One of the greatest things about the internet is you have the ability to get to know your Realtor without ever picking up a phone or even leaving your home or office. You can check out what they know and how they work; testimonials on their website; how they can help buyers and sellers as well as who they refer for insurance, mortgages, home staging, cleaning, landscaping and many other services you might need.
You can also get a feel of the neighborhoods the Realtor works in to make sure they have experience in the areas you are most interested in as well as a possible Market Snapshot that can bring that neighborhood right to your email with no hassles. Just a few years ago none of this was available like it is today. I say embrace the technology and have a look around; find someone who you believe will have your best interest at heart and contact them by phone, email or through their website contact form. Realtors have put themselves out there to help educate and help you and we need to know that we are doing our jobs. We need you to participate in the real estate experience with us and we know you will be rewarded with a great experience when you do.
When it comes to real estate there are just certain things that you cannot do anything about and mortgage rules are one of those things. What people need to know is the truth about what they can afford to buy and the best loan to get them where they want to go. Anything else is just fluff. Most people can deal with the truth as well as obstacles that come their way. What they have a hard time dealing with is not hearing anything about their loan.
One of the loan officers I use often puts it this way, “It’s just news and once we all know it, we can adjust to it and figure out a solution” and I couldn’t agree more. Clients need to have their phone calls and emails returned in a timely manner from their mortgage guy or gal as well as from their Realtor. Clients deserve to be treated with respect; and they deserve to know the truth when it happens, not several days right before closing. These are the things that separate the good from the great, and I believe my team can deliver great!
When the economy goes down the toilet, everyone scrambles to save as much money as possible and one of the things that homeowners do is get rid of any type of insect treatments, including termite treatments. I would use extreme caution if this is one of the things you are thinking about terminating because once you place your house on the market, if it has termite damage, it could cost you the sale of the home.
Recently, I showed houses to a couple who were interested in putting a contract down on a house before they discovered an entire interior wall eaten up with termites, which had the immediate affect of them changing their minds. This particular house was valued by local taxes in the 200’s and ended up selling to an investor in the 60,000 range. Ouch! The owner of that house took a big hit due to the damage done by these little creatures that could have been avoided with proper treatment. Unfortunately, I am seeing way too many homes with preventable termite damage and it is affecting the sales price. The take away is simple; protect the value of your home by keeping the termites at bay with annual inspections and treatments if necessary.
HUD has announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. This measure should help bring stability to home values and accelerate sale of vacant properties and is part of the Obama administration commitment to addressing the foreclosure problem. It is hoped that this will help stabilize home values and improve conditions in communities where foreclosure activity is high as well as help local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes through the $2 billion in Neighborhood Stabilization Program grants that were announced by the HUD Secretary yesterday.
The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:
- All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
- In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
- The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD’s website at: http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
It is important that first-time homeowners eligible to claim the first-time homebuyer tax credit know the IRS released a new form today that they will need to get that credit properly processed. They also announced new documentation requirements to deter fraud related to the first-time homebuyer credit. With the release of Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, and the related instructions, eligible homebuyers can now start to file their 2009 tax returns. Taxpayers claiming the homebuyer credit must file a paper tax return because of the added documentation requirements. Make sure you discuss this with your tax preparer.
In addition to filling out a Form 5405, all eligible homebuyers must include with their 2009 tax returns one of the following documents in order to receive the credit:
- A copy of the settlement statement showing all parties’ names and signatures, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement.
- For mobile home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.
- For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.
In addition, the new law allows a long-time resident of the same main home to claim the homebuyer credit if they purchase a new principal residence. To qualify, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. The IRS has stepped up compliance checks involving the homebuyer credit, and it encouraged homebuyers claiming this part of the credit to avoid refund delays by attaching documentation covering the five-consecutive-year period:
- Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,
- Property tax records or
- Homeowner’s insurance records.
The IRS also reminded homebuyers that the new documentation requirements mean that taxpayers claiming the credit cannot file electronically and must file paper returns. Taxpayers can still use IRS Free File to prepare their returns, but the returns must be printed out and sent to the IRS, along with all required documentation.
Normally, it takes about four to eight weeks to get a refund claimed on a complete and accurate paper return where all required documents are attached. For those homebuyers filing early, the IRS expects the first refunds based on the homebuyer credit will be issued toward the end of March.
In reading over many recent publications it looks like the interest rates will be at their lowest during the first quarter of 2010. The Federal Reserve along with additional government programs that have helped keep interest rates low will be phased out over the next three months in hope that the private markets will come in and take over where they left off and this is what needs to happen to insure growth in the economy.
However, it is expected to be a bit bumpy since no one knows how much or exactly when the private markets will jump in and take up the slack. That means that interest rates may be (some say will be) rising throughout the remainder of 2010. Of course, since there are so many unknowns, no one can say for sure what will happen exactly. A few predict that the government will have to get involved again before it can totally let the markets go and we will all have to wait and see as the year progresses. The one thing everyone seems to agree on it that for those in the market to purchase a home; interest rates will be at their best in the next few months.
I have recently read several posts on the internet and articles in the news where Realtors tell you what makes a good Realtor. I always find it interesting that they are always in their own articles as the top of this or that. They may well be the top earners or award winners in volume or money made, but I know that these things don’t always add up to being the best in the field. After all, many thought Bernie Madoff was the best investor in his field and it turned out that he was just the best at fooling people into thinking he was the best!
So how do you determine if you are, in fact, working with a Realtor that is a good fit for you? My suggestion is to talk to several of their past clients. Putting together a list of interview questions is another good idea. I suggest that you interview 2 or 3 Realtors. Some Realtors have team members that will spend more time with you than the Realtor because of the volume of their business. However, if you want to have personalized attention from a Realtor, make sure it’s the Realtor you will be dealing with while their staff is handling the behind the scenes paperwork and coordination.
Choosing a Realtor is a personal choice based on personality, needs, and time. Make sure you choose someone who can meet your expectations. The only way you can determine that is to know and communicate what you expect throughout the home buying or selling process. A professional Realtor will tell you whether or not he or she can meet you’re your expectations. If not, he or she will refer you to another Realtor who can best meet those expectations. It’s called professionalism and courtesy and should be practiced in every business.
