Provided By Realty Times
Deciding whether or not to sell your house can be a trying time. Many questions pervade your mind. "Is now the best time to make a move?" "Will I make money from this sale?" Will a move disrupt my family's routine?" There are numerous factors that come into play when making this decision. Let's look at just a few to consider.
First and foremost, can you afford to make a move? In many areas of the country, home values fell dramatically during the recession. Homeowners across the nation now find themselves owing more than their home is worth. If you find yourself in this predicament, it is probably not the best time for you to move. If you are able to afford your payments and have no fear of defaulting, then it will be best to stick it out for a while longer, waiting for your home to regain some of its lost value.
Along those same lines is the topic of job stability. Do you have money saved for downpayments and closing costs, as well as an 8 month emergency fund should you get laid off?
Next, consider the impact the move will have on your family. Do you have children? Moving during the middle of a semester can be difficult for children. Will you be able to move and stay in the same school district? If not, they will be coming into a new school in the middle of activities, after bonds and friendships have been established. Timing is everything when it comes to moving with children.
Additionally, research has shown that having strong social relationships can lengthen your lifespan. Consider this strongly before you move away from family and friends. Or consider it as motivation for moving closer if you live far away!
What if you need to move for your health. Warmer climates, less humidity, and even a change of settings can be a boost to some people's health. Some seniors find cold winters too hard on their older bodies. A move for health is always a good decision, since without our health we have nothing.
The bottom line is this. Moving means changing routines, hobbies, and even friends. Be sure to evaluate your decision carefully, weighing all of your options, before jumping into a life changing decision.
Do you have questions about selling your home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Showing posts with label real estate. Show all posts
Showing posts with label real estate. Show all posts
Friday, December 31, 2010
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.
Monday, October 4, 2010
4 Mortgages That Require Little Money Down
Written By Holden Lewis
Source: http://www.bankrate.com/
Provided By Shelley Dudley
Homebuyers with little money for a down payment are finding more home loans available for a low down payment or even no down payment.
These mortgages are becoming more commonplace even as the country recovers from a housing bust made worse by the popularity of low down-payment mortgages during the housing boom.
The Federal Housing Administration insures loans with small down payments. And private mortgage insurers have lowered their down payment requirements.
It's even possible to get a mortgage today with no money down. The nation's biggest credit union offers "zero-down" mortgages. The Veterans Administration and the Department of Agriculture guarantee home loans with no down payments.
Following are a few options for borrowers seeking low down-payment and zero down-payment home mortgages:
No down payment: VA loan
Veterans Affairs (formerly the Veterans Administration) guarantees no-down purchase mortgages for qualified veterans. Private lenders originate VA loans, which the VA guarantees. There is no mortgage insurance. The borrower pays a funding fee, which can be rolled into the loan amount.
The VA funding fee varies, depending on whether the veteran served in the regular military or in the Reserves or National Guard, and whether it's the veteran's first VA loan or a subsequent one. The funding fee can be as low as 2.15 percent or as high as 3.3 percent.
No down payment: Navy Federal
Navy Federal Credit Union, the nation's largest in assets and membership, offers 100 percent financing (up to $650,000) to qualified members for buying primary homes. Credit union eligibility is restricted to members of the military, some civilian employees of the military and U.S. Department of Defense, and family members.
Navy Federal resumed zero-down financing this year after a hiatus of a couple of years. Barbara Sheehan, Navy Federal's assistant vice president for mortgage products, says when members of the military are transferred, they sometimes own houses whose values have fallen, wiping out equity.
"Some people had to take losses to sell their houses, so to have to start over and save the money again for a down payment is really difficult," she says.
The credit union's zero-down program is similar to the VA's. One difference is cost: Navy Federal's funding fee of 1.75 percent is less than the VA's funding fees.
No down payment: Department of Agriculture
The Department of Agriculture's Rural Development mortgage guarantee program is so popular that it ran out of money this spring. Congress is expected to cough up more in time for summer homebuying season.
"That's the cat's meow, my favorite loan program," says Jeff Tufford, mortgage consultant for Monarch Mortgage Consulting, in Grand Blanc, Mich.
Some borrowers are surprised to find that Rural Development loans aren't confined to farmland.
"It's not all rural," Tufford says.
Grand Blanc is a suburb of Flint. There are nearby towns, such as Fenton and Davison, where "no one would walk there and say this is a rural area, but the USDA can do loans there."
The USDA has maps on its website that highlight eligible areas. In addition to geographical limits, the USDA program has restrictions on household income, and it's intended for first-time buyers, although there are exceptions.
The USDA mortgage comes from a bank, and there is no mortgage insurance. Instead, the USDA levies a 2 percent guarantee fee, which can be rolled into the loan amount.
Low down payment: Federal Housing Administration
The zero-down options listed above are restricted to limited groups of buyers. With a minimum down payment of 3.5 percent, the Federal Housing Administration is the low-down option that's available to the most people.
Today, about 30 percent of all home loan borrowers get FHA-insured loans, up from 3 percent during the housing boom. The FHA gained market share after many other low-down-payment options (such as piggyback loans) evaporated in the housing bust.
Losses to the insurance fund compelled the FHA to hike rates. The FHA charges an upfront premium of 2.25 percent of the mortgage amount. On a loan with the minimum down payment, there's an annual premium of 0.55 percent of the mortgage amount, or $550 a year for each $100,000 borrowed.
Another low-down-payment option
There is one more option for borrowers in the "low-down-payment" camp: A standard home loan with private mortgage insurance.
A number of companies offer private mortgage insurance for home loans with down payments of less than 20 percent. PMI is not the same thing as FHA insurance, a form of public mortgage insurance.
Typically, monthly private mortgage insurance costs more than FHA insurance for borrowers who put down 5 percent. However, PMI costs less than FHA for loans with down payments of 10 percent or more.
Private mortgage insurance has another edge over FHA: Under certain conditions, you can cancel PMI earlier -- as soon as two years after you get the loan, compared to a wait of at least five years to cancel FHA insurance.
PMI has become easier to get. From the start of the housing bust until just recently, mortgage insurers slapped a "declining market" label on the worst-hit housing markets and required minimum down payments of 10 percent or more, instead of the traditional minimum of 5 percent.
Now, at least some of the insurers have relaxed the requirements, even in hard-hit states such as Arizona, California, Florida, Nevada and Michigan.
"We'll do 5 percent down across the country," says Chris Antonello, senior vice president of marketing for Genworth, a mortgage insurer based in Raleigh, N.C.
Do you have real estate questions? Give the professionals a call at 972-772-7000 or email us at rockwall@kw.com.
Source: http://www.bankrate.com/
Provided By Shelley Dudley
Homebuyers with little money for a down payment are finding more home loans available for a low down payment or even no down payment.
These mortgages are becoming more commonplace even as the country recovers from a housing bust made worse by the popularity of low down-payment mortgages during the housing boom.
The Federal Housing Administration insures loans with small down payments. And private mortgage insurers have lowered their down payment requirements.
It's even possible to get a mortgage today with no money down. The nation's biggest credit union offers "zero-down" mortgages. The Veterans Administration and the Department of Agriculture guarantee home loans with no down payments.
Following are a few options for borrowers seeking low down-payment and zero down-payment home mortgages:
No down payment: VA loan
Veterans Affairs (formerly the Veterans Administration) guarantees no-down purchase mortgages for qualified veterans. Private lenders originate VA loans, which the VA guarantees. There is no mortgage insurance. The borrower pays a funding fee, which can be rolled into the loan amount.
The VA funding fee varies, depending on whether the veteran served in the regular military or in the Reserves or National Guard, and whether it's the veteran's first VA loan or a subsequent one. The funding fee can be as low as 2.15 percent or as high as 3.3 percent.
No down payment: Navy Federal
Navy Federal Credit Union, the nation's largest in assets and membership, offers 100 percent financing (up to $650,000) to qualified members for buying primary homes. Credit union eligibility is restricted to members of the military, some civilian employees of the military and U.S. Department of Defense, and family members.
Navy Federal resumed zero-down financing this year after a hiatus of a couple of years. Barbara Sheehan, Navy Federal's assistant vice president for mortgage products, says when members of the military are transferred, they sometimes own houses whose values have fallen, wiping out equity.
"Some people had to take losses to sell their houses, so to have to start over and save the money again for a down payment is really difficult," she says.
The credit union's zero-down program is similar to the VA's. One difference is cost: Navy Federal's funding fee of 1.75 percent is less than the VA's funding fees.
No down payment: Department of Agriculture
The Department of Agriculture's Rural Development mortgage guarantee program is so popular that it ran out of money this spring. Congress is expected to cough up more in time for summer homebuying season.
"That's the cat's meow, my favorite loan program," says Jeff Tufford, mortgage consultant for Monarch Mortgage Consulting, in Grand Blanc, Mich.
Some borrowers are surprised to find that Rural Development loans aren't confined to farmland.
"It's not all rural," Tufford says.
Grand Blanc is a suburb of Flint. There are nearby towns, such as Fenton and Davison, where "no one would walk there and say this is a rural area, but the USDA can do loans there."
The USDA has maps on its website that highlight eligible areas. In addition to geographical limits, the USDA program has restrictions on household income, and it's intended for first-time buyers, although there are exceptions.
The USDA mortgage comes from a bank, and there is no mortgage insurance. Instead, the USDA levies a 2 percent guarantee fee, which can be rolled into the loan amount.
Low down payment: Federal Housing Administration
The zero-down options listed above are restricted to limited groups of buyers. With a minimum down payment of 3.5 percent, the Federal Housing Administration is the low-down option that's available to the most people.
Today, about 30 percent of all home loan borrowers get FHA-insured loans, up from 3 percent during the housing boom. The FHA gained market share after many other low-down-payment options (such as piggyback loans) evaporated in the housing bust.
Losses to the insurance fund compelled the FHA to hike rates. The FHA charges an upfront premium of 2.25 percent of the mortgage amount. On a loan with the minimum down payment, there's an annual premium of 0.55 percent of the mortgage amount, or $550 a year for each $100,000 borrowed.
Another low-down-payment option
There is one more option for borrowers in the "low-down-payment" camp: A standard home loan with private mortgage insurance.
A number of companies offer private mortgage insurance for home loans with down payments of less than 20 percent. PMI is not the same thing as FHA insurance, a form of public mortgage insurance.
Typically, monthly private mortgage insurance costs more than FHA insurance for borrowers who put down 5 percent. However, PMI costs less than FHA for loans with down payments of 10 percent or more.
Private mortgage insurance has another edge over FHA: Under certain conditions, you can cancel PMI earlier -- as soon as two years after you get the loan, compared to a wait of at least five years to cancel FHA insurance.
PMI has become easier to get. From the start of the housing bust until just recently, mortgage insurers slapped a "declining market" label on the worst-hit housing markets and required minimum down payments of 10 percent or more, instead of the traditional minimum of 5 percent.
Now, at least some of the insurers have relaxed the requirements, even in hard-hit states such as Arizona, California, Florida, Nevada and Michigan.
"We'll do 5 percent down across the country," says Chris Antonello, senior vice president of marketing for Genworth, a mortgage insurer based in Raleigh, N.C.
Do you have real estate questions? Give the professionals a call at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, July 14, 2010
Bathroom Design Trends: Clean and Green
Provided By Realty Times
Written By Jim Adair
Tiles that clean themselves, faucets with no levers, residential urinals and automatic humidity sensing fans – these are some of the design innovations that have started showing up in the bathrooms of upper-end homes during the last few years. Combined with a trend to minimal Asian design, bathroom designs these days can best be designed as clean and green.
Active Clean Air and Antibacterial Ceramic Tiles were introduced to Canada last year by Savoia Canada, a subsidiary of the Italian GranitiFiandre Group. The company says the tiles use titanium dioxide to "clean the air of polluting organic substances when either sunlight or artificial UVA rays shine on the tiles. This process transforms harmful organic and inorganic substances into compounds that are harmless to humans." They are available in about 40 different colours and various sizes.
A set of faucets and showers from American Standard has no levers or faucets, just four electronic control icons on the top surface of the tub filler or the bottom of the shower column. They are operated by regular C type batteries.
Kohler Canada offers waterless residential urinals and toilets with built-in bidet functions including a control for water temperature and flow, a deodorizer function, a heated seat and warm air drying at three speeds.
If you can never remember to turn on the bathroom fan during or after a shower, Broan-Nutone offers Humidity Sensing Fans, which automatically turn on when a rapid rise in humidity is detected in the room.
Waterfall faucets and shower towers that include everything from steam options to waterproof built-in speakers are other popular bathroom features. From an esthetic point of view, Japanese influences are being seen in the clean lines and open spaces in new bathrooms. Hotel-like "floating" vanities and wall-mounted toilets make small rooms look larger.
An American Standard survey in 2008 showed that 88 per cent of people were "doing a lot of things inside their bathrooms besides the obvious." More than one-third read their mail there, while 43 per cent used it to get dressed, 19 per cent listened to music on their radio or I-Pod, 15 per cent talked on the phone and three per cent watched TV.
Most people spent about 30 minutes in the bathroom a day, but 25 per cent of people reported spending at least an hour. Women spent more time there than men, and women with children spent more time in the shower than women without kids.
The biggest bathroom trends are in the "green" categories – conserving water and energy. In Ontario, the provincial government recently announced plans to mandate water-saving toilets. It says Ontarians currently use about 260 litres of water a day, nearly twice as much as people in Germany, the U.K. and the Netherlands. American Standard says Canadians use the second highest amount of water in the world, with 35 per cent of the water used for the shower and the tub, and 30 per cent used by flushing the toilet.
Many municipalities offer incentives to residents to switch from 13-litre toilets to energy efficient six-litre models. For example, Toronto residents can get $60 or $75 for making the move. Kohler Canada offers an interactive map that shows where you can get rebates in municipalities across the country.
In addition to dual-flush and low-flow toilets, water is being conserved in the bathroom with low-flow faucets and showerheads. Changing all three in a bathroom costs as little as $600, but provides long-term financial benefits.
Some other "green" trends include using cleaning materials that are ammonia-free (such as water and vinegar), and installing energy-efficient lighting. Kohler is using recycled and reclaimed materials in some of its cast-iron products.
What’s coming up in future bathroom trends? While white still rules as the dominant fixture colour, other more vibrant colours may be making a comeback. In terms of bathroom design, an aging population is prompting more consideration of accessible features, such as grab bars and curbless and level-access showers.
Are you interested in buying or learning more about "green" homes. Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Written By Jim Adair
Tiles that clean themselves, faucets with no levers, residential urinals and automatic humidity sensing fans – these are some of the design innovations that have started showing up in the bathrooms of upper-end homes during the last few years. Combined with a trend to minimal Asian design, bathroom designs these days can best be designed as clean and green.
Active Clean Air and Antibacterial Ceramic Tiles were introduced to Canada last year by Savoia Canada, a subsidiary of the Italian GranitiFiandre Group. The company says the tiles use titanium dioxide to "clean the air of polluting organic substances when either sunlight or artificial UVA rays shine on the tiles. This process transforms harmful organic and inorganic substances into compounds that are harmless to humans." They are available in about 40 different colours and various sizes.
A set of faucets and showers from American Standard has no levers or faucets, just four electronic control icons on the top surface of the tub filler or the bottom of the shower column. They are operated by regular C type batteries.
Kohler Canada offers waterless residential urinals and toilets with built-in bidet functions including a control for water temperature and flow, a deodorizer function, a heated seat and warm air drying at three speeds.
If you can never remember to turn on the bathroom fan during or after a shower, Broan-Nutone offers Humidity Sensing Fans, which automatically turn on when a rapid rise in humidity is detected in the room.
Waterfall faucets and shower towers that include everything from steam options to waterproof built-in speakers are other popular bathroom features. From an esthetic point of view, Japanese influences are being seen in the clean lines and open spaces in new bathrooms. Hotel-like "floating" vanities and wall-mounted toilets make small rooms look larger.
An American Standard survey in 2008 showed that 88 per cent of people were "doing a lot of things inside their bathrooms besides the obvious." More than one-third read their mail there, while 43 per cent used it to get dressed, 19 per cent listened to music on their radio or I-Pod, 15 per cent talked on the phone and three per cent watched TV.
Most people spent about 30 minutes in the bathroom a day, but 25 per cent of people reported spending at least an hour. Women spent more time there than men, and women with children spent more time in the shower than women without kids.
The biggest bathroom trends are in the "green" categories – conserving water and energy. In Ontario, the provincial government recently announced plans to mandate water-saving toilets. It says Ontarians currently use about 260 litres of water a day, nearly twice as much as people in Germany, the U.K. and the Netherlands. American Standard says Canadians use the second highest amount of water in the world, with 35 per cent of the water used for the shower and the tub, and 30 per cent used by flushing the toilet.
Many municipalities offer incentives to residents to switch from 13-litre toilets to energy efficient six-litre models. For example, Toronto residents can get $60 or $75 for making the move. Kohler Canada offers an interactive map that shows where you can get rebates in municipalities across the country.
In addition to dual-flush and low-flow toilets, water is being conserved in the bathroom with low-flow faucets and showerheads. Changing all three in a bathroom costs as little as $600, but provides long-term financial benefits.
Some other "green" trends include using cleaning materials that are ammonia-free (such as water and vinegar), and installing energy-efficient lighting. Kohler is using recycled and reclaimed materials in some of its cast-iron products.
What’s coming up in future bathroom trends? While white still rules as the dominant fixture colour, other more vibrant colours may be making a comeback. In terms of bathroom design, an aging population is prompting more consideration of accessible features, such as grab bars and curbless and level-access showers.
Are you interested in buying or learning more about "green" homes. Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, June 23, 2010
Senate OKs New Tax Credit Closing Deadline
Published By Inman News
Provided By RECON
CLARIFICATION: While the Senate has amended HR 4213, the "American Jobs and Closing Tax Loopholes Act of 2010," to extend the closing deadline for the tax credit, it has not held a vote on the amended bill itself. Senate Democrats have reportedly trimmed $60 billion in spending from the bill in hopes of passing it this week. The House and Senate must resolve differences between previous versions of the bill passed in both chambers before it can become law.
The Senate has amended a bill to give homebuyers who were under contract on a home purchase by April 30 an additional three months to close the deal and claim the federal homebuyer tax credit.
Extending the deadline for closing from June 30 to Sept. 30 would allow lenders more time to clear a backlog of 180,000 homebuyers nationwide, said amendment sponsor Sen. Harry Reid, D-Nev.
The amendment to HR 4213, the "American Jobs and Closing Tax Loopholes Act of 2010" -- which primarily extends unemployment insurance benefits -- was approved in a 60-37 vote Wednesday. The vote on the amendment was mostly along party lines, with only four Republicans in favor and one Democrat opposed. The Senate has not yet voted on the amended bill itself.
"While I am disappointed that more Republicans did not support this common-sense measure to strengthen the economy and reduce the deficit, I am committed to ensuring that more Nevadans and Americans can become homeowners and that this amendment becomes law," Reid said in a statement.
The House passed an earlier version of the bill in December, which the Senate amended and approved in March. The House and Senate must resolve differences between versions of the bill before it becomes law.
The National Association of Realtors supports the amendment, saying Realtors have reported that as many as one-third of qualified applicants have been told by lenders that their loans will not close before June 30 because of the sheer volume of loan applications in the pipeline.
The amendment does not extend the deadline for homebuyers to qualify for the tax credit, NAR said in urging lawmakers to approve it, but simply extends the deadline for closing transactions already in contract.
"Since these applications were already in the pipeline and figured into the program's cost, the extension of the closing deadline should not incur any further government costs," NAR President Vicki Cox Golder said in a statement.
There has been some speculation that some homebuyers will attempt to submit fraudulent claims for the tax credit by backdating documents showing they were under contract by April 30, and that extending the deadline for closing would expose the government to more fraudulent claims.
Would you like more information regarding the new tax credit closing deadline? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Provided By RECON
CLARIFICATION: While the Senate has amended HR 4213, the "American Jobs and Closing Tax Loopholes Act of 2010," to extend the closing deadline for the tax credit, it has not held a vote on the amended bill itself. Senate Democrats have reportedly trimmed $60 billion in spending from the bill in hopes of passing it this week. The House and Senate must resolve differences between previous versions of the bill passed in both chambers before it can become law.
The Senate has amended a bill to give homebuyers who were under contract on a home purchase by April 30 an additional three months to close the deal and claim the federal homebuyer tax credit.
Extending the deadline for closing from June 30 to Sept. 30 would allow lenders more time to clear a backlog of 180,000 homebuyers nationwide, said amendment sponsor Sen. Harry Reid, D-Nev.
The amendment to HR 4213, the "American Jobs and Closing Tax Loopholes Act of 2010" -- which primarily extends unemployment insurance benefits -- was approved in a 60-37 vote Wednesday. The vote on the amendment was mostly along party lines, with only four Republicans in favor and one Democrat opposed. The Senate has not yet voted on the amended bill itself.
"While I am disappointed that more Republicans did not support this common-sense measure to strengthen the economy and reduce the deficit, I am committed to ensuring that more Nevadans and Americans can become homeowners and that this amendment becomes law," Reid said in a statement.
The House passed an earlier version of the bill in December, which the Senate amended and approved in March. The House and Senate must resolve differences between versions of the bill before it becomes law.
The National Association of Realtors supports the amendment, saying Realtors have reported that as many as one-third of qualified applicants have been told by lenders that their loans will not close before June 30 because of the sheer volume of loan applications in the pipeline.
The amendment does not extend the deadline for homebuyers to qualify for the tax credit, NAR said in urging lawmakers to approve it, but simply extends the deadline for closing transactions already in contract.
"Since these applications were already in the pipeline and figured into the program's cost, the extension of the closing deadline should not incur any further government costs," NAR President Vicki Cox Golder said in a statement.
There has been some speculation that some homebuyers will attempt to submit fraudulent claims for the tax credit by backdating documents showing they were under contract by April 30, and that extending the deadline for closing would expose the government to more fraudulent claims.
Would you like more information regarding the new tax credit closing deadline? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Monday, June 21, 2010
Ranked 3rd out of the 10 Fastest Growing Counties in America
Published By CNN Money
Provided By Blair Baldwin
Rockwall County, Texas
Population: 81,391
Growth rate since April 2000: 88.9%
After averaging more than 7.5% population growth during the first eight years of the decade, the Dallas
suburb saw its growth rate drop to 4.6% in the 12 months ended July 1, 2009. Despite that, it held on to its title as the third-fastest grower in the nation during the 2000s.
Texas real estate never bubbled as in some Sun Belt states. There was always lots of inexpensive land available suitable for development and few regulatory burdens to overcome to put in new housing. That meant supply easily grew to keep up with strong demand and prices remained very stable.
The nation's economic woes have affected Rockwall County little, according to Keller Williams real estate agent Blair Baldwin. Growth has slowed, she said, but not greatly, and a new harbor facility on Lake Ray Hubbard, with many shops, restaurants and community facilities, has helped attract buyers.Few foreclosure problems have surfaced; only 29 Rockwall County residents had their homes repossessed in May, one for every 425 households. Still, that was the third highest rate in the state.
Do you want to live in the 3rd fastest growing county in America? Give us a call at 972-772-7000 or email us at rockwall@kw.com!
Provided By Blair Baldwin
Rockwall County, Texas
Population: 81,391
Growth rate since April 2000: 88.9%
After averaging more than 7.5% population growth during the first eight years of the decade, the Dallas
suburb saw its growth rate drop to 4.6% in the 12 months ended July 1, 2009. Despite that, it held on to its title as the third-fastest grower in the nation during the 2000s.
Texas real estate never bubbled as in some Sun Belt states. There was always lots of inexpensive land available suitable for development and few regulatory burdens to overcome to put in new housing. That meant supply easily grew to keep up with strong demand and prices remained very stable.
The nation's economic woes have affected Rockwall County little, according to Keller Williams real estate agent Blair Baldwin. Growth has slowed, she said, but not greatly, and a new harbor facility on Lake Ray Hubbard, with many shops, restaurants and community facilities, has helped attract buyers.Few foreclosure problems have surfaced; only 29 Rockwall County residents had their homes repossessed in May, one for every 425 households. Still, that was the third highest rate in the state.
Do you want to live in the 3rd fastest growing county in America? Give us a call at 972-772-7000 or email us at rockwall@kw.com!
Monday, September 7, 2009
Home Sales Tick Up
Last week, The National Association of REALTORS® reported that existing home sales – which include single-family, townhomes, condominiums and co-ops – increased 3.6 percent to a seasonally adjusted annual rate of 4.89 million units in June.
This is third consecutive month that NAR has reported an increase in existing home sales. Lawrence Yun, NAR’s chief economist, added that “We expect a gradual uptrend in sales to continue due to tax-credit incentives and historically high affordability conditions.”
*Source: http://www.realtor.org/RMODaily.nsf/pages/News2009072301?OpenDocument
This is third consecutive month that NAR has reported an increase in existing home sales. Lawrence Yun, NAR’s chief economist, added that “We expect a gradual uptrend in sales to continue due to tax-credit incentives and historically high affordability conditions.”
*Source: http://www.realtor.org/RMODaily.nsf/pages/News2009072301?OpenDocument
Friday, June 12, 2009
Forecasting the Floor
While experts run the gamut in their outlook for real estate, sound business
practices supercede futile attempts to time the market.
Are we there yet?
With the summer vacation season in full swing, most of us in real estate are
asking our own version of this signature refrain of the family road trip.
In our case, it’s a question of, ‘Have we hit the floor?’
When can we start looking forward to shrinking inventories, stable prices and an
upward trend in the number of transactions?
While much of the media is still charging ahead with dire forecasts for real estate,
a recent spate of experts are claiming that a housing-market recovery is imminent.
Even though this is the news that we’ve been waiting to hear, we need to take it
with a grain of salt. As always, the real story is much more complicated and lies
somewhere within the spectrum of the doom and gloom and the upbeat projections.
Many of you have recently asked me for my thoughts on a recent Wall Street
Journal commentary entitled, “The Housing Crisis is Over” by Cyril Moulle-Berteaux,
managing partner of Traxis Partners LP, a hedge fund firm based in New York. When I
read the claim in the article that, “It is very likely that April 2008 will mark the bottom of
the U.S. housing market. Yes, the housing market is bottoming right now,” I suspected
that there might be a need to look beneath the surface of his claims.
Noting that new home sales are down 63 percent and housing starts have fallen by
more than 50 percent from their July 2005 peak; and that housing starts in 2008 will hit
their lowest level ever, Moulle-Berteaux emphasized that the same factor that sparked the
housing decline is soon to reverse it: affordability.
He explained that “by 2005 and 2006, the average monthly income required to
service a conforming mortgage on the average home purchased had reached 25 percent.
For first-time homebuyers that figure had climbed to 37 percent.”
But since then, according to Moulle-Berteaux, “home prices have fallen 10
percent to 15 percent, while incomes have kept growing (albeit more slowly recently) and
interest rates have come down 70 basis points from their highs.” Moulle-Berteaux’s
conclusion: “… homes on average are back to being as affordable as during the best of
times in the 1990s – down to 19 percent of income for the average home buyer and 31
percent of income for the first-time home buyer.”
Affordability in March 2008, is actually at 19 percent, back to where it was in
early 2004, but one of the key factors affecting affordability in the current market is low
interest rates. If inflation increases, in the near future, interest rates could likely go up,
which could counter the current direction in affordability.
Another factor that Moulle-Berteaux points to as a sign of recovery is the recent
decline in new home inventories – from a high of 598,000 in July 2006, to 482,000 at the
end of March 2008. Conceding that the current new- home inventory is still at a 25-year
high, and equivalent to an 11- month supply, he argues that current levels are similar to
those seen at the end of previous housing market downturns in 1974, 1982 and 1991,
which in all three instances were followed by a slowing in home-price declines within the
next six months. As new home construction begins to undershoot new home sales, which
Moulle-Berteaux anticipates is soon to occur at a rate of 50,000 to 100,000 annually, he
contends that inventories will drop to 400,000 – or a seven month’s supply – by the end
of 2008.
While he makes a seemingly compelling argument, we should be careful not to
accept such analyses at face value. Moulle-Berteaux does not always paint the entire
picture and omits critical informa tion, such as the fact that existing home inventories –
which account for a far greater portion of the housing market – are at their highest levels
since September 1981.
That being said, Moulle-Berteaux is clearly not alone in his assertions that the
housing market is showing signs of a rebound. Among those noting positive trends is
Professor Karl Case of Wellesley College in Wellesley, Mass. Case looked at the past
three housing downturns in 1991, 1982 and 1975, and noticed that the market started to
clear when housing starts dropped below the 1 million mark – as they did in March of
2008.
At the same time, the National Association of REALTORS® sees signs of
recovery for reasons that include:
· Fannie Mae and Freddie Mac have announced plans to increase funds available
for home loans.
· The use of FHA loans is on the rise.
· Pending home sales are on the rise in areas where affordability has increased.
In a further effort to stimulate the housing market, Fannie Mae announced that
starting June 1, 2008, it will accept down payments as low as 3 percent for single-family,
primary residences on loans it purchases.
But despite its initiatives to jumpstart real estate, Fannie Mae is not anticipating a
housing recovery to take hold until 2010. Addressing business journalists this Spring,
Daniel Mudd, president and chief executive of Fannie May said, “Forecasting the bottom
of the housing slump is a tricky business, with the many conflicting predictions by
economists as proof.” We couldn’t agree more.
Clearly, the housing market is a complicated business that does not rise and fall
based on one or two factors. And even though real estate is cyclical, we need to avoid the
expectation that prescribed patterns or trends are necessarily at play. The current
downturn is quite different from the housing recessions of 1991, 1982 and 1975 – due
primarily to the tightening of the credit markets following the fallout of the sub-prime
loan market, as well as the historically high rates of foreclosures. A striking similarity,
however, between the current housing market and previous downturns in the housing
cycle is the dramatic increase in oil prices.
It’s perfectly understandable to want to find the definitive forecast for residential
real estate and to seek a return to the heydays of housing, but we have little to gain in
latching on to any particular forecast or trying to time the market. We have everything to
gain, however, by managing expenses in order to survive, doing whatever it takes to
generate the leads that we need to thrive, seizing opportunities to build our share of the
current market, and emphasizing to clients who are trying to sort through many
conflicting messages that real estate is essentially a local business.
What’s happening within your local markets is all that’s relevant.
practices supercede futile attempts to time the market.
Are we there yet?
With the summer vacation season in full swing, most of us in real estate are
asking our own version of this signature refrain of the family road trip.
In our case, it’s a question of, ‘Have we hit the floor?’
When can we start looking forward to shrinking inventories, stable prices and an
upward trend in the number of transactions?
While much of the media is still charging ahead with dire forecasts for real estate,
a recent spate of experts are claiming that a housing-market recovery is imminent.
Even though this is the news that we’ve been waiting to hear, we need to take it
with a grain of salt. As always, the real story is much more complicated and lies
somewhere within the spectrum of the doom and gloom and the upbeat projections.
Many of you have recently asked me for my thoughts on a recent Wall Street
Journal commentary entitled, “The Housing Crisis is Over” by Cyril Moulle-Berteaux,
managing partner of Traxis Partners LP, a hedge fund firm based in New York. When I
read the claim in the article that, “It is very likely that April 2008 will mark the bottom of
the U.S. housing market. Yes, the housing market is bottoming right now,” I suspected
that there might be a need to look beneath the surface of his claims.
Noting that new home sales are down 63 percent and housing starts have fallen by
more than 50 percent from their July 2005 peak; and that housing starts in 2008 will hit
their lowest level ever, Moulle-Berteaux emphasized that the same factor that sparked the
housing decline is soon to reverse it: affordability.
He explained that “by 2005 and 2006, the average monthly income required to
service a conforming mortgage on the average home purchased had reached 25 percent.
For first-time homebuyers that figure had climbed to 37 percent.”
But since then, according to Moulle-Berteaux, “home prices have fallen 10
percent to 15 percent, while incomes have kept growing (albeit more slowly recently) and
interest rates have come down 70 basis points from their highs.” Moulle-Berteaux’s
conclusion: “… homes on average are back to being as affordable as during the best of
times in the 1990s – down to 19 percent of income for the average home buyer and 31
percent of income for the first-time home buyer.”
Affordability in March 2008, is actually at 19 percent, back to where it was in
early 2004, but one of the key factors affecting affordability in the current market is low
interest rates. If inflation increases, in the near future, interest rates could likely go up,
which could counter the current direction in affordability.
Another factor that Moulle-Berteaux points to as a sign of recovery is the recent
decline in new home inventories – from a high of 598,000 in July 2006, to 482,000 at the
end of March 2008. Conceding that the current new- home inventory is still at a 25-year
high, and equivalent to an 11- month supply, he argues that current levels are similar to
those seen at the end of previous housing market downturns in 1974, 1982 and 1991,
which in all three instances were followed by a slowing in home-price declines within the
next six months. As new home construction begins to undershoot new home sales, which
Moulle-Berteaux anticipates is soon to occur at a rate of 50,000 to 100,000 annually, he
contends that inventories will drop to 400,000 – or a seven month’s supply – by the end
of 2008.
While he makes a seemingly compelling argument, we should be careful not to
accept such analyses at face value. Moulle-Berteaux does not always paint the entire
picture and omits critical informa tion, such as the fact that existing home inventories –
which account for a far greater portion of the housing market – are at their highest levels
since September 1981.
That being said, Moulle-Berteaux is clearly not alone in his assertions that the
housing market is showing signs of a rebound. Among those noting positive trends is
Professor Karl Case of Wellesley College in Wellesley, Mass. Case looked at the past
three housing downturns in 1991, 1982 and 1975, and noticed that the market started to
clear when housing starts dropped below the 1 million mark – as they did in March of
2008.
At the same time, the National Association of REALTORS® sees signs of
recovery for reasons that include:
· Fannie Mae and Freddie Mac have announced plans to increase funds available
for home loans.
· The use of FHA loans is on the rise.
· Pending home sales are on the rise in areas where affordability has increased.
In a further effort to stimulate the housing market, Fannie Mae announced that
starting June 1, 2008, it will accept down payments as low as 3 percent for single-family,
primary residences on loans it purchases.
But despite its initiatives to jumpstart real estate, Fannie Mae is not anticipating a
housing recovery to take hold until 2010. Addressing business journalists this Spring,
Daniel Mudd, president and chief executive of Fannie May said, “Forecasting the bottom
of the housing slump is a tricky business, with the many conflicting predictions by
economists as proof.” We couldn’t agree more.
Clearly, the housing market is a complicated business that does not rise and fall
based on one or two factors. And even though real estate is cyclical, we need to avoid the
expectation that prescribed patterns or trends are necessarily at play. The current
downturn is quite different from the housing recessions of 1991, 1982 and 1975 – due
primarily to the tightening of the credit markets following the fallout of the sub-prime
loan market, as well as the historically high rates of foreclosures. A striking similarity,
however, between the current housing market and previous downturns in the housing
cycle is the dramatic increase in oil prices.
It’s perfectly understandable to want to find the definitive forecast for residential
real estate and to seek a return to the heydays of housing, but we have little to gain in
latching on to any particular forecast or trying to time the market. We have everything to
gain, however, by managing expenses in order to survive, doing whatever it takes to
generate the leads that we need to thrive, seizing opportunities to build our share of the
current market, and emphasizing to clients who are trying to sort through many
conflicting messages that real estate is essentially a local business.
What’s happening within your local markets is all that’s relevant.
Wednesday, June 10, 2009
Thursday, June 4, 2009
It May Be Time to Think About Buying a House
By RON LIEBER
Published: December 5, 2008 in the NY Times
Published: December 5, 2008 in the NY Times
Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers.
Then, everyone who sat on their down payment savings accounts for a few years too long will kick themselves for not taking advantage of what may turn out to be the buying opportunity of a lifetime for those who can qualify for a mortgage.
Unfortunately, we do not know when this golden age will begin, because we will be able to identify a bottom to the housing market only with the benefit of hindsight. But as it does with the stock market, the moment will probably arrive when everyone is feeling the most pessimistic.
That moment is certainly getting closer. Housing prices have fallen drastically from their peak levels in many areas of the country. Rates on 30-year fixed-rate mortgages are already close to 5.5 percent, and this week there were suggestions that the federal government might try to drive them down to 4.5 percent, a truly incredible figure to be able to lock in for three decades.
Meanwhile, first-time home buyers have the same advantage they have always had, which is that they do not have to sell their old place before buying a new one. That is an added advantage in areas where many available houses simply are not moving, because the people trying to sell them will not be bidding against you.
If you’re hoping for a recovery in the housing market, you ought to be cheering on the first-time home buyers. When they purchase homes, their sellers are free to move on or move up, stimulating further sales.
But if you are a potential first-time buyer yourself, or lending or giving the down payment to one, you are probably as frightened as you are tempted by all the “For Sale” signs that have become “On Sale” signs. So let’s quickly review some of the still-grim pricing data in certain areas — and consider the reasoning offered up by first-time buyers who have forged ahead anyhow.
As is always the case with real estate, much depends on location. One study, “The Changing Prospects for Building Home Equity,” tries to predict where today’s first-time buyers in the 100 biggest metropolitan areas may actually have less home equity by 2012 as a result of continued price declines. The verdict was that buyers in 33 of the markets could see a decline by 2012, including potential six-figure drops on an average home in the New York City, Los Angeles, San Francisco and Seattle metropolitan areas.
This is obviously scary. (I’ve linked to the study, a joint effort of the Center for Economic and Policy Research and the National Low Income Housing Coalition, from the version of this article at nytimes.com/yourmoney.) It’s worth noting, however, that these predictions came before the government made its most recent move to reduce borrowing costs.
Also, the price projections in the study are based, in part, on the fact that the ratio of purchase prices to annual rents is still higher in many areas than the historical average, which is roughly 15 times rents. While past figures may well have some predictive value, I have never been convinced that first-time buyers compare a home that they could own and one that they would rent in purely or even primarily economic terms.
When Jaime and Michael Proman moved this fall to Minneapolis, his hometown, from New York City, they craved a different sort of life after two years together in a 450-square-foot studio apartment. “We didn’t want a sterile apartment feel,” said Mr. Proman, who is 28 (his wife is 26). “We wanted something that was permanent and very much a reflection of us.”
The fact is, in many parts of the country there are few if any attractive rentals for people looking to put down roots and enjoy the sort of amenities they may spot on cable television home improvement shows. Comparing a rental with a place that you may own seems almost pointless in these situations, especially for those who are now grown up enough to want to make their own decisions about décor without consulting the landlord.
Still, for anyone feeling the urge to buy, a number of practical considerations have changed in the last year or two. The basics are back, like spending no more than 28 percent of your pretax income on mortgage payments, taxes and insurance. Even if a lender does not hold you to this when you go in for preapproval, you should hold yourself to it.
You will also want to start now on any project to improve your credit score because it may take several months to get it above the 720 level that qualifies you for many of the best mortgage rates.
John Ulzheimer, president of consumer education for credit.com, a consumer credit information and application site, suggests starting to pay down and put away credit cards months before you apply for a loan. That is because the credit scoring system could penalize you if you use a lot of credit each month, even if you always pay in full. Also, check your three credit reports (it’s free) at annualcreditreport.com and dispute errors.
While no one can easily predict the likelihood of losing a job, Friday’s startling unemployment figures suggest the need for caution if you think you might be vulnerable. A. C. Panella, who teaches communications at Pasadena City College in California, waited until she had a tenure-track job before buying a home in the Highland Park section of Los Angeles with her partner, Amy Goldman, a lawyer for a nonprofit organization. “We could afford the mortgage payment on one salary, were something to come up,” Ms. Panella, 31, said. “It’s really about being able to stay within our means.”
For many first-time home buyers, that philosophy stretches to the down payment, too. Ms. Panella and her partner put down 20 percent when they bought their home in September, as did the Promans when they bought their home in the Lowry Hill neighborhood of Minneapolis.
Alison Nowak, 29, put just 3 percent down on a Federal Housing Administration-backed loan last month when she and her partner, Lacey Mamak, bought a $149,900, 800-square-foot home several miles south of where the Promans live. “Anything that is an opportunity also has a bit of risk,” she said. Her house was in foreclosure before a plumber bought it and fixed it up. “One way we mitigated it was that we bought a really tiny house in a very good neighborhood.”
One other strategy might be to buy new instead of used. Ian Shepherdson, chief United States economist for the research firm High Frequency Economics, says he believes that a steep drop-off in inventory of new homes is coming soon, thanks to a rapid decrease in home builder activity.
Since prices generally soften in the winter, it may make sense to start looking seriously once the mercury bottoms out. “If you look at new developments next spring, you may not have the choice you thought you would have or be in the bargaining position you thought you would be,” Mr. Shepherdson said. Also, if you wait after June 30, you will miss out on a $7,500 federal tax credit for income-eligible first-time home buyers that works like an interest-free loan.
Finally, allow yourself to consider how it would feel if you bought and then prices dropped another 10 or 15 percent. It might not bother you if you plan to stick around. Plenty of people seem to be making a longer commitment to their homes. According to a survey that the National Association of Realtors released last month, typical first-time buyers plan to stay in their home 10 years, up from 7 last year.
Perhaps people are more aware that they will not be able to build equity as rapidly as others did in the real estate boom. Or they simply have more confidence in hard, hometown assets now than in other markets.
“We wouldn’t let another decline bother us,” said Michael Proman. “You can never time a bottom. This is a long-term investment for us, and it truly is the best investment we have in our portfolio right now.”
Friday, March 13, 2009
Why Use a REALTOR®?
All real estate licensees are not the same. Only real estate licensees who are members of the NATIONAL ASSOCIATION OF REALTORS® are properly called REALTORS®. They proudly display the REALTOR "®" logo on the business card or other marketing and sales literature. REALTORS® are committed to treat all parties to a transaction honestly. REALTORS® subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. An independent survey reports that 84% of home buyers would use the same REALTOR® again.
Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.
But if you're still not convinced of the value of a REALTOR®, here are a dozen more reasons to use one:
1. Your REALTOR® can help you determine your buying power -- that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders -- banks and mortgage companies -- offer limited choices.
2. Your REALTOR® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.
3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning. schools, etc. There are two things you'll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?
4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.
5. Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date.
6. Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders.
7. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.
8. When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.
9. Your REALTOR® markets your property to other real estate agents and the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTOR® markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your REALTOR® acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTOR® Code of Ethics requires REALTORS® to utilize these cooperative relationships when they benefit their clients.
10. Your REALTOR® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.
11. Your REALTOR® can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing -- a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.
12. Your REALTOR® can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).
From realtor.com
Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.
But if you're still not convinced of the value of a REALTOR®, here are a dozen more reasons to use one:
1. Your REALTOR® can help you determine your buying power -- that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders -- banks and mortgage companies -- offer limited choices.
2. Your REALTOR® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.
3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning. schools, etc. There are two things you'll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?
4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.
5. Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date.
6. Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders.
7. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.
8. When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.
9. Your REALTOR® markets your property to other real estate agents and the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTOR® markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your REALTOR® acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTOR® Code of Ethics requires REALTORS® to utilize these cooperative relationships when they benefit their clients.
10. Your REALTOR® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.
11. Your REALTOR® can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing -- a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.
12. Your REALTOR® can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).
From realtor.com
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