9/15/2013
How Foreclosures Work
You made smart decisions on the path to realizing your dream of homeownership. You prioritized your spending and saved enough money for a small down payment. Your mortgage broker was creative, accommodating and worked out a loan that fit your budget. You signed the closing papers, got the keys, moved in and settled into what you hoped would be a long stay in your home. Then the unthinkable happened. You got laid off from your job. Or maybe you or a family member had an accident that strained your finances. If you're in the National Guard, you may have gotten called into active duty, forcing you to close your business temporarily. Or perhaps your variable rate loan increased your monthly payments and your home didn't appreciate enough to refinance. All of these scenarios play out every day in real life, and the sad result can be foreclosure.
If you suddenly find that you can't afford to pay your monthly loan payment, your lender has the legal right to repossess your home and resell it to recoup the cost of the loan. Foreclosure is a legal course of action in which nobody really comes out on top. It's a stressful and unfortunate situation for the homeowner and lender alike. Many people remain in denial about their finances, making the situation worse. As unfortunate as the foreclosure process may be, there are things you can do to save your home if you're faced with it.
As the real estate bubble in the United States has begun to burst, the foreclosure rate has soared. The housing boom saw unparalleled growth from 2001 to 2005. Adjustable rate mortgages (ARMs) and subprime loans made buying a house possible for many people who never thought they had the money or credit to do so. ARMs have low initial rates that typically go much higher after the first year or two. Subprime loans allow people with poor credit to secure financing at high rates. Mortgage brokers used both of these methods to get loans secured, and many of the borrowers soon found out they couldn't afford their monthly payments.
Here are some startling foreclosure statistics in the United States, according to CNN Money:
- Nearly 1.3 million homes were foreclosed on in 2006.
- Colorado had the highest rate of foreclosure -- one out of every 376 houses.
- The total number of filings is up 43 percent from 2005.
- Real estate experts predict even more foreclosures in 2007.
The Foreclosure Process
The foreclosure process differs by state, but we can take a look at the general steps that are taken. If you're faced with foreclosure, it's important that you research your state's laws and practices.Foreclosure proceedings can begin after a single missed payment, but it isn't very likely. Most banks and lenders have a grace period for late payments, usually with a fee added on. It typically takes being a full 30 days late for the alarm bells to go off. After the second missed payment, you'll be getting some phone calls. Many lenders will only accept both late payments to bring the loan current. They also may refuse any partial payments.
Once you fall three months behind, things get serious. This is typically when most lenders will begin the foreclosure process in one of two ways: judicial sale, which requires that the process go through the court system, or power of sale, which can be carried out entirely by the mortgage holder.
All states allow judicial sale, while only 29 allow power of sale. If your state allows power of sale, the loan papers will usually have a clause that says this method will be used. Power of sale is typically faster than the judicial route. Let's look at both methods.
Judicial sale:
- The mortgage lender will file suit with the court system.
- You'll receive a letter from the court demanding payment.
- Typically, you'll have 30 days to respond with payment to avoid foreclosure.
- At the end of the payment period, a judgment will be entered and the lender can request sale of the property by auction.
- The auction is carried out by the sheriff's office, usually several months after the judgment.
- Once the property is sold, you're served with an eviction notice by the sheriff's office, and you must vacate your former home immediately.
- The mortgage lender will serve you with papers demanding payment.
- After an established waiting period, a deed of trust is drawn up that temporarily conveys the property to a trustee.
- The trustee will sell the house at public auction for the lender.
- Many times, these foreclosures are subject to judicial review to make sure everything was carried out legally.
- There is usually a requirement for the lender to post a public notice of sale for the auction.
There can also be deficiency judgments made against the borrower if the sale of the property doesn't satisfy the amount of the loan. The entire difference between the two can be required, although some states only require that difference between the fair value of the property and the loan amount be paid.
There's one more type of foreclosure that's almost completely obsolete, called strict foreclosure. In these cases, once judgment is made on the lawsuit, the property is automatically assumed by the mortgage holder. Only Connecticut and Vermont still allow this practice [source: Realty Trac].
Effects of Foreclosure
The most obvious effect of foreclosure is that you now find yourself without a home. Many people rely on family at this point to get them through the coming months. Some people are able to afford to move into an apartment while they get their finances back on track. Sadly, some people that suffer foreclosure find themselves homeless. Most states have homeless prevention programs that assist people who are down on their luck and in need of a boost. If you've been foreclosed on and have no housing options, check with your state and local department of human services to see if they can assist you.Your credit rating is another way foreclosure can affect you. While being foreclosed on does have a negative impact on your credit rating, it doesn't damage it beyond repair. Credit ratings are based on your credit history, so the foreclosure will be factored in along with everything else. If you had a good rating before you fell behind on your loan, you might be surprised at how high your credit score is after you foreclose.
The most important thing to do after foreclosure is to try and repair your credit. Make sure all your other accounts are current and paid up. You may try and secure a smaller loan -- making payments on this loan will help you repair your credit. You may even be able to secure another home mortgage at a less-than-prime rate with a large down payment.
If you've been foreclosed on, you may have trouble finding or keeping employment. Some employers require a good credit rating to get hired, and foreclosure can even be grounds for termination. Stress and depression are also common effects of foreclosure. A lack of self-esteem and self-worth are typically associated with people that have lost their homes.
The trickle down effect of foreclosure can also have a serious impact on your community. One foreclosure can ring up as much as $34,000 in local government agency bills. Trash removal, unpaid utilities, sheriff and police costs, inspections and potentially even demolition of the property all contribute to that cost. Property values also decrease near foreclosed properties. In some housing markets, up to $220,000 in reduced property value can be expected [source: Apgar, Duda, Gorey].
You can learn more about foreclosure and the housing market by looking into the links on the next page.
Foreclosure can trigger capital gains and canceled debt income
Foreclosures are treated as the sale of property for federal tax
purposes. Homeowners going through a foreclosure will need to calculate
their gain or loss for tax purposes, as well as consider any income tax
that might be due on the forgiveness or cancellation of debt. These are
two separate issues: gain on the sale of the property and imputed income
from any debt forgiveness.
In usual circumstances, the sale of real property goes through escrow, and the seller receives statements showing how much the home was sold for. With foreclosures, however, there is no escrow. The lending bank simply takes possession of the house. A foreclosure is still considered a sale, or in more technical terms, a "disposition" of property. When property is disposed of, the owner calculates any gain or loss on the transaction for tax reporting purposes.
Now the basic formula for capital gains is to subtract the basis or cost of the property from the selling price. The difference is how much profit a person made, or how much money was lost on the transaction. In a foreclosure situation, the selling price used for tax purposes isn't immediately clear because there's no escrow statements and no mutually agreed upon selling price. However, there is still a "selling price" for tax purposes: it will be either the fair market value of the property or the outstanding loan balance immediately prior to the foreclosure. Both of these figures will be reported to you by the bank using Form 1099-A. Which figure you will use depends on what state you live in and what type of loan you had.
Note that with non-recourse loans, the borrower will not have any canceled debt income, because the lender is prohibited by law from pursuing the borrower for repayment.
If the foreclosed property was mixed use (was your primary residence at one time, and was a secondary residence at another time), then you'll need to utilize the modified rules for calculating your gain or loss.
If the foreclosed property was a rental property, then you'll report the sale on Form 4797.
For non-recourse loans, there is no cancellation of debt income to be reported. That's because the lender cannot pursue the borrower for repayment of the debt, even if the fair market value of the property is less than what was owed.
In usual circumstances, the sale of real property goes through escrow, and the seller receives statements showing how much the home was sold for. With foreclosures, however, there is no escrow. The lending bank simply takes possession of the house. A foreclosure is still considered a sale, or in more technical terms, a "disposition" of property. When property is disposed of, the owner calculates any gain or loss on the transaction for tax reporting purposes.
Now the basic formula for capital gains is to subtract the basis or cost of the property from the selling price. The difference is how much profit a person made, or how much money was lost on the transaction. In a foreclosure situation, the selling price used for tax purposes isn't immediately clear because there's no escrow statements and no mutually agreed upon selling price. However, there is still a "selling price" for tax purposes: it will be either the fair market value of the property or the outstanding loan balance immediately prior to the foreclosure. Both of these figures will be reported to you by the bank using Form 1099-A. Which figure you will use depends on what state you live in and what type of loan you had.
Recourse or Non-Recourse Loans
The selling price (for tax purposes) of the property is determined by whether the loan or loans securing the property are recourse loans or non-recourse loans. According to About.com's banking and loans expert Justin Pritchard, mortgages used to acquire a house tend to be non-recourse loans, while refinanced loans and home equity loans tend to be recourse loans. Be aware that how home loans are classified depends on state lending laws. For more information, see Recourse Loans and Non-Recourse Loans. Accordingly, you will first need to determine what type of loan you had on your property. From there, you can determine the selling price. You may need to analyze your loan documents to extract the information you need for your income tax reporting.Determining the Selling Price
A recourse loan is a loan where the borrower is personally liable for the debt, and the lender can pursue repayment even after the property has been repossessed. For recourse loans, the figure used as the selling price is the lower of the following two amounts:- the outstanding loan balance immediately before the foreclosure minus any debt for which the borrower remains personally liable after the foreclosure; or
- the fair market value of the property being foreclosed.
Note that with non-recourse loans, the borrower will not have any canceled debt income, because the lender is prohibited by law from pursuing the borrower for repayment.
Reporting Capital Gain or Loss
If the foreclosed property was your primary residence, you report the foreclosure sale on your Schedule D, and you may qualify to exclude up to $250,000 of gain from income tax. If the foreclosed property was a personal use property, but not your primary residence, such as a second home or vacation home, then you'll report the foreclosure sale on your Schedule D.If the foreclosed property was mixed use (was your primary residence at one time, and was a secondary residence at another time), then you'll need to utilize the modified rules for calculating your gain or loss.
If the foreclosed property was a rental property, then you'll report the sale on Form 4797.
Canceled Debt Issues
Foreclosures can trigger taxable income besides capital gains. If the lender forgives or cancels the mortgage debt on a recourse loan, that may need to be included as income unless an exception applies. For recourse loans, the amount of debt canceled by the lender is potentially taxable income. There are a number of exceptions that exclude canceled debts from tax treatment. The most important of these is the exclusion for debt secured by your main home. Under the Mortgage Forgiveness Debt Relief Act, canceled debts of up to $2 million can be excluded as long as the debt was used to buy or build your principal residence. The Emergency Economic Stabilization Act extends this debt relief through 2012.For non-recourse loans, there is no cancellation of debt income to be reported. That's because the lender cannot pursue the borrower for repayment of the debt, even if the fair market value of the property is less than what was owed.
Tax Reporting Documents Form 1099-A and Form 1099-C
Form 1099-A is issued by the bank after real estate has been foreclosed, and reports the the date of the foreclosure, the fair market value of the property, and the outstanding loan balance immediately prior to the foreclosure. You will need this information when reporting any capital gain income related to the foreclosure. Form 1099-C is issued by the bank after the bank has canceled or forgiven any debt on a recourse loan. The form will indicate how much debt was canceled. If a lender both forecloses on a home and cancels the unpaid debt in the same year, you may receive only a single Form 1099-C that reports both the foreclosure and the cancellation of debt (instead of receiving both a 1099-A and a 1099-C).13 Tips for Selling Your Home
We’ve all heard about how “bad” the real estate market is. But
what’s bad for sellers can be good for buyers, and these days, savvy
buyers are out in spades trying to take advantage of the buyer’s market.
Here are 13 thing you can do to help sell your house.
1. Audit your agent’s online marketing. 92% of homebuyers start their house hunt online, and they will never even get in the car to come see your home if the online listings aren’t compelling. In real estate, compelling means pictures! A study by Trulia.com shows that listings with more than 6 pictures are twice as likely to be viewed by buyers as listings that had fewer than 6 pictures.
2. Post a video love letter about your home on YouTube. Get a $125 FlipCam and walk through your home AND your neighborhood, telling prospective buyers about the best bits – what your family loved about the house, your favorite bakery or coffee shop that you frequented on Saturday mornings, etc. Buyers like to know that a home was well-loved, and it helps them visualize living a great life there, too.
Plus: 13 Moving Tips to Keep in Mind\
3. Let your neighbors choose their neighbors. If you belong to neighborhood online message boards or email lists, send a link to your home’s online listing to your neighbors. Also, invite your neighbors to your open house – turn it into a block party. That creates opportunities for your neighbors to sell the neighborhood to prospective buyers and for your neighbors to invite house hunters they know who have always wanted to live in the area.
4. Facebook your home’s listing. Facebook is the great connector of people these days. If you have 200 friends and they each have 200 friends, imagine the power of that network in getting the word out about your house!
5. Leave some good stuff behind. We’ve all heard about closing cost credits, but those are almost so common now that buyers expect them – they don’t really distinguish your house from any of the other homes on the market anymore. What can distinguish your home is leaving behind some of your personal property, ideally items that are above and beyond what the average homebuyer in your home’s price range would be able to afford. That may be stainless steel kitchen appliances or a plasma screen TV, or it might be a golf cart if your home is on a golf course.
6. Beat the competition with condition. In many markets, much of the competition is low-priced foreclosures and short sales. As an individual homeowner, the way you can compete is on condition. Consider having a termite inspection in advance of listing your home, and get as many of the repairs done as you can – it’s a major selling point to be able to advertise a very low or non-existent pest repair bill. Also, make sure that the little nicks and scratches, doorknobs that don’t work, and wonky handles are all repaired before you start showing your home.
Plus: 5 Easy Improvements to Hook a Buyer For Your Home
7. Stage the exterior of your home too. Stage the exterior with fresh paint, immaculate landscaping and even outdoor furniture to set up a Sunday brunch on the deck vignette. Buyers often fantasize about enjoying their backyards by entertaining and spending time outside.
8. Access is essential. Homes that don’t get shown don’t get sold. And many foreclosures and short sale listings are vacant, so they can be shown anytime. Don’t make it difficult for agents to get their clients into your home – if they have to make appointments way in advance, or can only show it during a very restrictive time frame, they will likely just cross your place off the list and go show the places that are easy to get into.
9. Get real about pricing. Today’s buyers are very educated about the comparable sales in the area, which heavily influence the fair market value of your home. And they also know that they’re in the driver’s seat. To make your home competitive, have your broker or agent get you the sales prices of the three most similar homes that have sold in your area in the last month or so, then try to go 10-15% below that when you set your home’s list price. The homes that look like a great deal are the ones that get the most visits from buyers and, on occasion even receive multiple offers. (Bidding wars do still exist!)
10. Get clued into your competition. Work with your broker or agent to get educated about the price, type of sale and condition of the other homes your home is up against. Attend some open houses in your area and do a real estate reality check: know that buyers that see your home will see those homes, too – make sure the real-time comparison will come out in your home’s favor by ensuring the condition of your home is up to par.
11. De-personalize. Do this – pretend you’re moving out. Take all the things that make your home “your” personal sanctuary (e.g., family photos, religious décor and kitschy memorabilia), pack them up and put them in storage. Buyers want to visualize your house being their house – and it’s difficult for them to do that with all your personal items marking the territory as yours.
12. De-clutter. Keep the faux-moving in motion. Pack up all your tchotchkes, anything that is sitting on top of a countertop, table or other flat surfaces. Anything that you haven’t used in at least a year? That goes, too. Give away what you can, throw away as much as possible of what remains, and then pack the rest to get it ready to move.
13. Listen to your agent. If you find an experienced real estate agent to list your home, who has a successful track record of selling homes in your area, listen to their recommendations! Find an agent you trust and follow their advice as often as you can.
1. Audit your agent’s online marketing. 92% of homebuyers start their house hunt online, and they will never even get in the car to come see your home if the online listings aren’t compelling. In real estate, compelling means pictures! A study by Trulia.com shows that listings with more than 6 pictures are twice as likely to be viewed by buyers as listings that had fewer than 6 pictures.
2. Post a video love letter about your home on YouTube. Get a $125 FlipCam and walk through your home AND your neighborhood, telling prospective buyers about the best bits – what your family loved about the house, your favorite bakery or coffee shop that you frequented on Saturday mornings, etc. Buyers like to know that a home was well-loved, and it helps them visualize living a great life there, too.
Plus: 13 Moving Tips to Keep in Mind\
3. Let your neighbors choose their neighbors. If you belong to neighborhood online message boards or email lists, send a link to your home’s online listing to your neighbors. Also, invite your neighbors to your open house – turn it into a block party. That creates opportunities for your neighbors to sell the neighborhood to prospective buyers and for your neighbors to invite house hunters they know who have always wanted to live in the area.
4. Facebook your home’s listing. Facebook is the great connector of people these days. If you have 200 friends and they each have 200 friends, imagine the power of that network in getting the word out about your house!
5. Leave some good stuff behind. We’ve all heard about closing cost credits, but those are almost so common now that buyers expect them – they don’t really distinguish your house from any of the other homes on the market anymore. What can distinguish your home is leaving behind some of your personal property, ideally items that are above and beyond what the average homebuyer in your home’s price range would be able to afford. That may be stainless steel kitchen appliances or a plasma screen TV, or it might be a golf cart if your home is on a golf course.
6. Beat the competition with condition. In many markets, much of the competition is low-priced foreclosures and short sales. As an individual homeowner, the way you can compete is on condition. Consider having a termite inspection in advance of listing your home, and get as many of the repairs done as you can – it’s a major selling point to be able to advertise a very low or non-existent pest repair bill. Also, make sure that the little nicks and scratches, doorknobs that don’t work, and wonky handles are all repaired before you start showing your home.
Plus: 5 Easy Improvements to Hook a Buyer For Your Home
7. Stage the exterior of your home too. Stage the exterior with fresh paint, immaculate landscaping and even outdoor furniture to set up a Sunday brunch on the deck vignette. Buyers often fantasize about enjoying their backyards by entertaining and spending time outside.
8. Access is essential. Homes that don’t get shown don’t get sold. And many foreclosures and short sale listings are vacant, so they can be shown anytime. Don’t make it difficult for agents to get their clients into your home – if they have to make appointments way in advance, or can only show it during a very restrictive time frame, they will likely just cross your place off the list and go show the places that are easy to get into.
9. Get real about pricing. Today’s buyers are very educated about the comparable sales in the area, which heavily influence the fair market value of your home. And they also know that they’re in the driver’s seat. To make your home competitive, have your broker or agent get you the sales prices of the three most similar homes that have sold in your area in the last month or so, then try to go 10-15% below that when you set your home’s list price. The homes that look like a great deal are the ones that get the most visits from buyers and, on occasion even receive multiple offers. (Bidding wars do still exist!)
10. Get clued into your competition. Work with your broker or agent to get educated about the price, type of sale and condition of the other homes your home is up against. Attend some open houses in your area and do a real estate reality check: know that buyers that see your home will see those homes, too – make sure the real-time comparison will come out in your home’s favor by ensuring the condition of your home is up to par.
11. De-personalize. Do this – pretend you’re moving out. Take all the things that make your home “your” personal sanctuary (e.g., family photos, religious décor and kitschy memorabilia), pack them up and put them in storage. Buyers want to visualize your house being their house – and it’s difficult for them to do that with all your personal items marking the territory as yours.
12. De-clutter. Keep the faux-moving in motion. Pack up all your tchotchkes, anything that is sitting on top of a countertop, table or other flat surfaces. Anything that you haven’t used in at least a year? That goes, too. Give away what you can, throw away as much as possible of what remains, and then pack the rest to get it ready to move.
13. Listen to your agent. If you find an experienced real estate agent to list your home, who has a successful track record of selling homes in your area, listen to their recommendations! Find an agent you trust and follow their advice as often as you can.
Most Important 10 Best-Kept Secrets for Selling Your Home
Selling Secret #10: Pricing it right
Find out what your home is worth, then shave 15 to 20 percent off the price. You’ll be stampeded by buyers with multiple bids — even in the worst markets — and they’ll bid up the price over what it’s worth. It takes real courage and most sellers just don’t want to risk it, but it’s the single best strategy to sell a home in today’s market.
Selling Secret #9: Half-empty closets
Storage is something every buyer is looking for and can never have enough of. Take half the stuff out of your closets then neatly organize what’s left in there. Buyers will snoop, so be sure to keep all your closets and cabinets clean and tidy.
Selling Secret #8: Light it up
Maximize the light in your home. After location, good light is the one thing that every buyer cites that they want in a home. Take down the drapes, clean the windows, change the lampshades, increase the wattage of your light bulbs and cut the bushes outside to let in sunshine. Do what you have to do make your house bright and cheery – it will make it more sellable.
Selling Secret #7: Play the agent field
A secret sale killer is hiring the wrong broker. Make sure you have a broker who is totally informed. They must constantly monitor the multiple listing service (MLS), know what properties are going on the market and know the comps in your neighborhood. Find a broker who embraces technology – a tech-savvy one has many tools to get your house sold.
Selling Secret #6: Conceal the critters
You might think a cuddly dog would warm the hearts of potential buyers, but you’d be wrong. Not everybody is a dog- or cat-lover. Buyers don’t want to walk in your home and see a bowl full of dog food, smell the kitty litter box or have tufts of pet hair stuck to their clothes. It will give buyers the impression that your house is not clean. If you’re planning an open house, send the critters to a pet hotel for the day.
Selling Secret #5: Don’t over-upgrade
Quick fixes before selling always pay off. Mammoth makeovers, not so much. You probably won’t get your money back if you do a huge improvement project before you put your house on the market. Instead, do updates that will pay off and get you top dollar. Get a new fresh coat of paint on the walls. Clean the curtains or go buy some inexpensive new ones. Replace door handles, cabinet hardware, make sure closet doors are on track, fix leaky faucets and clean the grout.
Selling Secret #4: Take the home out of your house
One of the most important things to do when selling your house is to de-personalize it. The more personal stuff in your house, the less potential buyers can imagine themselves living there. Get rid of a third of your stuff – put it in storage. This includes family photos, memorabilia collections and personal keepsakes. Consider hiring a home stager to maximize the full potential of your home. Staging simply means arranging your furniture to best showcase the floor plan and maximize the use of space.
Selling Secret #3: The kitchen comes first
You’re not actually selling your house, you’re selling your kitchen – that’s how important it is. The benefits of remodeling your kitchen are endless, and the best part of it is that you’ll probably get 85% of your money back. It may be a few thousand dollars to replace countertops where a buyer may knock $10,000 off the asking price if your kitchen looks dated. The fastest, most inexpensive kitchen updates include painting and new cabinet hardware. Use a neutral-color paint so you can present buyers with a blank canvas where they can start envisioning their own style. If you have a little money to spend, buy one fancy stainless steel appliance. Why one? Because when people see one high-end appliance they think all the rest are expensive too and it updates the kitchen.
Selling Secret #2: Always be ready to show
Your house needs to be "show-ready" at all times – you never know when your buyer is going to walk through the door. You have to be available whenever they want to come see the place and it has to be in tip-top shape. Don’t leave dishes in the sink, keep the dishwasher cleaned out, the bathrooms sparkling and make sure there are no dust bunnies in the corners. It’s a little inconvenient, but it will get your house sold.
Selling Secret #1: The first impression is the only impression
No matter how good the interior of your home looks, buyers have already judged your home before they walk through the door. You never have a second chance to make a first impression. It’s important to make people feel warm, welcome and safe as they approach the house. Spruce up your home’s exterior with inexpensive shrubs and brightly colored flowers. You can typically get a 100-percent return on the money you put into your home’s curb appeal. Entryways are also important. You use it as a utility space for your coat and keys. But, when you’re selling, make it welcoming by putting in a small bench, a vase of fresh-cut flowers or even some cookies.
Find out what your home is worth, then shave 15 to 20 percent off the price. You’ll be stampeded by buyers with multiple bids — even in the worst markets — and they’ll bid up the price over what it’s worth. It takes real courage and most sellers just don’t want to risk it, but it’s the single best strategy to sell a home in today’s market.
Selling Secret #9: Half-empty closets
Storage is something every buyer is looking for and can never have enough of. Take half the stuff out of your closets then neatly organize what’s left in there. Buyers will snoop, so be sure to keep all your closets and cabinets clean and tidy.
Selling Secret #8: Light it up
Maximize the light in your home. After location, good light is the one thing that every buyer cites that they want in a home. Take down the drapes, clean the windows, change the lampshades, increase the wattage of your light bulbs and cut the bushes outside to let in sunshine. Do what you have to do make your house bright and cheery – it will make it more sellable.
Selling Secret #7: Play the agent field
A secret sale killer is hiring the wrong broker. Make sure you have a broker who is totally informed. They must constantly monitor the multiple listing service (MLS), know what properties are going on the market and know the comps in your neighborhood. Find a broker who embraces technology – a tech-savvy one has many tools to get your house sold.
Selling Secret #6: Conceal the critters
You might think a cuddly dog would warm the hearts of potential buyers, but you’d be wrong. Not everybody is a dog- or cat-lover. Buyers don’t want to walk in your home and see a bowl full of dog food, smell the kitty litter box or have tufts of pet hair stuck to their clothes. It will give buyers the impression that your house is not clean. If you’re planning an open house, send the critters to a pet hotel for the day.
Selling Secret #5: Don’t over-upgrade
Quick fixes before selling always pay off. Mammoth makeovers, not so much. You probably won’t get your money back if you do a huge improvement project before you put your house on the market. Instead, do updates that will pay off and get you top dollar. Get a new fresh coat of paint on the walls. Clean the curtains or go buy some inexpensive new ones. Replace door handles, cabinet hardware, make sure closet doors are on track, fix leaky faucets and clean the grout.
Selling Secret #4: Take the home out of your house
One of the most important things to do when selling your house is to de-personalize it. The more personal stuff in your house, the less potential buyers can imagine themselves living there. Get rid of a third of your stuff – put it in storage. This includes family photos, memorabilia collections and personal keepsakes. Consider hiring a home stager to maximize the full potential of your home. Staging simply means arranging your furniture to best showcase the floor plan and maximize the use of space.
Selling Secret #3: The kitchen comes first
You’re not actually selling your house, you’re selling your kitchen – that’s how important it is. The benefits of remodeling your kitchen are endless, and the best part of it is that you’ll probably get 85% of your money back. It may be a few thousand dollars to replace countertops where a buyer may knock $10,000 off the asking price if your kitchen looks dated. The fastest, most inexpensive kitchen updates include painting and new cabinet hardware. Use a neutral-color paint so you can present buyers with a blank canvas where they can start envisioning their own style. If you have a little money to spend, buy one fancy stainless steel appliance. Why one? Because when people see one high-end appliance they think all the rest are expensive too and it updates the kitchen.
Selling Secret #2: Always be ready to show
Your house needs to be "show-ready" at all times – you never know when your buyer is going to walk through the door. You have to be available whenever they want to come see the place and it has to be in tip-top shape. Don’t leave dishes in the sink, keep the dishwasher cleaned out, the bathrooms sparkling and make sure there are no dust bunnies in the corners. It’s a little inconvenient, but it will get your house sold.
Selling Secret #1: The first impression is the only impression
No matter how good the interior of your home looks, buyers have already judged your home before they walk through the door. You never have a second chance to make a first impression. It’s important to make people feel warm, welcome and safe as they approach the house. Spruce up your home’s exterior with inexpensive shrubs and brightly colored flowers. You can typically get a 100-percent return on the money you put into your home’s curb appeal. Entryways are also important. You use it as a utility space for your coat and keys. But, when you’re selling, make it welcoming by putting in a small bench, a vase of fresh-cut flowers or even some cookies.
9/13/2013
The Price of Real-Estate Experience: $25,000
Can you put a price on experience? In real estate, you can. It is about $25,000 for the average house.
Veteran agents sell homes for an average of 12% more than their less experienced counterparts, says Bennie Waller, professor of finance and real estate at Longwood University in Farmville, Va. Veteran agents also tend to list more new properties, more townhouses and condominiums and larger properties.
Two-thirds of properties listed by veteran agents sold, while only half of properties listed by rookies did.
"The
more experience you have, the more likely you are to sell the properties
that you list, the more likely you are to sell it at a higher price and
the less time it stays on the market," Prof. Waller says.
Prof. Waller, along with Ali Jubran, a student at Longwood University at the time, examined 10,065 real-estate listings in a mid-Atlantic multiple-listing service from March 1999 to July 2009. They divided the listings into three groups—ones listed by agents who have been licensed for two years or less (called rookies), agents who have been licensed for two to 10 years and agents who have been licensed for 10 years or more (called veterans). They controlled for property characteristics such as size and location to isolate the "experience variable," and then compared the results for rookies and veterans. The study was published in the Journal of Housing Research in May 2012.
Prof. Waller became interested in quantifying experience when he noticed an increasing number of agents who chose not to renew their licenses after two years. Real estate has "very, very, very low barriers to entry," he says. But brokers then face a steep learning curve and many struggle to reach a level of expertise that is profitable, he adds.
Two-thirds of properties listed by veteran agents sold, while only half of properties listed by rookies did. That may be because rookie agents have to be more flexible in picking up listings, even if the chances of selling are low.
"If a house is priced ridiculously, they might say, 'Fine, I'll take the listing,' " Prof. Waller says.
Generally, experienced agents have greater knowledge of the neighborhoods and a larger network of buyers and sellers, as well as relationships with home inspectors, appraisers and mortgage brokers.
For some, confidence comes with time. James Stroupe, a real-estate agent at Realogics Sotheby's International Realty in Seattle, says he used to take listings priced above-market, but now, with nearly 20 years of experience under his belt, he isn't afraid to suggest an alternative price.
![[image]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_v8t2NcPNBbNu5rAjeiBNO3ciocKAtbUkm7-sQlP3M4XRl419dg0kL7O5IwNA7fxHIiz7gLz6Ru61R4Ejl7NrmEWkA1OJPWeP5U0v7NIPhnRzx9PmbBzsefOwxzo45syy3F9lJImn4DhK5oNH5mi0Ix=s0-d)
And then
there are the lessons learned. Michael Rankin, principal and managing
partner of TTR Sotheby's International Realty in Washington, D.C., began
selling real estate right out of college, so he faced the twin pitfalls
of inexperience and youth.
"I would meet people and say I'm a real-estate agent. They would joke and say, 'I've got children older than you. Are you sure you're a real-estate agent?' " he says.
Mr. Rankin says he didn't get referrals until his third year in the business. Referrals now make up about 70% of his sales. His listings stock also has changed dramatically. In his 20s, his average sale price was about $300,000 to $400,000. Now, it is more than $2 million.
Experience taught him how to deal with consumer behavior. "Residential real estate is really an emotional transaction. I don't think I was prepared for any of it. It's about understanding and knowing people. That, to me, is what an experienced broker brings to the table," he says.
When Pamela J. Hagan first began practicing real estate about 30 years ago, she had a listing that just wouldn't sell. After zero offers in eight months, she asked a more experienced agent to help. "We tweaked the price and staged it properly, removed clutter and everything. I just didn't think of that when I was new," says Ms. Hagan, of Century 21 Beggins Enterprises in Longboat Key, Fla. "After we got it all set up and dropped the price, we sold it within 30 days."
Veteran agents sell homes for an average of 12% more than their less experienced counterparts, says Bennie Waller, professor of finance and real estate at Longwood University in Farmville, Va. Veteran agents also tend to list more new properties, more townhouses and condominiums and larger properties.
Two-thirds of properties listed by veteran agents sold, while only half of properties listed by rookies did.
Prof. Waller, along with Ali Jubran, a student at Longwood University at the time, examined 10,065 real-estate listings in a mid-Atlantic multiple-listing service from March 1999 to July 2009. They divided the listings into three groups—ones listed by agents who have been licensed for two years or less (called rookies), agents who have been licensed for two to 10 years and agents who have been licensed for 10 years or more (called veterans). They controlled for property characteristics such as size and location to isolate the "experience variable," and then compared the results for rookies and veterans. The study was published in the Journal of Housing Research in May 2012.
Prof. Waller became interested in quantifying experience when he noticed an increasing number of agents who chose not to renew their licenses after two years. Real estate has "very, very, very low barriers to entry," he says. But brokers then face a steep learning curve and many struggle to reach a level of expertise that is profitable, he adds.
Two-thirds of properties listed by veteran agents sold, while only half of properties listed by rookies did. That may be because rookie agents have to be more flexible in picking up listings, even if the chances of selling are low.
"If a house is priced ridiculously, they might say, 'Fine, I'll take the listing,' " Prof. Waller says.
Generally, experienced agents have greater knowledge of the neighborhoods and a larger network of buyers and sellers, as well as relationships with home inspectors, appraisers and mortgage brokers.
For some, confidence comes with time. James Stroupe, a real-estate agent at Realogics Sotheby's International Realty in Seattle, says he used to take listings priced above-market, but now, with nearly 20 years of experience under his belt, he isn't afraid to suggest an alternative price.
"I would meet people and say I'm a real-estate agent. They would joke and say, 'I've got children older than you. Are you sure you're a real-estate agent?' " he says.
Mr. Rankin says he didn't get referrals until his third year in the business. Referrals now make up about 70% of his sales. His listings stock also has changed dramatically. In his 20s, his average sale price was about $300,000 to $400,000. Now, it is more than $2 million.
Experience taught him how to deal with consumer behavior. "Residential real estate is really an emotional transaction. I don't think I was prepared for any of it. It's about understanding and knowing people. That, to me, is what an experienced broker brings to the table," he says.
When Pamela J. Hagan first began practicing real estate about 30 years ago, she had a listing that just wouldn't sell. After zero offers in eight months, she asked a more experienced agent to help. "We tweaked the price and staged it properly, removed clutter and everything. I just didn't think of that when I was new," says Ms. Hagan, of Century 21 Beggins Enterprises in Longboat Key, Fla. "After we got it all set up and dropped the price, we sold it within 30 days."
9/11/2013
9/08/2013
Warrants detail real estate scam conspiracy charges
Three New Canaan residents recently arrested for their alleged
involvement in a real estate conspiracy scheme in town are scheduled to
appear in Stamford Court on Wednesday, Sept. 18. Pleas have not yet been
made.The three residents — Ruth Jones, Adam Jones and Lynda Silvestro — turned themselves in to police on Monday, Aug. 19, after learning of warrants for their arrest for involvement in what police said appears to be a real estate scam.
Ruth Jones, 56, was charged with first degree larceny, conspiracy to commit first degree larceny, third-degree burglary and second-degree forgery.
Silvestro, 55, was charged with first-degree larceny, making a false statement in the second degree, and first degree conspiracy to commit larceny.
Adam Jones
All three are out on $50,000 bonds. They were due in Norwalk court last Thursday, Aug. 29, but their cases were continued to Sept. 18.
“There was no larceny, no forgery, no burglary and no conspiracy,” Mike Paul, president of MGP & Associates PR, speaking on behalf of Ruth Jones, told the Advertiser. “These are false allegations. The fact is this is a civil matter which is already pending in civil court with a lawsuit against Jennifer Hilton and the estate of her late father, John Hilton. Please look it up for important details.
Lynda Silvestro
An “illegal” rental
According to police, on Nov. 6, 2012, a 54-year-old woman who was renting a home on Braeburn Drive reported to police she suspected fraudulent activity. She was renting the home from New Canaan real estate agent Ruth Jones.
The complainant told police she signed a lease to rent last August 2012 and that her agreed upon rent was $6,000 a month. According to police, she paid Jones $24,000 for a security deposit and for two months’ worth of rent.
Jones, who police say was hired as a real estate agent to try to sell this house, had a six-month contract with the owner of the estate, who lives out of state. She was hired May 27, 2011, and the contract expired on Nov. 27, 2011. According to an arrest warrant for Ruth Jones, the deal was to list the home at $795,000. After the home did not sell during that time-frame, attorneys for the estate opted not to enter into another contract with Jones, police said.
According to police, Jones had a potential buyer, but that deal fell through. Police said she had no legal right to continue showing the house after November 2011, when the contract expired.
According to police, Jones rented out the house to the eventual complainant. Jones also told the complainant that if anyone asked if she was renting the home to tell them she was an interior decorator.
At some point, according to police, Jones asked for a lease agreement change, and Silvestro, who is listed as a principal at Property Management LLC on Locust Avenue, signed a lease as one of the landlords, as did Jones’s son, Adam. At that time, the elder Jones told the renter that Silvestro planned on buying the home.
After the first potential buyer’s deal fell through, police said one of the estate’s attorneys was contacted and told that Silvestro wanted to buy the home. According to police, Silvestro put a deposit of $30,000 on the house in September 2012. Later that month, when she was supposed to close, the deal fell through. According to police, Silvestro wanted to try to buy the house again and put down an additional $50,000 deposit, and this time her husband, Santo Silvestro, was on the contract with her. The Silvestros signed that contract with a new closing date of Nov. 1, 2012, police said.
At the end of October, before the Nov. 1 closing date, one of the attorneys for the estate drove by to see what kind of damage was caused to the house by Hurricane Sandy. Two attorneys for the estate saw evidence that someone was living in the home. According to police, the estate’s attorneys asked Ruth Jones’s attorney why someone was living in the house. Police said she told them that someone was living in the home in order to stage the home for a sale.
According to an arrest warrant, the estate’s attorneys were “curious as to why a home would be staged with children’s toys strewn about, dirty dishes in the sink, toothpaste on the counter in the bathroom, and two dogs playing in the yard.”
On Nov. 2, 2012, a locksmith and one of the estate’s attorneys came to change the locks, and the complainant, who was still renting, told them she was renting the house for $6,000 a month and that Jones was her Realtor. She provided the attorney with a copy of the lease agreement, according to an arrest warrant, and the two decided that the police should be notified.
According to the warrant, while the attorney was speaking with the complainant at the home, Ruth Jones called the complainant and the attorney advised her to let it go to voice mail. In the message, Ruth Jones scolds the complainant for showing the attorney the lease and explained that the lease needed to be altered.
“It was for you,” Ruth Jones says in the message, which police downloaded from the renter’s phone. “It was for you and your divorce and to get your kid into school. OK. You’re worried about lying, what about asking for a bogus lease on White Oak Shade so I can rebate you some money so you can charge your ex-husband more money … I was asking you not to have contact with anybody. I was asking you because we need to alter the lease as it stands because as of Monday there was no heat and hot water and full occupancy.”
That same day, according to the warrant, in a mobile phone text correspondence between the two, Ruth Jones asks the complainant why she had done that. “I have tried to help you and you just completely f—– Lynda, Santo and Me ?? Great Friend,” Jones wrote in a text.
“A locksmith came ready to change the locks,” the complainant responded. “Had I not been there with proof that I was a paying tenant, [child’s name] and I would have been locked out of our home. Talk about friends. I am over $35,000 into a home that you told me you owned. I hope someone is ready to write me back a big check. I don’t need this crap.”
According to the warrant, Jones told the complainant that she had never owned the house. “I told you I was selling the house and managing the house and renovation. I helped you and you are completely out of control,” Jones wrote.
The complainant wrote back: “You never told me the truth about the house and certainly led me to believe you were one of the owners,” according to the warrant.
The estate’s attorneys told police that there was never an agreement that gave Ruth Jones the authority to act as property manager, or to rent the house.
Former potential buyer
Police contacted the woman who was first going to buy the home and then renovate it for future resale. According to the warrant, she told police she had permission to renovate the residence. She said she had invested $175,000 of her money and that Jones was also going to invest.
The plan, according to the warrant, was Jones was supposed to sell the property then close the deal with the estate. When that deal was done, she would recover her $175,000 investment and split the profits with Ruth Jones.
The woman told police that she backed out of the deal because she needed the capital to fund her own business. She also told police she had not yet been paid back her $175,000. She also told police that she knew a new investor, Lynda Silvestro, was supposed to take over.
On Nov. 27, 2012, according to the warrant, Ruth Jones was actively showing the home on her website in February 2012 and August 2012 and that the home was listed for sale for $1,369,000 in February and then again in August 2012 at the same price. In addition, in August 2012, the home was listed on her website for rent for $6,500 per month.
“This is clearly outside the dates of her exclusive contract and without authorization from the Hiltons or the Hilton estate,” the warrant states.
Silvestro’s alleged role
According to police, Silvestro put a deposit of $30,000 down on the house in September 2012, but the deal fell through. Later on, Silvestro wanted to try to buy the house again and put down an additional $50,000 deposit, and this time her husband, Santo Silvestro, was on the contract with her. The Silvestros signed that contract with a new closing date of Nov. 1, 2012, police said.
When Silvestro and Adam Jones signed their names to the rental agreement, according to police, Silvestro first told police that the signature on the lease was not hers and that it was forged. Police said her $30,000 was being managed from Property Management LLC account then deposited into another account. Police also said that based on an agreement between Property Management and Jones, that Jones had permission to sign Silvestro’s name.
According to Silvestro’s arrest warrant, the second time she was summoned to speak with police, Silvestro said she had been doing her own investigation and found that one of the attorneys for the estate had been having an affair with the renter and that he “stands to make a lot of money in the deal.”
Silvestro, who police said wanted nothing to do with the deal after the first interview, changed her mind after she said she thought about the first potential buyer losing all the money she invested in the property to fix it up. According to the warrant, she told police she wanted to do the right thing.
In addition, Silvestro told police during the second interview that when she found out the $24,000 was still in the Property Management account, she wire transferred the money to Attorney Ed Gavin’s office. According to the warrant, she stated that she “told Gavin to ‘give it to the police’ or ‘return it to Hilton’ just do whatever he needed to do with the money.”
Officer Kevin P. Casey, who has been investigating this case, said he explained to Silvestro that he had conflicting information that says Silvestro told Gavin to hold the money in escrow until a joint agreement is reached or the court orders him to dispense the money.
“I explained to Lynda Silvestro that taking control of the $24,000 that are proceeds from a larceny and instructing that they be withheld could open her up to criminal liability in this case,” Casey wrote in the warrant.
According to the warrant, she told Casey she did that because she is a principal of Property Management and she wanted to get the money out of the account so someone could decide what to do with it later.
According to the warrant, as of Jan. 6, 2013, Silvestro’s attorney still maintains control over the money at Silvestro’s request and none of the money has been returned or attempted to be returned to the Hilton estate.
Regarding Silvestro’s signature on the lease, she at first told police that it was forgery in her sworn statement, but when police asked if that was still the case, Silvestro said she never said it was forgery, but that her name was spelled incorrectly. Police then asked her if Ruth Jones had the authority to sign her name, and, according to the warrant, she stated “yes.” Casey asked Silvestro why she didn’t tell police that, and she stated she forgot, according to the warrant.
Casey eventually told Silvestro there were a lot of conflicting statements based on what she said in both interviews. According to the warrant, Casey asked her to provide another sworn statement. She asked him if she could take it home and write it. He said she could, but that she had to get it back later that day and that it had to be signed and sworn in front of an officer.
As of Jan. 6, 2013, Casey reported in the warrant that Silvestro had not provided any additional sworn statements.
American Real Estate Radio Show Interviews Credit Repair Expert
American Real Estate Radio Show Interviews Credit Repair Expert
The American Real Estate Investors Academy radio show just completed an interview with credit repair expert Paul Ritter. Audio replay of the show is available on the radio show homepage.
9/05/2013
Three fired after state rental voucher probe
Three employees at a regional nonprofit housing agency were fired
last week after state investigators found they exploited a lack of
oversight within the organization in order to give a half-dozen highly
coveted low-income rental vouchers to friends and relatives ahead of the
general public.
State Department of Housing and Community Development officials also found that in two of the cases, the families were benefiting from additional low-income housing funds even though South Shore Housing Development Corporation lacked proper documentation to determine their eligibility.
“These deficiencies are systemic, and expose the agency to a wide range of vulnerabilities,” wrote Lizbeth Heyer, associate director at the state housing department, in a memo to the agency’s executive director, Carl Nagy-Koechlin.
As a result of the irregularities uncovered during the monthlong investigation, state officials will launch a complete audit of the Kingston-based agency this month and will review and approve job descriptions and qualifications for senior managers involved in administering state-funded programs.
A review of the state’s eight other regional nonprofit housing
agencies launched after the allegations surfaced found no improprieties,
according to state housing officials.
“We’re in a moving-forward mode,” Nagy-Koechlin said. “We learned from the incident that there are some steps we need to take to make sure we’re administering these scarce resources fairly. We fell short of that.”
The three South Shore Housing Development Corporation employees had been on paid administrative leave since late July when an agency employee tipped off Nagy-Koechlin and the state to the misappropriated vouchers that had been awarded during a two-year period. The six families had a “direct relationship” between the three employees and a senior manager, according to the state investigation.
The agency’s senior manager, who had been with the agency for more than a decade, resigned in July immediately after being confronted with the allegations. The nonprofit refused to release the names of the four former employees.
State investigators faulted the agency, which did not have a waiting list in place for rental vouchers, for failing to comply with a state directive to instead use other state housing waiting lists when issuing new vouchers. As a result, “the general public did not have equal and fair access to these program resources,” Heyer stated in the memo. She added that at the core of the problem were “systemic lapses in internal controls in the overall administration and oversight of benefits.”
Other deficiencies highlighted by investigators included the agency’s “inadequate oversight” of middle management and a lack of emphasis for employees of its conflict-of-interest policy.
Michael McGowan, president of the agency’s board of directors, said he is pleased the investigation confirmed that the incident was limited to the six families and four employees. He said the board has been meeting regularly on the matter to make sure it never happens again.
“We’re going to be focused on improved oversight,” McGowan said. “We talked about the process relating to the policy of conflict of interests and housing services and making sure that those policies that we have in place are strengthened.”
Despite their unfair advantage, the six families were found to have met the income criteria necessary to receive the rental vouchers. One of those families had yet to find housing, and voluntarily returned its voucher when informed of the allegations, Nagy-Koechlin said.
The investigation uncovered that two of the families were also receiving state transitional housing assistance funds, even though the agency lacked documentation verifying their eligibility. Nagy-Koechlin said he was caught by surprise by that finding, but he has since checked and determined that the two families are eligible for the program aimed at preventing homelessness.
Currently, the families are being allowed to keep their vouchers and benefits, but if the ongoing investigation finds that they were complicit or knew about the misappropriation, then the state would take additional action, said Matthew Sheaff, Housing and Community Development spokesman.
He added the state has a range of options, including stopping the benefits.
Since the investigation, Nagy-Koechlin said he has met with staff to review the code of conduct and ethics outlined in the employee manual, “and to hammer home the profound responsibility we have to administer these scarce resources fairly and transparently.”
“It just takes one incident like this to shake people’s confidence in the procedure,” he said. “We need to live by high standards.”
State Department of Housing and Community Development officials also found that in two of the cases, the families were benefiting from additional low-income housing funds even though South Shore Housing Development Corporation lacked proper documentation to determine their eligibility.
“These deficiencies are systemic, and expose the agency to a wide range of vulnerabilities,” wrote Lizbeth Heyer, associate director at the state housing department, in a memo to the agency’s executive director, Carl Nagy-Koechlin.
As a result of the irregularities uncovered during the monthlong investigation, state officials will launch a complete audit of the Kingston-based agency this month and will review and approve job descriptions and qualifications for senior managers involved in administering state-funded programs.
A freeze implemented in July on the agency’s ability
to issue new rental vouchers will continue through the audit period.
The regional nonprofit administers about 4,000 housing-assistance
vouchers through various state and federal programs in 62 communities in
Bristol and Plymouth counties. The misappropriation did not involve
federally funded housing benefits.
‘It just takes one incident like this to shake people’s confidence.’
“We’re in a moving-forward mode,” Nagy-Koechlin said. “We learned from the incident that there are some steps we need to take to make sure we’re administering these scarce resources fairly. We fell short of that.”
The three South Shore Housing Development Corporation employees had been on paid administrative leave since late July when an agency employee tipped off Nagy-Koechlin and the state to the misappropriated vouchers that had been awarded during a two-year period. The six families had a “direct relationship” between the three employees and a senior manager, according to the state investigation.
The agency’s senior manager, who had been with the agency for more than a decade, resigned in July immediately after being confronted with the allegations. The nonprofit refused to release the names of the four former employees.
State investigators faulted the agency, which did not have a waiting list in place for rental vouchers, for failing to comply with a state directive to instead use other state housing waiting lists when issuing new vouchers. As a result, “the general public did not have equal and fair access to these program resources,” Heyer stated in the memo. She added that at the core of the problem were “systemic lapses in internal controls in the overall administration and oversight of benefits.”
Other deficiencies highlighted by investigators included the agency’s “inadequate oversight” of middle management and a lack of emphasis for employees of its conflict-of-interest policy.
Michael McGowan, president of the agency’s board of directors, said he is pleased the investigation confirmed that the incident was limited to the six families and four employees. He said the board has been meeting regularly on the matter to make sure it never happens again.
“We’re going to be focused on improved oversight,” McGowan said. “We talked about the process relating to the policy of conflict of interests and housing services and making sure that those policies that we have in place are strengthened.”
Despite their unfair advantage, the six families were found to have met the income criteria necessary to receive the rental vouchers. One of those families had yet to find housing, and voluntarily returned its voucher when informed of the allegations, Nagy-Koechlin said.
The investigation uncovered that two of the families were also receiving state transitional housing assistance funds, even though the agency lacked documentation verifying their eligibility. Nagy-Koechlin said he was caught by surprise by that finding, but he has since checked and determined that the two families are eligible for the program aimed at preventing homelessness.
Currently, the families are being allowed to keep their vouchers and benefits, but if the ongoing investigation finds that they were complicit or knew about the misappropriation, then the state would take additional action, said Matthew Sheaff, Housing and Community Development spokesman.
He added the state has a range of options, including stopping the benefits.
Since the investigation, Nagy-Koechlin said he has met with staff to review the code of conduct and ethics outlined in the employee manual, “and to hammer home the profound responsibility we have to administer these scarce resources fairly and transparently.”
“It just takes one incident like this to shake people’s confidence in the procedure,” he said. “We need to live by high standards.”
Advice for landlords out of pocket over UK housing benefit rent gap
A
housing benefit cap introduced in the UK means that in many areas of
the country some landlords have seen their Local Housing Authority
rental income drop by up to 50%, it is claimed.
The £500 weekly benefit cap is causing some LHA landlords financial hardship as tenants are failing to give them the top up money, to pay the difference between the LHA allowance and the monthly rent.
This is a particularly true for the South East where rents are higher than the rest of the UK and landlords are facing a shortfall in rental income, according to Aki Ellahi, director of an online property portal for tenants, landlords and letting agents called Dssmove.
But he explained that this should not put off landlords taking on housing benefit tenants. ‘My advice to private landlords who are thinking on taking LHA tenants for the first time is to carry out pre-qualifying checks before they take on the tenant. These are essential if landlords are going to protect their rental income,’ said Ellahi.
‘These checks should include seeing evidence of a potential tenant’s benefit income, seeing what LHA allowance they have been given, and checking to see if they qualify for the full LHA allowance. The landlord should also make the tenant aware that they will have to pay the difference between the LHA allowance and the monthly rent,’ he pointed out.
He also explained that landlords and letting agents must carry out these basic checks to ensure the tenancy has every chance of success. Landlords should always look at a professional tenant’s wages to ascertain whether a rent is affordable or not and this same check should also be carried out for LHA tenants.
He believes that landlords with existing tenants that have experienced a benefit cut have two options available to them. Firstly, to try and negotiate some top up payments to cover the difference between the LHA allowance and the actual monthly rent or to evict the tenant and face a void period with no rental income.
‘Many landlords have for some time, enjoyed the highest benefit rate for their properties which was well above the private market rate. The benefit cap is putting an end to this. It is time for landlords to review their rental charges for LHA tenants and bring them more in line with the private rental market,’ said Ellahi.
Meanwhile, it is estimated that around 20 million home owners in the UK have at least one spare room that isn't being used every night, meaning they could be missing out a combined £85 billion in rental income.
Based on the maximum annual tax free earning of £4,250 per bedroom rented out, each home owner could raise just over £350 per month by taking in a lodger or housemate, according to research from financial solutions provider All About Money.
Home owners with more than one spare room could earn even more although any rental earnings above £4,250 per year are subject to income tax which is 20% for basic rate taxpayers.
‘It's nice to have a spare bedroom for when guests come to stay. But having unused rooms could also mean a lot of wasted money,’ said Ian Williams of All About Money.
‘Renting out a bedroom can help to bring your household income up dramatically, which could really help when it comes to paying the bills or saving for the future. It could also be an option if you're struggling to pay the mortgage on your own and could do with an additional source of income,’ he added.
The £500 weekly benefit cap is causing some LHA landlords financial hardship as tenants are failing to give them the top up money, to pay the difference between the LHA allowance and the monthly rent.
This is a particularly true for the South East where rents are higher than the rest of the UK and landlords are facing a shortfall in rental income, according to Aki Ellahi, director of an online property portal for tenants, landlords and letting agents called Dssmove.
But he explained that this should not put off landlords taking on housing benefit tenants. ‘My advice to private landlords who are thinking on taking LHA tenants for the first time is to carry out pre-qualifying checks before they take on the tenant. These are essential if landlords are going to protect their rental income,’ said Ellahi.
‘These checks should include seeing evidence of a potential tenant’s benefit income, seeing what LHA allowance they have been given, and checking to see if they qualify for the full LHA allowance. The landlord should also make the tenant aware that they will have to pay the difference between the LHA allowance and the monthly rent,’ he pointed out.
He also explained that landlords and letting agents must carry out these basic checks to ensure the tenancy has every chance of success. Landlords should always look at a professional tenant’s wages to ascertain whether a rent is affordable or not and this same check should also be carried out for LHA tenants.
He believes that landlords with existing tenants that have experienced a benefit cut have two options available to them. Firstly, to try and negotiate some top up payments to cover the difference between the LHA allowance and the actual monthly rent or to evict the tenant and face a void period with no rental income.
‘Many landlords have for some time, enjoyed the highest benefit rate for their properties which was well above the private market rate. The benefit cap is putting an end to this. It is time for landlords to review their rental charges for LHA tenants and bring them more in line with the private rental market,’ said Ellahi.
Meanwhile, it is estimated that around 20 million home owners in the UK have at least one spare room that isn't being used every night, meaning they could be missing out a combined £85 billion in rental income.
Based on the maximum annual tax free earning of £4,250 per bedroom rented out, each home owner could raise just over £350 per month by taking in a lodger or housemate, according to research from financial solutions provider All About Money.
Home owners with more than one spare room could earn even more although any rental earnings above £4,250 per year are subject to income tax which is 20% for basic rate taxpayers.
‘It's nice to have a spare bedroom for when guests come to stay. But having unused rooms could also mean a lot of wasted money,’ said Ian Williams of All About Money.
‘Renting out a bedroom can help to bring your household income up dramatically, which could really help when it comes to paying the bills or saving for the future. It could also be an option if you're struggling to pay the mortgage on your own and could do with an additional source of income,’ he added.
1 Hot Housing Stock Wants Out
The housing market isn't apparently just a seller's market for those
looking to unload properties that have appreciated greatly since last
year.
Shares of Ellie Mae moved 3% higher in the closing minutes of trading yesterday after a Reuters article reported that the mortgage industry solutions provider is putting itself up for sale. Two sources are telling Reuters that Ellie Mae is hiring Morgan Stanley to smoke out a suitor.
You can't blame Ellie Mae for sizing up the market. Just as someone may be tempted to sell a home given the recent rebound in prices, Ellie Mae's stock has been on fire since going public at $6 two years ago. After a quiet 2011 where it actually closed out the year as a busted IPO, shares of Ellie Mae soared 391% last year.
This year has been a relative disappointment. The stock is up a mere 8% in 2013 after yesterday's pop. However, with real estate portals Zillow and Trulia up 257% and 158%, respectively, this year, it's safe to say that investors are still drawn to the companies that are cashing in on the rebound in the residential real estate market.
Ellie Mae offers on-demand automation tools for the mortgage industry. Roughly a fifth of the country's mortgages flow through its Encompass platform and its Ellie Mae Network.
Why is Ellie Mae cooling down as Zillow and Trulia are heating up? Well, Ellie Mae is at the mercy of the mortgage market. After the refinancing boom as interest rates bottomed out last year and this year's spike in home purchases, the market's started to cool as interest rates rise. If mortgage originations dry up, Ellie Mae is stuck trying to gain market share. That's something that it's been able to do in the past as a one-stop shop for mortgage processing, but it still has all of its eggs in the mortgage basket. Zillow and Trulia stand to benefit from a shift to rentals or even the desperation of brokers to drum up leads if buying demand thins out.
Ellie Mae could simply be feeling mortal. After blowing analyst profit targets every single quarter since its IPO, Ellie Mae merely met expectations last time out.
Wall Street is still banking on growth here, targeting revenue to climb 30% this year and another 22% come 2014. That's the kind of growth that is worthy of Ellie Mae's lofty multiple of 22 times next year's expected earnings, and it may still command a healthy premium to that of a private equity firm or larger financial services firm that can build on Ellie Mae's business in a way that it may not be able to do on its own.
It is a seller's market out there. You can't blame Ellie Mae for exploring the sale of its appreciated property.
The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report, "3 Stocks That Will Help You Retire Rich," names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of.
Shares of Ellie Mae moved 3% higher in the closing minutes of trading yesterday after a Reuters article reported that the mortgage industry solutions provider is putting itself up for sale. Two sources are telling Reuters that Ellie Mae is hiring Morgan Stanley to smoke out a suitor.
You can't blame Ellie Mae for sizing up the market. Just as someone may be tempted to sell a home given the recent rebound in prices, Ellie Mae's stock has been on fire since going public at $6 two years ago. After a quiet 2011 where it actually closed out the year as a busted IPO, shares of Ellie Mae soared 391% last year.
This year has been a relative disappointment. The stock is up a mere 8% in 2013 after yesterday's pop. However, with real estate portals Zillow and Trulia up 257% and 158%, respectively, this year, it's safe to say that investors are still drawn to the companies that are cashing in on the rebound in the residential real estate market.
Ellie Mae offers on-demand automation tools for the mortgage industry. Roughly a fifth of the country's mortgages flow through its Encompass platform and its Ellie Mae Network.
Why is Ellie Mae cooling down as Zillow and Trulia are heating up? Well, Ellie Mae is at the mercy of the mortgage market. After the refinancing boom as interest rates bottomed out last year and this year's spike in home purchases, the market's started to cool as interest rates rise. If mortgage originations dry up, Ellie Mae is stuck trying to gain market share. That's something that it's been able to do in the past as a one-stop shop for mortgage processing, but it still has all of its eggs in the mortgage basket. Zillow and Trulia stand to benefit from a shift to rentals or even the desperation of brokers to drum up leads if buying demand thins out.
Ellie Mae could simply be feeling mortal. After blowing analyst profit targets every single quarter since its IPO, Ellie Mae merely met expectations last time out.
Wall Street is still banking on growth here, targeting revenue to climb 30% this year and another 22% come 2014. That's the kind of growth that is worthy of Ellie Mae's lofty multiple of 22 times next year's expected earnings, and it may still command a healthy premium to that of a private equity firm or larger financial services firm that can build on Ellie Mae's business in a way that it may not be able to do on its own.
It is a seller's market out there. You can't blame Ellie Mae for exploring the sale of its appreciated property.
The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report, "3 Stocks That Will Help You Retire Rich," names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of.
Online Travel Marketplace Vacatia Raises $5M To Simplify Buying And Selling Timeshares
With Airbnb, HomeAway, Roomorama and plenty of others, there’s no
shortage of vacation rental platforms for travelers to browse. Add to
the list Vacatia,
a secondary marketplace aimed at timeshare owners who want to sell
their fractional interests to other travelers. The startup has raised $5
million in seed funding from investors, including Spencer Rascoff, CEO of Zillow; Erik Blachford, former CEO of Expedia; Greg Waldorf, Trulia board member; Thomas Byrne, former president of LoopNet and more.
The idea behind Vacatia is to provide an active, open and liquid marketplace for professionally managed resort rentals, CEO and founder Keith Cox tells me. While buying timeshares from developers is no problem for most people, owners who want to sell often have a hard time finding buyers, Cox says.
“If we could create a very strong platform where buyers and sellers could engage each other and make for a liquid marketplace … then if we can activate that secondary market, it would bring more equilibrium and efficiency to that market,” he tells me.
To list a property online, Vacatia users create a free account, upload information about the shares they are selling and publish the listing at the price they want. Vacatia will then add information about the resort to further simplify the listing process. Users can also elevate their listings by submitting additional information for Vacatia’s verification process.
Once a buyer and seller are connected, a seller can either accept, counter or reject a buyer’s offer. If the seller accepts, both parties are introduced to a title company to take then through the escrow and closing process. Vacatia then takes a cut of the profits from the seller based on the sale amount (if the timeshare sold for $10,000, Vacatia would take $1,000).
There are several other platforms for listing and selling timeshares, including Ebay, Redweek and Sellmytimesharenow.com. But Cox tells me Vacatia wants to differentiate itself by maintaining a free and open marketplace for all sellers, buyers, brokers and developers. Vacatia has implemented a preferred broker program, which discounts its sales fees by half for participating brokers.
Right now Vacatia only allows resale listings, but Cox says he wants to expand into listings from primary developers and homeowners associations so users can buy directly from developers.
Additional investors include Robert Spottswood, Raymond L. Gellein, Jr., Barry Sternlicht, Steve Hankin, Egon Durban, Douglas Dillard, Jr., Gene Frantz and firms Maveron, Bee Partners, Peterson Ventures and Meyer Ventures.
The idea behind Vacatia is to provide an active, open and liquid marketplace for professionally managed resort rentals, CEO and founder Keith Cox tells me. While buying timeshares from developers is no problem for most people, owners who want to sell often have a hard time finding buyers, Cox says.
“If we could create a very strong platform where buyers and sellers could engage each other and make for a liquid marketplace … then if we can activate that secondary market, it would bring more equilibrium and efficiency to that market,” he tells me.
To list a property online, Vacatia users create a free account, upload information about the shares they are selling and publish the listing at the price they want. Vacatia will then add information about the resort to further simplify the listing process. Users can also elevate their listings by submitting additional information for Vacatia’s verification process.
Once a buyer and seller are connected, a seller can either accept, counter or reject a buyer’s offer. If the seller accepts, both parties are introduced to a title company to take then through the escrow and closing process. Vacatia then takes a cut of the profits from the seller based on the sale amount (if the timeshare sold for $10,000, Vacatia would take $1,000).
There are several other platforms for listing and selling timeshares, including Ebay, Redweek and Sellmytimesharenow.com. But Cox tells me Vacatia wants to differentiate itself by maintaining a free and open marketplace for all sellers, buyers, brokers and developers. Vacatia has implemented a preferred broker program, which discounts its sales fees by half for participating brokers.
Right now Vacatia only allows resale listings, but Cox says he wants to expand into listings from primary developers and homeowners associations so users can buy directly from developers.
Additional investors include Robert Spottswood, Raymond L. Gellein, Jr., Barry Sternlicht, Steve Hankin, Egon Durban, Douglas Dillard, Jr., Gene Frantz and firms Maveron, Bee Partners, Peterson Ventures and Meyer Ventures.
HomeAway Inc. : Vacation Rental Performance Remains Strong: HomeAway Vacation Rental Owners’ Revenue Increases In Summer 2013
Vacation Rental Performance Remains Strong: HomeAway Vacation Rental Owners' Revenue Increases In Summer 2013
In the newest industry research from its "HomeAway® Vacation Rental Report: Owner Edition," HomeAway, Inc. (NASDAQ: AWAY), the world's leading online marketplace for vacation rentals, highlights the strong performance of its vacation rental owners during the summer season. The case for vacation home owners to rent their otherwise vacant properties to travelers grows more compelling when examining the number of bookings and increased rental rates compared over last year.
A Strong 2013 Summer Season
The Labor Day holiday brings a welcome conclusion to a lucrative summer for many vacation rental owners. This summer's report finds the average occupancy rate for vacation rentals is 77 percent for vacation rental owners who consider summer their peak season. These owners reported an average weekly rental rate of $1,778 ($254 per night), a 19 percent increase over the same time period in 2012.
Comparatively, Smith Travel Research, Inc. reports the average occupancy rate for U.S. hotels for the summer season was approximately 70 percent (a slight two percent rise from the same period last year) with an average room rate of $110.21 per night, representing just a 3 percent increase over the same time period in 2012. Even though the nightly rate of a hotel is lower than that of a vacation rental, vacation rentals still hold a much higher value than a single hotel room, offering multiple bedrooms and bathrooms, allowing for comfortable and convenient family and group travel.
For the second consecutive year, nearly nine in 10 vacation rental owners (86 percent) report their summer business was about the same or better than last summer. And 95 percent of vacation rental owners said they did not lower their rental rates from last summer-23 percent even increased their rental rates.
"It's clear from this year's report our owners are utilizing their vacation homes as assets to help pay their expenses and even turn a profit," says Brian Sharples, co-founder and chief executive officer of HomeAway. "Nothing makes me more proud than aiding our owners and property managers in filling their vacation rentals."
Overcoming the Concerns of Renting a Vacation Home
Taking the Leap of Faith to Fortune
One of the top concerns of vacation homeowners prior to opening their homes to travelers includes concern of losing money on the endeavor (23 percent). But the survey debunks this myth: among those owners who have a mortgage on their vacation rental home, more than half (51 percent) are able to cover at least three quarters of their mortgage payment-an increase of six percent year-over-year from summer 2012. Additionally, nearly three-quarters (70 percent) cover at least half of their mortgage payment-an increase of six percent over last year.
Time Well Spent: The ROI of Managing a Vacation Rental
Prior to renting, vacation rental owners (35 percent) also worry if they can balance managing the home as a rental with a full-time job or family obligations. In actuality, vacation rental owners spend only an average of 8.4 hours per week marketing and managing their vacation rental properties. With an average weekly rate of $1,778, a vacation rental owner is grossing approximately $71 per hour of work.
"If the owner optimizes the time and effort put into managing their vacation rental, the return on investment is substantial," says Sharples.
A Family Vacation or Retirement Retreat = Income Generator
Thirty-nine percent (39 percent), of owners originally purchased their vacation home for personal use. As such, there is a concern among 35 percent of owners that once the home begins to rent, they aren't able to utilize the property for personal use any longer. However, nearly two-thirds of owners (66 percent) spent up to 28 days in their vacation rental in the past twelve months, and the majority (76 percent) of owners cites personal or work reasons for not being able to spend more time in their vacation rental, not guest bookings.
Another 15 percent of owners classify their vacation rental as a future retirement home. The average age in which owners purchased their vacation homes was 48 years old-six years younger than owners in 2012-and the average age in which owners began renting their vacation homes was 50 years old-also six years less than owners in 2012.
"Consistent with what we have seen from the National Association of Realtors year after year, vacation home buyers are getting younger, realizing the benefits of purchasing their future retirement home early and paying down the mortgage by renting it," says Sharples.
Hot Vacation Home Markets
For those considering making an otherwise vacant vacation home available for rent, or purchasing a vacation home, traveler demand to fill these homes is rising in the Florida Panhandle with Fort Walton Beach, Navarre Beach and Pensacola/Pensacola Beach leading the country as a vacation destination. Compared to this same time last year, the growth of inquiries and new vacation rental listings in the Florida Panhandle is rivaled by its neighbors Captiva & Sanibel Island and North Carolina's Outer Banks region, which shows strong performance from Duck, Kitty Hawk, Corolla, and Kill Devil Hills.
Although, it's not just beach destinations increasing in both supply and demand. Ski spots Keystone and Durango, Colo. are peaking along with Park City, Utah. Perhaps a dark horse in these burgeoning vacation rental markets is Sunriver, Ore., boasting a 77 percent growth in vacation rental listings and complementary traveler demand growth as well.
The top 10 markets where traveler demand is on the rise, based on a year-over-year analysis (Q2 2012 vs. Q2 2013) of inquiries from travelers looking to rent a vacation home, include:
In the newest industry research from its "HomeAway® Vacation Rental Report: Owner Edition," HomeAway, Inc. (NASDAQ: AWAY), the world's leading online marketplace for vacation rentals, highlights the strong performance of its vacation rental owners during the summer season. The case for vacation home owners to rent their otherwise vacant properties to travelers grows more compelling when examining the number of bookings and increased rental rates compared over last year.
A Strong 2013 Summer Season
The Labor Day holiday brings a welcome conclusion to a lucrative summer for many vacation rental owners. This summer's report finds the average occupancy rate for vacation rentals is 77 percent for vacation rental owners who consider summer their peak season. These owners reported an average weekly rental rate of $1,778 ($254 per night), a 19 percent increase over the same time period in 2012.
Comparatively, Smith Travel Research, Inc. reports the average occupancy rate for U.S. hotels for the summer season was approximately 70 percent (a slight two percent rise from the same period last year) with an average room rate of $110.21 per night, representing just a 3 percent increase over the same time period in 2012. Even though the nightly rate of a hotel is lower than that of a vacation rental, vacation rentals still hold a much higher value than a single hotel room, offering multiple bedrooms and bathrooms, allowing for comfortable and convenient family and group travel.
For the second consecutive year, nearly nine in 10 vacation rental owners (86 percent) report their summer business was about the same or better than last summer. And 95 percent of vacation rental owners said they did not lower their rental rates from last summer-23 percent even increased their rental rates.
"It's clear from this year's report our owners are utilizing their vacation homes as assets to help pay their expenses and even turn a profit," says Brian Sharples, co-founder and chief executive officer of HomeAway. "Nothing makes me more proud than aiding our owners and property managers in filling their vacation rentals."
Overcoming the Concerns of Renting a Vacation Home
Taking the Leap of Faith to Fortune
One of the top concerns of vacation homeowners prior to opening their homes to travelers includes concern of losing money on the endeavor (23 percent). But the survey debunks this myth: among those owners who have a mortgage on their vacation rental home, more than half (51 percent) are able to cover at least three quarters of their mortgage payment-an increase of six percent year-over-year from summer 2012. Additionally, nearly three-quarters (70 percent) cover at least half of their mortgage payment-an increase of six percent over last year.
Time Well Spent: The ROI of Managing a Vacation Rental
Prior to renting, vacation rental owners (35 percent) also worry if they can balance managing the home as a rental with a full-time job or family obligations. In actuality, vacation rental owners spend only an average of 8.4 hours per week marketing and managing their vacation rental properties. With an average weekly rate of $1,778, a vacation rental owner is grossing approximately $71 per hour of work.
"If the owner optimizes the time and effort put into managing their vacation rental, the return on investment is substantial," says Sharples.
A Family Vacation or Retirement Retreat = Income Generator
Thirty-nine percent (39 percent), of owners originally purchased their vacation home for personal use. As such, there is a concern among 35 percent of owners that once the home begins to rent, they aren't able to utilize the property for personal use any longer. However, nearly two-thirds of owners (66 percent) spent up to 28 days in their vacation rental in the past twelve months, and the majority (76 percent) of owners cites personal or work reasons for not being able to spend more time in their vacation rental, not guest bookings.
Another 15 percent of owners classify their vacation rental as a future retirement home. The average age in which owners purchased their vacation homes was 48 years old-six years younger than owners in 2012-and the average age in which owners began renting their vacation homes was 50 years old-also six years less than owners in 2012.
"Consistent with what we have seen from the National Association of Realtors year after year, vacation home buyers are getting younger, realizing the benefits of purchasing their future retirement home early and paying down the mortgage by renting it," says Sharples.
Hot Vacation Home Markets
For those considering making an otherwise vacant vacation home available for rent, or purchasing a vacation home, traveler demand to fill these homes is rising in the Florida Panhandle with Fort Walton Beach, Navarre Beach and Pensacola/Pensacola Beach leading the country as a vacation destination. Compared to this same time last year, the growth of inquiries and new vacation rental listings in the Florida Panhandle is rivaled by its neighbors Captiva & Sanibel Island and North Carolina's Outer Banks region, which shows strong performance from Duck, Kitty Hawk, Corolla, and Kill Devil Hills.
Although, it's not just beach destinations increasing in both supply and demand. Ski spots Keystone and Durango, Colo. are peaking along with Park City, Utah. Perhaps a dark horse in these burgeoning vacation rental markets is Sunriver, Ore., boasting a 77 percent growth in vacation rental listings and complementary traveler demand growth as well.
The top 10 markets where traveler demand is on the rise, based on a year-over-year analysis (Q2 2012 vs. Q2 2013) of inquiries from travelers looking to rent a vacation home, include:
Police warn of phony rental scam on Craigslist
LAKELAND --
Lakeland police are warning residents about a scam involving phony rental listings on Craigslist.
Police said the scam involves an ad for a home in Lakeland. The suspects list the residence with pictures, showing the house as a great deal, and then when someone who is interested responds, the scammers ask for a deposit to be paid using Western Union.
The incidents have reportedly taken place between mid-July and the beginning of August. Sometimes the ad will be listed as a vacation rental at a reduced monthly price. Police said the listing is generally designed to appeal to as many people as possible.
Police said phony rental listing scams have become more frequent and sophisticated in recent years, and that some of them even involve the use of fake rental application forms online, which the scammers then use to obtain third-party information for identity theft.
Officials said residents should take the following precautions to avoid being victimized:
Lakeland police are warning residents about a scam involving phony rental listings on Craigslist.
Police said the scam involves an ad for a home in Lakeland. The suspects list the residence with pictures, showing the house as a great deal, and then when someone who is interested responds, the scammers ask for a deposit to be paid using Western Union.
The incidents have reportedly taken place between mid-July and the beginning of August. Sometimes the ad will be listed as a vacation rental at a reduced monthly price. Police said the listing is generally designed to appeal to as many people as possible.
Police said phony rental listing scams have become more frequent and sophisticated in recent years, and that some of them even involve the use of fake rental application forms online, which the scammers then use to obtain third-party information for identity theft.
Officials said residents should take the following precautions to avoid being victimized:
- Do not send anyone money for a rental property unless you have personally inspected it and met the landlord.
- Do not send money to a foreign country for a rental property that is local.
- Never wire funds via Western Union, Moneygram or any other wire service - anyone who asks you to do so is likely a scammer.
9/04/2013
Craigslist scam: Woman says she rented nonexistent Newport house
A Spinning Wheel Road woman told police she rented a non-existent house in Rhode Island for her daughter.
The woman told police she rented a Newport, R.I., house on Craigslist for one night.
The supposed landlord provided bank account information for the woman to transfer money into, and she reportedly did so, paying $150 plus a $400 security deposit.
When her daughter arrived in Newport on Aug. 14 she couldn’t find 7 Van Zandt Drive. When she spoke to a neighbor, she was told there is no address and this has happened numerous times.
The woman told police she rented a Newport, R.I., house on Craigslist for one night.
The supposed landlord provided bank account information for the woman to transfer money into, and she reportedly did so, paying $150 plus a $400 security deposit.
When her daughter arrived in Newport on Aug. 14 she couldn’t find 7 Van Zandt Drive. When she spoke to a neighbor, she was told there is no address and this has happened numerous times.
Top 6 Tips for Letting Your Home
If you've decided to rent your home, there are a number of handy
hints and tips that can help make the process an easier process. Getting
prospective tenants can be something of a headache, so use some of
these ideas to get your home let in no time at all.
1. Getting ready to let
There are many things that you'll need to take into account when you're preparing to get your home on the letting market. Do you want to let your property furnished or unfurnished? Will you manage the property yourself or would you rather find an agent to take the strain? What are the costs you need to cover with your rental and will you be able to cover it with the kind of rent you'll be able to charge?
Take some time before you start to answer these questions. Once you know how you're going to approach your let, you have a good starting point for getting your property ready for prospective tenants.\
2. The power of the facelift
When you're looking to attract people to take on your home for rental, there are things that you may have become accustomed to overlooking that will be glaringly obvious to any prospective tenants. Many of these things are relatively easily fixed and can make all the difference in terms of the ability to attract the right kind of tenants.
From the outside view of the property, it's time to tidy up and repair any cosmetic issues that might turn people off on first view. Many tenants will drive by before they actually look inside and if they don't like what they see you've lost a potential tenant before you've had the chance. Cut the grass or the hedge, pull the weeds, repair cracks or holes and give the woodwork a lick of paint if it's looking a bit tired.
3. The power of advertising
Knowing the type of tenants you're looking for will have a big impact on how you advertise your property to any potential tenants. Are you looking for a young family or a professional couple? That could make the difference between advertising a three bedroom home or a house with two bedrooms and a study. If you're looking at renting to students or individuals taking on separate rooms, you will need to decide whether you advertise the whole house or take rental for each room individually. Once you're clear, it will make getting the right people much easier.
4. Pitching your price
With a clear understanding of the costs you need to cover in order to break even, you can consider how you decide the cost of rental. While most people take into account the cost of the mortgage and, for fully inclusive lets, the cost of bills but it can be the hidden extras that take you into tricky territory.
When working out how much you can afford to let the property at, make sure you include a premium for any maintenance work needed on an on-going basis, insurance and fees for solicitors and agents to make sure you're not overstretching yourself.
5. Choosing your agent
If you decide to go with an agent rather than managing the let yourself, you'll need to choose someone who deals with the market you're targeting. Many agents specialise in student lets or have contracts with nearby firms bringing overseas workers to jobs in the UK. Picking the right one can speed the process of letting.
6. Getting your tenants
There are a few things that are simple common sense when you get into the letting phase. When you have tenants coming to see the property, make sure it's clean and tidy to give the best possible impression. Be open and honest about any issues with the property that you need to sort out to save ending up with a disgruntled tenant and always make sure that you have a pot of coffee brewing!
Conclusion
Renting your home can involve a lot of hard work, but if you take the right steps you can be sure that you find the right tenant at the right rent.
1. Getting ready to let
There are many things that you'll need to take into account when you're preparing to get your home on the letting market. Do you want to let your property furnished or unfurnished? Will you manage the property yourself or would you rather find an agent to take the strain? What are the costs you need to cover with your rental and will you be able to cover it with the kind of rent you'll be able to charge?
Take some time before you start to answer these questions. Once you know how you're going to approach your let, you have a good starting point for getting your property ready for prospective tenants.\
2. The power of the facelift
When you're looking to attract people to take on your home for rental, there are things that you may have become accustomed to overlooking that will be glaringly obvious to any prospective tenants. Many of these things are relatively easily fixed and can make all the difference in terms of the ability to attract the right kind of tenants.
From the outside view of the property, it's time to tidy up and repair any cosmetic issues that might turn people off on first view. Many tenants will drive by before they actually look inside and if they don't like what they see you've lost a potential tenant before you've had the chance. Cut the grass or the hedge, pull the weeds, repair cracks or holes and give the woodwork a lick of paint if it's looking a bit tired.
3. The power of advertising
Knowing the type of tenants you're looking for will have a big impact on how you advertise your property to any potential tenants. Are you looking for a young family or a professional couple? That could make the difference between advertising a three bedroom home or a house with two bedrooms and a study. If you're looking at renting to students or individuals taking on separate rooms, you will need to decide whether you advertise the whole house or take rental for each room individually. Once you're clear, it will make getting the right people much easier.
4. Pitching your price
With a clear understanding of the costs you need to cover in order to break even, you can consider how you decide the cost of rental. While most people take into account the cost of the mortgage and, for fully inclusive lets, the cost of bills but it can be the hidden extras that take you into tricky territory.
When working out how much you can afford to let the property at, make sure you include a premium for any maintenance work needed on an on-going basis, insurance and fees for solicitors and agents to make sure you're not overstretching yourself.
5. Choosing your agent
If you decide to go with an agent rather than managing the let yourself, you'll need to choose someone who deals with the market you're targeting. Many agents specialise in student lets or have contracts with nearby firms bringing overseas workers to jobs in the UK. Picking the right one can speed the process of letting.
6. Getting your tenants
There are a few things that are simple common sense when you get into the letting phase. When you have tenants coming to see the property, make sure it's clean and tidy to give the best possible impression. Be open and honest about any issues with the property that you need to sort out to save ending up with a disgruntled tenant and always make sure that you have a pot of coffee brewing!
Conclusion
Renting your home can involve a lot of hard work, but if you take the right steps you can be sure that you find the right tenant at the right rent.
Real-Estate Tycoon Gives $200 Million to University of Michigan
Stephen M. Ross, a self-described academically average
transfer student who graduated from the University of Michigan, will
become the school's biggest benefactor Wednesday with a gift of $200
million.
The real-estate developer's gift, the single largest in the university's history, will be split between its business school—which is named for Mr. Ross, a 1962 graduate—and its athletics program.
The university, based in Ann Arbor, said the gift would bring Mr. Ross's lifetime giving to the school to $313 million. That puts him in the upper ranks of donors to their alma maters, including New York City Mayor Michael Bloomberg, who this year committed $350 million to Johns Hopkins University in Baltimore.
"I believe you give till it feels good," Mr. Ross, 73 years old, said in an interview. Mr. Ross, a Detroit native who attended the University of Florida before transferring to Michigan and earning an accounting degree, is the founder and chairman of the 40-year-old Related Cos., a New York-based real-estate development company with some $15 billion in assets.
In 2004, Mr. Ross gave $100 million to construct a new building for the University of Michigan's business school and to bolster the school's endowment. The latest gift is meant to "finish the job" in upgrading the business school's other buildings, Mr. Ross said.
"He's finishing the vision and it's a big vision," said university President Mary Sue Coleman.
Mr. Ross, who owns the Miami Dolphins football team, played intramural sports at Michigan and has made past gifts to support student athletes. The new donation will build out the athletic campus, which will carry his name, to serve some 900 student athletes. He said he wanted to boost athletes who aren't part of Michigan's marquee sports programs.
Mr. Ross will serve as the chairman of the university's next major fundraising campaign, to begin this year. In May, Mr. Ross joined the Giving Pledge, a public commitment started by Warren Buffett and Bill Gates for the super-rich to donate the majority of their wealth. Mr. Ross said he plans to give away half of his net worth, which Forbes magazine has estimated at $4.4 billion, and Related Cos. now estimates at more than $5 billion. "I will be leaving more than I've given to Michigan, much more," he said.
Write to Melanie Grayce West at melanie.west@wsj.com
The real-estate developer's gift, the single largest in the university's history, will be split between its business school—which is named for Mr. Ross, a 1962 graduate—and its athletics program.
The university, based in Ann Arbor, said the gift would bring Mr. Ross's lifetime giving to the school to $313 million. That puts him in the upper ranks of donors to their alma maters, including New York City Mayor Michael Bloomberg, who this year committed $350 million to Johns Hopkins University in Baltimore.
"I believe you give till it feels good," Mr. Ross, 73 years old, said in an interview. Mr. Ross, a Detroit native who attended the University of Florida before transferring to Michigan and earning an accounting degree, is the founder and chairman of the 40-year-old Related Cos., a New York-based real-estate development company with some $15 billion in assets.
In 2004, Mr. Ross gave $100 million to construct a new building for the University of Michigan's business school and to bolster the school's endowment. The latest gift is meant to "finish the job" in upgrading the business school's other buildings, Mr. Ross said.
"He's finishing the vision and it's a big vision," said university President Mary Sue Coleman.
Mr. Ross, who owns the Miami Dolphins football team, played intramural sports at Michigan and has made past gifts to support student athletes. The new donation will build out the athletic campus, which will carry his name, to serve some 900 student athletes. He said he wanted to boost athletes who aren't part of Michigan's marquee sports programs.
Mr. Ross will serve as the chairman of the university's next major fundraising campaign, to begin this year. In May, Mr. Ross joined the Giving Pledge, a public commitment started by Warren Buffett and Bill Gates for the super-rich to donate the majority of their wealth. Mr. Ross said he plans to give away half of his net worth, which Forbes magazine has estimated at $4.4 billion, and Related Cos. now estimates at more than $5 billion. "I will be leaving more than I've given to Michigan, much more," he said.
Write to Melanie Grayce West at melanie.west@wsj.com
Vancouver real estate sales jump by half
Greater Vancouver housing sales volume roared ahead 52.5 per cent last month.
The number of properties sold on the Multiple Listing Service reached 2,514 in August, up sharply from the same month of 2012, the Real Estate Board of Greater Vancouver said Wednesday.
While buyers rushed back into the housing market, the increased sales came after a weak period in the summer of 2012. In July last year, the federal government reduced the maximum period on government-backed mortgages to 25 years from 30 years. Real estate experts say the change, which knocked some first-time buyers out of the market, contributed to the slowdown in housing sales in Vancouver in August of 2012.
The number of properties sold on the Multiple Listing Service reached 2,514 in August, up sharply from the same month of 2012, the Real Estate Board of Greater Vancouver said Wednesday.
While buyers rushed back into the housing market, the increased sales came after a weak period in the summer of 2012. In July last year, the federal government reduced the maximum period on government-backed mortgages to 25 years from 30 years. Real estate experts say the change, which knocked some first-time buyers out of the market, contributed to the slowdown in housing sales in Vancouver in August of 2012.
Hyannis Home Improvement Contractor Expands to Include Residential Property Management Toby Leary Fine Woodworking adds high end property care division and hires a new manager to oversee the department.
Toby Leary Fine Woodworking
will now include a residential property management division known as
Toby Leary Property Management. Along with the new department, manager
Patrick Callaghan has been hired to supervise the division.
Many properties around the Cape Cod area are vacant in the fall and winter, while homeowners live some distance away. “We want to offer peace of mind to area homeowners, assuring them that their investment is in good hands, while they are away,” says Toby Leary, owner of Toby Leary Fine Woodworking.
Toby Leary Property Management will make sure property is well maintained, safe and ready for a homeowner’s arrival. Their services range from supervising landscaping needs, pool maintenance, event preparation, home improvement repairs and being listed as an emergency contact for alarm calls.
“Hiring Patrick to supervise the property management division will allow us to bolster the department while he crafts our services to suit the needs of homeowners around Cape Cod,” says Toby.
Patrick will manage the fine property care division as well as drive sales of custom interior building projects. His 20 years of experience include project management for Stonhard's polymer floor group in Massachusetts, award winning business development in NYC for ADP's retirement and benefits division, establishing High Tech Consulting, a property development company for land and investment property, and commercial account lending for Wachovia Bank.
Most notably Mr. Callaghan has worked with Absolut Spirits, Sunbeam Bread, Loews Hotels, Handy & Harmon, Nutramax, Web MD, Cape Cod Potato Chips, Marquis Jet Partners, Turkish Airlines, Ewing Partners and Connecticut Closets.
Patrick graduated with a degree in International Studies and Economics from Iona College. “In my experience, listening to people is the surest way to make a sale and listening to clients is the surest way to build a relationship,” says Patrick. Patrick and Carolina his wife, their 3 beautiful girls, enjoy Sunday Mass and brunch together, games of charades, Charoodles, baking cookies, the Beach and singing loudly for all to hear.
“I am interested in developing streamlined methods to maintain high-end property and make off-season improvements while preparing property for your arrival,” says Patrick. “We want to be the point person for all your maintenance needs while caring for your property.”
Toby Leary offers design, production and residential building and remodeling services.
For more information about this company, call (774) 836-5571, or visit their website at http://www.tobyleary.com.
About Toby Leary Fine Woodworking
Toby Leary Fine Woodworking is a full-service design, construction and building company specializing in high-end finish trim and custom casework. Established in 2003 by Toby Leary, the business has grown and is now operating out of an 11,000 square-foot facility at its headquarters in Hyannis, MA. Toby Leary Fine Woodworking is the area’s direct source for fine architectural and woodworking services. The staff includes designers, construction supervisors, custom furniture and cabinet makers, and highly skilled finish-trim carpenters. They have an A+ rating with the BBB and serve Martha’s Vineyard, Hingham, Osterville, Cohasset, Weston, Wellesley, Newton, Wayland and Chatham.
Many properties around the Cape Cod area are vacant in the fall and winter, while homeowners live some distance away. “We want to offer peace of mind to area homeowners, assuring them that their investment is in good hands, while they are away,” says Toby Leary, owner of Toby Leary Fine Woodworking.
Toby Leary Property Management will make sure property is well maintained, safe and ready for a homeowner’s arrival. Their services range from supervising landscaping needs, pool maintenance, event preparation, home improvement repairs and being listed as an emergency contact for alarm calls.
“Hiring Patrick to supervise the property management division will allow us to bolster the department while he crafts our services to suit the needs of homeowners around Cape Cod,” says Toby.
Patrick will manage the fine property care division as well as drive sales of custom interior building projects. His 20 years of experience include project management for Stonhard's polymer floor group in Massachusetts, award winning business development in NYC for ADP's retirement and benefits division, establishing High Tech Consulting, a property development company for land and investment property, and commercial account lending for Wachovia Bank.
Most notably Mr. Callaghan has worked with Absolut Spirits, Sunbeam Bread, Loews Hotels, Handy & Harmon, Nutramax, Web MD, Cape Cod Potato Chips, Marquis Jet Partners, Turkish Airlines, Ewing Partners and Connecticut Closets.
Patrick graduated with a degree in International Studies and Economics from Iona College. “In my experience, listening to people is the surest way to make a sale and listening to clients is the surest way to build a relationship,” says Patrick. Patrick and Carolina his wife, their 3 beautiful girls, enjoy Sunday Mass and brunch together, games of charades, Charoodles, baking cookies, the Beach and singing loudly for all to hear.
“I am interested in developing streamlined methods to maintain high-end property and make off-season improvements while preparing property for your arrival,” says Patrick. “We want to be the point person for all your maintenance needs while caring for your property.”
Toby Leary offers design, production and residential building and remodeling services.
For more information about this company, call (774) 836-5571, or visit their website at http://www.tobyleary.com.
About Toby Leary Fine Woodworking
Toby Leary Fine Woodworking is a full-service design, construction and building company specializing in high-end finish trim and custom casework. Established in 2003 by Toby Leary, the business has grown and is now operating out of an 11,000 square-foot facility at its headquarters in Hyannis, MA. Toby Leary Fine Woodworking is the area’s direct source for fine architectural and woodworking services. The staff includes designers, construction supervisors, custom furniture and cabinet makers, and highly skilled finish-trim carpenters. They have an A+ rating with the BBB and serve Martha’s Vineyard, Hingham, Osterville, Cohasset, Weston, Wellesley, Newton, Wayland and Chatham.
MRI Software Announces Release of Property Management 4.5
MRI Software Announces Release of Property Management 4.5
Focusing on a user-friendly interface and harnessing the power of web-based applications, MRI 4.5 is now available.
MRI Software announced today the availability of MRI Property Management 4.5, the most recent release of the company’s award-winning property management software. With its MRI 4.5 release, the company makes available additional modules in the MRI Web environment, new feature enhancements to MRI Budgeting & Forecasting, Resident Connect, and Tenant Connect, usability improvements that include multi-tasking abilities inside the web-based interface, and numerous updates and fixes.
The 4.5 platform focuses on the customer experience, with increased functionality and usability inside the highly configurable property management system. With a heavy emphasis on the Property Management Web interface, MRI has added several products to its browser-based system: JobCost, a development and construction accounting application that enables the tracking of real estate projects as they progress through the project life cycle; Purchase Order, a critical piece of accounting functionality that allows clients to efficiently enter, print, approve, and invoice purchase orders; Enterprise General Ledger, a system designed to support the most sophisticated corporate consolidated and portfolio accounting requirements.
“MRI recognizes the growing importance of mobility-enabling web functionality. We are excited to add new modules to our user-friendly web environment that empower clients to access their MRI information in an intuitive, browser-based interface,” said David Post, CEO of MRI Software. “We are dedicated to continually improving our highly configurable, award-winning suite of property management solutions, and are confident that our customers will appreciate the enhancements our 4.5 release will bring them.”
For the multifamily market, MRI’s award-winning Residential Management product received several updates, including improved reconciliations capability for check scan batches, enhancements to the DHCR leasing and renewing process, and auto non-cash credit applies for Web. MRI Resident Connect, the powerful online portal that enables residents to manage their accounts online, directly submit service requests, pay rent, and even renew their lease electronically, has been integrated with RentPayment to allow for resident credit card transactions. These enhancements further illustrate MRI’s commitment to the Multifamily industry, as these products create the most robust end-to-end resident life cycle solution in the market.
In the commercial market, MRI’s award-winning Commercial Management solution received multiple updates, including the introduction of batch entry shortcut keys, improved data entry capabilities, and security enhancements to MRI Tenant Connect, the secure tenant portal where commercial clients can make payments, enter sales data, review account status, and initiate service requests. In addition, MRI’s Budgeting & Forecasting solution now includes integrated recoveries functionality, CPI calculations and estimates, further integration to LeaseFlow, and column-style comparative budget reports.
Lastly, the 4.5 release featured several international enhancements to support the global markets, including, but not limited to, Accounts Payable International EFT framework, EMEA service charge enhancement, and country pack updates for China, Australia, and New Zealand.
For more information on MRI Property Management 4.5, click here.
About MRI Software
MRI offers property management software solutions to the global real estate management and investment industries. As a leading provider of real estate enterprise software applications and hosted solutions, MRI serves the global multifamily and commercial property industries, helping them improve their bottom line and maximize their returns on their diverse business portfolios. MRI leverages its more than 40 years in business to develop long-term successful relationships with its clients. For more information, please visit our website.
Subscribe to:
Posts (Atom)