(ARA) - The high volume of foreclosed homes on the market is allowing some astute buyers to turn eyesores into eye-catching properties with only minimal investment. While not every property can be fixed up affordably, there are some common projects that dramatically improve a foreclosed home's appeal and value.

"Many people are finding huge opportunities in fixing up foreclosures," says Tom Sullivan, founder of Lumber Liquidators, the nation's largest specialty retailer of hardwood flooring. "Most of these houses can be completely transformed with just a few improvements. Often, the fixes are easy enough to be do-it-yourself projects."

Here are some popular cost-effective options for breathing new life into a home in need.

Add new countertops.
The kitchen is one of the most important rooms in any home, since it is a space where people spend a lot of time - from cooking dinner to entertaining friends. One of the most dramatic changes that can be made to a kitchen is adding new countertops. It alters the appearance of the space by changing the color scheme, depth and texture of the whole room.

Countertops range in price depending on room size, type of material and mode of installation. In an average kitchen, a new laminate countertop starts at around $1,000, with granite or quartz ranging from $3,000 to $6,000. Butcher-block countertops are another attractive, yet cost-effective option. Williamsburg Butcher Block Company offers options in both maple and American cherry starting around $310.

Replace the bathtub.
Foreclosed houses frequently come with water stains left by standing water in sinks, toilets and bathtubs. Updating a bathroom by installing a new bathtub not only removes the problem, but, because the tub is a core item, it creates a more pleasant feeling in the room. Bathtubs are available in many different styles and sizes, so there is likely to be one that suits any taste, from traditional to contemporary. Bathtubs start at around $300, depending on the size and style.

Trade carpeting for new wood flooring.
Foreclosed houses are frequently abandoned with soiled carpet that continues to gather buildup over time. Mold is also common in homes that have been left bare for extended periods. To get rid of hidden odors, allergens, irritants and mold, replace carpet with wood, particularly in high-traffic areas such as living rooms and great rooms.

In addition to reviving these common areas, swapping carpet for wood adds style and creates a more spacious feel. The choice of wood can also make a big difference. Light wood colors can make a room appear larger, medium-toned woods can make a room appear more traditional and dark flooring can make a room appear warmer.

"The introduction of so many new species, colors and types of wood flooring in recent years gives homeowners a lot of options when renovating a room at different price points," says Sullivan.

Laminate flooring can deliver the appearance of solid hardwoods, but costs less than $1 per square foot at places like Lumber Liquidators. This allows budget do-it-yourselfers the ability to transform a 400-square-foot area for as little as $750.

In addition to making a foreclosed home look new again, completing these easy and affordable updates can go a long way in restoring the value of the property when it comes time to sell.

Courtesy of ARAcontent

Brought To You By Randy Charlton with Keller Williams Realty

I figured the best way to answer these questions was to post a flyer explaining the basic details of the program. Remember, this program applies to first-time homebuyers, as well as, move-up buyers.

As always, please consult with your tax professional to confirm eligibility.
Click on the link below for a copy of the flyer.

Homebuyer Tax Credit Information Flyer

Brought to you by Randy Charlton of Century 21 Home Realty.

Brought to you by Randy Charlton of Century 21 Home Realtors.

As usual, the market can vary according to city, and zip code, so call me for up to the minute information. 

To view the update click the link below.

The San Bernardino County Market Update for December 2009.

Brought to you by Randy Charlton of Century 21 Home Realtors.

Very Nice Townhome Located In Northern Ontario. Features 4 Spacious Bedrooms and 2.5 Bathrooms In Approx 1,750 Square Feet Of Living Space. Other Features Include Granite Kitchen Counters, Stainless Steel Appliances, Kitchen Island, Tile Flooring, 2-Car Attached Garage, Patio Area, Seperate Living and Dining Area, Custom Faux Wood Blinds, Spacious Master Bedroom With A Walk-in Closet, Master Bathroom With Seperate Tub and Shower, Indoor Laundry With Storage Cabinets, Plus So Much More Not Listed Here!

Click Here To Read The Article.

The market is different for different areas, so contact me for up to the minute information for your exact area.

Brought to you by Randy Charlton of Century 21 Home Realtors.

Consumers making substantial home renovations can receive a tidy tax credit from Uncle Sam if they shop and buy carefully. The American Recovery and Reinvestment Act of 2009 allows home owners to receive tax credits when they improve the energy-efficiency of their home.

Tax credits are different from tax deductions.  A tax credit is figured after you determine your tax bracket and how much you should owe in taxes.  A tax deduction reduces how much you owe in taxes by decreasing your taxable income.  The amount of a tax credit is the same for everyone, while tax deductions are not.

To receive the tax credits, homeowners should make sure their improvements adhere to the IRS guidelines:

 - Must be “placed in service” from Jan. 1, 2009 through Dec. 31, 2010.
 
 - Must be for taxpayer’s principal residence, except for geothermal heat pumps, solar water heaters, solar panels, and small wind energy systems (where second homes and rentals qualify).  $1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 and 2010 for most home improvements, except for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems, which are not subject to this cap, and are in effect through 2016.

 - Must have a “Manufacturer Certification Statement” to qualify.  For record keeping, save your receipts and the Manufacturer Certification Statement.  Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) - use IRS Tax Form 5695 (2009 version) - it will be available late 2009 or early 2010.

Brought to you by Randy Charlton of Century 21 Home Realtors.

FORGET THE LEADER!

On the playground of any school, and on any day, you can witness examples of children playing "follow the leader." One hops, skips, or jumps, and all the others follow. As adults, however, many of those children play a variation of that game - called "follow the follower."

On the job, they look around, see how someone else is doing their work, and duplicate the effort. What they don't realize is that their fellow employee is also watching someone else. A circular game of "follow the follower" evolves, resulting in a mediocre work force. The same can be true in marriages, education, hobbies, and sports.

Consider the story of a telephone operator in a small town. Every day she received a call from a gentleman asking for the correct time. Finally, one day, she asked the mystery caller who he was and why he called every day. His answer? "I'm the one who blows the whistle at the factory each day at noon. I like to be right on time!" The operator laughed and then responded, "Here at the telephone company, we set our watches and clocks by the noon whistle at the factory!"

Tired of playing follow the follower? Want to rejuvenate your life? Begin acting like the unique person you already are. See what everyone else is doing . . . and do something different. Strike out in the direction of your own imagination instead of theirs.

In the words of Henry David Thoreau, "Go confidently in the direction of your dreams. Live the life you've imagined."

Brought to you by Randy Charlton of Century 21 Home Realtors.

How's Your Credit?

Ever hear someone say, "I have good credit"? They are probably referring to their credit "rating" - a score bestowed upon them by creditors, banks or rating agencies. Simply stating, "I have good credit" changes nothing, nor does the statement merit the attention of creditors. Credit can only be given by others for service to them, i.e. paying them on time.

So, credit is the result of serving others - in many ways. You cannot claim education, victory, experience, success, reputation, or a suave demeanor. Each of these is a gift from others, as a result of your service to them. Friends recognize your courage as a result of your being cool under pressure. Your success is recognized by others only once you have served them well. Knowledge of your career field is recognized by others only after it's been applied to situations in the form of more service.

In the accounting world of income and expense, a debit is something paid out, while a credit is something received. Thus all credits are received from others - not by our own making. The debits - what we pay out - are our efforts, persistence, and service. How they are rated is not under our control, but is determined by those served.

Without service, there are few rewards. Yet, you've seen those who insist on getting more attention than they deserve. They feel they're being short-changed, that they are not appreciated, that they are always the victim. If you look more closely at their contributions, you are also likely to see the dearth of service they are offering.

With service, credit follows. It may be subtle or quite visible - but it always follows. Concentrate on what you have to offer and forget the rewards. Those who are served will pick up the tab.

Brought to you by Randy Charlton of Century 21 Home Realtors.

Chief NAR economist Lawrence Yun remains cautiously optimistic about the national housing market. "It’s significant that home sales remain above year-ago levels, but the market is going through a period of swings driven by the tax credit," he said. 'We’ll likely have another surge in the spring as home buyers take advantage of the extended and expanded tax credit. By early summer the overall market should benefit from more balanced inventory, and sales are on track to rise again in 2010. However, the job market remains a concern and could dampen the housing recovery – job creation is key to a continued recovery in the second half of the year."

Brought to you by Randy Charlton of Century 21 Home Realtors.

Brought To You By Randy Charlton with Century 21 Home Realtors

 
REPLACEMENT THERAPY!

Ever received one of those emails that contains a touching messsage, then suggests that if you forward it to ten more people you'll receive a "special blessing" or "ten million dollars in three days"? It usually also warns that the last person who didn't forward it met some terrible fate at the hands of unknown evil-doers. Remember how that last part - the veiled threat - made you feel? You didn't think something awful would really happen, but you resented being put in the position of wondering.

We've been told many times that our worst fears are of the "unknown." An unidentified fear sends our imagination into high gear, conjuring up vivid mental pictures of dastardly plots against us. We ruminate endlessly over the possibilities. Such fear is disruptive to our well-being, and leaves us tired and wrung-out.

So, how do you handle fear? One method is to identify the fear, so that once you do, it is no longer "unknown." That also means it is measurable, and can be logically quantified. Once you know what it is, your imagination can no longer dream up worse things that it is not. Once identified, it is possible to determine possible outcomes.

Most fears will never come to fruition. Those that do are divided into two categories: those we can control, and those we can't. If we have control, we also have the ability to survive our fears, and change their outcomes. Most fall into that category.

One mother's lifelong advice to her daughter who worried too much was to replace the worry thought with another more pleasant thought. The opposite of fear is hope, which also gives us courage. The next time you experience fear of the unknown, try replacement therapy. Think positive, hopeful thoughts when fear knocks at the door. Then, when you open the door - no one is there!

Brought to you by Randy Charlton of Century 21 Home Realtors.

Increased demand has shrunk inventory while slightly raising homes prices. The national median existing home price rose to $178,300 in December, up 1.5 percent over 2008 prices. The increase was attributed in part to an increase in mid- to upper-priced homes.

The reduction of housing inventory has brought stability to many parts of the country, creating more competition for available homes, and multiple offers in some areas.

Brought to you by Randy Charlton of Century 21 Home Realtors.

FHA provides mortgage insurance on loans made by FHA-approved lenders. While borrowers must meet certain requirements established by FHA to qualify for the insurance, lenders bear less risk because FHA will pay the lender if a homeowner defaults on his or her loan.

The New Rules:
FHA-insured mortgages are attractive to borrowers because down payments are only 3.5%. That won't change under the new policies the FHA announced which are to take effect in spring or early summer. Among them:
- Borrowers will have to have a minimum credit score of 580 to qualify for a 3.5% down payment. Those with lower scores will have to make at least a 10% down payment. The average credit score of FHA-insured borrowers is 693.

- Allowable seller concessions will be reduced from 6% to 3% of the sale price. The change is intended to discourage inflated appraisals. On many home transactions the seller agrees to pay the closing costs of the buyer.

- Buyers will have to pay an upfront mortgage insurance premium of 2.25% of the total loan amount, up from 1.75% now. A $150,000 mortgage would require a payment of $3,375, or $750 more.

What It Means To Everyone! The general rule is: if someone cant' get financing to buy your home when you decide to sell, it's going to be difficult. To the extent that financing is available and markets function normally you have a better shot at selling. Even with these changes, FHA lending still will remain the largest source of home purchase financing.
These changes are designed to improve FHA's financial position and will ensure its long-term ability to guarantee affordable mortgages for families.  In the end these changes are also designed to engage borrowers who can reasonably afford a mortgage. From what we have seen in the recent past, guidelines that were lowered to promote homeownership backfired. This scenario is well reflected in the foreclosure problems now sweeping the marketplace.

Brought to you by Randy Charlton of Century 21 Home Realtors.

Foolproofing the sale of your home
The scenario is all-too-real for many home sellers today.  They put their home on the market. They're positive about the prospect of selling and settle on a price that meets their financial needs.

Six months later, however, they're left wondering, “Why hasn’t my home sold?” If you’re about to embark on the home-selling journey or you’re in it for the long haul – take note of these selling pitfalls and ways you can avoid them. 

Buyer’s Remorse
Purchasing a home is one of the biggest decisions one can make, which is why some people have trouble committing to a home they may love. In fact, some will look for reasons to pull out of the buying process. Savvy sellers and their agents remind the buyer why they were attracted to the home in the first place.

This might include pointing out the homes comparable value, the homes’ features that match the buyers’  needs or any additional features that help the home stand out.

Low Appraisals
Today, appraisers and the banks they represent are much more conservative when establishing fair market value. This may cause appraisers to issue a low appraisal of the home in question.

Sellers can combat the low appraisal, however, by doing several things. First, defend the price of the home by providing a list of the homes that were used to establish the home’s comparable value. Also, be sure to meet the appraiser at the home to point out any amenities or structural details that might not be obvious to the appraiser.

Conditions and Contingencies
Before the successful close of a transaction and during the escrow process, buyers and sellers must resolve certain conditions and contingencies. According to Trulia.com, a common condition of sale is the acceptance of an inspection report or the review of a preliminary title report. These issues can be problematic during escrow because they may be poorly written or do not include specific deadlines. One of the easiest ways to keep the sale from falling through the cracks is to ensure both parties are aware of the deadlines and conditions surrounding the contingencies.

Source: www.trulia.com

Extensions and Expansions
On November 9, 2009 President Obama approved the extension of the first-time homebuyer tax credit that was slated to expire on November 30, 2009. As part of the a $24 billion economic stimulus bill the program will now also offer a credit to homeowners who have lived in their current home for at least five years and are seeking to relocate. The new expansion also called to attention several special rules that apply to members of the military, the foreign service and the intelligence community.

These incentives couldn't come at a better time. If you're in the market for a home, and think you are among those who could benefit, be sure you understand the details of this great opportunity.

Brought To You By Randy Charlton Of Century 21 Home Realtors.

Home prices and interest rates are down, and your desire to buy a home is high. But many of my clients worry that their credit score just isn’t good enough for lenders to see them as a worthy credit risk, especially in light of today’s tougher credit and lending standards.

I am often asked if there is anything that can be done to improve your credit score. There are, in fact, several steps you can take. Here are five great suggestions from Bankrate.com:

1.Order your credit reports. You can do it for free once a year at annualcreditreport.com. If you've been denied credit, you are entitled to a copy of your report from the reporting agency. The company you applied to must supply the contact information and you have 60 days after denial to request a copy.

2.Examine your credit reports. Creditors do not necessarily report to each agency, so you may find differences in reports—and credit bureaus do not verify the information they get from creditors. Note any errors, such as incomplete or outdated information or inaccurate account histories. If you find errors, such as a paid-up account that was not reported or a difference in the amount owed, proceed to step number three.

3.Dispute and document. Complete the dispute form that came with the credit report or write a letter identifying each mistake and stating why it is wrong. Include a copy of the report with errors circled and copies of any supporting documents. Keep copies of everything you send. The credit bureau must investigate disputes within 30 days of receiving your letter. Items not verified as accurate by a creditor are removed and you will be sent a free, updated report.

4.Fix negatives. Call your creditors and ask for reduced monthly payments to help you keep current. See if the repayment schedule for fixed-rate loans can be extended. This may end up costing you more, but may keep you from being reported as delinquent. Arrange to pay off accounts in collection. Slowly close out unused credit accounts. Don’t cancel them all at once, as this may negatively affect your score. Remember, cutting up a card is not the same as closing the account.

5.Add positives. If you have a good credit history from a company that does not report to a credit bureau, ask them to do so. Apply for a secured credit card and build a solid payment history. Open a savings account to show creditors you are working to save and have reserves to help pay down debt.

Remember that your credit score is not always set in stone. There are actions you can take immediately to raise your score both in the short term and long term.

Brought To You By Randy Charlton with Century 21 Home Realtors

The biggest question: where did all the bank owned/reo inventory go?

Over the past few months the number of "new" bank owned properties to hit the market has decreased significantly here in our area.

Speculation is that the banks are holding on to this inventory and just releasing a small number of properties in order to drive up resale values.

Is this actually the case? Could be, but I also believe there are a number of successful "Loan Modifications" taking place. The banks aren't in the business to "take back" a large number of homes and then turn around and sell them. If they can process a successful loan modification it benefits them and more importantly the current homeowner.

I also believe that investment groups are buying the foreclosed homes at auctions prior to the bank taking them back as foreclosed inventory. You can read more about that and get an update on Foreclosure here in California by clicking here!

So what does the future hold for the reo inventory ... I don't think anyone has a solid answer and only time will tell. Are more foreclosed homes going to be released for sale? Yes. How many and when? Not sure.

Make it a great week!

Brought To You By Randy Charlton of Century 21 Home Realtors