Don's Delaware Real Estate Tips

Benifits of pre-approvals

2010-04-08T04:38:00.000-07:00

Applying for a pre-approval from a lender is a quick and easy way for home buyers to increase appeal with sellers. A pre-approval is an agreement from a bank or mortgage company to provide a loan up to a certain amount for the purchase of a home.

While the lender commits to providing a loan, the buyer is under no obligation to use that company. If presented with a more attractive loan offer, the buyer can elect to use another lender without paying any penalty or fee.

Sellers prefer to work with buyers who are pre-approved because they know they are serious about purchasing a home and will not waste their time. An added benefit of being pre-approved is that it provides buyers with the peace of mind of knowing they are looking for a home they can afford and they are not spending beyond their means.

If you would like to learn more about the value of being pre-approved, I would be glad to provide you with additional information.

More Buyer Tips

2010-04-07T06:03:00.002-07:00

When it comes to buying a house, there are countless factors and items that can make the difference between finding the home of your dreams or simply a place to live. If you decide to search for a new home, be sure to consider these helpful tips.

1. Evaluate the home’s floor plan, yard size and shape and determine if there is enough living space, storage and bathrooms.

2. If commuting time is important to you, take a “test drive” – get up extra early or stay at a nearby hotel and drive to work from the home you’re considering.
3. Pay attention to the listing date of the home. Sellers tend to be more flexible the longer a house is on the market.

4. When you find a home you like, be sure to ask the owner about their average monthly utility payments and any other regular expenses.

5. Be sure to review the seller disclosure statement to see if the house has ever had water in the basement and to confirm the age of the furnace, central air conditioning system and roof.

6. Take the time to measure all rooms for your furniture. Don’t try to “eyeball” it based on the current owner’s furniture and placement.

To learn more about how I can assist you in your home buying needs, please feel free to contact me.

2010-04-07T06:03:00.001-07:00

When it comes to buying a house, there are countless factors and items that can make the difference between finding the home of your dreams or simply a place to live. If you decide to search for a new home, be sure to consider these helpful tips.
• Evaluate the home’s floor plan, yard size and shape and determine if there is enough living space, storage and bathrooms
• If commuting time is important to you, take a “test drive” – get up extra early or stay at a nearby hotel and drive to work from the home you’re considering.
• Pay attention to the listing date of the home. Sellers tend to be more flexible the longer a house is on the market.
• When you find a home you like, be sure to ask the owner about their average monthly utility payments and any other regular expenses.
• Be sure to review the seller disclosure statement to see if the house has ever had water in the basement and to confirm the age of the furnace, central air conditioning system and roof.
• Take the time to measure all rooms for your furniture. Don’t try to “eyeball” it based on the current owner’s furniture and placement
To learn more about how I can assist you in your home buying needs, please feel free to contact me.

Do you need help with your mortgage?

2010-03-02T06:06:00.000-08:00

If you're one of the many thousands who are struggling to keep up with your mortgage payments these days due to loss of income, variable loan rate resets, there is help available from the Government without cost.

For example, http://makinghomeaffordable.gov/ gives much assistance and alerts you to numerous scams out there that make fantastic promises with little or no real solutions. It gives advice on how to handle most income related problems and helps you understand the various ways to improve your situation with minimal effect on your credit score, etc.

they offer help in finding low/no cost counseling in your local area. It's a site that war rents your attention

Tips to attract buyers to your home for sale

2010-01-29T09:25:00.000-08:00

1. Improve first impressions. Touch up the paint on the front door and other areas that buyers see first.

2. Clean up the landscaping. Trim the hedges and trees and plant some annuals in the flowerbeds.

3. Paint the interior. A coat of light yellow or cream with contrasting white woodwork looks fresh and clean.

4. Refurbish the floors. Buff the hardwoods. Install new carpets – or at least get them professionally cleaned.

5. Take care of the big problems. If the house needs a roof or the front stoop is crumbling, get them fixed.

6. Buy warranties. Putting appliances under warranty gives home buyers a secure feeling.

7. Improve energy efficiency. New windows or improved insulation tells a potential buyer the seller is on top of things plus they come with tax benefits.

8. Replace light fixtures. Updated fixtures, especially at the entrance way and in the foyer, create a good first impression.

9. Buy a stove. Home owners whose kitchen aren't top of the line can jazz it up for a few hundred dollars by buying a new stove, which gives the room a fresh feel.

10. Tidy up the bathrooms. Get rid of mildew, replace caulking, and replace stained sinks.

Source: U.S. News & World Report, Luke Mullins (01/21/2010)

Don't forget that home warranty

2010-01-25T12:06:00.000-08:00

When buying a home, particularly an older house, buyers are often understandably concerned about the potential need for expensive home repairs in the future. Home warranty programs, such as the ERA® Home Protection Plan®, are available to buyers and sellers to help alleviate this concern.

Home warranty programs can offer protection for the seller during the listing period until settlement. Payment by the seller occurs at settlement, so if the house doesn't sell, there is no cost for the listing period.

Upon settlement coverage transfers to the buyer and includes most major repair or replace expenses within a home for up to a year or more after closing.

With this added sense of security, it is easy to see why houses covered by home warranty programs on average sell faster than comparable homes without any such protection.

If you are interested in learning more about Home Warranties I would be glad to provide you with additional information.

Is Buying still the answer for families?

2010-01-17T11:22:00.000-08:00

Those who have never owned a home before may ask about the benefits of owning versus renting. Does it still make sense to buy, or is it better to rent until better times?

While paying mortgage payments and property taxes may seem like an expensive and stressful proposition over the near worry-free lifestyle of renting, these expenses actually provide great financial benefit for homeowners.

When you rent, every dollar you pay is retained by the landlord and of course you get no tax breaks. However, when you purchase a home, a portion of each monthly mortgage payment is used to pay down the principal amount of the loan, and in return increases your equity in the property.

In addition, you can offset much of the cost of property taxes and mortgage interest through allowable tax deductions. Finally, by owning a home you may also increase your equity as the property appreciates in value.

For specific information on the financial and tax benefits of buying compared to renting, contact your local financial or tax consultant.

Don't miss the opportunity of a generation; if you are able to buy now, prices and interest rates continue at historic lows.

Why Home Inspections?

2010-01-11T08:14:00.000-08:00

While most home buyers look at a home very thoroughly, they are still likely to miss certain items in need of repair or attention. To ensure you get your money's worth and don't inherit a major repair project, it is recommended that you hire a professional home inspector when buying a new house.

Today, most real estate contracts include a clause that makes your purchase contingent on the findings of a home inspection. The home inspector will look for structural problems, check a home's plumbing, heating and cooling and electrical systems and note any other items in need of repair.

You can also have the home inspected for pest and termite infestation and radon contamination. Based on the feedback of these inspections, you can then negotiate the repair of these items, or a comparable credit, with the seller.

When you decide to buy a home, I can provide you with the names of certified and qualified home inspectors in the area.

Did you know the FDIC sells real estate?

2009-11-18T04:40:00.000-08:00

WASHINGTON — Federal Deposit Insurance Corp. real-estate sales this year are the highest since 1994 as the regulator takes over properties held by failed lenders.

The FDIC raised $727 million from building and land sales in the first nine months of 2009 compared with $1.16 billion in all of 1994, according to FDIC data. The agency sold 1,706 properties, according to its website, the highest number since 2,045 in 1996.

The failure of 148 lenders since 2007 is giving homebuyers and real-estate investors the chance to purchase office buildings, undeveloped land for houses and even gas stations from the FDIC. The agency may also have hundreds of millions of dollars in loans for sale from shuttered banks.

"It seems that they're a little understaffed and they're very busy trying to fold a bank a weekend or five banks a weekend," Barry Sternlicht, chairman and chief executive of Starwood Property Trust, said on a conference call Monday.

The FDIC real-estate sales are helping companies including CB Richard Ellis Group and closely held Prescient, which are brokering transactions, and J.P. King Auction, which has held FDIC auctions in Detroit and Atlanta.

See full story....http://bit.ly/ogCVs

Is your cell phone picking your pocket?

2009-11-05T04:37:00.000-08:00

Today, all of us depend heavily on our mobile phones for business and personal use. While that's normal, if you're not careful your plan might be taking a toll on your wallet every month without you noticing especially, since most of us pay by credit card, it becomes even more hidden. Here are two simple tips that might help you save on your bill.

Texters- New word! Depending on your plan for texting you could be under utilizing and paying for a lot of message allotments that you don't use, or getting socked with over-message charges which can add up. Evaluate your actual texting needs and adjust your plan to closely follow it. Unlimited plans are certainly appropriate for some, but if you text very little you could be wasting a lot of money for "just in case". Also, if you subscribe to unnecessary auto text feeds (news, weather, etc.) or other low quality spam or related messages, you could be adding to your total count greatly, since receive messages count the same.

Contract options- If you change phones outside the contract term it could cost you greatly. It really pays to select the contract term to ensure you're able to keep the phone for the entire term. Finally, select your phone carefully, to get one that fits your needs now and maybe up to 2 years, without having to live out the that term with dinosaur features.

When will we see 2007 prices and sales volume?

2009-10-28T12:24:00.000-07:00

Many experts say a return to 2007 prices isn't likely in the foreseeable future. Given the unique and artificial conditions that fueled the well beyond inflationary two year run-up, repeating that level is not likely.

Since many under-qualified buyers were placed in risky mortgages (due in part to the poor performance of the stock market for investors), a bad situation of unsustainable growth occurred that had to result in disaster for many caught in the down slide when prices corrected.

After all the pain, we now have numerous lending controls in place to limit loose risky mortgages and home purchases to only truly qualified buyers, Therefore any repeat of wholesale flipping and associated price spirals is very unlikely to return.

On the bright side, many economists believe that a return to a normal 4-5% per year appreciation may be not far off.

Historically properties have on average risen around 4% since WWII. This alone would suggest that when the current correction is complete we will once again be able to plan our real estate portfolios with some degree of confidence.

Home sales up 11% in 2010 good and bad

2009-10-16T13:41:00.000-07:00

Sales of existing homes will rise 11 percent in 2010, and sales of new homes will climb 21 percent over this year, Mortgage Bankers Association Chief Economist Jay Brinkmann predicted in a speech Tuesday at the organization’s annual meeting.

"We still see a concentration in the lower end of the market," Brinkmann said. "The entry level homes are in demand."

Brinkmann also predicted further declines in existing home prices, with the median falling to $164,200 in the first quarter of 2010.

David Stevens, commissioner of the Federal Housing Administration, concurred, adding that mortgage rates will rise to 5.6 percent by the end of 2010, though not enough of an increase to discourage a 12 percent increase in mortgage applications next year.

Source: Associated Press, Alex Veiga (10/13/2009)

2010 looks better

2009-10-15T08:54:00.000-07:00

Economic forecasters predict that 2010 will be the first year since 2005 for housing to contribute to the growth of the U.S. economy, according to a survey released by the National Association for Business Economics.

Home prices are expected to rise 2 percent next year, but forecasters don’t believe the increase in prices will discourage homebuyers.

More than 80 percent of economists surveyed by the NABE think the recession is over and recovery has begun, but they expect the expansion to be slow because unemployment persists.

Source: Associated Press, Mae Anderson (10/12/2009)

FHA, helping with housing recovery

2009-10-08T05:05:00.000-07:00

FHA Commissioner David Stevens defends the agency's role in the housing recovery, noting that the it continues to hold more than $30 billion in reserve funds and is insuring more lower-risk borrowers.

In a letter to the editor, in response to the Sept. 29 editorial "Subprime Uncle Sam," Stevens calls the piece's comparison of FHA to the subprime market "misleading" because the FHA's serious delinquencies are a third of those in the subprime market.

He adds that declining home prices will not trigger a loss of $100 billion for taxpayers because the FHA did little business in states like Arizona, California, Florida, and Nevada; nor will it lead to congressional action.

Source: Wall Street Journal, David Stevens (10/07/09)

Home prices show increase again

2009-09-24T06:59:00.000-07:00

U.S. home prices rose 0.3 percent in July compared to June, the Federal Housing Finance Agency said Tuesday.

The index is 4.2 percent below what it was in 2008 and 10.5 percent off its peak in April 2007. The index excludes most expensive homes from its calculations, so prices appear to have declined less than they have by other measures.

The report "supports other evidence that the three-year long decline in prices has come to halt," Paul Dales, U.S. economist with Capital Economics, wrote in a note to clients.

Other economists were less positive. "We think house price indexes are likely to edge somewhat lower in the fall when foreclosures become a larger share of home sales," Barclays Capital economist Nicholas Tenev wrote in a note to his clients.

Source: The Associated Press, Alan Zibel (09/22/2009)

Be Alert in Parking Lots

2009-09-18T08:15:00.000-07:00

Realtors and avid shoppers like my wife spend a lot of time getting in and out of the car at office and/or mall parking lots.

While this is usually perfectly safe, it can also be dangerous. By staying aware of risks associated with approaching and opening your car, you may avoid dangers before they occur. Here are six steps you can take:

1. Don’t approach your vehicle if a van or other large vehicle with tinted windows is parked next to it. Instead find a security guard to walk you to your car, or look for a nearby couple walking to their car and say something like, “That vehicle wasn’t there when I parked. Would you mind making sure I get into my car safely?”

2. Have your key ready to open the car door. Never stand next to your car searching through your purse. Robbers, carjackers, and sexual predators all watch for this type of distraction.

3. Once in your car, lock the doors immediately.

4. Get moving. Don’t sit inside of your vehicle adjusting the stereo, rummaging through shopping bags or your purse, or talking on your phone, especially if the lot is not well populated.

5. If you have an unlocking button or keyless entry system, make sure you unlock only the driver door. Unlocking all doors allows a predator to simply slide into your car from the passenger side.

6. Make sure that your dome light is always functioning properly. As you unlock your vehicle at night, glance into the back seat and make sure that an attacker has not gained access to your car.

Source: Road and Travel magazine (adapted)

Foreclosure-Prevention Scams...Beware

2009-09-18T05:33:00.000-07:00

Here’s how the most common foreclosure-prevention scams work:

The desperate home owner gets a letter that says something like, “We know you’re having a hard time. We have a pipeline to your lender and can help you save your home. Call this toll-free number now.”

Home owners call the number and agree to pay $1,200 to $1,500 upfront for help with their mortgage. Nothing happens. Their home still goes into foreclosure.

Harold Kirtz, a lawyer for the Federal Trade Commission who is prosecuting these scammers, says victims are often well educated and financially savvy, but they also are “in a very vulnerable state.”

Here are some red flags that should make a home owner run in the opposite direction:

If the company guarantees success. Nobody can guarantee a lender won’t foreclose or will modify a loan.
If the company wants money upfront. "We can't say all advance fees are illegal," Kirtz says, “But in most cases they're probably bogus."
If the company wants the home owner to send mortgage checks directly to the modification firm. The only certainty there is that the company will cash the checks.

Source: Washington Post Writers Group, Kenneth R. Harney (09/13/2009)

Solar Panel Prices Drop Dramatically

2009-09-11T11:15:00.000-07:00

Prices for solar panels are falling fast. Compared to a year ago, prices for panels and installed systems are about 25 percent less, retailers and installers say.

Combined with a 30 percent rebate offered by the U.S. government, plus rebates offered by many states, some buyers are paying a little less than $16,000 for systems that would have cost twice that a year ago.

"Solar is now affordable for people for whom it wasn't before," says Jeff Wolfe, CEO of groSolar, a Vermont solar-panel system installer and distributor.

California entrepreneurs, who call themselves One Block Off the Grid, are getting even better prices by organizing home owners into buying groups.

Source: The Wall Street Journal, Cassandra Sweet (09/08/2009)

New Home Sales Surge 9.6% in July

2009-08-27T08:30:00.000-07:00

New U.S. home sales surged 9.6 percent in July, rising for the fourth straight month
and beating expectations as the housing market shows continuing signs of rebounding from its historic downturn.

The Commerce Department said Wednesday that sales rose to a seasonally adjusted annual rate of 433,000 from an upwardly revised June rate of 395,000. Sales are now up 32 percent from the bottom in January, but off 69 percent from the frenzied peak four years ago.

Last month's sales pace was the strongest since September and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 390,000 units. The last time sales rose so dramatically was in February 2005.

The median sales price of $210,100, however, was still down 11.5 percent from $237,300 compared to the same time a year ago. There were 271,000 new homes for sale at the end of July, down more than 3 percent from May. At the current sales pace, that represents 7.5 months of supply, the lowest since April 2007. The decline means builders have scaled back on construction to the point where supply and demand are coming into balance.

Source: Associated Press, Alan Zibel (08/26/09)

2009-08-25T07:03:00.001-07:00

Beware of the "Get rich quick in real estate" schemes

Although there are many legimate ways to invest in real estate and profit, most involve long term commitment and lots of homework. Additionally, planning and some resources are necessary to realize equity gain and profit from Real Estate.

Real estate seminar speakers mostly prey on the innocent, the desperate, and the naive. You've likely seen their ads splashed on late night TV. They proclaim that the mystery tell-all free tour is coming to your town, for one day only, and one phone call can secure your reservation, but hurry because seats are limited! In reality most are really trying to sell you their books, CD's, tapes, etc.

Do those Money-Making Schemes Actually Work?
Yes, some are feasible; but can you tell the difference? Probably not. Can you do it? It's unlikely. The techniques are not geared toward the average investor regardless of the promises and hype.

Home prices increased in May

2009-07-17T09:37:00.000-07:00

Nationwide, detached, single-family home prices gained 1.6 percent in May, according to Integrated Asset Services, a specialist in default management and residential collateral valuations.

The index had previously declined more than 19 percent from its peak in June 2007. Compared to April, the Northeast was up 3.2 percent, the Midwest 1.9 percent, the South 1.1 percent, and the West 0.9 percent. In all areas but the South, prices also rose in April. “Two month's worth of positive data hardly signals a turn in the national housing market," says Dave McCarthy,

President and CEO of Integrated Asset Services. “But we have to be encouraged by what we’re seeing in several important counties and neighborhoods. ”Hardest-Hit CountiesIAS also tracks monthly changes in median sale prices in 15,000 struggling communities.

It identifies the following counties where prices have fallen furthest since the 2006 peak:
Fresno, Calif. -28.1 percent
Imperial Calif. -45.2 percent
Kern, Calif. -33.8 percent
Monterey, Calif. -37.9 percent
San Bernardino, Calif. -29.1 percent
San Joaquin, Calif. -42.8 percent
Charlotte, Fla. -37.6 percent
Hernando, Fla. -38.7 percent
Lee, Fla. -45.2 percent
Pasco, Fla. -50 percent

Source: Integrated Asset Services

Home sales continue showing progress

2009-07-16T06:12:00.000-07:00

Pending (under contract) home sales show a sustained uptrend, rising for 4 consecutive months with very favorable housing affordability and a first-time buyer tax credit boosting activity, according to the latest survey.

The Pending Home Sales Index increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April, and is 6.7 percent higher than May 2008 when it was 85.0. The last time there were four consecutive monthly gains was in October 2004.

Lawrence Yun, NAR chief economist, cautions that there could be delays in the number of contracts that go to closing. “Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions,” he said.

“Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards. Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.”

Now is the time

2009-03-29T06:34:00.000-07:00

A recent survey of households (78 percent) of potential first-time home buyers say now is a good time to buy a home, despite widespread concern about the economy. Out of the 1,000 prospective U.S. first-time home buyers surveyed in early March, 68 percent think now is a better time to buy than six months ago.

Prices are the driving motivation for potential first-time home buyers with more than 85 percent saying they consider current home prices affordable and 73 percent citing that taking advantage of current prices is a major factor in their decision to buy.

Current pricing, rates and incentives, such as the First Time Homebuyer Tax Credit, provide tremendous opportunities for first-time home buyers to get into the market.

When asked to rate the features that they look for when choosing a home, price is the primary consideration with 87 percent saying this feature is “very important,” followed closely by neighborhood safety (80 percent) and the condition of the home (71 percent).

Having enough money for a down payment is a top concern of potential first-time home buyers as nearly half (46 percent) said they are “very worried” about the issue. Most respondents (86 percent) are in the market for single family homes.

Housing Inventories Fall in January

2009-02-12T04:32:00.000-08:00

Housing Inventories Fall in 29 Major Markets The inventory of existing homes for sale in 29 major markets covered by ZipRealty declined an average of 2.5 percent in January 2009, compared to December 2008 and down 13 percent compared to January 2008.

This is a good sign, especially when considering that typically inventories rise in January after the holidays. In the last 25 years, the average increase in inventory in January has been 8.7 percent, according to Ivy Zelman, CEO of research firm Zelman & Associates.

Housing-market analysis Altos Research reached similar conclusions, saying that the listings in its 10-city composite index declined 3.3 percent in January compared to December 2008.

Source: The Wall Street Journal, James Hagerty (02/10/2009)

Look at those rates--are you ready to buy?

2009-01-19T13:38:00.000-08:00

Interest Rates under 5%-- The benchmark 30-year mortgage fell below 5% for the first time ever in Freddie Mac's weekly rate survey as economic weakness continued to push interest rates lower, the mortgage agency said Thursday.

The national average rate on the 30-year loan fell to 4.96% in the week ending Jan. 15, down from 5.01% a week ago. That is the lowest on record. Freddie Mac began its rate survey in 1971. A year ago the loan averaged 5.69%.

Interest rates for 30-year fixed rate mortgages fell for the 11th straight week to another record low, due in part to the slowing economy and government actions," said Frank Nothaft, Freddie Mac chief economist.

"Both the U.S. Treasury Department and the Federal Reserve have added over $ 100 billion in liquidity to the mortgage market since September 2008, which put downward pressure on interest rates for fixed-rate mortgages. The Federal Reserve may add up to an additional $570 billion more this year, based on its November 25, 2008 announcement, to further shore up mortgage lending and keep rates low."