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.

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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.

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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.

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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.

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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:

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.

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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!

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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)

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Bird Down!

Kansas Turkey!

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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! "

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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.

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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. 

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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!

Posted via email from Scott Deaton's Blog

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!

Posted via email from Scott Deaton's Blog

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!

Posted via email from Scott Deaton's Blog

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.

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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.

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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.

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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

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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.”

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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?

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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.

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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?

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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

 

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Why Crosse?

We get asked why we named our son, Crosse. Here's why.

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