Wednesday, March 16, 2016

The Main Reason to Use a Real Estate Professional when Selling Your House

The Main Reason to Use a Real Estate Professional when Selling your House | Keeping Current Matters

Every homeowner hopes to accomplish five goals when selling their home:
  1. Sell it for the best price
  2. Sell it within a predetermined time
  3. Sell it with the least amount of hassles
  4. Close on the sale the same day they move into their new home
The fifth reason is the most obvious and the most important:
  1. They want to make sure it sells.
In order to dramatically increase the chances that the house sells, a homeowner should list with a real estate professional in their market. Why? Because agents have access to the vast majority of the available buyers!! According to the National Association of Realtors(NAR) recently released 2016 Home Buyer and Seller Generational Trends Report, 87% of all buyers purchased their home through a real estate agent or broker. And more that 8 out of 10 buyers in every age group used an agent (see chart below).

The Main Reason to Use a Real Estate Professional when Selling your House | Keeping Current Matters

Bottom Line

If you want your home sold, the best way is to go where the buyers are. The NAR study revealed that the vast majority of purchasers will use an agent when they buy. Meet with a local real estate professional today if you want the best chance of selling.

Source: The KCM Crew/Keeping Current Matters 03162016

Thursday, March 10, 2016

Study Again Finds Homeownership to be a Better Way of Producing Wealth

Study Again Finds Homeownership to be a Better Way of Producing Wealth | Keeping Current Matters

According to the latest Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index homeownership is a better way to produce greater wealth, on average, than renting. The BH&J Index is a quarterly report that attempts to answer the question:

Is it better to rent or buy a home in today’s housing market?

The index examines the entire US housing market and then isolates 23 major markets for comparison. The researchers use a “'horse race' comparison between an individual that is buying a home and an individual that rents a similar quality home and reinvests all monies otherwise invested in homeownership.” Ken Johnson Ph.D., Real Estate Economist & Professor at Florida Atlantic University, and one of the index’s authors states:
“The nation as a whole is in buy territory. Continued near record low mortgage rates, unsteady stock market performance, and rents (on average) now out pacing the cost of ownership (maintenance, taxes, insurance, etc.) all combine to favor owning and building wealth through home equity over renting and reinvesting in a portfolio of stocks and bonds.”
Dallas, Denver and Houston currently remain deep in rent territory but, “there is some degree of good news from these markets for homeowners as the cost of renting is now increasing at a faster rate than the cost of homeownership — reducing the advantage of renting over buying.”

Bottom Line

Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, so lock in your housing cost with a mortgage payment now.

Source: Keeping Current Matters/KCM Crew/03082016

Tuesday, March 1, 2016

WHEN THE DREAM HOUSE IS A MONEY PIT

Buyers that fail to pay attention might find that the dream house is a money pit. The vast majority of agents have little to no experience evaluating a home. Seller’s disclosures? Please, we’ve written repeatedly that home buyers should not put much faith in seller disclosures. Home inspectors should always be consulted but a good 75% of a report is boilerplate; issues noted are often followed by “…and an expert in the field should evaluate…”. If a buyer fails to follow up – any many do – problems can arise. Making a home purchase look boring takes a significant amount of experience and teamwork; one of the most important aspects is fully understanding and addressing the flaws in every home. Miss something and that dream home becomes a bottomless money pit. What to do? Plenty..... There are common sense moves that every buyer should do - and they very fist and basic thing is ensure that everyone involved is an EXPERT. The single most important asset to a buyer is their agent, yet and still so many buyers do not take this most important step seriously. Many buyers either don't care to or don't know how to properly select a real estate agent. Miss that and trouble follows because most buyers will depend on their agent to keep them out of trouble. There are three main areas to focus attention on to avoid falling into a money pit home.



1. QUALIFY everyone involved in the transaction. From agent to inspector to contractor to surveyor to.......just a few seconds on Google...do something!

2. Learn about homes, what to look for and what might be common problems for homes in the area under consideration. Knowing trends or issues in the area, age of homes, materials used, trends....all help paint a background for a buyer.

3. Understand options if and when something arises. The agent is critical here; are there outs in the contract to prevent the buyer from being trapped in a deal? While the above may be common sense, it’s fascinating how stupid – yes that’s harsh but it’s true – some home buyers are when it comes to this process. It’s baffling; would a buyer act as nonchalantly if handing 400K to a financial adviser? Why would they use Uncle Tony who is between jobs as their agent knowing Tony isn’t a pro? Read more and dive deeper into ways to avoid The Dream House that Becomes a Nightmare. Don't let what should be one of the best things become one of the worst - or a financial calamity that does lasting damage.

Sources: Realty Times, Hank Miller/Zillow/AOL Real Estate/ New York Times

Tuesday, February 23, 2016

Thinking of Buying A Home? What Are You Waiting For?


Thinking of Buying A Home? What Are You Waiting For? | Keeping Current Matters

With spring right around the corner, you may be wondering if you should wait to enter the housing market. Here are four great reasons to consider buying a home today instead of waiting.
  1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.3% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.4% over the next year. The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent reportprojects home values to appreciate by more than 3.2% a year for the next 5 years. The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.
  1. Mortgage Interest Rates Are Projected to Increase

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained below 4%. Most experts predict that they will begin to rise over the next 12 months. The Mortgage Bankers Association, Freddie Mac & theNational Association of Realtors are in unison projecting that rates will be up almost three-quarters of a percentage point by this time next year. An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.
  1. Either Way You Are Paying a Mortgage

As a paper from the Joint Center for Housing Studies at Harvard University explains: “Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”
  1. It’s Time to Move On with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But what if they weren’t? Would you wait? Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Bottom Line

If you are ready and willing to buy, find out if you are able to. Meet with a local real estate professional who can help you find your dream home.


Source: Keeping Current Matters / KCM Crew 02232016

Tuesday, February 16, 2016

HOW TO KNOW IF YOUR HOME IS MAKING YOU SICK?

Between flu season and spring allergies and surprise summer colds, it can be difficult to stay healthy. But what if the biggest culprits aren't high pollen counts or people who don't cover their mouths when they sneeze? It could be that your house is making you sick. "Toxins, pesticides, gases, mites, and molds are everywhere, and the more you're exposed to them, the greater your risk for developing the health problems they can cause," said WebMD.
And the numbers are a bit staggering. According to the Environmental Protection Agency and the Department of Housing and Urban Development, "More than 30 million homes have significant health issues," said the Washington Post. "The trouble is that many homeowners and renters aren't aware of the link between their housing and their health. Carbon monoxide poisoning can initially resemble the flu. And exposure to some toxins may be confused with seasonal allergies." Here are some of the biggest offenders and what to look out for: Dirty carpet Every step you take through your house can be spreading dangerous germs. Tracking in dirt and animal waste can pose health risks, while using rugs in areas that are damp has been shown to exacerbate asthma symptoms. Vacuuming frequently and having regular deep cleanings is recommended for carpeted spaces. But, your vacuum could be doing more harm than good.



Southside Restoration
"This essential household item, which we are recommending to take care of most household allergens, could actually be spewing them all back into the air," said Huffington Post. "The best vacuum has a HEPA filter, (which) filters more than 99 percent of the particulates in air. And if you use a cleaning service, make sure they use a HEPA-filter vacuum, as well, so your home isn't being contaminated from allergens in previous houses." Open trashcans and other standing water Mosquitoes are attracted to water and will seek out the little bit that collects in the bottom of your open trashcan or kiddie pool. Keeping an eye out for potential problem areas can help keep mosquito bites at bay and help prevent more dangerous conditions like West Nile and the Zika Virus.



Total Mosquito Control
Critters Leaving dog food in the backyard can attract rats and mice, and even bobcats and coyotes. Keeping a vigilant eye out can help ward of predators and nuisances, but bringing food in promptly if you're feeding your animals outdoors is a better way to keep them safe. Dust mites Just the term alone is enough to make us cringe. But that's nothing like having to deal with a dust mite infestation. The best way to keep them away:
  • Keep cool - dust mites need a warm, humid environment to survive.
  • Clean frequently - limiting dust and dirt in your home is key.
  • Wash your bedding - bedding and mattresses are among dust mites' favorite spots to hang out. Washing them in hot water can help kill them off. A special mattress cover that protects your sleeping area can also help.
Gases According to the Centers for Disease Control and Prevention (CDC), nearly 400 Americans die from unintentional carbon monoxide poisoning every year. Carbon monoxide is a toxic gas that is colorless and odorless. Installing a carbon monoxide monitor, which you can pick up for under $100, is the easiest way to prevent a tragedy. Carbon monoxide is perhaps the most well-known combustion gas that can be a danger in the home, but it's not the only one. Nitrogen oxides and sulfur dioxide "can cause flu-like symptoms, respiratory illnesses, or even death," said WebMD. "Don't use unvented combustion appliances (such as portable kerosene heaters) indoors. Use an exhaust hood over a gas stove. Clean and maintain your chimneys and furnace every year, making sure that they are properly vented." Water pollution "The U.S. has one of the safest water supplies in the world, but that doesn't mean it's failsafe," said WebMD.

 
The Fiscal Times
Indeed. The critical situation in Flint, Michigan, which has poisoned thousands of residents with its unsafe water, is unusual - thankfully - but that doesn't mean we all shouldn't be vigilant about our drinking water. "To check the water quality in your area, call the EPA's Drinking Water Hotline at (800) 246-4791, or visit the web site at www.epa.gov/safewater/dwhealth.html. If you use a private well, test your water every year for nitrates and bacteria." Lead and radon In an older home, lead and radon could be a dangerous issue. "More than 20 million housing units have a lead-based paint hazard. And more than 6.8 million homes have radon exposures above the level at which remedial action should be taken, as determined by the EPA," said the Washington Post. There's an easy test to check for lead paint and radon - important since both can cause illness or even death. Mold One of the most dangerous substances you can be subjected to in your home is mold. Often, mold is unseen because it's behind walls. Checking for the nasty black stuff that you can see with the naked eye and then doing a leak check are the first steps toward eradication. "Unseen leaks may be causing mold growth in your home, which can be problematic for people prone to asthma and allergy induced breathing problems," said Huffington Post. "Check pipes, closets, basements, and attics to ensure all is dry. If you find any leaky areas, clean and dry where the water has accumulated, and contact a plumber or roofer to fix the situation." The air conditioner can also be a culprit. "When air-conditioning cools your home, for example, it often leaves traces of water in the ducts that become the perfect breeding ground for mold and bacteria," they said. "That microbial growth is often the cause of respiratory issues—asthma, allergies, coughing, and headaches. But it should also be said that not all air ducts become contaminated, and not all people become symptomatic from those that do." Having air ducts cleaned out by a professional every few years can help, and will also keep your machine running better.
Source: Realty Times, Jaymi Naciri, February 2016

Wednesday, February 10, 2016

YOUR CREDIT SCORES EXPLAINED

Lenders want to give you a mortgage, but they also want to minimize their own risk. The easiest way to retard risk is by using your credit scores to make lending decisions. Credit scores are compiled separately by three consumer reporting agencies -- Equifax, Experian, and Trans Union. These credit reporting bureaus calculate scores differently, and base their scores on information that may differ from other bureaus. Equifax Beacon 5.0 Facta: scores range from 334 to 818. Experian Fair Isaac V2: scores range from 320 to 844. Trans Union FICO Risk score Classic 04: scores range from 309 to 839. Your credit score is a number that reflects the information in your credit report, whether you pay your bills on time, how much you owe creditors, payoffs, and derogatory information such as liens. It also includes inquiries into your accounts from lenders, landlords, and employers. When you apply for a home loan, your application includes giving your lender permission to "pull your credit" and base the decision to lend to you and the rate of interest on the information contained in your credit scores. The higher the score, the better terms you'll receive from the lender. Once your credit scores are reviewed by your mortgage lender, you'll receive a computer-generated report of the findings in the mail, but it won't have a copy of your entire credit report. It may include key factors that adversely affected your scores. Some examples might include:
  • Too many inquiries in the last 12 months
  • Time since most recent account opening is too short
  • Proportion of loan balances to loan amounts is too high
  • Too many accounts with balances
  • Amount owed on revolving accounts is too high
What if you're declined for the loan, or your lender wants to charge higher interest than you were expecting? Is there anything you can do?
Yes, talk to your lender and ask for help repairing or correcting your scores. For example, you may have innocently done something that resulted in a negative score, such as closing a line of credit. Or, you may not have realized that a late payment would bring your score down as much as it has. The lender will tell you exactly what you need to do. Under federal law, you have the right to obtain a free copy of your credit report from each of the national consumer credit reporting agencies once a year. There are several sites where you can go to get your free reports includingAnnualCreditReport.com or FreeCreditReport.com. If you find an error such as derogatory data that doesn't belong to you, or an account that shows the wrong balance, simply show the lender your canceled check, release of lien or other proof that the credit report is wrong. You'll also have to correct the information yourself separately with each agency, and it may take a few weeks for the agencies to record the updated information. In the meantime, work with your lender and do what he/she tells you to do to get the best rate, including paying more than the minimums, paying on time, and making sure that your debt to income is well within your ability to repay all your loans.

Source: Realty Times/Blanch Evans 012816

Friday, February 5, 2016

6 TIPS TO MAKE HOUSE HUNTING MORE ENJOYABLE FOR KIDS

It is important to involve children in the search for homes for sale as much as possible. Doing so will help them feel excited about finding a new home or vacation destination and lessen the stress for both you and the kids.

My DREAM living room 491 S Sanga1CMPM
Here are five tips for house hunting with kids:
  1. Think beyond the house
Searching for homes can be an especially anxious time not just for adults, but for kids as well. You have to understand that these kids are being asked to leave their friends, their school, and their extracurricular activities. You can make house hunting more fun for your kids by asking your realtor to include stops at places that might interest your children. These may include parks, schools, churches, and sports fields. You might also plan side trips to allow your children to explore their new community.
  1. Help them appreciate what lies ahead
You can minimize the stress by helping your children focus on what lies ahead. You and your kids can search the internet and do some research on the place you’re moving to. You can try and find out how many people live there and the cool places to visit. You may also cut photos from old magazines to create collages of things your kids would like to see in their new home or new bedroom. While touring homes, you may ask your children to take photos, or keep a checklist noting the best features of each home you visit. This way, your kids will feel more involved in the house hunting process.
  1. Set the rules
You can avoid problems by talking with your kids prior to viewing homes. Review a list of rules with them. Make sure the kids know that they will be going through someone else’s home. Tell them not to touch any of the seller’s stuff. Instruct them that they must treat the seller’s home with respect and be on their best behaviour. Ensure that your kids are in the same room with you at all times.
  1. Don’t drag them to every house
During the initial search, it might be better if you leave your kids at home. To minimize distractions, you can just bring them along once you have narrowed your options down to just a few houses. That way, your little ones won’t get too attached to a particular property only to be disappointed when it gets cut from list.
  1. Turn your house hunting into a road trip
Another thing that you can do to make house hunting more fun for the kids is by turning it into an exciting family event. You may arrange a few family activities in the town or neighbourhood where you are visiting an open house. You may try a local eatery, a library, or a new park. This way, the kids will be encouraged to explore and see the potential in their new home and help establish a sense of belonging. Check out this website today for the latest listings in the Memphis.
Source: Keeping Current Matters 02052016