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.
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