How long will you be underwater? Timeline to reach desired equity position depends on 3 factors

BY JACK GUTTENTAG, TUESDAY, MAY 29, 2012 Inman News®

Underwater house image via Shutterstock.

About 16 million homeowners owe more on their mortgage than their homes are worth, which means they are "underwater." So long as that condition continues, they have no equity that can be used to help finance the purchase of another house.

On the contrary, they can't sell the house without digging into their pockets to pay the difference between what they owe and what they can realize from the sale net of expenses.

But time heals most wounds, and negative equity is no exception. The principal component of the monthly mortgage payment reduces the loan balance by the same amount.

4 traits of unhappy homeowners Mood of the Market

BY TARA-NICHOLLE NELSON, MONDAY, Inman News®

Stressed woman image via Shutterstock.

As the parent of a newly-minted adult, I can reflect on how much of my advice thus far has been delivered in the negative. "Son," I've said, time and time again, "I've been there and I've done that and here's what NOT to do."

I suspect this might be a theme of any great advice in any realm of life: it's critical to know from those who have gone before what you should do, and just as critical -- sometimes more so -- to know what not to do. In the interest of ensuring that the advice I gave last week on how to be a happy homeowner is comprehensive, then, it behooves me to share some insights on how to be an unhappy one -- in the hopes it will help you avoid this fate.

Where did all the lease-to-own deals go? Despite huge demand, purchase obstacles are plenty

BY JACK GUTTENTAG, MONDAY,  Inman News®

House and keys image via Shutterstock.

Of the 700 or so articles on my website, the article accessed most frequently over the last year has been one I wrote in 2004 on lease-to-own home purchases. This is a combination lease and purchase where the renter/buyer occupies the home as a tenant but has an option to purchase it within a specified period at a specified price. I will call these "LTO" deals.

The intense interest in LTO deals today partly reflects the more restrictive and rigid mortgage qualification requirements that emerged after the financial crisis. This has created a large body of wannabe homebuyers who can't qualify for the mortgage they need to make it happen. An LTO gives them a shot.

Landlord may object to tenant subletting to tourists Rent it Right

BY JANET PORTMAN, FRIDAY,  Inman News®

San Francisco's Fisherman's Wharf image via Shutterstock.

Q: I rent an apartment in a great location in a tourist-heavy city. Frequently, big events come to town, like sports events, conventions and festivals, which attract many visitors, some of whom would prefer to live in an apartment rather than a hotel. I'm planning on moving in with a friend for a few weeks next summer and renting my place to these tourists. I can earn a lot of money from this. Besides a risk to my belongings, is there any downside to this plan? --Randy S.

Think twice before rejecting request for an extension In today's market, sellers may be wise to compromise with buyers

BY DIAN HYMER, MONDAY, MAY 21, 2012  Inman News®

Infinite time image via Shutterstock.

In some cases, your past experience will help you make a good decision about what to do in a current home-sale transaction. But if you rely only on past real estate experience to make decisions about selling a home today, you could end up with an unsatisfactory result.

The old rules, such as they were, don't always work for the current home-sale market. For example, more purchase contracts specify that time is of the essence. In other words, contingencies will be met on time.

How not to get rid of a time share Sellers: Beware of scam artists, upfront fees

BY BENNY KASS, TUESDAY, MAY 22, 2012 Inman News®

Time-share apartments image via Shutterstock.

DEAR READERS: I frequently receive questions about how to get rid of a time share. I must admit that my response thus far has been less than satisfactory. I once suggested that the time share be donated to a church or a synagogue, but several priests wrote and asked that I stop making that recommendation, because the religious groups don't want the expense or the headaches of ownership.

Other readers asked if they could just walk away, and while I reluctantly indicated that was a possibility, I warned that the time-share management could file suit to collect the moneys that were due. This obviously would impact credit ratings.

Resolving dispute over home repair estimates Buyers think sellers' contractor choices are inadequate

BY BARRY STONE, TUESDAY, MAY 22, 2012 Inman News®

Tools and money image via Shutterstock.

DEAR BARRY: We are in contract to purchase a house, and our home inspector found problems with the old steam heating system. A follow-up inspection by a heating contractor revealed a cracked boiler.

The sellers got three estimates for the work, but the expertise of these contractors is questionable, and their bids say very little about the scope of the work.

Listing syndication is not a moral issue Decisions should be based on business model, not emotions

BY GAHLORD DEWALD, WEDNESDAY, MAY 23, 2012 Inman News®

Sermon image via Shutterstock.

I was meeting with a friend of mine who works in real estate. Our conversation, as so many real estate conversations do, drifted into the whole issue of listing syndication.

You know the drill: Trulia, Zillow, Realtor.com, MLS listings on competitors' sites, and so on.

You also know the various arguments that take place around these practices. It's good for consumers. It's bad for consumers. It's good for brokers. It's bad for brokers. It's good for agents. It's bad for agents. And so on.

Refis surge as mortgage rates probe lows Demand for purchase loans lower than a year ago

BY INMAN NEWS, THURSDAY, MAY 24, 2012 Inman News®

Lightning image via Shutterstock.

Homeowners are once again rushing to refinance their mortgages as rates continue to hold at or near record lows, but demand for purchase loans is weaker than it was at this time last year.

Worries that the European debt crisis will trigger another global recession makes bonds and other conservative investments -- including the guaranteed mortgage-backed securities that fund most home loans -- look like safe havens to investors. Increased demand for those investments has pushed yields down.

Show new homes, and you'll sell more resales New-home prospects buy resales, and resale buyers buy new homes

BY DAVID FLETCHER, WEDNESDAY, MAY 23, 2012 Inman News®

New home image via Shutterstock.

General agents need to show new homes, because they will sell more resales and get more listings if they do.

About 95 percent of agents don't believe this. The other 5 percent believe it, and, because they do, they are closing sales they may have otherwise lost.

Realtor Lorraine Kuney of Re/Max Executive Realty Kuney-Todaro team in Franklin, Mass., believes it. In fact, her team is so sold on working with new-home prospects that they market directly to them. Why?

Turn clients into real estate evangelists How high standards, post-closing survey can grow your business

BY BERNICE ROSS, THURSDAY, MAY 24, 2012 Inman News®

Excited new homeowners image via Shutterstock.

Everyone wants their clients to say good things about them and their business. So what does it take to create an evangelist, as opposed to a vigilante?

In today's Web-based world, the best way to market your business is still through word of mouth. There's nothing better than having someone who loves your services singing your praises to everyone he or she meets.

There are various levels of positive word-of-mouth testimonials in the real estate industry. The most basic level includes those who like your services and will use you again. These people, however, don't actively share information about you with others.

Just say no to flaky holiday home shoppers Realtor Notebook

BY TERESA BOARDMAN, THURSDAY, MAY 24, 2012 Inman News®

Car passengers image via Shutterstock.

My stress level usually climbs a bit before major holidays, because I am working hard to tie up loose ends so I can have guilt-free time off that I can enjoy without interruptions.

Before I got my real estate license, I would never have believed that there is such thing as a "real estate emergency."

Now I know better. But I've also learned how to avoid some of the characters who roll into town on holiday weekends and want to take up all of my time before they leave, never to be heard from again.

Cashing in on Facebook's new millionaires Silicon Valley real estate already feeling effects from last week's IPO

BY STEVE BERGSMAN, FRIDAY, MAY 25, 2012 Inman News®

House built of money image via Shutterstock.

In April, Facebook Inc. picked Nasdaq over the New York Stock Exchange for its initial public offering, or IPO, as it is know in the financial world.

The selection of a stock exchange was globally watched and the decision dissected for wider import by the world's tech community. In Northern California's Silicon Valley, home to the Menlo Park-based social networking company, everything Facebook does is carefully watched, even in the real estate sector.

Tax mistake? Don't panic, amend! Real Estate Tax Talk

BY STEPHEN FISHMAN, FRIDAY, MAY 25, 2012 Inman News®

Correction image via Shutterstock.

You just filed your tax return a few weeks ago, but now you realize you made a mistake. What should you do?

Don't panic. You can always amend your return if you have to. But first, make sure you have to. You need not amend your return if you discover that you made a simple math error. These will be corrected by the IRS computers, and you'll be notified of the change by mail.

However, you should seriously consider amending your return if you paid substantially more tax than you had to -- for example, because you forgot to claim a deduction you were entitled to. If you made a mistake in your favor, failed to report income, or took deductions that you were not entitled to take, amending your return may avoid all or some fines, interest, and penalties if you're later audited by the IRS. (Top Real Estate in Rockford Illinois)

More vacation-home owners renting them out Income can help cover mortgage and taxes, or even turn a profit

BY TOM KELLY, WEDNESDAY, MAY 23, 2012 Inman News®

Vacation rental houses image via Shutterstock.

Not only are vacation-home sales on the uptick, but the percentage of purchasers who intend to rent out vacation homes to friends, family and travelers is climbing like never before.

Perhaps it's the sluggish economy, coupled with the chance to buy a bargain getaway, but 70 percent of vacation-home buyers say they plan to rent out their home in the next year, according to a survey by the National Association of Realtors.

Know when to replace your kitchen faucet Leak leads to under-sink revelation

BY BILL AND KEVIN BURNETT, WEDNESDAY, MAY 23, 2012 Inman News®

Leaky faucet image via Shutterstock.

We get a fair amount of questions that don't require a detailed answer, but deserve a response. So it's time once again to empty the question bag:

Q: I have a Moen kitchen faucet that is leaking. It is a rotating, single-handle, one-hole installation, with no plate. The leak seems to come from a rusted base under the sink and drips down the flexible tubing. Is it easy to fix?


A: Yes, but the fix is to replace the faucet. The rust is the key. The faucet's innards are shot. It's possible that some parts need replacing, but for about $100-$200 (installed yourself) you can have a new one. We say live large and go new instead of trying to repair the old one.

Q: Thanks for the tip on fixing a leaky faucet. My question is: I have a two-handle faucet that turns on and off backward. How do you fix this problem?

A: If "backward" means the valve opens when turned to the right and closes when turned to the left, there's nothing you can do to reverse the operation. This is opposite of "normal," but it's the way the faucet was designed. Top Real Estate in Rockford Illinois

Battery tech improves trimmers, chain saws Backyard cleanup has never been so efficient, quiet

BY PAUL BIANCHINA, FRIDAY, MAY 25, 2012 Inman News®

Chain saw image via Shutterstock.

Battery technology has been steadily improving in recent years, and with the coming of lithium ion, tool manufacturers have been quick to incorporate these ever lighter and more powerful batteries into tools of all types. We've become accustomed to manufacturers replacing the electrical cord with a battery in just about every conceivable shop tool, from drills and saws to lights and test equipment.

But it's only been fairly recently that batteries have become powerful enough to really make a useful dent in another arena: tools powered by gas engines. That's led to a new generation of tools for the weekend warrior and even the professional that really helps with backyard cleanup chores. Battery-powered yard tools eliminate all the starting and maintenance hassles associated with gas motors; they eliminate emissions; and they greatly reduce noise and vibration.

Must-knows when buying pet-restricted condo REThink Real Estate

BY TARA-NICHOLLE NELSON, THURSDAY, MAY 24, 2012 Inman News®

No pets allowed image via Shutterstock.

Q: I am surprised that so many condos have a "no pets" policy. How strict is this policy? For instance, I have a cat that would not go outside, so would my cat be banned also?

A: As a devoted dog mom, this is an issue that's near and dear to my heart, especially as my first dog years ago was what I call a real estate rescue.

At the time, I was a real estate broker working in a big office, and adopted my Pekinese, Mr. Chom Chom Nelson (RIP), after answering the SOS email of an agent who was selling the home of some clients who were (you guessed it!) moving out of state, to a condo that wouldn't allow pets.

Tax deductions on gifts to clients subject to 'draconian limits' Real Estate Tax Talk

BY STEPHEN FISHMAN, FRIDAY, MAY 11, 2012 Inman News®

Gift image via Shutterstock. A common practice among many real estate agents is to provide a housewarming gift when a client closes on a new house.

An agent gives clients a $100 gift card from a home improvement chain or a $100 bottle of wine. He attaches a note with the gift asking for future business and referrals accompanied by three business cards.