Ann Dail, Broker/Realtor,ePRO, SRS, B.A.Chem

This morning as I was reading a recent article from the NY Times "For Athletes in Motion, Real Estate Can Be a Burden", it re-emphized in my mind the importance of always advising all clients of the financial implications of investing in real estate. Having been around various aspects of real estate for many years including corporate consturction of plants and labs as well as sale of residential homes I have become acutely aware of our resposibility to advise clients of the full realm of possibilities, including what might happen in worst case scenarios such as at the end of a variable rate mortgage, or buying that dream home that will stretch their budget. It is too easy to get caught up in wanting to close the deal. While real estate can be a good investment, even in this market, it requires us to really help our clients analyze their long term needs.

I learned a hard lesson personally in a ReLo move from Ohio to California. Several years ago I moved from Ohio selling a home in a depressed housing market losing about $30,000 selling that Ohio home with a 16.5% mortgage. (Note my interest rate and we had excellent credit!) Coming out of that sale cash poor we bought a low end condo $150,000 in California as it was all we could afford since mortgage rates had risen to the 18% level by that time. Now that was before the chemical company who employed my husband began to guarantee transferees a break even that most of them give today. To get that low end starter condo, we got an ajustable rate mortgage fixed for 1 year. The first month our mortgage passed that starter rate our payments jumped nearly a thousand dollars with 6 month adjustment periods where they could continue to go up. Luckily we were in a boom California market so that condo went from $150,000 to 250,000 in that 12 months. We sold that property and bought another single family with a 30 yr fixed mortgage. Two more years and my husband was transferred again, but this time in a down market just before Orange County went bankrupt. By that time the company purchased the home and we moved to Texas with a break even. If our company had not matched our purchase price we would have been in position many of today's homeowners find themselves of being unable to sell a home in a transfer.

Here are some questions I try to ask my Relocating Buyers before I show them any homes:

1. How long do you think you will stay here? If the time is less than 2 years they need to be very careful where they buy and what they buy. For some it may be better to lease if their qualification only puts them in older fringe areas that are the most vulnerable in economic downturns.

2. What monthly house payment is comfortable for you? For most people that's less than they qualify for.

3. If the unexpected happens, how long can you survive financially? This makes people think of that reality

4. If you can't sell your home and break even are you willing to use some of your own money to sell & how much of your own money are you willing to lose? Are you able to keep it as a lease property? (The type of mortgage they choose may be influenced by this answer)

I tell my clients, "When you come back to me in 3-5 years and ask me to sell your home, I want to guide you so that we'll have the best possible chance to do that."

This fall I visited a corn maize for the first time. The Baton Rouge area corn maize is north of Denham Springs on Hwy.16. The maize is a journey thru the field with clues for your family to solve at each turn to help you not get lost. It engages every member of your family, even the younger ones. For example one of the clues involves singing the song "Twinkle, Twinkle Little Star" and deciding the direction from that song. Threre are many other twists and turns; so don't go too close to dark unless you bring a flashlight! For the more adventursome there is a haunted trail after dark on some evenings. Call to be sure before you go.

In addiiton my family loved the puppets that sang songs in the barn area where everyone gathers to catch a "cow Train" There are 2 types of rides: one a fast train and the other a bucking cow train. This was a highlight of our trip.

Additionally, there are duck rases where plastic ducks compete on water flowing from old fashioned hand pumps. (It will use up lots of your family's extra energy pumping that water!)

This morning I came across a novel idea I wanted to share. If you are looking to redo a room in staging your home for sale or just want to have a simple winter project to give a little color and light to a drab area, consider this tip from Southern Living Magazine's Anne Turner Carroll. Create Do-It-Yourself artwork by framing a colorful piece of wallpaper that you like. It's such an inexpensive and great tip that you can change up your color frequently! I am an avid reader of the magazine and highly recommend it. In the Nov.2009 issue (go get a copy for holdiay recipe ideas too) you'll find this tip plus many others for ways to "Wake Up a Tired Bedroom".

Along with an extension of the existing 1st time homebuyers tax credit with a few minor changes, Obama is expected to sign into effect today, Friday Nov.6th a tax credit for existing homeowners. This credit will be $6500,, purchase contract to be dated before April 30, 2010 and after date President signs bill, must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years, actual closing to occur before July 1, 2010. Complete summary of 2 bills by Nar

For a summary of the Basics of the Extended Home Buyer Tax Credit, visit this article The Basics: Extended Home buyer TAx Credit 2009/2010

This afternoon the bill extending the first time homebuyer credit passes the House with a 403-12 v0te. The President is expected to quickly sign it into effect.

The $24 billion package also contains extension of the unemployment benefits. The IRS says some 1.4 million people applied for the homebuyers credit through August, according the the Business Report. The legislation would extend the program through June of next year, as long as the buyer signs a contract by the end of Apr.il. It also offers a $6,500 tax credit to those who have lived in their current residence at least 5 years.