Home Buyers With Pending Contracts Should Be Careful With Spending During the Holidays

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Sure, it’s an exciting time of year and if you’re in the process of buying a home then it must be even more exciting to be planning for your new home. But there have been a lot of changes in lending practices during the past several years so you can never be too careful.

The reason for this is that in today’s lending environment, banks are extremely wary of whether or not borrowers can actually afford their loans. In light of the housing market crash and subsequent mortgage industry crisis over the past several years, it is important to keep as clear a financial profile as possible.

So once you have done all the paperwork for your loan process, the ratios are done, application is complete, bank statements are submitted and tax information provided – it is best to sit as tight as possible. Particularly for large purchases, be wary of how much your debt-to-income ratio stands to change with your taking on additional debt.

There are ways around it but it depends on your unique situation. We invite you to visit us for more insight on specific ways to manage your holiday spending. We have plenty of advice to give and a checklist that is very useful on how to manage spending during the purchase of a home.

Contact us today!

Happy 2012 Holidays and Warm Season’s Greetings!

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To all our cherished friends, neighbors, family and clients – we are so proud to have been able to work with you and be a part of your lives! As we end this year and turn to the exciting time and events that 2013 holds, we just wanted to take a moment to thank you for all that you bring to our lives.

We have some really great plans in the coming year to bring more success to all your real estate endeavors. And with each transaction that makes it to the closing table in the coming months and years ahead – we know that there will continue to be new and exciting things to follow for all of us.

On behalf of the entire group – Happy Holidays, Season’s Greetings, Peace and Joy!

You’ve Found the House – Now What About the Neighborhood?

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It seems easy enough; spend some time looking at houses and when the right one comes along, the feeling is there and you just know you’ve found home. But there is more that you should consider when looking to buy a home and that is the neighborhood.

There is a lot to be said about neighborhood dynamics and your best chance to be sure you’ve picked the right one is before you’ve signed any paperwork.

Here are some things you can do to scope out the neighborhood:

Drive by at various times of the day and evening. This will allow you to see the area in different angles and show you the dynamics and environment you can expect once you move in.

Stop and meet with neighbors. You will learn about the neighbors, get a feel for the atmosphere and attitudes of most people living nearby and also you can find out if there are any interesting nuances to be aware of in the neighborhood.

Investigate the crime reports by visiting websites that share that and other important market data. Also talk to neighbors to find out how they like living there.

Visit area schools if applicable to you and learn of the programs offered by them or community centers nearby.

Drive around and familiarize yourself with the nearest commercial areas. This will allow you to estimate the length of drives you will need to go on to get various things done (nearest grocery store, post office, police and fire departments, etc.).

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Though an appraiser will share a report with you about the tangible aspects of the value of your prospective home, nothing surpasses the feeling you have when you are in the right neighborhood, among its community members.
As always, for any of your real estate needs, we invite you to contact us and we will be glad to assist you! 

The 12 Days of Christmas Tour of Homes

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The Holiday Season is officially underway and it surely is the most wonderful time of the year. To celebrate this season, The Charlotte Mabry Team is hosting a tour of homes. We’ve assembled twelve fabulous homes in the East Brainerd and Ooltewah area to feature this weekend. We’re calling it The 12 Days of Christmas Tour of Homes. 

It’s a fun way to shop around for your next home, (that could be your Christmas tree in the living room this time next year). Be sure to stop by each home, 1 thru 12, everything from the Partridge in the Pear Tree to the 12 Drummers Drumming and everything in between including the 5 Gold Rings. Why all twelve? Aside from the goodies awaiting at each stop, (Santa’s not the only one who gets cookies and milk for going into other’s homes!) if you get the signature of each hosting Agent, you’ll be entered in a drawing for $150.00 gift card—now that’s a jolly way to bring in Christmas!

The festivities are from 2-5pm on Sunday December 2nd. So load up your sleigh and we’ll see you there!

Making Sense of the Government’s Home Affordable Programs

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When the housing market crashed in late 2007/early 2008, no one could have predicted just how challenging the housing industry would become. Yet today, after five years we are finally seeing recovery on the horizon. Despite the myriad positive things going on in our marketplace, including faster-moving inventory plus historically low interest rates that facilitate increased buying power, many people are struggling with underwater mortgages.

To clearly define the meaning of “underwater” as it is related to housing, when a home is valued at less than what is owed on it or the homeowners are unable to generate enough funds to clear the amount owed, it is a situation where the property is “underwater”.

If you are holding a mortgage that is either already underwater or you are having a hard time keeping up with the payments, it may be time to consider some of the options made available by the government’s line of Home Affordable programs.

HARP – Home Affordable Refinance Program

A very popular choice for countless Americans struggling to keep up with their payments since the interest rates on their existing mortgages are way too high as compared to today’s rates. With this provision, homeowners are able to refinance their home to today’s low rates allowing them considerable flexibility and monthly savings – often saving them from short sale or foreclosure.

HAMP – Home Affordable Modification Program

Some homeowners are unable to refinance their home due to not having enough equity in the home. In these situations, the HAMP program can provide relief by way of a loan modification. Participants in this program are able to obtain a modification on their loan, lowering the monthly payments among other benefits. Effective June 1, 2012 there are additional restrictions previously placed on the program that were lifted in an effort to be more flexible.

HAFA – Home Affordable Foreclosure Alternatives Program

For the millions of homeowners that are facing foreclosure as a result of not being able to keep up with their payments, the HAFA program allows them two alternatives. A short sale is made possible where the homeowner is permitted to sell the home for today’s market value despite the amount being “short” of what is owed. The other alternative is a Deed-In-Lieu of foreclosure – where the mortgage company retains the title of the home after it is transferred back to them.
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In addition to all the great alternatives provided by the Obama Administration’s Home Affordable programs, the current happenings in our housing industry reflect changing trends to benefit homeowners in the future. For instance, right now Fannie Mae and Freddie Mac are working out with Congress ways that you may be eligible for a short sale despite not being behind on your payment.
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If you would like to explore your options or find out more about these and other programs for homeowners, I invite you to contact me today. I look forward to making your real estate goals become a reality!

What’s a Real Estate “Short Sale” and Why Should I Buy One?

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The best way to explain a short sale is with an example:

Assume a homeowner has an unpaid loan mortgage balance of $200,000, but the property will sell for only $175,000. The lender holding the mortgage agrees to sell the house for the $175,000 amount, which, of course, leaves it “short” of the full amount of $200,000. Thus, the name “short sale!”

Obviously, lenders don’t like short sales since they’re not in business to lose money. But such situations do occur for various reasons often related to “hardship” situations. Examples include:

• Permanent injuries
• Financial insolvency
• Job layoffs, etc.

This is a sad situation for the homeowner, but it does offer an opportunity for you to pick up a bargain. However, there are several potential downsides you should be aware of before you make an offer.

Pitfall 1: Allow time for the lender’s decision.
Once your offer is accepted by the seller, the contract will be sent to the seller’s lender for approval. This process can take anywhere from 2 to 12 months, and there’s oftentimes no way to know beforehand exactly how long the lender will take.

Pitfall 2: The lender is under no obligation to accept the short sale.
Often times, lenders will come back with a counter of a higher price, or will sometimes reject the offer outright. There is no way to know beforehand exactly what the lender is thinking. This risk can be reduced by pre-qualifying the seller and making sure he or she has a genuine hardship, and by making sure you offer close to market value.

Pitfall 3: The seller must be committed to the process.
A great deal of paperwork and commitment will be required of the seller. There have been cases where the seller does not complete everything that is necessary and causes the lender to reject the deal. Additionally, there have been cases where the seller backs out to declare bankruptcy. Make sure the seller is committed to the process before you begin!

Summary

You can pick up great bargains in the short sale market, but you have to be very knowledgeable and very patient! And, as mentioned earlier, there are risks and often times you will face disappointment. Hiring a professional realtor who has experience with the ins and outs of short sales can help reduce these risks.

5 Reasons Homes Don't Sell

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Who does not want to get top dollar for their home?  The truth is that with the countless homes that have been on the market during the past several months – in many areas, just getting an offer is great news.  But regardless of your location, it is important to avoid making mistakes that could cost you the sale of your home.  Here are five things that sellers do wrong (and what you can do right) that end up in an unsold house.

Pricing

You want as much money as you can but that ends up backfiring when homeowners overprice.  The price should be set at middle or low end of the range for your home to be able to sell.  It’s important to review area comparable sales to gauge what other homes in the same neighborhood have recently sold for.  Overpricing helps other homes in the neighborhood sell and it also slows down your offers.

Staging and Photographs

Staging has become more popular – arranging furniture and removing personal items from the house.  It allows buyers to look at the home with a blank slate and be able to envision their own lifestyle in the home.  Another benefit of this is that the home’s features will be in plain view for buyers rather than being buried beneath mountains of the seller’s stuff.  High quality photographs are another part of effectively selling a home.  Almost all buyers begin their property search on the Internet and photos are pivotal to the process. 

Access to Property

Restricted access to the property will hinder successful sales because buyers will not be able to get in and see the home on their own schedule.  If you have a busy schedule that may seem difficult to work around, meet and discuss alternatives with your Realtor such as installing a lock box on the front door or setting up specific blocks of time each week that allow for some level of predictability without sacrificing accessibility to your home.

Attendance of Seller at Showing

One of the cardinal rules of real estate transactions during showings is that the seller must not be present while the buyer is reviewing the property.  If you happen to be present when a buyer shows up, leave quickly and do not interact with the buyer or their agent.  If that is not possible for some reason, make yourself as scarce as possible by either going to an area of the home that they have already looked at or go outside for a little while. 

Rejecting First Offer

The first offer you get on your property is usually the best offer you will get on your property.  It is important to look at that first offer as your best one and keep in mind that the longer the home remains on the market, the lower the offers are going to get.  Offers come in between 15 to 20 percent lower than the asking price but the home usually sells within about 5 to 10 percent of the asking price.

If you would like us to review your home and provide suggestions on how you can improve your chances for a successful sale, contact us today!

How to Evaluate an Offer on Your Home

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For most homeowners selling their home the thought of negotiating an incoming offer is a matter of settling in on a price that both sides can agree upon.  But did you know that there is another key aspect of negotiations aside from price that could have even greater impact on the sale?  The terms of your contract hold equal weight and importance as price in the sale of your home and are critical to a successful sale.

Here are five essential things to consider when navigating through the negotiation process after an offer comes in on your home.

Preapproval 
After the housing market crashed in 2007 lenders, buyers and sellers have proceeded very cautiously. Lenders are staunchly following stringent requirements, buyers and sellers are savvier than ever before and what seemed like formalities in the process before are now becoming necessities.  Preapprovals are one of the things that did not always need to be done in advance of buyers finding a home. But as you receive your offer on your property, be sure that your buyer has a preapproval from a reputable lender.  The letter should indicate what the buyer can afford and how much the lender is willing to loan them, assuming they meet all requirements at the time of application.

Down Payment 
One of the requirements lenders have today is to have an appraisal done on the home to equate its value with the selling price.  Unless the buyer has a significant down payment available, a less than ideal appraisal can stand to affect the sale altogether, even causing the deal to break down.  Check to see how much your buyer is able to put down on the house and add up the down payment with the loan amount to see if they equal your asking price.

Existing Home 
Does the buyer have an existing home they need to sell?  This can be a problem for you as a seller if they want to include a contingency in the contract that absolves them from the commitment of buying your home if their home does not sell.  This can wreak havoc on the sale of your property, as it would require you to leave the terms of your sale up to the success of another sale.  It would be best to avoid offers that include existing home contingencies.

Closing Date 
When does the buyer want to close on the home?  If the requested closing date extends beyond 90 to 120 days then it might be time to reconsider the offer.  Lenders have timing guidelines that dictate a 45-day policy, within which buyers must apply for a loan before closing.  Anything longer than that would get in the way of the lenders’ policy leaving the seller hanging in limbo during those off weeks.  When a buyer cannot meet the contractual obligation to get a commitment within 45 days, it might be a good idea to forego the offer altogether rather than to risk the sale.

Cash Transaction

Some buyers offer cash rather than opt for financing and though it is an attractive offer at first, you need to make sure that the buyer has the cash.  Asking your Realtor to verify the availability of those funds will become a necessary additional step before you can move on in the offer.  In some cases, buyers opt for alternative financing and when the time comes to verify the funds they are unable to do so.  The risk is too great so unless you can be sure the cash is there, it is a better idea to move on to the next offer.

Navigating through offers is a tricky process – especially in today’s market. It is no longer just a matter of coming to agreement on a sale price, rather both parties must agree to all aspects of the terms.  For customized guidance on your real estate endeavors, contact us today!

Buyer's Agents vs Seller's Agents

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When a buyer stumbles upon a home they might be interested in, they also stumble upon an agent when they call the one listed on the “for sale” sign.  In some cases that buyer ends up using the same listing agent for their purchase.  Little do they know that there is a clear distinction between the skill set of each real estate transaction’s side.  While there are double agents that are equipped to handle both sides of the fence, many Realtors deal primarily with either buying or selling transactions. 

What is the difference between the two and how can you protect your interests so that you end up getting the best terms and the most optimal outcome?  Here is some information to help discern the two plus some tips to follow when looking for the perfect agent for you.

Though Realtors go through the same licensing process regardless of whether they opt for a dual-transaction role or choose only one side, there are some distinct differences in the handling of each type of transaction. 

Buyer’s Real Estate Agent

In most cases, the process of buying a home is a pleasant one.  There is usually no negative stigma attached as there might be for someone selling against their wishes in case of job loss, relocation or financial struggle.  Buyers are in the process of seeking a new home, they enjoy looking at potential properties and their active involvement keeps things interesting.  Working with their agent, they strive to find a home that meets or exceeds all their expectations and see far ahead into the future with the prospective properties as they consider the years of enjoyment the new home will bring to their lives.  The primary role of a Realtor for buyers is to assist in locating the perfect home and to negotiate the best price possible on the home.

TIP:  Depending on whether the agent is associated with a brokerage with added incentives to sell an in-house property, you may or may not get enough visibility of outside properties.  When hiring an agent, be sure to make clear that you expect to see a wide range and variety of homes, including but not limited to the ones listed by the same brokerage.

Seller’s Real Estate Agent

Unlike the buying process, a seller’s agent must assist homeowners with finding solutions and getting their home sold.  This can often begin with a walk-through of the home that ends up in suggestions given to the homeowners about how to improve the property and prepare it for sale.  Sellers usually do not have the same level of enjoyment as buyers do unless there is a situation of buying up into a better home.  Even then the process the selling can be quite harrowing considering the number of prospective buyers that will visit the property.  Compounding the stress is when fewer than expected buyers appear interested in the home.  Another aspect of a seller agent’s dealing with clients that differs from a buying agent is the difficult process of helping sellers stay realistic when pricing their home – often leading to disappointment and frustration. 

TIP:  When signing a contract with your Realtor, it is important to clearly express that you would like to see each offer that comes through.  Some less than scrupulous agents might hold back low offers to avoid lower commissions. 

When hiring an agent that is right for you it is important to interview at least three agents.  Request a list of references with clients from the last three transactions as opposed to the agent’s standard list of references.  Prior to your meeting, assemble a list of important questions such as “how much time do you devote to your real estate career?” “How accessible are you?” and “what is your marketing strategy?”

When you do find the right one – things should “click”.  They should have energy and enthusiasm. They should be assertive but also willing to listen intently to your needs.  Your agent should be ready and available and reasonably accessible for your convenience.  And at the end of the day, they should work for you to help you achieve the best possible outcome.

First Impressions Have a Lasting Effect on Buyers; Going From Mess to Selling Success

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What would you say is the number one priority for most sellers of any property?  Getting a good price!  That is why it is essential that when you put your home on the market you be completely prepared to stand out and beat the competition. In fact, in today’s property environment, more and more sellers are jumping off the fence because they can sense the market shifting away from the buyer-centric climate we have had for years.

How can you get the most of your money when you sell your home?  It all comes down to impressions. Did you know that most buyers will decide whether they are interested or not within the first eight seconds of seeing a property? Eight seconds is all it takes for buyers to know immediately whether they want to investigate further or move on. Here are three ways to address this aspect of selling a home so that you end up getting top dollar for your sale:

Make a Fabulous First Impression

Consider how your home looks when you drive up to it. Is it warm and inviting? Are there lots of unkempt areas in the lawn and garden area?  Is the space messy or neat and clean?  Driving down any street and looking at homes, most people can easily spot homes that are cared for and lovingly maintained versus the ones that are neglected. The first impression a buyer gets of your home also indicates how you take care of the property inside as well.

Keep That Great Impression Going 

Now that you have the buyer’s initial interest, it is important to keep it going when they venture inside. Be sure to present the home in its best light. Imagine that the space was being photographed for a magazine. Would there be clutter, old and outdated fixtures, a sink full of dishes or a fridge covered in personal items?  Remember that buyers want to see the home for what it is – so it is important to provide visible access to all areas of the home. If there are closets, make an effort to de-clutter them so prospective buyers can gauge the amount of space they hold. If your home has a unique feature, show that feature off. And keep a balance between personal tastes and neutrality in terms design and décor.

Stay With the Times

No potential buyer wants to see a house that is over the top – enough that it shadows the potential of the space. If you have a kitchen that was last updated in the 70s, take the time and necessary expense to refinish the space. If budget is a concern, refinish the countertops and cabinets or flooring so that the area is rejuvenated. The same holds true for outdated bathrooms, carpeting and fixtures. Painting the walls is an inexpensive but impactful way to update a space and if at all possible, bring in some of the latest trends as long as they are neutral.
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We have a team of seller specialists dedicated to helping our sellers prepare their homes for the market. Our staging professionals will provide you with all the insight you need to know exactly how you can demand top dollar for your home. The most important thing to start is to make and keep a lasting impression!

3 Buyer Tips

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Right now, the housing market is a buyers’ market, but that is beginning to change.  However, no matter what kind of market it is, there are three sure-fire tips to make sure that you are getting the best deal on the best house.

Find the Right Agent

By hiring the best agent available, you are smoothing the road toward buying a new home right from the gate.  The right agent is someone who keeps a close eye on the market and is also a top negotiator.  When you hire the right agent, you can be confident that they will do all that they can to make sure you get the best possible deal.

Get a Home Inspection

Buying a home will most likely be one of the biggest investments you ever make in your life.  There is no need to put that investment at risk by trying to save a couple bucks by skimming out on a home inspection.  The money that you will spend on a home inspection can help you save huge dollars by spotting defects that only a trained and experience inspector may be able to spot.

Find the Right Lender

Just like finding the right agent will smooth the path to home ownership, finding the right lender can take great deal of unnecessary stress out of the process of buying a home.  By hiring the right lender, you can make sure that their fees and rates will remain unchanged and that they will be there for you to close on time.  Don’t risk the house of your dreams on an unreliable lender!

Keep Your Home Safe While on Vacation

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With summer fast approaching, you might already have vacation on your mind...so I wanted to share with you on this little video clip my favorite safety tips. In fact, I have multiple critical steps to prepare your home for safe keeping while you're away, to keep your nest safe and secure.

This is exactly what I did to prepare my home while I'm on vacation:

The best way to keep your home safe in your absence is to make it appear you are home, leaving absolutely no clue you're actually away. Light, time and noise are your greatest weapons to accomplish this. Follow these tips to ready your home and keep it safe:

- Ask someone you know and trust to keep an eye on your house.

For short trips, ask one of your neighbors to pick up your mail and your newspaper. If you are going to be gone longer, however, be sure to stop by the post office and have your home mail delivery stopped until you return.

Be sure to provide neighbors, friends and family members with emergency phone numbers so you can be reached quickly. It's a good idea to leave a spare house key with a relative or neighbor as well.

- At least a couple of weeks before you leave for vacation, decide what to do about your pets. You may want to have a friend or neighbor stop by each day to provide food, water and exercise. Or you may want to hire a professional pet sitting service or take the pets to a reputable kennel. This decision should be made well in advance so that proper arrangements can be made.

- Use timers on lights, televisions and radios to provide sound and illuminate the inside of your home.

- If you still have a home phone, change the setting on your answering machine so it picks up on the first or second ring—or just turn down the ringer. A constantly ringing phone is also a good sign no one is home.

- For long absences, you may want to turn off the main water valve. This will help avoid problems with frozen pipes in winter and leaking pipes in the warmer months as well as other plumbing issues.

- Keep shades up and blinds and curtains open to make it appear you're home.

- Keep bushes and shrubs near your home's entrance and walkway well trimmed. This will eliminate hiding spots for burglars.

- Keep the outside of your home well lit. Burglars won't go where they can be seen.

- Ask a neighbor to park in your driveway, occasionally moving his or her car indicate your coming and going.

- Leave the air conditioner on. A silent compressor on a hot day is a good indication you aren't home.

- Have the lawn mowed my a friend or lawn service if you are away longer than a week in the warmer months.

- This one is tough for those addicted to Facebook but posting to Facebook where you are at all times you are not only sharing this with your 'friends'. Those posts and photos allow others to find out when you are away and where you are. This isn't as concerning when you are local as you could post a comment or photo as you are ON your way home or just arrived but when your, say, at Disney World, those with ill plans regarding your trip away from home.

- Be sure to turn down the temperature on the hot water heater and unplug televisions and other appliances. These appliances will be drawing electricity whether they are on or not. Unplugging them will help lower your electric bill.

- Turn your thermostats down (or up) before you leave. There is no reason to spend money heating or cooling the home when you are not there.

- Don't forget about the plants. If you are having a friend or pet sitter care for your pets, ask them to take care of your plants as well. Simply soaking the plants with water before you leave is not enough. A better idea is to create a self watering system if you cannot have someone care for the plants. For small plants, make a self watering system by filling a plastic container with pebbles. Then fill the bottom of the container with water. This allows the plants to slowly absorb the moisture they need, without the danger of their roots becoming waterlogged. Larger plants can be mulched with a damp towel or newspaper to prevent the loss of moisture.

- When the day to leave for vacation finally arrives, try not to make that departure too obvious to those passing by. If you have a garage, be sure to pack the car with the garage door closed. If you do not have a garage, you may want to pack a couple of items a day in order to avoid broadcasting to the world that your home will be unoccupied.

- This last tip isn't a security measure for your house but for your credit (you know I always care about that as well) as you need to keep tight check over your credit in order to purchase or refinance your home!

With all the excitement of the upcoming trip we sometimes get carried away, plan only for the trip and security of our home for while we are away and leave for our stress-free trip. But wait!! You suddenly realize the day before you return the date! You've missed your mortgage payment, car payment, credit card, and utility due dates by a week or more! This happens more than I'd like to hear and the credit company doesn't accept this as a viable hardship excuse. So ensure you plan ahead. Go on and sit down to make all the payments needed to be made in advance before your trip and all those due up till a few days after your return for good measure to ensure you don't get tied up with the return home and forget this very important task to protect your credit rating!

As you can see, there is a lot to think about before you jump in the car or on a plane for vacation. Use this checklist as a way of bringing peace of mind to you and your family. Enjoy your vacations without worrying about the safety of your home while you're away.

How a Down Payment on a New Home Makes a Molehill Out of a Mountain!

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Believe me, your down payment on a new home affects nearly everything you can think of in the buying process - the loan programs you're able to qualify for, the size of the interest rate, the amount of closing costs, etc.

The basic rule is this: the more you have to put down on a down payment for a home, the more options you have!

This rule is true because, like all lenders, mortgage lenders dislike risk. They're in the business of making money by lending money. So, the more money you put down, the lower the risk, and the more lenders like your deal.

And, that's not all. If you have enough cash for a large down payment, then more choices open up to you! You can choose conventional fixed rate loans, adjustable rate mortgages, VA, FHA, graduated payment mortgages and all the variations of each of these programs.

By the way, when you combine a good-to-excellent credit score with a large down payment, you'll definitely get positive attention from loan officers!

Acceptable Sources for Down Payment Monies

In general, lenders want to see adequate funds available for a period of at least sixty (60) days in your account. The usual methods of proof of these funds are either a Verification of Deposit form or two months' worth of your most recent bank account statements.

So, if you're person who keeps money "under the mattress" or somewhere in your home, this isn't acceptable. It has to be deposited in an account (bank or investment) for at least two months (preferably longer).

In technical terms, this is called "seasoning." And the reason behind it is this: First, by having money in an account, it shows you have to ability and discipline to save money and, thus, are a good risk from the lender's point of view. Second, it demonstrates that the money is likely yours and not a personal loan from a family member or a friend. Lastly, and obviously, it shows you have enough money on hand for a down payment.

In general, here are sources you can use for a down payment:

• Checking account• Savings account
• 401k account
• IRA account (have to meet specific guidelines)
• Money market account
• Stocks
• Bonds
• Mutual funds
• Certificates of deposit and other liquid assets.
• Sale of an asset, etc.

Frankly, in this New Age of Frugality, the safest method is to simply save the money for a down payment. This teaches you financial discipline which is good for all aspects of your life, and it means you don't have to rob other assets to pay the down payment.

I'd be happy to discuss and suggest many different ways of obtaining down payment money. Contact me today.

Avoiding Costly Remodeling Expenses That May Hinder, Not Help To Sell Your Home

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For many homeowners, selling their home is an event that usually only takes place once or maybe twice in their lifetime.  For this reason, the experience is completely foreign to them and they may be carrying old ways of thinking in terms of how to prepare the home for sale.  Where once some things may not have been a turn off to sellers, in the current marketplace there may very well be different standards.  It is highly recommended to consult with a professional prior to having any significant work done on a home – especially if the prospect selling the property is in the near or short-term future.  Here are a few reasons why homeowners should proceed with caution before embarking on any major repairs, renovation or remodeling their homes.

New Owners May Not Have The Same Tastes

Though there are a few “clean slate” type design looks that are fairly universal, one can never tell how potential buyers might react to particular design elements in a home.  Aside from keeping a fairly neutral color palette and updating kitchens and bathrooms to a modern state, generally less is more.  In some cases, sellers deliberately leave areas in their home that require a lot of work for their future buyers to contend with.  When rolled into negotiations, it can end up saving the sellers a lot of money while sparing buyers a lot of headache at the same time.

Housing Values May Already Be Topped Off

Depending on the market, your home may already be at the maximum limit in terms of value in the neighborhood.  If your home is already among the ones valued higher than other nearby homes, then putting in any more money toward the property could end up being a waste of money.  It is a good idea to leave some room for a home to increase in value over the years.  If there is a significant amount of investment made to improve the home but it falls outside of the value range for the neighborhood, it could be a huge turnoff to buyers resulting in fewer offers.

Hidden Costs Could Surface During The Remodel

If you expect to sell your home soon, the last thing you want to do is to get involved in a lengthy renovation project only to discover that there are hidden issues lurking behind the walls.  Many times unsuspecting homeowners encounter hidden problems that end up costing a lot more money than they ever expected.  Had they spoken to a Realtor in advance, they might have learned that a better strategy would be to allow potential buyers to decide whether they preferred the change.

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When you make the decision to incorporate some changes to your home, be sure to sit down and consider all the current and potential factors at hand.  Many homeowners do not realize how beneficial meeting with their real estate agent can prove to be if done prior to beginning any major work.  Before overdoing any of the “redoing” in your home, set up an appointment with a professional!

Is a Real Estate Investment a Smart Move Right Now?

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Here’s a quiz…

TRUE OR FALSE:
1. Home prices have come down over 50%.
2. Over 6% of households are in foreclosure.
3. The suspension of foreclosures by major financial institutions will delay recovery of the real estate market.

The answer for each is – IT DEPENDS.

Prices of homes have come down considerably in the last few years. Foreclosures are also increasing by an alarming rate. This does not mean, however, that there a large amounts of foreclosures today. The numbers are still relatively low overall.

What does this mean? Because foreclosures make up such a small percentage of households in our market, if some were suspended the impact would be insignificant.

It is important to recognize that real estate markets are local, that prices all over the country haven’t taken a complete nose dive, and that the market isn’t flooded with foreclosures.  

We, as consumers, have been inundated with a continuous stream of negative news from the press because extremes, whether booms or busts, get attention. Five years ago, good news about the real estate market was exaggerated. 

Now the statistics from the worst market in the country are generalized as if they were occurring everywhere. That’s why it’s so important for understand the complete real estate picture to separate fact from fiction.

Here’s another quiz:

TRUE OR FALSE:
Now is the best home buying opportunity of a lifetime.

The answer for the real estate marketplace is TRUE!

Here’s why:

1. The Market
We have clearly seen the bottom of the market. Unit sales have dropped after the April 30, 2010 expiration of the home buyer tax credit, but annual sales have been stable for three years.

2. Interest Rates

Interest rates are at generational lows. It is hard to believe they will go much lower, and they will definitely rise as the economy begins to improve. We would normally think of 5.5% as a terrific interest rate but at the current rate of 4.25% is outstanding. A buyer borrowing $250,000 over 30 years will save $2,700 each year over the life of the loan. That’s a total savings of $68,000!

3. Quality of Life

It’s not unusual to hear conversations about the rent versus buy scenario. There are some advantages to renting but in reality, but buying is usually the best choice. The best communities are made up of owners who care about their properties. Owning a home is one of the best ways to take control of our future.

Houses are more affordable than they have been in years. Stable prices and incredibly low interest rates allow buyers to purchase more for their money so they can enjoy living in a house that better meets their lifestyle needs.

4. Long-term Investment

Right now, many people are carefully considering whether or not to buy a home. Lack of confidence in the economy and the job market are holding them back. But there is only so long to wait before this opportunity ends. If life circumstances dictate a move, it’s best to act now. I can’t imagine that conditions will improve for potential home buyers in this area!

In five or seven years, you will probably be glad you bought a home, or be sorry you didn’t. It’s best to make sure you to provide them with the expertise and knowledge to make the right choice now, or else they will look back and say,“I should have.” After all, the true value of what you do goes beyond showing houses or writing contracts. It is in helping people make their dreams come true.