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Monday, June 07, 2004

How To Make Your House Show Great If You're Scrambling To Sell This Summer

by Michele Dawson

As interest rates begin to creep upward as summer draws near, many are scrambling to buy as soon as they can. That's good news for sellers, some of whom may be scurrying to get their houses on the market before interest rates head higher.

The National Association of Realtors reports that April's sales activity was 15.1 percent above the 5.77-million unit pace in April 2003 and was just 0.6 percent shy of the all-time high of 6.68 million posted in September of last year.

David Lereah, NAR's chief economist, had predicted May would finish strong, too.

"Given the favorable economic backdrop and strong sales momentum, a big number was expected for April home sales and it's likely we'll see another big month in May," he said. "Part of what we're seeing now is 'fence-jumping' from people wanting to buy a home before interest rates move higher. Even with an additional rise in recent weeks, the good news is that mortgage interest rates now appear to be leveling-out in the 6.3 percent range."

That fear appears to be playing out in parts of the country, including Texas.

"Last month we saw a huge increase in home sales as many buyers rushed to purchase homes because of fears of rising interest rates," said Wylie, Texas, Realtor Marie Walton.

For sellers, the push for buyers to act quickly may trigger the urgency to put your house on the market -- perhaps sooner than you originally planned.

If you fall into that category, you'll want to make sure your house shows well in order to attract the best offers possible. Some of the things you should do include:

Make a great first impression. Known as curb appeal, that first look a potential buyer has of your house will have a huge impact. On sunny summer days, you'll want your lawn, shrubs and flowers looking their best. That means keeping your lawn and greenery manicured and planting some annuals for some instant color. Keep the walkway and doorway clear. And make sure your door is clean. Consider a fresh coat of paint.

Hire a professional to inspect your air conditioner to make sure it's working as it should. Nothing would be worse than your unit going out on a scorching day when would-be buyers are touring the house. And be sure to turn it on when you know potential buyers will be looking.

Spruce up your back yard. The back yard has evolved into one of the most important rooms of the house, especially in warmer climates. Buyers will be attracted to back areas that have a nice deck or patio area with plenty of space for dining, grilling, and entertaining. And if you have a section of your yard that is child-friendly -- perhaps with a swing set, sandbox or play area -- play it up as much as possible.

Make your windows sparkle. Make sure your windows are nice and clean, especially if you live in a sunny region that doesn't get much summer rain.

Keep your walls light. If you're thinking about touching up the paint on your walls before you put your home on the market, keep the colors neutral and light. A light yellow or beige will make the room feel cooler than darker hues, like brick red or dark taupe.

Let the light in. Open blinds and curtains so plenty of light illuminates the home's interior.

Keep the pool clean. If you have a pool or spa, make sure it's clean. If you have a fence, make sure locks and latches are working properly.

Published: June 7, 2004

Based in California, Michele Dawson has extensive experience as a reporter and editor and now specializes in housing and real estate matters.

Copyright © 2004 Realty Times. All Rights Reserved.

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FTC Spells Out Final "Free Credit Report" Rules For Consumers Nationwide

by Kenneth R. Harney

Home buyers nationwide -- and the realty professionals who advise them -- will be entitled to free credit reports once a year from the big three credit bureaus, beginning later this year. That free access, in turn, should help consumers keep track of any inaccuracies or omissions in their credit files that could depress their credit scores and raise the cost of the mortgage money they need to purchase a home.

In a final regulation released Friday, June 4, the Federal Trade Commission spelled out the details of how and when 200 million-plus American consumers will be able to obtain their credit files at no charge.

The free report concept was mandated by the Fair and Accurate Credit Transactions Act, signed into law last December. Under the legislation, the three big bureaus -- Equifax, Experian and Trans Union -- will now be required to provide a free credit file to any consumer who requests one, but no more frequently than once every 12 months. The information in each bureau's files typically is different on each consumer, hence the need to see all three bureaus' reports.

To make the free-report program function efficiently, the FTC rule requires the bureaus to create what it calls a "centralized source," which consumers can contact via the Web, by toll-free telephone numbers, or by regular mail.

The centralized source, which presumably will be given a more elegant name sometime in the coming months, will be designed to handle millions of individual requests per month. If the volume of requests gets excessive at any given time, the new FTC rule allows the bureaus to put consumers on waiting lists for delayed processing. Absent such volume-related delays, the national credit entity will be required to deliver you free credit reports within 15 days of your request.

To apply for your files, you'll need to provide some personal identifying information, such as your Social Security number and home address. The centralized credit source will be equipped to provide credit scores along with the free files, but the bureaus will be able to charge fees for the scores.

The credit website will also carry advertising materials for other products the bureaus can provide, such as automated credit-monitoring services that alert you to sudden downward movements in your credit scores or credit transaction patterns indicating possible identity theft. These products will cost money and be available year-round.

Credit bureau executives say that marketing additional credit products is essential to help defray the costs of providing free credit reports. Also, they argue, the more regularly consumers keep an eye on their credit files, the more likely they will be to improve their "credit literacy" and spot problems before they apply for home loans.

When can you start receiving your free credit reports? Under the FTC's final rule, it all depends on where you live. During the summer and fall months this year, the bureaus will create the "centralized source" and get it up and running no later than Dec.1. On that date, all residents of what the FTC defines as the Western states will be able to begin requesting free reports. The Western states include Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming.

On March 1 next year, residents of the Midwestern states will get the green light. Those states are Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin. On June 1, 2005, residents of the Southern states will be able to file requests: Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, and Texas.

Finally, on September 1, 2005, the Eastern states will get their shot: Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia and West Virginia.

None of this precludes you, of course, from going online and ordering copies of your reports right now at relatively nominal fees (typically $9 per report) from any or all three of the bureaus' existing websites. Plus you can get your scores plus credit files at www.myfico.com, the website of Fair Isaac Co., the credit score developer.

Credit check-ups should be like medical or dental check-ups: You need to do them at least once a year, preferably more frequently, to make sure you don't have unexpected problems.

Published: June 7, 2004

Kenneth R. Harney writes an award-winning, nationally-syndicated column on housing and real estate from Washington, D.C. He is also managing director of the National Real Estate Development Center, a professional education company. He is a past member of the Federal Reserve Board's Consumer Advisory Council, a committee that by federal statute reviews all Fed actions on home mortgage, consmer credit and banking industry regulation.
He served as a member of the U.S. Department of Housing and Urban Development's Working Group on Computerized Loan Origination (CLO) systems, and is a member of the Editorial Board of the Fannie Mae Foundation's journal, Housing Policy Debate. He is the author of two books on mortgage finance and real estate.

Copyright © 2004 Realty Times. All Rights Reserved.

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