Reflecting disharmony. Remove or cover large mirrors in the bedroom if you don’t sleep well.

Room with a view. Place your bed to give you the widest view of the room. Your bed shouldn’t be in direct line with the door. Paint the bedroom walls in a color scheme that is both pleasant and inviting.

Calming sounds. Hang wind chimes outside your front door to create a soothing environment for occupants and guests.

Writing on the wall. Try to avoid having completely bare walls. Group together non-personal pictures or hang up interesting art pieces in a diagonal or staggered pattern.

Go with the flow. Place a blue or black doormat at your front door to encourage good things to flow in like water.

The color of love. Include the romance colors–white, pink and red–in your room. But don’t overdose with a red wall because too much red can trigger anger.

Plants for energy. Healthy plants generate positive energy. Avoid dried flowers because they have no energy left.

Look overhead. Move beds, couches and desks from under any overhead beams to keep energy flowing.

Less is more. When arranging furniture,less is better. Too much clutter can restrict the potential of a great room.

Create positive impressions. Keep counters clean, closets organized and clutter concealed in order to project an organized and stress-free environment for you and your guests.

Reprinted with permission from Buffini & Company.

Here are a few items for Canadians to consider while shopping for homes or condos in Clearwater / St. Pete:

• Who will take care of our property while we are not in town? It is important to have a local contact for someone you trust in the event the property needs care or maintenance. Many buyers prefer condos because most aspects of the exterior of the condo are maintained by the condo association through their monthly fees.

• What is the best location in Tampa Bay? The best location is a personal preference and must be experienced in person. I don’t recommend buying a home or condo in the Clearwater / St. Petersburg area sight unseen. The quality of life varies from one location to the next. Vacation here or stay a while and get to know the area layout before deciding on a final location. We can help you narrow the choices and find the best deals.

• What are the property taxes? Property taxes are reassessed after the sale of the property. The property taxes are based upon the local millage rate and multiplied by the taxable value of the property. You will not inherit the previous owner’s tax amount. There are 54 taxing entities in Pinellas County, so it is important to consider your tax consequences when purchasing a property in Florida. Starting in 2009, there is a 10% tax increase cap for vacation and rental homes. We can help you estimate your tax amount.

• What about homeowner’s insurance? Homeowner’s insurance is available and can be obtained for vacation and rental homes. We have several vendors available to quote rates when a property has been selected.

• How long can we stay in the US? As a non-citizen, a Canadian can stay in the US for a maximum of 6 months regardless of whether or not they have a residence in the United States. Check with the authorities to make sure this is accurate and up to date.

• Is now a good time to buy? Absolutely, there are more properties on the market than we have seen in years. The heavy competition is pushing real estate prices to new lows and bargains are everywhere.

Time it right

Fall and spring are the best times for homes to move and you want to consider the season of the year when buying and selling. And if the closing dates aren’t going to coincide, a gap – rather than two mortgages – is the better. It’s easier and usually cheaper to find temporary housing than juggle two mortgages.

Selling First

• Selling your home before buying a new one minimizes financial hazards. Even if you have to find temporary housing, it’s generally cheaper than two mortgages.
• Get an appraisal first thing off the bat. That way you’ll have a good idea how the sale of your home will effect your purchasing power on the new one.  This will help keep you from over extending your mortgage abilities.
• Get pre-approved on a loan for the new home.
• Until most of your contingencies have been met, wait to put an offer on a new house. You don’t want to be left holding the bag, or in this case, the house.
• If you’re ready to accept an offer on your home, but haven’t found the right new home, negotiate a long escrow or a sale/lease back. This will give you more time to look for the new home. Otherwise, look for temporary housing.

Buying First

It happens. You’re only thinking of buying, and suddenly the right home shows up. Now you have to sell your old home quickly. Here are some tips on making things work in your favor:

• Negotiating a long escrow on this side of the sale works, too. You can also make the purchase contingent on your house selling. This will work better in a slow market, but it’s worth a try in any market. You never know what may also work best for the seller of your new home.
• Try and schedule the closing date of your current home prior to the closing on your new home. Temporary housing is generally a better situation than two mortgages.
• Take a close look at what price you’re going to ask for your home. Make sure it’s realistic in the current market.
• When you get an acceptable offer, check the buyer’s financial history. You don’t want any surprises that are going to delay things. If you’ve closed on the new home, but haven’t sold the old one, consider renting it out, or taking it off the market until the next season (or until the market improves).

Same Market or Across Country

Generally, if you’re buying and selling in the same market, you can negotiate closing dates to work for you. But when you’re dealing with a cross country move, it’s a lot harder. A real estate professional really comes in handy at this point. Legal documents can be faxed or sent via overnight courier and your focus won’t be stretched to the limit. You may end up renting one home or the other, or have to consider a bridge loan. But with someone local in the market on your side, it will hopefully be less stressful.

Show Me the Money

Make sure you have a tight hold on, and a clear understanding of, your financial situation. Cash reserves are always helpful, but never more so than during the purchase of a home. Two to three months is the recommended reserve, but if you don’t have it, this is where the bridge loan comes in handy. Some lenders are more inclined to make a loan if it’s for the purchase of a home. If you’re a smart shopper/seller, you’ll accept an offer from someone who’s flexible about move-in dates. It can save you money in the long run. Too many moves with storage costs can quickly eat up any profit you may have made in the transaction.

When considering lenders, factor in the level of service they will provide throughout the loan process. We’ll be glad to provide a list of lenders who have successfully helped clients in the past. We also suggest that you ask friends and family in the area for their recommendations.

The same care and consideration you give to finding the right house should be applied to your search for the right mortgage lender. For most home buyers a major determining factor in selecting a lender is the cost of the mortgage loan. But how do you determine the cost of a mortgage loan?

While most buyers concentrate on interest rates, it is best to look at all the costs associated with a mortgage loan. Mortgage loans include the quoted interest rate, points and closing costs.

A number of fees are associated with the mortgage loan, including:

• Appraisal – A carefully documented opinion of value by a licensed, professional appraiser.
• Credit Report – A detailed report of your credit, employment and residence history prepared by a credit bureau.
• Principal – The amount owed on a mortgage which does not include interest or other fees.
• Document Fees, Loan Fees and Processing Fees – Miscellaneous fees charged by the lender.
• Discount Points – Points paid in addition to the loan origination fee to get a lower interest rate. (1 point = 1 percent of loan amount)
• Origination Points – the total number of points paid by the borrower at closing. (1 point = 1 percent of loan amount)
• Interest Rate – A percentage of a loan or mortgage value that is paid to the lender as compensation for loaning funds.

Using the Annual Percentage Rate (APR) to Compare Mortgage Loans

The APR was designed to help borrowers understand the relative costs of a mortgage loan. The APR takes into account the various fees associated with the loan, which is why it is often higher than the interest rate. Understand that not all lenders calculate a loan’s APR in the same way. That is why this should be only one of the factors used in selecting the best mortgage for you.

Another factor to consider when selecting a lender is whether the lender will lock-in the mortgage’s interest rate and points.

By and large, the economy is the driving factor of real estate appreciation in the U.S. That includes interest rates as well as the current employment rate, business growth in the area, housing supply and demand and affordability.

Regional economic and social factors also affect real estate appreciation. Many home buyers choose to live in areas with the best and most convenient features for households to thrive, such as a close proximity to schools, jobs and commerce.

A good school district can also be an indicator of good home appreciation. It is believed that good schools help foster lifestyles associated with high levels of attainment at the individual, household and community level.

Demographics also play a role in real estate appreciation. For example, during the 1980s, much of the baby boomer generation (People born between 1946 – 1964) was buying real estate, causing homes to appreciate at a faster rate than inflation and made real estate a profitable investment. The group referred to as Generation Y – born roughly between 1980 and now – is the biggest generation since the baby boomers. Their contribution to real estate is expected to be far greater than their older siblings of Generation X (born between 1965 and 1979).

There are some aspects that significantly contribute to real estate appreciation, which you may want to ask your agent about when shopping for a home:

Recent sales. Ask your agent or retrieve public records on real estate sales in the neighborhood you wish to live in. How many home sales have there been in the past year? What are the asking prices? Do the final sales exceed the asking prices?

Appreciation history. Have home prices risen or declined over the past 5 to 10 years? Is the neighborhood considered desirable because of its location, amenities or affordability?

Local business economy. Is there a good mixture of business or does the area rely on one industry? Have any new industries moved into or out of the area? Is there a lot of new development nearby? Economic changes such as a large factory going out of business can dramatically affect demand for housing in a particular area.

It is important to note that while appreciation is nice to have, it should not be the reason you decide to buy a home in a particular area. Even if you buy a house in a rapidly appreciating area, there is no guarantee that its value will rise by the time you want to sell it. That’s why it’s best to pick a neighborhood – and a home – in an area that suits your own needs.

A home inspection will look at the systems that make up the building such as:

• Structural elements, foundation, framing etc
• Plumbing systems
• Roofing
• Electrical systems
• Cosmetic condition, paint, siding etc

If you are buying a home, you need to know exactly what you are getting. A home inspection, performed by a professional home inspector, will reveal any hidden problems with the home so that they may be addressed BEFORE the deal is closed. You should require an inspection at the time you make a formal offer. Make sure the contract has an inspection contingency.

Then, hire your own inspector and pay close attention to the inspection report. If you aren’t comfortable with what he finds, you should reconsider the deal.

Likewise, if you are selling a home, you want to know about such potential hidden problems before your house goes on the market. Almost all contracts include the condition that the contract is contingent upon completion of a satisfactory inspection. And most buyer’s are going to insist that the inspection be a professional home inspection, usually by an inspector they hire. If the buyer’s inspector finds a problem, it can cause the buyer to get cold feet and the deal can often fall through. At best, surprise problems uncovered by the buyer’s inspector will cause delays in closing, and usually you will have to pay for repairs at the last minute, or take a lower price on your home.

It’s better to pay for your own inspection before putting your home on the market. Find out about any hidden problems and correct them in advance. Otherwise, you can count on the buyer’s inspector finding them, at the worst possible time.

Contingencies are clauses in a contract that give either the buyer or seller a way to get out of the contract if certain conditions or time lines aren’t met.

A commonly used example is that of a buyer making an offer on a new home before selling his existing home. The buyer needs to sell his present home before being able to get financing on the new one. So he makes his offer contingent upon the sale of his existing home. There will always be a time period associated with such a contingency. If the buyer is able to get his present home sold within that time period, the deal can go forward. But if he fails to sell within the specified time period, the seller has the option of getting out of the deal. In most cases, sellers won’t accept this kind of contingency, because they will most likely feel that they can find another buyer capable of closing the deal without needing to sell another home first. But new home builders are often willing to accept an offer contingent upon the sale of an existing home.

Every contract is unique. The possibilities for contingencies are virtually endless.

Some of the more commonly used contingencies would include:

• Financing. Contingencies that depend on the buyer being able to obtain financing are very common.
• Home Inspections. Probably the most common type of contingency is the “contingent upon satisfactory completion of inspection”. There are any number of specific types of inspection for which a contingency might be included in a contract. Some of the more common would include inspection by a qualified home inspector for hidden defects, pest inspections, water and sewage system inspections, inspections dealing with the presence of radon or mold, etc.
• Appraisal. It’s not unusual for a buyer to have a contingency that allows for a formal appraised value at or above purchase price. Since lenders will nearly always want an appraisal performed too, sellers usually don’t have a problem with this.

Remember, just like everything else in real estate contracts, contingencies are negotiable. Always take care before signing that you are comfortable with all contingencies included in your contract. Likewise, take time to think about what contingencies you might like to have added.

As your real estate agent we will do the following to guide you through the home buying process.

• We will help you define your “wish list” of features you want in your home, your neighborhood and your school district.
• Commit our time and energy to finding you the right home.
• We will monitor all new listings and alert you to new houses as soon as they are put on the market.
• Provide detailed listing information not available to the general public.
• Negotiate the deal to save you money.
• Guide you through the avalanche of paperwork.
• We will walk you through the mind-boggling financial details associated with buying a home, including understanding the various mortgages and home buying programs available to you.
• We will eliminate the stress involved with buying a home by putting our years of real estate experience to work for you.
• Best of all, we work at no cost to you!

Finding the perfect home is our business. Contact us today!

It seems obvious, but it’s good to note that the first step to buying a house is making the decision to buy. Consider the reasons you want a new house and write them down. Determine how long you want to live in the new house – does buying still make good financial sense? Can you afford a house that will meet your list of requirements? A good rule of thumb is your mortgage payment should not exceed 1/3 of your net monthly income.

Step 2 – Seek Professional Guidance

The next step is to schedule a time to meet with you to hear the reasons you want to buy a house and your plans for the future. We’ll talk about neighborhoods, schools, economic factors liable to affect the market today and tomorrow, as well as how you would like your house and neighborhood to grow with you. We refer to this step as the buyer consultation.

At this time, we will also help you get pre-qualified for a mortgage loan. Pre-qualification is a written statement from a loan officer indicating his or her opinion that you will be approved for a mortgage loan up to a certain amount. The fact that you are pre-qualified will help us when we are negotiating the deal.

Step 3 – Begin the Hunt

After our initial meeting, we’ll search all our resources for houses on the market that fit your criteria. Then, we’ll schedule appointments to tour the houses at times convenient to you.

As we tour houses, we will ask you to tell us what you like and what you don’t like. You’ll probably amend your “wish list” as we tour houses, some things will become more important and others less important. With this new information, we’ll refine our search criteria to narrow in on the house of your dreams. Don’t be surprised if you find the home is 6-8 properties.

Step 4 – Know the Market

Our knowledge of the local Clearwater area real estate market is an essential factor in the house search. We’ll let you know when the market in a particular neighborhood is “hot” and requires immediate action or when the market is “cool” and allows for thoughtful consideration.

As we tour houses, we’ll let you know when the asking price has negotiating room and when the house is “priced to sell”. Our unique market knowledge will keep you a step ahead of the “house hunting competition”.

In a “seller’s market”. It is not unusual to see multiple offers on a property, full-price offers and even above-price offers. On the flip side, during a “buyer’s market” there are more houses for sale than buyers. This gives us more negotiating room as houses are taking longer to sell.

Step 5 – Find Your Dream House

We are confident we will find your dream house. When we do, we’ll do a comparative market analysis to help determine value and put together the purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.).

The offer is normally presented with “earnest money”. This is a cash deposit made to a home seller to secure an offer to buy the property. The amount is applied to closing costs. If the seller accepts the offer, generally closing is held 30 to 60 days from the offer date (generally dependent on the turn around time of your mortgage financing).

Step 6 – Negotiate the Deal

It is not uncommon to receive a counter offer when the initial purchase offer is submitted. Don’t let this discourage you. We will discuss the counter offer and decide whether or not to accept the counter offer, submit our own counter offer, or reject the counter offer and move on.

Market conditions will play a role in how aggressively we negotiate the deal. We will also work within your limits. Emotions can lead to buyer’s remorse. It is better to set limits prior to negotiating an offer and stick to these limits.

Step 7 – Get a Loan

During the closing period, you will be working with your mortgage lender to close the loan. Since you pre-qualified for the loan before starting your home search, you will be that much closer to the end. Our closing team will gather the necessary property information your lender will need to close the loan.

Step 8 – Close the Deal

You will receive a “Good Faith Estimate” of closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer’s past experience and may not include all the closing costs. We will be glad to review the “Good Faith Estimate,” answering any questions you may have.

Step 9 – Move In

Congratulations! It’s time to move into your new house and make it your home. Enjoy this exciting time. The Malott Group will help you prepare to make your moving day a pleasure.