A lockbox holds the key!

When you list your property for sale, an agent will usually put a lockbox on your door that holds the one thing keeping criminals out:  the key to the locks.  Now, I ask you, which of the following lockboxes would you choose to have on your front door?

The combination lockbox (left) has three major drawbacks.  First, it can be left unlocked.  Yeah!  If the last agent doesn't spin those little wheels, the key is available to anyone who walks up!  Second, the box doesn't care who knows the code. When the correct four-digit code is used, anyone can access the house key.  Third, the plastic door holding the key inside is about 1/6 of an inch thick. How secure do you feel now?

The lockbox on the right is the GE Supra Lockbox.  It requires an infrared 'key' that resembles a cell phone to open.  These electronic keys are issued only to individuals who should have access to listed houses and require the user to enter a PIN code to work.  The lockbox records the showing agent and the time it was accessed and transmits that information to the listing agent.  The house key, which is stored in a metal container encased by the box, is then released to the agent.

The one I'd choose? The one that can't be opened without another key.  My suggestion to anyone listing their property with an agent is to ask what type of lockbox will be used for key storage.  If it's not the Supra lockbox, talk to another agent.

Easy, peasy email notification

Did you know that you can receive automatic email notification of new and recently updated MLS listings?

It takes me about 10 minutes to set it up.  You can get updates when houses come on the market in your price range, with the amenities you seek, and all without having to waste time checking Realtor.com every day.  You will receive a notice when prices change for properties matching your search criteria, too.

To get started, you can give me a call (501.514.2319) or send me an email with your parameters, and the emails will start to trickle in.  There is also a link on each email that will allow you to stop them from coming.  Easy, convenient, and you are in control!

Homestead Tax Credit...don't miss it!

I recently had the unpleasant experience of telling a client that they had unnecessarily paid a few thousand dollars in extra taxes over the past few years. To their credit and my surprise, they took it well. They also vowed to never again pay the superfluous tax. What they now know (and you need to know) is referred to as the Homestead Tax Credit.

Taken from Arkansas.gov:

Homeowners in Arkansas may receive up to a $350 property tax credit on their homesteads. Eligibility for the credit is confined to a homeowner's principle place of residence. A homeowner is defined as someone who the owner of record, by deed or by recorded sales contract, or the beneficiary of a revocable trust owning the homestead. Nursing home or retirement center residents who own a home are also eligible for the credit; as are people who have deeded theirs homes to others while retaining a right to live in it until they die (A Life Estate).

Only one homestead per property owner is eligible to receive the tax credit.

Every home owner in Arkansas needs to be aware of this tax credit.  To get it, there is one thing you do have to do:  contact your county assessor and tell them you want the credit applied to your taxes. It's just that simple.

If you are not sure you have taken advantage of this "gift" from the government, email me your address, and I will let you know what the tax records say about your property.  You can also contact your county assessor for this information.

Insulation recommendation

When my wife and I bought our house, we knew next to nothing about home ownership.  We knew the obvious stuff (change your AC air filters, watch for leaks around the water heater, drip the faucets in really cold weather, etc), but we didn't know about the nuances of having to care for the entire structure and everything around it.

Once, when I was crawling around our not-too-spacious attic, I spotted a hole in the house.  Not a hole in the roof, mind you...a hole in the house.  Right next to the master bedroom, a "void," about three feet by three feet, was present that went all the way down to the foundation.  It was an area where the designer/builder couldn't make proper use of the space, so they just drywalled it off.  There is one huge problem with this:  there was nothing to insulate those interior walls against the hot/cold air in the attic.

I always noticed an extreme temperature change around this part of the house, but it never occured to me that there was a nine square foot hole in the attic insulation causing it.  To fix the problem, I took a large piece of styrofoam and blocked off the hole.  That did it.  The temperature in the house is much more even now.

I know that your house may not have that specific problem, but I wrote this post to encourage you to take a fresh look at your property (read:  investment) and see what you can do to increase the quality of life in your home.  Look for areas where extra insulation can benefit your utility bills.  Inspect your doors and windows for ways they can be sealed better.  Every little bit helps when it comes to keeping the cold and heat outside, and the comfortable temps inside.

Prepayment chicanery

Ready to save potentially thousands of dollars when you buy your next house?  Just say this to your lender:  "I don't want a prepayment penalty."  That's it.

A prepayment penalty is simply a fine for paying your loan off early.  If you want to sell your home or even refinance it, and you have a prepayment penalty clause in your agreement, you will pay a 'premium' to do it.  Lenders who include these clauses like them because they discourage the borrower from breaking the relationship with the lender, thereby keeping their customer.

Sometimes, a lender will offer a lower interest rate to entice the borrower to include the penalty.  As a borrower, you should ask yourself if saving an extra $35 per month is worth possibly thousands in fees down the road.  Personally, I have never signed a loan agreement that included a prepayment penalty.  I recommend you think twice before you sign one.

Interest rates expected to increase in 2010

What is the worst thing that you can do to hurt yourself in real estate dealings?  The answer is procrastinate.  I have heard the story over and over again.  People find a property that is what they want, they research it, compare it to other properties, call an agent, view it, and then....wait.  Wait for what?  The seller to get desperate, everything to feel right, the moon to shift phases, whatever.

It happens to sellers, too.  They are ready to sell.  They have done their due diligence, and even contacted an agent.  Then....they stop.  They wait.

The result?  Many times buyers lose the property.  It sells or goes off the market.  For sellers, their neighbors sell and move away while our potential sellers stay behind wringing their hands on what they should do.  Something else that can put on some pressure for both?  Interest rates increase.

That is a really likely scenario to become reality in 2010.  Don't take my word for it.  How about a quote from one of Freddie Mac's economists:

"The Federal Reserve's scheduled phase-down of it's multi-billion dollar purchases of mortgage backed securities, plus expected moderate growth in the economy, will force rates at least a percentage point higher."
-Amy Crews Cutts, Deputy Chief Economist with Freddie Mac

We have become accustomed to four percent interest rates:  4.5%, 4.75%, 4.875%.  This will not last forever, folks.  The interest rate is tied to the economy.  The economy is improving (no matter what your friends tell you).  This is a good thing.  We want a strong economy.  However, the incentive to hold interest rates down is slipping away.  They are beginning to edge up right now.

If you are ready to buy, do it.  If you are ready to sell, do it.  If you aren't ready for either, then don't do either.  But, please don't allow procrastination and worry to stop you from making a good decision.

Happy New Year

Happy New Year to all my readers!

I've been taking some time during Christmas for family and reflection.  I'm now rejuvinated and chomping at the bit to immerse myself in Conway real estate.

I'm looking forward to 2010 like no other year before.  I hope your year is everything I'm hoping for mine to be.

HAVEN House needs Help!

HAVEN, Help for Abuse Victims in Emergency Need, is in need itself.  The house, used to shelter girls in foster care from 6 to 18 years of age, is requiring significant repairs.

According to an article in the Log Cabin Democrat, the HAVEN house, 1701 Donaghey Ave., was built in the 1930's and began its service to Conway's young girls in 1986.  They are in need of materials and manpower to bring the quality of living up for their residents.  If you have skills of any kind that can be used to repair an old house, they can use your help.

If you would like to offer assistance, please send email to Jenny Morse at jmorse@caiinc.org.

Real Estate myth #2: The loan officer is your agent.

Here's a real estate 101 question for you:  Who does the loan officer work for?

Here's a hint:  it's not you.

Loan officers work for the bank.  Now I know that is kind of obvious, but the real point here is how that fact affects you.  Loan officers have a fiduciary responsiblity to the bank.  Their goal is to maximize the profits of the bank to the best of their ability.  The basic law of supply and demand kicks in here.  They try to borrow money at the lowest rates and lend money at the highest rates possible.  They negotiate their rates of interest on what they borrow.  You should do the same.

When it comes to obtaining a loan, shop around.  You can use the bank that you have always used, the one that mom and dad use, the one that has the prettiest building or advertising....but how do you know that their rates and terms are the best you can get?  The answer is by taking your potential business to at least three of them.  Compare apples to apples and see who gets you the best deal.  The really cool thing?  That comparison shopping is about to get even easier.

Beginning in 2010, all lenders will be required by federal law to use a standardized Good Faith Estimate form.  This form will outline the estimates for interest rates, origination charges, escrow information, settlement charges, and more.  The new GFE will tell you what charges can not change and what charges can change and by how much.  Some lenders are already using this form.

Most of the loan officers I know are upstanding, honest, and friendly.  You could trust them with your children, your house keys, and your money.  This is not a slam on any of them.  You just need to know that the loan officer is not there to represent you or to be your agent.  Only you can shop loans to find the best deal for you.  Don't rely on regulation to guard against ignorance.  Educate yourself and be prepared.

Holiday Festival of Light and other illuminated joy

I don't know about you, but I seem to be finding fewer Christmas lights glowing from rooftops this year. Folks might be trying to save some money by not plugging in the electronic cheer. That makes driving the neighborhoods less rewarding for those of us who like to load up in the front-wheel-drive sleigh, listen to Christmas music, and enjoy the wonderment that comes from exterior illumination.
**Special thanks to National Lampoon's Christmas Vacation for the allusions.

What we need is a strategy for finding the best Christmas light displays in and around Conway. I have a suggestion for your first stop. The "Holiday Festival of Light" that is in its fourth year at the Centennial Bank Soccer Park located about a mile west of Walmart on Dave Ward Dr. From six until nine nightly, you will find a mile of Christmas lights, music, and food. Santa is available for pictures with the kiddos, and there is a huge model train display sponsored by the Conway Model Railroad Club. The cost is $5 per carload, but you can get a season pass for $25 and $60 makes you a member and gets you all kinds of extra goodies.

I invite you to comment below with recommendations of neighborhoods, streets, or individual houses that have decorated themselves up right for the season. Please give a description of what we will find and directions on how to get there.