Half of refinance applications are abandoned or rejected, as are 30 percent of purchase mortgage applications, according to the Mortgage Bankers Association. All told, the Federal Financial Institutions Examination Council (FFIEC) says that well over 2 million mortgage applications were rejected last year.
Want to avoid falling into that number? It's tough -- especially in light of the fact that mortgage lenders have become increasingly restrictive in terms of their lending guidelines since the housing market crash.
Here, as a cautionary tale and primer on what to expect, are the top six reasons mortgage lenders reject applications.
Click on link below to view the rest of the article.
http://www.inman.com/buyers-sellers/columnists/tara-nicholle-nelson/top-6-reasons-mortgage-applications-are-rejected
Tuesday, October 11, 2011
Thursday, September 23, 2010
Using Comparables to price your home...
For Buyers For Sellers How to Use Comparable Sales to Price Your HomePrintShare
Before you put your home up for sale, use the right comparable sales to find the perfect price.
A house is comparable to yours in price if it's in the same neighborhood, on a similar street, and in the same school district.
How much can you sell your home for? Probably about as much as the neighbors got, as long as the neighbors sold their house in recent memory and their home was just like your home.
Knowing how much homes similar to yours, called comparable sales (or in real estate lingo, comps), sold for gives you the best idea of the current estimated value of your home. The trick is finding sales that closely match yours.
What makes a good comparable sale?
Your best comparable sale is the same model as your house in the same subdivision—and it closed escrow last week. If you can’t find that, here are other factors that count:
Location: The closer to your house the better, but don’t just use any comparable sale within a mile radius. A good comparable sale is a house in your neighborhood, your subdivision, on the same type of street as your house, and in your school district.
Home type: Try to find comparable sales that are like your home in style, construction material, square footage, number of bedrooms and baths, basement (having one and whether it’s finished), finishes, and yard size.
Amenities and upgrades: Is the kitchen new? Does the comparable sale house have full A/C? Is there crown molding, a deck, or a pool? Does your community have the same amenities (pool, workout room, walking trails, etc.) and homeowners association fees?
Date of sale: You may want to use a comparable sale from two years ago when the market was high, but that won’t fly. Most buyers use government-guaranteed mortgages, and those lending programs say comparable sales can be no older than 90 days.
Sales sweeteners: Did the comparable-sale sellers give the buyers downpayment assistance, closing costs, or a free television? You have to reduce the value of any comparable sale to account for any deal sweeteners.
Agents can help adjust price based on insider insights
Even if you live in a subdivision, your home will always be different from your neighbors’. Evaluating those differences—like the fact that your home has one more bedroom than the comparables or a basement office—is one of the ways real estate agents add value.
An active agent has been inside a lot of homes in your neighborhood and knows all sorts of details about comparable sales. She has read the comments the selling agent put into the MLS, seen the ugly wallpaper, and heard what other REALTORS®, lenders, closing agents, and appraisers said about the comparable sale.
More ways to pick a home listing price
If you’re still having trouble picking out a listing price for your home, look at the current competition. Ask your real estate agent to be honest about your home and the other homes on the market (and then listen to her without taking the criticism personally).
Next, put your comparable sales into two piles: more expensive and less expensive. What makes your home more valuable than the cheaper comparable sales and less valuable than the pricier comparable sales?
Are foreclosures and short sales comparables?
If one or more of your comparable sales was a foreclosed home or a short sale (a home that sold for less money than the owners owed on the mortgage), ask your real estate agent how to treat those comps.
A foreclosed home is usually in poor condition because owners who can’t pay their mortgage can’t afford to pay for upkeep. Your home is in great shape, so the foreclosure should be priced lower than your home.
Short sales are typically in good condition, although they are still distressed sales. The owners usually have to sell because they’re divorcing, or their employer is moving them to Kansas.
How much short sales are discounted from their market value varies among local markets. The average short-sale home in Omaha in recent years was discounted by 8.5%, according to a University of Nebraska at Omaha study. In suburban Washington, D.C., sellers typically discount short-sale homes by 3% to 5% to get them quickly sold, real estate agents report. In other markets, sellers price short sales the same as other homes in the neighborhood.
Before you put your home up for sale, use the right comparable sales to find the perfect price.
A house is comparable to yours in price if it's in the same neighborhood, on a similar street, and in the same school district.
How much can you sell your home for? Probably about as much as the neighbors got, as long as the neighbors sold their house in recent memory and their home was just like your home.
Knowing how much homes similar to yours, called comparable sales (or in real estate lingo, comps), sold for gives you the best idea of the current estimated value of your home. The trick is finding sales that closely match yours.
What makes a good comparable sale?
Your best comparable sale is the same model as your house in the same subdivision—and it closed escrow last week. If you can’t find that, here are other factors that count:
Location: The closer to your house the better, but don’t just use any comparable sale within a mile radius. A good comparable sale is a house in your neighborhood, your subdivision, on the same type of street as your house, and in your school district.
Home type: Try to find comparable sales that are like your home in style, construction material, square footage, number of bedrooms and baths, basement (having one and whether it’s finished), finishes, and yard size.
Amenities and upgrades: Is the kitchen new? Does the comparable sale house have full A/C? Is there crown molding, a deck, or a pool? Does your community have the same amenities (pool, workout room, walking trails, etc.) and homeowners association fees?
Date of sale: You may want to use a comparable sale from two years ago when the market was high, but that won’t fly. Most buyers use government-guaranteed mortgages, and those lending programs say comparable sales can be no older than 90 days.
Sales sweeteners: Did the comparable-sale sellers give the buyers downpayment assistance, closing costs, or a free television? You have to reduce the value of any comparable sale to account for any deal sweeteners.
Agents can help adjust price based on insider insights
Even if you live in a subdivision, your home will always be different from your neighbors’. Evaluating those differences—like the fact that your home has one more bedroom than the comparables or a basement office—is one of the ways real estate agents add value.
An active agent has been inside a lot of homes in your neighborhood and knows all sorts of details about comparable sales. She has read the comments the selling agent put into the MLS, seen the ugly wallpaper, and heard what other REALTORS®, lenders, closing agents, and appraisers said about the comparable sale.
More ways to pick a home listing price
If you’re still having trouble picking out a listing price for your home, look at the current competition. Ask your real estate agent to be honest about your home and the other homes on the market (and then listen to her without taking the criticism personally).
Next, put your comparable sales into two piles: more expensive and less expensive. What makes your home more valuable than the cheaper comparable sales and less valuable than the pricier comparable sales?
Are foreclosures and short sales comparables?
If one or more of your comparable sales was a foreclosed home or a short sale (a home that sold for less money than the owners owed on the mortgage), ask your real estate agent how to treat those comps.
A foreclosed home is usually in poor condition because owners who can’t pay their mortgage can’t afford to pay for upkeep. Your home is in great shape, so the foreclosure should be priced lower than your home.
Short sales are typically in good condition, although they are still distressed sales. The owners usually have to sell because they’re divorcing, or their employer is moving them to Kansas.
How much short sales are discounted from their market value varies among local markets. The average short-sale home in Omaha in recent years was discounted by 8.5%, according to a University of Nebraska at Omaha study. In suburban Washington, D.C., sellers typically discount short-sale homes by 3% to 5% to get them quickly sold, real estate agents report. In other markets, sellers price short sales the same as other homes in the neighborhood.
Sunday, September 12, 2010
DOES AN OPEN HOUSE WORK TO SELL YOUR HOUSE?
That’s a good question… There are a lot of real estate agents that don’t believe open houses work to sell a home. I feel an open house is one of many ways to successfully market your home.
This is a conversation that we will have before we list your home. You have to understand that an open house doesn’t have the same impact that it has had in years past. A National Association of Realtors study found that their success rate is a mere 2%.
This doesn’t mean that it never happens because it does, just not very often. When it comes to selling real estate every bit of exposure will increase your odds of selling. I have had phone calls from people that ask when I will have an open house at one of my listings and had people come through that are very interested in seeing the home.
Home Buyers turn to the Internet to look for homes up to 90% of the time. With most people using the internet to view homes we need to use tools that shows your home at its best. One of the best tools to use is a Visual Tour. This is a way to showcase your home providing a quality, rich media internet based showcase. No longer is it acceptable to just put a sign in the front yard, purchase a 3 line classified ad, send out a batch of “Just Listed” postcards to the neighbors and hold an open house. I will use everything I have available to get your home exposure.
We’ll develop and implement a personal marketing plan customized to bring you the Highest Price, with the Least Inconvenience in the Shortest Possible Time with the Best Terms.
If you’re thinking of selling your home Call Lester Hunt for your Personalized Marketing Plan.
Contact information available at. http://www.homesdulthmn.com/
Check on of my Visual Tours.
Monday, August 30, 2010
REALTOR'S DO MAKE A DIFFERENCE...
The NUMBER ONE (1) thing you can do is find a good Realtor, who is familiar with your area. It's okay, to interview them and know that you don't have to settle on the first one you meet. If you're a first time home buyer ask your friends, family or co-workers. Internet searches also help. Do not discount new Realtors as being too inexperienced. They are excited about their new field and may work a little harder, and come up with new innovative ideas and ways to help you sell your home.
Below are more tips from frugal home sellers..... read and enjoy!
PAINT:
It wasn’t that expensive and it’s made the place look so much bigger and brighter! We used light, neutral colors that would be appealing to most (our prior colors were great but too dark for most people’s tastes). This could be done yourself to save more. We just didn’t have the time to do it ourselves (and we got a great deal on a local painter).
REPLACE LIGHT FIXTURES:
Replace dining room, bathroom, and the bedroom’s light fixtures. Big box stores like Home Depot, and Lowe's sell them and they weren’t that expensive. Combined with the new paint job, the apartment looks much bigger than before. Add to that use fluorescent lights so you can tell prospective buyers that the light costs will be lower.
REMOVE CLUTTER:
Remove CD’s and their shelves, books etc. Remove, give away, put in storage whatever you can. Get down to the bare minimum to make the place look as big as possible and let a buyer step in and imagine it as theirs. This will also help you when you move as you will have less to box and bring with you.
CLEAN CARPET/WAX FLOORS:
Renting a machine for the day to clean your carpets can be inexpensive. Same is true for a floor buffer. There’s also less expensive cleaners you can use that may require more elbow grease but can be as effective. If you’re able add no base board molding. Basically give a buyer the thought that they don’t have to do any work on the floors if they don’t want to!
LANDSCAPING:
If you have a garden or lawn space do what you can to spruce it up and make it lively! New plants don’t have to be expensive and can make the front of your home look much more inviting!
TAKE GREAT PICTURES:
Your home will most likely be online somewhere for sale and you will need photos of it. Make sure the photos are good quality taken at the time of the day the light is the best. Wait until you have everything ready and use a good camera. If you have a friend who’s a photography buff ask him to come over and take a few shots for you. You want big and clean! I’ve seen people post photos of cluttered rooms that make me instantly go to the next listing on the site.
RE-GROUT WALLS & FLOOR:
This sounds like more work than it really is. I’ve discovered it takes some elbow grease but doesn’t cost too much. And new grout will make your tiles look almost new again. Go ahead and take a close look at how dingy they may be… I’ve been slowly re-working the tiles in our bathroom!
REPLACE OLD FIXTURES, SINKS ETC.:
You can go crazy replacing these items and spend thousands for sure. But sometimes if yours are beat up and old an inexpensive replacement will look much better than what you have. New usually equals clean and that helps a buyer!
REPLACE OUTLET & SWITCH COVERS:
Over the years these can get beat up and dirty. But they cost little to replace. Put these in after you have painted to keep them clean.
DE-PERSONALIZE YOUR HOME:
Put away all of your photos and pictures. You can leave a few up to display but you want a buyer to walk in and imagine the place as theirs. Seeing your face all over doesn’t help that. It also helps remove the clutter too!
READ MAGAZINES/WATCH TV:
No, I’m not saying you should sit around and be lazy. What you can do is look at what homes look like in advertisements and shows. There are also plenty of home shows on TV these days to give you ideas as well. You can get a good idea of what a model home should look like.
WE NEED MORE LIGHT"
When you are showing the home turn on the lights to make the place look bigger even if it’s during the day!
BAKE BEFORE A SHOWING:
This one is a bit cliche but you would be amazed how well it works! We had friends over and one was helping me install a new dining room light. At the same time my wife happened to be baking a cake. It smelled amazing and really made the place feel “home”-ey. (And really how much do those instant bake cookies cost?)
CLEAN, SCRUB, CLEAN, REPEAT:
Clean like a madman. Then go do it again. Then ask a neighbor or friend to point out what still seems dingy and hit the cleaners again. Make the place sparkle! The cleaner the better. A clean place tells a buyer that you take care of the home (and it makes it look great).
EMPTY THOSE CLOSETS:
As best you can clean out the closets. Again, live with the bare minimum that you need and get those closets looking as big as possible. Buyers will want to see how much of their stuff they can put in them not how much of yours!
VISIT OTHER HOMES IN YOUR AREA:
Take an afternoon and go visit the open houses in your area. See what their homes look like and what they offer and the price they ask. If you see a similar place as yours take note; this is your competition and you want your place to look better! Is it cleaner? Newer? You may be surprised to find out it won’t take much to make your place look nicer.
REPLACE TOILET SEAT:
Seriously! People will notice that it’s sparkling clean which will get you big points. Either they don’t need to get a new one themselves or they believe you keep things super-clean, you win.
Yes, it takes some work on your part to do these things. But if it will help you sell then it will more than pay off!! A couple of years ago you might have had a bidding war for a home that wasn’t all done up. But in today’s economy you have to put your best foot forward just to get the sale! Don’t let something small keep a buyer from wanting your place.
Below are more tips from frugal home sellers..... read and enjoy!
PAINT:
It wasn’t that expensive and it’s made the place look so much bigger and brighter! We used light, neutral colors that would be appealing to most (our prior colors were great but too dark for most people’s tastes). This could be done yourself to save more. We just didn’t have the time to do it ourselves (and we got a great deal on a local painter).
REPLACE LIGHT FIXTURES:
Replace dining room, bathroom, and the bedroom’s light fixtures. Big box stores like Home Depot, and Lowe's sell them and they weren’t that expensive. Combined with the new paint job, the apartment looks much bigger than before. Add to that use fluorescent lights so you can tell prospective buyers that the light costs will be lower.
REMOVE CLUTTER:
Remove CD’s and their shelves, books etc. Remove, give away, put in storage whatever you can. Get down to the bare minimum to make the place look as big as possible and let a buyer step in and imagine it as theirs. This will also help you when you move as you will have less to box and bring with you.
CLEAN CARPET/WAX FLOORS:
Renting a machine for the day to clean your carpets can be inexpensive. Same is true for a floor buffer. There’s also less expensive cleaners you can use that may require more elbow grease but can be as effective. If you’re able add no base board molding. Basically give a buyer the thought that they don’t have to do any work on the floors if they don’t want to!
LANDSCAPING:
If you have a garden or lawn space do what you can to spruce it up and make it lively! New plants don’t have to be expensive and can make the front of your home look much more inviting!
TAKE GREAT PICTURES:
Your home will most likely be online somewhere for sale and you will need photos of it. Make sure the photos are good quality taken at the time of the day the light is the best. Wait until you have everything ready and use a good camera. If you have a friend who’s a photography buff ask him to come over and take a few shots for you. You want big and clean! I’ve seen people post photos of cluttered rooms that make me instantly go to the next listing on the site.
RE-GROUT WALLS & FLOOR:
This sounds like more work than it really is. I’ve discovered it takes some elbow grease but doesn’t cost too much. And new grout will make your tiles look almost new again. Go ahead and take a close look at how dingy they may be… I’ve been slowly re-working the tiles in our bathroom!
REPLACE OLD FIXTURES, SINKS ETC.:
You can go crazy replacing these items and spend thousands for sure. But sometimes if yours are beat up and old an inexpensive replacement will look much better than what you have. New usually equals clean and that helps a buyer!
REPLACE OUTLET & SWITCH COVERS:
Over the years these can get beat up and dirty. But they cost little to replace. Put these in after you have painted to keep them clean.
DE-PERSONALIZE YOUR HOME:
Put away all of your photos and pictures. You can leave a few up to display but you want a buyer to walk in and imagine the place as theirs. Seeing your face all over doesn’t help that. It also helps remove the clutter too!
READ MAGAZINES/WATCH TV:
No, I’m not saying you should sit around and be lazy. What you can do is look at what homes look like in advertisements and shows. There are also plenty of home shows on TV these days to give you ideas as well. You can get a good idea of what a model home should look like.
WE NEED MORE LIGHT"
When you are showing the home turn on the lights to make the place look bigger even if it’s during the day!
BAKE BEFORE A SHOWING:
This one is a bit cliche but you would be amazed how well it works! We had friends over and one was helping me install a new dining room light. At the same time my wife happened to be baking a cake. It smelled amazing and really made the place feel “home”-ey. (And really how much do those instant bake cookies cost?)
CLEAN, SCRUB, CLEAN, REPEAT:
Clean like a madman. Then go do it again. Then ask a neighbor or friend to point out what still seems dingy and hit the cleaners again. Make the place sparkle! The cleaner the better. A clean place tells a buyer that you take care of the home (and it makes it look great).
EMPTY THOSE CLOSETS:
As best you can clean out the closets. Again, live with the bare minimum that you need and get those closets looking as big as possible. Buyers will want to see how much of their stuff they can put in them not how much of yours!
VISIT OTHER HOMES IN YOUR AREA:
Take an afternoon and go visit the open houses in your area. See what their homes look like and what they offer and the price they ask. If you see a similar place as yours take note; this is your competition and you want your place to look better! Is it cleaner? Newer? You may be surprised to find out it won’t take much to make your place look nicer.
REPLACE TOILET SEAT:
Seriously! People will notice that it’s sparkling clean which will get you big points. Either they don’t need to get a new one themselves or they believe you keep things super-clean, you win.
Yes, it takes some work on your part to do these things. But if it will help you sell then it will more than pay off!! A couple of years ago you might have had a bidding war for a home that wasn’t all done up. But in today’s economy you have to put your best foot forward just to get the sale! Don’t let something small keep a buyer from wanting your place.
Wednesday, August 18, 2010
IS IT REALLY A BUYERS MARKET?
A market which has more sellers than buyers. Low prices result from this excess of supply over demand.
Our local market could be easily be called a Buyers Market. We have a lot of homes in the market at all price ranges. If you are looking to purchase a home now is a great time to start looking. To start you need to talk with a mortgage specialist to find what your buying power.
Now is it a bad time to be a seller. Not necessarily if you properly prepare your home and price it right. It’s a good time to be in the “How to sell” in a buyer's market.
You've got to be proactive on price, marketing and more. Here are few steps to take before you plant the "for sale" sign.
If you're selling your home this year, be prepared for a marathon, not a sprint.
In most places, those heady days of putting a property on the market, receiving multiple bids, getting more than you expected, and accepting an offer in just days or weeks are over.
Now, for most houses in most parts of the country, it's a buyer's market. That means that more houses are for sale, there are longer stretches on the market, and prices have slowed, plateaued or, in some places, decreased.
Homes are staying on the market for about four months, according to the most recent averages from the National Association of Realtors.
If you plan to plant your "for sale" sign, here are 10 things you can do beforehand:
1. Recognize every market is different – What’s your home worth?
2. Get your home inspected.
3. Shape up before marketing.
4. Devise a marketing plan.
5. Check into company relocation assistance. Are you moving to take a new job? If so, the company might offer resources to make selling your house easier,
6. Interview real-estate agents. If you're interested in using an agent, interview several early on about listing your home. "Ask them for their advice,"That's a good way to select an agent." What would they highlight about your home? What would they change before it goes on the market? Discuss, Talk about it; What makes a home stand out?
7. Set a price. The rules are different in soft markets don't overprice your house 20 percent to leave wiggle room for negotiating. That kind of strategy might never be a good idea, but it can really backfire. It's not a matter of being willing to negotiate. If your price is too high, potential buyers may not even look at it. And they may very well see a negative message in such a high price. Those who overprice their homes in this market are wasting everyones time.
Two more points to consider:
Modern technology. Agents and buyers most likely are using computers to search for properties. If you want to sell yours for about $400,000, consider listing it at $399,999 rather than $400,500. That way, a computer search of anything between $350,000 and $400,000 will include your listing.
Commissions aren't add-ons. Don't add the real-estate commission to the value of the home to come up with your asking price, says. If you use an agent, the fee comes out of your share of the profits. Otherwise, you're going to get penalized for overpricing your house. Instead: Try negotiating your commission with the agent. When the recent seller's market was in full swing, it was easy to get agents to list your property for as low as 4 percent (split with a co-broker). They knew the property would sell in days or weeks and their marketing costs would be low. Now it's reversed. Agents commonly are looking at four to six months to sell a property, which increases their marketing expenses. This makes them hesitant to offer a discount.
Beware of hidden financing costs. Not all financing is the same from a seller's point of view. With some types of financing, such as FHA and VA home loans, the seller pays the points on the loan. Understand the different types and what will be required of you as a seller, because that could affect how much you net in a sale.
8. Understand your price. While you don't want to undervalue your house, many sellers today won't make as much as neighbors who sold last year. If you have your heart set on a certain amount and find out that houses aren't selling for that, you may have to change your mind and sit on the house.
9. Get rid of the junk. This year, it's more important because buyers are going to be fussier. Buyers are going to come in with an attitude. Throw things out, ship them early or rent a storage locker. But clear out that clutter. Buyers look for space and light. To show it off, you need to be able to tour a group comfortably through the house, as well as actually walk into those "walk-in" closets.
10. Stay on top of the market. You must be aware of market changes. That's one reason of the many reasons to an agent. Realtors stay on top of what is happening with mortgages and finance rates, keep looking at comps and "see trends before they happen. The real-estate market is still in a time of correction. You have to be so careful with both buying and selling.
Our local market could be easily be called a Buyers Market. We have a lot of homes in the market at all price ranges. If you are looking to purchase a home now is a great time to start looking. To start you need to talk with a mortgage specialist to find what your buying power.
Now is it a bad time to be a seller. Not necessarily if you properly prepare your home and price it right. It’s a good time to be in the “How to sell” in a buyer's market.
You've got to be proactive on price, marketing and more. Here are few steps to take before you plant the "for sale" sign.
If you're selling your home this year, be prepared for a marathon, not a sprint.
In most places, those heady days of putting a property on the market, receiving multiple bids, getting more than you expected, and accepting an offer in just days or weeks are over.
Now, for most houses in most parts of the country, it's a buyer's market. That means that more houses are for sale, there are longer stretches on the market, and prices have slowed, plateaued or, in some places, decreased.
Homes are staying on the market for about four months, according to the most recent averages from the National Association of Realtors.
If you plan to plant your "for sale" sign, here are 10 things you can do beforehand:
1. Recognize every market is different – What’s your home worth?
2. Get your home inspected.
3. Shape up before marketing.
- A buyer's market means you've got more competition.
- "You want to put your best foot forward,
- " New paint. Paint the whole house, if it needs it, or just the trim, shutters and door to freshen up.
- A clean entryway. Sweep or pressure-wash the front walk and porch.
- Polish the outdoor metalwork, clean the windows and glass, and replace any burned-out bulbs in outdoor lighting. And, if you can, add planters with flowers.
- Lush landscaping. Think new mulch, sharp edging, a healthy lawn and beds of flowers.
4. Devise a marketing plan.
5. Check into company relocation assistance. Are you moving to take a new job? If so, the company might offer resources to make selling your house easier,
6. Interview real-estate agents. If you're interested in using an agent, interview several early on about listing your home. "Ask them for their advice,"That's a good way to select an agent." What would they highlight about your home? What would they change before it goes on the market? Discuss, Talk about it; What makes a home stand out?
7. Set a price. The rules are different in soft markets don't overprice your house 20 percent to leave wiggle room for negotiating. That kind of strategy might never be a good idea, but it can really backfire. It's not a matter of being willing to negotiate. If your price is too high, potential buyers may not even look at it. And they may very well see a negative message in such a high price. Those who overprice their homes in this market are wasting everyones time.
Two more points to consider:
Modern technology. Agents and buyers most likely are using computers to search for properties. If you want to sell yours for about $400,000, consider listing it at $399,999 rather than $400,500. That way, a computer search of anything between $350,000 and $400,000 will include your listing.
Commissions aren't add-ons. Don't add the real-estate commission to the value of the home to come up with your asking price, says. If you use an agent, the fee comes out of your share of the profits. Otherwise, you're going to get penalized for overpricing your house. Instead: Try negotiating your commission with the agent. When the recent seller's market was in full swing, it was easy to get agents to list your property for as low as 4 percent (split with a co-broker). They knew the property would sell in days or weeks and their marketing costs would be low. Now it's reversed. Agents commonly are looking at four to six months to sell a property, which increases their marketing expenses. This makes them hesitant to offer a discount.
Beware of hidden financing costs. Not all financing is the same from a seller's point of view. With some types of financing, such as FHA and VA home loans, the seller pays the points on the loan. Understand the different types and what will be required of you as a seller, because that could affect how much you net in a sale.
8. Understand your price. While you don't want to undervalue your house, many sellers today won't make as much as neighbors who sold last year. If you have your heart set on a certain amount and find out that houses aren't selling for that, you may have to change your mind and sit on the house.
9. Get rid of the junk. This year, it's more important because buyers are going to be fussier. Buyers are going to come in with an attitude. Throw things out, ship them early or rent a storage locker. But clear out that clutter. Buyers look for space and light. To show it off, you need to be able to tour a group comfortably through the house, as well as actually walk into those "walk-in" closets.
10. Stay on top of the market. You must be aware of market changes. That's one reason of the many reasons to an agent. Realtors stay on top of what is happening with mortgages and finance rates, keep looking at comps and "see trends before they happen. The real-estate market is still in a time of correction. You have to be so careful with both buying and selling.
Thursday, August 12, 2010
Have you checked your credit health lately?
You can check your score for FREE annually....https://www.annualcreditreport.com
It's not as hard as you think to raise credit score. It's a well known fact that lenders will give people with higher credit scores lower interest rates on mortgages, car loans and credit cards. If your credit score falls under 620 just getting loans and credit cards with reasonable terms is difficult.
It's not as hard as you think to raise credit score. It's a well known fact that lenders will give people with higher credit scores lower interest rates on mortgages, car loans and credit cards. If your credit score falls under 620 just getting loans and credit cards with reasonable terms is difficult.
There are more than 30 million people in the United States that have credit scores under 620 and if you're probably wondering what you can do to raise credit score for you.
Here are five simple tips that you can use to raise credit score.
1. Get a copy of your credit report
Obtaining a copy of your credit report is a good idea because if there is something on your report that is incorrect, you will raise credit score once it is removed. Make sure you contact the bureau immediately to remove any incorrect information.
Your credit report should come from the three major bureaus: Experian, Trans Union and Equifax. It's important to know that each service will give you a different credit score.
2. Pay Your Bills On Time
Your payment history makes up 35% of your total credit score. Your recent payment history will carry much more weight than what happened five years ago.
Missing just one months payment on anything can knock 50 to 100 points off of your credit score.
Paying your bills on time is a single best way to start rebuilding your credit rating and raise credit score for you.
3. Pay Down Your Debt
Your credit card issuer reports your outstanding balance once a month to the credit bureaus. It doesn't matter whether you pay off that balance a few days later or whether you carry it from month to month.
Most people don't realize that credit bureaus don't distinguish between those who carry a balance on their cards and those who don't. So by charging less you can raise credit score even if you pay off your credit cards every month.
Lenders also like to see a lot of of room between the amount of debt on your credit cards and your total credit limits. So the more debt you pay off, the wider that gap and the better your credit score.
In the past people were told to close old accounts they weren't using. But with today's current scoring methods that could actually hurt your credit score.
Closing old or paid off credit accounts lowers the total credit available to you and makes any balances you have appear larger in credit score calculations. Closing your oldest accounts can actually shorten the length of your credit history and to a lender it makes you less credit worthy.
If you are trying to minimize identity theft and it's worth the peace of mind for you to close your old or paid off accounts, the good news is it will only lower you score a minimal amount. But just by keeping those old accounts open you can raise credit score for you.
5. Stay Out Of Bankruptcy
Bankruptcy is the single worst thing that will destroy your credit score. Bankruptcy will lower your credit score by 200 points or more and is very difficult to come back from.
Once your credit score falls below 620, any loan you get will be far more expensive. A bankruptcy on your credit record is reported for up to 10 years.
The reality of a bankruptcy is it will limit you to high-interest lenders that will squeeze out high interest rate payments from you for years.
It is better to get credit counseling to help you with your bills and avoid bankruptcy at all costs. By getting credit counseling instead of declaring bankruptcy you can raise credit score over a much shorter period of time.
Friday, July 23, 2010
Everyone needs to relax. Here are a few tips to prepare your home for vacation
Don't Make the Empty House Obvious
You can create the illusion that someone’s home by using timers on lights and radios. Leave the blinds open slightly so light shines out. Disguise the fact that you’re away by stopping mail and newspaper deliveries, or have a neighbor collect them. Packing your car with the garage door closed helps hide the fact you’re leaving.
Put interior and porch lights on timers. Have someone periodically stop by so there’s activity in and out of the house. Having a neighbor park their car in your driveway and putting out trash cans for pickup helps sell the idea too. An unanswered ringing phone is a dead giveaway to thieves, so turn down the volume.
Plan Well for Long Trips
If you’re going to be gone for longer than a month, cover upholstered furniture with sheets to cut down on dust. Opening doors to rooms and closets will improve air flow and make the place feel less musty when you return.
If you’ll be gone for more than a month, store food such as sugar, flour and cereal in sealed containers. You may also want to empty and unplug the refrigerator and defrost the freezer. Propping the door open with a dowel rod and placing an open box of baking soda to absorb odors will keep your refrigerator/freezer in good condition for your return. For added security, disable your garage door opener.
Ensure the Home Doesn't Flood
Because it’s under pressure, a burst washer hose could flood your home while you’re away. Shutting off the valve, as well as valves to sinks and toilets is cheap flood insurance.
In cold climates during the winter, turn off the water at the main line and open sink and tub faucets to drain the pipes. Drain and store hoses and insulate any outdoor faucets. Pouring a mixture of half antifreeze and half water into the drain’s P-trap can help prevent pipes from freezing.
You can create the illusion that someone’s home by using timers on lights and radios. Leave the blinds open slightly so light shines out. Disguise the fact that you’re away by stopping mail and newspaper deliveries, or have a neighbor collect them. Packing your car with the garage door closed helps hide the fact you’re leaving.
Put interior and porch lights on timers. Have someone periodically stop by so there’s activity in and out of the house. Having a neighbor park their car in your driveway and putting out trash cans for pickup helps sell the idea too. An unanswered ringing phone is a dead giveaway to thieves, so turn down the volume.
Plan Well for Long Trips
If you’re going to be gone for longer than a month, cover upholstered furniture with sheets to cut down on dust. Opening doors to rooms and closets will improve air flow and make the place feel less musty when you return.
If you’ll be gone for more than a month, store food such as sugar, flour and cereal in sealed containers. You may also want to empty and unplug the refrigerator and defrost the freezer. Propping the door open with a dowel rod and placing an open box of baking soda to absorb odors will keep your refrigerator/freezer in good condition for your return. For added security, disable your garage door opener.
Ensure the Home Doesn't Flood
Because it’s under pressure, a burst washer hose could flood your home while you’re away. Shutting off the valve, as well as valves to sinks and toilets is cheap flood insurance.
In cold climates during the winter, turn off the water at the main line and open sink and tub faucets to drain the pipes. Drain and store hoses and insulate any outdoor faucets. Pouring a mixture of half antifreeze and half water into the drain’s P-trap can help prevent pipes from freezing.
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