Aug. 11, 2008 - S.A. Builders Continue to Tackle Oversupply

S.A. Builders Continue to Tackle Oversupply

San Antonio-area builders continued to chip away at the oversupply of new homes that has saturated the market since 2006, selling more homes than they started in second quarter 2008. Local builders started 2,495 homes in 2Q 2008, down 35% from the 3,832 homes started in second quarter 2007, according to a Metrostudy report. Builders sold 2,857 homes, though that's still 26% fewer than the 3,864 homes they sold in 2Q 2007. The slowdown is part of a calculated strategy started in late 2006, builders say, to keep the market healthy by selling through the oversupply of homes that hit San Antonio that year. Since 2006, local builders have been advised to cut housing starts to a cumulative 10,000 or less for any 12-month period in order to absorb all excess homes, according to Jack Inselmann of Metrostudy. Earlier this year, Inselmann projected the goal would be met by the end of September. The declines are well underway, with San Antonio having the tightest monthly housing inventory of the roughly 40 major markets tracked by Metrostudy. Inselmann has since revised his target date to the end of 2008, citing the credit crunch caused by problems at Fannie Mae and Freddie Mac and rising oil prices. Meanwhile, many San Antonio builders are cutting inventories by minimizing their number of spec homes.

Source:  Metrostudy/TAMU/Skye (August '08)

Jul. 31, 2008 - Outstanding Residential Real Estate Service

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Service above and beyond your expectation is what we strive to deliver to each and every buyer and seller whom we work with during the buying or selling process.  Service is initiated with the buyer signing the document referred to as the Buyer Representation Agreement which formalizes the relationship between the broker and the buyer.  If the client is a seller, the Listing Agreement spells out the agreements, duties and responsibilities of the broker and the seller. 

The services made available to the client beyond any written document are transportation, bottled water and refreshments, free computer service, notary, messenger, fax and telephone service.  If the client has children, they are accomodated as well with the resources available in the real estate office. 

Our goal is to explore what the clients really want and how we can better serve them.  We provide internet links to information addressing schools, taxes, health care, insurance,recreation, community and any other information requested, To deterrmine the client's needs, it will be necessary to ask questions and listen to the client's responses.  We want to make the client feel special and appreciated by responding to all questions and concerns whether buying or selling or both.

May. 23, 2008 - Seller Buy-Down In Lieu Of A Price Reduction

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  Seller Buy-Down In Lieu Of A Price Reduction

 When interest rates increase, fewer buyers can afford the payments associated with home purchases and fewer buyers can qualify and budget for the higher payments.  When you factor in increased home values, buyers become priced out of the market.  This is what causes the local real estate market to change from a “seller’s market” to a “buyer’s market”.  Simply stated, buyers have interest rate, payment and budgeting objections that they do not have when interest rates are low.  The solution to this problem is often to use buydowns to lower the buyer’s effective interest rate and mortgage payment and  help them qualify. 

A real estate agent or loan officer who has an excellent knowledge of how to use buydowns will be able to answer many of these buyer-related objections and help consummate the sale.  When a home buyer says, “I’d love to buy that house, but the payment or interest rate is too high”, you should be able to say, “What payment or interest rate would you like?  I’ll try to get you there.”  Showing the buyer lower priced homes with fewer amenities is rarely a sufficient answer.  An understanding of how buydowns lower the interest rate and the mortgage payment can help all involved.  So here are the basics:

 Lenders do not care what the interest rate is or how many discount points are charged to the borrower.  They care what the combination of interest rate and discount points equals or yields.  The total of the two is referred to as the yield. 

On a 30-year fixed-rate mortgage, which is the standard loan most borrowers seek on home purchases, each discount point paid has a value of .25% interest.  (A discount point  is 1% of the loan amount, or $l,000 on a $100,000 mortgage loan.)  Since each discount point paid to the lender in cash has a value of .25% interest, 4 points paid lowers the interest rate 1% over the 30 year term. 

 The buyer should be aware that when he makes an offer to buy, he is allowed to ask the seller for an amount which is considered to be a seller concession.  This amount will depend on the type of loan the buyer is obtaining.  It only takes 4 discount points to lower the interest rate one full percent on a 30-year fixed-rate loan.  Six discount points would lower the rate 1.5%.  With an interest rate of 6% and the seller paying 6 discount points the buyer would actually get 4.5% fixed for 30 years.  It is a whole lot easier for the buyer to pay 4.5% interest than 6% and the payments are substantially lower and easier to qualify for. The seller could offer these lower rates instead of lowering their price by up to 6%.  The seller would be getting full price and the buyer would receive lower interest rates.

 The most common form of buydowns employed by lenders nationwide are called interest rate buydowns.  These buydowns come in the two primary categories, permanent or temporary.  A permanent interest rate buydown would lower the buyers interest to a fixed amount for the entire loan period.  A common permanent interest rate buydown would be a 1% interest reduction for 30 years.  The lender would require the seller to pay them an amount equal to approximately 4-5% (4-5 points) of the loan amount in cash at closing.  In return, the lender would give the buyer an interest rate 1% below the market rate for 30 years.  A temporary interest rate buydown could be for 36 months and would be as follows:

                         3-2-1 TEMPORARY INTEREST RATE BUYDOWN (over 36 mo.)

      Note        7%/ $100,000 Loan     7%/ $100,000 Loan     Mo. Savings     Annual

     Year        Without Buydown       With 3-2-1 Buydown                            Savings

        1                    $666                      $477 at 4%              $189            $2,269

        2                    $666                      $537 at 5%              $129            $1,548

        3                    $666                      $600 at 6%              $  66            $  792

   4% after Yr 3         $666                      $666 at 7%                   0            $4,609        

Gross buydown amount required to be paid by seller at closing = $4,609 which is equal to 4.61 points.                                                                                                                                    

Note:  The above payments are for principal and interest only and have been rounded off for simplicity.                                                            

 Source: Elias/Skye

Apr. 22, 2008 - The Effects Of Green Features On House Values Today

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THE EFFECTS OF GREEN FEATURES ON HOUSE VALUES TODAY

Green building energy efficiency features are on the rise.  More homebuyers are elevating the value of these amenities to a preferred status.  Some see the hand writing on the wall in regard to water, electricity, heating and cooling.

Source:  Dr. Harold D. Hunt/Skye      

Apr. 14, 2008 - Why Use A Realtor?

real estate,buy,sell,house,home,realtor,agent,san antonio,market,relocating

WHY USE A REALTOR?

 This Spring has certainly brought out not only flowers, but also a lot of lookers into the real estate market.  Never before have so many questions been asked regarding the economy, the housing market and re-sale values, etc. 

Over and over, there is talk about real estate being "local" – national numbers don’t seem to make sense for a person who is buying or selling in a specific local market.  So what can you do?

 If you're thinking of selling, call your local professional REALTOR who is knowledgeable about the subdivision that you are interested in early in the thinking process.  REALTORS know what’s happening in your specific area and can tell you the real story on numbers of sales and days on the market. REALTORS can even give you specific advice on upgrading or staging your house to sell.  Pricing is the major element in a speedy sale and your REALTOR is the person who can help guide you.

Buyers also need to know the lay of the land.  While the national news might be screaming that it’s a “buyers’ market” – that’s not ALWAYS true.  Again, your local REALTOR can help you get the information you need in order to decide when and where you want to buy. There is a lot more to finalizing a successful purchase than just searching the internet and finding a home that looks good online. So, make sure you talk to a REALTOR who can help you complete the purchase and move right in! 

We are ALWAYS ready to help Buyers and Sellers achieve their dreams.  Contact us at: skye@txhomesearch.com. or go to www.txhomesearch.com 

Source: Combs/Skye        

Mar. 28, 2008 - Timely Tax Tips

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Here is some timely advice we would like to pass on from Kate Leonard, Senior Loan Officer with SWBC.  We enjoy working with Kate as she provides professional and efficient service to our buyers:

It's that time again...time to start gathering all of that dreaded documentation to send to good old Uncle Sam! Recent stats say the IRS audited 1 out of every 97 returns last year, so it pays to be careful. And even though this may seem like a very painful process, taking just a few simple steps right now will make your tax filing far easier and more accurate.

Keep it together. Make a quick list of all the documents or statements that were needed to complete your return last year--or call your tax planning professional for a checklist. Use this as a checklist to make sure you have a good start on the documents you may need this year. As you receive tax documents in the mail, grab your checklist, and mark the item as received. Then, keep all of the tax documents together in a large file or envelope marked "2007 TAXES."

Do the math. According to the IRS, the most common mistake on tax returns is bad math--from transposed numbers to downright incorrect data. And with one document leading to the other, those errors can make a huge impact. And even if you use tax software, you're not off the hook--since they only add the info YOU put in. Double-check entries carefully.

Every last cent. The IRS receives copies of your Form 1099 earnings each tax season. So, they know how much you make in interest and dividend income, and they will use that info to double-check your filing information. Make sure you collect all your earnings statements and document them on your return.

Sign on the line. It sounds almost silly, but forgetting to sign a return is actually a fairly common oversight. And the IRS won't process a return that doesn't have a signature. So, make sure you sign to avoid resubmitting your paperwork and possibly paying late-filing fees.

Remember, there isn't a lot of room for error when you're dealing with the IRS. A slight miscalculation could mean the difference between getting a return and writing a check--or worse, paying a penalty. It pays to work with a tax professional. If you need a referral, contact us—we’ll be happy to help!

Source:  SWBC/Leonard/Skye

Feb. 24, 2008 - Fruits from completion of Catching the Next Wave In the Corridor

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One of the Benefits of Catching the Next Wave in the Corridor!

Catching the next wave in the South Central Texas corridor (San Antonio-Austin-Temple-Belton, TX) will result in the employment of approximately 1,000,000 individuals.  This should be a major reason for moving ahead as rapidly as possible with the WAVE.  Many obstacles lie in the path to completion --such as funding, education and legislation.  A thousand mile journey begins with the first step!

Source: UT Austin iC2 Institute-Smithson/Adams/Stacy/Evans/Skye

Feb. 22, 2008 - What $330,000 buys in a subdivision in Southern California

real estate,buy,sell,house,home,realtor,agent,san antonio,market,relocating

What $330,000 buys in a Southern California subdivision

It buys a 3 bedroom, one bathroom, 988 square-foot house on a 2,500 square foot lot. 

" What a deal! Great opportunity for that handy investor, contractor or developer to transform this 988 sq. ft. fixer. It's located in a quiet neighborhood with many well cared-for and remodeled homes.  Near to stores, transportation and the freeway, someone with great imagination can have the deal of the year.  Included are washer, dryer and refrigerator.  The fireplace is red brick and is close to the dining area. Come see it!"  

Check out our website at: www.TxHomeSearch.com and see what $330,000 can buy you in San Antonio, Texas!!!  

Feb. 6, 2008 - Timely Tax Tips

Here is some timely advice we would like to pass on from Kate Leonard, Senior Loan Officer with SWBC.  We enjoy working with Kate as she provides professional and efficient service to our buyers:

It's that time again...time to start gathering all of that dreaded documentation to send to good old Uncle Sam! Recent stats say the IRS audited 1 out of every 97 returns last year, so it pays to be careful. And even though this may seem like a very painful process, taking just a few simple steps right now will make your tax filing far easier and more accurate.

Keep it together. Make a quick list of all the documents or statements that were needed to complete your return last year--or call your tax planning professional for a checklist. Use this as a checklist to make sure you have a good start on the documents you may need this year. As you receive tax documents in the mail, grab your checklist, and mark the item as received. Then, keep all of the tax documents together in a large file or envelope marked "2007 TAXES."

Do the math. According to the IRS, the most common mistake on tax returns is bad math--from transposed numbers to downright incorrect data. And with one document leading to the other, those errors can make a huge impact. And even if you use tax software, you're not off the hook--since they only add the info YOU put in. Double-check entries carefully.

Every last cent. The IRS receives copies of your Form 1099 earnings each tax season. So, they know how much you make in interest and dividend income, and they will use that info to double-check your filing information. Make sure you collect all your earnings statements and document them on your return.

Sign on the line. It sounds almost silly, but forgetting to sign a return is actually a fairly common oversight. And the IRS won't process a return that doesn't have a signature. So, make sure you sign to avoid resubmitting your paperwork and possibly paying late-filing fees.

Remember, there isn't a lot of room for error when you're dealing with the IRS. A slight miscalculation could mean the difference between getting a return and writing a check--or worse, paying a penalty. It pays to work with a tax professional. If you need a referral, contact us—we’ll be happy to help!

Source:  SWBC/Leonard/Skye

Feb. 4, 2008 - What's In Store for 2008

real estate,buy,sell,house,home,realtor,agent,san antonio,market,relocating

What's in Store for 2008?

Where we've been and where we're going

The recent housing cycle in Texas peaked in 2006, but the falloff has not been as rapid or as deep as in other states. Total sales volume declined, and homebuilders face an excess of unsold new homes. Nevertheless, home prices continued to climb and the months' inventory of unsold homes remained within the general guidelines of a "good" market.

The outlook for 2008 is for further reduction in sales volume and construction activity, with slower, but still positive, price gains. Barring any unforeseen calamities, the overall housing market in Texas should be much stronger than most other areas of the country.

Four major conditions will influence the Texas housing market for the rest of the decade:

1. General economic conditions: A major risk to the real estate market in 2008 is the prospect of a general economic recession. So far, employment and income trends in Texas favorably support housing demand.
2. Uncertainty in the capital and mortgage market: The period of "easy credit, easy terms" that fueled the recent housing cycle is over, but mortgage credit for qualified buyers (those with documentable jobs and income and savings for a down payment) is available and at historically attractive interest rates. The banks, investment funds and other capital market institutions are reeling over the lasting effects and default rates. Foreclosures will remain historically high throughout the year and may not decline until well into 2009.
3. Demographic trends: Texas continues to lead the nation in numerical population growth and in-migration. Growth over the next several decades will help keep the state's housing market moving forward despite short-term disruptions.
4. Housing affordability: The median home price in Texas is about two-thirds of the national median home price, which makes Texas the most affordable high growth state in the United States. The price of housing will be one of the strongest magnets for population and business growth in the state during the next 25 to 30 years.

San Antonio on a state level is duplicating what Texas is doing on a national level in regard to population growth, in-migration and housing affordability. San Antonio experienced an appreciation rate of approximately 7.48% from November 2006 through November 2007.

Total reported sales in 2007 declined a little more than 5%. Sales volume in 2008 is projected to fall another 5% as buyers (a) must meet stricter mortgage underwriting criteria, (b) marginal, sub-prime buyers are excluded from the market, and (c) the psychological impact of a national housing decline influences many to "wait and see".

The general trend toward a buyer's market is evidenced by the increase in inventory of unsold homes. Buyers should find bargains in 2008 especially in unsold new homes as builders move to reduce inventories. The statewide average and median home prices in 2008 is expected to grow slower than the long-term rate of increase but significantly better than the overall national experience. Predictions range from 2% to 3.5% increase in the average priced home in Texas. This increase will be constrained by sales of excess new-home inventory at lower prices and the number of foreclosed homes that will enter the market. Both conditions will influence not only the specific homes sold but also the surrounding neighborhoods.

The longer-term outlook, however, is most favorable. Population growth, affordable housing, available and affordable labor, and an attractive business climate will fuel future market increases and expansion.

Source: Texas REALTOR/First American CoreLogic/Skye

Dec. 28, 2007 - The Majestic & Charline McCombs Empire Theatres in San Antonio

Did you know . . .

The cost to renovate and expand The Majestic and The Charline McComb Empire Theatres was approximately $15 million.  Since re-opening on September 13, 1989, there have been approximately 3,831 performances with an approximate total attendance of 4,564,776 and the operating cost paid by taxpayers has been $0.00. 

Yes, that's right . . . zero taxpayer dollars.  We are enthusiastic theatre goers, and we love these two theatres!  We schedule our theatre attendance as appointments and truly experience the enjoyment these two establishments offer.  We like to leave the office about 4:00 to 5:00 p.m., go downtown and have dinner on the RiverWalk or in one of San Antonio's great downtown restaurants and then go to the show! Our favorite shows are the Broadway productions, and we have been season ticketholders of the the Broadway Series for many years. 

This is just another "Star of San Antonio" we like to promote and encourage you to give it a try, too.  If you do, we hope you enjoy it as much as we do.

Oct. 31, 2007 - Who Knows The Value of a Property?

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Who Knows The Value Of A Property . . . Appraiser or Seller?

Having a real estate appraisal background, we can relate to the above topic very well. The typical approach used by the appraiser to complete the job for the client in a professional manner is utilizing the Market Data Approach.

Choosing comparable properties from the immediate neighborhood gives the appraiser the strongest support for a sales price for the subject property provided there is sufficient similarity in the type of structure, construction material and square footage.

A buyer will have his own idea of what the property is worth to him and, if an appraisal is available for his review, might consider the appraised value as a gauge as to where he will start his offer. The appraised value reached by the appraiser might not be the sales price reached by the seller and buyer.

Once the offer is made, the seller has a starting point for negotiations over various points of the offer but especially the offered amount which may end up above or below the appraised value. In today's market, appraisals generally are done after negotiations are concluded at the request ot the buyer's lender. However, if lenders would accept all appraisals from all licensed appraisers (rather than only those done by appraisers who are lender staffed or lender approved), it could benefit all by having the appraisal done prior to the property ever going on the market.

Resource: Mary and Joe Skye, www.TxHomeSearch.com, E-mail: Skye@TxHomeSearch.com

Oct. 22, 2007 - Catching The Next Wave In The Corridor

The Information provided below is so important to all concerned in the San Antonio, Temple and Austin Corridor that it is being repeated on this blog to refresh and renew our efforts to move forward with the Wave Of Development.

CATCHING THE NEXT WAVE IN THE CORRIDOR

The following major recommendations for the San Antonio, Temple and Austin Corridor (the Corridor) were a result of The Corridor NanoBio Tech Summit of March 20, 2003 at Southwest Texas State University. These recommendations have been shortened somewhat for the sake of brevity.

I. Improved national priority alignment

a. Award of a Nanoscale Science and Engineering Center at UT.

b. There is an untapped opportunity in applications of nanotechnology to achieving national energy independence. The state as a whole has obvious strengths in energy and nanotech, while the Corridor can bring some value and unique assets to such an effort. Nanotech application to energy production is among the great challenges of the National Nanotechnology Initiative.

c. There are opportunities to exploit the Corridor's collective assets in Homeland Security and Preparedness that are just beginning to be tapped. Further coordination within the Corridor could yield greater opportunities.

II. Regional and state funding of these industries was found to be seriously lacking in comparison to other regions. In spite of fund shortages, it is believed that funding for this type of economic development is crucial to the economic future of the state.

III. These industries tend to be capital-intensive, particularly in the early stages of product development. It is recommended that lab and developmental space be made available to these industries, utilizing existing technology incubators in the Corridor as the means to leverage currently under-utilized capital resources with a view toward developing new resources. The primary or initial recommendation would be to make lab space available for early start-up efforts.

IV. Two key networks are recommended, one at the executive level and one at the technical working level, to facilitate inter-institution collaboration and cross pollination of the best technical thinking. Presently, there is no forum to gather the potential participants in the convergence industries for networking purposes. It is also highly desirable to build a connection between San Antonio and the statewide nanotechnology community.

V. In education, there is both a need to be met and an opportunity that needs to be taken advantage of. The need to be met is the growing requirement for more college graduates with technical backgrounds. It is recommended that the process of meeting this need start at the secondary school level, where interest in technology among students needs to be raised. The opportunity to be taken advantage of lies in the sweeping societal implications of nanotechnology and convergence. Federal funding is available for performing research in this area of interest in the schools located in the Corridor Area.

Source: UT Austin (iC2 Institute-Smithson/Adams/Stacy/Evans)/Skye

Oct. 16, 2007 - Guide For Selecting A Home Inspector

GUIDE FOR SELECTING A HOME INSPECTOR

Source: Bernie Clark License#3042, Longhorn Home Inspection, Inc. 210-654-9426/Skye

Oct. 5, 2007 - High Gasoline Prices & Oversize Garages

real estate,buy,sell,house,home,realtor,agent,san antonio,market,relocatingAttachment:

DESPITE HIGH GAS PRICES, MORE BUYERS WANT OVERSIZED GARAGES

Home buyers in increasing numbers want garages with two or more spaces in their homes. Since the last survey taken regarding this item in 2004 by the National Association of REALTORS, oversize garages saw the biggest growth in terms of what recent buyers considered very important in a home, gaining 16 percentage points to 57%. In the 2007 Profile of Buyers' Home Feature Preferences, among buyers who purchased homes without this feature, 56% of them said they would have paid more for an oversize garage, compared to only 6% in the 2004 survey.

Hardwood floors and granite countertops each gained 7 percentage points, with 28% and 23%, respectively, of buyers viewing these features as "very important". Gaining 6 percentage points was cable/satellite TV-ready, at 46%.

Energy efficiency was more important to new-home buyers than buyers of existing homes, with 65% of new-home buyers saying it was very important compared to 39% of buyers of existing homes. Older buyers placed a higher priority on energy efficiency than did younger buyers.

From 2004 to 2006, the size of the typical home purchased increased by about 100 sqf to 1,840 sqf while the median number of bedrooms dropped from four to three during the same period. The median home age reported in the current survey is 12 years, down from 15 years in 2004.

More than half of home buyers believe their home has high investment potential, and another four out of ten believe it has moderate investment potential. Only 3% felt their home's investment potential was low. Six out of ten recent home buyers took on remodeling or home improvement projects within three months of their purchase. Close to half of home buyers who remodeled or made improvements updated their kitchen, and nearly half remodeled or improved a bathroom. New homeowners spent a median of $4,350 on home improvement or remodeling projects undertaken within three months of purchase.

"The fact that a majority of home buyers quickly remodel key areas of their homes ties into the fact that their home is a good, long-term investment," said Paul Bishop, NAR manager of real estate research. "Regardless of market conditions in the short term, when purchased for the long term, housing is one of the safest investments consumers can make."

Source: NAR, Skye

Sep. 25, 2007 - 13731 Chisom Creek in College Park Adjacent to UTSA

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13731 Chisom Creek in College Park

This extraordinary one-story ready for quick occupancy home can be yours.  This is a comfortable 3 bedroom/2 bath home with a living area that features high ceilings, a striking brick fireplace, a large atrium and deck.  The overall condition is great.  The property is located near UTSA, USAA, Med. Ctr, and La Cantera.  Give us or your real estate agent a call and check it out.    

Contact us about this property which is located in the University of Texas at San Antonio neighborhood.  UTSA is continually expanding and adding value to the surrounding residential neighborhoods.  The appreciation rate will continue to be positive in this area.  One can drive through and around College Park and feel and see the potential for expansion and increase in land value.

Sep. 22, 2007 - Good News For VA Buyers

Good News For VA Buyers

Ginnie Mae has eliminated the VA loan limit effective immediately.  This will allow more veterans to utilize their VA benefits and obtain affordable homeownership.  The previous limit was $417,000.  Please note that Ginnie Mae still requires that the amount of the veteran's available VA guaranty plus the borrower's down payment must be at least 25% of the lesser of the purchase price or the appraised value.  VA has not changed the veteran's maximum guaranty of $104,250 (first time use).  Therefore, if the veteran does not provide a down payment, the maximum loan for the veteran would still be $417,000.  This is how it will work: Sales price of $650,000 divided by 4 = $162,500 (this amount should be covered with the maximum guaranty of $104,250); which would leave a down payment of $58,250.  This would be a 91% loan to value ratio approximately.

Source: CTX Mortgage/Bailey/Skye  

Sep. 20, 2007 - A Good Day For Housing

A Good Day For Housing!

Today is a good day for housing, noted the National Association of Realtors.  On the same day that the Federal Reserve cut the discount rate by half a percentage point, the U.S. House of Representatives has passed the Expanding American Homeownership Act of 2007, H.R. 1852.  The legislation will offer home buyers a safer alternative to risky mortgage  products and help many homeowners who may be facing foreclosure, and the combination of efforts could have a positive impact on the housing market and consumer confidence.

While some homeowners are faced with mortgage payments they can no longer afford as their adjustable subprime loans reset, a reformed FHA is positioned to offer borrowers a safer mortgage alternative and help bring stability to local markets and local economies.

As the leading advocate for expanding homeownership opportunities, NAR has long supported FHA modernization legislation that increases loan limits, eliminates the statutory 3 percent minimum cash down payment, and gives FHA the flexibility to provide risk-based pricing.  NAR also supports the continued availability of FHA loss mitigation programs.  We are pleased that this bill contains all of these important enhancements.

FHA's loss mitigation program includes mortgage modifications, allowing borrowers to change the terms of their mortgage so that they can afford to stay in their home.  The program also offers "partial claim" programs in which FHA lends the borrower money to cure the loan default.  This no-interest loan is not due until the property is sold or paid off.

Eliminating the 3 percent minimum down payment will help many buyers into homes, as will increasing FHA-insured mortgage loan limits, which will help first-time home buyers, minority buyers and others who cannot qualify for conventional mortgages.  People who live in high-cost areas will benefit as well, since low limits currently preclude many of these buyers from using FHA-insured mortgages.

Source: NAR/Skye   

Sep. 18, 2007 - Why Do Some Houses Sell Quicker Than Others?

Why Do Some Homes Sell Quicker Than Others?

They are priced right.  Pricing is usually the number one determinant as to how long a home will be on the market.  Obviously, the property has to be priced competitively, but do not set the price based upon what you heard a neighbor received for their home. Adjacent homes can be radically different. They both may have the same floor plans, but improvements, a more desirable location in the neighborhood and other seemingly small variations can make a significant difference when it comes to price. Also, how a home is staged for the market carries a great deal of weight in the ultimate price received.

 In considering the right price, one of the most important traits you need is objectivity.  Homeowners, naturally, have an emotional attachment to their home, and because of their feelings they oftentimes overestimate what their home is worth.  Despite the attachment, try to be practical and logical. Make a competitive study of recent sales that are comparable to your home. Evaluate price per square foot, age, condition and location.  Also functional obsolescence and major updating could have a great impact upon pricing. 

Remember, that the value of your home can be impacted by developments that are not yet in place.  Is there vacant land nearby? If so, what businesses or structures will be erected there in the future? Is it a desirable addition to the neighborhood? If there is vacant land, visit the local planning and zoning commission to see what might be built. You can always call a local real estate professional who knows your neighborhood to explain the elements that go into pricing and why.  Ask that person about a CMA (comparative market analysis) and what it means. 

Source:  Mitchener/Skye

May. 11, 2007 - CREDIT SCORE INFORMATION

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Here is info provided to us from a mortgage  broker acquaintance regarding credit scoring which we found interesting and perhaps you will, too:

Credit and credit scores are something that everyone asks about.  Here's some information that can shed light on what makes up the score.

Credit shows the borrower's character and his willingness to pay his debts. The benchmark for conventional loans is 620.  The score is based on 5 factors which predict the likelihood that the borrower will have a 90 day late payment.

• 35% of the score is based on late payments of 30 days on any account.  If the borrower has a late payment in the last 0-6 months it is a hard, hard hit to the score.  7 to 23 months is a hard hit, 24 to 36 months is a minor hit.  A late payment would have to be 3 years old before it stops affecting the score.
• 30% of the score is based on the high credit/balance for revolving debts only.  If the borrower owes more than 50% of his available credit, this is a high impact.  In addition, if the borrower has recently added several new debts, it will be counted negatively as those accounts have not had a chance to perform.
• 15% of the score is based on the credit type.  This means the difference between bank and finance company financing.
• 10% of the score is based on the borrower's credit history.  This means the length of time the borrower has had credit.  We should not advise our clients to close old accounts.  Closed accounts no longer report -- paid accounts report to the bureau and therefore help to increase the scores.
• 10% of the score is based on inquiries.  It is common for the borrower to have between 5-7 inquiries in a 12-month time frame.  Anything over this can affect the score between 5-15 points. However, a borrower can have an infinite number of mortgage inquiries in a 30-day period and the score will not be affected.  

National Distribution of FICO Scores

   800+........................................... 13%
   750-799 .................................. 27%
   700-749 .................................. 18%
   650-699 .................................. 15%
   600-649 .................................. 12%
   550-599 ..................................   8%
   500-549 ..................................   5%
   under 499 ...............................   2%

Source:  SWBC Mortgage Corporation/K Leonard/Skye