Pennsylvania Real Estate Update

Are YOU Ready to Buy in Today's Market??

John Rainville — Fri, 05 Oct 2012 20:55:00 GMT

By using a mortgage-qualifying calculator (mortgage-info.com), find out how much house you can afford. You typically will need a down payment of at least 20 percent, plus another 6 percent for closing costs, lawyers’ fees, etc.

When you put less than 20% down, you have to pay for some kind of insurance to protect the lender from the higher risk that you may default. With FHA loans, mortgage insurance is built into the payment. With conventional mortgages, you will have to buy private mortgage insurance, but some private mortgage insurers are not willing to do business.

With credit issues and foreclosures running rampant, you should maintain a credit score of 760 or more. It is the minimum you need for a mortgage with the best interest rate. For free credit scores, try quizzle.com or creditkarma.com; see your credit report at annualcreditreport.com.

All financial experts agree that the important message for all home-buyers is that “you can’t afford not to save.” If you have nine months of expenses in the bank to protect yourself in case of job loss or disability, then purchasing a home will be worry-free for you and your family.

How long will you be in your home? If you will not have to move in the next five to seven years for work or any other reason, then you are ready to buy. Make sure you think through career change possibilities, whether you will be moving when you are done with school, or whether additions to your household will necessitate an upgrade soon.

If you move too soon, the costs you pay up front could result in a not-worth-it situation. If you are prepared to maintain the house in terms of time, labor, and expense and are able to set aside 1 to 2 percent of its value per year for upkeep, as well as emergency repairs or upgrades, then you are ready for home ownership.

Knowing the loan approval process can take weeks–if not months–to be completed will certainly test your desire to own a home. If you are on a tight deadline or looking to avoid any hang-ups, have all the necessary documents ready and completed. Having all of the paperwork in advance will ensure there are no delays which can be costly.

You should not assume a mortgage broker or lender will find or create the ideal loan for their financial situation. Mortgage brokers and loan officers will typically look at the usual programs available. You need to know what your goals are and all of your financing options with your lender or broker.

Are you prepared for additional costs? Understand all the fees that are included, what will be due at closing, or before closing, and the payment and amortization schedule. Sometimes there are fees that may come as a surprise to you. Lenders are required to provide borrowers with a “Good Faith Estimate” which lists the anticipated costs for the loan.

However, sometimes fees and other costs become an issue and inflate the total loan cost. You should compare costs with several lenders because the processing charge for collecting and packaging the loan information can cost between $500 and $1,000, while the underwriting fee can hit $800 to $1,500. Remember, though, the origination fees, application fees and the underwriting fees can be negotiated.

Do you have a stable budget? Is your income stable enough to make regular mortgage payments? Make sure that you can keep up with your payments, and that the reliable portion income can handle your mortgage. Do a mock budget with home ownership that includes estimated taxes, HOA fees, maintenance costs, utilities, repairs and other expenses on top of your monthly principal and interest payment.

Weekend Mortgage Rates from American Advantage (LOOK HOW LOW THEY ARE!)

John Rainville — Fri, 05 Oct 2012 20:53:00 GMT

HAPPY FRIDAY EVERYONE. You are welcome to call my cell 577-2468 for pre-quals on the weekends.

· FHA Mortgages closed in 14 days with 640+ credit score

· FHA: 530 score with 10% Down; 560+ score with 3.5% Down

Above rates are based on 640+ credit score. Interest rates will be adjusted for lower credit scores.

15 Minute Pre-Qualifications

Call Michael Howington

Office 717-755-0004

Cell 717-577-2468 (Nights & Weekends)

NMLS #110116

Kara Griffiths

Mortgage Assistant

717-755-6217

Click here to be removed

NMLS #51492

American Advantage Mortgage Services, Inc.

FHA 30 yr fixed 3.25% 4.375% APR

FHA 203k Rehab 3.75% 4.837% APR

FHA Construction 3.75% 4.873% APR

VA 30 year fixed 3.25% 3.437% APR

USDA 3.25% 4.437% APR

Conventional 3.625% 4.463% APR

We are Now Licensed in Maryland!

John Rainville — Fri, 05 Oct 2012 20:47:00 GMT

After several months of jumping thought hoops we are up and running in Maryland.

Right now we are concentrating on HUD Homes and Commercial Listing and Sales.

We can now help folks on both sides of the Mason Dixon line. Now our buyers coming up over the border

can work with the same agent to buy and sell if needed.

Our commercial agents are already listing up Hospitality Properties in Maryland.

The SECOND Best Day of the Year To Place an Offer

John Rainville — Sat, 30 Jun 2012 16:07:00 GMT

There are times when you can actually get a jump on other buyers and get your bid in when others simply don’t think they can do so. Unfortunately, or perhaps fortunately, these days tend to be holidays and in particular big holidays.

While others are busy celebrating they simply put home buying out of their minds but when the holiday’s over the time comes once again to think about that house they looked at and loved.

If you’re serious about a house and don’t want to lose it then it may truly be in your benefit to put your bid or offer in on one of the best days of the year to make an offer.

Proven to be the second best day to put in an offer on a home is Easter Sunday. Most buyers won’t be thinking of buying on a holiday and most sellers are generally home celebrating the day. The day after is just another day for most and everyone will go back to business as usual; which means buyers get back to looking and bidding. Because Easter falls in the spring time it’s also a great time of year to have your pick of homes. Spring is the busiest season for the real estate market and you’ll see for sale signs popping up even quicker than the tulips and lilies in front yards.

Knowing that spring is the busiest time of year for real estate is also one of the biggest reasons to get a little edge on your competition. Putting in a bid on Easter will most probably make you the only person with an offer in. This can be especially beneficial to you if you have your heart set on a home you just looked at and it’s in a neighborhood that’s desirable or a type of home that will sell fast.

Getting your bid in as soon as possible is always to your benefit but beating out the typical person who would make an offer the day after a holiday is good sense. While people may celebrate on Easter most celebrate with a religious ceremony and then a family dinner. Unlike holidays such as Christmas the celebration is fairly low key and doesn’t involve loads of people visiting for long periods of time so the seller probably won’t feel put out that you put your bid in on a holiday.

There are always risks with bidding on a holiday. The biggest risk, especially if it’s on a religious holiday, is that you will offend the seller. You don’t want to offend the seller because the answer to your bid will most likely be no unless there is no other way they can get out of your offer. You also should let your lawyer know when you want to place your bid, even if it’s the Saturday before Easter, to assure that your agent will work on that day and put the offer in to the seller.

You have a better chance of not offending anyone on Easter than you do on other holidays, simply based upon the fact that most celebrations are somewhat less elaborate for the day and unlike Christmas tend to last for that day only and not a series of days when friends and family visit and so on. However you should also understand that interrupting anyone’s holiday can be offensive, especially a religious holiday; that’s probably the biggest problem with putting in a bid on Easter Sunday. You don’t want to offend anyone, including your agent.

If the timing and holiday issue isn’t something that you really have to worry about then you are definitely putting the odds in your favor by putting in your offer Easter Sunday. Most people simply don’t think to make their offer on Easter Sunday and on homes that are going to sell fast you want to get the edge. Generally the day after Easter or within that week is when a lot of offers are made. There are so many buyers and sellers in the market during the spring that it’s truly the busiest time of year for most agents. Taking advantage of the normal day off could truly be to your benefit especially if the home is one that will sell quickly. Perhaps this is the year to fill your basket with tons of joy and happiness with something that won’t even fit your new home.

Here We Grow Again! Welcome Wanda Lesh

John Rainville — Wed, 27 Jun 2012 18:45:00 GMT

Wanda Lesh has joined BrokersRealty.Com and will be affiliated with the Lewsiberry Office and serving her customers in the Harrisburg Area.

Wanda has severl years of full time real estate experience and is excited to make the change. She was formerly with a local independent firm and a franchised operation before that.

Wanda can be reached at 888-774-8488 x 733 or her e-mail is wanda@brokersrealty.com

WELCOME!

It's MOVING DAY Are you ready??

John Rainville — Tue, 15 May 2012 18:46:00 GMT

So the closing is completed and now you have to move on to the last and final step: moving day. Okay, perhaps we shouldn’t make it sound so exciting and thrilling but it honestly is one of the biggest days ahead.

The best thing to do is to be prepared. Chances are you have a date for when you take possession of your new home so you can plan well for the move.

There are so many pros and cons for each side of the story when it comes to moving.

On the pros list for having a movers do the job is the fact that you can choose to have them move you completely from packing to moving you into your new house or choose to just have them move the sealed boxes and large furniture you have. You don’t have to beg friends to help, rent and drive your stuff yourself or worry about anyone dropping and destroying stuff. You’re covered by the moving company’s insurance.

On the con list is the pure and simple fact that it costs a substantial amount to have professional movers move you. You can choose how much you want the movers to do and it is obviously cheaper to pack your own boxes and move as much as you can a little at a time as opposed to leaving it all up to the moving company. Many people choose to move their own boxes and just pay for the movers to move the big stuff; saving them having to find extra help and a lot of hard back breaking work.

Remember if you are utilizing a moving company read the contract thoroughly. You don’t know how many times professional movers have entered a home and seen open boxes with stuff thrown in them and have to tell the person they can’t take those boxes because they only move sealed boxes with lids, nothing open so things can fall out. There are also those who forget to show the movers everything they want move and then realize grandma’s old buffet that weighs a ton, because it is beautiful hand cut maple and needs moved also. That’s fine but what happens is the cost of the move increases.

So make sure you’re absolutely certain about what you want moved, where you want it moved from (it’s more expensive if they have to remove items from an attic, so if you can move stuff to the first floor or even second floor area you can save money), and also if there are conditions you need to know about in the paperwork. Most people are quite astounded at the cost of having professional movers do the work and end up doing at least some of the work themselves.

However, as most of us know from experience, it can be even worse to wake up Saturday morning with 2 dozen doughnuts ready for your “helpers” who never show up or call you with a reason why they can’t make it. Many times it’s worth the price to utilize a moving company for at least the heavy work. You may find that it’s easier to ease into your new house box by box also; starting with the items you absolutely can live without.

Here are a few quick moving tips that you may or may not already know but can help make the move easier no matter how you are handling it.

Keep one large box available for the last morning you are there at your old house and mark it “LOAD LAST PLEASE!” In it you will want to put your bedding items that you will need that first night at your new place. Put all of your bedding, pillows, and if you have kids their favorite sleepy bear to go to bed with.
Mark all boxes as to what is in them and which room they go to. Mark the rooms in LARGE PRINT so there’s no question where anything goes.
Try to keep like items in the same boxes; for example – living room decor items or kitchen utensils and spices, etc. all in the same box so you aren’t trying to figure out what you need to put where or what’s inside each box.
Weeks ahead start cleaning out your food items. Use all you can and anything that can’t be used think about donating to your local food bank instead of hauling them with you if you really don’t need them. Check dates on them too because that can of pork and beans in the far back of the cupboard has probably been there awhile.
Don’t just put items into boxes as they are; dust them, wash them and have them clean and ready to use when you unpack them.
Anything you take apart keep the screws, nuts and any other items that are small with it by putting them in plastic zipper bags labeled what they belong to and taped onto the item so they don’t get lost. When you’re ready to put it back together you won’t be looking all over for the parts and pieces.
Don’t forget to leave your garage door opener for your old house for the new buyers. All too often people drive off, close the door, and don’t realize that they’ve kept the opener. Usually it’s only a matter of taking it back but it can be a bit of an inconvenience for both parties since you’re both in the process of a crazy time in life when things are a bit chaotic to say the least.

Most of all be careful and use your common sense. Take the time to figure out if you can afford to have professional movers help you at least with the large stuff. Utilizing professional movers could end up saving you both money and aggravation in many ways:

You don’t have to worry about hurting yourself or pulling something while moving and missing days of work which ends up costing you even more money in the end.
You don’t have to worry about anything being broken or dropped – if it is the movers will be covered for it and replace its value because they are insured.
You don’t have to worry about all those “friends” who promise help but never show up and you don’t owe anyone else a reciprocal move since they’ve helped you. As terrible as it sounds it saves you from owing one and from being stuck with little to no help when you really need it; it also saves friendships and hard feelings.

If you can’t afford to have professional help moving, even for a portion of the move, then make sure you take your move slowly. Don’t expect to be completely moved in and complete within a single day or even a single weekend if you can’t physically do it.

Give yourself a decent amount of time to move out of your house that is at least a good week or more after your move in date for your new home. Most of all don’t procrastinate and put off packing things. Start by packing up the items you absolutely don’t need and getting tons and tons of boxes (sturdy ones!) to get your move started.

Make sure even if you’re not utilizing professional help that you seal each box up. In many cases people like to use those plastic bins that you can purchase in various sizes with lids and simply put a piece of masking tape or a label on each bin to let you know which room it goes to and what is inside.

Most of all, celebrate your move when it’s finished and throw yourself a little home warming party.

John Rainville, Broker, Realtor, CSP, LTRS Certified

BrokersRealty.Com

PA LIC# RM-419701
Best # is my cell 717-554-7430 or 570-580-0760
Fax (888) 770-6993

My blog www.JohnRainville.Com

Incentives to Help YOU Close the Deal!

John Rainville — Tue, 15 May 2012 18:44:00 GMT

A buyer’s market can really make things challenging for home sellers. However, this does not mean that you won’t be able to make a good deal on your property.

There are certain inducements and concessions you can offer to help the interested party decide in your favor and close the deal. You have to consider the market condition and adjust accordingly.

In the present market, it is necessary for you to make a bigger effort to get some results without having to create the perception that you are a hard sell.

You have to fight against the market forces to get the deal you want, and for this you have to plan properly and make concessions so you can offer more at the negotiation table.

So what are the incentives you can give to the buyer? Here are some of the inducements and concessions you can consider when selling your property.

Closing Cost – You can consider giving a concession by offering to pay for the cost of closing the transaction. This way, you will be helping the buyer in reducing the equity he/she has to raise for completing the property purchase. Majority of the time, realty deals are easily closed if the seller offers this concession to the buying party.

Add-on Furnishings – Add-on furnishings are a viable inducement in the case of a property situated in an area where relocation is frequent. The deal becomes appealing to the buyer when the property has been partially or completely furnished. In some cases, the buying party may find a particular furnishing to be interesting. If this is the case, you may want to consider throwing in this furnishing as an additional feature for convincing the buyer to seal the deal of the house.

Warranties – Using warranties should be a judgment call. By covering a part of the house with your own warranty, you will be making the buyer more comfortable. The cost of ownership can be on a variety of things. You may have to give a warranty on the dryer, dish washer, or bigger things such as the roof.

Gym Memberships, Condo Fees – If you are selling an upscale property, you may have to throw in a membership, condo fee to make the agreement work with a prospect who does not way to make any additional payments outside the property purchase. A decent offer may be a prepayment for six months.

Rent-to-Own – One method of closing a deal in a bad market is to enable the buying party to “check” your property. With this option, you provide the prospect the opportunity to live in the property for a fixed period of time before finally buying the house. When considering this option, keep in mind that you may have to take care of repair and maintenance during the time you have rented the house.

Seller Financing – In case you already have considerable equity on the house, you may want to consider the option of seller financing. The advantage of this option is that it defrays the capital that the buying party has to raise to get the house. However, there are important things that need to be considered before offering this option.

It is recommended that you seek the advice of legal counsel specializing in real estate for handling the legal side of things. These are some real estate selling tips that you can consider to sell your property in a down market. Who knows, by offering something extra to the buyer, you may be able to get a great deal on your property.

For Sale Signs and How They Help Sell Your Home

John Rainville — Wed, 02 May 2012 18:24:00 GMT

If you are putting your property on the market then you might be wondering how a simple “For Sale” sign could impact your listing.

While some people aren’t too keen on putting up such a sign, it does have a number of advantages. Now, in some neighborhoods such signs are forbidden, while other communities sometimes place restrictions regarding the size and the placement of the sign.

In order to find out how to pursue signage for your home, you should make sure you are following regulations put in place by your local homeowner’s association.

Homemade For Sale Sign – Some sellers do not have formal representation meaning they are not represented by realtors, who would usually hate to spend even more money for the signage. They prefer to sell their properties on their own without tacking on additional expenses. To your advantage, some buyers are simply looking for a good buy, so you might get some inquiries just by having a sign on your lawn!

Real Estate Agent “For Sale” Sign – There are two common types of signs used for selling real estate. One such sign is pounded into the ground and the other type is placed on a post. Materials may be made from wood, plastic or metal.

The Content of your For Sale Sign – A “For Sale” sign is not just eye catching and a good way to tell people that the property is on sale but it also acts as an advertising tool that helps promote your real estate brokerage, as well as the agent representing the property. You can include the name of your brokerage firm, your office number with your area code and your website. Consequently, you can also add your company logo as well as the brokerage address.

There are some real estate agents who like to maximize the space of the signage by adding smaller posts such as the address to their online virtual tour site, the asking price of the property, the price discounts and a slogan. Some agents like to include the home warranty benefits and other benefits to attract more buyers.

Apart from this, some agents may also include a sign rider that is usually hooked below the signage. These signs riders may include the agent’s cellphone numbers, his or her co-agent’s name and contact details, highlight features of the property such ranch, pool, number of bedrooms and baths, etc.

Now, if you are thinking about where to place the signage, it is important to place it in an area that is highly visible from the street. Sometimes cars parked in the vicinity, trees and even telephone poles may block the view of your signage from the street. You have to make sure to avoid these scenarios in order to maximize visibility. That’s part of the reason why you may want to consider placing the signage near the sidewalk or the street.

If the property that is up for sale is located on a corner, you might want to consider placing two signs on both streets. If your home is located in a secluded area, or an area out of the street or where the traffic is considerably low, you can ask some homeowners who live near the busy street if you could place a sign on their property, as well.

Median Home Sale Prices Rise!

John Rainville — Wed, 02 May 2012 18:23:00 GMT

For the first time in four months the median sales price for homes has risen to $156,600. This rise in home sale prices, along with a steady rise in the sales of homes is a plus-plus situation for the industry as a whole.

Sellers are finally beginning to see multiple offers on homes and seeing a definite change in pace of how quickly homes are selling in what used to be a very stagnant and long term wait for the sale of most homes in most areas.

Houses that were previously on the market for often up to a year or more are now selling at an average of 4 months or less. Some areas are seeing faster improvements than others and as always there are some areas that don’t quite fall into any one category of “normal” terms and standards of the industry as a whole; but for the most part these changes are being seen and felt throughout the housing industry. This is definitely one of the biggest signs of improvements in the U.S. Housing Industry for 2012.

New home constructions have seen a moderate increase for the first time in years as request for permits to build have risen substantially. February of 2012 saw the most significant number of permit requests to build new homes since October of 2008. This increase in new home building and permit requests are a definite sign that the future of the housing industry is finally taking an upturn in the United States.
Mortgage rates have been at or near record lows but are now rising slightly, giving a healthy boost to the market while not inundating the market with outrageous mortgages being handed out like candy on Halloween night as it once was and also what most believe was the beginning of the end of the housing industry’s strength. Mortgages rates are rising ever so slightly and lenders are much tighter with their standards; even making it difficult for some potential home owners to obtain mortgages with near perfect credit at times.
The housing supply has fallen to record lows; falling in January to the lowest supply of homes on the market within the past seven years. As a typical case of supply and demand takes over, fewer houses means higher prices for the homes that are on the market and sellers are slowly seeing chances to bring in fair prices on their homes instead of watching their homes literally sink under water as their resale values fall faster than their mortgage balances. Now that there are fewer homes on the market the number of high quality homes should increase and while we are still seeing numerous foreclosures and short sales still entering the market due to the backlog of homes waiting on foreclosure we will also see more and more homes coming into the market that are not distressed homes forcing prices of quality homes to decline.
Unemployment rates are falling and have reached their lowest point in three years. At 8.3% the job market is definitely seeing a strengthening and with that confidence in home buyers increases. This past winter, marked by the months of December 2011 through February 2012, the economy has seen an increase of approximately 245,000 jobs per month. This bright light at the end of the employment tunnel has people feeling more relaxed and at ease when making large purchases such as homes and cars.
Foreclosures have seen a very small decrease from 35% of the sales in January to 34% in February; but experts say there is still a backlog of homes to be processed and this will slow some of the positive attributes we need to see to bring the housing industry back into a healthy state.

While all of these positives are happening there are still some concerns that have to be addressed before the market is back in good position. Some of the negative issues that need improvement include:

First time home buyers has seen a slight decline and made up only 32% of all home purchases in February. Most economists like to see a minimum of 40% of home purchases being made by first time home buyers in order to feel that the industry is in a healthy state but 32% is definitely a closer number than what we had previously been experiencing.
Foreclosures & Short Sales have to sell out their backlog and slow back down to “normal” numbers again.
Lenders aren’t handing out many mortgages to buyers; even ones with near perfect credit. They’re going to have to continue to be cautious but also start allowing more mortgages go through so people with moderate to good credit can purchase homes again.

The numbers were extremely mixed across the country; with some areas seeing decent sized increases in sales and amazing seasonal numbers while others saw unimpressive numbers or even pessimistic numbers in their area of the country. This is definitely not unusual during any market but it is also a sign that the market has a way to go before it’s considered healthy again.
The Midwest and South both saw a seasonal rise in sales; the West and Northeast saw a substantial drop in sales of slightly more than 3%. What we want is to see an increase in sales and new construction across the line throughout the entire country before we feel “safe” and can say the industry has recovered and is once again healthy.
In markets that were slightly more stable foreclosures were making up less than 10% of housing sales; however agents in other markets that weren’t so lucky saw anywhere from 30% to over 65% of their sales being foreclosures. Again this could be based upon the backlog of homes to be processed but in either case the distinct difference across the line throughout the country definitely needs to be more consistent before we can breathe a sigh of relief that the industry is recovered.

While each of these positive effects on the industry seems to be good news both agents and economists alike agree that we have a long road to haul before we see a full recovery from the deep wounds of the past few years. However, there is always a positive effect of seeing light at the end of a tunnel, no matter how long the tunnel may be or how dark it is until you reach the light.

Understanding Making an Offer

John Rainville — Tue, 01 May 2012 17:03:00 GMT

Although you will be guided by your Buyer’s Agent if you have one, it’s always good to understand the process.

Obviously, once you’ve reached the point where you are making an offer on a house you’re at the final stages of the home buying process.

Hopefully the seller can accept your offer or make a counter-offer that is acceptable to you and you will end up with the home of your dreams.

Contingencies are often placed into the offer in order to protect or make sure that if things don’t go as planned the buyer and/or the seller are protected. These contingencies can vary according to the type of home you’re purchasing, where you are purchasing, and what you and the seller want to happen.

An example of a contingency could be that the offer depends upon financing. This is often a common contingency to have written into an offer; obviously written in to protect the buyer from being legally bound to buy a home when they can’t get financed. This is easily something that is avoidable though when you get pre-approval for a mortgage. Either way, most offers keep the contingency in place to cover themselves legally.

Other types of contingencies may include the sale being contingent upon the home passing an inspection or the sale of your home if you own a home and are trying to sell. These are all common types of contingencies that you can have added to the offer. Your agent will guide you as to what it is you should have the sale contingent upon.

There are certain forms that are used to write up an offer and these forms may vary from state to state. Your agent will obviously know and have the proper forms; this is yet another reason to work with a Buyer’s Agent as opposed to doing a “For Sale By Owner” type of sale/purchase. Depending upon the form and the state you are working in there are various parts of the Offer that will be on the form. These parts may include the following information, terms, and items:

Deposit – often referred to as a “good faith deposit” that is made to assure that you are truly interested in purchasing the home. In most all cases if you pull out of the deal once the seller accepts your offer you lose your deposit.
Offered Purchase Price – this is obviously the price you are offering the seller for their home.
Closing Date & Occupancy Date – there has to be an agreed upon date for the closing and when you can take occupancy in most cases; however this is also dependent upon if you have contingencies that may actually make these dates determined by the contingencies. For example it may say 10 days after the home inspection is accepted or 30 days after the loan is approved, etc.
Properties Included in Sale – this is actually an important part of the offer because you list the items that you want included in the sale of the home itself. Everything from appliances to carpeting to draperies, window dressings and even ceiling fans can be included. Again, your agent should guide you about what needs to be included and should be looking out for your best interests to assure that everything that needs to be listed is listed.
Fees – this part discusses who is responsible for what fees that are going to be applied to the sale of the home. While you may just assume any fees are paid by the buyer this is not always true. You can often have the seller pay for points or other fees that may be involved.

While your agent puts together the offer you make and presents it to the Seller’s Agent, it’s always good to know what all is included in the offer. While the listing above is a very condensed version it gives you a general idea of what happens when you put in an offer. It’s always best to feel confident with your Buyer’s Agent and know that they have you covered when writing up your offer but understanding what’s happening may also help you to assure that nothing is overlooked.

If you have questions about the offer you have every right to question your agent and ask for an explanation. By the time you’re at this point of the buying process you’re probably anxious to get things completed and finally have the home buying process finished!

Creative Marketing Ideas for Realtors

John Rainville — Tue, 01 May 2012 17:02:00 GMT

It can be a very difficult task to get noticed in a crowded housing market. With so many properties listed in local areas, real estate agents are fighting to get the attention of the small pool of buyers.

In such a situation, one of the steps you can take as an agent is to get creative with your marketing. Given below are some ideas for selling a house in a creative way.

These ideas have been used successfully by agents and may help you achieve your goal:

Create and Optimize a Website – A lot of people are using the internet to find their dream home. Use this to your advantage by creating a site for your listings. However, creating a website is not enough – you have to optimize it as well. You need to optimize the website for the keywords people are using to find property. Optimization will help your website rank higher in the search engine search results for the optimized keywords. You can search online for companies providing SEO (search engine optimization) services.

Start a Networking Group – Creating a networking group is not as difficult as a lot of people think. By investing under $20 per month, you can create one on Meetup.com. The group will enable agent and investors to come together regularly for networking, discussing new marketing strategies, etc. Meetup.com sends an email notification to people who have shown an interest in your type of group. However, for attracting even more people, you should write a press release to announce the date of a meeting many days/weeks in advance. This way, you may have a room full of agents looking to network and grow their business.

Hold an Agent Open House – A lot of agents are no longer interested in attending a traditional open house. They’re learning that the people coming there are not buyers, but nosy neighbors. Instead of organizing an open house for customers, organize one for realty agents. Create interest by offering a small prize to the agent who comes through the home. By holding an agent open house, you will be able to display your property in front of those who are most important – agents who have customers searching for property in a certain price range. In addition, you will be able to get valuable feedback regarding any problems with the listed property. To inform agents about the open house, create a press release and submit it to an online PR distribution site and also send the press release to local real estate offices.

Create a Coupon – Couponing has practically become a sport with TV shows highlighting how you can save some cash. You can take advantage of this to sell your house. Instead of decreasing the price of the listed property, create a coupon and place it in the local newspaper, property magazines or even on the info sheet of the home. While big discount coupons are the best, you don’t have to create one for $10,000. Consider giving a discount between 3-5% of the asking price. This will enable you to cut down the time spent haggling and you just might get a good offer. Remember to submit your PR to online PR distribution websites as well as local media outlets to get publicity.

These are just four of the many creative ways in which you can market your property, even if the market is down. By having a creative approach, you can make sure that your property will get the publicity you need.

Low Down Payment Home Mortgages - Is One Right for You?

John Rainville — Mon, 23 Apr 2012 21:32:00 GMT

With so many other costs associated with a buying a home, it’s no surprise that a lot of people are looking to have low down payment on their home loan.

A common belief is that there needs to be down payment of 20% at the minimum. This was the standard for a long time; however, now, more flexible options are available.

As a matter of fact, there are loan programs with a down payment of 3.5% of the property’s price. A low down payment loan is generally a loan that has a down payment of less than 20%.

However, low down payment loans come with certain conditions. For example a lot of lenders normally require that the loan be insured in some manner. This type of insurance is known as mortgage insurance.

Mortgage Insurance – Mortgage insurance provides financial protection to the party doing the lending in event that the borrower defaults on the mortgage. Lenders normally ask home buyers to have mortgage insurance on any loan that has a down payment of 20% or less. So the borrower almost always has to have some type of mortgage insurance to get a low down payment loan. The borrower normally has to bear the cost of the insurance. There are two types of mortgage insurance – government and private. Here are some details of both of these options.

Government Mortgage Insurance – This type of mortgage is normally insured by one of the following federal authorities: the Federal Housing Administration (FHA); the Rural Housing Service (RHS) of the Department f Agriculture; or the Department of Veterans Affairs (VA). Each agency has its own standards for insuring loans. For example, RHS normally provides loans to people living in the rural areas, and VA loans are reserved for military veterans and their spouses.

To get insured by the FHA, there should be a down payment of at least 3%. They also consider your geographic area when deciding the amount of the loan. This is how you can obtain government mortgage insurance for purchasing a house with a low down payment. By getting one of the above-mentioned federal organizations to back your loan, you can have a down payment of less than 20%.

Private Mortgage Insurance – Private mortgage insurance, or PMI, can also enable you to get a home loan with a low down payment. This type of insurance is on offer to a much greater number of people compared to the government mortgage insurances mentioned above. For instance, the availability is not limited to rural residents or the military.

PMI is on offer for a lot of different low down payment mortgages. There is also no pre-set limit on the amount. These days, you can definitely find a home loan with a low down payment – payment of less than 20%. With this type of loan, you will need to have mortgage insurance, provided either by the government or a private insurer.

AVOID Foreclosure!

John Rainville — Mon, 23 Apr 2012 21:26:00 GMT

While the economy has seen a bit of an upturn and home foreclosures and short sales are starting to level out there are still many who are looming in the dark halls towards facing foreclosure.

What should you do? Do you ignore it and just let it happen? Do you call the bank? Do you contact anyone? Can anyone help?

The answer to the final question is the answer to all of the others. YES! Yes, there is someone who can help and that someone is a qualified, certified realtor.

Finding a realtor who deals with foreclosures and short sales and has true experience may not be as hard as you think nowadays. Many agents are currently stating that 65% or more of their sales are short sales. While some areas are seeing more and some are seeing less it’s no surprise that the previous few years have had a vast amount of foreclosures and short sales. Needless to say these vast amounts of foreclosures and short sales have given many agents some very intricate and valuable experience to utilize in this particular area.

What Other Options Are There to Foreclosure?

First, you have to act quickly. Once the foreclosure proceedings begin it’s very hard to stop them or get a change in actions. So if you know you’re going to be up against foreclosure in the near future, now is the time to act. Contact an agent and assure that they’ve handled short sales before. While you will still lose your home, the damage done to your credit history isn’t nearly as hard as when a foreclosure goes through.

Many times your agent can negotiate with your lender and talk them into doing a short sale. Generally, lenders lose less money with a short sale as opposed to a foreclosure. They take ownership of the home and now the agent sells it; however, the agent doesn’t necessarily sell it for a huge bargain price but instead at the price of what the home is assessed at by a professional.

The amount will be well under what you owe the bank but whatever the amount is that it sells for is what the bank will take to pay off your loan and consider you out of the picture. There is less damage made to your credit history and you can often go out and purchase another home in a reasonable length of time. Some have even purchased a new home almost immediately depending upon the individual situation.

Other options are also now available to home owners who are underwater with their homes; also known as owing more than the home is currently worth. Once you have contacted an agent ask them what your options are. Some things you may want to ask about are federal government-sponsored programs that have recently come into place to help the numerous home owners who have been faced with this same dilemma.

These options are often various forms of loan modification program and can vary depending upon your situation. If your agent doesn’t feel comfortable guiding you in this area, ask them to suggest a Broker or Lawyer that can help you. These loan modification programs may or may not help; but either way it can’t hurt to look into them.

Another possibility is working with your lender through an agent to sell your home while you live in it. There are advantages to this because the home is maintained for the lender and they don’t have to worry that the home will be vandalized and the value of the home depleted even more, making their loss even greater. Often agents know lenders’ styles and which buttons to push to get them to say yes, as opposed to trying to deal with a lender on your own. If you can get this type of agreement you need to get prepared for moving and handle the situation as a positive move towards getting you out of a situation that could get or could have become much uglier; instead of seeing it as a negative part of your life where you are losing your home.

You are being given a chance to sell your home under nearly “typical” conditions with minimal damage. You are also being given the chance to prepare for your move and your future. Of course not all lenders will agree to this type of sale and will instead want a Short Sale where they take ownership and you must move, but in either case it is a much more positive action than facing a foreclosure.

The Most Important Things to Remember

Act Quickly – waiting just makes your situation worse.
Contact an Agent/Realtorâ¢ as soon as possible for guidance.
Be open to various suggestions and options – chances are that any option will be better than foreclosure.
Ask questions, especially when it comes to programs put in place to help people just like you in the same position. Find out what governmental programs or even lender programs may be available to you.
Most of all try to keep a positive attitude towards it all even though it seems a dire situation it may end on a positive note.

The Home Inspection Process

John Rainville — Thu, 12 Apr 2012 21:20:00 GMT

As a buyer the home inspection process is probably one of the most important aspects of making the purchase of your home.

While you will be required to have a home inspection by most lenders; it is highly recommended that you hire your own home inspection and make the sale of the home pending your home inspection.

Each state handles home inspections differently but for the most part they are all generally the same. Check with your agent as to how inspections are handled where you are buying. As a buyer it takes only a few hundred dollars on average to have peace of mind and know that there shouldn’t be any sudden uninspected issues that pop up; at least in the near future.

The home inspection will give you a fairly extensive picture of the overall condition of the home you are looking to buy. Many lenders require the inspection but if not, make sure you don’t pass up this ability to get a professional look at the home to avoid any issues. Your agent can refer you to at least one company you can utilize for your home inspection. Depending upon the number of inspection agencies available in your area you may have to wait your turn to get the inspector to come do your inspection, especially during the busiest times of the season.

While the term itself is very generic, the home inspection can include various types of inspections within the inspection. You want to be sure what type of inspections you are getting with your inspection and if there is something you feel want included, be sure to ask for it when you order the home inspection. There are different types of inspections available to you.

Depending upon the state you live in the inspection could be a requirement by the state or by the lender. If it is not a requirement you want to be sure to get the inspection for your own peace of mind and as part of the sale make the inspection one of the pending items of sale. If the home doesn’t pass inspection then you have the choice of nullifying the sale or the seller has the ability to fix the items that won’t pass inspection in order to make the sale.

The Standard Home Inspection – This type of inspection is an overall inspection of the home and will usually include exterior surfaces, basement, crawl space, lawn & grounds, roof, electrical, plumbing, appliances, garage, any outer buildings that aren’t attached to the home (sheds, etc.), attic, fireplace or wood burning stoves, air conditioning (generally only central air & won’t include window units that may come with the home), and foundation. This is a standard home inspection and leaves ample room for additional types of inspections to be added on to and include with other types of inspections.

Many of the standard home inspection will also include other types of inspections while others will require that the following inspections be requested. Depending upon your area you may or may not want to include the additional inspections mentioned here. Generally, it’s best to be safe and have as much and as many of the inspections as possible to lower the possibility of any problems with your new home.

Termite Inspection – while in certain areas where termites are common this may be included in your standard inspection; other times it could be an additional inspection you order with your standard inspection. Termite inspection looks for anything that damages wood; this could include everything from organisms such as mold or fungus and any insects or animals. This particular type of inspection often varies by state as to what the inspection requires.

Well Inspection -If the home you are buying is not connected to a city/local water system then you will want to have the well tested. The well testing involves both testing the water with a sample sent to a lab and the flow of the water from the well enough to supply the home with water. This test may or may not also involve an inspection of the septic system also. If it does not include the septic system you want to assure that the septic system is inspected also.

Pool/Hot Tub Inspection – This inspection obviously only applies when you have a hot tub and/or a swimming pool involved with the sale. The inspection covers the overall condition of the items and assures that all parts involved are in working order. They also will conduct an inspection of any decks or attached areas that could become rotted or lose integrity due to the possibility of water damage or any other wood damage.

UST Inspection – This is an inspection of any underground storage tanks. These tanks could be anything from oil tanks for home heating and although not necessarily a part of this inspection it can include the septic tank. Most often the septic tank is part of your well inspection because you generally have a septic tank involved when you have a well; but make sure if you have a septic tank that it is either part of the well inspection or part of the UST inspection. You need to be assured of the integrity of these tanks because they are underground and are subject to the elements; often rusting, being worn from time and elements.

Generally these tests are done with a vacuum test that assures the tank is not leaking. Leakage, cracks, or any compromising of the integrity of the UST could cause everything from contamination of water to hazardous contamination of the grounds around it. Not only is there the safety factor but there’s the factor of having the expense of replacing these tanks, which can be quite expensive.

Lead Paint Inspection – A lead pain inspection is now, in many states, a required inspection for any home built before 1978. This inspection is a must if you have pets or children especially; but the lead in the paint can be harmful to everyone, including adults. We recommend that if the home was built after 1978, but within a few years of that date, that you take the extra time and money and have a lead pain inspection. The only time you really don’t have to worry about the lead inspection is the home is truly a newly constructed home or a home that was constructed and verified not to have used any lead paint in the construction process.

These are just a few of the additional types of inspections that can be conducted or may be conducted as part of your standard inspection process. There are so many more and your agent should guide you as to whether you need to have additional inspections added on to your standard inspection.

One type of inspection to consider is an Asbestos Inspection which determines if there is asbestos in any part of the house, inside or out. There is a Stucco Inspection which is for homes with stucco siding, generally found in the south west, and the inspection determines if there is any problem with the finish or if there may be any moisture issues with the stucco. Stucco can often experience breakage that can allow for water intrusion, resulting in problems with the finish and/or mold and fungus issues.

There is also an inspection designed specifically for Composition Board Siding. CBS is a paper based siding that is man-made to look like wood siding for less money. The condition of the siding can be compromised if there are tears, breaks, hits, dents, etc. that would allow for moisture to seep in and ruin the siding. Of course this inspection would only be needed on a home that has Composition Board Siding so it’s not included in a typical standard home inspection.

As you can see, there are many different types of inspections that can be needed, depending upon the area you live in, the year your home was built, and the type of home you’re buying. What can’t be argued is the importance of having a home inspection done on any house that you are considering buying. What’s just as important is to make the sale of the home dependent upon the results of the home inspection to assure that you are not going to be buying a house that may need thousands upon thousands of dollars worth of repairs or fixes to make it safe and/or livable.

Other Costs to Consider When Buying a Home

John Rainville — Tue, 10 Apr 2012 19:22:00 GMT

While it’s easy to remember the typical costs of buying a home such as legal fees, points, and so on there are actually quite a few other costs you may incur as you purchase a new home that you never thought of.

Costs that you could incur range from obvious things like cleaning costs to prep the home for moving in to costs that involve getting the house ready and decorated to fit your needs and wants.

Some of these expenses may be obvious to you and you’ve already thought about while others may seem obvious but in the rush and craziness of the entire home buying procedure you may not realize the extra money involved in making a purchase.

While it’s obvious you’ve thought about moving you may not have realized the costs involved with that move. If you’re lucky enough to have a friend or a few friends with trucks to help you haul your furniture and boxes that’s great; but don’t forget you’ll have to give them gas money for their truck too. If you don’t have anyone with a truck you can borrow you will have to rent a truck to haul your items in which will cost you not only the fee of the truck but a deposit and of course gasoline for the hauling truck or van you rent.

Along with transportation to move your items you’re going to need a group of friends or hire a group of professional movers to help you out. In either case there are generally costs involved. Obviously professionals have a fee they are going to charge and usually their fee will include the costs discussed above of a truck and gas. If you get a group of friends and family together to help you move you’re going to want to provide beverages and food to keep them nourished during the move.

Generally people will keep large cooler of cold water and/or soda on hand for the workers and at some point provide at least one meal during the move to keep them nourished and strong. Of course it depends upon what you decide to keep on hand. Either way you’re going to have to have some money kept aside for the friends or family that will help you move.

In some cases you may be moving into a condominium or an area that has a Home Owners Association which carries a monthly or annual fee. If these fees were not a part of your original paperwork, and generally they are not, you will have to be sure to have the money set aside to pay them for this month or depending upon how often they are paid even for the year. This can often be a substantial amount and if you’re not thinking ahead about paying these fees for the first month or at the beginning of the “year” or pro-rated year it can really be a not so thrilling surprise.

Luckily, in many cases when you have your services transferred the utility companies will often add the fees to your bill. However, if you haven’t had certain utilities in your name before you may have to pay a security deposit or connection fees up front because you don’t have an account set-up with them. These fees can add up quickly and be a surprise if you’re not expecting to have to pay to have gas, electricity, oil/fuel, internet, cable or satellite television, and water/sewer either connected or put into your name.

In some cases window treatments will come with the home but in other cases you may buy a home with bare windows that will need covered immediately unless you don’t mind living in a “fish bowl” type atmosphere. The less expensive way to start is to purchase window shades for each window but that can end up being a nice chunk of change, even if you buy inexpensive styles, once you realize how many windows you have to cover.

After you have each window covered with at least shades then you’re going to have to work on dressings such as curtains or other decorative ideas to dress the windows. While this is an expense that you may be able to put off and do a little at a time it can get costly

Remember you can start with inexpensive or even used dressings in the beginning and upgrade as you find the funds to decorate. Just make sure you realize ahead of time if you are going to have to provide shades and dressings for windows and which windows you’ll need to buy them for. In many cases it’s easiest to get the measurements, purchase and install the window dressings before the initial move in; not to mention it helps to make the house less visibly empty to those going by. A house with no window dressings is an obvious empty house that can invite vandals so you will want to dress the windows even before that big move day.

These few expenses are just the tip of the iceberg. Homeownership is not without costs. You will find that you’re going to need many different items as a homeowner that will cost you anything from a few dollars to a few hundred or so each time. Remember you now need lawn tools such as a mower, rakes, shovels, and such if you’ve never had to keep your own yard up as a renter. You may need to invest in a small tool box of tools you’re going to need to make minor repairs or updates to the house; things like a hammer, a few screw drivers, a utility knife, and various other utility tools.

While you don’t want to panic at the new costs you may incur, you definitely want to be prepared. All too often people use every last cent they have to make their original down payment and pay final fees a closings; leaving them literally broke until the next pay period. This could definitely cause some issues when you’re ready to move and in most cases you’re pretty anxious to get to that part of your life where you’re moving in to your new home.

The Art of Negotiating When Buying a Home

John Rainville — Mon, 09 Apr 2012 13:30:00 GMT

Buying a home is a big commitment and one that we want to take on with spending the least amount of money possible. So how do you negotiate the best price possible in order to get the home of your dreams?

Here are some tips and ideas. While you may think that you should always negotiate that may not be the truth.

There are times when negotiating can either be a moot point or even detrimental to your obtaining that home that you have your eye set on.

You may want to second think negotiating under the following conditions:

If it’s a seller’s market in your area and homes are moving fast you can lose the home by trying to negotiate a lower price. In many cases sellers have the upper hand and some buyers are willing to offer even a little above the asking price on a home in order to assure they get the house; especially when there are other bids coming in.
If the home is new you have little to no room for negotiating. These homes are built at a particular price for a particular profit amount. While they may come down some the chances are pretty low, especially if it’s in an area where homes are first being put up for sale in a newly built trek housing area and are built as high-end homes. You may have a little negotiating room if it’s one of the last few units in the sub-division to sell and the builder’s getting antsy to just finish selling off the rest of the trek.
If you’re having the home built for you or you are coming in during the building period of the home. The only real negotiating areas you have are going to be upgrades on things like carpeting or flooring, appliances, etc.
If the price of the home has already been reduced to sell and the price is below the CMA for similar homes in the same area.

If the home is priced above the CMA for similar homes nearby or basically overpriced in general.
If the home has been on the market for a substantial length of time, making the seller a little more eager to move the property.
When the agent has let it be known that the seller’s are eager to sell for various reasons, such as because of a recent job relocation or because they’re carrying two mortgages right now or to settle an estate. While it is not a very good professional idea for the seller’s agent to disclose that information sometimes it happens. Knowing the seller is desperate to sell is never a good move from the selling agent but it does help you to know that you may be able to even underbid the value of the home.

Don’t offend the sellers by offering a ridiculously low price for their home. If you offend them they may just end all negotiations completely without even making any counter-offer and you could end up losing out on the home completely.
Back up your offer and negotiations with facts. That means get estimates on repairs needed, show them the CMA for other homes that have sold in the area recently, and any other information that helps back up why you have offered them the amount you have offered.
When negotiating, if possible, show the sellers that you are pre-approved for a loan so they know that if they spend this time negotiating they’re most likely going to get the deal closed. If you walk in there without being preapproved you have nothing that says “This is what we will pay and we’ve been pretty much assured we can get the money to back it.” Pre-qualified is not the same as being preapproved!
Get and pay for your own independent home inspection and appraisal if at all possible with the results coming directly to you. You can share this independent inspection/appraisal with the agents and/or seller if you feel it will be helpful to negotiate; otherwise it is your own personal set of information that you can use to determine your final decision on buying the home and whether or not to negotiate.
Don’t be deterred if your original offer is counter-offered. Depending upon the agent and the seller this is very common and often expected on their end.

In the end you need to weigh how much you want the home and if you truly are willing to pay the price that it’s being offered at. How will you feel if you don’t get this home? If your answer is not too bad, there are other great houses out there then perhaps this home may not even be the one for you.

If you get a feeling in the pit of your stomach thinking if I don’t get this home I’m going to be devastated because there’s nothing out there that’s even come close this, then you may want to negotiate very carefully if at all. Many times a matter of even a few thousand dollars can barely even move your monthly payment price so in the end.

While most of the country is in a buyer’s market there are some areas that are definitely in a seller’s market, especially in vacation type areas or newly developing areas. These sellers’ markets are areas where negotiating can end up causing you to miss out on the home of your dreams, so think it through before you decide to negotiate or not.

What to Expect For the Housing Market in 2012

John Rainville — Wed, 04 Apr 2012 13:42:00 GMT

The levels for mortgage rates entering into 2012 are still the lowest on the books of several institutions since they were gathered, including MBA’s weekly rate survey as well as Freddie Mac’s weekly Primary Mortgage Market Survey. The rate for the average 30 year fixed price loan is just under 4%. This enables people interested in buying homes the opportunity of getting obtaining an affordable mortgage. In addition to this, the FOMC has continuously stated that they plan on keeping the Federal Funds Rate in the range of 0% to Â¼% for an indefinite period of time until next year. The FFR does not have a direct effect on mortgage rates. It is basically the rate at which banks receive loans from other banks. However, FFR does provide an indication about the way the rates are going so we can expect that there will not be a considerable increase in mortgages. The general impression created by the media is that getting a loan for purchasing a home is hard. This is a very misleading assumption and is badly affecting home sales and, thus, the US economy. According to the criteria for home loan set by the FHA, you can get a new home loan if you have a credit score of 620 and 3.5% of the purchase price of the home as down payment. Of course, this is not all there’s to it; however, if you have these going for you, you have a good chance of purchasing a house and should consult a local FHA-approved mortgage provider for further information about qualification. The value of homes went down significantly again last year. The losses were estimated to be 700 bl. In combination with the cheapest mortgage rates ever, the present market offers more affordability than prior to the boom in housing started to make 2012 primetime for investors to invest in a home. In my opinion, the values of houses will continue to drop throughout majority of this year; however, the rate of depreciation will be slower compared to recent years, and the values may even stabilize as well as increase in some areas as 2012 wears on. The issue that the market will be most concerned about in 2012 will be all foreclosures that have accumulated for the banks. At present, short sales and foreclosures constitute around one third of the country’s housing market. The situation is expected to worsen in 2012. This accumulation of foreclosures will continue to have a negative effect on home values, particularly in those communities that have been affected the most by this crisis. However, with the great affordability created by this situation, investors can be expected to buy and rehab foreclosures. The rehab business has had a very good 2011 and the possibilities are that it will continue to do well in 2012 as well, because a lot of people are ready to move out of the basement of their in laws and small-sized, overpriced apartments and into a more affordable piece of property that they can own. The housing market has experienced a big fall after reaching the meteoric highs in the boom years. No one could have said that five year on, we will still be trying to come out of one of the worst financial hangovers we have ever experienced. The housing market will see home values dropping to their lowest by the end of 2012; sales of house at any given time will be greater than the same time in 2011; and people investing in home will be the big winners.

The Art of Selling Homes in a Distressed Market

John Rainville — Mon, 02 Apr 2012 19:21:00 GMT

Ever since the economic melt-down beginning at the end of 2008, real estate markets around the globe have been experiencing tough times.

Within the United States, many cities have experienced sharp drop in prices while the prices have remained stagnant in the others.

Fewer cities across the country can boast of healthy real estate prices today. In neighborhoods that attract healthy prices from a sellers’ perspective, buyers are fewer and it takes several weeks before you can close a deal. Given these conditions, selling a home in a distressed market can be even more challenging. The following tips are designed to help you find that elusive buyer and close the deal.

This is the most crucial part of selling your home in a distressed market. The buyer – when he/she comes expects the pricing to be below the going market prices for an identical home. He/she is walking into a distressed market with price as a major driver. On the other hand, you cannot sell your home at a price that is ridiculously low. One way you can reach a middle path is by culling out the price movements in your neighborhood over the past several months and presenting it to the buyer. This way, it is easier to fix a threshold limit to start negotiation.

You know how important it is to ensure that you present your home to the buyer in a compelling condition. The manner in which you present your home should produce the ‘Who’ effect and do more of the talking by itself. Your kitchen is the most organized and well-kept place in the entire neighborhood and the baths are the envy of professionals in the hospitality industry. Strive to achieve these two goals and you are well past the major hurdles in selling your home.

A professional real estate agent can be immensely helpful in getting your home sold at a decent price. Choose your agent wisely. Examine his/her past performance and even try to talk to the past customers. Inspite of all the information that you can gather from the internet, your agent has access to more relevant information and the most recent happenings. The digital world can only supplement the human brain and not replace it. A professional real estate agent can also provide you with valuable information on staging your home, pricing, adding value to your offer and more.

Your mortgage lender is an interested party in the transaction. The buyer may have difficulties in obtaining a fresh mortgage to complete the transaction with you. Getting your mortgage lender into the act can be a smart move. You can potentially take away plenty of pains associated with obtaining a fresh mortgage and offer a tailored solution from your mortgage lender. Often times, this works even better than a discount on the prices.

Help the buyer get a feel that it is just that the markets are depressed and that your home by itself is still a good place to live in. Add some value by offering freebies like a car or other expensive gadgets that he/she can use. These small steps can potentially make the difference between closing the deal and losing that buyer who was almost ready to sign in.

Update on Real Estate Trends

John Rainville — Tue, 27 Mar 2012 21:18:00 GMT

We can’t argue that the housing market has been a bit of a roller coaster ride for the past year but it seems as though there are signs of hope in the future.

While figures seem to be holding at all time lows for housing prices, making it a great opportunity for buyers and a bit of a nightmare for sellers.

We’ve seen many people losing their homes because they’re underwater financially or the skittish economy has taken its toll on job and incomes. Almost anywhere you look the average amount of Short Sales has gone to record numbers; in most areas nearly 65% of sales are Short Sales within this past year and currently.

Agents are doing the same amount of business or even more but making only about half of the income they made before when homes were selling for much higher amounts. It’s a matter of more work that has to be put into a Short Sale, more negotiating, and simply more paperwork in general which in turn computes to more hours for less money in the end.

Oddly enough the same inventory is out there and available but because of the pricing decreases and extra work involved the money made on the inventory available isn’t nearly as lucrative as it was just a few short years ago. Most of the industry has seen more of “The Bad & The Ugly” than they have of “The Good & The Hopeful”; but many agents seem to have a positive attitude towards 2012.

Most agents are seeing fewer and fewer Short Sales coming in this quarter than they’ve seen in the past. They’re not seeing as many reductions in price either and while that may be attributed to the slower number of people putting their homes on the market currently it also is a positive effect of what most hope is a trend towards the positive.

At the moment many buyers think that the Real Estate market has pretty much bottomed out, offering houses at the lowest prices they’re going to see and interest rates at record lows; so they’re making their moves now to snap up the homes that are out there. While financing is still harder to get, agents with experience are finding creative ways to get financing when clients are being rejected by typical lenders. With this increase in sales and the decrease of homes coming onto the market out of necessity (Short Sales & Mortgages) the market is looking as if it may be on the upturn in the future.

According to a survey taken by HouseHuntâ¢ 29% of buyers in the last quarter of 2011 were first time home buyers. This was a slight increase from the 27% we saw in the 3rd quarter; many see this as a positive sign. They also reported that negative price reductions saw a small fall from 58% in the 3rd quarter to only 51% in the 4th quarter of 2011; again another positive sign in most realtors eyes. Each of these small changes in statistics, even if only slight, are definitely a sign of things moving in a more positive direction for the industry as a whole.

Agents are all saying they have a positive outlook for 2012 and hope that the small shimmering of hope they’re seeing in the marketing trend at the end of 2011 and the beginning of the 1st quarter of 2012 is a sign of things to come.

The reality of it all is that nobody expects a sudden explosion in the market by any means and they feel that the changes will happen slowly. Most don’t expect to see much of a real positive difference until at least the 4th quarter of 2012 but they do think that, although pricing remains stagnant and financing remains more difficult, by the end of this year we will experience a positive upturn and things will begin looking up.

For now agents are going to have to continue to put in more and more hours in order to maintain their former income levels and learn how to start utilizing incredibly skillful techniques to get their buyers financed. If they’ve stuck it out this long and maintained there’s not a whole lot of threat that they can’t survive a little longer but unfortunately with a lot more paperwork, hours, and inventiveness than they’ve ever had to do in previous years.

Deciding to Buy or Rent a Home

John Rainville — Tue, 27 Mar 2012 21:16:00 GMT

There are many advantages to purchasing a home, especially in light of the historic low rates that have become available.

Regardless of the fact that these rates dropped considerably as a result of the recent housing and financial crash, more and more people are driven to the path of home ownership versus renting.

There are a number of pros and cons associated with the recent industry crash. Scores of Americans are finally able to purchase a part of the American dream, as desired by so many. And the best part of all? Your money isn’t going straight into the can! This is just one of several benefits of purchasing a home instead of renting.

When you are considering your next move, it would be wise to consider your options carefully. One thing you should consider is the length of time you plan to live in your new home. If you are relocating for a few years for a job it would be wise to consider both purchasing a home as well as other options such as renting.

A number of studies indicate benefits of home ownership for not only the owners, but also for their family, neighbors, and community at large. Below is a brief list of other benefits to owning a home.

Locked In Cost – When you are dealing with a lease, you often have to worry about future rate changes. However when you buy a home with a fixed rate mortgage, your payments will not change, at least for the duration of your loan period. There is a chance you can see your taxes go up, but many homeowners don’t fret about their tax dollars going toward education or other core government tax-based essentials.
Tax Benefits – Another benefit homeowners have over renters is the ability to cash in on savings on their taxes. Homeowners are usually eligible for a significant tax reduction because they can deduct their mortgage payments and any paid property tax when they file their yearly income taxes. Though some may think they may not see a good return on their taxes from their mortgage, you’d be surprised by the savings that can be accrued just by interest rates and property taxes alone.
Debt Consolidation – If necessary, you have the ability to refinance your home’s mortgage in order to merge, or consolidate, other outstanding debt. This is also something you can deduct from you taxes and an opportunity that simply doesn’t exist for renters.
Build Equity – When you are paying rent every month, you are simply handing your money over for the roof over your head, and nothing else in return. However, when you are paying for a mortgage, your payments are going toward your principal [and any added interest]. Every year that you pay toward your home, you are paying toward the principal and are eligible to get the money back when you put your house on the market, later on. It’s basically a long term investment in the form of real property.
Peace of Mind – When you purchase a home, you can make your own decisions on everything from window trim and bathroom paint, to future plans for renovating that upstairs attic. You will be able to call all the shots without being worried that your land lord will be upset. You will have peace of mind knowing that you don’t have to depend on somebody else.

Buying a home is one of the most important decisions someone will make in their life. However, it is important to understand that owning a home comes with added responsibilities. For example, if you are used to renting a home, you probably never think about the landscaping work. You may not realize that your rental fees are helping pay a contractor to mow your lawn.

It is important that you evaluate all the facets of real estate before jumping in head first and buying property. Buying a home is a life-long decision. If you think you are prepared to buy a home or are simply sick of throwing away your hard earned money on rent, contact a real estate professional to help answer any questions you may have and to get you on the right track of home ownership.

Marketing Techniques to SELL Your Home

John Rainville — Tue, 27 Mar 2012 21:14:00 GMT

Once upon a time Realtors would come to your house, you would sign contracts for them to sell your home and then they’d proudly go to the front of your lawn and place a “FOR SALE” sign in front.

They would go back to the office and place it on the MLS (Multi Listing Service) for all the other Realtors and agents out there to know there was a new place available.

Then you would wait until either the right agent pulled the listing up for their buyer or someone would drive by and instantly fall in love with your home.

Thank goodness those are days gone by. Today’s technology has brought marketing your home to a whole new level giving you a much better chance to sell. There are possibilities, both old and new, that can be used to market your home and if your Realtor isn’t utilizing some of these, ask them why or if they could possibly do so. To be honest, if your agent is worth their weight they’re either already using at least most of these techniques or beginning to implement them into their marketing techniques. This is the marketing of today’s Real Estate world.

The TNT (Tried ‘n True) Techniques – this is the typical marketing techniques we’ve grown up with. Putting your sign in your yard, listing on the MLS, putting ads in newspapers or local Home Catalogs are all the “old fashioned” way that Realtors listed homes. There’s nothing wrong with using the old ways because they can and do still work; but you have to make sure you utilize them along with the new age technique.

Social Media Marketing – Your agent should utilize their own business versions of each of the different Social Medias. These medias include Facebook, Twitter, LinkedIn, YouTube, Google+ and any other of the up and coming medias you see out there on the internet. How do they utilize these medias to sell your home?

Facebook – is the largest by far and should be the first place the marketing campaign starts! First by listing pictures of your house; begin with Facebook where your home gets tagged with your names so your friends and connections see that your home is for sale and their friends, etc. By listing on Facebook their own business friends, other agents, customers, potential buyers, etc. will see the listing also.

Next is Twitter – Posting a short Tweet with a link to their “newest listing” (your home) with a few quick comments. They can also post often with a link to their site which should list all of the homes they are currently listing, including yours.

On YouTube – they can post everything from a PowerPoint type of presentation to a virtual walk-through tour of your house or an introduction to their own website telling about the many homes they have.

On LinkedIn – the Realtor is generally linked with other agents and this will allow those who are connected outside of their own Brokerage Firm to know they have a new listing. There are others listed as their connections also that will see the listing.

The Agency or Realtor’s website – should be very professional and specialize in showing all of their listings in a highly professional way. A virtual tour, not a click as you walk through style of tour, which gives you a 3-dimensional view of the homes they’re listing.

Google+ – is the new kid on the block and many agents won’t be listed here yet. It’s growing in size and hoping to take over as “the new Facebook” but isn’t even close yet. The G+ site should allow not only for pictures but they have a system where other people on Google can give it a “plus” and rate it so everyone can see the higher rated items.

QR Codes are not all that new as marketing techniques and if you’ve owned a Smart Phone you know what they are. There are special apps that you can download and when you scan the QR Code, which looks like a block of black & white boxes, information about that product comes up. Realtors are now utilizing these QR Codes directly on the signs of homes, on any articles or print information about homes they’re listing and anywhere they can place them. An interested consumer clicks their phone and takes a picture using the QR Code app which will then automatically take them to the mobile designed web page and can even give you a pop up which allows you to hit “Call Now” and reach the listing agent or their agency.

Email newsletters are another way many agencies and Realtors will keep in contact with their current and former clients. In these newsletters they can list their newest listings along with some interesting articles about real estate itself; whether it be trends or do-it-yourself articles. Delivering a note to potential buyers with pictures and links automatically allows the buyer to not only look at the information themselves but also perhaps share it with a friend that they know is looking for a home in your particular area or price range.

The marketing industry is continuously changing for every product line out there and real estate is a product line. Your agent should always be on top of the ever changing marketing techniques out there and even ahead of the crowd when it comes to developing their own techniques to showcase your house. Open houses do work but there are so many other ways to get the word out there that your home is for sale and on the market. Showcasing it in different ways that grab the attention of the buyer is always a plus. What it comes down to is making sure your agent not only knows and uses these techniques but keeps up on the newest techniques or discovers their own techniques as time goes on. In the end you want your home to sell and sell quickly!

5 Mistakes First Time Home Buyers Make

John Rainville — Sun, 25 Mar 2012 20:20:00 GMT

Sometimes first time home buyers don’t realize there are particular techniques and methods that will either help or hinder their ability to buy a home.

Lenders look for certain things and it’s good to know what to expect and what to do in order to look your best when it comes time to approach a mortgage lender for your first home.

You want to be as prepared as possible. Get in touch with professionals from all aspects of the Real Estate Industry; including a buyer’s agent or realtor, mortgage broker, and any other experts you will be utilizing for a home in your area like appraisers and home inspectors. This is one of the largest purchases you will probably ever make in your life and you will want to approach it with as much knowledge as possible.

What you can’t learn or keep in mind you will want a team prepared to help you when the time comes. Commonly your realtor will have a team in place already that they utilize regularly and work with on a standard basis. This gives you an instant team if your Realtorâ¢ offers this kind of service and most agents worth their weight will have these people readily available for you to utilize and guide you.

Ask your realtor and mortgage professional for on advice on preparing financially for buying a home. There are some things that you may end up doing that sound realistic to helping you, such as paying off an old debt, which can actually be more harmful to you.

Discuss your credit history and if there are any problems with it find out from a professional how to fix your credit history properly. Have a professional, certified credit counselor help you fix your credit; otherwise you could end up actually hurting your credit score by attempting to fix issues on your own.

Many times you may receive a gift of money for your down payment on a home from a family member or close friend. One of the biggest mistakes first time home buyers make is to have that money suddenly appear without paperwork to back up where it came from and why. In most cases, if you have the ability you want that larger amount of money to appear in your account and remain there for at least 18 months to two years.

When lenders see a sudden influx of large amounts of money just before the purchase of a home they fear that it’s a coy to appear to have a nice nest egg in place and be financially stable; often times borrowing money from friends and family to create a faÃ§ade of you having a good financial backup. Your agent should be able to guide you as to how to explain and what you need to do if you have received a gift of money towards your down payment.

While it would be silly to tell you not to move from one job to another for a major financial gain it is also silly to expect a lender to feel comfortable with you having recently changed jobs. A job change creates a bit of instability as far as work and assurance that you will remain at the job; last in the door is first out when a lay-off occurs.

While no job is guaranteed, it’s much more stable to have had your job for at least a few years in order to make a lender feel comfortable. This can also cause major issues when and if your job relies heavily upon commission and/or bonuses because the lender has no former pay to refer to and will in this case base you income solely on your base pay without commission; therefore giving you substantially less income. If at all possible maintain your job and don’t make any changes until after you’ve purchased your home.

If a lender sees a sudden shopping spree and credit cards being used, loans being taken out and money being spent freely it is a very definite yellow caution light to them. Generally this means a number of things including that you may be biting of more than you can chew when it comes to how much debt you’re taking on even before you add on the debt of a mortgage.

You will want to stay clear of making large purchases on your credit cards and/or taking out loans (including car loans) until after you’ve cleared your mortgage loan and are settled. Not only will this help you as far as what the lender sees but it also will help you in realizing what you can truly afford to spend each month once you have a mortgage in place.

If you have any credit issues do not take it upon yourself to “solve” them. In most cases people who do not know about how credit scores and history works will often think that simply paying off all of the “past due” debts that come up is best. Many will assume you work from the oldest past due to bring it up to date to the most recent past due but in many cases this can actually be the exact opposite of what you should do and can actually hurt your score.

If you have any issues with your credit you should immediately seek credit counseling and in most cities/states there are free counselors offered by non-profits who can help you for little to no cost. Getting your credit in line and up to par is probably one of the most important steps in beginning your journey towards becoming a home buyer and one of the first steps in “preparation” for being a home owner.

While the time period between first having thoughts of and becoming a home owner vary from person to person; it is safe to assume one of the best numbers to keep in mind to “do it right” is to consider the entire process of paving the walkway for the journey to take about two years. Two years is the minimum that lenders like to see your nest egg sitting in place in your banking account.

Two years is a good estimation of the time it takes to get your credit score in place the right way with professional help. Two years is the minimum amount of time that lenders like to see for your employment history at one job, without changes in employers. On average two years is kind of the magic number; however, that by no means is a rule of thumb that is set in stone.

Some people get engaged and before they even have their wedding are moving into their homes. Others decide that it’s time to buy a home and start looking and end up closing in a matter of 30 days or less or slightly more. There is not set amount of time to expect to wait before you become a home owner but for the process to take two years from start to finish or even a little longer is not an unrealistic thought.

You want to buy a home by doing it right from point A to point B and this is why it is so very important to employ professionals to guide you. The first step is shopping for a Buyer’s Agent and working with them to set up the rest of your team. Let them get an idea of where you stand and let them help you figure out what you need to do to qualify without too many complications to buy your first home. Agents are willing to work with first time home buyers, even when they realize it could be a substantial wait until the day you’re sitting at that closing table.

2012 May Be THE Year for Buyers!

John Rainville — Thu, 22 Mar 2012 20:19:00 GMT

Many housing experts claim that 2012 will be the turn-around year for real estate. We all know that it’s been a buyer’s market since the housing climate hit rock bottom in 2008.

However, just like the economy, analysts hope 2012 will bring more promising housing in communities across the states.

Many experts are starting to see signs that the economy will bounce back. In fact, we are seeing unemployment figures starting to drop, which means there is more confidence among businesses that are hiring. If there are more businesses hiring, there will be additional opportunities for realtors to work with clients seeking new homes in their perspective areas of employment. That’s part of the reason why so many realtors are saying this is the perfect time to buy, in addition to being able to lock in affordable rates while the market is still at bottom.

When seeking a home, it is crucial to keep your finances in order so you know what is realistically doable for you. Think about what you or your partner can compromise on. Where do you want to live? Do you plan to move in the future? Is there a chance that children will play a factor in your decision? What type of community services would you like provided? These are all questions that should be carefully analyzed before you make your final decision in buying your next home.

After you determine what you would like to see in your new home, you will have to remain realistic with your budget. Gone are the days when mortgage lenders and banks are approving every loan that crosses their path. In fact, that is a complete obsolete scenario with tight regulations now in place to protect both the home owner and lending companies which have been impacted by a number of defaulted loans.

There are factors you will have to take into account when purchasing a home. It is not a simple decision. In fact, it includes mounds of technical paperwork. Buying a home is an investment that you will be paying off in years to come. If executed properly you will see returns on your payment in the long run.

When you are searching for that “perfect property”, remember to do some research. Take the extra few minutes to review home prices for surrounding homes in the community. That way you will know if you are being offered a legitimate price. Some things you may want to take into account are the services you may be taxed for, such as recycling and street cleaning. It may seem like just a few extra dollars on your tax bill but over time these fees can add up.

You will also want to review the surrounding communities for religious and educational institutions. You may also be interested in seeing the break-down of your tax rate, to see exactly where your hard earned dollars are going. You may be pleasantly surprised to find out that some of your tax dollars are going toward building a new community park or school.

When you are searching for your next home remember there is nothing more important than finding a real estate agent that works around your needs. A good real estate agent will work on your behalf, to help you lock in the best mortgage rate. They also have a better understanding of the real estate market and surrounding market trends.

A good real estate agent knows how to help you through each and every step involved with the process of buying a home. They can make the process dramatically easier and get you a deal that will fit into your budget. Buying a home can be a life-changing decision, that’s why it’s highly recommended that you find an agent that understands exactly what you are looking for.

Selling Your Home During a Divorce

John Rainville — Thu, 22 Mar 2012 20:17:00 GMT

Unfortunately many marriages end in divorce. No matter how it ends or what the reasons, when you own a home together it means one of two things; selling the home and splitting any positive proceeds from the sale, or one person remains in the home while buying the other out.

The first position of simply selling the home and splitting any remaining proceeds is pretty cut and dry. But when one person remains with the home, buying out the other half, it is a little more complicated.

Here is some insight to think about when buying out your ex-spouse during a divorce. First and foremost, you’ve probably heard it a million times before but we’ll say it again; keep things civil and decent if at all possible because working with an angry ex is much harder than working with one who is still civil with you.

You will be forced to obtain an appraisal on the house but that appraisal is not written in stone. Alone with an appraisal ask your agent to produce a CMA to compare similar houses around you that have sold. If the appraisal is much higher question why and ask that a more realistic agreement be reached.

Know that buying your half of the home’s worth means that in most all cases you will have to obtain a loan. In some cases there may be enough equity in the home to obtain a home equity loan while in others there may not and a standard loan may apply. In many cases you may have trouble obtaining a loan (this is where remaining civil helps) but you do still have some options.

If you cannot obtain a mortgage you may be able to get one with a co-signer. If there is no chance of a co-signer, your ex could obtain a loan for the balance of the mortgage owed and pay it off; then you can obtain a home equity loan for the amount left to be paid out, often at a better interest rate and terms. This, as said, takes advantage of a civil break up to this point.

You will need a new title policy with your new mortgage; the reason behind this is to assure that there are no other debts against the title without your knowledge. You may want to ask your lawyer about the recording of a new deed and specifically if they need a particular type of deed that needs filed.

Unfortunately there are times when we are forced to leave or obtain different options of mortgaging a home and when there are human feelings involved it can always be touchy. When you’re trying to gather all aspects of your life as they are changing, take a moment to reflect upon the moment and put it in perspective and realize that this is just yet another door closing as one opens to a new world.

Great News for Buyers! FALLING PRICES!

John Rainville — Thu, 22 Mar 2012 20:16:00 GMT

It’s always nice to hear that the price of something is supposed to drop but it’s also rare you hear those words in today’s world.

Well the market expectations for 2012 come with some good news for buyers as home prices in most areas are expected to drop another 5%-8% as we see the last of the large foreclosure market winding down with the final foreclosures hitting markets in various areas.

With prices dropping in most areas mean that buyers are going to get more bang for their buck; which is always a great thing for home buyers.

Whether you’re a first time buyer or a buyer who is buying to upgrade, downsize, or even investing it seems that in most areas of the United States we will continue to see a slight drop in prices of homes. There will always be areas that don’t see this trend happening, which is why it’s best to work with a Buyer’s Agent because they will know the area and be able to give you valuable knowledge.

The first thing you think is that if suddenly it’s not only a Buyer’s Market but a Buyer’s Market with even lower prices that homes are going to be flying off the market so to speak. Unfortunately that’s no longer how it will work. After the last financial industry mayhem which caused so many foreclosures and short sales to happen, lenders are not going to hand out money nearly as quickly to those who are ready to take on a mortgage. Rates are currently at some of the lowest, yet these extremely low rates are only offered to those with good credit for the most part.

This doesn’t mean that you have to have perfect credit but be prepared to be turned down if you don’t. This will cause you to have to literally “shop around” for a lender who will accept you and you will have to accept their terms if you want to buy. This may, for those without the perfect credit, end up causing those extremely great priced homes to actually become a little higher priced in the end cost. Paying higher interest rates will mean paying a larger amount of money in the end. So that money you saved with a lower priced home you may end up losing out on with higher interest rates. While it may sound bad, it’s really not that horrible when you think of it as a package deal.

When you go out and get a car, if you have a junker to trade in they give you the illusion that they’re giving you all kinds of money for that junk car. The reality is they’re giving you nothing and they’ve marked up the price of that car you’re buying. They have a set price that they can sell that car for and make a profit. If they were to be honest and give you that best price possible everyone would pay the same amount because that car is valued at that particular amount. If you have poor credit or even slightly imperfect credit now you’re going to pay even a little more because you’ll get financed but you’re a slightly higher risk.

Now that same car with no trade in, they’re going to tell you they can give you this great price which is going to be the same price as the incident above where you had the junk car trade in. The reality is that either way the car is going to sell for a particular price and what’s going to change your payments is going to be your interest rate. If that car truly is bargain priced, whether you’re buying it at a higher interest rate because of not so good credit or at a lower interest rate, you’ve still grabbed a bargain. What changes is the size of your payment due to the interest rate you get your loan at.

Buying a house is no different. Think of it in its entirety and realize that like most things in life it’s all based on your perceived ability to repay and your past history of making payments. You’re still getting the great priced home but you’ll pay a little more than perhaps someone else who has perfect or nearly perfect credit. The truth of that being that in the end you’re still paying less either way because your base amount of that home is going to be priced lower, at least for the first half of this year.

It comes down to getting on the buying wagon as soon as you possibly can. Right now the interest rates are generally low, houses are selling at lower prices in most places and it looks like they may remain to come down for now. If you’re thinking of buying you can take your chances that you can hold out a bit longer to get even more for your money but to put it in perspective even 10% lower isn’t going to make enough of a difference if you find a home you truly fall in love with. While financing is a little harder to get, the right agent can help you with that and in most cases there are alternative financing options for those who don’t qualify for typical lenders. You have to be careful and fully understand what you are signing but in the end if you can get a house in this market that is truly at its best for buyers in general perhaps the time to buy is NOW before prices go UP, UP, UP!