|
|
-
Good news for home buyers out there. Mortgage rates this week are at their lowest point since early July according to mortgage giant Freddie Mac. 30 year, fixed-rate mortgages fell to an average of 6.68% this week. This is the lowest they have been since an average of 6.63% in early July. What's ahead for rates? Will they go up or down?? Nobody really knows for sure. Some analysts are saying up and some are saying they will go down. All we know is this recent drop is presenting a great opportunity for buyers and they should take advantage of it by locking in their rates today. Couple current interest rates with the large selection of homes on the market, and buyers have one of the greatest opportunities in recent history to purchase a home.
|
-
You've heard from your friends, your neighbors, relatives, and the media that it's a buyer's market and you can get homes for next to nothing. You are wondering how much of this is true, and what kind of deals you can actually expect to get when buying your next home. Well, I’m going to explain some of the truths, rumors, and myths you may have heard. Rumor/Myth Number One: You can get homes for half or market value right now? Truth: No matter if you are buying or selling, in Toledo or L.A., or buying a small or large home you always get the same deal. That is the Current Market Value. That's it, period. The market determines the value of a home based on a few parameters, and is constantly changing. The market, which you help comprise, values homes based on condition, location, supply & demand, seller's motivation, and comparable home sales. The market value of a home is constantly changing along with these parameters. The market value of a home five years ago, two years ago, or one year ago does not equal today's market value. If a home is under priced in any market the market will bid it back up to market value. If a home is overpriced the market will let it know by taking no action on it until price comes down to market value. With that said our current market values are lower than in the previous couple years so there is currently a great amount of value buys on the market. Rumor/Myth Number Two: I can offer half of asking price and get a home? Truth: Although this does happen, it is a rarity. The times you will most likely see this is with foreclosure homes that are in horrible condition (mold, foundation, structural issues, sometimes all of the above) and have been sitting on the market for a long time (a year or so). Most of the discount you will receive on the home has already been factored into the asking price. The average home in the Toledo area sells for 3 to 5% off of list price. Current buyers have been able to negotiate closing cost assistance more often than in previous years too. No matter what you will always end up with the same net price to the seller. An example is if you offer $100,000 on a home asking for 3% back to help with your closing costs, or if you offer $97,000 it is the same thing to the seller. They both net $97,000 and will be viewed as such. There are some great values, and it is still an awesome time to be a buyer. We just have to be realistic on our expectations. Rumor/Myth Number Three: I can get a better deal if I pay cash? Truth: This one holds up most of the time. A buyer who is in position to pay cash for a home will most likely get the home at a lower price than someone who is financing the home. The conditions of the seller must be taken into account every situation is different. A seller may need to get a certain price no matter how someone is paying for the home in order to close the deal, but if this is not the case you are in a much better negotiating position if you are a cash buyer. Why? With mortgage standards tightening daily there is a higher risk of financing falling through before closing can occur. Generally a cash deal has a higher likelihood of closing than one with financing as a contingency so sellers take that into account when negotiating. Now that some common rumors, myths, and truths have been explained what can you expect in today’s market? Right now you can expect a large amount of quality choices when looking for a home. Right now we are seeing a larger discount on higher priced homes, and mostly steady priced on moderate/average to lower priced homes. This is due to basic supply and demand at different price levels. You can expect to be fully represented by a Buyers Agent. If you do not have one, get one. You will see more vacant homes than in the past which ups the odds of you being able to take possession of the home at closing. This is in contrast to the custom of possession 30 days after closing in the Toledo Market. This allows a seller time to move out of the home to where ever they are going. You can expect to get great value in accordance with today's supply and demand as compared with the past couple of years. Bottom Line: With the current market supply, large amount of great values and historically low interest rates now is one of the greatest times to buy a home. Whether you are a first time buyer, looking to upsize, or looking to downsize now is a great time to buy.
|
-
Recently we have been seeing a pick up in market activity for Toledo and the surrounding areas. There are still plenty of choices for buyers meaning there are great values for those buying now. We are seeing the homes that are priced right are moving off the market faster than the past six months meaning that you must be ready to make a decision when you find a home that you like. This doesn't mean you have to buy the first nice home you see. What is does mean though is that you must be prepared to make a decision rather quickly of whether you want the home or not. This past fall and winter you could have taken your time to decide what to do about a particular home. We saw people debate for weeks at a time deciding whether or not to purchase a particular home or to get their pre-approval, and they got away with it. Now while people are going back and forth over a home, or procrastinating on getting pre-approved, someone else is coming in and buying it out from under their nose! How do you keep from having the perfect home for you swept out from under your feet? How do you make a timely decision about a home? BE PREPARED! Your first step is to contact your Buyers Agent. They will recommend quality local lenders to you so you can get pre-approved for a mortgage. Why is this so important? Sellers will not even look at your offer unless you are pre-approved with a quality local lender. If you are paying cash you will need to provide proof of funds. This is usually done in the form of a letter from your banker. This will also help you determine how much you would like to invest in your home so you are looking at the right homes. The next thing to do is to go sit down with your Buyers Agent and determine what exactly you are looking for. Make two lists, your needs and your wants. Your needs are must haves and your wants are like a wish list. Also, while with your Buyers Agent determine the area(s) you would like to purchase in. They will know the areas, and be able to determine pretty quickly if what you are looking for is available in those areas. Your Buyers Agent will now search for homes that fit your criteria and present them to you. This can be done in multiple ways. Email is the most requested method by Buyers these days due to the speed and convienence for them. Alternative ways are via telephone or to print out information and exchange information. The next step is for you to evaluate the homes your Buyers Agent finds for you. One great way to do this is to drive by the homes to prequalify them. This will give you a great chance to learn more about the neighborhood and home first hand. After you have driven by the possible homes call your Buyers Agent with the homes you would like to see more of. They will then set appointments up to see the homes at the earliest possible time. Usually plan on 24 to 48 hours advanced notice when seeing a home. You see one you like, what do you do?? Congratulations, you found the right home for you! You are already prepared to make your decision by doing your homework up front. You know what you need, want, how much you would like to invest, and have seen the other homes available that fit your criteria. You are all set. As you will experience, it is much easier and you will be much more confident about you decision since you did the necesarry preperation. Go ahead and make an offer. Your Buyers Agent will be there to guide you through the whole process, and make sure it is as smooth as possible for you.
|
-
As you have seen in the newspapers, many websites, and on the evening news the foreclosure rate in the Toledo area is very high and still climbing. Many people read about or see on TV how you can get foreclosed homes for next to nothing and have instant equity, or for minimal work fix them up and sell them for a profit (commonly called "Flipping"). People also read and hear about people getting in over their heads by buying a foreclosed home that needs more work than they ever imagined. So that leaves us with the question: are foreclosures a deal or no deal at all?? The answer to that quesiton is the always loved, it depends. The truth is, regardless of what the TV or national news says, is that some are and some are not. Foreclosed homes are like every other home on the market, some are overpriced, some are underpriced, and some are priced just right. They also vary in condition from move in ready to rebuild. So how do I know if a foreclosure is a good deal or not? The same way as you know if any other home is a good deal or not. You must examine the neighborhood sales and the condition of the home. Foreclosed homes are usually discounted for the amount of time they have been on the market, and for the condition of the home. The rule I use is that if you find a foreclosed home that only needs cosmetic work in a good neighborhood then you have likely found something good. There is still some work left to do to figure this puzzle out though. Work with your Buyers Agent to examine the sales of the neighborhood to see if it is priced right, or what the right price should be. Then we move onto inspections. Without a doubt you should always have the home inspected by a professional home inspector, period, no ands ifs or buts! Some foreclosed homes sit empty for years before they go on the market which can lead to problems that a trained professional can spot better than the average home buyer. Once you have done all your research and had your home inspection you need to decide if the home is worth the work. Most foreclosed homes are going to need some work done to them to bring them up to your satisfaction. You must know what work you are willing to do, and how much you are willing and able to spend for supplies or for work to be done by someone else. Here's an example: A foreclosed home's asking price is $100,000. You estimate that it needs $10,000 worth of your time and work put into it to be brought up to your standards. You estimate that the homes value would be around $125,000 when you complete your repairs. This would net you $15,000 worth of equity in the home. You must decide if that $15,000 of equity is worth the $10,000 worth of money, time, and effort you would need to put into the home. If it is, then you have yourself a deal. If it's not, then you don't. It's that simple. Just remember the main rule for foreclosures: Do Your Homework First! If you do your homework up front (researching values, inspections, estimating costs, etc...), know what you are willing to do, and stick to your plan then you will be happy with your decision on whether a foreclosure is a Deal or No Deal.
|
-
Planning to buy a home, and you want to or need to put zero down? You better act fast as Zero Down loans are tightening restrictions and even disappearing all together every single day! What's this mean for you?? A couple months from now, next week, or even tomorrow you will not be able to qualify for a Zero Down loan like you could today, and they may not even exist in the near future. This could mean years of throwing away your money to a landlord, or living with your parents if you don't act fast! Your friends and family members were all able to take advantage of these loans and you will be left in the dark pretty soon. Why are Zero Down loans disappearing? They are disappearing because of the rising number of loans in default and foreclosure. This has caused some lenders to lose money and some to close their doors all together. This also means that even the lenders who are in great shape are getting scared by this, and closing the doors on Zero Down loans. Now, Zero Down loans are not for everyone and they never have been, but they are a great tool for home ownership for a large amount of people who may not be able to buy a home otherwise. If you are one of these people who are right for a Zero Down loan you have a decision to make: Buy Now or Forever Hold Your Peace.
|
-
Almost all homebuyers have one goal in common when they buy a home, and that is to have it appreciate in value while they own the home. This makes for a much happier time for everyone when it comes time to sell the home. Buyers always say this is a goal, but some inevitably lean towards a home where this will not happen. Sometimes they lean towards a home that may even depriciate over the years they own it. Why or how can a home do that???? BAD LOCATION! That's how and why homes will do this. If having your home appreciate is one of your goals, then the game plan for you is simple. Buy in the best neighborhood you can, period. If you aren't sure which neighborhood or street is better than the other ask your Buyers Agent. They will be able to show you facts about sales in the neighborhoods of the homes you like, and can advise you on which home would be the best for long term appreciation. The numbers don't lie. Your Buyers Agent will be able to also advise you on what improvements are good to make and what may be too much. This way you can maximize your gains by making smart improvements to your home. Buying in the best neighborhood you can produces appreciation based on simple economics. It's supply and demand. There's a high demand for homes in good neighborhoods, the better the neighborhood the more demand and the more appreciation. That's how it works. You are better off buying a home in a good neighborhood that needs a little elbow grease put into it than buying the biggest, nicest home on the block in a neighborhood that is not quite as good. Whenever you have questions about location or appreciation ask your Buyers Agent. If you don't have one, get one, then ask them. Remember: Location was, is, and always will be the king of real estate.
|
-
Remember when you were a kid splashing through all the puddles and kicking up mud in a good thunderstorm. Never thought you'd have a good excuse to do it again? Well, buying a home is your reason now. Why is it as great of an idea to look at homes during or just after a good rain as it is to see it in the daylight hours? Ugliness gets exposed. Viewing a home when it has recently rained gives you a great chance to examine any potential problems that you may not see on a perfectly sunny day. Does the yard get flooded, how's the basement hold up?? You can't tell how light will come into the home at night just as you can't tell how damp the basement will get during a storm if it's dry. This will allow you to spot any leaks in the roof or basement immediatley. Another advantage is the same advantage that looking in cold or snowy weather has, less competition. In bad weather people do not like to go out to search for homes so there is an advantage to viewing a home during this time. Let's say it rains for three straight days, you view homes, write an offer, and get your offer accepted by the time the sun comes out for the rest of the crowd. You just beat your competition to the punch. Now they are the ones who lose out on choice, and meanwhile you have found your dream home. So remember, even though you're not a kid anymore it's still fun to play in the rain.
|
-
Questions come up all the time about when to start looking for a home. First you must decide when you would like or need to move into a new home. After that we just look at the average time it takes someone to go through the home buying process. Here are the average times to give you a better understanding of the time table for purchasing your next home. Home Search: 90 Days. This is the average amount of time it takes someone to identify their needs vs. wants, find a home that fits what they are looking for, and negotiate an accepted offer. Time Before Closing: 30 Days. A month is the average time from reaching an accepted offer until closing. During this time you will have an inspection, appraisal, title work, and final approval of your mortgage loan. Possession: 30 Days. The custom in the Toledo area is for possession to be granted to the buyer 30 days after closing. This allows the seller an ample amount of time to move to their next home. Total: 150 Days. This is the total average amount of time it takes for a person to go through the home buying process. If you look at the total average time the home buying process takes all you have to do is figure out when you want or need to be in your new home and count back 150 days. That means if you would like to move into a home by July 1st you should start looking in February! As you can see, it is never too early to start looking.
|
-
Market activity has been picking up in recent weeks! There's been more activity on the MLS (Multiple Listing Service), more vistiors to the web site, more showings, and more agents buzzing around the office. It looks like we may be starting to kick out of the slower market we have been in! There are still plenty of good homes for sale, and interest rates for mortgages are still historically low. This equals a great opportunity for buyers out there in the Toledo area right now! We are seeing more and more buyers everyday now that will slowly whittle away at the supply of good homes on the market. In real estate talk: The early bird gets the house.
|
-
The 25th annual HBA of Greater Toledo House and Home Show is this weekedn, February 16-18, at the Seagate Convention Center in downtown Toledo. The show is open from Noon to 9pm on Friday, 10am to 9pm on Saturday, and 10am to 5pm on Sunday. Your Toledo Area Homes Team members will be at the Re/Max Masters booth from 10-1 and 7 to 9 on Saturday so be sure to stop by for valuable information regarding buying and selling. Ask for your fFREE CD that is loaded with all kinds of great information and links to great websites to help you with any of your buying or selling needs.
|
-
Now that winter has finally arrived a great opportunity has also arrived for Toledo area home buyers. You may ask how the heck are these bitter cold temperatures and mounds of snow good for me?? Where's the opportunity there? It's simple. Most people are not willing to go out looking for homes during cold or snowy days. They would rather stay inside where it is nice and warm. Not the savvy home buyer though. The savvy homebuyer will take advantage of the average home buyer sitting on their butts, and go find their own dream home before someone else gets to it. The lower competition also means ther is a far less chance of getting into a multiple offer/bidding war situation. Less competition = more opportunity, it's that simple. Now, we should all still keep safety first, but I sure wouldn't want to be the one sitting on my butt while my competition is out seizing the opportunity and buying my dream home!
|
-
Someone asked me today if now was a good time to buy a home. They explained that they were worried by the slow housing markets in most areas, and asked if it would slow down more before it got better. The answer, I don't know, all I know is that there are a lot of people who are buying homes right now, and they are very happy with their choice. One thing that is making buyers happy right now is the wide selection of homes to choose from. With the large number of homes on the market it allows buyers more choices instead of only having one or two homes that fit their needs. As far as predicting the future, I don't have a crystal ball, and I don't know anyone who does. Remember, a house is a great long term investment. If you plan on only living in a home for a year then you most likely shouldn't buy no matter what the market is like. The Toledo market has never made great gains or losses in a single year. It is a slow and steady market that gradually increases over time. To answer the question again. Is it a great time to buy? I don't know, I only know that there are a lot of people buying right now, and they are really happy in doing so.
|
-
When you have a home inspection inevitably there will be a list of items the home inspector will point out that may or may not need to be addressed before you close on the home. We will put these items into two categories: The Honey Do List and Issues. Honey Do List: These are items that are considered general maintenance or personal preference with a home. Examples include loose doorknobs, squeaky doors, or outdated light fixtures. These are all things that can be fixed fairly easily and do not effect the structural integrity of the home. Issues: These are items that do directly effect the structural integrity of the home. They include a leak in the roof, foundation problems, or electrical items that are deemed fire hazards. Professionals are usually required to remedy these items because they are not easily fixed by the average person. Issues are what you want to focus in on when you review your home inspection, and in negotiating the purchase of your new home. Sellers will usually recognize issues and are usually willing to find a remedy that suits both parties to insure the sale of the home. Sellers almost never listen when someone wants to negotiate Honey Do List items for a few reasons: 1. Most likely they priced the home with these items in mind in the first place with the assistance of a licensed real estate professional. They have already discounted the price accordingly and are usually not willing to budge because of that. 2. They lived with things the way they were. They reason that if things worked for them, they will work the same for you. 3. Every house comes with a Honey Do List. No house is perfect, not even a newly built home. 4. Personalizing the home is your business, and they do not feel they should foot the bill for it. Issues on the other hand are usually negotiable with sellers. Most of the time they didn’t even know about the issues that come up, and these are things that need to be fixed whether the home sells or not. Due to the fact that issues need to be addressed even if the home does not sell is why sellers are more willing to negotiate these items. A good analogy for what to address on a home inspection is buying an older car. You wouldn’t expect it to have airbags and a cd player, but you should expect the breaks to work.
|
-
Do you want to save money on your next home purchase?? Then get a home inspection! There are many ways a home inspection will save you money. Here are a few… 1. Uncovering Small Problems: Small problems usually turn into big problems that cost big money over time. Finding that new small roof leak now and having it repaired before it turns into a big leak could save you thousands in the long run. Hmm… $300 now or $3,000 later?? 2. Education: A good home inspector will go over the home inspection with you. They will explain what is considered general maintenance on the home, what a problem that is easily fixable is, and what is something to be worried about. They will offer up solutions for all of the problems too. This is a great opportunity, especially for first time buyers, to get an education on their home. This is why it is so important to be at your home inspection! It is especially important for first time buyers, those who do not know much about home repair, and those who tend to freak out when they see a faucet drip. 3. Negotiating Power: If you discover problems with a house up front you can negotiate for remedies with the seller. Most are willing to fix the problems or adjust the price to get the house sold. If you don’t have a home inspection and discover a problem after closing, well… you’re out of luck! When you discover problems before the sale you still have negotiating power because the sellers want to sell. After the sale, you are up a creek without a paddle. These are just a few ways a home inspection can save you money, and why it is so important to have one before you buy a home. Next week we’ll discuss what to look out for on a home inspection, and what goes on the ‘Honey Do List’.
|
-
Wondering why people who are pre-approved through a reputable local lender are so happy when they are looking for a home? The joy of being pre-approved that’s why! Here are 4 ways that being pre-approved can make the home buying experience much more enjoyable for you and your family. 1. Freedom! The freedom to look at homes knowing you have the financing already handled releases a huge weight off of your shoulders. It gives you confidence knowing a local financial institution will back your decision to buy a new home. 2. Negotiating Power! When you make an offer on a home while being pre-approved through a reputable local lender it puts you ahead of the pack. Say there is a multiple offer situation where you are up against two other people who wish to purchase the same home as you. Let’s say one of the others is pre-approved through a lender that the owner and owner’s agent have never heard of, and the third person is not pre-approved at all. You just jumped to the front of the line! People feel more comfortable accepting offers from buyers that are pre-approved with local lenders, period. 3. Getting the Home You Want! I’ve seen it happen all too often where a person finds their dream home only to have someone else buy it before they can because they were not pre-approved. It’s a heartbreaking experience to lose a home to this, and it takes some a long time to recover from this experience. 4. Confidence and Comfort! A pre-approval allows you to look at homes that are in your comfort zone, and it gives you confidence knowing that you are looking at the right homes. There is no better feeling for you than to walk into a home, say this is the one, and know that you can make it yours! Here are four of the ways a pre-approval can make the home buying experience a much more pleasurable experience for you and your family. Hopefully they are motivating enough for you to go get pre-approved with a reputable local lender before finding the home of your dreams.
|
|
|
|