Wednesday, August 22, 2007
Tuesday, August 21, 2007
Tips to get top dollar in a buyers market
We all know that we are currently in a buyer market and the slightest things you could do to your home could bring thousands of dollars more when you receive an offer from a potential buyer.
Here are a few suggestions:
1) Make sure your house is cleaner than you have ever had it. You may want to consider hiring a professional cleaning company that will look at the detailed spots around your house.
2) Once your house is clean, make sure to keep it that way. Make sure you can show the house with only a 10 or 15 minute window. A lot of buyers will drive the neighborhoods they want to live in and may even walk up and knock on the door to view the house. Be prepared to show your home at ANYTIME of the day.
3) Clear out a lot of the clutter you have around the house. If you don't have space to store your items, consider getting a small storage unit for a couple of months while the home is listed.
4) Consider using a professional staging company. They know what a buyer looks for in a home and will make sure your house is prepared in a way that makes a buyer feel at home when they previewing.
5) Make sure the front yard is clean at all times. Spends 15-20 minutes per day in the morning picking any trash and/or weeds that may be present. With the recent storms, weeds can pop up overnight. Also, if you have windows in your garage, keep them clean. When previewing homes, a buyer will scope out the front of the house while their Realtor is opening the lockbox.
6) Ask your friends and family for an "honest" opinion on what you could do to spruce up your home. Make sure they know you will not be offended, it's only business!
Remember, a first impression could mean the difference in receiving an offer from a buyer! Spend some time making sure your house is well prepared, at all times...
Here are a few suggestions:
1) Make sure your house is cleaner than you have ever had it. You may want to consider hiring a professional cleaning company that will look at the detailed spots around your house.
2) Once your house is clean, make sure to keep it that way. Make sure you can show the house with only a 10 or 15 minute window. A lot of buyers will drive the neighborhoods they want to live in and may even walk up and knock on the door to view the house. Be prepared to show your home at ANYTIME of the day.
3) Clear out a lot of the clutter you have around the house. If you don't have space to store your items, consider getting a small storage unit for a couple of months while the home is listed.
4) Consider using a professional staging company. They know what a buyer looks for in a home and will make sure your house is prepared in a way that makes a buyer feel at home when they previewing.
5) Make sure the front yard is clean at all times. Spends 15-20 minutes per day in the morning picking any trash and/or weeds that may be present. With the recent storms, weeds can pop up overnight. Also, if you have windows in your garage, keep them clean. When previewing homes, a buyer will scope out the front of the house while their Realtor is opening the lockbox.
6) Ask your friends and family for an "honest" opinion on what you could do to spruce up your home. Make sure they know you will not be offended, it's only business!
Remember, a first impression could mean the difference in receiving an offer from a buyer! Spend some time making sure your house is well prepared, at all times...
Monday, August 20, 2007
This weeks Home Stats (Homes Listed and Sold)
Date Range: Aug. 13-19, 2007
Total Properties Listed on the MLS: 56,304
Properties Listed this Week: 2684
Total Properties Sold this Week: 893
Total Properties Sold this Year: 38,652
Data provided by local MLS Data
Total Properties Listed on the MLS: 56,304
Properties Listed this Week: 2684
Total Properties Sold this Week: 893
Total Properties Sold this Year: 38,652
Data provided by local MLS Data
Sunday, August 19, 2007
Most Expensive Home Sale (Week of Aug 13-19)
Each Sunday I will feature the most expensive home that sold in the past week.
DATE OF SALE: AUG, 15 2007
LIST PRICE: $5,200,000
SALE PRICE: $4,783,000
DATE OF SALE: AUG, 15 2007
LIST PRICE: $5,200,000
SALE PRICE: $4,783,000
AREA: Paradise Valley - Doubletree & 56th St.
SQ. FT. - 8,163 FT.
SUBDIVISION - Equestrian Trails
Saturday, August 18, 2007
Where have the buyers gone?
Today I was having a conversation with a friend and he asked me "Where have all the buyers gone?"
I had 1 answer for him... They are tied up as sellers with a home currently on the market..
If you have a home listed on the market & you are not getting any prospective buyers, try lowering the price until you start getting some action. We are not expecting the market to swing for another 9mo to a year, maybe longer.
Why Lenders Are Going Under
Once a week I will feature a spot from our in-house lender, The Mortgage Advantage. This week they will discuss the latest shakeup in the Mortgage Industry.
Home Buyers that had loans with First Magnus, Great Southwest and all of their affiliates were left at the closing tables unable to get their keys because of lack of funds. And Countrywide accessed their entire credit line of 11.8 billion dollars. What is going on? All banks/lenders use credit lines to fund loans and wait for their investors to replenish the lines. If the loans are "agency”, Fannie Mae, Freddie Mac (conforming loan limits under $417,000), VA, FHA, as long as the loans meet their guidelines the credit lines get replenished quickly. Here's the rub... all loans over $417,000, home equity or purchase money seconds, non agency stated, option arms, quirky loans are now homeless. The investors of these programs have limped off into the sunset and have left these loans sitting on Countrywide’s, First Magnus, Great Southwest, and all of the other lenders that did non-agency loans, credit lines. First Magnus just ran out of money. Many lenders utilize Countrywide's programs and if Countrywide cannot fund their credit lines then they will not be able to replenish the other lenders that use their programs. Ouch! Will the Feds step in and save Countrywide if necessary?
FYI: After Thursday's global market turmoil, Uncle Ben and his crew dropped the primary discount rate, not the all important Fed funds rate, which affects all banks’ cost of funds. A discount rate cut only lowers the cost of emergency borrowing by institutions in distress. This was more a psychological move to tell the markets that the Feds are paying attention.
The Mortgage Advantage, Inc. is going strong! We have been in business for 12+ years and we are so grateful to our great leader/owner and all of our team and clients that have helped build our company. Thank you!
Ask us about our "911 Rescue" for your loan transactions!
Submitted by: Harold Perkins / The Mortgage Advantage, Inc.
Home Buyers that had loans with First Magnus, Great Southwest and all of their affiliates were left at the closing tables unable to get their keys because of lack of funds. And Countrywide accessed their entire credit line of 11.8 billion dollars. What is going on? All banks/lenders use credit lines to fund loans and wait for their investors to replenish the lines. If the loans are "agency”, Fannie Mae, Freddie Mac (conforming loan limits under $417,000), VA, FHA, as long as the loans meet their guidelines the credit lines get replenished quickly. Here's the rub... all loans over $417,000, home equity or purchase money seconds, non agency stated, option arms, quirky loans are now homeless. The investors of these programs have limped off into the sunset and have left these loans sitting on Countrywide’s, First Magnus, Great Southwest, and all of the other lenders that did non-agency loans, credit lines. First Magnus just ran out of money. Many lenders utilize Countrywide's programs and if Countrywide cannot fund their credit lines then they will not be able to replenish the other lenders that use their programs. Ouch! Will the Feds step in and save Countrywide if necessary?
FYI: After Thursday's global market turmoil, Uncle Ben and his crew dropped the primary discount rate, not the all important Fed funds rate, which affects all banks’ cost of funds. A discount rate cut only lowers the cost of emergency borrowing by institutions in distress. This was more a psychological move to tell the markets that the Feds are paying attention.
The Mortgage Advantage, Inc. is going strong! We have been in business for 12+ years and we are so grateful to our great leader/owner and all of our team and clients that have helped build our company. Thank you!
Ask us about our "911 Rescue" for your loan transactions!
Submitted by: Harold Perkins / The Mortgage Advantage, Inc.
Friday, August 17, 2007
How Important is a Home Warranty?
This topic will cover the importance of having a home warranty from a reputable company when you buy a new or resale home. The standard home warranty is a one-year service contract that protects a resale home buyer or current homeowner against the cost of unexpected repairs or replacement of major systems and appliances that break down due to normal usage. Coverage is also available to home sellers during the listing and escrow period to help them keep unforeseen breakdowns from potentially delaying the close of sale.
Basic Plans usually include:
Heating system, plumbing system, electrical system, water heater, oven/range/cook top, dishwasher, built-in microwave oven, garbage disposal, built-in whirlpool motor and pump, exhaust fan, garage door opener, and sump pump.
You will want to make sure to add coverage to your cooling system, pool and/or spa, refrigerator, and the washer and dryer.
Make sure make note of when your coverage expires and make sure to renew your plan before it overlaps. Most companies will not cover anything for the first 15-30 days.
I have personally used the following companies:
Old Republic - Plans start at $395 with a $55 service fee.
American Home Shield (AHS) - Prices vary by location, but should be between $300-$500 and a $55 service fee.
Make sure to do some research before choosing a home warranty company, visit the Better Business Bureau website and do a search on the company. Also ask your local Real Estate Professional who they recommend, they will know who to use and who not to use.
Basic Plans usually include:
Heating system, plumbing system, electrical system, water heater, oven/range/cook top, dishwasher, built-in microwave oven, garbage disposal, built-in whirlpool motor and pump, exhaust fan, garage door opener, and sump pump.
You will want to make sure to add coverage to your cooling system, pool and/or spa, refrigerator, and the washer and dryer.
Make sure make note of when your coverage expires and make sure to renew your plan before it overlaps. Most companies will not cover anything for the first 15-30 days.
I have personally used the following companies:
Old Republic - Plans start at $395 with a $55 service fee.
American Home Shield (AHS) - Prices vary by location, but should be between $300-$500 and a $55 service fee.
Make sure to do some research before choosing a home warranty company, visit the Better Business Bureau website and do a search on the company. Also ask your local Real Estate Professional who they recommend, they will know who to use and who not to use.
Thursday, August 16, 2007
What you must know about your credit BEFORE buying a home
Sometimes being approved for home buying can be difficult however, there are things you can do to be approved.
One of the greatest obstacles with home buying is having less than perfect credit. Credit is a huge advantage when buying a home so if you do have bad credit, before you start into the home-buying phase, take time to get copies of your credit report from the three main reporting agencies and cleanup discrepancies. Keep in mind that this effort can take years so be prepared to spend some time getting it in order.
There are things you should know before you venture out to buy your home:
· Payment history - No matter what type of loan you apply for, one of the first things any lender will look at is your payment history. If you have made payments on time and even paid off loans early, that's a bonus.
· Create a budget - This is highly recommended and will help you prepare for a home loan as well as keep you on track once you've purchased your home. If at any time you run into a problem and start to fall behind in payments, it's very important to contact your lender to let them know. In almost every case, the lender will gladly work with you to keep you from losing your home.
· Credit Counseling - Sometimes people set up budgets with the best intentions but then slip off their schedule. There are credit counseling services that can help by setting up payment plans to help you stay on budget or get you out of debt. Lenders don't want you to lose your house no more than you want to lose it. Not all lenders will work with credit counseling services, but it's always an option to ask for.
· Bankruptcies, tax liens, and foreclosures can haunt you for years. Most stay on your credit report for up to ten years and can have a negative impact on purchasing a home. However, if you stay up to date on payments for two to three years after running into one of these situations, with a strong letter of explanation and the proof that you've been working to stay on target, lenders will work with you. It may take a little more work, but it is possible.
· Debt Consolidation - This is another option for reducing your debt to buy a house. In this case, the balance of your debt remains the same but companies are willing to lower interest rates, which do two things - they help lower your outgoing monthly payment and, they lower the overall balance you will be paying. If you have a lot of debt and need to bring your debt to income ratio down in order to qualify for a house, this might be a consideration. The normal ratio is what's called "28/36",meaning lenders believe you cannot spend more than 28% of your gross income for housing expenses and that the total amount of debt payments cannot exceed 36% of your income for a normal 10% down payment loan.
· Flexible Guidelines - Lenders are becoming more and more flexible as a way of getting people approved for home loans. The way they do that is by allowing a greater percentage of monthly income to be used toward the mortgage payment.
· Pay-off Options - If you plan to pay off some of your debt prior to applying for a home loan, consider going after the ones with the highest balances first. Although it's nice to pay off credit cards, available credit puts a person in risk of recharging after the home loan goes through and may actually hurt you in the approval process.
· Near Pay-off or Minimum Payment- If you are close to having a loan paid off, often times a lender will overlook this debt when looking at the ratios. In addition, lenders don't look favorably at loans where only the minimum payments are made.
· FHA Changes - Recently the Federal Housing Administration, FHS, has created new mortgage programs for potential homebuyers. This means that single-family closing costs can be 100% financed where the borrower doesn't have to come up with so much money to close the deal.
· First-time Homebuyers - There are new programs with the Federal National Mortgage Association, Fannie Mae, to help first-time homebuyers, which allow for slightly more debt when qualifying for a loan, and raise the percentage of gross monthly income that borrowers can spend on housing payments.
· Affordable Interest Rates - This helps more people qualify when buying a new home or larger home, as well as lenders providing more attractive mortgage offers.
· Computer Programs Rate Borrowers- A computerized system called "credit scoring". This new way of assessing one's ability to qualify for a loan still relies on the same information but this new systems helps determine who will default on a loan. To do this, a numerical score is assigned to each factor and then calculated.
The bottom line is getting your credit in order and asking your lender for options.
If you would like help with your credit, please let me know.
One of the greatest obstacles with home buying is having less than perfect credit. Credit is a huge advantage when buying a home so if you do have bad credit, before you start into the home-buying phase, take time to get copies of your credit report from the three main reporting agencies and cleanup discrepancies. Keep in mind that this effort can take years so be prepared to spend some time getting it in order.
There are things you should know before you venture out to buy your home:
· Payment history - No matter what type of loan you apply for, one of the first things any lender will look at is your payment history. If you have made payments on time and even paid off loans early, that's a bonus.
· Create a budget - This is highly recommended and will help you prepare for a home loan as well as keep you on track once you've purchased your home. If at any time you run into a problem and start to fall behind in payments, it's very important to contact your lender to let them know. In almost every case, the lender will gladly work with you to keep you from losing your home.
· Credit Counseling - Sometimes people set up budgets with the best intentions but then slip off their schedule. There are credit counseling services that can help by setting up payment plans to help you stay on budget or get you out of debt. Lenders don't want you to lose your house no more than you want to lose it. Not all lenders will work with credit counseling services, but it's always an option to ask for.
· Bankruptcies, tax liens, and foreclosures can haunt you for years. Most stay on your credit report for up to ten years and can have a negative impact on purchasing a home. However, if you stay up to date on payments for two to three years after running into one of these situations, with a strong letter of explanation and the proof that you've been working to stay on target, lenders will work with you. It may take a little more work, but it is possible.
· Debt Consolidation - This is another option for reducing your debt to buy a house. In this case, the balance of your debt remains the same but companies are willing to lower interest rates, which do two things - they help lower your outgoing monthly payment and, they lower the overall balance you will be paying. If you have a lot of debt and need to bring your debt to income ratio down in order to qualify for a house, this might be a consideration. The normal ratio is what's called "28/36",meaning lenders believe you cannot spend more than 28% of your gross income for housing expenses and that the total amount of debt payments cannot exceed 36% of your income for a normal 10% down payment loan.
· Flexible Guidelines - Lenders are becoming more and more flexible as a way of getting people approved for home loans. The way they do that is by allowing a greater percentage of monthly income to be used toward the mortgage payment.
· Pay-off Options - If you plan to pay off some of your debt prior to applying for a home loan, consider going after the ones with the highest balances first. Although it's nice to pay off credit cards, available credit puts a person in risk of recharging after the home loan goes through and may actually hurt you in the approval process.
· Near Pay-off or Minimum Payment- If you are close to having a loan paid off, often times a lender will overlook this debt when looking at the ratios. In addition, lenders don't look favorably at loans where only the minimum payments are made.
· FHA Changes - Recently the Federal Housing Administration, FHS, has created new mortgage programs for potential homebuyers. This means that single-family closing costs can be 100% financed where the borrower doesn't have to come up with so much money to close the deal.
· First-time Homebuyers - There are new programs with the Federal National Mortgage Association, Fannie Mae, to help first-time homebuyers, which allow for slightly more debt when qualifying for a loan, and raise the percentage of gross monthly income that borrowers can spend on housing payments.
· Affordable Interest Rates - This helps more people qualify when buying a new home or larger home, as well as lenders providing more attractive mortgage offers.
· Computer Programs Rate Borrowers- A computerized system called "credit scoring". This new way of assessing one's ability to qualify for a loan still relies on the same information but this new systems helps determine who will default on a loan. To do this, a numerical score is assigned to each factor and then calculated.
The bottom line is getting your credit in order and asking your lender for options.
If you would like help with your credit, please let me know.
Wednesday, August 15, 2007
Open Houses - Good or Bad Idea...
Lately, I have found myself in many conversations about if hosting an Open House is a good idea and a waste of time.
Here is my opinion... I feel that an Open House can be effective if you market it to those that may be in the market to buy homes. There are a lot of agents that will just put out a few signs and wonder why they are not getting very much traffic. Well, it takes more than that, there are other ways that you can get your Open House out there, here are a few...
1) Post an ad on Craigslist under Housing, you will be surprised on how many people use Craigslist to search for homes.
2) If your property is close to an apartment complex, make sure your signs cover the exits. You will catch tenants leaving for the day and will stop by to see what is out there.
3) Make sure you let the neighbors know that you are hosting an Open House. Try going to the neighborhood 1 day earlier and handout flyers on the door advertising the Open House and for them to invite their friends and family.
These are just a few of the many marketing techniques you could use, just be creative and you will notice more traffic then you are use to.
Make sure to get the following information from each visitor and add them to your database and keep in touch with them, they will eventully be ready to buy a home. Name, Address, Phone Number, Email Address, and how they heard about the Open House.
Here is my opinion... I feel that an Open House can be effective if you market it to those that may be in the market to buy homes. There are a lot of agents that will just put out a few signs and wonder why they are not getting very much traffic. Well, it takes more than that, there are other ways that you can get your Open House out there, here are a few...
1) Post an ad on Craigslist under Housing, you will be surprised on how many people use Craigslist to search for homes.
2) If your property is close to an apartment complex, make sure your signs cover the exits. You will catch tenants leaving for the day and will stop by to see what is out there.
3) Make sure you let the neighbors know that you are hosting an Open House. Try going to the neighborhood 1 day earlier and handout flyers on the door advertising the Open House and for them to invite their friends and family.
These are just a few of the many marketing techniques you could use, just be creative and you will notice more traffic then you are use to.
Make sure to get the following information from each visitor and add them to your database and keep in touch with them, they will eventully be ready to buy a home. Name, Address, Phone Number, Email Address, and how they heard about the Open House.
Tuesday, August 14, 2007
Chandler Among the Hardest Hit with Forclosures
Foreclosure notices increased an average 183 percent in Chandler and Sun Lakes in the first six months of this year compared to the same period a year earlier. Areas of Chandler in ZIP codes 85225 and 85249 were hardest hit.
Notices also jumped 240 percent in Gilbert and Ahwatukee Foothills, 116 percent for Mesa and 97 percent for Tempe, according to The Information Market.
With a lot of ARM Mortgage set to renew, we are sure to see these numbers increase over the next year.
For a FREE list of Foreclosures in your area, please visit http://www.quicksaleforeclosures.com/
Notices also jumped 240 percent in Gilbert and Ahwatukee Foothills, 116 percent for Mesa and 97 percent for Tempe, according to The Information Market.
With a lot of ARM Mortgage set to renew, we are sure to see these numbers increase over the next year.
For a FREE list of Foreclosures in your area, please visit http://www.quicksaleforeclosures.com/
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