January 2010

Happy New Year!

I hope your 2010 is off to a great start. Last year was a very challenging time for many of us, to say the least. But hey ... we're still kicking, right? And as long as we have life, we have hope. And as long as we have hope and faith, ANYTHING IS POSSIBLE! So, let's make 2010 our best year yet! As always, I appreciate all of your support and remember, if you ever have any real estate questions or concerns, professional assistance is just a call or click away.

CLEAN UP YOUR CREDIT IN 2010

If you’re thinking of buying a house within the next twelve months, why not make your resolution one that will improve your financial situation and position you as an ideal home buyer? Your credit score is key. The lending world has changed considerably since the boom days and so has the credit score required to qualify for a loan.

A few years ago, your credit score could have been around 620 to get a lender's best rate on a loan. Now, lenders are looking at a rate of 760 at the very least to get a good interest rate.

First-time homebuyers fare much better, needing a credit score of at least 660 unless they try for an FHA loan. To be a “good” buyer in the eyes of lenders, you need to watch the state of your credit score. Here are several tips to maintain and improve upon your current number.

Get copies of your credit report--then make sure the information is correct. Go to AnnualCreditReport.com - the only authorized online source for a free credit report. Under federal law, you can get a free report from each of the three national credit reporting companies every 12 months.
Pay your bills on time. One of the most important and easiest things you can do to improve your credit score is pay your bills by the due date. You can set up automatic payments from your bank account to help you pay on time, but be sure you have enough money in your account to avoid overdraft fees.
Understand how your credit score is determined. Do you pay your bills on time? The answer to this question is very important. If you have paid bills late, have had an account referred to a collection agency or have ever declared bankruptcy, this history will show up in your credit report. Know your outstanding debt. Many scoring models compare the amount of debt you have against your credit limits. If the amount you owe is close to your credit limit, it is likely to have a negative effect on your score.
How long is your credit history? A short credit history may have a negative effect on your score, but a short history can be offset by other factors, such as timely payments and low balances. Have you applied for new credit recently? If you have applied for too many new accounts recently that may negatively affect your score. However, if you request a copy of your own credit report, or if creditors are monitoring your account or looking at credit reports to make prescreened credit offers, these inquiries about your credit history are not counted as applications for credit.
How many and what types of credit accounts do you have? Many credit-scoring modls consider this. A mix of installment loans and credit cards may improve your score. However, too many finance company accounts or credit cards might hurt your score. To learn more about credit scoring, see the Federal Trade Commission’s website, Facts for Consumers.
Beware of credit-repair scams. Sometimes doing it yourself is the best way to repair your credit. The Federal Trade Commission’s “Credit Repair: How to Help Yourself” explains how you can improve your creditworthiness and lists legitimate resources for low or no-cost help.
Source: http://www.federalreserve.gov/pubs/creditscore/default.htm
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LOCAL REAL ESTATE NEWS

Good news ... residential sales
are up over last
year according to statistics just released by the Ann Arbor Area Board of Realtors®. The 6% increase in single family residential sales and 63% increase in condo sales reflect the momentum of increased activity from the homebuyer tax credit incentives and low interest rates.

Another surge is expected in the spring as more home buyers take advantage of affordable housing conditions before the homebuyers tax credits expire. Buyers who have a contract in place to purchase a primary residence by April 30, 2010, will have until June 30, 2010, to finalize the transaction to qualify for the tax credit of up to $8,000 for first- time home buyers and $6,500 for repeat buyers.

In Washtenaw County, the average residential sales price rose for the third month in a row, to $178,059. This shows strong year-end activity after a very sluggish start to the year. Overall dollar volume was up 8% for the month of December, as compared to last year, which is yet another indicator of a strong year-end market.

TEN HIGH-IMPACT/LOW-COST REMODELING PROJECTS
Check out this list of budget-minded enhancements you can do to make your home stand out from your competition.

1. Tidy up kitchen cabinets. Potential buyers really do open kitchen cabinets and look inside.
2. Add or replace tile. By retiling very inexpensively, you make a room look cleaner and updated.
3. Add a breakfast bar. When a wall separates a kitchen from a family room, try cutting out an opening to create a breakfast bar. Add an oversized granite countertop to the cutout and put bar stools in front of it. Buyers will love this.

4. Install granite tile instead of a slab. Everybody is hot for granite kitchen counters, but that can be costly. Instead, put in 12-inch granite tiles and get the same high impact for a lot less money.
5. Freshen up a bathroom. Update with in a new medicine cabinet, light fixtures, faucet and vanity. Instead of replacing the tile, regrout it for a brand new look.
6. Freshen up the basement. Paint concrete walls in the basement with

waterproofing paint and then paint a top coat in a neutral color. You can also paint the basement floor for a fresh new look.
7. Add a room. Look for spaces that can be enclosed to create a extra bedroom. Close off a half-wall to an office area, add a door and voila ... another room. If you have a den with a dry bar, replace it with a closet creating another bedroom.

8.Spruce up cabinet fronts. Paint tired-looking cabinets and add new hardware.
9. Replace light fixtures in foyers, bath-rooms and kitchens. Replace overhead light fixtures provides a lot of pop for a little money.
10. Tech-up the garage. Try replacing the garage door opener with a remote touchpad entry system .