Rector And Associates

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®

This week, President Barack Obama signed into law the Helping Families Save Their Homes Act of 2009 to help homeowners and lenders avoid foreclosure. Previously included in this bill was a measure to allow bankruptcy judges to modify mortgage loans for principal residences, but the U.S. Senate did not pass this “cram-down” legislation.

The Helping Families Save Their Homes Act of 2009 contains various new laws to address the national foreclosure crisis. Major provisions that may affect California REALTORS® and your clients include the following:

HOPE FOR HOMEOWNERS (H4H) REVAMPED: The new law loosens the H4H program requirements to help homeowners refinance out of their troubled mortgages and into more affordable, fixed-rate FHA-insured loans. Originally launched in October 2008, the H4H program intended to help 400,000 distressed homeowners, but in the program’s first seven months, it only helped one family stay in its home. The maximum loan-to-value ratio for an FHA refinance is 96.5% of the appraised value. If refinance proceeds are insufficient to pay off existing liens, the existing lienholders must voluntarily agree to a short payoff, but a new inducement is an opportunity for them to share in the homeowner’s equity. Other changes to the H4H program include monetary incentives for both the participating servicers of the existing loans and originators of the FHA refinance. Millionaire borrowers (with net worth over $1 million) are now excluded from the program. HUD will establish the requirements and standards to implement the H4H program as revised.

LONGER STAY FOR TENANTS OF FORECLOSED HOMES: Effective immediately, an REO lender or buyer who acquires title through a foreclosure sale must give at least a 90-day notice to terminate a bona fide tenant as defined. A 90-day notice to terminate is sufficient for a month-to-month tenant or if a new owner will occupy the property as a primary residence at the end of the 90 days. Otherwise, a tenant with a one year or other fixed-term lease with a remaining lease term exceeding 90 days can stay in the premises until the remaining lease term ends. This new 90-day notice requirement applies to foreclosures of a federally-related mortgage loan or residential real property, except for properties under rent control, rent-subsidized programs (such as Section 8), or other state laws that provide additional protections for tenants. This law expires on December 31, 2012.

NOTIFICATION OF TRANSFER OF MORTGAGE LOANS: The Truth in Lending Act now requires a lender to whom a mortgage loan is sold or otherwise transferred to notify the borrower in writing of such transfer within 30 days. The notice must include the new lender’s identity, address, telephone number, authorized representative’s contact information, and other relevant information. This measure should help alleviate the problem borrowers often face in determining who owns their mortgage loans.
Other provisions of the Helping Families Save Their Homes Act include a 4-year extension of the $250,000 FDIC deposit insurance to December 31, 2013, protection for loan servicers who establish qualified loss mitigation plans from liability for an alleged breach of duty to maximize mortgage values for their investors, $130 million for foreclosure prevention counseling and education, and $2.2 billion to strengthen homeless programs.

President Obama has also signed into law the Fraud Enforcement and Recovery Act (FERA) which authorizes the Department of Justice to prosecute mortgage fraud crimes against private mortgage brokers and companies that previously were not regulated by the federal government. FERA also earmarks almost $500 million for federal enforcement agencies to investigate and prosecute mortgage fraud and other fraud crimes.

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Realegal® is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide.

Edited by: Stella Ling, stellal@car.org

Executive offices:
525 South Virgil Ave., Los Angeles CA 90020
phone (213) 739-8200; fax (213) 480-7724

Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814
phone (916) 492-5200; fax (916) 444-2033

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http://www.car.org/aboutus/privacypolicy

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Written inquiries regarding Realegal® should be directed to Stella Ling, stellal@car.org.

Copyright © 2009 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)

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Feb. 19, 2009

Following several months of debate and delays, our state representatives in Sacramento delivered a 2009-2010 budget to Governor Schwarzenegger today. The governor is expected to sign the budget as presented. Although details are sketchy, the budget appears to raise existing sales tax levels by 1 percent, and places a 0.25-percent income tax increase across the board. Under provisions included in the new budget, the vehicle license fee will increase from 0.65 percent to 1.15 percent of a vehicle’s value.

The budget also includes: a tax credit (equal to the lesser of 5 percent of the purchase price, or $10,000) for the purchase of a single-family residence that has never been occupied, as a principal residence, between March 1, 2009, and March 1, 2010; and a 90-day additional delay in foreclosure sales, intended to force lenders to implement a proactive workout program that rewrites loans in default.

The state budget package also includes a limit on future spending as a trade-off for new taxes; this would have to be approved by voters in a statewide ballot at a special election on May 19. This approach also contemplates $5.5 billion in short-term loans and voter approval of a plan to borrow $5 billion this year against future lottery revenues at the same statewide ballot election.

Fearful that special interests may try to derail the effort at the ballot box, a provision has been included in the budget to extend the major new taxes by one to three years if the spending cap is approved by the voters. Voters also would have to approve some shifting of existing special funds for mental health services and child development programs to help balance the budget.

Should California receive more than $9.2 billion in federal aid, the income tax increase would fall from 0.25 percent to 0.125 percent, and $950 million in planned spending cuts to several programs, including in-home care and Medi-Cal, would be eliminated.

At the demand of Senator Maldonado (R-Santa Maria) — who cast the final vote needed to pass the budget — three additional propositions will be placed before the voters. If approved, these would institute an open primary system, prevent legislators from getting paid if the budget is not passed on time, and will stop salary increases to legislators if the state is operating in the red.

Although both the process and the result have left a lot to be desired, having a balanced budget in place is critical for our state in these challenging times. Our Sacramento staff and our member volunteers will continue to monitor, advocate, and report on the actions of our elected representatives in Sacramento. We’ll keep you apprised of additional information as it becomes available.

Sincerely,

James Liptak
2009 President
CALIFORNIA ASSOCIATION OF REALTORS®

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WASHINGTON, December 17, 2008

The National Association of Realtors® applauds the actions of the Federal Reserve Board in lowering interest rates for home buyers and homeowners who need to refinance. This will significantly impact housing sales, home valuations, and the nation’s overall economy.

The Federal Reserve is purchasing large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets.

“NAR has been aggressively calling for mortgage rate reductions, and the Fed’s action to slash interest rates, coupled with the actions by the Federal Housing Finance Agency and the Department of the Treasury, has driven down interest rates to make the dream of homeownership once again attainable for thousands of Americans,” said NAR President Charles McMillan.

Mortgage rates, which had averaged 6.3 percent in the third quarter, have recently fallen into the 4 percent range in some parts of the country. “That is the lowest rate in nearly 50 years and will bring buyers back to the market,” McMillan said. “We are pleased that the government heard our message and responded to our call for action.”

NAR has estimated that a one percentage point decrease in mortgage rates will increase home sales by more than 500,000 homes. “To boost the economy, it is critical to stem the rising tide of foreclosures and boost home buyer confidence in the housing market.” McMillan said. “Lower interest rates coupled with increased foreclosure mitigation are the key ingredients to stabilizing the housing market and preserving communities and homeownership.”

NAR continues to call on the federal government to maintain the higher loan limits passed in the economic stimulus bill earlier this year and to expand the $7,500 tax credit for first-time home buyers to all buyers and to eliminate the credit repayment requirement. “Together, all of these actions will stimulate and stabilize the housing market and begin an overall economic recovery,” McMillan said.

For more information, contact:
Mary Trupo At

www.realtor.org/press_room/news_releases/2008/fed_action_creates_best_interest_rates?lid=ronav0022

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C.A.R. July 2008 Sales and Price Report

find the article at: “http://www.car.org/newsstand/newsreleases/july08salesandpricereport/”

For release:Monday, Aug. 25, 2008

C.A.R. reports sales increased 43.4 percent; median home price fell 40.3 percent in July

LOS ANGELES (Aug. 25) ? Home sales increased 43.4 percent in July in California compared with the same period a year ago, while the median price of an existing home fell 40.3 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

“Sales improved significantly in July 2008 and remained above the 400,000 level for the third consecutive month,” said C.A.R. President William E. Brown. “Deeply-discounted, distressed sales continue to drive volume in many regions of the state. July also was the first full month during which the effects of higher $729,000 conforming loan limits likely had an impact on closed sales.

“Year-to-year increases in the number of transactions ranged from a 6.7 percent increase in the San Francisco Bay Area to a 176.5 percent increase in the Riverside/San Bernardino region,” he said. “In general, greater percentage gains occurred in lower-priced areas that had been most adversely affected by the market downturn since late 2005 and that are concurrently experiencing the biggest declines in prices.”

Closed escrow sales of existing, single-family detached homes in California totaled 489,080 in July at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity increased 43.4 percent from the revised 341,130 sales pace recorded in July 2007. Sales in July 2008 increased 15.3 percent compared with the previous month.

The statewide sales figure represents what the total number of homes sold during 2008 would be if sales maintained the July pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The median price of an existing, single-family detached home in California during July 2008 was $350,760, a 40.3 percent decrease from the revised $587,560 median for July 2007, C.A.R. reported. The July 2008 median price fell 4.5 percent compared with June?s revised $367,130 median price.

“Once again, the 40.3 percent year-to-year decrease in the median price of a home was an all-time record, surpassing the previous record set in June with a 37.9 percent decrease,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.

“Since the statewide median remained in the $585,000-$595,000 range through August of last year, the market will continue to experience significant year-to-year adjustments through August even if the median price holds steady over the next few months,” she said. “The statewide median was last in the $350,000 range in early 2003.”

Highlights of C.A.R.?s resale housing figures for July 2008:

. C.A.R.?s Unsold Inventory Index for existing, single-family detached homes in July 2008 was 6.7 months, compared with 10 months (revised) for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

. Thirty-year fixed-mortgage interest rates averaged 6.43 percent during July 2008, compared with 6.70 percent in July 2007, according to Freddie Mac. Adjustable-mortgage interest rates averaged 5.24 percent in July 2008, compared with 5.71 percent in July 2007.

. The median number of days it took to sell a single-family home was 47.5 days in July 2008, compared with 50.7 days (revised) for the same period a year ago.

Regional MLS sales and price information are contained in the tables that accompany this press release. Regional sales data are not adjusted to account for seasonal factors that can influence home sales. The MLS median price and sales data for detached homes are generated from a survey of more than 90 associations of REALTORS® throughout the state. MLS median price and sales data for condominiums are based on a survey of more than 60 associations. The median price for both detached homes and condominiums represents closed escrow sales.

In a separate report covering more localized statistics generated by C.A.R. and DataQuick Information Systems, 2 percent, or 8 out of 391 cities and communities, showed an increase in their respective median home prices from a year ago. DataQuick statistics are based on county records data rather than MLS information. DataQuick Information Systems is a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. (The top 10 lists are generated for incorporated cities with a minimum of 30 recorded sales in the month.)

Note: Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices for July may be exaggerated due to compositional changes in housing demand. The DataQuick tables listing median home prices in California cities and counties are accessible through C.A.R. Online at http://car.org/economics/historicalprices/2008medianprices/July2008medianprices/.

. Statewide, the 10 cities with the highest median home prices in California during July 2008 were: Manhattan Beach, $1,774,727; Los Gatos, $1,425,000; Mill Valley, $1,375,000; Burlingame, $1,294,000; Calabasas,$1,188,000; Newport Beach, $1,145,000; Cupertino, $1,041,250; Rancho Palos Verdes, $1,005,000; San Carlos, $975,000; Danville, $930,000.

. Statewide, the cities with the greatest median home price increases in July 2008 compared with the same period a year ago were: Los Gatos, 36.6 percent; Mill Valley, 28.6 percent; Manhattan Beach, 9 percent; Berkeley, 8.2 percent; Mountain View, 6.9 percent; Cupertino, 1.1 percent.

Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with nearly 175,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

July 2008 Regional Sales and Price Activity*
Regional and Condo Sales Data Not Seasonally Adjusted

July-08

Median Price

Percent Change in Price from Prior Month

Percent Change in Price from Prior Year

Percent Change in Sales from Prior Month

Percent Change in Sales from Prior Year

Jul-08

Jun-08

Jul-07

Jun-08

Jul-07

Statewide

Calif. (sf)

$350,760

-4.5%

-40.3%

15.3%

43.4%

Calif. (condo)

$330,660

-3.9%

-24.9%

26.9%

15.9%

C.A.R. Region

Central Valley

NA

NA

NA

NA

NA

High Desert

$177,330

-1.8%

-40.1%

20.9%

126.0%

Los Angeles

$393,690

-0.8%

-34.0%

13.8%

33.6%

Monterey Region

$389,440

-13.5%

-47.7%

1.7%

44.0%

Monterey County**

$324,000

-10.0%

-52.7%

1.5%

83.9%

Santa Cruz County

$611,000

0.2%

-21.4%

2.0%

5.4%

Northern California

$329,380

-3.5%

-14.7%

5.5%

8.6%

Northern Wine Country

$403,300

-3.0%

-33.9%

4.1%

27.3%

Orange County

$537,570

-6.0%

-26.4%

14.9%

48.5%

Palm Springs/Lower Desert

$239,360

-13.9%

-36.7%

11.1%

41.6%

Riverside/San Bernardino

$238,190

-9.1%

-38.7%

27.5%

176.5%

Sacramento

$219,150

-0.7%

-36.7%

5.0%

128.5%

San Diego

$382,800

NA

-36.4%

52.6%

43.1%

San Francisco Bay

$663,190

-2.0%

-21.2%

3.1%

6.7%

San Luis Obispo

$464,280

-4.8%

-20.6%

4.6%

7.6%

Santa Barbara County**

$472,730

29.8%

-47.1%

-13.3%

8.7%

Santa Barbara South Coast

$940,000

-8.3%

-20.0%

-12.5%

-30.8%

North Santa Barbara County

$293,180

0.9%

-24.1%

-16.3%

85.1%

Santa Clara

$706,500

-4.5%

-17.1%

-2.1%

2.8%

Ventura

$475,000

-1.1%

-30.4%

25.6%

20.6%

na - not available

* Based on closed escrow sales of single-family, detached homes only (no condos). Reported month-to-month changes in sales activity in July overstate actual changes because of the small size of individual regional samples. Movements in sales prices should not be interpreted as measuring changes in the cost of a standard home. Prices are influenced by changes in cost and changes in the characteristics and size of homes actually sold.

** Santa Barbara County and Monterey County median prices decreased significantly from July 07 due mainly to high proportion of total sales from lower-priced properties in the regions.

sf = single-family, detached home

Source: CALIFORNIA ASSOCIATION OF REALTORS®

Median Prices By Region ? Current Month vs. Year Ago

Jul-08

Jun-08

Jul-07

Statewide

Calif. (sf)

$350,760

$367,130

r

$587,560

r

Calif. (condo)

$330,660

$343,940

r

$440,220

r

C.A.R. Region

Central Valley

NA

NA

$326,000

High Desert

$177,330

$180,570

$296,220

Los Angeles

$393,690

$396,680

$596,140

r

Monterey Region

$389,440

$450,000

$744,260

r

Monterey County*

$324,000

$359,900

$685,000

Santa Cruz County

$611,000

$610,000

$777,500

r

Northern California

$329,380

$341,400

$386,030

Northern Wine Country

$403,300

$415,820

$609,780

Orange County

$537,570

$571,830

r

$729,900

r

Palm Springs/Lower Desert

$239,360

$277,970

$378,310

Riverside/San Bernardino

$238,190

$261,980

$388,750

r

Sacramento

$219,150

$220,630

$346,220

San Diego

$382,800

NA

$601,730

San Francisco Bay

$663,190

$676,740

$841,500

r

San Luis Obispo

$464,280

$487,500

$584,510

Santa Barbara County*

$472,730

$364,290

$893,940

r

Santa Barbara South Coast

$940,000

$1,025,000

r

$1,175,000

North Santa Barbara County

$293,180

$290,620

$386,110

Santa Clara

$706,500

$740,000

$852,500

Ventura

$475,000

$480,430

$682,930

* Santa Barbara County and Monterey County median prices decreased significantly from July 07 due mainly to high proportion of total sales from lower-priced properties in the regions.

na - not available

r - revised

Source: CALIFORNIA ASSOCIATION OF REALTORS®

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Copyright © 2008 CALIFORNIA ASSOCIATION OF REALTORS®

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A 47-year-old Simi Valley bicyclist was hospitalized this week with a collapsed left lung after being hit by a pickup truck at Erringer Road and Royal Avenue.

Yvonne Wilber said her husband, Tom, was riding home on Erringer about 5:30 p.m. Wednesday when he was struck by a truck turning right on to Royal. The pickup left the scene without stopping, she said. Wilber said her husband was able to get a partial description of the truck, which he described as a dark-colored Dodge.

Simi Valley Sgt. John Adamczyk said police are investigating the incident as a hit-and-run collision based on what Yvonne Wilber told them.

She said her husband also broke a rib in the crash. He was taken to Simi Valley Hospital.

Saturday, December 8, 2007

From the Ventura Star

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Price Drops Are Sobering, But The Big Picture Is Still Rosy
Washington Post Writers Group
By Kenneth R. Harney
Saturday, November 17, 2007

With the daily bad news about the state of the housing market, it’s easy to lose sight of some larger economic realities: Despite declining prices in many markets, homeowners still control near-record equity holdings, just under $11 trillion.

In its latest quarterly “flow of funds” statistical report, the Federal Reserve calculated that U.S. homeowners’ equity accounts totaled $10.9 trillion in mid-2007. That was the difference between total home mortgage debt ($10.1 trillion) and the total market value of home real estate (about $21 trillion).

The second-quarter equity number was down about $6 billion from the first quarter of the year but was $48 billion more than it was at the end of 2006. In other words, there’s no question that equity holdings have declined recently and may well be lower when the Fed issues its next quarterly report, in mid-December. But in an $11 trillion marketplace, a $6 billion giveback in a cyclical correction is not a cause for panic.

A similar, localized reality affects dozens of metropolitan markets that saw double-digit appreciation rates during the boom years. Prices are off — 4.4 percent on average among 20 major markets covered by the latest Standard & Poor’s/Case-Shiller home price index. But where prices more than doubled, as they did in 33 metropolitan markets between 2001 and 2006, according to federal estimates, even 10 percent and larger average price drops in once-booming areas of California and Florida have left owners with most of their paper gains intact.

This month in the Fort Myers area of southwest Florida, where average home prices rose 130 percent from 2001 to 2006, a taxi driver told me that he bought a house for $234,000 four years ago and turned down an offer for $439,000 in early 2006. Now he figures he can’t get more than $379,000 for it — a $60,000 drop in value in a year and a half. But he figures he’s still ahead by $145,000 and has more than $150,000 in equity.

His estimates of gain may be optimistic — he didn’t factor in his costs of ownership, such as mortgage payments, taxes, insurance, improvements and the like. But his basic conclusion is probably correct. Even with the price declines that have racked the area, he’s well ahead.

Personal stories such as the taxi driver’s are common in many parts of the country, with two large exceptions: People who bought close to the peak of the boom — and thus haven’t been in the house long enough to reap advantages from double-digit appreciation — may now be in negative-equity territory. Add to that homeowners in unemployment-ravaged communities, especially in the industrial Midwest, where foreclosures are pulling entire neighborhoods’ house values down and destroying equity built up over years.

Many of these stories fill the news pages and cast a pall on consumers’ perspectives. But sad as they are, they are not the predominant reality in real estate across the country.

For the vast majority of owners, even in the formerly highest-flying areas, the giveback has been a modest fraction of the price gains of the previous five years.

Citing Case-Shiller index data, Brian Catalde, president of the National Association of Home Builders, said home prices in Los Angeles fell 5.7 percent in the past 12 months but are up a net 88.9 percent since 2002. In Chicago, prices were down 1.3 percent from August 2006 to August 2007. But they were up a net 34.2 percent in the past five years.

Phoenix prices were down by 8 percent in 12 months, according to the Case-Shiller index, but were up by a net 80.2 percent since 2002. And of course there are dozens of metropolitan home markets that never were touched by the boom’s excesses and have not seen price drops at all.

Examples include Dallas, where homes gained by an average of just 17.8 percent in value during the boom years of 2001 to 2006, according to the Office of Federal Housing Enterprise Oversight’s home price index. But from mid-2006 through mid-2007, Dallas house prices gained 5 percent. Add entire swaths of the country: the Pacific Northwest, parts of North Carolina, Tennessee, Utah and the Rocky Mountain states, where house prices continue to gain moderately, and you begin to see the bigger national picture.

The housing-price correction cycle continues in many — not all — parts of the country. It is sobering or painful for just about everybody except buyers. But in the absence of a recession or major capital-market crisis, the fact is that most homeowners’ equity stakes are intact, or even growing.

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Fannie, Freddie, FHA would provide funding

Thursday, October 11, 2007

The House of Representatives approved legislation Wednesday that would siphon off up to $1 billion a year from Fannie Mae, Freddie Mac and the Federal Housing Administration to build affordable rental housing and provide down-payment assistance for first-time home buyers.

Supporters of HR 2895, the National Affordable Housing Trust Fund Act of 2007, say it would be the largest expansion in federal housing programs in decades — providing $800 million to $1 billion a year to build, rehabilitate or preserve 1.5 million units of rental housing over the next decade.

“It has been 17 years since the federal government last enacted a major affordable-housing production program,” said Rep. Maxine Waters, D-Calif., in a statement. Waters said HR 2895 would “tackle the full range of housing crises, providing relief to overburdened renters and homeowners while targeting funds where the need is greatest.”

House lawmakers approved the bill in a 264 to 148 vote, but it relies on other legislation for funding and is opposed by the Bush administration.

The Bush administration’s opposition to the bill stems from its reliance on projected surpluses from FHA loan-guarantee programs, and a proposed affordable-housing fund that would be fed by revenue from government-sponsored mortgage repurchasers Fannie Mae and Freddie Mac.

HR 1427, a bill approved by the House in May to strengthen regulatory oversight of Fannie and Freddie, would require the government-sponsored entities (GSEs) to contribute an amount equal to 1.2 basis points of their outstanding mortgages to the affordable-housing fund.

Another bill, HR 1852, is intended to modernize FHA loan programs by allowing risk-based premiums, zero-down loans and increased loan limits in high-cost areas.

FHA has estimated that the modernization bill, approved by the House on Sept. 18, could generate an extra $342 million in revenue in 2008 — as opposed to a $143 million taxpayer subsidy without changes to its loan-guarantee programs. The National Affordable Housing Trust Fund would use some of that revenue for affordable housing.

HUD Assistant Secretary Brian Montgomery told members of the House Financial Services Committee this summer that diverting revenue from FHA programs would be like “robbing Peter to pay Paul,” and could pressure FHA administrators to hit revenue targets.

The Bush administration also objects to tapping Fannie and Freddie for an affordable-housing fund, saying that could create pressure for unrestrained growth of the GSEs’ loan portfolios. Democrats have called on the administration to raise the $1.4 trillion cap on the GSEs’ loan portfolios.

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Sponsored by: NATIONAL ASSOCIATION OF REALTORS®

Now that you have decided to sell your home, what’s next? Certainly, making home improvements to help you sell is at the top of the list. When you’ve done that, you’ll want to stage your home for an open house. To give you some great open house tips, we have partnered with the NATIONAL ASSOCIATION OF REALTORS® to prepare this Open House Checklist.

1. Take a Tour of Your Home. Pretend that you’ve never seen the house before, and give it a critical look. Examine the exterior, walk through the interior, and smell for odors. You may ask a trusted friend to join you on your walk-through, helping you see things that you’ve learned to ignore. As you tour your home, make note of home improvements to help you sell and create a list of open house ideas.

2. De-Clutter in Every Room. To make rooms feel more spacious, remove excess and oversized furniture. You may also consider rearranging your remaining furniture to visually expand certain rooms. If your shelves are filled, remove some of the books, movies, and knickknacks to visually “open up” these areas. For the money, getting rid of clutter is one of the best home improvements to help you sell. Why? Because it’s free! Throw out stacks of newspapers or magazines. Pack away most of your small decorative items and out-of-season clothing in storage containers. Clean out and organize your closets, garage, cabinets, and pantry to make your home feel more accommodating.

3. De-Personalize Your Home. Unique things that make your place more “you” may actually distract potential buyers from envisioning their own personal touches. Remove or hide away items like family photographs, personal mementos and knicknacks, refrigerator magnets, and personal care items (like toothbrushes and medications) so potential buyers can imagine your space as their new home.

4. Let in (or Plug in) More Light. The lighter and brighter your home is when you hold your open house, the larger and more inviting it will seem to potential buyers. Here are some open house ideas for introducing more light: Wash your windows and screens to let more light into your home’s interior. Put higher wattage incandescent bulbs in all your light sockets to make rooms seem brighter, especially in basements and other dark rooms. Be sure that all lights are turned on and all curtains are pulled open when you hold your open house.

5. Get Rid of Odors. To get rid of any offensive odors, you should steam clean your carpeting and drapes. This will go a long way towards eliminating cooking odors, smoke residue, and pet smells. After you’ve steam cleaned, keep your home smelling great by changing your bed linens and towels regularly, asking smokers to smoke outside, keeping pets outside as much as possible, sifting the kitty litter box daily, and keeping your windows open as much as possible. On the day of your open house, a scented candle is a nice touch.

A note about pets: On the day of your open house, ideally, you’ll be able to relocate your pets. Not only will pets under foot quickly put a damper on an otherwise positive showing, but your pets will be safer—and probably less stressed—if they aren’t in the home during the open house. If you can’t take your pets to a friend’s house or kennel, at least put them outside for the day.

6. Keep Everything Extra Clean. Take the time to clean every square inch of your house before holding your open house. “Clean, clean, clean” is one of the best showing tips for selling a home. Don’t forget to look in places you might otherwise ignore: Fingerprints on light switch plates, dust on baseboards, film on shower doors, mildew on bathtub caulk, smudges or smears on kitchen cabinets, dryer lint residue on the washer and dryer. A house that is extra clean makes a powerful first impression and convinces buyers that the owners have taken good care of the home.

7. Expose Desirable Features. If you have beautiful hardwood floors, remove area rugs and show them off. If you have custom or oversized windows, replace heavy drapes with lighter ones that highlight this feature. If you have a pleasing view out a certain window, pull back the drapes to showcase the landscape. If you have a large walk-in attic, put a sign on the door letting potential buyers know to peek inside. If your deck is perfect for entertaining, help buyers envision family and friends enjoying the back yard together by “staging” the deck with potted plants, furniture, and a patio umbrella.

8. Give Extra Attention to Kitchen and Baths. Kitchens and baths are two of the most important rooms in the minds of potential buyers. You want to do all you can to make these rooms appealing for your open house. Here are some open house tips: Clear the countertops, leaving only a decorative item or plant. Make sure cabinets, appliances, and fixtures are sparkling clean. Expect that potential buyers will open cupboards, cabinets, and drawers, so clean and organize these areas. Mop and wax/polish the floors for a fresh, clean appearance.

9. Neutralize the Colors in Your Home. You may like bold, vivid colors but they could be offputting to potential buyers. As you change the colors in your home, remember that this is a home improvement intended to help you sell—not to please your own aesthetic sensibilities. Go with neutral colors—like linen, cream, or beige—in common rooms and bedrooms. You can safely add a splash of color in bathrooms with pale blues and cooling greens for a calming, spa-like effect.

10. Clean and Beautify the Exterior. To boost curb appeal, one open house tip is to give your home’s exterior some extra attention. Clean your gutters, power wash your home’s siding/windows, and make any necessary home improvements to help you sell. Give your home’s entrance a little facelift by sweeping the walkway, putting out a new doormat, and placing some pots of flowering annuals by the door. As for the yard, make sure you remove any dead brush and overgrown plants. Weed the flower beds, trim the shrubs, freshen up the mulch, mow the lawn, and edge the sidewalks. A touch of paint on the mailbox and porch handrails can also add a fresh touch.

By following these tips for selling your home and hosting a successful open house, your hard work is sure to be noticed. Remember, it pays to do the work for your buyers, helping them envision your home as their own. You may even increase the offers on your home by thousands of dollars and sell your home more quickly!

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1. Be picky, but don’t be unrealistic. There is no perfect home.

2. Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you.

3. Get your finances in order. Review your credit report and be sure you have enough money to cover your downpayment and your closing costs.

4. Don’t wait to get a loan. Talk to a lender and get prequalified for a mortgage before you start looking.

5. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion.

6. Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?

7. Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you’ll buy as well as type of mortgage terms that suit you best.

8. Don’t let yourself be house poor. If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration or to save money for other financial goals.

9. Don’t be naïve. Insist on a home inspection and if possible get a warranty from the seller to cover defects within one year.

10. Get help. Consider hiring a REALTOR® as a buyer’s representative. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. And often, buyer’s reps are paid out of the seller’s commission payment.

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Buying a home will likely be the biggest purchase of your life but it doesn’t have to be difficult. By asking some basic questions and working with a REALTOR® you will find home buying a positive, memorable experience.

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