Saturday, April 30, 2011
Maryland Real Estate by Pamela DuBois: Buying versus renting
Maryland Real Estate by Pamela DuBois: Buying versus renting: "It is cheaper to buy a home than to rent one in 39 of the nation's 50 largest cities. The median list price with the median rent on two-bed..."
Buying versus renting
It is cheaper to buy a home than to rent one in 39 of the nation's 50 largest cities.
The median list price with the median rent on two-bedroom apartments, condominiums and town homes listed are close enough that owning makes more sense.
With home prices nearing a double dip and more foreclosures expected to flood the housing market over the next two years, the decision between renting and buying a home across most of the country has clearly moved in favor of buying.
As we head into the summer buying season, those looking to buy a home should be encouraged by improvements in the market and feel optimistic about their chances of finding an affordable home -- much more so than in previous years.
Interest rates is the lowest it's been in DECADES. Not to mention the homes prices and the deals that are to be made in this market. Also considering tax benefits for owning your own home as oppose to renting.
The median list price with the median rent on two-bedroom apartments, condominiums and town homes listed are close enough that owning makes more sense.
With home prices nearing a double dip and more foreclosures expected to flood the housing market over the next two years, the decision between renting and buying a home across most of the country has clearly moved in favor of buying.
As we head into the summer buying season, those looking to buy a home should be encouraged by improvements in the market and feel optimistic about their chances of finding an affordable home -- much more so than in previous years.
Interest rates is the lowest it's been in DECADES. Not to mention the homes prices and the deals that are to be made in this market. Also considering tax benefits for owning your own home as oppose to renting.
Thursday, April 28, 2011
Maryland Real Estate by Pamela DuBois: Tips for First time buyers - 10 commandments
Maryland Real Estate by Pamela DuBois: Tips for First time buyers - 10 commandments: "A good friend shared this with me today. Things that you shouldn't do if you're in the process of getting qualified to buy a home. These a..."
Tips for First time buyers - 10 commandments
A good friend shared this with me today. Things that you shouldn't do if you're in the process of getting qualified to buy a home. These are very important and I'd like to share with you.
1. Thou Shalt NOT change jobs or become self employed
2. Thou Shalt NOT buy a Car, Truck or Van unless you plan to live in it
3. Thou Shalt NOT use credit cards or let payments fall behind
4. Thou Shalt NOT spend the money you have saved for your down payment
5. Thou Shalt NOT omit debts or liabilities from your loan application
6. Thou Shalt NOT buy furniture even on deferred payment plans until after the closing or purchase anything on credit until after the loan closing
7. Thou Shalt NOT originate any new inquiries against your credit report
8. Thou Shalt NOT make large deposits into or out of your checking account with out consulting your loan officer
9. Thou Shalt NOT change bank accounts
10. Thou Shalt NOT Co-sign a loan for anyone
These things are very important in making sure you stay qualified for the home you are buying. Believe me, I've seen so many of these done. Congratulations of your home purchase.
1. Thou Shalt NOT change jobs or become self employed
2. Thou Shalt NOT buy a Car, Truck or Van unless you plan to live in it
3. Thou Shalt NOT use credit cards or let payments fall behind
4. Thou Shalt NOT spend the money you have saved for your down payment
5. Thou Shalt NOT omit debts or liabilities from your loan application
6. Thou Shalt NOT buy furniture even on deferred payment plans until after the closing or purchase anything on credit until after the loan closing
7. Thou Shalt NOT originate any new inquiries against your credit report
8. Thou Shalt NOT make large deposits into or out of your checking account with out consulting your loan officer
9. Thou Shalt NOT change bank accounts
10. Thou Shalt NOT Co-sign a loan for anyone
These things are very important in making sure you stay qualified for the home you are buying. Believe me, I've seen so many of these done. Congratulations of your home purchase.
Wednesday, April 27, 2011
Maryland Real Estate by Pamela DuBois: Real Estate by Pam: Help someone avoid foreclosure...
Maryland Real Estate by Pamela DuBois: Real Estate by Pam: Help someone avoid foreclosure...: "Real Estate by Pam: Help someone avoid foreclosure. : 'Many people have the impression that most real estate agents only care about themselv..."
Tuesday, April 26, 2011
Maryland Real Estate by Pamela DuBois: What to do if you are selling your home in today's...
Maryland Real Estate by Pamela DuBois: What to do if you are selling your home in today's...: "In today's super-competitive real estate market, any little edge to help potential buyers envision themselves in the house you're trying to ..."
Monday, April 25, 2011
Maryland Real Estate by Pamela DuBois: Short sales and avoiding foreclosure
Maryland Real Estate by Pamela DuBois: Short sales and avoiding foreclosure: "While the D.C. metro area is at the forefront of the housing recovery, even this market has some areas where distressed properties make up a..."
Short sales and avoiding foreclosure
While the D.C. metro area is at the forefront of the housing recovery, even this market has some areas where distressed properties make up a large portion of the market. Various sources suggest that in 2011, distressed properties could make up 35 percent or more of the nation’s home sales. While short sales and foreclosures aren’t for everyone, buyers should understand the impact of excluding these from their shopping lists.
Buyers should explore the nature of short sale transactions and why they should not be afraid to engage with these properties. With the right approach and reasonable expectations, buyers of short sales could land a deal—especially when coupled with today’s ideal affordability conditions. It's an opportunity for buyers to get a great deal and for sellers to avoid foreclosure.
Buyers should explore the nature of short sale transactions and why they should not be afraid to engage with these properties. With the right approach and reasonable expectations, buyers of short sales could land a deal—especially when coupled with today’s ideal affordability conditions. It's an opportunity for buyers to get a great deal and for sellers to avoid foreclosure.
Maryland Real Estate by Pamela DuBois: What to do if you are selling your home in today's...
Maryland Real Estate by Pamela DuBois: What to do if you are selling your home in today's...: "In today's super-competitive real estate market, any little edge to help potential buyers envision themselves in the house you're trying to ..."
What to do if you are selling your home in today's competitive Real Estate market
In today's super-competitive real estate market, any little edge to help potential buyers envision themselves in the house you're trying to sell can make a difference.
That's why I think "depersonalizing" when you put your house up for sale.
There are key steps -- besides putting a realistic, post-housing bubble asking price on the property -- that can make a house stand out amid an immense inventory of "for sale" signs.
Keep in mind that the buyer has a lot of choices in today's market. It's most likely the shiny apple that's going to get picked. It's the same with houses. It's to a seller's benefit to make their house shine. It absolutely is.
How do you make it shine?
For starters, take down the wallpaper. Removal of all wallpaper is huge. It's too individualized to the current owner's tastes. Buyers just do not like wallpaper. If you go into a wallpaper store, there are thousands of patterns. Why is that? It's because people are very particular.
Still, some sellers are trying to sell houses with a different kind of wallpaper in every room. That puts them at a disadvantage to a seller who has "neutralized" personal tastes by removing wallpaper and repainting with warmer colors.
Clutter also has to go.
De-cluttering is a real important step that I think a lot of sellers overlook. We live in a house differently than we sell it, and packing away things that you don't use gives the buyer the opportunity to walk through and mentally put their things in the house.
People also get blind to the clutter. Ninety-five percent of sellers need an honest but tough assessment of what needs to get put in storage.
Carpeting is another issue. Buyers frown on houses that have a different color of carpet in every room. If the carpet would cost too much to replace but it has hardwood floors underneath, the best option probably is to pull it up and show the floor.
But if you can afford to replace it before you put the home on the market, it will make a big difference.
It doesn't need to be real expensive carpet, just mid-grade, recommending beige as the color. Beige that flows right through, that will change the house's appearance like you wouldn't believe.
Evidence the house has been well-maintained is important, right down to the front door. With inventories high in a slower market, buyers expect to be able to move right in and not face neglected maintenance issues.
It sounds corny, but make sure your front door looks good and the doorbell works. It's one of those signs that, if you're not willing to have your front look good and doorbell work, what other things don't work?
A likely sale killer, pet odors.
Smelly properties don't sell.
In the end, it usually comes down to a house in the best condition at the best price.
Homes that are priced right vs. their immediate competitors that are in great condition are the ones that get 30 showings in the first week on the market and three offers. It happens.
Properties that are in so-so condition and priced the same or higher than other competing listings are going to sit for a really long time and may never sell.
So take the time to make your home stand out and you will be happy you did. Sell faster in a shorter period of time.
That's why I think "depersonalizing" when you put your house up for sale.
There are key steps -- besides putting a realistic, post-housing bubble asking price on the property -- that can make a house stand out amid an immense inventory of "for sale" signs.
Keep in mind that the buyer has a lot of choices in today's market. It's most likely the shiny apple that's going to get picked. It's the same with houses. It's to a seller's benefit to make their house shine. It absolutely is.
How do you make it shine?
For starters, take down the wallpaper. Removal of all wallpaper is huge. It's too individualized to the current owner's tastes. Buyers just do not like wallpaper. If you go into a wallpaper store, there are thousands of patterns. Why is that? It's because people are very particular.
Still, some sellers are trying to sell houses with a different kind of wallpaper in every room. That puts them at a disadvantage to a seller who has "neutralized" personal tastes by removing wallpaper and repainting with warmer colors.
Clutter also has to go.
De-cluttering is a real important step that I think a lot of sellers overlook. We live in a house differently than we sell it, and packing away things that you don't use gives the buyer the opportunity to walk through and mentally put their things in the house.
People also get blind to the clutter. Ninety-five percent of sellers need an honest but tough assessment of what needs to get put in storage.
Carpeting is another issue. Buyers frown on houses that have a different color of carpet in every room. If the carpet would cost too much to replace but it has hardwood floors underneath, the best option probably is to pull it up and show the floor.
But if you can afford to replace it before you put the home on the market, it will make a big difference.
It doesn't need to be real expensive carpet, just mid-grade, recommending beige as the color. Beige that flows right through, that will change the house's appearance like you wouldn't believe.
Evidence the house has been well-maintained is important, right down to the front door. With inventories high in a slower market, buyers expect to be able to move right in and not face neglected maintenance issues.
It sounds corny, but make sure your front door looks good and the doorbell works. It's one of those signs that, if you're not willing to have your front look good and doorbell work, what other things don't work?
A likely sale killer, pet odors.
Smelly properties don't sell.
In the end, it usually comes down to a house in the best condition at the best price.
Homes that are priced right vs. their immediate competitors that are in great condition are the ones that get 30 showings in the first week on the market and three offers. It happens.
Properties that are in so-so condition and priced the same or higher than other competing listings are going to sit for a really long time and may never sell.
So take the time to make your home stand out and you will be happy you did. Sell faster in a shorter period of time.
Saturday, April 23, 2011
Maryland Real Estate by Pamela DuBois: Sellers putting house on market - Worth-the-Price ...
Maryland Real Estate by Pamela DuBois: Sellers putting house on market - Worth-the-Price ...: "Cleaning and decluttering - Remove any personal items, unclutter countertops, organize closets and shelves, and make the home sparkling cle..."
March Real Estate numbers are up
After stumbling in February, sales of existing homes rose 3.7 percent in March from the month before, according to a National Association of Realtors report released today.
Completed sales of existing single-family homes, town homes, condominiums and co-ops fell 6.3 percent compared to March 2010 -- when a federal home buyer tax credit program elevated sales -- to a seasonally adjusted annual rate of 5.1 million units.
"With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain -- primarily because some buyers are finding it too difficult to obtain a mortgage," said Lawrence Yun, NAR's chief economist, in a statement.
He said the generally upward trend in monthly existing-home sales suggests the housing market is "clearly on a recovery path."
The median price for existing homes nationwide fell 5.9 percent year-over-year in March, to $159,600. Distressed properties, typically sold at a discount, made up 40 percent of sales last month, compared with 35 percent in March 2010.
Completed sales of existing single-family homes, town homes, condominiums and co-ops fell 6.3 percent compared to March 2010 -- when a federal home buyer tax credit program elevated sales -- to a seasonally adjusted annual rate of 5.1 million units.
"With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain -- primarily because some buyers are finding it too difficult to obtain a mortgage," said Lawrence Yun, NAR's chief economist, in a statement.
He said the generally upward trend in monthly existing-home sales suggests the housing market is "clearly on a recovery path."
The median price for existing homes nationwide fell 5.9 percent year-over-year in March, to $159,600. Distressed properties, typically sold at a discount, made up 40 percent of sales last month, compared with 35 percent in March 2010.
Friday, April 22, 2011
Real Estate by Pam: Real Estate by Pam: Sellers putting house on marke...
Real Estate by Pam: Real Estate by Pam: Sellers putting house on marke...: "Real Estate by Pam: Sellers putting house on market - Worth-the-Price ... : 'Cleaning and decluttering - Remove any personal items, unclutt..."
Real Estate by Pam: Sellers putting house on market - Worth-the-Price ...
Real Estate by Pam: Sellers putting house on market - Worth-the-Price ...: "Cleaning and decluttering - Remove any personal items, unclutter countertops, organize closets and shelves, and make the home sparkling cle..."
Sellers putting house on market - Worth-the-Price Fix-Ups
Cleaning and decluttering - Remove any personal items, unclutter countertops, organize closets and shelves, and make the home sparkling clean.
Brightening - Clean all windows inside and out, replace old curtains, update lighting fixtures, and remove anything that blocks light from the windows.
Smart Staging - Rearrange furniture, bring in new accessories and furnishings to enhance rooms, incorporate artwork, and play soft music in the background.
Landscaping enhancements - Punch up the home's curb appeal in the front and back yards by adding bark mulch, bushes, and flowers and ensuring current plants and grass are well-cared for and manicured.
Repairing electrical or plumbing - Fix leaks under then sinks, remove any mildew stains, and ensure all plumbing is in good working condition. Update the home's electrical with new wiring for modern appliances, fix any lights or outlets that don't work, and replace old plug points with new safety fixtures.
Replacing or shampooing dirty carpets - steam clean carpets, replace any worn carpets and repair any floor creaks.
Brightening - Clean all windows inside and out, replace old curtains, update lighting fixtures, and remove anything that blocks light from the windows.
Smart Staging - Rearrange furniture, bring in new accessories and furnishings to enhance rooms, incorporate artwork, and play soft music in the background.
Landscaping enhancements - Punch up the home's curb appeal in the front and back yards by adding bark mulch, bushes, and flowers and ensuring current plants and grass are well-cared for and manicured.
Repairing electrical or plumbing - Fix leaks under then sinks, remove any mildew stains, and ensure all plumbing is in good working condition. Update the home's electrical with new wiring for modern appliances, fix any lights or outlets that don't work, and replace old plug points with new safety fixtures.
Replacing or shampooing dirty carpets - steam clean carpets, replace any worn carpets and repair any floor creaks.
Real Estate by Pam: Help someone avoid foreclosure.
Real Estate by Pam: Help someone avoid foreclosure.: "Many people have the impression that most real estate agents only care about themselves and their commissions. I'm here to help you avoid fo..."
Real Estate by Pam: Financing for your first home
Real Estate by Pam: Financing for your first home: "Are you getting ready to buy your first home? It is important to know how much you can afford before you begin looking at properties. Talkin..."
Real Estate by Pam: Low interest rates - now closing costs help for bu...
Real Estate by Pam: Low interest rates - now closing costs help for bu...: "Fannie Mae is once again offering closing-cost assistance for buyers who close on a home in the mortgage giant's real-estate owned (REO) inv..."
Thursday, April 21, 2011
Real Estate by Pam: Financing for your first home
Real Estate by Pam: Financing for your first home: "Are you getting ready to buy your first home? It is important to know how much you can afford before you begin looking at properties. Talkin..."
Real Estate by Pam: Mortgage interest rates and credit scoring.
Real Estate by Pam: Mortgage interest rates and credit scoring.: "Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score range..."
Real Estate by Pam: Low interest rates - now closing costs help for bu...
Real Estate by Pam: Low interest rates - now closing costs help for bu...: "Fannie Mae is once again offering closing-cost assistance for buyers who close on a home in the mortgage giant's real-estate owned (REO) inv..."
Buying versus renting - reasons why you should buy a home instead of renting
Forget the finances for a minute. Why did you even begin to consider purchasing a home? The Fannie Mae National Housing Survey shows that four of the biggest reasons people buy a home have nothing at all to do with money. They want a place to raise and educate their children, a place where their family will feel safe, to have plenty of living space, and to have control over the space. What non financial benefits will your family gain from owning a home? Yours answers to that question should be the reason you decide to purchase or not. The bottom line is that the cost of a home will probably remain relatively unchanged even if prices continue to depreciate. Don't allow money to be the only factor in making the decision that's right for you.
Wednesday, April 20, 2011
If it's possible that prices will continue to fall, why should you buy now?
While price is the major concern for anyone selling a home, cost should be your primary concern as a buyer. That means you have to take into account what your monthly payment will be, considering not only the price of the home but also the interest of your mortgage. Waiting for prices to bottom out while rates are increasing can wind up costing more over the life of the mortgage. Fannie Mae, Freddie Mac, the National Association of Realtors, PMI, and the Mortgage Bankers Association are all projecting interest rates will increase over the next several quarters. It's best that you meet with your mortgage professional to help you determine what an interest rate increase will cost you based on the expected size of your loan. That will help you make a decision.
Saturday, April 16, 2011
Low interest rates - now closing costs help for buyers
Fannie Mae is once again offering closing-cost assistance for buyers who close on a home in the mortgage giant's real-estate owned (REO) inventory, but in most states will not bring back cash bonuses it previously paid to buyers' agents.
Buyers who put in initial offers on or after April 11, and close on the sale of a Fannie Mae HomePath property by June 30, will be eligible to receive up to 3.5 percent in closing-cost assistance.
The offer is only good for buyers who intend to occupy the home they are purchasing as their primary residence -- second homes and investor properties are not eligible.
Offers submitted before May 15 have the best chance of qualifying, Fannie Mae said, as offers submitted after that "are particularly questionable for closing" by the June 30 deadline.
Buyers who put in initial offers on or after April 11, and close on the sale of a Fannie Mae HomePath property by June 30, will be eligible to receive up to 3.5 percent in closing-cost assistance.
The offer is only good for buyers who intend to occupy the home they are purchasing as their primary residence -- second homes and investor properties are not eligible.
Offers submitted before May 15 have the best chance of qualifying, Fannie Mae said, as offers submitted after that "are particularly questionable for closing" by the June 30 deadline.
Saturday, April 9, 2011
Mortgage interest rates and credit scoring.
Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.
There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans.
There are many quick tricks to improve the credit score, and I can provide borrowers with more information on this subject. If necessary, I guide them to a reliable resource for credit remediation. If a borrower has to pay a higher interest rate to close a loan, the tarnished credit rating will begin to improve once mortgage payments are made on time and in full. If that is the case, my team and I will be on the watch to alert the borrower when an opportunity arises to refinance and get a lower interest rate.
Mortgage Interest Rates for Fixed Rate Mortgages are low. Call me to find out more...
There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans.
There are many quick tricks to improve the credit score, and I can provide borrowers with more information on this subject. If necessary, I guide them to a reliable resource for credit remediation. If a borrower has to pay a higher interest rate to close a loan, the tarnished credit rating will begin to improve once mortgage payments are made on time and in full. If that is the case, my team and I will be on the watch to alert the borrower when an opportunity arises to refinance and get a lower interest rate.
Mortgage Interest Rates for Fixed Rate Mortgages are low. Call me to find out more...
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