April 2010

Investment Exchange

An educational real estate newsletter

SCOUT THE NEIGHBORHOOD

Let's say you find a house you love. It's got everything you're looking for and is surprisingly affordable.

Only to then learn that it's located on the fringe of a crime-infested neighborhood.

Do you buy? Probably not.

That's because you don't want to live in a dangerous area. And you realize that the house's undesirable surroundings could make it next to impossible to sell at a later date.

In short, the right location is a key ingredient to a successful home purchase. A given neighborhood might not be right for everyone, but it has to be right for you.

"Neighborhood" is so much more than lines drawn on a map. It also means proximity to desirable amenities like parks, schools and shopping.

Where an area falls relative to other areas is important, too. How far will your commute be? What types of neighborhoods border yours and do you want them as neighbors?

No matter how good this buyers' market is, location is still king. A property purchase in a bad location is typically never a good idea — a rock-bottom price doesn't mean much if the house cannot be resold quickly and/or easily now or in the future.

So don't be lured in by the promising "fixer uppers" that distract you from unsavory locations. Make a list of what you want in a neighborhood and stick to it.

This month's edition of the "Investment Exchange" is designed to help you do just that.

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Site feature spotlight

NEW! FREE TOOLBAR DOWNLOAD

We're very excited about Foreclosure.com's latest and greatest online gadget to make your home search — and your life in general — that much easier.

It's a handy Internet toolbar, which is a thin little strip that goes at the top of your Web browser (Internet Explorer, Firefox, etc.) and contains all kinds of helpful applications and tools.

First and foremost is your instant access to the latest distressed property listings without actually being on Foreclosure.com.

Just use the toolbar's search window and you'll be directed to all the most recent results that match your search.

You can also log in to Foreclosure.com from the toolbar and get instant access to every last scrap of top-notch content we have to offer you. Just use the drop-down menu to skip straight to the page you want.

The toolbar also provides you with handy everyday-use tools, right at your fingertips.

Here are just a few:

• Instant email notification
• Google search
• Latest news search
• Current weather
• Login to Facebook, Twitter and our blog

There's more!

One of the coolest things about the Foreclosure.com toolbar is that you aren't tied to only what we give you. Just click on the little plus sign (+) you see on the toolbar to add whatever applications interest you.

News, sports, games, RSS feeds, music, TV shows ... the list is virtually endless. And it's all FREE!

The new Foreclosure.com toolbar is very easy to install. Just visit our toolbar page and click on "Free Download." It's currently available for Internet Explorer, Safari and Firefox on Windows, Macintosh or Linux operating systems.

Then start customizing the toolbar to make it exactly how you want it and get to work, browsing the millions of property listings waiting for you.

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Web site search tips

SORTING SAVES TIME AND MAKES MONEY

Foreclosure.com's search capabilities are number one for two important reasons:

1. We make them available to you first; and

2. We make it incredibly easy for you to find them.

Our amazing "sorting" feature is what ties these two capabilities together.

Once you've performed a search from either our homepage or the Foreclosure.com toolbar (Download right here), you'll get a list of search results, which by default are sorted by status.

However, by simply clicking on the heading of any one of the columns, you can reorder your search results. It's called "sorting." And it's a very powerful, time-saving tool.

You can sort by listing date, listing type, price, zip code, number of beds and baths and more. Then you can choose to have your results shown in ascending or descending order by clicking on the little red arrow.

In addition, you can sort by Zestimate®.

If you haven't heard of Zestimate® before, it's basically an automated estimate of the value of a property, which is derived from a complex formula that uses, among other criteria, a property's sale history and neighboring values.

If you sort your search results by Zestimate®, you'll immediately see the estimated values of your results in order. Calculate the difference between the Zestimate® and the listing price for each property to get an instant snapshot of what kind of a deal might be headed your way.

It could be instant equity!

Sorting by Zestimate® is a great time saver because you can immediately skip over any overpriced properties and zero-in on the ones that offer the most profit potential.

Get started on a Foreclosure.com search now.

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Hot off the press

SAY GOODBYE TO THE TAX CREDIT

The homebuyer tax credits are all but gone.

With the April 30 deadline only days away, buyers are almost out of time.

Those who have made eligible property purchases during 2009 must file their paperwork manually (no e-filing) to get the $8,000 first-timer credit.

This includes the revised Form 5405 as well as one of the following:

• A copy of the settlement statement
• A copy of the executed retail sales contract (for mobile home purchasers only)
• A copy of the certificate of occupancy (for new home purchases)

Non-first-time buyers who haven't purchased for eight years may be eligible for the $6,500 tax credit and must submit one of the following:

• Form 1098, Mortgage Interest Statement or a substitute
• Property tax records
• Homeowner's insurance records

All submitted paperwork must meet IRS requirements to be eligible as a proof of purchase. Get full instructions at the IRS Web site right here.

Buyers who are in the midst of a property search or are on the verge of making an offer should get themselves in gear if they want their piece of the tax credit pie.

Yes, the deadline is April 30, but it you can get a binding contract dated April 30 or earlier in your hands, you can still claim your tax credit as long as the sale closes before July 1.

Remember that these credits do not have to be paid back and you will receive a check for any portion of the credit that doesn't go toward your taxes.

Make sure you have the necessary paperwork now so that you can submit a paper return on time and claim your credits.

Hurry!

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Our success stories

JEFF COLE, NEIGHBORHOOD EXPERT

Jeff Cole, a real estate agent based in San Diego, Calif., goes the distance to help buyers find homes in neighborhoods they love.

We asked Jeff, a Foreclosure.com Certified Foreclosure Agent (CFA), for insider tips to find the right neighborhood and we wanted to pass on his wisdom to you:

First, there are more neighborhood characteristics that are specific to you and your lifestyle: Proximity to schools or shopping, distance to work or other key areas, availability of public transportation or access to amenities like parks, lakes, etc.

Then, Jeff told us how to uncover the overall desirability of a neighborhood, which is very important to consider if you plan to resell the home at some point.

You can get an idea of neighborhood desirability by checking out how quickly properties sell and whether they've had multiple offers on them. This lets you know how hot a neighborhood is and how much people want to live there.

You should also check out crime rate statistics and scope out proximity to employment opportunities to see the neighborhood through the eyes of future potential buyers. Also be wary of how close a property is to power lines, busy streets or other undesirables.

Jeff told us that the secret to finding a great property in a great neighborhood is finding an expert agent to help you set and stick to purchase goals. Choosing an agent who knows the local inventory and is willing to put forth the effort to help you find what you're looking for is also key.

Jeff Cole's team has been number one in sales production for the last three years for Windermere Exclusive Properties. He has received the Five Star Best in Client Satisfaction Award for 2008, 2009 and 2010 and was voted the 2009 Gold Award Winner based on professionalism, market expertise, reputation and customer service.

Put simply, he knows what he's talking about. Take his advice and reap the rewards ... now and in the future!

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Real estate tips

DO THE LEGWORK

The Internet has made it far easier to check out properties before you actually make the trip to go see them in person.

The benefits of technology are truly immeasurable, but that doesn't mean you can skip doing the legwork yourself.

Scouting out neighborhoods usually starts online, but it ends on the ground. You simply can't make an informed purchase decision without seeing a property with your own two eyes.

Internet listings can be misleading. Be wary of property photos that depict lovely beds, baths and kitchens but avoid outside pictures. These do not tell the full story. Things can look better — or worse — in person.

Also keep in mind what your neighborhood criteria are and refuse to be swayed by granite countertops or crown moulding. Cosmetic updates can be easily done in almost any home, but location is permanent.

Know exactly what you want from a neighborhood before you check out a property in terms of driving distance, availability of schools, access to public transportation, etc. Then resolve to view each property through the neighborhood lens you've created for yourself.

Visit a property several times at different times of the day. A neighborhood that looks safe and inviting by day can become seedy at night as after-dark problems come out of the woodwork. Visiting at different times will also give you an idea of how heavy traffic gets on nearby main roads, whether there are noisy nearby trains ,etc.

In addition, pay attention to the people you pass.

Are there surly-looking people hanging out on the corners or are their moms taking their babies out for a walk? Ask people you meet what they think of the neighborhood in terms of safety, noise, etc. Most people will be more than happy to share their opinions with you.

Keep in mind that your price range will influence the neighborhoods available to you and be aware that it may be better to buy a smaller house if it means a nicer location.

Foreclosure.com lets you search by zip code so you can narrow in on neighborhoods you love and find an expert in the area to help you with your search.

Check us out today.

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Deals of the Month

HOT FORECLOSURE DEALS!

Holdrege, NE
$39,900
2 beds/1 bath
850 sq. ft.

Holdrege, NE
$50,000
3 beds/1 bath
1,120 sq. ft.

Las Vegas, NV
$129,900
3 beds/3 baths
1,936 sq. ft.

Linda's Learning Lane

FIVE TIPS FOR SCOUTING

The phrase "scouting the neighborhood" brings to mind the concept of sending a person or persons ahead of the group that intends to come into the area. Part of the reasons for scouting are to determine if where you are wanting to go is the right place for you. One of the best ways to determine if the neighborhood is the right match for you is to do the following:

• Talk to folks currently living in the area.
• Visit the local establishments, shops, restaurants, and any other public place to get a sense for the vibe of energy you feel from it.
• Find out if the area has the type of services you require for your daily life.
• Visit the area during different times of day and on different days of the week.
• Practice a commute to your work place to get an idea of your potential day-to-day drive.

In this issue we have given you some great tools. One of those tools is finding an agent who understands and is familiar with the area you are interested in. Agents who specialize in their local communities can be the best community experts.

Taking the time before you make a decision to list out what is important to you will save you time in the long run and keep you focused on your search. There is so much information about everything that sometimes it can be overwhelming when making a decision. However, if you have laid out your plan about what it is you and your family desires it will help you research the pertinent information to what you want and omit the extraneous.

I am currently going through this process myself. Like many of you these decisions probably impact not just you but your family. The other day in our family council we discussed what types of amenities we would each like as we consider a housing change. For one it was proximity to bike and running trails, another close proximity to movie theaters and the mall, while still another access to interstates for faster commute, was paramount.

So get your pen and paper out now and start writing down what it is you want and your dream will appear around the corner. The process can be as fun and exciting as actually moving in.

Happy scouting!

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