If you are selling your house, you may have to jump through a few hoops between the time you and the buyer reach an agreement and the time the money and deed change hands. The structural inspector usually finds a few things that need to be repaired or replaced, and the termite inspection may reveal the presence of unwanted pests. Most buyers will also have a list of items that they want the seller to fix.
The ideal is to have your home as perfect condition as possible in time for the walk-through inspection prior to closing. If you have agreed to complete repairs on your home, it is a good idea to get an early start on the work so there will be plenty of time to correct any "surprises" that may be found. Call several companies to get competitive bids for the work that needs to be done or ask your real estate agent for recommendations.
Presenting the buyers with a clean, well-maintained home will make the process a lot easier for them, especially if they get a case of last-minute jitters.
Tuesday, December 28, 2010
Saturday, December 18, 2010
Rising Rates
Ironically, it could be rising interest rates that finally push home buyers off the fence and into the market.
While Congress is debating the tax-cut compromise, the financial markets have interpreted the proposal as a development that will likely push mortgage interest rates higher than they have been for months.
Analysts are predicting that buyers will move quickly when it looks like rates are going up and are unlikely to come down. "Once people see this might actually be the bottom, they’ll go for it," says Paul Dales of Capital Economics.
The average rate for a 30-year fixed loan increased to 4.61 percent in the week ended Thursday, Dec. 9, from 4.46 percent the previous week. The average 15-year rate rose to 3.96 percent from 3.81 percent.
It's time to make a move if you've been thinking about it.
While Congress is debating the tax-cut compromise, the financial markets have interpreted the proposal as a development that will likely push mortgage interest rates higher than they have been for months.
Analysts are predicting that buyers will move quickly when it looks like rates are going up and are unlikely to come down. "Once people see this might actually be the bottom, they’ll go for it," says Paul Dales of Capital Economics.
The average rate for a 30-year fixed loan increased to 4.61 percent in the week ended Thursday, Dec. 9, from 4.46 percent the previous week. The average 15-year rate rose to 3.96 percent from 3.81 percent.
It's time to make a move if you've been thinking about it.
Tuesday, December 14, 2010
Final walk-thru before closing
Buyers can be a little cranky on closing day if things go wrong during the walk-through inspection. For example, the sellers' dependable old dishwasher might stop midway through its cycle and the bathroom sink might clog unexpectedly. These situations can create anxiety for the buyers and sellers, but such problems are quite common and usually simple to resolve.
Most purchase agreements require that the major mechanical systems and the appliances being conveyed are in working order at the time of the closing. Defects are often discovered during the structural inspection, allowing the sellers plenty of time to have the repairs made. Occasionally there are last-minute breakdowns or defects that are not spotted until the walk-through inspection. In that case, an agreement can be made with the sellers at the closing to escrow funds for the repair or replacement of the items in question.
Most purchase agreements require that the major mechanical systems and the appliances being conveyed are in working order at the time of the closing. Defects are often discovered during the structural inspection, allowing the sellers plenty of time to have the repairs made. Occasionally there are last-minute breakdowns or defects that are not spotted until the walk-through inspection. In that case, an agreement can be made with the sellers at the closing to escrow funds for the repair or replacement of the items in question.
Tuesday, November 30, 2010
Real Estate Tip if you are self employed
There's no question that it could be more difficult for you to get a mortgage loan if you are a free lance viola player than if you are a government accountant. Traditionally, lenders have been more cautious when evaluating loan applications of buyers who are self-employed than people who work for a regular salary.
However, if you are self-employed, there is no reason for you to shy away from applying for a home mortgage loan, especially if your earnings have been in the same field for at least two years. It is a good idea to meet with one or more loan officers before you begin your search. They will probably want to analyze your tax returns for the past 2 or 3 years, keeping in mind that many self employed people can look impoverished on paper, since you can write off some expenses that salaried individuals can not. Try to get pre-approval from the lender, and ask for a letter stating that you have pre-qualified for a loan which your real estate agent can attach to any offer you submit on a home. This will make you more attractive to the sellers.
However, if you are self-employed, there is no reason for you to shy away from applying for a home mortgage loan, especially if your earnings have been in the same field for at least two years. It is a good idea to meet with one or more loan officers before you begin your search. They will probably want to analyze your tax returns for the past 2 or 3 years, keeping in mind that many self employed people can look impoverished on paper, since you can write off some expenses that salaried individuals can not. Try to get pre-approval from the lender, and ask for a letter stating that you have pre-qualified for a loan which your real estate agent can attach to any offer you submit on a home. This will make you more attractive to the sellers.
Wednesday, November 17, 2010
Sellers want communication
Sellers want communication. Most agents think the only thing homeowners want when they list with an agent is to sell their house. Of course this is important, but from the time they list with you to the time it sells, the No. 1 thing they want is communication. A frequent complaint about agents is that they list homes and are never heard from again. So keep in touch with the seller through various means, such as phone calls, e-mails, notes, and face-to-face meetings.
Sunday, November 7, 2010
Approval from FED for USDA/Rural Housing loans
The federal government has finally given the go ahead for approved lenders to begin funding USDA/Rural Housing loans. Here are a few benefits of USDA/Rural Housing Loans:
* Zero Down payment required which drastically reduces the amount needed to close and allows more buyers to be eligible for the program.
* Closing costs and prepaids can be financed if supported by appraised value so buyers with limited assets can still qualify.
* Assumable with prior approval. Re-sales of the property may be more affordable and homeowners with assumable mortgages have more marketable homes.
* Rural properties are eligible. It makes home financing easier and more available in outlying communities.
* Zero Down payment required which drastically reduces the amount needed to close and allows more buyers to be eligible for the program.
* Closing costs and prepaids can be financed if supported by appraised value so buyers with limited assets can still qualify.
* Assumable with prior approval. Re-sales of the property may be more affordable and homeowners with assumable mortgages have more marketable homes.
* Rural properties are eligible. It makes home financing easier and more available in outlying communities.
Tuesday, October 26, 2010
Real Estate by Pam: Deadlines for contracts are very important
Real Estate by Pam: Deadlines for contracts are very important: "Both buyer and seller should be aware of all of the deadlines in their purchase agreement. Each contract is different, but there are usually..."
Deadlines for contracts are very important
Both buyer and seller should be aware of all of the deadlines in their purchase agreement. Each contract is different, but there are usually time limits covering the home inspection, the financing application, the loan commitment, and the closing.
Don't lose your right to ask a seller to pay for needed repairs. There may be a limit on the time the seller has to respond to the buyer's request to complete repairs that are not required by the contract. Failure to apply for your mortgage on time may place your deposit at risk if the loan is denied. In many cases, the agreement can be declared null and void by the seller if financing is not approved within the time frame set forth in the contract. A delayed closing can cost the sellers money, and they may ask the buyer to reimburse these expenses.
Don't lose your right to ask a seller to pay for needed repairs. There may be a limit on the time the seller has to respond to the buyer's request to complete repairs that are not required by the contract. Failure to apply for your mortgage on time may place your deposit at risk if the loan is denied. In many cases, the agreement can be declared null and void by the seller if financing is not approved within the time frame set forth in the contract. A delayed closing can cost the sellers money, and they may ask the buyer to reimburse these expenses.
Friday, September 17, 2010
10 Reasons to buy
Why is now a great time to buy? Here are 10 reasons:
1. You can get a good deal. Prices are down 30 percent on average. They're at a level that makes sense for people's income.
2. Mortgages are cheap. At 4.3 percent on average for a 30-year fixed-rate mortgage, your costs to own are down by a fifth from two years ago.
3. You can save on taxes. When you add up the deductions for mortgage interest and others, the cost of owning can drop below renting for a comparable place.
4. It'll be yours. The one benefit to owning that never changes is that you can paint your walls orange if you want (generally speaking; there might be some community restrictions). How many landlords will let you do that?
5. You can get a better home. In some markets, it's simply the case that the nicest places are for-sale homes and condos.
6. It offers some inflation protection. Historically, appreciation over time outpaces inflation.
7. It's risk capital. If the economy picks up, you stand to benefit from that, even if you're goal is just to have a nice place to live.
8. It's forced savings. A part of your payment each month goes to equity.
9. There is a lot to choose from. There are some 4 million homes available today, about a year's supply. Now's the time to find something you like and get it.
10. Sooner or later the market will clear. The U.S. is expected to grow by another 100 million people in 40 years. They have to live somewhere. Demand will eventually outpace supply.
1. You can get a good deal. Prices are down 30 percent on average. They're at a level that makes sense for people's income.
2. Mortgages are cheap. At 4.3 percent on average for a 30-year fixed-rate mortgage, your costs to own are down by a fifth from two years ago.
3. You can save on taxes. When you add up the deductions for mortgage interest and others, the cost of owning can drop below renting for a comparable place.
4. It'll be yours. The one benefit to owning that never changes is that you can paint your walls orange if you want (generally speaking; there might be some community restrictions). How many landlords will let you do that?
5. You can get a better home. In some markets, it's simply the case that the nicest places are for-sale homes and condos.
6. It offers some inflation protection. Historically, appreciation over time outpaces inflation.
7. It's risk capital. If the economy picks up, you stand to benefit from that, even if you're goal is just to have a nice place to live.
8. It's forced savings. A part of your payment each month goes to equity.
9. There is a lot to choose from. There are some 4 million homes available today, about a year's supply. Now's the time to find something you like and get it.
10. Sooner or later the market will clear. The U.S. is expected to grow by another 100 million people in 40 years. They have to live somewhere. Demand will eventually outpace supply.
Tuesday, September 14, 2010
Positive News on Mortgage Loans
Delinquencies Are High but Recent Loan Origination Performing Well
•Due to Past Lending Mistakes the Bad Loans are still working through the system
•Banker’s Afterthought is nearly always that “Bad Loans are made in Bubble Times.”
•However, the Mortgage Delinquency Rate may have peaked. According to the Mortgage Bankers Association, mortgage delinquencies fell to 9.85 percent in second quarter 2010 from 10.1 percent in the first quarter.
•Various reports suggest good loan performance on recently originated mortgages.
•One-third of homeowners own their homes free-and-clear. They are not included in mortgage delinquency statistics.
•Loan approval is more difficult, which explains better recent loan performance. There is a better approval chance if the borrower stays well within
their budget.
•Due to Past Lending Mistakes the Bad Loans are still working through the system
•Banker’s Afterthought is nearly always that “Bad Loans are made in Bubble Times.”
•However, the Mortgage Delinquency Rate may have peaked. According to the Mortgage Bankers Association, mortgage delinquencies fell to 9.85 percent in second quarter 2010 from 10.1 percent in the first quarter.
•Various reports suggest good loan performance on recently originated mortgages.
•One-third of homeowners own their homes free-and-clear. They are not included in mortgage delinquency statistics.
•Loan approval is more difficult, which explains better recent loan performance. There is a better approval chance if the borrower stays well within
their budget.
Tuesday, September 7, 2010
Standing by YOU
Real estate transactions are complicated and unpredictable. Professional real estate agents are trained to handle the many facets of buying a home. A good agent is an invaluable asset to your venture if you are in the market for a house.
When you find a real estate agent with whom you feel confident, it is good to enter into a committed working relationship with that person. Concentrating your search with one agent will allow that agent to become truly familiar with your needs, desires, and financial capacities.
Maintaining loyalty to the real estate agent of your choice will bear you more fruit than scattering your attention among several agents. An agent who feels your commitment will devote his or her entire energy to finding the right home for you.
I am committed to devote all my energy in helping you, whether it's selling or buying or renting.
When you find a real estate agent with whom you feel confident, it is good to enter into a committed working relationship with that person. Concentrating your search with one agent will allow that agent to become truly familiar with your needs, desires, and financial capacities.
Maintaining loyalty to the real estate agent of your choice will bear you more fruit than scattering your attention among several agents. An agent who feels your commitment will devote his or her entire energy to finding the right home for you.
I am committed to devote all my energy in helping you, whether it's selling or buying or renting.
Friday, September 3, 2010
Don't let the seemingly endless run of bad housing news discourage your potential to own a home. The truth is that the advantages of home ownership have very little to do with investment gains. The best things about owning a home have a lot more to do with personal comfort and satisfaction.
Here are five of them:
· Be your own landlord. The bank can only kick you out if you don’t pay; a landlord can be much less dependable – deciding to sell the property or choosing to live there themselves. I currently know of a couple where the apartment complex is telling tenants to move because they will be renovating.
· Paying the principal is forced savings. Yes, it’s possible that home prices will fall further. It is also possible that your 401(k) will lose value. But over the long haul, both are likely to enjoy modest gains in value.
· Fixed-rate mortgages never rise – and eventually you pay them off. With mortgage rates at record lows, people who buy now are locking in real bargains.
· Good schools. Family-sized rentals are harder to come by in areas with excellent public schools.
· Spacious properties in pleasant neighborhoods. Sizable homes in attractive communities are almost always owned – not rented.
I'm always here to answer any of your real estate questions.
Here are five of them:
· Be your own landlord. The bank can only kick you out if you don’t pay; a landlord can be much less dependable – deciding to sell the property or choosing to live there themselves. I currently know of a couple where the apartment complex is telling tenants to move because they will be renovating.
· Paying the principal is forced savings. Yes, it’s possible that home prices will fall further. It is also possible that your 401(k) will lose value. But over the long haul, both are likely to enjoy modest gains in value.
· Fixed-rate mortgages never rise – and eventually you pay them off. With mortgage rates at record lows, people who buy now are locking in real bargains.
· Good schools. Family-sized rentals are harder to come by in areas with excellent public schools.
· Spacious properties in pleasant neighborhoods. Sizable homes in attractive communities are almost always owned – not rented.
I'm always here to answer any of your real estate questions.
Wednesday, September 1, 2010
Positive News
With today’s market conditions and the constant media headlines, my role has officially transcended from that of a sales associate to a Real Estate advisers.
People have financial advisers. They have career advisers. And now more than ever, they need Real Estate advisers.
With the collective experience and expertise I have here at Long & Foster, it is my responsibility to identify real estate opportunities for my clients. Potential buyers and sellers are bombarded every day with headlines and reports that would make even the most confident consumer take pause. This is where being the best-trained, best-equipped Real Estate professionals comes into play. I can step in and help consumers cut through the fog and see a clearer picture of what opportunities might exist for them.
We’ve seen a lot of headlines in the last week or so that don’t tell the full picture of our local Real Estate market. So allow me to cut through the fog a bit, and present a side of the story that we won’t always see in mainstream media reports.
Further, I'll assert once again that we were expecting this pull-forward effect as a result of the tax credits. Keep in mind that when the media reports existing home sales figures from the National Association of Realtors, these are closed transactions. The lagging July data we just absorbed is a reflection of contracts that were signed in May and June, right after the expiration of the tax credit, and just made it to the settlement table.
Our area is so different that the rest of the country. Our job market is great.
People have financial advisers. They have career advisers. And now more than ever, they need Real Estate advisers.
With the collective experience and expertise I have here at Long & Foster, it is my responsibility to identify real estate opportunities for my clients. Potential buyers and sellers are bombarded every day with headlines and reports that would make even the most confident consumer take pause. This is where being the best-trained, best-equipped Real Estate professionals comes into play. I can step in and help consumers cut through the fog and see a clearer picture of what opportunities might exist for them.
We’ve seen a lot of headlines in the last week or so that don’t tell the full picture of our local Real Estate market. So allow me to cut through the fog a bit, and present a side of the story that we won’t always see in mainstream media reports.
Further, I'll assert once again that we were expecting this pull-forward effect as a result of the tax credits. Keep in mind that when the media reports existing home sales figures from the National Association of Realtors, these are closed transactions. The lagging July data we just absorbed is a reflection of contracts that were signed in May and June, right after the expiration of the tax credit, and just made it to the settlement table.
Our area is so different that the rest of the country. Our job market is great.
Thursday, August 26, 2010
The tax credit is over but interest rates are great
Given the choice between a 10 percent pay raise when inflation is 12 percent or a 4 percent raise when inflation is 2 percent, respondents almost always go for the bigger raise, even though it means they will lose ground, said Greg Salsbury, an executive vice president with Jackson National Life Distributors in Denver.
Rather than seizing opportunities, many people also tend to freeze up when there is too much uncertainty.
"Unemployment, the deficit and the overall economy are impacting people's decisions disproportionately," Salsbury said. "There are a lot of things in play."
Some mortgage brokers and bankers argue against complicated explanations about why buyers are missing in action.
"The majority of my borrowers used the $8,000 tax credit toward the down payment, and the seller paid closing costs," said Marilyn McConnell, a mortgage adviser with Cherry Creek Mortgage.
Lower interest rates don't help those buyers who can't come up with the needed down payment or who are trapped in a home they can't sell without taking a loss.
Rather than seizing opportunities, many people also tend to freeze up when there is too much uncertainty.
"Unemployment, the deficit and the overall economy are impacting people's decisions disproportionately," Salsbury said. "There are a lot of things in play."
Some mortgage brokers and bankers argue against complicated explanations about why buyers are missing in action.
"The majority of my borrowers used the $8,000 tax credit toward the down payment, and the seller paid closing costs," said Marilyn McConnell, a mortgage adviser with Cherry Creek Mortgage.
Lower interest rates don't help those buyers who can't come up with the needed down payment or who are trapped in a home they can't sell without taking a loss.
Sunday, August 22, 2010
Great news for Bank of America Short Sales
BOA is now working on a project to clear out their pipeline of short sales that are over 90 days old. This is good news for clients that have files in with BOA over 90 days, however on files that are under 90 days old; these files are being place on the back burner by Bank of America to get to the older files. All in all, we’re seeing that BOA is taking about 120 days now to make a decision on a file.
That's great news for people who are wanting to get a good deal on a short sale. With the interest rates as low as they are, it's a great time to buy.
That's great news for people who are wanting to get a good deal on a short sale. With the interest rates as low as they are, it's a great time to buy.
Monday, August 9, 2010
Experience with short sale this week
Well, well after waiting forever (what seems like forever) to get a short sale approved by BOA, the buyer's lender didn't come through. During the entire approval process of trying to get BOA to approve short sale, the buyer and the buyer's lender called continuously. When are they going to settlement? They are tired of waiting? They are going to buy another house? All of these questions, over and over. Called at least once a week, sometimes even twice or three times. Then we're finally ready to settle and the buyer doesn't qualify to buy the property. Every time they called I would reiterate to please have loan in place to settle. The lender and buyer assured me all is okay. Well not!!!! Very frustrating for my seller who has waited so long for this process to get approved for short sale and then buyer dumps on us. You would think that the lender would know the buyer didn't qualify after waiting months for approval of short sale. Property back on the market while buyer tries to get a co-signor. Never a dull moment in Real Estate.
Friday, August 6, 2010
Five Reasons Why to Buy Now
1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today's record-low rates, they start building equity as soon as they close. That means they can absorb a few ups and downs as the still-recovering housing market gains traction.
2. Houses are in move-in condition. Home owners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. As these houses enter the market, they are in marked contrast to tattered foreclosures.
3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system, and they are being replaced by some very attractive properties.
4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines, giving appraisers more flexibility to set values that reflect the current market.
5. Plenty of programs. Many programs that encourage middle-class families to buy homes continue to exist, despite market downturns. Buyers who qualify can get a big boost by combining one of these programs with today's low mortgage rates.
2. Houses are in move-in condition. Home owners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. As these houses enter the market, they are in marked contrast to tattered foreclosures.
3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system, and they are being replaced by some very attractive properties.
4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines, giving appraisers more flexibility to set values that reflect the current market.
5. Plenty of programs. Many programs that encourage middle-class families to buy homes continue to exist, despite market downturns. Buyers who qualify can get a big boost by combining one of these programs with today's low mortgage rates.
Friday, July 30, 2010
Busy end of month in Real Estate
It was a busy week with nothing going on time as scheduled for settlements. Settlements being re-scheduled because the power was out. My seller who was so accommodating was ready to drive back and forth 6 hours to do a closing. Luckily I was able to get title company to let her sign papers and leave. The buyer signing at a later date. Then my other settlement today was a mess. The tenant didn't move anything out of the property. The poor buyer had moving truck sitting outside with all his stuff and the tenant's stuff still in house. The seller ended up having to pay movers to move tenant's belongings out of property. And then pay for carpet cleaning and maid service to clean the place. It ended up on a positive note and buyer was happy at the end.
On a positive note, I met some really nice new clients this week. It's so nice to be able to help and work with people who will listen and take advice. People who know they're not in the Real Estate field and know how to listen.
Despite all the negative news about Real Estate, there are lots of positive news in the market. It's a busy market. People are buying. Lots of great deals and the interest rate is at a low. It's good to just turn off the news and don't live your life by the news.
On a positive note, I met some really nice new clients this week. It's so nice to be able to help and work with people who will listen and take advice. People who know they're not in the Real Estate field and know how to listen.
Despite all the negative news about Real Estate, there are lots of positive news in the market. It's a busy market. People are buying. Lots of great deals and the interest rate is at a low. It's good to just turn off the news and don't live your life by the news.
Tuesday, July 20, 2010
Free No Obligation Analysis of your home
A "Listing Presentation" is an industry term for the formal presentation that a real estate agent makes to prospective home sellers, trying to earn their trust and business. Don't list your home without one! I would love the opportunity to make such a presentation to you.
I'll visit your Gaithersburg, Rockville and Germantown area home, and together we will walk through it, considering the positives and negatives (if any!). You will then see exactly how I would propose to sell your home, for as much as the market will bear, and within your time frame. I will tell you where I will advertise your home, both in print and on the web. With the dramatic growth in homebuyer usage of the web, you MUST have a real estate agent that can extensively market your home online!
And you'll find out what your Gaithersburg, Rockville and Germantown area home is worth, because part of my presentation will include a CMA (Comparative Market Analysis) of your home. I'll compare your home to others like it in Gaithersburg, Rockville and Germantown area that have recently sold, and also to others that are currently for sale. This is a very important way of determining the fair market value of your home.
I make free presentations and prepare CMAs for prospective home sellers every day. I know what puts a big SOLD sign in your front yard.
I'd love the chance to make a presentation for you. It is totally free and without any obligation.
I'll visit your Gaithersburg, Rockville and Germantown area home, and together we will walk through it, considering the positives and negatives (if any!). You will then see exactly how I would propose to sell your home, for as much as the market will bear, and within your time frame. I will tell you where I will advertise your home, both in print and on the web. With the dramatic growth in homebuyer usage of the web, you MUST have a real estate agent that can extensively market your home online!
And you'll find out what your Gaithersburg, Rockville and Germantown area home is worth, because part of my presentation will include a CMA (Comparative Market Analysis) of your home. I'll compare your home to others like it in Gaithersburg, Rockville and Germantown area that have recently sold, and also to others that are currently for sale. This is a very important way of determining the fair market value of your home.
I make free presentations and prepare CMAs for prospective home sellers every day. I know what puts a big SOLD sign in your front yard.
I'd love the chance to make a presentation for you. It is totally free and without any obligation.
Wednesday, July 14, 2010
Top Earning Towns - Bethesda MD
1. Bethesda, MD
Bethesda, MD
Population: 56,763
Median family income (per year): $172,541
Median home price: $725,000
There's a party for every season in this commuter town: Enjoy concerts and ice sculpting in the winter and Taste of Bethesda in October; schmooze with Pulitzer Prize winning authors at April's literary festival; and enjoy the strains of delta blues, soul and swing in the summer.
Year-round a dozen art galleries and hundreds of diverse restaurants woo suburbanites away from cul-de-sac comforts for days and nights downtown. An abundance of home fashion stores and graduate degrees (one in two residents has one) sets a swanky tone for this small community with big city style.
Published by CNN Money
Bethesda, MD
Population: 56,763
Median family income (per year): $172,541
Median home price: $725,000
There's a party for every season in this commuter town: Enjoy concerts and ice sculpting in the winter and Taste of Bethesda in October; schmooze with Pulitzer Prize winning authors at April's literary festival; and enjoy the strains of delta blues, soul and swing in the summer.
Year-round a dozen art galleries and hundreds of diverse restaurants woo suburbanites away from cul-de-sac comforts for days and nights downtown. An abundance of home fashion stores and graduate degrees (one in two residents has one) sets a swanky tone for this small community with big city style.
Published by CNN Money
Tuesday, July 13, 2010
Tips for Selling your home.
You are about to list your home. Since you have lived there for many years, you know that it is not perfect. For example, there might be a leak in the basement that is noticeable only after a heavy rain. Your garage door might stick, and the dishwasher may be prone to work stoppages.
Every home has a few quirks. When it is time to sell your home, you have a choice of either making the necessary repairs or letting the buyers know about the problems. Material defects must be fully disclosed.
Some buyers will order a structural inspection in order to learn exactly what they will be getting. Even if the buyers don't ask for an expert to look at the house, it is the seller's responsibility to disclose any known defects in the property. The seller's agent will provide the disclosure form, wherein the seller may itemize any problems. Sellers may avoid any real estate lawsuits over undisclosed defects by making repairs before the sale or agreeing to a price adjustment during the transaction if defects are discovered.
Every home has a few quirks. When it is time to sell your home, you have a choice of either making the necessary repairs or letting the buyers know about the problems. Material defects must be fully disclosed.
Some buyers will order a structural inspection in order to learn exactly what they will be getting. Even if the buyers don't ask for an expert to look at the house, it is the seller's responsibility to disclose any known defects in the property. The seller's agent will provide the disclosure form, wherein the seller may itemize any problems. Sellers may avoid any real estate lawsuits over undisclosed defects by making repairs before the sale or agreeing to a price adjustment during the transaction if defects are discovered.
Monday, July 12, 2010
Real Estate Sales Tax
Very Few Will Pay 3.8 Percent “Sales Tax” on Homes
Despite misinformation circulating, only top 2 percent of population will be subject to tax
A big piece of legislation like the health care reform act understandably sparks a lot of questions. The massive law, officially known as the Patient Protection and Affordable Care Act, was signed into law by President Obama in March but it will take some time for the American public to understand the nature of the changes.
The law includes provisions about how the government will pay for health care services, one of which is a “sales tax” on real estate. This issue has caused some concern among real estate professionals and consumers alike, and it’s important to understand that, while this tax does exist, it’s unlikely to affect a wide portion of your clients. In fact, The Tax Foundation estimates that only the top-earning two percent of families in this country are likely to be impacted at all.
In short, information is circulating that homeowners will face a 3.8 percent tax on the profit they may earn when selling their homes. The reality is this:
* The 3.8 percent tax on profits from the sale of investments, which includes real estate, applies only to individuals who make more than $200,000 per year, or married couples filing jointly who earn more than $250,000 per year.
* For those who make more than the cut-off, the tax won’t be applied to the first $250,000 in profit from the sale of a personal residence—or $500,000 if a married couple sells their home.
* The exclusion for the first $250,000 in profit (or $500,000 for a married couple) does not, however, apply to vacation homes or rental properties. Those properties—only for those who exceed the income limitations—will be subject to the tax.
* This new rule does not take effect until January 1, 2013.
This blog at Factcheck.org by Brooks Jackson contains a lot of information that clarifies the 3.8 percent real estate tax situation. In it, the author quotes William Ahern of the Tax Foundation: “Some home sales would see a tax increase under this bill, but it would have to be a second home or principal residence generating [a gain of] more than $250,000 ($500,000 for a couple).”
I encourage you to arm yourself with these details as concerns from sellers pop up. There are several resources available to you and your clients, including some clarification from the National Association of Realtors.
Everything we do begins with a real estate transaction and a professional
Sales Associate and we recognize and celebrate that fact.
Courtesy: Jeff Detwiler/Long & Foster
Despite misinformation circulating, only top 2 percent of population will be subject to tax
A big piece of legislation like the health care reform act understandably sparks a lot of questions. The massive law, officially known as the Patient Protection and Affordable Care Act, was signed into law by President Obama in March but it will take some time for the American public to understand the nature of the changes.
The law includes provisions about how the government will pay for health care services, one of which is a “sales tax” on real estate. This issue has caused some concern among real estate professionals and consumers alike, and it’s important to understand that, while this tax does exist, it’s unlikely to affect a wide portion of your clients. In fact, The Tax Foundation estimates that only the top-earning two percent of families in this country are likely to be impacted at all.
In short, information is circulating that homeowners will face a 3.8 percent tax on the profit they may earn when selling their homes. The reality is this:
* The 3.8 percent tax on profits from the sale of investments, which includes real estate, applies only to individuals who make more than $200,000 per year, or married couples filing jointly who earn more than $250,000 per year.
* For those who make more than the cut-off, the tax won’t be applied to the first $250,000 in profit from the sale of a personal residence—or $500,000 if a married couple sells their home.
* The exclusion for the first $250,000 in profit (or $500,000 for a married couple) does not, however, apply to vacation homes or rental properties. Those properties—only for those who exceed the income limitations—will be subject to the tax.
* This new rule does not take effect until January 1, 2013.
This blog at Factcheck.org by Brooks Jackson contains a lot of information that clarifies the 3.8 percent real estate tax situation. In it, the author quotes William Ahern of the Tax Foundation: “Some home sales would see a tax increase under this bill, but it would have to be a second home or principal residence generating [a gain of] more than $250,000 ($500,000 for a couple).”
I encourage you to arm yourself with these details as concerns from sellers pop up. There are several resources available to you and your clients, including some clarification from the National Association of Realtors.
Everything we do begins with a real estate transaction and a professional
Sales Associate and we recognize and celebrate that fact.
Courtesy: Jeff Detwiler/Long & Foster
Tuesday, June 22, 2010
Multiple offers on a Town Home in Germantown
The seller was great in listening to suggestions on getting the property ready for the market and then taking my advice on price suggestion. The property was on the market one day and received 2 offers. Three other people asked for disclosures but decided not to write because they didn't want to compete.
The market is always good for a property priced right to sell.
The market is always good for a property priced right to sell.
Tuesday, June 15, 2010
Short Sales - do the banks know what is going on with these properties?
I finally have an approval on a short sale contract I wrote back in August of 2009. Wow, what a long time to wait for a first-time home-buyer? Two mortgages to get approved. I'm happy the buyer wanted to wait for this process. I have another short sale listing with BOA and everything have been completed and waiting for an approval. No one at the bank is returning calls or emails. When I call, they're going to escalate the process. Well I've called several times and each time they've escalated and still nothing. I have a buyer who is waiting patiently but what happens when the buyer decides they don't want to wait and back out of the contract. Well what happens is the process with the bank starts all over again with another contract. There has got to be a better way for these banks to get these approvals in a timely manner. Meanwhile properties are sitting vacant which in reality will lessen the value even more. Mold is setting in everywhere. So the banks were the problem with lending to anyone basically. Now they are the problem again because the properties are going down even more in value than the regular depreciation because the properties are sitting vacant. Some of them even need to be gutted with only the shell left. Then what price will a buyer pay for a property that has to be gutted? Or completely filled with mold?
Monday, May 24, 2010
Existing Home Sales
Existing-home sales, increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 percent higher than the 4.70 million-unit pace in April 2009.
pameladubois.com
pameladubois.com
Monday, May 17, 2010
New Tax Proposals for Real Estate
Congress is considering new tax proposals that would place additional burdens on owners and investors in residential and commercial real estate.
The real estate industry is still very fragile and likely to remain so. In better times, the real estate industry would be a dynamic engine of job creation. Any new tax burdens on real estate owners will impair and delay further recovery. These proposals are ill-advised, inopportune and potentially destructive. Please take action today to tell Congress "No New Real Estate Tax Burdens".
The real estate industry is still very fragile and likely to remain so. In better times, the real estate industry would be a dynamic engine of job creation. Any new tax burdens on real estate owners will impair and delay further recovery. These proposals are ill-advised, inopportune and potentially destructive. Please take action today to tell Congress "No New Real Estate Tax Burdens".
Friday, May 7, 2010
Re-insurance and loan program to help stabilize insurance rates
H.R. 2555: "Homeowners' Defense Act" (Klein, D-FL) would provide for a federal reinsurance and loan guarantee program to help stabilize insurance rates for states that implement mitigation and building code programs and meet stringent credit-risk requirements. Without stable funding alternatives, states must maintain artificially inflated rates to hedge against risk in an increasingly volatile global reinsurance market.
www.pameladubois.com
www.pameladubois.com
Monday, May 3, 2010
Selling your home in today's market
The National Association of Realtors suggests that your first course of action should be removing clutter. The reasoning behind this is simple. Clutter distracts the mind and it distracts the imagination. A potential buyer needs to be able to see themselves and their own style in your home.
By banishing disorder and welcoming in neatness you can give your house an advantage over any competition who is lesser prepared.
2. After decluttering, the next step is to clean. In the same sense that decluttering is removing "you" from the potential home of another, cleaning is removing your grimy mark. Have carpets cleaned, wax the floors, and remove any odors of pets or smoking.
3. Luxurious bathrooms are a must. A bathroom that is clean and full of comfort is appealing to most every buyer. Arrange new towels and rugs, as well as burn fresh smelling candles. Consider adding rich decor, such as paintings.
4. Windows that shine. We can become desensitized to the finer details of our home, but buyers will hone in on each and every imperfection. Be sure that during your cleaning and decluttering, you don't forget to wash your windows. This way buyers will be able to focus their attentions on the beautiful grounds of your property, as opposed to the spots on the glass.
5. Let there by light. Burned out bulbs can make rooms look dark and dingy. Consider buying eco-friendly fluorescent or LED lights for use in your home.
6. Minor repairs are important. There are buyers who are turned off by even minor repairs. They see that loose cabinet door or that warped deck board as a two-fold evil. Either the house has been poorly cared for with bigger repairs waiting for discovery under the surface, or that the home may be too much work for them.
7. Don't neglect your yard. For many buyers, a yard is an extension of the home. Be sure that for each showing, your yard is freshly mowed and any debris, trash, or clutter (toys, tools, etc) are put away. A great way to make flower beds appear neat and well tended is to add mulch. Clean off sidewalks with a quick powerwash.
8. Add punches of seasonal color. Even if you aren't a garden guru, you can still plant low maintenance flowers in beds and pots. Some examples of low maintenance flowering plants are: petunias, pansies, and vincas.
9. A petless home. We all love our pets, sometimes like they're our own children. But they should be safely at a friend's house or kennel during showings. While you're at it, take your children and yourself out of the home during the showing as well!
10. Lock up your valuables. It would be nice to think that no potential buyer would steal from your home, but it could happen. Be sure that anything easily removed is locked away for safe keeping. And be sure that your real estate agent gets anyone's contact information before they are allowed into your home.
Provided by NAR.
By banishing disorder and welcoming in neatness you can give your house an advantage over any competition who is lesser prepared.
2. After decluttering, the next step is to clean. In the same sense that decluttering is removing "you" from the potential home of another, cleaning is removing your grimy mark. Have carpets cleaned, wax the floors, and remove any odors of pets or smoking.
3. Luxurious bathrooms are a must. A bathroom that is clean and full of comfort is appealing to most every buyer. Arrange new towels and rugs, as well as burn fresh smelling candles. Consider adding rich decor, such as paintings.
4. Windows that shine. We can become desensitized to the finer details of our home, but buyers will hone in on each and every imperfection. Be sure that during your cleaning and decluttering, you don't forget to wash your windows. This way buyers will be able to focus their attentions on the beautiful grounds of your property, as opposed to the spots on the glass.
5. Let there by light. Burned out bulbs can make rooms look dark and dingy. Consider buying eco-friendly fluorescent or LED lights for use in your home.
6. Minor repairs are important. There are buyers who are turned off by even minor repairs. They see that loose cabinet door or that warped deck board as a two-fold evil. Either the house has been poorly cared for with bigger repairs waiting for discovery under the surface, or that the home may be too much work for them.
7. Don't neglect your yard. For many buyers, a yard is an extension of the home. Be sure that for each showing, your yard is freshly mowed and any debris, trash, or clutter (toys, tools, etc) are put away. A great way to make flower beds appear neat and well tended is to add mulch. Clean off sidewalks with a quick powerwash.
8. Add punches of seasonal color. Even if you aren't a garden guru, you can still plant low maintenance flowers in beds and pots. Some examples of low maintenance flowering plants are: petunias, pansies, and vincas.
9. A petless home. We all love our pets, sometimes like they're our own children. But they should be safely at a friend's house or kennel during showings. While you're at it, take your children and yourself out of the home during the showing as well!
10. Lock up your valuables. It would be nice to think that no potential buyer would steal from your home, but it could happen. Be sure that anything easily removed is locked away for safe keeping. And be sure that your real estate agent gets anyone's contact information before they are allowed into your home.
Provided by NAR.
Tuesday, April 13, 2010
Appraisal is the key
Many sellers think that the price of their home is determined solely by what they are willing to accept and what the buyer is willing to pay. However, there is one more variable that can affect the sale of a home assuming that a bank loan is involved -- the lender's appraisal.
To protect the interest of their investors, the buyer's mortgage lender hires a licensed appraiser to give an independent, objective opinion of what the property is worth. The appraiser compares the house with similar homes in the neighborhood that have recently sold. Square footage, amenities and the condition of the home are taken into account. Renovations and home improvements made by the seller usually add value to the home, while defects such as needed repairs or code violations decrease the property's value. The seller's real estate agent can provide the appraiser with up-to-date information about neighboring homes that have sold to support the seller's asking price.
www.pameladubois.com
To protect the interest of their investors, the buyer's mortgage lender hires a licensed appraiser to give an independent, objective opinion of what the property is worth. The appraiser compares the house with similar homes in the neighborhood that have recently sold. Square footage, amenities and the condition of the home are taken into account. Renovations and home improvements made by the seller usually add value to the home, while defects such as needed repairs or code violations decrease the property's value. The seller's real estate agent can provide the appraiser with up-to-date information about neighboring homes that have sold to support the seller's asking price.
www.pameladubois.com
Saturday, April 3, 2010
Common Selling Mistakes
Mistake #1 -- Placing the Wrong Price on Your Property
Every seller obviously wants to get the most money for his or her product. Ironically, the best way to do this is NOT to list your product at an excessively high price! A high listing price will cause some prospective buyers to lose interest before even seeing your property. Also, it may lead other buyers to expect more than what you have to offer. As a result, overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price.
Mistake #2 -- Mistaking Re-finance Appraisals for the Market Value
Unfortunately, a re-finance appraisal may have been stated at an untruthfully high price. Often, lenders estimate the value of your property to be higher than it actually is in order to encourage re-financing. The market value of your home could actually be lower. Your best bet is to ask your realtor for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.
Every seller obviously wants to get the most money for his or her product. Ironically, the best way to do this is NOT to list your product at an excessively high price! A high listing price will cause some prospective buyers to lose interest before even seeing your property. Also, it may lead other buyers to expect more than what you have to offer. As a result, overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price.
Mistake #2 -- Mistaking Re-finance Appraisals for the Market Value
Unfortunately, a re-finance appraisal may have been stated at an untruthfully high price. Often, lenders estimate the value of your property to be higher than it actually is in order to encourage re-financing. The market value of your home could actually be lower. Your best bet is to ask your realtor for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.
Friday, April 2, 2010
When you’re selling your home, the price you set is a critical factor in the return you’ll receive. That’s why you need a professional evaluation from an experienced Realtor. This person can provide you with an honest assessment of your home, based on several factors including:
* Market conditions
* Condition of your home
* Repairs or improvements
* Time frame
In real estate terms, market value is the price at which a particular house, in its current condition, will sell within 30 to 90 days.
If the price of your home is too high, several things could happen:
* Limits buyers. Potential buyers may not view your home, because it would be out of their buying range.
* Limits showings. Other salespeople may be less reluctant to view your home.
* Used as leverage. Other Realtors may use this home to sell against homes that are better priced.
* Extended stay on the market. When a home is on the market too long, it may be perceived as defective. Buyers may wonder, “what’s wrong,” or “why hasn’t this sold?”
* Lower price. An overpriced home, still on the market beyond the average selling time, could lead a lower selling price. To sell it, you will have to reduce the price, sometimes, several times. In the end, you’ll probably get less than if it had been properly priced at the start.
* Wasted time and energy. A bank appraisal is most often required to finance a home.
* Market conditions
* Condition of your home
* Repairs or improvements
* Time frame
In real estate terms, market value is the price at which a particular house, in its current condition, will sell within 30 to 90 days.
If the price of your home is too high, several things could happen:
* Limits buyers. Potential buyers may not view your home, because it would be out of their buying range.
* Limits showings. Other salespeople may be less reluctant to view your home.
* Used as leverage. Other Realtors may use this home to sell against homes that are better priced.
* Extended stay on the market. When a home is on the market too long, it may be perceived as defective. Buyers may wonder, “what’s wrong,” or “why hasn’t this sold?”
* Lower price. An overpriced home, still on the market beyond the average selling time, could lead a lower selling price. To sell it, you will have to reduce the price, sometimes, several times. In the end, you’ll probably get less than if it had been properly priced at the start.
* Wasted time and energy. A bank appraisal is most often required to finance a home.
Thursday, March 18, 2010
Shortgage of good properties
What exactly is a good property? A good property to an investor is completely different than a good property to a first time home buyer. There are a lot of short sales and foreclosures out there. Those are quite possibly great properties for investors to take advantage off in this market. However, the properties that are just a regular sale (not a short sale or foreclosure) is in high demand if it's priced right and ready to move in. We are again seeing multiple offers on these properties. Offers to full price. Yes, that's the market. It's busy and whether it's a rush to get the tax credit or that the market is back is unknown. I guess we'll find out after the tax credit deadlines. A busy Spring market is what we need and have at this time.
Friday, March 12, 2010
Is it still a buyer's market?
There is a lot going on with the Real Estate market right now. From first time home buyers trying to get into the game fast before the tax credit expires to making sure of taking advantage of the low interest rates before it goes up.
There seems to be a lack of inventory to take care of all these buyers. Thus causing multiple offers on properties. Buyers are finding they are loosing out because they are not offering full price. It is still hard to believe that the market has changed that much where they have to offer full price or above full price to get the house. We're hoping this continues after April and the market continues on the busy cycle.
There seems to be a lack of inventory to take care of all these buyers. Thus causing multiple offers on properties. Buyers are finding they are loosing out because they are not offering full price. It is still hard to believe that the market has changed that much where they have to offer full price or above full price to get the house. We're hoping this continues after April and the market continues on the busy cycle.
Wednesday, March 3, 2010
Financing in today's real estate market
Financing has become the biggest headache in today's market. Lender tightening on buyers' qualifying criteria and on appraisals continues to be an issue. And, the tightening isn't over yet. FHA is popular with low-cash-down buyers. The default rate on these 3-5 percent cash down payment loans is rising. FHA may change their guidelines this year.
Buyers can save themselves a lot of grief by making sure they're qualified for the financing they need before making an offer. Have your credit checked. This can keep you from qualifying for the best mortgage at the lowest interest rate.
It is not uncommon for buyers to be told, everything is okay with their loan and they will settle in a couple of days, only to find out in a couple of days that underwriting needs one more piece of information from them. An experienced mortgage broker, lender and loan officer who can anticipate what underwriting will require is very important.
An offer made contingent on the sale of the buyers' home is riskier than one that's not contingent. Before sellers accept a contingent-sale offer, they should make sure the buyers have a home that's priced right for the market. If the buyers' home doesn't sell, it could waste a lot of time for nothing.
Always expect the unexpected.
Buyers can save themselves a lot of grief by making sure they're qualified for the financing they need before making an offer. Have your credit checked. This can keep you from qualifying for the best mortgage at the lowest interest rate.
It is not uncommon for buyers to be told, everything is okay with their loan and they will settle in a couple of days, only to find out in a couple of days that underwriting needs one more piece of information from them. An experienced mortgage broker, lender and loan officer who can anticipate what underwriting will require is very important.
An offer made contingent on the sale of the buyers' home is riskier than one that's not contingent. Before sellers accept a contingent-sale offer, they should make sure the buyers have a home that's priced right for the market. If the buyers' home doesn't sell, it could waste a lot of time for nothing.
Always expect the unexpected.
Friday, February 26, 2010
Tax Credit
Qualified 2009 and 2010 first-time home buyers can get up to 10% of the home's purchase price or a maximum of $8,000. In November 2009, legislation extended a tax credit of up to $6,500 (or up 10% of the home's purchase price) to long-time residents of the same primary residence if they purchase a new main home. To qualify, eligible taxpayers must show that they lived in their previous homes for a five-consecutive-year period during the eight-year period ending on the closing date of the new home.
www.dreamhomesbypamela.com
www.dreamhomesbypamela.com
Monday, February 22, 2010
Home Warranty
By purchasing a Home Warranty, you can protect yourself against unexpected and potentially expensive home repairs. Depending on the plan you select, coverage will include mechanical breakdowns in major systems such as plumbing, electrical, heating, and air conditioning, as well as major household appliances such as the oven, refrigerator, washer, and dryer.
And when you sell your home, statistics show that over 80% of buyers prefer a warranted home. Homes with a warranty also sell faster and at higher prices.
http://www.dreamhomesbypamela.com
And when you sell your home, statistics show that over 80% of buyers prefer a warranted home. Homes with a warranty also sell faster and at higher prices.
http://www.dreamhomesbypamela.com
Thursday, February 18, 2010
Selling your home made easier
Today, the home that stands out among similarly priced houses is the home that sells. Why? Because it makes a good first impression that lasts right to the settlement table.
You may not be able to improve the market value of your house (finish basement, remodel kitchen, etc.), but you can improve its marketability. And usually this can be done with more elbow grease than hard cash. The key is to put yourself in the buyer’s shoes. In fact, if you drop by some open houses (you may soon be a buyer yourself), you’ll pick up some pointers. Then practice making your house as appealing and uncluttered as the home you wish to buy.
You may not be able to improve the market value of your house (finish basement, remodel kitchen, etc.), but you can improve its marketability. And usually this can be done with more elbow grease than hard cash. The key is to put yourself in the buyer’s shoes. In fact, if you drop by some open houses (you may soon be a buyer yourself), you’ll pick up some pointers. Then practice making your house as appealing and uncluttered as the home you wish to buy.
Tuesday, February 16, 2010
Washington Area RE in recovery
The Washington area housing market appears to be in recovery. Home prices in the metro are slightly higher than they were one year ago, and the 4th quarter shows increased volume from last year. The Federal $8,000 tax credit for first-time homebuyers has been successful at luring reluctant buyers off the sidelines. This tax credit, coupled with near-record-low interest rates, has continued to spur buyer activity
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