrowers find that FHA is their best bet. Lenders don’t mind lending when the federal government (FHA) assures them of repayment.

Homeowners associations (HOAs) should note that although FHA-insured mortgages might be easier to obtain, they are not “risky” loans, due in large part to the strict “full documentation” requirements placed on borrowers.

Individual buyers or sellers can initiate the approval process or current owners can encourage their HOA to apply. More information about the FHA- approval process is available at www.getfhaapproval.com.

7. FHA Loans Are Assumable. In addition to lower down-payment and credit-qualifying requirements as compared to conventional loans, FHA loans are assumable. This means that when a seller with an FHA loan sells his or her property, the loan and its financing terms (interest rate) can be transferred to the new buyer. This unique feature will certainly make a property more valuable in times of rising interest rates.

“Now, more than ever, buyers and sellers need to understand the options available to them when it comes time to buy a home,” continued Gardner. “At FHA Pros we have worked with countless HOAs, attorneys and individuals to easily and efficiently navigate the historically tricky FHA-approval process.”

Immaculate Dickerson Home on 2.71 Acres

Home Sizes Fall as Builders, Buyers Embrace Economic Reality

Very interesting article about the decline of the "McMansion" and the common interest in building more energy efficient homes is on the rise. It's about time! RISMEDIA, January 28, 2010—(MCT)—New-home buyers responded to the tough times in 2009 by opting for smaller houses, driving down the average size of a house built in the United States for the first time in 27 years. Data recently released by the National Association of Home Builders (NAHB) found the average size of a new home that was completed in 2009 fell to 2,480 square feet from 2,520 square feet in 2008...[more]

Home Sellers: Top 5 Home Improvement Projects Based on Cost and Return on Investment

RISMEDIA, November 10, 2009—HomeGain.com, one of the first websites to offer Web-based free instant home values, announced that it has released the results of its nationwide home improvement and home staging Home Sale Maximizer survey.

HomeGain’s recent survey shows the top do-it-yourself home improvements that Realtors recommend to home sellers. HomeGain received responses from nearly 1,000 Realtors nationwide and configured a list of the top 12 do-it-yourself (DIY) home improvements that cost under $5,000 and benefit sellers most when they sell their homes.

According to the HomeGain survey, the top five home improvements that Realtors recommend to home sellers based on cost and return on investment (from highest to lowest ROI) are:

1. Cleaning and de-cluttering ($200 cost / $1,700 price increase / 872% ROI)
2. Home staging ($300 cost / $1,780 price increase / 586% ROI)
3. Lightening and brightening ($230 cost / $1,300 price increase / 572% ROI)
4. Landscaping ($320 cost / $1,500 price increase / 473% ROI)
5. Repairing plumbing ($385 cost / $1,250 price increase / 327% ROI)

Cleaning and de-cluttering continues to rank as the top suggested home improvement (since the survey was originally conducted in 2000), recommended by 98% of Realtors, costing less than $200 and returning a value of nearly $1,700 to the home’s sale price, or an 872% return on investment.

“Many Realtors agree, especially in a buyer’s market, that sellers who make these recommended home improvements often get their homes sold faster and at higher prices,” stated Louis Cammarosano, General Manager at HomeGain. “We have customized our Home Sale Maximizer online home improvement tool to help identify and prioritize the projects that can increase the salability and selling price of a home.”

Rounding out the top 12, the list of low cost, do-it-yourself home improvements includes: updating electrical, replacing or shampooing carpets, painting interior walls, repairing damaged floors, updating kitchen, painting outside of home, and updating bathroom/s.

The home improvement projects with the highest price increases to a home’s resale value are updating the kitchen ($1,200 cost / $2,850 price increase), followed by painting the outside of the home ($900 cost / $1,815 price increase) and home staging ($300 cost / $1,780 price increase).

“Inexpensive cosmetic home improvements and basic improvements greatly enhance the value of the home,” stated Carol Wilson of Carpenter Real Estate in Indianapolis, IN, HomeGain AgentEvaluator member since 1999.

For more information, visit www.homegain.com

Expanded Version of Tax Credit Will Allow More Homebuyers to Qualify

RISMEDIA, November 9, 2009—President Obama recently signed an expanded version of the $8,000 first-time homebuyer tax credit that was set to expire on November 30. “The new version of the tax credit has the potential to stimulate the housing market even more than the old version due to the fact that more people will qualify under the new rules,” said Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. “Although the tax credit remains at $8,000 for homebuyers that have not owned a primary residence in the last three years, it has been expanded to include a $6,500 tax credit for homebuyers that have lived in their current primary residence for at least five consecutive years out of the past eight years. Under the old rules, move-up homebuyers did not qualify.” Consider these three examples:

Example 1:
Jane purchased a home in 2002, lived there for 5 years as her primary home, moved out in 2007, and turned that home into a rental property. If Jane decides to buy a new primary residence today, she would qualify for the $6,500 tax credit based on the fact that she lived in the same residence as her primary home for at least five consecutive years out of the past eight.

Example 2:
Harry purchased a home in 2004, and lived there for the past 5 years as his primary home. If Harry decides to buy a new primary residence today, he would qualify for the $6,500 tax credit based on the fact that he lived in the same residence as his primary home for at least five consecutive years out of the past eight.

Example 3:
Nicole purchased a home in 2006, and lived there for the past 3 years as her primary home. If Nicole decides to buy a new primary residence today, she would not qualify for the $6,500 tax credit based on the fact that she did not live in the same residence as her primary home for at least five consecutive years out of the past eight.

The tax credit applies to homes purchased for less than $800,000 before May 1, 2010. “If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010,” Nicholas said. “It works kind of like a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.”

The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. “This means that more people will qualify for the credit – especially in parts of the country with higher costs of living,” Nicholas said. “This should help stimulate parts of the housing market that may not have been impacted by the old version of the credit.”

There are many creative ways of structuring your home purchase transaction in ways that maximize the benefits of the credit. Here are a few examples:

-The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence – you could live in one unit and rent out the others

-If two unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit).

-The credit applies even if you have co-signers on your mortgage loan

Don't Let An Over-priced Home Be a Humbling Lesson

Perhaps the greatest influence in getting your home sold is entering the market with a home that's priced correctly.

Over-priced homes won't get favorable attention; they lose out to the ones that are reasonably priced.

All sellers are looking for the highest price for their home. That's why some sellers want to start at the highest point, maybe even asking a higher price than what they really believe they can get -- the continued readjustment of price can be a humbling ride down to finding the reasonable price to sell the home.

Still dropping the price sounds like an okay strategy, some sellers think.

Here's the problem, especially in today's current market conditions where numerous sellers are competing for fewer buyers -- adjusting price down may come too late and cost the seller less in gain than if the home were priced correctly from the start.

The majority of buyers use buyers' agents to assist them with purchasing a property. Buyers' agents will help the buyers find a home that's right for them. If their buyers are interested in a particular home and it is priced too high (based on comparable properties sold) then the buyers' agents will find their clients similar more reasonably priced homes to view in the same area.

As a seller's property that's over-priced continues to sit on the market the listing loses its newness. There are typically fewer new listings than existing listings. Agents pay a great deal of attention to what's new on the market. Homes that are priced correctly generate attention, activity and a sale; over-priced homes, on the other hand, sit for long periods, are passed over, and ultimately result in a price reduction.

If a seller has an over-priced home on the market and then chooses to drop the price it sometimes goes overlooked. Because it's not a new listing it'll need a little more attention to get agents and buyers to notice that this same home is now being offered for less.

Flyers, emails, ads, etc. have the challenge of enticing buyers and agents who wouldn't give it a look at the higher price -- to come see it now. Not an impossible battle, but again, the listing is no longer new and may be less appealing even with the price reduction.

Obviously, the longer an over-priced home sits on the market, typically the more financial stress the seller begins to feel. If the seller has purchased a new home or must move to another state, suddenly the desperate seller syndrome sets in and low-ball offers may have to be accepted due to financial circumstances.

Pricing a home correctly initially is vital -- otherwise the "we-can-always-drop-our-price" strategy could become a costly and humbling lesson in the end.

Home Buyer's Tax Credit Changes Possible

The first major change to the $8,000 home buyer's tax credit began moving through Congress the last week of September, giving hope to real estate and building groups pushing for extension of the entire program before it expires November 30, 2009.

House Ways and Means Committee chairman, Congressman Charles Rangel, a New York Democrat, combined several smaller bills into the "Service Members Home Ownership Act of 2009", with a floor vote expected soon.

The bill is intended to correct a flaw in the original tax credit legislation: By requiring buyers to occupy and own their first home for 36 months to fully qualify for the credit, the program creates serious problems when military, Foreign Service and intelligence agency personnel are transferred overseas.[click her for the rest of the article]

Positive Signs: Home Prices on an Upswing in Second Quarter 2009

RISMEDIA, August 26, 2009-Data through June 2009, released by Standard & Poor’s for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, show that the U.S. National Home Price Index improved in the second quarter of 2009. The S&P/Case-Shiller U.S. National Home Price Index- which covers all nine U.S. census divisions- recorded a 14.9% decline in the 2nd quarter of 2009 versus the 2nd quarter of 2008. While still a substantial negative annual rate of return, this is an improvement over the record decline of 19.1% reported in the 1st quarter of the year. The 10-City and 20-City Composites recorded annual declines of 15.1% and 15.4%, respectively. These are also improvements from their recent respective record losses of -19.4% and -19.1%.

“For the second month in a row, we’re seeing some positive signs,” says David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. “The U.S. National Composite rose in the 2nd quarter compared to the 1st quarter of 2009. This is the first time we have seen a positive quarter-over-quarter print in three years. Both the 10-City and 20-City Composites posted monthly increases, as did most of the cities. As seen in both seasonally adjusted and unadjusted data, there are hints of an upward turn from a bottom. However, some of the hardest hit cities, especially in the Sun Belt, show continued weakness.”

Read more: http://rismedia.com/2009-08-25/positive-signs-home-prices-on-an-upswing-in-second-quarter-2009/#ixzz0PHoqnnHC

Signs of Change: Existing Home Sales Rise 3.6% in June

RISMEDIA, July 24, 2009-Existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June, according to the National Association of Realtors®.

Existing-home sales-including single-family, townhomes, condominiums and co-ops-increased 3.6% to a seasonally adjusted annual rate of 4.89 million units in June from a downwardly revised pace of 4.72 million in May, but are 0.2% lower than the 4.90 million-unit level in June 2008.

Lawrence Yun, NAR chief economist, is hopeful about the gain. “The increase in existing-home sales occurred in all major regions of the country,” he said. “We expect a gradual uptrend in sales to continue due to tax credit incentives and historically high affordability conditions. Despite the rise in closed transactions, many Realtors® are reporting lost sales as a result of new appraisal standards that went into effect May 1 of this year.”

Read more: http://rismedia.com/2009-07-23/signs-of-change-existing-home-sales-rise-36-in-june/#ixzz0MD5pTTMN

Get Your $8,000 Tax Credit NOW!

If you (or your spouse) haven't owned a home in the past three years, Uncle Sam wants to give you $8,000! This amazing tax credit is only available on homes purchased through December 1, 2009 so NOW is the time. Interest rates are incredibly low and the number of available homes has never been better. Let me help you get your piece of the pie! Visit my web site at maggieosborne.net to learn more!

The Contract Offer: What Price to Start With

When a decision is made to make an offer to purchase a home, be sure to go back and take a second look. It is so much easier changing your mind about a home before a contract offer is made than after a contract offer is accepted and signed by the seller. This second appointment would be a perfect time to bring along others who may have an impact on a buying decision, such as parents, friend, contractor, etc.

Go through the home a second time and look beyond the owner’s décor, whether it was the home just previewed, the first one seen earlier in the day or the one previewed last week. Why? There are many reasons, but most importantly is seeing if the second look creates the same good feeling as the first, and then taking a closer look to see if there are aspects of the home missed during the first preview which may alter the decision to submit a contract offer.

So what is the right price to start with?

That depends on a number of things, such as the risk of losing the home to another buyer, how close to market value the seller’s asking price is and what is the maximum price willing to be paid for the home.

Even though the current market is considered a buyer’s market, there are many properties on the market for sale where the listing price is at, or very near market value, and where price negotiation will not be as great as other properties on the market that are priced well above market value.

In fact, don’t be surprised to find that there are multiple offers being submitted and negotiated. [read the complete article here...]

Key to Earning Energy-Efficiency Tax Credits

Homeowners now can claim up to $1,500 in expanded energy-efficiency tax credits for remodeling their principal residence to reduce energy consumption. Available until the end of 2010, the revamped Existing Home Retrofit (25C) Tax Credit helps consumers save two ways: on their costs and on their utility bills.
"Remodelers can help find the best methods of saving energy in your home with an assessment, like a home energy audit," explained Greg Miedema, CGR, CGB, CAPS, CGP, a remodeler from Tucson, Ariz. "Tightening the house to reduce air leakage by adding insulation, fixing ducts, and installing a more efficient heating and air conditioning system can help save on energy bills today while also reducing next year's tax bill."
The expanded federal tax credit refunds 30 percent of the product replacement cost up to a total of $1,500. It can be used not only for HVAC

CONTINUED >>>

Free Money! If you're not buying your first home you're crazy!

I wish these programs had been around when I bought my first home! Frederick County is offering $5,000 to $7,000 grants for first time homebuyers. Other counties have similar programs. You can add that to the Federal Grant match program which matches $5 for every $1 you spend (you put down $1,000 Uncle Sam will give you $5,000) up to $10,000! Oh and don't forget the $8,000 federal tax credit that you can collect this year! Home prices are great, interest rates are historically low, local and federal governments are giving away free money...if you are not actively shopping for your first home then...why not?? Like all programs there are income limitations and other criteria needed to qualify for these programs but they are very reasonable. If you want to own your own home, now is the time! Give me a call.

Donald Trump says "Now is the greatest time ever to buy a house"

You probably either love him or hate him but you must admit Donald Trump knows real estate. In an interview last night on Larry King Live, Donald Trump said "this is now the greatest time maybe ever, maybe in history, to buy a house." Please see the transcript below:

KING: Latest report, housing up in the last month, in February. And it was up in units that were apartment buildings. What do you make of that?

TRUMP: I think it is the beginning of a positive trend. Real estate has been absolutely beaten down. And this is a great -- as I told you before, I am buying a lot of real estate now. This is a great opportunity to buy real estate. It is a great opportunity for somebody, even with not a lot of money, to go to a bank and buy a beautiful house, better than they ever thought they would buy. The bank will take back financing. They won't give you financing. But if they have a house, they will take back financing. You understand the difference. If you go to the bank and say I want financing, I have the greatest credit rating, they won't give you 10 cents. But they will take back a lot of paper. And that is -- this is now the greatest time maybe ever, maybe in history, to buy a house.

KING: Really? The greatest time ever to buy a house?

TRUMP: I think so.

KING: Will the bank help you buy the house?

TRUMP: You must buy the house from a bank, and they must take back virtually 90 to 100 percent paper. If they've don't, you have no interest in buying a house. You go to the bank; you look at one of their thousands and thousands of houses. You buy that house, but they have to take back financing.

Mr. Trump is on to something. In our market I have found that the banks are more willing to accept offers on houses they own when they will also be providing the financing. There are many great options out there right now for the first-time home buyer to the investor. Contact me to find out how you too can take advantage of this exceptional buyer's market. Let me put my expertise to work for you!

Smart Ways to Trim Big-Ticket Expenses

I saw this article on Bankrate.com today and thought that these were good suggestions for every family to follow in these though economic times. I hope you find this useful too- Maggie

by Steve Santiago
Friday, November 7, 2008
provided by Bankrate.com

Anyone on a tight budget knows how hard it can be to save money these days, especially when most of your income is spent paying for such basics as food, gas and housing.

Barring unexpected windfalls such as an inheritance or a huge salary increase, today's cash-strapped families need to take a look at their spending habits if they expect to free up money for emergencies, retirement or even dinner and a movie.

The first step is coming to terms with wants versus needs. Next, tally all major monthly expenses and investigate whether they can be obtained more cheaply.


Budget-conscious consumers can find dozens of ways to trim fat from bloated household budgets, but rather than focus on minutiae, we've compiled ideas that provide the biggest bang for the buck.

7 Ways to Cut Back Expenses

1. Homeowners Insurance
If you can afford to, consider raising your deductible to $500 or $1,000. You can also reduce your premium by reducing coverage on the "household contents" portion of your insurance policy. This part of your homeowner's policy covers your personal belongings rather than the structure itself.


Most insurance companies offer discounts if you buy your homeowners and automobile policies from them. You can also reduce your premium by installing smoke alarms, deadbolt locks and home security systems that are monitored 24 hours a day.

Potential Savings: By raising your deductibles, combining policies and installing home security devices, you can save as much as 25 percent every month on premiums, according to the Insurance Information Institute.


2. Auto Insurance
Start by shopping around and requesting multiple quotes. (You might also want to get quotes for homeowners insurance at the same time, since having multiple lines with one company usually results in reduced costs.) Make sure the coverage you seek from competitors matches the coverage you have (or want) so that the comparisons are apples-to-apples.

Auto polices can vary by several hundred dollars, depending on the insurance company and your driving record. Blemishes like speeding tickets and chargeable accidents will cost you more.
Be sure to advise your insurance agent of your car's safety features. Such things as air bags, anti-lock brakes, daytime running lights and anti-theft devices can shave dollars off your premium.


Be sure not to skimp on liability insurance, though. A March 2008 report by AAA concluded that the average cost of a crash-related injury was $68,170, factoring in medical costs, property damage and rehabilitation, etc.

"If you're in a nasty accident you could lose everything," says Gary Foreman, publisher of Stretcher.com. "That is not the place to start saving."

You can also save money by raising your auto insurance deductible, but make sure that you can afford the increased deductible if you're in an accident. If you own an older vehicle that is fully paid for, you may want to drop comprehensive coverage altogether and opt for general liability coverage only.


Potential Savings: Increasing your deductible from $200 to $500 could cut costs on your collision and comprehensive coverage by 15 percent to 30 percent. Opting for a $1,000 deductible could save you 40 percent or more, according to the Insurance Information Institute.

3. Groceries
The U.S. Department of Labor's Bureau of Labor Statistics says Americans spend nearly 14 percent of the household budget on food. Gary Foreman, publisher of Stretcher.com, believes it's closer to 20 percent, and of that amount, 25 percent is wasted.


"That's because it either: 1) Gets bought and goes bad before they cook it; or 2) They cook it and it goes into the refrigerator -- with every intention of turning it into tomorrow night's leftovers -- but it ends up becoming a science project," he says.

The Goal: Reduce wasted food by 25 percent. You'll see your grocery dollar go a lot further. Cutting coupons can make a dramatic difference.


"Layer the savings, don't settle for just one kind of savings at the grocery store," says Ellie Kay, author of "How to Save Money Every Day."

She advises shoppers to learn to compound savings by monitoring store sales and using double coupons, cash-off-your-next-shopping-trip vouchers, store coupons and more.


It's a good idea to keep track of the prices of frequently bought items in a notebook, suggests Gary Foreman, publisher of Stretcher.com. "So when you see a sale price, you can truly judge if it's a good deal and stock up on it."

Shopping Tip: Make a simple meal plan for the entire week before you go shopping to keep you from buying things that look enticing but don't get eaten.


Cooking Tip: Microwaves can be a busy family's best friend. Prepare a dinner plate or
two using leftovers; date and freeze them. Display a list of meals on the front of the freezer. When something gets eaten, cross it off the list. When a new meal is ready for the freezer, add it to the list in chronological order so older food gets eaten first.


Potential Savings: Ellie Kay says the average family of four can save up to $3,900 per year by following these tips.

4. Communications
Premium cable channels and cell phone plans with thousands of minutes and options like texting and Web access go right to the top of the "want" list rather than the "need" list.


The average monthly price for expanded basic programming is $42.76, according to the National Cable & Telecommunications Association. Add a couple of premium channels, a sports package or two and your monthly bill can easily top $100 per month.

"Nobody should be in the position that they are going to lose their home or can't make credit card payments on time because they absolutely have to have HBO2," says Gary Foreman, publisher of Stretcher.com.


Consider if you really need extra cell phone options or an infrequently used landline. The average monthly cost for bundled cell phone service (including voice, Web access and texting options) is between $99 and $149, plus taxes and surcharges.

Potential Savings: $100 or more per month.


5. Clothing
Families with young children tend to spend more on clothing because kids seem to grow into the next size overnight, and they tend to be a little rougher on their wardrobe. The solution? Shop the clearance racks often.

"I purchased six pairs of jeans for my kids this way, with original prices at $60 and sales prices at $20 for a total savings of $240," says Ellie Kay, author of "How to Save Money Every Day."

Another solution is to buy used clothing at consignment or thrift shops, but make sure
it's in good condition.


Financial adviser Susan Zimmerman of Mindful Asset Planning in Apple Valley, Minn., says she saved a bundle by waiting until her children were older before they got the latest gear.

"I didn't buy toddler and preschool clothes at a store at all," she says. "I got them at garage sales and things like that."


Potential Savings: Hundreds of dollars, depending on how many children you have and how often you need to buy clothing.

6. Utility Bills
The typical American family spends more than $1,600 a year on home utility bills, according to the U.S. Department of Energy. The price of home heating oil alone rose 49.2 percent between August 2007 and August 2008, according to the U.S. Bureau of Labor Statistics.


Much of that energy is wasted through cracks in windows and doors and through open chimney flues.

Close the damper on your fireplace if you have one. Leaks through the damper can increase your heating bills by 8 percent or more.


In colder climates, small improvements such as caulking and using plastic films around window frames will stem the amount of heat that's wasted.

"Start with obvious things like weather stripping the house to reduce air conditioning and heating costs," says Gary Foreman, publisher of Stretcher.com. "Any time you can create an air pocket that way, you will save on your heating bill."

Set your thermostat back when you're not home and while you're sleeping. Lower the temperature on your water heater to 120 degrees Fahrenheit. An added benefit is that you'll prevent unnecessary scalding injuries.


Potential Savings: You can save up to 10 percent on your heating and cooling costs. A dwelling that incorporates a "whole-house energy efficiency plan" by using proper insulation, compact fluorescent light bulbs and energy-efficient appliances can cut energy costs by up to 25 percent, according to the U.S. Department of Energy.

7. Entertainment
Just because you're in "savings combat mode" doesn't mean you have to wait until 49-cent-burger-night to treat the gang to dinner and a movie. One way to curb expenses: Invest in region-specific entertainment coupon books at such sites as Entertainment.com.


The books sell for between $25 and $45 each and pay for themselves in short order. The discount coupons offer deals for eating at local restaurants, but an added benefit is you can also save on movie theaters, theme parks and other local stores.

Potential Savings: The coupon book for the Fort Lauderdale, Fla., area claims more than $18,200 in savings if you use every coupon. Of course, you don't want to use every coupon or your entertainment expenses will be through the roof! But even if you were to use just 10 percent of the coupons, you'd save about $1,820.


Copyrighted, Bankrate.com. All rights reserved.

Where real-estate market may be headed, and how to plan for it

Evidence of a bottomThere are some signs that the relentless foreclosures and price erosion are easing. We may be hitting bottom.
1. Escrow index. Last week, pending home sales, as measured by the National Association of Realtors pending home sales index, were up unexpectedly to 89, the highest since October of last year. A leading indicator of sales, it shows buyers may be coming off the sidelines.
2. Sellers market in lower price ranges? While overall U.S. months-of-inventory remains over 11, the figure appears to be dropping at the lower price ranges. In the Sacramento market, for instance, a previously overheated market, homes under $500,000 are seeing months of inventory between three to four vs. 12 or 13 for higher price ranges... [read more] Yahoo! Finance, Jennifer Openshaw 8/18/08

President Bush signs into law the Housing and Economic Recovery Act of 2008

Thanks to the advocacy of REALTORS across the nation, homebuyers will soon have access to more affordable financing, and first-time homebuyers (those who have not owned a home for three years) will receive a tax-credit to help them enter the market. This is exciting news for REALTORS, home buyers and sellers alike. Here are more details of the Housing and Economic Recovery Act of 2008:

National Association of REALTORS®
Summary of Key Provisions of H.R. 3221 - The Housing Stimulus Bill (as of 7/30/08)

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H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:

• GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
  
• FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
  
• Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
  
• FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
  
• Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
  
• VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
  
• Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.
  
• GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.
  
• Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.
  
• National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.
  
• CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
  
• LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.
• Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.

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