When searching for a new home, don't forget one of the most important considerations: location, location, and location.
Because the neighborhood/community in which you live affects your life in many ways--including your children's education, travel time to and from conveniences and work, the level of comfort you feel with your surroundings, the future value of your home investment and many other factors--we suggest that you focus on a neighborhood/community before you search for a specific home.
Working through your Realtor, explore the personalities of the neighborhoods/communities in your price range, before narrowing your search down to individual homes. Take the time to research the schools, driving times, available conveniences, the social and professional make-up, value trends, etc. Be sure you choose to view homes only in neighborhoods that fit your personality and life style. This will ensure a happy end result!
Monday, January 7, 2008
Home Inspection Thoughts
When buying a new home, please don't just accept the seller's word that the residence is in good condition and that it is free of problems. It is very possible defects exist that are less than obvious to an untrained eye and of which the seller is unaware. It is in the buyer's best interest to, at the buyer's expense, hire a professional home inspector.
In most locations, the seller is required to provide for the buyer a Disclosure Form that details the property's features. This form also notifies the purchaser of any defects in the home of which the seller has knowledge. The buyer should take the time to read this completed disclosure form carefully. If there are flaws indicated that he/she finds unacceptable, the seller should be asked to correct the problems. If the seller refuses to fulfill the buyer's request, the buyer should be under no further obligation to complete the transaction.
To discover hidden or less obvious defects, a buyer can hire a professional home inspector to scrutinize the property. These professionals are trained to examine a house in detail and to find any problems that may affect a home's value. To find a quality home inspector, simply ask your Realtor for a list of recommendations.
As a value added benefit for listing and selling your home with The Davidson Team, you will receive a FREE home inspection as a part of our services. Additionally, we also provide tips on how to gain the most out of the inspections.
In most locations, the seller is required to provide for the buyer a Disclosure Form that details the property's features. This form also notifies the purchaser of any defects in the home of which the seller has knowledge. The buyer should take the time to read this completed disclosure form carefully. If there are flaws indicated that he/she finds unacceptable, the seller should be asked to correct the problems. If the seller refuses to fulfill the buyer's request, the buyer should be under no further obligation to complete the transaction.
To discover hidden or less obvious defects, a buyer can hire a professional home inspector to scrutinize the property. These professionals are trained to examine a house in detail and to find any problems that may affect a home's value. To find a quality home inspector, simply ask your Realtor for a list of recommendations.
As a value added benefit for listing and selling your home with The Davidson Team, you will receive a FREE home inspection as a part of our services. Additionally, we also provide tips on how to gain the most out of the inspections.
The Importance of the Internet When Selling A Home
There is a direct correlation between the number of "lookers" a For Sale home attracts and its final selling price. More potential buyers viewing a home result in a larger net proceeds check for the seller.
If you are thinking of selling a home, to maximize your profits, list it with a real estate agent that has the ability to attract a large number of buyers. How do you know if an agent is a "buyer magnet?" One factor is the agent's sphere of influence; do they have a large database of past clients and prospective clients that they regularily stay in contact with? Another is an agent's marketing strategy. And there are many more...BUT in today's real estate world, the Internet plays a very pivotol role...and unfortunatley there are agents that currently are not utilizing this amazing tool for the benefit of their clients.
In the most recent studies from the National Association of Realtors, over 80% of all potential buyers begin their home search on the Internet. Websites, pay per click marketing, search engine optimization, blogs (to name a few) are quickly becoming the most powerful tools and channels an agent has for finding buyers.
When interviewing a listing agent, ask him/her to show you examples of his/her websites. Is the website well placed in the major search engines, is the site attractive in its presentation, is it easy for the customer to use, does it offer enough information to hold the customers interest and does it gather sufficient consumer information to allow the agent to follow-up?
Additionally, ask the agent to view a copy of their Marketing Plan (http://www.wenatcheehouses.com/marketing_plan.php). A Realtor may be using the Internet, but are they doing it in a effective and holistic manner, complimenting all marketing channels, branding strategies...and ultimately working in the best interest of the home seller?!?!Find an agent who does these things and you are one step closer to maximizing your net profits!
Have an outstanding week!
If you are thinking of selling a home, to maximize your profits, list it with a real estate agent that has the ability to attract a large number of buyers. How do you know if an agent is a "buyer magnet?" One factor is the agent's sphere of influence; do they have a large database of past clients and prospective clients that they regularily stay in contact with? Another is an agent's marketing strategy. And there are many more...BUT in today's real estate world, the Internet plays a very pivotol role...and unfortunatley there are agents that currently are not utilizing this amazing tool for the benefit of their clients.
In the most recent studies from the National Association of Realtors, over 80% of all potential buyers begin their home search on the Internet. Websites, pay per click marketing, search engine optimization, blogs (to name a few) are quickly becoming the most powerful tools and channels an agent has for finding buyers.
When interviewing a listing agent, ask him/her to show you examples of his/her websites. Is the website well placed in the major search engines, is the site attractive in its presentation, is it easy for the customer to use, does it offer enough information to hold the customers interest and does it gather sufficient consumer information to allow the agent to follow-up?
Additionally, ask the agent to view a copy of their Marketing Plan (http://www.wenatcheehouses.com/marketing_plan.php). A Realtor may be using the Internet, but are they doing it in a effective and holistic manner, complimenting all marketing channels, branding strategies...and ultimately working in the best interest of the home seller?!?!Find an agent who does these things and you are one step closer to maximizing your net profits!
Have an outstanding week!
OVERBUILDING IN A NEIGHBORHOOD
The old adage, "The three most important things to consider when buying a home are location, location and location" will always hold true. The value of an individual piece of property or home is usually dictated by its location. However, the surrounding area and neighboring homes play a major role in determining the value of an individual property as well.
If you are considering enlarging the size of an existing home, doing an expensive remodel or making costly improvements, please exercise care. When the time comes to sell, you may not be able to recapture your investment. If you overbuild or over improve for a neighborhood, with all of the surrounding homes having a lesser value, the value of your improvements will be reduced. The worst investment a homeowner can make is to have the best home in a neighborhood. The best home increases the value of neighboring properties. However, the surrounding, less valuable homes pull down the value of the over improved home. In essence, you are doing wonderful things for the neighbors but they are not returning the favor.
When considering improving or remodeling an in existing home, be sure the evaluate the entire situation and be sure your investment will be a good. Also, rather than investing in your current home, consider selling it and buying the home you desire in a neighborhood that justifies a larger, more prestigious residence.
If you are considering enlarging the size of an existing home, doing an expensive remodel or making costly improvements, please exercise care. When the time comes to sell, you may not be able to recapture your investment. If you overbuild or over improve for a neighborhood, with all of the surrounding homes having a lesser value, the value of your improvements will be reduced. The worst investment a homeowner can make is to have the best home in a neighborhood. The best home increases the value of neighboring properties. However, the surrounding, less valuable homes pull down the value of the over improved home. In essence, you are doing wonderful things for the neighbors but they are not returning the favor.
When considering improving or remodeling an in existing home, be sure the evaluate the entire situation and be sure your investment will be a good. Also, rather than investing in your current home, consider selling it and buying the home you desire in a neighborhood that justifies a larger, more prestigious residence.
Thursday, January 3, 2008
Tips for Getting Pre-approved for a Mortgage
In a competitive market, getting mortgage pre-approval is essential. It gives you a great bargaining tool when you're negotiating with sellers. Regardless of the market situation, pre-approval is also handy because it means that before you even start house-hunting, you've got a good idea of what you can afford.
Pre-approval versus Pre-qualification
Pre-qualification and pre-approval are similar processes. Having pre-qualification means that you have a general idea of how much mortgage you can afford, but it's not guaranteed that you will get that amount when you apply for the mortgage. Pre-approval takes the process a step further than pre-qualification, because the lender will verify your employment, income, assets, debts, and credit history, and you will receive a letter stating that your mortgage is approved for a certain amount of money, usually with a limit of between 30 and 90 days. That means you know exactly how much you have to spend, and sellers know that you're a serious customer.
Pre-approval has another advantage in that it saves you time when it comes to closing on a property - you've already been through about 90% of the mortgage application process. If you have pre-approval it means that all you need to finalize the mortgage is a purchase contract and a property appraisal. Being able to close quickly is an advantage in a competitive market, and in a slow one it may help you negotiate a great deal on a property.
Note that if you are pre-approved for a mortgage, you must notify your lender immediately if your financial circumstances change between pre-approval and closing, as your pre-approval may be invalidated.
Increase Your Chances of Pre-approval
Pay Your DebtsAny debt that you can't pay in full within six months will be included as part of your monthly debt total. And the higher your debt total, the lower the chances you have of getting pre-approved - if your monthly debt total exceeds about 36% of your gross monthly income, getting pre-approval may be difficult.
Don't Create New DebtYour pre-approval is subject to an evaluation of your finances. If you're thinking about buying a home then it's a wise move to refrain from making any large credit purchases. It's estimated that every $100 a month you pay on a credit card reduces your home loan eligibility by $10,000.
PreparationWhen you're preparing to apply for a mortgage pre-approval, there is a wide variety of supporting documentation you'll need to locate and have ready for the application process. This includes tax returns, pay stubs, evidence of any other income, bank statements, and debt payment booklets or account statements.
What to Do If You Have Bad Credit
When assessing your credit, mortgage lenders typically pad most attention to your FICO score. Some lenders won't even consider offering a mortgage to anyone with a FICO score of less than 680. So what do you do if your credit isn't that good?
* Check your credit reports - obtain a copy of your FICO score and credit reports and check to make sure there are no errors.
* If you can manage a larger down-payment, it may help your chances of getting pre-approved.
* Sub-prime mortgage lenders offer mortgages for people with credit problems. They usually involve paying a higher interest rate, however it's possible to get a sub-prime mortgage and then refinance to a conventional loan with a lower interest rate after a couple of years of rebuilding credit.
Pre-approval versus Pre-qualification
Pre-qualification and pre-approval are similar processes. Having pre-qualification means that you have a general idea of how much mortgage you can afford, but it's not guaranteed that you will get that amount when you apply for the mortgage. Pre-approval takes the process a step further than pre-qualification, because the lender will verify your employment, income, assets, debts, and credit history, and you will receive a letter stating that your mortgage is approved for a certain amount of money, usually with a limit of between 30 and 90 days. That means you know exactly how much you have to spend, and sellers know that you're a serious customer.
Pre-approval has another advantage in that it saves you time when it comes to closing on a property - you've already been through about 90% of the mortgage application process. If you have pre-approval it means that all you need to finalize the mortgage is a purchase contract and a property appraisal. Being able to close quickly is an advantage in a competitive market, and in a slow one it may help you negotiate a great deal on a property.
Note that if you are pre-approved for a mortgage, you must notify your lender immediately if your financial circumstances change between pre-approval and closing, as your pre-approval may be invalidated.
Increase Your Chances of Pre-approval
Pay Your DebtsAny debt that you can't pay in full within six months will be included as part of your monthly debt total. And the higher your debt total, the lower the chances you have of getting pre-approved - if your monthly debt total exceeds about 36% of your gross monthly income, getting pre-approval may be difficult.
Don't Create New DebtYour pre-approval is subject to an evaluation of your finances. If you're thinking about buying a home then it's a wise move to refrain from making any large credit purchases. It's estimated that every $100 a month you pay on a credit card reduces your home loan eligibility by $10,000.
PreparationWhen you're preparing to apply for a mortgage pre-approval, there is a wide variety of supporting documentation you'll need to locate and have ready for the application process. This includes tax returns, pay stubs, evidence of any other income, bank statements, and debt payment booklets or account statements.
What to Do If You Have Bad Credit
When assessing your credit, mortgage lenders typically pad most attention to your FICO score. Some lenders won't even consider offering a mortgage to anyone with a FICO score of less than 680. So what do you do if your credit isn't that good?
* Check your credit reports - obtain a copy of your FICO score and credit reports and check to make sure there are no errors.
* If you can manage a larger down-payment, it may help your chances of getting pre-approved.
* Sub-prime mortgage lenders offer mortgages for people with credit problems. They usually involve paying a higher interest rate, however it's possible to get a sub-prime mortgage and then refinance to a conventional loan with a lower interest rate after a couple of years of rebuilding credit.
GOOD TIME OR BAD TIME?
With all the "good news" and "bad news" that we see on in the media about today's economy, it is hard for the homeowner to decide if now is the time to buy and/or sell real estate. We are often asked, by homeowners who want to move up or move down to a different home, if now is the right time to sell and purchase.
The fact is, regardless of market conditions, if you want to purchase a "move-up" or "move-down" home, there is no wrong time to do so. If the market is extremely active, you will get a premium price for the home you are selling and the active market will demand that you also pay a premium price for the home you purchase. If the market is very slow, you will have to accept a reasonable price for your home but you will find less competition when purchasing your new home. You sell at a reduced price but you also purchase at a reduced price.
When selling a home to buy another, there is no bad timing. In a good market you sell and buy with inflated dollars. In a slow market you sell and buy with deflated dollars. You really don't gain or lose in either situation.
Now is a great time to buy and sell real estate.
The fact is, regardless of market conditions, if you want to purchase a "move-up" or "move-down" home, there is no wrong time to do so. If the market is extremely active, you will get a premium price for the home you are selling and the active market will demand that you also pay a premium price for the home you purchase. If the market is very slow, you will have to accept a reasonable price for your home but you will find less competition when purchasing your new home. You sell at a reduced price but you also purchase at a reduced price.
When selling a home to buy another, there is no bad timing. In a good market you sell and buy with inflated dollars. In a slow market you sell and buy with deflated dollars. You really don't gain or lose in either situation.
Now is a great time to buy and sell real estate.
Thought Provoking: 1/3/08
The great and glorious master-piece of man is how to live with a purpose. -Michel de Montaigne
Not long ago, a friend was in the final minutes of a flight into Chicago. Through the window, as the plane aligned with the runway, he saw thousands of commuters inching along, in bumper-to-bumper traffic. Each driver's goal was to just escape the city and return home from a hard day's work. No one, in that snarled mess of cars, could have been enjoying life at that moment in time.
It often amazes me the obstacles people are willing to overcome to accomplish a task. Why would anyone subject themselves to a lifestyle that requires so many hassles to get to and from work. The obvious answer is that they need their job to earn a living. I think the true motivation goes a lot deeper.
As a child, I used to spend hours watching ants working around an anthill. Each ant worked at its task with very definite purpose. If I put an obstacle into an ant's path, to disrupt its work, it would go into a complete frenzy until the obstacle had been removed. What is it about an ant that makes the completion of a task so important? What is it that drives nearly all living things to be task oriented? Why are most human activities, even our sports, based on the successful completion of a task? Could it be that life comes with an inborn need to have purpose, to have a reason to exist?
I believe the answer to this question is a definite "yes." The happiest people I know are the ones who have taken a task, worked hard to accomplish whatever it is the task required and then stood back to admire and appreciate the end result of their effort. There is a direct correlation between having purpose and being happy.
When we start our day tomorrow, what will our purpose be? Will we end the day having done nearly nothing and living with the resulting frenzy of negative emotions? Or, will we end the day feeling great because of all the things we've accomplished?
We are in control of our lives! We have the power to choose between being happy and just being. We can matter or just be matter. If we are uncomfortable with who we are, we have the power to change. By finding a purpose, finding a task and doing it well, we will experience happiness as we have never experienced it before. We are made to establish goals and to persist until they are reached. That is how we find out who we are. That is how we build a life.
We have a choice...we can't buy happiness but we do have the power to create it. If we find something we want to do and do it well, we will have improved self-esteem, self-acceptance, and happiness.
Not long ago, a friend was in the final minutes of a flight into Chicago. Through the window, as the plane aligned with the runway, he saw thousands of commuters inching along, in bumper-to-bumper traffic. Each driver's goal was to just escape the city and return home from a hard day's work. No one, in that snarled mess of cars, could have been enjoying life at that moment in time.
It often amazes me the obstacles people are willing to overcome to accomplish a task. Why would anyone subject themselves to a lifestyle that requires so many hassles to get to and from work. The obvious answer is that they need their job to earn a living. I think the true motivation goes a lot deeper.
As a child, I used to spend hours watching ants working around an anthill. Each ant worked at its task with very definite purpose. If I put an obstacle into an ant's path, to disrupt its work, it would go into a complete frenzy until the obstacle had been removed. What is it about an ant that makes the completion of a task so important? What is it that drives nearly all living things to be task oriented? Why are most human activities, even our sports, based on the successful completion of a task? Could it be that life comes with an inborn need to have purpose, to have a reason to exist?
I believe the answer to this question is a definite "yes." The happiest people I know are the ones who have taken a task, worked hard to accomplish whatever it is the task required and then stood back to admire and appreciate the end result of their effort. There is a direct correlation between having purpose and being happy.
When we start our day tomorrow, what will our purpose be? Will we end the day having done nearly nothing and living with the resulting frenzy of negative emotions? Or, will we end the day feeling great because of all the things we've accomplished?
We are in control of our lives! We have the power to choose between being happy and just being. We can matter or just be matter. If we are uncomfortable with who we are, we have the power to change. By finding a purpose, finding a task and doing it well, we will experience happiness as we have never experienced it before. We are made to establish goals and to persist until they are reached. That is how we find out who we are. That is how we build a life.
We have a choice...we can't buy happiness but we do have the power to create it. If we find something we want to do and do it well, we will have improved self-esteem, self-acceptance, and happiness.
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