See the Top 10 Home Improvement Myths on Deaton’s Blog at www.DeatonGroupRealty.com
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
Monday, June 18, 2012
Friday, June 15, 2012
The Real Stuff: 8 scenarios that hurt mortgage qualification
8 scenarios that hurt mortgage qualification
Here are 8 scenarios that may, or may not, affect your ability to get a mortgage.
(1) Changing jobs before the loan closes? Yes. The underwriter approved your application based on your documented income covering two years or longer, from one source. At closing you must certify that all the information in your application continues to be true, which short of committing perjury you won't be able to do if you switch jobs. Your revised job history will be numbered in days rather than years, which could cause a rejection. In today's market underwriter discretion has been markedly reduced, and the likelihood of rejection is uncomfortably high. The prudent thing to do is to defer the job change until after the loan closes. Nobody will care what you do then.
(2) Will the rental income I receive from renting out my house during part of the year help me qualify for the mortgage I need to buy that house? No, anticipated rental income cannot be counted as qualifying income unless it is documented in the owner's tax return for at least two years. Further, only income net of expenses would be counted, and that number would be very small or zero if you expense everything you can in order to avoid taxes.
(3) Can I qualify using my income and my spouse's credit? No. Good credit without the means to pay is of little value to lenders, and good income without the willingness to pay is not much better. Lenders require both capacity to pay and willingness to pay in the same person. Before the financial crisis, married couples who had one spouse with the required income and the other with good credit often took "stated income" loans. Stated income was not verified by the lender. These loans were taken in the name of the spouse with good credit, who stated that the income of the other spouse was theirs. But stated-income loans no longer exist.
(4) Have preapprovals become more useful to homebuyers since qualification requirements became more restrictive? Yes and no. The main purpose of preapprovals is to establish the bona fides of potential homebuyers to home sellers and their agents, who don't want to waste time dealing with wannabe buyers who can't qualify for a mortgage. With an increasing number of potential homebuyers unable to qualify, the value of reliable preapprovals has increased. However, the same factors that make it more difficult to qualify for a mortgage today also make preapprovals less reliable. This is especially the case with self-employed buyers, who may be rejected despite having been preapproved. Preapprovals are always subject to conditions, the most important of which is a minimum appraised value. If an appraisal comes in below the minimum, the preapproval dies.
(5) As a "nonpermanent resident alien," can I qualify for a mortgage? Yes, but the terms are a little stiffer because of the risk that you might be obliged to leave the country. Lenders will require a larger down payment and/or a higher interest rate. In contrast, a "permanent resident alien" suffers no penalty.
(6) Can an excess in appraised value over the purchase price be used to meet a minimum down payment requirement? No, the down payment requirement is based on the lower of purchase price and appraised value. Any excess appraised value is ignored.
(7) Will sizable student debt prevent my qualifying for a mortgage? It may if you must begin repaying the debt within the first year of the mortgage, and if the amount is large relative to income. If the payments are deferred more than a year, it is a judgment call by the underwriter who will consider the size of the student debt, your credit and perhaps other factors.
(8) As a divorced spouse who remains liable on an existing mortgage, can I qualify for a new mortgage? Yes, if your income is large enough to afford the payment on two mortgages. If you can afford a new mortgage but not two mortgages, you must induce your ex-spouse to refinance the mortgage in her own name. Such a provision should have been part of a separation agreement. The only other possibility is to convince the new lender that the ex-spouse remaining in the house is sufficiently creditworthy that there is negligible risk of your having to meet two payments. That will require documentation that your ex has been making the payments on her own for at least a year.
By Jack Guttentag
Inman News®
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
The Real Stuff: Mortgage Rates Going Up
Mortgage Rates Going Up
After six consecutive weeks of reaching all-time record lows, fixed-rate mortgages reversed course this week, starting to inch upwards, Freddie Mac reports in its weekly mortgage market survey. Even with the slight upward spike, interest rates are at historic lows, and home buyer affordability high, providing a strong incentive for those looking to buy a home.
30-year fixed-rate mortgages: averaged 3.71 percent
15-year fixed-rate mortgages: averaged 2.98 percent
Daily Real Estate News | Friday, June 15, 2012
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
Friday, May 25, 2012
The Real Stuff: Arkansas Home Sales in April a Mixed Bag of News
Arkansas Home Sales in April a Mixed Bag of News
Sales Down 10 percent, Prices Up 10 percent
The number of homes sold in Arkansas decreased by 10 percent over a year ago while the average price of those homes sold rose by 10 percent. The average price of the homes sold in the 43 county area surveyed by the Association increased from $138,642 in April 2011 to $150,153 in April 2012.
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
Monday, May 21, 2012
The Real Stuff: Are you getting the technology promised?
Are you getting the technology promised?
Apparently not. I read an article about someone amazed by the fact that their local agents didn’t know how to use, what is now, common technology tools for the real estate industry.
After having a big brokerage for 5 years, I have now streamlined by operations and focused on providing my agent teams with the latest technology tools and one on one mentoring, training and coaching. Regardless of what you think, the name of the agency doesn’t improve your personal business at all. I take listings and buyers from the ‘big boys’ every week. Why? Because I show my clients the latest tools and techniques to satisfy their needs….to sell a home and/or buy a home.
The article I read mentioned that all the ‘big boy’s’ websites promoted themselves as being on the cutting edge of technology….yet a majority of their agents don’t use the latest technology tools. Especially the ‘old school’ agents who have been around for awhile. The ads are there, but the substance is not.
A few weeks ago, a local agent was shocked that I didn’t have a fax. Are you kidding me. I told him a fax machine was not needed anymore. He needed to scan the material and email it to me. After he caught his breath, and I held my ground that I was really telling the truth and didn’t have a fax machine, he finally admitted that he had scanning capability, but would have to figure it out. Are you kidding me? The fax machine has been on the obsolete technology list for a few years now. If you have a fax machine, get rid of it. Not needed.
Oh, yeah. This same agent who was shocked that I didn’t have a fax machine also still hand writes his contracts and still gets original signatures, from him, his broker, and his two clients. We now have the capability to complete our contracts online and send them for electronic signatures to our clients, our brokers, and our co-op agents. All without printing one piece of paper. Everything is online and stored in the clouds.
The author of the article stated, “The ability to get a signature from clients quickly and electronically can greatly reduce the amount of time, stress and work that can go into finalizing a contract. Buyers and sellers love to be able to sign electronically because it makes the transaction easier and less stressful for them too.” Don’t we all want something that is easier and less stressful?
I use other technologies like Dropbox to store training material, forms, videos, etc so all my agents have access, remotely, to our agency material. I even use dropbox when sharing large amounts of data and paperwork with other co-op agents. I put the paperwork in my dropbox account and share it with whomever I want….agents, clients, brokers, etc. It is secure and quick. .
Today’s real estate agent and agency is much different than it was even 5 years ago. The clients are online and expect the latest technology tools, and keeping organized is a major benefit to protecting our clients during the largest financial decision they are making for their family.
It is great to see some local agents with a IPAD to present their listing presentation on. But the technology usually stops there. Those same agents using the IPAD still think open houses and newspaper ads will sell the house. Wrong! I sell my client’s homes for more money and in less time than other local agents, yet I have never advertised in the local newspaper. Where does the success come from? From having a true, “cutting edge technology” strategy including online advertising, online communication, and technology management. That is what makes the difference for today’s buyers and sellers.
So what is the point of all this? If you are looking to be a client of mine, buyer or seller, be assured that I have and use the latest technology programs available to satisfy your needs. If you are an agent, looking for success, wouldn’t it sound better to work with someone who is on top of the latest technology that will improve your success and lower your stress, and provide the training you need to use the tools and incorporate them into the current “tried and true” real estate strategies. With today’s technology, I can have a streamlined office atmosphere, less overhead, more efficiency, and pay my agents higher splits.
Buyer, Seller, or agent: Which real estate company has the best technology? Can they prove it? What does it look like? What is it? Just because they say they have it, are the agents using the technology?
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
Friday, May 18, 2012
The Real Stuff: Positive Signs Abound for Housing
Positive Signs Abound for Housing
Just announced: The first quarter of 2012 was the “BEST” first quarter for real estate in five years, and pending contracts suggest that the second quarter of 2012 will be the best second quarter in five years!
And the icing on the cake is that the second half of this year could be even better than the first. Oh, keep it coming! With rental costs increasing and home affordability so good, we are moving forward in the housing industry. Let the flood gates open. Now is the time to buy low, opportunities are still out there, and home prices are starting to surge.
As real estate improves, consumer psychology around home ownership will change. Along with job growth and stock market gains, conditions are right for a sustained housing recovery. Sweet!
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
The Real Stuff: Another house sold. Buyer activity is good
Another house sold. Buyer activity is good
Congratulations to Chad and Patti on the sale of their home! Sold above asking price, in 9 days!
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
Thursday, May 17, 2012
The Real Stuff: Bank of America offers relo assistance to short-sellers
Bank of America offers relo assistance to short-sellers
Bank of America says it will provide up to $30,000 in relocation assistance to delinquent borrowers who work with the bank to obtain a preapproved short-sale price. Short sales must be initiated by the end of this year, and payments may range from $2,500 to $30,000. This program is available in Arkansas.
If you are experiencing difficulty in making your house payments, or feel that you can’t sell your home for what you paid for it, or enough to cover the outstanding mortgage debt, call me about a possible short sale option. Do not think that a foreclosure is your only option! With a short sale, I can get the bank to forgive your debt and the lender will pay all of your real estate and closing fees. It is possible that you have no out of pocket expenses, and you get relocation money! Short sales create a win-win situation for the homeowner and the lender. They are becoming more popular than a foreclosure, and lenders are shorting their decision times to within a month.
Regardless of who your lender is, a short sale is a better option for you and the lender!
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
Friday, May 11, 2012
The Real Stuff: 2012 2013 Forecast is UP!
2012 2013 Forecast is UP! Based upon the estimated numbers from the National Association of REALTORS, 2012 and 2013 will experience increase in home sales. We will also see home prices go up by 2% each year, and interest rates pushing 5% by 2013. This is wonderful news for our industry. But, if you are thinking of buying a home, now is better than later. Higher prices and higher interest rates mean less house or higher payments in the future. If you are thinking of selling, now is the time since prices have seen slight increases and buyer demand is high. Plus the lower interest rates help keep the cost down for you on your next home.
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
Wednesday, May 9, 2012
The Real Stuff: Home Prices Rising #2
Home Prices Rising #2. Even nationwide, prices are up. Look at the swing since December 2011 on the attached chart! What does it mean? For buyers, you probably missed the bottom, but now is still a great time to purchase since increases may continue. For sellers, prices up means higher demand. Good time to sell!
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
The Real Stuff: Home Prices Rising
Home Prices Rising in March 2012! Up almost 5% compared to a year ago, statewide.
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
Tuesday, May 8, 2012
The Real Stuff: Another Happy Buyer....& Seller
Congratulations to Mather and Samantha! They are the proud owners of a new home for their family.
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
The Real Stuff: Bank of America Writing Off HomeOwner's Mortgage Debt
BofA Starts Writing Off Borrowers’ Mortgage Debt
More than 200,000 underwater home owners with mortgages through Bank of America may be eligible to have a reduction in the amount they owe on their loan, which could possibly trim their monthly payments by up to 35 percent. Bank of America has sent letters to home owners who may be eligible to take part in a program to write-off a portion of underwater home owners’ mortgage principal, reducing it by, on average, $150,000 each.
Home owners eligible for the principal write-offs must be “underwater” (owing more on their mortgage than their property is currently worth), have a loan owned or serviced by Bank of America, and be at least 60 days behind on their mortgage payments as of the end of January. In order for the mortgage reductions to be made permanent, home owners must make at least three on-time payments.
Wow, this is huge news. As one of the largest lenders in the country, BofA is ‘eliminating’ on average, $150,000 per loan. If you received a letter, this may be a great option for keeping your home. If you are too far gone, and can’t make up the payments, and participate in the program, remember there is another option beside foreclosures. Bank of America is a large participant in short sales, which save your credit score and cost the bank less out of pocket expenses than foreclosure. I will be glad to discuss the process and advantages of a short sale. Short sales are a win-win position for you and the lender. Foreclosure is a lose-lose for both!
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
Friday, May 4, 2012
The Real Stuff: Home Buying Gets Another Boost in Affordability
Home Buying Gets Another Boost in Affordability
Borrowing costs for home ownership just got a little cheaper as mortgage rates took another dip to new all-time record lows this week, Freddie Mac reports in its weekly mortgage market survey. 30-year fixed-rate mortgages averaged 3.84 percent reaching a new historical low. A year ago at this time, rates averaged 4.71 percent.
We know that all good things must come to an end, and interest rates will begin to increase, especially as we get news of the economy rebounding slightly. If you are thinking of purchasing a home, now is the time to get the best interest rates of all time which means it will cost you less. If you are thinking of selling, these rates help you as well because it will increase buyer demand and traffic.
As always, my family relies on referrals! I appreciate the opportunity to show others what level of service a true real estate professional can provide.
Thursday, May 3, 2012
The Real Stuff: Arkansas First Quarter Home Sales Up 6%, Average Price Up 3%
Arkansas First Quarter Home Sales Up 6%, Average Price Up 3%
March 2012 Prices Up 5% Over 2011
Yeah! It’s looking better! The number of homes sold in Arkansas in the first quarter rose by 6 percent over a year ago. The average price of those homes sold rose by 3%. For the month of March the number of homes sold increased 1 percent and the average price for the month increased by 4 percent over March 2011.Why? Great interest rates, that have started to tick upwards. Good inventory levels, affordability is great, and buyer confidence is improving.
National median existing-home price - $163,800 in March, up 2.5 percent from March 2011.In the South, existing-home sales slipped 1.1 percent in March but are 3.6 percent higher than a year ago. The median price in the South was $146,500, up 6.2 percent from March 2011.
Monday, April 30, 2012
The Real Stuff: 5 reasons it's smarter to buy than rent #5
5 reasons it's smarter to buy than rent #5
Build your wealth, not your landlord's: There are two other reasons why it can be smarter to purchase than to rent. When you purchase, you lock in a payment at today's interest rate. Assuming that there is inflation at the average rate of 2.54 percent per year (the U.S. average), 10 years from now your monthly payment will be the equivalent of 75 cents on the dollar. In other words, a $2,000 payment 10 years from now would be the equivalent of $1,500 in today's dollars. In 20 years, it would be the equivalent of $1,000 in today's dollars. In contrast, renters may continue to receive rent increases.
An additional benefit of homeownership: each month you pay your mortgage, you accumulate equity. In contrast, renters are paying down their landlord's mortgage, allowing the landlord to accumulate the wealth rather than them. Thus, in the long term, for some individuals it's almost always smarter to buy rather than rent.
Friday, April 27, 2012
The Real Stuff: 6 Reasons to Reduce Your Home Price
6 Reasons to Reduce Your Home Price
While you'd like to get the best price for your home, consider our six reasons to reduce your home price. These six signs may be telling you it’s time to lower your price.
1. You’re drawing few lookers
You get the most interest in your home right after you put it on the market because buyers want to catch a great new home before anybody else takes it. If your real estate agent reports there have been fewer buyers calling about and asking to tour your home than there have been for other homes in your area, that may be a sign buyers think it’s overpriced and are waiting for the price to fall before viewing it.
2. You’re drawing lots of lookers but have no offers
If you’ve had 30 sets of potential buyers come through your home and not a single one has made an offer, something is off. What are other agents telling your agent about your home? An overly high price may be discouraging buyers from making an offer.
3. Your home’s been on the market longer than similar homes
Ask your real estate agent about the average number of days it takes to sell a home in your market. If the answer is 30 and you’re pushing 45, your price may be affecting buyer interest. When a home sits on the market, buyers can begin to wonder if there’s something wrong with it, which can delay a sale even further. At least consider lowering your asking price.
4. You have a deadline
If you’ve got to sell soon because of a job transfer or you’ve already purchased another home, it may be necessary to generate buyer interest by dropping your price so your home is a little lower priced than comparable homes in your area. Remember: It’s not how much money you need that determines the sale price of your home, it’s how much money a buyer is willing to spend.
5. You can’t make upgrades
Maybe you’re plum out of cash and don’t have the funds to put fresh paint on the walls, clean the carpets, and add curb appeal. But the feedback your agent is reporting from buyers is that your home isn’t as well-appointed as similarly priced homes. When your home has been on the market longer than comparable homes in better condition, it’s time to accept that buyers expect to pay less for a home that doesn’t show as well as others.
6. The competition has changed
If weeks go by with no offers, continue to check out the competition. What have comparable homes sold for and what's still on the market? What new listings have been added since you listed your home for sale? If comparable home sales or new listings show your price is too steep, consider a price reduction.
Thursday, April 26, 2012
Can you believe it!
via myhzm.com
Yep, a home in Chenal Valley for under $260,000! And it's NICE! 19 Bouresse, Little Rock, for only $254,900.
The Real Stuff: Short Sales Speed Up
The Real Stuff: Short Sales Speed Up
“Short Sales take too long”. This is the typical response from potential sellers, buyers and real estate agents who could benefit from a short sale vs a foreclosure. Because of this one response, many people are losing their home to foreclosure, when there is another alternative that could save their credit, and their future home purchase ability. New laws will be put in place in June, that require lenders to respond within 30 days to a short sale offer. I am currently working on a short sale that begin in December of 2011. We still have not heard from the lender. This new law will speed up the entire process and be a great benefit to the local real estate market. Sellers will be able to get rid of a home they can no longer afford, buyers will be able to get a home with instant equity, and lenders will get bad debt off their books. Short sales are a win, win, win for all parties.
If you, or someone you know, are thinking foreclosure is your only option, please know there is another alternative. Short Sale. I am a short sale expert, and here to help. The process will get much easier soon.
Wednesday, April 25, 2012
The real stuff: 5 Ways to Sell a Home Faster, For More Money
5 Ways to Sell a Home Faster, For More Money
24/7 Wall St. recently asked real estate experts and several real estate organizations to weigh in on how sellers can get their house sold at the best price and in the shortest amount of time.
Here’s what they had to say as some of the best ways to get the “sold” sign out this spring:
- Pay attention to “curb appeal”: First impressions are critical, and homes with inviting landscapes and exteriors tend to sell better, agents say. Pay attention that the driveway is in good condition, lawn well-kept, and the house looks freshly painted.
- Set the right price: Real estate professionals know how to set the price and prepare a home for sale. Agents use comparable sales of homes sold in the last 60 days to help set the most realistic price for the sales price of a home. By setting a realistic price from the beginning, sellers should be reminded that this will prevent having to drop the price of the home several times before getting it sold and having it linger on the market. If no recent comps are available, some experts recommended sellers get an appraisal, which will also offer a realistic price that the bank may be willing to take when a buyer tries to qualify for financing the home.
- Talk about energy efficiency: Many buyers don’t fully understand “green” homes but they understand savings. Sellers should point out any features in their homes — such as energy-efficient windows or appliances — that could save buyers money with utility costs.
- Give the home Web appeal: Good photographs make a home stand-out online and help lure more potential buyers to the front door. Realtor.com says that more than 6,300 photos are viewed per minute on listings posted at its site.
- Make it move-in ready: Fix any needed repairs, such as water stains, creaky doors, and windows that don’t shut. Flaws in the home — even if relatively minor — can distract buyers, and should be fixed before the home is even listed. Some agents recommend that sellers get a home inspection prior to putting the home up for sale, which can help sellers be proactive in identifying any potential problems that could potentially derail a sale later on. Once a problem is uncovered, sellers are obligated to disclose it or fix it.
The Real Stuff: 5 reasons it's smarter to buy than rent #4
5 reasons it's smarter to buy than rent
The market may have already bottomed - When buyers say they're afraid the market hasn't bottomed yet, take a look at your local market in their specific price range. Look at the number of months of inventory now vs. six months ago and one year ago. If the number of months of inventory is declining, that lets you know that you may have already reached the bottom of the market. On the other hand, if the number of months of inventory is still increasing, then there's a good chance you haven't hit bottom yet.
How much further do you believe the market will drop as a percentage. Most people think under 10 percent. If today’s buyer has to pay an extra percentage point in their interest rate it will cost them 25% more in interest over the life of a 30-year loan. Buying now, assuming that they keep the property, saves them 15 percent of their loan amount, even if the market declines by 10 percent.
Guess what! Central Arkansas has reached the bottom & activity is starting to ‘creep’ up…..as are interest rates. If you are interested in buying a home, waiting could cost you!
Tuesday, April 24, 2012
The Real Stuff: Real Estate Agent Among Best Business Jobs
Real Estate Agent Among Best Business Jobs
Real estate agents earned a place on U.S. News and World Report's recent compilation of the best business jobs, alongside such other professions as human resources specialists and meeting, convention, and event planners.
I am looking for new agents. If you are interested in a career with unlimited income, complete flexibility and freedom, please let me know. Full time and part time positions available.
Source: “6 Booming Business Jobs,” U.S. News & World Report (April 19, 2012)
Saturday, April 21, 2012
Big Boy Toys!
At fireworks trade show. New products coming for 2012 4th of July at Deaton Fireworks. This year's theme - "The bigger the package, the bigger the fun! "
Monday, April 16, 2012
The Real Stuff: 5 reasons it's smarter to buy than rent#3
5 reasons it's smarter to buy than rent #3
Increasing interest rates add up fast. An interest increase of 1 percent results in about a 25 percent increase in interest costs over the life of a 30-year fixed-rate loan. An increase of two percentage points in interest results in a whopping 50 percent increase in the amount of interest paid. That's why it's smart to buy now when rates are at historic lows.
The Real Stuff: 6 Worst Home Fixes for the Money
6 Worst Home Fixes for the Money
Getting your home ready to sell is one of the most important steps you can take, but sometimes, over the top is too much when it comes to ‘getting your money back’. See this article for this past year’s 6 Worst Home Fixes for the Money.
Wednesday, April 11, 2012
Updated and move in ready home in Maumelle for under $130,000
via myhzm.com
check out the website and virtual tour. Excellent condition & affordable. Enjoy all the amenities of Maumelle for less than $600 a month mortgage payment. That is cheaper than rent!
Updated and move in ready home in Maumelle for under $130,000
via myhzm.com
check out the website and virtual tour. Excellent condition & affordable. Enjoy all the amenities of Maumelle for less than $600 a month mortgage payment. That is cheaper than rent!
Updated and move in ready home in Maumelle for under $130,000
via myhzm.com
check out the website and virtual tour. Excellent condition & affordable. Enjoy all the amenities of Maumelle for less than $600 a month mortgage payment. That is cheaper than rent!
Tuesday, April 10, 2012
The Real Stuff: Set the Stage for a Home Sale
Set the Stage for a Home Sale
More sellers are entering the market during the spring selling season, hoping to attract buyers lured by record-low interest rates and increased affordability. More buying activity will happen April – June than any other time of the year. Some sellers examine the listing with a microscope, while others depend more on their real estate agents. Even though buyers and sellers both are more informed these days, agents provide an accurate, and in depth, analysis of the current market activity, which will provide that magic number called “The Most Likely Sale Price”.
Unfortunately, many agents still shoot you a higher ‘expected sales price’ just to win the listing. This doesn’t benefit anyone since we are still in a market where ‘overpriced’ doesn’t sell! Today’s market is a “Price War” and a “Beauty Contest”. Price it correctly from the beginning and make it sparkle.
To avoid confrontations, especially when it comes to the home's value, agents need to keep sellers informed, providing comparable sales data and other information. Experts say today’s sellers need to price the home right, as well as have the home staged. Sellers also need to make the home available for showings and avoid talking to prospective buyers and their agents, appraisers, or inspectors. Buyers will not feel comfortable asking questions or will find it difficult to visualize themselves living in the home when the seller is present.
Monday, April 9, 2012
The real stuff: 5 reasons it's smarter to buy than rent #2
5 reasons it's smarter to buy than rent #2
The lowest interest rates since the 1950s: A major reason that buyers should purchase now is that interest rates are close to all-time lows, and can’t go anywhere but up. In 1978, interest rates were 9.75 percent and soon hit 10 percent. In the downturn in the 1980s, they jumped as high as 21 percent. In the early 1990s, they were at 12 percent. If you are waiting because you think rates may drop more, this is a poor idea. With the government running huge deficits, it will have to sell Treasury bills to cover the debt. Investors are feeling skittish about purchasing these securities. This means the government will have to increase the rate of return in order to get more investors to purchase. When the government increases these rates, the cost of home mortgages will increase along with them.
The Real Stuff: There Is No Health Care Tax on Home Sales
Public Service Announcement: There Is No Health Care Tax on Home Sales
The 2010 health reform legislation introduced a new 3.8% tax on the net investment income of high-income taxpayers. That tax, which I suspect you will hear more about in coming months, goes into effect on January 1, 2013. This tax raises important policy issues, not least of which is whether Congress should give the name “Unearned Income Medicare Contribution” to an investment tax whose proceeds have nothing to do with Medicare.
The most pernicious myth, however, is that this new tax will apply to home sales. Not True!
As Howard Gleckman explains over at TaxVox:
Yes, the health law will impose a 3.8 percent tax on investment profits and other non-wage income starting in 2013. But that tax applies only to couples with adjusted gross income of $250,000 (or individuals with AGI [adjusted gross income] of $200,000). About 95 percent of households make less than that, and will be exempt from the law no matter what.
In addition, couples who sell a personal residence can exclude the first $500,000 in profit from tax ($250,000 for singles). That would be profit from a home sale, not proceeds. So a couple that bought a house for $100,000 and sold it for $599,000 would owe no tax, even under the health law.
If that couple had AGI in excess of $250,000 and made a profit of $500,010, it would owe the new tax. On ten bucks. That would be an extra 38 cents.
The Tax Policy Center figures that in 2013 about 0.2 percent of households with cash income of $100,000-$200,000 would pay any additional tax under this provision. And they’d pay, on average, an extra $235. Keep in mind that is added tax on all sources of non-wage income, not just home sales.
In short, the tax applies to capital gains, not home sales. Most capital gains on primary residences are exempt from tax. And it only hits high-income taxpayers. That doesn’t mean you have to like it.
Thursday, April 5, 2012
The Real Stuff: Tree Falls Over Property Line: Who Pays?
The Real Stuff: Tree Falls Over Property Line: Who Pays?
With Arkansas’ natural beauty, combined with Mother Nature, this situation is fairly common. When a neighbor’s tree falls over your property line, yell TIMBER, then call your insurance company. Home owners policies cover tree damage caused by perils like wind and winter storms. Most policies cover hauling away tree debris if the mess is associated with house damage; some will cover cleanup even if no structures were harmed.
When a tree falls: Your neighbor is responsible when a tree falls over your shared property line only if you can prove he was aware that his tree was a hazard and refused to remedy the problem. Regardless, your insurance company restores your property first, and later decides whether or not to pursue reimbursement from the neighbor or his insurer if the neighbor was negligent in maintaining the tree.
Before a tree falls: Write a letter to your neighbor before his dead, diseased or listing tree falls through your roof or over your property line.The letter should include:
- Description of the problem
- Photographs
- Request for action
- Attorney letterhead—not necessary but indicates you mean business.
Trim their trees: If the limbs of a tree hang over your property line, you may trim the branches up to the property line, but not cut down the entire tree. If a tree dies after your little pruning, the neighbor can pursue a claim against you in civil or small claims court. Depending on the laws of your state, your neighbor may have to prove the damage was deliberate or caused by negligence, but may also be able to recover up to three times the value of the tree. Before you cut, tell your neighbors what you intend to do to protect your property. They may offer to trim the whole tree instead of risking your half-oaked job.
Your tree falls: It’s always a good idea to take care of your big and beautiful trees, and keep receipts for trimmings and other care. But if your tree falls over a neighbor’s property line, do nothing until their insurance company contacts you. You may not be liable unless you knew or should have known the tree was in a dangerous condition. If you pruned a tree or shored up trunks to prevent problems, gather your receipts to prove your diligence
Wednesday, April 4, 2012
Arkansas REALTORSR Association Reports Outstanding February
Arkansas REALTORS® Association Reports Outstanding February
Arkansas REALTORS® had an active month in February. The number of homes sold in Arkansas in February rose by 15.41 percent over a year ago. The average price of those homes sold remained relatively even at $135,875. For the year the number of home sold increased 8.65 percent and the average price for the first two months of the year increased by 1.08 percent over the same time period in 2011.According to Lawrence Yun, NAR chief economist, underlying factors are much better compared to one year ago. “The market is trending up unevenly, with record high consumer buying power and sustained job gains giving buyers the confidence they need to get into the market. Although relatively unusual, there will be rising demand for both rental space and homeownership this year. The great suppression in household formation during the past four years was unsustainable, and a pent-up demand could burst forth from the improving economy.”
Tuesday, April 3, 2012
Energy efficient light bulbs save consumers money
Energy efficient light bulbs save consumers money
Click here to check out this news article about energy efficiency. Guess who the ‘consumer expert’ is around the 3:20 mark?
Easter time projects for your home
Easter time projects for your home
Easter is almost upon us and while thoughts turn to church, pretty dresses and of course chocolate, for many Easter also represents spring, and a time to get out the tools and do some jobs around the house. So here are some ideas for you to consider when planning your DIY Easter.
Indoors
Perhaps there are some plumbing washers leaking, and a couple of cracked tiles that need replacing. Maybe the time is right to make sure your home is draft proof. The best way to find the source of a draft is to hold a candle or lighted match to the suspected area - if it flickers there's a draft. Can use a light source to also see cracks. Fix it now and you'll save some money on your air conditioning this summer, and thank yourself on those cold winter mornings.
Outdoors
Easter may be your last chance to spend a decent amount of time outside. So get out there and get to work. Now is the time to get rid of those weeds, or add fresh mulch. Cleaning and maintaining your gutters is a must at this time of year or all those autumn leaves are going to create havoc over the winter months.
General
A couple of other ideas:
- grab the plaster and fix those holes in the wall
- get the paint out and give the outside a touch up or a good power washing
- tap into your artistic side and refresh that old outdoor table with a colorful mosaic top
The list of possibilities goes on and on. Take your pick, grab your tools and get to work.
If you have other favorite ‘do it yourself’ jobs, please comment.
12 Ways To Sell Your House In This Crappy Market #12
12 Ways To Sell Your House In This Crappy Market
Make a quality-of-life due-diligence checklist
· Go to the National Sex Offender Public Website at Nsopw.gov to search for neighborhood predators.
· Spend some time around the neighborhood and briefly interview neighbors. Determine if there are noisy neighbors, signs of gang activity, nocturnal barking dogs, indigent lingerers, frequent loud parties and/or suspicious nighttime visits. Are there lots of rental homes? Is the block a cut-through point during rush hour? Does the school bus go past the block? Is there a restrictive homeowners association?
· Determine what types of buildings can be constructed on vacant lots adjacent to the neighborhood. This helps avoid unpleasant future surprises. Is there constant noise from a nearby highway or busy street? Are there odors from nearby industrial plants?
Monday, April 2, 2012
10 THOUGHTS ABOUT LEADERSHIP
10 THOUGHTS ABOUT LEADERSHIP
1. People follow the leader first and the leader's vision second - It doesn't matter if the leader shares a powerful vision, if the leader is not someone who people will follow the vision will never be realized. As a leader, who you are makes a difference. The most important message you can share is yourself.
2. Trust is the force that connects people to the leader and his/her vision - Without trust there is a huge gap between the leader and the vision. Without trust people will stay off the bus. However if people trust the leader they will hop on the bus with the leader and help move the bus forward towards the vision.
3. Leadership is not just about what you do but what you can inspire, encourage and empower others to do.
4. A leader brings out the best within others by sharing the best within themselves.
5. Just because you're driving the bus doesn't mean you have the right to run people over - Abraham Lincoln said "Most anyone can stand adversity, but to test a man's character give him power." The more power you are granted the more it is your responsibility to serve, develop and empower others. When you help them grow they'll help you grow.
6. “Rules without Relationship Leads to Rebellion” - Andy Stanley said this and it's one of my favorite quotes. As a leader you can have all the rules you want but if you don’t invest in your people and develop a relationship with them they will rebel. This applies amazingly to children as well. It's all about relationships.
7. Lead with optimism, enthusiasm and positive energy, guard against pessimism and weed out negativity.
8. Great Leaders know they don't have all the answers - Rather they build a team of people who either know the answers or will find them.
9. Leaders inspire and teach their people to focus on solutions, not complaints. (The No Complaining Rule)
10. Great leaders know that success is a process not a destination - One of my heroes John Wooden, the legendary UCLA basketball coach, never focused on winning. He knew that winning was the by product of great leadership, teamwork, focus, commitment and execution of the fundamentals. As a leader focus on your people and process, not the outcome.
Thanks to Jon Gordon
Sunday, April 1, 2012
Friday, March 30, 2012
5 reasons it's smarter to buy than rent #1 - "Real estate: the only hedge against inflation that you can live in."
5 reasons it's smarter to buy than rent
One of the biggest myths in the real estate industry is that it is cheaper to rent than to buy. In 71 percent of the cities in the U.S., owning is now currently cheaper than renting. Many experts are predicting that rent increases will run as high as 5 to 10 percent per year over the next five years.
"What's the best hedge against inflation? Real estate: the only hedge against inflation that you can live in."
1. Real estate keeps pace with or exceeds the rate of inflation
Everyone today is concerned about the level of federal spending. A key concern is inflation. Hard assets -- real estate, gold and silver, among them -- have historically served as hedges against inflation. In fact, even in the areas hit hard by foreclosures, virtually all of them have shown substantial increases in real estate values when viewed in the long term.
To illustrate this point, when my father died in 1998, his house in California was valued at $168,000. At its peak in 2006, his house was worth almost $600,000. Today it's still worth about $350,000. That's still a 108 percent gain in value in 13 years. While not every area has seen such increases, more than 90 percent of all homes are still worth substantially more than they were 10 years ago. "What's the best hedge against inflation? Real estate: the only hedge against inflation that you can live in."
Thanks to Bernice Ross with Inman News®
Thursday, March 29, 2012
Exisitng Homes Sales Are Up
Exisitng Homes Sales Are Up
The spikes in sales in late-2009 and mid-2010 were due to the home buyer tax credit deadlines. Outside of these spike periods, the past two months of sales are at the highest levels in 5 years.
Wednesday, March 28, 2012
Don't tell anyone, but now is a great time to buy
Breaking news! National home prices lowest in 10 years, and are 33% lower than the peak we realized in 2006.Interest rates below 4%. First time homebuyers $2000 annual tax credit. What are you waiting for. It's a green light!
Tuesday, March 27, 2012
Have job opening! Who wants to work?
A friend of mine has an IMMEDIATE opening at Animal P.I. This can be a long term career opportunity. Truck is needed. Call David Whitehurst at 501-628-4682. Tell him Scott sent you.
12 Ways To Sell Your House In This Crappy Market #11
12 Ways To Sell Your House In This Crappy Market
Expand your buyer's due diligence
Aside from the financial details, contracts, disclosures and protections you typically tend to as you prep to buy a home, add these to the list:
· Hire a title company to check the house for liens and tax arrearages.
· Hire you own inspector. Don't use the seller's!
· Have the inspector check for unpermitted work such as illegal room additions and garage conversions.
· Consider the overall energy efficiency of the home with an energy audit.
· Be sure property lines are accurate, by obtaining a new survey. The surveyor will research the original deed and stake out the property's lines and your neighbors' property lines to avoid future disputes.
Friday, March 23, 2012
Open House this Sunday 2-4 pm, 117 Napa Valley Loop, Maumelle
via myhzm.com
Come visit this wonderful, "Shiny Penny" this Sunday, March 25th from 2-4 pm. This one has it all, plus some!
Thursday, March 22, 2012
Buying is Cheaper Than Renting in Nearly All Major Cities
Buying is Cheaper Than Renting in Nearly All Major Cities
Home buying is the smarter choice than renting, according to Trulia’s Winter 2012 Rent vs. Buy Index. Buying a home is more affordable than renting in 98 of the nation’s 100 largest metro areas, according to the index, which tracks asking prices for rental units compared to for-sale homes in major metro areas. Falling home values and low mortgage rates have made home ownership more affordable. Meanwhile, rents have been on the rise.
Leads to the question: “Why rent”? Of course there are reasons to rent vs buying a home……temporary employment may have you here for only a short time, or bad credit making a loan impossible right now (don’t just think you have bad credit and can’t buy – there are many programs that you might be able to use, so call me before you throw the idea away about buying). Other than those two, buying is cheaper and better investment than renting.
Wednesday, March 21, 2012
February market looks good
February market looks good
February existing-home sales declined 0.9% compared to January 2012, but are 8.8% higher than February 2011.
Lawrence Yun, NAR chief economist, said underlying factors are much better compared to one year ago. “The market is trending up unevenly, with record high consumer buying power and sustained job gains giving buyers the confidence they need to get into the market,” he said. “Although relatively unusual, there will be rising demand for both rental space and homeownership this year. The great suppression in household formation during the past four years was unsustainable, and a pent-up demand could burst forth from the improving economy.”
The national average interest rate for a 30-year, conventional, fixed-rate mortgage was a record low 3.89% in February, down from 3.92 percent in January; the rate was 4.95 percent in February 2011.
Scott Deaton summary: “It’s a great time to sell! It’s a great time to buy!”
Monday, March 19, 2012
Friday, March 16, 2012
Another RIGHT house for the RIGHT buyer!
Your Friend thought you should see this from HouseLogic.com
| Brought to you by the National Association of Realtors® | ||||||||
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Tuesday, March 13, 2012
12 Ways To Sell Your House In This Crappy Market #9
12 Ways To Sell Your House In This Crappy Market
Expand your buying universe
There's still an overabundance of well-priced inventory out there. That's especially the case with short sale homes, which can be a nightmare to close in a timely manner. There are some for-sale gems that need only a little polishing. Shop around. Don't dismiss foreclosures and other bank properties, pre-foreclosures, auction homes, for-sale-by-owner or lease-to-own homes. Pick at least three favorites and work from there.
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