Minerva RSSMinerva RSSWed, 04 Jul 2012 18:43:47 EDTWed, 04 Jul 2012 18:43:47 EDTMinerva Real Estate 2012en-usThe remodeling industry seems to have turned the corner, with kitchens leading the way, according to the National Kitchen & Bath Association's latest market report. In the first three months of 2012, the number of homeowners who started a kitchen renovation was up more than 50 percent from the previous quarter. The average budget for those projects, meanwhile, jumped 6 percent to $30,325, and nearly all dealers expect that figure to increase or stay the same. If you're planning a remodel of your own, these findings underscore the need to stick to your budget. Here are five tips pulled from Consumer Reports' 2012 Kitchen Report. Plan it properly. Nothing blows a budget faster than making changes after the work is under way. When we surveyed readers about what went wrong on their last kitchen remodel, late changes was the most expensive answer, costing an average of $1,500. For a major kitchen remodel, you should spend several weeks to a few months perusing magazines, meeting with pros, and visiting showrooms. Consider mid-range appliances. A suite of professional appliances could set you back $20,000, but our tests have found that these high-priced products don't always deliver top performance, and you might also be missing out on the latest innovations. For example, several induction ranges costing $2,500 or less delivered better temperature control than beefy 36-inch pro ranges costing twice as much. If you're really smart, you can outfit the entire kitchen, including the fridge, range, dishwasher, and microwave, for less than $4,000. Skip the custom cabinetry. Cabinets can account for half the cost of a kitchen, especially if you spring for custom units. You can save 30 percent or more by choosing semi-custom units. Stock units offer even greater savings, without necessarily sacrificing style. If the layout of the existing cabinets works and the units are plumb, square, and sturdy, you could refinish them with a fresh coat of paint or reface them by replacing the cabinet doors and drawers and applying veneers to the face frames and ends. Save on surfaces. You don't interact with countertops and floors the way you do with appliances and cabinets. So if you're on a tight budget, these surfaces are the place to save. Instead of high-priced natural stone for the countertop, consider laminate, which performed very well in our tests, especially against stains and heat. On the floor, vinyl is a cost-effective alternative to wood and stone, and it comes in some very alluring patterns. Do some of the work yourself. That might knock a few thousand bucks from your budget. Focus on the front and back ends of the project, such as ripping out the cabinets during demolition and handling the finish painting. Leave the complicated electrical and plumbing work to the pros. Invest in quality labor for finish work, like tile setting, since small mistakes can cause major disappointment.Wed, 04 Jul 2012 18:43:47 EDTarticlesFARMERS BRANCH, Texas, Feb 17, 2012 (BUSINESS WIRE) -- Minerva Real Estate (Minerva), a Dallas-based real estate company, is proud to announce the executed lease agreement for Copart's corporate headquarters relocation from California to Farmers Branch, Texas. An online auction for used and salvage vehicles, Copart will occupy the third and fourth floors at Centura Tower One, on the southwest corner of Spring Valley and the Dallas North Tollway. The total office space is 53,126 square feet and will consolidate the organizations' call center operations into one location. Copart is expected to make the move this summer and hopes to bring 250 jobs to North Texas over the next three years. "Copart's move to North Texas allows us to take full advantage of all that Dallas/Ft. Worth has to offer. We are excited about finishing our transition this summer," said Jay Adair, Copart chief executive officer. In addition to the corporate relocation services provided to Copart, Minerva was instrumental in locating permanent residential housing for several executive team members. "Copart's relocation to Farmers Branch highlights the attractiveness of this area to business owners," said Chris Schilling, Minerva Real Estate managing broker. "At Minerva, we help companies looking to enhance their profitability by relocating to a pro-business state like Texas. Our smarter approach to real estate allows us to offer turn-key services to relocating companies such as Copart." As more companies seek out Texas as an ideal location to establish and grow their business, Minerva delivers an innovative, online and customized approach to real estate. This includes commercial and residential property searches, deal negotiations and closing services. Business owners, executives and employees moving to Texas can also take advantage of Minerva's relocation services which include recommending services providers, arranging for utility set-up and providing education and tips for schools, medical providers and more. Farmers Branch is home to more than 3,500 companies and more than 250 corporate headquarters, including Maxim Integrated Products, SoftLayer Technologies, Essilor, JDA Software, Occidental Chemical, iidon Security, Taco Bueno and Celanese Corporation. With a sales tax exemption, property tax rebate and other types of incentives, Farmers Branch is making it easier than ever to relocate and call Farmers Branch home. "We couldn't be happier to be welcoming Copart to our very exciting east side Dallas North Tollway corridor," said Farmers Branch Economic Development Director John Land. "Copart's addition to Centura Tower only enhances the Farmers Branch corporate community and adds additional prestige to that landmark office building." About Minerva Real Estate Minerva Real Estate is a revolutionary real estate company that utilizes the latest technologies and online tools to provide a smart, innovative and meaningful real estate experience for our agents and clients alike. Our focus on technology keeps us efficient, which means that we can invest more time in what really matters -- making our customers happy. For more information about real estate services, please visit www.minervarealestate.com , for relocation services www.minervarelo.com or call 877.339.6463. SOURCE: Minerva Real Estate for Minerva Real Estate Kerri Fulks, 972-499-6617 kerri.fulks@hck2.comSun, 19 Feb 2012 13:53:51 ESTarticlesTimes are tough in the home-building industry, meaning the 500,000 or so new single-family homes expected to be built this year are going to include more practical and value-conscious features and fewer wish-list items. Outdoor Kitchens & Outdoor Fireplaces Along with outdoor kitchens, outdoor fireplaces aren’t expected to be in such great demand. They are the second least-likely feature to be included in new homes in 2012, according to a survey from the National Association of Home Builders. Sunrooms Sunrooms are also on the wane. “Builders are focusing on features that add immediate value and make a home more practical,” said Rose Quint, assistant vice president of survey research, economics and housing for the NAHB. What’s more practical? Things like walk-in closets, linen closets and laundry rooms. Two-Story Family Room The family room itself may be making a comeback as a gathering center of the home, but the two-story family room is getting cut off at the knees. On a scale of 1 to 5, builders gave it only a 2.2 as a feature for new homes in 2012. Media Room Even with all the options in home entertainment today, the media room isn’t high on the list for home builders. You’re much more likely to find a charging station for all your devices hidden away in a kitchen-island cabinet in 2012. Two-Story Foyer Like the two-story family room, the two-story foyer is on the way out. Blame utility bills: Home buyers are more focused on energy-saving windows and appliances than on soaring spaces in 2012. Master-Planned Developments Master-planned developments like Lago Estancia in Phoenix often tout their walking and jogging trails as a community attraction. But such amenities will not be popular this year, home builders say. Luxury Master Bathrooms Luxury master bathrooms with multiple-head showers will be getting toned down in 2012. Something more practical — say, a double sink in the kitchen — is much more likely to be included in new homes this year. Formal Living Room The demise of the formal living room is predicted once again in 2012. Home buyers are much more likely to request a great room that combines the kitchen, family room and living room into one large open space at the center of the home. Whirlpool Tubs As with the multiple-head showers, whirlpool tubs in the master suite are also on the wane. You are more likely to see stand-alone tubs, in classic or contemporary styles, that make a design statement in the master bath, said Jill Waage, editorial director/home for Better Homes and Gardens magazine.Sun, 19 Feb 2012 13:26:50 ESTarticlesImagine for a moment the following: Your career is going great. (For some, this alone may be too big a stretch, but stick with me because I am trying to make a point.) You’ve scrimped for years, and your family has now outgrown your home. Time to reward everyone by building a new house, one suited just for you, one that fits your family and lifestyle. You’ll be in the right part of town, near good schools and plentiful soccer fields, and you even have a specific look in mind—Tuscan stone, or country French with sculptured hedges that look like garden gnomes. Your favorite banker, after checking your income and credit history, decides to give you $1 million to build your dream. But then, just as you’re ready to sign the dotted line, your hands shaking in anticipation, your heart all aflutter, your loan officer smiles and adds, “Of course, I expect you to use this money to hire my architect, my general contractor, my engineer, my electrician, my landscaper—in fact everyone you need to build your house is my choice, not yours.” Your hand still quivering? Would you put up with that? No one would, right? Well, before you pick up your Occupy banner and march off to protest the mortgage industry, let’s make one minor change to the story above and see how you feel. You’ve worked hard to grow your business. You’ve invested in the right tools, hired the right people, cultivated the right vendor relationships. And now you’ve outgrown your space. You have a specific part of North Texas in mind that’s near important customers or suppliers or an employee base from which to draw new talent. So you meet with prospective landlords, each of whom quotes you a rate and then graciously offers you a Tenant Improvement (TI) allowance. Now doesn’t that sound nice? An allowance. Just like when you were a kid. Mow the lawn, collect your allowance. But that’s not how this allowance works. Instead, a TI allowance is really no different than the loan the banker offered. They are not giving you money because you are in the 99 percent! They are not giving you money at all. They expect you to use that money to build out your space in their building. So what, right? Most understand the consumer pays for everything. So you shrug that off and enter into negotiations with the landlord that offered the best deal. And then it happens: you’re handed a turnkey lease. What is that? A turnkey lease says the landlord will use your allowance dollars (the money just loaned to you) to build out the space just like you like it (Whataburger without the greasy mess?). And that’s good, yes? You don’t have to do anything more but show up when all that nasty construction work is done. The landlord will use the money he loaned you to pay for his architect, his general contractor, his engineer, and his electrician. Oh, and one more thing, the landlord wants a 3 percent to 5 percent fee for doing so. So he loans you the money, then uses it to hire all his people, then charges you to spend it? Your hand started quivering again yet? But wait, turns out a lot of landlords (not all, probably not even most, so spare me the hate mail) have special relationships with architects, contractors, and other vendors they “allow” to work in their buildings. Often, these special vendors provide referral fees or discounts back to the landlord because they do so much business together. It’s kind of a volume thingy. You send a lot of work my way, I send you some money back. Get it? There’s more! When a landlord gives you an allowance, say $35 a foot to build your space, you can rest assured they added plenty of contingency dollars just-in-case. They do so because the landlord is carrying all the construction risk. And risk costs money. But assume the job goes well and there is no just-in-case money needed; the project winds up costing $30 a foot instead of $35. Think you’ll see any of that $5 a foot? I’m just asking. Believe it or not, this sort of thing happens daily across Dallas-Fort Worth, and throughout the country. In fact, in some cities, the deal-making, back room negotiations, and brother-in-law favors involved in the office construction trades would make a pole-dancer blush. So if you want to make sure the money loaned to you—which you are going to have to pay back—is used for your benefit and not that of others, first, do yourself a favor and ask some questions. For instance, if a prospective landlord hands you a list of preferred vendors, ask what makes them preferred. And second, if you don’t like the landlord’s answers, think about hiring an independent project manager to represent your interests throughout the construction project. A good, ethical project manager often more than offsets their fees by keeping all transactions transparent, by making the market compete efficiently at every stop along the way, by finding ways to control pricing and risk, and by making sure a TI allowance is used to benefit the tenant. Third, think twice about such deal structures, because turnkeys can quickly morph into turkeys.Sun, 12 Feb 2012 11:39:35 ESTarticlesImagine for a moment the following: Your career is going great. (For some, this alone may be too big a stretch, but stick with me because I am trying to make a point.) You’ve scrimped for years, and your family has now outgrown your home. Time to reward everyone by building a new house, one suited just for you, one that fits your family and lifestyle. You’ll be in the right part of town, near good schools and plentiful soccer fields, and you even have a specific look in mind—Tuscan stone, or country French with sculptured hedges that look like garden gnomes. Your favorite banker, after checking your income and credit history, decides to give you $1 million to build your dream. But then, just as you’re ready to sign the dotted line, your hands shaking in anticipation, your heart all aflutter, your loan officer smiles and adds, “Of course, I expect you to use this money to hire my architect, my general contractor, my engineer, my electrician, my landscaper—in fact everyone you need to build your house is my choice, not yours.” Your hand still quivering? Would you put up with that? No one would, right? Well, before you pick up your Occupy banner and march off to protest the mortgage industry, let’s make one minor change to the story above and see how you feel. You’ve worked hard to grow your business. You’ve invested in the right tools, hired the right people, cultivated the right vendor relationships. And now you’ve outgrown your space. You have a specific part of North Texas in mind that’s near important customers or suppliers or an employee base from which to draw new talent. So you meet with prospective landlords, each of whom quotes you a rate and then graciously offers you a Tenant Improvement (TI) allowance. Now doesn’t that sound nice? An allowance. Just like when you were a kid. Mow the lawn, collect your allowance. But that’s not how this allowance works. Instead, a TI allowance is really no different than the loan the banker offered. They are not giving you money because you are in the 99 percent! They are not giving you money at all. They expect you to use that money to build out your space in their building. So what, right? Most understand the consumer pays for everything. So you shrug that off and enter into negotiations with the landlord that offered the best deal. And then it happens: you’re handed a turnkey lease. What is that? A turnkey lease says the landlord will use your allowance dollars (the money just loaned to you) to build out the space just like you like it (Whataburger without the greasy mess?). And that’s good, yes? You don’t have to do anything more but show up when all that nasty construction work is done. The landlord will use the money he loaned you to pay for his architect, his general contractor, his engineer, and his electrician. Oh, and one more thing, the landlord wants a 3 percent to 5 percent fee for doing so. So he loans you the money, then uses it to hire all his people, then charges you to spend it? Your hand started quivering again yet? But wait, turns out a lot of landlords (not all, probably not even most, so spare me the hate mail) have special relationships with architects, contractors, and other vendors they “allow” to work in their buildings. Often, these special vendors provide referral fees or discounts back to the landlord because they do so much business together. It’s kind of a volume thingy. You send a lot of work my way, I send you some money back. Get it? There’s more! When a landlord gives you an allowance, say $35 a foot to build your space, you can rest assured they added plenty of contingency dollars just-in-case. They do so because the landlord is carrying all the construction risk. And risk costs money. But assume the job goes well and there is no just-in-case money needed; the project winds up costing $30 a foot instead of $35. Think you’ll see any of that $5 a foot? I’m just asking. Believe it or not, this sort of thing happens daily across Dallas-Fort Worth, and throughout the country. In fact, in some cities, the deal-making, back room negotiations, and brother-in-law favors involved in the office construction trades would make a pole-dancer blush. So if you want to make sure the money loaned to you—which you are going to have to pay back—is used for your benefit and not that of others, first, do yourself a favor and ask some questions. For instance, if a prospective landlord hands you a list of preferred vendors, ask what makes them preferred. And second, if you don’t like the landlord’s answers, think about hiring an independent project manager to represent your interests throughout the construction project. A good, ethical project manager often more than offsets their fees by keeping all transactions transparent, by making the market compete efficiently at every stop along the way, by finding ways to control pricing and risk, and by making sure a TI allowance is used to benefit the tenant. Third, think twice about such deal structures, because turnkeys can quickly morph into turkeys.Sun, 12 Feb 2012 11:39:20 ESTarticlesEven the most organized people hate tax season, but this year Uncle Sam has a special present: two extra days to prepare. Taxpayers will have until Tuesday, April 17 to file their 2011 tax returns because April 15 falls on a Sunday, and Emancipation Day -- a holiday observed in the District of Columbia -- falls on Monday, April 16. According to federal law, D.C. holidays impact tax deadlines in the same way that federal holidays do. Therefore, all taxpayers will have two extra days to file this year. Taxpayers requesting an extension will have until October 15 to file their 2011 tax returns. Now on to your returns: Claim these often overlooked deductions and credits and you just might be able to pay less money to the IRS. Hooray for inflation, at least when it comes to tax preparation. When general prices rise, the IRS nudges up some of its limits. Here's what's new for 2011 returns: -- Personal and dependent exemption: $3,700, up $50 from 2010. -- Tax-bracket thresholds increase for each filing status: For a married couple filing a joint return, for example, the taxable-income threshold separating the 15 percent bracket from the 25 percent bracket is $69,000, up from $68,000 in 2010. -- The maximum earned income tax credit (EITC): $5,751, up from $5,666 in 2010. The maximum income limit for the EITC rises to $49,078, up from $48,362 in 2010. -- Cost-basis reporting by brokers: As of 2011, brokers must track clients' purchases of stock, real-estate investment trusts and foreign securities, and then report the original cost to the IRS when the asset is sold. This is an effort to improve tax compliance by investors. The rules for investments in mutual funds, bonds, options and many exchange-traded funds. 1. IRA/Roth Conversion: When you contribute to an individual retirement account (IRA), you help fund a future goal while lowering your current tax bill. In other words, socking cash in an IRA is like saving with help from your Uncle Sam. The rules are pretty simple: You have until the tax-filing deadline (again, that's April 17) to contribute up the lesser of your taxable compensation for the year or $5,000 to a 2011 IRA ($6,000 if you are 50 or older). If you are self-employed, have a Keogh or SEP-IRA, and have filed for an extension to October 15, you can even wait until then to put 2011 money into those accounts. Even if you're covered by a retirement plan at work, you can deduct some or all of your IRA contribution. The limits have increased for tax year 2011 modified adjusted gross income (AGI) as follows: -- More than $92,000 but less than $112,000 for a married couple filing a joint return or a qualifying widow(er) -- More than $58,000 but less than $68,000 for a single individual or head of household, or -- Less than $10,000 for a married individual filing a separate return. If your spouse is covered by a retirement plan at work but you are not, your deduction is phased out if your modified AGI is more than $173,000 but less than $183,000. If your modified AGI is $183,000 or more, you cannot take a deduction for contributions to a traditional IRA. 2. Roth IRA conversion: The income limit for Roth conversions was permanently removed, but taxpayers who converted to Roth IRAs in 2011 no longer have the option of deferring conversion income into later years, as was true for 2010 conversions. That means it's time to pay Uncle the taxes due on your conversion. 3. Itemized deductions and personal exemptions: The itemized deduction limitation is repealed for 2011 (and through 2012). This means that taxpayers can deduct the full amount of their itemized deductions in 2011. The personal exemption phase-out rules also do not apply through 2012. Get the Credit(s) You Deserve Tax credits are even better than deductions, because they lower your taxes dollar for dollar, instead of being calculated based on your tax bracket. If you are using last year's return as a guide, you should note that some credits, like the Making Work Pay credit, have expired. Still, there are plenty of other credits for taxpayers who qualify -- so don't miss them! [Also see: Surprising Jobs with $100K Salaries -- After Only a Two-Year Degree] 4. The Child Tax Credit is up to $1,000 for each qualifying child who was under the age of 17 at the end of 2011. This credit can be claimed in addition to the credit for child and dependent care expenses. For married taxpayers filing a joint return, the phase-out begins at $110,000. For married taxpayers filing a separate return, it begins at $55,000. For all other taxpayers, the phase-out begins at $75,000. (Details are in IRS Publication 972.) 5. The Earned Income Tax Credit is a refundable credit (meaning that even if your credit exceeds your tax liability, you don't lose the excess and are entitled to receive any overage as a refund) for married couples filing jointly with 2011 earned income under $49,078 and singles with income under $43,998. The IRS has created handy EITC calculator to help you determine whether you qualify for the credit. (Details are in IRS Publication 596.) 6. The Child and Dependent Care Credit is calculated based on your expenses paid for the care of your kids under age 13 to enable you to work or to look for work in 2011. The credit is 20 percent to 35 percent of your child-care expenses, up to $6,000 -- the size of your credit depends on your income. (Details are in IRS Publication 503.) 7. The Retirement Savings Contributions Credit is designed to help low- and moderate-income workers save for retirement. Individuals with incomes of up to $28,250 and married couples with joint incomes of up to $56,500 may qualify for a credit of up to $1,000 or up to $2,000 if filing jointly. Check out Form 8880 for the rules. 8. Energy and Appliance Tax Credit applies to taxpayers who made energy-efficiency improvements to their homes in 2011. You may be eligible for a tax credit of 10 percent for the cost, up to a maximum of $500. Approved improvements include new windows, insulation, high efficiency furnaces, water heaters and air conditioning, among many others, but you will need your receipts and manufacturer certification as back-up. (Energy Star has a list of items that qualify for the tax deduction). College Costs There are two federal tax credits available to help you offset the costs of higher education for yourself or your dependents. These are the American Opportunity Credit and the Lifetime Learning Credit. To qualify for either credit, you must pay post-secondary tuition and fees for yourself, your spouse or your dependent. The credit may be claimed by the parent or the student, but not by both. If the student was claimed as a dependent, the student cannot file for the credit. For each student, you can choose to claim only one of the credits in a single tax year. However, if you pay college expenses for two or more students in the same year, you can choose to take credits on a per-student, per-year basis. 9. The American Opportunity Tax Credit: Each student can now get a $2,500 "higher education tax credit" for the first four years of college. The credit is based on 100 percent of the first $2,000 of tuition and related expenses, including books, paid during the tax year, plus and 25 percent of the next $2,000 of tuition and related expenses paid during the tax year (subject to income phase-outs starting at $80,000 for singles and $160,000 for joint filers). 10. Lifetime learning credit: The credit can be up to $2,000 per eligible student and is available for all years of post-secondary education and for courses to acquire or improve job skills. The full credit is generally available to eligible taxpayers who make less than $60,000 or $120,000 for married couples filing a joint return. 11. Tuition and Fees Deduction: Every family can deduct up to $4,000 of college tuition and fees in 2011. If your modified AGI is between $65,001 and $80,000 for singles or between $130,001 and $160,000 for joint filers, you are entitled to a reduced deduction of up to $2,000. (IRS Publication 970) Add Up Those Itemized Deductions Nearly two out of three taxpayers take the standard deduction rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes. Some of those folks are leaving money on the table. If your deductible expenses exceed the 2011 standard deduction of $5,800 (up $100 from 2010) for singles and married individuals filing separately and $8,500 for heads of household, also up $100 and $11,600 for married couples filing jointly, be sure you itemize and grab these write-offs. [Also see: Disruptions: Facebook Users Ask, 'Where's Our Cut?'] 12. Miscellaneous deductions: These are deductible if they total more than 2 percent of your adjusted gross income. They include tax-preparation fees, job-hunting expenses, business car expenses and professional dues. 13. Sales tax: You can deduct sales tax paid in 2011 if the amount was greater than the state and local income taxes you paid. In other words, you get to choose: Write off your sales taxes or write off your income taxes. If you didn't keep your sales-tax receipts, use the IRS's sales tax deduction estimator. Even if you claim the sales tax amount from the IRS tables, you can add in tax paid on vehicles or boats purchased during the year, except to the extent the sales tax rate on them is more than the general sales tax rate. If you live in a state with a high income tax, like California or New York, you will probably be better off claiming your state and local income taxes rather than sales taxes. If you live in a state with no income tax, like Florida, Texas, or Washington, be sure to take the sales tax deduction when you itemize. 14. Medical expenses: This one is hard to claim, because the bar is so high to qualify. You can only deduct the portion of your 2011 medical expenses that exceed 7.5 percent of your adjusted gross income. (IRS Publication 502) 15. Mileage: Deducting miles driven for work or other purposes can be a huge tax break and save you significant money. The IRS increased the mileage deduction amounts for 2011: Business mileage = 51 cents per mile from January 1 to June 30, and 55.5 cents per mile from July 1 to December 31, 2011; medical and moving = 19 cents per mile from January 1 to June 30, and 23.5 cents per mile from July 1 to December 31, 2011; and charitable = 16 cents per mile. 16. Mortgage insurance deduction: Borrowers with AGI's up to $100,000 may be able to treat qualified mortgage insurance as home mortgage interest, which means that 100 percent of 2011 premiums may be deductible. The insurance contract had to be issued after 2006 and deductions are phased out in 10 percent increments for homeowners with AGI's between $100,001 and $109,000. (IRS Publication 936) 17. Enhanced adoption credits: As part of the Patient Protection and Affordable Care Act (March 2010), the Adoption Tax Credit was extended one year until Dec. 31, 2011, the amount of credit was increased to $13,360 and it was made refundable, meaning that families can benefit even if they have less than $13,360 of federal income tax liability. If adoption expenses have been paid for by an employer, you may qualify to exclude up to $13,360 from income. The credit is subject to income phaseouts from $185,210 to $225,210 in AGI. (IRS Topic 607) 18. Classroom deduction for teachers: K-12 educators who work at least 900 hours during the school year can claim an above-the-line deduction of up to $250 ($500 if married filing joint and both spouses are educators, but not more than $250 each) of any unreimbursed expenses (books, supplies and computer equipment -- including related software and services -- other equipment, and supplementary materials) used in the classroom. (IRS Topic 458)Sat, 11 Feb 2012 13:48:22 ESTarticlesNow may be the best time to sell your home. From a local perspective, if you have a DFW area or Dallas home to sell, the available inventory for sale is about 20% below year-ago levels. That means less competition to attract able and willing home buyers. Nationally, the economy seems to be improving. Unemployment claims just hit the lowest level since 2008. Plus, shoppers seem to be spending more this holiday season and feeling better about the economy. Now for the areas of concern. Than European debt crisis. The jury is still out on how this one will play out, as the recent wild, daily stock market swings attest. A severe slowdown in Europe has to have some affect on us locally at some point, as Houston and DFW are the 4th and 5th busiest US exporter metros. If we are affected in a big way, it's likely to send would-be home buyers back to the sidelines. The last wild card is the "shadow" inventory of foreclosed homes that have yet to hit the market. DSNEWS.com just issued a report stating that nationally there is 1 home (delinquent or in foreclosure) in the "shadows", for every 2 homes currently for sale. According to Corelogic, there are 1.6 million distressed properties that are not yet on the market. This represent about 5 months supply of inventory of distressed homes, while a 1 month supply is considered healthy. The top six states with which account for half of the "shadow" inventory include Florida, California, Illinois, New York, New Jersey and Texas. The shadow inventory includes 770,000 homes that are seriously delinquent, 430,000 are in foreclosure, and 370,000 are REO (owned by bank or lender) according to CoreLogic's report. To read the full report, visit DSNEWS.comWed, 04 Jan 2012 00:22:28 ESTarticlesHope everyone is enjoying the holiday season. At Minerva we are working hard to complete our current development phase. Some recent additions include the ability for agents to create and customize their own landing page, several updates to our home search pages, and an upgrade to our Document And Transaction Assistant, which helps users conduct a large part of their transaction online. We are grateful for all the comments/feedback we continue to receive from users all over the country. Your input is helping us achieve our mission of providing a smarter approach to real estate. In these next few weeks we will keep you posted via Facebook and Twitter about any new updates and improvements; please continue to provide your thoughts as well! From the entire Minerva team: happy holidays and a healthy and successful 2012! CSMon, 26 Dec 2011 14:51:57 ESTblogThe 2011 real estate market has gotten slighly better, although things have not been progressing all that quickly. In some ways, the real estate market is far from recovery, although some say that the worst is behind us and good times are ahead. But what needs to happen to actually get to a point of recovery? First, the number of foreclosures in the market will have to be cleared out. As soon as the excessive number of foreclosures and short sales have been brought down significantly, we can excpect a boost in national real estate statistics. That said, several experts are pointing at improvements in the real estate market. In some areas have seen increased prices as well as stabilized markets. These are promising statistics, and as the job market improves (more than two million jobs were created since 2010), the real estate market is predicted to follow. In March we already saw an increase in home prices of 2.2 percent, and median home prices rose to nearly $160,000. Still, we have a long way to go. Last year these numbers actually looked slightly better. But nevertheless, this is not a bad time to be cautiously optimistic. CS.Mon, 19 Dec 2011 21:13:50 ESTblogFinding a good real estate agent is critical to enjoying a smooth real estate transaction. But how do you ensure that you find an agent that’s right for you? When looking at agents, don’t be distracted by numbers. A high sales or transaction rate or name recognition are not the best indicators in this case. Rather, look at how well an agent will understand your specific needs, knowledge of your field of interest (are you buying, selling, looking for a short term lease…), as well as familiarity with a particular geographical area. Of course there is no “easy” method for finding that one agent that’s going to always understand you, can anticipate your needs, and will answer that 3am call with a smile. Referrals are traditionally a great way to narrow your search, because who better to advise you than your peers? We have put a lot of thought into incorporating the time-tested approach of asking a friend for a recommendation into Minerva’s site. We are currently developing a new agent search feature that will allow you to search for a real estate agent based on specific areas of expertise, geographies, and more. This will also give you the ability to hire, communicate with, or change agents as you see fit. To facilitate your decision making process, we will introduce an “agent testimonials” feature that allows you to see evaluations from people who have worked with an agent in the past. You will also be able to post a review of your agent on their profile page to help others in their decision making process. Lots of work to do still as we implement this agent search feature and think of additional ways to provide you with a smarter approach to real estate! Check back for updates soon! CSMon, 12 Dec 2011 15:10:50 ESTblogHere's the dirty little secret about home renovations: Most of them don't pay off. According to Remodeling Magazine's annual survey, only steel entry-door replacements can be counted on to boost home value enough to recoup 100 percent of costs. Of course, the value of a renovation doesn't depend on the resale price alone, which makes deciding whether to do one more complicated than just crunching numbers. "If the purchaser walks into a home and says, 'Wow, look at this kitchen, honey, it's so great,' and if that home sells quicker, the seller still gets value from the renovation, whether they get the return on investment or not," says Kit Hale, general manager of MKB Realtors in Roanoke, Va. The home might sell quicker, or the buyer might be so excited about a particular feature that they ignore other problems, such as water damage or much-needed maintenance elsewhere. For anyone trying to decide whether to take on a home renovation, these five tips can help: 1. Think about what you, the current homeowner, want from your home. Homeowners can get a lot of value out of renovations before they even put the home on the market. "If you have a dated kitchen or the stove doesn't work, you can invest money now to glean some enjoyment as well as make the home more appealing when you sell it," says Hale. That's what Erin Schaff and her boyfriend did when they decided to upgrade their two-bedroom condo in Victoria, Canada, several years ago. "It wasn't in horrible shape, but we wanted to upgrade," she says, so they spent about $10,000 replacing the baseboards, window trim, and floors. They also remodeled the bathrooms and upgraded the hardware. In addition, they put new cabinets, appliances, and granite countertops in the kitchen. Schaff and her boyfriend enjoyed all those upgrades before deciding to sell their home earlier this year. She believes the renovations paid off, too. "Had we not renovated, we probably would have lost money as we had purchased the condo at the peak of the real estate boom. Instead, we turned a profit and covered most of the costs of purchasing the house we now live in," she says. 2. Consider maintenance costs separately from renovations. If a roof needs to be fixed and the owner replaces it, sellers look at that as routine maintenance rather than a renovation, says Hale. That means it might just help the home sell for its existing market value, as opposed to adding extra value. Similarly, if parts of the home are in disrepair and in need of maintenance, sellers can subtract the cost of those upgrades from what they consider the home to be worth. 3. Don't forget about cheaper upgrades, from landscaping to staging. Realtors don't slip apple pies into the oven before an open house just in case they get hungry; inviting smells, sights, and sounds are known to put buyers in a home-purchasing mood. "Many folks form an opinion from the sidewalk," says Hale. If potential buyers see weeds, broken sidewalks, and unkempt shrubbery, then they might not even want to go inside. But if they see a well-cared-for exterior, they might get excited about the property before they even see the kitchen or master bedroom. That's why renovations that affect "curb appeal" can go the farthest. According to Remodeling Magazine, replacing a home's siding recoups 80 percent of its costs, on average, and window replacements replace just over 70 percent of costs. Both of those types of renovations are usually visible from the road. Meanwhile, the average major kitchen remodel recouped just 60 percent of its cost, and the average cost was a hefty $113,000. Similarly, master suite additions, bathroom renovations, and deck additions also recouped less than 60 percent of their costs. 4. Cleaning up can help as much as building bigger closets. Buyers like to see clear spaces without a lot of clutter. Hale says that some buyers make the mistake of trying to make bedroom closets look bigger by moving clothes into the basement. But that just shows buyers that the closets aren't sufficient, he says. He urges sellers to get rid of clothes and other items they no longer use to make their homes seem bigger, without doing a single dollar's worth of renovating. 5. Think like a buyer. "I tell sellers to walk into their homes as if they were the buyer. What are the things they see walking up to the home?" Hale says, adding that they should focus on the kitchen, appliances, and curb appeal. Today's buyers are especially interested in common spaces for the family to gather, such as screened porches and family rooms, as well as open-floor plan kitchens. That way, parents who are preparing meals can keep an eye on their children as they play or do homework. Buyers also care less about formal spaces today, which means a formal dining room could offer more value as a study or playroom. The Bottom Line Home renovations aren't just about the numbers, but a few basic guidelines can help buyers decide where to put their cash.Sun, 31 Jul 2011 12:31:45 EDTarticlesI don't know of any investment vehicle that can compete with the great tax deductions that rental real estate investors enjoy. Rental real estate investors get to deduct insurance, advertising, repairs, interest expenses, property taxes and depreciation of buildings and appliances. On a $100,000 home in a Dallas area suburb, tax deductions are roughly $10,000 on an 80%+ loan. Below are a few additional real estate investment strategies to further reduce your income tax liability. 1. Rent deposits should not be counted as income if you plan on deducting that money back to the tenants at the end of the lease. 2. On the sale of your rental property held for more than a year, you'll only pay capital gains - or 15%, versus the regular income tax rates (that are likely to head higher). You should also deduct commissions, title charges, recording and transfer charges, and settlement costs. 3. The costs of building your own property web site, as long as it's an ordinary and necessary advertising expense is deductible. Others include newspaper ads, signs, banners, and postage for direct mail. 4. Sell your homestead to yourself with a S-corporation. With this method, you are able to satisfy the requirement of occupying a home 2 out of the last 5 years to avoid paying capital gains. Say for example, you wanted to rent out your previous home to tenants for a long time period. Well, you could simply set up your own S-corporation and have it buy the home from you personally, and book the profits tax-free - as long as you've lived in the home 2 out of the last 5 years. 5. Refinancing your rentals. Once your rental home has appreciated in value or you've paid down the loan quite a bit, you can refinance the home at a higher loan amount, pay off the old loan, and put the excess cash left over in your pocket tax-free. Of course, you'll have to pay closing costs associated with the new loan, but it's free income. If you have multiple homes, you might consider refinancing into a portfolio loan. A portfolio loan would include multiple properties on one loan and could make it easier to qualify for additional fannie mae and freddie mac mortgages. Lastly, there's never been a better to buy rental real estate. Foreclosures are near an all-time high while mortgage rates are at an all-time low. Plus, ask any landlord, the rental business is booming! And real estate is a great hedge against a weak dollar and inflation.Wed, 20 Jul 2011 16:42:55 EDTblogWill home prices fall another 1%? 2%? 5%? Will mortgage rates go from below 5% to 6%, or 7%, or 8%? Should you continue to wait, and wait, and wait before you buy? And if you do wait, will home prices go down - or will both home prices AND interest rates rise, making it more expensive all the way around? No one knows if we've hit the bottom. And no one will know for sure, until the bottom is in the rear view mirror and prices have consistently moved up. One thing we do know is that homes are affordable. And rates are near all-time lows. And the economy and job market are improving. Frederick B. Wilcox said it best. "Progress always involves risks. You can't steal second base and keep your foot on first". Don't try to pick the bottom. Or you just might get caught, with stinky fingers!Thu, 07 Jul 2011 22:54:52 EDTblogWith affordable home prices and some of the lowest mortgage interest rates in history, The American Dream is on sale. Our economic uncertainty has bred tremendous fear, and in turn, tremendous opportunities. So why are so few taking advantage? Because you and your brethren have been programmed to sock away money blindly into a 401K or IRA managed by some distant stranger who is making your investment decisions for you. I find that a frightening option, especially since stocks tend to have much bigger drops than housing in times of despair. I've heard of many stocks dropping to $1 from $100 or more a share, but I've yet to hear of any real estate that was worth $100,000 at one time dropping to $1,000. That's why I think if the doomsdayers are correct about another downturn, the stock and commodity markets will take a much bigger hit than real estate, and those 401Ks could end up in 201K territory again. An alternative strategy is investing in home ownership in lieu of your 401K. We'll break down a plausible scenario below. Benefits include: A. You get to LIVE a better life, in better living quarters - EVERY DAY - NOW; B. Unlike the 401K, the profits you receive when selling your owner-occupied home are TAX-FREE (after living in the home for 2 years); C. Home ownership reduces your taxes. On a $200K home purchase, financing $190K, at 5% interest, you'll deduct $9,436 in interest expenses, and $5,000 in property taxes (based on 2.5% rate at $200K tax assessment) annually. If you're in the 28.5% tax rate, that totals $4,114.26 in annual additional after-tax dollars you'll keep; D. After 5 years of payments, instead of owing $190,000, you'll owe $174,181; E. If you buy your $200K home at 10% less than market value, it's worth $220K at purchase, instead of the $200K you paid; F. If your home averages 3% appreciation for 5 years, the home would be worth, in 5 years, $255,040 (based on a $220K starting valuation); G. Let's suppose you put $500 a month into your monthly housing payments, instead of your 401K, or $30,000 over 5 years; 1. $30,000 invested monthly over 5 years in your 401K with an annual 5% return would total $34,788 before taxes at the end of 5 years, or $24,873 after taxes based on the 28.5% tax bracket. 2. $30,000 invested in the your home purchase over 5 years - plus the down payment of $10,000 and closing costs of $7,500 (estimated) equals an investment of $47,500, plus a roughly $1,200 monthly expenditure on housing. 3. Now let's say you sell the home after 5 years for the $255K price and owe $174K. Taking out Realtor commissions and closing costs, you're left with $63,295 tax-free. Would you rather have $34,788 stuck in a 401K you'll have to pay taxes on, or $63,295 tax-free that you can use or invest with now? Seems like a no-brainer to me.Thu, 07 Jul 2011 22:54:40 EDTblogby Amy Fontinelle Tuesday, November 16, 2010 A credit score is a number that lenders use to determine the risk of lending money to a given borrower. Credit card companies, auto dealerships and mortgage bankers are three common examples of types of lenders that will check your credit score before deciding how much they are willing to lend you and at what interest rate. Insurance companies, landlords and employers may also look at your credit score to see how financially responsible you are before issuing an insurance policy, renting out an apartment or giving you a job. In this article, we'll explore the five biggest things that affect your score: what they are, how they affect your credit, and what it all means when you got to apply for a loan. Credit Basics Your credit score shows whether you have a history of financial stability and responsible credit management. It can range from 300 to 850, but the higher the score, the better. Three credit agencies - Experian, Equifax and TransUnion - compile credit scores (also known as FICO scores) based on the information in your credit file. Each agency will report a slightly different score, but they should all paint a similar picture of your credit history. Payment History - 35% The most important component of your credit score looks at whether you can be trusted to repay money that is lent to you. This component of your score considers the following factors: • Have you paid your bills on time for each and every account on your credit report? Paying bills late has a negative effect on your score. • If you've paid late, how late were you - 30 days, 60 days, or 90+ days? The later you are, the worse it is for your score. • Have any of your accounts gone to collections? This is a red flag to potential lenders that you might not pay them back. • Do you have any charge offs, debt settlements, bankruptcies, foreclosures, suits, wage attachments, liens or judgments against you? These are some of the worst things to have on your credit report from a lender's perspective. Amounts Owed - 30% The second-most important component of your credit score is how much you owe. It looks at the following factors: • How much of your total available credit have you used? Less is better, but owing a little bit can be better than owing nothing at all because lenders want to see that if you borrow money, you are responsible and financially stable enough to pay it back. • How much do you owe on specific types of accounts, such as a mortgage, auto loans, credit cards and installment accounts? Credit scoring software likes to see that you have a mix of different types of credit and that you manage them all responsibly. • How much do you owe in total, and how much do you owe compared to the original amount on installment accounts? Again, less is better. Length of Credit History - 15% Your credit score also takes into account how long you have been using credit. How many years have you been using credit for? How old is your oldest account, and what is the average age of all your accounts? A long history is helpful (if it's not marred by late payments and other negative items), but a short history can be fine too as long as you've made your payments on time and don't owe too much. New Credit - 10% Your FICO score considers how many new accounts you have. It looks at how many new accounts you have applied for recently and when the last time you opened a new account was. The score assumes that if you've opened several new accounts recently, you could be a greater credit risk; people tend to open new accounts when they are experiencing cash flow problems or planning to take on lots of new debt. For example, when you apply for a mortgage, the lender will look at your total existing monthly debt obligations as part of determining how much mortgage you can afford. If you have recently opened several new credit cards, this might indicate that you are planning to make a bunch of purchases on credit in the near future, meaning that you might not be able to afford the monthly mortgage payment the lender has estimated you are capable of making. Lenders can't determine what to lend you based on something you might do, but they can use your credit score to gauge how much of a credit risk you might be. Types of Credit In Use - 10% The final thing the FICO formula considers in determining your credit score is whether you have a mix of different types of credit, such as credit cards, store accounts, installment loans and mortgages. It also looks at how many total accounts you have. Since this is a small component of your score, don't worry if you don't have accounts in each of these categories, and don't open new accounts just to increase your mix of credit types. What Isn't In Your Score The following information about you is not reported to credit bureaus and is not reflected in your credit score: • Marital status • Age • Receipt of public assistance • Salary • Occupation • Employment history • Rental agreements • Participation in a credit counseling program What It All Means When You Apply for a Loan Following the guidelines below will help you maintain a good score or improve your credit score: • Watch your credit utilization ratio. Keep credit card balances below 15-25% of your total available credit. • Pay your accounts on time, and if you have to be late, don't be more than 30 days late. • Don't open lots of new accounts all at once • Check your credit score about six months in advance if you plan to make a major purchase that will require you to take out a loan, like buying a house or a car. This will give you time to correct any possible errors and, if necessary, improve your score. • If you have a bad credit score and lots of flaws in your credit history, don't despair. Just start making better choices and you'll see gradual improvements in your score as the negative items in your history become older. The Bottom Line While your credit score is extremely important in getting approved for loans and getting the best interest rates available, you don't need to obsess over the scoring guidelines to have the kind of score that lenders want to see. In general, if you manage your credit responsibly, your score will shine.Tue, 16 Nov 2010 20:14:47 ESTarticlesHow a Short Sale is Handled from Listing to Bank Approval By Elizabeth Weintraub, About.com Guide The short sale process is still a mystery to many people, even after all these years. Lots of buyer's agents are confused; puzzled buyers are looking for direction, and not every short sale listing agent knows how to do a short sale. The Basics of a Short Sale Banks grant short sales for 2 reasons: the seller has a hardship, and the seller owes more on the mortgage than the home is worth. A few examples of a hardship are: •Unemployment / reduced income •Divorce •Medical emergency •Job transfer out of town •Bankruptcy •Death The seller will need to prepare a financial package for submission to the short sale bank. Each bank has its own guidelines but -- with the exception of Wachovia, which is the best short sale bank in the world -- the basic procedure is similar from bank to bank. The seller's short sale package will most likely consist of: •Letter of authorization, which lets your agent speak to the bank. •HUD-1 or preliminary net sheet •Completed financial statement •Seller's hardship letter •2 years of tax returns •2 years of W-2s •Recent payroll stubs •Last 2 months of bank statements •Comparative market analysis or list of recent comparable sales Writing the Short Sale Offer and Submitting to the Bank Before a buyer writes a short sale offer, a buyer should ask his or her agent for a list of comparable sales. Banks are not in the business of giving away a home at rock-bottom pricing. The bank will want to receive somewhat close to market value. The short sale price may have little bearing on market value and may, in fact, be priced below the comparable sales to encourage multiple offers. After the seller accepts the offer, the listing agent will send the following items to the bank: •Listing agreement •Executed purchase offer •Buyer's preapproval letter and copy of earnest money check •Seller's short sale package If the package is incomplete, the short sale process will be delayed. In this event, the bank might even shred the package. The Short Sale Process at the Bank Buyers may wait a very long time to get a response from the bank. It is imperative for the listing agent to regularly call the bank and keep careful notes of the short sale process. Buyers may get so tired of waiting for short sale approval that they may feel the need to threaten to cancel if they don't get an answer within a specified time period. That type of attitude is self-defeating and will not speed up the short sale process. If buyers are the type with little patience, perhaps a short sale is not for them. Following is a typical short sale process at the bank: •Bank acknowledges receipt of the file. This can take 10 days to a month. •A negotiator is assigned. This can take 30 to 60 days. •A BPO is ordered. The bank probably will refuse to share the results of the BPO. •A second negotiator may be assigned. This can take another 30 days. •The file is sent for review or to the PSA. This can take 2 weeks to 30 days. •The bank may then request that all parties sign an Arm's-Length Affidavit. •The bank issues a short sale approval letter. •The buyer cancels. I threw in that last line because sometimes I have to sell my Sacramento short sales 3 or 4 times before a buyer sticks with the transaction. Buyers get angry and annoyed because the short sale process can be so lengthy that they sometimes cancel without telling anybody. Some short sales get approval in 6 to 8 weeks. Others take 90 to 120 days, on average. Tip: Generally the listing agent has some idea of when the file is sent for final review. At that point, buyers may want to start the loan process so they've got a head start in case the bank gives 2 weeks to close.Tue, 16 Nov 2010 17:51:05 ESTarticlesCongratulations on moving to a new home! You’re probably a little worn out from the process but as you know, you’re not done quite yet. There are still tasks that need to be done so you can completely settle in. To help you remember all of them, we’ve provided the following checklist: Moving to a New Home Checklist Moving Day •Make sure each of your utility services are on and working properly. •Confirm that your old utilities have been shut off. •Make sure your phone calls are being forwarded from your old number. •Inspect your appliances, computers and electronic equipment as you set them up, so you can make sure nothing was damaged or lost during the move. This would also be a good time to hook up the Internet connection to all relevant equipment so you can further ensure that everything is working properly. Call your Internet service provider right away if the connection isn’t working. And if the moving truck driver is still there, mention any damaged or missing components and find out the procedure for making a claim. •If you have wood or tile flooring, place rubber or plastic “coasters” under the legs of major furniture pieces to protect the floors. •Establish locations for the family first aid kit, any essential medications and fire extinguishers, and tell everyone in the family where they are. Within a Few Days of Moving to a New Home •Make sure your mail is being forwarded from your old home and that everyone has been notified of your new address. •If you don’t have one already, create a file with all receipts and other documentation related to your move. File it where you keep other important financial records so you’ll have easy access to the receipts at tax time. •Register your children for school as quickly as possible. This will help everyone get back into a beneficial routine. •You might want to order subscriptions to the local newspaper and community magazines so you can get to know your new surroundings quicker. Within Two Weeks of Moving to a New Home •Find the main circuit breaker box and make sure that each breaker is labeled correctly. •If you’ve moved out of your old neighborhood, register to vote in your new location. •Change the address on your old driver’s license if you’ve moved locally or get a new license if you’ve moved out of state. •Get new vehicle license plates, if necessary. •Introduce yourself to your new neighbors and trade phone numbers, so you can contact each other easily in case there’s an emergency. •Get a library card for everyone in the family. We hope you find this moving to a new home checklist helpful and that you enjoy your new home!Tue, 26 Oct 2010 14:53:19 EDTarticlesMoving to a smaller house can be a big adjustment — as well as quite a bit of work. But it can also be a freeing experience if you allow it to be. It helps to recognize that downsizing isn’t like any other move. It requires letting go of a lot of possessions or at least putting them in storage where they won’t be seen for a while. Once you’ve embraced that fact, following the tips below should take you the rest of the way toward making moving to a smaller house a happy experience: •Begin your sorting in storage areas, the basement, the attic and closets where you keep items you rarely or never use. It may be easier to get rid of these items, which will get you in the groove of offloading items you don’t need. •It will probably be clear to you that some items can be given away, donated, sold, etc.; but others might not be as obvious. So when you find yourself struggling to decide, it can help to ask yourself when you used it last. If it’s been a long while or if you have another item that will serve the same task, you should let it go. •Depending on just how much you’re downsizing after moving to a smaller house, items having sentimental value should be given priority. If your new home just won’t allow for too many of these, consider giving them to family or friends you know will appreciate them or putting them in storage to give to children when they grow up. •Pack items that you want to go to friends, family or charity right away and seal the boxes. This will reduce the chance that you’ll change your mind about keeping them. As soon as you have enough boxes gathered, give them to the intended recipients so they’ll be out of your sight. •If you have items that need repair, be brutally honest with yourself about whether you will ever actually have them fixed. If not, then you might as well get rid of them now. The same goes for anything that would cost too much to fix. •If you can’t foresee an item being truly useful after moving to a smaller house, get rid of it. •Be patient with yourself, or if you’re helping an older relative move into a smaller home, be patient with them. Moving can be a huge transition even under the best of circumstances. When compounded by having to give up treasured possessions, it can be traumatic. So be prepared for any combination of the emotions that come with major life transitions: joy, sadness, anger, frustration and many others. All of them are normal under the circumstances. We wish you the best of luck as you go through the process of moving to a smaller house and hope you’ve found these packing tips for moving helpful.Tue, 26 Oct 2010 14:38:37 EDTarticlesMoving can be an expensive proposition, especially if you have a large home. Fortunately, though, these days there are options that allow you to reduce moving costs. They generally involve having to do more of the work yourself, but some recent moving industry innovations allow that to be done in ways that aren’t too burdensome. Now that self pack moving companies that offer storage “pods” have become so popular, you have the option to get some of the benefits of hiring a full service moving company while you save money. You have to buy your own moving supplies and pack everything yourself but once you load the pod, the rest of the move is out of your hands. It’s an option that gives you both savings and convenience. Whether you use a full service moving company, one of the many self pack moving companies out there or just rent or borrow a truck and move yourself, here are some other ways you can save money when you move: •Book early Starting early will give you the broadest range of options when booking a truck, a self pack moving company or a full service moving company, which will give you more opportunities to find a good deal. •Book round-trip instead of one-way You can often find special deals on round-trip moving truck rentals, so there’s the potential for savings if you get a trustworthy friend or family member to come with you and then return the truck. •Move during the week instead of on the weekend Rental trucks and moving services are more likely to be booked up on the weekends, so you can often find a better deal if you move during the week. •Share the cost Some moving truck rental companies have message boards that allow you to connect with college students or military personnel who are also moving, so you can share expenses. •Get used moving supplies While you’re at the grocery store, keep in mind that plastic grocery bags make great packing material. It takes a lot of bags to equal other packing materials, though, so begin collecting them early and/or ask the store manager to give you bags they have already been earmarked for recycling. You can also use bed linens and towels for padding, along with newspaper. Just don’t use the newspaper directly against glassware, ceramics or anything collectible, because the ink can rub off.Tue, 26 Oct 2010 14:37:33 EDTarticlesThere are certain things that we discover are just an illusion as we grow up: Santa Claus, the Easter Bunny and the Fountain of Youth are a few. However, much like Big Foot, one myth that persists well into adulthood, is the perfect credit score. Some swear they've seen it, others think it's impossible. "Never in my life have I met anyone with an 850 credit score," Bruce McClary of Clearpoint Credit Counseling Solutions, who has worked in the credit industry for years, tells MainStreet. According to FICO, the company that designed our current credit model, these overachievers are out there. Craig Watts, senior manager for Public Relations for FICO, tells MainStreet that while most people score in the middle-to-low 700s on their credit scale, less than 1% of the U.S. population (about 1 million people) do, in fact, net a full score of 850. "They tend to be more conservative and a little older," Watts explains. He adds that these individuals also tend be rather humble, which may explain the near mythic status they have inadvertently achieved. "We don't get too many of them in our forums," he admits. "They aren't the type of people who stand up on a bus and tell everyone they scored an 850." People who don't share their score aren't likely to share their secrets for attaining it either. Which is unfortunate, considering that the credit elite obtain the lowest annual percentage rates, get the best credit card rewards programs and qualify more readily for large loans. "It's a noble goal to try to achieve," McClary says. However, he explains that you don't need to reach perfection to be considered among the credit elite. "In reality, you don't have to have an 850," says John Ulzheimer, a former FICO employee now with Credit.com. Those with a FICO score above 760, he says, are typically privy to the same benefits as those with perfect credit. Of course, a score that high isn't easy to achieve either. To reach the top tier you have to master not just the basics — maintaining positive payment history and a low debt to credit ratio, but you must pay attention to the details as well. In an effort to help those with lofty credit aspirations, MainStreet has put together a profile of what these credit superstars look like. They Have a Long and Impressive Payment History and a Clean Record The bulk of your credit score is determined by your payment history and the amount of debt you may or may not have currently on file. Unsurprisingly, those with perfect credit scores use credit regularly while paying it off on time, every time. They also have a squeaky clean record. Ulzheimer explains that the credit elite have no debt to speak of. "No liens, no bank repossessions, no settlements," he says. "Nothing." They Maintain a Diverse Set of Accounts According McClary, credit lines fall into two major categories. Installment accounts are closed-ended and require consumers to pay a fixed amount each month until the entire balance has been depleted. These typically include mortgages or car loans. Revolving accounts, on the other hand, limit the line of credit, but have balances that fluctuate. These essentially are the accounts tied to the credit cards in your wallet. Top credit scorers have a careful balance of both accounts on record. "They'll have a mortgage, a car loan and a few credit cards on file," McClary explains. They Have a "Well-Aged" Credit Report When I pulled my own credit report a few weeks ago, I was surprised to learn that my score, though quite good, still paled in comparison to my financial mentors, good old mom and dad. The truth is, unless they should both decide to stop managing their credit so meticulously, I stand little to no chance of ever surpassing them. "One advantage to being older is that you tend to have a longer credit history," McClary says. Keep in mind, though, that it's not your age, but the age of your oldest credit account on file that influences your overall score. As such, you may want to keep open that store charge card you opened up on your 21st birthday. They Have a Very Limited Number of Credit Inquiries on Record On the other hand, those without a store charge card shouldn't simply open one frivolously. While having large number of credit card inquires on file won't dramatically decrease your score, it can keep you from joining the credit elite, especially if several inquiries are recorded over a short period of time. This is why Ulzheimer advises that you refrain from opening up a litany of store accounts during the holiday season, no matter what type of discount the retailer is offering as an incentive to do so. "Applying for credit organically as you need it is fine," Ulzheimer says, before cautioning "never use your credit score to get a 10% discount at the mall."Tue, 19 Oct 2010 13:16:52 EDTarticlesThe environment for home sales becomes more difficult with each passing month. Some estimates put 11 million mortgages, about 20% of the U.S. total, underwater, meaning that homeowners owe their banks more than the underlying properties are worth. Home repossessions reached more than 100,000 for the first time in September. Rising foreclosure rates continue to further depress housing prices. The federal government let its tax benefit for homeowners expire in April and has not renewed it since them. The program did boost sales earlier this year. Shoppers must now face a market without the credit in which many home prices continue to fall. The clamor over flawed foreclosure paperwork and robo-signers could further chill the housing market. People who might buy have bought a home in foreclosure will now worry about obtaining proper documentation and effective transfer of title. 24/7 Wall St. spoke with experts at real estate research firms Zillow.com and RealtyTrac to find the best way to sell a home. We also interviewed management from the National Association of Realtors, a number of real estate brokers, bank managers and elected officials in affluent communities. What emerged from these conversations and our research is the following: successful home sellers often do the same small number of things correctly. Often, these tactics are the difference between finding a buyer and not. 1. Pick the Best Broker Many people who decide to sell contact a real estate brokerage with a sterling reputation or go to one that has the largest number of listings. Frequently, when potential sellers call these firms, they are turned over to the first available broker in the office. That person is often not the best representative. As a matter of fact, what is a successful broker doing in the office anyway? There are a small number of brokers in most markets who have a better track record than their peers. Most of them have been brokers for a long time and did not lose their jobs when the housing bubble collapsed. 2. Get an Appraisal Sellers should obtain an appraisal for their home before they put it on the market. One of the major reasons house sales fall apart is that the bank assesses the home for less than the buyer has agreed to pay. For example, a buyer and seller agree on a price of say $250,000. Then the buyer goes to his bank to get a mortgage. But, the bank appraises the house for $200,000. Now, the buyer has to put up more money. Sellers who get their own appraisals get a realistic idea of what price a bank would value a house at before they enter into a sale. Most appraisers already do some work for banks. An appraisal often tells a seller what a "safe" price is. And an appraisal's average cost is only about $200. 3. Get the Right "Comp" Sellers must make sure that foreclosures in their area are included in the "comps" the Realtor gives them. Traditionally, a broker will give a seller a list of similar properties in the market and that information is part of what is used to set a price. What brokers do not always do is put the price of any foreclosed properties that are comparable into the calculation. A typical foreclosed home sells for 25% to 30% less than similar inventory in the same area. If sellers don't take that into consideration, their home will not be priced competitively and they put themselves at a disadvantage. Sellers wind up slashing prices after their overvalued properties are on the market for several months without success. 4. Tax Assessment Low property taxes are critical to finding buyers. Property taxes in most cities, towns and counties have gone up for years as home values appreciated. This revenue is used to run schools and other local services. However, now home values have dropped sharply, and the appraisals by local authorities on which taxes are based are too high. Many cities have a process for homeowners to request lower appraisals, and as a consequence obtain a reduced property tax. Some states even have a board of appeals for homeowners who do not think they were treated fairly. One way for people to get local authorities to cut the tax assessment of their home is to put it on the market at below the appraised price. If the home does not sell for several months, they can present empirical evidence of the lower value. A home assessed for $300,000 that goes on the market for $275,000, but does not sell for a year, is probably not worth $300,000. 5. Conserve Utilities Turn the lights off! Most buyers ask for utility bills. "Energy wasters" who sell a home will rue the times they forgot to turn off lights, turn down the air conditioner or left the TV on all day. It would be ill-advised to fake the amount of energy being used by simply living in the dark and cutting utility costs to nearly zero. However, careful and prudent use of energy can cut bills by enough so that a buyer does not have sticker shock about what it costs to maintain electricity, gas or oil to run a house. 6. Sell "Green" Not very many homes are actually built with environmentally friendly material or heated by solar panels or wind. But those that are have a special appeal to the crowd that buys green cars such as the Prius. A seller may have one of only a few "green" homes in their town or city. That may make it highly desirable to many shoppers. 7. Curb Appeal This item appears on most lists, and many sellers don't bother to take the advice to prune the hedges or clean the gutters. But it is even more complex than that. Walk to the road on which your home is located. Now walk toward the house. What does a buyer see for the first time? Most sellers never bother to look at their homes through a buyer's eyes. Do the shingles need a paint job? Are the shutters looking shoddy? "Love at first sight" is no less rare with homes than with people. 8. Everything Is Negotiable Negotiate the fee with the broker. The fee paid to a Realtor for selling a home is traditionally 6%. Sellers often believe that they can get that down to 5% or even 4%. But, in a market where brokers are desperate for business, pressing for 3% or even 2% may work. Whatever the savings are, they can materially affect how much a seller can drop the price of his home and still walk away with a profit. 9. Get an Inspection Sellers should do some of the inspection work and testing before their home goes on the market. Inspectors for buyers are often aggressive when they report what is "wrong" with a home to their clients. For as little as $250, an inspector will go through your house and tell you what the inspector is likely to flag such as a roof leak or old, energy-wasting windows. That gives the seller a chance to fix the problem for less than the buyer may want to lower the price by, or at least know the items that a buyer will use to negotiate down the price. 10. Hire a "Stager" For as little at $200, you can hire someone who can make your home look better by moving pictures, furniture, lights and addressing problems that may make the home show poorly. These people are cousins to the men and women who "fix" expensive homes before magazines come in to photograph them for stories. "Stagers" have lists of tricks that few Realtors and almost no homeowners know. The "better" your home looks, the more appealing it will be to potential buyers. 11. Fix It First Sell a house that does not need any work. In a market in which people count every penny and worry about job security, fewer buyers want homes that are "fixer uppers" that require work that could cost thousands or even tens of thousands of dollars to address. These days, a buyer choosing between two homes will most likely take the one that needs the least work. It may cost some money to get your home to the point where a buyer can walk in and do almost no work. However, it may be the difference between selling a home and having it languish on the market.Tue, 19 Oct 2010 12:50:27 EDTarticles