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.

Posted via email from Scott Deaton's Blog

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.

Posted via email from Scott Deaton's Blog

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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