TeamResults

We as agents and members of the real estate community often talk about saving money when buying a home. Savings might be commission amounts, reduced asking price, seller paid, closing costs, etc.

Something we don't often talk about and should is; saving money on your homeowner's insurance policy. Every home needs to be insured and sometimes the cost of insurance makes consumers take less coverage. Here are some tips to lower your homeowner's insurance cost.

• Shop around. It takes time but could save a bundle.
• Raise your deductible. The deductible is the amount you have to pay towards a loss. A higher deductible, generally means a lower premium.
• Don't confuse what you paid for your house with ‘rebuilding costs'. The land your home is on isn't at risk from theft, or other perils. Don't include the cost of land in your coverage.
• Take advantage of multiple policy discounts. Often if you insure your home and car with the same company, you'll receive a discount on the premiums for both.
• Maintain a good credit record. Companies will use your credit report to determine the price you pay for insurance.

If you would like more information, please contact us be e-mail and request our free brochure, 12 Steps to lowering your homeowner's insurance costs. Include your postal address.

TeamResults@Century21.com

The ongoing reporting of the ‘crisis' in the mortgage industry took a turn today when Wells Fargo & Co. reported that it is committed to providing sub-prime (higher cost/risk) loans to borrowers. The company insists they continue to do so in a responsible way, citing the need of some borrowers to opt for sub-prime funding in order to get started.

As companies in the mortgage industry continue to take the heat for high losses and in the case of New Century, face deadly decline in share price as well as possible legal woes, Wells Fargo & other larger, well diversified, & respected lenders have taken less of a fall.

This information compiled from news sources by Team Results. Contact via e-mail at TeamResults@Century21.com. Serving Southern California's coastal and surrounding communities.

"The difference between Ordinary & Extraordinary is that little Extra"

-

John Wall, Residential & Investment Properties
CENTURY 21 Results Inc.
(562) 449-8421

Most families use their refrigerator as a showplace for children's art, family photos, funny magnets and reminders. However, when a house is for sale, all these things should be removed. Instead show buyers a clean, uncluttered space.

Make sure the countertops are as empty as possible. Just a toaster or perhaps a coffee maker should remain. Everything else should be put away. Clutter-free countertops make a kitchen seem bigger.

Go through all your cabinets and drawers. Get rid of unwanted food. Put dishes and glasses you don't use away. The same goes for appliances and utensils. Extras like waffle makers and slow cookers should be temporarily stored away. And remember to tackle that "junk drawer" too. Cabinets and drawers will seem more spacious if they are emptier.

If you need to clean up your credit score; you don't have to call one of those 1-800 numbers. Which you should be cautious of anyway.

There are simple things you can do yourself that may dramatically increase your score. First off, obtain a free copy of your credit report from each of the three major credit bureaus. You're entitled to 1 free copy each year, an more if you meet certain conditions.

With reports in hand, look for past due balances and bring them current. If you have many outstanding debt, bring them as close to zero as possible. Paying the most recent debts first, then older ones.

Consider distributing remaining debt among open credit lines. Your goal is to spread out your debt so that your balances are below 50% of available credit. Do not close existing accounts, and in fact, it might be beneficial to open a new account and transferring some old debt to it.

If you are married, keep separate credit cards. Doing so will enable the two of you to distribute debt out to adjust one spouses score. Requesting an increase in available credit will reduce your debt ratio and most credit card companies will gladly increase the credit limit on a card you've carried for a long time, and have a good payment history.

Past due balances and charge off's that are 2 years old or newer should be paid off. Longer than that and you can actually lower your score temporarily. Most importantly, if there is any information that is incorrect on your report, you need to request that the credit bureaus remove the inaccurate information. They have an obligation to take action within 30 days of your request.

For more ideas or help creating a personal plan of action, please feel free to e-mail TeamResults@century21.com.

(c) 2007 John Wall.

Banks and lenders want to loan money to people who have the ability to pay back the debt. That's why they will look closely at your credit score or FICO score during the application process. The score is a number, generally between 300 and 850, that indicates how much risk is involved in lending you the money. It is determined using a statistical model and is based on your credit history. The higher your FICO score, the better.

So now you may be wondering, what causes someone to earn a low FICO number? Here are five things that can adversely effect your rating.

1. Late Payments - Failure to pay your bills on time can drag down your score. This includes credit cards, utilities, school loans and other debts. The later the payment the more damaging the effect. It is also important to note that late payments stay on your credit history for a period of seven years.

2. Maxed Out - If you are carrying a lot of debt or are close to your credit limit on several accounts, you could be seen as high risk. In other words, the lender sees you as someone who is spread too thin and may not be able to make future payments.

3. No Track Record - Lenders also look at the length of your credit history. If you've only had accounts open for a short period of time that could hurt you. Lenders want customers with a proven track record, where history shows they are able to pay back debts over a significant period of time.

4. Not Diversified - One credit card, also called a revolving account, used consistently and paid on time may not be enough for some lenders. A good mix of credit, like car loans, other mortgages, school loans in addition to revolving credit is viewed more favorably.

5.Too Much? - If you've opened several new accounts recently, it may raise a red flag. Your score will factor in the number of new accounts versus more established ones.

Some content (c) 2007 CENTURY 21 REAL ESTATE, LLC. All Rights reserved. Re-printed under license agreement.

 John Wall, Residential & Investment Properties - CENTURY 21 RESULTS, TeamResults@Century21.com

Real estate can be one of the best ways to put your money to work. Historically speaking, real estate investors who do it right have seen steady returns. If you are considering buying as a business enterprise, consider these four points.

1. Do your homework -Know your finances inside and out before you buy. Although you may be able to count on rent to defer some of your costs, be sure to factor in renovations, emergency repairs, vacancies, recurring costs and other expenses.

2. Know your strategy - Is your plan to buy a home, renovate then sell it for a profit? Do you plan to hold onto the property for the long term? Come up with a specific plan with benchmarks that will help you determine if you are meeting your goal.

3. Location - Whether you are buying residential, commercial or vacation property, pay special attention to location. It is often better to purchase a mediocre property that can be renovated in a prime location than to buy in a less desirable area.

4. Know the tax implications - There are definite tax benefits to owning a second property, but there are also repercussions when it comes time to sell. Capital gains tax must be paid on profits from a real estate sale. If you plan to use the proceeds to buy again, look into a 1031 tax deferred exchange. This provision allows you to defer capital gains and roll-over the funds into other real estate investments.

 Some content (c) 2007 CENTURY 21 REAL ESTATE, LLC. All Rights reserved. Re-printed under license agreement.

 John Wall, Residential & Investment Properties - CENTURY 21 RESULTS, TeamResults@Century21.com

when the time comes to consider buying or selling a home, you'll have questions that you might want answered before talking to an agent.

As an agent myself, I invite my clients to do a little homework before sitting down with me. It makes the job of counseling my clients easier, when we all have a clear picture of the bottom line numbers that effect our strategy. Working this way enables all of us to work smarter, to reach a desired result.

First American Title Company, has online calculators available for free and without having to sign up for anything, that you can use to educate yourself prior to making important decisions. The link is here at http://www.fatcola.com/inside/calculators/.

 From there you'll find tools that will help you:

§         Determine monthly payment and amortization schedule of your home loan.

§         Qualify for a home loan.

§         Decide if it time to refinance your current home loan & where your break-even point is.

§         See a side-by-side comparison of buying vs. renting a home.

§         Determine your tax savings that are available to you.

The Los Angeles Times today printed an interesting piece on real estate blogs. In it Brad Inman (Inman News) was quoted as saying, "some of the best reporting this year has been from the blogs."

I guess that's kudos for all of us here. My favorite quote in the article was from a reader of the Housing Bubble Casualty Blog who said, "you were one of the influences that saved me from buying in Los Angeles". It made me wonder where that person is renting now.

According to Adam Rappoport, San Deigo Broker, "bloggers see the same statistics we all see, but they interpret them differently."

Read the article for yourself here, and let me hear your view. Personally, and this has been said many times before; Real estate is an ever changing business with ups and downs like all others. Its also a very local marketplace. In my area alone, there are neighborhoods within blocks of each other that are enjoying quick sales with offers at or near asking, and others that are holding inventory 3 or four months old.

I guess my answer to the question "is it a good time to buy?" is: That depends on your point of view. If you are looking for a quick way to make money with real estate, it might not be a good time. If you are looking for a home to raise a family, and a place to call your own - then it's a great time.  As far as bubble casualty blogs and the like, these people are the ones who didn't buy when they could and now are regretting it, while justifying their stalling on unforeseen market conditions. Those are the people who resign themselves to renting forever. As a landlord myself, I love those people - because they pay all my bills for me and If I want to give myself a raise... Up goes the rent.

The people who actually are experiencing a bubble are those who never should have bought in the first place. They are the folks who sat in front of a loan officer who offered a great deal on a loan they could barely afford, and took the deal. Of course, without realizing that they'd end up owing more than they thought, and wouldn't be able to make the payments 5 years down the line. That truly is just shoddy work on behalf of the mortgage industry, and a spotlight on the fraud that takes place in it.

Advice for buyers; seek out a mortgage planner - who will lay it all out and show you how much your investment really is. And, if you have to lie about your income or debts to get a better deal, don't. (aside from being illegal, you'll only end up with a home you can't afford.)

I was looking at Gary Watt's forecast for 2006/2007 and I won't bore you with numbers, because they are accurate within 2% for homes and condos sold. But what he says about the media portraying scary impending events as they relate to real estate.

We've all read or heard about declines in sales, increased foreclosure activity, blah, blah, etc. Gary attributes it to Newspapers, and Television's preserving advertising dollars by instilling anxiety in their readers/viewers.

He of course gave case in point examples which were meant to make us laugh. Last night though, I received a case-in-point example of my own and again this morning. Last night on the local news, the report focused on Riverside's falling market, and devestated communities, due to affordability. Of course they interviewed a local real estate agent who produced a DataQuick NOD list which was many pages thick. To the layman; it might appear the real estate market as fallen, especially in riverside. Really!? why are people still moving there?

The truth is that riverside has never historically been a strong market. What has driven their boom is the available vacant land that just isn't available anymore in other areas. Large communities were developed and people moved in. Many of those people got loans that they could not afford because they thought they were getting a great deal. What I keep hearing over and over is that those who moved out, now want back in. I'm not an economic analysist or anything so I won't tell you about all the people who blame it on the price of gas and distance from their job.

What I will tell you is that of the seemingly large numbers of foreclosures, the majority don't get foreclosed on. The seller's that are really in trouble are the ones who have no equity because of Neg. Am. Loans. Those are the ones, these stories should be about. The people who were ripped of by their lender. Not the misleading market decline.

This morning in the LA Time's business section, is an article about the people who bought homes, who would not have otherwise been able or wanted to. Guess what the conclusion is... They are the one's who will keep the United States out of Recession!

Really!? So what is it? Is the real estate market falling, or is real estate a stronger indicator of the overall economy than ever before? Or is the market doing just what its supposed to; adjusting to changing market factors?

To sum this little rant up. The statistics are great, but, the news is bad, until Wednesday morning when the news is good.

Thanks.

I'm interested in hearing of doomsday newsreports that don't seem to quite match your market figures I think I'll save them for next year and see if any come true.

Bluff Park is Long Beach's nicest neighborhood, featuring homes and Mansions from the early 1900s. This neighborhood has been home to celebrities, politicians, and captains of industry.

Bluff Park's boundaries are

Ocean Boulevard

Junipero Avenue

Loma Avenue

2^nd Street

MAP

The centerpiece of Bluff Park is the Long Beach Museum of Art. Located at 2300 E. Ocean Blvd., the LBMA was built in 1912 as a private residence for Elizabeth Milbank Anderson a wealthy philanthropist connected to the Borden Company. Perched atop the bluff overlooking the Pacific Ocean, and harbor, the museum is a perfect spot to enjoy a cup of coffee in their café while looking out at the views of Catalina Island, Long Beach Harbor, and the Queen Mary.