Watch the naysayers when it comes to real estate

The media is saying that the market is slow, and people should wait. Why? Here's the problem with their theory:

1. How do you know how low it will go? (boy, that sounded like Dr. Seuss!) You will only know when the market picks up, and prices are not declining. How long does it take for this information to get to you in the media? At least a month. They wait for statistics from the NAR, and those reports are created monthly. So let's say you want to buy at a low point. By only looking at the media, you will not get in at the lowest point----you will only hear that the market is picking up, and you have missed it.

2. Instead of going to the second source, why not use the source they use? A qualified realtor. Don't ask just one. Interview three of them. We all have statistics, and can provide actual numbers to help you make your decision.

3. Don't just consider the home prices. Look to the interest rates as well. Even if the prices continued to drop and the interest rate rose, you may not achieve a great bargain waiting. This week, Freddie Mac reported that the interest rate for a 30-year fixed-rate mortgage averaged 6.17%, the first decline since early March. At this time, the rate is low because inflation is low in most areas, except in the area of energy.

4. Have you considered your own timing? How long are you planning on staying in an area? Because the market is going back to normal at this time, you don't want to hold the property a short time. You want to keep it for a while so you can see a good return on your investment.

How foreclosures affect your neighborhood

I had a buyer ask me the other day about a problem in their current neighborhood. The house next door is going into foreclosure. Unfortunately, the husband and wife divorced, the wife got the house, and she could not keep up the payments.

Foreclosures are more of a concern in these recent months, due to sub prime loans. My mother said that in our hometown paper in Georgia there are pages of foreclosure notices. The big question: how does it affect your home's value?

I did some research to see what the experts say. The response: the price of your home may decrease by 1.5% if there is a foreclosure in your neighborhood.

How do you decrease the risk? If you are friends with your neighbor, and they express concern about making their house payment, encourage them to seek out a Realtor. Make sure they are trained on how to handle families in this crisis. Ask them if they are familiar with "short sales." If they are not familiar with the term, ask them to refer you to someone in their brokerage that is familiar with them. I can provide assistance in locating someone who can help them.

When this problem strikes, it is easy for someone to want to stick their head in the sand. This is not the time for that particular action. Quick action must be taken, to insure the homeowner, the bank, and the neighborhood is protected.

The Virginia Tech tragedy

It is hard to write about real estate when the country is greiving over what has happened at Virginia Tech. My thoughts and prayers go out to the families of the sons, daughters, brothers, sisters, fathers, and mothers that were lost yesterday. May God provide you peace that surpasses all understanding at this time.

6 Open House Tips

Thinking of having an open house? Here are some tips to prepare:

1. This may seem like a no-brainer, but I need to share it: make sure the house is very clean.

2. Turn on all the lights and open the curtains/blinds. People like an open, airy, house.

3. Take the pets to a friend's house, or board them.

4. Turn on soft classical music.

5. Take down all personal pictures. People will look at the pictures, and not your house.

6. If you have too much stuff in your house, box it up and store it.

Weekly mortgage rate quote

Today is Tuesday, the date I receive a weekly quote update from my friend Mickey Carlton, a mortgage specialist (you can learn more about him on my website: audreybutlerhomes.com).

This week, he says:

"Mortgage interest rates have been pushed higher by a combination of tension over the Iranian/British hostage issue, shortages in oil refinery capacity and last week's red-hot employment figures as released by the Labor Department. Borrowers are now paying 6.25% to 6.625% for thirty-year fixed rate mortgages without points. Specific rates are determined by loan size and the borrower's creditworthiness."

Thanks, Mickey!

A mortgage that sounds to good to be true?

If your inbox is anything like mine, I get about 5 requests a day for a mortgage or to refinance my home. Also, almost every website I visit has an ad for a loan product that says I can buy a $500,000 house for about $10.00 a month.....OK, it's not $10, but it might as well say that for the chance you have of getting that kind of deal. I don't care if you have an 800 credit score (the highest available)----you'll end up paying for these incredible offers in the end.

Don't jeopardize your credit---get these offers checked out. You can contact me at audrey@audreybutlerhomes.com, or contact one of the loan officers I have listed on my website. If you don't feel comfortable contacting one of us, you can educate yourself at:

http://www.federalreserve.gov/consumers.htm. They offer pamphlets explaining all the terms, and offering sound advice on what to expect from different loan packages.

Know the risks before you sign the bottom line!

Interested in cows, jazz or Shakespeare?

Looking for something different to do? Besides the theme parks in Orlando, there are other events to check out this spring.

In April, the Orlando-UCF Shakespeare festival is held at the one of the downtown theaters in Orlando. A mix of professional actors and students from the University of Florida, the troop performs a play written by the Bard. The shows are incredibly affordable-the most expensive ticket is $35.00, and there are special discount shows.

For entertainment that has been around Orlando before Mickey Mouse, attend the Central Florida Fair. Held in the last weeks of April each year, they boast 100 rides on the midway, food and craft competitions, and the livestock show. Their website address: www.centralfloridafair.com.

Just south of Orlando in Kissimmee, a Jazz Fest is held in every year in April. It features professional and amateur jazz performers at Lakefront Park.

Enjoy!

Buying a foreclosure is harder than it sounds

With a lot of foreclosures on the market, investing in some of them can seem like picking up found money on the ground. It's not as easy at it sounds. Not only will your expenses include the cost of the property, but repairs and holding costs.

The key is to buy at 30% below the after-repaired market value, according to Daryl White, a foreclosure investor in California. Never rely on appreciation to make a foreclosure deal work.

In Orlando, property is on the market for an average of 90 days----remember that you should figure in the costs of maintaining the property before it sells.

How to get rid of Spot's spots

Have a bad pet odor and trying to sell your house? This is one of the first things buyers notice when they walk into a home. It has to be eliminated to sell. Some suggestions:

1. Use a fluorescent black light to find the spots. They sell them at pet stores.

2. Remove the spots with a cleaner, and after it dries, with a odor neutralizer. Never use ammonia, because it can trigger more pet accidents.

3. Sarah Casey Newman from the St. Louis Post-Dispatch suggests 3 products---Bramton's Oxy Solution Pet Stain and Odor Destroyer (be sure to test it first) for cleaning; Safest disinfectant is Chlorhexidine, which is sold under such names as Novasan, Chlorasan, and Chlorhex by veterinarians and medical-supply outlets for deep cleaning. A temporary neutralizer: Fresh Wave.

4. If the odor is really bad, or there are a lot of spots, the carpet should be replaced or new wood flooring installed.

Remodeling an older home

How can you update an older home, and see some return in your investment when you go to sell it?

Eric Bramlett, with Broker Agent News gave these suggestions:

1. Gut the attic and raise the ceiling in the living room. Older homes have 8 foot ceilings, and it is one of the first things buyers notice.

2. Knock down the walls. Not the load bearing walls, but if you can open up the downstairs, it will flow better.

3. Overhaul the kitchen and/or master bathroom. Is one of the best returns.

4. If the house has one bathroom, add a master bathroom. Adds value, and convenience. Make sure there are 2 sinks, if possible.