CNN Money 101 – Buying a Home

Top things to know

1. Don’t buy if you can’t stay put.

If you can’t commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner.

2. Start by shoring up your credit.

Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Aim for a home you can really afford.

The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you’ll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.

4. Don’t worry if you can’t put down the usual 20 percent.

There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a down payment as small as 3 percent of the purchase price.

5. Buy in a district with good schools.

In most areas, this advice applies even if you don’t have school-age children. Reason: When it comes time to sell, you’ll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.

6. Get professional help.

Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

7. Choose carefully between points and rate

When picking a mortgage, you usually have the option of paying additional points — a portion of the interest that you pay at closing — in exchange for a lower interest rate. If you stay in the house for a long time — say five to seven years or more — it’s usually a better deal to take the points. The lower interest rate will save you more in the long run.

8. Before house hunting, get pre-approved.

Getting pre-approved will you save yourself the grief of looking at houses you can’t afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.

9. Do your homework before bidding.

Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5 percent less than the asking price, you should make a bid that’s about eight to 10 percent lower than what the seller is asking.

10. Hire a home inspector.

Sure, your lender will require a home appraisal anyway. But that’s just the bank’s way of determining whether the house is worth the price you’ve agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.

For information about Alpharetta, the Real Estate Market & Happenings around town. Send me an e mail huntforhouses@yahoo.com or call 678-575-6735

How To Get The Best Price In A Slowing Market

by Peter G. Miller

Reports across the country suggest that real estate in most areas of the country is no longer appreciating at the rates seen in the past few years. In fact, the National Association of Realtors reports that nationwide August existing home prices were actually down 1.7 percent from a year earlier.

None of this is terrible or awful unless you bought last year and must now sell. Those who have owned for a few years are well ahead in most communities.

Consider that in 2000, according to the National Association of Realtors, the typical existing home sold for $111,800 versus $225,000 in August.

So, what’s the best approach to selling in today’s market? Consider these five core points.

• Buyers are scarce relative to home supply.

While sellers have called the shots for the past few years, that’s no longer the case in most markets. No problem — adjust. Make your home the most attractive, best priced property in the neighborhood.

While pre-market prep could have been ignored in the recent past, today you have to paint, clean-up and repair before offering a home for sale. An MLS photo that shows a home with a lousy roof is evidence of a property that likely will not sell quickly or at full price.

• Remember that cash is still an issue.
  

• Choose the right Realtor.
  

In a slow market picking the realtor becomes especially important. Why? Because a broker with a strong local history is known and respected: If he or she offers a property at a given price that value is likely to be accepted as at least within the realm of reason.

• Numbers Count.

Real estate sales are a by-product of exposure. If the odds of selling a home are 100 to one, if it takes 100 inquiries and visits to sell a property, then the quicker you get those inquires the better. No less important, if you can get more than 100 inquiries the odds of getting a top price and terms improve.

This means that when considering a listing broker you need to review the marketing plan with care. What, exactly is the broker going to do in terms of advertising, open houses, market trends, MLS placements, online marketing, broker relations, etc?

Remember that the marketing plan which works for one property may not work for another. Plans need to be specific to local markets, to particular homes and for current market conditions. The thinking that seemed so good last year may be inappropriate this year.

• It’s a business deal.

With some frequency I see homes priced for reasons that won’t work:

• The property must sell for this price because I need $400,000 for the next home. The truth: Prices are established by the marketplace, not seller needs.
• Similar homes in a different neighborhood command a particular price, therefore my house should sell at the same price. The truth: What happens elsewhere is irrelevant. What happens in the immediate neighborhood is what counts.
• The Flombacks got $800,00 for their home so I should be getting at least that much. The truth: This is not about the Flombacks and should not be about seller ego. The real issue is about bricks and mortar. The Flombacks may have an objectively better house.
• The buyer’s offer requires that we leave the washer and dryer — it’s an insult. The truth: Homes reflect our psychological identity, who we are, our social status, etc. But the marketplace reflects supply and demand. Leaving a washer and dryer may be a lot cheaper than not getting a sale for months on end.
• This home would have sold for $500,000 last August and we will not accept a lower price. The truth: It’s not last August. It’s now and the marketplace reflects current supply and demand.

Sellers can be successful in any market so go forth and market — but do it right.

To find out how much your home is worth. E mail me at huntforhouses@yahoo.com or call me at 678-575-6735

Selling (or Buying) a home in todays Real Estate Market…
written by Traci Morreale Strub – HUNTFORHOUSES@YAHOO.COM

I know the Real Estate Market look bleak right now. Sellers are thinking: “I will never be able to sell my home” and buyers are thinking: “I will never be able to get a loan in this market”. In this case, it could be perception is your reality.

Despite the constant barrage of negative Real Estate news, keep your head up. Look at it in a more positive light. After 14 years experience in Real Estate, I have seen all the ups and downs of the market and still succeeded in helping my clients buy or sell without losing. I make it a win – win situation.

The thought that homes aren’t selling is just not true. You need to understand that you have to price it right. You CAN NOT say “let put it on the market for XYZ and if we don’t get a lot of interest, we can lower the price”. That is the kiss of death.

Like most Realtors, I want to list your home! That’s what I’m here for and that’s how I get paid. BUT, I have had to turn down a listing or two because the sellers had unreal expectations. Make sure you find a Realtor who will tell it to you straight, lumps and all. Anyone can be a yes man and that is robbing you of precious time and money!

Lets move on to buyers. YES, you can get financed. Just because lenders have tightened there belts on loans doesn’t mean you can get one! Like I mentioned earlier, Mortgage applications are up and the rates have been slashed. Now is the time to buy a home! Sellers are competing for your business. You no longer have to settle.

Regardless of all the negative information floating around, there is always a silver lining. In this case, seller can sell and buyers can buy. Don’t let the reports frighten you from your dream of owning a home or upgrading to a bigger home.

I have to reiterate… find an experienced Realtor who will shoot straight. Don’t listen to the Realtor who says “I’ve done this and I’ve done that”, things are different in the market now, you need to hear “I will do this and I will do that”. Find a Realtor who’s been in the business longer than a few years. Most new Realtors have not had experience in a down market

Call or e mail me and I will tell you what your home is worth, how much we should list it for AND what improvements (if any) need to be made in order to make your home shine!

For information about Alpharetta, Real Estate, Market Trends, Events and Happenings in and around Alpharetta, please call Traci at 678-575-6735 or send an e mail to
huntforhouses@yahoo.com

Lower Fed Rate Means Opportunities on the Rise:

For the first time in more than four years, the Federal Reserve cut its Fed Funds Rate, which directly impacts millions of American borrowers. And while this important decision has many implications, there’s still some debate among experts about what this means to the economy as a whole.

The Federal Reserve meets again in six weeks, and no one is certain how market volatility and inflation concerns will affect their future policy and decision-making. Bottom line: Take advantage of this opportunity while you still can.

Call me right away.

If you’re looking to capture a lower interest rate for refinancing or buying a home, this could be your best opportunity to do so. If you have an Adjustable Rate Mortgage, while this rate cut might help to improve your situation, now is the time to refinance into a fixed-rate loan.

If you have a Home Equity Line of Credit (HELOC) or credit cards tied to the Prime Rate, the Fed’s cut in the Fed Funds Rate just put a little money in your pocket.

Borrowers waiting for a lower fixed-rate mortgage may be waiting for a long time. The chart below clearly shows how Fed Funds Rate cuts do not translate into cuts in fixed-rate mortgages. In January 2001, the Fed Funds Rate was at 6% and 30-year fixed rates averaged 7.03%. By December 2001, following 4.25% in cuts throughout the year, home loan rates were actually up to 7.07%.

For information about Alpharetta Real Estate, Market Trends, Events and Happenings in and around Alpharetta, please call Traci at 678-575-6735 or send an e mail to
huntforhouses@yahoo.com

INSIDE ADVICE: In a slow market, there are many reasons to list with an agent
By John AdamsContributorPublished on: 07/01/07

I was recently asked whether a home should be sold “by owner” or listed with a real estate agent. I replied that it depends on the seller’s circumstances.

In today’s world of real estate, a seller has more options than ever. You can list with a traditional real estate agent and pay a typical commission of 6 percent or 7 percent of the purchase price, or you can go it alone and try to save the commission. In addition, many brokers offer services somewhere in between, charging different fees for various services you might select.

If you are trying to make the same decision about how to sell your house, here are some relevant topics. You will likely want to list your home with a traditional real estate agent …

If you are in a hurry to sell your home. Let’s say your spouse has been transferred to Chicago, and he’s already there living in a hotel. The only thing keeping you here is the house, and you need the full benefits of a full-time professional to get your home sold as quickly as possible.
Remember that a significant part of the buying market is being transferred into Atlanta, and those buyers work almost exclusively with agents. These are the hottest buyers in town, with a high motivation to purchase quickly, and cash in their pockets. And those buyers usually don’t view homes listed by owner.

If you have never sold a house before and simply don’t have a comfort level with the transaction and the steps needed to make the sale happen. Getting a buyer to agree to pay a certain price is just the beginning. And if you’ve not sold a home before, you can easily miss an important part of the process, putting your entire sale in jeopardy. Effective agents specialize in getting the sale to the closing table.

If you’re uncomfortable with the prospect of showing your home to strangers and would welcome the agent’s presence when your home is shown. Reports of crime associated with home sales and open houses are rare, but any time you open your home to the public, it’s smart to anticipate potential problems. You’ll want to screen prospective purchasers, and make sure you are not alone when showing your home to interested parties.

If you are trying to sell in a slow market, like the one we are in now. Even a small advantage in marketing may make the difference between a sale and another 60 days on the market. For example, agents are members of the local multiple listing services, and that’s where other agents go to find prospective matches for their buyers’ needs. Having your home listed in the MLS is a huge advantage over simply having a “for sale” sign in the yard.

In addition, many MLS listings are automatically placed on national listing Web sites like realtor.com, where out-of-town buyers are more likely to view them.

If your time is better spent doing whatever it is you do than answering lots of unqualified callers’ questions about your house and how low you might be willing to go. Some folks are simply so busy with their job that they really have no business trying to sell their own home. Answering calls and returning inquiries is time-consuming, not to mention the obligatory open houses you will want to hold on the weekends. In contrast, agents are set up to handle this type of volume and have systems in place to convert leads into buyers.

If your skin is so thin that you will be personally offended when a prospective buyer makes fun of your decorating. In that case, you need someone else to handle the sale. Buyers come from all backgrounds and walks of life, and everybody’s got an opinion about your paint colors and your furniture. To make matters worse, they will want to poke their head into every nook and cranny of your house. Part of the selling process is encouraging buyers to visualize themselves living in your home, asking them how they might make changes to better reflect their own likes and dislikes. If that process will offend you, call an agent.

And finally, if the idea of negotiating prices back and forth with the purchaser is distasteful to you. If that’s so, you should probably hire an agent. Agents receive training in how to handle back-and-forth negotiations, trying to bring the parties to a meeting of the minds and getting to an acceptable price.

In the market for a new home? Contact “the best Realtor in Alpharetta” Traci at 678-575-6735 or send an e mail to huntforhouses@yahoo.com