Christmas gift suggestions:

To your enemy, forgiveness.
To an opponent, tolerance.
To a friend, your heart.
To a customer, service.
To all, charity.
To every child, a good example.
To yourself, respect.

Oren Arnold

Boost Your Home's Curb-Appeal in the Winter!

During summer months when gardens are in bloom and the sun is shining bright, curb appeal comes naturally to many homes. But when the autumn chill turns to winter cold and the sun sets earlier in the day, it becomes more difficult to create that inviting exterior look that grabs buyers from the curb.

Fortunately, it is possible to create striking winter curb appeal without expensive or complicated exterior changes, says Charlene Storozuk, a home stager and designer with Dezigner Digz in Burlington, Ontario—a city that averages 51 inches of snow per year. It just requires a little creativity.

She and other home-design experts offer these tips:

1. Add splashes of green and purple. Plants, grasses, and evergreens can liven up a home’s winter landscape. Experiment with tall grasses, such as fountain grasses, that survive harsh winters. And in late fall and early winter, plants from the cabbage family add a vibrant purple color. Make the front door the focal point with a large wreath adorned with a colorful ribbon. To finish the look, place large, colorful planters filled with evergreens beside the front door, suggests Elizabeth Lord, broker with Carolina Farms & Estates LLC in Rock Hill, S.C.

2. Give it seasonal sparkle. Transform an unused bird bath or fountain into a seasonal display by adding twigs with red berries. Or fill frost-resistant urns with twigs, winter greenery, and sparkly baubles (sold at most craft stores), Storozuk says. For extra sparkle, roll twigs in glitter and incorporate a gazing ball—a mirrored glass ball available in various colors—into the display.

3. Make the garden statuesque. Roman- or Greek-themed outdoor sculptures can add class and elegance to a garden in winter. Be sure to use frost-resistant statues so they don’t crack, Storozuk says. Place the statues strategically throughout the garden to draw buyers’ eyes around the outdoor space.

4. Light it bright. During the winter, it’s more likely that buyers will be viewing home after sunset. Use clear flood spotlights to focus on the home’s architectural features, Storozuk says. Keep exterior lighting fixtures at maximum wattage and clean them regularly. When snow covers the ground, Michele Thompson, broker-owner of White Fence Real Estate in Vevay, Ind., takes photos of listings at night with all of the interior lights on—the light bounces off the white snow to create a warm, inviting glow. For the best results, turn off the flash, and use a tripod to avoid blurring, she says.

5. Make the deck an extension of the house. Set up your outdoor tables and chairs just as you would in warmer months. “Home owners often cover their furniture and place lawn objects haphazardly on the deck,” says Kitty Schwartz, president and owner of Classic Home Staging in Katonah, N.Y. For added appeal, she adds a weatherproof cafe set with pillows that play off of interior accent colors. “Glancing out onto this type of vignette can make the indoor space feel larger and more interesting,” she says.

6. Create a photo display of sunnier days. Show buyers what the outside of the home looks like during other seasons by displaying some landscape photos in frames or using a digital photo frame with a slide show of images. “This will give a sense of what the property looks like at other times of year,” Storozuk says. If the home has a garden, make a list of what’s planted where. “Perennials can be expensive,” she says, “so treat them as a selling feature.”

By Melissa Dittmann Tracey as posted on Realtormag.com

Owners Recoup More with Exterior Home Projects

As part of the 2010-11 Remodeling Cost vs. Value Report, Realtors® recently rated exterior replacement projects among the most cost-effective home improvement projects, demonstrating that curb appeal remains one of the most important aspects of a home at resale time.

“This year’s Remodeling Cost vs. Value Report highlights the importance of exterior projects, which not only provide the most value, but also are among the least expensive improvements for a home,” said National Association of Realtors® President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “Since resale value can vary by region, it’s smart for home owners to work with a Realtor®through the remodeling and improvement process; they can provide insight into projects in their neighborhoods that will recoup the most when the owners are ready to sell.”

Nine of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. The steel entry door replacement remained the project that returned the most money, with an estimated 102.1 percent of cost recouped upon resale; it is also the only project in this year’s report that is expected to return more than the cost. The midrange garage door replacement, a new addition to the report this year, is expected to recoup 83.9 percent of costs. Both projects are small investments that cost little more than $1,200 each, on average. Realtors® identified these two replacements as projects that can significantly improve a home’s curb appeal.

“Curb appeal remains king – it’s the first thing potential buyers notice when looking for a home, and it also demonstrates pride of ownership,” said Phipps.

The 2010-11 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 13th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine.

Realtors® provided their insight into local markets and buyer home preferences within those markets. Overall, Realtors® estimated that home owners would recoup an average of 60 percent of their investment in 35 different improvement projects, down from an average of 63.8 percent last year. Remodeling projects, particularly higher cost upscale projects, have been losing resale value in recent years because of weak economic conditions.

According to the report, replacement projects usually outperform remodel and addition projects in resale value because they are among the least expensive and contribute to curb appeal. Various types of siding and window replacement projects were expected to return more than 70 percent of costs. Upscale fiber-cement siding replacement was judged by Realtors® the most cost effective among siding projects, recouping 80 percent of costs. Among the window replacement projects covered, upscale vinyl window replacements were expected to recoup the most, 72.6 percent upon resale. Another exterior project, a wood deck addition, tied with a minor kitchen remodel for the fourth most profitable project recouping an estimated 72.8 percent of costs.

The top interior projects for resale value included an attic bedroom and a basement remodel. Both add living space without extending the footprint of the house. An attic bedroom addition costs more than $51,000 and recoups an estimated 72.2 percent nationally upon resale; a basement remodel costs more than $64,000 and recoups an estimated 70 percent. Improvement projects that are expected to return the least are a midrange home office remodel, recouping an estimated 45.8 percent; a backup power generator, recouping 48.5 percent; and a sunroom addition, recouping 48.6 percent of costs.

Although most regions followed the national trends, the regions that consistently were estimated to return a higher percentage of remodeling costs upon resale were the Pacific region of Alaska, California, Hawaii, Oregon and Washington; the West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia.

The regions where Realtors® generally reported the lowest percentage of costs recouped were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island, and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), and Middle Atlantic (New York and Pennsylvania).

“It’s important to remember that the resale value of a particular improvement project depends on several factors,” said Phipps. “Things such as the home’s overall condition, availability and condition of surrounding properties, location and the regional economic climate contribute to an estimated resale value. That’s why it is imperative to work with a Realtor®who can provide insight and guidance into local market conditions whether you’re buying, selling or improving a home.”

Source: NAR

“ date which will live in infamy”

On Sunday morning, December 7, 1941, the American Army and Navy base in Pearl Harbor, Hawaii was attacked by the Imperial Japanese Navy. The attack came as a surprise to the American Army and Navy and lead to great losses of life and equipment. More than 2000 American citizens were killed and more than 1000 were injured. The Americans also lost a large proportion of their battle ships and nearly 200 aircraft that were stationed in the Pacific region. More than 60 Japanese servicemen were killed, injured or captured. The Japanese Navy also lost five midget submarines and 29 aircraft.

The Japanese military had hoped that the attack on Pearl Harbor would prevent the United States of America from increasing her influence in the Pacific. However, the events in Pearl Harbor actually led to the escalation of World War II. The day after the attack, the United States declared war on Japan and so entered World War II. President Franklin Roosevelt in a speech to Congress stated that the bombing of Pearl Harbor was “a date which will live in infamy”. Shortly afterwards, Germany also declared war on the United States. In the months that followed the attack, the slogan “Remember Pearl Harbor” swept the United States and radio stations repeatedly played a song of the same name.

In 1991, which marked the 50th anniversary of the attack on Pearl Harbor, the United States Congress established the Pearl Harbor Commemorative Medal. This is also known as the Pearl Harbor Survivor's Medal and can be awarded to any veteran of the United States military who were present in or around Pearl Harbor during the attack by the Japanese military. The medal can be awarded to civilians, who were killed or injured in the attack.

Make Those ‘Green’ Renovations NOW, Tax Credit Expiring Soon!

Time is ticking to complete home renovation projects if you want to cash in on a tax deduction that expires at the end of the year. Tax credits are available for home owners who do upgrades that help them save energy and reduce their utility bills such as with more energy-efficient windows and doors, insulation, and heating and cooling equipment.

You can qualify for up to $1,500 in tax credits when filing 2010 income tax returns. Home owner have until Dec. 31 to qualify for the tax credit.

Home owners can take advantage of the tax credit (Internal Revenue Code Section 25C) for efficiency upgrades made to existing homes, such as for certain types of insulation, windows, roofs, water heaters, heat pumps, furnaces and air conditioners. Tax credits are available for 30 percent of the cost up to $1,500 for 2009 and 2010.

Tax credits — also up to 30 percent of the cost of the qualifying products — are available for equipment using renewable energy, such as solar, geothermal, wind or fuel cells (under tax code section 25D). However, you have until the end of 2016 to take advantage of that tax credit program.

By Melissa Dittmann Tracey, REALTOR® Magazine

We are THANKFUL!

"Gratitude unlocks the fullness of life. It turns what we have into enough, and more. It turns denial into acceptance, chaos to order, confusion to clarity. It can turn a meal into a feast, a house into a home, a stranger into a friend. Gratitude makes sense of our past, brings peace for today and creates a vision for tomorrow."

Melody Beattie

New Trends in Home Upgrades

1. Hidden, Wall-mounted TV

Have your big screen TV with big style! Designers are choosing to hide a huge TV in the wall and cover it with a mirror or artwork so when you’re not watching it, you don't even know it’s there! Above the fireplace, it can be a framed mirror or piece of art, or you can mount it in the closet behind the mirror, hidden by a removable panel in the closet. TVs require proper ventilation, so this is NOT a do-it-yourself project.

2. Water Feature with Fire

Combine your fire pit with a fountain and create a fabulous feature for your back yard! It can be rectangular trough-like structure with broken glass in the middle where the fire shoots out, or circular. It can be freestanding, attached to a pool or a big ridge of fire in a stoned wall. As an added bonus, it’s remote control!

3. Pop-up Ventilation for the Kitchen

Vent hoods are necessary in the kitchen to combat smoke smells and cooking fumes, but they can be clunky as well as greasy and dirty. A pop-up hood vent on the other hand can be placed in an island or other countertop, as long as it has an underground vent to the outside. All you have to do is press a button and up it comes to suck all the smoke and fumes out of the air, then press another button and it vanishes!

4. Cooling Drawer

For an extra “cool” kitchen, opt for a cooling drawer! These drawers have several different temperature settings, so they’re great for soda, wine, ice cream or snacks for the kids. You can have any number of them scattered around the kitchen!

ELECTION DAY TOMORROW - GET OUT AND VOTE!

No man is good enough to govern another man without that other's consent. ~Abraham Lincoln

Don’t Forget Your Gutters!

The leaves are falling! Now is a great time to make sure your rain gutters are clear of debris. Doing the job yourself is easy and affordable with these tips:

1. Wear heavy work gloves to protect your hands from sharp metal that may be on the gutters.

2. Remove loose debris from the gutter using a small tool, such as a garden trowel, and scrub encrusted dirt with a stiff brush.

3. Power wash gutters with a hose to clear debris – just make sure you send it toward the drain outlet.

4. Make sure drainpipes are clear, if necessary use a plumber's auger to pull debris from the bottom of the drain.

Information source: AHS Newsletter

Current Trends in Dining Rooms

1. Take down a wall between the dining room and kitchen to make one large casual cooking, eating, and multi-purpose space.

2. Those who build today often go for a simpler floorplan opting for more casual eating and living areas, an open “greatroom” with a dining corner, or a smaller dining room with a lower ceiling for warmth and intimacy.

3. More and more we are seeing dining rooms that have become multipurpose spaces with bookshelves, wet bars, or built-in deska for a planning center.

4. Colors in the dining room can be bolder than other rooms, because of the infrequency of use, but just showcase one element with bold color like walls, furniture, the ceiling, or a ceiling fixture.

5. Hang a chandelier lower than usual to create intimacy. Use a round table which is more conducive to conversations.

U.S. urges lenders to vet foreclosures but keep process moving

Breaking News Alert: October 13, 2010 3:57:10 PM
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Federal regulators on Wednesday urged the nation’s lenders to verify that all paperwork filed as part of the foreclosure process is properly reviewed and to file new documents if problems are found. Regulators said that lenders should continue with foreclosures as quickly as possible if no problems are found.

Foreclosure Probes Launched

In an AP article by Alan Zibel posted on Yahoo.com just moments ago, it was announced that “officials in 50 states and the District of Columbia have launched a joint investigation into allegations that mortgage companies mishandled documents and broke laws in foreclosing on hundreds of thousands of homeowners.”

States' attorney generals and bank regulators will begin to examine whether mortgage company employees made false statements or prepared documents improperly.

This could mean that foreclosure proceedings across the nation could be subject to legal challenge, with the possibility that some foreclosures could be overturned. More than 2.5 million homes have been foreclosed since December 2007, according to RealtyTrac Inc.

Some banks have already halted questionable foreclosures, but others, including Citigroup Inc. and Wells Fargo have not stopped processing foreclosures, and have denied that they have done anything wrong.

Evidence will be reviewed that may show that legal documents were signed by mortgage co. employees with no knowledge of the information found in the documents. There is a possibility that many of these documents were signed without witness from a notary public, which violates most state laws.

Don't Miss The State Fair of Texas - Final week!

You don't want to miss out on attending the BEST STATE FAIR ever! The last day is Sunday, 10/17.

What could be better than strolling the historic fair grounds, eating a corny dog and some friend chocolate, then attending the special Tom Landry exhibit? You can take a ride on the Texas Star, try your luck at the games, and watch a spectacular light show! You even get to hear great concerts, shop for your next car, and check out the livestock!

It's hard to find a better way to spend a day with your family, so don't miss the 2010 State Fair of Texas!

Check out www.bigtex.com for more information.

Government Moves Toward Foreclosure Moratorium

Despite concerns about its impact, some legislators are pushing for a nationwide moratorium on foreclosure sales.

U.S. Rep. Edolphus Towns, a New York Democrat, who is chairman of the House Committee on Oversight and Government Reform, said the top 10 mortgage lenders should immediately suspend foreclosure proceedings in all states.

"The implications of ignoring the foreclosure problems are far too great to be ignored," he said Friday.

Other legislators are moving to revive cramdown legislation, which would give judges the power to reduce mortgage principal to market value. The controversial bill had passed the House but was stuck in the Senate.

The Mortgage Bankers Association of America and the Financial Services Roundtable said Friday in a joint statement that after reviewing paperwork, banks are reassured that nearly all foreclosures are legitimate.

"Calls for a blanket national moratorium on all foreclosures are a bad idea and would cause significant harm to communities at risk, the unstable housing market and the fragile economy," the statement said.

Source: The Wall Street Journal, Ariana Eunjung Cha, Steven Mufson, and Jia Lynn Yang (10/09/2010)- AS POSTED ON REALTORMAG.COM

Costly Delays Caused By Foreclosure Reviews

House Speaker Nancy Pelosi has called for a federal investigation of foreclosure sales and evictions.

Observers say that if the government gets further involved and millions of foreclosures need to be re-processed, it is unclear how long the job will take and how costs will be allocated.

Lenders are rushing to review their own situations. At GMAC Mortgage, a unit of Ally Financial Inc., a spokeswoman said, “The vast majority of these affidavits will be resolved in the coming weeks and before the end of the year,” And a spokesman for J.P. Morgan Chase & Co. said the company's review process is expected to take "a few weeks."

But fixing the problems won’t be that simple if the reviews uncover missing documentation or other serious problems that are likely to trigger more legal challenges.

The bottom line is: "It's very hard to see how the servicers can avoid reimbursing the trusts for losses caused by taking short cuts," said David J. Grais, an attorney in New York who represents investors.

Source: The Wall Street Journal, Robbie Whelan and Ruth Simon - as posted on Realtormag.com

Texas Attorney General Halts Foreclosures And Sales Of Foreclosed Properties!

The Texas Attorney General's office has halted all foreclosures, all sales of properties previously foreclosed upon, and all evictions of persons residing in previously foreclosed upon properties, until mortgage companies have completed a review of their processes, including whether employees or agents "robosigned” affidavits and other documents recorded in Texas.

The AG suspension notices were sent to 30 mortgage-loan servicers doing business in Texas.

If you are currently involved in a short sale or have concerns related to this issue, you can call the Texas Association of REALTORS® Legal Hotline, 800-873-9155, 8:30 a.m.-5 p.m.

What is the Texas Attorney General doing regarding foreclosures?
Texas Attorney General Greg Abbott has sent a demand letter to 30 mortgage banking and servicing institutions asking that these institutions immediately “suspend all foreclosures, all sales of properties previously foreclosed upon, and all evictions of persons residing in previously foreclosed upon properties” until these institutions have taken eight specific steps to rectify possible past errors in mortgage documents.

How will the demand letter affect current transactions?
If an institution chooses not to respond to or honor the demand letter, then the transaction should proceed as if no demand letter had been sent. If an institution chooses to respond to the demand letter, then the transaction could be affected in various ways:

Foreclosures: Institutions that honor the AG’s request will likely postpone foreclosures that have already been posted and will likely not post additional foreclosures until the dispute has been resolved.

Foreclosed properties that are listed for sale: Institutions that honor the AG’s request will likely not enter into a sales contract for a listed foreclosure until the dispute has been resolved.

Foreclosed properties that are under contract for sale: Institutions that honor the AG’s request may delay closing a sales contract for a listed foreclosure under contract until the dispute has been resolved.

Short sales: Institutions that honor the AG’s request may choose to delay closing on a pending short-sale transaction until the dispute has been resolved.

Evictions of persons residing in previously foreclosed upon properties: Institutions that honor the AG’s request will likely not evict previous homeowners who continue to live in the foreclosed house until the dispute has been resolved. The institutions could, however, attempt to convince the occupant to leave the property by offering cash for keys.

Source: Texas Association of REALTORS® Legal Department

Home Improvements that DON’T Necessarily Add Value to Your Home

1. Swimming Pools

Swimming pools are one of those things that may be nice to enjoy at your friend's or neighbor's house, but that can be a hassle to have at your own home. Many potential homebuyers view swimming pools as dangerous, expensive to maintain and a lawsuit waiting to happen. Families with young children in particular may turn down an otherwise perfect house because of the pool (and the fear of a child going in the pool unsupervised). In fact, a would-be buyer's offer may be contingent on the home seller dismantling an above-ground pool or filling in an in-ground pool.

An in-ground pool costs anywhere from $10,000 to more than $100,000, and additional yearly maintenance expenses need to be considered. That's a significant amount of money that might never be recouped if and when the house is sold.

2. Overbuilding for the Neighborhood

Homeowners may, in an attempt to increase the value of a home, make improvements to the property that unintentionally make the home fall outside of the norm for the neighborhood. While a large, expensive remodel, such as adding a second story with two bedrooms and a full bath, might make the home more appealing, it will not add significantly to the resale value if the house is in the midst of a neighborhood of small, one-story homes. (Overbuilding might be anticipating your neighborhood's next move.)

In general, homebuyers do not want to pay $250,000 for a house that sits in a neighborhood with an average sales price of $150,000; the house will seem overpriced even if it is more desirable than the surrounding properties. The buyer will instead look to spend the $250,000 in a $250,000 neighborhood. The house might be beautiful, but any money spent on overbuilding might be difficult to recover unless the other homes in the neighborhood follow suit.

3. Extensive Landscaping

Homebuyers may appreciate well-maintained or mature landscaping, but don't expect the home's value to increase because of it. A beautiful yard may encourage potential buyers to take a closer look at the property, but will probably not add to the selling price. If a buyer is unable or unwilling to put in the effort to maintain a garden, it will quickly become an eyesore, or the new homeowner might need to pay a qualified gardener to take charge. Either way, many buyers view elaborate landscaping as a burden (even though it might be attractive) and, as a result, are not likely to consider it when placing value on the home.

4. High-End Upgrades

Putting stainless steel appliances in your kitchen or imported tiles in your entryway may do little to increase the value of your home if the bathrooms are still vinyl-floored and the shag carpeting in the bedrooms is leftover from the '60s. Upgrades should be consistent to maintain a similar style and quality throughout the home. A home that has a beautifully remodeled and modern kitchen can be viewed as a work in project if the bathrooms remain functionally obsolete.

The remodel, therefore, might not fetch as high a return as if the rest of the home were brought up to the same level. High-quality upgrades generally increase the value of high-end homes, but not necessarily mid-range houses where the upgrade may be inconsistent with the rest of the home.

In addition, specific high-end features such as media rooms with specialized audio, visual or gaming equipment may be appealing to a few prospective buyers, but many potential homebuyers would not consider paying more for the home simply because of this additional feature. Chances are that the room would be re-tasked to a more generic living space.

5. Wall-to-Wall Carpeting

While real estate listings may still boast "new carpeting throughout" as a selling point, potential homebuyers today may cringe at the idea of having wall-to-wall carpeting. Carpeting is expensive to purchase and install. In addition, there is growing concern over the healthfulness of carpeting due to the amount of chemicals used in its processing and the potential for allergens (a serious concern for families with children). Add to that the probability that the carpet style and color that you thought was absolutely perfect might not be what someone else had in mind.
Because of these hurdles, wall-to-wall carpet is something on which it's difficult to recoup the costs. Removing carpeting and restoring wood floors is usually a more profitable investment.

COUNT ON A KELLER WILLIAMS REALTOR TO GIVE YOU THE FACTS ON THESE AND OTHER HOME IMPROVEMENTS! CALL US AT 972-562-8883 OR EMAIL MCKINNEY@KW.COM TO BE CONNECTED TO ONE OF OUR 134 AGENTS! WE ARE EXPERTS IN REAL ESTATE IN THE DALLAS METROPLEX!

Source: Jean Folger – as posted on Investopedia

Are you registered to vote?

October 4 is the deadline to register to vote in the Nov. 2 elections. If you're not registered—or you're not sure—visit the Texas Secretary of State's Web site to verify your registration or download the registration application.

Remember, to consult the Texas Association of REALTORS® Voting Guide to help elect public officials who support private-property rights and the real estate industry.

Source: Texas Association of Realtors

Breaking News- Is a 640 credit score the new 620? A Must Read and A CALL TO ACTION!

As you know, I am committed to bring you the most- updated, must-know information on mortgage and industry changes. I have hesitated in sending the following news as it is not “set in stone” yet. However, in having conversations with many of our referring partners I think that we need to let you know the latest:

There are five major servicers in the Industry (along with a number of minor players). Typically in our market and the time we are in, the five major players set the rules and the rest follow suite. In the past few months two of the major servicers have increased the minimum FHA credit score from 620 to 640. As of Monday, Bank of America (obviously one of the five) announced that they, too, will increase to a minimum of 640 effective 10/4/2010. We have two of the major servicers still holding at 620 but our sources are telling us that they could go to 640 within the next few weeks.

What does it mean to you? Right now we are still at 620, but there is a very good possibility that 640 will become the new 620 in the weeks to come (and probably sooner than later) for FHA. So this is a Call To Action - Your current buyers that have lower credit scores (between 620-639) need to look at purchasing NOW. This change could take them out of the market in the near future to be able to purchase a home unless they can increase their credit scores to 640.

Get the word out, send this to your clients, call everyone you know- this IS Breaking News and we owe it to our buyers to let them know. With historically low interest rates, 620+ credit scores allowed, and great inventory- NOW is the time to purchase!

As always, I would love to hear from you this week and I am never too busy for your calls and questions! Simply contact me at 214-763-9192 or email me at mpotter@mckinneymg.com or mpotter@servicefirstmtg.com. Have a blessed rest of week! Remember that I am available on weekends for your prequals.

Source: Mark Potter - Service First Mortgage

What's New in New Housing Design?

Here are the products grabbing the attention of the home building and remodeling industries, according to Bill Millholland, executive vice president of sales and marketing at Case Design/Remodeling in Maryland, and Jamie Gibbs, a New York-based interior designer:

· Appliance Drawers. Small warming drawers, modest-sized dishwasher drawers for small loads, refrigerator drawers and microwave drawers.

· Counter-depth refrigerators. Some are only 24 inches deep.

· Motion-detecting faucets. Like you'd find in the restrooms of businesses.

· LED (light-emitting diode) lighting. These are used under cabinets and in ceiling fixtures as a longer-lasting, more efficient alternative to compact fluorescent lamps and incandescent bulbs.

· Electric heated floors. A nice touch in bathrooms.

· Showers with multiple heads and body sprays. Bathtubs are out.

Source: The Washington Post (09/25/2010)as posted on Realtormag.com - 9/28/10

Transform Your Property with Paint!

The best way to update a property is to paint it. It’s a job that many sellers can do themselves.

Here are six suggestions for making the work go quickly.

1. Move the furniture. Get as much furniture as possible out of the way, and then cover what’s left with plastic drop cloths held in place with masking tape.

2. Buy good paint. Top-quality latex interior paint will hide what’s underneath and make the job go faster.

3. Tape the edges. Taping the edges with painters tape will speed up the job and make the results more professional.

4. Work top down. Paint the ceiling first, then the walls, then the windows and trim and finally the baseboards. This will cut down on time spent repairing drips and splatter marks.

5. Cut in the corners. Applying a three-inch band of paint around the edges will allow you to fill in the middle with a paint roller.

6. Apply paint generously. Trying to stretch the paint won’t save sellers any money if they have to repaint.

Source: Paint Quality Institute (09/21/2010)as posted on Realtormag.com (9/22/10)

What's a Cramdown and How Does it Help Upside-down Homeowners?

The rising number of home repossessions could encourage Congress to pass cramdown legislation, something lenders fought vigorously and prevailed against when bankruptcy laws were reformed.

But the cramdown concept has been working successfully in Chapter 12 of the bankruptcy code, which affects farmland.

Cramdowns, or more properly “bifurcation,” divide the value of the debt between that which reflects the current appraised value of the property and that which is now unsecured because the underlying value has declined. The borrower is required to pay the secured portion of the loan and the remainder is treated as unsecured debt – and generally forgiven.

Economists for the Federal Reserve Bank of Cleveland wrote in a research paper that is getting a lot of attention that the negative effect of cramdowns in agricultural lending has been minor. Cramdowns succeed in keeping farmers on their properties and banks get what they would have gotten if they had foreclosed.

Source: Universal Syndicate: Lew Sichelman (09/19/2010)as posted on Realtormag.com

10 Reasons to Buy - Not Rent - a Home

Time magazine is being overly pessimistic in its recent cover piece that called into question the benefits of homeownership. In fact, now is a great time to buy. And, what's more, tomorrow will be a great time to own, because the fundamental strength of homeownership hasn't changed.

Why is now a great time to buy? Here are 10 reasons:

1. You can get a good deal. Prices are down 30 percent on average. They're at a level that makes sense for people's income.

2. Mortgages are cheap. At 4.3 percent on average for a 30-year fixed-rate mortgage, your costs to own are down by a fifth from two years ago.

3. You can save on taxes. When you add up the deductions for mortgage interest and others, the cost of owning can drop below renting for a comparable place.

4. It'll be yours. The one benefit to owning that never changes is that you can paint your walls orange if you want (generally speaking; there might be some community restrictions). How many landlords will let you do that?

5. You can get a better home. In some markets, it's simply the case that the nicest places are for-sale homes and condos.

6. It offers some inflation protection. Historically, appreciation over time outpaces inflation.

7. It's risk capital. If the economy picks up, you stand to benefit from that, even if you're goal is just to have a nice place to live.

8. It's forced savings. A part of your payment each month goes to equity.

9. There is a lot to choose from. There are some 4 million homes available today, about a year's supply. Now's the time to find something you like and get it.

10. Sooner or later the market will clear. The U.S. is expected to grow by another 100 million people in 40 years. They have to live somewhere. Demand will eventually outpace supply.

Is buying a home on your "to do" list? Give us a call! We have over 130 Realtors who would love to help you! Call 972-562-8883 or email mckinney@kw.com!

Source: Wall Street Journal, Brett Arends (9/16/10)as posted on Realtormag.com

Minimum Credit Scores Announced for FHA Loans

HUD has announced (PDF) that effective Oct. 4, 2010, borrowers with a credit score below 500 are not eligible for FHA-insured mortgage financing. Borrowers with a credit score between 500 and 579 are limited to 90 percent LTV, which requires a 10 percent down payment. Borrowers with a credit score of 580 or higher are eligible for maximum financing, which requires a minimum 3.5 percent down payment. Borrowers with nontraditional credit histories may be eligible for maximum financing.

Source: Lou Burns, Broker - Keller Williams Realty

Avoid Being Part of a Real Estate Scam!

With increasing reports of real estate scams worldwide, here are some ways recommended by fraud experts to avoid being caught up in sales fraud when the transaction involves an out-of-state buyer or seller.

· Ask everyone to prove that they are who they say they are. Have the out-of-state party provide a photocopy of their driver’s license or passport that has been notarized.

· Verify signatures. Compare the signature on the real estate contract to other signatures on their driver’s license, passport, the original sales contract, etc.

· Make sure the warranty deed hasn’t been altered. Get a copy of the original from the title company.

· You select the professionals. Require the out-of-town party to use a real estate professional, attorney, or title company of your choosing.

· Require a face-to-face meeting. The safest way to ensure that they are who they say they are is to require that they show up at closing.

Source: AOL Real Estate, Sheree R Curry (09/14/2010)as posted on Realtormag.com

More Luxury House Hunters May Buy!

Interest in luxury real estate is picking up, according to a survey for United Marketing, which found that the percentage of people with incomes greater than $306,000 a year who plan to buy homes has risen from 3 percent in 2008 to 11 percent this year.

Laurie Moore-Moore, CEO of The Institute for Luxury Home Marketing, said that while she doesn’t believe this market is booming, she is seeing sellers who are more realistic about prices and that is persuading affluent buyers to consider purchases.

"Luxury home buyers have been buying this summer," said Moore-Moore. "After waiting in the wings, many affluent buyers spent the summer shopping for value and snapping up trophy properties."

Source: UPI, Steve Cook (09/12/2010) as posted on Realtormag.com

Payback Begins for Recipients of First Tax Credit!

Borrowers who took advantage of the original 2008 home buyer tax credit must begin paying the credit back this year. The Inspector General for Tax Administration (TIGTA) says 950,000 owe money.

The required payments are amortized over 15 years – $500 per year. If the property is sold, the credit must be paid at closing.

The TIGTA says the IRS has the incorrect purchase date in its database for some taxpayers who took the original credit. These people may never be identified as owing money, it admits.

Source: Bankrate.com, Kay Bill (09/09/2010) - posted on Realtomag.com

New FHA Plan for Underwater Owners

The latest government program to help underwater borrowers debuted Tuesday.

Under the plan, the Federal Housing Administration permits lenders to choose which borrowers will participate from among their clientele. The idea is that there are some borrowers banks and investors want to get rid of because they are likely to default anyway.

To qualify, borrowers must be current on their mortgages and owe at least 15 percent more than their home’s current value. Lenders must agree to forgive at least 10 percent of the debt.

The government estimates that between 500,000 and 1.5 million borrowers will be helped, but analysts at Barclays Capital say they doubt whether the program will reach 300,000 borrowers.

Need more info? Call Mark Potter at Service First Mortgage! 972-763-9192

Source: Associated Press, Alan Zibel (09/07/2010) – article posted on Realtormag.com

IMPROVE YOUR CREDIT SCORE

Written By Carla Hill
Provided By Realty Times

Healthy credit scores have never been more important. As banks tighten their lending standards, it's important to have your score as high as possible.

A FICO score is a number, in general from 300 to 850, that is formulated from your payment history, including such things as amounts of money owed, length of your credit history, new credit accounts open, and how you have used your credit. Age, salary, race, education, and religion do not affect your score. You can't buy a good score; you can only build one over time by demonstrating that you are a responsible borrower.

To improve your credit score, start with these steps.

1. Pay your bills on time. This seems like a simple enough feat, but in hard economic times, more and more borrowers are finding themselves hard-pressed with the decision of what bill to pay. If you find yourself having a hard time paying bills, be sure to talk with the lender or company you owe. They may have programs or suggestions that will help you avoid having your bill sent to collections.

2. Don't let items go to collections. Once an item is sent to collections, your credit report will suffer. This ding will stay on your report for seven years.

3. Don't open other new credit lines when applying for a home loan. You may want the new car or living room set, but the home buying process is not the time to open multiple new accounts. This is a sure-fire way to temporarily reduce your credit score. If you do this before finalizing your mortgage, you many find yourself stuck with a higher interest rate.

4. Monitor your report on a regular basis for errors and cases of identity theft. Errors do happen. To get them corrected quickly, be sure to contact both the organization that provided the erroneous information, as well as the credit bureau. Identity theft happens. And it is your responsibility to identify it and address it!

5. Pay down credit cards. Carrying high balances on credit cards can severely affect your credit score. Think of it this way. If you have a grand total of $10,000 worth of credit limits available, but you owe $5,000 on all of your cards put together, you are using half of your available credit!

The best loans and mortgages are available to borrowers with FICO scores 700 and above. Experian, one of the major credit reporting agencies, reports that the average credit score is 693.

For a look at your credit report, visit the government sponsored site, myannualcreditreport.com. You may access your report three times a year free of charge.

5 Reasons Homeownership Trumps Renting

The seemingly endless run of bad housing news is discouraging some potential home buyers from considering a purchase. But the truth is that the advantages of homeownership have very little to do with investment gains. The best things about owning a home have a lot more to do with personal comfort and satisfaction.

Here are five of them:

• Be your own landlord. The bank can only kick you out if you don’t pay; a landlord can be much less dependable – deciding to sell the property or choosing to live there themselves.

• Paying the principal is forced savings. Yes, it’s possible that home prices will fall further. It is also possible that your 401(k) will lose value. But over the long haul, both are likely to enjoy modest gains in value.

• Fixed-rate mortgages never rise – and eventually you pay them off. With mortgage rates at record lows, people who buy now are locking in real bargains.

• Good schools. Family-sized rentals are harder to come by in areas with excellent public schools.

• Spacious properties in pleasant neighborhoods. Sizable homes in attractive communities are almost always owned – not rented.

Source: The New York Times, Ron Lieber (08/27/2010) – Info from Realtormag.com

Is The American Home Shrinking?

The Census Bureau recently reported that median new home size fell to 2,135 sq. ft. in 2009 after peaking at more than 2,300 earlier in the decade.

"Home buyers are asking for less, cutting back on options and reducing square footage," said Steven Pace of the North Carolina-based Pace Development Group, which builds both custom and tract houses ranging in price from below $250,000 to more than $2 million. "They're saying, 'Maybe we don't need that 5,000 square footage;" he said. "'Maybe our bath doesn't need to be big enough for our whole family and all our neighbors to take a shower at the same time.'"

Kermit Baker, chief economist for the American Institute of Architects, pointed out that consumers aren’t asking for spaces devoted to single purposes, such as media rooms for watching videos and game rooms for shooting pool. Instead, the requests are for rooms with shared uses. "We continue to move away from the 'McMansion' chapter of residential design," he said.

Now, the typical U.S. owner-occupied home has six rooms total, with three of them being bedrooms, according to the Census Bureau's annual American Housing Survey. The most common number of baths is two or more.

More than 75% of all homeowners have a dishwasher, up from 65% a decade ago. And garbage disposals can be found in nearly half of owner-occupied homes, up from 46%.

On a broader scope, the survey revealed that, despite the recent excitement about the new urbanism and return to cities, most Americans still lead a "Leave it to Beaver" lifestyle.

Are YOU thinking of downsizing, or know someone who is? Give us a call! We have 133 agents ready and willing to help you find the (smaller) home of your dreams! You can reach us at 972-562-8883 or mckinney@kw.com!

Source: CNN Money - Les Christie

Home Owners Switching to Natural Plants

Home owners seeking to save money are landscaping their properties with plants that are native to the area.

These gardening design schemes generally require less water. The practice started in the West, where this kind of design is called "xeriscaping" — based on the Greek word for “dry.” But lately, it is spreading all over the country.

Water savings can be significant. According to the Water Research Foundation of Denver, landscape watering accounts for 40 percent to 70 percent of residential water use. Converting to this kind of landscaping can reduce annual household water use by 30 percent.

Source: The Wall Street Journal, Anne Marie Chaker (08/18/2010)
Information from Realtormag.com

Mortgage Applications Jump

Mortgage applications rose 4.9 percent last week as more borrowers refinanced at the lowest rates in decades.

The Mortgage Bankers Association said Wednesday the gain was fueled by a 5.7 percent increase in refinancing applications. The number of loans taken out to purchase homes edged up by less than 1 percent. The numbers are adjusted for seasonal factors.

Refinancing is at its highest level since May 2009 and makes up 82.4 percent of all new loan activity, its highest share since January 2009.

However, low mortgage rates have done little to boost home sales, which have been hurt by high unemployment, slow job growth, and strict credit standards. Purchase activity is 41.5 percent below its level at the end of April, when two federal tax credits for home buyers expired.

Rates have fallen since spring as investors sought the safety of Treasury bonds, lowering their yield. Mortgage rates tend to track those yields.

Interest rates declined for the week:

30-year fixed loan fell to 4.55 percent from 4.6 percent.
15-year fixed-rate loan fell to 3.91 percent from 3.99 percent.
1-year ARMs decreased to 6.84 percent from 6.90 percent.

The Mortgage Bankers Association's survey covers more than 50 percent of all applications nationwide.

Source: Associated Press, J.W. Elphinstone, 8/25/2010
Information from Realtormag.com

Protest Rising Over Resale Charges

In some newly constructed housing developments home builders are including a clause in the contract demanding a 1 percent transfer fee to be paid to them every time the property is sold over the next 99 years.

The fee isn’t for improvements or maintenance. It is just a payment to the builder.

"It's of no benefit to consumers," says Kathleen Day of the Center for Responsible Lending. "It's another innovative way to price gouge. Every extra dollar they suck out of people's wallets takes away from other spending. It's not good for the economy."

Freehold Capital Partners, which has developed the program, says it has enlisted thousands of developers nationwide. It argues that this is good for the economy because it will provide builders with more capital.

Meanwhile U.S. Rep Brad Sherman, a California Democrat, is pushing for approval of legislation to make these fees illegal. Also, in the past month, the Federal Housing Finance Agency has proposed rules preventing Fannie Mae and Freddie Mac from buying mortgages that include home resale fees.

Source: CNNMoney.com, Les Christie (08/23/2010) - Information from Realtormag.com

Investors Turn to "Flipping" Foreclosed Homes for Quick Profits

Private equity firms and other groups of wealthy people are purchasing foreclosures at distressed prices, rehabbing them, and selling them for a quick profit.

This used to be a game for amateurs, but because of the lack of other investment opportunities, the money-management pros have stepped in.

The influx of new players is pushing up auction prices and making it harder to make a profit. The average discount at auctions — the difference between a home's sale price and its actual value — is 21.6 percent, down from 28 percent in January 2009, according to ForeclosureRadar.

"In crisis there's opportunity," says Rick Hudson, president of investment firm Prosperity Group Real Estate in Irvine, Calif. "Right now there's huge opportunity with flipping houses."

Source: Los Angeles Times, Walter Hamilton and Alejandro Lazo

Seller-Financing Licensing Exemption Reinstated!

Great news for sellers who finance in Texas: Texas Department of Savings & Mortgage Lending Commissioner Doug Foster has issued a notice that allows the continuation of the de minimis exemption until further action is taken by the Legislature. This exemption, which was briefly repealed by the federal SAFE Act, means that a seller can once again finance up to five properties in a 12-month period without being licensed as a residential mortgage loan originator. The Texas Association of REALTORS® worked closely with the agency in its efforts to continue to allow the exemption to apply in Texas.

The de minimis exemption has not yet been recodified, but the Texas Association of REALTORS® will continue to work during the next legislative session to see that it is reinstated in statute.

Source: TAR

5 Real Estate Scams To Watch Out For!

Don't be duped by mortgage fraud. Here are a few common scams and the red flags you should look for in a transaction.

Mortgage fraud is pervasive: An estimated $4 billion to $6 billion in annual losses result from mortgage fraud, according to FBI reports. “An entire community can be damaged by mortgage fraud,” says Rachel Dollar, a lawyer from Santa Rosa, Calif., and editor of the Mortgage Fraud Blog. Mortgage fraud can lead to a spike in foreclosures, home values plummeting, and lenders raising their rates and fees to recover losses.

The crimes are often complex, involving several parties and occurring over multiple transactions. To protect you and your clients, educate yourself about mortgage fraud and be on guard for any warning signs in a transaction. You can start by reviewing these five scams, and then test your knowledge by taking our Mortgage Fraud Quiz.

1. The Foreclosure Rescue Scheme

The Scam: “Rescuers” promise cash-strapped home owners that they can save their home from foreclosure. The rescue, which involves paying upfront fees, can take multiple forms, such as the perpetrator obtaining a new loan on behalf of the owner or by having the owner sign over the home’s deed and then rent the home until they can repurchase it. Eventually, the home owner loses the home, either to foreclosure or the fictitious rescue company.

Red Flags: With foreclosure rescue programs, borrowers are often advised to sign over the title of their house to a third party, become renters of their home, not contact their lender, or send mortgage payments to a third party, according to Fannie Mae, which provides fact sheets on mortgage fraud.

2. Loan Documentation Fraud

The Scam: This fraud involves numerous schemes in which a borrower provides inaccurate financial information — such as about their income, assets, and liabilities — or employment status in order to qualify for a loan with lower rates and more favorable terms. Occupancy fraud is one growing area: Borrowers say they plan to live in the property when they actually intend to rent it.

Red Flags: Documentation may raise suspicion if the employer’s address is shown as a post office box, accumulation of assets compared to the person’s income appears too high or low, the new house is too small to accommodate occupants, the person has no credit history, or the application is unsigned or undated, according to Fannie Mae.

3. Appraisal Fraud

The Scam: A faulty appraisal — saying a property is worth more than what it really is — is connected to many types of mortgage fraud. It entails manipulating or overstating comparables, market values, or property characteristics in order to obtain a higher appraisal. The higher property appraisal, which generates false equity, is done by falsifying an appraisal document or using an appraiser accomplice to obtain the higher value.

Red Flags: Be skeptical of appraisals that are dated prior to the sales contract, list comparable sales that do not contain similarities to the property or are outside the neighborhood, the owner is not the seller listed on the contract or the title, or a third party participating in the transaction orders the appraisal, Freddie Mac warns.

4. Illegal Property Flipping

The Scam: This entails purchasing properties and reselling them at inflated prices. These scams usually involve faulty appraisals and inaccurate loan documents. The property is then refinanced or resold immediately after purchase for an inflated value. The home is purchased at a higher price, often by straw buyers working with the “flipper,” and eventually falls into foreclosure.

Red Flags: Some key things to look for are rapid refinancing of a property; the seller recently having acquired the title or acquiring the title concurrent with the transaction; an appraisal that comes in too high; a property that was recently in foreclosure being purchased at a much lower price than its sales price; or the owner listed on the appraisal and title not matching the seller on the sales contract, according to Fannie Mae.

5. Short Sales Schemes

The Scam: Borrowers owe more than the current value of their home so they fake financial hardship and no longer make their mortgage payments. An accomplice of the borrower then submits a low offer to purchase the property in a short sale agreement. The lender agrees to the short sale, unaware that it was premeditated. The property, after being purchased at the reduced price, is then often resold at the home’s actual value for profit.

Red Flags: The borrower suddenly defaults on the mortgage with no workout discussions with the lender, an immediate offer is made to a lender at a short sale price, the short sale offer is less than current market value, or a cash back is offered at closing to the delinquent borrower (disguised as “repairs” or other payouts, for example) and is not disclosed to the lender, according to Fannie Mae.

You can report instances of suspected mortgage fraud to Stopfraud.gov.

By Melissa Dittmann Tracey | August 2010
Source: Realtormag.com

Fed: Give Borrowers Time to Change Their Minds

The Federal Reserve released a proposal Monday to give mortgage applicants three days to change their minds.

The proposal was part of a 930-page document that clarifies and finalizes the new financial reform law.

The Fed’s document says that for closed-end loans secured by real property or a dwelling, a creditor must:

• “Refund any appraisal or other fees paid by the consumer (other than a credit report fee), if the consumer decides not to proceed with a closed-end mortgage transaction within three business days of receiving the early disclosures (fees imposed after this three-day period would not be refundable); and
• “Disclose the right to a refund of fees to consumers before they apply for a closed-end mortgage loan.”

The Fed says this proposal will make it easier and cheaper for consumers to comparison shop. It also acknowledged that borrowers who want to close a transaction in a hurry would be handicapped because most lenders will delay sending out an appraiser for a few days.

Other proposals affecting home buyers included:

• A ban on yield-spread premiums, which encourage mortgage brokers to push buyers toward more profitable mortgages.
• A requirement for lenders to tell borrowers when their mortgage is sold or transferred.
• An explanation of the effects of balloon payments, adjustable loan payment fluctuations, and minimum payments on loan balances.

Source: Bankrate.com, Holden Lewis (08/17/2010)

FHA Refis for Underwater Borrowers

FHA has launched a refinancing program to assist homeowners who owe more on their mortgages than their home is worth. Beginning September 7, the agency will offer qualified non-FHA borrowers the opportunity to refinance with an FHA-insured mortgage on their primary residence.

Borrowers must be current on their existing mortgage, qualify under FHA underwriting requirements, and have a credit score of at least 500. The first lien holder must agree to write off at least 10 percent of the remaining amount owed under the mortgage, bringing the combined loan-to-value ratio of all mortgages to no more than 115 percent.

The LTV for the new FHA mortgage may not exceed 97.75 percent. The Treasury Department will provide incentives to second lien holders who agree to forgive all or part of their liens.

Source: CCAR

10 States with Pricey Closing Costs

Per: Realtormag.com

Closing costs have risen an average of 36.6 percent compared to 2009, according to Bankrate.com’s annual survey.

The big increased was caused by the U.S. government requiring lenders to provide accurate good faith estimates of closing costs. Previously, lenders weren’t penalized for a bad estimate.

On average, the origination and third party fees on a $200,000 purchase mortgage added up to $3,741.

Here are the 10 highest states:

1. New York, $5,623
2. Texas, $4,708
3. Utah, $4,605
4. California-San Francisco, $4,566; California-Los Angeles, $4,406
5. Alaska, $4,327
6. Oklahoma, $4,254
7. Pennsylvania, $4,236
8. New Jersey, $4,110
9. Idaho, $4,077
10. Massachusetts, $4,025

Source: Bankrate.com (08/16/2010)

Refinancing on The Increase Due to Low Interest Rates!

Mortgage lenders have seen refinancing demand rise as the 30-year fixed rate tumbled to 4.4 percent — the lowest level in the nearly 40 years that Freddie Mac has tracked the statistic.

However, experts say borrowers who would benefit most from a refi likely will not qualify for new loans due to income cuts, unemployment, low credit scores, or insufficient equity. Borrowers who already refinanced in the last 18 months, along with borrowers whose adjustable-rate loans are ready to reset, will account for most of the refi activity; and many will move into shorter-term mortgages to more quickly repay their debt.

Source: Wall Street Journal, Nick Timiraos (08/13/10)

National Assoc. of Realtors Reports Homeownership and Community Stability are Linked

Home owners are more active in their communities, benefit from improved education opportunities, and report higher levels of self-esteem and happiness when compared to renters, according to leading research. A new report from the NATIONAL ASSOCIATION OF REALTORS®, Social Benefits of Homeownership and Stable Housing, explores the impact of stable housing and the positive social outcomes resulting from homeownership.

“Homeownership is in investment in your future – home is where we make memories, build our lives and feel comfortable and secure,” said Vicki Cox Golder. “Owning a home has long-standing government support in this country because homeownership benefits individuals and families, strengthens our communities, and is integral to our nation’s economy.”

NAR’s study identifies research from government, industry, and academia that identified the relationship between homeownership and stable communities. Home owners move far less frequently than renters, and therefore are embedded into the same neighborhood and community for a longer amount of time. This allows for social cohesion, ultimately resulting in social benefits and stronger communities.

“REALTORS® care as much about keeping families in their homes as they do about helping them find the home of their dreams,” said Golder. “Social benefits do not arise solely from ownership, but also from greater housing stability and social ties associated with less frequent moves among home owners.”

Several research studies cited in the NAR report have found that homeownership has a significant impact on educational achievement. For instance, the decision by teenage students to stay in school is higher for those raised by parents who are homeowners compared to those whose parents are renters. Access to economic and educational opportunities are also more prevalent in neighborhoods with high rates of homeownership. Furthermore, studies have shown that changing schools frequently due to moving impacts negatively a child’s educational outcome.

Civic participation is another social benefit resulting from homeownership and stable housing. Home owners are proven to be more politically active and are more likely to vote in local elections compared to renters. In addition, homeowners have a higher membership in voluntary organizations.

Studies have shown that home owners are more likely to believe that they can do things as well as anyone else, and they self-report higher ratings on their physical health. “The research shows that home owners report higher self-esteem and happiness than renters, resulting in better overall health, both physically and psychologically,” said Golder.

When it comes to property, home owners have more invested both financially and emotionally. Property crimes affect home owners directly, but nonviolent property crimes can impact the property values of the entire neighborhood. Therefore, home owners are more motivated to deter crime by forming and implementing voluntary crime-prevention programs. In addition, it is easier for home owners to recognize perpetrators in stable neighborhoods because of extensive social ties. Unstable neighborhoods often display social disorganization which can lead to higher levels of crime.

Along with protecting their home and neighborhood from crime, home owners spend more time and money maintaining their home than renters. Neighbors also influence other home owners to improve their property, resulting in a better overall quality of the community.

“Homeownership certainly contributes to positive social outcomes, but those outcomes are truly a result of stable housing communities,” said Golder. “With strong social ties and a cohesive community, home owners can enjoy not only the long-term financial benefit of owning a home, but also a more satisfying life – which is what’s really at the heart of the American Dream.”

Source: NAR

Insurance For a Vacant Home

Clients whose homes sit vacant and on the market for many months should contact their insurance agents and arrange for a policy that will protect an unoccupied property.

Sticking with a standard home owners policy could leave them vulnerable to liability lawsuits. Some policies also exclude coverage for fire damage if the property has been unoccupied for a specified number of days.

Paying a higher premium, should be expected.

Source: USA Today

Sales of Pre-owned Homes in Texas Rise 14% over 2nd qtr. 2009!

Texas Association of Realtors reported on August 9, that 2nd qtr. home sales in Texas rose for the third period in a row compared to year-earlier. Pre-owned, single-family home sales were up 14 percent from the 2nd qtr. of 2009.

Collin County sales rose by 11.01% and Denton County sales increased 18.45%.

TAR attributed the increase to the improving Texas economy and an increase in home-buying directly related to the federal tax credits, which expired in April.

”We’re encouraged to see continued strength in Texas’ real estate market as 2010 marches forward,” Texas Association of Realtors chairman Bill Jones said in the report.

Median home sales prices showed only a slight change at $149,200.

Is Your Listing a Little "Stale"?

Real estate professionals share creative ways to make a home smell great to a buyer!

Source: Realtormag.com

"I recommend using lemon or citrus scented candles for showings and running a few lemon wedges through the garbage disposal." −Christine Spitale, Sunflower Staging, Highland Mills, N.Y.

"Covering up the smell is not the answer. Sometimes it takes a thorough cleaning of carpets, drapes, and upholstery. It also helps to open windows to get air flowing and to clean out the air ducts." −Barbara Linick, ERA Troy, REALTORS®, San Antonio
"I think that cinnamon and vanilla are the best smells when trying to sell a home. I love to walk into a home and breathe in the fresh scent of cinnamon sticks on the stove or smell a burning vanilla candle." −Fran Hughes, Keller Williams Realty Atlanta Perimeter, Atlanta

"I always use an electric ceramic crock that can hold small or large glass candles, like from Yankee Candle Co. There’s no risk of fire because there’s no flame; the ceramic crock warms the candle to melt the wax. I’ve used several of these in different places throughout the house, so as you walk through you get different fragrances." −Linda C. Hardt, Homelynx Home Loans, Fort Myers, Fla.

"I use an odor eliminator called PureAyre that smells like mint. The product can be 'injected' into furniture or carpets. It can also be sprayed into the air. When buyers come into a home, many are turned off by the smell of air fresheners or candles. Smart buyers know these are old tricks used to cover up smells, not eliminate them." −Carol Smith, Creative Home Stagers, Charlotte, N.C.

"Put a beer in the oven on low and it will smell like you’re baking fresh bread." −Elizabeth Lord, Carolina Farms & Estates, York, S.C.

"When you introduce any pleasant smelling items to a home, try to stick to basic scents such as vanilla, apple, cinnamon, and lemon. In small doses, these often appeal to the most buyers. A small reed diffuser in a bathroom can keep a clean smell, while not overwhelming the space." −Kellie Frooninckx, Virtual Enriching Homes, Phoenix

"Heat up some water and throw fresh cinnamon into it. Turn it off just before the buyers come. They’ll think that you baked cookies for them." −April M. Newland, Newland Real Estate, St. Thomas, U.S. Virgin Islands

Federal Sales Tax on Home Purchases?

Source: Texas Association of Realtors

An Internet rumor continues to spread FALSE INFORMATION about a supposed tax on home sales. The erroneous e-mail claims that a provision of the healthcare reform bill passed earlier this year will place a tax on "all real estate transactions" in 2013. NOT TRUE.

The e-mail includes a guest editorial in a Spokane newspaper with the false claim. It doesn't, however, mention the corrected information sent to the newspaper the next day from the local association of REALTORS®.

To learn more about this myth, go to FactCheck.org.

20 Year Mortgages help Cut Interest Payments Significantly!

Source: CBS, Ray Martin

Buyers with the ability to stretch a little might consider a 20-year fixed-rate mortgage instead of the traditional 30-year, suggests CBS Money Matters’ financial adviser Ray Martin.

Martin points out that a $200,000 mortgage with a 30-year term and an interest rate of 4.75 would have a monthly payment of $1,043 and the total interest over the life of the loan would be $175,600.

The same mortgage with a 20-year term at 4.5 percent would have a monthly payment of $1,265 with total interest over the life of the mortgage of $103,670.

Young home buyers planning to have children will have their 20-year mortgage paid off by the time their kids enter college, a big financial advantage, Martin points out.

You can contact Mark Potter at Service First Mortgage for more info! His link is listed to the right!

Applications to Purchase a Home on the RISE!

Applications to purchase homes rose 1.5 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association.

The unadjusted purchase index also rose 1.5 percent, and it was up 7.1 percent compared to four weeks ago. Compared to the same week a year ago, it was down 33.7 percent. For the third straight week, government-backed loans, especially Federal Housing Administration loans, drove the increase, with government loan volume rising 3.4 percent compared to last week.

Mortgage rates were still remarkably low!

30-year fixed-rate mortgages decreased to 4.60 percent from 4.69 percent.
15-year fixed-rate mortgages decreased to 4.03 percent from 4.12 percent.
1-year ARMs decreased to 7.10 percent from 7.15 percent.

Source: Mortgage Bankers Association

"Strategic Defaults" Can Damage Credit for Years

Home owners who choose to default on their mortgage even though they can afford the monthly payments can expect to take a significant hit to their creditworthiness, some credit rating firms say.

A record of the default — initially as much as 200 points — stays on a credit report for seven years. This will have an impact on the defaulter’s ability to get credit of all kinds and potentially his or her ability to buy insurance and even get a job.

The debt that foreclosure erases may be considered income, and Uncle Sam may want to collect taxes.

"It's by no means a move to be undertaken lightly," says Maxine Sweet, vice president of public education for Experian.

Source: ARA Content (07/30/2010)

Keller Williams Realty Named Highest Ranked in Home Buyer Satisfaction by J.D. Power and Associates for Third Straight Year!

AUSTIN, TEXAS (July 30, 2010) —According to the J.D. Power and Associates 2010 Home Buyer/Seller StudySM, Keller Williams Realty, Inc., the third largest real estate company in the United States, has received the highest overall satisfaction ratings from home buyers among the largest full-service real estate firms for the third year in a row. The company also ranked second among home sellers in the study for the second year in a row.

“We are incredibly proud of our associates for earning this distinction and want to thank them for their commitment to their clients and communities," said Mark Willis, CEO of Keller Williams Realty. “We see this honor as demonstration of our company philosophy that it is the agent’s brand that matters most and no amount of money spent on advertising can replace the influence and reputations our agents have in their local communities. Our associates have earned this on their own, by building relationships in their communities."

The study was produced by J.D. Power and Associates to measure home buyers and sellers customer satisfaction. The results of the home-buying experience were determined by three factors including the buyer’s experience with their agent, the real estate office and a variety of additional services. Keller Williams Realty performed particularly well in the agent and office factors. And, overall satisfaction of buyers for the industry was up over last year.

Additionally, the study noted that the importance of real estate agents has increased substantially in the past year, with buyers and sellers relying on the negotiating skills of their chosen agent and help in navigating the market.

“It is thrilling to see our firm, once again, get public recognition for its incredible focus on customer satisfaction from such a prestigious group. Our associates continually demonstrate that it is possible to deliver the highest level of customer service in one of the toughest real estate markets on record," said Mary Tennant, president and COO of Keller Williams Realty. “We feel incredibly fortunate to be in business with them, and want to congratulate them on their hard work and dedication."

In the past year, Keller Williams Realty has continued to grow despite the well-publicized turmoil in the real estate industry. In addition to becoming the 3rd largest real estate company in the U.S., surpassing RE/MAX®, Keller Williams Realty was ranked as the No. 1 real estate franchise on the 31st Annual Franchise 500 list by Entrepreneur magazine and was voted the Most Recognizable Brand of Real Estate Franchises and the Trendsetter of the year for 2009 in an industry-wide survey for the Swanepoel TRENDS Report.

If you are thinking about purchasing a home and want to use the Highest Ranked real estate company in the nation in BUYER SATISFACTION - give us a call! We have over 130 agents ready to to help YOU find the home of your dreams! Call 972-562-8883 or email mckinney@kw.com!

If your plans include a career change - think REAL ESTATE with Keller Williams! Our PROFIT SHARE system is unique in the industry and our TRAINING can't be beat! Call Team Leader, Matt Hilton, for an appointment at 469-452-1112 or send him an email at matthilton@kw.com!

10 Tricks to Help you Lower your Electric Bill!

If you're looking for ways to help you save more and spend less, one of the best places to start could be right at home. Put these tips to work to help cut your next electric bill.

10. Install Motion Detectors on Lights: Kids are notoriousfor leaving lights on by accident. This easy trick can help you say goodbye to wasted electricity - and sky high bills.

9. Wash Clothes in Cold Water: Since most of the energy used by top-loading washers is to heat water, washing in cold can help you save each month.

8. Tint Home Windows: For windows that get a lot of sun, you can add a layer of solar window film to deflect sunlight and conserve energy.

7. Program Your Thermostat: Simply set it to raise or lower your thermostat for the times when you're not at home.

6. Unplug Appliances: Even when they're not in use your toaster, laptop and can opener drain power. So unplug them and save.

5. Wash Your Lint Trap: Since dryer sheets can cause a transparent film that burns out the heating unit, it's vital to wash your lint trap with hot, soapy water every 6 months.

4. Change Your Showerhead: Replacing it with a low-flow head can use less water per minute - so there's less to heat.

3. Cook on the Back Burner: By turning on your exhaust fan and using the rear burner on hot days, warm air will be sucked out, which minimizes AC use.

2. Change Your Lightbulbs: Compact florescent bulbs use a quarter the electricity and last longer than regular bulbs. And, they're the environmentally responsible choice.

1. Check Furniture Placement: Rugs or furniture that block a vent can really cost you. Move them and save!


Source: American Home Shield Newsletter

Congress Restores Rural Mortgage Help

Daily Real Estate News | July 29, 2010

The restoration of the single-family rural housing program that would guarantee home loans for rural buyers was passed by the Senate today and is on its way to President Obama.

The National Association of REALTORS® has vigorously lobbied to restore funding for the rural program since last March, and hailed this development as a great victory for rural home buyers.

“This is going to be a great lift for thousands of rural home buyers who need to close on their home purchases before Sept. 30 to take advantage of the home buyer tax credit,” said NAR President Vicki Cox Golder. “Many rural families would have been left out in the cold without these guaranteed loans. Increasing the commitment authority will help rural families, support local housing markets, create jobs and generate new tax revenues.”

“The rural housing program is a good example of the kind of program needed for responsible and qualified home buyers who bring common sense to the housing market,” said Golder. The legislation increases the guarantee fee for borrowers, but allows the fee to be financed. “This change will make the program completely self-sufficient,” she said.

Golder thanked Sen. Michael Bennet (D-Colo.), and Reps. Paul Kanjorski (D-Pa.) and Shelley Moore Capito (R-W.Va.) for moving the bill to passage in both houses.

The legislation was part of H.R. 4899, “The Emergency Supplemental Appropriations Act” that the Senate passed today. The measure increases the Rural Housing Service commitment authority allowing guaranteed loans; previously, RHS has been providing conditional commitments. The RHS is expected to announce new guidelines shortly after the president signs the bill.

Source: NAR

Mortgage Applications for Home Purchases Rise 2%

Daily Real Estate News | July 28, 2010 |

The number of mortgage applications to purchase homes rose 2 percent last week compared to the previous week on an adjusted basis, according to the Mortgage Bankers Association weekly survey.

On an unadjusted basis, the index rose 2.4 percent, but remained 34.3 percent lower than it was a year ago. The overall mortgage volume, including refinancings, declined 4.4 percent from the prior week.

This was the highest weekly number of purchase applications since the end of June, and the second week the number of applications has risen, even though mortgage rates increased slightly:

30-year fixed-rate mortgages increased to 4.69 percent from 4.59 percent.
15-year fixed-rate mortgages increased to 4.12 percent 4.05 percent.
1-year ARMs decreased to 7.15 percent from 7.17 percent.

Source: Mortgage Bankers Association (07/28/2010)

Avoid These Huge Home Seller Mistakes!

Written By Darline Bazile
Provided By Real Estate Articles

You would like to get the best price for your house, plus sell it in the least amount of time. In a buyers’ market like the one emerging now, houses will take longer to sell. For that reason, it’s important that you make the right moves in the very beginning of your homeselling process to remain competitive. Here are some top house seller mistakes and traps that home owners fall into and how to avoid them.

* Over-pricing – It’s easy to believe your house is worth a lot more than the current market may support, especially after the long run-up in home prices. Given that house costs have cooled down in markets around the country, house sellers should be willing to negotiate on price and terms, and stay flexible to other stipulations benefiting the buyer. Sellers should also keep their feelings under control during the process. After all, your house is special to you and the family, and you’re pleased with the improvements you’ve made over the years. However, how does your house really stand up to the others? And are those upgrades important to a potential buyer? To find out a fair listing price, get sales statistics on homes in the neighborhood including listing prices and actual sales prices, how long it took for the homes to sell, and government valuation comparisons. You’ll also need a market appraisal on your property. Visit properties for sale in your area and examine what you see in terms of sales appeal.

* Negligent Housekeeping – Buyers have to be able to imagine themselves living in the house. Have a good, objective look at the actual condition of your house. Clean, well-kept homes with an updated appearance always stand out, and a little decorating appeal can go a long way. You don’t have to purchase new furniture in order to produce charm, however , you can put toys and clutter away, freshen up paint and carpet, make the most of window coverings, and give a few key accessories in order to send out welcoming signals.

* Failing to Fix-It – Buyers, unless they are searching for a fixer-upper, would prefer to move into a house that’s in perfect or near-perfect condition. If they have to repair the roof, a broken tile floor, the garage door, worn carpet or just about anything, this could give them pause about buying. At the minimum, it may reduce the value of the home in the prospective buyer’s mind.

* Not Identifying Exclusions – This can be a cause of contention just at a critical point in the sale. Make sure to specify any special sales factors or exclusions from the fixtures and furnishings list. Generally, anything permanently fixed to the house is an asset that stays with the home after the sale. Therefore you intend to take your grandmother’s antique chandelier that’s hanging in the dining room, clearly specify the chandelier isn’t included in the sale price.

* Not Understanding the Agent Agreement – Your sales endeavor will certainly go easiest when all parties have a clear understanding of exactly what is expected. Understand the types of agency agreements when you sign with a real estate professional or company. Make sure to check on fees, commission percentages, marketing plans and timeframes. Just remember, get everything in writing.

Looking for help and the right answers in regards to selling your home? Give us a call at 972-562-8883 or email us kwmckinney.com!

5 Real Estate Scams You Need to Know About!

Don't be duped by mortgage fraud. Here are a few common scams and the red flags you should look for in a transaction.

By Melissa Dittmann Tracey | Source: Realtormag.com

Mortgage fraud is pervasive: An estimated $4 billion to $6 billion in annual losses result from mortgage fraud, according to FBI reports. “An entire community can be damaged by mortgage fraud,” says Rachel Dollar, a lawyer from Santa Rosa, Calif., and editor of the Mortgage Fraud Blog. Mortgage fraud can lead to a spike in foreclosures, home values plummeting, and lenders raising their rates and fees to recover losses.

The crimes are often complex, involving several parties and occurring over multiple transactions. To protect you and your clients, educate yourself about mortgage fraud and be on guard for any warning signs in a transaction. You can start by reviewing these five scams, and then test your knowledge by taking our Mortgage Fraud Quiz.

1. The Foreclosure Rescue Scheme

The Scam: “Rescuers” promise cash-strapped home owners that they can save their home from foreclosure. The rescue, which involves paying upfront fees, can take multiple forms, such as the perpetrator obtaining a new loan on behalf of the owner or by having the owner sign over the home’s deed and then rent the home until they can repurchase it. Eventually, the home owner loses the home, either to foreclosure or the fictitious rescue company.

Red Flags: With foreclosure rescue programs, borrowers are often advised to sign over the title of their house to a third party, become renters of their home, not contact their lender, or send mortgage payments to a third party, according to Fannie Mae, which provides fact sheets on mortgage fraud.

2. Loan Documentation Fraud

The Scam: This fraud involves numerous schemes in which a borrower provides inaccurate financial information — such as about their income, assets, and liabilities — or employment status in order to qualify for a loan with lower rates and more favorable terms. Occupancy fraud is one growing area: Borrowers say they plan to live in the property when they actually intend to rent it.

Red Flags: Documentation may raise suspicion if the employer’s address is shown as a post office box, accumulation of assets compared to the person’s income appears too high or low, the new house is too small to accommodate occupants, the person has no credit history, or the application is unsigned or undated, according to Fannie Mae.

3. Appraisal Fraud

The Scam: A faulty appraisal — saying a property is worth more than what it really is — is connected to many types of mortgage fraud. It entails manipulating or overstating comparables, market values, or property characteristics in order to obtain a higher appraisal. The higher property appraisal, which generates false equity, is done by falsifying an appraisal document or using an appraiser accomplice to obtain the higher value.

Red Flags: Be skeptical of appraisals that are dated prior to the sales contract, list comparable sales that do not contain similarities to the property or are outside the neighborhood, the owner is not the seller listed on the contract or the title, or a third party participating in the transaction orders the appraisal, Freddie Mac warns.

4. Illegal Property Flipping

The Scam: This entails purchasing properties and reselling them at inflated prices. These scams usually involve faulty appraisals and inaccurate loan documents. The property is then refinanced or resold immediately after purchase for an inflated value. The home is purchased at a higher price, often by straw buyers working with the “flipper,” and eventually falls into foreclosure.

Red Flags: Some key things to look for are rapid refinancing of a property; the seller recently having acquired the title or acquiring the title concurrent with the transaction; an appraisal that comes in too high; a property that was recently in foreclosure being purchased at a much lower price than its sales price; or the owner listed on the appraisal and title not matching the seller on the sales contract, according to Fannie Mae.

5. Short Sales Schemes

The Scam: Borrowers owe more than the current value of their home so they fake financial hardship and no longer make their mortgage payments. An accomplice of the borrower then submits a low offer to purchase the property in a short sale agreement. The lender agrees to the short sale, unaware that it was premeditated. The property, after being purchased at the reduced price, is then often resold at the home’s actual value for profit.

Red Flags: The borrower suddenly defaults on the mortgage with no workout discussions with the lender, an immediate offer is made to a lender at a short sale price, the short sale offer is less than current market value, or a cash back is offered at closing to the delinquent borrower (disguised as “repairs” or other payouts, for example) and is not disclosed to the lender, according to Fannie Mae.

You can report instances of suspected mortgage fraud to Stopfraud.gov.

Make Small Spaces Bigger: 5 Ways to Show Off Space

Buyers want spacious homes. Here's how you can show off every square inch.

By Melissa Dittmann Tracey | July 2010
Source: Realtormag.com

Size does matter when it comes to the perception of space in a home. That’s why it’s important to make sure you show off every square foot of your listing so that buyers can visualize enough room for all of their belongings.

However, home owners often crowd spaces with oversized furniture, bulky accessories, and piles of clutter that wind up making a room look much smaller than what it really is, says staging pro Jennie Norris, president of the International Association of Home Staging Professionals.

So how can you show off that space in your listings? Besides the obvious of removing clutter, try these simple ideas from Norris.

1. Scale down the furniture: By having too many large pieces of furniture in a small room, a space can feel more cramped, Norris says. Select smaller-scale furniture over large, chunky options. A good choice: furniture with wooden legs or unskirted chairs, so that you can see through the furniture to the floor underneath to open up a room.

2. Beware of overly busy patterns: Too many bold patterns in a room with fabrics and accent pieces can make a room feel smaller, Norris says. Big prints, bold plaids, and large floral patterns can be too busy for a small space. Stick to solids and use texture in fabrics to add interest.

3. Lighten Up: Dark colors absorb the light making small rooms look even smaller. “The general color rule for small spaces is lighter is better,” Norris says. Lighter colors on walls — such as creams, light blues, light greens, tan, and soft yellows — help expand the room. Plus, softer, cooler tones are soothing and relaxing, she adds.

4. Add height: Bring in anything that is tall to show off the height of the space. Whether it’s a piece of furniture such as a bookcase or an object like a tall tree, the height of the object will draw the eye upwards. Also in a house where you want to show off the height, hang the curtains above the normal window top level, Norris says. To widen the window, tie the curtains back with a rope tieback to show off the windows.

5. Use the reflection: Hang mirrors on walls to help add visual space. “When the room is reflected in the mirror, it can make us feel like there is more space as we see ‘another room’ in the mirror,” Norris says. “Mirrors can also reflect light and views, which will help lighten up the room and make it feel open and airy.”

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Architecture Coach: The Right Way to Display Artwork

Artwork can add a personalized, finishing touch to any room, but too much can distract buyers from a home's architectural pluses.
By Barbara Ballinger | July 2010

Properly displayed and tasteful artwork can instantly bring life to an otherwise dull room. Whether home owners have painted or papered their walls, most want to hang some artwork on them, perhaps by displaying fine paintings, prints, or photographs, or more casual, affordable pieces from nature, travels, or favorite magazines. "Any room looks better with some art," says saleswoman Barb St. Amant, ABR, with Harry Norman, REALTORS®, in Atlanta. However, any artwork display should involve careful selection in choosing the right mat, frame, backing, or container, as well as determining the best location to hang the art, including how high or low it should be on a wall and whether it stands alone or as part of a group, designers say.

“Too many people hang art randomly, like they’re throwing stuff at a dartboard,” says Cambridge, Mass.–based designer Heidi Pribell. “Urge collectors to have their art form a pattern — in a grid, vertical stack, or horizontal line, or if alone relate to a piece of furniture or architectural feature.”

You can help buyers and sellers understand the impact art can make — for their own enjoyment as well as how to use it to impress buyers — with some of the following tips, from choosing what to display to how to hang it on the wall.

What to Display

Forget the notion that art has to have a fancy pedigree or exorbitant costs. Anything a home owner loves is suitable, from a museum-quality painting to child’s drawings.

Here are some other suggestions for what to display:

The power of black and white. Designer and stager Linda Bettencourt of Center Stage in San Francisco suggests using black and white photographs, which can be framed in inexpensive frames.

Go big. Atlanta-based designer Brian Patrick Flynn thinks one enlarged photo — as big as 20’ wide by 12’ tall — offers a huge wow. “By making the wall the star, you don’t necessarily need many other elements to complete it,” he says.

Mirror, mirror on the walls. Pribell loves mirrors. “They offer great feng shui and bring in light and reflection. You can never have too many,” she says.
Unique collections. Get clients to think outside the box. A childhood collection of Pez dispensers or snow globes can even become artistically encased assemblages if displayed properly.

Choosing the Proper Frame

The style, width, material, and color of picture frames are personal choices, says Chicago-area designer Mary Lou Kalmus of Designing Edge, who likes to frame works in a grouping that has the same or similar motifs.

Don’t match too much. Sharla Kidder, president of Biddington’s Inc., an art information site, prefers different “but not too different” frames — maybe a series in the same color range. Also, designers say, don’t match a frame to the room’s décor too much; let it stand on its own.

Complement the era. Pribell favors a style that reflects the period in the artwork, such as a 19th century “exhibition” frame for a 19th century painting. Many contemporary paintings and other works look good with a more minimal frame so that they float within, adds Kidder.

Bring out the art with a mat. Bettencourt likes mats in ivory or white with 3-inch borders on the sides and top and a slightly wider 4-inch border on the bottom.

Decide between glass or acrylic. “Glass is cheaper, easier to clean, and more resistant to scratches,” says Kidder. But it’s also “heavier, more breakable, sensitive to variations in temperature, and highly reflective so it often creates a glare,” she says.

How to Display It

How you display the artwork on the walls can make a big difference, too. Consider the following.

Solo or in a grouping. The size of the work usually determines this decision. A large piece can stand alone; smaller works may look visually stronger if grouped, particularly if they reflect a similar style, subject matter, or frame, says Kalmus.
Kalmus recommends first laying out a grouping on the floor to form a composition. When mounting, Kidder likes spacing of 4 to 5 inches between works, depending on how many there are and the wall’s size. She also recommends using a measuring tape and level for accuracy.

How high, low, or close together. The size of the works, height of furniture, and ceiling height need to be weighed. A good guideline is to have the center of a work or the center of the grouping at eye level to the person who is living there. If the artwork is above a sofa, there should be enough room so that people don't bump their heads on it. Art arranged along a stairway should march up the stairs, says Kalmus.

Artwork Tips When Selling a Home

When selling a home, the number of works displayed and how they’re showcased may differ from when they’re just hung for personal enjoyment. To avoid distracting buyers, art needs to play a secondary role to the lead: the home’s architecture and significant features, such as a fireplace.

Here’s some guidance to offer your clients:

Less is more. Don’t fill every wall with artwork, Bettencourt advises. Instead, “put one great piece in an entry, over a sideboard, or above a fireplace,” she says.
No leaning. Even though it’s considered quite chic, avoid leaning artwork against a wall, since there’s a risk of it being knocked over.

Use art as a solution. “Spaced along a long hallway, art can break it up so it doesn’t resemble a bowling alley, or can cover ugly electrical panels,” Bettencourt says.

Draw inspiration. Encourage clients to look in magazines and books for more solutions. For example, Rooms to Inspire in the City (Rizzoli, 2010) by Annie Kelly provides many helpful images.

Info from Realtormag.com