Linda Ferrara

February 17, 2009

We all have heard about the foreclosure mess. One of the issues is mortgages with no down payment.

My nephew wanted to buy a house. I told him that I was impressed that he was able to save up a down payment already! When he explained that he was planning on buying a house with no down payment, I sent him an email with the reasons not to do this. I thought that some of you may want to understand this better.

• When you have a larger down payment, you can weather storms such as the one we're in. If house prices ease, you are not upside down in your loan.
• When you put 20% down or more, you don't have to pay Private Mortgage Insurance. Basically, this is additional insurance you pay to the lender to protect them if you default. It's expensive and takes money out of your pocket.
• When you have a larger down payment, your interest rate is reduced.
• With more money down, your loan is less therefore your mortgage payment is less.
• 20% down or more gives you equity in your property. Eventually you will be able to tap in to that equity for repairs, college, etc. Don't buy a gold ring with the equity!!

February 16, 2009

There is a lot of information out there on how to prepare your home for sale. Here is a general list of what a seller should do to sell, sell, sell. I hope it helps you!

• The #1 item on the list is DECLUTTER! I cannot emphasize this enough. Recognize that you are going to be inconvenienced during the selling process. Buyers want to see the walls, ceiling and floor. Clutter will distract them from seeing this. You are going to have to pack up your things anyway, do it now and get ahead of the curve. To give you an idea, you should have one item on a table or cabinet. Perhaps a vase. Everything else should be removed. No papers around, nothing on the kitchen counters (Nothing!). Consider having a garage sale and sell some your old things. Or donate them to a second-hand store.

• Remove as much from your closets as you possibly can. Pack now. Take your off-season clothing and pack it up.

• The entire house should be sparkling clean. Top to bottom, inside and out. This is all about perception. The buyer perceives that if you don't clean the tub, you also don't take care of the roof, electric, plumbing, etc. Think insanely clean. Recaulk around the tub and shower to give it a fresh look. Wash your windows inside and out. Get rid of cobwebs. If you have light fixtures with plastic covers - -they tend to yellow - replace them. Clean your light switch plates. Heck, have a cleaning party; invite your friends and family. Have pizza afterwards.

• If you have lots of personal photographs around, they should be removed. Let the buyers imagine themselves in your house. Seeing photographs makes a buyer feel like they are ‘invading' your space.

• Get rid of smells. The most common smell is cat odor, and cigarette smoke. While the house is for sale, clean the litter box daily. Have a "No Smoking Inside" rule. Clean carpets and drapes/curtains. Some people have very sensitive noses and will leave a house before seeing the whole thing due to odors. Ask a friend to be honest and tell you if they smell anything.

• Let's talk about lighting. Replace every bulb in the house to high wattage bulbs. Open curtains, shades and drapes. Wash windows. When you know the house is being shown, EVERY light in the house should be turned on. Repeat: EVERY light in the house should be turned on. If a room only has one light, get a lamp or two. Turn them on.

• Fix the little things around the house. Loose cabinet doors, Kitchen drawers that don't close right, tight doors, missing electric plates, torn screens, dripping faucets, broken windows.

• Freshen up the exterior. Cut the grass, rake the leaves, trim the bushes, and edge the walks. Clean the gutters. Remove all debris from the yard. If you have a storage shed, make sure the door opens easily. Make sure the shed is clean and looks nice. Patch or reseal your driveway. Put a pot or two of bright flowers near the entryway.

• Plan on a way to contain your pets during showings. You should have 2-3 different options. 1. Take your pet for a walk / ride while there is a showing. 2. Ask a neighbor to coral your pet. 3. Take your pet to work day.

• There are quite a few television shows about how to sell your home. Watch a few of them to get ideas on what you can do.

February 15, 2009

Yesterday the local literacy program held its annual "Love Your Library Day" in Silver City. It's a great event where families are encouraged to come to the library and have some fun. Activities include listening to live music, book reading, making a valentine, selecting a free book to take home and keep, playing bingo, and a treasure hunt where you can win prizes.

It was well attended by over 200 people. I am very proud to be a part of "Literacy Link - Leamos" -- the literacy program. We help a lot of people in the community by offering private tutoring, computer classes, ESL classes, reading to children in the classroom and a robust book-giving program. To dat, we have put over 10,000 books into the hands of poepl in need.

To all the people who assisted in making the day a success, Thank you!

February 13, 2009

Happy Friday the 13^th!

I'm an avid gardener from way back so when I moved to the Southwest I had to learn some new rules.

• The ground is rocky here so it is likely that you are going to have to grow vegetables in raised beds.
• You probably will need to be fenced in to keep out the critters.
• It takes a long time to get the top soil that is delivered to be a rich soil. What they call top soil out here is not what New Jersey gardeners would consider topsoil! Make friends with someone with horses and get manure.
• You don't need calcium - -the soil is high in calcium. There is something called caliche which is big, hard deposits of calcium.
• The plants will be smaller in general but there'll be good size vegetables. Back in New Jersey, the tomato plants would be 6 feet high. Out here, maybe 3 feet tall. And you don't have to plant each plant so far apart.
• For water, I have a holding tank for rain water that helps augment watering. Be sure to let the soil dry out (the roots need oxygen). Water deeply so that the roots will go deep.
• In really hot dry areas, you would lay plants on the ground so that they shade the vegetables. That's not really necessary where I am; I think it depends on how much sun your garden gets.
• I find that I have less bug infestations than in New Jersey. Occasionally I had a few beetles that I ‘seven' (that powder that kills bugs).
• It seems that every spring we have a hail storm or two. I don't plant outside until after May 15^th. I also keep a bunch of empty pots and buckets near the garden so if I fear a hail storm, I just put a pot over each little plant to protect it. A lot less heartbreak!
• In New Jersey I would use ashes from the fireplace. Out here that's overdoing it. Our soil already has lots of potassium which is what ashes would be adding.
• Concerning tomatoes, I have had regular issues with ‘root-end rot'. This is where the fruit will form, but then the end will rot and kill the tomato. There is a spray you can buy for cheap that takes care of this. Well worth a couple of bucks to avoid the heart ache.

I hope that some of this helps you with your gardening success!

February 12, 2009

Since several of you seem to like the "Listing To Do List", I thought I'd share the "Under Contract To Do List". I hope you find it helpful - - I hope that by preparing for contracts, you GET many contracts!

Under Contract Checklist

Buyer's name and contact info:_____________________________________________

Seller's name and contact info:_____________________________________________

Agent's name and contact info:_____________________________________________

____ 1. Closing Date ___________________

____ 2. Copy of Contract to office clerk

____ 3. Give Insurance, Utility, "Change of Address", and Covenant information to Buyer

____ 4. Receive Ernest $ Check.

____ 5. Complete and Process Title Commitment Form. Title Co and contact: __________________________

____ 6. Inform buyer that closing $$ must be Cashier's Check or WT

____ 7. Required info to Lender. Lender name and contact: __________________________________________

____ 8. Mortgage commitment from Lender

____ 9. Appraisal Complete.

____ 10. Is property in Flood Zone? _____________

____ 11. Insurance Dates: ______________________

____ 12. Order Survey - req'd for loan (due date: ______________) Surveyor: __________________________

____ 13. Copy of survey to Buyer

____ 14. Title Binder Rec'd. and Reviewed

____ 15. Is property on private road? If so, is Road Maintenance Agreement required?

____ 16. Is there a permanent heating source on property? - required for loan

____ 17. Signed copy of Seller's Disclosure

___ 18. Signed copy of Lead-Based Paint Disclosure

____ 19. Order Home Inspection (due date: ______________)

____ 20. Order Pest Inspection (due date: _________)

____ 21. Order Septic Inspection (due date: _____________)

____ 22. If Aerobic, must have Maintenance Contract

____ 23. Septic Transfer Form, if Required

____24. Order Well Inspection (due date: ________ )

____ 25. Copy of Inspections to Buyer

____ 26. Update Websites and CBER Board

____27. Schedule and perform walk thru

____ 28. Sold sign on property

____ 29. Update MLS System

____ 30. Closing appointment made at Title Co.

____ 31. Info entered into tracking spreadsheet

____ 32. "Just Sold" notices sent to neighbors

____ 33. Proof of Funds Due Date: _____________________

____ 34. Trust Agreement involved? Copy to Title Co.

____ 35. Put dates on tracking Calendar

____ 36. Well Transfer Form to Buyer

____ 37. Other: ______________________________________________________________________________