Where are the buyers?

Saw a report stating that even with all time low interest rates, this past week was only the 2^nd week of increased mortgage application activity over the past 10 weeks.  That means that 80% of the time over the past 2.5 months, mortgage applications to purchase a home have decreased.  Why?  We saw activity increase over the $8000 tax credit.  Yes, $8000 is nice, but it is nothing compared to the amount of money that buyers can save RIGHT NOW with these low interest rates over the life of the mortgage.

Example:  on a $200,000 loan, with 5.5% interest (which everyone would agree is good), your principal and interest payment is $1,135.58 per month.  Not bad.  BUT!  With rates available today around 4.5%, that same house is now only costing you $1,013.37 per month.  That is over $100 per month less on the same house.  Over the life of the 30 yr loan, that is a savings of over $36,000.  That is much better than a one time $8000.  

Yeah, Scott, but I’m not going to live in this home for 30 years.  Ok then, lets try to replace the $8000 tax credit with the saving on a per month basis.  You only have to live in the home around 6 years to have your $8000 back.  Any additional time you live there after that is gravy.  Did you know the average length of time for living in a home is 7-10 years?  Yep, you just saved more money than the tax credit with these extremely low interest rates available now.

We all know interest rates can change at any time.  If you are thinking of buying a home in the near future…..I would recommend that ‘near’ be ‘now’.  Interest rates can only go up from here.  And guess what else?  Prices of homes can only go up as well.  Ah, you thought they would stay this way forever. 

Lawrence Yun, Chief Economist for National Association of REALTORS, says there are stats out there that show we may be in a housing shortage in 2010 and 2011.  Yes, I said SHORTAGE.  Simple economics here.  Supply goes down, Demand goes up, price goes up.  Bam!  Reality just kicked in.

 

thx,
 

 www.WeAreExit.com

"I Am Building a Company, By Design, that Honors Success & Productivity."

For a short video on what is EXIT, go to www.ExitRealty.com and click "Up Close and Personal with EXIT"

Posted via email from Scott's posterous

New Listing at 9 Flourite Cv Little Rock, AR

via exite-listings.com

Move in ready and includes hot tub on the entertainment deck. See more at http://www.exite-listings.com/55317.>

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Frugal Tips for Making a Home More Appealing

Homeowners who want to sell but don’t have a lot of cash to spruce up their properties might consider these tips from Bankrate.com (and comments from me) for upgrading a property without spending a fortune.

Polish up the kitchen. Add new cabinet door handles, replace lighting and update the faucet set. Unless the cabinets are mica, give them a fresh coat of paint. Order new doors for kitchen appliances.  Scott Deaton: All of these are very inexpensive and the kitchen is one area of major focus for all buyers.

Tidy up the bath. Replace the toilet seat. Clean up the floor with vinyl tiles or sheet vinyl applied over the old floor. Re-grout the tub and, if the tub is dingy, add a new prefabricated tub and shower surround.  Scott Deaton:  Inexpensive to also upgrade to new faucets.

Paint the walls.  Scott Deaton: Wow, paint is cheap and you can do it yourself.  Fresh paint makes a huge difference!

Add closet systems to all the bedrooms, pantry, and entry closets.  Scott Deaton: Most current homes around our area have closet systems, but good idea to repaint them and spruce them up.

Hire a plumber and an electrician to fix anything that is loose or that leaks.  Scott Deaton:  Amen!  Buyers ‘freak’ out over minor plumbing and electrical issues, but the fixes are usually minor and very inexpensive.  Take care of them before the buyer sees them.  It will cost less to fix them than what value the buyer puts on it to fix it.  i.e. faucet leaks:  Homeowner spends $.25 to replace o-ring.  Buyer thinks all plumbing is out of date and needs $1000 overhaul.

Clean the carpets or, if they are worn, cover them with area rugs.

Replace ceiling lights with inexpensive but attractive fixtures.

Refinish or repaint the front door and replace the hardware.

Mow the lawn, edge the sidewalks, mulch all the beds and put two big planters at either side of the front door.  Scott Deaton:  the exterior view creates the first impression for the buyers.  If they don’t like what they see outside, it is doubtful they will like (as much) what they see inside.

 

thx,
 

 www.WeAreExit.com

"I Am Building a Company, By Design, that Honors Success & Productivity."

For a short video on what is EXIT, go to www.ExitRealty.com and click "Up Close and Personal with EXIT"

Posted via email from Scott's posterous

Morris Code

Real opportunity for success lies within the person, not the job.  Steve Morris, CEO EXIT Realty Corp. International

 

thx,
 

 www.WeAreExit.com

"I Am Building a Company, By Design, that Honors Success & Productivity."

For a short video on what is EXIT, go to www.ExitRealty.com and click "Up Close and Personal with EXIT"

Posted via email from Scott's posterous

Crosse's Miracle

November 2004 our doctor told me that my then 3 yr old son, Crosse, would never be a self-sufficient adult due to a disorder called Landau-Kleffner Syndrome.  Google it.  5 1/2 years later, this same doctor told us today that there is NO medical evidence of the disorder in Crosse!  Thank you, God.  Thanks for the miracle of the cross, and thanks for Crosse's miracle!

Scott Deaton,PMP
EXIT REALTY DEATON GROUP

Broker/Owner

501-221-3948 office

501-580-9151 mobile
Scott@ExitRealtyDeatonGroup.com

www.WeAreExit.com

 

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Welcome to EXIT Realty Deaton Group

Welcome two more agents who have joined our growing team:  Wendy Moore and Lisa Ginn.  No wonder EXIT Realty is the ‘fastest growing real estate company in the history of real estate!’

 

thx,
 

 www.WeAreExit.com

"I Am Building a Company, By Design, that Honors Success & Productivity."

For a short video on what is EXIT, go to www.ExitRealty.com and click "Up Close and Personal with EXIT"

Posted via email from Scott's posterous

7 Things All Borrowers Should Know About FHA Loans

 “We have seen home buyer interest in FHA loans go from practically zero three years ago to upwards of 87% today,” said Christopher Gardner, founder and president of FHA Pros, LLC. “Despite this rapid rise in popularity, many buyers still do not fully understand the benefits of these loans, and we believe it’s time to change that.”

1. FHA loans are not only for lower-income borrowers. FHA loans are available to everyone. There is no maximum income restriction associated with FHA loans, but borrowers do need to substantiate income and assets by submitting proper documentation. This requirement ensures that borrowers are well-vetted and truly able to afford their future homes.

2. FHA loans are not only for first-time buyers. Many people believe FHA loans are available only to first-time home buyers, but this is not the case. Whether borrowers are making their first home purchase or their fifth, they can look to FHA loans as a home financing option.

3. FHA loans are not just small loans; in fact, loan amounts can be as high as almost $800,000. The government recently raised the maximum loan amount from its original cap of $362,790 to $793,750 as a way to help stabilize the housing market. The amount a buyer can borrow varies from county to county though. Later this summer, condo buyers interested in FHA loans can visit www.checkfhaapproval.com to instantly identify FHA-approved condo associations and review maximum loan amounts for a given location.

4. FHA loans are not affiliated with the section 8 housing program. While both programs are administered by the U.S. Department of Housing and Urban Development (HUD), FHA loans have nothing to do with low-income subsidized housing. FHA loans are simply mortgages insured by FHA. This insurance provided by the federal government allows lenders to lend more freely by assuring them that they will be repaid in the event of default. Most traditional lenders, including Wells Fargo & Co., JP Morgan Chase and Citigroup are able to provide FHA loans to their customers.

5. FHA loans are often more affordable than conventional loans. While FHA loans typically offer the same interest rates as other loans, borrowers benefit from a much lower down payment of as low as 3.5%.

6. FHA-approved condo developments are more desirable to buyers. With 87% of home buyers indicating that they plan to use FHA loans, condo associations that are not FHA approved are missing out on a significant pool of prospective buyers. Under rules in place since February 2010, an entire condominium development must now apply to HUD and be granted FHA approval before a buyer can purchase a unit in an association with an FHA loan or before an existing unit owner can refinance into an FHA loan.  Due to the general unwillingness of today’s lenders to extend credit with respect to conventional loans, many borrowers find that FHA is their best bet. Lenders don’t mind lending when the federal government (FHA) assures them of repayment.  Homeowners associations (HOAs) should note that although FHA-insured mortgages might be easier to obtain, they are not “risky” loans, due in large part to the strict “full documentation” requirements placed on borrowers. Individual buyers or sellers can initiate the approval process or current owners can encourage their HOA to apply.

7. FHA loans are assumable. In addition to lower down-payment and credit-qualifying requirements as compared to conventional loans, FHA loans are assumable. This means that when a seller with an FHA loan sells his or her property, the loan and its financing terms (interest rate) can be transferred to the new buyer. This unique feature will certainly make a property more valuable in times of rising interest rates.

“Now, more than ever, buyers and sellers need to understand the options available to them when it comes time to buy a home,” continued Gardner.

 

thx,
 

 www.WeAreExit.com

"I Am Building a Company, By Design, that Honors Success & Productivity."

For a short video on what is EXIT, go to www.ExitRealty.com and click "Up Close and Personal with EXIT"

Posted via email from Scott's posterous