February/ March ‘10 Power Move Magazine

Power MoveIndianapolis’ only free home finder, relocation service & magazine an M.Power Realty LLC. Publication

Thank You, for choosing Power Move Magazine

Equal Housing Opportunity

Get it sold! Staging a home

happy

Decorating a small space for

big impact

Sharing space can

be tricky before you

shack up, get roommate

ready

Jana Devries tells you

How to be a CSI Renter

Rushing to get your tax refund doesn’t pay!

Power Move Magazine February/March ‘10 February/ March ‘10 Power Move Magazine

It’s your body,

take

it pe

rsonal

Listen to your body

www.yumyumyouonline.com

Power Move Magazine February/March ‘10 February/ March ‘10 Power Move Magazine

Did you know? Hi, I’m Jana DeVries, professional freelance copywriter and fellow renter. I’ve moved around quite a bit and I’ve lived in it all – the good, the bad, and the ugly. I’m currently living in a beautiful, cozy apartment that doubles as my office. I spend my days working on a variety of writing assignments for clients from all over North America.

I’ll be bringing you the “Did you know?” column, which is going to be kind of like a crash course in Basic Survival for Renters. Whether you’re on the hunt for your first apartment or you’ve been renting for years, I guarantee you’ll learn something new. We’ll be looking at loads of interesting tips and little known facts about renting to help you can become a more well-informed renter and apartment hunter.

If you have a question about apartment hunting or renting, feel free to write to me at jana@janadevries.com and I’ll be sure to talk about it in an upcoming issue of Power Move.

Guides the novice renter & real estate expert

About our writers...

Move FoRwARDPower MoveFe

brua

ry 20

10I writing this months commentary as I sit in the lobby of the Indiana Veteran’s Administration Hospital here in Indianapolis. Since I’m not allowed to take pictures I’ll briefly describe the scene.

Around me are several faux leather couches and chairs. Even with bright flourescent lighting it still feels homey and comfortable. The people at the desk are friendly and helpful as visitors, doctors and officers of the law hustle up and down the tiled floors. Wheelchairs, walkers and crutches assist our current and past service members. Pictures of our President and other high ranking citizens line the walls as homage and decoration. “Are you doing your homework?” I’m asked by a gentleman in a wheelchair. “Do you get a wifi connection in here?” I’m asked by who appears to be a doctor. Simple questions spark deep intellectual conversations and lighter chat about the weather. It feels good here. I don’t think much about my security as a citizen of this country and even when I do, I don’t think enough about those that protect us. Because I don’t have to. Because they allow me the freedon to think about other pressing matters. Initially, I came to the VA to support a friend during a doctors visit. I didn’t know that my respect for people that I don’t know would be renewed. People who didn’t matter to me 20 minutes ago. Some whom I’ll never meet. Men and women that work all over the world on my behalf who don’t even know me. I’m humbled. To those men and women, as if it were enough, as if there were words in any language that could express the depth of my gratitude, Thank you.

In this issue

After the financial crisis...What have we learned?

Verbal Contracts?Their worth & how their enforcedContel Bradford answers...

CSI- Evaluate then investigate your new home. How to be a CSI Renter by: Jana Devries

Refund Anticipation Loans How they charge YOU for your

money by: Richelle Moore

What’s New?Loan documentation and mortgage fee disclosure

A Change in Faith by: Rodric J Bradford

Good things come in small apartmentsTerri Kelly’s advice helps you give a small space big appeal

What sells? and Why?

Simple staging techniques for quick sale scenario by: Richelle Moore

Thank you

Some books are about real estate, some books are for buyers or sellers- Deception doesn’t sell Bridges the gaps to familiarize the reader with the home buying and selling process and the typical documentation involved in buying & selling real estate.

And for those commitment phobic’s out there, Deception doesn’t sell removes the intimidation of the 30 year mortgage by presenting other options. We take an honest approach in explaining each paragraph of the Purchase and Sale contract, the truth-in-lending statement and Good Faith Estimate in detail, using real world deals to demonstrate these lessons while explaining the mortgage and real estate advisors responsibility to the consumer.

Deception doesn’t sell uses a down to earth, humorous approach and follows the actual Purchase and Sale Contract (P&S) explaining each paragraph.

The home buying and selling process is completely outlined. From interviewing and hiring an agent to choosing the right mortgage product for your financial circumstances.

Deception doesn’t sell, presents documents to set the readers to set the expectation and remove the intimidation of reviewing and signing

something you’re not familiar with.You’ll see actual documents that you’ll be faced with during the home buying and selling process. HUD-1 or the Settlement statement, the loan application, the good faith estimate, the Truth-in-lending disclosure, Purchase and Sale contract, Sellers disclosure,

appraisal and home inspection report. Get to know the usual players involved in a typical transaction and their roles.

Terri is a freelance writer, editor of www.devokids.com, and is published in Spirit and Heart. She holds a Masters in Education and you’ll find her blogging for teachers, writers, mothers and women at www.davincisclassroom.wordpress.com.

With more than 10 years experience as a professional writer, I have reached a few personal achievements, but Contel Bradford still has a long way to go - still perfecting my craft as an author and establishing my business as a successful freelance writer.

I've always loved writing, ever since I was little. I was that kid in the class that aced all the spelling tests and somehow just intuitively knew about grammar and punctuation. Although I've been writing for years, I officially launched my freelance writing career in 2009, finally realizing my lifelong dream of doing what I love for a living.

I’ve written 40+ cover page feature articles previously published/currently archived.I’ve interviewed various musicians, politicians and community leaders. Profiled teachers, outstanding community members, and business owners.

Bio not yet available

Photo not yet available

Power Move Magazine February/March ‘10 February/ March ‘10 Power Move Magazine

This property has everything you could possibly want in a new space. Built for families you’ll love the great amenities and helpful staff at Forest Ridge. This newly bulit community surpasses other multi-family homes by leaps and bounds with their functional floorplans and spacious One, two and three bedroom units. The grounds are well kept and offer great views like the tranquil lake and rolling landscapes. There are kid friendly amenities as well so bring your family and settle into a great apartment experience.

The kitchen is fully equipped with everything your inner cook desires. Great counter space, all new stove and refridgerator make it a pleasure to prepare family meals with ease.

Clean up is quick and easy with your new dishwasher and plenty of cabinet space to store you dinnerware.

Entertain and interact in your open floorplan. You and your guests can kick back and enjoy each others company in style. Apartments include wide spacious dining areas for you and your loved ones. There’s lot’s of storage and they even offer an office area in select units.

Relax and release in the comfort of this expansive master bedroom. Enjoy the view from your deck or patio right off the bedroom. Enjoy watching the water ripple in the wind and ducks at play. This relaxing oasis is home to the most comfort you’ll find on Township line. Get away from it all and get it all at Forest Ridge apartments. To learn more about Forest Ridge apartments call us at 1800.219.0320

What have we learned?

CSI RENTER INVESTIGATE b

y Jan

a Dev

ries

EVALUATEWhen it comes apartment hunting, you don’t have to rely on what the landlord says about the apartment. They might nod and smile and tell you the neighborhood’s quiet and the property is well-maintained, but is it really? And are their standards the same as

yours? Make sure you check things out thoroughly before you commit to the lease.

Here are some tips to help you become a savvy “CSI renter”.

Observe your surroundingsWhen you go to see the complex, take a good look at your surroundings. You can rely on the landlord to point out all the good things about the apartment, but it’s your job to notice the not-so-good things. Ask yourself:

What is the neighborhood like?

Is the property well maintained?

Is the building secure?Are the common areas clean

and well lit?Are there any cracks, leaks, or

signs of poor repair jobs?

Don’t be shy. Even if the current tenant is still living in the apartment, it’s completely within your rights to snoop around in all the closets and cupboards and test all the taps, appliances, windows, etc. You don’t want any surprises after you move in. If the apartment has a really cool feature, don’t be sold on it too quickly. Skylights, for example, can become leaking nightmares and extra loft space means extra heating costs.

Background checkLandlords aren’t the only ones who

get to do reference checks. Ask the leasing agent for the names and contact info for one current resident and one past resident and ask them:

Is the building or surrounding neighborhood noisy?

Are the tenant turnover rates high?

How quickly does the landlord deal with complaints and maintenance issues?

A little investigation will tell you whether or not you want to sign the lease. And your hard work will pay off in the end when you avoid all the classic renter problems and land a fabulous apartment.

Are you dreaming of a place you’ll love? Your dream is one choice away. A loft offers a wide-open space with a combination eating, living and sleeping area. Or, you may prefer the easy access of a flat, a one-level apartment, with a private bedroom. If it’s nature you love, a garden apartment offers open landscapes or courtyards. Once you select a place to fit your

personal style, you’re ready to outfit your place. Are you on a tight budget? Your apartment, flat or loft can look beautiful without spending much at all. First, buy a color wheel and consider it your personal decorating consultant. The assistance of a color wheel makes

targeting a color theme easy. Once you choose a color, blaze a trail for a fun hunt through thrift

shops, second hand stores, and discount retailers to find inexpensive treasures. Search for a few accent pieces to sharpen the look of your new home with a complimentary color (the opposite your main color on the wheel.) Shopping second-hand stores is an affordable way to create a classic, contemporary, cottage or eclectic style you will love.

There’s a place waiting for you to call home.Dream it. Live it.

After weeks of searching, you finally found the ideal place to live. Now all you need is a roommate to help out with the bills and lighten the load. Before you shack up on the whims of a verbal agreement, it is important to know that even a best friend or family member could turn out to be the “roommate from hell”. If you made your roommate sign a lease, keep in mind that it may take 30 to 60 days to evict them depending on the laws in your state. Even one day

could feel like an eternity once things go awry and it becomes clear that sharing your residence with someone else was a bad idea. Fortunately, there is a simple way to protect yourself and minimize the frustration – a roommate contract. A roommate contract is an agreement wherein each party agrees to certain conditions upon living together. The great thing about such an agreement is that it can be used to resolve issues that range from disputes over quite time to how loud music is to be played in the house. When your roommate starts to get out of order, you can put them back in place by whipping out the contract bearing their signature. While communication is the key, it never hurts to have legal documentation on your side. A simple written agreement could be the factor that helps save a friendship or a close bond with a family member.

What are you walking into when you take on a roommate? Is a verbal

contract enough?A verbal

contract is worth the paper it’s written on

By Contel Bradford

Every 3 months 250,000 new families enter into foreclosure-

MORTGAGE BANKERS

ASSOCIATION One foreclosure can result in as much as an additional $220,000 in reduced property value and home equity for nearby homes. Homes in foreclosure that

become vacant provide sites for crime or other neighborhood problems.

THE MUNICIPAL COST OF FORECLOSURES: A CHICAGO CASE

STUDY, FEBRUARY 2005

Consider Mr. & Mrs. Brooks situation.This young couple bought their first condo in 1995.

After 5 years they decided to purchase a larger home. The couple had plenty of equity in their condo, great credit and they both had strong incomes- PERFECT TIMING!

-Homeowners are more satisfied with their lives and are happier. Homeownership is positively associated with physical, mental and emotional health. Children of homeowners are likely

to perform higher on academic achievement and are more likely to finish high school. They also have fewer behavioral problems in school and are less likely to become pregnant as teenagers. ROBERT D. DIETZ, THE SOCIAL CONSEQUENCES OF HOMEOWNERSHIP 2003

That weekend the

couple went out to search for their new home and found it in a new, partially finished subdivision. The prospect of being involved in the building process and choosing specific elements of the home had them so excited they sat in the model home with the builder’s onsite representative and negotiated their deal without their agent. They’d made an offer on their dream home prior to listing their condo. As if that wasn’t bad enough, here is a perfect example of what not to do. Even though their condo had not yet been listed the builders’ onsite agent encouraged them to secure their lot quickly and called the lender on their behalf.

That evening they got a $2000 cash advance from their credit card to deposit as earnest money with their signed sales contract. After all, the house had to be built said the builders’ agent. This left the Brooks with plenty of time to close on the sale of their condo. The builders’ agent seemed optimistic- the condo is nice, right? - should sell with no problem, right? WRONG!

Not only did they just negotiate solely with someone who’s working for the seller, now they’re using the agents preferred loan broker who is also working in the best interest of the builder.

Power Move Magazine February/March ‘10 February/ March ‘10 Power Move Magazine

GooD ThInGs CoMe In

RooMMATe ReADy?

sMALL sPACesby TeRRI KeLLy

Quick sale home staging

Start with curb appeal-Remember this is no longer your home. Try not to be attached to your own style or decor. To help, take pics of your home. Get a wide shot so that you can see your home and the homes on either side. Does your home stand out? What needs to be cleaned, repaired or removed? Also print the pictures in black and white. This will help you view your home objectively so that your emotional attachments will no longer interfere with getting you top dollar for your home.

Let’s begin by looking at the mailbox. Is it functional? Is it clean? If there is fencing is it clean and in good condition? If not you may want to consider painting and repairing it. Depending on your budget and time constraints, taking it down all together might be an even better option.

Your lawn should be clean and well manicured. If you’re planning to plant flowers choose low maintenance flowers that require the sunlight and moisture naturally provided by your environment. Potted plants are a good idea. You’ll add appeal and color and if the prospective buyers don’t like them, removal is a snap.

Now let’s address the “small stuff” like the gutters, any railing or stairs. Are there cracks in the concrete? Is the railing sturdy or flimsy? No one wants to take on a home with safety issues. What about the gutters? Make sure your gutters are clean, in good repair and the paint is in tact. Once your assessment is complete you can begin planning. Start with a clean slate. Remove everything and deal with any cleaning projects first. Pressure washing can be a great way to shorten the time and effort involved in cleaning

larger areas. Clean the windows and doors. These are important areas of focus when creating an inviting entrance. Second, decide on a realistic budget. Whatever you estimate your costs will be, double it! Then go online or to your local hardware and home improvement store to verify pricing and get advice. Now, what are you planning on repairing and replacing? Remember, paint is an easy and inexpensive way to spruce up almost anything. Earth tones are usually the best way to go on the exterior elements of a home. But always take

into consideration what’s already there. Keep in mind the objective; to create a warm, welcoming entry.

Whether prospects actually go into the backyard or merely look

out through the windows they will see it. Don’t miss this opportunity to wow them.

It can be an elaborate outdoor living room environment or a cozy table

and chair set. Don’t be afraid to keep it simple. A chair underneath a tree can be just as effective. Either way shows them the value & true potential of your home.

Be sure to cleanup behind pets & kids.

In a perfect world there would be some color or decor choice that would appeal to everybody. Although the goal is to attract the masses we also have to infuse some style. Just be sure that whatever style you choose that you stay true to it. While truth in style is important, remember less is more. Your staging solution should reflect a style idea.

Don’t push it!

DeclutterDon’t distract buyers with too much craziness by putting stuff all over the dining room table or too many pillows on the bed. Use of lighting and simple, inexpensive touches like mirrors adds style, elegance and beauty to room.

Your goal is to have the buyer see themselves eating, sleeping and living in the space. For example in a dining area you might spark their imagination by setting the table to simulate a family gathering.

In the bedroom you can add a few decorative pillows to the bed to give it a warm feeling.

Also natural light and simple window treatments will make their day. If you want them jumping up and down with excitement bedside lighting and nice neutral tone rugs will do the

trick. When choosing fabrics go for natural fabrics in colors that accent the rooms paint for a homey look and feel.

In bathrooms as well as kitchens, clear the counter tops of your personal cleansing treatments. We want the buyer to see themselves living here, not you.

Time and money permitting; give your bath a face lift by changing outdated light fixtures and adding a fresh coat of paint that compliments the existing tile.

Another way to add value and appeal to a bathroom is by replacing the faucet fixtures. Brass is dated.

If you’re looking at brass

The kitchen is the heartbeat of the home. Kitchens sell homes! Light, bright and airy are the magic words here.

Clean, clean, clean. Clean the kitchen first. Then remove all personal letters, pictures and handmade crafts from the refrigerator. Remove all canisters, toasters and other small kitchen appliances from stoves and counter tops.

Add some under cabinet lighting and polish the chrome for finishing touches. Oh, very important. Clean and deodorize refrigerator and oven, potential buyers will be looking and smelling.

fixtures your buyers may look elsewhere. Clean surfaces are a must!

Power Move Magazine February/March ‘10 February/ March ‘10 Power Move Magazine

The Real Estate Settlement Procedures Act (RESPA) has entered the new decade with a new Good Faith Estimate (GFE) form, and real estate professionals throughout the industry are getting to know the changes.

The new GFE form has been lengthened to three pages and provides more written explanations, a beneficial feature for all parties involved.

The first page now consists of an important dates section, summary loan and escrow account information and a summary of settlement changes.

The second page covers adjusted origination charges and charges for other settlement services, including title service

and insurance, transfer taxes, homeowner’s insurance and government recording changes. The third page features an optional trade-off table and a ‘shopping cart’ grid to compare loans.

The new form does not feature the line item detail used in the previous version. Another significant change protects consumers, establishing tolerance levels for changes to costs laid out in the GFE to avoid dramatically different amounts in their closing costs.

There are three separate categories of tolerance levels created for this purpose—category one changes that cannot change from the GFE, category two changes that cannot increase more than ten percent and category three charges that can increase without any cap.

The category one changes that must remain the same are: borrower’s origination charge,

A Change in FaithThe new Good Faith Estimate for 2010By Rodric J. Bradford

Will you allow a tax prep service to assist you in preparation and submission of your tax return? Will you opt for a RAL?

Refund Anticiaption Loans aka “Money Now Loans” are usuries targeting the earned income credit recipient, who in most cases earns $35,000 or less annually.

The average income of the RAL consumer was around $17,800. As a service, they’ll allow you to borrow your own money for around 10-14 days at an annualized interest rate of somewhere between 40%-700% including administrative or processing fees.

For example; if your RAL is

$3000 for 10 days after prep fees and interest, you’d be charged $89-$170 (108%-202% annualized interest rate).

As consumers we have to be smarter and more careful with our resources.

I think it sucks that tax prep services would treat our working poor in this manner while our government sits back and allows them to get away with it.

I also think our working poor should stop allowing the promise of quick money to be so blinding.

From check cashing to payday loans we just keep giving our money away. Are we gluttons for punishment? Do we like being poor? You probably don’t have an immediate need for the money anyway, so why not wait 2-4 weeks to get your refund. You can opt for direct deposit of your cash. Use it to open a savings account.

Customer or ClientOne of my favorite lines is “I’m not signing an agreement with an agent until I know they’re working for ME!”Well, guess what, no agent is working for YOU until you sign a formal contract that allows the agent to represent you. A customer is defined as a person interested in buying or selling real estate that has not signed a formal brokerage agreement with a broker. A “client” is a person that has signed a formal brokerage contract. Only with a signed agreement have you hired representation. It’s this contract between the buyer or seller and the broker that takes you from prospect to protected.

Legally, if you are not a client, all an agent can do for you is show you houses. The absence of a formal contract opens up liability for real estate

agents and therefore limits the information that an agent is allowed to disclose to a potential client or a customer.If you walk into a real estate firm and ask the agent questions about properties, they will engage in this conversation without having you sign a formal brokerage agreement, but you are a customer. Let’s say you schedule an appointment to go look at homes. The agent takes you to see 5 homes and without having signed the formal brokerage agreement, you decide on the one you like.The agent is in a formal listing agreement with the seller of the property that you like. That agent is legally and ethically bound to work in

the seller’s best interest. Because they have protected their client he or she will collect a huge commission. So the agent is not motivated to negotiate the best deal for you. Your best bet is to make a list of the agents that you are interested in working with, call them up and conduct an interview with them so that you choose the right buyer’s agent for you. You can then comfortably sign a formal buyer brokerage agreement with the agent of your choice.If you are not willing to sign the Exclusive Buyer Brokerage Agreement, the agent should require you as the customer, to sign a Customer Acknowledgment. This form says that you were offered the formal agreement and refused it.

Running around from agent to agent will not ensure that an agent is working for you. A buyer brokerage agreement will. Be serious about the person that you hire. Interview them and remember, you’re going into business with this person. Without a competent representative you stand to lose a lot. It’s best to do your homework, interview and hire an agent that will protect your interest. Avoiding this process will be a mistake. I can’t say enough about how important negotiating is! The only way an agent can effectively work on your behalf is to be comfortable with that fact that you are their client. There are so many variables to any transaction. Someone wants to sell and you want to buy, but on what terms and conditions? A solid professional relationship with you will ensure that negotiations will be handled properly and with your highest good in mind. Coming to terms on a purchase price is just the beginning. Working through contingencies and the home inspection process is another animal. What if the appraisal comes in under the agreed purchase price? A good agent is aware of all the possibilities that exist and examines all the options to determine which ones help reach the overall goal. Your agent should have a clear understanding of what your

objectives are as well as the other side’s interests. Providing the client with a comparative market analysis or “CMA” is usually done for sellers by agents listing the property. But if you have a serious interest in a property a buyer’s agent may provide this information for your use as support during negotiations. A CMA is an informal assessment of the property’s market value based on similar properties in the area that were recently sold. The agent must carefully choose which properties will be used to make comparisons. A good CMA wouldn’t compare a brick, ranch style home to a two-story stucco. The properties must be similar. Because similar does not mean same the properties will have differences and the agent has to make adjustments based on the differences. Suggesting minimum earnest money deposit and that forfeiture of the earnest money is the sole remedy of the seller is important. This is known as the “protective clause” and is included in the purchase offer. This is the part of the contract that basically tells the seller that if the deal should fall through and it happens to be the buyers fault, the deal ends here and the earnest money deposit is all you get, Mr. Seller.

Get hooked up!

Power Move Magazine February/March ‘10 February/ March ‘10 Power Move Magazine

creditor charge for interest rate selected and transfer taxes. The eight category two charges that can increase by a maximum of 10 percent include: title services, appraisals, credit reports, tax service, flood certification and mortgage insurance premium. Finally, the third category charges that can increase with no maximum include initial deposits for escrow reserves, daily interest charges and homeowners insurance.

Lenders and mortgage brokers may only charge for fees related to obtaining the applicant’s credit report, before the borrower’s receipt of the disclosure. Along with the GFE, mortgage companies must provide a list of required services borrowers may shop for, affirmatively identifying the service providers they recommend. The list must be provided at the same time GFE is issued.

As with any profession, some real estate professionals are hesitant to the change that comes with the 2010 GFE form. Their criticisms with the form range from lack of detail for total closing costs to confusion with the monthly payment structure.

Page one of the form addresses the monthly payment in two sections—one concerning only principle, interest and mortgage insurance and the other addressing only payment of escrows for taxes and property insurance.

Industry critics say this separation only leads to more confusion by the consumer—the exact reason the forms were redesigned in the first place.

Regardless of your opinion of the 2010 GFE form, whether you are a broker, lender or consumer, knowledge of this document is key to unlock the door to home ownership.

Shopping for your new home

Shopping for a home...House hunting can be very stressful. Emotions seem to take over when the house hunt begins. This is normal whether you’re a first time home buyer or seasoned, don’t worry if this part of the process seems to keep you up nights.

Don’t mistake a want for a need. You run the risk of dismissing perfectly good homes that fit your needs in search for one that has your wants. Striving for what you want is good, but you need to be ready to compromise and recognize the difference between what you truly need and what you would like to have. Your budget should ultimately determine the home of your choice. Not wants.

If you want a certain feature you can add your footprint later.

Make a list of wants and needs. If there are two or more purchasers, all

parties need to make their own lists.

Communication is the key. Make sure that you fully articulate your desires and must haves to you agent. Don’t expect your agent to be able to read your mind and don’t waste time by thinking that you’ll get it all for nothing. If you are limited on price be sure to match your expectations to your budget. Consider the future when shopping for your home, how your family and circumstance will change and grow.

Don’t fall in love with a home until it’s actually yours. As I mentioned before its normal to be a bit emotional about the entire process but you must try and operate with logic until the deal is done. When in doubt, consult your agent. This will make sure you don’t make emotional decisions leading to buyer’s remorse later.

Don’t stree over the decision to rent or buy. Don’t rush any financial decsions. When in doublt wait it out.

Power Move Magazine February/March ‘10 February/ March ‘10 Power Move Magazine

what you see is what you don’t get with model homes.Don’t sign a lease sight unseen. When I moved to Indianapolis I was determined to find a place within a month of moving here.

Prior to leaving Atlanta I’d started my search online but I was not going to agree to an apartment without having walked through my new dwelling.

When I arrived at my current community the leasing consultant was polite and fun-loiving while showing a unit that I knew I couldn’t have.

It was the model.

We spoke in detail about the amenities, cabinet and trim colors. We chose a natural would tone with black kitchen appliances.

When we arrived to sign the lease the leasing manager already had the keys and lease ready to go but had not planned to show the actual apartment.

“Unfortunately”, she said “we don’t have any available with the natural trim.” Biting her lip, she studied the list of available units. Just then, another new resident stomped in. She wore her anger like a cheap suit. She complained about her third “bedroom” not having a closet or a window and how her son’s twin bed wouldn’t fit. Can you imagine?

“It’s nothing like the model you showed me” she said. The leasing agent looked nervously at the list again. Miraculously a unit with natural trim appeared. I wonder why she didn’t notice that unit sooner. For some people who work in customer service it’s not about pleasing the customer. So as a resident you have to take responsibility for your own satisfaction. Walk through your unit atleast 24 hours before lease signing to allow time for corrections to be made

“I’m not proud of it but I am the moving expert. I’ve moved seven times in the last 5 years. My latest move to Indianapolis from Atlanta was by far the most stressful. During

my search for my first Indy homstead I’ve encountered everything from deception to internet scams with large property managment firms and private landlords. It just seems to me that moving can be made much easier, so that’s what I’ve set out to do. ”

Make your move make you some Green...This needs to be done far enough in advance to allow time for any painting or decorating you’ll want to do to your new place.

Truck rental and moving costs are also important. Get several estimates and take into account the amount of

furniture you’ll need to move. If you’re moving from or to a place with stairs movers may charge a premium. Also try to get a fixed rate on movers. Hourly charges can add up quickly. Maybe you’re considering a do it yourself move. Check pricing on moving vans, boxes and packing tape. Remember, you’ll be paying by the mile plus your time and sweat equity with a DIY relocation.

If you want to really maximize your move consider a yard sale. Even if you live in an apartment, selling some unwanted stuff maybe a good way to offset some expenses. Sort through your belongings and create three piles. Your keep heap will be your essentials. Keep things that are new, things you currently use often and things that you consider important. Just remember to keep it real when stashing

seeInG Is beLIevInG

Moving on?Make a move but don’t let the move make you. handle your business to get a handle on your relo.

Is your move tax deductible? Well probably not if your moving locally. You can save yourself some money and headaches by planning ahead. The anticipation of getting a great place, with cool amenities in a better location can certainly be exciting. We’ve got some advice and tips that will minimize the hiccups of relocating.

Renters find their American dream

This may sound like a rant but I need to say it. Stop trying to impress your friends by buying a home you can’t afford. Buying a home is not just about the roof over your head. Your property is also an investment vehicle. If you’re not ready to be an investor, renting is probably a much better option. Here’s why.Renting is cheaper. I know, you’ve heard people say “my mortgage is less than what I was paying in rent.” Did they tell you about PITI? That’s Principle, Interest, Taxes and Insurance. The Principle payment is the mortgage payment that your

friends tell you is cheaper than rent. However, the interest, taxes for unexpected gadgets and widgets. I’ve been a homeowner before and it was expensive to have to purchase a new air

conditioning unit. I once had a leaky toilet that resulted to a $300.00 water bill. Now when I have a leaky this or broken that I make a phone call instead of a trip to the hardware store.

continuedto keep it real when stashing your keeps. You won’t have room for anything new if you’re holding on to the old. Your sell pile will be items that are in good condition, clean and could be of use to someone else. If you’re using your treadmill as a clothes hanger it goes in the sell pile. Your third collection will be the donate stack. Be generous and give from the heart. Unloading can make you some green, lighten your load and may possibly be a tax write off! So invite your neighbors, friends, family and community into your apartment and let it go. You can take it with you but you probably shouldn’t.

If you’re a student or a parent the district school policies and registration requirements are another consideration. Call ahead to familiarize yourself with this necessary

information. Separate your important documents and personal records before you pack. Searching for documentation once it’s packed away will be a hassle you’ll be glad you avoided.

Update your contacts. Since you were smart and took the initiative of having your utilities transferred early you can update your family and friends with your new information. Make a list of creditors and business contacts as well. You don’t want your mail in the hands of a stranger nor do you want to let important information get past you because you were unreachable. Now that your bills and buddies know how to reach you don’t forget to update the local post office with a change of address card as well.

Do a drive by. Go to your new neighborhood at different times a day. Be aware of high traffic routes, community

shouLD I RenT oR buy?and insurance are other fees that must be paid monthly if you have a conventional mortgage payment. You may be able to get an interest only loan to reduce the monthly payment but you’ll likely only end up increasing your overall debt.

Renting can also save you from paying a water bill. Lately apartment communities have started to derive a portion of their income from charging their residents a fee for water and sewer usage but you can still find complexes that won’t expense you for water.

Do you enjoy lawn maintenance? How would you like to be responsible for repairs? I enjoy calling the leasing office to take care of my place. I like not having to run to the hardware store

Continued on page 17

attractions and your new neighbors. These factors will ultimately determine your experience for at least the next 12 months. Ask local law enforcement for crime and break-in statistics. This information is not meant to make you live in fear but to educate you about your surroundings. Have the leasing consultants show you around the property. They should show you how to get into 24 hour onsite facilities after hours. You’ll need all necessary codes and emergency phone numbers as well as the name and contact information of the courtesy officer.

Renters insurance is your friend. It’s cheap and necessary so get it. If you’re moving to a “better” community or closer to work you may be able to get a break on your car insurance payment.

Clean out the old and spruce up the new. Be sure to get

your deposit back by defrosting and cleaning the fridge. Have the carpet cleaned. Repair any damage and prime painted walls in your old pad. When you’re finished, take photos. Include a time and date stamp for your records. Now you can paint your new digs to fit your taste. Just be sure to do it before moving any furniture in.

You’re almost ready to settle into your new place but first you have to return that leased cable modem and internet router. Don’t forget to give back the apartment keys and forwarding address to the old management. Now you’re good to go. Follow these steps and make it a smooth move. By the way, follow us on twitter too. www.twitter.com/mpowerrealty

Usually we consider the monthly rent and the number of bedrooms and bathrooms when searching for a new home. Whether you want great fixtures or just a place to keep your stuff, you need to make sure you can afford your new crib. Consider the additional expenses of a new apartment, the bigger

the space the bigger the heating and cooling costs. Indianapolis can get quite cold during the winter months so if you have gas appliances you need to be climate conscious when budgeting. With gas, electric, cable internet and home phone how much can you afford?

Contact the service providers in the area where you’re looking. Ask about deals and specials that are being offered. Often times there are internet specials that you won’t get when speaking with a customer service rep.

This article is for those of you who see the current housing market as your way in as a first time home buyer. Or maybe you’re a first time home seller.

Here is a list of pertinent questions for you to ask during the interview with potential real estate agents.How long have you

worked as a full-time agent?

This is a 2 fold question. First, you find out how long the agent has worked in the business and to some extent, their level of expertise. The real estate business can be very volatile and an agent that has been in the business for several years has made a commitment to the business. This is not to discount new or inexperienced agents. The

newer agents will be hungry and anxious to prove themselves.

Plus they may not be as busy as an experienced agent and may be able to provide more attention than a busier agent. Not only should you be concerned with how long your agent has been in the business, but you should also be aware of their full or part time status. Part time agents will typically have other obligations that may limit their level of service and attention.

What are your hours? This question will give you some idea of their availability. Does this match with the times that you will be available to see homes,

provide documents and converse with you agent about your transaction. How soon they return phone calls has been a very important issue among home buyers. Do they prefer to be reached by cell phone, or on their office phone? Do they use email? Can you reach them during off hours or at home? When you have questions, issues or concerns you’ll want your agent to be available. Every deal has its own surprises and set backs so be prepared by contracting with someone that will be available when it hits the fan.

What are your areas of expertise?

Some agents have what is known as a niche. Maybe

they specialize in working with first time home buyers or maybe they work with investors on a regular basis. If you happen to interview an agent that does not specialize in your particular type of deal, this should not be a deal breaker but it should definitely be taken into consideration. If perhaps you are a first time home buyer and this is the agents niche then great, it’s a win-win.

Do you have a particular geographical area in which you prefer to operate?

Now this is an important question because if the agent happens to specialize in the area particular that you’re looking to purchase

Continued from page 8

-6 in 10 homeowners wish they understood the terms and details of their loan better.

FREDDIE MAC/ ROPER POLL 2005

2 ½ months later, The Brooks had only one prospective buyer visit the condo. Worried they’d lose their earnest money deposit, and the deal would go south the loan rep suggested a bridge loan. This type of mortgage would allow the couple to borrow against the equity in their condo giving them the down payment for the new home. They’d have to continue to pay their existing mortgage on the condo but no payment would be necessary on the bridge loan for 3 months and this option would ultimately buy them another 6 months to close on the sale of their condo. Things seemed to be working out. But their high debt to income ratio jeopardized their chances of getting the loan approved so the loan advisor offered a 5 year adjustable

rate mortgage as a form of creative financing. In other words they really couldn’t afford the house in the first place but determined to make it work, their loan broker found a mortgage that would give them a super low teaser rate to help them “better afford” their home. She made 5 years sound like forever. Although their agent was not present during contract negotiations and never sold the condo, she earned $7625.00 on the purchase of their house.

-6 in 10 homeowners are unaware of services that mortgage lenders can offer to those having trouble making their mortgage payment. FREDDIE MAC/ ROPER POLL 2005

After 3 more months on the market only one more potential buyer visited the empty condo. Paying the mortgage on the condo and the mortgage payment on the new house was a bit tougher than the Brooks anticipated. 3 months later the bridge loan was due to be paid off. Its now 5 ½ years later and the adjustable rate on their house has adjusted 4 times ballooning their monthly payment from $1200 per month to $1900 per month. The adjustments will continue monthly until the Brooks either refinance or sell their home. The bridge loan was never paid off and the foreclosure of the condo

What have we learned continued

Power Move Magazine February/March ‘10 February/ March ‘10 Power Move Magazine

Burn-A-Thon

GY

M

burn calories to stop diabetes

Gold’s

Ok, let’s talk about the elephant in the room, poor credit. Some of you that are reading this may be living with poor credit due to a foreclosure or some other unfortunate financial circumstance. Maybe you have no credit at all. Well, it’s not going to just go away. So order your credit report and start dealing with these issues now. Poor credit is not only a good reason to rent it’s one of the main reason’s people continue to rent. The belief is that if you have poor credit then you

have not learned to manage your income in such a way that allows you to afford your lifestyle. Not that you don’t earn enough money to support your bills. You do not manage your money

in a healthy way to support your habits and your fixed expenses.

Another circumstance that warrants renting is relocating for the short term. This may seem obvious but there are those who feel as if renting for any reason is like throwing away money. If you’re in a home for less than a year consider all of the expenses that go into the purchase process. Home inspections cost around $250 and go up depending on the square footage and complexity of the property.

Appraisals start at $350 and closing costs can be in the thousands. Then what if you need to sell the home and it just doesn’t move. Are you prepared to make

Continued from page 15

Gold’s Gym burn-a-thon was an inferno to burn down diabetes. The participants chose their favorite form of cardio to do a 180 on diabetes. This was not only a local effort, this was a national effort including Gold’s Gym facilities across the country.

According to The International Diabetes Federation, more than 246 million people around the world are living with diabetes. Gold’s Gym commits to the fight by hosting a nationwide burn-a-thon. Participants burned millions of calories to raise dollars in support of the American Diabetes Association.Burn, baby, burn!

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two mortgage payments? If you’re moving into your first place you’ll need to establish yourself. Don’t buy a home right out of the nest. Educate yourself about finances and investing first and allow yourself to grow into home ownership.

February/ March ‘10 Power Move Magazine

BOOK COVER (FRONT)

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4. Tree collection Photography

5. The Dancer 6. See Life of Sea Life

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a home, then this will be a definite advantage. This doesn’t mean that if you happen to decide to look in another area that you should look for a different agent. Often times an agent will begin showing you homes in one area but based on some new information they may want to introduce you to a different neighborhood that may be more affordable or may fit with your needs better. However, don’t be discouraged if they are not as familiar with a particular area. Regard this as FYI.How many homes are

you currently listing at this time?

Even if you’re buying a home this is still a pertinent question because this may reveal whether or not they prefer to work with buyers or sellers. Also, if they happen to have several listings they may have some listings of their own that they may want to show you. If this is the case make sure that they are actually showing you homes

that meet your needs. It’s ok if the agent wants to show you the homes they’re listing. But if the only reason they’re doing, is in the hopes of getting a fatter paycheck, then you may want to make it clear that your needs are the priority. Plus if and when you’re ready to sell your home this may be a good relationship to maintain for when that time comes. Plus, they’ll be able to speak to you about the homes ability to be resold even before you purchase it.How many buyers are you

currently working with?Once again, Mr. or Miss Realtor, do you prefer working with buyers or sellers? This question, along with the previous question should help you understand which side of the deal the agent prefers to work. I have found that if you simply ask an agent, which side of the deal they prefer to contribute, the answer is going to be on whatever side of the deal you happen to be interviewing them for. Now, I’m not calling agents liars, but remember you’re dealing with sales

people. They may not even have a preference. But if they seem to be working with more sellers than buyers then that should offer you some insight.Will you provide a list of

references?This question should be self explanatory. All agents should be able to provide references that can actually be reached. Written references are good too. Some of the references may prefer to be reached by email. If this is the case don’t be discouraged. However, the agent whose references actually email back, win! At least they win this question even if they don’t necessarily win the opportunity to service your real estate needs. Ask if any of the references are relatives.What sets you apart

from the competition?A good agent will not hesitate to answer this question. They should be ready with what some call an “elevator speech”. This

is usually a concise way of explaining how they plan to service you and what they have to offer that sets them apart from the competition. This question is asked of agents on a regular basis so if they don’t have an answer or if they struggle with answering then this is a red flag. A good agent will know what they have to offer you and how they plan to help you. If they don’t know what they provide then how can they provide it? Of course you want an agent that is honest, trustworthy, experienced, assertive and friendly. Negotiation skills and analytical skills are important. You may want to create your own list of what is important to you to see if your list coincides with what the agent feels is their unique selling proposition. Do you offer any

guarantees?What happens if you’re

unhappy? Can you cancel your

contract?

Continued from page 17

and late payments on their credit makes refinancing impossible. The Brooks filed bankruptcy to avoid foreclosure proceedings.

-Homeowners fail to contact their lender because they are embarrassed and don’t believe the lender can help or they believe it would cause them to lose their home quicker.

FREDDIE MAC/ ROPER POLL 2005

Time ran out on their bankruptcy and the couple has since foreclosed on both properties. This situation has also ruined their marriage and the couple has divorced. Mr. Brooks and his stepson are renting an apartment, co-signed for by his mother in a nearby complex. The woman formerly known as Mrs. Brooks took a roommate and rents an apartment as well. She sees her stepson on weekends and holidays.

-One child in every classroom in America is at risk of losing their home because their parents are unable to pay their mortgage. MORTGAGE BANKERS ASSOCIATION

-If home foreclosure were likely for you, what best describes how you would feel? 38% scared 35% depressed 9% angry 8% embarrassed 9% none of the above HARRIS INTERACTIVE POLL, OCTOBER 5-7 2005

Please summarize the home buying process?

An agent that can fully explain the process so that you will know what to expect is great! Ask to see the documents that you will be expected to sign so that you can become familiar. The agent should be well versed on each document and how it fits into the transaction.Buyer’s brokerage agreement, purchase agreement, home warranty information, sellers property disclosure are some of the forms that you will be confronted with during your purchase.Will you refer other

industry professionals to help me with my transaction?

In order to complete your deal you will be required to contract with other professionals such as pest inspectors, appraisers, mortgage brokers, home inspectors, surveyors and attorneys. Your agent should have a list of several service providers for you to choose from

to help with you deal.Please explain

your broker’s policy on agency relationships?

Agency relationships offered may be seller agency, buyer agency, designated agency, dual agency, landlord agency, and tenant agency. The differences of these contractual relationships will be discussed in a later issue. However, it is very important that the agent discuss these with you up front. What other

information can you offer that I did not inquire about?

This is a very important question. A good agent should be very forthcoming and should understand that there is always some information that you need to be made aware of. The agent should be a good listener who will allow you to explain fully what is important to

you without interrupting you. The agent should be able to verbally demonstrate their understanding of what is most important to you as their potential client.

Choosing an agent continued

February/ March ‘10 Power Move Magazine February/ March ‘10 Power Move Magazine

«

« The Experience Traditional apartment

hunting

See the places you’re interested in, in HD

Tell us what you’re looking for

Your Power agent does all the searching, calling & negotiating

Spending precious time on exhaustive searching?

frustrated looking at 30 webpages full of apartment data and irrelevent ads?

Is driving around wasting gas and chasing rental listings your idea of fun?

Still haven’t found the right place for you and your family?

What have we learned continued

February/ March ‘10 Power Move Magazine

All you do is sign the lease and move in and best of all

IT’S FREE

Have you found an

apartment yet?

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