HUD Offers REO Homes for $100 Down in Select States
10/24/2011 By: Carrie Bay
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HUD has approved a program aimed at putting foreclosed homes back into the hands of owner-occupant buyers.
In select states, from now into October of next year, buyers need a down payment of only $100 to purchase a HUD-owned REO home.
The buyer must be an owner-occupant, utilizing financing insured by the Federal Housing Administration (FHA). Standard FHA underwriting guidelines apply, and the sale must be for the full amount of the current list price.
The $100 down payment incentive program has been approved for two of HUD’s four national regions – the regions managed by the Denver Homeownership Center and the Atlanta Homeownership Center. HUD homes in the states listed, as well as the Caribbean are currently eligible for the program.
Denver Homeownership Center’s Jurisdiction:
•Arkansas
•Colorado
•Iowa
•Kansas
•Louisiana
•Missouri
•Minnesota
•Montana
•Nebraska
•New Mexico
•North Dakota
•Oklahoma
•South Dakota
•Texas
•Wisconsin
•Wyoming
•Utah
Atlanta Homeownership Center’s Jurisdiction:
•Alabama
•Florida
•Georgia
•Kentucky
•Illinois
•Indiana
•Mississippi
•North Carolina
•South Carolina
•Tennessee
•Caribbean
HUD’s $100 down payment incentive program can also be applied to an FHA 203k loan, which can be used to fund repairs and renovations on the home. The 203k program allows buyers to finance both the mortgage and additional money for rehabilitation needs with a single government-insured loan.
Matt Martin, CEO of Matt Martin Real Estate Management (MMREM), says this is one of the most exciting features of the new incentive program and should drive a lot of exposure to FHA’s 203k offering.
MMREM is under contract with HUD to assist with disposition sales of its repossessed homes. MMREM handles properties throughout 16 states, or about a third of HUD’s REO portfolio.
With an FHA 203k loan, “buyers can find a property that needs some TLC, fix it up however they want to, and finance the whole thing for $100,” Martin explained.
“MMREM is excited to work with this recent initiative, in a way that it supports putting HUD homes back into the hands of homeowners,” Martin said.
In addition to $100 down instead of FHA’s typical 3.5 percent down payment, HUD says it will also cover up to 3 percent of the closing costs in most cases.
Tuesday, October 25, 2011
Friday, October 21, 2011
Friday, October 7, 2011
Help For An Easier Mortgage Process
As underwriting guidelines for lenders become more stringent, we need to re-examine what a good mortgage application looks like. As home buyers begin their search for a home, there are a few items they should be aware of that they can do to help get their loans approved (with the best possible terms), and, at the same time, lessen some of the stress that goes along with the mortgage process.
1. Income documents
Most lenders want to see a full month of paystubs and two years’ complete Federal Tax Returns. Assembling them ahead of time and holding on to every paystub you get is a good idea even before you find a home and/or submit your mortgage application because it will save you time later. Moreover, looking at those documents and being prepared to explain any deductions that show up is crucial. Child support, alimony, garnishments, and Unreimbursed Employee Expenses are often crippling factors that, if explained and dealt with upfront, can make your loan approval smoother.
2. Asset documents
Most lenders will scour your bank accounts for the two months prior to going to contract. They are looking for large deposits because large deposits can signal a new loan that wouldn’t show up on your credit report yet. What’s a “large deposit”? Typically, any deposit that would represent more than your income can support. If you make $5000 a month, after taxes you likely net $3800 (or $1900 a bi-weekly pay period). Therefore, deposits in excess of that will need to be explained and documented. Sold a motorcycle? Have a paid receipt and motor vehicle documents in place. Received a gift? You will need a Gift Affidavit, proof of the donor’s ability and transfer of the funds. Any and all questions should be discussed with your loan officer.
3. Credit Score Optimization
Do your best to curtail your use of credit as it relates to your available credit lines. Target a cap of 30% of usage of available lines to get the best scores. Do NOT cancel credit cards. That will lower your amount of available credit, thereby raising your percentage of usage. That will damage your score. Do NOT shop for a car, explore life insurance, apply for a new credit card or increase the limits on your current cards because the running of your credit by people in other industries will also lower your credit score. Most importantly, don’t do anything that will require having your credit run without first discussing it with a mortgage professional who knows the impact it could have.
4. Appraisal Concerns
It’s unlikely you will make an offer to purchase without checking out comparable home sales. It’s also likely you received that type of data from the real estate agent you are working with. Make sure your agent prepares the same information for the appraiser. Data about similar sales, similar homes currently on the market and maybe even cost estimates for any repairs or improvements anticipated can preempt future problems with appraised values and conditions.
Overall, it is recommended that you hold onto copies of everything financial, think before allowing your credit to be run and work with an agent and loan officer who can use their experience to put your loan application in its best possible light…as soon as you start thinking about buying a home.
Comments (3)
Picking the Right Agent is Crucial
1. Income documents
Most lenders want to see a full month of paystubs and two years’ complete Federal Tax Returns. Assembling them ahead of time and holding on to every paystub you get is a good idea even before you find a home and/or submit your mortgage application because it will save you time later. Moreover, looking at those documents and being prepared to explain any deductions that show up is crucial. Child support, alimony, garnishments, and Unreimbursed Employee Expenses are often crippling factors that, if explained and dealt with upfront, can make your loan approval smoother.
2. Asset documents
Most lenders will scour your bank accounts for the two months prior to going to contract. They are looking for large deposits because large deposits can signal a new loan that wouldn’t show up on your credit report yet. What’s a “large deposit”? Typically, any deposit that would represent more than your income can support. If you make $5000 a month, after taxes you likely net $3800 (or $1900 a bi-weekly pay period). Therefore, deposits in excess of that will need to be explained and documented. Sold a motorcycle? Have a paid receipt and motor vehicle documents in place. Received a gift? You will need a Gift Affidavit, proof of the donor’s ability and transfer of the funds. Any and all questions should be discussed with your loan officer.
3. Credit Score Optimization
Do your best to curtail your use of credit as it relates to your available credit lines. Target a cap of 30% of usage of available lines to get the best scores. Do NOT cancel credit cards. That will lower your amount of available credit, thereby raising your percentage of usage. That will damage your score. Do NOT shop for a car, explore life insurance, apply for a new credit card or increase the limits on your current cards because the running of your credit by people in other industries will also lower your credit score. Most importantly, don’t do anything that will require having your credit run without first discussing it with a mortgage professional who knows the impact it could have.
4. Appraisal Concerns
It’s unlikely you will make an offer to purchase without checking out comparable home sales. It’s also likely you received that type of data from the real estate agent you are working with. Make sure your agent prepares the same information for the appraiser. Data about similar sales, similar homes currently on the market and maybe even cost estimates for any repairs or improvements anticipated can preempt future problems with appraised values and conditions.
Overall, it is recommended that you hold onto copies of everything financial, think before allowing your credit to be run and work with an agent and loan officer who can use their experience to put your loan application in its best possible light…as soon as you start thinking about buying a home.
Comments (3)
Picking the Right Agent is Crucial
Thursday, September 22, 2011
Top 10 Tips When Selling a Home
Top 10 Tips When Selling a Home
Selling a home in a down economy can be a painstaking decision. Use the following 10 tips when selling a home to get the most out of your investment.
Home Selling Tip #1: Hire a reputable real estate agent.
Selling a home can be stressful, and you want a reliable real estate agent you can trust to take some of the burden of selling a home off your hands.
Home Selling Tip #2: Give your home curb appeal.
When selling a home, you need to keep your home looking its best. If a buyer is turned off by what your home looks like from the street, you will never get him or her inside to look around. Clean up your lawn, patch brown spots in the grass, clear sidewalks, and keep leaves and other debris picked up. Potential home buyers also notice things like chipped paint and dirty siding, so pressure-wash your home and repaint before putting it on the market if needed. Do whatever you need to do to show buyers that you're serious about your home's maintenance. Finally, let color help you when selling a home. Yellow evokes the emotion of buying, so plant yellow flowers near the entrance.
Home Selling Tip #3: Make minor repairs to your home.
Don't give potential home buyers an opportunity to start nitpicking at the value of your home by leaving minor repairs unfixed. Replace cracked floor or counter tiles. Patch holes in walls. Fix leaky faucets. Fix doors that don't close properly and kitchen drawers that jam. Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls. Replace burned-out light bulbs.
Home Selling Tip #4: Stage your home.
Once you have a potential home buyer inside, it's important that your home has been spruced up and has been staged for the market. Think of your home as a product for sale, and imagine walking through it from the buyer's perspective. Depersonalize it by packing up family heirlooms and photos. You want buyers to imagine themselves living in the home and they won't do that if they can't see past your stuff. Rent a storage unit and clear out the junk. De-clutter. Remove unused pieces of furniture and window coverings and light fixtures you are going to take with you. Each room should be left with just enough furniture to showcase it as the perfect room for its purpose. Remove books, knickknacks, and anything that seems deeply personal. Clear out closets and neatly arrange your dishes in the kitchen cupboards.
Home Selling Tip #5: Clean your home!
Wash windows inside and out. Clean out cobwebs from corners, ceiling fan blades and light fixtures. Re-caulk tubs, showers and sinks. Polish chrome faucets and mirrors. Clean out the refrigerator. Vacuum daily. Wax floors. Dust furniture with an oil-based furniture polish that leaves a ôcleanö scent behind. Bleach dingy grout. Remove or replace worn rugs. Hang up fresh towels in the bathroom. Eliminate any musty odors.
Home Selling Tip #6: Price your home right.
Of all of the 10 tips for selling a home, this one is the most important. You need to price your home competitively, perhaps slightly lower than comparable homes in your neighborhood. Unfortunately, many sellers choose the real estate agent who suggests the highest listing price, but this can come back to haunt you. Pricing your home to sell involves looking at similar properties, making adjustments for the differences between them, tracking market movements and considering present inventory to arrive at a realistic value for the price of your home. Setting your listing price just right could lead to a bidding war, resulting in a higher sales price for you. Work with your listing agent to price your home correctly.
Home Selling Tip #7: Capture initial excitement.
Don't put your home on the market before your home and you are completely ready. Make sure you have taken all of the steps above before placing your home on the market. When selling a home, you need to get the most out of the initial excitement that a new home listing creates in potential home buyers. Home buyers will feel like they have discovered a great find if they snatch up a home just as it comes on the market. Once it's been listed for a few weeks, however, home buyers will conclude that it's not such a great value. Therefore, when selling a home, make sure you've done everything you can to make your home attractive to potential home buyers.
Home Selling Tip #8: Don't get in over your head.
Put your home on the market well in advance of looking for a new home. Don't place an offer on your next home until you have solid offers on the one you have to sell now. The last thing you want to do is juggle two mortgage payments.
Home Selling Tip #9: Only divulge information on a need-to-know basis.
Don't do anything to create a perception that you will lower your potential selling price. For example, if you are moving due to job relocation, don't offer up that information. Don't let the potential home buyers think there is any urgency on your part in selling the home. If you are asked why you're selling, simply say that you're ready to trade up. You have a legal obligation to disclose information about the condition of the home and property, but you are not obligated to disclose your personal situation.
Home Selling Tip #10: Be flexible.
Be willing to work with potential home buyers to help your chances of making a quick sale. Offer to pay for closing costs or repairs, and be adaptable when it comes to showing your home and holding open houses. If you really need to sell, you need to accommodate buyers' busy schedules. This might mean opening your home to strangers on weeknights and weekends.
Using these 10 tips when selling a home can help you sell your home fast and for a good price. Do you have any additional home selling tips you'd like to share? Please comment and let's make this top 10 list even stronger.
September
Top 10 Tips When Selling a Home
Down Payment Help for First Time Home Buyers
Should I Buy a Home from a Family Member?
What is the Average Time to Sell a Home?
August
How to Buy a House Before Your Other House Sells
How to Avoid Capital Gains Tax after Selling a Home
Strategies to Help Save Energy in Your Home
Buying a Home From For Sale by Owner Listings
Understanding Federal Government Grants for Home Improvements
July
What are the Best Home Improvements to Sell a House?
2011 Housing Trends & Home Value Statistics
21 Questions to Ask a REALTOR® When Buying Your First Home
.
Selling a home in a down economy can be a painstaking decision. Use the following 10 tips when selling a home to get the most out of your investment.
Home Selling Tip #1: Hire a reputable real estate agent.
Selling a home can be stressful, and you want a reliable real estate agent you can trust to take some of the burden of selling a home off your hands.
Home Selling Tip #2: Give your home curb appeal.
When selling a home, you need to keep your home looking its best. If a buyer is turned off by what your home looks like from the street, you will never get him or her inside to look around. Clean up your lawn, patch brown spots in the grass, clear sidewalks, and keep leaves and other debris picked up. Potential home buyers also notice things like chipped paint and dirty siding, so pressure-wash your home and repaint before putting it on the market if needed. Do whatever you need to do to show buyers that you're serious about your home's maintenance. Finally, let color help you when selling a home. Yellow evokes the emotion of buying, so plant yellow flowers near the entrance.
Home Selling Tip #3: Make minor repairs to your home.
Don't give potential home buyers an opportunity to start nitpicking at the value of your home by leaving minor repairs unfixed. Replace cracked floor or counter tiles. Patch holes in walls. Fix leaky faucets. Fix doors that don't close properly and kitchen drawers that jam. Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls. Replace burned-out light bulbs.
Home Selling Tip #4: Stage your home.
Once you have a potential home buyer inside, it's important that your home has been spruced up and has been staged for the market. Think of your home as a product for sale, and imagine walking through it from the buyer's perspective. Depersonalize it by packing up family heirlooms and photos. You want buyers to imagine themselves living in the home and they won't do that if they can't see past your stuff. Rent a storage unit and clear out the junk. De-clutter. Remove unused pieces of furniture and window coverings and light fixtures you are going to take with you. Each room should be left with just enough furniture to showcase it as the perfect room for its purpose. Remove books, knickknacks, and anything that seems deeply personal. Clear out closets and neatly arrange your dishes in the kitchen cupboards.
Home Selling Tip #5: Clean your home!
Wash windows inside and out. Clean out cobwebs from corners, ceiling fan blades and light fixtures. Re-caulk tubs, showers and sinks. Polish chrome faucets and mirrors. Clean out the refrigerator. Vacuum daily. Wax floors. Dust furniture with an oil-based furniture polish that leaves a ôcleanö scent behind. Bleach dingy grout. Remove or replace worn rugs. Hang up fresh towels in the bathroom. Eliminate any musty odors.
Home Selling Tip #6: Price your home right.
Of all of the 10 tips for selling a home, this one is the most important. You need to price your home competitively, perhaps slightly lower than comparable homes in your neighborhood. Unfortunately, many sellers choose the real estate agent who suggests the highest listing price, but this can come back to haunt you. Pricing your home to sell involves looking at similar properties, making adjustments for the differences between them, tracking market movements and considering present inventory to arrive at a realistic value for the price of your home. Setting your listing price just right could lead to a bidding war, resulting in a higher sales price for you. Work with your listing agent to price your home correctly.
Home Selling Tip #7: Capture initial excitement.
Don't put your home on the market before your home and you are completely ready. Make sure you have taken all of the steps above before placing your home on the market. When selling a home, you need to get the most out of the initial excitement that a new home listing creates in potential home buyers. Home buyers will feel like they have discovered a great find if they snatch up a home just as it comes on the market. Once it's been listed for a few weeks, however, home buyers will conclude that it's not such a great value. Therefore, when selling a home, make sure you've done everything you can to make your home attractive to potential home buyers.
Home Selling Tip #8: Don't get in over your head.
Put your home on the market well in advance of looking for a new home. Don't place an offer on your next home until you have solid offers on the one you have to sell now. The last thing you want to do is juggle two mortgage payments.
Home Selling Tip #9: Only divulge information on a need-to-know basis.
Don't do anything to create a perception that you will lower your potential selling price. For example, if you are moving due to job relocation, don't offer up that information. Don't let the potential home buyers think there is any urgency on your part in selling the home. If you are asked why you're selling, simply say that you're ready to trade up. You have a legal obligation to disclose information about the condition of the home and property, but you are not obligated to disclose your personal situation.
Home Selling Tip #10: Be flexible.
Be willing to work with potential home buyers to help your chances of making a quick sale. Offer to pay for closing costs or repairs, and be adaptable when it comes to showing your home and holding open houses. If you really need to sell, you need to accommodate buyers' busy schedules. This might mean opening your home to strangers on weeknights and weekends.
Using these 10 tips when selling a home can help you sell your home fast and for a good price. Do you have any additional home selling tips you'd like to share? Please comment and let's make this top 10 list even stronger.
September
Top 10 Tips When Selling a Home
Down Payment Help for First Time Home Buyers
Should I Buy a Home from a Family Member?
What is the Average Time to Sell a Home?
August
How to Buy a House Before Your Other House Sells
How to Avoid Capital Gains Tax after Selling a Home
Strategies to Help Save Energy in Your Home
Buying a Home From For Sale by Owner Listings
Understanding Federal Government Grants for Home Improvements
July
What are the Best Home Improvements to Sell a House?
2011 Housing Trends & Home Value Statistics
21 Questions to Ask a REALTOR® When Buying Your First Home
.
Wednesday, July 13, 2011
Saturday, July 9, 2011
7 out of 10 renters prefer to Own a home
Most Americans still believe that owning a home is a solid financial decision, and a majority of renters aspire to home ownership as a long-term goal. According to the 2011 National Housing Pulse Survey released today by the National Association of REALTORS®, 72 percent of renters surveyed said owning a home is a top priority for their future, up from 63 percent in 2010.
Seven in 10 Americans also agreed that buying a home is a good financial decision while almost two-thirds said now is a good time to purchase a home. The annual survey, which measures how affordable housing issues affect consumers, also found that more than three quarters of renters (77 percent) said they would be less likely to buy a home if they were required to put down a 20 percent down payment on the home, and a strong majority (71 percent) believe a 20 percent down payment requirement could have a negative impact on the housing market.
“Despite the economic setbacks Americans have experienced in today’s current climate, it is clear that a strong majority still believe in home ownership and aspire to own a home,” said NAR President Ron Phipps. “However, achieving the dream of home ownership will become increasingly difficult for buyers if they are required to make a 20 percent down payment, which may be a reality for many of tomorrow’s buyers if a proposed Qualified Residential Mortgage rule is adopted. That is why REALTORS® are strongly urging regulators to go back to the drawing board on the proposed rule.”
Defining the QRM rule is important because it will determine the types of mortgages that will generally be available to borrowers in the future. As currently proposed, borrowers with less than 20 percent down will have to choose between higher fees and rates today — up to 3 percentage points more — or a delay of between nine and 14 years while they save up the necessary down payment.
More than half — 51 percent — of self-described “working class” home owners as well as younger non-college graduates (51 percent), African Americans (57 percent), and Hispanic Americans (50 percent) who currently own their homes reported that a 20 percent down payment would have prevented them from becoming home owners.
Pulse surveys for the past eight years have consistently reported that having enough money for a down payment and closing costs are top obstacles that make housing unaffordable for Americans. Eighty-two percent of respondents cited these as the top obstacle, followed by having confidence in one’s job security.
The survey also found respondents were adamantly against eliminating the mortgage interest deduction (MID). Two-thirds of Americans oppose eliminating the tax benefit, while 73 percent believe eliminating the MID will have a negative impact on the housing market as well as the overall economy.
“The MID facilitates home ownership by reducing the carrying costs of owning a home, and it makes a real difference to hard-working American families,” Phipps said. “Home ownership offers not only social benefits, but also long-term value for families, communities and the nation’s economy. We need to make sure that any changes to current programs or incentives don’t jeopardize our collective futures.”
When asked why home ownership matters to them, respondents cited stability and safety as the top reason. Long-term economic reasons such as building equity followed closely behind. On a local level, respondents said neighbors falling behind on their mortgages and the drop in home values were top concerns. Foreclosures also continue to remain a large concern, with almost half of those surveyed citing the issue as a problem in their area.
Source: NAR
Seven in 10 Americans also agreed that buying a home is a good financial decision while almost two-thirds said now is a good time to purchase a home. The annual survey, which measures how affordable housing issues affect consumers, also found that more than three quarters of renters (77 percent) said they would be less likely to buy a home if they were required to put down a 20 percent down payment on the home, and a strong majority (71 percent) believe a 20 percent down payment requirement could have a negative impact on the housing market.
“Despite the economic setbacks Americans have experienced in today’s current climate, it is clear that a strong majority still believe in home ownership and aspire to own a home,” said NAR President Ron Phipps. “However, achieving the dream of home ownership will become increasingly difficult for buyers if they are required to make a 20 percent down payment, which may be a reality for many of tomorrow’s buyers if a proposed Qualified Residential Mortgage rule is adopted. That is why REALTORS® are strongly urging regulators to go back to the drawing board on the proposed rule.”
Defining the QRM rule is important because it will determine the types of mortgages that will generally be available to borrowers in the future. As currently proposed, borrowers with less than 20 percent down will have to choose between higher fees and rates today — up to 3 percentage points more — or a delay of between nine and 14 years while they save up the necessary down payment.
More than half — 51 percent — of self-described “working class” home owners as well as younger non-college graduates (51 percent), African Americans (57 percent), and Hispanic Americans (50 percent) who currently own their homes reported that a 20 percent down payment would have prevented them from becoming home owners.
Pulse surveys for the past eight years have consistently reported that having enough money for a down payment and closing costs are top obstacles that make housing unaffordable for Americans. Eighty-two percent of respondents cited these as the top obstacle, followed by having confidence in one’s job security.
The survey also found respondents were adamantly against eliminating the mortgage interest deduction (MID). Two-thirds of Americans oppose eliminating the tax benefit, while 73 percent believe eliminating the MID will have a negative impact on the housing market as well as the overall economy.
“The MID facilitates home ownership by reducing the carrying costs of owning a home, and it makes a real difference to hard-working American families,” Phipps said. “Home ownership offers not only social benefits, but also long-term value for families, communities and the nation’s economy. We need to make sure that any changes to current programs or incentives don’t jeopardize our collective futures.”
When asked why home ownership matters to them, respondents cited stability and safety as the top reason. Long-term economic reasons such as building equity followed closely behind. On a local level, respondents said neighbors falling behind on their mortgages and the drop in home values were top concerns. Foreclosures also continue to remain a large concern, with almost half of those surveyed citing the issue as a problem in their area.
Source: NAR
Friday, July 8, 2011
Saturday, July 2, 2011
Sunday, June 12, 2011
I LOVE COOL APPS
Since I got my IPAD I have been constantly looking for cool apps. I have a list of about 25 that I am still slowly, very slowly checking out but here are two to pass along to you.Recently I stumbled upon a couple of apps for my iPad that I wanted to pass along.The first is LOGMEIN. This is a remote access and software app that works in conjunction with your pc or mac. You can remotely access your computer, using this app, from your iPad. You can choose to access one or even multiple computers. I currently am using it to access one as this seems to be sufficient for me. If you plan to access only one computer, there is no cost to do so (other than the cost of the app itself, which I believe was around $29) but if you want to access more than one, then there is a charge for that. You can visit the app store and search for logmein ignition. In order to access your pc or mac, you must download the software, which is free, and you can do that by going to https://secure.logmein.com/. If you are traveling often, or work from the car a lot, then this app is a great solution to carrying a bulky laptop around.
The other great iPad app that I discovered is ACTPRINTER. This great iPad app allows you to “print” from your pc or mac directly to your iPad. Want to transfer a document from your pc or mac to your iPad? Simply print the document, and when doing so, choose the ATCPrinter from your list of available printers. It will then send that document or file to your iPad. It’s that simple! Documents on the go…and you save paper too! You can find this iPad app at the app store by searching ACTPrinter. You will also need to download the software to your pc or mac by visiting http://www.houdah.com/iPhone/.
I hope you find these iPad apps as cool as I did. Have some cool iPad apps that you discovered? Feel free to pass them on.
The other great iPad app that I discovered is ACTPRINTER. This great iPad app allows you to “print” from your pc or mac directly to your iPad. Want to transfer a document from your pc or mac to your iPad? Simply print the document, and when doing so, choose the ATCPrinter from your list of available printers. It will then send that document or file to your iPad. It’s that simple! Documents on the go…and you save paper too! You can find this iPad app at the app store by searching ACTPrinter. You will also need to download the software to your pc or mac by visiting http://www.houdah.com/iPhone/.
I hope you find these iPad apps as cool as I did. Have some cool iPad apps that you discovered? Feel free to pass them on.
Thursday, June 9, 2011
5 More Things You Didn't Know Could Get Your Home Sold!!!
Just when you thought you’d mastered the matter, we thought we’d brief you on 5 more things that can get your home sold, some or all of which might never have occurred to you.
1. Your neighbors. Most homeowners contemplating selling their homes understand the importance of well-kept neighboring homes. Many a buyer has pulled up to an amazing house, viewed it, and left shaking their head with woe because they just can’t cotton to buying the place on account of the shoulder-high weeds, car in the yard or crumbling ruins of the house next door.
On the flip side, your neighbors themselves - not just the homes, but the people - can actually help sell your home. Many homeowners know people who want to live in their neck of the woods; this is one reason many seasoned real estate professionals hold their listings open to neighbors and send out postcards to neighbors announcing the listing - the neighbors might know people who are interested in your home!
Also, neighbors who are out and about chatting with each other, laughing and playing with their kids, mowing their lawns or painting their fences, or even who just offer a smile and helpful area knowledge to the buyer-to-be they pass on the street can make a very favorable impression on prospective buyers.
It’s a good idea, if and when you decide to list your home for sale, to touch base with neighbors you know and let them know; it’s in their best interests to get good new neighbors, so they might be able to go the extra mile in showing the neighborhood’s biggest asset - themselves - off to its best advantage.
2. The right sights, smells and sounds. It’s no news flash that the view of a used car lot; stinky foods or animal smells; and the siren song of a fire station next door could be deal-killers. What might surprise is some of the right sights, smells and sounds that can help seal the sale of your home. My experience has been - agents, chime in here! - that the more natural beautiful sights, smells and sounds are, the more favorably they’ll be received by the largest population of prospective buyers.
For example, playing a soundtrack of classical musical is fine, but will cause some skeptical buyers to wonder what noises you might be trying to cover up - especially if you’re in a condo or other potentially thin-walled property where neighbor noise might be an issue. On the other hand, birdsong can be attractive to some buyers. Artificial air fresheners? Not so much. The scent of the jasmine or lavender that grows in your yard? Even allergy victims can appreciate that.
You might be desensitized to the amazing views of trees, mountains or even water outside your window, but pulling back the curtains so prospective buyers can see for themselves is an absolute must.
Home buying is a multi-sensory experience - visual staging of the property itself is no longer a plus, it’s a must. But homes which create pleasant impressions that fire on all of a buyer’s sensory cylinders definitely have the edge on their competition.
3. Your dog. The New York Times ran a piece a few months ago about sweet, well-behaved dogs (and cats!) who reportedly helped sell their owners’ Manhattan apartments. In a departure from the conventional wisdom that dogs should be removed and every trace of their presence erased from the home during showings, the article featured several buyers and brokers attesting to their belief that the presence of a particular cat or dog “help[ed] sell a property by making the place seem warmer or more appealing.” And I’m sure you’ve all heard me tell the story of the San Diego buyer who fell in love with a tract home listed at a price higher than all the nearly identical comparables he’d seen and wanted to make a full-price offer immediately - so long as the deal included the dog!
Definitely consult with your agent before you decide to implement leaving your dog at home for showings as part of your plan. I’m a dog lover, and would be concerned that someone might inadvertently let one of “my girls” out, if I left them there while my house was being shown; as well, would-be buyers or their agents may have allergies your pet could set off.
Lately, it seems like I’ve seen many brokers attempting to capture the best of both worlds by making sure that the family pet or even the broker’s own pet is captured in a charming tableau in 1 or 2 of the listing pictures, even if they’re not present at the home during showings.
4. Your happiness. Video and even written love letters that extoll all the virtues for which you love your neighbors, your neighborhood and your property are contagious to buyers. I’ve seen sellers help buyers see their homes through their own loving eyes by posting videos on YouTube and including the link on the listing flyer or even by putting a binder containing a letter plus menus and flyers from their favorite neighborhood restaurants, dry cleaners and other local merchants out on the counter during showings.
Wide-open curtains that let light stream in, light and bright paint and decor colors and other home features that science has proven make residents more happy and functional also create this thought process in a buyer’s mind: “Hmm, these people seem happy here. I could be, too.”
Similarly, indicators that you invested a lot of love in your home, by keeping it in immaculate order and pristine condition, by tending a well-cared for kitchen garden, lovingly furnishing and making comfortable (if not overly customizing) your kids’ rooms, all create the feel that a home was happily lived in - it’s like staging your home with a life well-lived, not just paint and tile.
5. The freeway or subway you thought was too close. There is such a thing as a freeway or elevated train tracks being too close to your home; if your place rattles or roars, for example, every time the train passes, chances any buyer will view that as a selling point are pretty slim. However, homebuyer attitudes toward being located near freeways and subways or bus lines are a-changing. Every upward click of gas prices renders buyers a tiny bit more interested in a location that is more commutable.
Where yesteryear’s buyers were all about the posh exclusivity of far-out suburbia, today’s buyers are more interested in financial and ecological efficiency and convenience. I’ve never heard so many homebuyers looking to own homes that will allow them to ditch their cars entirely as I have in recent years!
What might once have been seen as too close to the freeway has gotten a new spin, lately, as a highly convenient, commuter-friendly location.
1. Your neighbors. Most homeowners contemplating selling their homes understand the importance of well-kept neighboring homes. Many a buyer has pulled up to an amazing house, viewed it, and left shaking their head with woe because they just can’t cotton to buying the place on account of the shoulder-high weeds, car in the yard or crumbling ruins of the house next door.
On the flip side, your neighbors themselves - not just the homes, but the people - can actually help sell your home. Many homeowners know people who want to live in their neck of the woods; this is one reason many seasoned real estate professionals hold their listings open to neighbors and send out postcards to neighbors announcing the listing - the neighbors might know people who are interested in your home!
Also, neighbors who are out and about chatting with each other, laughing and playing with their kids, mowing their lawns or painting their fences, or even who just offer a smile and helpful area knowledge to the buyer-to-be they pass on the street can make a very favorable impression on prospective buyers.
It’s a good idea, if and when you decide to list your home for sale, to touch base with neighbors you know and let them know; it’s in their best interests to get good new neighbors, so they might be able to go the extra mile in showing the neighborhood’s biggest asset - themselves - off to its best advantage.
2. The right sights, smells and sounds. It’s no news flash that the view of a used car lot; stinky foods or animal smells; and the siren song of a fire station next door could be deal-killers. What might surprise is some of the right sights, smells and sounds that can help seal the sale of your home. My experience has been - agents, chime in here! - that the more natural beautiful sights, smells and sounds are, the more favorably they’ll be received by the largest population of prospective buyers.
For example, playing a soundtrack of classical musical is fine, but will cause some skeptical buyers to wonder what noises you might be trying to cover up - especially if you’re in a condo or other potentially thin-walled property where neighbor noise might be an issue. On the other hand, birdsong can be attractive to some buyers. Artificial air fresheners? Not so much. The scent of the jasmine or lavender that grows in your yard? Even allergy victims can appreciate that.
You might be desensitized to the amazing views of trees, mountains or even water outside your window, but pulling back the curtains so prospective buyers can see for themselves is an absolute must.
Home buying is a multi-sensory experience - visual staging of the property itself is no longer a plus, it’s a must. But homes which create pleasant impressions that fire on all of a buyer’s sensory cylinders definitely have the edge on their competition.
3. Your dog. The New York Times ran a piece a few months ago about sweet, well-behaved dogs (and cats!) who reportedly helped sell their owners’ Manhattan apartments. In a departure from the conventional wisdom that dogs should be removed and every trace of their presence erased from the home during showings, the article featured several buyers and brokers attesting to their belief that the presence of a particular cat or dog “help[ed] sell a property by making the place seem warmer or more appealing.” And I’m sure you’ve all heard me tell the story of the San Diego buyer who fell in love with a tract home listed at a price higher than all the nearly identical comparables he’d seen and wanted to make a full-price offer immediately - so long as the deal included the dog!
Definitely consult with your agent before you decide to implement leaving your dog at home for showings as part of your plan. I’m a dog lover, and would be concerned that someone might inadvertently let one of “my girls” out, if I left them there while my house was being shown; as well, would-be buyers or their agents may have allergies your pet could set off.
Lately, it seems like I’ve seen many brokers attempting to capture the best of both worlds by making sure that the family pet or even the broker’s own pet is captured in a charming tableau in 1 or 2 of the listing pictures, even if they’re not present at the home during showings.
4. Your happiness. Video and even written love letters that extoll all the virtues for which you love your neighbors, your neighborhood and your property are contagious to buyers. I’ve seen sellers help buyers see their homes through their own loving eyes by posting videos on YouTube and including the link on the listing flyer or even by putting a binder containing a letter plus menus and flyers from their favorite neighborhood restaurants, dry cleaners and other local merchants out on the counter during showings.
Wide-open curtains that let light stream in, light and bright paint and decor colors and other home features that science has proven make residents more happy and functional also create this thought process in a buyer’s mind: “Hmm, these people seem happy here. I could be, too.”
Similarly, indicators that you invested a lot of love in your home, by keeping it in immaculate order and pristine condition, by tending a well-cared for kitchen garden, lovingly furnishing and making comfortable (if not overly customizing) your kids’ rooms, all create the feel that a home was happily lived in - it’s like staging your home with a life well-lived, not just paint and tile.
5. The freeway or subway you thought was too close. There is such a thing as a freeway or elevated train tracks being too close to your home; if your place rattles or roars, for example, every time the train passes, chances any buyer will view that as a selling point are pretty slim. However, homebuyer attitudes toward being located near freeways and subways or bus lines are a-changing. Every upward click of gas prices renders buyers a tiny bit more interested in a location that is more commutable.
Where yesteryear’s buyers were all about the posh exclusivity of far-out suburbia, today’s buyers are more interested in financial and ecological efficiency and convenience. I’ve never heard so many homebuyers looking to own homes that will allow them to ditch their cars entirely as I have in recent years!
What might once have been seen as too close to the freeway has gotten a new spin, lately, as a highly convenient, commuter-friendly location.
Tuesday, June 7, 2011
Great program for 1st time homebuyers in Austin City Limits
First-Time Homebuyer Resources
Down Payment Assistance Program
City of Austin, TX
The Down Payment Assistance Program (DPA) provides qualified, first-time homebuyers, with a zero interest loan to assist with purchasing a home located within the Austin City Limits.
DPA funds cover the down payment and eligible closing costs and pre-paid expenses associated with buying a home. View the DPA brochure in English or view en español.
The DPA Program options are as follows:
•Standard DPA: Up to $10,000 in a deferred, forgivable, 0% interest loan for 10 years. Up to $1,000 additional for borrowers in a Mortgage Credit Certificate Program, and up to $4,999 for people with disabilities. The loan is forgiven if the borrower remains in the home ten (10) years without transferring title. Otherwise the loan is due and payable if the borrower sells, leases, transfers title, refinances, gets a home equity loan, or pays off the first lien within ten (10) years.
•(NEW) Shared Equity DPA: Up to $40,000 in a deferred,0%-interest loan for 30 years. Borrowers must pay back the DPA loan plus a percentage of their equity (that is the same percentage as AHFC's contribution) when the borrower sells, leases, refinances, gets a home equity loan, pays off the first lien, or otherwise transfers title within 30 years. When selling the home, the borrower agrees to give AHFC the chance to purchase the house at market rate ("right of first refusal").
Eligibility: The DPA Program serves first-time homebuyers who are citizens or legal permanent residents, and whose entire household earns no more than 80% of the Austin Median Family Income established by the federal government. See the table below for income limits by household size. More details on eligibility are in the first pages of the DPA application. All borrowers must also complete the Housing Smarts homebuyer education classes before their lender submits the DPA application. View more information on the Housing Smarts Program.
80% of the Median Family Income by Household Size for Austin Effective May, 2010
Size
80%MFI
1
$41,350
2
$47,250
3
$53,150
4
$59,050
5
$63,800
6
$68,500
7
$73,250
8
$77,950
APPLYING: Only trained loan officers like Scott R. Butcher with Maker Capital Group, LLC, an Austin based Mortgage Lender is listed on the DPA Participating Lenders list may submit DPA applications for borrowers.
•View the "Frequently Asked Questions"
•View the instructions to check properties in Austin City Limits
•View list of "Participating Lenders".(Your "Participating Lender" will help you complete your DPA application.)
•View "DPA Application"
•View list of trained Real Estate Agents
•View the Housing Smarts Program
Information for Real Estate Agents: To learn more about DPA program processes and to better identify eligible homebuyers, please attend the next DPA Real Estate Agent Information Session. View the Registration Form and Schedule for the next available DPA Real Estate Agent Training.
If your a First Time Homebuyer and are interested in learning more about the City of Austin DPA program, please contact Scott Butcher with Maker Capital Group, LLC directly at 512-796-7738 or via email at scott@makercapitalaustin.com or you can pre-qualify now at http://sbutcher.ameriprofunding.com.
Down Payment Assistance Program
City of Austin, TX
The Down Payment Assistance Program (DPA) provides qualified, first-time homebuyers, with a zero interest loan to assist with purchasing a home located within the Austin City Limits.
DPA funds cover the down payment and eligible closing costs and pre-paid expenses associated with buying a home. View the DPA brochure in English or view en español.
The DPA Program options are as follows:
•Standard DPA: Up to $10,000 in a deferred, forgivable, 0% interest loan for 10 years. Up to $1,000 additional for borrowers in a Mortgage Credit Certificate Program, and up to $4,999 for people with disabilities. The loan is forgiven if the borrower remains in the home ten (10) years without transferring title. Otherwise the loan is due and payable if the borrower sells, leases, transfers title, refinances, gets a home equity loan, or pays off the first lien within ten (10) years.
•(NEW) Shared Equity DPA: Up to $40,000 in a deferred,0%-interest loan for 30 years. Borrowers must pay back the DPA loan plus a percentage of their equity (that is the same percentage as AHFC's contribution) when the borrower sells, leases, refinances, gets a home equity loan, pays off the first lien, or otherwise transfers title within 30 years. When selling the home, the borrower agrees to give AHFC the chance to purchase the house at market rate ("right of first refusal").
Eligibility: The DPA Program serves first-time homebuyers who are citizens or legal permanent residents, and whose entire household earns no more than 80% of the Austin Median Family Income established by the federal government. See the table below for income limits by household size. More details on eligibility are in the first pages of the DPA application. All borrowers must also complete the Housing Smarts homebuyer education classes before their lender submits the DPA application. View more information on the Housing Smarts Program.
80% of the Median Family Income by Household Size for Austin Effective May, 2010
Size
80%MFI
1
$41,350
2
$47,250
3
$53,150
4
$59,050
5
$63,800
6
$68,500
7
$73,250
8
$77,950
APPLYING: Only trained loan officers like Scott R. Butcher with Maker Capital Group, LLC, an Austin based Mortgage Lender is listed on the DPA Participating Lenders list may submit DPA applications for borrowers.
•View the "Frequently Asked Questions"
•View the instructions to check properties in Austin City Limits
•View list of "Participating Lenders".(Your "Participating Lender" will help you complete your DPA application.)
•View "DPA Application"
•View list of trained Real Estate Agents
•View the Housing Smarts Program
Information for Real Estate Agents: To learn more about DPA program processes and to better identify eligible homebuyers, please attend the next DPA Real Estate Agent Information Session. View the Registration Form and Schedule for the next available DPA Real Estate Agent Training.
If your a First Time Homebuyer and are interested in learning more about the City of Austin DPA program, please contact Scott Butcher with Maker Capital Group, LLC directly at 512-796-7738 or via email at scott@makercapitalaustin.com or you can pre-qualify now at http://sbutcher.ameriprofunding.com.
Thursday, June 2, 2011
Should You Rent or Buy in this Market?
People are trying to determine whether or not now is the time to buy a home. Some are advising these families to sit out the current real estate market and instead rent for the next year or two. We do not agree with this advice. Homeownership means a lot to a family. We also realize that the financial aspects of purchasing a home today can be a concern. The challenge is any advice given by someone in the real estate community is immediately dismissed as self-serving.
For this reason, we want to give you the advice of three entities not involved in real estate sales:
Citigroup
“When we examine the relationships between mortgage payments and income and mortgage payments and rent, we see that these relationships have also reverted back to or below equilibrium points. In some cases, particularly when mortgage payments are compared to the cost of renting, home prices actually appear cheap.”
JP Morgan
“JPMorgan analysts said ‘the continuation of falling rental vacancies and rising rental demand will make home buying increasingly attractive’, especially as rental prices increase.”
Business School professors Eli Beracha and Ken H. Johnson
“Fundamental drivers now appear to be in place that favor homeownership over renting in the near term future…
The second finding might seem unwise to many given the recent crash in the real estate markets around the country. However, rent-to-price ratios now seem to be in place along with other fundamental drivers that favor ownership over renting…
Conditions (historically low mortgage rates and relatively low rent-to-price ratios) now seem in place to favor future purchases.”
Bottom Line
Is it better to rent or buy? According to those quoted above, it seems it may be becoming a no-brainer.
For this reason, we want to give you the advice of three entities not involved in real estate sales:
Citigroup
“When we examine the relationships between mortgage payments and income and mortgage payments and rent, we see that these relationships have also reverted back to or below equilibrium points. In some cases, particularly when mortgage payments are compared to the cost of renting, home prices actually appear cheap.”
JP Morgan
“JPMorgan analysts said ‘the continuation of falling rental vacancies and rising rental demand will make home buying increasingly attractive’, especially as rental prices increase.”
Business School professors Eli Beracha and Ken H. Johnson
“Fundamental drivers now appear to be in place that favor homeownership over renting in the near term future…
The second finding might seem unwise to many given the recent crash in the real estate markets around the country. However, rent-to-price ratios now seem to be in place along with other fundamental drivers that favor ownership over renting…
Conditions (historically low mortgage rates and relatively low rent-to-price ratios) now seem in place to favor future purchases.”
Bottom Line
Is it better to rent or buy? According to those quoted above, it seems it may be becoming a no-brainer.
Tuesday, May 31, 2011
New Inspection-Warranty Product Protects Foreclosure Buyers
New Inspection-Warranty Product Protects Foreclosure Buyers
Buyers Protection Group, LLC, (BPG) recently launched a “buyer’s bundle” that provides protection and savings for those who purchase bank-owned, foreclosure, or short-sell properties.
The bundle combines the benefits of a professional home inspection with a 12-month home warranty. BPG, which maintains dual headquarters in Georgia and California, provides services to help real estate professionals, buyers, and sellers in real estate transactions.
“Vacant or distressed properties can be a great value,” said Revell Fraser, BPG president and CEO. “However, our data indicate these properties can pose unique challenges to
homebuyers – further highlighting the need for a professional inspection and extended home warranty.”
The buyer’s bundle, which is offered in most major markets, provides a detailed report of a property’s condition, a 90-day guarantee on major items inspected, a 12-month home warranty, and $100 in savings. Flex-pay options are available for the home warranty.
BPG provides home inspections and home warranties in 14 states, including 25 major housing markets. The company uses data generated from inspections to determine common problem characteristics by property types. Approximately 60 percent of the 83,000 transactions handled over the past year by BPG involved vacant properties.
“[The buyer’s bundle is] a smart choice for consumers buying bank-owned or short-sell properties,” said Pat Schaffhauser, who heads the company’s product development group.
“Buyers receive a more comprehensive understanding of the home’s condition plus extended protection for major system or appliance failures – both from a single trusted advisor and with significant savings,” Schaffhauser explained. “The warranty also provides coverage for unknown pre-existing conditions, which is especially attractive on vacant properties.”
Buyers Protection Group, LLC, (BPG) recently launched a “buyer’s bundle” that provides protection and savings for those who purchase bank-owned, foreclosure, or short-sell properties.
The bundle combines the benefits of a professional home inspection with a 12-month home warranty. BPG, which maintains dual headquarters in Georgia and California, provides services to help real estate professionals, buyers, and sellers in real estate transactions.
“Vacant or distressed properties can be a great value,” said Revell Fraser, BPG president and CEO. “However, our data indicate these properties can pose unique challenges to
homebuyers – further highlighting the need for a professional inspection and extended home warranty.”
The buyer’s bundle, which is offered in most major markets, provides a detailed report of a property’s condition, a 90-day guarantee on major items inspected, a 12-month home warranty, and $100 in savings. Flex-pay options are available for the home warranty.
BPG provides home inspections and home warranties in 14 states, including 25 major housing markets. The company uses data generated from inspections to determine common problem characteristics by property types. Approximately 60 percent of the 83,000 transactions handled over the past year by BPG involved vacant properties.
“[The buyer’s bundle is] a smart choice for consumers buying bank-owned or short-sell properties,” said Pat Schaffhauser, who heads the company’s product development group.
“Buyers receive a more comprehensive understanding of the home’s condition plus extended protection for major system or appliance failures – both from a single trusted advisor and with significant savings,” Schaffhauser explained. “The warranty also provides coverage for unknown pre-existing conditions, which is especially attractive on vacant properties.”
Wednesday, May 25, 2011
Why move to Austin???
Austin Tops The Charts
RealAge lists Austin the #3 “youngest city,” citing a survey ranking how young the residents feel (April 2011)
Men’s Health ranks Austin #8 among the top 10 socially-networked cities (March 2011)
Austin is the 2nd best city in America to find a job, according to the U.S. Department of Labor and Ajilon Professional Staffing. (March 2011)
Austin was chosen as one of the eight best places to live and work in the U.S., by Business Review USA. (February 2011)
PayScale, Inc. ranks Austin second among cities considered an IT startup “hot spot.” (January 2011)
Austin is #7 on the list of the top 10 emerging restaurant markets in the U.S. this year, according to a recent survey by QSR magazine and Pitney Bowes Business Insight. (January 2011)
AOL Travel names Austin the best city for a Rock Star Girls’ Weekend Getaway. (January 2011)
ImpactLab names Austin the most popular destination for young people. (January 2011)
The Huffington Post ranks Austin 8th for best culture for college students. (December 2010)
CNBC names Austin among celebrity cities on the rise. (December 2010)
Austin was ranked the 12th best city for shopping in the U.S., according to a Forbes listing. (December 2010).
Lonely Planet staffers name Austin and the Hill Country the 4th for Best Place to Visit in the U.S. (December 2010)
Austin named second-strongest job market in the country by the Milken Institute. (November 2010
RealAge lists Austin the #3 “youngest city,” citing a survey ranking how young the residents feel (April 2011)
Men’s Health ranks Austin #8 among the top 10 socially-networked cities (March 2011)
Austin is the 2nd best city in America to find a job, according to the U.S. Department of Labor and Ajilon Professional Staffing. (March 2011)
Austin was chosen as one of the eight best places to live and work in the U.S., by Business Review USA. (February 2011)
PayScale, Inc. ranks Austin second among cities considered an IT startup “hot spot.” (January 2011)
Austin is #7 on the list of the top 10 emerging restaurant markets in the U.S. this year, according to a recent survey by QSR magazine and Pitney Bowes Business Insight. (January 2011)
AOL Travel names Austin the best city for a Rock Star Girls’ Weekend Getaway. (January 2011)
ImpactLab names Austin the most popular destination for young people. (January 2011)
The Huffington Post ranks Austin 8th for best culture for college students. (December 2010)
CNBC names Austin among celebrity cities on the rise. (December 2010)
Austin was ranked the 12th best city for shopping in the U.S., according to a Forbes listing. (December 2010).
Lonely Planet staffers name Austin and the Hill Country the 4th for Best Place to Visit in the U.S. (December 2010)
Austin named second-strongest job market in the country by the Milken Institute. (November 2010
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