La Quinta Real Estate Blog

AVOID MOVING COMPANY SCAMS

 Recently, we have heard reports of numerous moving company scams where helpless customers are left with huge bills and no furniture.  Many people are shocked to receive bills for thousands of dollars over the original written estimates given to them by moving companies.  And some are finding their furniture and household goods held hostage until they pay.  How could this happen? 

 Tim Walker reports scenarios like those above on his website www.movingscam.com.  His own bill for a move from Sterling, VA to Carson City, NV escalated from the $1,869 quoted in his written estimate to over $5,000 at payment time.  Walker was stunned to find out the moving company was holding his furniture hostage in a warehouse and would not deliver anything until Walker paid the bill in full. 

 After the ordeal, Walker started up his website to educate others about the scams movers use to wring more money out of unsuspecting customers' wallets.

 In a recent article on MSN Money, writer Liz Weston gave some insight on why movers can get away with such behavior. 

 In 1995 Congress eliminated the Interstate Commerce Commission, which formerly regulated the moving industry. In its place, the Federal Motor Carrier Safety Administration now has responsibility for regulating moving companies, but focuses primarily on reducing crashes.  FMCSA has only nine investigators to pursue thousands of complaints against moving companies each year. 

HOW THE SCAM WORKS

A big part of the scam involves quotes that don't really bind the moving company to their price.  When a moving company gives an estimate, they treat it as such - an estimate, not a binding agreement. 

It is suggested that they purposely underestimate the weight or cubic feet for your move just so they can win the bid.  Then, once you sign the agreement, they charge you anything they want to for the actual move. 

At movingscam.com, Walker advises customers to get either a "binding Not-To-Exceed" quote or a "binding estimate".  With both of these quotes, the customer should not have to pay for any weight or cubic feet in excess of the original quote from the moving company.  Though this offers some protection, some customers still find themselves stuck even though they have a binding quote from a moving company.

ADVICE FOR AVOIDING A SCAM 

Walker gives some excellent advice about finding a reputable mover: 

 1.  Do not use the internet as a resource for locating a mover.  Almost all the victims of moving scams located their mover through the internet.  

 2.  If you are able, the best option is to rent a truck and move yourself.

 3.  If you can't physically handle your own move, use the telephone to locate a reputable moving company.  Call local real estate agents or friends who have recently made a similar move.  Check with your company's human resources department or relocation provider for moving company references.  If you need to, pick out a large employer in your community and speak to the person in the human resource department who coordinates moves.

 4.  Call the moving companies and ask them to come to your home and give a quote.  If they will not come to your home, remove them from your list.  When they get to your home, have a list of questions to ask. 

 Remember to ask about the company's name and any aliases they use, as well as how long they have been in business, company address, local phone number, DOT and MC License numbers, web site address, email address.  Get at least three references.  Weston at MSN Money further advises to ask how long the company has been in business under the present owner.

 5.  Call the references.

 6.  Get an in-person, weight-based, binding quote.

 7.  Do not sign a blank contract.  We repeat, do not sign a blank contract

 8.  Go to the moving company's offices and storage facility and see what things look like.  Do the trucks have the correct name painted on the doors?  Is the place organized and clean?

 9.  Do not accept a substitute.  If another company shows up at your door on the day of the move, fire them.

 10.  Do not use a broker who sub-contracts your move to another company.

 11.  Check out the moving company at the Better Business Bureau.  Look up the mover's DOT number on the Federal Motor Carrier Safety Administration's Safety and Fitness electronics system website http://www.safersys.org  Does the number match the name of the moving company you were given?

 12. Check www.movingscam.com to make sure your moving company is not on"The Black List." 

 If you follow these steps, you'll go a long way toward protecting yourself from a bad scenario next time you move.

 

RE/MAX Executives, Inc.

2260 North Druid Hills Road

Atlanta, Georgia 30329

770-939-3174

sallyenglish@englishteam.com

www.englishteam.com

http://sallyenglishblog.com/

   

 

 

 

All content copyright © 2009 by Sally English RE/MAX Executives, Inc. Atlanta Georgia.

This sale offering is made subject to errors, ommissions, change of price, prior sale and withdrawal without notice.  Potential purchasers should make a physical inspection to verify all features independently.  EQUAL HOUSING OPPORTUNITY.  Each REMAX office is independently owned and operated.  Sally English is not an attorney or CPA and ALL legal or tax advice should be rendered by a professional.  Thanks for visiting my BLOG! 

 

How to Have a Seller Pay Your Closing Cost While Using a First Time Home Buyer Mortgage Program to Cover Your Down Payment

Being a first time home buyer can certainly be a confusing situation. If you do not work with a Realtor and loan officer that know the business well, the complexities of buying a home can whirlwind out of control. As a first time buyer using first time home buyer mortgage options, these situations must be handled even more delicately. This article will focus on how to get the seller to pay the closing costs associated with the purchase of a home, and how to utilize local state or county first time home buyer grant/assistance programs to cover your required down payment needed to purchase a home.

STEP ONE - LINE UP YOUR FIRST TIME BUYER PROGRAM

Meet with a loan officerto be pre-approved for a first time home buyer mortgage and to confirm the amount of concessions you will need (or, how much you need the seller to pay for you). These options and figures can vary greatly based on the location of the home, the loan programs available, credit profile, the home's taxes, and more. It is vital that you find a loan officer that has a working knowledge of all of the local first time home buyer programs.

It is not uncommon for a loan officer to give inaccurate advice based off of his/her specific bank's limited options. The fact is that most lenders do not offer local first time home buyer financing. Many lenders simply state that, for instance, FHA or USDA loans are first time buyer programs. This is inaccurate, and indeed this can keep some people out of the home buying "game". To complicate matters, even if you find a lender that offers one of this programs, their loan officer(s) may have never worked with this type of program.

So to reiterate, find a local, experienced "first time home buyer" loan officer, and don't be afraid to ASK MANY, MANY QUESTIONS. Any reputable loan officer will be happy to answer all of your questions.

Some first time buyer grant/assistance programs are tied to the actual mortgage - they are a one-in-all financing scenario. Other grant/assistance programs are completely separate from the mortgage approval process. Depending on where you are looking to by, some of these programs may overlap. You may prefer one program above another, or sometimes even use more than one at the same time. Again, another reason to work with a loan officer experienced in helping first time buyers with these types of financing.

STEP TWO - DETERMINE CONCESSIONS

Once the first time home buyer grant/assistance program is determined, the lender can then calculate the amount of seller concessions you will need (the amount the seller will need to pay for you). Let's look at the following example to determine how a lender would determine this.

For our example, we will use the SMART START program currently offered in New Jersey (to participating lenders). With the NJ Smart Start program, a buyer can obtain assistance of up to 4% of the loan amount. In most cases, the buyer will select an FHA mortgage which requires a 3.5% down payment. (in this case, the mortgage is approved together with the assistance program).

Let's break this down:

Home buyer purchases a home for $200,000

FHA down payment requirement is 3.5%, or $7,000

The loan amount after the 3.5% down payment required would be $193,000

The assistance program, in this case, would be 4% of the loan amount, or $7,720

We find that the assistance of $7,720 covers the required down payment of $7,000

The left over assistance money ($720) would be used towards the buyer's closing costs.

Let us assume the buyer's closing costs plus prepaid items come to $6,000

To find out how much you need the seller to pay, you would take $6,000, subtract the positive credit from the assistance program ($720), and that is the amount the buyer would need to request for the seller to pay = $5,280

 

STEP THREE - START MAKING OFFERS

Meet with a Realtor to discuss your pre-approval and your objectives. Even though many Realtor's are familiar with seller concessions, many are not familiar with home buyer programs such as those mentioned above. To be ultimately successful you will want your loan officer and your Realtor to speak in detail about your specific loan approval and financing terms. As a buyer, do not assume all parties are on the same page. As a buyer, your involvement, even as a first time buyer, is very valuable.

Some Realtors will be priceless when making offers and negotiating for a buyer. Some will have a tendency to make offers based on the pre-approval amount only, not paying attention to the seller concessions desired (or required). Some agents may request the maximum amount of seller concessions allowed with FHA, which is 6%, but this is rarely needed.  If not structured correctly, the buyer will potentially lose out on the excess concessions they don't use, meaning that they over pay for the home. 

Maybe it goes without saying, but you "Get what you pay for" when you choose a professional to work with. Except in this case, you may pay much more (for a house) and get much less (from the seller). Ask as many questions as possible. It will help you find the right person(s) to work with.

 

 

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Steve Kappre is a Mortgage Planner with Treasury Mortgage. Steve specializes in;

• All areas concerning NJ First-Time Home Buyer Mortgages, grants, down payment assistance, tax credits, and more.

• Reverse Mortgages

• Equity Management strategies for high-end homes and high net worth individuals.

Contact Steve Kappre directly at 856-419-3561 or at www.stevekappre.com

      

I'll start off by saying that my choice of career obviously shows that I'm a believer of people investing in real estate, but that being said, I also believe that purchasing a home is one of the biggest financial decisions you will make in your life and you shouldn't purchase a home unless you are ready. 

If you have been on the fence about buying your first home or selling your current home to either upsize or downsize to a different house, there are some compelling reasons to make a move in 2010. 

#1 - FEDERAL HOUSING TAX CREDIT- The Worker, Homeownership, and Business Assistance Act of 2009 extended the tax credit last month.  First-time home buyers can still receive a tax credit of up to $8,000 for a principal residence.  The tax credit was also expanded so that repeat home buyers can also receive a tax credit of up to $6,500.  This is great news for people that wanted to make a move earlier in 2009, but were a little disappointed they weren't getting to participate in the tax credit with the first-time home buyers.  For more information about the tax credit, click here. 

#2 - LOW MORTGAGE INTEREST RATES - If you are one of the lucky/smart/privileged people that can actually pay cash for a house, then this section doesn't apply to you.  For the rest of you, interest rates are still near historic lows which is a huge incentive for qualified buyers to purchase a home soon.  Rates in the Austin, Texas area are around 5% for a 30-year fixed mortgage depending on the lender and your credit score/history.  Most of the analysts are projecting that interest rates will start going up in 2010.  Reports of when they will start rising vary quite a bit, but many sources indicate they will start rising sooner rather than later (as in anywhere from 1-4 months from now).  What does that mean for a potential home buyer?  One of two things - low interest rates either enable you pay less in interest over the life of your loan OR you can afford to buy a more expensive house now than you will be able to in a year when interest rates have gone up. 

Here's an example:  If you are purchasing a $200,000 house and you put 5% down, you will be financing $190,000.  At the current interest rate of 5%, your principal and interest payment will be approximately $1,020.  If you decide to wait until interest rates have gone up to 6% for that same scenario, your principal and interest payment would be approximately $1,140.  You might look at that and think that $120 more per month doesn't look too bad, but over the life of the loan, that 6% interest rate will cost you almost $43,000 MORE than the 5% loan.  If you buy now, take that extra $120 a month and invest it for the next 30 years...you could have $180,000 saved up instead of PAYING $43k (assuming conservative 8% rate of return).   That one's for you, Dave Ramsey.  :) 

#3 - VALUES HAVEN'T GONE UP YET - Austin is one of the few markets that has been fortunate enough to be fairly insulated from the plunging values we've seen in other areas of the country over the last couple of years.  Values have dropped slightly in some parts of the Austin area, so there is an opportunity to get an excellent deal on a house before the values start to go back up.   Some analysts project the Austin home values to start increasing as early as February 2010.  That remains to be seen, but it is my opinion that now is the time to combine the lower home prices with the low interest rates to get into some of the hot areas of Austin that are poised to see great appreciation over the next 5-10 years (especially in Central and East Austin).

#4 - ADD TO YOUR INVESTMENT PROPERTY PORTFOLIO - These are the times in which investors create more wealth for themselves.  When the home values are down and it's a buyer's market (which we are still in for most of the Austin area), investors take advantage of that to get great deals on properties to use as rentals.  Many of the foreclosures in the Austin area have been flushed out, but there are still plenty of foreclosures and aggressively priced resale homes to be found.  Now is a great time to either add to your real estate investment portfolio or start one if don't already own a rental property.

#5 - YOU ARE TIRED OF RENTING - Let's face it...most people have lived in a rental apartment or houseat some point in their life (growing up, in college, after relocating to a new town, etc.),  but most people would prefer not to rent if they have a choice.  It's no fun to pay someone else's mortgage and not be able to change your space to suit your needs and lifestyle.  If you are tired of renting, but aren't sure if you can qualify or afford to buy a house, the first step is to contact a mortgage lender.  The mortgage lender can help you determine if you can qualify for a loan, how much you can afford, and can walk you through your credit report.  It doesn't take much time and it won't cost you any money to chat with a mortgage professional, so take this first step if you have even a smidgen of desire to buy a house.  If you need a recommendation for a local Austin area lender, you can visit my website for more information.

If you are looking to buy a home in the Austin area, please contact me via my Austin real estate website at www.carlylister.com.   Thanks!

 

Cash for Caulking  This is a rather new item that few people have heard about.  We thought it interesting and felt it was something you should know about.  President Obama has proposed a program that would reimburse homeowners for installing energy-efficient appliances, windows, and insulation.

Under what has been dubbed "Cash for Caulking," homeowners would get a 50 percent rebate on items like energy-efficient air conditioners, heating systems, washing machines and dryers, refrigerators, replacement windows, and insulation up to $12,000, meaning a household could spend $24,000 and get $12,000 back. There will likely be no income restrictions. 

There has been speculation about how this program would pay the rebate - some have suggested that when you purchase an item covered under this program, that you'd only have to lay out 50% the amount of the cost and the retailer would get the other 50% from the government.

Cash for caulking could be a winner - lets hope it becomes more than a proposal!

Bob & Richelle Ward, Realtors, ABR
Prudential Connecticut Realty
www.connecticuthomesforsale.com
Cell - (203) 470-9818

 

Sung to the tune of Jingle Bells.

I'll count you in. 1, 2, 3!

Verse:

Dashing to the house - with a lock box and a sign.

The pictures all look great - and the ad sounds just divine!

The kitchen's staged real well - with brownies on a plate.

I know a buyer's coming soon - but I can hardly wait!

Chorus:

I hope mine sells, I hope mine sells, I hope mine sells today!

We'll have some chear, when the buyer's here, 'cause a closings on the way-ay!

I hope mine sells, I hope mine sells, I hope mine sells today!

Perhaps we'll see a buying spree, since the credit's here to stay!!

 

This text was recieved today on Dallas Law Firms, Seasonal Greeting Email.

Words by Alex Dallas, Dallas Law Firm (office's in Charleston, Summerville and Mount Pleasant)

5 Christmas Gift Ideas for the Woman in Your Life

Christmas is a wonderful time of year to show the woman in your life just how much you love and value her.  Your gift to her will let her know just how special you think that she really is.  Nothing shows your love better than a well thought out gift which takes into account her interests and desires.  

Here is a list of gift ideas to get you started on your way to purchasing the best gift for the woman in your life this coming holiday season:

Gift Idea #1 – One of the best Christmas gifts you can give the woman in your life is the gift of your time.  Take time out to show the woman in your life that you value her, and all that she has done for you, by volunteering to complete tasks for her that you know she doesn’t like to do.  This could be cooking a meal, or even cleaning her home for her.  

Gift Idea #2 – If the woman in your life doesn’t take time out of her busy day to pamper herself, give her a gift of some luxury spa products which she can use at her leisure in the privacy of her own home.  Great options for this are bath salts and nice smelling lotions or body butters.

Gift Idea #3 – Women generally do not buy perfume for themselves.  While some do, many wait to have their favorite scent gifted to them by special family members.  If you are unsure which scent is the favorite of the woman in your life, a trip to her room can easily tell you.  The bottle which is nearly empty is the best choice for you to purchase for her.  

Gift Idea #4 – A mother’s ring made with the birthstones of each of her children is an excellent gift choice for Christmas for your mother or grandmother; this ring shows all that see it that your mother or grandma has children who love her.  If your mother or grandmother doesn’t wear rings, you can also get a mother’s pendant necklace which has the same effect.  

Gift Idea #5 – Every woman loves to receive flowers.  If you’re the woman in your life works outside the home, have some holiday flowers sent to her office so that everyone knows she is special to you.  If the woman in your life prefers plants to flowers, have the florist send a nice basket garden or Christmas cactus instead.  

Think green this holiday season

It has been said that between Thanksgiving and New Years, Americans throw away an extra million tons of garbage each week. This trash includes wrapping, packaging, cards, food, paper plates and napkins, party decorations, bottles and cans, and more. That is a lot of garbage! Have you thought about ways you can reduce, reuse, and recycle this holiday season?

When decorating:

• Buy a potted or “balled” Christmas tree and replant it after the holidays. You can create a year-round habitat for local wildlife.
• If you purchase a cut tree, recycle or mulch the tree for use in gardens and playgrounds. Avoid discarding it in a landfill.
• Trim your tree with edible ornaments like popcorn, cranberries or gingerbread cookies! Later, move your tree into the yard to give the birds a holiday treat.
• Conserve electricity by installing a time on holiday lights. Even better, invest in LED holiday lights which use 90% less electricity.
• Choose candles made from beeswax or soy. Because paraffin wax candles are made from petroleum and release the equivalent of diesel exhaust when burned, you can save fossil fuel resources, improve your indoor air quality, and reduce your exposure to carcinogens by beeswax or soy candles.

When gift giving:

• Replace plastic bows with reusable cloth ribbons, and save gift wrap and ribbons to decorate next year’s gifts.
• Wrap gifts from colorful pages of torn magazine, the Sunday comics, or last year’s calendar or old maps and posters.
• Instead of buying wrapping paper, use decorative tins, baskets, or fabric bags. Their reuses will double the gift!
• Send internet greeting cards or send traditional cards made from recycled paper.
• Trim your tree with edible ornaments like popcorn, cranberries or gingerbread cookies! Later, move your tree into the yard to give the birds a holiday treat.
• Give holiday gifts of “time” to your family and friends. Nothing is more valuable! 
• Check out consignment stores for gently used (recycled) gift items
• Use rechargeable batteries for toys/games

When eating:

• Be healthy and enjoy a delicious sup of organic hot cocoa this holiday season. Cocoa contains twice as many antioxidants as red wine!
• Keep it local. Try to incorporate locally raised food into holiday menus.
• When entertaining be sure to recycle afterwards and cut down on the use paper products. 

Living & Working in 4-Wheel Drive

Now that the market is improving in many areas of the country, there are a number of listings coming on the market just as the holiday season gets under way.  There are some who believe that this is the wrong time to sell your home because people allegedly do not househunt in December.  I have not found that to be true, and December has always been a busy month for me.

If you are marketing your home this holiday season, your chances of finding someone who will fall in love with it are greatly increased if you remember a few things:

 1.  Be very sparing with perfumes and fragrances.  One bottle of essential oil with bamboo sticks can infuse your entire home with a subtle aroma.  Although it may not seem as "Christmasy", a light vanilla fragrance is probably the best to make your home fresh without affecting so many allergies.  And if you are a smoker, it may be helpful for you tl restrict your smoking to the back yard until the home is sold.

2.  While on the subject of scents, remember that the holidays can be stressful for your pets, and may trigger "accidents" that would not otherwise occur, or bouts or diarrhea.  The best behaved dog or cat will sometimes become overexcited or nervous, and you should do what you can to keep them calm.  It is best to have them gone, if possible, for any showings.  If you must lock your dog in the garage during a showing, be sure to put a note on the garage door to alert the agent and prospect not to open that door.

3.  We all look forward to decorating our homes with trees, lights, stars, snowmen and Santas, but when potential buyers tour you home, you will want them to focus on the wonderful features of your home and not on how pretty your tree is or your cute snowman.  Some decorations will brighten your home and put buyers in a good mood, but cut your normal decor in half while your home is on the market.

4.  A Christmas tree will crowd your home to some degree, and you may have to remove a few pieces of your regular furniture.  Buyers are interested in large comfortable rooms and will want to imagine their furniture fitting in your home.  If the house looks too crowded, it will seem smaller than it actually is, and buyers may not feel their things will fit.

5.  When you are expecting a showing, go through the house and turn on all lights so your home will look bright, cheery and welcoming. And if you usually like your home a bit chilly, turn the thermostat up just a couple of degrees until after the showing. 

6.  I don't recommend lighting a wood fire in the fireplace if you will be leaving the house, but if you have an insert or other safer fireplace, and if you will be gone only minutes, you might want to have a welcoming fire.  If you will not have a fire, please be sure that the fireplace is cleared of ashes.

7.  Since winter weather means that trees are not as leafy, flowers are not blooming and skies are gray, your home might not feel as cozy.  Brighten it up with a couple of red throw pillows on the couch, a red tablecloth or place mats on the table, and a few subtle touches of red in the other rooms.  Nothing overwhelming, but enough to make your rooms seem warmer and cozier.

8.  As usual, watch out for clutter.  If you have collections, you may want to pack them up until your home is sold.  Once you sell and move, you will need to pack them up anyway.  This will give the appearance of more romminess in your home, and will keep your prospects focused on the architecture and not your personal items.  Also, this will help to protect them from breakage while people are touring your home.  The same thing goes for family photos.  I once previewed a home for a buyer client where the sellers had 47 framed photos of their wedding on display!  I showed it to my buyer anyway, and sure enough - she was so fascinated by counting the wedding pictures that she couldn't remember much of anything else about the house.  She counted 48, so she must have spotted a couple that I missed.

9.  If you have presents under the tree, it may be best if you keep the smallest and most expensive ones stashed in a dresser drawer or somewhere safe.  Most people are honest, but it is better to be safe than sorry.  All Realtors I know are sensitive to this, and will do their best to see that their clients behave themselves in your home, but just keep this in mind anyway.  Keep in mind that buyers will look in your closets to check their size and features, but have no business looking in your dressers or other furniture that will not be sold with the house.  

10.  Have a wonderful holiday season.  The economy this year has everyone more stressed than usual, so find moments to relax and have some quiet time every day - even if it's just a few minutes.  Please understand that none of these tips are meant to upset anyone or hurt your feelings, but are simply tips which may help you to sell your home more quickly and at a better price. 

 

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Full time real estate services in Fair Oaks CA, with friendly professionalism, 20+ years experience. I work hard to give my buyer or seller a low-stress transaction. "Happy clients make me happy."

For all your real estate needs or questions, call me at (916) 705-8951 or visit my website at www.SusanNealFineProperties.com.