New Orleans Real Estate From The Craig's Perspective

Listing Your Home Or Listings At The Magic Number

2011-01-13T15:23:00.000-06:00

Blogging From The Desk of Alicia Lagarde-Craig

Finding the Magic Number:
Pricing strategies can help you market your listings and generate offers that turn into closed deals.
January 2011

"Once you get a real estate license, you can start telling consumers what their homes are worth," says Melanie McLane, ABR, CRB, owner of the Melanie Group in Jersey Shore, Pa. She’s a certified appraiser with more than 30 years’ experience in real estate. "But I find many people aren’t prepared or haven’t done their homework to know what the market will support before giving price estimates."

And just doing your homework isn’t the end of setting a price; it’s also important to have a pricing strategy that works for your market and your clients. Here are four techniques:

• Employ shock and awe. Remember Economics 101—the simple law of supply and demand? Adam Smith, the grandfather of modern economics, said when an asset is undervalued, the "invisible hand of the market" corrects the pricing to fair market value. It’s a principle that Amanda DiVito Parle, ABR, CRS, broker associate with RE/MAX Alliance of Arvada, Colo., has used to her sellers’ advantage. By drastically lowering the price on some of her luxury listings—a process she calls "shocking and awing the market"—she creates instant demand. "I listed a $1 million–plus property for $599,000, and a sales professional called and asked if it was correct," she says.

Often, properties can end up selling for more what you’d have originally listed them at. "You need to the drop the price so dramatically that buyers think it’s outrageous," she says. "They’ll determine the price. They’ll be eager to see the property and create a competitive bidding war."

• Set a market-leading price. "Do your homework on the local market and price the home to lead the market, not chase the market," says Rick Lawrence, e-PRO, SFR, a sales associate with RE/MAX Professionals Select in Naperville, Ill. He recommends showing sellers virtual tours of comparables to get them on the same page about setting a price that will lead the market.

• Pick an exact number. Ben Kinney, founder of the Home4Investment real estate team in Bellingham, Wash., assesses a listing’s value, setting a price to the dollar: $137,368 or $213,348, for example. "Consumers assume that even prices aren’t carefully calculated and probably just a home price thrown out for the sake of it." At least with Kinney, that notion is correct. He considers all the features of the home to reach a precise number.

• Don’t get counted out. It’s not uncommon to price a house slightly under an even price point, say at $199,000 instead of $200,000, to give the home a competitive edge. The trouble is, buyers who search for homes online (and virtually all do) are typically searching a range of prices, Kinney says. So a buyer looking for a $200,000–$250,000 house wouldn’t even see your $199,000 listing. By knowing the range buyers usually use for a neighborhood, you can price your listing for maximum exposure, Kinney says.

When the offers do start rolling in, take them seriously, McLane says. Sellers sometimes make the mistake of refusing reasonable offers early in the listing period. Help your clients understand that the longer their house sits, the less desirable it may become to active house hunters.

By Katherine Tarbox -- Senior Editor of REALTOR® Magazine

Purchasing a Home is Still a Good Investment

2011-01-07T14:11:00.000-06:00

Blogging From The Desk of Alicia Lagarde-Craig

Even with several years of price declines, the typical seller who purchased a home eight years ago experienced a median equity gain of $33,000—a 24 percent increase—while sellers who were in their homes for 11 to 15 years saw a median gain of 40 percent. That’s according to NAR’s 2010 survey of home buyers and sellers, available at REALTOR.org/research. "Eighty-five percent of recent home buyers see their home as a good investment, and nearly half think that investment is better than stocks,” says Paul Bishop, NAR vice president of research. This indicates the long-term view of home ownership as a fundamental goal and value remains sound.

This Month in Real Estate (US) : December 2010

2010-12-14T14:22:00.000-06:00

Blogging From The Desk of Alicia Lagarde-Craig

This Month in Real Estate: December 2010

Update Regarding The Mortgage and Conveyance Division's Online Data Recovery

2010-12-09T12:24:00.000-06:00

Blogging From The Desk of Alicia Lagarde-Craig

Update from Dale Atkins, The Clerk of Civil District Court
The following updates took place as of December 7, 2010:

PERSONNEL:
In total, 90 men and women are working on the data recovery project as of today, and the Clerk of Court's office is continuing to add personnel to complete this task as soon as possible.

BACKLOG COMPLETED:
The backlog of documents in the Conveyance and Mortgage divisions has been eliminated. This means all mortgage and conveyance documents received between October 26 and November 18, when the system was reactivated for data entry and cashiering, have been entered in the system.

CERTIFICATES:
As it relates to Sheriff’s sales, they are current on all Sheriff Certificates through sale date of December 29, 2010. The Clerk of Court's Office forgot to mention that the houses that are going through a Sheriff's Sale at this time were marketed 45 days in advance, meaning these houses were advertised in October, before the online data crash.

RESTORATION OF DATA PROJECT: CONVEYANCE
The Clerk's office is confident the final delivery of the 60,000 conveyance instruments which are currently being re-entered by the Windward Group will be Sunday, Jan. 2, 2011. Once the data is delivered, the only task will be to verify the information. The first delivery of a 1000-piece sample was successfully delivered by the Windward Group on Dec. 1, 2010 and successfully uploaded into the Clerk's database. This data is now being verified. Another 10,000 records are expected for delivery on Friday, Dec. 10, 2010. As more records are entered, more personnel will be shifted to data verification to speed this project along. The date of January 2, 2011 that the Clerk's office mentions is not a guarantee.

RESTORATION OF DATA: MORTGAGE DIVISION
The Clerk of Court's office is in the final stages of negotiating a contract for the data input of the more than 119,000 mortgage documents which need to be restored in the online system. Until the contract is signed, the work is being done internally. Nevertheless, the Clerk's office feels confident this data will be completely uploaded by mid-January 2011, but they are pushing for a commitment to an earlier delivery date of the data. Again, once data is delivered successfully into the system, the Clerk's office begins a verification process of the entries. The time frame for the verification process is about 7-14 days, but there are no guarantees on this either.

In short, this means that there will be very few closing until Mid-January 2011.

If your closing has been delayed as a result of the online data crash in Orleans Parish, here is a checklist of things that you can provide to the Title Company that may help to speed up the closing:

-Obtain Financial Statements from the Seller(s)
-Obtain Forwarding Address of the Seller(s)
-In Whose Name Is The Property Assessed?
-What is the Assessed Value?
-Any Outstanding Mortgages (1st Mortgage, 2nd Mortgage, HELOC)?
-Copy Of Appraisal
-Length Of Time The Seller Owned The Home? _____ Years
-Financial Statement Or Loan Application From The Borrower

If you have any questions regarding real estate, please contact me at 504.382.3724 or email me at AliciaLagarde@kw.com

Tips For Hiring A Contractor

2010-11-09T13:24:00.002-06:00

Blogging From The Desk of Alicia Lagarde-Craig

Finding a contractor – Choosing the right contractor can save time & money.

• Ask friends and trusted associates who have already hired contractors for recommendations
• Check potential contractors out with consumer protection groups, such as the Better Business
Bureau: www.neworleans.bbb.org or 504-581-6222. BBB’s video, How to hire a contractor, can be purchased from their online resource library.
• Ask for proof that potential contractors are licensed with the State of Louisiana, and verify with the State Licensing Board: www.lslbc.louisiana.gov/findcontractor.asp or (225) 765 2301
• Ask potential contractors about their familiarity and experience with energy efficient, environmentally responsible, and healthy building practices and materials.

Hiring a contactor

• Once you have found a licensed contractor who checks out with the BBB or another consumer protection group, ask for:

o A list of references, particularly of projects similar to yours – and check them.
o Lists of subcontractors and suppliers and check to make sure they pay their debts on time.
o Proof of current insurance (should include General Liability, Worker’s Compensation and Builder’s Risk). Make sure to obtain an insurance binder with you listed as the additional insured from the insurance company before signing a contract.

• The contract should be modeled after standard American Institute of Architect’s (AIA) construction contract. Contract templates can be purchased at www.aianeworleans.org.
• Before signing the contract, make sure you understand the terms and conditions. If necessary, ask an attorney, or a neutral party familiar with the construction process to advise you.

Payment

• Ten percent (10%) of the contract is the most a legitimate contractor will request for a deposit.
• Payment should proceed according to the contract. Pay only for what is completed.
• Do not pay in cash and keep written records of all payments
• Keep written records of paperwork, conversations and activities, including photographs of work completed.
• Changes to the scope of work should be estimated and approved by the contractor and you in writing before they are begun.
• Do not make final payment until all work is completed to your satisfaction, all subcontractors and suppliers are paid, and the jobsite is clean and cleared of all debris.

Tips Gleaned From the Best Credit Repair Services

2010-10-04T10:53:00.000-05:00

Blogging From The Desk of Alicia Lagarde-Craig

Open New Accounts Now
A tour of the top credit repair services websites will reveal a plethora of great financial tips. One of the best is the importance of opening new accounts now, rather than waiting until your credit report is all cleaned up. New accounts show that you are capable of getting back in the game and will have a dynamite impact on your score. Are you afraid of getting denied? No worry, secured cards are a perfect credit repair tool.

Reduce Your Credit Card Balances
You have heard it a million times, but it bears repeating. All of the legitimate credit repair services stress the importance of watching your credit card balances. Do not just nod your head knowingly and move on, please heed this advice. The difference between an account topping out at over 80 percent of the limit and an account under 20 percent can be a difference of 100 points. Okay?

Add an Authorized User Account
Often recommended by credit repair services, this is an easy way to get a new credit card along with an instant bump in your FICO scores. Call mom or dad and ask them to add you to one of their perfect, low balance credit cards. In fact, they do not even have to give you a card for you to get the score benefit. This is not a replacement for opening your own cards, but it is a quick way to get credit repair traction.

Check Your Statutes of Limitation
If you are confronted by a collector, the first thing that any of the good credit repair services will suggest is to check your statute of limitation, or SOL. If the SOL is over, the collector has no legal leverage. They could try to sue you but if you raise the SOL defense they will have no case. Check your SOL and you may be excited to find that you have nothing to fear.

Negotiate Collections
The economy is rough. Most good credit repair services agree that now is a great opportunity to negotiate with collectors. Everyone is hungry, and here are some guidelines that can help you capitalize on the opportunity. Make your offer on the last Friday of a month. And make your offer as tempting as possible by figuring out how to get your settlement money to the collector instantly. Let them know that you are ready to push the money button.

Dispute Redundant Collections
It is a funny thing about credit reports. The majority of collections on all credit reports should not be reporting at all. That is right. By law, when a collector sells a debt to another collector they should remove their account at once so you are not double-hit. This little tidbit is often ignored and the result is a whole lot of bogus collections. Review your reports. Find the duplicates and dispute all but the most recent. Try this great credit repair services tip and watch your report shine.

Tips Gleaned From the Best Credit Repair Services

2010-09-10T11:51:00.003-05:00

Blogging From The Desk of Alicia Lagarde-Craig

Tips Gleaned From the Best Credit Repair Services
By Ian Webber

Open New Accounts Now
A tour of the top credit repair services websites will reveal a plethora of great financial tips. One of the best is the importance of opening new accounts now, rather than waiting until your credit report is all cleaned up. New accounts show that you are capable of getting back in the game and will have a dynamite impact on your score. Are you afraid of getting denied? No worry, secured cards are a perfect credit repair tool.

Reduce Your Credit Card Balances
You have heard it a million times, but it bears repeating. All of the legitimate credit repair services stress the importance of watching your credit card balances. Do not just nod your head knowingly and move on, please heed this advice. The difference between an account topping out at over 80 percent of the limit and an account under 20 percent can be a difference of 100 points. Okay?

Add an Authorized User Account
Oft recommended by credit repair services, this is an easy way to get a new credit card along with an instant bump in your FICO scores. Call mom or dad and ask them to add you to one of their perfect, low balance credit cards. In fact, they do not even have to give you a card for you to get the score benefit. This is not a replacement for opening your own cards, but it is a quick way to get credit repair traction.

Check Your Statutes of Limitation
If you are confronted by a collector, the first thing that any of the good credit repair services will suggest is to check your statute of limitation, or SOL. If the SOL is over, the collector has no legal leverage. They could try to sue you but if you raise the SOL defense they will have no case. Check your SOL and you may be excited to find that you have nothing to fear.

Negotiate Collections
The economy is rough. Most good credit repair services agree that now is a great opportunity to negotiate with collectors. Everyone is hungry, and here are some guidelines that can help you capitalize on the opportunity. Make your offer on the last Friday of a month. And make your offer as tempting as possible by figuring out how to get your settlement money to the collector instantly. Let them know that you are ready to push the money button.

Dispute Redundant Collections
It is a funny thing about credit reports. The majority of collections on all credit reports should not be reporting at all. That is right. By law, when a collector sells a debt to another collector they should remove their account at once so you are not double-hit. This little tidbit is often ignored and the result is a whole lot of bogus collections. Review your reports. Find the duplicates and dispute all but the most recent. Try this great credit repair services tip and watch your report shine.

$65,000 Soft Second Mortgage through FANO is back!!!

2010-05-21T16:32:00.004-05:00

$65,000 Soft Second Mortgages through FANO have been reissued!

Blogging From The Desk of Alicia Lagarde-Craig

The First Time Homebuyer Fund offers soft-second mortgage loans at zero (0%) per cent interest up to $65,000 and a closing cost assistance grant up to $10,000 for a homebuyer who has not owned a principal residence within the last three (3) years or is a single parent who no longer owns a home because of a divorce. This fund serves first-time homebuyers with household incomes of 120% or less of the metropolitan area median income (AMI) and who are purchasing homes primarily in the Housing Opportunity Zones. Gross household incomes of qualifying borrowers for this fund cannot exceed the following:

"New higher income limits approved!"

1 person -- $50,280
2 persons - $57,360
3 persons - $64,560
4 persons - $71,760
5 persons - $77,520
6 persons - $83,280
7 persons - $89,040
8 persons - $94,680

The borrower must also invest at least 1% of the purchase price or $1,500 from personal funds, which ever is greater.

Homebuyers who have already received payments from the State under the “sell” or “relocate” option under the Road Home Homeownership Program are not eligible to receive additional financial assistance from this program.

To learn more about the Pathway to Homeownership Soft-Second Mortgage Loan Program
call Alicia Lagarde-Craig at 504.382.3724 or Jeff Craig at 504.352.6190.

This Finance Authority will be processing an additional 164 Loans on a First Come First Served Basis, so if you are a serious buyer and would like more information regarding this program, please call Alicia or Jeff to get the process started.

This Month in Real Estate (US) : May 2010

2010-05-10T10:16:00.000-05:00

Blogging From The Desk of Alicia Lagarde-Craig

First Time Homebuyer Fund through FANO is back up and running!

2010-04-30T11:54:00.004-05:00

Blogging From The Desk of Alicia Lagarde-Craig

First-Time Homebuyer Fund

The First Time Homebuyer Fund offers soft-second mortgage loans at zero (0%) per cent interest up to $65,000 and a closing cost assistance grant up to $10,000 for a homebuyer who has not owned a principal residence within the last three (3) years or is a single parent who no longer owns a home because of a divorce. This fund serves first-time homebuyers with household incomes of 120% or less of the metropolitan area median income (AMI) and who are purchasing homes primarily in the Housing Opportunity Zones. Gross household incomes of qualifying borrowers for this fund cannot exceed the following:

"New higher income limits approved!"

1 person -- $50,280
2 persons - $57,360
3 persons - $64,560
4 persons - $71,760
5 persons - $77,520
6 persons - $83,280
7 persons - $89,040
8 persons - $94,680

The borrower must also invest at least 1% of the purchase price or $1,500 from personal funds, which ever is greater.

Homebuyers who have already received payments from the State under the “sell” or “relocate” option under the Road Home Homeownership Program are not eligible to receive additional financial assistance from this program.

To learn more about the Pathway to Homeownership Soft-Second Mortgage Loan Program
call Alicia Lagarde-Craig at 504.382.3724 or Jeff Craig at 504.352.6190.

This Finance Authority will be processing an additional 164 Loans on a First Come First Served Basis, so if you are a serious buyer and would like more information regarding this program, please call Alicia or Jeff to get the process started.

2010-02-10T14:34:00.004-06:00

Blogging From The Desk of Alicia Lagarde-Craig

This Month in Real Estate
February 2010

...............................................................................................................................................

Commentary

January began the new decade with indications that the economy is beginning to gain traction. Real GDP grew by 2.2 percent in the third quarter of 2009 and preliminary signals point to a continued positive trend for the following quarter. GDP is a measure of total products and services produced by a country and indicates the health of the country's economy.

A dip in home sales in December was due in large part to timing. First time buyers that would have liked to close in December but qualified for the tax credit bumped their timeline up in order to cash in. News of the credit’s extension reached many of them after their plans to close in December were set.

Interest rates are back below 5% and home prices are up compared to last year. The government continues to attempt to minimize the impact of troubled homeowners by continuing to improve its foreclosure prevention program and has also taken steps to help foreclosures buyers purchase faster.

Although the unemployment rate is expected to stay high as jobs increase modestly, experts expect the economy to continue to grow in 2010.

The Housing Market

Existing Home Sales

After a rising surge for three straight months, existing home sales slowed in December after first-time buyers rushed to meet the original November tax credit deadline and evidenced by first timers accounting for 51% of sales in November compared to 43% in December. “It’s significant that home sales remain above year-ago levels, but the market is going through a period of swings driven by the tax credit,” said Lawrence Yun, NAR chief economist. December sales of 5.45 million remain 15 percent above the 4.74 million-unit level last year.

Median Home Price

Existing-home price was $178,300 in December, 1.5 percent higher than December 2008 and 8.2 percent above its low in January 2009. It was the first year-over-year gain in median price since August 2007, attributable to an increase in the number of mid- to upper-priced homes in the sales.

Inventory

The supply of homes continued to shrink, falling 6.6 percent to 3.29 million, representing a 7.2-month supply at the current sales pace. Compared to a year ago, there are now 11 percent fewer homes on the market. This is the lowest level of competing homes on the market since March 2006.

Mortgage Rates

Mortgage rates have moved back to less than 5 percent, which have been categorized by industry experts like Freddie Mac chief economist Frank Nothaft as “near a record low.” This move that may help boost home loan demand and lend support to the housing market recovery. On January 28, the average 30-year fixed-rate mortgage was 4.98 percent.

Affordability

Affordability remains at record levels, supported by the lowest mortgage rates in decades, low home prices, as well as the first-time buyer tax credit. So far this year, the home price-to-income ratio has fallen well below the historical average of 25 percent. The ratio now stands at 15 percent.

Sources: National Association of Realtors, Freddie Mac

Government Action

FHA Tightens Lending Requirements

The Federal Housing Administration (FHA) insured almost 30 percent of all purchase loans and 20 percent of refinances from September 2008 to September 2009, up from about only 2 percent of all loans three years earlier. The influx of loans combined with falling capital reserves, which cushion against rising defaults, has led the FHA to announce several measures to strengthen its economic vitality.

On January 20, the FHA announced it will do the following:

1. Raise Insurance Fees - In exchange for FHA backing, borrowers pay an up-front premium. Previously it was 1.75% of their loan. It’s now risen to 2.25%.

2. Cap Seller Contribution to Buyer’s Closing Costs - Sellers can contribute a maximum of 3%, down from 6%, of the sales price to the buyer’s closing costs. The higher cap created risk by incentivizing homes to sell at a substantially marked-up price to compensate for contribution. 3% is still a significant proportion to closing costs.

3. Require Higher Down Payments for Poor Credit - Beginning this summer, borrowers with a credit score below 580 will need to make a down payment of at least 10%. The FHA will still provide a viable alternative to the 1% of FHA borrowers who fall in this category, whereas most lenders’ credit score cutoff is 620.

The good news is the FHA, an integral player in the market, has stepped up to protect itself so it can continue helping first-time buyers, those with less cash for a down payment, and those with less-than-perfect credit obtain home loans. Additionally, these proactive measures aim to protect the agency from needing taxpayer funds from the government.

Source: The Wall Street Journal

FHA to Help New Foreclosures Sell Fast

FHA has announced it will lift the 90-day seasoning requirement for one year. The FHA ‘s 90-day “seasoning” provision requires that a home sold to an FHA buyer must be owned for at least 90 days by the seller before closing. This is intended to prevent buyers from purchasing property from “flippers” at an overly inflated value.

In the current climate, quickly selling foreclosures has risen in importance while the prominence of “flippers” has dramatically decreased. Acquiring, rehabbing, and reselling a foreclosure often takes fewer than 90 days. Banks have been reluctant to sell foreclosures to FHA buyers if they would need to push closing back to meet the FHA requirement.

There are additional stipulations; for more, please visit the press release.

Quickly moving foreclosures out of the bank’s hands and into those of home buyers is an important step in stabilizing home prices, neighborhoods, and communities leading toward a healthy housing market.

Source: U.S. Department of Housing and Urban Development

Topics For Buyers & Sellers

Price it Right

Sellers who listed their home at the price originally recommended by their agent sold it:

38 days faster
For 2.25% higher
With 1 less price reduction
Compared to sellers who did not take their agent's recommendation.

Staging Stats

Compared to homes that were not staged, staged homes had:
more showings
a higher list-to-sell percentage
Other notable stats found include:

Only 1 in 3 sellers staged their home, even with all the commonly accepted advantages of staging.
Staging typically took between 2 - 6 hours to complete.
Including the cost of a staging professional and items purchased or rented, staging cost an average of $523.
Although it has advantages at all price points, staging was also found to be particularly important for homes priced over $600,000.

Source: Keller Williams Research

10 Home Features Buyers Want

2010-02-01T11:46:00.001-06:00

Blogging From The Desk of Alicia Lagarde-Craig

10 Home Features Buyers Want

Home designers and builders speaking at the recent International Builders Show in Las Vegas say that buyers are seeking cost-effective features and rejecting things that don’t have lasting value.

“It's all about family togetherness – casual living, entertaining and flexible spaces," says Carol Lavender, president of the Lavender Design Group in San Antonio.

Paul Cardis, CEO of Avid Ratings, which conducts an annual survey of buyer preferences, identified these must-haves in new homes:

1. Large kitchens with islands
2. Energy efficiency, including energy-efficient appliances, super insulation, and high-efficiency windows.
3. Home offices
4. Main-floor master suite
5. Outdoor living space
6. Ceiling fans
7. Soaking tub in the master suite and/or an oversize shower with a seating area
8. Stone and brick exteriors rather than stucco or vinyl
9. Community walking paths and playgrounds
10. Two-car garages, but three-car garages are even more desirable

This Month in Real Estate December 2009

2009-12-14T10:52:00.001-06:00

Blogging From The Desk of Alicia Lagarde-Craig

This Month in Real Estate
December 2009

Commentary

Small steps to economic recovery continued last month. Among the positive readings was the report of a third quarter GDP growth rate of 2.8 percent, which followed four consecutive quarterly declines. This advance comes in well ahead of that of our Canadian neighbors, whose economy was once anticipated to be the first country out of recession, and by significant margin. Canada posted marginal 0.4 percent growth. Unemployment fell in November for the first time since April 2008. A strong rebound in home sales activity from year ago levels also points to a firmer stabilization.

With the extension of the $8,000 federal housing tax credit into spring 2010, first-time buyers will now have an additional few months to purchase their dream homes. Expansion of the income restrictions now gives possibilities for higher earners to participate too. And the $6,500 tax credit now available to established homeowners with five consecutive years or more in their homes broadens the opportunity landscape. This in turn will allow the housing market more time to find a more solid footing on a sustainable recovery.

Although economists continue to debate the overall shape of the recovery, it is widely agreed that the U.S. economy will take a long time to rebound. Unemployment is expected to remain high for several quarters and the number of underemployed is expected by some economists to remain a drag on growth prospects. On the brighter side, according to some economists, a slow and steady growth will likely fair better for the long-term well-being of the economy. Slower, sustained growth can help prevent dangerous asset bubbles, like the recent housing and technology bubbles, from growing and bursting.

The Housing Market

Existing Home Sales - Up 24% from last year
Existing home sales recorded another strong gain in October with many buyers rushing to beat the deadline for the first-time buyer tax credit scheduled to expire at the end of November. Sales surged 10.1 percent to 6.1 million units over September sales of 5.54 million and are 23.5 percent above the 4.94 million-unit level seen last year. Sales activity is at the highest level since February 2007 when it reached 6.55 million.

Median Home Price - Very favorable
Low home prices are contributing to extremely favorable affordability conditions. Existing-home price was $173,100 in October, 5 percent higher from its low in January but still 7.1 percent below October 2008. Distressed properties, which accounted for 30 percent of all transactions in October, continue to hold down the median home price, as they typically sell for 15 to 20 percent less than traditional homes.

Inventory - Lowest level in more than 2.5 years
"We are getting closer to a general balance between buyers and sellers,” according to Lawrence Yun, NAR chief economist. The supply of homes is now at the lowest level in more than two and a half years. Total housing inventory at the end of October fell 3.7 percent to 3.57 million existing homes available for sale, representing a seven-month supply at the current sales pace, down from September’s eight-month supply. Compared to a year ago, there are now 15 percent fewer homes on the market.

Mortgage Rates – Back at 4.78%
Remaining at attractive levels for people looking to buy a home or refinance, historically low interest rates are boosting the market. Rates for 30-year fixed loans fell to 4.95 percent in October from 5.06 percent the month before. During the week ended November 25, rates again dropped to the low 4.78 percent reached in the spring. As the economy enters its recovery phase and concerns over inflation come back, mortgage rates are expected to go up.

Affordability – Best since 1970s
Unprecedented interest rates, low home prices, as well as the first-time buyer tax credit are lifting the housing market. All these factors combined are “adding to the buying power of the typical family, with affordability conditions this year at the highest on record dating back to 1970,” according to Lawrence Yun, NAR chief economist. So far this year, the home price-to-income ratio has fallen well below the historical average of 25 percent. The ratio now stands at 15 percent.

Sources: National Association of Realtors, Freddie Mac

Government Action

New Fannie Mae Policies

"First Look"

In many markets dominated by distressed properties, buyers jumped off the fence in droves and as a result the number of homes for sale in the first tier of the market decreased significantly. When a new foreclosure becomes available for sale, it often is snapped up by investors with cash on hand, leaving the average home buyer looking for a place to live out of luck.

Fannie Mae introduced a new “First Look” initiative to address this and aid in the stabilization of neighborhoods.

During the first 15 days a Fannie Mae REO is on the market, only buyers who will live in the home and public entities committed to the best interests of the community may purchase it.
Buyers will have 45 days to close, up from 30 days.
Earnest money requirement may be reduced.

This will hopefully give the average home buyer a greater chance of purchasing foreclosures and provide support to hard-hit neighborhoods, because owner-occupants are more invested in the long-term vitality of a community whereas investors typically are more invested in their monetary return from the property.

Increased Credit Scores

Fannie Mae is raising its minimum credit score from 580 to 620. This risk management measure will help protect Fannie Mae from future defaults and foreclosure by raising their standard and accepting less risky loans.

While risk management is a sound and healthy approach for an entity that the economy depends on, this underscores the importance that potential home buyers check their credit report early in the process, allowing more time to clear up any errors.

Earlier this year, Experian, one of three major credit-reporting bureaus, began exclusively providing complete credit report information when purchased directly from Experian or obtained from the government annual credit report.

Source: National Association of Realtors

FHA Signals Efforts to Manage Risk

In an effort to secure its financial health, the Federal Housing Administration plans to require borrowers to have more “skin in the game” soon. Over the past three years, FHA’s market share has boomed from about 2 percent of all new loans to about 30 percent of all new loans this year and 20 percent of refinances. The escalading volume that the administration is currently handling calls for stricter requirements as evidenced by FHA’s capital ratios falling to nearly 0.5 percent well below the minimum of 2 percent.

The agency is still analyzing the levels and time frames it wishes to tighten its standards but they expect to:

Increase minimum down payments
Increase minimum credit scores
Increase insurance premiums
Lower the amount of seller concessions
As one of the major players in the mortgage market, the health of FHA is imperative to the housing market and flow of credit to home buyers, as well as to the health of the overall economy. Taking measures to safeguard the agency from needing a government tax payer-funded bailout is a notable risk management measure.

According to a Keller Williams research study, the typical first-time buyer put down 3.5 percent this year. Those who want to take advantage of the tax credit before the April 30 contract, June 30 closing deadline may want to beef up their savings and check their credit report now in anticipation of any changes.

Sources: National Association of Realtors, KW Research First Time Home Buyer Survey

Topics For Buyers & Sellers

First Time & Distressed Property Home Buyers

What are other first time buyers doing?

The tax credit extension and expansion in November has fueled new discussion about home buyers and the housing market in 2010. Here’s a look at first-time buyers in 2009.

The median age is 28, significantly down from where it was in 2005 at 32.
Location or Neighborhood was the No. 1 “must-have” for 36% of buyers.
2 out of 3 sellers paid at least part of the buyer’s closing costs.
76% used their own savings for the down payment.
1 in 4 had help from their family for the down payment.
As elevated levels of distressed properties are expected to continue for the next few years, here is a glimpse of buying a distressed property:

27% of foreclosures* were purchased by investors.
47% of distressed* properties were purchased by first-time buyers.
89% of those first time buyers that purchased a distressed property were motivated by the $8,000 tax credit.
7 in 10 agents have seen an increase in multiple offers.
Approximately 3 out of 5 agents discuss the differences between buying distressed and traditional properties at the buyer consultation.

* Distressed – Short Sale and REO, Foreclosure – REO Only

Contact Alicia & Jeff,

your local real estate experts,

for information about what's going on in our area.

Newsletter Contents

1. Commentary

2. The Housing Market

3. Government Action

4. Topics for Buyers
and Sellers

First Time Homebuyer Tax Credit Information- Updated!

2009-11-30T11:28:00.001-06:00

Blogging From The Desk of Alicia Lagarde-Craig

A new law that went into effect Nov. 6 extends the first-time homebuyer credit five months and expands the eligibility requirements for purchasers. The Worker, Homeownership, and Business Assistance Act of 2009 extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase. The maximum credit amount remains at $8,000 for a first-time homebuyer ; that is, a buyer who has not owned a primary residence during the three years up to the date of purchase. But the new law also provides a long-time resident credit of up to $6,500 to others who do not qualify as first-time homebuyers. To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence. For all qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 tax returns. A new version of Form 5405, First-Time Homebuyer Credit, will be available in the next few weeks. A taxpayer who purchases a home after Nov. 6 must use this new version of the form to claim the credit. Likewise, taxpayers claiming the credit on their 2009 returns, no matter when the house was purchased, must also use the new version of Form 5405. Taxpayers who claim the credit on their 2009 tax return will not be able to file electronically but instead will need to file a paper return. A taxpayer who purchased a home on or before Nov. 6 and chooses to claim the credit on an original or amended 2008 return may continue to use the current version of Form 5405.

Income Limits Rise the new law raises the income limits for people who purchase homes after Nov. 6. The full credit will be available to taxpayers with modified adjusted gross incomes (MAGI) up to $125,000, or $225,000 for joint filers. Those with MAGI between $125,000 and $145,000, or $225,000 and $245,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify. For homes purchased prior to Nov. 7, 2009, existing MAGI limits remain in place. The full credit is available to taxpayers with MAGI up to $75,000, or $150,000 for joint filers. Those with MAGI between $75,000 and $95,000, or $150,000 and $170,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify. New Requirements Several new restrictions on purchases that occur after Nov. 6 go into effect with the new law: · Dependents are not eligible to claim the credit. No credit is available if the purchase price of a home is more than $800,000. A purchaser must be at least 18 years of age on the date of purchase. For Members of the Military Members of the Armed Forces and certain federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and still qualify for the credit. An eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011, and settle on the purchase by June 30, 2011. For more details on the credit, email me at AliciaLagarde@kw.com or you can call 504-382-3724.

Homebuyer Tax Credit Closer to Extension

2009-11-03T20:26:00.002-06:00

Blogging From The Desk of Alicia Lagarde-Craig

Homebuyer Tax Credit Closer to Extension

November 3rd, 2009

The $8,000 federal tax credit for first-time homebuyers that is set to expire at the end of the month inched another step closer to getting extended until April. The Senate voted 85-2 yesterday to move the bill to a final vote, and senior members of Congress said that they expected the bill to pass next week.

In what officials say is a move to stimulate the economy, the measure might even be expanded to give a $6,500 tax credit to homebuyers who have lived in their previous home for at least 5 years.

Prolonging the tax credit is sure to be welcomed by home builders like Toll Brothers and KB Homes, as well as financial institutions like U.S. Bank, whose mortgage-revenue rose nearly 5% last quarter.

The vote comes only weeks after tax officials testified that they received 90,000 bogus claims for the $8,000 credit. Some 1.4 million legitimate claims have been filed, totaling approximately $18 billion in tax credits.

Status of Tax Credit

2009-10-28T10:51:00.002-05:00

Blogging From The Desk of Alicia Lagarde-Craig

Status of Tax Credit: Getting Closer

While a final deal was not reached, there were encouraging signs that a deal is very likely. It is more a question of “when” than “if”.

The proposed deal (which is still subject to change) would extend the tax credit until April 30,2010 and also expand it to “move up” borrowers.

Details of the revised homebuyer credit reportedly are as follows:
• Credit is changed to 10% of sales price up to $7290
• For first time homebuyers, the income level to qualify is $ 75,000/150,000.
• For “move up” buyers the income level to qualify is $ 125,000/250,000.
• For “move up” buyers, they must have been residing in their primary residence for 5 years.
• The credit runs from Dec. 1, 2009 to April 30, 2010.

Sales contracts signed as of April 30, 2010 would have 60 days to close.

First-Time Homebuyer Seminar plus Information on the 2009 Tax Credit

2009-09-30T12:08:00.005-05:00

Blogging from the desk of Alicia Lagarde Craig:

Take advantage of our FREE Seminar & Learn all about the following:

- Home Ownership Benefits
- The Role of the Real Estate Agent
- Credit Criteria
- How the Credit Scoring System Works
- The Role of the Mortgage Professional
- How to take advantage of the 2009 Tax Credit and receive up to $8000 in FREE money!

Place:
Keller Williams Realty New Orleans
8601 Leake Avenue
New Orleans, LA 70118

Date:
Tuesday, October 6th, 2009

Time:
6pm-7:30pm

Presented by:
Alicia Lagarde Craig & Jeff Craig in affiliation with Keller Williams Realty New Orleans

Please RSVP to: alicialagarde@kw.com or jeffcraig@kw.com

If you have any questions, please call 504-862-4139.

We look forward to seeing you there!!!

State Finance Program to Provide $25 Million for HomeBuyers

2009-09-04T11:18:00.005-05:00

Blogging From The Desk of Alicia Lagarde-Craig

*HOT OFF THE PRESS*

Louisiana Housing Finance Agency offers a number of opportunities for low and moderate income Louisiana families to realize their dreams of owning a home through its First-Time Homebuyer Program. The LHFA expects the money to be tapped quickly. The program is only likely to benefit approximately 200 homeowners statewide with a variety of tools for down payments, closing costs and mortgage rate assistance.

The program offers a variety of 30-year, fixed-rate mortgages, some at below market interest rates to potential homebuyers. LHFA's current 2009A Program offers a four-tiered interest rate structure:

The HOME Mortgage Revenue Bond Program
HOME/MRB Program Loans:
The HOME/MRB Program will bear interest at 4.10%. Assistance Payments equal to 4.50%to 9% of the Mortgage Loan amount will be paid at closing to cover part of the down payment, closing costs, and prepaid items. For HOME/MRB borrowers, up to 2% of the interest rate each month on a HOME Assisted Program Loan may be deposited into an escrow fund and transferred to an eligible borrower obtaining a HOME Assisted Program loan in order to provide assistance to such eligible borrower for prepaying insurance premium payments. Lenders are required to complete the “Escrow Subsidy Agreement Exhibit “Q” for borrowers receiving this subsidy. The Escrow Subsidy Agreement will be transmitted to lenders upon approval of loans.

The Community Block Development Grant Program
CDBG/MRB Program Loans:
The CDBG/MRB Program will bear interest at 4.11%. Assistance payments equal to 4.50% to 9% of the Mortgage Loan amount will be paid at closing to cover part of the down payment, closing costs, and prepaid items. Properties are limited to 11 parishes and must be 1 family or 2 family homes. The 11 parishes are as follows: Acadia, Calcasieu, Cameron, Iberia, Jefferson, Plaquemines, St. Tammany, Tangipahoa, Terrebonne, Vermilion and Washington Parishes. All applicants must be first-time homebuyers and must agree to use the home as their primary residence for at least 3 years.

The Assisted Program
Assisted Program Loans:
The interest rate for the Assisted Program will bear interest at 6.10%. Assistance payments equal to 4% of the Mortgage Loan amount will be paid at closing to cover part of the down payment, closing costs, and prepaid items.

The Low Rate Homebuyer Tax Credit Program
The Low Rate Homebuyer Tax Credit Program Loans:
Low Rate - Homebuyer Tax Credit Program will bear an interest rate at 5.60%. This program will advance up to $5,000 per loan for down payment, closing costs, and prepaid items. The borrower must qualify for the $8,000 First-Time Homebuyer Tax Credit. There will be a second mortgage executed with this program and must close on or before 11/30/09. After the initial deferral period through 6/30/10, the loan will fully amortize over ten years, starting with payments 8/1/10, with an interest rate of 7.60% unless the Agency is repaid in full with the borrowers federal tax refund. The second morgage loan payment must be included in the Debt to Income Ratio. This program will require a $100 Application Fee in addition to the $75 Compliance Fee. A Homebuyer Tax Credit Program Disclosure is required detailing the information on the terms of the loan, the tax credit, and the option to repay LHFA through the federal tax credit.

American Dream Downpayment Initiative (ADDI):
Louisiana Housing Finance Agency (the “Agency”) has implemented a homeownership initiative in partnership with its participating lenders to expand homeownership opportunities for low-income households throughout the State of Louisiana.

The ADDI program will provide grants up to 6% of the sales price or $10,000, whichever is greater, in connection with the lender’s first mortgage loan.

Eligibility
2009A Bond Issue allows for the following:
The first-time homebuyer rules are waived for the Assisted Program loans ONLY in all 64 parishes located in the State of Louisiana.
The purchase price and income limits are elevated to targeted area limits for the Assisted and Low Rate - Homebuyer Tax Credit Programs ONLY in all 64 parishes located in the State of Louisiana.

Visit the website viewing Exhibit F1 for Standard MRB Maximum Permissible Acquisition Cost & F2 for HOME/MRB Maximum Permissible Acquisition Cost AND
Visit the website viewing Exhibit G 2009 HOME/MRB Income Limits, 2009 MRB Income Limits, and CDBG/MRB Income Limits

For HOME/MRB and CDBG Program Loans use the HOME/MRB Income and Purchase Price limits.
The prospective homeowner must also meet income and purchase price limits. Income limits vary with the number of persons in the household and by parish. Purchase price limits vary according to the number of units in the property and if it is located in a targeted or non-targeted area. Also, the homebuyer must use the house as his/her principal place of residence.

If you are interested in owning your home, please contact Alicia Lagarde-Craig @ 504-382-3724 or you can email me at AliciaLagarde@kw.com.
~Alicia Lagarde-Craig September 4, 2009

First Time Homebuyers $8000 Tax Credit

2009-08-13T07:04:00.006-05:00

Blogging From The Desk of Alicia Lagarde-Craig

We’ve been hearing a lot of questions about the new tax credit. Who qualifies? How does it work? How long will it last? We’re going to take an in-depth look at the $8,000 tax credit for first time home buyers.

According to the new legislation, a first time home buyer is defined as someone who has not owned a principle residence in the past three years. Those three years are counted up to the date you take possession of the house you buy in 2009. This means that even if you’ve owned a home in the past, you can still take advantage of the tax credit as long as you haven’t purchased a primary residence since (August) 2006.

The same goes for married tax payers – they must both be first time home buyers. For non-married joint buyers, only one of them needs to be a first time home buyer, or someone who hasn’t owned a primary residence in the past three years.

Qualifying homes include:

* New homes
* Homes that are being re-sold
* Condos
* Townhomes

The main restriction is that the credit is only for those who buy a home as their primary residence. So investors looking to buy a rental property would not qualify for the credit. However owning a vacation home or a rental property already does not necessarily disqualify you from taking advantage of the credit (as long as you haven’t owned a primary residence in the past three years).

A Look at the Numbers

The tax credit is equal to 10% of the purchase price of the home, up to $8,000. The amount of the credit you can qualify for is related to how much money you earn. Here’s how the credit is scaled:

* Single home buyers earning 95K or less qualify. If you make 75K or less, you qualify for 100% of the $8000. If you make halfway, 85K, you qualify for 50% or $4000. The credit phases out gradually between 75K and 95K of income. For example, if you make halfway between the income limits, 85K, you qualify for up to half of the credit.
* The same rate applies for married couples and joint buyers whose incomes limits are doubled to $150,000 to $170,000. Married couples or joint buyers whose incomes are less would receive the full $8000 credit. At an income level of $160,000, halfway between 150 and 170, the buyers would receive half the credit – or $4,000. And the credit phases out altogether at $170,000.

This credit represent a significant amount of money. One of the biggest points of difference for the new credit from the one congress passed in July of 2008, is that the new credit does not have to be paid back.

In addition, it’s refundable, which means that if you’ve paid all your taxes as you go with an automatic payroll deduction, you would receive an $8,000 check from the IRS.

If you’re committed to buying a house in 2009 and want to use the $8000 tax credit for a down payment, consult with your REALTOR and/or Certified Public Accountant.

In Closing

Qualifying home buyers will need to make their home purchase between January 1, 2009 and December 1, 2009. And the home has to remain their principal residence for the following three years.

The new tax credit coupled with historically low mortgage rates and rising affordability, offers buyers a great opportunity if they act fast.

08/13/2009. Agent is licensed in the State of Louisiana, USA.

The FEDS Update on the Real Estate Industry

2009-06-25T15:42:00.004-05:00

Blogging From The Desk of Alicia Lagarde-Craig

The Fed Meeting was in line with market expectations with no real surprises yesterday.

Highlights:

-Key interest rates will remain at current levels with no indication of immediate increases

-The Fed deemphasized the deflation fears

-The Fed states that the pace of economic contraction is slowing.

-The Fed continues its commitment to purchase Mortgage Back Securities from Fannie and Freddie, ensuring liquidity and rate pressure reductions.

What does this translate to us for the Real Estate and Mortgage Industry?

The below 5% mortgage rates on 30 year fixed mortgages are probably gone for good....no use waiting around for that to happen.

The market will remain a buyer's market with affordability at all time highs and a flood of foreclosure properties available

Expect rates to increase toward year end as the Fed is forced to deal with inflation risks as economy continues to improve

The home buyer's season should be robust; affordability, rates, tax credits, should make the season a good one

While no one can predict the absolute bottom of the market, we are at or near a bottom.

If you are waiting for additional discounts on sales price, you may lose out even if they get lower prices due to rising rates and the end of tax incentives.

Knowledge is power.

~Alicia

First Time Home Buyers Class

2009-06-14T07:02:00.002-05:00

Blogging From The Desk of Alicia Lagarde-Craig

Attention First Time Homebuyers:

Make Plans to attend a FREE FIRST TIME HOME BUYERS CLASS (Pre-Registration is REQUIRED to attend)

Take advantage of this educational event hosted by Keller Williams Realty New Orleans, America’s 3^rd largest and fastest-growing real estate company! This is a fabulous opportunity to have all your questions answered. Learn all the steps to the home buying process including: how to make your best offer and pitfalls to avoid that will save you time and money!

FIRST THREE REGISTRANTS WILL RECEIVE A FREE COPY OF THE NEW YORK TIME’S BEST-SELLER ‘YOUR FIRST HOME – THE PROVEN PATH TO HOMEOWNERSHIP’ BY GARY KELLER

Event Time & Location:

Tuesday, June 23, 2009

Keller Williams Realty New Orleans

8601 Leake Avenue (Leonidas at the river)

New Orleans, LA 70118

Seating is Limited, Register Today

(Pre-Registration is REQUIRED):

Call The Craigs For Real Estate

Call Alicia Lagarde Craig at (504) 382-3724 or email your contact information to alicialagarde@kw.com (put “homebuyer class” in subject line)

Keller Williams Realty New Orleans, each office independently owned and operated. Alicia Lagarde Craig, agent licensed in the State of Louisiana. 6/09

First-Time Home Buyer Class

2009-06-13T14:09:00.006-05:00

Blogging From The Desk of Alicia Lagarde-Craig

Don't Miss This Fabulous Opportunity to attend a First Time Home Buyers Class hosted by Keller Williams Realty New Orleans. It will be held on Tuesday June 23, 2009 at Keller Williams Realty in New Orleans. This class will be held from 6:00 pm - 7:30 pm. (Class Details Below)

Come find out why Keller Williams is the 3rd largest Real Estate Company in the United States. It's because your success is our goal!

Class Details:

Event:

First Time Home Buyers Class @ Keller Williams Realty New Orleans

Address:

8601 Leake Avenue

New Orleans, LA 70118

Time:

6:00 PM - 7:30 PM

Goal:

To teach the steps necessary to buy and maintain a home.

Registration:

Call or Email to Reserve. Seating is limited!

Alicia Lagarde Craig @ 504-382-3724 or AliciaLagarde@kw.com

Jeff Craig @ 504-352-6190 or JeffCraig@kw.com

$8000 Tax Credit- Updated Guidelines 5.29.2009

2009-05-29T11:52:00.003-05:00

Blogging From The Desk of Alicia Lagarde-Craig

Thousands of first-time homebuyers will be able to get short-term loans so they can quickly make use of a new $8,000 tax credit that was designed to boost the battered U.S. housing market.

The Federal Housing Administration on Friday released details of a plan in which borrowers who use FHA loans can get advances from lenders that effectively let them receive the credit before they complete their taxes.

The FHA had no estimate of how many borrowers would qualify. But the agency, which backs about a quarter of new home loans, is projected to guarantee about 2.2 million loans in the next budget year.

Borrowers can claim the credit by filing an amended 2008 tax return or can wait for their 2009 return.

The change "will present an enormous benefit for communities struggling to deal with an oversupply of housing," Housing Secretary Shaun Donovan said in a statement.

Borrowers will still have to come up with the FHA's required 3.5 percent down payment, unless they work through a state or local housing program. But officials say the money can still be used for closing costs or a larger down payment.

The tax credit was included in the economic stimulus package signed by President Barack Obama in February.

Send all questions to: AliciaLagarde@kw.com

Pathway to Homeownership Soft-Second Mortgage Loan Program

2009-05-12T13:50:00.002-05:00

Blogging From The Desk of Alicia Lagarde-Craig

Pathway to Homeownership Soft-Second Mortgage Loan Program

Own a Home. This is the Path.

Receive up to $65,000 soft second home mortgage at 0% interest.

100% forgivable in 10 years with continuous owner occupancy; payable only upon sale or refinance.

Up to $10,000 closing cost assistance grant also available.

Eligible Properties:

*One or two unit residences within one of the Orleans Parish Housing Opportunity Zones (see map on http://www.financeauthority.org/), or when the residence is part of the New Orleans Redevelopment Authority (NORA) Re-development Portfolio or when the seller can demonstrate at least $5200 of damages realized from Hurricane Katrina and/or Rita within Orleans Parish

*Maximum Property values: One unit, either New or Existing: $289,704; and Two unit, Existing Only: $370,884

*All properties must meet City Building Code and Zoning Code requirments as well as the physical standards and inspection procedures of FHA/VA, Fannie Mae or Freddie Mac mortgage loan product chosen by the borrower

*Newly constructed, reconstructed or renovated homes are eligible. Modular or panelized construction is also eligible

Eligible Borrowers:

*Have not owned a home within the last 3 years or no longer own your home because of a divorce or death of a spouse

*Have not received payments from Road Home under the 'sell' or 'relocate' option *Family incomes at or below the following:

1 person $50,280

2 persons $57,360

3 persons $64,560

4 persons $71,760

5 persons $77,520

6 persons $83,280

7 persons $89,040

8 persons $94,680

*12 Hour homebuyer education required

*Minimum personal investment of 1% of purchase price or $1500, whichever is greater

Steps to Buying Your New Home:

1. Visit the Finance Authority of New Orleans website to learn about the program at http://www.financeauthority.org/.

2. Gather your financial information: tax returns and W-2s for the last three consecutive years, pay-stubs within the last three months, financial documents related to all your sources of income, listing of all real estate investments, listing of all investments in stocks and/or bonds, listing of the balances due to any creditor or for any credit account owed.

3. Determine the first mortgage loan amount you can afford. You can do this by registering with a homebuyer training organization OR visiting a participating lender (see a list of homebuyer training organizations and participating lenders at http://www.financeauthority.org/). OR, you can complete a pre-application at our website http://www.financeauthority.org/ and a home counselor will call you.

4. Register with a participating homebuyer training organization certified by the Louisiana home-buyer Training Collaborative, Inc. and take the required 12-hour homebuyer education and training course. See our website for a list.

5. Complete a loan application with a participating lender. Please bring all documents gathered in step two to the participating lender.

6. Negotiate an Agreement to Purchase a home with the seller of a home in a Housing Opportunity Zone OR with New Orleans Redevelopment Authority (NORA) OR with a seller within Orleans Parish who can demonstrate $5200 of Hurricane Katrina/Rita damage. You should seek the assistance of a realtor in negotiating the agreement to purchase.

7. Close on your new home loan.

8. MOVE INTO YOUR NEW HOME!

To learn more about the Pathway to Homeownership Soft-Second Mortgage Loan Program, call (504) 524-5533 local or (877) 524-5533 toll-free

VISIT US AT http://www.financeauthority.org/

This home mortgage loan program is made possible by Louisiana Recovery Authority, State Office of Community Development, City of New Orleans & The Finance Authority of New Orleans. The Finance Authority does not discriminate on the basis of age, sex, religion, national origin, physical handicap, political or union affliation. No person, solely on the basis of any of the above factors, shall be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination under the loan program operated by The Finance Authority of New Orleans. Effective Date: February 18, 2009

$65,000 Soft Second Mortgage Offered to First Time Homebuyers in Orleans Parish

2009-03-22T21:08:00.009-05:00

Blogging From The Desk of:
Alicia Lagarde-Craig

The ‘Pathway to Homeownership’ Soft-Second Mortgage Loan Program offers soft-second home mortgage loans through participating lenders up to $65,000 at 0% interest with payments on the loan deferred until sale or refinance. In addition, the program offers up to $10,000 closing cost assistance when buying a home that will be your principal residence. The actual amount of the soft-second loan and closing cost grant received will be determined by need and annual household income, since the goal of this loan program is to cover the ‘gap’ between the highest affordable first mortgage loan for which you qualify and the purchase price or value of the home. The minimum amount of the first mortgage loan must be equal to at least 50% of the lesser of the purchase price of the home or the appraised value.

ALL BORROWERS OF A ‘PATHWAY TO HOMEOWNERSHIP’ SOFT-SECOND MORTGAGE LOAN MUST COMMIT TO REMAIN AN OWNER-OCCUPANT AT THE FINANCED HOME FOR AT LEAST THREE (3) YEARS. THOSE BORROWERS WHO DEMONSTRATE CONTINUAL OCCUPANCY FOR FIVE (5) YEARS WILL RECEIVE LOAN FORGIVENESS EQUAL TO 25% ON THE BALANCE OF THEIR ‘PATHWAY TO HOMEOWNERSHIP’ SOFT-SECOND MORTGAGE LOAN. AND AN ADDITIONAL 15% FOR EACH YEAR THEREAFTER FOR WHICH BORROWER DEMONSTRATES OWNER-OCCUPANCY.

The ‘Pathway to Homeownership’ Soft-Second Mortgage Loan Program does not discriminate on the grounds of race, sex, religion, age, disability or national origin.

To learn more about the ‘Pathway to Homeownership’ Soft-Second Mortgage Loan Program contact Alicia Lagarde Craig at (504) 382-3724 or Jeff Craig at (504) 352-6190. This is a great opportunity to get into your dream home and have an affordable monthly note.

Please email questions or comments to AliciaLagarde@kw.com

First-Time Home Buyer $8000 Tax Credit (2009)

2009-03-14T09:28:00.014-05:00

Blogging From The Desk of Alicia Lagarde-Craig

The recently passed American Recovery and Reinvestment Act, including the $8,000 tax credit for first-time buyers, presents an excellent opportunity for buyers ready to take advantage of today’s affordable market. Nonetheless, many first-time buyers might be unsure just exactly how the tax credit works or how it improves upon a similar credit offered last year.

I hope this blog will help you to understand the advantages of the $8,000 tax credit and capitalize on this financial incentive before it is no longer available. If you have any questions, please call Alicia at (504) 382-3724.

The American Recovery and Reinvestment Act of 2009 offers an $8,000 tax credit for first-time buyers who purchase a home on or after January 1, 2009 and before December 1, 2009.

Here are the specifics of the $8000 tax credit:

*The temporary credit is only available for home purchases made from January 1, 2009, but before December 1, 2009 and is equal to 10 percent of the cost of the home, up to a maximum credit of $8,000. (For example, a home purchased for $80,000 or more would qualify for the full $8,000 credit, while a $50,000 home would only qualify for 10 percent, or $5,000).

*Only first-time homebuyers can take advantage of the tax credit. A first-time buyer is defined under the tax credit as an individual who has not owned a home in the last three years. For married joint filers, both must meet the first-time homebuyer guidelines in order receive the tax credit when filing a joint return.

*There are income guidelines on the tax credit. Individuals with an adjusted gross income up to $75,000 (or $150,000 if filing jointly) are eligible for the full tax credit. The credit is phased down for those earning more and is not available for those with an income above $95,000 (or $170,000 if filing jointly).

*Buyers claim the credit on their federal income tax return to reduce their tax liability. If the credit is more than their total tax liability for that year, the buyer will get a refund check for the balance.

*Eligible properties include anything that will be used as a principal single-family residence. Single-family residences also including condos and townhouses.

*The new tax credit does not have to be repaid if the buyer stays in the home at least three years. But if the home is sold before that, the entire amount of the tax credit is recovered from the sale. People who purchased homes under the 2008 $7,500 tax credit program will still be required to repay that credit to the government over a 15-year period.

Send comments to AliciaLagarde@myNOLAhome.com

Will home values stop DECREASING?

2008-12-01T12:51:00.003-06:00

Blogging From The Desk of Alicia Lagarde-Craig

Economists at the semi-annual National Association of Home Builders forecast conference are saying not soon, but that the end is in sight. The consensus says that home prices will bottom out as early as the middle of next year.

The latest conference was downbeat, but with a glimmer of hope-many of the economists seemed optimistic that the government's bailout plan, which includes buying toxic mortgage debt, will lead to housing's recovery. More affordable prices, pent-up demand, incentives on new homes, fewer housing starts and expected declines in interest rates for fixed-rate mortgages also should help ease the crisis.

Although economist agree that we are in a recession-despite lack of official government confirmation-and have been for many months, several characterized the current financial turmoil as an overreaction, given the country's narrowing trade gap and strengthening the dollar.

But even if the stock market bounces back, don't expect housing to rally right away. The forecasters pointed out numerous factors that are likely to drag out housing's convalescence: Unemployment is currently at 6.1%, compared with 4.4% last year, and it is projected by some to reach 8% next year. Home prices have already tumbled 20% from their peak three years ago, and will probably sink another 10% before stabilizing. Some 12 million homeowners currently owe more on their mortgages than the houses are worth, meaning more foreclosures and a drop in the already-weakening homeownership rate. And bloated supply will continue to outpace demand in most parts of the country for another year or two.

As terrible as this is for people who have lost or will lose their homes, overall, this painful contraction is necessary-a counterbalance to the era of easy money and over-leveraging. When it is over, homes won't be worth as much as they were before, but their prices will be more in line with people's incomes. Loans won't be given to everyone with a pulse, but they will be available to people with good credit. The market will be back to normal.

Perhaps by then we'll have learned some lessons: Just because someone is offering to loan you money doesn't mean you should take it. Don't assume lenders and regulators will look after your interests. Before you sign a contract, read the fine print. Since neither job security nor rising equity is guaranteed, stick with fixed-rate loans. Don't live beyond your means. Pay your bills on time, and keep enough cash on hand to pay for at least six months of expenses. Think of your house primarily as shelter, not a cash machine.

And finally, don't despair. Remember that markets are cyclical; the bigger the binge, the worse the hangover. We'll have to suffer this one for months or even years to come. But if we learn not to over-indulge, we'll all wind up healthier in the long run.

~Alicia Lagarde Craig

Are You Too Busy For Success?

2008-10-29T14:47:00.004-05:00

Blogging From The Desk of Alicia Lagarde-Craig

Are you too busy for success?

If your best clients think highly of you, why aren’t they referring business your way? Your unconscious actions could be the impediment. Many of us telegraph our importance by talking about how busy we are. We speak quickly, pass off clients’ routine questions to someone else, take cell phone calls during meetings, or leave a caller on hold for more than a few seconds.

There’s nothing wrong with being busy. But looking busy can be a problem. Your clients may feel the need to protect their relationship with you by not adding to your workload. Worse still, you may be setting up your best clients to be poached. If they’re concerned about imposing on you, they’ll be relieved to find someone—anyone—who’s willing to take the time to answer their questions.

Keeping established clients is essential to finding new ones. These 10 ideas, many from Max Dixon, a Seattle-based communication coach, will help you make others feel important—and encourage them to refer friends and family your way.

1. Create a ritual. Between points, great tennis players will often adjust their racket’s strings. Their strings don’t need adjusting. These players have just trained themselves to perform a ritual so that they can maintain their concentration, regardless of what’s happening in the match.Before an appointment, stop what you’re doing and sit or stand silently for a full 10 seconds. Take a deep breath. This lets you collect your thoughts and increases your oxygen intake, which has a calming effect. The calmer you are, the more attentive you can be to clients.

2. Perform a slow behavior. This can be as simple as walking over to the client and shaking hands while making eye contact. The key is to do it slowly and deliberately. Spending even two extra seconds on this gesture will send the message that you consider this person important.

3. Enunciate your vowels. People who are in a hurry tend to emphasize their consonants, making their language sound unemotional and clipped. By sounding out vowels when you speak, you express yourself with compassion. You and your client will be more emotionally involved in the conversation and feel more connected. In addition, your word speed will slow, giving the conversation more impact.

4. Carry out important conversations away from your desk. At the office, meet with clients in a conference room. Moving out of your position of authority demonstrates that the person is important enough to meet on an equal basis.

5. Listen to people. I’m often asked for advice. For years I’d get a rough idea of the problem then launch into possible solutions. In one typical encounter, after I’d talked myself out, the person said, “Well, I was thinking about doing such and such. What do you think?” She already had the answer and just wanted my confirmation.Now when someone asks for advice, I ask, “What do you think you should do?” Then I listen. This shows respect and sends the message that you believe the person is smart enough to have the answer.

6. Stay with people a beat beyond. Do your conversations have an air of “let’s get this over with”? One of the symptoms is responding before the other person finishes. To counteract that impulse, do what Dixon recommends: Wait at least two full seconds after the other person stops speaking before responding. This ensures the person is finished and gives you time to consider your response.One good friend puts his telephone on mute during conference calls so that he can concentrate on what others are saying. If a question is directed to him, he must release the mute button before he can speak. This gives him a moment to collect his thoughts before he speaks.

7. When clients leave your office, walk them to the door. It’ll demonstrate your respect and give you the chance to emphasize, with a handshake or another gesture, the connection you’ve created.

8. Read a life-management book, such as What Matters Most from Franklin/Covey. People who are critical of themselves or irritated by where they are in life tend to be irritated with everyone around them. When people know their values—for instance, that financial stability ranks below family life—they tend to be more at peace.

9. Write a description of your ideal client and jettison those who are farthest from that ideal. Most professionals are afraid to give up clients. But there’s an important reason to do so: Parkinson’s Law. It means a job expands to fill the time allotted. So if you have 200 clients, you’ll fill your days taking care of those 200 clients; if you have 100 clients, you’ll fill your time servicing 100. With fewer, you’ll be able to develop a closer, more trusting relationship with each client.

10. Create a system that lets your clients know, when they least expect it, that they’re important to you. Have you ever received a letter of appreciation or a gift that you kept for a long time? I’m not talking about sending flyers or calendars—I’m talking about sending personalized letters and gifts that your clients or prospects don’t expect. By mailing one appreciation card a day, you send a powerful message to clients that they’re worth your time. Isn’t feeling special something all of us want?

Slowing Foreclosures May Mask Woes

2008-08-11T11:07:00.000-05:00

Blogging From The Desk of Alicia Lagarde-Craig

When the research firm RealtyTrac Inc. releases its latest foreclosure report Thursday, don't be surprised if the number of filings declines again.
Dusan Petricic
Last month, RealtyTrac reported that foreclosure filings totaled 252,363 in June, down 3% from the previous month. Some analysts are expecting the July data to show another decline or very little change.
If that happens, could the improvement be a sign that the foreclosure problem is ebbing? Probably not. The data may reflect several developments aimed at reducing foreclosures, including new state and municipal laws that put a temporary moratorium on foreclosures. Such laws are designed to give homeowners more time to work with their lenders and modify troubled loans. Some cynics say the laws are designed to give the appearance that the housing crisis is easing ahead of the November elections.
Whatever the reason for the laws, they are starting to kick in. A new state law in California requires lenders to wait an additional 30 days after a homeowner misses the first payment before filing a default notice and use more "due diligence" to attempt a loan modification. The law took effect July 8.
In Massachusetts, homeowners now have a three-months grace period after they default on their mortgage before the lender can file to foreclose. The Massachusetts law is credited with an 84% drop in foreclosure petitions -- the first step in the foreclosure process -- filled statewide in June from a year earlier, according to the Warren Group, a Boston-based research firm.
"The 90-day cure period will lead to more dialogue between borrowers and lenders and increase the prospect that loans can be modified," says Dan Crane, Massachusetts's undersecretary of Consumer Affairs and Business Regulation.
Several other states are following, including New York which passed a bill last week that requires lenders to send a preforeclosure notice to certain borrowers at least 90 days before foreclosure proceedings may be initiated.
Mortgage companies and lenders on their own are also showing more patience with borrowers who fall behind. Mortgage giant Fannie Mae, for example, said it will increase fees it pays loan-servicing companies, which collect payments, for "workouts" that prevent foreclosures. Freddie Mac also said it will give servicers more time to pursue workouts.
Critics, however, say the new laws are only delaying inevitable foreclosures and may signal a false bottom in the housing market.
"It's all smoke and mirrors," says Vincent Valvo, group publisher at the Warren Group. "People are going to trumpet this and say foreclosures are going down. But three months from now it will surge right back up."

Why You Lose Customers & What To Do About It

2008-08-05T20:58:00.005-05:00

Blogging From The Desk of Alicia Lagarde-Craig and Jeff Craig

Do you know the reasons businesses lose customers?

I'll bet you're going to be surprised about what a major survey showed.

1% die - guess there's not a lot we can do about that.

3% move away - not much you can do about that either if your business only sells locally.

5% follow a friend or relative's advice and change suppliers for what you do. If you were doing a good job of communicating your Unique Selling Point (USP) and why they should do business with you, this shouldn't happen - in fact, you should be getting referrals from satisfied customers.

9% change because they perceive a better value is available elsewhere - same response as the last one.

14% change because of product or service dissatisfaction - you can't please everyone, but you shouldn't lose that many for this reason. All these reasons combined only add up to 32% , what about the rest?

You are not going to believe it, but...68% leave because they don't feel "wanted" or valued. This number should be zero! If you are not contacting all your customers frequently with offers, "what's new", or other reasons to do business with you, they'll leave. Contact your customers at least once per month, this is a must!

Dan Kennedy has a great way of explaining this. He says your customers are your "herd" and you're a rancher. It's your job as rancher (business owner) to grow your herd and fence them in to prevent others from stealing them! Ignore them (don't build & maintain fences) at your peril - they'll wander off or someone will steal them from you!

It is MUCH more expensive to get a customer than to keep one so my advice to you is:

1. If you are not contacting your customers at least once a month but you are spending money to get new customers, STOP! For most businesses, your first priority should be to nurture and build relationships with your customers with frequent contact.

2. Your second priority should be to set up systematic referral and word-of-mouth programs to bring you referrals from those customers.

3. Next, and only AFTER you have done steps # 1 and # 2, test different methods to acquire new customers. Do this only after you have tracking set up to evaluate the cost effectiveness of every dollar you spend compared to the business that results.

To Your Success!

5 Feng Shui Concepts to Help a Home Sell

2008-07-14T15:30:00.001-05:00

Blogging From The Desk of Alicia Lagarde-Craig
To put the best face on a listing and appeal to buyers who follow feng shui principles, keep these tips in mind.

1. Pay special attention to the front door, which is considered the “mouth of chi” (chi is the “life force” of all things) and one of the most powerful aspects of the entire property. Abundance, blessings, opportunities, and good fortune enter through the front door. It’s also the first impression buyers have of how well the sellers have taken care of the rest of the property. Make sure the area around the front door is swept clean, free of cobwebs and clutter. Make sure all lighting is straight and properly hung. Better yet, light the path leading up to the front door to create an inviting atmosphere.

2. Chi energy can be flushed away wherever there are drains in the home. To keep the good forces of a home in, always keep the toilet seats down and close the doors to bathrooms.

3. The master bed should be in a place of honor, power, and protection, which is farthest from and facing toward the entryway of the room. It’s even better if you can place the bed diagonally in the farthest corner. Paint the room in colors that promote serenity, relaxation, and romance, such as soft tones of green, blue, and lavender.

4. The dining room symbolizes the energy and power of family togetherness. Make sure the table is clear and uncluttered during showings. Use an attractive tablecloth to enhance the look of the table while also softening sharp corners.

5. The windows are considered to be the eyes of the home. Getting the windows professionally cleaned will make the home sparkle and ensure that the view will be optimally displayed.

5 MISTAKES HOME SELLERS MAKE

2008-07-07T12:46:00.002-05:00

Blogging From The Desk of Alicia Lagarde-Craig

5 MISTAKES HOME SELLERS MAKE

1. ASKING TOO MUCH

The single biggest mistake folks make is setting their asking price too high. In today's down market homeowners need to price conservatively or they risk turning off potential buyers, says Michael Corbett, author of "Ready, Set, Sold." Figuring out how to set the price is tricky. Gone are the days when you can expect to sell your home for as much as your neighbor did just six months ago. Existing home prices have fallen 7.7% over the past year, according to the National Association of Realtors. So rather than looking at how much homes in your area sold for six to 12 months ago, compare prices for similar properties currently on the market. If you see a listing for a house that's sitting unsold for a few months, chances are the owners are asking too much and you'll want to set your price lower, says Corbett.

2. QUESTIONING THE FIRST OFFER

Too many sellers reject their first offer, even if it's close to or at full asking price. Holding out for more money is a strategy that rarely works, especially at a time when credit is tight, lending requirements for mortgages are in flux and potential buyers have less purchasing power.
The reality is that in any market a home's first offer is often its best, says Elaine Clayman, a real estate broker with Brown Harris Stevens. Typically, educated buyers will seize on a property they like -- with a competitive bid -- as soon as it comes onto the market, she says. Of course, given the glut of houses on the market, sellers should expect to receive some low-ball offers. Just don't assume that you'll get better bids the longer you hold out. As Clayman warns, the more time a home sits unsold, the greater chance a seller will have to reduce his price.

3. NOT RESPONDING TO ALL OFFERS

What if you get an offer that's simply too low? Don't reject it outright. See if you can negotiate. First of all, you can't blame someone for testing the market -- after all, in today's market, many buyers are confident that they have the upper hand. Secondly, by entering into negotiations with one party, you'll gain leverage with other potential buyers, says Corbett. Most importantly, it allows you to tell brokers that your property is in play and sends a message that if someone is interested, then he better present a competitive bid quickly.
Just don't get cocky. During this process, it's crucial for sellers to set a realistic bottom-line price they're willing to take, even if it's several thousand dollars below asking, says Corbett

4. USING A STAGER

In a depressed market, it's more important than ever that your property stands out from the competition. But unless you're trying to sell a multimillion-dollar mansion, you don't need to pay a professional to stage your home. There are a number of free or inexpensive things you can do on your own to get your house into show condition. Most importantly, paint the walls. Nothing does more to brighten up a place, says Peter Comitini, a real estate broker with Corcoran Group. Next, he recommends getting rid of all the clutter, excess furniture and family knickknacks. Finally, make all the necessary repairs before your first open house. If a buyer sees a small problem, say, a leaky faucet, he's likely to wonder about larger issues like the furnace or roof.

5. PICKING THE WRONG BUYER

Now more than ever, sellers need to select their buyers carefully. As we mentioned earlier, thanks to all the defaults in the subprime market, lenders are tightening their lending practices, making it more difficult for consumers to qualify for mortgages. So it's critical to find a buyer with a recent prequalification letter (issued no later than four to six weeks ago) for a loan.
Next, watch out for buyers who need to add contingencies to the contract, including a clause stating that the deal won't close until they sell their own home. A better bet is to look for cash-flush first-time home buyers or someone who has already unloaded his existing house. In a slowing market it's difficult to estimate how long it could take your buyer to find someone to purchase his dwelling, warns Brown Harris Stevens' Clayman. And if that property doesn't go for as much as he expected, that person may no longer be able to afford your agreed-upon price

2008-06-30T10:55:00.003-05:00

Blogging From The Desk of Alicia Lagarde-Craig
10 Fastest-Growing Real Estate Markets

Yes, even amid the housing crisis, parts of the U.S. are still expected to post price gains in the coming year, according to Money Magazine. Here's where to look.

The housing implosion is nowhere near over. In 75 of the 100 top U.S. cities, prices are expected to fall in the next 12 months according to Fiserv Lending Solutions.

The S&P Case/Shiller Home Price Index, which tracks 20 of the largest housing markets, showed prices plummeting by 12.7% in the 12 months ending February. That's the biggest fall since the index began tracking prices in 2000.

Meanwhile, foreclosure filings more than doubled in the first three months of 2008, spiking 112%. So far this year 156,463 families have lost their homes to repossessions. Many markets won't hit bottom till late 2009 or even 2010.

Pity the residents of Stockton, Calif., whose homes are likely to lose more than half of their 2006 value. But if you happen to live in Texas -- or any of the other cities below -- congratulations:
The housing tornado passed you by.

1. McAllen, Texas
12-month forecast: 4%Median home price: $109,000One year price change: 2.1%Five year price change: 23.3%Change in foreclosure rate: 23%

2. Rochester, N.Y.
12-month forecast: 2.7%Median home price: $121,000One year price change: 3.4%Five year price change: 20.1%Change in foreclosure rate: 5%

3. Birmingham, Alabama
12-month forecast: 2.7%Median home price: $156,000One year price change: 2.9%Five year price change: 29.4%Change in foreclosure rate: 20%

4. Syracuse, N.Y.
12-month forecast: 2.6%Median home price: $126,000One year price change: 0.8%Five year price change: 29.5%Change in foreclosure rate: 27%

5. Buffalo/Niagara Falls, N.Y.
12-month forecast: 2.4%Median home price: $105,000One year price change: 1.6%Five year price change: 24.5%Change in foreclosure rate: 14%

6. New Orleans, La.
12-month forecast: 2.2%Median home price: $158,000One year price change: 1%Five year price change: 43.7%Change in foreclosure rate: 49%

7. Scranton, P.A.
12-month forecast: 2.2%Median home price: $128,000One year price change: 7.2%Five year price change: 41.1%Change in foreclosure rate: 8%

8. Grand Rapids, Mich.
12-month forecast: 1.9%Median home price: $124,000One year price change: -3%Five year price change: 8.3%Change in foreclosure rate: 37%

9. Baton Rouge, La.
12-month forecast: 1.9%Median home price: $170,000One year price change: 5.7%Five year price change: 38.3%Change in foreclosure rate: 14%

10. El Paso, Texas
12-month forecast: 1.8%Median home price: $134,000One year price change: 6.9%Five year price change: 51.9%Change in foreclosure rate: 32%

By: Money Staff
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