The Voice of Delaware Professional Real Estate Professionals

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Home Values going up???

“A growing number of pundits feel that the Fed may mention some new stimulus in the form of a third round of Quantitative Easing (QE3). The news could initially bode well for Stocks and, in turn, could be negative for Bond prices and home loan rates. So this is an important news story to watch!”

-MMGWeekly-via John Thomas

Does this affect you as a buyer or as a seller??  YES!

Sellers first:

O.K., If Home Mortgage rates go up (the cost of borrowing money to buy a home) the monthly payments of a potential buyer will go up…aaand buyers buy based on that payment- soooo, if your $250,000 asking price is a monthly payment of $1164.89* (*3.8%-Principle and Interest only) and the rate goes up only 1%-to 4.8%….now THAT SAME PAYMENT buys $220,000, so your home is now “worth” $220,000…..YES, you LOST another $30,000!!!!!!……

Buyers, your turn:

K, here we go….Same scenario as above……Your money DOES NOT go as far as it used to:(….Now you’re looking in a low $200,000 neighborhood instead of a mid $200,000 one….BIG difference!!

But, Jeff, you just said the home values dropped!  Yes, cept, sellers are slow to accept that change.  Try “loosing” $30k overnight and see how quickly you get over it:)

What to do:

Depends on your individual situation and if you need to sell asap, if you do (need to sell asap) you may want to quickly find the market value (yes, reduce your price) asap and get er SOLD!!!

Buyers…..also depends….economic factors will not always be in your favor, when you find the home you LOVE, move on it quickly…..there are not many “nice” homes out there and the good ones go quick.

If you like risk and are in no hurry, it may pay to “see what happens”:)

It’s that easy:)

Why not PRICE IT HIGH and SEE WHAT HAPPENS??????

Biggest MISTAKE in Real Estate!

Start with a high price and work your way down…..why is that a hugh mistake??

Wow, let me count the ways…….

1. A property generates the most interest when it first hits the market -Starting HIGH and dropping the price later MISSES the excitement and FAILS to generate strong activity

2. If sellers FALL behind a market with falling home values (like we are in now), they can end up chasing the market down, because home values are falling faster then their price reduction.  This will end in a sales price that is BELOW market.

3. Pricing your property too high may make it necessary to drop the price below market price to compete with new, well-priced listings.

The best thing you can do in this type market is find an aggressive, experience (in a buyers market) Real Estate Professional that is strong enough to tell you what you need to hear, NOT what you WANT to hear:)….This type of professional will not “buy” your listing to help them derive buyer leads from the sign they place in your fornt yard.  Their objective to SELL your home, not LIST it…..

They will tell you what to do, and if you do what they tell you and allow them to do their job….your home will SELL:)

Easy, really:)

 

 

Stop Spending Money on Rent and Own a Home Instead

How to Stop Spending Money on Rent and Own a Home Instead

Joe Stumpf, ByReferralOnly

 

If you’ve always rented a place to live, buying a home can seem like a monumental undertaking.  This report breaks down this process into clear steps.

 

Seven Steps to Transition from Renter to Homeowner

 

Step One:  Identify Your Needs and Wants

Begin your search by considering the kind of home you need and want.  Write down your specific requirements like number of bedrooms, size of yard, floor plan, location, schools, etc.

 

Step Two:  Determine How Much You Can Realistically Afford

Consider your budget and financial obligations.  Decide what monthly house payment you can really afford.  Most mortgage consultants advise limiting your payment to no more than one-third of your net monthly income.

 

Step Three:  Get Pre-qualified or Pre-Approved By a Mortgage Consultant

 
When you know in advance the amount of loan you can obtain, you can focus on searching for houses in the targeted price range.  This can save you time when you find that perfect home, because sellers favor buyers who are pre-approved.

 

Experienced mortgage consultants can let you know what specific loan programs are best for you.  By taking a look at your financial situation and credit history, a mortgage consultant will tell you if you can qualify for the home you want, and will find a loan that best suits your needs.

 

For the approval process, you and your mortgage consultant will complete the required documentation and submit it to an underwriter.  A pre-approval is an actual loan commitment from a mortgage consultant or lending institution.  This means that you definitely qualify for a loan.  Talk to your mortgage consultant about the costs and time involved to secure pre-approval.

 

Step Four:  Work With an Experienced Real Estate Consultant

You can learn a lot about consultants by talking to them about their experience.  In a short time, you’ll be able to determine if they’re the right person to meet your needs.

 

Questions for Agents:

 

  1. In what areas of town and price      ranges do you specialize?  (Keep in      mind that some agents specialize in only one area or one price range.)

 

  1. My objective is to buy a house by      ___________.   How will you help me achieve this      goal? 

 

  1. How often will you update me with      new property listings?

 

Step Five:  Tips for Successful House Hunting

 

  1. Keep an organized record of your      research.  Write down comments about      the homes you see.  Keep track of      your likes and dislikes and offer feedback to your real estate      consultant.  Some buyers are      reluctant to tell an agent what they really think of a house; they think      the agent might take it personally.       Remember, the homes don’t belong to the agent!

 

  1. Make sure your agent is aware of      your time schedule and expectations.  Do you like to look at one or two homes      per session?  Four?  Eight?  Discuss this with your agent.

 

  1. Tell your agent about any homes      you see that interest you and that you’d like to know more about.  This includes homes you’ve      “discovered” as you explore the area and those advertised in the      newspaper.

 

  1. If you like to spend time driving      around by yourself looking at houses, ask your agent for a list of      drive-bys — homes to consider first from the outside.  Your agent can make appointments to show      you the interior of the properties that appeal to you.

 

  1. It’s important to know beforehand      whom your agent represents.  Some      agents work only for the seller. 

 

Step Six:  Make a Purchase Offer

 

Work with your real estate consultant to determine the most appropriate purchase offer.  Your consultant will present the offer on your behalf.

 

Step Seven:  Save on Your Initial Investment and Monthly Payments

There are only two major investments to consider when buying a home.  These are the initial investment, which includes down payment and closing costs, and the monthly payment, which includes principal, interest, taxes and insurance.  Here are some things to consider.

 

Initial Investment

 

  1. Choose a low or zero down payment      loan.  You don’t necessarily have to      put 20% or even 10% down.  You can      pay 5%, 3%, or even zero down on some loans.

 

  1. Some Lenders have programs to      cover your closing costs.  Ask your      mortgage consultant about them.

 

  1. As part of your offer, ask your      real estate consultant about the seller’s paying some of your closing      costs.

 

  1. Shop around for your homeowners’      insurance.  A little comparison      shopping can save you money.

 

  1. You may be able to deduct money      paid for discount points from your gross income before computing your tax.       See a CPA for more information.

 

Monthly Payments

 

  1. Get a loan that doesn’t have monthly      mortgage insurance premiums.  You      may be able to reduce or eliminate them by paying a little more at      closing.  By putting 20% or more      down, you can eliminate them entirely.       Talk to your mortgage consultant about other ways to eliminate      monthly mortgage insurance payments.

 

  1. Take advantage of rate lock      programs that are currently available.  You can generally lock in a low interest      rate 30 to 45 days in advance.  Secure      an appraisal before you lock in a rate.

 

  1. Remember that interest payments      on a primary residential mortgage are fully deductible.  Your property taxes are also deductible.      Tax rates definitely favor homeowners.       Be sure to declare both your mortgage interest and property taxes      when you file your income tax returns.

 

  1. Consider an adjustable rate      mortgage.  Adjustable rate mortgages      (or ARMs) can be as much as 3% lower than fixed rates.

 This report courtesy of

Jeff Garvey, Real Estate Consultant

GarveySells.com

Keller Williams Realty

302-463-8484

 

FREE First Time Home Buyer Seminar….

Hey everyone!  Wanted to let you know I am sponsoring a Free First Time Home Buyer Workshop this Saturday the 21st of April at the Christiana Hilton Hotel in Newark, DE.  We are going to have two sessions, 10 AM till noon and again from 1PM to 3PM.

The cool thing is the presenter for this seminar will be the author of the new book; Your guide to Buying Your First Home in Delaware and everybody that attends will receive a FREE HOME BUYER HANDBOOK, a FREE CREDIT SCORING HANDBOOK, and an opportunity to receive a free copy of their CREDIT REPORT. Now is the perfect time to buy with interest rates at all time historic lows and every home on clearance!!!

Click the Video below to watch a Video of the highlights of the Free First Time Home Buyer Seminar

If you or anybody you know would like to attend this FREE Seminar, please call me at 302-463-8484 or have them register online at http://DelawareBuyerClass.com Hurry seats are limited and it is filling up fast.

http://delawarebuyerclass.com/

Off With Their Heads!!!!

In the book-movie the Queen of Hearts would have taken off the heads of the Realtor who failed to sell her castle!!!!  Why, then do we accept such behavior in todays society??? 🙂

Their is no reason a motivated sellers house should not sell…..none.   And it should be gone in less than 30 days…..

Why?  Because the best agents, the professionals, know that the bulk of the activity (interest in the house for sale) occurs in the initial 3 weeks

So, it’s imperitive to have a strong marketing plan in place immediately to take advantage of all that interest.  IF MARKETED correctly, the home will have offers in this initial 3 weeks ….SOLD…….

If your “Realtor” failed to sell your home and you still wish to sell, please let me show you how we sell homes in less than 39 days…

As for the one that failed….”Off with their head!!”

Delaware First Time Homebuyers Workshop

Hey everyone!  Wanted to let you know I am sponsoring a Free First Time Home Buyer Workshop this Saturday the 17th of March at the Christiana Hilton Hotel in Newark, DE.  We are going to have two sessions, 10 AM till noon and again from 1PM to 3PM.

The cool thing is the presenter for this seminar will be the author of the new book; Your guide to Buying Your First Home in Delaware and everybody that attends will receive a FREE HOME BUYER HANDBOOK, a FREE CREDIT SCORING HANDBOOK, and an opportunity to receive a free copy of their CREDIT REPORT. Now is the perfect time to buy with interest rates at all time historic lows and every home on clearance!!!

Click the Video below to watch a Video of the highlights of the Free First Time Home Buyer Seminar

If you or anybody you know would like to attend this FREE Seminar, please call me at 302-463-8484 or have them register online at http://DelawareBuyerClass.com.  Hurry seats are limited and it is filling up fast.

http://delawarebuyerclass.com/

Spring is not good news for home sellers……

Why?  Because all the “wait and see sellers” (aka-non motivated) crowd will flood the market with their homes for sale….. here’s what happened…they took their homes off the market before winter, thinking it’s “not a good time to sell”, then they will place it back on the market in the Spring…..along with the all the new listings looking to “make a killing” during the Spring market……..Reality sets in…..

And……..

 

1. There will be 3-4 times as many homes on the market in the spring….(Yes, that’s 3-4 times as much competition for you).

2. Prices have continued to decline (so, yes, their homes are worth less now than they were last spring)

3. All these homes will force the value of all homes DOWN…(Supply vs Demand:)).

4. Motivated BUYERS were buying homes all winter:) (So the saavy sellers sold their homes for the highest possible price and have moved on with their life)

 

Sooooooo, if you really want to sell your home, Carpe Diem!!!!!  Seize the day!!!

 

Get it on the market and get it sold NOW….before the flowers (sale signs) start sprouting all over the place..

 

Happy Selling!!!!