Provided By Realty Times
First-time buyers are naturally very nervous about entering the market. This was true during sky-high interest rates in the 1980s. It was true when the real estate market was booming in 2005. It is still true today.
Newbies to the market worry about the cost of buying, the process itself, and of course what it will mean for them to be a homeowner. Owning a home is typically the biggest financial responsibility a person will undertake. It starts with the cost of a downpayment and closing costs and continues with a monthly mortgage payment and annual maintenance and repairs.
Today's market, however, brings new worries to the table. The economy is on the brink of a renewed recession. Fewer buyers can qualify for a home mortgage, especially since many lenders want at least 20 percent down. Plus, unemployment rates have remained consistently above 9 percent.
What do first-time buyers really need to know about today's market? Here are some things to consider.
Interest rates are at historic lows, with 30-year fixed rates between 4 and 5 percent! This is incredible. Imagine the difference between an interest rate of 4 percent and one at 13 percent. For a $100,000 with 20 percent down, you'll find a payment near $568 a month. For the exact same home at 13 percent you'll see a monthly payment of just over $1,000.
Home prices fell after the bubble burst, leaving affordability rates at generational highs. This means there are great deals to be had. In addition, there are a large number of foreclosure and short sale properties available, sometimes at even more savings.
This means prices are low and interest rates keep them that way. You will still need a downpayment, however. This is now expected to be at least 20 percent of the total cost of the home.
It's not all silver linings, though. Home values are still falling. It is of paramount importance that if you're in the market to buy, you must research your own local market trends. Are home values plummeting? Are they holding steady? Many times the housing market is directly linked to the health of the jobs market. What is the state of employment in your community?
There are reasons to buy other than just making a sound financial investment. If you plan on remaining in your home for many years to come, then now is a good time to buy regardless of pricing fluctuations. The social benefits still remain strong and your home will be an investment over the long-term.
Be sure to think long and hard about the true cost of homeownership and if it's right for you. This is not a time to get into a financial situation you can't handle. Is your job steady? Do you have an emergency fund in addition to your downpayment amount?
Hiring a knowledgeable real estate professional can be an excellent first step on your way to finding the right home for you. They can help answer all of your questions about the process. There's no reason to go into this process blindly. Let them guide you.
Buying a house is a big decision, but don't let scary headlines deter you. There are great deals to be had in today's market.
Are you a first time home buyer? Give us a call at 972-772-7000 or email us at frontdesk552@kw.com.
Monday, September 26, 2011
Friday, September 23, 2011
HOA Board Transparency
Provided By Realty Times
Governments have problems. The leadership of city, state, and federal governments is populated with people that are largely untrained in the broad variety of topics put before them. HOAs are a form of government but like no other. The entire membership has a direct interest in the outcome of how well, or how poorly, the HOA business is run. This isn't the case in the other forms of government where there is little individual voters can do to make changes. Not so with an HOA. With some effort, HOA members can oust the board or vote in a new bunch.
There are other controls. The governing documents can only be amended by the members, not the board. That is real power. Doing that with the other forms of governments is not possible. Since voters are little control over what their elected representatives do, most don't pay much attention or develop the attitude that "whatever they do doesn't affect me personally". Of course, that kind of thinking is exactly why elected officials get away with what they do.
HOAs have actually brought us much closer to the way things used to be when democracy was more accessible. An HOA board is only able to lord over the members if the members let it. But HOA members have a real and viable way to gain relief from oppressive government. It does take some effort to gain that relief but the means, at least, are there.
Fortunately, the majority of HOAs are relatively well run and the community harmonious, in spite of being run by amateurs. And the amateur boards that get educated on the process really shine! But most boards still have room for improvement in the communication department. The core philosophy here is "Transparency". Do not operate behind closed doors or withhold information that every HOA member is entitled to see. (There are exceptions to this rule, but the list is short: ongoing litigation, employment issues, competitive contract bidding). Here are several ways to keep the body politic transparently in the know:
Annual Planning Calendar. This is a multi-use document that combines meeting, social and maintenance dates all in one place. Meetings should be calendared a year in advance and major maintenance well in advance so that residents can make alternate plans.
Email. Pre-Y2K, there was still a significant amount of the population that was internet challenged. Today, few make that claim. Even the seniors have invaded Facebook. Make use of this reality by communicating that way to all that want it. Save time and save money.
HOA Website. If your HOA does not have a website, run, don’t walk, to one of the many providers that specialize in user friendly HOA websites. Basic websites which would work for most HOAs are available for less than a $1 a day.
Open Meetings. All HOA members have the right to attend board meetings. The fact that most don’t doesn’t mean the board should not advertise them and hold them in guest friendly venues.
Circulate the Meeting Minutes. All HOA members have the right to know what the board is up to. Make DRAFT minutes available within a week of each board meeting.
Make Financial Reports Available. All HOA members have the right to know how their money is being spent. Make them available upon request.
Have and Follow a Reserve Study. This 30 year plan charts a course for the board to follow for scheduling major repairs and a funding plan for accumulating the money to pay for it. If you don’t have one, contact the Association of Professional Reserve Analysts www.apra-usa.com for a list of credentialed Professional Reserve Analysts (PRAs) that can provide this invaluable service. Oh, by the way, the HOA members are entitled to see the reserve study because, again, it’s their money that will be paying for those repairs.
Newsletters. Publish quarterly newsletters to remind of frequently violated rules, contact information, upcoming projects and meetings. It doesn’t need to be a major production. One or two pages will do. Send it by email to reduce cost.
Board transparency will reap great rewards by building confidence and trust. This is one glass house that will clearly show that the board has nothing to hide. This emperor is fully clothed.
Have more questions? Give us a call at 972.772.7000 or email us at frontdesk552@kw.com.
Governments have problems. The leadership of city, state, and federal governments is populated with people that are largely untrained in the broad variety of topics put before them. HOAs are a form of government but like no other. The entire membership has a direct interest in the outcome of how well, or how poorly, the HOA business is run. This isn't the case in the other forms of government where there is little individual voters can do to make changes. Not so with an HOA. With some effort, HOA members can oust the board or vote in a new bunch.
There are other controls. The governing documents can only be amended by the members, not the board. That is real power. Doing that with the other forms of governments is not possible. Since voters are little control over what their elected representatives do, most don't pay much attention or develop the attitude that "whatever they do doesn't affect me personally". Of course, that kind of thinking is exactly why elected officials get away with what they do.
HOAs have actually brought us much closer to the way things used to be when democracy was more accessible. An HOA board is only able to lord over the members if the members let it. But HOA members have a real and viable way to gain relief from oppressive government. It does take some effort to gain that relief but the means, at least, are there.
Fortunately, the majority of HOAs are relatively well run and the community harmonious, in spite of being run by amateurs. And the amateur boards that get educated on the process really shine! But most boards still have room for improvement in the communication department. The core philosophy here is "Transparency". Do not operate behind closed doors or withhold information that every HOA member is entitled to see. (There are exceptions to this rule, but the list is short: ongoing litigation, employment issues, competitive contract bidding). Here are several ways to keep the body politic transparently in the know:
Annual Planning Calendar. This is a multi-use document that combines meeting, social and maintenance dates all in one place. Meetings should be calendared a year in advance and major maintenance well in advance so that residents can make alternate plans.
Email. Pre-Y2K, there was still a significant amount of the population that was internet challenged. Today, few make that claim. Even the seniors have invaded Facebook. Make use of this reality by communicating that way to all that want it. Save time and save money.
HOA Website. If your HOA does not have a website, run, don’t walk, to one of the many providers that specialize in user friendly HOA websites. Basic websites which would work for most HOAs are available for less than a $1 a day.
Open Meetings. All HOA members have the right to attend board meetings. The fact that most don’t doesn’t mean the board should not advertise them and hold them in guest friendly venues.
Circulate the Meeting Minutes. All HOA members have the right to know what the board is up to. Make DRAFT minutes available within a week of each board meeting.
Make Financial Reports Available. All HOA members have the right to know how their money is being spent. Make them available upon request.
Have and Follow a Reserve Study. This 30 year plan charts a course for the board to follow for scheduling major repairs and a funding plan for accumulating the money to pay for it. If you don’t have one, contact the Association of Professional Reserve Analysts www.apra-usa.com for a list of credentialed Professional Reserve Analysts (PRAs) that can provide this invaluable service. Oh, by the way, the HOA members are entitled to see the reserve study because, again, it’s their money that will be paying for those repairs.
Newsletters. Publish quarterly newsletters to remind of frequently violated rules, contact information, upcoming projects and meetings. It doesn’t need to be a major production. One or two pages will do. Send it by email to reduce cost.
Board transparency will reap great rewards by building confidence and trust. This is one glass house that will clearly show that the board has nothing to hide. This emperor is fully clothed.
Have more questions? Give us a call at 972.772.7000 or email us at frontdesk552@kw.com.
Wednesday, September 21, 2011
Give Where You Live!
“All The Woulda-Coulda-Shouldas
Layin' In The Sun,
Talkin' 'Bout The Things
They Woulda-Coulda-Shoulda Done...
But All Those Woulda-Coulda-Shouldas
All Ran Away And Hid
From One Little Did.”
― Shel Silverstein
Remember that the manner of giving is worth more than the gift. To learn more on how you can make a difference in the Rockwall community through Rockwall Cares call us at 972.772.7000 or email us at frontdesk552@kw.com.
Layin' In The Sun,
Talkin' 'Bout The Things
They Woulda-Coulda-Shoulda Done...
But All Those Woulda-Coulda-Shouldas
All Ran Away And Hid
From One Little Did.”
― Shel Silverstein
Remember that the manner of giving is worth more than the gift. To learn more on how you can make a difference in the Rockwall community through Rockwall Cares call us at 972.772.7000 or email us at frontdesk552@kw.com.
Tuesday, September 20, 2011
Monday, September 19, 2011
Homeowners Expect Prices to Fall
Provided By Realty Times
Has renewed concerns over the job market affected the way agents and homeowners feel about the market? HomeGain's nationwide third quarter 2011 home values survey found that forty-seven percent of surveyed real estate professionals nationwide expect home values to decrease over the next six months.
Additionally, an overwhelming majority of buyers feel that homes on the market are still overpriced, with 30 percent reporting they feel homes are overpriced by 10 to 20 percent.
Is this opportunism running rampant? Recent studies in affordability rates could lead us to believe so, as home values have plummeted across the nation and are already at generational highs.
Is the sentiment of overpriced homes a symptom of reduced consumer confidence in the market? Lynn Franco, Director of The Conference Board Consumer Research Center, reported late last month, "Consumer confidence deteriorated sharply in August, as consumers grew significantly more pessimistic about the short-term outlook. The index is now at its lowest level in more than two years. A contributing factor may have been the debt ceiling discussions since the decline in confidence was well underway before the S&P downgrade. Consumers' assessment of current conditions, on the other hand, posted only a modest decline as employment conditions continue to suppress confidence."
On top of these already dismal findings, foreclosures are still a large segment of most area markets. The largest percentage (32 percent) of those surveyed see 10 to 20 percent of the market made up of foreclosed properties.
“Homeowners have joined real estate professionals and now share their dour view on the direction of home prices. Last quarter only 30 percent of homeowners expected home prices to drop in the coming six months while 50 percent of real estate professionals expected price declines. In the current survey 45 percent of homeowners and 47 percent of real estate professionals expect home price declines in the next six months,” said Louis Cammarosano, General Manager of HomeGain.
Are you curious to know which states real estate agents and homeowners think will see price increases in the next six month? HomeGain supplies us with the list.
•Arizona
•Florida
•Texas
•California
•Ohio
•Tennessee
•Colorado
•Georgia
•Virginia
•Washington
On the flip side are the 10 states where agents and homeowners expect to see home price declines.
•New Jersey
•Pennsylvania
•North Carolina
•Georgia
•Virginia
•Illinois
•Massachusetts
•New York
•California
•Ohio
It's important to point out that several states made both lists. How can this be? It's just another clue that our market is volatile and unpredictable at this time. Too much of the housing market is tied to fluctuations in the jobs and stock market. Yet, real estate is extremely localized as well. You may have a boom market on one side of Ohio while another city across the state experiences declines.
In a down national economy, such as the one currently seen in the states, it's wise to keep an eye on national economic trends in stocks, jobs, and banking. It's also wise to take a hard look at your local economy. It may be the best future indicator of where housing will go in your community in the next six months.
Are you interested in learning more about home prices? Give us a call at 972.772.7000 or email us at frontdesk552@kw.com.
Has renewed concerns over the job market affected the way agents and homeowners feel about the market? HomeGain's nationwide third quarter 2011 home values survey found that forty-seven percent of surveyed real estate professionals nationwide expect home values to decrease over the next six months.
Additionally, an overwhelming majority of buyers feel that homes on the market are still overpriced, with 30 percent reporting they feel homes are overpriced by 10 to 20 percent.
Is this opportunism running rampant? Recent studies in affordability rates could lead us to believe so, as home values have plummeted across the nation and are already at generational highs.
Is the sentiment of overpriced homes a symptom of reduced consumer confidence in the market? Lynn Franco, Director of The Conference Board Consumer Research Center, reported late last month, "Consumer confidence deteriorated sharply in August, as consumers grew significantly more pessimistic about the short-term outlook. The index is now at its lowest level in more than two years. A contributing factor may have been the debt ceiling discussions since the decline in confidence was well underway before the S&P downgrade. Consumers' assessment of current conditions, on the other hand, posted only a modest decline as employment conditions continue to suppress confidence."
On top of these already dismal findings, foreclosures are still a large segment of most area markets. The largest percentage (32 percent) of those surveyed see 10 to 20 percent of the market made up of foreclosed properties.
“Homeowners have joined real estate professionals and now share their dour view on the direction of home prices. Last quarter only 30 percent of homeowners expected home prices to drop in the coming six months while 50 percent of real estate professionals expected price declines. In the current survey 45 percent of homeowners and 47 percent of real estate professionals expect home price declines in the next six months,” said Louis Cammarosano, General Manager of HomeGain.
Are you curious to know which states real estate agents and homeowners think will see price increases in the next six month? HomeGain supplies us with the list.
•Arizona
•Florida
•Texas
•California
•Ohio
•Tennessee
•Colorado
•Georgia
•Virginia
•Washington
On the flip side are the 10 states where agents and homeowners expect to see home price declines.
•New Jersey
•Pennsylvania
•North Carolina
•Georgia
•Virginia
•Illinois
•Massachusetts
•New York
•California
•Ohio
It's important to point out that several states made both lists. How can this be? It's just another clue that our market is volatile and unpredictable at this time. Too much of the housing market is tied to fluctuations in the jobs and stock market. Yet, real estate is extremely localized as well. You may have a boom market on one side of Ohio while another city across the state experiences declines.
In a down national economy, such as the one currently seen in the states, it's wise to keep an eye on national economic trends in stocks, jobs, and banking. It's also wise to take a hard look at your local economy. It may be the best future indicator of where housing will go in your community in the next six months.
Are you interested in learning more about home prices? Give us a call at 972.772.7000 or email us at frontdesk552@kw.com.
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