Okay, let's say your kindly Uncle Horatio gave you a deed to his property on the condition that you not record it until he dies. Red flag!

What you have in your hands is potentially a worthless piece of paper. Suppose Horatio forgets his largesse to you and sells the property shortly before dying. What claim to the property do you have?

Probably none. A deed is very often unenforceable unless it has been recorded with the county recorder. If Horatio had really wanted to will the property to you, he should have literally willed it to you. (Notice that the laws regarding deeds may vary from state to state, and be sure to consult your real estate attorney should a situation like the above develop.)Now, the point here is ultimately less about Uncle Horatio and more about title insurance.

What we need in real estate transactions is a written contract and deed that has been recorded with your title insured by an excellent title insurance company. That makes it far easier to sleep at night, knowing that the home and property will continue to belong to you the next day. For more information call Beth at 450-5208

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

When interest rates decline, far fewer borrowers show any interest in taking out an adjustable rate mortgage. After all, when rates are low, most of us want to nail down a fixed-rate loan, so that we'll enjoy the low rate in the future when rates rise again. And while that is excellent reasoning, there are still reasons for some borrowers to consider an adjustable rate mortgage...even when rates are low.

*Generally speaking, because the initial monthly payment is lower on an adjustable, borrowers who will be qualified at the lower payment rate may find they can buy more of a house than they could with a fixed-rate loan.

*Those who know they won't be in a house longer than about three years can generally count on paying less out-of-pocket for their home loan over those three years (or fewer) if they have an adjustable rate mortgage that starts lower than a fixed-rate loan. Before discounting this possibility, be sure to sit down and do the math comparison.

*Usually, an adjustable loan is far easier for the buyer of your home to assume than is a fixed-rate loan (which may actually be impossible to assume). The buyer will have to apply for an assumption and probably pay a small fee, but the resulting loan may prove to be a dealmaker for you, the seller. Questions about real estate? Just call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

Most of us have great difficulty translating the way we live into an appropriate floor plan. We can guess at how many square feet of living space we'd like to have; we can perhaps guess at how many bedrooms we need, and how many bathrooms. But the brass tacks and bottom line pleasures of how we live in our home don't really have much to do with the number of square feet it has.

That's why computer programs that help you find a home can actually confuse the issue. You enter the number of bedrooms, the square footage, and other details, and you're served up a smorgasbord of available homes to choose from--but none of them quite fills the bill.

It's another very important reason that you need to work with an experienced real estate professional, not just a computer, when you're looking for the home of your dreams. You need someone who knows the market, who is out looking at all the homes available for sale, and who has a lot of experience in getting to know not only his or her clients' clear needs and wishes, but also the dreams that don't even get expressed, and then translating all of that into the house that fulfills both needs and dreams.

That's what makes it so exciting to be a real estate professional--and why you'll benefit from working with one! For help with all your real estate needs, call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

Clients have called recently with the bad news that they are losing money in an investment scheme−perhaps stock options, perhaps a hedge fund, or another of today's riskier investments. Is there anything they can do, they wonder?

One thing to consider: If they have been holding investment real estate that they wish to sell with an eye to building a real estate portfolio that better suits their plans for the future, but they're worried about the tax liability from the sale of the investment, they might consider selling right away and using the other investment loss to counterbalance the gain from the sale of the real estate.

Long-term capital gains, after all, are decreased in any year by capital losses that may have been experienced. (Investors may also want to engineer a 1031 tax-deferred exchange, as an alternative, and use it to start building a more appropriate real estate portfolio.)

All of which is to suggest that those who are in such a position should contact their tax advisor very quickly and explore all possible alternatives. Better yet, plan your investment strategy with your real estate and tax advisors long before sticky questions arise! So call Beth at 425-450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

Attorney and columnist Robert Bruss believes that a buyer's market, generally, can be defined as a "normal" market. Over the forty years that he's been a real estate investor, he insists, only about 25% of the time was the market characterized by multiple offers and rapid sales and skyrocketing appreciation rates. It's been normal, he claims, to see homes on the market for two to six months and to see the annual appreciation rate hovering slightly below 5%--or, when higher, generally a bit above the rate of appreciation.



But it's crucial to add that what is happening in one market may differ from what is happening only a zip code away. You should check each market, rather than generalizing, when deciding on the price you can afford to pay today.



The "Bruss Rule" looks like this. First, check how long it has been taking on average for the houses that come to market in a particular area to sell. If it's above 60 days, it can be characterized as buyer's market in that area. Second, check the number of homes listed for sale in the area as against the number of sales that closed, and you will gain an idea of the number of months' worth of inventory coming to market. If it's more than six months, Bruss argues the area is experiencing a buyer's market−which is a "normal" market with its own strategies and opportunities. For help call Beth at 425-450-5208.

One of the key factors in creating the fastest and best sale of a home−particularly in a buyer's market−is making sure that the home is as easy for buyers to experience as possible. This means that people can come to see the house very nearly on a moment's notice, that they won't be met at the gate by angry dogs, and that the home will look truly "showable" when they arrive.



The last part can be a difficult trick. You want your home to look lived in and loved, but you also want it to look rather... immaculate. Ay, there's the rub.



Here's a thought: With the assistance of a home decorator, develop a "default mode"−where your home is very clean, very bright, very inviting and full of life. The idea then is to be able to get the house back into default mode quickly whenever interested parties call and ask to see it. And when the home's occupants leave the home for work and school and other activities, they can get into the habit of throwing it back into default mode before leaving.



The better this is done, the sooner someone will purchase the home. It works! For help call Beth at 425-450-5208.

If you move to another state, perhaps because you've found a great place to retire, you may be surprised by the estate tax laws in your new home state. It's a great idea to consult your estate tax attorney and/or tax advisor before making the move so that you know what the effects of your move will be.



Understand that federal estate tax law is a very slippery terrain at the moment. The amount of an estate that is exempt from such taxation currently changes every year, and our legislators continually attempt to change the system even further. To further confuse matters, many states have broken away from federal law and made their own formulas for the size an estate must be before it is taxed. More than a dozen start taxing at a far lower estate ceiling than does the federal government.



It gets even more confusing: Sixteen states, as this is being written, only collect estate taxes. Five states collect inheritance taxes−paid by heirs, not by estates−but do not collect estate taxes. And three states collect both estate and inheritance. The rest do not collect either estate or inheritance taxes.



Worthy of a half hour or so of your estate tax attorney's time? You bet! Indeed, it's always good to run your real estate plans past your tax attorney and advisor long before you act on those plans, and to call upon your real estate and mortgage advisors to help formulate the questions you'll want to discuss with your tax advisor. For more information call Beth at 450-5208.

According to long-time real estate expert and attorney Robert Bruss, "the top reason a home doesn't sell" is very simple: "the asking price is too high."



Okay−but what exactly does "too high" mean? And why can't a buyer who likes your property go ahead and offer less than you're asking for it?

"Too high" means that the asking price simply can't be justified by the recent selling prices of comparable homes located nearby. Today's buyers are far more sophisticated than they were five or ten years ago. They know what homes like yours are selling for and, generally, they are prepared to offer a fair purchase price if they like your property.

However, if you are asking more than makes sense in the current market, most buyers won't think you're a serious seller and, further, will doubt that they can negotiate a fair purchase price with you. So they generally won't even want to look at your home. Obviously, if they don't even look at it, they're not going to make an offer on it.

Your real estate professional can provide all the data you need to check recent sales prices and the specs on the homes that sold. With that, and with the ability to see your home as objectively as possible, you can determine an asking price that will actually hasten its sale, rather than impeding it. For more information call Beth at 425-450-5208.

An elderly woman who found a housecleaner whose service was extraordinarily good wanted to make certain that she didn't lose this great helper. What to do? Without fail, she praised everything that the woman did well and expressed gratitude whenever the cleaner did more than she was asked to do. She also slipped a few extra dollars into the pay envelope whenever the cleaner worked extra hours or deserved extra pay. She wasn't lavish; she was appropriately fair and thoughtful.

Anyone who has sought a helper who provides great service... a car repairman whose work can truly be trusted... a hairdresser who seems to get it right every time... knows how invaluable these people can be in your life. This is not an area where we want to slice the cost as much as possible; we usually want to make sure that the quality of the service we receive is appreciated and will continue.

Okay−so we just moved into town. How do we start putting together our team of people who provide needed services? We ask−friends, business associates, people we meet in any organization we join, whether social or professional or religious, and the real estate and mortgage professionals who helped us relocate. We seek out people with great reputations.

Then we treat them as well as they treat us. Remember−guiding someone to a professional who provides great service is one of the most appreciated things you can ever do! For assistance call Beth at 450-5208.

It should be obvious that few people are excited about lending us money and receiving no interest on the loan. Parents may do this, or friends, but money almost always costs money.



So−what happens when a retailer or other lender offers a certain amount of money for a certain period of time at no interest? What we have here is a glaring need to read the fine print! You may even find a homeseller who advertises that he or she will carry a certain amount of the purchase price of a home for, say, six months without charging you any interest.



What problem could arise? Whether it's a private individual or department store, the offer of money at no interest obviously means they want to make the purchase of what they're selling all the more enticing. It's a bit like the TV ad that promises special bonuses if we act immediately and call their eagerly-waiting telephone operators to place our orders.

Here's the fine-print question: What happens if we don't get the full payment to them precisely on time at the end of the introductory period? The answer, all too often, is that all of the interest that was going to be "free" suddenly comes due. Read the loan documents−always−and get the help of trusted real estate and mortgage advisors. For more information call Beth at 450-5208.

Here's a simple and perfectly legal "nothing-down" transaction: You buy a home with an 80% loan-to-value mortgage and pay the remaining 20% with money pulled out of your existing home with a home equity line of credit.

For many buyers, this can prove to be a gold mine of a transaction" Why? First, those who haven't sold their existing home yet but wish to buy their next home now (and, perhaps, need to move as soon as possible) can complete the transaction. If the existing home fails to sell, it can be rented to help cover the expense of the existing mortgage and the home equity line of credit.

Second, by taking out an 80% first mortgage, the buyers generally get the best available mortgage and interest rate, and rarely face the expense of a mortgage insurance payment. This is a significant money-saver, and it gives you a loan you can live with more happily for as long as you live in your new home.

When your existing home sells, the sale transaction will include paying off the home equity line of credit, of course, and you'll reap your third benefit: You haven't had to use what used to be called "bridge financing," a far more expensive maneuver than taking out a line of credit. For help call Beth at 450-5208.

Have you ever noticed the aristocratic-sounding way attorneys speak of the title to a property being questioned? For one, just the fact that a question has been raised through legal channels puts a "cloud" on the title. That means we're no longer 100% positive that the property is truly yours and yours alone.

If there is indeed a cloud−if, for example, your second cousin twice-removed believes he has a right to partial ownership−a legal action is taken to decide who is right... or to "quiet the title," as if it had suddenly developed a case of the screaming meemies.

Now, if this happens to you, you'll be extremely glad if you made sure that the title was recorded in your name as soon as the property became, so far as anyone then knew, yours. And you will be doubly or triply glad that you hold a policy of title insurance on the property because it will almost certainly be up to your title company to quiet title and make it 100% yours again. They have lawyers who know how to do that, and they pay them accordingly.

Take full, recorded title to any property you purchase or receive as a gift or in any transaction, and always insure your title to make certain you don't have to pay further to prove in the future that you are the owner.

One of the last things you want to have when applying for a new mortgage loan is a recent history of missing the monthly payments on your existing mortgage. At the same time, though, the creators of the credit scoring computer programs know that most people, when faced with a shortage of money, will make a greater effort to keep their mortgage payment current than to make the minimum payment required by their credit cards. Therefore, credit scoring uses credit card payments as a primary indicator of how well a person will handle loans.

Credit scores, as a result, are crunched in ways that may surprise most of us. Your score will be better if you do carry a small balance on a few credit cards and if you make your monthly payments promptly and fully. If you have no credit cards, your score reflects a lack of evidence that you handle money well; if you carry no balance, there is little evidence of any borrowing activity.

Taking this one step further, if you pay off your large credit card balances in one lump sum, red flags are raised. You will need to establish a good payment record after paying off credit card balances in order to firm your repayment record and raise your credit score.

You can and−in many cases should−get help from your real estate and mortgage advisors on this. It means a lot of money to you potentially.

Second homes may seem the province of the super-rich, jet-setters with homes scattered across the globe in the most desirable places. It turns out, however, that over nine million homes in America are second homes. About three quarters of these are vacation homes for their owners, and though they're certainly not all elegant, they are very often prized possessions that provide their owners with a great deal of pleasure and, eventually, profit.

Often, it isn't easy to gain the needed financing with which to purchase a vacation home. The best source in many cases is the equity in your primary residence, which you can generally borrow in a lump-sum second loan at a favorable rate. (In some cases, you can accomplish this with a cash-out refinancing of your existing mortgage, as an alternative.)

Some benefits: The mortgage obligation for the second home can be added to the existing mortgage in most cases for purposes of interest deductibility. Property taxes should also be deductible. And if you rent the house out to others for less than two weeks in any given year, the rental income is tax-free. Above all, though, there is the chance to enjoy a vacation home and watch its value climb−and perhaps, at retirement, to move into the home either for the remainder of your life or for at least two years, so that you can enjoy the $500,000 gains exclusion from taxation (for married couples filing jointly, $250,000 for singles) if you sell. For tax questions please consult your tax advisor. For more information just call Beth at 425-450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

All too often referred to−incorrectly−as "quick claim deed," a quit claim deed does exactly what the words rather oddly express. The person signing it quits all claim of ownership to a property and verifies that with this deed.

A deed is not a contract, not a negotiated set of terms. It is a conveyance, a document with which one or more people give over complete or partial rights of ownership to another person or group of people. It has the names of all parties, their addresses, the date, the legal description of the property, and other formulaic data. It is recorded at the County Recorder's Office, an act which makes it, for legal purposes, known to all interested parties.

Generally, the main deed in a transaction is a trust deed or warranty deed. But there are other kinds of deeds, a quit claim among them. What does a quit claim do? It allows a person or people to declare that they make no claim of ownership to a property, including to a portion of the property whose ownership is in question, like an intruding fence. What does it not do? It does not absolve its signers of any potential liability regarding the property. For example, it doesn't eliminate all liability for co-signors on a loan secured by the property, even though it will eliminate all claims of ownership. For further details, check with your legal advisor. For real estate help call Beth at 425-450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

There is no fool-proof financial formula for divorcing couples to follow when going through the trauma of a divorce. To this, above all, be true, though: Do not make financial decisions based on your emotions.

This is very difficult advice to follow. An example: Divorcing couples often argue over who will get to keep the family home and, sadly, it is often the spouse least capable of affording the expenses of owning the home who ends up with it, often losing her or his right to such things as retirement savings and other investments in the process.

One obvious problem: When a divorce is finalized the amount of potential gains that can be exempted from taxation if the house is sold goes from $500,000 to $250,000. (It can, however, move back up to $500,000 in the future if the homeowning spouse remarries. Consult your tax advisor.)

Most financial advisors suggest that the best approach is to sell the home while the large taxable gains exclusion remains. More to the point, don't let yourself be stuck with an asset that exceeds your needs in size and your finances in cost. It is extremely helpful to discuss this with a trusted advisor. For more information call Beth at 425-450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

As most readers are aware, current tax law allows us in certain circumstances to take a part of our taxable gains exclusion, even if we haven't lived in the home in question for a full two years. If, for example, we've lived in it a cumulative 12 months, then we may be able to take half of the full exclusion. Thus, married couples filing jointly can exclude up to $250,000 in gain from taxation (half of what they could exclude had they lived in the home the full cumulative two years) and a single head of household can exclude up to $125,000.

Fine and good−but what are the "certain circumstances" that allow us to take a partial exclusion? They are "unforeseen circumstances," as CPA Diane Kennedy explains, and they are "defined liberally. They include, for example, natural disasters, a change in employment or becoming self-employed, divorce or legal separation, and multiple births from the same pregnancy."

Note, for example, "a change in employment." This literally can include a promotion, a demotion, a change of your role in your current job, or the creation of a home business. The IRS has made it difficult not to enjoy this exclusion from gains taxation. Don't give up! Be sure to consult your tax advisor. For assistance with real estate transactions call Beth at 425-450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

Even if you were told in the past that you didn't have the kind of seasoned credit record that would allow a credit score to be computed−and have faced the likelihood of higher interest rates or less attractive financing than is available for other people−you should try again. Fair Isaac and Co., developers of the famous FICO credit-scoring systems, has put together a credit-scoring model specifically for those with minimal credit histories.

It's been estimated that perhaps 50 million Americans have not, until recently, had a credit score that might allow them the best available financing. A Fair Isaac official explained, "The consumers who might get a break with the new score include recent immigrants to the United States (whose good payment histories from their home countries don't transfer to the U.S. credit reporting system), college students, new divorcees and widows, those with low incomes, and people whose cultures don't trust financial institutions or large national organizations."

A vast number of people, in other words, will be assisted by the recent programs that cover those with little in their credit histories. And the assistance goes well beyond their ability to buy a home with the best possible mortgage loan. Even auto insurers compute their premiums with the assistance of credit scores, and potential employees sometimes look at credit ratings when hiring. For more information call Beth at 425-450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

An investment property, unlike a personal residence, doesn't allow for a $250,000 exemption of gains from taxation (which is, for married couples filing jointly on the sale of a personal residence, a $500,000 exemption). One way or other, you will have to pay the piper, though there are ways of minimizing and spreading the taxes over a series of years.

Trouble is, far too many clients call at the last minute, saying a sales contract has been signed on their investment property, and what can they do to avoid the tax bite? By then, sadly, there is little they can do. Given more time to put a favorable transaction together, there would be two strategies to consider.

First, you can engineer an exchange in which you end up with a rental property or properties that better fit your financial future. Indeed, you can exchange into a property that, after renting it out for a few years, you decide to move into and use as your retirement home.

Second, you can arrange an installment sale, carrying much or all of the financing and spreading the tax liability over the future years so that it doesn't swamp your next tax return.

One important point: It is always best to sit down with your tax advisor and real estate professional to map out your strategy for every investment property long before selling it−−even before buying it in the first place. So call Beth at 425-450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

We're told that we can deduct the mortgage interest we pay on our "second home," as well as on our principal residence. Just what is this second home?

Basically, it's a vacation home--an alternate residence that we don't rent out. When we rent it out, it becomes an income property and the rules change significantly.

But notice a sweet little tidbit in the tax laws. It's allowable to rent out a second home for up to 14 days in a given year and not even report the rental income to the IRS. If a convention comes to town, or some other event that brings a lot of people temporarily to our area, then you can cash in by renting out your house--and getting out of town. And you won't hear from the tax man.

If you rent the home out for more than 14 days, however, you must treat mortgage interest as one of several expenses of operating the property. It's still deductible, but you don't have to worry with the limitations to allowable deductions outlined in another recent column--and you do have to worry about whether your costs of operating the rental are exceeded by your rental receipts, among other concerns. It's important to know what classification all of your real estate falls into--talk with your tax advisor. For more information, call Beth at 425-(425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

You've decided to do some needed remodeling on your current home, so a bit of "spam" email or a broadcast fax or a call from a telemarketer catches your interest when it tells you it will find you the dream loan for your purposes. All you have to do is to pay an up-front finder's fee.

This dream is almost inevitably a nightmare.

For starters, it's illegal to collect fees for a loan (other than obvious costs, like the cost of an appraisal or a credit report) before the deal is closed. That should give you some idea of the quality and integrity you're dealing with when you work with a faceless lender you didn't even call in the first place.

And if you hear nonsense like "If you've had prior problems obtaining credit, that's no problem here," it's time to run. Prior problems getting credit are ALWAYS a problem with reputable lenders. That's one of many reasons why reputable lenders stay in business. They aren't loan sharks. If they are, get out of the pool...fast!

Find a lender you trust. Study the different loan programs that are now available. If there are any blemishes on your credit record, work on them with your loan officer. You may find a way either to remove them or to work around them, given the flexibility of today's financing. We're talking lots of money here, so you deserve the best assistance possible when borrowing it! So you deserve the best assistance possible when borrowing it! So call Beth at 425-450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

Clients have called recently with the bad news that they are losing money in an investment scheme−perhaps stock options, perhaps a hedge fund, or another of today's riskier investments. Is there anything they can do, they wonder?

One thing to consider: If they have been holding investment real estate that they wish to sell with an eye to building a real estate portfolio that better suits their plans for the future, but they're worried about the tax liability from the sale of the investment, they might consider selling right away and using the other investment loss to counterbalance the gain from the sale of the real estate.

Long-term capital gains, after all, are decreased in any year by capital losses that may have been experienced. (Investors may also want to engineer a 1031 tax-deferred exchange, as an alternative, and use it to start building a more appropriate real estate portfolio.)

All of which is to suggest that those who are in such a position should contact their tax advisor very quickly and explore all possible alternatives. Better yet, plan your investment strategy with your real estate and tax advisors long before sticky questions arise! So call Beth at 425-450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

There is undoubtedly a moment in every real estate cycle that you will eventually look back on and say, "That was truly the best time to buy." Trouble is, most experts will always disagree about what makes a time particularly good for buying.

Is it the moment when interest rates reach their cyclical lows? Perhaps. But what if home prices have reached their cyclical highs at about the same time? Then maybe it was the moment, some time earlier, when house prices reached their lowest point relative to income levels and interest rates were declining.

In the final analysis, who knows the answer to this question? No one. (On the other hand, EVERYONE knows the answer, and we'll get to that.) The big mistake is waiting for precisely the right moment before jumping into the real estate market. It's even harder to identify when it's happening than in retrospect.

The best time to buy a home, as nearly everyone's heart and logical mind truly knows, is when you have found one that truly answers your needs and you can afford to make the purchase. You've doubtless noticed that real estate prices in our area have trended upward for the last century and are likely to continue doing just that. You have enough to think about when finding the right home and the right financing without dwelling overly long on finding the cosmic moment for buying. The cosmic moment, after all, is your moment alone and no one else's. For help call Beth at 425-450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

You are retiring soon, and you'd like to eliminate debt from your life. You've been paying down your mortgage with extra payments toward the principal balance for years and plan to finish paying the mortgage off when you actually retire.

Good idea? I'm sure Ben Franklin would have thought so, but financial matters weren't quite as complex in his days. Homes didn't gain in value then as they do now. If you have no loan against your home and its equity is continually growing, that equity really isn't doing a thing for you. You may end up house-rich and cash-poor.

But the idea of eliminating a long-seasoned mortgage that is providing little in the way of annual mortgage interest deduction is indeed attractive. There are three things that can be done.

First, you may consider refinancing, pulling out a substantial sum from your home and investing it very conservatively. That way, you would have money available to you should you need it.

Second, you might take out a home equity line of credit that will allow you to access money when you need it−and only make payments on it when you do indeed borrow.

Last, you might want to sell your home, and move to a home that better suits your new lifestyle and your financial profile. Your existing home may provide a sense of security. Don't let that security go dead on you! Consult with your real estate and mortgage advisors today. Just call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

Over the years, fashions in home furnishings come and go. We've moved through being dazzled by earth tones, to falling in love with mauve tones to sun-baked tones... and on and on.

None of this is terribly important unless we are trying to sell (and get top dollar for) our house. Suddenly, it begins to make sense to install a gourmet kitchen in place of our old, pragmatic kitchen-like-Mom-had. Why?

Because sellers may receive a higher price if they make certain changes than they would have it they hadn't, and the higher price may even exceed the cost of the changes, as well as hastening the sale.

This is why many sellers eventually feel that they're selling their home at the point when it finally looks the way they wanted it to look. "Maybe," they often say, "we should just stay here."

Maybe. But the fact is, it's important to treat your home objectively, like a product on a supermarket shelf competing with others for buyers. If you like what you create, you have a better idea of what you want to buy, once your home sells. For example, Americans are falling in love once again with the Great Room, a large living space that generally includes the kitchen and often eliminates the need for a separate living room. Many sellers are taking out walls and retrofitting their homes with Great Rooms. Not a bad idea at all, though you should check the cost/benefit ratios before proceeding.

Need more information? Just call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

It is as if millions of Americans woke up one morning and discovered they were living in a significantly different home. They found that it was much more valuable−but not just in dollar terms.

Certainly, homes have been great stores of wealth for a many years. They have also been the heart of many people's net worth, the surest course to wealth-building. And they've provided relatively easy ways to get money quickly and inexpensively for educational opportunities, unforeseen medical problems, creation and expansion of businesses, and consolidation and reduction of other debts.

They have also become, more than ever, the center of our lives−as families, as social friends, as extended communities. We entertain in our homes. We enjoy one another, grow and mature in our homes. We find sanctuary in our homes. We enjoy our hobbies and other pleasures, from reading to watching movies to listening to music, in our homes. We sleep here, eat here, rest here, recuperate here, and find much of the meaning of our lives here.

There is obviously no price tag that can be put on all of that. All of the financial benefits from owning our homes seem nearly to become fringe benefits−albeit huge ones−in this light. No wonder we think of homeownership as the American Dream! For answers to your questions call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

What is a "low" interest rate? Most economic analysts assume that home sales heat up when interest rates are "low" and slow down when rates are "high."

In truth, mortgage rates−when adjusted to reflect the reality of inflation−remain pretty much the same at all times. If the rate of inflation is 2%, for example, you may be able to find 30-year fixed-rate mortgages bearing an interest rate of less than 7%. Low rates? Not exactly.

If the rate of inflation rises by 2%, the interest rate on mortgages tends to rise by a similar amount. Higher rates? If you are looking at the difference between the mortgage rate and the rate of inflation, you notice that it remains fairly constant. Technically, you are getting pretty much the same interest rate, after adjustment for inflation, no matter what the mortgage rate may be. Such are the mathematics of reality.

Of course, there is more to the question than this. Your income doesn't necessarily rise and fall with the inflation rate, so you can afford a larger home loan when interest rates (and the rate of inflation) are lower than you can when they rise.

Still, most homeowners have learned a magical secret about their home loans. Whenever you take out that loan, you are probably paying the same margin over the rate of inflation that you would pay if inflation were lower and−this is the key part−if inflation declines, mortgage rates will as well, and you can refinance into a lower interest rate. And, further, if they rise, you are the winner because the interest rate on a fixed-rate loan stays where it is until you, not inflation or market forces, change it. For real estate assistance please call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

There was, as you know, a revision to the tax code that allows us to exclude from taxation up to $250,000 in gains from taxation ($500,000 if we're married taxpayers filing jointly) from the sale of our personal residence. The rules surrounding this exclusion are, happily, very liberal... which leads to a question many clients have asked:

Is it possible to buy and move into a new home, but hold on to the old home for a period of time, renting it out−and then sell it, still taking advantage of the tax exclusion?

The answer is yes. In fact, we can rent our prior residence out for up to three years before selling it (though it's absolutely crucial that the sale closes before the three years are up). The rules are simple. You have to have lived in the residence a cumulative total of two of the five years prior to the home's sale.

Obviously, you won't want to flirt with the possibility that a sale of the home won't close until after the three years is over, and you'll want the guidance of your tax advisor in utilizing this aspect of the tax rules. The point here, though, is that you can rent out your residence if it proves important or profitable to do so. Just don't give up that profit−and more−by losing the right to exclude all or most of your gains from taxation. For assistance, call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

Let's say you have remarried but kept the personal residence that you shared with your former spouse. Is there any way to resurrect the full $500,000 exclusion from taxation for the possible eventual sale of the home?

The answer is yes. It's really a simple matter. The tax code says you must live in the home for a cumulative total of two of the prior five years in order to claim the $500,000 exclusion as husband and wife filing jointly.

Therefore, you and your new spouse need only reside in the home for two years and, voila, the $500,000 exclusion is available to you if you sell your home. You could even rent the house out for a time before selling, assuming that the provable sum total of all the time you lived in the home meets or beats 24 months.

As always, we strongly suggest that you consult with your tax advisor when taking advantage of such home-related tax benefits. Perhaps the main point to be made here is simply this: Don't make negative assumptions about whether you can hold on to your $500,000 exclusion if extraordinary circumstances come along. For more information, call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

There was a time in the past when interest rates on mortgages reached 18%. There have also been times when rates fell below 6%.

The editor of London's prestigious news weekly, The Economist, pointed out that an 18% mortgage is really no more expensive when all interest rates (and the rate of inflation) are very high than is a 6% mortgage in a low interest rate and low inflation environment. Technically, this is true. The trouble is, interest rates change−constantly.

That 18% mortgage, with high monthly payments that made it very difficult to qualify for in the first place, looks very expensive when interest rates ultimately fall. Similarly, that 6% mortgage looks great when interest rates later rise above that mark.

What is true of real estate, though−as a great many Americans have learned−is that you can refinance your mortgage when rates decline. This means that there really isn't a good reason to wait for low interest rates to buy the home you want and need. Instead, what we should do is wait for low interest rates to refinance the loan that has already served us well.

The difficulty is one of perception. When rates rose to 18%, we began to get used to higher rates, thinking we'd never see single-digit interest rates again. Similarly, when rates fell to 6%, we got used to that−and 7% rates seemed obnoxiously high. The reality is that, while interest rates change constantly around us, the value we get from our home is amazingly constant and strong. Sometimes, the bigger picture puts you in closer touch with reality! For real estate matters call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

Along with all the wonderful things brought to us by the Internet, a few terrible things have developed as well. Think: spam and scams.

Crooks, some of them very sophisticated, have developed ways of relieving us of our money and, worse, our financial identities through Internet trickery. One racket has come to be called "phishing." A message is designed that looks like it came from a large company−perhaps a bank, perhaps a stock brokerage, perhaps a dot-com firm like eBay. In rather urgent terms, the message asks us to help the company check and update its records. Please, the message says, fill in the following.

And included in "the following" are such items as social security number, PINs, and other very private and important personal financial codes. If you provide these numbers, you are likely to lose a great deal of money and, very possibly, your creditworthiness, not to mention a lot of sleep.

When should you send such figures through the mail? Almost never. Be completely certain you have checked out the company involved. Call the bank or stock brokerage or whatever. See if the request is legitimate. (If it asks for PINs and social security numbers, you can rest assured that it isn't.) And reported suspected phishermen to www.ftc.gov. For real estate assistance call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

The odd title above is a phrase one of my real estate law professors used constantly. It means, as you have probably already realized, that you don't have an enforceable part of a contract unless it's actually in writing.

Here's a good case in point. Some condominium developers have begun to insert a "right to repurchase" clause in their sale contracts. Buyers who decide to rent or sell their condominium before having lived in it for a year must, if they agree to this clause, give the builder the first right to repurchase the unit at its original price. (That last item is a bit of a stinger, no?)

Now, given the fact that most lenders impose restrictions on the loans they make available to buyers in a condo development occupied by an unusually high percentage of renters, this clause makes some sense−as regards renting. But it doesn't make much sense, though it is perfectly legal, as regards selling. Buyers who object to the clause may occasionally be told, "Don't worry, we won't actually exercise this clause." But if the buyers don't have that in writing, they have nothing but a restrictive−and enforceable−repurchase clause.

Real estate attorney and columnist Benny Kass suggests that the following wording be added to the repurchase clause: "Notwithstanding anything to the contrary, should the Purchaser have an emergency -- such as a health problem -- which requires the relocation of the purchaser, or should the Purchaser be obligated to move to another location as a result of employment conditions or hardship, this repurchase agreement shall be null and void." And he insists: Make sure it's in writing! For Real Estate help call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

Not long ago, we paid very little attention to our credit reports unless we wanted to take out a large loan−to buy a home, for example. Now, however, our credit reports and credit scores are being used by most of the lenders we deal with−including those who decide to raise or lower the interest charges on our credit cards−and even by insurance companies deciding how high our premiums will be and potential employers deciding whether to hire us.

Consequently, it is important to stay current with our credit reports and credit scores. And there are still more reasons to do so:

*We need to watch for errors that may have found their way into our credit records. Credit reporting agencies and creditors are required to investigate anything that we question. The law is on our side, but it won't do us any good if we don't actually do the questioning.

*We need to make sure that payments we've made have been credited to our accounts in a timely manner. If not, time for another investigation.

*We need to watch closely for identity theft, a crime committed against roughly 50 million Americans. If accounts are given new addresses and unpaid balances skyrocket, it's time to act−quickly.

*We need to watch for inquiries into our credit histories. The more that show up in our records, the worse our credit scores can become.

*And we need to watch for credit fraud, for charges made against our accounts by someone other than ourselves.

Your real estate advisor can help you get the assistance you need, just call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

It happens sometimes. You've bought a new home, the deal has closed, it's time to move out, and your existing home hasn't sold yet. If you're thinking your home will look better empty to prospective buyers, think again. Every room looks smaller and less inviting if the house is empty. That's why home builders pay experts to create furnished models of the homes they are building, rather than just sending buyers out to look at empty, incomplete homes.

You will increase the salability of your existing home, therefore, if you can leave some furniture behind until it sells. Indeed, you have a chance to create your own "model home," furnished lightly but in a welcoming way, with bright lights and open windows, with house plants and pleasant art, and with no piles of "stuff" clogging the closets, garage and hobby room.

If you can't leave furniture behind, the least you can do is to leave a few decorative paintings and photographs on the walls along with houseplants. You might also leave photographs of each room when furnished, and write a brief essay on how each room was used and enjoyed, and how it might be used and enjoyed in the future.

There are few times when it is more important, both for your peace of mind and your pocketbook, to have a real estate advisor whom you trust, whom you can communicate with openly, whose efforts on your behalf you are truly confident will continue, resulting in as profitable and rapid a sale as possible. And maybe the most important factor of all: Make sure you have priced your home realistically and with great care. Now is not the time to price above the market, hoping to squeeze extra dollars from the sale. Studies show that the opposite will result, and that realistic pricing will bring in the highest offer. For expert assistance, call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

It should surprise no one that Americans have far more invested in their personal residences than they do in the stock or bond markets. There are ways that we can make sure our investment is well-protected, too. Consider the following simple tips:

*Make sure you have smoke and carbon monoxide detectors installed in key places throughout your home, especially in the vicinity of the kitchen and the bedrooms. Remember to check the alarms regularly.

*Install fire extinguishers in key places−the kitchen, bedrooms, near a fireplace, in the garage−and remember to check these as well.

*At least once every ten years, have an electrician examine your home's wiring system and make any necessary repairs or upgrades.

And here is perhaps an unexpected addition to this list: Stay on top of your budget, making sure that you have enough savings to cover monthly mortgage payments if your income falls off temporarily−even making sure that you can continue to afford both your home payments and all of the other obligations that face you every month.

Work with your real estate advisor and financial advisor to make sure you are using your home as the foundation of your financial life, not as a luxury you find difficult to afford. Your home can and should protect you not only from the weather but also from financial shocks, and it should also help with medical emergencies and business, investment and educational opportunities. For professional real estate advice,

call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

Most experts advise buyers ALWAYS to have their next home thoroughly examined by a licensed inspector well before the purchase of the home closes. In truth, it is important both for the buyer and for the seller as well. After all, if a structural problem were to arise after the purchase closes, the seller could still be liable for expenses−and this time, there may be legal expenses as well.

Is this the only time a thorough home inspection is beneficial? Not at all! If you take a proactive approach to your home's maintenance, you will very likely save thousands of dollars that would otherwise have to be spent if you discovered problems after they have become severe.

Many real estate experts suggest that we have our homes inspected every three to five years. They also suggest that we tag along with the inspector, because we're likely to get an education from an expert about the workings of our own home. And when the inspector delivers the resulting report−read it with care.

This is a bit like the treatment we should accord our own bodies−getting annual check-ups, making sure we undergo certain tests regularly, experiencing the best possible health and catching any potential problem while it can still be overcome. This is one of many areas where ignorance is definitely NOT bliss−and careful concern can save more than dollars. For assistance,

call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

On the surface, this seems a very odd way to evaluate how much someone should pay for their homeowners' insurance, but insurance companies have for many years been factoring into their analysis the credit score of an insurance applicant. In other words, if you have a poor credit record and, as a result, a poor credit score, an insurance company is likely to charge you more for your insurance.

Officials at insurance companies explain that extensive studies have shown a very specific correlation between a person's credit score and his or her likelihood of filing insurance claims. No one knows exactly why this is so, but insurance companies have been running with this information for quite some time. Thus, if your insurance premium rises mysteriously, you may want to check to see if your credit score has risen recently.

This is one of many reasons that we should pay relatively constant attention to our credit records−check the credit reports from the three top credit reporting agencies, making certain there are no errors as well as finding ways to keep our records as clean as possible. This is no longer a matter that we can put on the back burner until we decide to take out new home financing. It affects our ability to get any kind of loan, our insurance premiums, and an increasing number of aspects of our financial life.

Thankfully, the credit reporting agencies are now required by law to let us see our credit reports once each year and, for a small fee, to see our credit scores as well. It's worth the effort. After all, a higher credit score might allow us to ask our insurer for a lower premium−and will definitely improve our ability to get loans. For more help with real estate issues call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

A pair of young entrepreneurs bought a small, corner market with a fearsome record of hold-ups and burglaries. Previous owners had covered windows with both bars and posters, assuming that less visibility would result in less attraction to robbers. Seeing the error in this thinking, the new owners cleared everything out of the windows... and the robberies ceased.

For this reason, brightness and visibility are key elements not only to the warmth and cheer a home provides, but also to the safety you experience in it. This is not to say that you should live in a fishbowl, but that you should minimize the ways in which someone unwanted can enter your home unseen.

A few hints:

*Shrubs and trees that make downstairs windows invisible from the street should be trimmed and, in some cases, replaced.

*Motion-detecting lights, judiciously placed, not only bring a bright light to the shadows if someone approaches; their surprise value can deter frightened burglars.

*And, taking one other hint from the young buyers of the corner market, build good relationships with your neighbors. The more eyes there are watching out for one another, the more visible any illicit behavior becomes.

This last point is perhaps best embodied in Neighborhood Watch programs. There is no deterrent in the world like living among friends. For more information regarding real estate, call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

You know the old expression about real estate: "Location, location, location." While the importance of location is still very true--there are few things more important to a local real estate market than that it be located close to an area where economic growth is creating jobs at a rapid pace--the issue of price has become equally important. Not just selling price, asking price.

Perhaps it was once true that no matter what price you asked for a home, buyers can still come in with whatever they are willing to pay. It isn't true any longer. A property whose asking price is way off the mark won't even be looked at, much less have offers made on it.

Why is this? Two reasons, though there are probably more.

First, we've all become a great deal more sophisticated about real estate. We're not wild horse traders, we're dealing with one of the most important investments in our lives.

Second, most Americans have grown increasingly value conscious. Recent surges in real estate sales have been inspired by the possibility of buying a home that will suit the buyers' needs well into the future with financing that will help keep the cost of living down, rather than by some spending mania. And that is because we all remember too well the difficult seasons of the recent past, the time when job security looked very doubtful, when personal debt levels rose tenuously.

Buyers are looking for a house that is priced right--before they even look at the house. You need the assistance of a seasoned real estate professional to gather all the data and come up with the right price. It will make your home sell faster--and far more profitably, as many recent studies have shown. Questions? Just call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

As we have all come to learn very quickly, the convenience of being able to communicate quickly and easily with family, friends, associates and clients comes with a price. Along with wanted messages, there is an endless array of trash in our email, and we usually have to pick carefully among the irritating ads to find the messages we should open and respond to.

With that in mind, many clever and devious scam artists have created email messages that look like they come from your lender−credit card or mortgage−or your bank. So you look at them carefully. They then warn you that someone is trying to commit fraud, using your account, and ask that you send in some verification of who you are, including your social security number and other valuable information.

Someone is, indeed, trying to commit fraud. The person sending you this email. Remember this simple rule: No legitimate agency will ever send you a request for such vital information in a phone call or an email. So don't send it to people making such a request, whether they claim to be your bank or your potential source for a great mortgage. Play it safe. For help with all your real estate needs call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

Let's say you own more than one home. Which of them, for the purposes of taking the allowed $500,000 gains exclusion on sale of the home ($250,000 if you're not married), is your personal residence?

This can totally throw you, as it did a Mr. and Mrs. Guinan, who live in... well, their home in Wisconsin, their home in Georgia, and their home in Arizona. As it happened, they sold their Wisconsin home, assuming that the IRS would see it as their primary residence, and attempted to bypass a large amount of potential capital gains taxation, primarily because they lived in their Wisconsin home a bit more than they did in the other two homes.

The IRS, though, has a "facts and circumstances" analysis, which U.S. District Court Judge Paul G. Rosenblatt (in Guinan et ux v. U.S.) called upon, and the judge decided the Guinans, amazingly, simply had no principal residence, for tax purposes. It turns out they had never paid state taxes in Wisconsin, had never voted in a state election, had done few of the things that would identify their Wisconsin home as their principal residence. So the judge said they owed the IRS $45,000 in capital gains taxes.

This is an error all owners of multiple residences can fairly easily avoid. Consult with your tax advisor. Make certain the signs leading to your principle residence are clear for the IRS to see. For expert real estate assistance call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

Generally, the answer is 'No'−though there are exceptions to that rule. The first thing you should consider when timing the purchase of a residence is your own needs. When do you need that home? Probably the sooner the better.

The fact about timing a purchase based on interest rates is that rates are very hard to call−and they're only part of the picture. As homes are appreciating, the benefits of waiting for a time when (and if) rates decline fade away as home prices rise and time passes in which you've not had the benefit of owning an appreciating home and deducting many of the expenses of ownership on your tax return.

The issue, bottom line, isn't so much how low your interest rate is. It's how well the financing works for you. If you can't afford a home, then you won't buy it. If you can, you will nearly always be wise to buy−if the home truly fits your present needs and your future plans.

Trying to get the lowest possible rate on a loan can sometimes blind you to the fact that you may not be getting the best possible−and, over the long haul−least expensive loan. A 7-year hybrid ARM, for example, may work far better for you than a 30-year fixed-rate-mortgage. The best approach is to assess your needs, and then study the mortgage market carefully... and with a very open mind. For answers to all your real estate questions call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

Almost all of us have become aware that we can't deduct the origination expense (or "points") we pay to take out a refinancing loan in the same way that we can deduct the points for taking out a loan with which we purchase a new home.

For the purchase money loan, the origination "points" (figured as a percentage of the total loan amount) are deductible in the tax return for the year in which they were paid. For the refinancing loan, those origination "points" can only be deducted over the life of the loan−generally 1/15th or 1/30th of the total "points" each year. Thus, if you paid $3,000 to take out your refinancing loan, you will generally deduct about $100 or $200 a year, rather than taking the full $3,000 deduction for the year of origination.

But there is an exception, and it's a very helpful one. If you did a "cash-out" refinancing that pulled out some of the equity from your home and you used that cash to make qualified home improvements, the portion of the origination "points" that went toward that part of the loan origination will be fully deductible on the relevant income tax return. Contact your tax advisor for details. For help with real estate call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

Most of us−maybe all of us−want to be sure that we've gotten the lowest possible interest rate when we apply for a home mortgage, whether a purchase money loan or a refinancing loan. No news here.

The news, though, is that it is far more difficult to be sure you have the loan that will cost you the least than most people realize. With an adjustable rate mortgage, it's impossible to predict where the monthly payment will go over the life of the loan. With a fixed-rate mortgage, you know that the monthly principal and interest payment will remain the same over the life of the loan, but do you know that you are paying less for Loan A than you would have for Loan B?

Truth is, you may not. And the federally-mandated Annual Percentage Rate (APR) is rarely much help, because even two different computer programs−not to mention people−will come up with different APRs for the same loan because they ignore different fees.

What to do? Check the Good Faith estimates and, better, copies of closing statements for the loans you wish to compare. Add up all the costs. Do the math yourself. Equally important, find the best and most compatible mortgage and real estate advisors that you can. For assistance with all your real estate needs call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

We all want to make certain that the home we choose to buy−and the mortgage loan we choose to finance the purchase−make the best rational sense possible. We wanted a four-bedroom home and, by gosh, we found one. We wanted a 15-year fixed-rate loan−found one of those, too.

But there's a problem. Many of the reasons for buying a particular home are like our reasons for liking specific foods or, more dangerous yet, are like the "reasons" that we fall in love and get married. It's a good idea to have a fine check list of rational, left-brain reasons−but you will sail at least half of the decision process under the radar if you fail to check into your emotional "reasons" as well. Indeed, if you don't do so, you will almost certainly get bogged down in rationalizations.

Most people make their first "buying decision" within a few seconds of entering the home they eventually buy. It's not a rational process. That's why it's so difficult for most of us to translate our way of living into the home we need to buy. We mumble things about square footage and how many cars can get into the garage, overlooking the things that are simply too difficult to translate from theory into reality. That, it turns out, is the job of your real estate professional−to hear what you tell her or him about your likes and dislikes, your needs, your plans, your dreams. Let your real estate professional turn your rational and emotional plans, needs and dreams into reality. Just call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

One of the great pleasures that a real estate professional is privileged to experience is the moment when clients walk into the home carefully chosen by their real estate advisor and they say, "Ahh!." They walk around a bit, smiling, and say, "You mean, we can afford this?" They look the entire home over and say, "This is the one! Thank you."

In order to reach this moment, several rational steps must first be taken. We need to know how much the clients can comfortably afford to pay for their home. We need to know how much lenders are willing to loan them. And most important, we need to sit with the clients and listen, long and carefully−finding out what they like (right down to their favorite colors and styles), finding out how they live in their home, finding out what they want their new home to provide.

Armed with this information and a profound awareness of what is then available for sale, a good real estate professional can find the right house−and it's a process that combines the careful sorting of all the data s/he's taken in by listening deeply to his or her clients, a rational appraisal of the situation and a healthy dash of compassionate intuition. Not an easy task, but it's what we get paid for−and the happiness in our clients' reaction to the right home is a large part of the payment! For help with fulfilling your dreams call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

How does the real estate professional earn his/her fee? By doing the work set forth in a listing contract, by marketing your home effectively, by helping to negotiate a sales contract that meets your needs and wishes, by shepherding the transaction to a successful closing. And if he or she represents the buyer, then the fee is earned by helping you to find the home that best suits you, by negotiating a transaction that fits your financial profile and other needs and by guiding the transaction to its closing.

And there is more involved, usually unseen by most clients. There is the training; the study to stay on top of real estate tax matters, legal developments, market trends; the constant review of the marketplace, what is for sale, price appreciation, buyer trends; the time spent creating effective advertising for listings, flyers, open houses; the calls to potential buyers, the contacts with other agents. There are times when everything must be dropped because a document has to get from point A to point B in less than an hour. Times when tempers need to be soothed, inspectors let into the home, lenders given a better idea of the true value of the property than mere mathematics can provide. Like teachers, real estate professionals are at work long after class is dismissed. For assistance with all your real estate needs just call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

On a whim, you decide to cruise a few Open Houses in a neighborhood you find attractive--just to get a feel for the market. And what a feeling you get!

The first house you see makes your brain purr from the moment you step in the front door. You can see your favorite painting over the fireplace, your piano in the corner. You can hear your favorite music piped throughout the house, hear the sound of your children happily at play in their rooms, see the sun shining through the windows on all the furniture and possessions you've collected over the years.

In short, where do we sign?

Please--not so fast! Hold on to the love you have for this home, but give yourself a chance to do some close and careful investigation with the assistance of your own real estate advisor. Learn all you can about the neighborhood. Look at the prices homes in this area have been commanding recently. See where the house you love fits into the actual range of prices of similar homes.

Having taken these steps, you will then be ready to make a reasonable offer, based on actual data. And if you study your financing options, you'll also know exactly what you can afford...and you'll be ready to take a strong offer to the seller. For assistance, call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

As we've seen in other columns, adjustable rate mortgages may be preferable for a few home buyers, even when home loan interest rates are low. What, though, are the clear advantages of a fixed-rate loan over an adjustable?

*Peace of mind. You know you're not going to wake up tomorrow morning with a higher interest rate and higher monthly payment amount. It's a done deal.

*When there is an underlying long-term trend toward higher interest rates, you are very likely to spend less on your home's financing with a fixed-rate loan if you live in the home longer than three years−possibly a great deal less.

*There is even an element of flexibility, because most fixed-rate loans allow you to pay an extra amount toward the principal balance every month, thus reducing the number of months you'll have to make payments and potentially reducing the overall amount of interest you pay by a great amount. For more information call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

You're out looking at homes and you stop at a glorious-looking house with a 'For Sale' sign. Stepping out of the car, the beauty of the home's façade and the richness of the landscaping take your breath away. "This must be the one," your mind says.

Trouble is, you won't be living in the front yard, exquisite though it may be. Take a deep breath and step inside, remembering to keep this mantra running in your mind: "Will this home serve the needs and dreams of each member of our household extremely well?"

If, dazzled by the front yard and façade, you find yourself saying things like, "Well, we can take out that dining room wall, and we can add another bedroom, and it's okay that there isn't a bathroom downstairs," stop, take another deep breath and repeat the mantra. You are looking for a home to LIVE in, not a home to be photographed in. Granted, it's important, even nourishing, to live in beauty−but not at the expense of having your many needs met.

Because finding a home is inevitably a rather emotional process−as it should be, because we're dealing with the emotional aspects of our lives as well as the practical aspects−it is extremely helpful to have the support and assistance of a real estate professional who has listened carefully to what it is you do in a house, how you live, and what you want. If you have questions, call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

A great many years ago, it wasn't that difficult to own a "beach shack" as a second home. Modern transportation has changed that dramatically. Where the beach shack used to be cheap because it took so long to drive the narrow roads to reach it, the land where the shack used to be is now generally easily accessed by freeways and highways. In short, people can live there and commute to work.

So the vacation home is either a remarkable luxury, available only to the very wealthy, or a home in a distant location that is still difficult to reach. The latter vacation home still exists, by the way. It may be in a different state, or near a mountain lake, or in the beauty of a desert. It just takes research to find it...and it should be purchased with all the care that is normally devoted to the purchase of a primary residence.

Unless it is primarily a rental unit for its owner, the vacation home is most likely the owner's "second home." A rental unit is usually in a more popular area with easier access and great appeal. There are usually firms that handle the renting and upkeep of the unit, though the owner may stay there for a limited time each year, ostensibly to do repair work (and to get in a little skiing or sailing as well). The second home, though, is almost always available−-a retreat that may someday become the owner's primary residence. Both options are well worth exploring with your real estate and tax advisors. Just call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

There is a difference. A second home, for tax purposes, really isn't one that we rent out more than, say, two weeks of any years. Conversely, we only stay in an investment property for the brief time it takes to do repairs each year. (Check with your tax advisor on how to approach these matters.)

And yet...a second home can indeed prove to be a great investment, just as your primary residence can. If indeed it qualifies as a second home for tax purposes, then you will enjoy all the tax benefits you get with your first home, including deductibility of mortgage interest and property taxes (within specific potential limits) and extremely liberal exemption from taxation of gains when you sell the home.

For most people, the second home is usually a vacation home...and often a home that they are likely to move into full-time when they retire. For some, a home may move rather fluidly from being an investment property one year into becoming a second home another. With good advice, the homeowner can make the most of ownership benefits at different times during the years s/he owns the home−during the different phases of his and her own life. For good real estate advice call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

This is a very involved question. Is it better to remodel your existing home or to find the home that answers your needs and move into it?

Truly, you will benefit by discussing the matter at some length with your real estate advisor, but let's look at a few of the more obvious considerations.

The reality is that you are usually better off finding another home that truly meets your needs and wishes. You can do the necessary research and wind up very confident that your next home's value hasn't been distorted by additions to or subtractions from its original design, and isn't out of line with the value of other homes in the same neighborhood. Further, you don't have the problem of trying to fit square pegs into existing round holes, or newborn children into former closets.

By far the most important issue is to know exactly what you need your new (or remodeled) home to provide you. The second issue is sheer economics. Not only do you need to see whether you can get the money back out of your house that you put into it in a remodel, but you also need to look at market conditions. Is it reasonably easy to sell this home today? How easy or difficult is it to buy another? What would the differences be between financing your remodel and financing the purchase of another home? Again, be sure to talk with your real estate advisor about these questions. Just call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

Amazingly, there are financial advisors who suggest that we shouldn't view our homes as investments. They are where we live, say the advisors, and we shouldn't expect more from them than that.

Nonsense. Most people have built up more net worth from the rising value of their residence than from any other single factor. Most of us use our homes as the foundation of our entire financial life. And most of us will sell our home at a sizable profit at some point. Therefore, it makes good sense to treat our home as an investment--to take extremely good care of it, remembering that we'll want it to look attractive to a buyer at some point.

That said, it is also worth reminding ourselves that our home is where we live, and that the point of being alive is to live well. Choices we make about how to decorate our homes--the colors we want to surround ourselves with, for example--shouldn't be based slavishly on what we think a potential buyer will want. We're the people living in the house, after all. So let's live! Let's choose the colors we want, the appliances and furniture that serves us, the decor that makes our hearts sing. Do we play a certain kind of music in our home because we think potential buyers will like it when we eventually place the home on the market? That, of course, is nonsense. So is living in our house for someone else who won't see the house for years. Need help or information on real estate? Just call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

It's odd when you think about it. What could be a better example of local democracy than a planned development with its own homeowners association? There, the elected representatives discuss and decide on issues affecting all of the development's residents in meetings which all residents may attend and take part in.

Sounds great. The only trouble−-and this is always worth contemplating−-is that an effective democracy is an extremely difficult and fragile system, always needing care and feeding, always requiring each of us to compromise now and again, to listen carefully to others, and even to admit now and again that we were wrong.

So, here's the crux of the matter. Not everyone who moves into a planned development with a homeowners association really wants to participate in something that can be as cantankerous and grueling as self-government. For that reason, it may be very important to attend a few homeowners association meetings before deciding to buy in a particular community. If you like the process you see and want to be a part of it, great. If not, you may do well to think long and hard about whether you want to be a part of such a community. For assistance with decisions about real estate call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

Everyone has his or her opinion of certain places, especially when a question like this arises: "Would you like to live in....?" Fill in the blank. You will get a wide array of answers, most of them strongly worded.

So whom do you believe? Thankfully, it's now possible to do your own research and find out for yourself. After all, one man's meditation garden is another man's weed patch. We all have different needs, and we can now avail ourselves of ways to discover whether a particular area meets those needs.

Step one is to go onto the Internet. Most areas have various websites, from the Chamber of Commerce to local businesses to local neighborhoods. They can also lead you to addresses of organizations that will send you informational material on the areas that attract you.

Then spend time in the places you're considering moving to. Walk the streets, shop the shops, look at the schools, check the amenities. And when you've found specific neighborhoods, check them out at different times of the day and night−-even noticing where the sun rises and falls−-and check into seasonal weather patterns. Something in you will click when you're in the right place−-give yourself every opportunity to know. For more information on moving call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

Here it is: Do unto your neighbor as you would have him do unto you.

When your neighbor is trying to sell his or her home, buyers look not only at the home for sale; they also glance in your direction. And if your home, from the street, is a mess...it could prevent most buyers from paying serious attention to your neighbors' house.

Truly, a homebuyer purchases a whole neighborhood, including the local schools, the local grocery store, the library...and the appearance of other homes. If other homes are beautiful, the buyer knows that people in this neighborhood have and display pride of ownership and that this is likely to be a pleasant place to live.

There is an eventual poetic justice here. If the appearance of your neighbor's home is throwing a wet blanket over the sale of yours, the time will come when that neighbor wonders why the entire neighborhood is on a downward slide and it's become so difficult to sell his own home. All of which can be easily avoided, of course. Do unto others as you would wish them to do unto you. For help with real estate call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.

Your yard is an increasingly important part of your property. Studies have shown that more buyers than ever view backyards as one of the most important amenities of their new home, a place to have mini-vacations, to enjoy the community of family and friends.

Here's the tricky thing about a backyard. If you pay little to no attention to the yard for a few years, it will bite you in the wallet. It is astonishingly expensive to make a yard attractive when it has been left to its own devices for too long.

How do you avoid these expenses? Start today. A yard can be approached step by step; indeed, it is far better to do it that way than to try to revamp it all in one big step. Every step you take, every plant you add, every bit of TLC you provide will pay big dividends when you eventually put your house on the market.

Start today. Your yard is a huge part of the salability of your home. For help with all your real estate needs, call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.