Quicken Loans, Freddie Team for 3% Loans
Quicken Loans, Freddie Team for 3% Loans DAILY REAL ESTATE NEWS | TUESDAY, OCTOBER 20, 2015 Quicken Loans has partnered with Freddie Mac to help expand a program that would allow qualified borrowers to finance homes with down payments of as little as 3 percent, the companies announced this week. The partnership comes at a time when Quicken Loans is battling allegations from the Justice Department over its past underwriting practicing on Federal Housing Administration-backed loans. Quicken Loans has sued the federal government, alleging the Departments of Justice and Housing and Urban Development “cherry-picked” from its FHA-backed loans in trying to show poor underwriting. In turn, the government sued Quicken Loans, accusing the firm of submitting insurance claims for hundreds of poorly underwritten FHA-insured loans over four years. Both lawsuits are still the pending. The lawsuit has prompted Quicken Loans, like other large lenders, to reduce its involvement in the FHA single-family program, which offers mortgage insurance for first-time and lower-income borrowers. Lenders such as JPMorgan Chase & Co. also have been reportedly hesitant to underwrite FHA loans. “Mid-size and small community-based lenders, both banks and nonbanks, have stepped up to fill the gap,” says Glen Corso, executive director of Consumer Mortgage Lenders of America. Quicken Loans, under its new agreement with Freddie Mac, will offer financing for loans with down payments as small as 3 percent – which is lower than the 3.5 percent for FHA loans. “Home buyer demographics will continue to significantly shift in upcoming years, and mortgage programs must evolve to serve the needs of groups like first-time buyers and minority groups,” Quicken Loans Chief Executive Officer Bill Emerson says. Source: “Quicken Joins Freddie Mac to Offer Loans While Battling U.S.,” Bloomberg (Oct. 19, 2015) ...
read more7 Tips to Get a Home Winter-Ready
7 Tips to Get a Home Winter-Ready DAILY REAL ESTATE NEWS | WEDNESDAY, OCTOBER 21, 2015 Winter is on the way, and home owners should preparing their homes for the colder temperatures. The National Association of Home Builders Remodelers suggested home maintenance tips to increase energy efficiency and lessen the chance of emergency repairs. “Before winter weather sets in, spend some time improving and protecting the inside of your home,” says NAHB Remodelers Chairman Robert Criner. “Fall is a good time to check mechanical systems and combat drafts. It’s also an opportune time to organize the details of your next remodeling project and save space on the calendar of a professional remodeler.” Share these tips with your prospects to help them better protect their home during the colder months ahead. Ensure there are no gaps in insulation or crawl spaces that expose pipes to cold air, which could put the pipes at risk of freezing and bursting. Have your heating system checked by a licensed technician before cold weather requires daily use. Block drafts around doors, windows and baseboards with weather stripping, window film and caulk to control heat loss. Install storm doors and windows to improve energy-efficiency and get rid of drafts. Have chimneys cleaned by an experienced chimney sweep to prevent the risk of a fire from buildup or blockages. Spray door locks with powdered-graphite lubricant to prevent freezing and sticking. Set ceiling fans to rotate clockwise to force rising warm air back towards the floor. Source: National Association of Home Builders Remodelers ...
read moreHow to Spot a Bad HOA
How to Spot a Bad HOA Your buyers can avoid their own homeowner association horror story by keeping an eye out for these items during the search. SEPTEMBER 2015 | BY JILL SCHWEITZER What’s the difference between a good, mediocre, and downright bad homeowner association? It’s not entirely a matter of opinion. There are specific items to look at and questions to ask that can tell your buyers whether they’re buying into an HOA that will only give them headaches. This information is particularly important in condominiums, where the HOA usually is responsible for maintaining the exterior of the buildings. If they aren’t careful, your buyers could face paying a big special assessment for years of neglected capital improvements after they close. The bill they’re typically stuck with could be anywhere from $1,000 to $30,000. (In some cases, they’ve gone over $100,000!) Help your buyers perform due diligence before closing by assisting them in identifying issues to minimize the element of surprise. While this isn’t intended to be legal advice and there may be other items to look at other than those mentioned in this article, this should give you ideas for how to advocate for your buyers when dealing with HOAs. Look at the Community as a Whole Is it run-down? Don’t solely focus on the one property your buyer is purchasing. When the HOA is responsible for maintaining the buildings, check out neighboring units and common spaces along with the home your buyer is purchasing. Here are some telltale signs of an HOA that isn’t on top of its responsibilities: Are the fences rusting? Are the building signs in disrepair? Does the asphalt look like gravel? Are the pool and other amenities clean and in good working order? What is the age and condition of the roofs? Do the buildings need to be painted? Are there staircases and balconies in poor shape that the HOA is responsible for maintaining? When were the buildings last treated for termites? Have they been neglected, with a higher risk of unknown termite damage throughout the community? Are there problems with siding? Are there grading issues causing flooding? What is the condition of the gutters, fascia, and other fixtures? Look at the Reserve Study First of all, make sure you and your buyers know what this is. A reserve study details an HOA’s long-term funding plan, showing, most important, how much it currently has to offset maintenance costs. It’s the most important tool to determine the financial health of the HOA. What is the percent funded? Zero percent to 30 percent means it’s at high risk of a special assessment; 31 percent to 70 percent is a medium risk; 71 percent to 100 percent is low risk. How much does the reserve study recommend the HOA saves each year, and how much is the HOA actually saving? Has the HOA been following the reserve study and making capital improvements? How much money can you foresee being needed compared to what the HOA has saved? Proactively Ask Questions Encourage your buyer to call and ask the HOA or HOA management company questions. You may need to make it a condition of the purchase contract that the seller will provide the answers if the HOA management company won’t answer you or your buyer. Keep...
read moreBest Day of the Year to Buy a Home
Best Day of the Year to Buy a Home DAILY REAL ESTATE NEWS | FRIDAY, SEPTEMBER 11, 2015 Mark Oct. 8 in your calendar. That’s the best date to close on a home at a bargain price, according to a new study by RealtyTrac. On average, buyers have purchased 10.8 percent below estimated market value on this date for the last 15 years, the study shows. The next best buying dates for house hunters are Nov. 26 (10.1 percent below market value); Dec. 31 (9.7 percent); Oct. 22 (9.6 percent); and Oct. 15 (9.1 percent). RealtyTrac analyzed more than 32 million sales of single-family homes and condos to come up with the data. Overall, October offered the most promise for bargain hunters. Over the last 15 years, the 2.7 million sales that have closed in October carried an average sales price 2.6 percent below the average estimated full market value at the time of sale. After October, the best deals are in February, July, December, and January. Meanwhile, the worst month of the year to buy a home — but the best to sell — is April. On average, buyers who purchased in April over the last 15 years bought their home at a premium of 1.2 percent above estimated market value at the time of sale. The study also found the best weekday to buy a home is on a Monday. Of 5.5 million single-family home and condo sales in the past 15 years that closed on a Monday, buyers saw an average discount of 2.3 percent below full estimated market value at the time of sale. Friday is the next best weekday, with buyers seeing an average discount of 2 percent. Thursday, on the other hand, was found to be the worst day of the week to buy, with a 1 percent average discount. By date, RealtyTrac found that the worst days of the year to close on a home purchase were Jan. 19 (buyers paid an average 9.6 percent premium above estimated market value); Feb. 16 (9.5 percent); April 20 (9.5 percent); April 6 (8.4 percent); and April 27 (8.2 percent). Source: RealtyTrac Read more...
read moreShould You Still Be Doing Open Houses?
Whether they generate reliable business is a debate among many professionals, but it depends on how you use them. APRIL 2015 | BY JARED JAMES If you were to ask 100 agents if they think open houses work to create new business and generate leads, half would probably say yes and half would say no. So do they work or don’t they? I believe that, as with most things, the issue is usually not the tool you are using but the implementation of the tool. For example, if you gave me a wrench to fix the engine in your car, I can tell you with almost 100 percent certainty that by the time I’m finished, your engine will be no more “fixed” than when I started. Why? Because I don’t know how to fix an engine in a car, regardless of the tools that you give me. But I’m not going to go on a tirade about how the wrench doesn’t work. Most of us know that Internet leads have become a huge part of our business, but converting them is another story. Generally, the agent who pursues a lead the longest and actually gets an in-person conversation with them wins, but that can take months — if not years. With an open house, you are getting these same potential leads in person, and you’re able to have a conversation right then and there. What could be better than that? But wait — I know what you’re thinking. Those aren’t the people who come to your open house. You only get “nosy neighbors,” right? Well, that’s a marketing issue. When done effectively, open houses can be incredibly profitable, so let’s talk about four ways to run them in a more successful way. Use targeted Facebook ads. Most of you reading this have heard all about Facebook ads, but few actually understand how to create and target them correctly. This is a shame because they are an absolute game changer. Gone are the days of putting your open house ad in the Sunday paper and getting overloaded with traffic. However, this isn’t an article on how to create Facebook ads, so I advise you to either watch tutorials on YouTube or hire a company like mine to do them for you. You can create either an ad or a boosted post with your Facebook business page that is targeted at buyers in your area and promotes your open house. You should offer something of value to those who register beforehand or to the first 50 people who show up and mention your ad. Offer exclusivity/privacy. Don’t underestimate the power of allowing potential buyers to get in for a private or exclusive showing before everyone else has a chance to see your listing at an open house. Nothing drives competition like scarcity, and by allowing people to register for the open house, as I mentioned above, you are now able to tell prospective buyers that there are 37 people already registered but you may be able to get them in beforehand if they would like. Invite the nosy neighbors. I know this goes against traditional thought, but hear me out. Sometimes neighbors are nosy because they are curious about the value of their own home, or they may have a friend who wants to...
read moreHow to Sell Your Home Before the End of Summer
If you’re looking to be out-with-the-old and in-with-the-new before the school year starts back up, follow these tips. By MARIE DINSMORE As the weather heats up, so does our affinity for tasks such as laying by the pool or sipping iced tea in the shade. However, while the higher temperatures and long summer days are often conducive to relaxation and even a little—gasp!—laziness, if you have a house to sell, your down time may need to be cut a bit short. Plain and simple, your property isn’t going to sell itself—even with a fantastic real estate agent in your corner—so it’s wise to operate under the assumption that you’ll need to get your hands a bit dirty to move things along. Therefore, if you’re looking to get top dollar for your home before school resumes in the fall, consider the following steps: HIRE YOUR OWN HOME INSPECTOR. I know what you may be thinking. “Why would I drop a few hundred dollars to hire my own inspector if the buyer will be bringing one in anyway?” In truth, it gives you the fantastic opportunity to deal with your home’s imperfections before they have a chance to destroy a fledgling home deal. Depending upon the age and condition of your home, the inspector may leave you with a long list of findings that will require some work, but it’s important to remember that you don’t have to remedy every single item. Start by working with your real estate agent to tackle the most pressing issues and establish which ones can wait. BRING IN THE SUN! If you’re attempting to sell your home during the warm, sunny months, why not capitalize on the spirit of summer by showing buyers just how enjoyable your home can be at this time of the year? To set the stage, consider these ideas: × Bid Farewell to the Clutter – Too much clutter will cause your home to feel closed-off and stuffy. The goal is to make your home feel like a breath of fresh air, so give buyers room to breathe by getting rid of those extra piles of papers, trinkets, and toys. × Foliage is For Inside, Too! – There’s nothing wrong with bringing in the outside. In other words, places things like vases of garden blooms, lush plants, or bowls of fresh fruit in every room. × Cheer Things Up – Yes, the standard advice is to keep your surroundings a bit more on the neutral side; however, add a bit of cheer by incorporating bright accents or pops of color in the form of interesting throw pillows, beachy or nautical décor, or colorful candles. × Beautify Your Outdoor Spaces – What’s better than a summer barbeque? Nothing! Therefore, make a point to dust off your porch and patio furniture, add a few colorful table settings, and make sure your yard is lush and trim. × Entice Your Buyers – We all love the feel of cool air conditioning after spending time in the sticky Georgia heat, so make sure your buyers breathe a sigh of relief when they enter your home. While you’re at it, feel free to make a fresh pitcher of lemonade so you’ll be sure to stay at the forefront of their memory. PRICE IS STILL KING. Sure, you may have spent a large amount of money making your home look like...
read moreUnderstanding the Value of a Realtor
Understanding the Value of a Realtor BY KAREN SALMON Real Estate Agent with Royal LePage Benchmark Share: June 28, 2015 09:31 AM Whether you are shopping for a home or looking to sell your current home, you will need to consider all of your options. You can work with a REALTOR, or you can attempt to navigate the process on your own. Some people believe that a REALTOR is simply an overpaid person who tours you around neighborhoods, unlocks doors, and comments on paint colours. The reality is that my job is much more extensive than that. Here are just a few value-added benefits of hiring a professional REALTOR: Marketing and Matchmaking When you put a house on the market, you need people to see it. If you approach this by attempting to sell your home on your own, you may face some significant challenges. Outside of classified ads and online real estate websites, options for individual homeowners to market to potential buyers are limited. As a REALTOR, I have the connections, experience, and a continual database of buyers looking for homes to help you sell your home faster. As an aside, pricing your home accurately is of paramount importance. An undervalued home will sell quickly in this marketplace. This often leaves you wondering if you could have in fact gotten money more for it – not the best feeling in the world once the ink has dried on the contracts. In the alternative, overpriced homes tend to sit on the market much longer, with very few showings. If a home is not being shown, it is not going to sell. Showings bring offers. Typically, the longer a home sits on the market the less attractive it is to potential buyers. Sellers attempting to go it alone will sometimes stigmatize their homes for no reason, simply by overpricing it. In this case, they usually end up with much less money in their pocket than they would have otherwise had, had they just paid for professional representation from the onset. If you do decide to attempt to sell your home yourself, also keep in mind that you will be responsible for the open houses, showings, and all aspects of facilitating access by yourself. Constantly running home to let buyers in for showings can quickly become a real drag. REALTORS use a secure lockbox system which lets them know exactly who has accessed their listings, and at what times of the day. Permits, Title Registrations, Disclosures, and other Legal Concerns When you buy a home, there are certain contracts and legal procedures you will have to deal with. Do you know where to obtain all of the appropriate title registrations? You are not only buying a building structure, but also assuming the majority of the registrations that are attached to that specific piece of land. Which ones are there indefinitely, and which ones will be discharged at closing? What exactly is a Caveat, an Encroachment, or an Easement? Are there any problems with where the property is located, or within the buildings which sit on the land? Is your home located on a utility right of way, or a sewer corridor, or in a flight path of an airport? Do the neighborhood controls allow...
read moreWhat to do when an appraisal comes in low.
BY WANDA KUBAT-NERDIN Real Estate Agent with PK Real Estate Utah, St. George, UT 84770 UT DRE# 6541633-SA00 What to do when an appraisal comes in low. New construction is on the rise and builders are raising prices of homes mainly because of consumer demand. While that can push home prices up, it can also create a false market that lacks sustainability. Appraisals are driven by solid data, not recent trends and short-term shifts in the market. If an appraisal comes in low, a rebuttal can be requested but new information must be brought in from other reliable sources. A low report does not mean that the appraiser did not do a thorough job, it could be that the most recent comparable’s have yet to catch up with the current market. There are options for home buyers: Cancel the contract Negotiate a lower sales price Both sides can meet in the middle Ask the lender for a second appraisal to be done Bring cash to closing to make up for deficit amount When the demand for homes is far greater than the supply, it creates a huge competition for buyers. Builders may be less inclined to negotiate in today’s market, especially if there are many offers on a home or a lot of potential buyer interest in their product. The value of a home is still based upon what someone is willing to pay and a savvy agent can offer help to weigh the options when an appraisal comes in low. This will allow the potential home buyer make an informed decision on which direction to take to reach the set goal of home ownership. Happy sales...
read moreStaging and Why It’s Important
Statistics Prove Staging Makes a Difference. A recent study showed that a staged home sells 78% faster and for up to 10% more compared to non-staged homes (Source: February 2010 Real Estate Staging Association). How much are you willing to come down in price because your home isn’t selling? Your investment in home staging will cost far less than your first price reduction, if you stage it before putting your home on the market. Staging can be as uncomplicated as a walk-through with a written list of suggestions or as extensive as de-cluttering, rearranging and redecorating. Each home is unique, so we will create a customized plan for you that promises dramatic results. A Vacant home will always show better when furnished. Empty spaces appear small and leave buyers wondering where their furniture will go. They also see every blemish in the home and often wonder if the seller is desperate and will take a low ball offer. Let us fix that problem for you. Staging the home with our extensive line of beautiful furnishings allows the buyer to “feel at home” as soon as they enter the front door, bringing up the value of your home. ...
read moreBuying or Selling a Home in 2015? Here’s What You Need to Know
REAL ESTATE HOME PRICES Buying or Selling a Home in 2015? Here’s What You Need to Know By Carla Fried After a boom, a bust, and a bounce, housing finally gets back to “normal.” Housing should be a drama-free zone in 2015. “After the boom, the bust, and the recovery bounce, we are transitioning to a calmer market driven by fundamentals,” says Jed Kolko, chief economist at Trulia. Even though the economy is growing and mortgage rates will remain low—the 30-year fixed isn’t likely to pass 5%—bubbly gains in housing are unlikely. Household income has barely budged since the housing market bottomed in late 2011, while home prices are already about 20% higher on average. Plus, with cautious lenders requiring hefty down payments and low debt/income ratios, it’s not as if buyers have the capacity to push prices sharply up. All that figured in, CoreLogic forecasts a 4.4% rise in the national median home price. “That’s healthy and sustainable,” says chief economist Mark Fleming. Here’s what to do if you’re thinking about buying or selling in 2015. Sellers, forget bidding wars. In most markets you still have leverage, but less than you did. In the summer of 2013 about 20% of homes were selling at a premium to original list; this fall, 11% are, the National Association of Realtors reported. The takeaway: “You have to price your house right,” says Redfin chief economist Nela Richardson. Review recent comps and list within 5% to allow for counteroffers. Buyers, save interest. While the 30-year fixed is not expected to hit 5% until later in the year, a winter move will likely nab the lowest rates. Meanwhile, the 15-year mortgage, now at 3.3%, should stay under 4% for most of 2015—and can be a good call if you’re looking to pay off the house before retirement. Owners, renovate. Especially if you have a low-rate mortgage, “it can be a lot cheaper to remodel to age in place than move,” says Kermit Baker, director of the Remodeling Futures Program at Harvard’s Joint Center for Housing Studies. Rates on home-equity loans and lines of credit are still “in shouting distance of record lows,” says Keith Gumbinger of mortgage data service HSH.com. While loans are pricier than HELOCs—possibly 6.5% vs. 5.5% by year’s end—the fixed-rate HEL can be a safer bet in a rising rate climate. ...
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