Provided By Michelle Little of Republic Title
Source Realtor.org
Are you interested in selling your home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Monday, November 29, 2010
Friday, November 26, 2010
10 Tips For New Buyers
By Carla Hill
Source Realty Times
It is a great time to buy for many would-be homeowners. The market offers historically low interest rates, as well as affordable home prices.
Here are 10 steps that buyers can take to make home dreams a reality!
1. Savings. You may already know how much monthly payment you can support (experts recommend no more than 1/3 your monthly income), but the buying process will also include upfront costs, such as a downpayment and closing costs.
2. Downpayment options. Do you qualify for downpayment assistance programs? Will you be able to get an FHA loan and pay 3.5 percent down? Do you have a relative that would like to make a downpayment gift? Many financial experts recommend a downpayment of 20 percent, so be sure to explore your options!
3. Check Credit Report. Your credit report says a lot about you. Lenders use it to evaluate your risk potential and to inform themselves on how responsible of a borrower you are. They use this report and subsequent score to figure your interest rate. The more stellar your report, the better your score and thus lower your rate. Be sure to check your report for accuracy, and report any errors to the credit reporting agencies.
4. Get Prequalified. It's time to talk to a lender! Pre-qualification will give you a ballpark figure of how much the bank would be willing to lend you. Are you looking for a $100,000 house or a $300,000?
5. Get Preapproved. This is the official letter from the lender that says they will be willing to lend you money. Many sellers look for buyers who are preapproved.
6. Affordability. The bank may tell you that you can afford a home worth $300,000. This does not mean you want to borrow to your max. A more modest home may fit better in your financial plans.
7. Housing Criteria. You have a budget, now develop a list of what you need and want. This can include anything from "must have 3 bedrooms" to "hardwoods" or "granite".
8. Neighborhood choice. Location strongly affects prices. A 3,000 square foot home in rural Kansas costs a fraction of one in New York City. Decide what neighborhoods and areas are the best fit for you. This will help narrow your home search.
9. Hire an agent. An agent can help you navigate the entire process from searching, putting in offers, to where to hire an inspector or general contractors.
10. Start the search! The MLS is a wonderful place to begin your search. Eighty-four percent of buyers now start their search online, so you'll be in good company.
Do you have questions about buying your first home? We have the answers! Call us at 972-772-7000 or email us at rockwall@kw.com.
Source Realty Times
It is a great time to buy for many would-be homeowners. The market offers historically low interest rates, as well as affordable home prices.
Here are 10 steps that buyers can take to make home dreams a reality!
1. Savings. You may already know how much monthly payment you can support (experts recommend no more than 1/3 your monthly income), but the buying process will also include upfront costs, such as a downpayment and closing costs.
2. Downpayment options. Do you qualify for downpayment assistance programs? Will you be able to get an FHA loan and pay 3.5 percent down? Do you have a relative that would like to make a downpayment gift? Many financial experts recommend a downpayment of 20 percent, so be sure to explore your options!
3. Check Credit Report. Your credit report says a lot about you. Lenders use it to evaluate your risk potential and to inform themselves on how responsible of a borrower you are. They use this report and subsequent score to figure your interest rate. The more stellar your report, the better your score and thus lower your rate. Be sure to check your report for accuracy, and report any errors to the credit reporting agencies.
4. Get Prequalified. It's time to talk to a lender! Pre-qualification will give you a ballpark figure of how much the bank would be willing to lend you. Are you looking for a $100,000 house or a $300,000?
5. Get Preapproved. This is the official letter from the lender that says they will be willing to lend you money. Many sellers look for buyers who are preapproved.
6. Affordability. The bank may tell you that you can afford a home worth $300,000. This does not mean you want to borrow to your max. A more modest home may fit better in your financial plans.
7. Housing Criteria. You have a budget, now develop a list of what you need and want. This can include anything from "must have 3 bedrooms" to "hardwoods" or "granite".
8. Neighborhood choice. Location strongly affects prices. A 3,000 square foot home in rural Kansas costs a fraction of one in New York City. Decide what neighborhoods and areas are the best fit for you. This will help narrow your home search.
9. Hire an agent. An agent can help you navigate the entire process from searching, putting in offers, to where to hire an inspector or general contractors.
10. Start the search! The MLS is a wonderful place to begin your search. Eighty-four percent of buyers now start their search online, so you'll be in good company.
Do you have questions about buying your first home? We have the answers! Call us at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, November 24, 2010
Holiday Shopping - Where the Deals Are
By Michael Koretzky
Source: http://www.moneytalksnews.com/
Provided By Shelley Dudley
You know the holiday season is almost here when economists and forecasters start predicting just how much we'll spend on gifts - and they all contradict each other.
Take a look at these reports from last week..
"After a ho-hum 2009 and a disastrous 2008, holiday retail sales are expected to increase a more moderate 2.3 percent this year," proclaims the National Retail Federation.
"In almost every category this year, there is a drop-off in intended purchases," cautions market research firm NPD Group.
"The overwhelming majority of shoppers will maintain a tight grip on their wallets as they hit the stores this holiday season, with 83 percent expecting to spend the same or less on holiday gifts compared to 2009," suggests business consulting firm Accenture.
Even though the experts don't know exactly what will happen by the end of the holiday shopping season, their reports give the rest of us some tips on what to do - and not do - at the beginning.
For instance, all three reports make the obvious prediction that consumers will be bargain-hunting this holiday season. "The primary influence on where consumers will shop for gifts this year remains price," says NDP Group. And since these reports are widely read by businesses that set those prices, that's good news for us. But NDP is not advising retailers to slash prices on clothes.
Clothing may not come cheap
"In apparel, I think it is important to point out that the drop-off in intentions doesn't necessarily mean a significant decline in apparel sales," says Marshal Cohen, NDP's chief industry analyst. Cohen explains it like this...
Consumers tend to fall back on their "old faithful" items, like apparel, especially when there are no "new" items or "hot" categories. And so far there are only some updated re-runs of the same old product. These may be "want-to-have" items, but there aren't any "must-have" items, at least not yet.
Here's another reason to double-check those prices on clothing: According to the Accenture study, holiday shoppers plan to spend more on clothes (57 percent) than anything else - including toys (41 percent). So the law of supply and demand suggests prices for clothing may not be as deeply discounted as other items. In addition, high cotton prices may be reflected in higher clothing prices: see our recent story Expect Higher Holiday Prices for T-Shirts and Jeans.
Gift cards will be popular
Without one hot new toy or tech gadget for the holiday season, what will be the second most-popular present after clothing? Gift cards. Accenture says 57 percent of us will buy one as present, while "44 percent of consumers will buy up to three gift cards, and 85 percent will spend up to $50 on each gift card."
Gift cards seem like a great convenience, but as we've written about before, be careful.
Black Friday every day?
Accenture says more holiday shoppers (53 percent) will skip Black Friday - the day after Thanksgiving that marks the start of the holiday shopping season - than fight the crowds for deals. And the National Retail Federation's chief economist Jack Kleinhenz predicts, "Retailers are expected to compensate for this fundamental shift in shopper mentality by offering significant promotions throughout the holiday season and emphasizing value throughout their marketing efforts."
That's good news for those of us who don't relish the idea of parking our cars on the edges of our local malls and burning our Thanksgiving Day calories elbowing our neighbors for great deals.
"The growing ambivalence toward the traditional Black Friday shopping trip is being driven by a number of factors," says Janet Hoffman, managing director of Accenture's retail practice. "The increase in the number of homes with broadband Internet access means that many shoppers will prefer to stay at home and bag the offers online rather than brave the crowds."
But here's the scariest prediction of all, also from Hoffman: "Holiday shopping is now a 24/7 event." Ho oh no...
Are you looking for great deals? To find homes where you can get more for your money call us at 972-772-7000 or email us at rockwall@kw.com.
Source: http://www.moneytalksnews.com/
Provided By Shelley Dudley
You know the holiday season is almost here when economists and forecasters start predicting just how much we'll spend on gifts - and they all contradict each other.
Take a look at these reports from last week..
"After a ho-hum 2009 and a disastrous 2008, holiday retail sales are expected to increase a more moderate 2.3 percent this year," proclaims the National Retail Federation.
"In almost every category this year, there is a drop-off in intended purchases," cautions market research firm NPD Group.
"The overwhelming majority of shoppers will maintain a tight grip on their wallets as they hit the stores this holiday season, with 83 percent expecting to spend the same or less on holiday gifts compared to 2009," suggests business consulting firm Accenture.
Even though the experts don't know exactly what will happen by the end of the holiday shopping season, their reports give the rest of us some tips on what to do - and not do - at the beginning.
For instance, all three reports make the obvious prediction that consumers will be bargain-hunting this holiday season. "The primary influence on where consumers will shop for gifts this year remains price," says NDP Group. And since these reports are widely read by businesses that set those prices, that's good news for us. But NDP is not advising retailers to slash prices on clothes.
Clothing may not come cheap
"In apparel, I think it is important to point out that the drop-off in intentions doesn't necessarily mean a significant decline in apparel sales," says Marshal Cohen, NDP's chief industry analyst. Cohen explains it like this...
Consumers tend to fall back on their "old faithful" items, like apparel, especially when there are no "new" items or "hot" categories. And so far there are only some updated re-runs of the same old product. These may be "want-to-have" items, but there aren't any "must-have" items, at least not yet.
Here's another reason to double-check those prices on clothing: According to the Accenture study, holiday shoppers plan to spend more on clothes (57 percent) than anything else - including toys (41 percent). So the law of supply and demand suggests prices for clothing may not be as deeply discounted as other items. In addition, high cotton prices may be reflected in higher clothing prices: see our recent story Expect Higher Holiday Prices for T-Shirts and Jeans.
Gift cards will be popular
Without one hot new toy or tech gadget for the holiday season, what will be the second most-popular present after clothing? Gift cards. Accenture says 57 percent of us will buy one as present, while "44 percent of consumers will buy up to three gift cards, and 85 percent will spend up to $50 on each gift card."
Gift cards seem like a great convenience, but as we've written about before, be careful.
Black Friday every day?
Accenture says more holiday shoppers (53 percent) will skip Black Friday - the day after Thanksgiving that marks the start of the holiday shopping season - than fight the crowds for deals. And the National Retail Federation's chief economist Jack Kleinhenz predicts, "Retailers are expected to compensate for this fundamental shift in shopper mentality by offering significant promotions throughout the holiday season and emphasizing value throughout their marketing efforts."
That's good news for those of us who don't relish the idea of parking our cars on the edges of our local malls and burning our Thanksgiving Day calories elbowing our neighbors for great deals.
"The growing ambivalence toward the traditional Black Friday shopping trip is being driven by a number of factors," says Janet Hoffman, managing director of Accenture's retail practice. "The increase in the number of homes with broadband Internet access means that many shoppers will prefer to stay at home and bag the offers online rather than brave the crowds."
But here's the scariest prediction of all, also from Hoffman: "Holiday shopping is now a 24/7 event." Ho oh no...
Are you looking for great deals? To find homes where you can get more for your money call us at 972-772-7000 or email us at rockwall@kw.com.
Monday, November 22, 2010
Buying In Neighborhoods Where Home Prices Don't Fall
By Michele Lerner
Source: http://www.bankrate.com/
Provided By Shelley Dudley
In a world of imploding home prices, can homebuyers find neighborhoods where values will not fall?
Certain characteristics make some neighborhoods more desirable than others. Real estate industry experts say these neighborhoods are more likely to experience stable or rising home prices.
Many buyers today are fixated on price. But such tunnel vision can be shortsighted.
"You may get a good deal on a home in an area where prices fell deeply, but it will take longer for prices to recover," says Pat Kline, a broker with Avery-Hess Realtors in Springfield, Va.
Instead, look beyond price to qualities that keep neighborhoods attractive to buyers over the long haul. Try to match your own lifestyle priorities with a solid choice of community.
"It's important most of all for people to look for a neighborhood they love and will enjoy for the long term, because that's the best way to make sure you get value from your home," Kline says.
When looking for good neighborhoods, keep the following in mind:
Search healthy 'move up' neighborhoods
"The most desirable areas tend to be close to a city and are often well-established neighborhoods," says Ben Hoefer, a real estate agent with John L. Scott Real Estate in Seattle.
In the Seattle market, neighborhoods with slightly above-median prices that appeal to buyers on their second or third home purchase have held onto their value during the housing downturn, Hoefer says.
"Buyers should avoid areas with a lot of foreclosures because it may take longer for those homes to regain their value," Hoefer says. "Areas with a lot of first-time buyers were hard-hit because they did not have a lot of equity in their home and were faster to default. It's better, if you can afford it, to buy into a 'move-up' area, although not necessarily a super-expensive neighborhood."
Liz Sidorowicz, a broker with Re/Max Signature in Chicago, says areas with long-term residents -- where many owners have lived for 15 years or more -- are likely to be more stable and see fewer foreclosures.
Consider commute times and public transportation
Not every buyer wants to live close to a city. But some suburban neighborhoods can be more vulnerable to price drops.
Kline says prices dropped dramatically in distant suburbs of Washington, D.C., in part because the long commute times made these homes less desirable.
"A Realtor can show you statistics for different neighborhoods, so you can see which ones fared better than others," he says.
Sidorowicz also says that proximity to public transportation is valuable.
"Anything close to a train or metro line, whether you are in the suburbs or in the city, will keep its value," says Sidorowicz. "Also, look for communities that are convenient to major employment centers because there will always be a larger pool of buyers looking in that area."
Investigate neighborhood amenities
Look for communities that have a lot of amenities.
"The more varied amenities you can find in a community, the better it is," Kline says. Communities that offer tennis and basketball courts have a stronger value than places where you have to drive 20 minutes to get to anything.
"People want to live close to things like parks, libraries and shops, and they would prefer to walk there rather than drive if they can," Kline says.
Check out the schools
Homebuyers should look for a neighborhood within a good school district, even if they don't have children. Families always want to purchase homes in such neighborhoods.
Due to Fair Housing laws, real estate agents cannot discuss whether schools are good or bad. However, consumers can find test scores and other statistics on school district websites and school reviews on the Internet.
Know the local crime rate
Crime rates also influence neighborhood values. Look at police district websites or call the local police substation to ask about crime statistics for individual neighborhoods, Sidorowicz says.
Hoefer says it's important to look at crime trends: "You do not want to buy in an area where crimes of any kind are increasing."
In areas with improving crime rates, it may take time for perception to catch up to reality, Hoefer says.
"Buyers need to realize that the stigma of a high crime rate can last a long time and hurt property values, even after crime has dropped," he says.
Gauge the neighborhood's curb appeal
The physical appearance of a community can be a strong indicator of its stability.
"If there are too many places in disrepair, that can be an indication of a lack of pride in a community," Kline says. "Places that are well-kept and have some landscaping and fresh paint indicate an area where people will work hard to maintain the value of their property."
Find out about future development plans
Learn about future development plans that could have a negative or a positive impact on property values. Talk to real estate agents and research government websites to track down such information.
"There may be a little risk in relying on a revitalization project to improve home prices, but this can be a way to get in on the ground floor of an improving area," Kline says.
Are you interested in buying a home? Call us at 972-772-7000 or email us at rockwall@kw.com. We want to help you find your perfect home!
Source: http://www.bankrate.com/
Provided By Shelley Dudley
In a world of imploding home prices, can homebuyers find neighborhoods where values will not fall?
Certain characteristics make some neighborhoods more desirable than others. Real estate industry experts say these neighborhoods are more likely to experience stable or rising home prices.
Many buyers today are fixated on price. But such tunnel vision can be shortsighted.
"You may get a good deal on a home in an area where prices fell deeply, but it will take longer for prices to recover," says Pat Kline, a broker with Avery-Hess Realtors in Springfield, Va.
Instead, look beyond price to qualities that keep neighborhoods attractive to buyers over the long haul. Try to match your own lifestyle priorities with a solid choice of community.
"It's important most of all for people to look for a neighborhood they love and will enjoy for the long term, because that's the best way to make sure you get value from your home," Kline says.
When looking for good neighborhoods, keep the following in mind:
Search healthy 'move up' neighborhoods
"The most desirable areas tend to be close to a city and are often well-established neighborhoods," says Ben Hoefer, a real estate agent with John L. Scott Real Estate in Seattle.
In the Seattle market, neighborhoods with slightly above-median prices that appeal to buyers on their second or third home purchase have held onto their value during the housing downturn, Hoefer says.
"Buyers should avoid areas with a lot of foreclosures because it may take longer for those homes to regain their value," Hoefer says. "Areas with a lot of first-time buyers were hard-hit because they did not have a lot of equity in their home and were faster to default. It's better, if you can afford it, to buy into a 'move-up' area, although not necessarily a super-expensive neighborhood."
Liz Sidorowicz, a broker with Re/Max Signature in Chicago, says areas with long-term residents -- where many owners have lived for 15 years or more -- are likely to be more stable and see fewer foreclosures.
Consider commute times and public transportation
Not every buyer wants to live close to a city. But some suburban neighborhoods can be more vulnerable to price drops.
Kline says prices dropped dramatically in distant suburbs of Washington, D.C., in part because the long commute times made these homes less desirable.
"A Realtor can show you statistics for different neighborhoods, so you can see which ones fared better than others," he says.
Sidorowicz also says that proximity to public transportation is valuable.
"Anything close to a train or metro line, whether you are in the suburbs or in the city, will keep its value," says Sidorowicz. "Also, look for communities that are convenient to major employment centers because there will always be a larger pool of buyers looking in that area."
Investigate neighborhood amenities
Look for communities that have a lot of amenities.
"The more varied amenities you can find in a community, the better it is," Kline says. Communities that offer tennis and basketball courts have a stronger value than places where you have to drive 20 minutes to get to anything.
"People want to live close to things like parks, libraries and shops, and they would prefer to walk there rather than drive if they can," Kline says.
Check out the schools
Homebuyers should look for a neighborhood within a good school district, even if they don't have children. Families always want to purchase homes in such neighborhoods.
Due to Fair Housing laws, real estate agents cannot discuss whether schools are good or bad. However, consumers can find test scores and other statistics on school district websites and school reviews on the Internet.
Know the local crime rate
Crime rates also influence neighborhood values. Look at police district websites or call the local police substation to ask about crime statistics for individual neighborhoods, Sidorowicz says.
Hoefer says it's important to look at crime trends: "You do not want to buy in an area where crimes of any kind are increasing."
In areas with improving crime rates, it may take time for perception to catch up to reality, Hoefer says.
"Buyers need to realize that the stigma of a high crime rate can last a long time and hurt property values, even after crime has dropped," he says.
Gauge the neighborhood's curb appeal
The physical appearance of a community can be a strong indicator of its stability.
"If there are too many places in disrepair, that can be an indication of a lack of pride in a community," Kline says. "Places that are well-kept and have some landscaping and fresh paint indicate an area where people will work hard to maintain the value of their property."
Find out about future development plans
Learn about future development plans that could have a negative or a positive impact on property values. Talk to real estate agents and research government websites to track down such information.
"There may be a little risk in relying on a revitalization project to improve home prices, but this can be a way to get in on the ground floor of an improving area," Kline says.
Are you interested in buying a home? Call us at 972-772-7000 or email us at rockwall@kw.com. We want to help you find your perfect home!
Friday, November 19, 2010
Fall May Bring Serious Buyers
Provided By Realty Times
Written By Phoebe Chongchua
As the year winds down, many homeowners fear that now could be a bad time to sell their home. While it’s true that the holidays can deter some folks from house hunting and making a major purchase—don’t give up.
If your house is on the market, step up the action plan to draw attention to it. Don’t let the holiday blues make you feel like there’s no hope. Homes are sold and bought this time of year. But the ones that get snatched up are the ones that are enticing to buyers.
Because this is a very busy time of year with personal travel and holiday celebrations, many real estate experts note that if you have buyers dropping by your open house or making an appointment to view your home, there’s a good chance they’re serious buyers.
There are some things you can do to make your home more “showable”. We often say in the real estate industry, “the way you live in a home is not the way you stage a home.”
So, while this time of year often brings out all the holiday decor, there is such a thing as too much holiday cheer. No, I’m not the Grinch. It’s just that not all buyers celebrate the same holidays.
A good rule of thumb, is to keep decor simple and subtle. If you celebrate Christmas, go ahead and put a tree up but don’t put one up in every room. Remember that buyers will be looking at your home and imagining their own holiday celebrations there. So, be sure to leave them room to envision their lives in the home.
This goes for the outside too. Holiday lights can be placed outside very tastefully but ditch the huge inflatable characters that make it look like your yard is an amusement park. Instead, opt for a nice holiday wreath and some subtle seasonal decor. Keep in mind that curb appeal is what gets buyers in the door. If your home isn’t appealing from the outside, buyers won’t bother to stop for a look inside.
Stash the gifts. If you usually put them under the tree or around the house, save them for the day of your celebration. There are two reasons: presents take up precious floor space and they are a distraction. It’s a good idea to keep as many personal belongings as possible in a safe, private place.
Especially in cold weather areas, cinnamon pine cones or some other mild potpourris can be a pleasant welcome. But don’t go overboard with different fragrances in every room.
Another nice touch is to spruce up the mantle. However, if you usually hang stockings with your family’s names on them, you might consider using less personal ones while showing your home. It’s the same reason, stagers will put away your personal photos—to create a space where buyers can imagine their photos and belongings in.
Listing your home for sale during the holidays doesn’t have to make you blue; in fact it can truly brighten your spirits by putting some green in your bank account. Just be sure to focus on making your home a buyer’s dream this holiday season.
Are you planning on selling your home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Written By Phoebe Chongchua
As the year winds down, many homeowners fear that now could be a bad time to sell their home. While it’s true that the holidays can deter some folks from house hunting and making a major purchase—don’t give up.
If your house is on the market, step up the action plan to draw attention to it. Don’t let the holiday blues make you feel like there’s no hope. Homes are sold and bought this time of year. But the ones that get snatched up are the ones that are enticing to buyers.
Because this is a very busy time of year with personal travel and holiday celebrations, many real estate experts note that if you have buyers dropping by your open house or making an appointment to view your home, there’s a good chance they’re serious buyers.
There are some things you can do to make your home more “showable”. We often say in the real estate industry, “the way you live in a home is not the way you stage a home.”
So, while this time of year often brings out all the holiday decor, there is such a thing as too much holiday cheer. No, I’m not the Grinch. It’s just that not all buyers celebrate the same holidays.
A good rule of thumb, is to keep decor simple and subtle. If you celebrate Christmas, go ahead and put a tree up but don’t put one up in every room. Remember that buyers will be looking at your home and imagining their own holiday celebrations there. So, be sure to leave them room to envision their lives in the home.
This goes for the outside too. Holiday lights can be placed outside very tastefully but ditch the huge inflatable characters that make it look like your yard is an amusement park. Instead, opt for a nice holiday wreath and some subtle seasonal decor. Keep in mind that curb appeal is what gets buyers in the door. If your home isn’t appealing from the outside, buyers won’t bother to stop for a look inside.
Stash the gifts. If you usually put them under the tree or around the house, save them for the day of your celebration. There are two reasons: presents take up precious floor space and they are a distraction. It’s a good idea to keep as many personal belongings as possible in a safe, private place.
Especially in cold weather areas, cinnamon pine cones or some other mild potpourris can be a pleasant welcome. But don’t go overboard with different fragrances in every room.
Another nice touch is to spruce up the mantle. However, if you usually hang stockings with your family’s names on them, you might consider using less personal ones while showing your home. It’s the same reason, stagers will put away your personal photos—to create a space where buyers can imagine their photos and belongings in.
Listing your home for sale during the holidays doesn’t have to make you blue; in fact it can truly brighten your spirits by putting some green in your bank account. Just be sure to focus on making your home a buyer’s dream this holiday season.
Are you planning on selling your home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, November 17, 2010
Down Payment Options
Provided By iforma Research Services
Source Yahoo! Real Estate
One of the components a lender uses to help determine what loan amount to approve is your down payment. A down payment not only serves as a commitment on a borrower.s behalf to make good on a loan, but acts as a lender.s guarantee to minimize risk in case a borrower defaults on a loan. The more of your own cash that you can put down for a loan, the easier it is to qualify for a higher loan amount or a lower mortgage payment.
Alternative sources of funding
Since most borrowers do not have large cash reserves on-hand for a down payment, there are other alternative sources for funding. Besides tapping into your own savings accounts, other resources may include friends, relatives, 401(k) plans, proceeds from stock sales, appraised assets, even a co-signer.
Many cities, looking to expand their communities, even offer their own down payment subsidy programs for cash-strapped buyers. It.s not uncommon to be gifted $5,000 to $10,000 without expectation of re-payment.
Loan-to-value ratio
A down payment is always expressed as a percent of the sales price and often referred to by lenders at the .loan-to-value ratio. or LTV. For instance, a $250,000 mortgage with an LTV of 80 percent would require 20 percent down or $50,000. Using a down payment calculator can help you see what influence a different down payment can have on your monthly mortgage.
Other down payment options
Some banks even offer zero-down percentage loans which require no down payment. These types of loans are typically directed at first-time buyers with good credit who are qualified to make the monthly payment but cannot come up with a down payment. However, without a down payment the buyer has no equity in the house and the lender is at greater risk, so the interest rate could be higher.
Another alternative to buying a home without committing to a down payment is to consider a lease option to buy. As a renter, you have an option anytime during the term of the lease, to buy the property at an agreed upon price from the owner. In some instances, the money you.ve put toward rent can be fully or partially applied toward the down payment.
Sellers can also assist buyers with their down payment. By offering a carry-back mortgage, sellers can sell their house faster in a competitive market and buyers can purchase a home they otherwise might not be able to afford.
Do you have questions about all your down payment options? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Source Yahoo! Real Estate
One of the components a lender uses to help determine what loan amount to approve is your down payment. A down payment not only serves as a commitment on a borrower.s behalf to make good on a loan, but acts as a lender.s guarantee to minimize risk in case a borrower defaults on a loan. The more of your own cash that you can put down for a loan, the easier it is to qualify for a higher loan amount or a lower mortgage payment.
Alternative sources of funding
Since most borrowers do not have large cash reserves on-hand for a down payment, there are other alternative sources for funding. Besides tapping into your own savings accounts, other resources may include friends, relatives, 401(k) plans, proceeds from stock sales, appraised assets, even a co-signer.
Many cities, looking to expand their communities, even offer their own down payment subsidy programs for cash-strapped buyers. It.s not uncommon to be gifted $5,000 to $10,000 without expectation of re-payment.
Loan-to-value ratio
A down payment is always expressed as a percent of the sales price and often referred to by lenders at the .loan-to-value ratio. or LTV. For instance, a $250,000 mortgage with an LTV of 80 percent would require 20 percent down or $50,000. Using a down payment calculator can help you see what influence a different down payment can have on your monthly mortgage.
Other down payment options
Some banks even offer zero-down percentage loans which require no down payment. These types of loans are typically directed at first-time buyers with good credit who are qualified to make the monthly payment but cannot come up with a down payment. However, without a down payment the buyer has no equity in the house and the lender is at greater risk, so the interest rate could be higher.
Another alternative to buying a home without committing to a down payment is to consider a lease option to buy. As a renter, you have an option anytime during the term of the lease, to buy the property at an agreed upon price from the owner. In some instances, the money you.ve put toward rent can be fully or partially applied toward the down payment.
Sellers can also assist buyers with their down payment. By offering a carry-back mortgage, sellers can sell their house faster in a competitive market and buyers can purchase a home they otherwise might not be able to afford.
Do you have questions about all your down payment options? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Monday, November 15, 2010
Sellers: Don't Let Emotions Rule
Provided By Realty Times
Written By Carla Hill
It can be easy for the selling experience to become clouded by emotion. A homeowner may have years of memories stored within the walls of a home. They look at a room, and instead of resale potential, they see a baby's first steps and early Christmas mornings. When the time comes to sell, however, the time has also come to sever emotional ties with a house.
Emotions can cloud your reasoning. And they can misguide you during a very expensive and important business transaction. Sellers sometimes overvalue their homes, adding in sentimental value on top of property value. They refuse offers that, while reasonable, don't add up to the value of their memories. Or they turn down a potential buyer, because they don't garden and won't "leave the rose bushes," or aren't the "type" of person they'd like living in their home.
For a smooth transition, hire an experienced real estate agent. Once you've turned yourself over to their guidance, you can then turn your focus onto the new phase of your life. And agent can help you establish a fair, and unbiased, asking price. They find the sellers. They show the house. And they help you sign on the dotted line. The middle man is extremely beneficial in separating from your emotions.
Your emotions may surface as soon as you list the house for sale, since many agents will suggest you remove many of your personal items from the house for staging. This is neither a personal attack on your decorating nor your memories. Staging is a wonderful way for homeowners to see the house as their future home, instead of seeing your house and your home.
Don't fret over lost memories; take pictures of your home and make a scrapbook. Channel your emotions into the joy of moving. And have fun imagining the new memories you'll make in your new place. This is not a time for mourning, instead it's a time for celebrating!
Are you ready to sell your home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Written By Carla Hill
It can be easy for the selling experience to become clouded by emotion. A homeowner may have years of memories stored within the walls of a home. They look at a room, and instead of resale potential, they see a baby's first steps and early Christmas mornings. When the time comes to sell, however, the time has also come to sever emotional ties with a house.
Emotions can cloud your reasoning. And they can misguide you during a very expensive and important business transaction. Sellers sometimes overvalue their homes, adding in sentimental value on top of property value. They refuse offers that, while reasonable, don't add up to the value of their memories. Or they turn down a potential buyer, because they don't garden and won't "leave the rose bushes," or aren't the "type" of person they'd like living in their home.
For a smooth transition, hire an experienced real estate agent. Once you've turned yourself over to their guidance, you can then turn your focus onto the new phase of your life. And agent can help you establish a fair, and unbiased, asking price. They find the sellers. They show the house. And they help you sign on the dotted line. The middle man is extremely beneficial in separating from your emotions.
Your emotions may surface as soon as you list the house for sale, since many agents will suggest you remove many of your personal items from the house for staging. This is neither a personal attack on your decorating nor your memories. Staging is a wonderful way for homeowners to see the house as their future home, instead of seeing your house and your home.
Don't fret over lost memories; take pictures of your home and make a scrapbook. Channel your emotions into the joy of moving. And have fun imagining the new memories you'll make in your new place. This is not a time for mourning, instead it's a time for celebrating!
Are you ready to sell your home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Friday, November 5, 2010
How are real estate agents paid, and what is a Realtor?
Provided By The Cap Times
Real estate agents work for a real estate broker, with all commissions from a sale passing through the broker.
The most common type of listing agreement between a seller and real estate agent gives the agent’s broker the right to exclusively market the home. In return for finding a buyer, the seller agrees to pay a commission to the broker.
Typically, this commission comes right off the top as a percentage of the sales price — historically 7 percent but always negotiable — and is shared between the listing broker and the broker who locates a buyer.
New agents might receive as little as 30 percent to 40 percent of the total commission received by the brokerage. From that amount, other fees may be deducted such as advertising, sign rentals or office expenses.
Top producing agents might receive 100 percent of the commission and pay the broker a desk fee. Everybody else falls somewhere in between.
When more than one broker is involved, the commission is split between the buyer and seller sides. It’s not always 50-50 and can vary based on the type of listing agreement signed by the seller.
In a buyer’s market, sellers might consider asking their broker to give a larger percentage to the buyer’s broker. In a seller’s market, the buyer’s broker might receive less since there are so many people looking for homes. But there is no set formula.
Sometimes a buyer will sign an agreement with a broker to find them a house. In those cases, the fee paid to the broker is most commonly paid by the seller.
A “Realtor” refers to a member of the National Association of Realtors, a trade group.
When agents become Realtors they must agree to conduct their business in a way that adheres to the NAR’s Code of Ethics. The code covers ethical requirements that deal with all aspects of the profession, from working with consumers and fellow agents to writing truthful advertising.
Local groups of agents who have banded together in order to share listings more effectively are called Multiple Listing Services or “MLS.” Most of those groups are affiliated with their state and national Realtor associations and typically require all MLS agents to become members of both of those groups.
Agents pay dues to their state and local Realtor organizations. They also pay fees to become and maintain members of their local MLS.
Need answers to realtor related questions? Go straight to the source and call us at 972-772-7000 or email us at rockwall@kw.com.
Real estate agents work for a real estate broker, with all commissions from a sale passing through the broker.
The most common type of listing agreement between a seller and real estate agent gives the agent’s broker the right to exclusively market the home. In return for finding a buyer, the seller agrees to pay a commission to the broker.
Typically, this commission comes right off the top as a percentage of the sales price — historically 7 percent but always negotiable — and is shared between the listing broker and the broker who locates a buyer.
New agents might receive as little as 30 percent to 40 percent of the total commission received by the brokerage. From that amount, other fees may be deducted such as advertising, sign rentals or office expenses.
Top producing agents might receive 100 percent of the commission and pay the broker a desk fee. Everybody else falls somewhere in between.
When more than one broker is involved, the commission is split between the buyer and seller sides. It’s not always 50-50 and can vary based on the type of listing agreement signed by the seller.
In a buyer’s market, sellers might consider asking their broker to give a larger percentage to the buyer’s broker. In a seller’s market, the buyer’s broker might receive less since there are so many people looking for homes. But there is no set formula.
Sometimes a buyer will sign an agreement with a broker to find them a house. In those cases, the fee paid to the broker is most commonly paid by the seller.
A “Realtor” refers to a member of the National Association of Realtors, a trade group.
When agents become Realtors they must agree to conduct their business in a way that adheres to the NAR’s Code of Ethics. The code covers ethical requirements that deal with all aspects of the profession, from working with consumers and fellow agents to writing truthful advertising.
Local groups of agents who have banded together in order to share listings more effectively are called Multiple Listing Services or “MLS.” Most of those groups are affiliated with their state and national Realtor associations and typically require all MLS agents to become members of both of those groups.
Agents pay dues to their state and local Realtor organizations. They also pay fees to become and maintain members of their local MLS.
Need answers to realtor related questions? Go straight to the source and call us at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, November 3, 2010
Top Ten Tips On Selling Your Home With Style
Provided By IndigoHomes
You only have one chance to make a good first impression, and when it comes to selling your home its presentation impacts on how quickly your home will sell and for how much.
Photos on Internet property sites must stand out from the crowd to encourage potential buyers to turn up to an inspection.
Cramped, dark rooms cluttered with furniture, kids’ toys or pet mess along with completely mismatched décor and furnishings just puts people off as it’s hard to see the potential a place might offer when there’s so much in the way.
Buying a home is a very emotional decision, so you want potential buyers to walk in and imagine themselves living there. It also needs to be memorable after the tenth house they inspect in a day (and only for the right reasons!)
So unless your home already looks like something out of Vogue Living, here are some simple tips you can follow to make your home photo and inspection ready.
Picture perfect
o Add space - Remove excess furniture to make rooms look bigger while still being functional.
o De-personalise - Put away any personal items, photos and knick-knacks.
o De-clutter - Don’t just clean, you need to clear all surfaces of household clutter. It’s better to have a few larger display pieces (like vases or a stack of books) rather than lots of little bits and pieces. When in doubt - remove it.
o Set up - If possible set up rooms as they would normally be used. If a bedroom is used as an office or storage area, it’s best to put a bed in there so people can get a better feel for the space. It’s always better to sell a house with furniture in it, as empty rooms can make a home look smaller and it’s harder for people to visualise the space.
Inspection day
o Street appeal - Make sure the front of the property is clean, tidy and welcoming - it’s the first thing your home will be judged on.
o Light up - Open up window coverings and blinds to let in as much natural light as possible and switch on lights and lamps (yes, even during the day).
o Storage sells - Don’t think you can fill your storage spaces with that clutter you cleared. People will open cupboards so you want them to be clean and tidy so the space seems bigger not smaller.
o No pets allowed - not everyone is pet friendly so it’s best to remove them at inspection time along with litter trays and other pet items.
o Set the mood - Appeal to the senses by using fresh cut flowers, candles or home scents (vanilla gives a ‘just baked’ smell, while verbena is fresh and uplifting).
o Finishing touches - Keep an extra set of clean fluffy towels and ironed pillowcases aside for a clean, crisp finish.
Style counsel
If you’re after some expert advice, consider engaging a professional stylist. They often work in two ways:
Do-it-yourself
The stylist evaluates your property with you and advises on changes to be made, inside and out, room-by-room. Many changes can be made on the spot and you’ll be left with a plan for implementing the rest.
Complete service
This could involve creating a whole design scheme, furniture rental, or just accessorising with linen, lighting and artwork.
"You can tell the homes where the owners have gone to a little extra effort. Professional advice on styling can also really pay off. Remember, your property is in a competition and it needs to stand out in the marketplace.” - Tim Douglas, Director of Place West real estate agency, Brisbane.
Looking to sell your home? Call us at 972-772-7000 or email us at rockwall@kw.com.
You only have one chance to make a good first impression, and when it comes to selling your home its presentation impacts on how quickly your home will sell and for how much.
Photos on Internet property sites must stand out from the crowd to encourage potential buyers to turn up to an inspection.
Cramped, dark rooms cluttered with furniture, kids’ toys or pet mess along with completely mismatched décor and furnishings just puts people off as it’s hard to see the potential a place might offer when there’s so much in the way.
Buying a home is a very emotional decision, so you want potential buyers to walk in and imagine themselves living there. It also needs to be memorable after the tenth house they inspect in a day (and only for the right reasons!)
So unless your home already looks like something out of Vogue Living, here are some simple tips you can follow to make your home photo and inspection ready.
Picture perfect
o Add space - Remove excess furniture to make rooms look bigger while still being functional.
o De-personalise - Put away any personal items, photos and knick-knacks.
o De-clutter - Don’t just clean, you need to clear all surfaces of household clutter. It’s better to have a few larger display pieces (like vases or a stack of books) rather than lots of little bits and pieces. When in doubt - remove it.
o Set up - If possible set up rooms as they would normally be used. If a bedroom is used as an office or storage area, it’s best to put a bed in there so people can get a better feel for the space. It’s always better to sell a house with furniture in it, as empty rooms can make a home look smaller and it’s harder for people to visualise the space.
Inspection day
o Street appeal - Make sure the front of the property is clean, tidy and welcoming - it’s the first thing your home will be judged on.
o Light up - Open up window coverings and blinds to let in as much natural light as possible and switch on lights and lamps (yes, even during the day).
o Storage sells - Don’t think you can fill your storage spaces with that clutter you cleared. People will open cupboards so you want them to be clean and tidy so the space seems bigger not smaller.
o No pets allowed - not everyone is pet friendly so it’s best to remove them at inspection time along with litter trays and other pet items.
o Set the mood - Appeal to the senses by using fresh cut flowers, candles or home scents (vanilla gives a ‘just baked’ smell, while verbena is fresh and uplifting).
o Finishing touches - Keep an extra set of clean fluffy towels and ironed pillowcases aside for a clean, crisp finish.
Style counsel
If you’re after some expert advice, consider engaging a professional stylist. They often work in two ways:
Do-it-yourself
The stylist evaluates your property with you and advises on changes to be made, inside and out, room-by-room. Many changes can be made on the spot and you’ll be left with a plan for implementing the rest.
Complete service
This could involve creating a whole design scheme, furniture rental, or just accessorising with linen, lighting and artwork.
"You can tell the homes where the owners have gone to a little extra effort. Professional advice on styling can also really pay off. Remember, your property is in a competition and it needs to stand out in the marketplace.” - Tim Douglas, Director of Place West real estate agency, Brisbane.
Looking to sell your home? Call us at 972-772-7000 or email us at rockwall@kw.com.
Monday, November 1, 2010
Why Buy a Home?
Provided By Yahoo!
The past few years of rocky real estate markets has left some people wondering, why buy a home? If you find that thought running through your mind consider these things.
A recent survey commissioned by the National Association of Home Builders found that 72 percent of its respondents opposed any effort to get rid of the homeowners' mortgage interest deduction. That's despite the fact that doing so could help ease the nation's budget deficit.
Gil Gross host of Real Estate Today Radio reported that, "The survey cut across partisan lines, and even across homeowner status. 76 percent of Republicans and 64 percent of Democrats oppose eliminating the deduction, as do 75 percent of owners and even 55 percent of renters. They all recognize the importance of homeownership to the nation's economy."
But why when you hear the horror stories of markets crashing, housing underwater and homeowners facing foreclosure, would you want to buy a home?
The first reason, we just addressed. When you buy a home there are tax advantages. Effectively, homeownership provides an excellent tax shelter. But there are more reasons to trade your rent payment for a mortgage. Buying a home for this tax advantage isn't how you should look at it. Rather, think of it this way. You need a place to live. Receiving a tax advantage for the place that you choose to live in, is a nice bonus.
When carefully used, a home equity loan (line of credit that allows you to borrow against your home) can be a better way to carry credit. That's because home equity lines can have lower interest rates and are also deductible whereas typical credit card interest is not.
Owning your own home gives you more freedom and the opportunity to create a living environment exactly how you want it. There's no consulting with landlords to see if you can do something to the home or who will pay for the change. Of course, that means when you buy a home you should consider what additional changes you plan to make, so that you can appropriately budget. Also, keep in mind that with homeownership come unexpected expenses for repairs and maintenance. While that may sound like a reason not to buy, it shouldn't be. Think about owning a car. There are maintenance issues and expenses but most people still like to own their own vehicle.
Homeownership provides a sense of stability and security. Instead of wondering when the landlord might decide to sell the home, you are in control of that decision. Additionally, homeownership provides immeasurable values of belonging to a social community. Also, as a homeowner, you'll have a greater influence on community affairs. Renters, being usually more transient, have less influence on policymakers.
What it comes down to is how long you plan on staying in a particular home and area and what you can afford. Owning your home weds you to a property which some people feel limits them. However, many others see a home as their life and the legacy they'll leave behind... a place where they raise children, enjoy company, experience life's ups and downs, and eventually pass on their home to loved ones.
If you are interested in buying a home give us a call at 972-772-7000 or email us at rockwall@kw.com.
The past few years of rocky real estate markets has left some people wondering, why buy a home? If you find that thought running through your mind consider these things.
A recent survey commissioned by the National Association of Home Builders found that 72 percent of its respondents opposed any effort to get rid of the homeowners' mortgage interest deduction. That's despite the fact that doing so could help ease the nation's budget deficit.
Gil Gross host of Real Estate Today Radio reported that, "The survey cut across partisan lines, and even across homeowner status. 76 percent of Republicans and 64 percent of Democrats oppose eliminating the deduction, as do 75 percent of owners and even 55 percent of renters. They all recognize the importance of homeownership to the nation's economy."
But why when you hear the horror stories of markets crashing, housing underwater and homeowners facing foreclosure, would you want to buy a home?
The first reason, we just addressed. When you buy a home there are tax advantages. Effectively, homeownership provides an excellent tax shelter. But there are more reasons to trade your rent payment for a mortgage. Buying a home for this tax advantage isn't how you should look at it. Rather, think of it this way. You need a place to live. Receiving a tax advantage for the place that you choose to live in, is a nice bonus.
When carefully used, a home equity loan (line of credit that allows you to borrow against your home) can be a better way to carry credit. That's because home equity lines can have lower interest rates and are also deductible whereas typical credit card interest is not.
Owning your own home gives you more freedom and the opportunity to create a living environment exactly how you want it. There's no consulting with landlords to see if you can do something to the home or who will pay for the change. Of course, that means when you buy a home you should consider what additional changes you plan to make, so that you can appropriately budget. Also, keep in mind that with homeownership come unexpected expenses for repairs and maintenance. While that may sound like a reason not to buy, it shouldn't be. Think about owning a car. There are maintenance issues and expenses but most people still like to own their own vehicle.
Homeownership provides a sense of stability and security. Instead of wondering when the landlord might decide to sell the home, you are in control of that decision. Additionally, homeownership provides immeasurable values of belonging to a social community. Also, as a homeowner, you'll have a greater influence on community affairs. Renters, being usually more transient, have less influence on policymakers.
What it comes down to is how long you plan on staying in a particular home and area and what you can afford. Owning your home weds you to a property which some people feel limits them. However, many others see a home as their life and the legacy they'll leave behind... a place where they raise children, enjoy company, experience life's ups and downs, and eventually pass on their home to loved ones.
If you are interested in buying a home give us a call at 972-772-7000 or email us at rockwall@kw.com.
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