30 Year Fixed Mortgage Rates Down

When you take out a loan, your lender will review your credit report from independent companies that monitor your credit.

Your credit report is a compilation of three key factors: your credit history, information from employers, and financial information gathered from public records.

Taken together, all this information is used to create your credit score, which is usually between 300 and 800.

The higher your score, the more likely you will be to get favorable loan terms from your lender.

Here are a few things to keep in mind to improve your credit score:

• Be consistent and punctual when it comes to payments
• Keep your balances well below the maximum. Accounts with high balances can hurt your credit score
• Don't take out more credit cards than you need
• Be careful of opening or closing accounts near your closing date, and ...
• Watch your credit to debt ratio

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1. Change locks Unfortunately, you can’t assume the keys you’re holding are the only keys to your home that could exist out there. Play it safe and have all the locks changed as soon as you can.

2. Re-program garage door opener Again, it’s better to be safe than sorry when it comes to the security of your new home. Most garage door remotes have a reset button that you can hold down to reprogram the opener. If you want more concise instructions, note the make and model of the opener and contact the company to walk you through the steps.

3. Replace furnace filter

Most manufacturers recommend that a furnace filter be changed once a month during the heating season to ensure the most efficient performance. While there are higher-quality filters that may not require monthly replacement, it’s still a good idea to check the filter monthly and, of course, replace it when you move into a new place.

4. Install new batteries in smoke alarm and carbon dioxide detector

You have no way of knowing when the batteries were last changed and if the home has been unoccupied, it’s probably been awhile. Test the alarm and detector and put new batteries in each. This investment of time and a few dollars is well worth it, given the stakes.

5. Replace toilet seat covers

We probably don’t need to go into specific details, but most people insist on swapping out toilet seats.

Bloomberg News – Mortgage Rates Fall to Lowest on Record, Freddie Mac Says – Lowest Since 1950s

Sept. 15 (Bloomberg) -- U.S. mortgage rates fell for a second week to the lowest on Freddie Mac records as a slowing economy and concerns that Europe’s debt crisis is worsening drove investors to the relative safety of Treasury bonds.

The average rate for a 30-year fixed loan dropped to 4.09 percent in the week ended today from 4.12 percent, Freddie Mac said in a statement today. That’s the lowest in the McLean, Virginia-based company’s records dating back to 1971. The average 15-year rate fell to 3.30 percent from 3.33 percent.

Yields on 10-year Treasuries, a benchmark for consumer loans including mortgages, are near all-time lows amid signs that the U.S. economic recovery has stalled and the euro region is struggling to contain its debt burden. Low borrowing costs have done little to improve the housing market as foreclosures mount and the unemployment rate remains above 9 percent.

Data from the National Bureau of Economic Research measuring Federal Housing Administration loans indicate that long-term borrowing costs are the lowest since the 1950s, according to Chad Wandler, a spokesman for Freddie Mac.

Mortgage applications rose for the first time in four weeks as rate declines encouraged purchases and refinancing, according to the Mortgage Bankers Association. A gauge of refinancing climbed 6 percent in the week ended Sept. 9, while the purchase index gained 7 percent, the Washington-based group said yesterday.

Please let me know if you have any questions or wpuld like to speak to a mortgage professional.

Guideline 1: Check your credit rating!

One of the first things lenders will check before loaning you money is your credit rating. If it’s good to excellent, your chances of borrowing money for a mortgage are very much improved. Currently, depending on circumstances, you need a credit score of at least 620 and the money for a down payment (the percentage varies with the type of loan).

If you have a credit score below the 620 benchmark, then additional documentation (and more time) will be required to prove to the lender that you're worthy of a loan - and even then there's no guarantee that the mortgage will be granted.

So, as you can see, it's important to know what your credit score is before you approach a lender. You can find out this information from one of the "Big Three" major credit reporting agencies shown below:

• Equifax (equifax.com)
• Experian (experian.com)
• Transunion (transunion.com)

If you're wondering exactly what such agencies do, the best explanation is that they act as a clearinghouse for lenders. That means they collect financial information. They then sell it to banks, credit card companies, mortgage companies and other lending agencies. In essence, lenders use that information to decide if you’re a good financial risk.

So, if you have a credit score of 620 or better, no problem! But what if that score is below 620? What can you do then? Follow the guideline below.

Guideline 2: Reduce or Eliminate Debt!

The only method of raising your credit rating is to pay off credit cards or any other kind of debt you have.

Now, no matter what you hear or see on television, radio or the Internet, there's no "magic bullet" for reducing or eliminating debt. It has been and always will be a matter of personal discipline on your part! You can accomplish that discipline by taking the following steps:

Step 1: Pay your bills on time—all the time.

Step 2: Don’t open unneeded credit card accounts to increase available credit.

Step 3: This is the most important step. You must figure out where you stand financially by budgeting. In other words, you have to reduce unnecessary expenditures so you can apply saved monies to your debt and improve your credit score.

In this step, you must analyze your current financial situation. The first question to ask yourself is, "How much debt is too much?"

There’s an easy formula for coming up with an answer to that question. It’s called the debt to income ratio. It’s a simple method of measuring your net monthly income against your debt.

For purposes of illustration, let's assume the following: Your net monthly income is $2,000. Your monthly debt payments are $500. Divide $500 by $2,000, and you’ve calculated your debt to income ratio:

500÷2000 =.25 (25%)

Financial experts generally agree that debt expenses should be 25% or less of your income. A ratio of 10% or less is great. Anything above 25% waves a red flag in the face of lenders in general. In that case, you definitely need to reduce or eliminate debt.

So, what is your debt to income ratio? Answer that question by doing the following:

• Review last month’s bills. Add up all the fixed expense items (rent, mortgage, car payments, child support, loan payments, etc.)
• Review your credit card bills. Add up the minimum payments owed on each card.
• Figure your monthly take-home pay (net salary).
• Now divide monthly fixed expenses by monthly income.

What percentage did you get? If it’s 25% or greater, then it's time to take action to reduce your debt. It’s time to budget! 

Okay, let's assume that your credit rating is in the good to excellent category and you have the money for a down payment on a house. That's great news!

But, you still need to stay within your means! So, upfront decide what you want in a home (two bedrooms, attached garage, etc.) and then stick to those guidelines!

Don't get swayed by an ultra-beautiful home with, say, four bedrooms and a state-of-the-art kitchen. If such a house is beyond your means, it won't look very beautiful when you can't make the monthly payments!

The best approach to take is to tell your realtor upfront about your guidelines and ask him or her to show you only homes that meet them.

Believe me, I or any other realtor love to work with customers who know what they want! It not only helps you but us as well because we can locate such properties faster and easier and get you into a new home that much more quickly!

Please contact me so I can answer any more questions you might have about buying a great new home within your means!

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By nature, garages are places where we store many things we don’t want or need in the house. They’re also places where oil and gasoline are spilled due to cars, mowers, snow blowers, roto-tillers, etc.

Garages tend to store toys, mementos and many other items that, at one time, we thought vitally important. Then, when we go through them, we wonder why in the world we thought they were so important in the first place!

Well, as you can guess, all those boxes, stains, smells, unorganized tools, etc., can add up to an unsightly mess in the eyes of potential buyers. So, that means it’s time for a cleanup and, just as important, a rigorous re-organization of the garage to make it “shine” in the eyes of buyers.

First:  
Go through all those boxes in your garage and sort out the items. Be ruthless and toss out anything that no longer has any use or meaning. Even better, donate items that are still useful to your favorite charity. You’ll feel great and make somebody else happy at the same time. By clearing out all the clutter, you’ll make it easier to take the next step.

Second:
Clean the garage as thoroughly as possible. Get rid of dust and dirt anywhere you find it. If you have minor oil/gas stains on the floor, you may be able to pressure wash them away. 

However, if they’re large and/or long-standing, then you’ll need to find a cleanser like TSP (trisodium phosphate) or specially-made cleansers like “Gunk,” “Swab,” etc. that can be found at paint/automotive stores or in sections of “big box” stores like Wal-Mart.

Third:
Consider a “garage organization” system. Usually, the cheapest ones consist of storage bins and wall hooks. But, if you want to spend the money, there are also ones available with wall panels and flooring.Depending on your needs, an organization system can range from approximately $40 to thousands. 

Simply google “garage organization systems,” and you’ll find plenty of links to companies selling these products.No matter what system you choose, it will definitely give your garage a clean and professional look.

I can’t stress how impressive it is to potential buyers to have a well-organized garage.

This tells them that you’re a person who takes care of every detail of your home and property.And that, in turn, lets them know that buying your home will be a great investment on their part and well worth the asking price.

Need more hints on how to spruce up your garage or any other part of your home and property? If so, contact me today.

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1. Green Design

Long before the economy reached where it is these days, the concept of energy-conserving, green living was already fast becoming mainstream.  Incorporating elements of green design into the kitchen is a hot trend that remains on the top of many industry experts’ to do list.  Using eco-friendly or recycled materials, bringing in energy-efficient appliances and incorporating natural sources of energy such as solar panels or skylights are some ways to implement green design into your kitchen space.

2. Elements of Nature

Bringing the outside in is a theme that will carry throughout the year and beyond.  As part of our love affair with all things green, elements of design that incorporate nature through things like pebbles embedded into walls, natural waterfalls, organic materials like bamboo and highlighting the colors of nature are popular.

3. Cool, Vibrant Color

Moving on from the tradition and very blah beiges, an influx of color has taken over as the new, hot trend in kitchen décor.  Splashes of oranges, reds, pinks and vibrant hues of blue and green – all draw attention to one of the most frequented spaces in the home.  Spanish tiles, painted cabinetry, unique backsplashes and, of course, display pieces and fixtures – are infuse color.  Warm and inviting, interesting and uplifting – lots of colors liven the space.  Spruce up the kitchen by using bold splashes of paint or wallpaper on one or two walls, and even the ceiling.

4. Raising Kitchens to New Heights

Gallery kitchens are seen more and more often, with taller cabinetry that reaches even greater heights than typically found in most kitchens.  Utilizing the wall space as an asset is particularly ideal for condos, apartment spaces or homes with smaller square footages such as those in big cities.  Gallery kitchen space is also a great transition from the main kitchen to the next room.

5. Dark, Exotic Finishes

Where white cabinets, light to medium counter tops, neutral walls and run-of-the-mill fixtures were once the norm, the new trend in both cabinetry and flooring is dark, natural finishes.  Balancing the dark elements of design with some neutral or metallic is a good idea but the overall shift toward espresso dark and chocolate brown looks are not only exotic but also practical. 

6. In the Age of Technology

In an age where everything depends on connectivity, we are seeing more kitchens with technology stations incorporated into the design and architecture.  Built-in desk space that provides homeowners with an area to write out bills, make phone calls, watch television, use the computer or sit back and relax, is a hot item lately.

7. Alternative Countertops

Keeping with the less formal look of many new kitchens lately, a new choice of countertops is soapstone.  Though granite remains the hottest option, homeowners are now turning to soapstone for its natural and more rustic feel.  The look especially complements kitchens with these days’ bright color schemes, as it offsets the heavy emphasis on color elsewhere in the space.

8. Customized Storage Solutions

There is never enough space and there is always room for improvement on how that space is organized.  Customized storage is particularly hot in kitchens as the new generations of foodies continues to breed, meaning that many unique and interesting tools, materials and appliances are used.  Storage solutions designed to accommodate a homeowner’s particular needs is currently on many people’s wish list.

9. Layers of Light

Gone are the days of just one ceiling light fixture and a hanging pendulum light over the kitchen table.  Now, multiple layers of light is the happening thing.  Providing new dimensions of aesthetic and functional design, there are several areas through which a kitchen can be illuminated.  Accent lighting installed under cabinets, along the sideboards and open cabinet interiors, task lighting designed to focus on a particular display area and varying levels of functional lighting give homeowners different degrees of light to choose from. 

10. Smart, Savvy Appliances

A streamlined wall of kitchen cabinets with hidden features creates a larger, fuller and more complete look.  Unlike the traditional kitchen space that is broken up by major appliances, the new trend that is incorporated in kitchens of all sizes and shapes is integrated appliances.  With the same exterior surface as the rest of the cabinets, integrated appliances are camouflaged, lending a customized look to the space.

11. High Glass is High Class

Glass tiling for kitchen backsplashes is a trend heavily used by top interior designers.  Lending a translucent and airy look that is not only classy and elegant, but also easy to maintain and practical – glass elements are the new neutral. 

12. Open Shelves

Gone with the old and in with the new cabinets that are unlike typical cabinets with no dimension that lack dimension and interest, incorporating open shelving into the kitchen is a trend that instantly enhances the space.  Open shelving allows homeowners to show off and display their wares while utilizing the storage space simultaneously.  Since there is a change from one cabinet to the next it lends an air of interest that is aesthetically pleasing.

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Believe me, your down payment on a new home affects nearly everything you can think of in the buying process - the loan programs you're able to qualify for, the size of the interest rate, the amount of closing costs, etc.

The basic rule is this: the more you have to put down on a down payment for a home, the more options you have!

This rule is true because, like all lenders, mortgage lenders dislike risk. They're in the business of making money by lending money. So, the more money you put down, the lower the risk, and the more lenders like your deal.

And, that's not all. If you have enough cash for a large down payment, then more choices open up to you! You can choose conventional fixed rate loans, adjustable rate mortgages, VA, FHA, graduated payment mortgages and all the variations of each of these programs.

By the way, when you combine a good-to-excellent credit score with a large down payment, you'll definitely get positive attention from loan officers!

Acceptable Sources for Down Payment Monies

In general, lenders want to see adequate funds available for a period of at least sixty (60) days in your account. The usual methods of proof of these funds are either a Verification of Deposit form or two months' worth of your most recent bank account statements.

So, if you're person who keeps money "under the mattress" or somewhere in your home, this isn't acceptable. It has to be deposited in an account (bank or investment) for at least two months (preferably longer).

In technical terms, this is called "seasoning." And the reason behind it is this: First, by having money in an account, it shows you have to ability and discipline to save money and, thus, are a good risk from the lender's point of view. Second, it demonstrates that the money is likely yours and not a personal loan from a family member or a friend. Lastly, and obviously, it shows you have enough money on hand for a down payment.

In general, here are sources you can use for a down payment:

• Checking account
• Savings account
• 401k account
• IRA account (have to meet specific guidelines)
• Money market account
• Stocks
• Bonds
• Mutual funds
• Certificates of deposit and other liquid assets.
• Sale of an asset, etc.

Frankly, in this New Age of Frugality, the safest method is to simply save the money for a down payment. This teaches you financial discipline which is good for all aspects of your life, and it means you don't have to rob other assets to pay the down payment.

I'd be happy to discuss and suggest many different ways of obtaining down payment money. Contact me today!

Even though the country is sitting still waiting for the recession to recede, homeowners and prospective homeowners are practically pacing back and forth during this nail-biting period when no one’s sure of anything.  You might think that there is absolutely no good reason to sell right now – but then, again, you may think it’s a perfectly good time.  No matter which side of the coin you’re on, there are valid arguments on both.  Here, we’ve assembled a list of tips on both ends of the spectrum and hope it’ll help you come to some sort of consensus on your real estate marketplace.

Yes, there has been activity in the real estate marketplace in general.  Don’t be surprised to hear that a good number of homeowners are opting to buy new properties, others are selling theirs and of course, others still are waiting it out, even if it means their property is currently suffering a loss.  Even though some of the sales are taking a bit longer than average, the sales are definitely there.

Now, if you’re like most people, you are just plain not sure what to do next.  So as you hang out with your friends and the conversation turns to real estate, you don’t know what to answer to the question that comes up, “Why would anyone sell at a time like this?”  Well.  We’ve got a few reasons to share with you.

1. Buyers have been shuffling money from their savings only to fund their properties – and they just don’t want to tap into their secondary resources like their retirement fund anymore.  Add negative cash flow to inflated expenses versus rental income – and you have a recipe that calls for SELLING.

2. People with no mortgage and some equity want to get that cash out of the property FAST and put it somewhere safer.  So the equation here is lower risk=lower return; they don’t want to take any chances and they’d rather sell to be on the safe side.

3. Homeowners feel they might as well cut their losses while they’re still ahead, instead of waiting 5-7-even 10 years for the market to turn around.  They are simply of tired of paying the negative cash flow month after month after month.

4. With interest rates as low as they are, buyers have a TOTAL advantage in this market, so naturally if you want to sell – DO it. There’s a good chance it’d be a successful sale.

Of course, there are many people sitting tight with their pocketbooks clamped shut and their doors locked, just waiting for the right time.  Here are a few things to know on why some people are NOT going to be selling anytime soon.

1. Some homeowners are banking on the fact that the market will make a speedy recovery, their equity will return and all will return back to normal soon enough.  Who knows?  It could happen.

2. Owners of multiple properties are getting great use of their vacation or second home – and figure that the enjoyment gained from the use of these places, far outweigh the negative cost to run those properties.  So even though they are experiencing losses every month, the price is worth the enjoyment.

3. Properties that generate a decent amount of rental income only need a little extra to top off the negative expenses and owners are willing to take the chance and wait the time out till the market gets better. 

The bottom line is, you have to decide what your situation is, what your priorities are and as you head toward a real estate goal, where you want to end up.  There’s a misconception that the real estate market is practically stalled right now.  This is so far from the truth.  Actually, the trend for the past several months, is that buyers are doing up contracts as we speak.  Contrary to popular belief, foreclosures are currently on the decline and not on the rise like most believe to be the truth.  In fact, short sales are on the rise.  When you factor in that aggressively priced properties are selling super fast and sellers are getting multiple offers on them, you can see that there definitely is activity in the real estate arena these days.

Obviously, the choice is yours and we hope we’ve effectively shared with you that you DO have choices in this market – and we’re here to help make sure you make the right ones for you.

A special thanks to Shady Brook Farm for letting us film there and participating in our video!

It’s that time of year again when everyone will be seen working on their yard! What exactly does your yard say about you? Is it messy, unkempt and in a total state of disarray? Or has it been meticulously manicured to a level that even glossy magazines couldn’t compete? No matter where you fit on the spectrum of the landscaping scales, there is no question that the exterior appearance of your home is an important one. Too many homeowners neglect to look after the very first noticeable part of their abode – so here’s how to make sure you are not one of them.

Time to Spring Clean Up Last Year’s Messes

That’s right. Very often by the time this year’s snow melts, we tend to find last year’s garden messes all over the place. Maybe that first snowfall was enough to make you hang up the rake and wait it out till the following season, but too often there are many things left behind. Anything from garden tools, piles of left over (and very moldy) mulch or an old garden statue that you meant to put away in the shed before the snow set in – all these things can tend to look very bad after a season of ice and cold. And if you’re in a warmer climate, things sitting in the yard for so long just keep gathering more dirt and grime, making your front (and back) yard look like a major eye sore.

Make a Plan, Check It Twice and Implement It

Many times an over-zealous homeowner will make a trip to the home and garden store, buy everything they see in the main aisles, that are currently being hyped by the store, and then end up back home with no plan in sight as to how to implement it. By carefully reviewing the space you have, taking notice of the areas that need more help than others and realizing where the opportunities lie for you to enhance your outdoor space, you will be in a better position in the long run. Use the help of the technicians and associates at the home and garden store, since they are very well versed with these projects and have a lot more experience.

Invest In Some Help

Unless you are an avid lawn and garden enthusiast, have all the time in the world or are just not too concerned about perfection, it would be a good idea to invest in some help. By hiring a landscaping company to jumpstart the look of your home’s exterior, you will benefit from the high-quality and often expensive equipment that you may not own plus the knowledge and expertise of skilled, quality craftsmen and women. Landscapers also offer a maintenance plan where they come during the week at pre-set times and make sure the lawn is kept up.

Water the Plants, Shrubs and Trees

Thirsty vegetation can be seen from a mile away. Instead of having dry, cracked and brittle brown leaves and grass, be sure to water your lawn, the surrounding leaves and greenery with enough water to sustain it. Whether you install a complex sprinkler system or a purchase a $20 single unite that you need to manually move around throughout the day and weekend, the important thing is that your greens stay green.

Make the Space Pretty, Or At Least Easy on the Eyes

With just a few simple enhancements you can make all the difference in the curb appeal of your home. Retouching the fence paint, trimming the hedges to a reasonable height, removing all extra items, planting seasonal plants and flowers (especially along the walkways) or including interesting garden elements – are all ways to enhance the space.

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As long as you realize that the landscaping of your home is just as important aesthetically as the interior, you will begin to make changes that will improve the overall look and feel of your house. Not only will it be more enjoyable to spend time outdoors, but it will also be a source of pride for you when visitors (and neighbors) comment on the fabulous look you have going!

If you’ve shopped for a home, chances are you’ve come across one that you really wish you hadn’t visited in the first place. True, houses for sale ought to have a certain “lived in” quality to them, because they are to be lived in after all, but the art of tactfully balancing just the right amount of homeliness with neutrality is not so simple. You need to know what you’re doing when you prepare to set up your house and show it to potential buyers. We’ve put together some great tips for home-sellers so you can get the same results you’d get by hiring a professional staging company.

Fix Up the Place

One of the biggest mistakes homeowners make before putting their house up for sale is to neglect areas in the house that need attention. Don’t leave that faulty step unrepaired, only for a potential buyer to step on, slide off of or worse, get injured on – FIX IT! You might think potential buyers won’t notice but they are walking around on your premises like hawks, noticing each little detail. The good news is that they are noticing the first-rate stuff too, so as long as you have the home’s amenities in order and other major areas in tip-top condition, you should be in good shape. Here’s how:

Get Rid of the Clutter

If you want to successfully sell your house, you need to get those potential buyers to imagine they already live there. Too much clutter, hobby-oriented items or personal possessions that most people may not be able to identify with, can easily get in the way of that vision. Organize things in stylish storage bins or better yet, have a garage sale before the open house and get rid of unwanted stuff. You have to move soon anyway, why not kill two birds with one stone? A clean and organized home will seem like a clean slate to buyers, who can then see themselves moving in without much hassle and settle in effortlessly.

Stay Neutral

Skip the tie and dye sofa cushions, shaggy 70s rug and don’t light incense on the day of your open house. While you’re at it, don’t fill the space with gender-specific things either. Buyers should walk into a neutral ground – literally. Light to medium colors, preferably in beige tones, are the simplest way to pull buyers’ attention away from other personal aspects of your home that they may not be able to identify with. Beige goes with almost anything so if someone considering purchasing your home can imagine their things in the space, then you’ve just crossed one of the most major hurdles in home-selling – making a buyer identify with the home.

Make It a Modern, Inviting Environment

If you don’t already have them, invest in a few modern decorative accessories to improve the look of your space while lending an air of style and taste and making it more enticing. It doesn’t have to take much but depending on how you set it up, you can enhance a given space with a few simple additions and deletions. Take your over-crowded study and rearrange the bookshelf to display only a few strategic but essential books, like a leather-bound set of encyclopedia or some literature classics. In the same way, leave a few children’s toys in a child’s room but be sure to display them tastefully.

Put a Few Finishing Touches in Place

The idea is that you want your house to be sold – and you probably want it sold fast. If you are careful to respect the people who are visiting your space to decide whether it’s the right one for them, then you are doing something that a lot of homeowners neglect to consider. Taking down a piece of controversial artwork that may make a potential purchaser uncomfortable could be the one bargaining chip that could make or break the sale. Arranging for all those who currently live in the home to be away during the open house and while showing the house being dressed in a way to present a good impression are also great ways to tip the scales in the right direction.

It’s very simple. You need to make the potential buyer feel right at home from the get-go. If from the moment they walk in and smell cinnamon cookies baking makes them wish this was already home – then you’re already two steps ahead and can call the open house a success! Of course, a signature on the dotted line is where the real success lies and as long as the buyer feels at home, chances are that if everything else lines up – the sale is a winner!

* See bottom of article for MLS Statistics.

How to Successfully Buy and Sell in Today’s Housing Market

As usual, there’s a lot of activity here in Bucks County, PA – and I’m here to keep you informed.  This year so far, we’ve seen lots of swing in terms of value determined by the sellers in our market.  We’re looking at a ten percent drop in sales so far but that’s countered by a strong inventory of over 4,000 homes at the moment.  A total of 770 homes have sold in 2011 AND you can still grab those super low interest rates before they disappear.

Sellers

The name of the game for sellers is activity. You need to generate traffic and buzz if you are going to generate offers. The three main things to pay attention to in this market are price, staging, and marketing. When so many homes are for sale, you have to make your home stand out in the crowd.

Pricing. The first way that potential buyers will find your house is by doing a search for homes in their price range. They will compare the statistics, location, and appeal of your home based on the bang they get for their dollar. Be sure to research homes that have sold recently and others that are for sale to compare square footage, room sizes, neighborhood, and perks and amenities to see how you compare. This is a price-driven market, so presenting a great value to home shoppers is the first way to get their attention. Sacrificing a few thousand dollars up front may cut your market time in half, which is worth a lot.

Also, if people are looking for a house from $200K to $250K, they won’t find your listing for $199,900. Sometimes you might want to consider rounding the price up to a nice round number that may get your home included in more searches. In this example, a $200K listing will be found by the people looking for $150K to $200K as well as the ones looking for $200K and above.

In any case, make very sure that you are priced right. Basing your price on the realities of today’s competitive market is not always easy, but it is the most important first step toward a successful sale.

Marketing. Only a real estate professional has access to all of the inside channels for marketing a home – and remember, almost all of your competition has enlisted the services of a professional. Making sure your home shows up in all of the databases that people search is vital, and having plenty of professional-quality photos in the listing is key as well. You will also want to have a nice fact sheet with photos, hold open houses, and get the word out to as many real estate agents and home buyers as possible. It takes more than a sign in the yard to sell a home, so make sure you don’t forget about the marketing piece.

Staging. You’ve built a nice fire with the right pricing and strategic marketing, and now the pot is starting to boil. People are coming to look at your house. Their impression of your home is the make-or-break part of their decision-making process. Your real estate agent can show you how to make the house ready for home shoppers.

Less is more, when it comes to staging. Less furniture, less personal memorabilia, less of a “lived-in” look will make the home feel warm and welcoming. Getting them emotionally hooked is a big step in getting an offer.

You should also consider doing some updates and cosmetic improvements that will make your home sparkle, both inside and out. Most people aren’t looking for a home improvement project. Get rid of the wallpaper and the purple paint in the kids’ bedroom and replace it with a warm and neutral paint. A carpet allowance is nice so people can pick out their own new carpeting, but a nice new neutral carpet can be very eye-catching and appealing to people too.
Fix the doors and knobs and screens, and do a little landscaping or painting outside. Depending on the price bracket your home is in, you may even want to redo the bathroom, get new appliances, or even put on a new roof if people are likely to reject the home because of those outdated features. Give people something to fall in love with about your home that will give you a competitive edge.

Buyers

It is still a buyer’s market in real estate these days. There is a huge inventory of homes for sale, lots of bargains and distressed properties to consider, and all-time low interest rates. But, even though the deck is stacked in your favor if you’re a buyer, you still need to take a systematic approach to this major investment. For buyers, success in this market depends on credit, proper budgeting, and rational expectations.

Credit. There may be a lot of homes to choose from, and interest rates may be low; but lending is not as free and easy as it was a few years ago. Banks are shy of risk and are looking for solid buyers with a history of good credit. Get pre-qualified before you shop if you want sellers to take your offer seriously. Pay your bills on time and fix any blemishes on your credit rating before you fall in love with the house of your dreams.

Stay rational. Better yet, don’t let emotions control your home purchase at all. If you let yourself become emotionally attached to a home, you are more likely to over-spend and make a poor financial choice for your family. Remain logical and realistic, and base your purchase on sound economics.

Budgeting. Set a price range based on what you can afford, and remember to factor in your property taxes, insurance, utilities, commute time and expense, and maintenance of the new home. You should become very familiar with your household budget and track all of your expenses for the past several months before you set a budget for a new home. Your household budget and your home-buying budget have to work together.

Try to put together a good down payment, and over-estimate the probable interest rate and property taxes you will have to pay in order to leave yourself a buffer of safety. Then, based on the amount of the loan you will need, you can “reverse engineer” the comfortable price range of your new affordable home.
Whether you are buying or selling, today’s fluid market has plenty of perks and potholes, so plan ahead, make smart decisions, and employ the help of a real estate professional.

 Monthly Statistics for the Date Range Selected

Inventory Accumulation for the Last 12 Full Months

*Current Inventory is based on the actual available properties on the date this report was created.

**Average Monthly Sales is the average sales for the last 12 full months

***Inventory accumulation (in months) = Current Inventory Units / Average Monthly Sales

Pricing Details of Sold Units for the Date Range Selected

Inventory Accumulation figures are only calculated when Report End Month is the current month 

© Copyright 2011 TREND MLS - Information Deemed Reliable but Not Guaranteed. 

A special thanks to Alex Reilley of Trident Mortgage for coming on with us this week to discuss interest rates and the mortgage market today!

When you're in the market for a home, I'm here to help you find the best mortgage terms around. But I also want you to be a fully-informed consumer! 

As you already know, buying a home may be the largest purchase of your life so you should go into it with eyes wide open! In this article, I'd like to provide you some proven and common-sense guidelines that can save you time, money and hassle during the mortgage-hunting process. 

Guideline 1: Look Beneath the Surface of the Interest Rate! 

If you're like most prospective home buyers, you call lenders or use the Internet to shop for the best interest rates. That's a good first step, no doubt about it! But, the mistake many buyers make is that they stop there and don't consider the fees that may be added on to the loan later by the cheapest lender. 

In other words, it's the lenders' game, and they may want you to play by the rules you're not even aware of. The answer, of course, is to know those rules ahead of time so you know exactly what you're getting when you buy that mortgage. More on this subject later! 


Guideline 2: Chose the Type of Lender That Works Best for You! 

There are several different sources of lenders - banks, credit unions, mortgage brokers, etc. They all have their advantages and disadvantages in terms of the rates and services they can offer you. For example, credit unions often provide the best value and service, but, of course, you have to belong to one in order to receive their services. 

Regular banks and "big lenders" (Bank of America, Citigroup, etc.) also provide competitive rates and services. Of course, they only offer products their companies provide. You can also use a mortgage broker. This person is a "wholesaler" who uses several lenders to give service to their customers. The advantage of a broker is that he or she offers a greater selection of rates and products. However, they also tend to be more expensive than regular banks and big lenders. 

Brokers make money in two ways. One is origination fees ("yield spread" or "rebate"). Essentially, the origination fee is a commission paid by the bank to the brokers to encourage them to use their firm. The second way is by selling a higher interest rate to you. This means there's room for you to negotiate that interest rate down! 

When a broker quotes you an interest rate, ask him or her to tell you what the origination fee, rebate or yield spread on that rate is. For a broker, a reasonable amount would be a total of 1% of the loan amount from yield spread, origination or combination of the two. Most brokers usually want to make at least 2%. 

Tip: Don't pay an origination fee unless the broker informs you that he or she isn't getting anything on the back end of the deal. 

The bottom line: you can (and should) shop among all these lenders to find the lowest rate. It can save you thousands of dollars over the life of the mortgage. 


Guideline 3: Review the Good Faith Estimate with an Eagle Eye! 

By law, lenders are required to provide you with a Good Faith Estimate or GFE. In essence, the GFE gives you a general summary of all the costs and expenses you'll incur at the time you close on your new home. The document should cover closing costs and the amount of cash you need to close on the agreement. It should also spell out which if any prepaid expenses must be handled and the average monthly payment you'll have to make in order to keep up with the loan. 

Most lenders provide complete and straight-forward information on these forms; however, there's no reason for you to accept the GFE at face value. Comb through the information and if you don't understand a particular item or fee, ask for an explanation. If you still don't understand them, you may want a lawyer to review them for you so you have complete understanding. 

Remember: A GFE is only an estimate. Changes may occur through no fault of the lender. A reputable lender will let you know if fees are going up substantially. In general, however, if those fees go up by more than approximately 16%, then a red flag should go up in your mind. 

Guideline 4: Negotiate, Negotiate, Negotiate! 

When confronted with the expertise and "prestige" of banks, we all have a tendency to think they know best, and we should, therefore, agree to their terms. Never think this way! Banks are like any business; you can and should negotiate with them! 

Want more information on banks and other lenders? Contact me today!

Here’s a quiz…

TRUE OR FALSE:

1. Home prices have come down over 50%.

2. Over 6% of households are in foreclosure.

3. The suspension of foreclosures by major financial institutions will delay recovery of the real estate market.

The answer for each is – IT DEPENDS.

In Las Vegas, Nevada prices have come down an average of 58%.  In our market area, prices have declined an average of 7% from the peak of the market until now - a very moderate number.

In addition to having the distinction of experiencing the greatest price declines, Las Vegas also has the highest foreclosure rate at 6.6%.  Less than ½ of 1% of households in our market area are in the foreclosure process - one of the lowest rates in the country.  Because foreclosures make up such a small percentage of households in our market, if some were suspended the impact would be insignificant.

Prices of homes have come down considerably in the last few years. Foreclosures are also increasing by an alarming rate. This does not mean, however, that there a large amounts of foreclosures today. The numbers are still relatively low overall.

What does this mean? Because foreclosures make up such a small percentage of households in our market, if some were suspended the impact would be insignificant.

It is important to recognize that real estate markets are local, that prices all over the country haven’t taken a complete nose dive, and that the market isn’t flooded with foreclosures.

We, as consumers, have been inundated with a continuous stream of negative news from the press because extremes, whether booms or busts, get attention. Five years ago, good news about the real estate market was exaggerated.

Now the statistics from the worst market in the country are generalized as if they were occurring everywhere. That’s why it’s so important for understand the complete real estate picture to separate fact from fiction.

Here’s another quiz:

TRUE OR FALSE:

Now is the best home buying opportunity of a lifetime.

The answer for the real estate marketplace is TRUE!

Here’s why:

1. The Market

We have clearly seen the bottom of the market. Unit sales have dropped after the April 30, 2010 expiration of the home buyer tax credit, but annual sales have been stable for three years.

2. Interest Rates

Interest rates are at generational lows. It is hard to believe they will go much lower, and they will definitely rise as the economy begins to improve. We would normally think of 5.5% as a terrific interest rate but at the current rate of 4.25% is outstanding. A buyer borrowing $250,000 over 30 years will save $2,700 each year over the life of the loan. That’s a total savings of $68,000!

3. Quality of Life

It’s not unusual to hear conversations about the rent versus buy scenario. There are some advantages to renting but in reality, but buying is usually the best choice. The best communities are made up of owners who care about their properties. Owning a home is one of the best ways to take control of our future.

Houses are more affordable than they have been in years. Stable prices and incredibly low interest rates allow buyers to purchase more for their money so they can enjoy living in a house that better meets their lifestyle needs.

4. Long-term Investment

Owning a home has been the best long-term investment in our area, far outperforming the stock market.  In the past ten years, the value of Philadelphia area housing rose an average of 91%, while the S&P 500 lost 22.5%.

Right now, many people are carefully considering whether or not to buy a home. Lack of confidence in the economy and the job market are holding them back. But there is only so long to wait before this opportunity ends. If life circumstances dictate a move, it’s best to act now. I can’t imagine that conditions will improve for potential home buyers in this area!

In five or seven years, you will probably be glad you bought a home, or be sorry you didn’t. It’s best to make sure you to provide them with the expertise and knowledge to make the right choice now, or else they will look back and say, “I should have.” After all, the true value of what you do goes beyond showing houses or writing contracts. It is in helping people make their dreams come true.

I invite you to comment back on this blog with your opinions, stories, etc. I really appreciate and welcome your feedback.

“Perform due diligence!” is the one law you should never break in any kind of real estate deal – residential, multi-occupant, or commercial!

What is due diligence? It’s a common phrase for the evaluation of a property and its surrounding environment before you commit to buying it.

Due diligence has two objectives. First, you want to reduce or eliminate risk! Needless to say, you’ll be assuming a large loan and will want to know exactly what’s right or wrong with a property before you sink any money into it.

Two, due diligence allows you to uncover real bargains, especially for investors. On the surface, one property may look like a “loser,” but a closer inspection may reveal that the building is structurally sound and requires only minor and inexpensive maintenance and repairs.

One part of due diligence is what you’d expect – the physical inspection of the property and inspection of all documents and records concerning that specific property. The other part is the inspection of the documents and records concerning that property.

In this article, I’ll just talk about the physical inspection portion of due diligence.

Physical Inspection of Properties

Below, I’ve listed all the inspection tasks which should be performed by a professional inspector. Of course, you should visit the property as well. Many times, a quick “eyeballing” can reveal any obvious signs or poor maintenance or decay - a leaky roof, wet basement, foundation cracks, cracks in the walls, plumbing leaks, etc.. In those cases, you’ll know you don’t need to waste any further time on that property.

As I mentioned earlier, such an inspection may reveal that you’ve actually got a bargain on your hands instead of a “dog.” In such a case, you’ll want to purchase or invest in that property quickly.

What happens when you find problems in a property and still like it? Well, then, you can require that the seller correct those problems or reduce the price before you sign any contract.

In general, defects fall into two categories. One category contains the obvious defects – wet basements, peeling paint, broken windows, leaky plumbing, warped floors, etc.

The other category contains the more expensive and dangerous hidden defects. These can include corroded pipes in the walls, roof or window leaks that don’t show up until it rains or snows, subtle cracks in the foundation.

Obviously, you want to make sure these hazards are spotted before you ever sign a purchase agreement. They can cost you a lot of money in the long run, not to mention the fact that they can send your blood pressure through the roof!

What Do Professional Inspectors Look For?

Below are the items inspectors examine when they check a property:

• Overall structural integrity
• Property drainage/landscaping
• Walks and drives 
• Foundation, footings, crawl space, basements, sub-flooring, decks
• Exterior walls, siding, trim 
• Windows, doors, cabinets, counters 
• Gutters, downspouts 
• Roof, roof shingles, roof structures. chimneys, attic
• Floors, walls, ceilings, etc.
• HVAC systems 
• Plumbing systems, (fixtures, supply lines, drains, water heating devices, etc.)
• Electrical system (wiring, service panel, devices, and service capacity
• Energy conservation/safety Items 
• Insulation & ventilation 
• Moisture intrusion/mold

And, of course, we can’t forget the voracious appetites of….bugs!

Pest Control Inspection

Depending on the area of the country in which you live, insects can cause a heckuva lot of damage to a property!

I’m talking about such bugs as termites, carpenter ants, powder post beetles, and any other insect that likes to munch on wood. Then, there’s fungus, in the form of “dry rot.” It can also cause a lot of destruction.
In such cases, you’ll need to hire the services of a specialist (pest control inspector) to examine the property.

If the operator identifies any problems, he or she should provide you with a diagram that pinpoints the location of the infestations. If serious problems exist, they need to be corrected immediately! The expense is usually paid for by the seller.

To protect yourself against any of the problems I mentioned above, ensure that the purchase contract provides for cancellation without penalty or loss of money if the physical condition of the property doesn’t meet standards.

So, there you have it – all the physical items you or an inspector should check on to meet the law of due diligence! Remember – never, ever break this law! To learn more about any special concerns for due diligence in our area, contact me today!

Pay Off Your Debt, Now!

The only way to raise a credit score is to pay off your debt or at least reduce it to an acceptable level! I recommend paying off high interest rate credit card debt first. They can suck the life out of your finances! As for those, "magic cure" credit repair commercials you hear and see promising a quick fix, their scam is even greater than high interest rate scam your credit card company is charging you!

What steps do you need to take to build your credit score to the highest level possible? How can you secure a mortgage with a lower interest rate? Use my common sense guidelines provided below to get rid of the debts that have reeked havoc on your chances for a lower-interest mortgage on your dream home.

View Your Current Credit Report and Know Your Credit Score.

Getting a free copy of your current credit report is easy online. Once you get it, study it and make sure that there are no errors in the report. There is no sense in paying dearly with a lower than necessary credit score for a mistake someone else made. Correcting errors can dramatically decrease your credit score. At the same time, just knowing your credit score can help you work towards raising it.

1.) Pay Your Bills on Time – All the Time!

I know, I know – this isn’t always easy. But, lenders of all kinds look for reliability on your part. Since loaning money is a risk for them, they look for signs that you have a reliable income and the discipline to pay your bills over time. When they see those signs, they say to themselves, “Hmmm, this person looks like a good risk to me; therefore, he or she deserves a lower interest rate.” Focus on paying all of your credit cards down a little bit each month rather than focusing on just one. Focusing too much effort on one while neglecting other credit cards can also impact your credit.

2.)  Do Not – I Repeat! – Do Not Open Unnecessary Credit Cards!

People sometimes open credit card accounts in order to increase their available credit. Absolutely avoid this temptation! It’s simply too darned easy to charge for items you don’t really need, and, before you know it, you’re back in debt or have increased it to an unreasonable degree.

3.) Budget, Budget, Budget!

Financially, this is possibly the most “unsexy” task there is, and yet it’s the most vital and important one you can possibly undertake! YOU need to figure out where you stand financially. Remember, part of your budget must be timely payments on your current credit card debt. Budgeting will allow you to get rid of debt, improve your credit score, and shape a low interest rate financial future for you!

4.) How Much Debt is Too Much?

Here’s the first question to ask yourself in terms of budgeting: How much debt is too much?

Actually, there’s a standard financial formula that allows you to answer that question. This formula is called the debt to income ratio, and what it does is measure your net monthly income against your debt.

Here’s an example:

"George” has a net monthly income of $2000 and his monthly debt payments are $500.

So, to get his debt-to-income ratio, George divides $500 by $2000 and gets this ratio:

500÷2000 =.25 (25%)

Is this a good ratio?

Well, financial experts generally agree that debt expenses should be 25% or less of your income. George’s ratio is reasonable but could be better. So, what’s the ratio of your debt to your income? Figure that out by taking the next step.

5.) Calculate Your Debt-to-Income Ratio

You can answer that question by completing the following tasks:

Task 1: Analyze your bills from the last month. Add up all the fixed expense items (rent, mortgage, car payments, child support, loan payments, etc.)

Task 2: Review your credit card bills and add up the minimum payments owed on each card.

Task 3: Figure out your monthly take-home pay (net salary).

Task 4: Divide your monthly fixed expenses by your monthly income to get your debt-to-income ratio.

What percentage did you get? If it’s 25% or greater, then it’s definitely time to budget in order to reduce or eliminate your debt.

 I’d be happy to discuss some more in-depth budgeting tips and provide you with information on mortgages at the same time! Give me a call right now so we can get together and have an interest friendly financial chat!