Slow Down!

Slow Down: 1 Ticket, Car Insurance Jumps
Car insurance premiums rose on average 18 percent in 2010 if you had one moving violation on your record, according to a new report by insurance.com of 397,000 insurance quotes it generated last year.  Two moving violations on your record? Your average rate increases 34 percent compared to drivers with no violations. And at three violations, annual premiums jump to 53 percent higher.

For drivers with no violations, the average annual car insurance premium was $1,119 in 2010. Drivers with one violation paid on average $1,318; two-violation drivers paid $1,497; and three-violation drivers paid $1,713, according to insurance.com.

What you drive also may be influencing how you drive, according to a previous company study from December 2010. The study revealed the vehicles that tend to get the most moving violations:

• Mercedes-Benz SL-Class convertible
• Toyota Camry Solara coupe
• Scion tC coupe
• Scion xB hatchback
• Mercedes-Benz CLS 63 AMG sedan
• Acura Integra coupe

“I guess I better get rid of my Mercedes Benz!”

Source: “Study: Car Insurance Premiums Jump 18% After One Ticket,” The Los Angeles Times (May 23, 2011) and “Vehicles With the Most and Least Violations,” Insurance.com (Dec. 1, 2010)

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Can you buy a home?

With the recent news that interest rates have dropped AGAIN, and that the housing affordability is high, this means that now is the PERFECT, and financially best, time to purchase a home.  While teaching a real estate class yesterday, most of the students participating didn’t think they could buy a home.  Yet when I asked them why, they just ‘assumed’ they couldn’t. 

Remember the ‘assume’ situation from Bad News Bears?  When you assume something, you make an a$$ out of U and ME.  Well when it comes to purchasing a home, assuming may not make an a$$ out of us, but it could have an extremely negative impact financially.  Most people ‘assume’ they can’t qualify for a loan…based upon income or lack of, based upon ‘assumed’ credit, or based upon the fact that they just bought a ‘sweet’ car.  Yes, all of these could affect your ability to get a loan and purchase a home, but  YOU DON’T KNOW UNLESS YOU TRY! 

You don’t know if you can not purchase a home until you check with a REALTOR (insert Scott Deaton here), and talk with a lender.  Period!  These two individuals will be able to not only determine if you can buy a home, but also determine how much of a home you can buy, and then go find the home.  Awesome!    

Did you know that it is cheaper to own a home now than to rent?  Yes it is.  Call me and lets see if you can buy a home while it is the best time to buy one.

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Buyers Better Hurry: Rates Reach New Lows

Buyers Better Hurry: Rates Reach New Lows For the sixth straight week, fixed mortgage rates inched down, reaching new lows for 2011. The 30-year fixed-rate mortgage averaged 4.60 percent this week while the 15-year mortgage averaged 3.78 percent, Freddie Mac reports in its weekly mortgage market survey. Last year at this time, 30-year rates averaged 4.84 percent.  Last year at this time, the 15-year fixed-rate mortgage averaged 4.21 percent. Meanwhile, the National Association of Home Builders reported this week that home affordability reached its highest level in 20 years, making the purchasing power for home buyers even better during this traditionally prime buying season. Source: “Fixed Mortgage Rates Continue to Find New Lows,” Freddie Mac (May 26, 2011)

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Finding the Right Sales Price Isn't Easy

Finding the Right Sales Price Isn't Easy

In a volatile real estate market, knowing the right price for a home isn’t always clear, experts say.  Scott Deaton says it is the most important element!  Having to drop a home's sale price from its initial list price is common. On average, sellers reduce their list prices after about 2.5 months by 8 percent when a property hasn't sold yet, according to a report by Trulia.com. After making one price reduction, 35 percent of those sellers will make a second price cut too.  Even homes without any obvious faults are undergoing price cuts, agents say.  It is a buyer’s market in most of the country, and for your house to sell, it must be a value to the buyer.  Scott Deaton’s spill on the situation: The majority of the problem with reduction in price is due to the listing agent. Most of them do not know how to properly price a home, for the current market, and instead rely on the seller to dictate what the list price is.  Of course, every seller feels their house is worth more than any of the other houses in the neighborhood, but the fair market value of any home is what the buyer is willing to pay for it AND what the lender is willing to loan on it.  Not either or!  It is both!  As an agent, I would love to sell the house for more money since I make more money for my family with a higher sales price.  But as a professional, my job is to provide information and market knowledge to my clients.  My job is to sell house, not just list them.  If a seller hires me to market their home and sell it, then the home must be priced according the market…not what the seller ‘wants’ out of it, and sometimes, not for what is still owed on it.  Finding that right price point is the most important piece of the puzzle.

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Avoid Home Flaws Being Uncovered Too Late

Avoid Home Flaws Being Uncovered Too Late
ALWAYS GET A HOME INSPECTION WHEN BUYING A HOME…but, home inspections don’t always turn up everything wrong with a home, but unknowing buyers can quickly turn unsatisfied when they move into their new home if they find a bunch of problems. "The purpose of a home inspection is to look for material defects of a property: things that are unsafe, not working, or that create a hazard," Kurt Salomon, president of the American Society of Home Inspectors, told the Chicago Tribune. However, most buyers "think we can see through walls and predict the future.” 

Home inspections, for example, don’t specifically test for environmental safety hazards like lead, asbestos, or radon--which can be costly to remove. Inspectors also may overlook mold or vermin when its hidden behind floorboards. As such, buyers also should be on the lookout for common hazards because pinpointing these before closing at least allows them the opportunity to ask sellers to help pay for removal costs.

Experts warn that buyers should take note of homes built prior to 1978, which usually contain lead and possibly asbestos in 9-by-9 floor tiles in basements.  To help avoid post-move-in surprises, buyers also might consider bringing in additional safety inspectors to evaluate the home, such as chimney inspectors, electricians, or experts for leading or radon testing.

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Mortgage Rates Reach Another Low for 2011

Mortgage Rates Reach Another Low for 2011
For the fifth straight week, mortgage rates inched down again--this time reaching the lowest level of the year as well as lowest year-to-date. The 30-year fixed-rate mortgage averaged 4.61 percent this week, while the 15-year rate averaged 3.80 percent, Freddie Mac reports in its weekly mortgage market survey. The 30-year mortgage hasn’t reached 4.61 percent or below since December 2010. Last year at this time, it averaged 4.84 percent while the 15-year fixed-rate mortgage averaged 4.24 percent.

The falling rates may be yet another lure to buyers during real estate’s traditionally prime home buying season. Owning a home has also recently been found to be more affordable than renting in 78 percent of the major U.S. cities, according to the latest data from Trulia. If you are going to buy a house….now would be a great time!

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Arkansas Home Prices Buck the National Trend

Check out this information on home prices that have increased better than national average. Downside is that number of sold units were down for April.  Probably due to the heavy rain and storms!

Arkansas home prices buck the national trend Today's THV But in the Little Rock, North Little Rock and Conway area home prices actually increased just over 1% comparing March to March. Over the past 3 years, the real estate industry has seen a boom, especially due to the home buyer tax credit. Now realtors ... See all stories on this topic »

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EXIT Realty Deaton Group's Agent of the Month

Congratulations to Amber Burdett!  Amber is in charge of our new agent development, and makes sure that all new agents have the mentoring, training and resources necessary to succeed.  Thanks for your leadership!

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Mortgage Rates Drop to Lowest Level of Year

Mortgage Rates Drop to Lowest Level of Year
This means if you are thinking of buying a home….NOW WOULD BE A GOOD TIME!  Mortgage rates reached their lowest levels of 2011.   The 30-year fixed-rate mortgage, a popular choice among home buyers, averaged 4.63 percent this week, Last week, the 30-year mortgage stood at 4.71 percent; compared to last year at this time, it averaged 4.93 percent. The 15-year fixed-rate mortgage also reached its lowest level of the year, averaging 3.82 percent this week from 3.89 percent last week. Last year at this time, the 15-year mortgage averaged 4.30 percent.

As rates continue to fall, the number of mortgage applications are increasing, OF COURSE!  THE SMART ONES ARE JUMPING ON THIS OPPORTUNITY!  LOWER INTEREST RATES MEAN LESS PAYMENT EACH MONTH AND MORE HOUSE FOR THE MONEY!  EVERYONE WANTS A DEAL.  HERE IT IS!  Mortgage applications increased 8.2 percent this week compared to one week earlier, reports the Mortgage Bankers Association.

Source: “30-Year Fixed-Rate Mortgage Drops to 4.63 Percent,” Freddie Mac (May 12, 2011) and “Mortgage Applications Increased 8 Percent in Early May, Says MBA,” RISMedia (May 12, 2011)

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5 Reasons You Should Consider Selling Now

If you plan on moving anytime in 2011, you should strongly consider selling your house now rather than waiting. Here are five reasons why:

1.) This is when your house will get the most exposure 

The spring, and particularly the month of May, is when most buyers enter the real estate market. This surge of buyers dramatically increases the exposure for your house . The best chance of getting quality offers (perhaps even multiple offers) is RIGHT NOW!

2.) Foreclosures and short sales will increase in about 90 days

The good news is that the number of people paying their mortgage on time is increasing. This will lead to less distressed property sales later this year and throughout 2012. The not-so-good news is that there is still a large inventory of existing foreclosures and short sales that will still be coming to market.

As an example, LPS reported in their latest Mortgage Monitor that:

• There are still twice as many loans going 90+ days delinquent as are starting foreclosure
• There are almost three times the number of foreclosure starts as there are foreclosure sales
• Distressed property inventory levels are almost 45 times the rate of monthly foreclosure sales 

This means that there is a backlog of properties which will start coming to the market in about 90 days as banks clear up their paperwork challenges. These properties sell at dramatic discounts. They will be your competition. Both Fannie Mae and Freddie Mac have recently discussed the magnitude of this challenge.

3.) Interest rates have risen over the last six months

Interest rates have stabilized recently. However, in the last six months, interest rates have climbed over 1/2%. Every time the rates increase 1/4%, approximately 250,000 buyers are eliminated from qualifying for a mortgage. In an environment of volatile rates, waiting could mean that there will be fewer buyers eligible to purchase your house. It also could mean that you will pay a higher rate on the next home you buy.

4.) Qualifying for a mortgage is about to get even more difficult

Besides increasing rates, there are other factors that will hinder a buyer’s ability to qualify for a mortgage as we move forward. Lending standards have been getting tighter over the last year. And as the government debates the new proposed guidelines (QRM), banks are gearing up for even more stringent standards.

Morgan Stanley recently stated: “Recent developments in issues such as GSE reform, Dodd-Frank securitization rules, and foreclosure settlement issues suggest a tighter and more expensive environment for mortgage credit.” This may impact any potential purchaser for your property and may also impact your next purchase.

5.) It’s time to get on with your life 

Probably the most important reason to sell is so you can get on with your life. You placed your home on the market for a reason. Do not allow a less-than-stellar housing market prevent you from reaching your goals as an individual or as a family. Think about the reasons you decided to move in the first place. Are these reasons still important to you? If you have to take less than you were originally hoping to get for your house, your family has a question to ask each other: Is the dollar difference in sales price worth putting off our plans? Only you and your family know the answer to that question.

Bottom Line 

If you plan to sell this year, the reasons above prove that selling now makes more sense than waiting to later in the year. Sit with a real estate professional in your area today to fully understand your best option.

by The KCM Crew on May 10, 2011

See my Social Business Card at www.ScottDeaton.com

Posted via email from Scott Deaton's Blog

5 Reasons You Should Consider Selling Now

If you plan on moving anytime in 2011, you should strongly consider selling your house now rather than waiting. Here are five reasons why:

1.) This is when your house will get the most exposure 

The spring, and particularly the month of May, is when most buyers enter the real estate market. This surge of buyers dramatically increases the exposure for your house . The best chance of getting quality offers (perhaps even multiple offers) is RIGHT NOW!

2.) Foreclosures and short sales will increase in about 90 days

The good news is that the number of people paying their mortgage on time is increasing. This will lead to less distressed property sales later this year and throughout 2012. The not-so-good news is that there is still a large inventory of existing foreclosures and short sales that will still be coming to market.

As an example, LPS reported in their latest Mortgage Monitor that:

• There are still twice as many loans going 90+ days delinquent as are starting foreclosure
• There are almost three times the number of foreclosure starts as there are foreclosure sales
• Distressed property inventory levels are almost 45 times the rate of monthly foreclosure sales 

This means that there is a backlog of properties which will start coming to the market in about 90 days as banks clear up their paperwork challenges. These properties sell at dramatic discounts. They will be your competition. Both Fannie Mae and Freddie Mac have recently discussed the magnitude of this challenge.

3.) Interest rates have risen over the last six months

Interest rates have stabilized recently. However, in the last six months, interest rates have climbed over 1/2%. Every time the rates increase 1/4%, approximately 250,000 buyers are eliminated from qualifying for a mortgage. In an environment of volatile rates, waiting could mean that there will be fewer buyers eligible to purchase your house. It also could mean that you will pay a higher rate on the next home you buy.

4.) Qualifying for a mortgage is about to get even more difficult

Besides increasing rates, there are other factors that will hinder a buyer’s ability to qualify for a mortgage as we move forward. Lending standards have been getting tighter over the last year. And as the government debates the new proposed guidelines (QRM), banks are gearing up for even more stringent standards.

Morgan Stanley recently stated: “Recent developments in issues such as GSE reform, Dodd-Frank securitization rules, and foreclosure settlement issues suggest a tighter and more expensive environment for mortgage credit.” This may impact any potential purchaser for your property and may also impact your next purchase.

5.) It’s time to get on with your life 

Probably the most important reason to sell is so you can get on with your life. You placed your home on the market for a reason. Do not allow a less-than-stellar housing market prevent you from reaching your goals as an individual or as a family. Think about the reasons you decided to move in the first place. Are these reasons still important to you? If you have to take less than you were originally hoping to get for your house, your family has a question to ask each other: Is the dollar difference in sales price worth putting off our plans? Only you and your family know the answer to that question.

Bottom Line 

If you plan to sell this year, the reasons above prove that selling now makes more sense than waiting to later in the year. Sit with a real estate professional in your area today to fully understand your best option.

by The KCM Crew on May 10, 2011

See my Social Business Card at www.ScottDeaton.com

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Manufactured home at 1501 Ivy Dr Bomber Base Subdivision Jacksonville AR 72135

via exite-listings.com

Great condition home for only $39,900. Check out all details at www.1501ivy.info

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Interest Rates to Rise as QE2 Ends

Interest Rates to Rise as QE2 Ends
Wells Fargo Securities Chief Economist John Silvia warns that higher interest rates are on the horizon, with the Federal Reserve set to end its program of buying U.S. Treasurys in June.  He expects higher interest rates to put added pressure on a struggling residential real estate market, but does not expect them to halt the broader recovery. Silvia forecasts that Treasury rates could rise by one-half to a full percentage point, which in turn will affect mortgage interest.

Know what this means?  It WILL cost you more to buy a home.  If interest rates go up, then it will cost you more per month to own the home you want, OR you will have to buy less of a home to keep your payments where you want them.  Now is the time to buy!

Source: “Interest Rates to Rise as QE2 Ends, Economist Warns in Denver,” Denver Post, Aldo Svaldi (05/05/11)

 
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30 FHA Rates, 4.25%, NO Origination Fee, WOW

30 FHA Rates, 4.25%, NO Origination Fee, WOW.  If you are thinking of buying, NOW IS THE PERFECT STORM!  Interest rates low, inventory high, prices stable, sellers motivated, deals available!  Call me for details.

 
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4 Keys to Selling in Today's Market

4 Keys to Selling in Today's Market
Home sales and prices are still dropping around the country as huge inventories of foreclosures and short sales continue to weigh on many markets. So how can traditional sellers stand out in a crowded real estate marketplace? CNNMoney.com recently highlighted several keys to getting a home sold in a tough real estate market.

1. Cut your price by a lot. Buyers nowadays want to feel they are getting a “steal,” real estate experts say. But some sellers may be tempted to list a property above fair market value just to test out the market and see if they can get a taker.  "The first 30 days on the market are the most important," says Elizabeth Kamar, a real estate professional in Norwalk, Conn. That crucial time is when the home gets the most attention and showings. For sellers who aren’t realistic about the price from the get-go, they often end up with less than they would have if they priced it right initially, Kamar says.  Experts also note that if after 30 days on the market there are still no buyers, sellers may need to make a big move.

"When a property sits, people start thinking it must be listed too high," says Ellen Klein, a real estate professional in Rockaway, N.J. She suggests making a giant price cut--as much as 10 percent of the asking price--which may be extra motivation for buyers to take a second look or attract a new pool of potential buyers seeking a lower price range.

2. Play hardball in negotiations. Sellers shouldn’t feel they have to accept any lowball offer that comes their way. However, if a buyer is willing to negotiate, that’s when sellers need to try to set aside feelings of anger or insult and start to counteroffer, says Mabel Guzman, president of the Chicago Association of REALTORS®. Guzman says the ideal is that you’ll be able to negotiate within $10,000 to $20,000 of an acceptable offer. Using incentives--such as agreeing to leave the appliances--may get buyers to budge in agreeing to a higher price.

3. Stage it. Staging is becoming popular in trying to sell mid-range homes. Professional stagers will help home owners highlight key areas of a home and often rearranges furniture or bring new furniture in, repaint, and get the home looking like it’s ripped from a catalog. Real estate brokers say that proper staging can actually speed up a sale and increase the final sales price too.

4. Get the home in front of as many buyers as possible. The real estate professional needs to get creative in the marketing to make sure the home gets a lot of attention from buyers. "The more eyeballs that get on the listing, the better," says Katie Curnutte of the real estate information web site Zillow.com.  One key: Boosting the home’s online presence. Having 20 instead of five photos will nearly double the number of hits the property gets on the Web, according to Zillow.com. Incentives can also draw out buyers, such as with offers to cover a buyer’s closing costs, pay the first year’s property taxes, or even a $1,000 gift card (and maybe one for the buyer's agent too). (Note: You must disclose any such gifts or payments when the offer is agreed on.)

Daily Real Estate News  |  May 3, 2011  | 

 
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