• Nov. 6, 2009 - Tax Credit Extended --See Changes!
As you have probably heard by now, the tax credit has been officially approved! The President signed a bill this morning that extends the $8,000 tax credit for first time homebuyers as well as opens up an opportunity for current homeowners to get their hands on up to $6,500. Here’s the highlights:
Two Ways to Qualify for the Tax Credit
First-Time Homebuyers (FTHBs): First-time homebuyers (a person who has not owned a home for the last 3 years) may be eligible for the tax credit. The credit for FTHB’s is 10% of the purchase price of the home, with a maximum available credit of $8,000. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five years during the last eight years. Again, single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
What are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
Higher Income Caps
The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. The previous tax credit limited this income to $75,000. Those who earn more than this cap can receive a partial credit. Joint filers who earn up to $225,000 are eligible for the total credit amount. Previously the income limit for married couples was $150,000. Those who earn more than this cap can receive a partial credit.
Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sale price of $800,000. The previous tax credit had no limit on the purchase price of a home.
If you have any questions about the tax credit or any other pieces of this legislation, please don’t hesitate to call or e-mail me. As always, my team will be available this weekend for any pre-approvals you might need. On a side note, Jeremy and I attended “The Future of Short Sales and the Arizona Economy” presentation this morning at the Phoenix Association of Realtors. There was a ton of great information so I will be putting our notes together to send your way in the next few days. |
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• Sep. 29, 2009 - Kirkland Market August 2009
• Sep. 28, 2009 - Interest Rates and the Federal Reserve Decision
We have seen a steady decrease in the interest rates these past few weeks. Today they hit the mid 4%'s --we haven't seen that for months! Obviously credit and the homes value play significant roles today, but if you are wanting to take advantage of these great rates --call me at 425.503.8862 or send me an email at lgoulden@comcast.net
"BE WILLING TO MAKE DECISIONS." General George Patton. And that's exactly what the Fed did last week at their regularly scheduled Federal Open Market Committee meeting. But just what did they decide...and what do their decisions mean for home loan rates?
The Fed said they are going to ration out the remaining commitment of Mortgage Backed Security purchases through the first quarter of 2010. There will be no additional buying, but instead, a longer weaning off of the program. There was some speculation about the Fed increasing the amount of buying above the $1.25T committed to, and last week's statement is the Fed's nice way of saying "no." They will not be buying more in quantity, but what they will do is attempt to provide a smoother transition to normal market conditions.
It is a given that once the Fed ceases its purchases, that interest rates will climb significantly higher...most likely back above the 6% area. So instead of a hard transition with a large bump in rates, the Fed is attempting to allow rates to gradually rise. This means that waiting to purchase or refinance will very likely mean a higher interest rate.
Their decision also means that the Fed's remaining purchases will all be lower in quantity, as the remaining allotment for purchases will be spread over a longer period of time - and additionally, will not necessarily be spread out as evenly as their past purchases - which could lead to more volatility for rates in the near term.
In other news, Existing Home Sales and New Home Sales were reported slightly less than expected, but both reports continue to show signs of an improving housing market. The inventory of unsold existing homes fell to its lowest inventory level since April 2007, while the inventory of unsold new homes dropped to its lowest level since January 2007. While some of the decline in new home inventory may be due to builders constructing fewer homes - these reports indicate that the housing market is indeed showing signs of life.
Remember, with home loan rates still low - but slated to increase with the Fed's recent decision - as well as a juicy tax credit for First Time Home Buyers that is going to expire on November 30th, it makes sense to get off the fence if you've been considering a purchase or refinance. Or do you have a family member, neighbor, friend or coworker who might benefit from getting some good home loan advice? I'm always glad to get your referrals, so simply let me know who I might be able to help. |
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• Sep. 25, 2009 - VW Credit and Audi
I have always tried to keep these real estate related, however Audi financial (aka VW credit) is a SHAM! They are the biggest crooks in the automobile industry and everyone needs to be warned the next time they look at Audi when they want to lease a car.
I have been leasing cars for over 10 years and I have never gone through this before. I think they are the most dishonest company I have ever dealt with. When I turned in my Audi TT it has brand new tires and nearly 20,000 under the contracted miles. The car was in perfect condition. The inspector Audi/VW Credit sends over must be paid from Audi to create items so they can make a couple extra bucks. The vehicle has a minor chip in the windshield (could barely see it) and a tiny scrape on the wheel. They tried to collect $300 for this!! They are criminal in my minds and I am taking this matter up with the BBB.
Don't buy Audi!!! They are Crooks!
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• Sep. 19, 2009 - Fall Market
THE FALL MARKET IS ALMOST HERE—AND IT LOOKS ROBUST!
As summer begins to wind down, new opportunities loom on the horizon. Home sales are on the rise, making opportunities for the autumn season ripe for the picking.
Have you been waiting for that elusive “bottom of the market”? Or have you been waiting for rates to fall further? If you’ve been contemplating a new home purchase for any reason, but haven’t moved forward yet, you’d better move fast. Buying now -- before the fall season hits high gear -- is your best bet for saving money in the long run.
Why do I think the fall market will be so strong?
1. Low interest rates.
Nobody thought interest rates would stay as low as they have for such a long period of time. And nobody knows when they’re going to start climbing again.
That’s why it’s critical to get into the market now. When activity soars, interest rates will go up—and you will have lost your chance to take advantage of today’s historically low rates.
2. Consumer confidence is on the rise.
From “For Sale” signs to newspaper listings to open houses, the indicators are everywhere—and they’re unmistakable. In communities all across Washington, real estate transactions are on the rise.
As a result, the market is becoming more crowded with buyers. With more people clamoring to buy, prices will rise. Once this cycle begins, today’s opportunities will evaporate.
3. Housing demand is high.
Immigration, a strong job market, and scenic beauty keep Washington in the forefront of places to live in America. Housing demand remains steady for the industry leaders who live, work, and thrive here.
This means more competition for you as a home buyer. This is why it’s so important to get into the market before everyone else does. Buying now offers you more choices and lower prices.
Combine all three factors and it’s plain to see that now is the time to buy—beforethe fall market has a chance to take off. For a free report on where the market is headed, just give me a call at 425-503-8862 or sense me an email at lgoulden@comcast.net. The report will show you that now is the time to buy. |
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• Aug. 31, 2009 - Interest rates cming down!
It has been awhile and I am really surprised that the rates are getting into the really attractive mid 4% again (depending on credit score)!! If you have been thinking of refinancing -- staying in your home for at least 5 more years -- call me and we will see what we can do to lower your payment. With low interest rates, it can also be a great time to buy that next home. Prices are truly unbelievable and matched with low rates = perfect time to sell and buy that "move-up" home you have always been dreaming of.
Who knows how long this will last! |
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• Aug. 28, 2009 - Tax Credit --time is running out!
As most of you know, the government $8000 tax creit for first time homebuyers in coming to an end soon. With interest rates at all time lows, home prices now affordable, and recent zero down programs entering the market again....now is the time to get your friends or family who have always dreamed of buying a home a chance to fullfill that dream. Have them call me! Technically they can get $8000 back when they buy a home.
$8,000 Home Buyer Tax Credit at a Glance
The information on this page pertains to the American Recovery and Reinvestment Act of 2009.
· The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
· The tax credit does not have to be repaid.
· The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
· The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
· Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. |
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• Jul. 24, 2009 - SOLID DATA SHOWS THE REAL ESTATE MARKET IS BEGINNING TO REBOUND
SOLID DATA SHOWS THE REAL ESTATE MARKET IS BEGINNING TO REBOUND
In their recently released “Sentiment Survey”, the Real Estate Roundtable announced that real estate experts from all around the country believe that market conditions are improving despite the current economy.
The Real Estate Roundtable is a widely respected association comprised of senior principals from America’s top public and privately owned real estate entities. These are executives and business leaders who head development companies, as well as lending and management firms.
The Roundtable is important because every quarter, they commission a “Sentiment Survey”. This is a survey conducted by the FPL Advisory Group, an unbiased third party hired to capture the opinions, thoughts, and perspectives of people who work in real estate every day.
Every question answered for the Sentiment Survey is a personal insight on what is seen and felt “in the field”. Such an approach makes the survey a very human barometer of what’s going on, with a “street level” methodology.
During the meeting for the second quarter of 2009, the Roundtable found that almost 60 percent of the survey’s 120 respondents fully believe that the real estate market will improve within a year. This surge of optimism is directly related to an uptick in the “Overall Q2 2009 Sentiment Index”.
The index, as opposed to the survey, is measured on a scale from 1-100. It combines data from recent quarters and derives an average. The current number for the second quarter of 2009 is 41. This is up from 38 in Q1, and 33 in Q4 of 2008.
The Sentiment Survey also indicated that 88 percent of respondents report loans being harder to get now than one year ago. However, a full 68 percent predict that one year from now loans will be much easier to get.
In essence, all these numbers indicate that consumer confidence is growing, and that confidence is fueling an improvement in market. The future is getting brighter—and there is now solid data to back it up.
For even more data about your local community and how it stacks up to the national numbers, give me a call at 425-503-8862. |
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• Jun. 15, 2009 - $8000 First time home buyer credit
$8,000 Home Buyer Tax Credit at a Glance
The information on this page pertains to the American Recovery and Reinvestment Act of 2009.
· The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
· The tax credit does not have to be repaid.
· The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
· The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. |
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• May. 15, 2009 - SMART SELLERS LISTEN WHEN THEIR REAL ESTATE AGENT SPEAKS
SMART SELLERS LISTEN WHEN THEIR REAL ESTATE AGENT SPEAKS
Sellers often become defensive or insulted when a real estate makes recommendations for changes prior to putting their home on the market. If you find yourself working with an agent who wants you to make changes, consider yourself fortunate. He or she could be worth thousands of dollars to you.
Real estate agents walk through hundreds of homes every year. They know what works and what doesn’t. If they see something that will be a deterrent to you getting as much money as possible, it is their responsibility to suggest that you make a change or improvement.
This is by no means a reflection on your personal taste. It’s simply a professional’s opinion, based on years of experience. A good real estate agent knows what gets a buyer emotionally charged when walking in the door.
Here are some of the most common recommendations real estate agents make:
1. “Spruce up your curb.”
Curb appeal is so important. Any seller who doesn’t take a good hard look at the first impression a home makes when a stranger first pulls into the driveway is throwing away thousands of dollars. You need to get your yard in tip-top shape.
This may mean adding some “beauty bark”, trimming hedges, sweeping the front porch and sidewalks, mowing the lawn, and adding flowering plants and shrubs. A well-manicured yard puts money in your pocket.
2. “Change the entryway.”
When you first open the door, what do you see? What impact does your home present to the buyer at the first step inside? Your real estate agent may tell you to improve the entry area by removing some furniture, or by adding something that may not match your taste.
Don’t be offended. First impressions count. You want your home to make the buyer say “Wow!” as they walk in the door. Your real estate agent is an expert on how to do this.
3. “Buy some heavy-duty odor neutralizer.”
If you have a dog or cat, you may not even realize that your home has pet odors. You’ve become conditioned to them over time, but when a non-pet owner walks in they may be repulsed by the smell. Again, this is not intended as an insult. It’s just a fact of life that a good real estate agent will point out to you.
The same goes for mildew, rotting wood, or other odors that you may have grown accustomed to over the years. Listen to your real estate agent if he or she tells you there is an odor that needs to be negated.
4. “Get rid of the clutter.”
Clutter is another big mistake in terms of impact. You may have collections of trinkets or fancy decorations that your real estate agent tells you to put away. Less is more, so the sparser you can make your home, the better. A cluttered home definitely has a negative effect on buyers when they walk in the door.
5. “Redecorate and shine up your bathroom.”
If there’s one area to which you want to pay particular attention, it’s the bathroom. Make sure it’s perfect. Caulk all your tiles. Clean your toilet daily. Shine the floor.
This one room can make or break a sale. If a real estate agent tells you that you need new towels, he or she knows. Just do whatever it takes to get top dollar for your home without being insulted.
A good real estate agent isn’t afraid to tell you the truth, so don’t be afraid of hearing it. If you want top dollar for your property it’s in your best interest to do what your agent suggests.
For a free evaluation of areas that may need improvement to sell your home, give me a call at 425-503-8862 or email me at lgoulden@comcast.net. I know exactly how to present your home to help you get top dollar when you sell. |
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• May. 4, 2009 - CONQUERING FEAR IN TODAY’S REAL ESTATE MARKET
CONQUERING FEAR IN TODAY’S REAL ESTATE MARKET
If there’s one thing everybody shares in today’s real estate market, it’s fear. Fear of not being able to sell a home. Fear of buying at the wrong time. Fear of overpaying. And the list goes on.
Rampant fear, however, is a key factor in keeping the real estate market depressed. If more people got over their fear and took action, the market would recover more quickly. The problem is that most people do not have the correct research to help them understand that now is a great time to buy and sell—one of the best ever, in fact.
Record-low interest rates -- combined with record-high inventory -- create a “perfect storm” of opportunity for buyers, offering opportunities that didn’t exist two years ago. Incredible bargains and plentiful choices abound.
However, most buyers are still sitting on the fence because they’re fearful that the market will go down further and they’ll miss out on even more savings. The problem with this thinking is that as time goes by, more and more competition will arise. Right now, there is much less competition than there will be in the near future—meaning that if you wait, there is less chance you will get the home you want.
Yes, there may (or may not) be a savings of a few more dollars down the road. If you’re a buyer, are you willing to take a chance on missing the abundant choice and low rates right now in favor of a potential future savings that may never materialize?
Sellers are fearful too. They are desperately concerned that their house won’t sell due to excess inventory. The answer is the same: take action. There are measures you can implement right now to make your property stand out from the competition.
A prime example would be a “Reverse Purchase and Sale Agreement”. This is when you draft a contract and make an offer to a buyer, instead of waiting for them to make an offer to you. As the market changes, this has developed into a viable and successful way of getting your home sold.
One simple – and successful – tactic is an adjustment in your asking price. While this is an obvious solution, many people are holding on to prices that are simply not supported by the current market. If you’re serious about selling, then you need to get real and meet the market at today’s prices.
Fear is everywhere, but the cure is action. Once you put your buying or selling plans into action, you not only can take advantage of amazing deals waiting for you right now, but also you help bring the economy back to life.
Want to know more about Reverse Purchase and Sale agreements? Want solid numbers on where the market is today so you can take the best action? Just give me a call at 425-503-8862 or email me at lgoulden@comcast.net |
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• Apr. 18, 2009 - Reasons to buy...NOW
8 REASONS TO INVEST IN REAL ESTATE RIGHT NOW
With all the tumult on Wall Street and in real estate, the average person may surmise that investing in real estate right now is a risky idea. Nothing could be further from the truth! A combination of factors make right now one of the best times in history to invest in real estate.
Here are eight reasons why:
1. Low interest rates. Rates are not just low – they are historically low. Never in history have investors been able to get this much borrowing power for their money.
2. Median home prices are down. Tumbling values spell disaster for some, but translate into bargains for investors. It’s not unheard of right now for a property to sell at 20%-50% less than the current appraised value.
3. Foreclosures are up. An even worse disaster for some, unfortunately. However, investors understand that by getting a deal on a foreclosure, they’re helping other people to find good housing—while making a tidy profit for themselves and putting money back into the economy.
4. Inventory is high. As an investor, you have choices galore. Because there are so many properties available, you can pick and choose from multiple offerings.
5. Banks are itching to lend. Contrary to conventional wisdom, lenders are starved for reputable borrowers with sound investment plans. If you know what you’re doing and have a good track record, money is waiting for you.
6. Poor consumer confidence. While not healthy for the market in general, a large number of terrified consumers means less competition for the investor.
7. Real estate agents are going the extra mile for investors. In today’s economy, real estate agents know they have to work harder and smarter. They’re getting more creative because with fewer transactions, they need to provide more to clients. They will help you find the right investment property with service that you wouldn’t have experienced two years ago.
8. The USA is built on property ownership. Real estate has been a powerful money-making tool since the first settlers landed on the shores of the New World. Property ownership as a source of wealth has survived numerous wars and depressions before. This one is no different. Real estate will always be a strong American investment.
Here’s the bottom line: Now is the time. Get out there and grab the investment deals while they last. By doing so you’re not only building your own wealth, but helping the economy to recover.
Want to see some of the amazing investment offerings on the market right now? Just give me a call at 425-503-8862 or email me at lgoulden@comcast.net. There are amazing opportunities…right now! |
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• Apr. 9, 2009 - Whats ahead in 2009
WHAT’S AHEAD FOR REAL ESTATE IN 2009
I think 2009 will be a year of recovery and stabilization for the real estate industry. Here are my 15 top predictions for 2009:
1. Mortgage rates will drop, then rise, and finally stabilize
• Rates will be at a historical low in the first part of the year
• Rates will go up in early spring
• Rates will level off after the first half of the year
2. Investors will come back into the market in 2009
• The Federal Reserve plans to pump up the housing sector by buying up to 100 billion dollars worth of bonds issued by Fannie Mae and Freddie Mac
• The Fed will also buy ½ trillion dollars of mortgage-backed securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae
3. Buyers will jump off the fence and come back into the market
• With fixed rates in the mid-fives -- combined with pricing at 2003 and 2004 levels -- it is an excellent time to buy. Buyers will finally jump off the fence and back into the market
4. Sellers will become creative with alternative ways to add value to their home sale with incentives such as:
• Interest rate buy-downs
• Seller financing
• Other incentives
5. Listing Inventory will go down as the market absorbs inventory
· Nationally, listing inventory is down about 4.5% from the same time in 2008, Coupled with lower interest rates and higher investor confidence, this consumption of inventory will continue.
6. Market time will decline and remain on the lower end of the spectrum
• Days-on-market numbers will go down in 2009 due to a lack of new home inventory coming on the market
• With investors and buyers coming back into the market, the days-on-market numbers will level off and then start to decline in early spring
7. Real Estate agents will leave the industry in record numbers
• Real estate agents that were not prepared for the 2008 market will continue to leave the real estate industry in record numbers
• Agents who remain will go back to basics to exist – then thrive -- in the current market
8. Builders will use auctions to sell off inventory; m any will leave the business entirely
• Builders will turn to auctions to liquidate remaining properties
• Builders will leave the industry due to financial pressures from the lack of 2008 sales
• New construction will virtually grind to a halt as builders are unable to develop new product as a result of excess inventory / poor sales in 2008
9. New home inventories will reach record low numbers in the fall of 2009
• Many builders stopped buying land in 2008, and will therefore be unable to build in 2009
• Builders stopped building in 2008 and concentrated on selling standing inventory. As a result, they were not building new inventory. This will lead to an inventory shortage in 2009.
• Existing new home inventory will be absorbed by the fall of 2009.
10. Consumer confidence will improve in the spring of 2009
• Consumer confidence will improve in the spring of 2009, and buyers jump back into the market…carefully.
• Consumers will look to real estate agents for guidance in buying and selling.
11. Appreciation will be small to nonexistent in most markets as the industry stabilizes
• Most markets across the country will see little or no appreciation while the market stabilizes and inventory gets absorbed by the market.
• Some markets will continue to see their markets decline into the second half of 2009 as inventory levels stabilize
12. The rental market will BOOM IN 2009
• It’s estimated that almost 2 million homes will be foreclosed on in 2009. This will transform many former homeowners into tenants.
• Banks will rent their real estate owned properties rather than sell at a substantial loss.
• Tighter credit criteria will force potential buyers to renew their current leases after they are turned down for a mortgage.
• Consumer fear and an uncertain employment picture will keep would-be, credit- worthy buyers on the sidelines, leading to reduced turnover in rental housing.
• Americans who have realized a loss by recent homeownership will decide that ownership is not worth the risk and trouble. They will sign a rental lease and happily return to rental living.
13. “In demand” homes will become the “safe necessity” of 2009
• Smaller, green-built, and energy efficient homes will be in big demand.
• Home with a good location in relation to work and school will be in demand.
• Homes in the mid-range of price for their market will be in demand as more homebuyers become more frugal.
14. Real estate companies will merge in 2009
• Smaller real estate companies will merge with larger companies to make it through the market downturn.
• Competition in the industry will shrink as the number of companies and the numbers of agents is reduced.
15. Second home markets will see far less activity; many will suffer in 2009
• Second home markets in many markets will suffer due to the financial losses owners of second homes experienced as their stock portfolios, pensions, or other investments devalued and deteriorated.
• Second home markets will suffer due to consumers’ need to relocate assets and financial priorities.
While we will see adjustments in 2009, it’s sure to be a much better year than 2008. |
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• Apr. 8, 2009 - Home Warranty
WHY HOME WARRANTIES ARE A GREAT IDEA
When it comes to feeling comfortable about buying a home, a warranty can be just what a potential buyer needs. Who wouldn’t feel better about having the components of a home guaranteed for a period of time?
Home warranties have become more popular in recent years because they are advantageous to both buyers and sellers alike.
For sellers, a home warranty increases the perceived value of their home by providing an extra incentive. For buyers, a home warranty purchases a little extra peace of mind.
Home warranties fall into four categories. The first three warranties apply specifically to new construction; the fourth is pertinent to previously owned homes:
1. The statutory warranty. This one is required by law. Some states mandate that builders provide this level of protection to home buyers. These warranties can range from one to ten years, and usually cover any structural defects pertaining to the construction of the home.
2. The express warranty. This is a warranty provided by the builder even though not required by law. This can include the quality of finishing on the home and/or some components (such as electrical or heating).
3. The implied warranty. This is a warranty that is not stated explicitly by the seller, but is presumed. For example, a home would be assumed to be fit for habitation under an implied warranty. Also covered under an implied warranty would be the fact that the home was constructed in a commercially reasonable manner.
4. After-market warranty. After-market warranties are typically provided by an independent third party. Covered items vary widely on these types of warranties, so it’s a good idea to carefully review the warranty to be sure you’re receiving the coverage you need. In many cases, after-market warranties can be created from an “a la carte” menu, allowing you to select the coverage most important to you.
When examining any home warranty, check for what’s covered and what’s not. Be clear on the exact resolution process when a problem arises. You’ll find this information in the clause pertaining to warranty disputes.
Also, determine whether the warranty is transferred with the home or with the owner. It’s always helpful if it stays with the home so that you can offer it yourself if you ever decide to sell.
Regardless of the type of warranty, there’s no doubt that they are an excellent tool to build trust and comfort between buyers and sellers.
For more of the nitty-gritty details on home warranties, call me @ 425-503-8862. You can also email me lgoulden@comcast.net or visit my website www.LeslieGoulden.com. |
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• Mar. 31, 2009 - Signs of Life
CNN –Anderson Cooper
I was watching CNN today and finally some good news! The stock market showed signs of life. This is usually the beginning of signs that the job market and the real estate market are soon going to also see positive signs. The Stock Market is the barometer. It’s a little early to tell, but the Obama administration is starting to make some changes in our economy!
The regulations by the government are definitely needed and Obama is firm. Obama is cracking down on Wall Street and the corruption that has gone on for too long. There are signs of hope. We are seeing improvement. March 9th was the definite low. But those days are over and we need to start building the wealth in the US. The Stimulus Package was the beginning of better days. This added billions of dollars in the marketplace and slowly has given a pulse in the real estate industry. The $8000 first time homebuyer tax credit, record breaking interest rates and great housing deals = Time to BUY!
Once we continue to see improvement, the fear will go away.
I was just happy to hear some positive news. The phones are ringing and buyers are finally realizing now is the time to buy. Hopefully buyers won’t wait too long or we will all find ourselves in bidding wars for the bottom basement prices we are seeing in the Greater Puget Sound Real Estate Market.
Leslie Goulden
Realtor®
Windermere Kirkland
425-503-8862
LeslieGoulden.com |
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• Mar. 31, 2009 - WHAT YOU NEED TO KNOW ABOUT MAKING AN OFFER
WHAT YOU NEED TO KNOW ABOUT MAKING AN OFFER
If you’re ready to make an offer on a home you want to buy, here are some important factors to keep in mind:
1. The only way to win is to negotiate.
You’d probably like to avoid negotiation and just have your first offer accepted. However, the reality of buying and selling real estate is that there will be some negotiation along the way.
Many buyers believe they can make a lowball offer, beat the seller at the game, and then just walk away. All this does is set up a backfire situation. The seller is usually so insulted by your offer that he or she won’t even consider a second offer.
The solution to this problem is what I call “win/win negotiating”. This is a style of negotiation that ensures all parties benefit from the transaction. This means that before writing the offer, you put yourself squarely in the shoes of the seller. Ask yourself this question:
“If you were selling, what offer would make you really happy?”
For example, pretend you have a home on the market listed at $300,000. You would be happy if somebody paid you exactly what you’re asking, but that probably will not happen.
Ask yourself what offer you would be willing to accept. Then, ask yourself what offer you would be willing to think about. Finally, ask yourself what offer would make you downright mad. Put yourself in the position of the buyer.
And never say, “That’s my final offer.” All that does is infuriate the buyer and close all doors of communication.
2. Think about the conditions and terms on which you might be willing to compromise.
Never sit down to write an offer while being inflexible. Be a palm tree, not an oak tree. Sway in the wind a little.
On what parts of this contract could you be flexible? If it’s not price, maybe it’s something else. Perhaps the closing date is negotiable. Perhaps some of the included items are negotiable. Be open-minded if you ever expect to win in a negotiation.
3. Keep emotion out of the negotiation.
If there’s one truth to human decision-making, it’s that emotion plays a key role. To win, you need to keep it in check. Always be willing to walk away from a deal if you find your emotions are getting the best of you.
When you keep these simple rules in mind, your offer has a much higher likelihood of being accepted.
Please feel free to contact me at 425-503-8862. Email me: lgoulden@comcast.net
www.LeslieGoulden.com
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• Feb. 28, 2009 - 7 Factors for Buyers
7 FACTORS TO CONSIDER WHEN BUYING A HOME
Purchasing a property is one of the biggest decisions of your life. While people are often swayed by emotion—falling in love with a house at first sight—it’s prudent to take into consideration some other facts.
Here are some items to mull over before making that first down payment:
1. Location.
The old saying “location location location” still holds true. You can have a beautiful home on a perfectly landscaped lot that makes your heart sing—but if it’s not in a good location, then it’s not the right property for you.
2. Floor plan.
This is critical. Ask yourself, “Is this floor plan geared toward a certain type of family? Does that type fit my family and my future goals? Does this floor plan have the flexibility for an addition? Is the space open and well thought out?”
3. Landscaping.
A home doesn’t need to have perfect landscaping for you to buy it. But it should have the potential to be landscaped perfectly. Many people buy the home without paying much attention to the lot, ending up with problems selling it later because of poor potential.
4. Community amenities.
Have you driven to the grocery store from the property? You might want to, because it could surprise you how far away it is. You may want to be in a nice and quiet area, but do you really want a trip to the mall to be an expedition? If you do, great. If not, check it out.
5. Schools.
This is a top reason people select a particular community. The school district you select is very important—even if you don’t have children. You may want children someday. Or you might need to sell your home to a couple with children.
6. Proximity to major roads.
Again, do you want to be so far away from your work that you need to pack a lunch for the commute? True, living this far away from a job is common in certain areas of the country—but it doesn’t need to be the standard. Ask yourself, “Do I want to spend my off-hours at home or on the road?”
7. Price.
The biggie. It isn’t all about price, but price always influences our decisions. Never overpay because you’re overexcited. Never underpay just because you think you’ve found a great deal. Deals that seem too good to be true usually are.
When you thoughtfully analyze this list, you’ll be in a much better position to actually find the home of your dreams. Clear-headed thought trumps emotion every time. Think before you buy.
Want to know some of the biggest mistakes people make when buying a home? Just give me a call at (425) 503-8862 or send an email to lgoulden@comcast.net. I’ll clue you in on some horror stories so that you can avoid the same errors. |
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• Feb. 23, 2009 - Strict standards in lending
I saw this article in the Times over the weekend and I wanted to pass it on. Lenders are really cracking down on standards needed to obtain financing. There is some really useful information in this latest article.
Mortgages can be had, but stricter standards apply
By Mary Umberger
Chicago Tribune
CHICAGO — You don't have to be a rocket scientist to figure out how to get your mortgage application approved these days, but it wouldn't hurt.
That's because lending has sobered up since those halcyon days of the housing boom. Chastened by the nation's economic troubles apparently ignited by loosey-goosey lending standards, lenders these days ask a lot more questions of anyone seeking to buy a house.
"I had one guy say, 'What'll they want next — to know what color socks I'm wearing?' " said Donna Angarone, a mortgage rep with Countrywide Home Loans in Glenview, Ill.
"I felt really sorry," she said of her recent loan applicant. "I had to keep calling him and asking him for 'just one more thing' (to fill out his financial picture). And then they'd ask for something else."
But the good news, she said, was that the client dug into his file cabinet and eventually got his loan. And mortgage-industry representatives say that despite the sometimes-Byzantine path through the current lending environment, mortgages are out there to be had.
Better credit histories
"The first thing is, don't listen to the media making it sound like there's no money out there — there is money out there," said Paula Kurka, senior mortgage partner at Professional Mortgage Partners, a mortgage banker in Downers Grove, Ill.
Kurka and others say, however, that would-be borrowers today will need better credit histories and bigger down payments than just a few years ago — not to mention to be ready to run a paperwork obstacle course.
Know what to expect
"I know it's heresy, but you're going to have to prove you are the borrower you say you are," said Keith Gumbinger, vice president of HSH Associates, a mortgage-industry publisher in Pompton Plains, N.J. But, he and other mortgage experts say, forewarned is forearmed. Knowing what to expect before you apply — even before you go house-shopping — can save time and money.
Gumbinger says current market standards can be thought of as a "four-legged stool" for borrowers to stand upon. "The further outside you fall from these four tenets, the more closed the markets become," he said. They are:
1. Be a better borrower. You're likely to need at least 720 (on the 850-point FICO credit rating scale) to get access to today's best rates, he said. In yesteryear's marketplace, 620 was considered to be that threshold.
That doesn't mean you can't get a mortgage with a lower score — you'll just pay a higher rate for it.
2. Down payments are critical. Expect to put at least 10 percent down for so-called "conforming loans" — mainstream mortgages that Fannie Mae and Freddie Mac will purchase, Gumbinger said. This is a marked departure from widespread practices in the old days, which saw many loans with 0 percent to 5 percent down.
Lenders probably will require the borrower to pay for private mortgage insurance if they put down less than 20 percent. The amount of the insurance is based on the ratio of the loan to the value of the property and a handful of other factors, said Dan Green, a loan representative for Mobium Mortgage Group in Chicago.
Federal agencies offer low-down-payment alternatives that are soaring in popularity these days.
In these arrangements, the government doesn't lend the money, but it insures loans through the Federal Housing Administration or the Department of Veterans Affairs. For both, borrowers need to apply for loans through lenders that have met federal standards.
VA loans — for armed-forces veterans — allow qualified borrowers to finance 100 percent of the loan and don't charge for mortgage insurance. The FHA now requires a 3.5 percent down payment and charges a monthly premium for mortgage insurance, according to the National Association of Realtors. (Detailed information for both types of loans can be found at homeloans.va.gov and at www.hud.gov/buying/loans.cfm.)
3. Be a paper tiger. "Breathing on your application was once good enough" to qualify for a mortgage, said Gumbinger. But now, save your breath and patiently dig up every piece of paper — potentially more of them than you might have imagined — that can document your income and savings.
This will include W-2 forms and tax returns, but might also mean producing letters that explain specific financial circumstances. Lenders want to be reassured that you really can afford a home.
4. Lighten your debt load. Not long ago 55 percent was a mainline figure — that is, if your income was $1,000 a month, mortgage lenders might have allowed you to commit $550 to your mortgage and other debts, such as car loans and credit-card balances, Gumbinger said.
"That's been ratcheted back," he said. "Now we don't see much in excess of 43 percent."
Copyright © 2009 The Seattle Times Company
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• Feb. 20, 2009 - Fannie Mae loan fee increases
This is a really interesting article you may have seen in the LA Times. It is written by Ken Harney. Thought I would pass it on in case you haven't heard the news.
Fannie Mae, Freddie Mac are raising fees, toughening rules for credit scores and down payments
February 15, 2009
Reporting from Washington — It's not what home buyers, sellers and refinancers want to hear, but they need to know that Fannie Mae and Freddie Mac are increasing their mandatory fees and toughening credit score and down payment rules as of April 1.
Most major lenders already are pricing in the higher fees, effectively raising costs to consumers immediately.
Under Fannie's and Freddie's new guidelines, even applicants who assumed that their FICO scores would get them favorable rates will be charged more unless they can come up with down payments of 30% or higher. For example, a buyer with a FICO score of 699 who can bring a down payment of about 25% to the table will now get hit with a 1.5% "delivery" fee at closing under the new guidelines.
A buyer with a FICO score between 700 and 720 will pay an extra three-quarters of a point. Even someone with a 739 FICO -- once considered a platinum guarantee of the best rates available -- will get dinged with a quarter-point add-on.
Applicants who seek to buy a condominium and cannot come up with a 25% down payment will be hit with a three-quarter point add-on penalty, no matter how high their credit score, simply because they are not buying a traditional detached, stand-alone home.
Buyers of duplexes, in which one unit is owner-occupied and the other is rented, will be charged a flat 1% add-on from Fannie, even if they've got FICO scores above 800 and make 50% down payments. Refinancers who take cash out at settlement also will be forced to pay extra -- as much as three points if they've got low credit scores and modest equity stakes.
Both Fannie Mae and Freddie Mac say they are tacking on these fees to counter higher risks and losses associated with certain loan products, buyer equity stakes and credit scores. Declining home values in many parts of the country are intensifying losses for both companies when loans go to foreclosure.
Quasi-private enterprises until last September, Fannie and Freddie now are operating under the control of federal regulators and are bleeding billions of dollars of red ink.
Freddie spokesman Brad German said some of the loan categories and credit risk combinations targeted in the latest round of fees "default at four to eight times" the rate of other mortgages in the company's portfolio. "We have to manage these risks appropriately," he added, and that means pricing them based on the probability of higher losses.
But realty agents, mortgage bankers and brokers are incensed at the new round of fee increases, calling them counterproductive in an environment in which housing needs help, not new impediments. They have begun lobbying Congress and the two companies' federal overseers to scrap the latest add-ons.
Charles McMillan, president of the National Assn. of Realtors, complained in a letter to the Federal Housing Finance Agency, the regulator of Fannie and Freddie, that individual fee increases were not only unjustified but in combination they could also seriously deter home purchases. McMillan said "a borrower with a credit score of 670 making a 20% down payment for a condominium would have the fee raised from 150 basis points [1.5%] to 350 basis points [3.5%] -- more than double" under Fannie Mae's new schedule.
"They're shooting themselves in the foot," said Steve Stamets, a mortgage loan officer in Rockville, Md. With substantial down payments of 20% and more, Stamets said, "they don't need to be that tough" on applicants even if home prices decline slightly more before the cycle ends.
"When consumers with 720 credit scores are being adjusted, there is something seriously wrong with the system," said Harry H. Dinham, a Dallas mortgage company owner and former president of the National Assn. of Mortgage Brokers.
As recently as two years ago, FICO scores in the upper 600s were enough to qualify any applicant for prime financing. Now scores of 720 to 740 are the bare minimum if you're going to escape add-on fees -- and still not good enough if you choose to buy a condo or a duplex.
Where's all this headed? Absent congressional intervention or new marching orders from the companies' regulator, the add-on fees are here to stay. But there's an alternative readily available for just about anyone who wants to avoid the fees: FHA mortgages, where down payments go as low as 3.5% & credit scores are not an issue for most applicants.
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• Feb. 20, 2009 - Help is on the way!
HELP IS ON THE WAY FOR REAL ESTATE
The National Association of Realtors® (NAR) does more than just represent the interests of real estate agents nationwide. They are also a consumer rights advocate, as evidenced by the events surrounding a new bill introduced in the U.S. House of Representatives—a bill created to help more Americans achieve the dream of home ownership.
Interest rate buy-downs have long been a top priority of the NAR, and they are at the heart of H.R. 384--The TARP Reform and Accountability Act. Introduced by Representative Barney Frank (D-Mass.), the bill is intended to mandate a new program from the Treasury Department.
Using interest rate buy-downs, this program would increase demand for home purchases and lower property inventories by creating affordable mortgages for qualified buyers. If enacted, it will make life a lot easier for home buyers.
The NAR has been at the forefront of rebuilding the real estate market. They have been tirelessly urging the Obama administration to address critical housing needs by taking measures to encourage low interest rates, making permanent the 2008 conforming loan limits, and applying the $7,500 tax credit to all home buyers and make it non-repayable.
H.R. 384 is a big step in the right direction. If passed, it will also amend portions of the Emergency Economic Stabilization Act of 2008 by demanding more accountability, creating stronger measures to reduce foreclosures, and closing loopholes in the previous act.
NAR President Charles McMillan recently stated that, “by directing the Treasury Department to increase the availability of affordable mortgage rates for qualified home buyers and to offer reduced rate loans designed to stimulate demand for home purchases and clear inventory of properties, Chairman Frank has responded to the most critical issues facing potential homeowners.”
If you’ve been thinking about buying a home, but have been reluctant due to concerns about an uncertain economy, take heart. More importantly, take action! If this bill passes, a new chapter is about to begin.
Low interest rates, combined with sellers’ willingness to negotiate amazing deals, should make 2009 one of the best years ever to buy real estate.
For more information on what all this means to you, just give me a call at (425) 503-8862 or send an e-mail to lgoulden@comcast.net . I’ll be happy to explain it all to you in detail—and explain how you can apply current conditions to your own situation. |
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