What A Real Estate Expert Can Do For You

Decades ago. you had to go to a real estate agent in order to get information on property listings. Huge books filled with all the local real estate listings were distributed to real estate offices. The agents would review the books and find homes that matched their clients' needs. Then the address was given to the clients so they could do a "drive by" to see, at least, the outside of the home. This information was not readily available to the public.
The times have drastically changed. Today, much of the once-private information is now public. So does that mean you can handle the entire real estate transaction on your own? Not likely... especially if you want a highly successful outcome. Understanding the value of an agent: Expert real estate agents are trained to help streamline your real estate transaction. Good agents are highly knowledgeable about the industry. They bring to the table more than just good listings for you to view. They help you understand the information that you're getting. They help you sort through comparable properties and decipher information listed in the Multiple Listing Service. They can help you spot potential issues and make you aware of important documents. Having an agent guide you through the process of buying your home can help save you time and money. Pricing experience: One of the biggest values an experienced agent can offer has to do with pricing. Whether you're buying or selling your home, having an agent help you understand the current market conditions is vital. Agents can craft negotiation strategies to help ensure that your interest is protected. The negotiation skills of a highly knowledgeable agent can be critical to your transaction. When you hire agents to work on your transaction. they have a vested interest in the sale. However, their commission is far less than the amount of interest you have in the property. Therefore, experienced agents can leave emotional interest out of the negotiations and work for the best outcome by presenting their client's situation in the most appealing way possible. They also must keep their client information confidential. Coordinating the process: Another very useful function of real estate agents is the assistance they provide with coordinating the complex home-buying and home-selling process. Real estate transactions require an enormous amount of paperwork. Real estate agents can't provide legal advice about the documents, but they can point out important papers and disclosures, and alert you to the filing time-frame for when these materials must be signed. They typically also have a good network to direct you to other experts for more specific answers to your questions. Agents also are very used to coordinating and keeping on schedule things like hiring inspectors, staying in touch with the other party's agent, explaining how repairs will be fixed and who should pay for them, and directing you to resources for financial matters. In today's market, there isn't any industry that I say you should rely 100 percent on the experts. For example, if your health is compromised, it's my belief that you should do your homework and learn more about what is causing the suffering. The same is true for buying or selling a home. Get educated. Read articles and watch videos from as many sources as possible. Study the market and prepare questions to ask the experts when you meet with them. This will make you more prepared to interview and hire an expert. Ultimately, you'll find having an expert to help guide you through the real estate transaction will be a good investment.

Written by Phoebe Chongchua

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Buying Beats Renting

Are you staying put for at least three years? Savvy financial experts recommend you buy versus rent! A new analysis by Zillow, a real estate information marketplace, providing vital information about homes, real estate listings and mortgages, reveals that the "break-even horizon" in more than 200 metros and 7,500 U.S. cities is three years (or less!). This is great news for wary buyers who have been fearful of declining home values in many cities. These hard-hit cities are making a come back. The report found that in some of these areas the break-even horizon was less than two years! "Across most of the country, historic levels of affordability make buying a home a better decision than ever, especially considering rents have risen more than 5 percent over the past year," said Stan Humphries, Zillow Chief Economist. "This is the first analysis of metros and cities that presents the buy versus rent decision in an intuitive way, by telling consumers how long they must live in the home before buying breaks even with renting financially. It's much more understandable, and therefore useful, than the abstract notion of a simple ratio of prices to rents. If we want consumers to act on market information, we have to align it with how they think about the issue and make it straight-forward to grasp." This analysis took into account the full picture of homeownership: downpayment, mortgage, transaction costs, property taxes, utilities, maintenance, tax deductions, and adjustments for inflation and forecasted home values. It also figured rental payments, utilities, and rental price appreciation. This sunny outlook is not the case in all areas, however. A local real estate professional should be able to tell you the course of your local market and whether or not home values are once again on the rise. There may even be differences from one local community to the next. For example, in Mill Valley, Calif., just north of San Francisco, a homeowner can break even after 8.8 years, while in similarly-priced Menlo Park, south of the city, they must live in the home for 14.1 years. It all depends on the area. The Miami-Ft. Lauderdale metro is among the most favorable for buying, with homeowners breaking even after only 1.6 years of living in the home. However, in the San Jose metro, where home values are among the highest in the nation, a buyer must commit to living in their home for 8.3 years before they will break even. Zillow reports "Metros where it takes more than five years to reach the breakeven point accounted for 7 percent of the 224 metros covered by the report. The metros with the longest breakeven horizons are San Jose, Calif. (8.3 years), Oak Harbor, Wash. (7.2 years), Santa Cruz, Calif. (7.1 years), San Luis Obispo, Calif. (6.3 years) and Salinas, Calif. (6.3 years). The metros with the shortest breakeven horizon are Memphis, Tenn., Miami-Ft. Lauderdale, Fla., Salisbury, Md., Red Bluff, Calif., Mobile, Ala., Tampa, Fla. and Fernley, Nev. (all tied at 1.6 years)."

Written by Carla Hill

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Searching For Your New Home

You want a home. There are houses for sale. How hard can it be to find the right fit? For anyone who has house hunted before, you know the answer. It can be a time-consuming and difficult process if you don't know where to start. In order to get started in the right direction, it's paramount that you have a good idea for what you're looking. Make a wish list that includes everything from your neighborhood preferences and budget to housing amenities. "What if I don't know what I want?" you ask. There are buyers out there that just aren't sure if they're in the market for a condo or a single-family home. They don't know if they want to be near downtown or out in the 'burbs. If this sounds like you, then your agent can be a big help. They can show you a few different options, explaining the pros and cons of each. Hopefully, this preview session will help you make a firm decision on the direction you're headed. Next, learn how to navigate your local MLS. In today's technology age, it's all about previewing a house online before you take the time to go on a showing. Just because a house meets the criteria you've set forth for your agent doesn't mean it's a house you'll want to see in person. Realtor.com is a good place to start. They display all the listings for your area, searchable by bedrooms, square foots, bathrooms, zip codes, price range, and more. Has your agent sent you listing info containing an MLS (Multiple Listing Service) number? You should be able to input that number on the MLS website to take you directly to that particular listing. Better yet, have your agent sign you up for daily or weekly email updates. They can send you links to newly listed homes that fit within your given wish list criteria. Finally, have an open mind. Some houses look stellar on paper (online). They appear to be your dream home. Once you see them in person, however, they simply don't measure up. The opposite can be true for houses as well. A house may look shabby and run-down online (perhaps due to bad photos or bad decorating), but in person you realize the neighborhood is perfect and the house sturdy. All it needs are some cosmetic fixes. Don't keep second guessing yourself. If from the beginning you have a solid plan on what you want, you'll be more likely to make a decisive move when the time comes. Waiting too long could mean losing out on a home you really want. Being realistic about your wants and budget is a good way to make the house hunting process a whole lot smoother. Keep in mind that there may not be the perfect home, but there will be a home that is right for you.

Written by Carla Hill

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Real Estate Market Offering Good Opportunity For Buyers

In some areas the real estate market is "hopping". New homes are being sold faster than they can be built and some new homeowners are purchasing great properties for a lower price than five years ago and with a very low interest rate. That's making today's buyers feel more secure about their investment.
If you're a buyer watching the real estate market and wondering if it's poised for a very strong recovery, here are a few things to think about. The already low interest rates look like they'll be around for a while longer. According to the Federal Reserve, more mortgage-backed securities and bonds will be purchased. Currently its purchasing about $45 billion a month. What this could mean is that interest rates could go even lower. Keeping the interest rates low is a strategy to encourage people to enter the real estate market again. Even though in some areas there have been reports of bidding wars, some buyers still believe the market is somewhat unrealistically high. They're, of course, hoping for lower prices. As buyers wait things out that causes more stress for sellers who are in a precarious position of potentially missing a mortgage payment on an already "underwater" home. On the rise are home modifications and short sales. Banks and mortgage servicers are realizing it's better to work things out together than foreclose. Government laws are also helping homeowners in crisis. The law that allows tax relief for mortgage debt forgiveness (from homes that fell victim to short sales, foreclosures, or "phantom" income on loan modifications) has been extended another year. Meanwhile banks are still taking a hit from the government. It's expected that billions of dollars of fines, fees, and settlements are still coming. Financial practices are being scrutinized and a federal watchdog group created in 2010 is ensuring legal financial practices are used. Trouble for some is success for others. Right now, the temptation is great for buyers interested in some deep discounts. According to RealtyTrac, the online entity that tracks foreclosed properties, homes sold in foreclosure nationwide were, on average, 39 percent lower than conventional sale prices during the fourth quarter. Some markets offered even greater discounts on home prices. Short sales also offered a good price for buyers, averaging 23 percent below market. However, if you decide to purchase a foreclosure or a short-sale home, you should know that these homes may be in poor condition. If the property is purchased by a buyer who wants to live in the home, this can be challenging. Getting through the laundry-list of repairs will require some extra income other than that used for the downpayment of the home. But you could get a very good price if you're willing to live with some of the home's issues. Some of the areas that often top the list of necessary repairs for these types of homes are in the plumbing, heating, and air conditioning systems. Also, damage to the roofs, ceilings, and walls may be from the property being vacant for a long time and/or vandalized (in some cases by the angry former owner). If you can find a home at a discounted price and you have the ability, patience, and money to do the repairs, this is a very good time for you to start your hunt. Just be sure to have the home inspected carefully and completely understand the condition of the home that you are buying.

Written by Phoebe Chongchua

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

 

Preparing To Buy A Home Preparing to buy a home is a bit like preparing to go on a very long journey. You have to have your finances in order, know where you're going, what you're hoping to accomplish and how much time and how much money you can afford to spend. Financial matters. When it comes to owning real estate nothing is more important, for obvious reasons. As we've seen, if you get locked into a mortgage you can't afford, the result can be devastating. But even if you can afford the mortgage, you might not want to be "house rich and cash poor". You have to consider other things that are important to you such as travel and your spending habits. If for instance, you like to travel for months at a time, it might be wise to consider a smaller house with a less expensive mortgage instead of a large home with a big mortgage, which could cause you more work and less financial ability to spend on other things you like. Another consideration is the length of time you want to have the mortgage. Many young people choose a 30-year fixed mortgage but if you're a senior citizen you might want to opt for a 15-year loan. The best thing you can do is make a list of your financial matters and the questions you have about buying a home and then consult with a highly experienced loan officer. A knowledgeable loan officer can be like having a tour guide with you all the time in a foreign country where you don't speak the language. The jargon used in the mortgage industry documents can be confusing. Having someone who can clearly explain the documents, what to expect, the time frame, and the process is priceless. Debt-to-income. The ratio of your debt-to-income is vital when purchasing a home. These guidelines have become more strict since the housing crisis so it's critical to consult with experts about your personal financial situation. Generally speaking, you should have a debt-to-income ratio of no more that 36 percent–meaning all you owe (including your mortgage, taxes, and insurance) should not equal more than 36 percent of your income. Remember there are still monthly expenses of your home on top of your debt. And, of course, the less you owe and the more you make, the better position you're in for buying a home and creating your own financial freedom. These days, along with keeping your expenses and debt manageable, a key factor to buying a home is having a healthy downpayment. Most lenders would consider 20 percent a good downpayment. The more you bring in, the less you have to borrow. Remember the collapse of the housing market was brought on by small or no downpayment loans and many buyers who simply didn't understand the risks. Know how long you'll stay. This is really important because the cost of buying and selling a home is expensive and very time-consuming. If you're not planning on staying in your home more than seven to ten years, think about renting. You may still decide to buy, but you need to understand the cost of purchasing and maintaining a home. Investigate the economic difference between buying and renting. Be realistic about how frequently you've moved in the past and whether you're now ready to settle in for several years. You can always rent your home out but this assumes that you'll be a landlord (willing to take on all those duties) and then also have to find another place to live and either rent or buy. After considering all of these factors and making certain that you're ready to buy, then take the next step and find the best agent in your real estate market. Your agent will help you further prepare to buy the home of your dreams.

Written by Phoebe Chongchua

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

How Home Buyers Use Technology

When searching for a real estate agent, make sure he or she is tech savvy. You are. The point person in your quest for your dream home should be packing the latest technology too. Check the stats compiled by MountainSeed Appraisal Management in Atlanta, GA.

A vast majority, 90 percent of home buyers use the internet to kick off their search for housing.

Home buyers today are mobile. They aren’t just sitting at a desk, online looking for a home. Mobile applications are also a weapon of choice.

Nearly 30 percent are smart phone home shopping while waiting in line; 27 percent are searching over dinner and 26 percent are guests at someone’s home and likely just bored stiff.

On average a person conducts 11 digital searches before making another move, like calling in an agent, attending an open house or otherwise 3-Ding their search.

Agents in certain states have a greater need to get with the digital thing. The states with the highest number of online queries for first time home buyers are Delaware (The First State is first); Louisiana (it can get pretty muggy traipsing around); Mississippi (ditto); South Dakota (there’s just too much to walk around); and Wyoming (ditto). "I think it is important to note that not only are home buyers using technology more than ever, but also home owners. When possible, many are looking at refi rates, paying their mortgage payment by smart phone, or simply perusing their mortgage statement," said David Craig, vice president of sales at CEDAR Document Technologies an Atlanta, GA-based communications technology company. Craig added, "it is also important to note that ‘mobile’ doesn’t necessarily mean a borrower is on the move. Many people today opt for their (smart) phone while sitting at home before ever opening a laptop or using a desktop computer.”

Written by Mark K. Hicks

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

The Scoop on Closing Costs

Are you a buyer preparing to close on a house? Now is a good time to refresh yourself on the most common closing costs. There are more expenses to buying a house than just the monthly mortgage payment. More than likely you'll need to come up with some cold, hard cash in order to finalize the deal. Here are some common closing costs to consider:

Down Payment: Due to today's economic climate, most buyers will need to put down at least 20 percent. This makes good financial sense. If you can't afford to put 20 percent down then you probably can't afford to buy this particular house.

Loan Origination: This is what the lender charges you to underwrite the loan, meaning what they charge for their time and all the paperwork they need to do.

Points: You'll often see that different lenders have different "rates" and different "points" they charge. By paying points, you can receive a lower interest rate, but this means more cash at closing.

Credit Score: You can access your credit report for free at annualcreditreport.com, however, in order to see your credit "score" -- the magic number that lenders use to determine your interest rate -- you'll need to pay a small fee.

Home Inspection: You want to be sure, no matter if the house is new or old, that you get a home inspection by a qualified inspector. You may love the house and the price, but if you find out that a big ticket item needs replaced you will be able to renegotiate the price or decide to change your tune on buying the home. A typical inspection will run you from around $300 to $500.

Private Mortgage Insurance (PMI): This is what a lender charges if you are putting less than 20 percent down on the cost of the home. It usually runs about .5 to 1 percent of the total cost of the loan and is simply a safeguard to protect the lender should you default.

Other Small Fees: Insurance escrow, property tax escrow, notary feeds, land surveys, deed recording, etc. Be sure to ask your real estate agent which will apply to your contract and what the expected costs will be. Congratulations on the decision to buy! Owning a home can be a wonderfully fulfilling experience. Just be sure you're ready for the closing costs coming your way!
 

Written by Carla Hill Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com