It’s time to reduce, re-use and recycle and get your house in order whether you are staging and selling or just de-cluttering for your own peace of mind.

If you are planning on selling your home or you are getting ready to move you are likely already overwhelmed by the crop of ‘stuff’ that has grown, cultivated and flourished in your closets, basement and attic…and let’s not forget the garage too,  since you moved into the place.

It can be hard to let go of stuff.  One way that makes it easier for me is to know that my favorite jeans from yesteryear or that treasured platter from a flea market of days past will find its way into a new home and into the hearts of a new family of treasure hunters.

I get great delight in the thought that things that have given us pleasure or joy will do the same in the lives of a new family which helps me donate versus hoard more stuff that we don’t need.

So, time for my annual (and popular!) list of where to donate, recycle or get rid of, well, just about anything you can think of!

For your recycling pleasure click here for a link to statewide resources collecting recyclables.

To donate household items, visit Household Goods Recycling of MA, and click here for a comprehensive list of other organizations that accept a variety of household donations.

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Thanks to all who supported our Fairway Gives Back to Boylston Street: B2B Boston Strong event last Wednesday-it was a success, despite the rain.

Fifty people enjoyed special lunches at various restaurants, and over 100 Gift Bags were distributed to shoppers!

We appreciate the enthusiasm and support everyone has shown, and hope that people will continue to visit and support the many wonderful businesses on Boylston Street.

Fairway is continuing to fundraise locally and nationally for the One Fund. We will provide a final tally in the coming weeks.

Like many we are looking for a way to support those impacted by the tragic events on April 15th. In addition to those who were physically injured or killed during the marathon bombing, there are many who have had their lives, and lively-hoods destroyed. Reading about the lost revenue, damaged storefronts and inventory, and fears that some businesses may not survive has really hit home for those of us who are small business owners.

In light of this, my branch has decided to sponsor a day of shopping on Boylston Street in Boston on May 8^th.  The day will include round-trip bus transportation to and from Boston, a list of participating shops and restaurants, and special offers and promotions provided by participating stores.

We are grateful for the enthusiasm and support we have gotten from so many who would like to help out including: the Newton Needham Chamber of Commerce, the Greater Boston Association of Realtors, and the Cambridge Community of Real Estate Professionals.  We anticipate up to 200 people will attend with buses coming from Needham, the South Shore and Cambridge.

We have reached out to 20 businesses on Boylston St., all of whom are interested in participating in some way. Some restaurants will be featuring special menus and drinks, other businesses will provide special promotions or coupons for participants.

We have gotten wonderful feedback so far with so many people excited to participate.  We are grateful for the opportunity to do something constructive for those who, while perhaps not physically injured have had their lives, and lively-hoods, impacted nonetheless.

If you are interested in participating, please contact Amy at asteinberg@fairwaymc.com.  If you cannot make it-you can still support us by keeping your fingers crossed for good weather on May 8th!

Market forces have shifted and today it’s a seller’s market in many communities. Here are some tips for frustrated buyers and buyer’s agents to help get offers accepted!

Make a Large Down Payment – the larger your down payment the more attractive your offer. Why? Because if the appraisal comes in low the buyer with the largest down payment may not have their financing impacted by a low appraisal and can move forward on the purchase without further negotiation.

Pay Cash – If you can, make a cash offer. If the purchase timeframe allows you can still get a mortgage or you can mortgage the property after the purchase transaction is concluded.

Date Flexibility – if you can determine exactly what the sellers’ need in terms of closing dates and then meet those dates – your offer could win even if the price you are offering is lower than others. You can go for an extended closing or even offer to rent the property back to the seller for up to 60 days. Meeting challenging timing needs for the seller can make you the perfect buyer!

Removal of Contingencies/Financing–  We are never comfortable recommending that a buyer remove their mortgage contingency unless they can truly pay cash for the property- BUT we certainly know a winner when we see one and often have buyers who remove their mortgage contingencies with a very THOROUGH pre-approval process.

For added protection – IF you choose to remove a mortgage contingency or make a cash offer or one with a large down payment, the buyer can put an appraisal contingency into their offer so that they have options if the property appraisal comes in low.

Removal of Contingencies/Home Inspection - If you are knowledgeable about home construction or have a friend or family member who is an expert, you might want to consider removing your inspection contingency. Of course you will have no recourse if a structural problem arises that you were not aware of…  Removing contingencies also removes protection for the buyer so keep that in mind.

The Personal Approach – Introduce yourself!

Selling a home is a very emotional experience for many people and often they want to know that their home is going to a ‘good’ family or person, especially if this was the sellers first home or they raised their family there.  A letter from a perspective buyer introducing themselves and explaining why buying this property means so much could make a difference in the offer process and negotiation.

Don’t Give Up

It can be really disappointing and frustrating for buyers today.  Don’t give up!  As the market improves more sellers will be ready to put their property on the market increasing inventory and perhaps eliminating the multiple offer effect that we are seeing in some areas today.

It is anticipated that rates will remain low for the foreseeable future.  However, even if not at their record lows it is important to keep rate movement in perspective.  Rates can go up much more before they start to come up off the historic lows that we are seeing today.

“Jake my 12 year old was close enough to see the flashes. He was supposed to be at the finish line but wasn’t able to quite get there. He was with a friend but no adult. So lucky….  Others weren’t so lucky.  20 minutes of not being able to reach him… just typing this is bringing back unrelenting tears and a giant knot in my throat. “

Zack Assarian – loan officer Fairway/Needham, father, son, husband, friend…

By reading this you are now 6 degrees away from Jake who had such a terrifying day and his dad Zack who was equally frightened and from all of us here in the greater Boston area.  With today’s intensely connected world we are all just 6 degrees away from everyone…  We all live in Boston, or Iraq, Oklahoma City or Gaza we are all connected and we must hold strong together, honor our differences and shed our fear of those differences…

As actor/comedian Patton Oswalt said in his now viral Facebook post:

“This is a giant planet and we’re lucky to live on it but there are prices and penalties incurred for the daily miracle of existence. One of them is, every once in a while, the wiring of a tiny sliver of the species gets snarled and they’re pointed towards darkness,” he wrote.

“But the vast majority stands against that darkness and, like white blood cells attacking a virus, they dilute and weaken and eventually wash away the evil doers and, more importantly, the damage they wreak. This is beyond religion or creed or nation. We would not be here if humanity were inherently evil. We’d have eaten ourselves alive long ago.

“So when you spot violence, or bigotry, or intolerance or fear or just garden-variety misogyny, hatred or ignorance, just look it in the eye and think, ‘the good outnumber you, and we always will.’ ”

THE GOOD OUTNUMBER YOU AND WE ALWAYS WILL!!!

With Peace your friends at Fairway

April is Financial Literacy Month and we will be providing helpful information for you and your clients throughout all of April.

But first, a few warnings…read below for necessary information regarding your self-employed borrowers, and how to protect yourself from identity theft and tax fraud!

Warning:

Tax time could be gotcha time….

If your borrower is self-employed AND they need their income in 2012 to qualify for their mortgage because it was higher than their 2011 income…Then  they have to have filed their federal tax returns by 4/15 -AND- the lender will have to be able to retrieve tax transcripts directly from the IRS that confirms the tax return data.

As April 15th approaches there will be delays in the turn times of tax transcripts. Be careful as this issue could delay a closing for you!

Be sure to encourage your clients to address this with their lenders in order to understand if this will be an issue for them; if this could delay their closing; or if they are properly pre-approved for a loan before home shopping.

Warning:

File those tax returns ASAP!

Since many of you are self-employed… BEWARE of tax fraud and identity theft…. Others  filing as ‘you’ to get your tax refund. Apparently this practice is rampant!

The Globe first wrote about this a few weeks ago, here.  Learn how to protect yourself with helpful information from the IRS here.  And Forbes writes a sobering article to counter some of what the IRS is recommending, highlighting that identity fraud/tax returns will reach a peak this year, and recommending that you file as quickly as possible to beat the “fraudsters” to it!

At Fairway we offer a free credit review and identity theft screening-so please feel free to call me today for yours!

With that in mind nothing is more important to your overall financial health than good credit.  We addressed this last year and thought this would be a good time to update you on the current credit environment.

Your credit profile impacts multiple areas of your life. The cost of anything that you purchase utilizing credit is impacted by your credit scores; insurance such as home owners, life and auto are often priced according to perceived credit risk.  In addition, today many employers require a credit review as part of a background check on any new employees as do many landlords for prospective renters.

With credit driving so many of your financial decisions it is important to fully understand and manage credit wisely.

For example, a frequent question is, “If I don’t use a credit card doesn’t it make more sense for me to cancel that card?”

You would think that.  The truth is that one component to the credit scoring models is the percentage of available credit outstanding.  The scoring models reward consumers who keep their credit balances at 30% below their credit line on an individual credit card.  The models also look at total available credit across all credit lines – if you cancel an unused card that has a $1000 limit, you have reduced your total available credit and therefore increased the percentage of debt to available credit.

Understanding how to build a solid credit base for future purchases such as a home is key. Know how the type of credit, your credit history, payment history, credit inquires, and outstanding balances can impact your credit scores:  Learn more here.

For more questions on credit, such as when pulling credit may harm your credit score, or whom to contact if there is an error on a credit report, please visit a previous post we did on these topics and more, here.

For comprehensive information on all types of credit and debt issues, visit the Consumer Finance Protection Bureau (CFPB).

For more general information on credit and financial literacy, including resources to educate kids, visit the Financial Educators Council.

If you have specific questions about how your credit will impact your ability to qualify for a loan, please give us a call (781) 719-4664.

Before a client goes out and looks at their first house they need a pre-approval, specially in this competitive market where deals move quickly.

Fairway has always offered a pre-approval that is a guarantee of a closing due to our complete, thorough, 360 degree evaluation of the applicant’s financing ability.  (For info on a pre-approval vs. pre-qualification letter, click here).

We review all income and asset documentation to ensure that we have a complete financial snapshot and have not overlooked anything that could potentially derail a transaction further down the road.

Ninety percent of our loans are underwritten in house, with more complicated transactions getting a full underwriter review.  In short, we will not issue a pre-approval without fully evaluating all aspects of the transaction.

(If the property is a condo we will review the condo details to ensure that the property meets all secondary market guidelines).

Now -we are strengthening that guarantee even more by “Putting our money where our mouth is!” A pre-Approval letter from us is a guarantee of a closing-or we will reimburse up to $5,000 in related costs!

Certified Pre-Approval Guarantee: Closing Loans On Time, Under Budget, With No Surprises

Fairway will issue and guarantee the accuracy of “Fairway Certified” pre-approvals as long as:

• The borrowers personal financial qualifications stay the same or improve[1]
• The agreed upon loan parameters stay the same or improve[2]
• The property meets all necessary loan requirements[3]

If we are wrong we will:

• Reimburse documented short-term moving, relocating and/or storage expenses up to a maximum of $1500
• Reimburse any documented lost home inspection or appraisal expenses up to $1000
• Reimburse any forfeited earnest money expenses up to $5,000

Before you get started, check out our handy document check-list here.  Our complete Promise to the real estate community print document, including the Fairway –Certified pre-approval, can be found here.

A “Fairway-Certified” pre-approval is easy -just call or email us to getstarted-781-719-4664

A lack of listings is disabling our real estate market….

I have been house hunting with a friend and am surprised at how few properties there are on the market when we are in the best seller’s market we’ve seen in 5 years!

I asked some really smart, successful real estate agents how this could be, and they all seemed to believe that the biggest concern among sellers is that they will not be able to find a property to buy.  As a result, all but the highest priced markets (where greater financial resources often allow the ability to buy before selling) have a huge shortage of listings.

Of course, more and more listings are likely to come on the market as the snow melts and the mud dries… but right now it seems that there are at least 5 buyers for most high quality, correctly priced listings.

 Why is today a great time to sell and buy?

Values are the highest they have been in 5 years – if you tried to refinance and could not because of value, if you had a disappointing appraisal a year ago or even 2 months ago, your property is likely worth more, sales are active and demand is high.

 Interest rates are ridiculous!

The cost of homeownership will never be lower because of this rate environment.  If you wait to “buy up” you will miss out!

 Values may be rising, but…

That does not mean that you should wait for your home to appreciate more before selling, because the house that you want to buy will be appreciating at the same pace! And, it is likely that interest rates will also be higher.

If you are not in your “Forever Home,” a home that you plan to live in for years to come;  if you need more or less space; different amenities; want to change communities or move schools; need to be closer to work or public transportation; want more land around you… Whatever the reason you would trade the home you are in today for another-now is an excellent time to do it!

The real estate market is disabled by fear -Now is the time to do the research, learn your options and educate yourself.  The best way to overcome fear is to outsmart it.  Knowledge is power so learn your options today, and approach with an open mind the real estate possibilities available to you.

Next week we will introduce our new and improved Fairway Promise, featuring weekly updates for realtors and bi-weekly tips and information for consumers. And the first thing we will do for both groups is calm the fears and highlight important strategies for understanding, and capitalizing on this market including: when you should meet with your lender and what you should discuss; lending strategies in a challenging market to ensure successful closings; understanding all the options and how to choose the best one for you or your client.

So stay tuned…..