By now, we have all heard about the Supreme Court decision which gave the town of New London, CT, the green light to seize homes of private citizens and sell their property to a developer. The city claimed that the new development of houses, stores and offices qualified as "public use" because the new development would generate more tax dollars than the homeowners would pay.

This action alone is outragous. It is also a violation of the rights and liberties of private citizens, as promised in our constitution. If the abuse stopped there, it would still be shameful. But, this story of unconscionable abuse grows more sinster and vendictive with each passing day.

The town of New London, like a totalitarian drunk on power, is now trying to collect back rent from the seven homeowners who battled their own home town, just to keep their homes. The city argues that those homeowners have been living on city property, since their fight against the seizures began in 2000. Thus, they owe the city back rent through 2005. The city also wants any rental income the homeowners may have earned from tenants during the five year battle.

If you find the above gangster-like behavior hard to believe, check out the next shakedown awaiting these seven homeowners. The New London Development Group is now presenting these seven homeowners with buyout offers based on the market price of their homes in the year 2000. Given the real estate boom in the last five years, the difference between year 2000 sales prices and the present-day value is a huge windfall for New London, CT, at the expense of its seven, homeless citizens.

If you have to remind yourself that this attrocity is taking place in Connecticut, United States of America, you are not alone. Thankfully, a number of states are inacting legislation to forever prohibit the tactics of thug governments like Zimbabwe, Africa and New London, CT.

As I sit writting from the comfort of home I believe is mine, the following quote dashed through my mind...

"The world is a dangerous place in which to live ... not because of those who do evil,

but because of the good people who allow evil to happen."

To the seven citizens of New London, CT, who now find themselves homeless, through no fault of their own. You are not alone. You have not been silenced. We hear you. We are with you.

Shame on you New London, CT. Your actions and your continuing to beat the beaten, should be a wake up call to every tax paying citizen in your state... Leave Connecticut in your rear view mirror. Like Sodom and Gomorrah...don't even look back. I know my town, Asheville, NC, will welcome you with open arms and hearts. Seriously, come for a visit. It's absolutely beautiful, affordable and most importantly, we won't allow anyone to steal your home for their gain.

Specialty Loans: Risk and Reward

The National Association of Realtors warned home buyers about so-called "affordability" loans that promise low, initial payments. The Realtors' warning is particularily news worthy because Realtors sell homes to people who couldn't qualify to buy a home, otherwise.

The press release said that home buyers "may not realize that monthly payments on some types of "specialty mortgages" can increase as much as 50% or more when the introductory period ends."

Affordability or Specialty Mortgages include interest-only loans with rates that adjust with fluctuations in interest rates and the increasingly popular Option A.R.M. The A.R.M., offers borrowers several payment options each month, including one payment option that does not cover the interest due on the loan. When borrowers select that option, their loan balance grows because the payment amount is less than what is really owed to the lender. The borrower's mortgage balance increases with each payment made. This financing oxymoron is known as "negative amortization".

These "specialty loans" are very popular in California and other markets where house prices have rocketed. The danger is that when current house prices become unsustainable and interest rates continue to rise, these homes will be difficult, or impossible, to sell or refinance. Homeowner's will have to cough up thousands of dollars to sell or refinance, or face immediate foreclosure.

There is little doubt that for most of us, these type of loans increase the risk of default. They are also being over-marketed and oversold. To better understand the risks involved contact the non-profit group, "Center for Responsible Lending". They, in conjunction with the Realtors Association, have put together a brochure that offers advise on choosing a mortgage for your home.

Thank you for reading and if you have any questions or comments, please email tommi@infotube.net.

Make your Tract Home Stand Out

You're trying to sell your home, but every house in the neighborhood looks just like yours. Every lot is 50'x100'. All the homes are the same age and floorplans barely differ. Is there a way to be unique in this sea of sameness?

Home sellers in large development neighborhoods face special challenges. All the homes look similar, so the sale often comes down to a price war. Give your home some memorable character and stand out from the masses.

1. Excitement... create exciting curb appeal that draws buyers to your home. Use paint to draw attention to the front door and architectural features. Paint the trim on the front of your home in a contrasting color; Paint the front door a complimentary accent color, add a kick plate and upgraded hardware. Plant, bright, colorful flowers or shrubs near the entry or at the sidewalk; down play the massive garage door with subtle paint colors or speciman trees that draw attention elsewhere; change the color of your sidewalk or driveway with concrete stain or pavers. Spruce up your mailbox with plants or a unique feature. Add lighting that marks the path to the door or add lights on either side of the garage or driveway; add a tall tree to block a boring brick chimney or plain siding.
2. Create Lifestyle...Buyers aren't looking for a house, they are looking for a lifestyle. Use a water feature to create an air of calm and relaxation; hang a hammock between shade trees, then add a pillow and book; clean up your grill and add a few torches around the patio; try the addition of a couple of palm tree's, with up lights; weed all flower beds and eliminate anything which screams "maintainance needed"; keep your lawn fertilized and well watered...a bright green lawn makes you want to walk barefoot.
3. Grab a hammer...Add gable trim pieces to give your home a little flare; Trim dresses up cheap vinyl. Use window trim to cover, plain vinyl siding around your windows; Remove the plain siding around a gable or garage door and replace with shakes, vertical, scalloped or board and batton vinyl siding pieces; remove a garage door panel and add one with windows; or, remove the whole garage door and replace it with a carriage style, stained or painted in a complimentary color; remove cottage style shutters and replace them with wide trim around the windows; hang some window boxes and plant them with colorful, trailing, bedding plants; build a deck or arbor over an existing concrete slab patio; hang a lattice screen and plant a climber on a blank wall; add some new composite rock or brick veneer around plain porch posts, at both sides of the garage or at the edge the side walk.

Give your home a little distinguishing character. Some ideas cost more than others, but will make your home more pleasant to live in and easier to sell now, or when the time comes.

Marketing your Older Home

While today's home shoppers are used to walk-in closets, three car garages, technology and jacuzzi tubs, many are captured by the charm and beauty of a well-kept older home.

Homes older than 80 years are becoming less common. Historic neighborhoods are limited in quantity and are the treasure of most major cities. The style of architecture and craftmanship found in older houses is often lacking in new construction. Older houses appeal to our emotion and sense of history and add to the charm and value of any neighborhood.

When marketing and selling a historic property or older home, leave the conventional methods behind. Target the right kind of buyer for your one of a kind house.

When marketing your older home, tug at the heartstrings. Buying an older home is an emotional decision. Perhaps their grandparents lived in a beautiful American brownstone; maybe they spent summers on a farm when they were children. Even though not all buyers are drawn to a piece of history, many are. Think about the people who faithfully watch "This Old House", are history lovers, collect antiques, love architecture or are preservation-minded. Speak directly to these people in your marketing. They are your audience and the future buyer of your delightful, unique older home.

Other techniques to set yourself apart and are tailored for buyer of an older home are:

1. Emphasize the historical value and location of the home.
2. Research and prepare a written history of the property. Include any old photographs you find. Places to find help in compliling your homes history are the county and/or city government offices, the historical society and your local library.
3. Investigate internet sites that specialize in buying and selling older homes: oldhouses.com; historicproperties.com; thisoldhouse.com; nationaltrust.org
4. Contact your local newspaper and suggest an article on your home's history and beauty.
5. Create a webpage at www.infotube.net, specifically for your older home.
6. Advertise in publications like This Old House and Country Living Magazine.
7. Familiarize yourself with regulations related to historic preservation. Consider writing an article for your newspaper and be sure to mention your house.
8. Hold a special open house in cooperation with the area Historical Society.
9. Research to see if grants or tax credits are available to the buyer of your older home.
10. Put together a "brag book" for people to read as they view your home: Include a photo album, copy of the home's history, newspaper articles about the home, issues of relevant magazines, restoration and maintenance tips, cinclude copies of the home pages of websites like restorationtrades.com and restorationhardware.com
11. Do a direct mailing about the property in your community. Be sure to include all Realtors within a 20 mile radius, the local paper and your prospects and clients.
12. Send a mailing to members or post an ad in the Historical Preservation Society newsletter invite them to your Open House.

In marketing your older home, appeal to heart, emotion and sense of individuality. No bland white box with a walk-in closet can compete. I should know, the home I chose was hand-built in 1903. I smile everyday, as I pull into the driveway, approaching my one of a kind piece of Americana.

Get Rid Of Mold First--Sell House Second

Mold is bad news for homeowners. The little fungi not only causes panic at insurance companies, but can actually make the people living with it sick. If you are in the process of selling your home, get rid of the mold before a buyer or their inspector spot it.

Getting Rid of Mold 101:

Mold needs only 3 things to grow and flourish in your home and You only need your eyes to spot it.

• Moisture
• Nutrients
• Suitable place to grow

Mold Clean-up and Removal:

1. Identify and fix the Moisture Problem: Common sources of indoor moisture include flooding; condensation; roof leaks; basement water seepage; plumbing leaks; overflow from the tub, sink or toilets; firewood stored indoors; humidifiers; inadequate venting of kitchen or bath; venting a clothes dryer indoors; line drying laundry; houseplants.
2. Dry all Wet Materials: As soon as possible. For severe moisture, use fans and dehumidifiers. Remove all wet items away from walls and off floors.
3. Remove and Dispose of Mold Contaminated Materials: Bag and throw away any porous materials that have mold. Non-porous surfaces with mold can be saved if they are well cleaned and kept dry. Always throw out any porous material that has come in contact with sewage. Caution: Protect yourself and others before disturbing mold. To minimize exposure wear rubber gloves, eye goggles, pants and long sleeved shirts that can be removed in the work area and laundered or thrown away and a dust filter mask. Enclose all moldy materials in plastic bags or sheets. Separate the work area from the rest of your home with plastic sheeting. Damp clean the entire area to pick up settled mold in dust.
4. Clean Surfaces: Thoroughly scrub all comtaminated surfaces with a stiff brush, hot water and a non-ammonia detergent or commerical cleaner. Collect excess cleaning liquid with a wet/dry vac, mop or sponge. Rinse area with clean water and collect excess rinse water.
5. Disinfect Surfaces: Disinfectants may kill mold missed by the cleaning. In case of sewage contamination, disinfection MUST be used. Mix 1/4 to 1/2 cup of bleach per gallon of water. The solution can be sprayed or sponged on. Collect all run-off water. DO NOT rinse the bleach off. Allow it to dry on the surface. As always, handle bleach with caution and test a small area before applying.
6. Mold Watch: Always be on mold alert. Watch areas of past growth. If mold returns, repeat cleaning steps and consider a stronger disinfectant solution. Mold regrowth may also signal that the material should be removed or that moisture is not yet controlled. Allow plenty of time for materials to dry completely before rebuilding or refurnishing. Drying out wet materials often takes a lot of time.

Thank you for reading and best of luck in getting the mold out. If you have questions or comments email tommi@infotube.net

Insurance & Water Damage: Use it and You'll Lose It

Are homes with a history of Mold contamination uninsurable and potentially unsellable?

No, but sadly, in spite of the fact that most insurers exclude mold coverage from their insurance policies, many still refuse to write homeowner's insurance policies for homes that have a history of water damage within the last five years. "Homeowners need to take the attitude that a claim on their policy will have an effect", said Omar Morales, spokesperson for the Insurance Information Network of California. Further, Mr. Morales advises "It's up to the consumer to save insurance for really big losses and try to cover smaller losses themselves."

Anyone who has had a water-related damage claim in the last five years may be hard pressed to find homeowners insurance at any price. Not because the house has Mold, but because it might. This leaves sellers and buyers in a tough place, since proof of insurance is required for a mortgage of any kind. To keep premiums affordable, you have to be creative. The two ways to reduce your costs are to take higher deductibles or get a policy that doesn't cover water damage. You can also analyze your policy to see if there's any coverage you could do without.

The Insurance Industry says "You've been warned!" If you use your insurance policy, you stand a great chance of losing it. What can you do to fix the leak or problem without breaking the bank or finding yourself uninsurable? Tune in tomorrow. You can also send an email to tommi@infotube.net, if you have a question relating to a specific water damage or mold issue. Thank you!

Homeowners Insurance = Heartache for Buyers

Homeowners insurance was an afterthought, when purchasing a home. You simply picked up the phone, called an insurance company, answered a few, brief questions and "Poof", your home was insured.

No More. Today, buyers need to start shopping for insurance as soon as the ink is dry on the contract. Buying homeowners insurance in 2005, can require dozens of phone calls and internet searches. There is also a very real, risk that multiple insurance companies will refuse to write coverage, either because of the house or the buyer themselves.

Risk, be it real or insurer-perceived, is the reason for the harsh, new underwriting guidelines. Rejection can result from a buyers past claims, credit problems or suspected or known problems lurking within the property itself. Regardless of the reason for rejection, the bottom line will be a huge premium increase, even if an insurer agrees to write the policy at all. Higher premiums or rejections mean that many buyers will be priced out of the home due to higher monthly payments or will simply be knocked out of the housing market because they or the property can't qualify for insurance.

We know that big brother is watching us closer than ever before. The big difference here is, while we know that our credit history is being tracked, virtually no one knows that their insurance activity is also being tracked and recorded. Insurance tracking, like your credit score, follows you and can even affect your ability to sell your house or buy your dream home.

ALERT: ADVISE FOR HOMEOWNER'S INSURANCE SHOPPER'S

To avoid becoming a character in one the insurance nightmare stories, the best advise is to start shopping for homeowners insurance as soon as your purchase contract has been signed and executed. When talking with an insurance company:

Home Sellers should...

• Disclose up front whether they've filed a home owners insurance claim in the past five years.
• Provide buyers with proof that the prior damage was properly repaired.
• Outline property features or improvements that reduce the risk of rejection from the buyers insurance company.
• Obtain a copy of your C.L.U.E. (Comprehensive Loss Underwriting Exchange) Homesellers Disclosure form at www.choicetrust.com If you have been denied coverage, the report is free.

Home Buyers should...

• Obtain a copy of their own C.L.U.E. (Comprehensive Loss Underwriting Exchange) report and address any errors in it. Pick one up at www.choicetrust.com. The report is free if you have been turned down for insurance.
• Request a copy of the C.L.U.E. report for the home they've agreed to purchase.
• Find out as soon as possible how much a homeowners policy will cost to make sure it will not prevent you from buying the house.
• Try a local or regional carrier, if possible.
• Verify reputable carriers by calling your state department of insurance.

ALL HOMEOWNERS SHOULD:

• Use caution about discussing potential claims with an insuranc broker because that information could end up in a C.L.U.E. report.
• Always use reputable contractors for insurance-paid repairs and keep all repair records.
• Research home improvements that could reduce the potential for risk.
• Consider bundling insurance coverage. Most insurance carriers give discounts to people who purchase mulitple policies.

If you have an experienced a difficulty in getting homeowners insurance for yourself or a property you are interested in, please email tommi@infotube.net and tell us about it.

Tomorrow we look the "Tales of Insurance Woes" and give you idea's for avoiding or surviving them.

Verbal Contract Negotiations

Negotiating a home purchase contract can be an exhausting process. For the buyers, drafting an offer can take hours of work. For the sellers, it is rare that their terms are met entirely in the buyer's first offer. Thus begins the offer/counter offer dance.

It is not uncommon for the offer/counter offer ritual to go more rounds than a heavy weight championship bout. If you are becoming exhausted, one short cut may be to engage in verbal negotiations. Buyer and seller talk with one another. In this more casual format, differences can be addressed and mutual agreement can take place in less time.

Keep material facts like offer price, repair allowances, seller disclosures, buyer qualification, etc. in written contract form. Consider talking things out between yourselves that involve more personal matters like closing dates, move in and possession dates, conveyance of personal property, etc. When everyone is in agreement on all the terms, put it in writing.

While verbal negotiations are often quicker and more simple, it is critical to remember that any verbal agreements involving real estate are not legally binding. A real estate sales contract is a complicated legal document. Until you have a fully, ratified written contract, you do not have a binding agreement. Talk until you agree, but until you have agreed in writing and the contract has been signed by all parties, the seller is under no obligation to sell and the buyer is under no obligation to buy.

In closing, always consult an attorney knowledgeable in real estate, if you have any questions about whether you have a binding contract.

Buyer Beware. Sky is Falling

Buy a house with your Eyes Wide Open. You will have no one to blame but yourself. The Calfornia Association of Realtors new "Market Condition Advisory" disclosure form asks home buyers to acknowledge, in writing, that home prices can and do, go up and Down.

In part, the new form states, "In light of the real estate market's cyclical nature it is important that buyers understand the potential for little or no appreciation in value, or the actual loss in value, of the property they purchase."

It goes further, warning buyers that Realtors have NO role in telling them what to pay for a house. " Buyers are responsible for determining a price to offer on a property, and "If your offer is accepted, you may have 'buyer's remorse' that you paid too much,'" the form states.

In many heated real estate markets, buyers waive contigencies to better their offer to the seller. This "no contigency strategy" is also addressed in the new disclosure, with hopes of protecting agent's from future problems when buyers lose money. The form says "There is inherent risk in writing a non-contingent offer," the form states. "Only you, after careful consultation and deliberation with your attorney, accountant or financial advisor, can decide how much risk you are willing to take. It is your decision alone and cannot be made by your broker or real estate agent."

Summary: Waterfalls are slippery and wet... History teaches, first people lose money, second they look for someone to blame. Kudo's to the CA association and the honest, hard working Realtors for their forward thinking. Real estate is a cyclical business and you've been warned.

Attracting Cash Strapped Buyers

Buying a home drains cash from your bank account like nothing else on earth. First time buyers are always strapped for cash. For most of us, it's a struggle just to save for the down payment and moving expenses. Play this common scenario to your advantage. Sell your house quicker and for more money by reducing the amount of upfront cash a buyer will need to purchase your home.

The easiest way to make your house less cash hungry is to address all repair items before the buyer does an inspection. A short repair list means you take care of business and the buyer see's that they don't have to spend the precious, little cash they have fixing problems with the house.

Price your home a bit higher and offer to pay all closing costs.
You net the same amount of cash. The strapped buyer gives you a "thumbs up" and moves your home to the top of their list.


Shop for low or no down payment financing options for your home. Ask the lender to print out a lending sheet showing the small down payment required to purchase and the monthly payments on the loan. If the buyer see's that they can buy your house with less cash out of their pocket, you' re ahead of the competition and best of all, it costs you nothing.

If you have a big ticket item that needs replacing, price it into the deal. Complete the replacement after closing, but before their move in date. This works great for things like old carpeting. Give the buyer an allowance per foot and let them select their new carpeting. They get the carpet without having to write a big check, after they move. You net the same amount of cash, without having to move your furniture twice. Note: If the condition of your carpet is so bad it turns buyers off, replace it before you put the home on the market. Most buyers are not good at visualizing what something "could" look like.

Purchasing and moving into a new home is real cash burner. Do what you can to make your home the least expensive house to move into, then watch it sell.

Trends for 1st Time Home Buyers

Rising interest rates and home prices leave first time home buyers in a squeeze. The budget- busting, double whammy leaves the average first timer with only 70% of the income required for the $219,000 average priced home.

Creative financing and assistance from family is bridging the gap for now. Many new home buyers are taking on additonal risk in order to get their foot in the door. Interest only loans, deferred interest loans and adjustable rate mortgages are riskier, but allow a first time buyer to purchase, when they could not otherwise.

In terms of up front cash needed to buy a home, first time buyers made a 3% down payment, on average. 4 in 10 put nothing down. 25% of those that did make a down payment, borrow it from Mom and Dad.

What is the implication for home sellers? If your property is the price range of the average first time buyer, do what you can to lower the initial cash outlay for purchase. Talk to a few mortgage companies and get a list of financing options and their costs.

Tomorrow, we will take a look at specific tools that make buying your home an easy choice for the first timer. If anyone has a specific question on this topic, please write or email tommi@infotube.net and we will try to help.

Housing Insiders are Selling

After several years of large profits and gains in their stock price, insiders are selling stock they own in home building companies.

Who are insiders and what does this information tell me? Insiders are the people who work for the company, in this case, the home builder and have inside information about the company.

Insider information is important because insiders are thought to have more knowledge about the company business and its prospects in the future. So, if insiders are selling, it is likely that they think the price of the stock will not be rising above current levels for some time.

Insiders recently sold large positions in Centex Homes, KB Homes, Toll Brothers, MDC and Beazer Homes. Evidently, people inside these companies do not see housing starts and sales maintaining the levels they have been at. Reading between the ticker tape, it looks like these giants of housing, fear a long, cold winter.

Unkept Lawn Next Door. What to do?

A homeseller in Ohio writes, "We are trying everything to sell our house, because I am being transferred to another city. We are having a lot of problems, when people see the neighbor's yard. It is a real mess, as you can see in the pictures, and we don't know what to do. Any suggestions?"

Dear transferred in Ohio:
Have you tried talking to your neighbor about mowing and picking up a bit? If not, start there. You can offer to help or do the work for them, especially if circumstances in their lives are causing the problem. Whatever you do, ask for your neighbors blessing first, to avoid bad relations or legal problems. You can trim any limb, bush or tree that encrouches over your property line, without asking permission.

If your neighbor is not cooperative... check the deed and zoning restrictions for your neighborhood. Many neighborhoods have specific criteria for home and lawn maintanence. You should have received a copy of your deed restrictions when you closed on your home. If you have misplaced them or did not receive them, a copy will be on file at your local courthouse.

If you do not live in an area governed by deed restrictions, the next stop will the city or county government for your location. Most towns have rules about lawn upkeep, trash removal, hazardous living conditions and abandoned vehicles. The authorities can demand that your neighbors address code violations. Typically, your neighbor will given a short time frame to correct the situation or the city will do the work and charge them for it.

I hope this helps and best of luck on the sale of your home.