General Comments on the Blog Posts (so far)

I have made comments on each individual blog posts.  Here are some general comments that apply to all or most posts.

*Make sure that all writing is your original work and use citations appropriately.
*When citing references in the body, use the author's last name (year of publication).
*For references, be consistent and do not use just a URL.
*Every post must have a title.
*All group member names must be at the top of the post!
*Please proof read all posts carefully.
*Watch spelling and grammar.
*How about some pictures, tables, figures, etc. to break up the text?

I see some post with very good potential.  Also, some very good improvements over the last submission.  All groups have room for improvements.  Keep pushing forward but all final post are due on December 2nd.

Financing your home

There are many different ways to finance your home and in today’s economy it is key that you find the best mortgage that will fit you. First you must asses what type of loan you are looking for or if you qualify for government aid when financing your home. You must take in consideration the time that you plan on living in your home or if it is just a business decision.

The first loan that we will be discussing is an Adjustable-Rate Mortgage loan. This type of loan’s interest rate is adjusted based on the current financial market. You have the ability to sometimes set the loan period of 1,3,5,7 or 10 years in which the interest rate is then adjusted annually. You may have the option to have the first few years of the loan locked into a fixed rate and once that time period is up the Adjustable-Rates will then begin in affect.

The next type of mortgage that is typical when financing a home is a fixed mortgage. This is a more appealing loan for home buyers because your interest rate if fixed which gives the buyer a heads up on what the cost of the home will be for the duration of the loan. This type of loan typically is for a 30 year mortgage in which monthly payments are made for the life of the loan which are fixed at one rate. This type of mortgage allows for the home buyer to plan financially for the future because they can estimate their total cost of the loan as to where an adjustable rate mortgage doesn’t have that luxury. A very similar loan to the 30 year fixed rate mortgage loan is the 15 year mortgage but with slight differences. The payments for a 15 year mortgage will be higher but you will have a lower interest rate because the loan will be paid back in half the time of a 30 year mortgage would. It is good to asses if you can afford this type of loan and pay off you home sooner then caring out your loan for 30 years.

If as a home buyer you qualify for a Federal Housing Authority loan or FHA loan then you might want to take a good look at this loan. This type of loan typically targets new home buyers because the payments for this loan will require smaller down payments than typical loans from other lenders. The terms of these loans are usually set for 30 years and are targeted for purchases around moderately priced homes. One draw back is meeting the qualifications of this type of loan but if as a home buyer you are able to get this type of loan it could be a very appealing loan. Another government loan that requires qualifications by the buyer is a VA loan which stands for Veterans Affairs. This loan is through the Department of Veteran affairs and can be combined with a second mortgage. The payment for a VA loan are typically lower than your average loan and also may or may not require a deposit in order to purchase your home. These mortgages are typically for 30 years and can also be passed on to another person who meets the Veteran requirements of the loan.

If you have the extra money there is a type of loan which allows you to pay extra money to the lender which then lowers the interest rate of the loan. This type of loan is called a Buy Down Mortgage Plan. This loan may have high initial cost but it gives the buyer the option for having lower payment during the life of the loan which is also typically 30 years for this type of loan. This may be an appealing loan because it allows for more flexibility financially for the buyer in the future than a typical loan because you would not have the burden of a large house payment as you normally would in a standard loan.

In order to finance your home you must take in consideration your main goal as a buyer. This will then allow you to pick the right mortgage loan for you. You might want to asses the current market rates and research before you commit to one type of loan over another. In times such as these where the country is economically on a low many people are looking to save more money than ever and finding the right mortgage is a good way to start. Purchasing a home is a big commitment which takes a lot of time and effort by the buyer so educating yourself in the different mortgages will give you an upper had when approaching a lender for a loan.

Victor Ramos, Allen Perry

First-Time Home Buyer Tax Credit May Be Flaw

Buyers are racing to take advantage of The Worker, Homeownership, and Business Assistance Act of 2009. Additionally, President Obama has extended the first time homebuyer tax credit which is part of the American Recovery and Reinvestment Act of 2009. The new time frame is November 7, 2009 to April 30, 2009 (Realtor). After the success of the first part of the tax credit for first time homebuyers, people were pushing for an extension of the date to allow more people to qualify for the credit. It refers to first time homebuyers and homeowners who have occupied their residence for 5 years in the past 8 years (Realtor).

The first time buyers will receive up to an $8,000 tax credit (U.S. News). They have until May 1, 2010 to have signed a sales contract and have until the end of June to close the transaction (U.S. News). The first part of the credit had specified that they had to close before November 30, 2009, not giving those who haven’t found a house yet a loss of opportunity if they didn’t fine one by late October. The new extension raised the annual limit incomes up to $125,000 for singles and $225,000 for couples (U.S. News).

Homeowners have the opportunity to get a tax credit if they have lived in their home for 5 years in the past 8 years and will receive up to a $6,500 tax credit (U.S. News). Now with more additions to the act, there are plenty of people who qualify for the tax credit. The home being purchased must be the primary residence and be up to $800,000 (U.S. News). The tax credit is calculated by the owner’s income and the purchase price of the home (Realtor). The tax credit doesn’t need to be paid back if the owner lives in it for three or more years after, if owner sells it before three year, then they will have to pay it back (Realtor). Now is the perfect time to be a part of the American dream in purchasing a home with a great incentive from the government, but is this really helping the economy?

The National Association of Realtors asserts that the tax credit has created 350,000 new transactions; however, the calculated risk blog estimate that the US government is paying $43,000 for every house that is being sold. This means $43,000 going back into people’s pockets rather than being invested, creating a non-stimulative effect. The government expects buyers to spend the money in their pocket but stimulus measure shows that this is but a low multiplier (the ratio of new economic activity to stimulus payments). Instead of putting money back into people’s pocket, this money can be use in other ways to increase economic performance.

The tax credit does not stabilize the housing market, it keep housing prices artificially high. It boosts the price of a transaction that would have happened anyway without the tax credit, which only quickens the process and creates additional transactions. This means with the tax credit, a person is able to afford a house, but when the tax credit disappears, the person will be unable to pay for the home and the house price will fall. Therefore the tax credit is a method of making creating temporarily affordable homes, that otherwise would not be affordable; this can lead to many problems. (Brookings)

For example, a tax credit that alters individuals from renting to owning drives up the price of houses while driving down the price of renting. Another example would be that through subsidizing home purchases, the government is assisting banks that possess portfolios of foreclosed houses but hurting other banks which possess commercial real estate portfolios.
Overall, there is a better way to spend the money used in the tax credit. The tax credit aims to be available to all home buyers, however, it should restrict credit to individuals buying foreclosed homes, who would have not afford it without the tax credit, resulting in future default risk if ever the tax credit plummet. The government should consider investing that same money into programs that convert foreclosed properties into rentals to sustain an income. From 1998 to 2008, the rate of homeownership raised from 66.4% to 67.5% meanwhile the real average household wages fell to $50, 300 from $51, 300, a loss of $1000. The extreme effect of artificially high house prices with the decreasing of income creates inflated home values, which will not last long. (Brookings)

Alyssa Katz in her book, Our Lot, which discusses the rise and fall of the American Dream and the government financial engineering, states "Scholars found that once they set aside the various traits that tend to determine whether someone chooses to own or rent one's home, homeowners and tenants really aren't that different. . . . Often the new homebuyers were purchasing the worst housing in the worst neighborhoods with the worst schools -- hardly a solid investment."
Overall, our tax credit policy will suffer from the design that shifting the level of worth on existing housing can provide a net benefit to society; because sales of houses are in essence zero sum transactions. Therefore, changing the price level is purely redistributive because the tax credit is attempting to smooth out inevitable downward adjustment which the economy is facing by spending even more money.


References:
http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit

http://www.usnews.com/money/blogs/the-home-front/2009/11/06/expanded-first-time-home-buyer-tax-credit-becomes-law.html

http://www.brookings.edu/opinions/2009/1009_homebuyer_gayer.aspx

Loan Qualification Requirements and Ethical Lending Standards

Loan Qualification Requirements and Ethical Lending Standards

Cherise DeLucia
James Dallas Smith
Matthew Ringel

The overall health of the economy is gauged by many factors; growth, unemployment, interest rates, the economic environment of individual business sectors and many other components can all impact the economic constitution. The current economic crisis was a perfect storm of interdependency within business sectors that eventually lent itself to a world- wide economic down turn.

The sub-prime mortgage crisis was the result of a blend of low interest rates, inflated homes prices, excess foreign capital, deregulation of lending markets and ultimately, poor lending decisions made my banks, and poor borrowing decisions made by consumers. With the use of sub-prime lending vehicles, like adjustable rate mortgages, zero down lending, and stated income loans; banks lent money to people that could not afford the eventual terms, and consumers were often sucked into loans they did not understand or took on more debt then they could afford. We will review the impact of sub-prime lending on the current economic climate and lending markets and examine loan qualification requirements, ethical lending standards, consumer education, and the impact of these cornerstones on the economy as a whole.

When the real estate market was booming it was too easy to obtain a mortgage; on the other hand, when it is down in the slums -as it has been for most of the country through these recent tough economic times- you may have to jump through hoops before seeing any satisfying results. One of the biggest reasons for driving the real estate market down was the extremely loose lending standards and requirements practiced by many mortgage lenders over the past decade. No longer is that the case since the tightened pre-approval lending requirements and unstable economy have put a lot of people looking to purchase a home in a bad position.

In an article written by Lisa Scherzer on SmartMoney.com, she goes through what she calls her, “7 Tips for Getting a Pre-approved Mortgage.” At the top of the list she explains the importance of obtaining a letter of pre-approval, which is simply a letter from a mortgage lender stating they have verified that the would-be borrower is approved for a mortgage for a certain amount over a given period of time. Most real estate agents, and sellers for that matter, won’t even deal with potential buyers unless they have been pre-approved. It’s pretty simple, the letter shows exactly how much the buyer can borrow and lets them know right off the bat what houses in what price ranges they should look for. When it comes to the seller, the letter proves that the potential buyer can indeed afford their home should they decide to purchase and therefore the seller and the seller’s agent can put forth more effort in attempting to close a deal.

One of the next “tips” that Lisa Scherzer has to offer is for the buyer to prepare their financial biography. This step would obviously come before the pre-approval letter since it includes the documentation a lender would need to see in order to pre-approve, but nonetheless a very important step. What this biography allows the lender to do is review and confirm the borrowers income, credit and assets to ensure that they will be able to make the necessary monthly payments in order to fulfill the mortgage requirements. It is most important in times like these to have the proper paperwork put together to allow your potential lender to conduct a thorough pre-approval analysis. Although your lender should let you know what paperwork is necessary, Ms. Scherzer included 5 absolute musts to include: W2 statements, federal tax returns for the past 2 years, bank statements for the past few months, recent pay stubs and proof of any other income, and finally proof of investment income (Scherzer, 2009).

Historical lending parameters usually include, a solid credit history, benchmarked with a quality FICO score. A Fico score, or “Fair Issac Corporation” score, is a mathematical composite to determine credit risk. It takes into account a consumer’s payment history, current level of indebtedness, types of credit used and length of credit history, and new credit and assigns a numerical rating to their credit worthiness. Fico scores can range between 300 and 850, with a higher score resulting a more favorable lending status.

Buyers have traditionally been required to come up with a down payment of 20% of the value of the home to qualify for a mortgage. FHA loans can offer smaller down payment requirements, but it was not until the advent of the sub-prime loan that borrowers could attain a loan with little to no down payment. With the popularization of the sub-prime mortgage, consumers were encouraged to take part in the American dream at a risk that ended up detrimental to the economy as a whole.

Converse to the construct of traditional lending standards, subprime mortgages are essentially loans given to individuals with poor credit and little or no down payments; in which many instances the individual with the loan only pays towards the interest for several years. This was the main reason for companies lending the money in the first place because they are securing most of their profit on the front side of the loan. Due to the struggling economy pre 2001 after September 11, 2001 the Federal Reserve cut interest rates, which in turn expanded the economy and encouraged borrowing. Soon after this, the economy and property values began to skyrocket with no end in sight. Because of this companies and Wall Street were eager to purchase and or sell packaged loans even if they contained less perfect, higher risk, subprime loans.

In 2002, mortgage rates were at a 40-year low this yielded a very cheap source of equity enticing borrowers. More and more people were purchasing homes whether they had the money or not through 2006 and into 2007. These subprime mortgages were very appealing because of the low or no down payment required, low interest rates, and a temporary low payment. At the time, another appeal was if the payment did rise an individual could pull equity out of their home to pay it down because of the drastic increase in value that was expected. Ethics play an important part in this situation because lenders were giving money to individuals who could not afford to pay it back. Today there is a concise opinion that millions of people did not know what they were getting into; the blame lies not only with the homebuyer but also with irresponsible lenders. This situation lead to the current status on many people loosing their homes and or filing bankruptcy because they were too upside-down to ever pay back their mortgages.

On a larger scale these subprime mortgages yielded a worldwide economic slowdown. All of these loans were bundled up with A+ ratings and sold to investors around the world so when the bottom fell out it affected everyone. The banks/lenders sold these loans in order to free up their capital so they could lend even more money to people via subprime adjustable rate mortgages, and with home rates doubling who could blame them. As long as home values kept increasing these subprime mortgages wouldn’t have a negative affect on anyone’s liquidity. When interest rates began to rise and home purchasing began to slow, individuals with adjustable rate mortgages began to see their monthly payment dramatically increase which lead to defaulting on mortgages. This turn of events also presented problems for the companies who purchased bundled loans, as they were not able to collect on their A+ investments. These subprime loans became toxic to the portfolios they were in although they could not be identified because they had been bundled and re-sold so many times. The subprime mortgage seemed to have collected the whole world economy and millions of people rode it all the way up only to come crashing down.

As the economy continues to recovery, and the lending markets have tightened, more emphasis has been placed on ethical lending standards and conservative mortgage qualifications guidelines. A balance between profits of mortgage brokers and banks is necessary for a stable financial market place and for the financial health of consumers. It is also the responsibility of the buyer, to understand what they can afford, versus what a mortgage broker may offer them. The mortgage crisis created a demand for ethical, quality lending standards and guidelines, as it proved to the entire economy is tied to the success of the lending industry and with that comes responsibility of stability.

Reference:

Barnes, R. (n.d.). The Fuel That Fed The Subprime Meltdown. Retrieved November 18, 2009, from Investopedia.

Collins, J. (2009, October 3). O.C. property investor seeks bankruptcy rescue: Mammoth Equities' defaults are just the latest development in mounting commercial real woes. The Orange County Register.

MSNBC.com. Fed says banks tightening mortgage standards: Both traditional and non-traditional loans are harder to qualify for. http://www.msnbc.msn.com/id/30563498/

Scherzer, L. SmartMoney.com. 7 Tips for Getting a Preapproved Mortgage: http://www.smartmoney.com/personal-finance/real-estate/7-tips-for-getting-a-preapproved-mortgage/

London, A. (2009, August 8). Fed offers mortgage search tips. News Journal,B.2. Retrieved October 1, 2009, from ProQuest Newsstand. (Document ID: 1825954401).

Fha.mortgageloanplace.com/FHA-Loan-Qualification.html
www.searchlightcrusade.net/2009/04/loan_qualification_standards_l_3.html

Never Sell A Used Car to Someone You Know

The Brief History of Statutory Real Estate Disclosure Requirements

It seems obvious that if a seller has information that influences how much a buyer will pay for what they are selling, the seller should make that information known to produce a balanced transaction. But what if the seller is never going to see the buyer again? Then the seller is forced to weigh the potential personal, continuing effects of a diminished sales price against future plight of the buyer that the seller will never know about. This dilemma is why everyone knows not to sell a used car to someone they know. If you sell a used car to someone you know there is the potential to know about and feel responsible for problems following the sale. If you sell a used car to someone you will never see again, the potential to even know about problems is diminished if not dissolved.

This principle can be applied to real estate markets. As populations become increasingly mobile and complex, we can no longer rely on participants’ potential to face the intrinsic consequences of their actions in others’ lives as motivation for moral behavior. In recent response to the increasing mobility of real estate market participants, legislators have attempted to make the consequences for failure to disclose concrete and personal to the seller, and often their agent. Statutory real estate disclosure requirements often impose fines for failure to comply and expressly allocate burdens to the seller, which guide the way common law will be established.

Problems with real estate are not a new invention, so the perceived need to expressly change the format of real estate transactions must be a response to some other new phenomenon. Historically the courts embraced the idea of caveat emptor, let the buyer beware, however coming into the 1980s the courts experienced an influx of homebuyers suing sellers under the common law fraud of failure to disclose. The question then becomes, did allocation of responsibility truly change, or did the attitudes or behaviors of sellers shift toward nondisclosure?

In studying the capacity of individual men to act, Niebhur explains, “ethical attitudes are more dependant upon personal, intimate and organic contacts than social technicians” (Niebhur, p. 28). In the same text he explains that as the complexity of societies, or groups of men, increase, these personal relationships decline and with them the directly correlated ethical attitudes. As there are more participants in real estate markets, and participants are increasingly able to live more of their lives outside the markets where they do transactions, sellers showed their preference of monetary gain over fair real estate transactions, by hiding (via fraud, misrepresentation, and negligence) material facts that should have been considered in calculating the price of the house. This shift is likely what led to the flood of fraud cases in the courts.

It is not an accident that California, one of the largest and most diverse states in the nation, is pioneering the shift toward legislated morality via statutory disclosure requirements. In 1985 California was the first state to expressly require sellers to disclose their property conditions to buyers (CCC 1102), shortly followed by an agency disclosure requirement in 1987 (CCC 2079.14).

The complexity of California’s real estate markets is evidenced by:
Distance between home, work, and social networks for individuals
Overall population size
Population variation-immigration
Absentee ownership (increasingly possible)
The ability to move long distance (ie out of state, emigration)

In their first attempt to increase incentive for sellers to disclose, the California Legislature acknowledged the preexistence of “obligations of the parties to a real estate contract, or their agents, to disclose any fact materially affecting the value and desirability of the property” (CCC 1102.1 (a)). This broadly encompassing requirement already in place leads one to question what the legislature hoped to accomplish in writing this and subsequent codes.
The Residential Lead-Based Paint Hazard Reduction Act of 1992
Megan’s Law- 1996
Cal. Gov’t § 8589-Natural Hazard Disclosure-1998

The roots of the problem the legislators are trying to solve reveal a potentially important role of real estate agents as markets evolve. Real estate agents often specialize in a specific geographic area and are likely to do multiple transactions in an area over a long period of time. While a buyer moving away from the people in an area may be willing to act in a dishonest or uncooperative manner, an agent who has the potential to do business with these people again will be more motivated toward collaboration and disclosure. For these agents whose ability to do business on an ongoing basis is greater than an isolated transaction, there is a tendency toward equality, which in real estate can only come from full disclosure of material facts (Halpren, 1994, p. 5).

California Department of Real Estate. Disclosures in Real Property Transactions. Sacramento: California Department of Real Estate, 2005. Web.

Halpren, Jennifer J. "The Effect of Friendship on Decisions:." Center for Advanced Human Resource Studies: Working paper Series (1994). Web.

Easton v. Strassburger. Court of Appeals of California, First Appellate District, Division Two. 22 Feb. 1984. Web.

National Association of Realtors. "Milestones in Residential Real Estate: 1900-1999." Realtor Online Magazine. 01 Dec. 1999. Web. 16 Nov. 2009.

Niebuhr, Reinhold. Moral Man and Immoral Society. New York, New York: Charles Scribner's Sons, 1932. Print.

Jenna, Randy, Valerie

Our group consists of Cheyenne Ison, Jose Guzman, and Mathew Curtis.

Evaluating and Pricing Properties in Fresno and Clovis

Evaluating and pricing property is the key factor to how fast and efficient a home will be sold. When a person decides to sell their property, they need to come up with a pricing strategy that will get their home off the market quickly and for the equivalence or more of what they are asking for. In order to successfully price a property without under pricing or overpricing their property one might use the expertise of a Real Estate Agent.An experienced realtor can direct a person in which way the market is flowing but most importantly can have the knowledge and expertise on how the demographics of the neighborhood or area are working. Jennifer Mitchell explains this in her article entitled: Above, Below and Between… “Individual neighborhoods have their own microeconomic factors to consider as well. Changes such as a new manufacturing plant to be built or changes in local zoning regulations can occur at any time. The key is for the agent to stay on top of the changes and for the seller to remain flexible and open to changes in strategy. Ultimately, your pricing method will depend largely upon your personal goals and comfort level” (Mitchell). Most of all realtors use what is called the competitive market analysis, which compares the property to similar property on the market or recently sold.

Competitive Market Analysis

A Comparative Market Analysis (CMA) is an evaluation of comparable recently sold homes Homes of similar size, condition, age, and style for sale and that recently sold in a certain neighborhood. in the neighborhood where the subject property is. Comparables are recently sold homes that are similar in size and style to the subject property. Buyers, sellers and real estate agents use a CMA to establish a fair price range for a home. Although reports can vary, from a two-page list of comparable home sales to a 50-page comprehensive guide, the length and complexity of a CMA report depends on the agent's business practice. However, standard comparative market analysis reports contain the following data: current active listings, pending listings, sold listings, withdrawn listings, and expired listings. When examining comparables similar square footage, age of construction, amenities and upgrades, condition, and locations are used to arrive at an average listing price for the subject property. A competitive market analysis is most used by realtors today, but; today’s economy makes it difficult to find homes that are of equivalence because the market is changing drastically over time. Since this analysis relies entirely on other homes on the market and those that have been sold previously, it makes it difficult to come up with a good price that satisfies the seller. The market in California and mostly in the central valley has made it difficult for sellers, due to the massive amount of foreclosures and short sales that they are competing with. “Future prices will depend of the number of foreclosures and interest rates. If the number of foreclosures falls and interest rates remain stable - we will see a rise in home prices. If we see a rise in interest rates this will lessen demand and prices may remain stable” (Hawkins). No matter the price of the original purchase, a competitive market analysis will not give the seller what they possibly are asking for but it can give them some positive cash outcome. Although this process is similar to an appraisal it has its distinctness, an appraiser uses their experience to estimate the property’s value while a realtor uses the market and comparables to set a selling price.

Statistical market graphs report for Clovis according to the Fresno Multiple Listing Service:


Listings Per Status

(graph is not showing up when I copy from microsoft word)

Minimum, Average, Maximum

Days on Market Analysis

Listing Price/Selling Price

Pricing the Sellers Property

According to the book California Real Estate Practices, a realtor should focus on the property’s neighborhood, the property itself and the improvements that have been made to the property to allow him/her to select comparables in the same range (Rockwell, 120). The neighborhood besides the property itself is what draws buyers to the home and gives a good estimate of the listing price. If there is vacant homes or lots in the neighborhood or if the home is next to warehouses or major highways, can affect how the price is set. The California Real Practices book mentions that a realtor should look at several specific factors that can gain interest on the property. Such as: Percentage of homeownership, vacant homes and lots, conformity meaning similarities of the homes and age, Changing land use whether or not the home is in the middle of changing from residential to other uses, how the land is shaped on the property, streets if they curve or are narrow (Rockwell, 121). Although the property can be the nicest in the neighborhood, the factors listed above can affect how the price is set. Most homebuyers today look at this to see if there is a possible future in the neighborhood or if the neighborhood will soon be abandoned. A good example of how the neighborhoods are priced can be seen in Fresno where many homes are being sold but there is a significant amount of empty homes in the same neighborhood that changes the prices of the current property. Another example can be seen on the trulia.com website where it shows that in a community like Bullard, from July through September 2009 there were 209 homes for sale, and 846 foreclosures that show that the quantity of vacant homes in a neighborhood was massive.

Rosemarie Barrera of Century 21 M&M and Associates of Clovis had some positive things to say about the current market in the interview I held with her. Below are her responses to my interview questions.

How would you explain the Fresno/Clovis real estate market at this time?

Response: The market is stable due to the fact that we are low on inventory. We are receiving multiple offers on all of our listings. Before the market crashed my client base consisted of 70% sellers and 30% buyers. With the change to a buyer's market and the flood of bank-owned homes, we have been able to assist many first time home buyers and investors, which adjusted my client ratio to 40% seller and 60% buyers. There are over 1000 less homes on the market then in 2007. Yet, 30% more homes were sold in 2008 to date then last year. Demand has been building throughout 2008 and 2009.

What changes in the market have you seen in the last year?

Response: There is a flood of first time homebuyers due to the $8000.00 tax credit. There are less foreclosures available than last year and more short sales but that is soon to change, there should be a flood of foreclosures coming in at the beginning of the New Year.

What would you forecast the market to do in the next few years?

Response: I think we will still continue to be stable in our area due to the prices that have fallen so much.

What are the average sales prices for houses in Fresno? In Clovis?

Response: In Fresno the average sales prices I am seeing is $185,000. For Clovis the average home price is $235,000.

How are real sellers reacting to the current market? The buyers?

Response: Real Sellers (not foreclosures) who can sell which are very few are selling very fast and the buyers are becoming very frustrated because they are not getting their offers accepted. There is not enough inventory for all of the buyers coming out of the woodwork.

Neighborhoods

Neighborhoods play a huge role on pricing, but after the neighborhood is studied the homes needs to be evaluated for a “ballpark” price. When examining the property a realtor needs to study a home carefully to get a price or to be able to set it with similar homes. A realtor will look at the home in detail such as the age, size, and whether it was well structured when it was built. Most importantly the key factor of pricing is “Number of bedrooms and bathrooms, the size of the kitchen, the presence of a garage, the degree of updating, the total square footage and the overall condition of the property rank high on most buyers' list of important factors” (Mitchell). Most people that set out to purchase a home an interested in a home that they can live in for years and grow a family in, so most look for a spacious house that fits all their needs. This is why most realtors examine the rooms, bathrooms and dining area to see if it is large enough to set a good price as in its comparables.

Local appraiser Deana Wells also had some interesting things in our interview to say about the current Fresno/ Clovis market. Below are her responses to my interview questions.

How would you explain the Fresno/Clovis real estate market at this time?

Response: The market has really been improving! Realistic pricing and great interest rates are bringing the buyers in! Interest rates are currently at their lowest point since January 2009 and currently average between 5- 5 1/2 %

What changes in the market have you seen in the last year?

Response: The market has changed for the better, there are not as many foreclosures (although I believe they’re just holding onto them!) It is harder to obtain financing which is a GOOD THING, it now requires more than a beating heart, lots of buyers!!!!

How have appraisals changed in the last few months?

Response: When markets are changing quickly, up, down, or stabilizing, the good appraiser can "feel" when this is happening. The good appraiser doesn't rely on comps, which are the past, but researches listings and expireds. Appraisals over the past few months have gotten harder due to lender requirements; all of a sudden they have some! There are way more FHA appraisals rather than conventional or VA.

What is your forecast for the market in the next few years?

Response: Next few years.... I've lost my crystal ball, can I borrow yours???? :) I don't know.... Personal vs. professional - Personally, I believe we're dealing with a false market.... Let’s not get into political views..... Professional - I hope for the best!

What would you suggest to sellers wanting to get the best appraisal figure for their house in this market?

Response: Sellers - Have something a buyer would want! CONDITION, improvements, staging, be realistic!

Comparable Properties

After examining the property, the next step for a realtor is to look for other properties that are similar enough, so that a price can be set. “These properties are called Comparables because they have the same or nearly the same characteristics as the seller’s property.” (Rockwell, 128). The advantages of using comparables are that the realtor and the seller can be aware of how the market is doing for homes in that similar category. It can allow them to see how fast or how long it might take the property to get attention. Everything that has to do with the current property may have similarities all around with other properties, which is why many homes in the same neighborhood have usually the same listing price with the exception of short sales and foreclosures. The use of comparables can set financing terms and conditions that can help the seller find the perfect buyer. Evaluating and pricing a property is one of the toughest factors to selling a house. This why many people settle to find a well-known and respected realtor that has experience far beyond others to set a price. Homeowners always want the most for their property and that is why there is little to no homes being sold by the owner on their own.

Fresno housing statistical graphs according to the Fresno Multiple Listing Service are below:


Listings per status


Minimum, Average, Maximum



Days on Market Analysis






Listing Price/Selling Price

Sources

Appraiser Interview: Deana Wells

Above, Below and In-Between: How Real Estate Agents Price Properties. Retrieved September 29, 2009, from Associated Content: http://www.associatedcontent.com/article/813873/above_below_and_inbetwe en_how_real_pg5.html?cat=3

California Building Industry Association-Housing starts, afford-ability index, and general statistic info.

California Real Estate Practices. Bellevue: Rockwell Publishing, 2009.

Fresno Association of Realtors-Mortgage applications increase as mortgage rates drop.

Fresno Association of Realtors- Multiple Listing Service Statistics- Including days on market, pricing, solds, and under contracts.

Fresno Real Estate Overview. (2009, September 29). Retrieved September 29, 2009, from Trulia: http://www.trulia.com/real_estate/Fresno-California/ Mitchell, J. (2008, June 26).Hawkins, L. (2009).

News Articles-Fresno/Clovis Real Estate Market. Retrieved September 29, 2009, from YourFresnoBroker.com: http://www.yourfresnobroker.com/news.html

Realtor Interview-Tony Christian

Realtor Interview- Rosemarie Barrera

Deceptive Sales Techniques and Practices

The word deceptive by definition means “tending or having power to deceive, misleading” (Merriam). To deceive means “to cause to accept as true or valid what is false or invalid” (Merriam). So, deceptive sales practices cause a consumer to accept as true what is not. Though to be deceptive carries a negative connotation, the denotation is not explicitly negative. There are deceptive sales techniques that do not have a negative intent, and there are those deceptive sales techniques that are premeditated with a malicious intent. With this knowledge, it is impossible to measure the moral fortitude of an agent simply based on a deceptive practice, since they may had just overlooked a piece of information that did not seem pertinent, however, the exact opposite is also possible. With recent changes in the real estate market, the process of buying and selling homes has become more difficult for some, leading to practices that may be deceptive. The idea of deception can take different forms from misleading mistakenly to straightforward lies, but in the end they are still deceptive and the agent or broker will be held liable.

A very common deceptive sales practice is simply failure to disclose information about a property to a perspective buyer. According to the Realty Disclosure home page, “under California Law, the seller of real property - or the agent for the seller - must disclose ‘accurate information of material fact’ telling whether historical evidence indicates that an event of natural origin is likely to affect the desirability and value of the property, even if the property is listed ‘as is’"(Realty). Even if the agent did not mean to withhold any information, perhaps they accidently overlooked a piece of information; it is still a deceptive sales practice. That one fact may have given the buyer a different angle on negotiation, or may have turned the buyer off of the property all together. For example, if the house was painted using a lead based paint, and the agent misses that information and fails to inform the buyer, the agent is firstly breaking the law since it is required to inform a buyer if lead based paints had been used on the home, and secondly taking away some of the buyers negotiating power (Residential Lead). If the buyer has this information, they may be able to negotiate the price down to subtract the cost to remove the old paint and repaint the new house, request that the seller handles the issue, or just stay away from the entire deal. If the buyer does not have this information, they have been deceived and when the information comes out, legal actions are sure to follow.

Another way that agents may be deceptive by mistake is by lacking the proper knowledge, or accidentally giving out incorrect information. This can occur through miscommunication with a buyer or by making an assumption that is not accurate. If a buyer is asking for specific information and the agent misinterprets what the buyer is asking, therefore giving false data, the agent has been deceptive. Even with no intent to provide inaccurate knowledge, inaccurate knowledge has been relayed, and so the agent has been deceptive. If an agent makes an assumption about a property, and the assumption is not backed by the facts and they give the buyer this information, they have been deceptive. If the agent for instance assumes that all the plumbing is in prime condition, when in fact there is a problem with the plumbing, the agent again has been deceptive. It is the agents’ responsibility to make sure they are knowledgeable about the property that they are representing, and to make sure that the information they provide the buyer is all disclosed and accurate. These are a few examples of deception that was not made with the negative intent, however, there are agents that deceive and do so with a malicious intent.

Malicious intent is when the agent or broker acts in a way on purpose. They choose to persuade their prospects or phrase something to go against them. An example of malicious intent from an agent would be steering the buyer to a particular location. This could be based on discriminating against their race, religion or natural origin. The agent could have been busy or they may be racist, this is not the issue but they broke the law. Other examples are refusing any type of negotiations, changing terms of sales for different potential buyers because of their race or other factors. Agents should also avoid any discriminatory conduct while showing listings to any potential buyer. All buyers should be treated equal and all should be asked the same questions only regarding annual income, down payment size (Haupt, Dorsey p.110). There are standards that need to be followed by the agent and some do not care to act in a professional manner. These incidences are not on accident though and they purposely do them and that is the problem here.

In order to move the sale forward, many agents or even brokers misinform the buyer about certain issues or questions he or she may have. Failure to disclose any material facts about a property could jeopardize the sale. This can be based on the information given if they don’t inform the potential buyer. These important issues include any latent defects on the home itself or environmental hazards on the neighborhood. Not mentioning the crime rate in that particular neighborhood can also be malicious, all this important factors can make a huge influence of the buyer’s decision to purchase because they all contribute to the true cost or value of the property.

The consequences for a buyer and seller are kind of similar because they are wasting their time and money with a bad agent/broker. An uneducated/unlucky seller can run into a lot of trouble if they choose a bad agent. There is a large amount of trust that the seller gives to the agent and expects the same back. There are so many problems that can go on from different forms of deceptive sales practices but the majority will waste your time and cost you money. An example of how the seller can be affected from the start is, if their agent does not put the listing in MLS in a reasonable amount of time “24 hours”. From the start the agent is not representing the seller but hoping to make more money off of them. Another problem can be seen in an agent that loves to talk and brings up information that should not be disclosed. They can say a lot to ruin the sale and hurt the seller even if they end up selling the house. The agent may have given away a lot of the seller’s personal information in order to complete the sale. Another factor is not letting the buyers know how to properly set their house up for an open house. A lot can be said at an open house, clutter and personal belongings should not be out in the open. All of these situations can make selling a house a nightmare. It will be hard to trust another agent once you have to deal with a bad agent (Rioux, Pat).

A buyer is hoping to be fully represented by an agent that is looking out for their interest and will help find their ideal home. This is not the case though and many fall victim to deceptive behaviors from their agents. Some agents do not listen when it comes to what the buyer is exactly looking for in a house. Some choose certain houses that are priced higher so they can get a better commission. Some in the same condition believe that they have been in the business long enough and they know what the buyer is looking for. This can also be seen in the form of steering and can really frustrate a buyer. It may be a week or so of driving around and looking at houses when the agent never mentioned to get preapproved by a mortgage company. Unless the buyer was prepared and are trading up to a bigger house or downsizing they will not have any idea on what they can afford for a house. A buyer’s biggest consequence is being frustrated because the agent does not listen and gives bad or no feedback. The time in between the agent communicating with their broker and other agents needs to be handled in a timely manner. Some buyers get “left in the dark” and never hear from their agent that is supposedly representing them (Rioux, Pat).

The consequences for an agent and broker differ from the situation that they were involved in. It is easy to say that if they are at fault and the DRE will fine them a certain fee and suspended their license. Depending on the severity the agent and broker can have their license revoked.

If you have a claim and have been a victim of some form of deceptive sales practice, go directly to the DRE website. Its http://www.dre.ca.gov, they have a specified place on the website where you can get help and there is a step by step process where they will do their best to help you with your claim.

As a homebuyer or seller you have many rights. This is your home, your asset and it can haunt you for many years if the sale goes sour or you find out you were a victim of a deceptive sale. To stop all of this there are a few things that can be done prior to eliminate these problems. Number 1, if you don’t trust agents at all, take the time and be a FSBO (For Sale By Owner). If not, do some research on the agent and company that they work for to see what they are about. Google the agent and find some other information about them on sales or other problems from previous prospects. If you have a group of potential agents, have them do a small presentation for you. Get to know the agents to see if they practice an ethical business prospective and if you trust them. Remember the commission is negotiable and you have many rights as a buyer and seller.

Take action and be proactive by doing your research on the agent and the company. Get familiar with them; it’s your responsibility in choosing the agent. So take the time and put in some good effort. If all else fails and you do fall victim of a deceptive sale, take action and be active. Contact the DRE, the website is user friendly and your time and effort to file your claim may save the next victim the pain and suffering that you had to go through.

Resources

Cook, Michael. Great Agents and Bad Realtors. 2007. Retrieved October 19, 2009 from http://buyingsellingahome.suite101.com/article.cfm/great_agents_and_bad_realtors.

Department of Real Estate. Filing a Complaint with the Department, 2009. Retrieved October 21, 2009 from http://www.dre.ca.gov/cons_complaint.html.

Do's And Don'ts Of Real Estate Negotiating 2009. Retrieved October 18, 2009 from http://www.squidoo.com/realestatenegotiating.

Heddings, Douglas. 2009. Seller Beware: Is Your Agent Protecting Their Best Interest? Retrieved October 21, 2009 from http://www.truegotham.com/archives/cat-dirty-real-estate-tricks.html.

K. Haupt, M. Dorsey. 2009. California Real Estate Practice 4^th edition. Rockwell Publishing Company.

Merriam-Webster Online Dictionary. 2009 Retrieved October 18, 2009 from http://www.merriam-webster.com/dictionary/deceptive.

Residential Disclosure Law, 2007. Retrieved November 17, 2009 from http://www.realtydisclosure.com/hazards/resident.htm.

Rioux, Pat, Nine Ways A Bad Real Estate Agent
Can Cost You Money. 2000. Retrieved October 22, 2009 from http://www.ired.com/news/2000/0004/badagent.htm.

U.S. Environmental Protection Agency, 2009. Residential Lead Hazard Standards. Retrieved November 17, 2009 from http://www.epa.gov/lead/pubs/leadhaz.htm.

Group Members: Cameron Cairns, Tim Kumse, Roxana Minuz

property management

Property Management--

Real estate can be used for its investment value including, but not limited to, apartment buildings, offices or shopping centers. For property owners it is often necessary to hire a property manager to supervise the operation since it can be tedious and may often be located in a different city. The property manager has duties including: accounting, maintenance, equipment, accepting rent, and responding to any other issues. A property manager may be a licensed real estate salesperson, but generally they must be working under a licensed real estate broker. They act as a buffer between property owners and tenants. Should any issues arise the property manager will more than likely bring them to the attention of the property owners in an attempt to remedy the issue but some issues can be easily resolved without the owner’s involvement.

Screening prospective tenants is an important thing a landlord can do to protect their investment and to also prevent any unnecessary problems. One of the first things to do is have them fill out a rental application. Be sure to get full names, copy of their driver’s license/identification card, social security numbers, and employment history with a recent check stub. A small fee should be charged to cover the expense of pulling their credit report, which can now be done easily on various websites. Getting a credit report will determine if the prospective tenant has been good about paying their bills and their debt to income ratio is not too high. If they have met your criteria it may be reasonable to think they will be able to pay you the amount agreed for the duration of the lease. If they have not been responsible in the past it may be a risk to assume they will pay you and will either require you to choose the next applicant or require a cosigner for the current applicant. Next it is crucial to get fairly recent references. If possible get numbers to old landlords and speak with them. This will be a good way to see their rental history or learn of any issues in the past. At this point you may want to schedule an appointment with the prospective tenant to explain your expectations of them. This will provide a way to see how they react to those expectations. Also, it invites questions from both sides to clarify any ambiguity. Once terms have been agreed on, it is time to sign a lease agreement.

A lease agreement must comply with state and local laws. Depending on the area, lease agreements may have some differences. It may be a good idea to have an attorney review your lease to make sure it is compliant with local and state laws as well as enforceable in court. The lease will all have some major components such as: name of tenants, lease term, payment of rent, deposit, fees, user responsibilities, pet clause, security deposit clause, and access to premises. The lease will also include information on what will happen if the tenant is late on a payment or if they refuse to pay.

In California the eviction process is complicated and sometimes costly. The eviction process begins with a 3-Day Notice to Pay or Quit, 30-Day Notice to Vacate, or 60-Day Notice to Vacate. If the tenant doesn’t move out by the specified times, the landlord may file an unlawful detainer. In an unlawful detainer, the landlord is the plaintiff and the tenant is the defendant. Usually within 1 to 10 days the tenant is served with summons papers. At this point it may be a good idea for the tenant to seek legal advice. The legal process is very complicated and lengthy. In the end the court could rule in favor of the tenant. In which case, the tenant may continue to reside in the rental unit and the courts may award the tenant his legal fees as well as damages. The court could also rule in favor of the landlord. In this case, the court orders a “writ of possession” and awards the landlord legal fees and unpaid rent. The court clerk will issue the order to the Sheriff. Within 1 to 3 days a peace officer will deliver a 5 days’ notice to vacate the property or be evicted. If the tenants do not comply the peace officer will physically remove the tenants and return the property to the landlord’s possession. Although the eviction process rarely occurs, it is best to understand how to handle the process.




California Eviction Guide For Tenants and Landlords
Prepared By: Melissa C. Marsh, Los Angeles Landlord-Tenant Attorney

http://www.ehow.com/articles_4827-property-management.html

Basic Components of a Residential Lease Agreement
By Stirling Gardner Platinum Quality Author

Lopez, Carrie. "A Guide to Residential Tenants’ and Landlords’ ." July 2006. California department of consumer affairs, Web. 18 Oct 2009. 
http://www.dca.ca.gov/publications/landlordbook/catenant.pdf

Portman, Janet, Marcia Stewart, and David Brown.Every Landlord's Legal Guide. 9. nolo.com, 2008. Print.

Mike Kremko, Mark Silva, and Daniel Fiero

Negotiating Real Estate with Ethics

On a daily basis we negotiate for daily resources; like choosing a gas station with the right price, what to spend on dinner, who has the better happy hour? Yet there are certain fields in which negotiating may have more impact on you and your cost of living, like real estate. In real estate every party involved wants to get the best price. With several parties wanting more and not going by the rules, it gets harder and harder to get a fair deal. When making a purchase the buyer and seller enter into something that is called a negotiating process. Both parties want the best out of the deal, the seller wants the highest price and the buyer wants the lowest price. In order to find a common ground, ethics and merit in real estate must be considered to be the primary source to negotiating. Although when dealing with real estate, several parties might argue that there price is right, if you don’t argue using merit and good ethics you may not be successful in reaching an agreement.

CAN ETHICS BE TAUGHT?
When making a real estate purchase the buyer and seller enter into something that is called a negotiating process. On a daily basis we negotiate everyday but theirs certain fields in where negotiating goes deeper. In real estate every party wants to get a fair deal with several parties wanting more and not going by the rules. Ethics and merit in real estate can be consider to be the primary source to negotiating while dealing with real estate and several parties might argue that if you don’t have good ethics you may not be successful.
Negotiating is the key to a successful deal and many parties may want to negotiate and others may just look around it and avoid it in the best way that they can. If a seller wants to sell a property and not include merit while negotiating the buyer might see that he is not being fair with him and might not want to come back to make deals with him again. “Ethical considerations of real estate investing do not get much airtime, but they're hugely important on many levels, both altruistic and pragmatic” (Smith). This is very important when dealing with real estate because it’s important to have great ethical behavior when negotiating merit decisions. For example many can argue that ethics can’t or can be taught but can they for those that argue that it can be. “You’re either born with ethics or you just don’t have them” is what many individuals might argue but believe it or not several professionals say that ethics can be taught. There have been several organizations that teach ethics in their facilities because they want the best out of their workers so that they can be more productive. Ethics consist of what we ought to do in order to be successful. There was a recent article in a famous editorial, the Wall Street Journal where there it stated that ethics courses are useless because ethics can't be taught. For an article to state this, this can be very important in many ways because with this publish many would say that only proof would solve this conflict. In an article by the Santa Clara University it states that, “Almost 2500 years ago, the philosopher Socrates debated the question with his fellow Athenians. Socrates' position was clear: Ethics consists of knowing what we ought to do, and such knowledge can be taught” (Velasquez).
Ethics is important in every professional field but when dealing with real estate we can say that it is a must in order to have the best decision for all participating parties. Some even say that in the real estate industry theirs a lack of ethics and that it is one of our greatest national scandals. Also, that it is a hidden scandal because thousands of consumers don’t realize how they are being hurt. Many consumers are purchasing a property with little references to that property. Several individuals don’t take the time to do research in the real estate market and compare properties before purchasing and because of that a seller might be so good at selling that when he realizes that he’s selling a house to someone who is not that very good, the seller tends to take advantage. When this happens the seller happens to not use his ethics skills and tries to focus more on getting a better deal for himself. In having ethics in real estate this will help all to become winners in real estate. It will make the business of buying or selling a home the wonderful experience it’s meant to be and both the seller and the buyer would end the deal with a great feeling knowing that both were successful, one in selling a property and one in buying that dream home.

STEP BY STEP OF NEGOTIATING WITH ETHICS:
In negotiating with ethics there are a few steps you want to take into account. The first is to separate the people from the problem by focusing on what’s fair for both parties as opposed to one side. One might say, “To walk a mile in someone else’s shoes would give you better perspective on why they see things the way they do.” This requires taking a neutral position on negotiations by promoting a position that is better for both parties as opposed to one. Looking for the maximum outcome for each party using compromise presents a win/win. Selecting a neutral position requires developing objective criteria.
Objective criteria can be market value, precedent, scientific judgment, what a court would decide, moral standards, equal treatment, cost, etc. Using market value as an objective criterion would be to allow the current market value of a particular real estate property dictate the listing price as well as what consumers will pay. Precedent focuses on recent or past sales in the neighborhood or similar home. What using objective criteria does is allows a negotiation to take other things into account besides what each party thinks. When negotiating a real estate transaction, if you were looking to purchase a property and were told a selling price that was hire than you anticipated, you would ask what is dictating the asking price. If you were told that this is the current market price and precedent also confirms the price, you may consider it. Although if you were told that the property has sentimental value to the seller and there is no other reason why the property is listed as such, you would not be as open to buying that property. When negotiating real estate, using facts that can be proven is your best evidence to why your price on the property is more accurate. Not to mention that disputes regarding real estate usually end up in court so you might as well start building your case from the beginning.
While using objective criteria in negotiations you will begin to invent options that have mutual gain. Using market value can ensure that the buyer is not being over charged and can also provide the seller a quick sale. Inventing options for mutual gain is when you suggest common solutions that can benefit both parties. Using this strategy can not only provide for a smooth and happy negotiation but can also lead to increased and repeat business. Consider the homes that sit on the market for longer than preferred, they typically are either over priced or do not convey a value to the buyer. If the seller consider reducing the price to something the buyer sees more reasonable or even add some features like including furniture, they are more likely to sell the home. Otherwise they may not sell the home if they are insistent on not reducing the price of the home.

NEGOTIATING WITH ETHICS PROS AND CONS:
There are numerous advantages or pros that could be derived from negotiating with ethics or, also called, principle negotiation. For starters, separating the people from the problem allows more energy to focus on actual problem rather than the people involved. It also keeps the parties involved from mixing in the relationship. Principle negotiations focus on the interests of the parties and therefore provide a path for mutual adherence along with creating more results for these interests. It challenges each party to look for more options to solve the root cause of their problems (Funken 3). In addition, it builds a foundation to enhance the party’s relationship, getting each party to take into account emotions and future involvements amongst the parties. Last but not least, it takes into account legitimate standards. By providing authoritative standards the parties do not have to compromise but rather conform to the bylaws and distinguishing or meeting their interest. However, principle negotiation does have some disadvantages also.
Cons or arguments of principle negotiations include being to generalization, interest focused and hard bargainer. Generalization is having a general idea with a general application. The parties are being constricted to the four principles outlined in principle negotiation process and not allowed to venture in other possible negotiating steps. There may be times when negotiations could be concluded in more efficient ways than those listed in principle negotiating for instance, letting the parties think outside the box or by incorporate other negotiating styles. “Moreover, Provis warns that the focus on the concept of ‘interests’ flattens out the complexity of human interests, values and beliefs. He points out that often negotiations hinge on people's values and perceptions, rather than on their interests” (Funken 6). If the parties tend to focus on the interest alone and not perceptions and values of the people then there may be possible barriers that may arise. Principle negotiations states to use negotiation jujitsu when dealing with a hard bargainer but what if the other party has other motives. Some possible motives can be revenge, an intelligence advantage, or the thrill of negotiating (Funken 11). I understand these may be a tad extreme but they do exist in some cases and should not be completely omitted going into a negotiation.

Funken, Katja. “The Pros and Cons of Getting to Yes.” n.d. Web. http://200.14.84.223/apuntesudp/docs/cfi/(CFI8225)Negociacion_Crisis_y_Conflicto/(2003-03-25)_378_the_pros_and_cons_of_getting_to_yes.pdf 30 Oct 2009.


Team members: Jose Alvares, Jose Villarreal and Luis Ramirez.

Amortization Spreadsheet

The link below is to an amortization spreadsheet.

https://spreadsheets.google.com/ccc?key=0Au0Lm_cORGLldC1JcDhCTGhTemQybF9FZ29WbG1OVXc&hl=en

Answer to' Amortize this!'

Period	Beg Bal	Debt Service	Interest	Principal	End Bal
1	$300,000.00	$28,367.88	$6,000.00	$22,367.88	$277,632.12
2	$277,632.12	$28,367.88	$5,552.64	$22,815.24	$254,816.88
3	$254,816.88	$28,367.88	$5,096.34	$23,271.54	$231,545.34
4	$231,545.34	$28,367.88	$4,630.91	$23,736.97	$207,808.37
5	$207,808.37	$28,367.88	$4,156.17	$24,211.71	$183,596.66
6	$183,596.66	$28,367.88	$3,671.93	$24,695.95	$158,900.71
7	$158,900.71	$28,367.88	$3,178.01	$25,189.86	$133,710.85
8	$133,710.85	$28,367.88	$2,674.22	$25,693.66	$108,017.19
9	$108,017.19	$28,367.88	$2,160.34	$26,207.54	$81,809.65
10	$81,809.65	$28,367.88	$1,636.19	$26,731.69	$55,077.97
11	$55,077.97	$28,367.88	$1,101.56	$27,266.32	$27,811.65
12	$27,811.65	$28,367.88	$556.23	$27,811.65	$0.00