In other scenarios, a property investor buys and property and goes through a fix up process and completely blows up their budget by a factor of two or three times their original intent. So, now they may be faced with the situation of being “upside down”.

There’s only one thing that grates on me when it comes to TV Shows that feature house-flipping for profit; they never seem to tell the truth about the profitability picture

“What’s my home worth?” We’ve taken a different approach because what a home is worth not only includes a value estimate, with our reports you can also analyze local market activity and market strength. Value depends on more than just price. You need to understand

If you purchased a home in late 2004 through 2006, it may be time to appeal your taxes. Assessors base the valuation of your property on the current market pricing, or some percentage thereof, or the actual price that you purchased your home for as of a certain date. Values are going down in most parts of the country. If you do not proactively appeal those taxes, they will continue to go up, not down.

A recent survey conducted by the American Association for Retired Persons (AARP) revealed important information about the improvements seniors make to improve the livability of their homes. The fact is most people don’t want to leave their homes

During the housing boom, Calhoun said, "The demand from Wall Street (for mortgage-backed securities) was so intense that it encouraged subprime lenders to abandon reasonable qualifying standards, to forget about standard documentation requirements, and to ignore whether borrowers could actually afford the loan

We just got a call from a client who was doing research on a potential purchase of a single family home in Georgia and may have averted a risk. The property had a Market Risk Score of “B”

In light of some recent catastrophic events, reducing your risk and protecting your most important asset, your home, is becoming more and more important. As everyone knows, Southern California has experienced dreadful fires this week. Everyone feels terrible for the displaced people and the tragic loss of life, animals, personal and real property.

Getting top dollar for your home is nearly always on the mind of a seller. However, there are other factors to consider, such as motivation. Why are you selling? Are you moving and have to get to a job for which you were recently hired? Trying to get out of a cold climate? Trying to get out of the heat? Going to retire? Tired of a two-story home and want a single story? Bought a new home and are looking at making double payments

The real estate market is going down in many parts of the country. How far it will go is anyone’s guess. However, there are indicators that suggest when a market’s decline is beginning to decelerate or “bottom out” and that is usually a good time to buy a home.

We’re starting to see regular “downgrading” of mortgage-backed securities from ratings agencies like Standard and Poors and others. What does that mean? Simply put, it means their value is going down.

"Consumers can now go to the ICBA Web site, key in their zip code and find a community bank near them for ICBA National Community Bank Mortgage Week . Consumers will be able to find a community bank to visit and discuss the terms of their current or future mortgage", according to the ICBA.

What are you getting for the services of a real estate professional? The debate over how much a real estate brokerage gets paid for its services has gone one for 30 years that I am aware. Here’s the breakdown – high level; 3% goes to the selling brokerage, 3% to the buyer’s brokerage. Of each 3%, the broker shares some of that amount and the actual selling agent gets the rest. For simplicity’s sake, let’s assume each gets 50% of the 3% made by each brokerage.

This in from Inman News: "House Democrats on Monday introduced legislation that would require all mortgage loan originators to be licensed, and would create new restrictions on their activities -- including prohibitions on steering borrowers into loans that are "not in the consumer's interest."

FHA Secure is an interesting new angle that the current administration has introduced as a tool to help educate consumers on the topic of home financing. Years ago, the government introduced the Real Estate Settlement Procedures Act (RESPA) that was designed to be a tool to protect homebuyers against overpaying for the services they receive during a real estate transaction. Some of the fee examples are origination fees, escrow fees, title fees, credit reporting fees, document preparation fees and a myriad of other fees people pay to do their real estate business.

Please check with your insurance agent immediately to ensure you have proper fire (property and casualty) coverage on your home. We devote a lot of time on our website to articles and blogs that relate to real property since that’s our business. Preparing for the unexpected event, such as the current Southern California fires is essential to your future. We never know when such catastrophes will strike so if you have any doubts at all about your homeowner’s insurance coverage, call your insurance agent now!

“The Justice Department alleges in its lawsuit that the MLS rules "raise entry barriers for potential competitors by imposing burdensome prerequisites for membership; provide a means of identifying potentially aggressive competitors so they can be excluded from membership; stabilize the price of brokerage services through the prospect of price controls; deter the emergence of Internet-based brokerages; stabilize the price of, and reduce consumer options for, brokerage services by dictating the services that all brokers must provide; and discourage entry of potential competitors who raise funds through public ownership."

We just returned from the 94th Annual Mortgage Bankers Association Meeting in Boston. It was important for HomeSmart Reports to attend to try to gain an understanding of what’s going on in the mortgage lending space. It’s a lot of talk mainly, and no one is really taking the lead in terms of working out a strategy to stem the inertia in the mortgage lending arena.

It’s usually the buyer’s obligation to have a home inspection prior to purchase and hence, they bear the cost of it. It really is to everyone’s advantage that these things are done. Through this process, buyers gain peace of mind and a more complete understanding of any costs they may face as they occupy their new home. There aren’t many things worse than getting into a property you think is move-in ready, only to be shocked by a $5,000 repair bill for unseen conditions. Well, home inspectors catch most, if not all of them through a thorough examination of a home.

It’s time for real estate bloggers to unite and talk about the things they can do to make a difference. What is the difference? Well, it’s a lot of things. It’s saving money on taxes. It’s being sure that your home is properly insured and where you can get the best rates. How about sharing the best and worst things about Neighborhood Watch programs, what works and what doesn’t? I’ve got another good one; Homeowners Associations should share best practices! Why should all the everyday smart practices have to be re-learned and fought over by new associations, and gobble up countless hours of so many people by every new homeowners association? Shouldn’t HOA’s post what they believe to be best practices so that new HOA’s can get a quick start on the everyday business at hand?

Revered economist and recently retired Chairman of the U.S. Federal Reserve Bank, Alan Greenspan, recently spoke in the U.K and here was one of his excerpts about the mortgage plight in the U.S.; “Where we went wrong is in underestimating the market forces involved in how these loans were re-bundled for sale to investors. Ratings agencies overvalued these bundles. Investors scurried to the table, and the resulting lower rates enticed a lot of buyers who probably shouldn't have purchased a home to do so.”

Beware a new type of real estate fraud. The list price on the home is $600,000. The buyer comes in an offers $800,000, subject to the buyer obtaining a 100% financed transaction and also receiving a rebate of $100,000 from the seller at the close of escrow. The buyer, the seller, the appraiser and the broker (if one is involved) all know that something is wrong if this deal closes escrow. Who wins in the short-term? Well, the seller gets more money than they expected. The buyer winds up with more operating capital to cover the payment costs for a short period of time. The broker makes a bigger commission based on the sale value. The appraiser doesn't really gain at all, except sometimes they are forced to bow to the "powers that be" to deliver an $800,000 appraisal "or you won't get any more work from us".

Foreclosures can be a real bad deal! Unless you know BOTH the value of the property, and the local area risks and market conditions, you can “get your financial clock cleaned”! So, you need to do your research.

Well, we all knew that the fallout of nearly four years ungoverned real estate financing and high turn over rates would eventually come home to roost, didn’t we? So, it will be a political hot potato for the next 13 months as the presidential election heats up. Politicians on both sides of the aisle will be calling for reform, legislation will be passed that will take years to implement and longer to enforce. Meanwhile, what are we all going to do about it?

This isn’t a plug for insurance agents…it’s a plug for you. According to insurance industry information companies 58% of the homes in the U.S. are under-insured by an average of 22%. A lot of agents start you out with a low bid to win your business, but you may not be properly covered. The premiums typically get bumped up over time and that may help, but if you have a catastrophic loss you may not have enough insurance to cover your loss and re-build. Imagine being able to only re-build 75-80% of your home!

HomeSmart Reports told you two years ago, by way of the news media, that mortgage and real estate fraud was out there lurking, and that flipping was a risky proposition. We’re only bringing it up to re-emphasize the importance of doing research before you take part in the next big phase…the mop up of all the over zealous lending that occurred during the real estate rush from 2002 to mid-2006, before the money river began to dry up and equity began to erode. The mop up we refer to are the massive number of REO properties that are being carried by lenders that some of you out there are going to buy. Yes, it’s that huge number of non-interest earning assets that lenders need to dump.