Season's Greetings and Happy New Year!

Wishing you a very prosperous and healthy New Year.

Please check out the link below. I found this particular clip very appropriate, since we are all setting goals for 2009. I wish you all the best and hope that we all survive in tough times ahead.

http://www.simpletruths.tv/movies.php?movie=TTWD

Best Regards

Effective Tips for Cleaning Your Garage!

Does it seem as if the things in your garage multiply almost overnight? For most people cleaning their garage is an onerous task. Here are some effective tips for gaining space to actually park your car.

* Gather all items you're not using and have a garage sale, donate the items to charity or take them to the dump.

* Dust the walls and corners; get rid of the spider webs.

* Hang heavy-duty wall hooks for larger items like yard tools, bicycles or exercise equipment that are taking up floor space.

* If you don’t have shelves, consider buying adjustable steel shelves on wheels available at warehouse stores.

* Get boxes and other items off the garage floor.

* Clean the floor and remove oil drips with cat litter and Simple Green detergent.

* Make sure all flammable materials, tools and toxic chemicals are stored out of reach of children.

* Check your garage door to make sure the opener is working properly in reverse.

Keeping your garage clutter-free and clean will allow you to have useful storage and workshop space. While your garage usually won't make or break a deal when you decide to sell your home, a clean, well-maintained garage may be a tie-breaker by enhancing an overall impression of a well-cared-for home.

Please call or send us an email if you'd like some additional real estate tips or neighborhood information.

More on housing trends!

The trends in new homes as our population ages. Here are more things we’re seeing – and they make a lot of sense:
Master suites downstairs. Raised dishwashers so users don’t have to bend as much. Raised, front-loading washers and dryers. Wide halls and doors. Lower light switches. Levers, rather than knobs, on doors. Pull-out shelving in cabinets to avoid reaching. More room beneath counters for wheelchair access. Remote controls for lighting, ceiling fans, blinds, curtains and gas fireplaces. No steps at the front door and from the garage to the inside of the home.

When you look at a lot of new homes you almost need to look for these things in order to notice them. Builders are designing homes sop well that these features blend in.

Which is Better for You: A Condo or a Single Family Home?

Did you know that condominiums are one of the fastest growing segments of the housing market? Owning a condo is perfect for those with busy lifestyles, little interest in home maintenance or landscaping chores or who frequently travel. Condos are a fine choice for a first home or when downsizing from a larger house.

Here are some pros and cons to consider:

Condo:
· Fewer maintenance requirements.
· Usually less expensive than a single family home.
· You own the space inside the walls.
· There can be more security with neighbors close by.
· The exterior of the building, landscaping, surrounding roads and driveways, and common areas all owned by the condo association, a group made up of all unit owners.
· Special assessments by the association for painting or repairs can be a substantial added expense.

Single family home:
· Usually offers more storage space.
· You own the interior as well as the exterior.
· You are responsible for all maintenance, landscaping and repairs.
· You usually don’t have to pay community dues or special assessments.
· You have room to grow plants, flowers, trees, veggies, etc.

Think about how your household may change over the next few years. Will you still need a larger home or will you have enough space in a condo? Or would you be happier in a smaller house with room for a garden?

For more information about real estate options in our market, call or email us. We’d be happy to provide you with that info via email or we can show you what is available.

Important Real Estate Documents to Keep in a Safe Place!

As long as you own your home, here is a list of important real estate documents you’ll want to keep in a safe place:

1. Property deed: keep it for as long as you own the property.

2. Closing statements: keep statements for three years after your purchase to show capital gains.

3. Home improvement: some remodeling projects can reduce a potential capital gains hit when you sell your property, so save your receipts and consult your accountant.

4. Warranty information: keep until the warranty expires.

5. Loan papers: keep until paid off or refinanced, or in the case of mortgages that have tax-deductible interest, keep them for three years.

6. Insurance policies: keep until the policy expires.

7.Receipts or statements: save credit card receipts and/or checking account statements or cancelled checks for all major purchases such as appliances, furniture, antiques and art

When you sell your home, you’ll usually be required to submit a disclosure form. Receipts for major home improvements like a new roof or remodeling project can help you complete disclosure forms and substantiate the good condition of your home.

A bank safety deposit box or fireproof safe is the best place to store your important documents. Be sure to save an up-to-date household inventory, complete with appraisals, receipts and photos or a videotape for insurance purposes in case of loss.

Please call or send us an email if we can provide you with an updated home evaluation for insurance purposes.

How Value-Added Features Affect the Sales Price of Your Home!

If you’re thinking about buying or selling a home, a recent report by the National Association of Realtors measured how certain characteristics influence the value of a property. Here are some of the findings:

* A remodel adding an additional 1,000 square feet of living space increases a home’s market value by just 3.3%.

* Adding an extra bedroom adds about 4% to the price while an additional bath can add 24%.

* Houses advertised as “fixers” sell for 24% less than other houses.

* A garage adds about 13% to the price.

* Central air conditioning adds about 12% to the price.

* A basement increases a home's value by an average of 9%.

* A sitting area in the master bedroom increases the price by about 8%.

* Features that add the most value are a family room, a dining room, a whirlpool and a security system.

This information can help determine the return you can expect to see on your remodeling investment as well as to compare property values when you’re shopping for a home.

Please call or send us an email if you’d like us to help evaluate your remodeling plans and determine how much they’ll return on your investment. Or, if you are considering a purchase, we can help you get the best buy on a home with the amenities that are important to you.

13 Reasons You Should Buy a Home in the Richmond Area, Now!

Conventional wisdom says that this is an awful time to buy a new home. The housing market is in a funk. Mortgage companies have tightened their guidelines and homes are sitting on the market for months without selling. If you listen to the news it's all doom and gloom with talk of recession and inflation, and questions of how long it will be before we see a recovery. So who would be crazy enough to buy a home now?

There is a famous quote by noted investor Baron Von Rothschild - the time to buy is when there is blood in the streets. Here in Richmond the market isn't as bad as it is in other parts of the country, but if you are a seller sitting in a home that won't sell, the situation is grim. But the bad news for the seller is great news if you are looking to buy a home. Here are some reasons to buy a home here in the Richmond area, now:

Selection - There are homes in the market in all areas and all price ranges. With more houses on the market you can pick and choose and find the home you want. It wasn't so long ago that buyers were jumping on new listings as they came onto the market, even if the home wasn't exactly what they were looking for. You can pick and choose, now.

It's a buyer's market - Again, the best time to buy is when most people want to sell. If you buy now you can get a lot more house for your money, and you have a lot more negotiating power.

Interest rates are low - Mortgage interest rates are at their lowest point in the last several years. This means your mortgage payment takes you a lot farther than it did before. We're not that far off of the all time lows we hit several years back. It is smart to take advantage of the low mortgage rates while they are still available.

Great financing is available - There's a lot of talk about how the problems in the mortgage market have made it harder for borrowers to get financing. Some programs have been cut out, and guidelines are tougher than they were before. But there is still a lot of mortgage money available, including options for low or no money down, and some great programs for first time home buyers. If you are a first time home buyer in Richmond, you may qualify for Virginia Housing authority Program which offers a below market interest rate and down payment and closing costs assistance. There are other programs for home buyers in Virginia with great rates and low fees, ask me how?

Tax savings - Buying a home is one of the best ways to save money on taxes. Your mortgage interests, real estate taxes and in many cases mortgage insurance are all tax deductible. If you are a first time home buyer this means that after-tax, you can pay a lot more for a mortgage payment than you pay for rent.

Appreciation - This might not seem like the best reason to buy, with prices stagnating and falling in some areas, but in the long run, home prices always move up. There is a lot of pessimism in the real estate market today, but even the most pessimistic are bullish in the long run.

Equity build up - As you pay down your mortgage you build up equity in your home. Most people don't even think of this because it is so gradual, but every mortgage payment (as long as it is an amortizing loan) pays a little less interest and a little more principal. In a way owning a home is a form of forced savings.

Tax refunds are coming out - If you wanted to buy but were short of cash, your tax refund could be just what you need for the down payment and closing costs.

Rents are rising - Buying a home means you can fix your mortgage payment, at least the principal and interest portion. Rents are projected to rise this year and over time.

Those are the hard financial reasons for buying a home now, but there are other good reasons to buy now:

You need more room - Has your family has grown, and you are bursting at the seams? You need a new place to put all your stuff? If you have needs that you've been putting off, this could be the right time to buy and take advantage of the buyers market.

Control - If you own your home, you can do what you want to with it. Have a dog? Not a problem. Want to plant a garden? Go for it. Want to paint stripes on the walls? Paint your heart out, it's your home and you are in control.

Pride of ownership - There is a big difference between renting a place and having a home of your own.

It's the American Dream - Not only that, but buying a new home gives you a reason to throw a house warming party.

These are some reasons for buying now, but buying isn't the right course for everyone. Buying a home is a long-term investment. If you can't afford to hold on for the long run, you might be better off renting.

Effective Pricing Leads To A Sold Sign On Your Property!

According to a recent report from the National Association of Realtors, almost 80% of home buyers surf the Web to begin their home search. That means home buyers are well aware of what properties are available on the market and the prices they are selling for. Therefore, now more than ever, pricing is the key to selling your home.

Some sellers think that a higher price will give them some negotiating room. But in fact many buyers don't even look at a property that is overpriced, much less make an offer on it.

This can lead to the property's becoming "shop-worn." Buyers often inquire about the length of time a property has been on the market. If it has been on the market a long time, they wonder if there is something wrong with it. The sellers then have to drop the price, taking less than they might have if they had priced it correctly to begin with.

Homes that are well-priced attract the buyers in their price range. The buyer's perception is that the home is a good buy, and then the seller is positioned to receive the listing price or close to it.

Please feel free to call us if you have any pricing or general real estate questions. We would be happy to provide you with a free market evaluation on your home to ensure it is competitively priced in the marketplace so you will receive the best offer.

How to Avoid 8 Costly Moving Mistakes!

If you have a move in your future, there are definite ways to make the process go as smoothly as possible. Plan ahead and you'll avoid these 8 costly moving mistakes.

1. Scheduling your move on the same day of closing
While most buyers take possession of their new home on the day of closing, there are a lot of conflicts that can arise unexpectedly. Be sure to keep in constant communication with your escrow company so as not to delay your moving plans.

2. Not requiring a written estimate
It's fine to have moving companies give you an estimate over the phone or Internet. But to get a firm price, you need to ask the company to send a representative to walk through your home while you point out exactly what you want transported. Be sure you understand the conditions of the estimate - can they raise your bill on delivery? Does the contract allow them to bill you for more later?

3. Choosing a moving company based on price alone
You could end up spending more time and money in the end trying to fix a moving disaster. Check out the company's references (try to get two), licensing, insurance and length of time in business.

4. Not making a first night survival kit
Better to be safe than sorry. If your shipment hasn't arrived or you're simply too tired to unpack everything, you'll be thankful to have an accessible overnight bag with some essential items you'll need for the first night in your new place. Don't forget toiletries, medication, children's and pet's necessities - and maybe even a bottle of champagne to celebrate.

5. Not using a dolly or a hand truck
Whether you're moving yourself or just rearranging things after a professional move, the money you spend to rent or buy moving equipment will pay for itself by dodging back strains and chiropractic visits.

6. Refusing extra coverage for loss and breakage
The basic limited liability coverage offered to you, free of charge, by the movers will not be sufficient. And most homeowners' policies don't cover items broken or lost in a move. Extra insurance can be purchased through an independent insurance company, which will cover you for the duration of the move. Your mover will be able to direct you to a company that will bind your move.

7. Not labeling boxes
When packing boxes, make sure you label the top and sides of boxes with contents, location of contents in your house and any special instructions, such as "fragile" or "open first." Also, by keeping a list of the contents on the outside of the box, you won't have to dig through several boxes marked "kitchen" just to find a pan.

8. Not keeping your receipts
If you're moving closer to a job, your moving costs may be tax-deductible. Keep receipts for moving household goods, utility change fees and lodging and travel expenses. However, if your employer covers those costs, you won't be allowed to deduct them.

How to Find a Good Investment Property!

In 2005, 23% of all homes sold were investment properties, according to the National Association of Realtors. There's no question that investing in real estate can be lucrative, but it's important to choose your properties carefully to make sure you don't end up getting burned.

Choose the Right Neighborhood
Just like with any other real estate purchase, location is all-important. Whether you're buying an investment property to rent or to renovate for resale, a large part of your success will come down to the neighborhood you buy into. Developing or undervalued neighborhoods are both good prospects for investment buying. The easiest way of getting a feel for good prospects is just to jump in your car and drive around your area. Look for areas with a lot of development going on, or where new housing projects are planned. If you're buying a rental property, bear in mind that if you're going to be doing maintenance and repair work yourself, somewhere relatively close to your own home is a good idea so that you don't have to spend a lot of time traveling to the property.

Don't forget the old rules still apply - buy the worst house in the best street, not the best house in the worst street. You don't want to end up buying a property that's worth significantly more than neighboring houses, as this will mean your investment has no room to appreciate in value because the surrounding properties are dragging its value down.

Foreclosures
Buying foreclosures can be risky, much more so than buying property in the traditional fashion. However, if you're aware of the risks beforehand and take steps to minimize them, you can end up with a great deal. Before you even consider buying in this way, you should be very familiar with foreclosure laws in your state, in addition to knowing as much as possible about the neighborhoods you're interested in.

To find foreclosures, look in your local newspapers for advertisements with key words such as "bank-owned," "foreclosed," or "REO" (real estate owned). Look on lender websites to check for foreclosure listings, and call lenders and ask to speak to someone who handles foreclosures.
As a final caveat - don't buy anything without having it inspected first, no matter how good the property looks on the surface. Property inspection is the best way of ensuring you end up with a profitable deal.

Why Good Credit is Important
When it comes to financing the purchase of rental property, lenders often require larger down payments and higher interest rates. This is because lenders know that owners of rental properties are more likely to default on loan payments than on payments for their personal homes. Simply put, you pay more because rental property is a higher risk investment. To improve your chances of getting a good loan, it's important to have good credit and to reduce your credit card and other consumer debt as much as possible.

It's also important to ensure you have a good-sized cash reserve left over after you've bought your property, to help pay for surprise expenses such as repairs (and periods when the house is vacant, if you've purchased a rental property).

Get to Know the Tax Laws
Owning investment properties can provide big tax benefits. Getting to know your state and federal tax laws is important for maximizing the profits you can make from investing in real estate. For example:

*Depreciation on an investment property is tax-deductible at an annual rate of 3.64% of the home's market value.
* Mortgage interest on investment properties is tax-deductible.

Do your homework, choose your properties carefully and watch your investments grow!

How to Give Your Home a Positive Image with the Right Scents!

Taking advantage of a smell’s strong, almost subconscious effects on the brain is an easy way to accentuate your home’s positive image.

For a warm, inviting scent, boil a pot of water on the stovetop, pour in a teaspoon of vanilla, and add some cinnamon or cloves. The aroma of fresh-baked bread or cookies is another sure-fire winner.

While some smells create positive images, others create negative impressions and should be avoided. Cigarette or cigar smoke can make even a clean house seem dingy.

To absorb airborne smells, place a small bowl with half an inch of white vinegar in the room and let it sit for a few days. Vinegar sprayed on carpets, drapes or upholstery can also help with absorbed odors. (Be sure to test first on an inconspicuous spot to ensure it doesn’t change the color.) A thorough cleaning can also help remove smoking or pet odors.

Use a lemon-scented wax to polish wood surfaces for a fresh, clean aroma. Bathrooms seem cleaner and brighter when scented candles are lit.
Please call or send an email if we can provide other tips to help you create a comfortable environment in your home or answer any real estate related questions. We appreciate the opportunity to be your trusted real estate resource.

How to Evaluate a Home’s True Potential

If you’re thinking about buying a home, you’ve probably developed a pretty clear mental picture of what your new home should be like. But remember that even a home that’s not in ideal condition can still have great potential.

Here are some tips to help you look beyond bad decorating, old carpet and ugly wallpaper to see a jewel in the rough:

The floor plan is extremely important. Look at entrances and exits, where the rooms are located and how foot traffic will flow throughout the home. A good floor plan is worth a lot, especially when you consider the cost of changing it.

Walls and floor coverings make an important first impression. Paint is relatively inexpensive, so imagine the walls in the colors you would choose. Carpets and vinyl floor coverings can be removed and replaced, hardwoods can be refinished.

The kitchen is usually the center of any home. Paint and new appliances can make a huge difference if you don’t like what's there now. The most important thing to consider is whether it has enough counter and cabinet space to suit your needs.

Unless you're building your dream home, you will probably never find the perfect house. So before you make an offer, keep in mind what you can't live without and what you can improve upon with some well-placed upgrades and improvements.

If the house is cluttered and not as clean as you would like, remember that it will look different with your belongings and a thorough, professional cleaning is always an option.

If the exterior of the home doesn't have a great deal of curb appeal, just imagine it with a fresh coat of paint and new landscaping.

Please call or send us an email if we can help with more ideas on how to see past the surface when looking at a potential new home.

8 Ways to Make a Home Sell Faster!

Simple fixes and staging practices can focus buyers' attention in the right places and keep them from getting sidetracked by personal items in the home.

Here are some staging suggestions from Deborah Ehrlich-Layne of Staging Plus in Tampa, Fla., Handyman Matters, and HGTV's The Stagers.

Eliminate countertop clutter. A countertop covered with small appliances and utensils looks crowded, not spacious.
Pack up the too-personal. Don't leave toiletries on the counter. Stash family photos.
Be prepared for snoops. Prospective buyers pull open drawers, look in closets and peek behind the shower curtain.
Make sure things work. Dripping faucets, burned-out light bulbs, and squeaking hinges detract from the home's appeal.
Think "white-glove clean." Mop, dust, vacuum, clean baseboards, wash windows. Make sure the house looks fresh and smells neutral.
Make sure the front door is clean and the hardware polished. Power-wash walkways.
Store furniture that makes rooms feel crowded.
Show every room for the kind of room it is. Maybe you've turned your formal dining room into a home office. Get rid of the desk and computer, and bring back the dining table and chairs.

Source: The Dallas Morning News (09/05/08)

First-Time Buyer Tax Credit: A Reason to Buy Now!

The home ownership tax credit that the federal government created earlier this year is a hard-won tool at your disposal to encourage your customers to jump off the fence and get into the home buying market.

When you combine the tax credit with today’s continuing low interest rates, large selection of for-sale inventory, and low home prices, many of the pieces are in place for your customers to buy now.

How the Tax Credit Works

The First-time Home Buyer Tax Credit was passed this year as part of the Housing and Economic Recovery Act (H.R. 3221) on July 30 and targets any individual or household that hasn’t owned a home for at least three years. Taxpayers can take the credit on their 2008 tax return if they bought their house this year after April 9.

It’s worth up to $7,500 and can be taken in a single tax year. Authorization for the credit ends July 1, 2009, so if your customers wait to buy in the first half of 2009 they can take the credit on their 2009 tax return.

The actual credit amount is set as a percentage of the home purchase amount. That percentage amount is 10 percent, so your customers can get 10 percent of the home price credited against their tax liability, up to a maximum $7,500.

Income limits are $75,000 for individuals and $150,000 for households. Individuals whose income exceeds the $75,000 limit but isn’t more than $95,000 can still take the credit but on a reduced basis. The same thing applies to households earning up to $170,000.

Any house is eligible as long as it’s a primary residence and is in the United States.

Buyers Have 15 Years to Pay Back

To help keep the program cost effective for taxpayers, the federal government requires the tax credit to be paid back in small, 6.67-percent increments over 15 years. For that reason, some analysts have likened the credit to a 15-year, interest-free loan to help make home buying affordable.

There’s one restriction on the type of financing that your customers can use if they plan to take the credit. That restriction is on tax-exempt mortgage financing. That only applies if your clients are using below-market interest-rate financing from a public agency or nonprofit that’s funding the loan using proceeds from a tax-exempt mortgage-revenue bond issue. For most buyers, this won’t be an issue. It’s mainly an issue for low-income buyers using special mortgage financing.

Be a Resource for Clients

NAR Government Affairs has created two helpful documents that you can share with your clients to help them learn more about how the tax credit works. The documents are on downloadable and printable PDFs:
First-time home buyer tax credit chart
First-time homebuyer tax credit FAQ

The IRS Web site also offers tax-credit guidance in an article that provides answers to many frequently asked questions.

For additional local real estate information, information about me and my services, to request home listings by E-Mail, to request a market analysis on your current home, or to tour the MLS Listings please visit my web sites at www.RichmondVAHomes4Sale.com or www.e-RichmondHomes.com.

Consumer Tip: Home Mortgage Interest!

You can save thousands of dollars in interest on your home, and pay it off in much less than the term of the loan, by just paying a little extra with each monthly payment. For example, if you had a home mortgage of $100,000, payable at 7% per annum interest, by paying just an extra $110 monthly toward the principal, you would save $53,439 in interest payments over the life of the loan. You would save thousands of dollars, and would own your home, free and clear, in just 20 years.

If you would like to pay a little extra on your loan principal monthly, and want to know how much you could save, call Mohamed Mekhimar. We will run an amortization schedule for you and/or refer you to our preferred mortgage specialist.

Some Easy Ways To Maintain Home Values!

The easiest way to maintain and improve your home's value is consistent maintenance and repair. Keeping up with seasonal issues like inspecting your roof for weather damage in the spring or cleaning gutters and downspouts in the fall keeps the time you have to spend on these tasks at a minimum. When you're thinking about the value of your home, also keep these things in mind:
__ Overall condition of your property. In addition to the above tasks, inspect your property regularly and maintain a clean home. With the pace of life getting faster, many people just don't have the time to "fix up" a new home. They want a home they can move into easily. Keeping up with maintenance and small repairs also allows you more time to enjoy your property.
__ Bedrooms and bathrooms. How many are there? Have they been remodeled or updated?
__ Outdoor area. How big is the yard? Is there a deck or patio?
__ Garage. 1, 2 or 3 cars?
__ Kitchen. How up-to-date is it? Has it been remodeled?
__ Is there a family room? How big is it?
Visit The Davidson Team at www.WenatcheeHouses.com for home maintenance tips, buying and selling tips, MLS property searches, town and community information and more!

Richmond Election Information!

Richmond voters, if you think you’re too busy to get out and ­vote on Election Day or that your vote "won’t matter anyway," ­consider that just one vote ...
-made English the language of America instead of German (1776)
-approved American independence from England (1776)
-gave Thomas Jefferson the presidency (1800)
-admitted Texas (1845) and California (1850) into the Union

Presidential Race
Democrat: Barack Obama
Republican: John McCain
Independent: Ralph Nader
Libertarian: Bob Barr
Green: Cynthia McKinney
Constitution Party: Chuck Baldwin

U.S. Senate
Democrats: Mark Warner
Republicanss: Jim Gilmore
Libertarian: William Redpath
Independent Green: Glenda Parker

U.S. House of Representatives
1st District
Democrats: William Day
Republicans: Robert Wittman
Libertarian: Nathan Larson

2nd District
Democrats: Glenn Nye
Republicans: Thelma Drake

3rd District
Democrats: Bobby Scott

4th District
Democrats: Andrea Miller
Republicans: Randy Forbes

5th District
Democrats: Tom Perriello
Republicans: Virgil Goode Jr.

6th District
Democrats: Sam Rasoul
Republicans: Bob Goodlatte
Independent: Janice Allen

7th District
Democrats: Anita Hartke
Republicans: Eric Cantor

8th District
Democrats: James Moran
Republicans: Mark Ellmore
Independent Green: J. Ron Fisher

9th District
Democrats: Rick Boucher

10th District
Democrats: Judy Feder
Republicans: Frank Wolf
Independent: Neeraj Nigam

11th District
Democrats: Gerry Connolly
Republicanss: Keith Fimian
Independent Green: Joseph Oddo

Which is Better for You: A New Home or a Resale?

When it’s time to make a move, one of the first decisions most people think about is whether to buy a brand new house or a previously-owned home. Here are some distinct advantages of each choice:

New house:

* Modern floor plans that could include a “great room,” bigger closets, more baths,
entertainment room, etc.
* The opportunity to choose upgrades and customize floor coverings, colors and more
* More energy-efficient insulation, windows and heating/cooling systems
* The added protection of a warranty from the home builder

Resale home:

* Existing features, including window treatments and mature landscaping
* Location -- existing homes are often closer to metropolitan areas instead of farther out in the suburbs
* Established neighborhoods and sense of community
* The opportunity to use an existing home as a base to remodel and create a unique property

Only you can decide if a brand new home or one with a few years on it is right for you. If you would like additional information on which option might work best for you, don’t hesitate to contact me with any questions.

Which is Better for You: A Condo or a Single Family Home?

Did you know that condominiums are one of the fastest growing segments of the housing market? Owning a condo is perfect for those with busy lifestyles, little interest in home maintenance or landscaping chores or who frequently travel. Condos are a fine choice for a first home or when downsizing from a larger house.

Here are some pros and cons to consider:

Condo:
· Fewer maintenance requirements.
· Usually less expensive than a single family home.
· You own the space inside the walls.
· There can be more security with neighbors close by.
· The exterior of the building, landscaping, surrounding roads and driveways, and common areas all owned by the condo association, a group made up of all unit owners.
· Special assessments by the association for painting or repairs can be a substantial added expense.

Single family home:
· Usually offers more storage space.
· You own the interior as well as the exterior.
· You are responsible for all maintenance, landscaping and repairs.
· You usually don’t have to pay community dues or special assessments.
· You have room to grow plants, flowers, trees, veggies, etc.

Think about how your household may change over the next few years. Will you still need a larger home or will you have enough space in a condo? Or would you be happier in a smaller house with room for a garden?

For more information about real estate options in our market, call or email us. We’d be happy to provide you with that info via email or we can show you what is available.

First Time Home Buyers: Part 8 of 8

Grading Local Schools

When thinking of buying a home, most people research various neighborhood amenities, including local schools. Regardless of whether you have children, schools can affect property values and are an important consideration when buying a home.

Here are four ways to tell if area schools are having problems:

Local test scores low or dropping
Low test scores can be a product of resource shortages, poor teachers, lack of commitment by the school district or parents.

Student enrollment dropping
If fewer families are moving into the neighborhood, or parents are choosing schools outside the neighborhood, the school may be having problems.

Poorly maintained or vandalized buildings
Inadequate upkeep may be a sign of funding shortages and low involvement from parents.

Troubles at PTA meetings
Tension among parents or between parents and the school's teachers or management may indicate serious problems in a school.

If you have any doubts about the school quality in your target neighborhoods, please give Mohamed Mekhimar a call and we'll be happy to discuss them with you. Learning about local schools helps you make an informed choice about where you live.

First Time Home Buyer: Part 7 of 8

What Goes Into Your Monthly Mortgage Payment

When you’re thinking of buying a home, you may wonder what your mortgage payment will look like. When you have a mortgage, you’ll have several different portions of your payment each month.

Your mortgage payment consists of principal, interest, taxes and insurance (often abbreviated as “PITI”), and sometimes additional fees, such as homeowners association dues.

Principal is the money you borrowed to purchase the home.

Interest is the cost of borrowing money.

Taxes are paid by homeowners to local governments, and are usually a percentage of the assessed property value.

Insurance helps protect against financial loss from fire, natural disasters or other hazards. Most lenders require you to have a homeowner’s insurance policy on your home because it will help protect their investment as well as yours.

Remember, many loan quotes will only include your principal and interest. You’ll also need to factor in the taxes and insurance to calculate your total monthly mortgage payment.

When you’re ready to take the next step to buying your home, please give Mohamed Mekhimar a call. We’ll be happy to explain the process further and help you narrow your home search.

First Time Home Buyer: Part 6 of 8

All About Down Payments

An important aspect of getting a home loan is saving money for your down payment. You have many choices to make your home more affordable to you.

Lenders used to require a down payment of at least 20 percent of the home's price. These days, however, many lenders offer flexible home loan programs allowing you to put very little down -- three percent or less of the home price. For some buyers it's possible to buy a home with no down payment at all, or to receive help from local down payment assistance programs.

If you decide to pay make a down payment less than 20 percent, your lender may require Private Mortgage Insurance (PMI), which protects the lender in case you cannot repay the mortgage. Talk with your mortgage professional to find out the smartest deal for you.

You'll also need to pay for closing costs, which are costs associated with initiating a loan. These can include loan origination fees, discount points, attorney fees, recording fees and pre-paids. They often will total from three to five percent of the price of the home.

Once you have you down payment and loan pre-approval, it's simply a matter of finding the right house. Please call or email Mohamed Mekhimar when you're ready to take this next step towards owning your own home.

First Time Home Buyer: Part 5 of 8

Choosing the neighborhood for your home!

Buying a home is an investment in the neighborhood as well as the house. In fact, the character and amenities of the neighborhood may be as important to the property value as the house itself. No matter what kind of neighborhood you're looking for, it's important to know its history and future when you decide to buy.

Here's what to research:

1. Recent sales - Find out if the market is slow and what homes have been selling for.

2. Homes now for sale - What homes are listed in the area, and are they listed above past sales? This will give you a good idea of the area's overall market value.

3. Home appreciation - Historical data on sales gives the best indicator of a neighborhood's potential. Are homes appreciating at 3%, 5%, 10% or higher every year?

4. Schools - School scores and district boundaries are very important to research before moving into a neighborhood. The closest school is not always in your district, and school scores reveal if a neighborhood is invested in the schools' success.

5. Crime - Get the hard facts about any problems in the neighborhood -- don't depend on anecdotal information.

6. Demographics and growth - Find out how the area is growing and changing.

7. Community -- Learn about neighborhood features, such as public schools, shopping areas, parks, commuting options and more.

We can help you with this information-please give us a call or email us any questions you have. You'll find that the more you know about the neighborhoods you're considering, the easier it will be to narrow your search for your new home.

First Time Home Buyer: Part 4 of 8

The Importance of Pre-approval

Pre-approval can be a very valuable step towards purchasing a home. Many home buyers get pre-qualified for a home loan early on, and then become pre-approved before beginning a serious home search. By completing your mortgage application prior to choosing a home, you can get a pre-approval letter stating how much home you can afford.

Your pre-approval letter lets you know exactly how much you can spend, and it shows home sellers and real estate agents that you're serious about buying a home. This may give you leverage in the negotiation process. Many sellers actually prefer to work with pre-approved buyers, especially in hot real estate markets.

To find a mortgage professional and get started with your pre-approval for a loan, please call or email me. My goal is to provide you with practical information as you consider your next move.

1% Seller-Buyer Program!

If you purchase any home using Mohamed Mekhimar as your buyer’s agent, he will list and sell your home for as little as 1% LOC* backed up with a written guarantee.

How does this program work? The answer is simple. It’s a package deal. Allowing me to represent you in the sale of your current home and in the purchase of another home should not cost you twice. Providing you this incentive to allow me to represent you as your preferred Real Estate Agent is really nothing more than being fair and reasonable to you ...and your pocketbook.

When you purchase your next home or condo, the Seller of that property will be offering a ‘selling office commission*’ to the Broker & Agent who represents the buyer. In most cases this commission is 3% which is normally paid by the Seller...not by you. This cost is my compensation for representing you as your buyer’s agent during your home purchase. It’s a win-win scenario for each of us. You get my Full Service program from Listing to Closing when I sell your home as your listing agent AND you get full representation and excellent customer service with me as your buyer’s agent ...from helping you find your next home to the purchase offer through to Closing.

You will have sold your current home and purchased a new home and saved thousands of dollars in real estate fees.

By the way, the home you buy can be any home in the MLS, as well as For Sale by Owner or new construction. As long as I represent you as your buyer’s agent, I will list and sell your home for 1%.

Please let me know how I can be of service to you in making your next home purchase or the sale of your current home a rewarding experience.



*LOC - Listing Office Commission SOC - Selling Office Commission

First Time Home Buyer: Part 3 of 8

How Much Home You Can Afford

First-time buyers are often unsure about the financial aspects of buying a home, and you may have many questions swirling in your head. How much can I afford? Do I need a large down payment?

Your home price range will be determined by your income, credit history, the cash you have for a down payment and closing costs, and your debt. How much you earn compared to how much you owe will likely determine how much the bank allows you to borrow.

The financial rule of thumb is: your total monthly debt service, which will include your monthly mortgage, shouldn't be more than about 36 percent of your gross monthly income. Most experts say that your monthly housing expense, including taxes and insurance, should not exceed about 28 percent of your gross monthly income.

Naturally, every situation is different, and each lender has different rules about working with buyers. A number of choices within your control can affect your monthly payment as well. For example, you might choose an adjustable rate loan, which has a lower initial payment than a fixed rate program. Similarly, a larger down payment may lower your monthly payment.

If you'd like more information about how much home you can afford, please call or email Mohamed Mekhimar. We can help you get the mortgage information you need.

First Time Home Buyer: Part 2 of 8

Considering Making a Move?

When you're thinking about making a move, the first steps in the home buying process are:

1. Deciding when you want to make your move
2. Considering how much money you would like to spend
3. Thinking about what type of home you would like
4. Deciding where you would like to live

The next step is usually finding out how much loan you can qualify for and deciding the type of financing will work best for you.

If you're in the "thinking about it" stage, you will want to speak with a lender about receiving pre-qualification. If you choose to become pre-qualified, the lender will determine how much you can borrow based on financial information you provide to the lender. Pre-qualification is useful for making preliminary decisions about how much home you can afford, but does not assess your creditworthiness.

You will need to fill out a loan application and go through the lender's loan approval process at a later date. When you decide to buy a home, you will want to become pre-approved for a loan prior to beginning your home search.

Please don't hesitate to call or email me for additional information about the buying process. Our goal is to provide you with practical information as you consider your next move. And, when you're ready to make your move, we'll help you find your dream home and handle all the details of the transaction, so all you need to do is pack

How to Make Rooms in Your Home Look Larger with Lighting!

A bright and well-lit home can dramatically change the mood of your home and help you feel relaxed and comfortable all year long. Here are some tips to lighten up your home and make the rooms look big and inviting:

* Choose different types of lighting to avoid the expense of installing windows or skylights. Lamps or other accent lighting can make a dull room appear elegant or small rooms seem larger.

* If you have a room with a dark wall or a narrow, dark hallway, hang a group of pictures and light them with adjustable halogen track lighting to create the effect of a photo gallery.

* Paint ceilings a light color to avoid making them seem lower than they are and give the room a cramped feel.

* Use color to add cheer to a room. Pink and green tones have a calming effect while darker colors, such as red, tend to cause agitation. Neutral wall tones create a harmonious environment. Bright colors should be used as accents in pillows, artwork or flowers.

* When selecting paint, tape large color chips together on a wall to get a better idea of the shades you like. When you’ve narrowed your choices down, buy a quart of 2 or 3 colors and paint 1 or 2 foot squares next to each other on both shaded and brightly lit walls. Choose the color that looks best in both kinds of light.

Call or send me an email if you’d like the names of decorators, contractors, or other service providers.

First Time Home Buyer: Part 1 of 8

Why Buy Instead of Rent?

When you're thinking about buying your first home, it's essential for you to be confident in your decision to buy instead of rent. However, you may not know about the many great reasons to buy a home! Here are just a few of them:

Smart investment
When you invest in a home, it offers the possibility for appreciation in value. The equity becomes yours when you're still paying off your mortgage. You even get to live in it while your investment matures.

Tax advantages
Since both mortgage interest and property taxes are tax deductible, homeownership can save you significant amounts of money every year.

Planned housing costs
You decide how much you spend on your home, including repairs and improvements. Unlike renters, homeowners with a fixed-rate loan can lock in their monthly housing costs.

Improvements to your taste
You can choose which improvements to make your own property, such as a deck, kitchen remodel, or new paint, instead of needing permission from your landlord.

If you have more questions about making the decision to buy a home, please feel free to call (804-243-0605) or email (mmekhimar@remax.net)!

Warm regards,

Real Estate Investor Series: Part 6 of 6!

Checklist for real estate investment property

Homeowners look for a set of criteria when buying - school district, curb appeal, low crime rate, proximity to job, number of bedrooms, right layout, perfect-sized yard. While location is still a primary factor when you invest in real estate, most investors also add these to their checklist:

1. New single-family construction
2. A neighborhood that is mostly a primary-home community (rather than renters)
3. Square footage between 1400 and 1600
4. 3 bedrooms, 2.5 baths with 2-car garage
5. Nice yard but no pool (too much of a liability)
6. Safe neighborhood with little or no graffiti on public structures, fences, etc.

Another factor to consider is close proximity to your own home. Especially when starting out, you may need to visit your rental properties frequently-to pick up a check, make minor repairs, etc. For these reasons, any property more than 45 minutes away becomes less desirable.

It is important to remember you are not purchasing for your own use but to attract a high quality renter. Savvy investors choose properties based on the criteria above rather than their personal preferences. Doing so lets them pick from a wider base of homes and find the better bargain.

If you have more questions on which properties would make the smartest buys for you as a real estate investor, please don't hesitate to call or send an email.

Warm regards,

Real Estate Investor Series: Part 5 of 6!

Building A Real Estate Investment Team 101

While serial investors (who buy additional rental properties without selling their current ones) are likely to invest with only the help of a real estate agent, other investors benefit from having a team of experts.

In addition to a real estate agent (and your tax advisor), some team members for you to consider are:

1. A builder or general contractor who can evaluate the structural integrity of a unit
2. A specialist in leases who is experienced in writing contracts
3. An attorney who practices in real estate law
4. A mortgage professional who can offer you different financing options

Having a team of investors gives you more knowledge as well as more financial resources as well. One word of caution: while friends or family may be interested in joining your real estate investment team, it is best to pick individuals based on the experience they offer.

Warm regards,

Real Estate Investor Series: Part 4 of 6!

Profiting from the Fixer-Upper

Many real estate investors earn a living out of renovating run-down properties and reselling them, or holding onto them for rentals. Commonly known as the fixer-upper, it offers you two paths to real estate investment.

Buy a Fixer-Upper and Sell Again

In addition to offering a handsome profit, fixer-uppers can offer a true sense of satisfaction as you transform a dilapidated property into one with true appeal. But before you take the plunge, ask yourself three questions:

1. Can I buy it far below market value?
2. Can I do much of the work myself (or contract it out at reasonable rates)?
3. Can I get the job done quickly?

Remember, every month you add to the project is costing you in lost rental income, taxes, insurance, utilities and more.

Buy, Raise the Rents, and Sell Again

Quite often the tenants in a rental property are paying below market rates simply because the landlord hasn't raised the rent in years, or perhaps the property is not maintained well.
Both scenarios present you a great opportunity to buy the building, raise the rents (making upgrades if necessary) and resell the apartment building at a higher price. This raises the GPI-the gross potential income-which is the maximum gross income generated from the rent if all the units were occupied.

If you would like more information on these types of investment properties in our area, please don't hesitate to give us a call or send an email.

Warm regards,

Real Estate Investor Series: Part 3 of 6!

6 ways to make a profit in real estate investment

Many homeowners get into real estate investing by buying a home and using this home as a rental when they upgrade to a larger home. Called "serial purchasers", they continue to buy (and hold onto) additional properties.

Other investors prefer to find a quicker path to real estate investment success through one of the following ways.

Buy and Flip
Flipping means selling the property you just bought for a higher price as soon (or in some cases before) you take title on the property. While flipping allows you to make money fast in a hot market (or on a property you purchased well below market value), you may need to pay capital gains (talk to your tax advisor).

Buy and Scrape
Scraping is tearing down an existing home and building a new home. To capitalize on this idea look for areas where home prices are rising, vacant lots are few, and there's an inventory of older homes. While there are many permits you need to obtain, scraping can be a very lucrative process.

Buy and Split
Just as you can buy one lot and split into two, you can also buy one house and subdivide into two homes right down the middle, or buy a larger house and develop each floor into several condominiums. Another variation is to buy a house with a large lot, subdivide the lot, rent out the house, and sell off the land.

Smart real estate investors look at existing properties with new uses in mind (and they check into all building and zoning regulations). We can help you by identifying potential rental properties in the Richmond area. Please call or email with any questions you have.

Warm regards,

Real Estate Investor Series: Part 2 of 6!

Market indicators tell you when to invest in real estate

Real estate prices cycle through highs and lows. Tracking the following market indicators will help you decide if it's a good time to invest in real estate in your area.

Job Growth
People go where the jobs are, and home prices follow jobs. A strong local job market is a sure sign of a healthy real estate market. While the Wall Street Journal gives you insight into the nation's overall economy, check the Wenatchee World and other local resources for North Central Washington specifics.

Housing Inventory
The housing inventory is the number of houses for sale at one time in the area. If there are more houses than buyers, prices tend to fall and if there are more buyers than houses, the opposite happens. Also look at the number of months or days it is taking to sell a home. If it's less than 60 days the market is typically considered hot.

Number of Repos on the Market
A repo is a house that has been taken over by the bank because the owner failed to meet the loan payment-in other words, it's a foreclosure. The more foreclosures in your area, the weaker the real estate market.

Number of Multiple Offers on Homes
Multiple offers are when two or more buyers "bid" at the same time for the same house. It's a sure sign of a hot market, usually resulting from a limited inventory creating the need for buyers to compete on price for the same property.

To learn about the local conditions in our market, please don't hesitate to call or send an email. We will be happy to get you the information you need.

Warm regards,

Real Estate Investor Series: Part 1 of 6!

5 Reasons To Invest In Real Estate

According to the National Association of Realtors (NAR), second-home sales (for vacation homes and investment homes) accounted for four out of 10 homes sold. While vacation-home buyers purchase primarily for enjoyment, investment-home buyers are looking to generate income in the following five ways.

#1: Appreciation
Returns of 10 percent and more are not uncommon if you select good real estate properties and a solid market. It's a return rate you won't find on bank products or with most stocks.

#2: Cash Flow
More than half of all investment-home buyers rent out their properties. Month in and month out these properties create income from renters AND gain long-term appreciation.

#3: Less volatility
While real estate cycles through periods of highs and lows, it doesn't change dramatically day-to-day like stocks. Investing in real estate is viewed as being less speculative than stocks.

#4 Tax Advantages
Your real estate investments offer you two tax advantages: you can deduct property expenses and depreciation. Plus doing a 1031 exchange lets you avoid paying tax on profits from the sale of rental property if you roll it into another real estate investment property (talk to your tax advisor).

#5 Value-Added Improvements
The saying "buy it low and sell it high" applies to stocks and real estate. The advantage with real estate is you can buy inexpensive property, fix it up, then raise the rent or sell it for more money.

If real estate investing is a path you are interested in pursuing, please feel free to call or email with any questions you have.

Have an outstanding day!

2008 Top Ten Places For Business and Careers!

This year, Raleigh, N.C. is number one for the second year in a row due in part, to its strong job growth. For the third straight year, the Southeast is home to half of the top ten, however there is new blood near the top with Lexington, Atlanta and Richmond joining the ranks and Spokane and Fort Collins also jumping ahead. Rounding out the top ten is Knoxville, Tenn. where business costs are 14% below the national average.

Also, the Forbes ranking may have you rethinking Iowa as just "the corn state". Des Moines, ranked fourth, with its sports arena, art center and heated 3 mile sky-walk, now boasts an unemployment rate of 3.4% and business costs that are 10% below the national average.

2008 Top Ten Places For Business and Careers

1. Raleigh, North Carolina (#1, 2007)
2. Boise, Idaho (#3, 2007)
3. Fort Collins, Colorado (#28, 2007)
4. Des Moines, Iowa (#4, 2007)
5. Lexington, Kentucky ( #30, 2007)
6. Atlanta, Georgia (#25, 2007)
7. Richmond, Virginia (#14, 2007)
8. Olympia, Washington (#10, 2007)
9. Spokane, Washington (#20, 2007)
10. Knoxville, Tennessee (#5, 2007)

Receive our Monthly Newsletter!

Receive our monthly newsletters and stay up-to-date on local real estate.

As real estate professionals, we're often asked, "How's the market?" To answer that question, we send a regular e-newsletter that provides housing market trends and helpful homeowner tips.

We share this newsletter with clients, friends and neighbors in the area, and they enjoy it so much we wanted to share it with you as well. Whether you own a home, are looking to buy, or are thinking about making a move, this newsletter simplifies your life with:

· Info on how real estate trends affect the market
· Seasonal tips for maintaining a home's comfort and value
· Room additions that add to the experience (and resale value) of a home
· How-to's on makeovers-tools, wall coverings, furniture, and the results
· Latest ideas on how backyards, gardens, decks, and porches are becoming the hottest new living spaces
· And much more!

The newsletter comes monthly, which gives just enough breathing room between issues so you start looking forward to receiving the next one. If you would like to receive our monthly newsletter, simply email us at mmekhimar@Remax.net.

Additionally, if you're selling your home in North Central Washington, check out our Free Over-The-Net Home Valuation service: http://www.e-richmondhomes.com/What_is_my_home_worth/page_1755282.html.

And if you're buying, don't miss out on our Exclusive Buyer System, where you beat out other buyers on hot new homes and properties right when they come on the market: http://www.e-richmondhomes.com/Receive_home_listings_by_e-mail/page_1755299.html.

P.S. Please know that we are the only people who will be using your email address. We do not share your information with anyone

Why Use a REALTOR®

"Many consumers consider selling their home directly but eventually turn to REALTORS®. Smart home sellers realize they need the expertise in pricing their home, making connections with REALTORS® working with buyers, arranging and staffing open houses, and coordinating with other professionals in the sales process."
- National Association of Realtors Website (NAR)

We'd like to share the following Web page from NAR, aiming to educate the home sellers and buyers on the true value and befits of working with a Realtor. On the high level:

"REALTORS® Are Experts"
"REALTORS® Are Part of the Community"
"REALTORS® Protect You"

Click here
http://www.realtor.org/home_buyers_and_sellers/why_use.html to learn more!

It's also very important to realize that not all real estate agents are the same...we're not a commodity! Some work part time, some run their business like the CEO of a Fortune 500 company, and some--to be quite frank--are out for themselves and thus don't serve the best interests of their clients.

With that in mind, choose a REALTOR® that aligns with your goals and ideals, and someone you have a good connection with. As much as the Internet wants you to believe the home buying and selling process is in-personal, I'm here to tell you that couldn't be any farther from the truth. There several steps and processes involved in a successful real estate transaction, those of which will save you precious time and money if you choose the right real estate agent.

How to Obtain Top Dollar for Your Home!

If you are considering selling your home, you are probably asking yourself questions like:


* Should I replace the tile counters in the bathroom with granite?
* Does the wallpaper make the house look dated?
* Is the cost of installing new kitchen cabinets worth the expense?
* Do I need to put on a new the roof or can I just have it inspected and replace the deteriorated areas?
* Is it necessary to paint all the interior walls, or would touching-up the obvious areas work just as well?
* Would installing new carpets and/or refinishing the wood floors be worth the expense?
* Should I have the house painted before putting it on the market, or use that as a bargaining point in negotiating the sale?

These are all outstanding questions. And none of them has an easy yes or no answer. Your home is unique, as is the neighborhood you live in.

Part of The Davidson Team's expertise is helping sellers prepare their homes with the right improvements that bring in top dollar. We would be happy to stop by and do a simple walk-through to point out areas to focus on to improve your house's market value, as well as what projects will not likely give you a good return on your money or time.

There is no charge for our service. Our goal is to be the neighborhood expert. The more neighbors we talk to and the more familiar we become with the homes in our community, the better level of service we can offer to families moving into our area.

If you are interested in having us do a free walk-through to get your house market-ready or simply have questions you'd like answered, please contact us today!

Five Local High Schools Make Newsweek List Of Top 1300 In U.S.

Five local high schools have made Newsweek magazine's list of the top 1300 public high schools in America.

205 - James River High School - Midlothian.
457 - Midlothian High School - Midlothian.
893 - Clover Hill High School - Midlothian.
937 - Atlee High School - Mechanicsville.
1022 - Monacan High School - Richmond.

Full Story . . .

Richmond Virginia Real Estate - Good time or bad time?

With all the "good news" and "bad news" that we see on in the media about today's economy, it is hard for the homeowner to decide if now is the time to buy and/or sell real estate. We are often asked, by homeowners who want to move up or move down to a different home, if now is the right time to sell and purchase.

The fact is, regardless of market conditions, if you want to purchase a "move-up" or "move-down" home, there is no wrong time to do so. If the market is extremely active, you will get a premium price for the home you are selling and the active market will demand that you also pay a premium price for the home you purchase. If the market is very slow, you will have to accept a reasonable price for your home but you will find less competition when purchasing your new home. You sell at a reduced price but you also purchase at a reduced price.

When selling a home to buy another, there is no bad timing. In a good market you sell and buy with inflated dollars. In a slow market you sell and buy with deflated dollars. You really don't gain or lose in either situation.

Now is a great time to buy and sell real estate.

Tips for Getting Pre-approved for a Mortgage!

In a competitive market, getting mortgage pre-approval is essential. It gives you a great bargaining tool when you're negotiating with sellers. Regardless of the market situation, pre-approval is also handy because it means that before you even start house-hunting, you've got a good idea of what you can afford.

Pre-approval versus Pre-qualification

Pre-qualification and pre-approval are similar processes. Having pre-qualification means that you have a general idea of how much mortgage you can afford, but it's not guaranteed that you will get that amount when you apply for the mortgage. Pre-approval takes the process a step further than pre-qualification, because the lender will verify your employment, income, assets, debts, and credit history, and you will receive a letter stating that your mortgage is approved for a certain amount of money, usually with a limit of between 30 and 90 days. That means you know exactly how much you have to spend, and sellers know that you're a serious customer.

Pre-approval has another advantage in that it saves you time when it comes to closing on a property - you've already been through about 90% of the mortgage application process. If you have pre-approval it means that all you need to finalize the mortgage is a purchase contract and a property appraisal. Being able to close quickly is an advantage in a competitive market, and in a slow one it may help you negotiate a great deal on a property.

Note that if you are pre-approved for a mortgage, you must notify your lender immediately if your financial circumstances change between pre-approval and closing, as your pre-approval may be invalidated.

Increase Your Chances of Pre-approval

Pay Your Debts
Any debt that you can't pay in full within six months will be included as part of your monthly debt total. And the higher your debt total, the lower the chances you have of getting pre-approved - if your monthly debt total exceeds about 36% of your gross monthly income, getting pre-approval may be difficult.

Don't Create New Debt
Your pre-approval is subject to an evaluation of your finances. If you're thinking about buying a home then it's a wise move to refrain from making any large credit purchases. It's estimated that every $100 a month you pay on a credit card reduces your home loan eligibility by $10,000.

Preparation
When you're preparing to apply for a mortgage pre-approval, there is a wide variety of supporting documentation you'll need to locate and have ready for the application process. This includes tax returns, pay stubs, evidence of any other income, bank statements, and debt payment booklets or account statements.

What to Do If You Have Bad Credit
When assessing your credit, mortgage lenders typically pad most attention to your FICO score. Some lenders won't even consider offering a mortgage to anyone with a FICO score of less than 680. So what do you do if your credit isn't that good?

Check your credit reports - obtain a copy of your FICO score and credit reports and check to make sure there are no errors.
If you can manage a larger down-payment, it may help your chances of getting pre-approved.
Sub-prime mortgage lenders offer mortgages for people with credit problems. They usually involve paying a higher interest rate, however it's possible to get a sub-prime mortgage and then refinance to a conventional loan with a lower interest rate after a couple of years of rebuilding credit.

Buying a neighborhood/ community!

When searching for a new home, don't forget one of the most important considerations: location, location, and location.


Because the neighborhood/community in which you live affects your life in many ways--including your children's education, travel time to and from conveniences and work, the level of comfort you feel with your surroundings, the future value of your home investment and many other factors--we suggest that you focus on a neighborhood/community before you search for a specific home.


Working through your Realtor, explore the personalities of the neighborhoods/communities in your price range, before narrowing your search down to individual homes. Take the time to research the schools, driving times, available conveniences, the social and professional make-up, value trends, etc. Be sure you choose to view homes only in neighborhoods that fit your personality and life style. This will ensure a happy end result!

How to Find a Good Investment Property!

In 2005, 23% of all homes sold were investment properties, according to the National Association of Realtors. There's no question that investing in real estate can be lucrative, but it's important to choose your properties carefully to make sure you don't end up getting burned.

Choose the Right Neighborhood
Just like with any other real estate purchase, location is all-important. Whether you're buying an investment property to rent or to renovate for resale, a large part of your success will come down to the neighborhood you buy into. Developing or undervalued neighborhoods are both good prospects for investment buying. The easiest way of getting a feel for good prospects is just to jump in your car and drive around your area. Look for areas with a lot of development going on, or where new housing projects are planned. If you're buying a rental property, bear in mind that if you're going to be doing maintenance and repair work yourself, somewhere relatively close to your own home is a good idea so that you don't have to spend a lot of time traveling to the property.

Don't forget the old rules still apply - buy the worst house in the best street, not the best house in the worst street. You don't want to end up buying a property that's worth significantly more than neighboring houses, as this will mean your investment has no room to appreciate in value because the surrounding properties are dragging its value down.

Foreclosures
Buying foreclosures can be risky, much more so than buying property in the traditional fashion. However, if you're aware of the risks beforehand and take steps to minimize them, you can end up with a great deal. Before you even consider buying in this way, you should be very familiar with foreclosure laws in your state, in addition to knowing as much as possible about the neighborhoods you're interested in.

To find foreclosures, look in your local newspapers for advertisements with key words such as "bank-owned," "foreclosed," or "REO" (real estate owned). Look on lender websites to check for foreclosure listings, and call lenders and ask to speak to someone who handles foreclosures.
As a final caveat - don't buy anything without having it inspected first, no matter how good the property looks on the surface. Property inspection is the best way of ensuring you end up with a profitable deal.

Why Good Credit is Important
When it comes to financing the purchase of rental property, lenders often require larger down payments and higher interest rates. This is because lenders know that owners of rental properties are more likely to default on loan payments than on payments for their personal homes. Simply put, you pay more because rental property is a higher risk investment. To improve your chances of getting a good loan, it's important to have good credit and to reduce your credit card and other consumer debt as much as possible.

It's also important to ensure you have a good-sized cash reserve left over after you've bought your property, to help pay for surprise expenses such as repairs (and periods when the house is vacant, if you've purchased a rental property).

Get to Know the Tax Laws
Owning investment properties can provide big tax benefits. Getting to know your state and federal tax laws is important for maximizing the profits you can make from investing in real estate. For example:

*Depreciation on an investment property is tax-deductible at an annual rate of 3.64% of the home's market value.
* Mortgage interest on investment properties is tax-deductible.

Do your homework, choose your properties carefully and watch your investments grow!

Video of the week!

FREE Foreclosure Listings in Richmond, Virginia - REO listings in Richmond!

Did you know that the majority of foreclosure listings are on your local MLS?? There are many websites that charge to you get foreclosure lists from them when this information is out there for free!! That's right...I said it...for free!! You can contact your local friendly agent (hint hint) who can set you up on automatic emails, you will receive listings that fit your criteria....See homes as they come on the market!!! Buying a foreclosure has its challenges, so it's always good to have an agent who is familiar with the process....If you have questions or, want to receive automatic emails. Check my web site htt://www.RichmondVAHomes4Sale.com and call me, Mohamed 804-243-0605!

Homes for sale in Richmond, Homes for Sale in Chesterfield, Homes for Sale in Henrico, Homes for Sale in Glen Allen, Homes for sale in Mechanicsville, Homes for sale in Hanover, Homes for Sale in Midlothian, Homes for sale in Goochland, Homes For Sale in New Kent, Homes For Sale In Powhatan, Foreclosure listings in Richmond

Happy Mother's Day!

Richmond Virginia - REO Property!

This is a deal you don't want to miss!
$99,900 ~ Bank Owned Property ~ House for Sale - This is a deal!



Location: Richmond Virginia
This is a deal cannot beat! $99,900
2 bedroom Brick cape good for investors or handyman, 1596 sq ft and lot size is .18 acre. Built in 1940.

How to Make Money in Real Estate Investing!

Lower Your Taxes

Tax incentives for real estate investors can often make the difference in your tax rates. Deductions for rental property can often be used to offset wage income. Tax breaks can often enable investors to turn a loss into a profit.

For which items can investors get tax breaks? You could claim deductions for actual costs you incur for financing, managing and operating the rental property. This includes mortgage interest payments, real estate taxes, insurance, maintenance, repairs, property management fees, travel, advertising, and utilities (assuming the tenant doesn't pay them). These expenses can be subtracted from your adjusted gross income when determining your personal income taxes. Of course, these deductions cannot exceed the amount of real estate income you receive. In addition to deductions for operating costs, you can also receive breaks for depreciation. Buildings naturally deteriorate over time, and these "losses" can be deducted regardless of the actual market value of the property. Because depreciation is a non-cash expense -- you are not actually spending any money -- the tax code can get a bit tricky. For more information about depreciation and various tax alternatives, ask your tax advisor about Section 1031 of the U.S. Tax Code.

Have a Positive Cash Flow

There are two kinds of positive cash flows: pre-tax and after-tax. A pre-tax positive cash flow occurs when income received is greater than expenses incurred. This sort of situation is difficult to find, but they are usually a strong and safe investment. An after-tax positive cash flow may have expenses that outweigh collected income, but various tax breaks allow for a positive cash flow. This is more common, but it is generally not as strong or safe as a pre-tax positive cash flow.

Regardless of what kind of real estate you choose to invest in, timely collections from your tenants is absolutely necessary. A positive cash flow -- whether it be pre-tax or after-tax -- requires rental income. Be sure to find quality tenants; a thorough credit and employment check is probably a good idea.

Use Leverage

One of the most important factors in determining a solid investment is the amount of equity you are purchasing. Equity is the difference between the actual worth of the property and the balanced owed on the mortgage. In order to increase equity, investors often choose to borrow money. Borrowing money allows you to magnify the return on your investment. Borrowing money to increase equity is known as leverage. Leverage can make the money you invest out of your pocket go a long way.

In order to illustrate the value of leverage, let's take a fictional
example: assume you bought a $200,000 rental property with a 30% down payment; the remaining 70% of the purchasing price is paid for with borrowed money, Let's further assume that after several years the home is worth $270,000. The $70,000 return on your $60,000 investment -- the amount that you paid directly -- is more than 100%. (There is more to calculating the return on investing, but this will keep it simple.) If you bought that same $200,000 property without borrowing, the return on your investment would be 35%. Leverage puts borrowed money to work for you.

Benefit from Growing Equity

While investing in real estate is relatively complex, it is often worth the extra work. When compared to other financial investments, like bonds or CD's, the return on investment for real estate purchases can often be greater.

The key to real estate investing is equity. Determine an amount of equity that you want to achieve. When you reach your goal, it's time to sell or refinance. Determining the proper amount of equity may require the assistance of a real estate professional.

Richmond Virginia Real Estate - Home Buyer guide

Home buying and home ownership is not always easy, but most people agree that the rewards outweigh the challenges. The first challenge, of course, is to learn all the steps to buying a home. Our Buyers Guide will provide helpful tips and information you need to understand the process and get started on your path to home ownership.

Click here Home Buyer Guide to review the guide.

For additional Buyer and Seller information, check out a variety of educational resources at Richmond Homes Website

Relay for life in Richmond Virginia

Relay For Life represents the hope that those lost to cancer will never be forgotten, that those who face cancer will be supported, and that one day, cancer will be eliminated.

As a volunteer for the American Cancer Society, I am asking for your help in the success of this year’s event. In 2006 with your help or the help of businesses just like yours, The Relay For Life – Courthouse Event raised over $104,000.00. Due to the support of the Relay For Life, the American Cancer Society is making a difference in the live of cancer patients and their families right here in our community. Will your business help us in our fight to find a cure for cancer?

The Relay For Life - Courthouse Event is: June 2 - 3, 2007, at L.C. Bird High School, 10am – 8am

What is Relay For Life?

Relay For Life is the American Cancer Society’s signature activity and fundraiser. It offers everyone in the community an opportunity to participate in the fight against cancer. Our event is a 22-hour event where teams of people camp out at L.C. Bird High School and take turns walking around the track. Teams form from businesses, clubs, families, friends, hospitals, churches, schools, and service organizations. Each team is asked to have a representative on the track at all times during the event. Participants get donations prior to and during the event to aid in cancer research.

Relay is a phenomenon that occurs in thousands of communities across the country. This is the most successful nonprofit event in the United States. It rallies communities of people from all walks of life – often around people whose lives have been touched by cancer. It is a celebration of life for those who have survived, a memorial for loved ones we have lost, and a chance to join forces in a powerful fight.

Help us accomplish even more in 2007!

There are many ways to support Relay For Life, either as a team captain, participant, sponsor, volunteer, or donor. Relay is much more than a fundraiser, the event takes on a carnival like flair with games, music and lots of fun. We would love for you to join! Give us a call for more detailed information and/or visit our website at:
www.acsevents.org/Courthouse/RFL.

Consequences for 'Walk-Away' Borrowers!

The government and the lending industry are taking aim at “walk-away” home owners who stop making payments and months later send the house keys back to their lender.

Such borrowers will not be able to get another mortgage through Fannie Mae for five years, unless there are “documented extenuating circumstances.” In that case, the prohibition is three years. Even after the prescribed time has elapsed, a borrower with a foreclosure in his file will have to make at least a 10 percent down payment and have a FICO credit score of at least 680 to qualify for a Fannie Mae loan.

Freddie Mac, which counts foreclosures as major credit black mark for seven years, is now aggressively pursuing walk-away borrowers where permitted under state law, a senior official said.

Federal legislation enacted last year allows home owners who negotiate loan modifications with lenders and have portions of their principal debt eliminated to escape income tax liability for the amount forgiven.

Walk-away borrowers, by contrast, have nothing forgiven, and the Internal Revenue Service may demand taxes on the balance they never paid, the IRS says.

Source: Washington Post Writers Group, Kenneth R. Harney (04/12/2008)

Buyers, what are you waiting for?

Buyers are now faced with a common dilemma in today's buyer markets. They often ask...

"If home prices are still going down, should I wait to purchase until later this year?"

The short answer is no. It's not smart to time the market. My advice to first-time, move-up, and relocating buyers: buy when it's the right home at the right time for you.

THREE REASONS WHY NOW IS A SMART TIME TO BUY
1. Flexible loan options are available. Buyers with "ok" to good credit can obtain 100% financing, asset-based loans, and put little money down.

2. Interest rates are great. Buyers who were on the fence have jumped on the ability to obtain a good interest rate.

3. More competition from Sellers to sell their homes. The market heated up in March, but there is even more competition among Sellers during summer months.

"The thing that will make home prices stop falling is the
very same thing that will push mortgage rates higher,"
says Jim Svinth, chief economist at mortgage firm
Lending Tree. So anything you gain by a further drop in
prices might be offset by rising financing costs.”
- TIME MAGAZINE | February 25, 2008

Vacation Homes!

It may hit you every year about this time as you schedule your annual family trip to the coast or other favorite vacation spot. "Wouldn't it be great if we owned our own beach home (or condo or ski chalet)? Instead of paying rent to someone else, we'd be paying ourselves." Well, if you decide to refinance and spend the money on a vacation home, here are some tips to consider.

The 17-week formula

How do you know if you can afford a vacation home -- even with the help of renters? Estimate that one peak-week rental fee should be enough -- and hopefully more than enough -- to pay the home's monthly mortgage if you finance your purchase. For example, if you borrow $300,000 at 5.5 percent for 30 years on your beach cottage, your monthly house payment would be $1,703.36. That should be your minimum weekly peak-rate rental fee. If you don't think you can charge that much for rent, don't buy. However, if you can be reasonably sure of renting your home for at least 17 weeks a year, you should break even. Most owners can count on 12 peak rental weeks each year. Those 12 weeks each year should pay the annual mortgage. Five additional weeks of non-peak rental income usually enable owners to cover taxes, cleaning and maintenance expenses, and other incidentals.

Call Mohamed if you are looking to invest into a vacation home. We'd be happy to make sure you land the best deal possible!

Luxury Home Trends!

One of the best ways to update your home and ensure a good resale value is to adopt trends from the luxury home market. These cutting edge trends eventually find their way into the new construction market and become mainstream styles. While most households can't afford in-home elevators or a custom wine cellar, here are a few of the affordable latest luxury home must-haves that are well on their way to new homes across the nation.

In the Kitchen

Warming drawer - Better than the warm setting in your oven, warming drawers keep foods hot and moist until guests arrive or the rest of the meal is ready.

Refrigerating oven - Program it to refrigerate during the day then log on remotely to start the cooking and have your meal ready when you get home.

Multi-level islands - A raised portion of a kitchen island adds dimension, a comfortable eating surface and, if placed strategically, can mask the clutter around a sink or stovetop area.

Three-door refrigerator - Two French doors on the top and a large one-drawer freezer on the bottom make for easier access to the items you use most.

Food prep sink - An extra sink doesn't need to take up a lot of precious counter space but in a large kitchen it can improve the work flow and even encourage others to participate in the food preparation.

In the Bath

Vertical spas - One of the hottest trends in today's baths, these incorporate multiple showerheads, water diverters and sophisticated temperature control systems into your shower.

Heated tile floors - Add to the spa feeling with cozy radiant heat under tile flooring. If you're considering new flooring, this is easy to install and a big selling point.

Towel warming drawers - This luxury trend started in the kitchen and is taking electric towel bars to a new level by warming up your robe and slippers.

Stone countertops - Granite, marble and soapstone come in natural colors that complement most bathroom cabinets. They're also easier to keep clean compared to traditional tile.

In the Master Suite

Fireplace - Gas fireplaces are quickly becoming fixtures in luxury homes. Builders are maximizing their effect by constructing them into a wall adjacent to the master bathroom so they can be seen from both sides.

Walk-in closets - Walk-ins are almost required in new homes today, but the luxury market has taken them to a whole new level with the addition of extravagant cabinetry and center islands with storage drawers.

Outside

Outdoor kitchens - More and more homeowners are taking their cooking and entertaining out back with the addition of fully functional kitchens that include grills, custom cabinets and worktops, and even wood-fired ovens.

Heated patios - An emerging trend in cooler climates, radiant-heated patios and driveways melt snow and ice and keep walkways safe.

Whether you are thinking of selling soon, or simply want to enjoy the benefit of upgrading your home while you're still living there, these affordable luxury trends are certain to hold their appeal for years to come.

Take the test!

Before you buy your next home. look for the details!

Don’t Lose Equity to Foreclosure!

In today’s market, more and more people know someone who is struggling with their mortgage payment as a result of a sharp increase in their interest rate or other loan factors.

If you know someone who is facing a possible foreclosure, I have information that can help. And the sooner we act to help someone in this position, the better the outcome. Because once a house starts to go into foreclosure, it can be difficult to stop and the ramifications can be long lasting:

• the owners may face substantial late fees
• the owners may loose all of their equity
• the owners may suffer with a mark on their credit that will take years to erase
  

But, this does not have to happen. There are a number of effective strategies to help the homeowner forestall a foreclosure. Renegotiating the loan is one possibility. Two other options are a short sale (sell for less than the loan amount with bank approval), or a quick sale (sell for more than the loan amount but at a lower, more attractive market price).

As a full service real estate agent, I am committed to help clients with all their housing needs. Whether it is to help preclude a foreclosure, pull equity out of their home for investment properties, or assist them in either finding a new home or selling their current one, I have the knowledge and the expertise to make the process go smoothly.

Foreclosure is a nationwide problem, but it’s also in our own backyard. If I can help you or anyone you know hold on to their home (or minimize their losses), please call or email me. I appreciate the opportunity to be your trusted real estate resource.

What does $1 million buy in your community?

Short Sale Hurting the Market!

A new term we have come to know as realtors is short sale. People just see a great price and don't realize that the asking price is not an accepted price from the bank.
As a listing agent you can not find out what price the bank will accept until you have a valid offer. The only way to ensure yourself of getting an offer is to price the property low. Once the property gets an offer the property finally gets looked at by the bank. MONTHS LATER, you might actually get a response, most likely a counter offer that is higher then asking and totally unrealistic.

Spring is here and its time to plant.

Buying a Richmond Home? Down Payment Assistance Program

Are you looking to purchase your first home in the Richmond area soon? Well, the city of Richmond has a Downpayment Assistance Program for first time home buyers that could help make this dream a reality. The goal of the program is to increase the homeownership rate among first time buyers in lower income and minority households.
There are some requirements to Downpayment Assistance Program. There are income limits and the buyer must be purchasing their first home within the Richmond city limits. There is also a free homebuyer education course that must be attended.



For more information on the complete requirements and details on the program please feel free to contact me mmekhimar@remax.net or give me a call 804-243-0605.

Servers, keep your tips!

Do you have a manger or supervisor that insists on splitting your tips?

Starbucks has been ordered to pay employees $105 million because shift managers thought they deserved a cut of the tip jar.

San Diego Superior Court Judge Patricia Y. Cowett cited California law that prohibits employers from taking employees’ tips. The suit, filed in 2004, included about 1,400 Starbucks locations in California and was filed on behalf of 100,000 workers.

You served it, you earned it!

Yes, you can sell and buy a home!

Here are a few issues to consider.

• You may have to sell for a lower price...in fact you will sell for lower than last year!
• You can buy the home of your dreams for a lower price too!
• You will only be seeing people that really want to buy....believe it! Credit has tightened so only real buyers are in the market.
• Can you expect some low-ball offer....YES!
• Can you expect to sell in a reasonable time.....Yes if marketed properly!

So if you want to sell do it! Do it with your eyes wide open...know what to expect. Know what your final sell price range is probably going to be. Here are the three probable prices to consider...Your list sell price, the offer price and the actual sell price.

So can you sell? YES. Can you buy another home which will be of similar discount to match what you had to do? YES. So if you do that when the market comes back will you increase in value to make up for the current market down turn? YES, it always comes back...if you have purchased up your investment will go up exponentially.

So is this a great time to sell and buy? rates are great...the home selections are as good as it is going to get and your opportunity to find exactly what you want at a great value could not be better.