You must appraise real estate to sell it.  If you have a Realtor that you trust, they can point you in the right direction.

Appraising is the science of determining the value of a home.  Your real estate appraiser must be state-licensed and certified.

Don’t confuse a comparative market analysis with an appraisal. Realtors use CMAs to determine a realistic asking price. Your appraiser’s report will be much more detailed.

Here is what your appraisal should include:

* Details about the property with comparisons of up to three similar properties.
* An evaluation of the real estate market in your area.
* A listing of the features and characteristics of your home, including a description of the lot, exterior and foundation.
* A visual assessment of your home, including approximate age, overall condition, number of bedrooms and bathrooms, etc.
* A description of equipment in the kitchen and a description of the attic and garage, if applicable.
* Materials in each room, such as floor covering and trim.
* A listing of utility systems like heat and electricity.
* Statements about issues that may decrease the property’s value.
* Documentation of serious flaws.
* An estimate of the value of the home.

If the appraisal uncovers unexpected problems, know that most problems are fixable.  An appraisal is NOT a home inspection which takes an in-depth look at the structural soundness of your home.

Remember, don’t panic if your appraisal is low, because a good Realtor will make the deal work. 

Congress is about to approve the “Cash for Caulkers” program.  This is the program that will help homeowners do money saving, energy retrofits on their homes.  If it passes, as expected, home owners could be eligible for a tax credit worth up to $12,000 r half the cost of the retrofits, whichever is lower.

Want to find out more about how the program will work and what that means to you as a homeowner, a consumer, and a citizen?  Click here.

Just because it’s winter and you can’t see much of your lawn and landscaping doesn’t mean you should just forget about it.  Here are a few simple tips so you don’t neglect your lawn.

1. Make sure to knock the heavy snow and ice off your trees and shrubs.  Too much weight can damage your branches.
2. When you shovel, try to pile some of the snow around your trees, shrubs, and perennials.  When the snow melts, all the extra water will be great for the plants.
3. If the snow EVER melts, gently rake up the flattened areas of grass on your lawn to prevent mold.

It’s February 2010 already.  Hard to believe, isn’t it?  I’m excited today because it’s Groundhog Day.  That probably seems a little odd.  Groundhog Day doesn’t seem like much to get excited about, but I learned something new about it this year.  This holiday actually originated as a celebration of the halfway point between winter and spring.

This winter has been a rough one and I don’t care how much you love your home, just about everyone in the Midwest has got to be suffering from a little cabin fever right about now.  The idea that we are halfway to spring is something we can all get excited about.

I read that half the groundhogs today saw their shadows and half didn’t.  So maybe we’ll have 6 more weeks of a tough winter or maybe it’ll be more mild.  Either way, we’ll survive it to greet spring and I can’t wait!

Winter has really settled in this year and it doesn’t seem to be going anywhere.  Ice.  Snow.  Wind.  The works.

If you didn’t winterize your home at the beginning of the season, it’s not too late.  There are still some steps you can take to make your home safer and more comfortable AND some will even increase its value whether you’re selling it now or 5 years from now.

You don’t have to do it all in one day. Take a day to size up your projects and create a list for necessary purchases. Then, begin your work another day.

• Replace the filter in your furnace.
• Have a heating/cooling expert look at your furnace to ensure it is operating at its top efficiency.
• Clean your registers.
• Install a hot water heater insulating blanket to conserve heat.
• Purchase pipe insulating material to insulate all exposed pipes in your basement. At the very least, use some heat tape to cover the pipes.
• Switch the direction of the ceiling fan’s blades. This will maximize the circulation of heated air in the room.
• Add insulation plates to electrical outlets to minimize heat loss due to air leaks.
• Caulk or apply weather-stripping around problem draft areas.
• Test the flue for each fireplace to make sure it is tightly sealed when closed.
• Keep extra water and canned food in storage just in case.

Remember, a little time and investment now can save you from big, expensive repairs in the long run.

In 2009, one out of 20 home buyers went with adjustable-rate mortgages.  That number is expected to increase in 2010.  It makes a person think…is an ARM right for me?

An ARM is a loan where the interest rate is periodically adjusted over a period of time.  Generally, buyers start with a lower rate that increases over the course of the loan.  Most people will choose this type of loan so they can get the house they need at an affordable rate while they’re starting out.  They expect that their incomes will increase over time to adjust to the increase in the interest.

With the economy more shaky these days, it might seem like an ARM loan is not exacty the best-calculated risk.  However there are situations where an ARM is still a smart choice.

The most popular ARM is a 5/1.  What that means is that the introductory loan rate will remain unchanged for the fist five years.  After that, the interest rate ca be adjusted annually.  Many people buy a starter home that they plan to sell within about five years.  This is one of those situations when a 5/1 ARM is your best possible option.  You can pay a lower monthly payment than you would with a 30-year fixed-rate mortgage over those five years while building up equity at the same time.  If you sell after that initial five years, you’ve just made a very savvy deal.

This month, the Federal Housing Administration announced some changes that will affect home buyers in 2010.  The goal is to help buyers avoid buying a home they can’t afford.

Previously, buyers with a FICO score of 500 could buy with a 3.5% downpayment.  Under the new rules, a minimum FICO score of 580 is required.  Buyers can still get an FHA loan without that score, but they will need a 10% downpayment.

The up front mortgage insurance premium will increase from 1.75% to 2.25% of the total loan amount.

In addition, sellers will now only be allowed to pay closing costs of up to 3% of the sales prices ccompared to the previous allowance of up to 6%.

These are the primary changes you need to know about.  For more information on the changes that will go into effect this year, check out this article.

Sometimes I find something really useful in other people’s blogs that I have to share.  Today is one of those days….

From MarketWatch, Alison Rogers (01/21/2010)

Larry Lohrman, author of “Learn Real Estate Photography and Real Estate Photographer Stimulus Package e-books”, offers these key tips for shooting the best real estate photos.

• Get the best photo you can of the exterior because that’s the one that will persuade potential buyers to look at the rest of the photos.
• Emphasize the home’s best points. Make sure you include a picture of the area the sellers think is its most attractive selling point.
• If possible, shoot the exterior shot a half hour before or after sunset with all the interior lights turned on.
• Hold the camera straight. Using a tripod is always a good idea.

The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), administers various single family mortgage insurance programs. The FHA 203k loan program is the Department’s primary program for the rehabilitation and repair of single family properties. In simple terms, this is a kind of home improvement loan. With so many distressed properties on the market, the 203k loan is an excellent mortgage option if you’re interested in a fixer-upper.

Find out all about the FHA 203k loan here.

The IRS has released a new form that eligible taxpayers must use to claim the first-time homebuyer credit. Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, must be filed with the taxpayer’s individual tax return and is used to report the purchase of a home that makes the taxpayer eligible for the credit. In addition to Form 5405, eligible taxpayers must also include with their 2009 returns a copy of the settlement statement, executed retail sales contract (for mobile home purchases) or the certificate of occupancy (for newly constructed residences). The IRS reminded taxpayers in a news release that those who are claiming the first-time homebuyer credit cannot e-file because they must attach a proof of purchase to their returns.

For more information about fiiling your 2009 taxes, see this article at the Journal of Accountancy.