Archive for the 'Buyer and Seller Knowledge Center' Category
Want To Split A Lot or Land Parcel?
June 18th, 2008 Categories: Buyer and Seller Knowledge Center
Lot splitting is simply the division of any parcel into two or more lots for the purpose of sale, lease, or financing.
It can be costly therefore talk to someone before acting. Often the starting point is the designated areas Planning Department.
The people in the Planning Department will more than likely re-direct you to someone else but do not do anything without knowing who you have to talk with, what steps need to be taken and with whom, what has to be documented and what is the cost.
Do not assume. There are differences in area requirements and these differences can be measurable and costly.
Yes, lot splits have to be approved and the authority for this approval stems from the Map Act of 1907 which was created to encourage orderly community development and to prevent fraud in real estate dealings.
General guidelines and some key questions that have to be considered, discussed and documented with the various agencies may include the following and more. But this list is a start as to what needs to be addressed.
- Is the proposed split consistent with the County (City or Parish) General Plan?
- Is the proposed split consistent with Zoning Code standards, such as minimum lot size?
- Is the topography and other site conditions suitable for development?
- Are there any geological hazards (faults lines, land slides or water hazards)? What action or steps will be taken to nullify these hazards?
- Can the County (Parish) design and layout lot standards be met….are the proposed lots usable?
- Can Fire Department, Public Works or essential services minimum road requirements be met?
- Is sufficient quality water available? Is there enough water for Fire Department standards?
- Can lots be served by a sewer system or a septic system?
- Are other public services available such as storm drains, utilities, etc. that need to be viewed?
- Is the project compatible with nearby existing and proposed land use?
- Are there any special environmental factors (noise, archaeology, flors/fauna, air quality, water quality) that would adversely be affected?
- Are there easements that may affect the proposed split?
The steps and permits needed to split a lot (or land)
- Request a pre-submittal evaluation of proposal. Go over the essentials at this meeting and collect the names of people (and phone numbers) of who you talk with. Keep a log of all discussions and contacts. If in doubt, document.
- Obtain and prepare application package and plan meeting(s) with the essential departments whose approval you will need.
Application review and environmental evaluation and associated fees
review to determine adequacy of the application
review for completeness or incompleteness of application
determination of environmental documentation needed
- environmental preparation and review
- final determination
- final map or parcel map prepared, submittal and recording with County clerk, zoning and other departments.
In between do not forget that you will have to get a survey of the split lots so ask who will undertake this task.
When everything is done ask for a Lot Determination Letter for each lot from the County or Parish. This will be a very handy document to have when selling the new lots.
Your comments are welcomed.
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Having Difficulty Selling A Property? Try…..
May 23rd, 2008 Categories: Buyer and Seller Knowledge Center
Going Once; Going Twice; Sold!
The AUCTION.
During the down side of a market, auctioning a property could be the answer.
There are several variations of the auction form including time limits, minimum and maximum limits on bid prices and special rules determining the winning bidder and the sales price.
Maximum bid (I have heard it called and absolute bid but check on this) means that the property will be sold to the highest bidder (or sold at any price).
The minimum bid auction will allow the seller to pick the lowest price that it will be sold at.
Auctions are generally funded by sales commissions, paid for by the seller, but each auction house has some specific rules that should be understood before hand.
Staging.
Staging can at times move a property. The key to staging is simply to make a sellers property look better than competing properties.
It is important that staging be done right. And staging should take place before listing the property to get maximum impact.
However this does not mean that a home that has been on the market for a period cannot be staged. The problem with this property is that it will have a history. It is seldom that a potential buyer will view a home again with after-the-fact staging.
Staging rules are simple. Get rid of clutter, which covers a wide variety of items including the removal of furniture, knickknacks, personal grooming items in the bathrooms or bedrooms, kitchen cabinets neat, have the neighbors take care of any pets and the sellers gone while the home is being shown.
When one cuts to the chase anything that can be removed should be stored off-site or neatly in the garage (no high rises…..keep the boxes low so people can see the garage).
Be clean and neat. If you plan to remove something from the home after the sale, remove it now.
You want staging to show space.
Within this blog under Things You Should Know (see Buyers and Sellers Knowledge Center) there are two articles to support staging efforts. The articles are entitled: Fix The Little Things To Sell Your Home And Add Value and Buyers Love Neatness.
Seller financing.
If you are lucky you may find that your seller doesn’t owe anything on the property.
This can be very advantageous to both buyer and seller. With banks and lender exercising very strict rules in home purchasing this is an option to consider.
However the seller still must exercise due diligence and investigate the buyers credit worthiness and capacity to buy the property.
The advantage can be that the seller can have a secured note (against the property), the seller can be accommodating on the interest rate and can have a note for a limited period (usually 3 to 5 years) or for the long term (15 years or longer).
The seller, acting as the lender, will receive interest income and can offset a potential high tax burden.
The seller entertaining this method of sale should talk to an attorney to protect themselves and make sure that all of the i’s dotted and all the t’s are crossed. It can be a win-win for both buyer and seller.
Often the property will have a lien on it and most liens have a “due on sale” clause where the lender can force payment of the loan when the transfer of ownership is recorded. But ask your lender and they may surprise you by agreeing assuming you make timely payments on the lein. If you don’t ask you will never know.
Again the seller has to make certain that the buyer is credit worthy and is capable of meeting the note obligation made between the two.
Again talk to a real estate attorney to make sure everything is done correctly.
A 1031 exchange.
Common with commercial, industrial and land transactions it can be applied to residential properties.
The key to this type transaction is to find a buyer that is also interested in selling their property. If you are willing to take a property in exchange of yours to help promote a greater buying audience you will need to determine if the property satisfy both buyer and seller needs.
Generally this type of option works if:
- move up to a more expensive property.
- move down to a less expensive property.
This type of transaction can be very tricky so both parties should meet not only with a real estate attorney but also with their CPA or tax consultant. There can be tax consequences if there is an exchange of cash in the transaction (called boot).
William Exeter left me a comment which expanded on the world of 1031’s and I took the liberty of adding his quote to this article. He gives an expanded view of 1031’s which is significant.
Mr. Exeter states:
“I wanted to follow-up on the comments about the 1031 exchange. The type of 1031 exchange that you have described is what we refer to as a two party swap where the two parties want each other’s properties and just swap or exchange the properties simultaneously.
This actually represents the smallest number of 1031 exchange transactions today. The majority of 1031 exchanges are now structured on a delayed basis where the taxpayer completing the 1031 exchange will sell his or her property to a buyer through a 1031 exchange Qualified Intermediary and the Qualified Intermediary ends up holding the net proceeds from the sale. The taxpayer will then acquire replacement property from another party through the Qualified Intermediary in order to complete the 1031 exchange transaction. We refer to this as a three party 1031 exchange.
You can also complete a reverse 1031 exchange where the taxpayer acquires his or her replacement property first.” (end of quote)
For your real estate needs call me.
Your comments to this article are welcomed.
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Brown……and What Other Colors May Mean In The Home.
May 18th, 2008 Categories: Buyer and Seller Knowledge Center
When selling a home the first thing most people are told is to ”paint” it.
When one looks at a new home, first impressions focus on the paint.
So when it comes to color, most will see the color “BROWN” or cousins of brown in a home.
Color influences our emotions, actions and response to other people.
In general brown (in a home) covers an array of colors: sienna, bay , sand, wood, auburn, chestnut, nut-brown, cinnamon, russet, tawny, chocolate, tan, brunette, fawn, liver-colored, oak, bronze, terra-cotta, toast, umber, cocoa, coffee, copper, ecru, ginger, hazel, khaki, ochre, puce and puce (this listing was found in an article by Jacci Howard Bear).
Beige is the chameleon, taking on the warmth of brown and the color of white. Other shades of beige used in the home include buff, camel, oatmeal, tan, sand, biscuit, cream and mushroom. But it is brown.
So why brown? One word—–Earthiness.
As one reads about brown they will read words such as steadfastness, simplicity, friendliness, solid, dependable.
When used with it cousins (tan, taupe, beige or cream) brown coveys the feeling of warmth, honesty and wholesomeness. Brown is closer to nature or being closes to “natural”. It can stand out or it can be sub-due.
Brown circumvents problems that other colors may have. With its’ variation of shades it conveys different meanings and can stand out significantly. When used in a large area the quantity and placement can deliver a powerful symbolism.
When used in various shapes and in combination with other colors, brown combinations tend to be easy to accept.
For instance the color blue is said to be calming and many believe that it brings peace and keeps bad spirits away. Therefore blue often times is suggested as a color for the bedroom. However if over done blue can dampen ones’ spirit. I like blue but I do not think it is a color for me in the bedroom.
Talking about colors influencing other people, I recall reading about painting visitors sports area pink. It is thought that the pink color (especially bright pink) decreases the opposing teams energy.
As stated brown symbolizes the earth, order and convention. Here is a listing of what other colors symbolize:
- red: action, confidence, courage, vitality. Tiger Woods often will wear red something on the final day of a golf tournament. A show of confidence. Red is said to stimulate the appetite therefore one may see restaurants use this color for decorating.
- pink: love and beauty. Pink is said to be a tranquilizer. As mentioned above sport teams sometimes paint the locker rooms used by opposing teams bright pink so their opponents will lose energy.
- orange: vitality and endurance. Orange is a color used most often in water wear and safety clothing.
- gold: wealth, wisdom and prosperity.
- yellow: wisdom, joy and happiness. A study showed that jails painted yellow had inmates that lost their tempers more frequently and babies cry more in yellow rooms. Yellow legal pads is said to enhance concentration.
- green: life, nature, fertility, well being. This color has now become the standard when one addresses conservation, ecology and earth warming. It is stated that people just before appearing on TV will sit in a “green room” so as to relax.
- blue: youth, spirituality, truth, peace. When one is planning to be interviewed for a job most consultants will recommend wearing blue to the interview because it implies loyalty. Studies have shown that people are more productive in blue rooms. Gyms painted blue are typical for weightlifters.
- purple: royalty, magic, mystery.
- Indigo: intuition, meditation, deep contemplation. But many people believe that indigo can be a negative color and has to be adopted narrowly.
- white: purity and cleanliness. White is the color of brides symbolizing innocence; other countries view white as the color for mourning and is used extensively at funerals. Doctors and nurses wear white to imply sterility.
- black: death, earth, stability, submission. Black is used in fashion because it makes people appear thinner. Also villains wear black.
- gray: sorrow, security, maturity.
So brown is used extensively in the home because it tends to circumvent many of the issues of culture, symbolism, and shapes.
For more information on colors the reader should view the following articles:
- Color Psychology by David Johnson
- Emily Gems (joyful crystals and gemstones: http:www.crystal-cure.com/color -meaning)
- Color selections from Jacci Howard Bear (http://desktoppub.about.com/cs/colorselection)
Your comments are welcomed.
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Fix The Little Things To Sell Your Home and Add Value.
May 15th, 2008 Categories: Buyer and Seller Knowledge Center
Finding inexpensive ways to improve the looks of a ho
me which is being prepared for market or is already on the market can be a great value adder.
If you are handy it simply means taking out the tool kit and doing somethings that make the property look better.
If your are not handy, professionals certainly can be of assistance.
Refinishing. Kitchen cabinets, kitchen appliances, bathroom appliances.
In the kitchen for example replace that old faucet with a new one. Refinish the cabinets, add new new door handles, replace old lighting fixtures.
Do the same thing in the bathrooms. Caulk is cheap. Do it. Replace the toilet seat. Seal the toilet. If the bathroom floor is dated perhaps you can consider installing a new flooring on top.
Sometimes one can replace a tub and shower combination quite inexpensively. Cheaper than replacing perhaps the tile around the shower.
Consider adding closet systems to expand storage. Wire, wood and laminated systems are available and offer a range of storage options. Also when buyers look into the closet (which they will) it will be orderly…..that is a value to the seller.
Keep in mind they have these storage systems available for kitchen cupboards. If you can use them. They can increase storage capacity and bring order to the cupboards. And they do not cost a lot of money. Some assembly may be required.
All those wires that may be frayed or hanging in the rafters in the crawl space, attic or garage. Bundle them. Better still have a professional look at and perhaps replace the wall switches; replace the ceiling fan especially if it is noisy. All of those unsightly mechanical things have them fixed.
Do make sure that the electrical wall outlets work.
Entry doors to the home. A new paint job does wonders. A new door handle and lock set makes things stand out. It tells the potential buyer that you care (pride of ownership).
Not an inexpensive item but one may want to consider replacing the standard everyday water heater with a tank-less system. On an older home this most certainly will be an eye catcher. With utility cost climbing anything that suggests savings is a plus for the home and for a sale. But do your homework. It may not be worth the expense in specific geographic locations. Just a thought.
Your comments are welcomed.
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Buyer’s Love Neatness.
May 13th, 2008 Categories: Buyer and Seller Knowledge Center
50% of the kitchen counter top is covered with STUFF! The buyer sees this and is turned OFF! The bathroom counters is loaded with ”stuff” and the buyer sees this? TURN OFF!
What to do? If you can “box” it! Eventually everything will have to be boxed so do it now. If you
cannot “box” it, put it away in cupboard (or pantry).
You want the buyer to see order. Limit the number of articles on the counter top, provide lots of light, and keep things simple. You may want to consider a small vase with flowers on the counter in both the kitchen and bathrooms. Often candles are put in the bathrooms. If you do this, do so in three’s (just make sure it is an odd number and not even).
Fresh flowers are always nice but manufactured flowers look good today and they can be used.
Oh the kitchen cupboards……make sure they looks neat. Have cans sized correctly and aligned—not just thrown in there. Have the spices all together and aligned. Have bins for potatoes, onions and the like. Have cereal boxes sorted by size. Buyer’s love to see order.
Pots and pans…….have them stacked and have handles pointing in the same direction. Buyer’s love to see order.
Closets……arrange your shoes orderly and by type. Some people also have them by color and type. Clothes hangers should all be pointed in the same direction and if colored arranged by color. Attempt to have some spacing between hangers. This shows openness and most important buyer’s love to see order.
Blankets, sheets, towels……have them folded and stacked neatly by color and size. Buyer’s love to see order.
Dishes, cups and saucers should be neatly stacked. Have the cup handles facing a one direction. Silverware should be neatly put away in a divided tray. Buyer’s love to see order.
Toys….put them all away neatly in a closet or toy box. Buyer’s love to see order.
Neatness and order to a buyer says that you care about the home (pride of ownership). It is a small detail but one that can reap rewards…….one being the sale of the home!
Your comments are welcomed.
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Sell Faster…..Clean Bill Of Health—Polish, Repair and Inspect.
May 12th, 2008 Categories: Buyer and Seller Knowledge Center
Do the minor things before listing your home and benefit.
Those things are: CLEAN; POLISH; REPAIR; and INSPECT. Not necessarily in that order but do it. And yes it may take some muscle.
Under the heading of clean is de-clutter both inside and outside the home. Remove as much from the walls as possible. Remove the clutter in the garage. If you have boxes stored in the garage, stack them neatly and keep them low. You do not want a high rise anything in the garage. Get rid of any piles of anything in the yard.
Personal items are distractions to buyers. That is why it is suggested you remove as much from walls, rooms, whatever. You do not want your home to say “lived in”; you want it to say “for sale”.
Store excess furniture. Minimize the furniture that you have in each room. With furniture less is always better. Less furniture in a room makes it look bigger AND more importantly the buyer is picturing how their furniture will fit and look in a particular room.
Make sure everything is working. If the faucet is dripping, fix it. If doors do not close properly get them fixed. If it squeaks (whatever it is), oil it but get rid of the squeak.
Lights, camera…..action. Make sure you have lots of light. Make sure all dead light bulbs are replaced. When showing open all the shades…..let the light shine in. And yes have the lights on throughout the home.
If you want to see what things look like, look through your camera lens and that is what the buyer sees. If you don’t like what you see, certainly the buyer will not like it. Take the action necessary to make the situation look GOOD.
Be smart. Often there may be an unsightly thing in your neighbors yard. Set your blinds at an angle to minimize this situation. If you have shades pull them down slightly (if you can) to obscure the neighbors yard.
Minimize the use of room deodorizers. Use something natural like vanilla. Deodorizers, when used, give the impression that you are trying to conceal something. Baked bread or an apple pie always smells good.
Oh! One item that tends to always do well to get rid of odors is the use of lemon oil mixed with water that is been sprayed lightly in the home gives a freshness to the air throughout the home.
Windows, it is said, reflects the soul of the home. If the windows are dirty especially on the outside, the buyer thinks everything will be dirty on the inside. Keep in mind that first impressions are lasting impressions. Give a good and lasting impression with clean windows.
Most of the work will have to be done in the kitchen and bathrooms. Keep counters cleared. Put the mixer away, all the utensils in the draw and yes make sure the cabinets and draws are neat. Again if the buyer opens a draw and everything appears to be just thrown into it, that reflects on the whole house.
Closets……make them tidy and odor free.
Hardware floors are always a plus but make sure they look good. It could be money well spent if you had a professional look at your hardwood floors and see what it will take to make them sparkle.
When selling your home buyers are looking at ”move-in” ready. They do not want to think about replacing seals for leaking water faucets, or the work that has to be done to get doors operating properly, or……they just want a move in ready home.
Paint, paint, paint, paint. It is relatively inexpensive but can yield great results. Do not buy an inferior paint. Do it right and it will yield dividends. Take your time or have someone do it for you but a great paint job sings.
Inspect your home. Yes you will have to critic your property inside and out. So a thorough inspection is warranted to make sure that the little nits that need fixing are fixed.
When you have finished your inspection, do it again.
I would also recommend that you have a home inspection conducted. Be ahead of the curve and know what has to be done. In fact if a formal offer is made think about offering the home inspection package to the buyer. This shows that you have nothing to hide. You will have to come to grips with any major repairs so be upfront and generally it works out to every-ones benefit.
Again the buyer is interested in a move-in ready home. So if major repairs have to take place think of how you are going to handle the situation. Fix them before listing or give the buyer a credit so that they can have it fixed. Have a plan.
Remodeling before selling. NO. If you remodel either the bathroom or kitchen it is going to cost you money and it may not increase the value to your home. Secondly you will have limited time to enjoy the benefits. Often a good paint job and “staged” articles will do the trick. Keep things simple and nice.
If you can “stage” your home. Staging one’s home tends to get the seller top dollar and the property is not on the market as long. It is a win situation for the seller and also the buyer.
Now that you have the property ready to show, what does your marketing plan look like and do you understand it. I put this under inspection. It is a stretch but after going through all of the work you certainly want to make sure that your property is being looked at.
Understand up front that open houses do not sell homes. Only 1% or less of homes are sold at open houses.
Less than 3% of homes are sold through print advertising. The Internet, a good realtor are essential ingredients. Variety they say is the spice of life; so is marketing, particularly those best suited to selling your home in your area.
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$ Sense: Feng Shui versus Home Staging–A Perspective.
March 23rd, 2008 Categories: Buyer and Seller Knowledge Center
Feng Shui, an ancient art originated in China some 3,000-3500 years ago, is a mind set of arranging one’s environment so that there is balance and harmony of energy. Harnessing good energy is considered most auspicious so the goal of Feng Shui is to keep positive energy meandering like a stream.
This art form has gain some prominence in the United States over the last 30 years, particularly in relation to the home.
Simply Feng Shui puts one in balance within and outside the home when furniture’s, fixtures, lighting, colors of all array, textures and shapes are positioned to attract the forces that produce positive energy to flow softly and direct this energy to the well being of the homes occupant.
Home staging focus is the same. Professionals home stager’s set about to establish a harmony with colors, furniture, fixtures, lighting, textures and shapes to give the feeling of well being within ones home and outside the home.
Both disciplines are talked about extensively especially when it comes time to sell a home.
Without going into all of the basic philosophy of each most people do not know the difference between the two, nor do they care that there is a difference and a great number think its all a gimmick.
BUT………
I have heard instances of properties that had been Feng Shui and for whatever the reason after the owner (or seller) did what had to be done the property, after being on the market for months suddenly became desirable and sold.
In a situation that I was involved (a rental property that I had listed) was made up of two parts. Part of the home was built about 100 years ago and an addition added about 60 years ago. The floor plan was a simple disaster.
The old, unkempt kitchen was the divider. In front of the kitchen was a great room with fire place, a small dining area, a divided open wall room that had no apparent purpose except to give the overall area some character, accompanied by two bedroom clustered near a single bathroom.
Behind the kitchen was the original entry, converted to a bedroom, making three behind the kitchen and a bath that was ready to be replaced, along with indoor laundry facilities.
This home was sitting on a parcel of about 3/4 acres next to a freeway. But the views were great.
I mentioned to the owner Feng Shui and she immediately jumped at the idea and made the home accommodating adding some old furniture she had stored in the barn and set about cleaning the weeds and set plantings throughout the yard.
It sold. Not for the price that was wanted but sold within 37 days after all the work was done. It had been on the market for nearly 9 months.
Was it Feng Shui or was it in the cards that the home was going to sell? I really cannot say except for the fact that it was a good market and everything was selling.
In yet another situation, I attended a seminar and as part of the seminar my group had to stage a home in Las Vegas. The property was quite new and had been on the market for over 6 months in an up market.
Our group went about staging this property which was almost an all day affair. I found out later that our efforts were rewarded with the sale of the home about 3 weeks later.
With this sample of two I noticed that properties sold when they were cleaned inside and out and the real estate market was good to excellent.
If one wishes to get the EDGE in an up market than Feng Shui and or staging is the way to go.
For a down market, neither have been successful for me. In a down market, PRICE and only price is the name of the game and no Feng Shui or staging will change this. Except recently I have heard of a realtor in Florida applying the principals of Feng Shui and he is doing extremely well (so I am told) in a horrible market.
If sellers of properties in an up market clean the property inside and out they should be in a good position of seeing their property sold. A stager or Feng Shui consultant certainly can come on the scene and make recommendations for a more promotional blend of furniture placement, lighting, colors and fabrics but if you have this gift use it.
In a down market it is PRICE!
In summary both disciplines focus on open space, less clutter, cleanliness, positioning of furniture and fixtures, color, smell, soft music, textures, sense of feel and many other attributes to lend itself to a harmonies environment. It is something that most home owners can do, some not as well as others. Those who cannot blend all of these together well should then call in the professionals. Those that can should save some money and position themselves for a home sale.
Your comments are welcomed.
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8 Years In A Row….Top Of The List……ID Theft!
February 14th, 2008 Categories: Buyer and Seller Knowledge Center
32% of Consumer Fraud Complaints Make Up ID Theft
The Federal Trade Commission in its report shows that ID theft is the top complaint for the eighth year in a row. Napa and Maderia, California and Greeley, CO are the highest areas reporting ID theft.
It can happen to YOU, at anytime … !
In the blink of an eye, unscrupulous identity thieves can gain access to your personal and/or financial information and ruin the good name you’ve worked your whole life to establish for yourself. And If you’re unprepared and don’t recognize that the crime has taken place, months or even years worth of damage can accumulate before being noticed and action can be taken to resolve the problem. The effects can be devastating, putting your and your family’s well-being in jeopardy.
No one is safe from Identity theft … and regardless of what steps you take to prevent it, there is no guarantee you will not become a victim.
The means by which identity thieves obtain an individuals personal or financial information are so numerous that it is impossible to guard against them all and the possibility of becoming a victim always exists for everyone. But precautions can be taken to reduce the chances and safeguards set in place to minimize the effects in the event you become a victim of identity theft.
Reduce the chances … DETER, DETECT, DEFEND!
Here’s some good news… the information contained in this report can reduce your chances of becoming a victim of identity theft … and minimize the effects if you ever do. By taking just a few minutes right now, you can learn how to DETER, DETECT, and DEFEND against identity theft! Read on to learn what you’ll need to do before and after the crime.
In the new Deter, Detect, Defend campaign, The Federal Trade Commission has broken the process of dealing with identity theft into 3 helpful phases, and outlined steps to be taken in each.
DETER – Deter identity thieves by safeguarding your information.
· Shred financial documents and paperwork with personal information-
All bills and account statements, credit card offers, and any other pieces of mail that contain your personal or financial information should be shredded and not just thrown in the trash.
· Protect your Social Security number -Don’t carry your Social Security card in your wallet or write your Social Security number on a check. Give it out only if absolutely necessary or ask to use another identifier.
· Don’t give out your personal information-Whether on the phone, through the mail, or over the Internet don’t reveal your personal information unless you know who you are dealing with. Check with the Better Business Bureau if you have questions about a company’s legitimacy.
· Never click on links sent in unsolicited emails-If it is a company you know and have an existing relationship with, type the web address you know directly into your web browser. Use firewalls, anti-spyware, and anti-virus software to protect your home computer. Keep them up-to-date to guard against the latest threats.
· Don’t use obvious passwords-Common and simple passwords like your date of birth, your mother’s maiden name, or the last four digits of your Social Security number are too easy for a thieve to guess.
· Keep your personal information in a secure place at home-This is especially important if you have roommates, employ outside help, or are having work done in your home.
DETECT – Detect suspicious activity by routinely monitoring your financial accounts and billing statements.
· Be alert to signs that require immediate attention
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Bills that do not arrive as expected o Unexpected credit cards or account statements
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Denials of credit for no apparent reason
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Calls or letters about purchases you did not make
· Inspect:
o Your credit report. Credit reports contain information about you, including what accounts you have and your bill paying history.
o The law requires the major nationwide consumer reporting companies–Equifax, Experian, and TransUnion–to give you a free copy of your credit report once a year upon request.
Your financial statements.
Review financial accounts and billing statements regularly, looking for charges you did not make.
DEFEND – Defend against Identity Theft as soon as you suspect it.
· Place a “Fraud Alert” on your credit reports and review the reports carefully-
A Fraud Alert tells creditors to follow certain procedures before they open new accounts in your name or make changes to your existing accounts. The three nationwide consumer reporting companies have toll-free numbers for placing an initial 90-day fraud alert; a call to one company is sufficient. Placing a fraud alert entitles you to free copies of your credit reports. Look for inquiries from companies you haven’t contacted, accounts you didn’t open, and debts on your accounts you don’t recognize and can’t explain.
· Close accounts- Close any accounts that have been tampered with or established fraudulently. Call the security or fraud departments of each company where an account was opened or changed without your consent. Follow up with copies of supporting documents. Use the ID Theft Affidavit at www.ftc.gov/idtheft to support your written statement. Ask for verification that the disputed account has been closed and the fraudulent debts discharged. Keep copies of documents and records of conversations about the theft.
· File a police report- File a report with law enforcement officials to help you with creditors who may want proof of the crime.
· Report the theft to the Federal Trade Commission- Your report helps law enforcement officials across the country in their investigations.
o Online: www.ftc.gov/idtheft
o By phone: 1-877-ID-THEFT (438-4338) o By mail: Identity Theft Clearinghouse, Federal Trade Commission, Washington, DC 20580
More Ways to Protect Yourself.
Sorting through credit card offers and other unwanted mail may be frustrating and seem like a waste of time, but think twice about just throwing them in the trash … unless you don’t mind increasing your chances of becoming a victim of identity theft. “Dumpster Diving” is a technique where identity thieves rummage through your trash in search of bills, credit card offers, and other pieces of mail that contain your information.It is just one of the numerous ways your personal and/or financial information can be stolen. You won’t even know it’s happened until one day you get a notice from a collection agency for unpaid bills in your name, with a company you’ve never heard of, in a city and state you’ve probably never been in!
Eliminate the Source.
The best way to deal with a problem is eliminate the source. So if you didn’t have those credit card offers and other unwanted junk-mail coming in, you wouldn’t have to worry about how to handle them. Guess what? With a quick phone call, letter or online request … you can save time and energy, as well as give yourself additional protection against identity theft.Here is some information that will help you eliminate the source of the problem.
1. Credit Card Offers
The credit bureaus offer a toll-free number that enables you to get out of having card offers mailed to you for either five years…or permanently. Just phone 1-888-5-OPTOUT (567-8688). You will be prompted to provide some personal information, including your home telephone number, name, address, and social security number. All information provided is confidential and is used only to process your request. And if over time you get lonely for some junk mail and decide that you want to receive the card offers again, simply phone the same number and you will be added back on the list.
2. Junk Mail
The Direct Marketing Association has a Mail Preference Service that allows you to reduce the amount of commercial advertising mail that you receive at home for five years. There are several ways to have your name added to the “do not mail” list. The quickest and most efficient way is to hit this link: Do Not Mail Website.
From the website, you can enter the required information, print the letter, and mail the letter to the address listed below. Or for a nominal fee of $5, enter the required information and hit the “register online” button.
Don’t want to enter your information online? No problem, just mail a letter that includes a brief paragraph requesting to be excluded from the marketing lists, your name – be sure to list all name variations including, Jr, Sr, etc. – current and previous address, and signature to:
Direct Marketing Association
Mail Preference Service
PO Box 643
Carmel, NY 10512
Important note: You will not stop receiving mailings from organizations that are not registered with the Association’s mail preference service, but at least this measure will greatly reduce the amount of advertising mail you receive.
3. Email:
The Direct Marketing Association also has an Email Preference Service that allows you to get out of receiving unsolicited commercial email for five years.
Visit Do Not Email Website. Enter up to three email addresses and a confirmation will be sent to each email acknowledging the request. Replying to each email confirmation within 30 days is required by DMA, or the email address will be deleted and the request will not be processed. Unfortunately, this measure will not eliminate most “spam” email, but again, will at least help to reduce the amount of junk email you may be receiving.
4. Phone:
It’s so well worth the time – if you haven’t done it yet, do yourself and your family a favor, and get on the National Do Not Call Registry. Wouldn’t it be great that knowing every time the phone rings…it’s actually someone calling for you or your family, not someone out to sell you something?
Protect yourself from annoying telemarketers and phone solicitations by putting your home number on the Do Not Call list via this link:
Removing your information from the above lists will not only save you a lot of time and frustration, it will also help protect you against identity theft.
Where to find more information:
http://www.consumer.gov/idtheft/index.html http://www.ojp.usdoj.gov
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Ouch! That Hurts My Credit.
February 11th, 2008 Categories: Buyer and Seller Knowledge Center
Transactions that can hurt a credit score are:
- Transferring credit card balances (people do this to get a lower interest rate).
- Settling debts. Ask your tax preparer about this. Congress gave those who had to give up their home a forgiveness clause. Settling credit card debt for less than owed will reduce FICO score.
- Parking tickets, library fines can decreases FICO score.
- Closing credit cards never helps one’s FICO score.
Basic article source: Weird stuff that hurts your credit and Credit Scoring Myths by Liz Weston.
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Hope Versus Action…
February 9th, 2008 Categories: Buyer and Seller Knowledge Center
Sitting are a number of surfers waiting for the “BIG” wave to ride. But one was more aggressive and found action with a smaller wave. The same can be said for real estate. May buyers and sellers keep waiting for the BIG perfect wave to ride but there are the few that take the necessary action now and succeed.
For your real estate needs give me a call at 805-933-1385. Let’s get on the right wave.
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