Provided By Realty Times
For real estate buyers, the process of purchasing a home, or cottage, can be overwhelming. Many purchasers, particularly first-time or first-time-in-a-long-time buyers, are relieved that at least part of the process is easy—viewing properties. That's where they make a big mistake.
It seems easy.
Look at a house from the street, and you either like it or you don't.
Walk through a house or condominium in 30 minutes or less, and you either love it or hate it.
Pretty presumptuous. Without specific construction knowledge and an eye for interior design—and in less time than typically spent picking out new clothes—buyers decide where to invest hundreds of thousands of dollars which they usually have to borrow. After one brief viewing, do you know that particular house, townhome, condominium unit, or recreational property well enough to know "This is it"?
The odd thing is that buyers know they can be tricked.
There are enough makeover television shows, websites, and publications making millions doing just that. The "before" picture is a dump. The "after" picture is stunning. Usually, it's just paint, nicer furniture, and talented interior design that makes the difference that buyers pay for.
Smells are a big turn off, yet buyers know that if smell-cancelling products had been sprayed around, the place would smell sweet, but they still pass on a chance for a sweet price.
Bad decorating or sloppy housekeeping generates "I couldn't live here" reactions. Yet, buyers are not moving in with the seller, furnishings and decor intact. Viewing a property means imagining your own furniture and decor in place of what's there now. Won't be long before a program or app will allow buyers to do exactly that with each potential buy. Until then, forget whether you'd want to live with the sellers, and concentrate on placing your personal stamp on the property to test its home-worthiness.
Logically, TV's demonstrated cosmetically-induced increase in real estate value should have buyers searching for money-saving "before" real estate. Instead, an industry has been carved off the real estate profession—staging—to superficially transform the saddest "before" real estate into a stunning "after." Buyers now willingly pay more (that's really borrow more) to view and buy an "after."
Real estate professionals are always ready to help buyers see genuine value in a "fixer upper," which often just need new paint and an up-dated look. Their training and experience has taught real estate professionals to first appraise properties by location and quality of construction. Then they add on or subtract the elusive amount that represents market appeal, or the lack of it, to arrive at market value.
While interest rates remain low, buyers continue to search for their "dream home." As interest rates rise and economies tighten, the drive for a "real buy" may overtake the bedazzled-style of buying. The uncertainty of investment markets will also place the emphasis on buying substance which will steadily appreciate in value over time.
If you decide to search out a great "real buy," there are a few of PJ's Smarten UP tips to keep in mind:
Virtual tours can reveal traffic flow problems and unappealing features, but they should not be a deciding "no view" factor if the location is ideal and the price affordable.
Curb appeal may get you in, but a property's bad street face should not keep you out when the location is great. If fewer people see the inside, competition will be lower. The property may be on the market longer, so the property owners more flexible. If curb appeal is lacking, when you're the owner you'll make money by adding value to the exterior.
Major structural issues like sagging beams and "in the way" bearing walls will cost money, so arrange professional estimates to back up an offer that reflects the costs ahead.
Plumbing and electrical work are a another expense. Knob and tube wiring may not be insurable, so be sure home inspectors know their job and are thorough. Too many times, electrical service has been doctored to look as if knob and tube has been removed, but it was merely patched with new wiring in visible places.
Particularly in southern Ontario, termites are increasingly a problem. Not discussed openly, there are specific areas of Toronto and other communities where termites flourish and they aren't going away. The key is protecting your property by treating the soil regularly. Is a great location worth that to you?
Do not look at furnishings or colour choices, especially great ones. Problems can be hiding under cosmetics. Anything newly-done should be examined closely. Watch makeover shows to see "what" will hide "what."
Viewing potential real estate is just as complex as every part of buying. Whether or not you love the real estate's street face, give it a good going over if the location and price are right for you. It's not what you see but what you know about real estate that make it and you valuable.
Looking for a great home? Give us a call at 972-772-7000 or email us at frontdesk552@kw.com.
Friday, September 30, 2011
Wednesday, September 28, 2011
Choosing The Best Lender
Provided By Yahoo!
You're shopping for a mortgage and you've received four offers from four lenders. How do you choose? The first factor most people consider is the interest rate and other costs, but that's only the beginning. You'll also want to think about the lenders themselves, not simply the numbers they're tossing your way.
Here are five steps to follow when determining which lender is right for you:
1. Compare fees as well as interest rates
Comparing loans based on their annual percentage rate (APR) is a good place to start, but it's not enough. In the case of a mortgage, to get a more accurate breakdown of costs, ask the various lenders for a formal "good faith estimate" of all the fees you'll incur with your loan -- this is a standard form lenders must provide you that is more detailed than the overview you'll get with an offer. Also, ask about potential charges that may not appear on that list, such as prepayment penalties. You're not just comparing numbers here: determine how honest and upfront you feel the lender is being, and don't use a lender that you feel is evading your questions.
2. Consider your individual circumstances
Bigger lenders aren't necessarily better than smaller ones, especially if you have unusual circumstances. For example, some lenders specialize in loans for people with poor credit, while others may have more options for those with small down payments. If you have special borrowing needs, look for a lender with experience working with people in similar situations.
3. Look at the range of loan types available
There are more loan options available than ever before, so take advantage of all that choice. Look for a lender who offers a wide variety of loan types, from conventional fixed-rate and adjustable-rate to newer ones such as hybrid ARMs and option ARMs. Your lender should be able to match you with a mortgage that's right for your financial situation and risk tolerance.
4. Evaluate the level of customer service
When you're comparing offers, ask each lender about their policy regarding locking in their quoted rates and see whether there is a fee. Also, ask them to amend one of the terms (such as a payment cap) and see how willingly they agree. You're looking for flexibility and responsiveness. And also note how well they listen to you. If you ask for a 30-year fixed-rate mortgage, they ought to present that as an option, not push you toward something different, such as an interest-only loan. If you're not getting good service from a lender who is competing for your business, you're not likely to get it after you've agreed to work with them.
5. Check out the lender's reputation
Word of mouth is important in every business, including the loan market. If you've never worked with a particular lender, you'll want to find out the opinion of people who have.
Are you ready to purchase a home? Give us a call at 972-772-7000 or email us at frontdesk552@kw.com.
You're shopping for a mortgage and you've received four offers from four lenders. How do you choose? The first factor most people consider is the interest rate and other costs, but that's only the beginning. You'll also want to think about the lenders themselves, not simply the numbers they're tossing your way.
Here are five steps to follow when determining which lender is right for you:
1. Compare fees as well as interest rates
Comparing loans based on their annual percentage rate (APR) is a good place to start, but it's not enough. In the case of a mortgage, to get a more accurate breakdown of costs, ask the various lenders for a formal "good faith estimate" of all the fees you'll incur with your loan -- this is a standard form lenders must provide you that is more detailed than the overview you'll get with an offer. Also, ask about potential charges that may not appear on that list, such as prepayment penalties. You're not just comparing numbers here: determine how honest and upfront you feel the lender is being, and don't use a lender that you feel is evading your questions.
2. Consider your individual circumstances
Bigger lenders aren't necessarily better than smaller ones, especially if you have unusual circumstances. For example, some lenders specialize in loans for people with poor credit, while others may have more options for those with small down payments. If you have special borrowing needs, look for a lender with experience working with people in similar situations.
3. Look at the range of loan types available
There are more loan options available than ever before, so take advantage of all that choice. Look for a lender who offers a wide variety of loan types, from conventional fixed-rate and adjustable-rate to newer ones such as hybrid ARMs and option ARMs. Your lender should be able to match you with a mortgage that's right for your financial situation and risk tolerance.
4. Evaluate the level of customer service
When you're comparing offers, ask each lender about their policy regarding locking in their quoted rates and see whether there is a fee. Also, ask them to amend one of the terms (such as a payment cap) and see how willingly they agree. You're looking for flexibility and responsiveness. And also note how well they listen to you. If you ask for a 30-year fixed-rate mortgage, they ought to present that as an option, not push you toward something different, such as an interest-only loan. If you're not getting good service from a lender who is competing for your business, you're not likely to get it after you've agreed to work with them.
5. Check out the lender's reputation
Word of mouth is important in every business, including the loan market. If you've never worked with a particular lender, you'll want to find out the opinion of people who have.
Are you ready to purchase a home? Give us a call at 972-772-7000 or email us at frontdesk552@kw.com.
Monday, September 26, 2011
Considerations for Today's First-Time Buyers
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.
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.
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.
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