Starting Your Search for a New Home

Getting preapproved for a home loan is the first step you should take before searching for a new home. If you haven’t already been pre-approved for a home loan, make sure you get pre-approved before searching for a home or contacting a real estate agent so you have an idea of what you can afford and what you should (or should not) be looking for.

Around 80% of all home searches begin on the Internet. Through all the resources available, homebuyers can conveniently search through hundreds of online listings, view virtual tours, and sort through dozens of photographs and street views of neighborhoods and homes. You’ve probably defined your goals and have a pretty good idea of the type of home you want. By the time you reach your real estate agent’s office, you are halfway to home ownership.

Good real estate agents will listen to your wants and needs and arrange to show you only those homes that fit your particular parameters. Your agent should preview homes before showing them to you as well. If you are a motivated buyer, it shouldn’t take too long for you to find your new home.

When rating the inventory of homes you are shown:

  • Bring a digital camera and begin each series of photos with a close-up of the house number to identify where each group of home photos start and end.
  • Your agent can provide you with a print out of the listing for you to make notes on. Ask for a listing print out for every home you view to help you stay organized.
  • Take notes of unusual features, colors, and design elements.
  • Pay attention to the home’s surroundings. What is next door? Do larger homes tower over your single story? What is the parking situation like if you want to have guests over? Does the neighborhood seem well kept?
  • Do you like the location? Is it near a park or a power plant?
  • Immediately after leaving, rate each home on a scale of 1 to 10, with 10 being the highest.

When you know how to start your search for a new home and you have a good agent to assist you, the home buying process should be enjoyable, and you can feel confident in your decision.

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Poll: 9 in 10 Americans Value Home Ownership

While nearly one-quarter of home owners owe more on their home than it’s currently worth, Americans still see the value in home ownership and still consider it part of the American dream.

Nearly nine in 10 Americans say home ownership is an important part of the American dream, according to the latest New York Times and CBS News poll conducted June 24-28 of 979 adults.

Overall, the majority of Americans polled also said the government should do more to help improve the housing market, and they mostly blame financial institutions for the sluggish housing market.

Here are some of the findings from the poll:

▪ 54 percent of those polled say the government should be doing more to improve the housing market. Only 16 percent say the government should be doing less. In fact, support for helping people who are facing financial distress from housing is higher than support for helping those who have been unemployed for several months.

▪ 53 percent say the government should help in providing financial assistance to those who are having trouble paying their mortgages.

▪ Nearly no one surveyed was in favor of discontinuing the mortgage interest tax deduction, which government leaders have been eyeing as part of budget cuts. (Learn more.)

▪ 42 percent of respondents blame lenders and 29 percent blame regulators for the housing crash.

▪ About 66 percent of Americans say strategic default — that is, when underwater home owners stop making payments on their mortgage even though they have the means to keep paying — is not justified. Nearly 30 percent of those surveyed say strategic default is justified.

TO VIEW MORE INFORMATION

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Top 5 Home Trends

Now that we’re halfway into 2011, what are the biggest home trends new homeowners are seeing this year?

 

1. McMansions are out.

 The era of the McMansion is over, according to the 2011 edition of “Emerging Trends in Real Estate,” co-published by PricewaterhouseCoopers and the Urban Land Institute. Baby boomers are scaling down to smaller, more manageable homes. Also, first-time homebuyers are buying smaller, more compact homes in walkable neighborhoods.

 Homebuyers are looking for more modest homes that accommodate a tighter budget and are more practical. According to the National Association of Home Builders, the median size of new U.S. homes fell from 2,277 square feet in 2007 to 2,135 square feet in 2009. 

 The problem? As the baby boomers downsize, who will buy their large, suburban homes?

 

2. Kitchens are in.

 The kitchen is the heart of the home.

 “Even as the footprint of new home construction shrinks, the size of the kitchen will not,” said Rebecca Kolls, senior director and consumer strategist of home and garden at Iconoculture. “It is the gathering place, and consumers will forego space elsewhere to keep their kitchens functional for everyone.”

 There is a growing trend in “invisible appliances” where the doors will blend with the cabinetry to create a unified kitchen decor.

 Although granite is still the number one choice for countertops, other interesting products like Butcher block tops, poured concrete, glass and aluminum are entering into some kitchens. Homeowners want products that reflect their individuality but still make their life easier.

 Multifunctional appliances are becoming increasingly popular. Kitchen carts that double as workspace and shelving and pullout faucets with different spray models are contributing to new, multifunctional kitchens.

 

3. Going Green isn’t going away.

 It’s not really a new trend, but going green is here to stay. You can make an impact on the environment – along with your utility bills – with a few simple switches, like replacing existing kitchen and bath fixtures with water-saving ones. Fixtures that have been certified to meet the Environmental Protection Agency’s (EPA) WaterSense® labeling criteria are the best bet, as they offer water-savings and provide superior performance. Buyers want better wall insulation, better insulated (higher “R value”) windows, better sealing duct work, low energy LED lighting, and Energy Star-rated appliances. Many builders are now offering energy-efficient homes as standard.

 

4. A little bit country.

 It’s not necessarily the country style from the 1980s with wallpapered farm animals in bonnets plastered all over your walls. In 2011, homeowners are going for a more casual, toned-down look. “Whitewash instead of pure white,” says Sarah Richardson, a Canadian designer and HGTV host. “Well-worn woods vs. exotic ones create a rustic elegance,” Richardson says, “and will stay around a while.” More barn-style wooden doors will make their way to basements, closets and bedrooms. They can save space or conceal a large area for privacy.

 

5. Scaled Down Bathrooms.

Just like big homes, big bathrooms with doorless showers and massive whirlpool tubs are losing steam.

 Many homebuilders aren’t even building large bathrooms anymore. People want more practical and functional bathrooms that take up less space – leaving more space for the kitchen and other living areas.

 Adding linen closets and more storage space to the bathrooms is also in.

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Fannie Mae Issues New Standards for Servicers

On Monday, Fannie Mae issued new standards for mortgage servicers related to the management of delinquent loans, default prevention, and foreclosure timeframes. The announcement of the new standards sprung from The Federal Housing Finance Agency(FHFA) initiative to bring Fannie Mae’s and Freddie Mac’s procedures for handling past-due mortgages in line with one another.

 “These new standards give homeowners facing difficulty making their mortgage payments a clear, consistent process,” said Jeff Hayward, Senior Vice President of Fannie Mae’s National Servicing Organization. “We want homeowners to be able to understand their options when facing foreclosure, and we want servicers to reach homeowners early in the process, communicate frequently and clearly, and help homeowners avoid foreclosure.”

 As part of this initiative, servicers are required to build stronger relationships with homeowners to determine reasons for delinquency, assess ability to pay, and educate homeowners on foreclosure prevention options.

 Homeowners will be contacted during the first 120 days of delinquency to discuss a mortgage modification or other solution to stay in the home or enter into an arrangement that will allow the homeowner to exit the home without foreclosure.

 The new guidelines are available to review on Fannie Mae’s business website.  

 

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How Long do Negative Items Stay on my Credit Report?

Have you recently been turned down for a loan due to negative information on your credit report? Are you just curious about how long items can remain on your credit affecting your score?

Accurate negative information will generally be reported for seven years, but there are exceptions:

  • Bankruptcy information can be reported for 10 years;
  • Information reported because of an application for more than $50,000 worth of credit or life insurance has no time limitation;
  • Information concerning a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer;
  • Default information concerning U.S. Government insured or guaranteed student loans can be reported for seven years after certain guarantor actions; and
  • Tax liens stay on 7 years from the date paid

Some other rules to keep in mind:

The Statute of Limitations has nothing to do with the length of time something can stay on your credit report. They are two completely separate things. The length of time a negative mark can stay on your credit report starts from the time you were late or the late payment went into collection, not from the last time you made a payment on the account.

Sometimes negative items can be overlooked and not removed when they should be. That’s why it is important to check your credit report at least once each year (it’s free to view your report at annualcreditreport.com). Review all the items on your credit report to ensure there are no errors and that anything that can and should be removed is deleted.

Negative items on your credit report don’t necessarily mean that you absolutely can’t qualify for a home loan. There are loan options for those without glowing credit scores. Contact us to discuss your home loan options today.

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Why Isn’t My Home Getting Shown?

This is such a great article,  we wanted to share the whole thing.  Kudos to NashvilleBrian.  The same principles apply here in Tampa, Florida. We have found that reputation and professional photos are key. We’ll be happy to demonstrate how we apply all of these tips to our listings. Contact us at Info@PremierHomeStore.com

Why Isn’t My Home Getting Shown?

by NashvilleBrian

Post image for Why Isn’t My Home Getting Shown?We’ve all read the answers here on why homes don’t sell or get showings.  It’s a “no duh” moment when people say (1) it’s priced too high, (2) it needs to be staged, (3) the location is bad, (4) it’s in poor condition.  We all know that.  Your problem here is you’re listed with someone who is afraid to be honest with you.I’ve been helping several agents recently with their listings and marketing through consulting, and I have found some very simple fixes above price, condition and location that MIGHT be the cause for lack of showings or lack of offers above the biggees.  Ask your agent today to check these things or audit them yourself.

Problem 1:  The home isn’t mapping in the MLS system. Many agents search for properties in the agent-only section of the MLS via the “Mapping” feature.  When the home is being data entered into RealTracs, one typo or not checking the “geo-coding” can cause your home not to show up to the agent.  Remember, 78% of buyers report that they found their home through their agent.

MLS is not mapping the address.Notice the yellow arrow I drew in for you. The red star means that the home is not mapping. If someone is searching for a home via the Geo-Coding/Mapping feature, and you’re home isn’t mapping correctly, it will not be found…period!

Problem 2:  Your pictures suck. You should expect only professional level photography in this type of market.  If your agent shows up with a point and shoot camera, this should be flag #1.  Lighting, angles, point of view and equipment matter.  I listed a home recently that was on the market with another agent for over 30 days and had average photos.  The sellers said they received three showings before releasing their agent.  In 29 days, with my marketing, we had 33 showings and an accepted offer.

Bad Dining Room PhotoSame dining room, different photo and stagingThe dining room’s photo (even without staging) was dark and shot from a poor angle. The new photo focuses on the room’s light rather than the outdoor area outside the window. (8/22/2009 note: Home under contract in 30 days after over 120 days on market with other representation)

Problem 3:  The square footage, bedroom numbers or bathroom totals were incorrectly entered. My heart breaks every time I think of a story I had in Green Hills a few years ago.  A home was priced amazingly well and had been on the market for over 250 days.  A senior couple owned it and had used “a friend” to list the home.  The “friend” entered it in the MLS as a 1 bedroom, 1 bath with 1200 square feet.  In actuality, it was a 4 bedroom, 2 bath home with well over 2300 AMAZING square feet.  To top it off, it had no pictures either.  I called the agent’s broker and reported it immediately after I had a buyer ask to see it via a drive-by, however, you may not be so lucky if you’re not on a major thoroughfare!

Problem 4:  The narrative and wording isn’t present or simply stinks. In the MLS, agents can enter “Remarks” that the consumers see on all the websites (quiet, cul de sac street on level acreage), “Realtor Remarks” which are for agents only (agent bonus of $500, disclosures are available at…) and “Photo Captions” which appear below of the photos and allow 250 characters (Sitting on a large corner lot, the seller is providing a one-year home warranty and is willing to pay up to $4000 in closing costs).  Is your agent using all these text areas to tell your story?

The “Remarks” section is the spot in the MLS that is picked up by every other website and agency site to describe your home. Example 1 chose to brilliantly use exclamation points instead of giving the seller their full potential narrative. Example 2′s agent just didn’t care enough to take the three minutes to write anything at all. Heck, I’d be happy with exclamation points at least here!



Problem 5:  Your representative has a bad reputation in the agent community. Stock is too heavy and life is too short for agents and consumers to deal with jerks.  Ask other agents candidly about your agent’s involvement in the REALTOR community.  While our code of ethics is clear that we can’t bad-mouth another REALTOR, if you ask around enough in your community or find former agents, you’ll get the scoop (See Section 15 of the NAR Code of Ethics).  If a buyer’s agent has seven homes that are perfect for his/her buyer and your home is one of those perfect seven, why would he/she show the home of an agent that has a lose-win attitude, doesn’t return calls or hasn’t upheld the ethics the “good ones” keep.  Is that fair?  No.  Is it illegal?  No.  A buyer’s agent is actually representing his/her client BEST by safegarding them from potentially difficult negotiations and contract situations.  Ask your agents about the designations they hold (all the letters that make no sense to you after their name), their involvement in their association, the awards they’ve won outside of sales production or better yet, check out their RECENT education history here:  http://licsrch.state.tn.us/

Problem 6:  You don’t have enough visuals. Again, we are in a heavy stock cycle, and buyers are “stalking” home on the net first. If 45 homes fit their needs, they will likely look at the ones they’ve seen the most of.  If your home has been on the market for over 90 days, recently, the MLS migrated to allow agents to upload 20 photos instead of the previous 10.  I can’t tell you how many times I’ve seen three or six photos presented on a 2000+ sq ft home!

Problem 7:  The buyers’ agents can’t get in! This is my top pet peeve when I’m representing a buyer!!  Most agents have a showing desk to set up the showings.  If your agent handles the showings directly, this is a big red flag!  “Oh, Mr. Seller, I always have my phone with me and this assure you will get the showing AND I will be able to speak to the agent myself to prep them.”  This is pure bull crap!  WEEKLY, YES, WEEKLY I call within 24 to 48 hours to show a home and at least one or two of the homes don’t get a return call.  I’ve called many an agent’s supervisor and had some nice talks!

Call The Agent

Additionally on Problem 7, as stupid as it sounds, check the key often and make sure it still works to the correct door and the lock box is clearly available.  The key to my personal home stopped working last month alone!  While I always call the agent and tell them there’s an issue with the key, many agents won’t.  Consumers may be coming to your door, never getting in, finding another home and you never know!  I had another key two weeks ago on one of my listings stop working, too.  Obvious, but a potential problem!

Problem 8: Your home has expired or been withdrawn. Last week, my heart broke when I entered a home of the sweetest lady.  She couldn’t figure out why she couldn’t find her home listed on-line.  More issues than that existed, but the biggest issue was that the home had expired from the MLS, and she had no clue.  Every agent in Tennessee is required to give you a copy of everything you have signed within 24 hours of signature.  Her agent had not done this; so, she had no way of knowing she was out of contract and had been off the market for over a month!

Problem 9:  The buyer’s agents commission is not competitive. While there are no set commission rates for real estate, the more commission you are paying your agent, the more commission the buyer’s agent will make.  If a home fits my buyer’s needs, I will show it regardless of commission offered, however, many agents don’t share this opinion.  In the new Tennessee Association of REALTORS listing agreement (which is widely used across the state, on line 81 of page 2 [as of 7/10/2009] there is a blank that shows you what the buyer’s agent will receive.  If your agent hasn’t shown you their value enough to the point you’ve asked them to discount their normal rate, you need to make sure they are not placing your home in an inferior commission position. What percentage the listing agent shares with the buyer’s agent is between those two agents, you NEED to know what that percentage is.

Low CommissionUsually we see lower commissions on multi-million dollar properties or commercial listings. This $200K home is listed giving the co-op agent 1% when all of its competing home sellers are offering 2%, 2.5% and 3%!

Problem 10:  You! So many times we want to point the finger at the agent or his/her marketing deficiencies, however sometimes you’re the problem.  You are consistently turning down appointments or you don’t check your voicemail to confirm showings until the showing request time has long passed.  As kindly as possibly, I remind my sellers in the listing consultation of these obvious principles.  If you want to sell, you have to show!  A few Fridays ago, I was trying to show my buyers a home and had been canceled on TWICE by the owner’s daughter.  If an agent is working to get you the showings, but Aunt Erma’s overnight stay, Sally’s birthday party or your need for an extra two hours of sleep on Saturday morning is causing you to say “no” to the showings, you need (1) to not be on the market or (2) find an agent who will keep you in line (kindly, of course).

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Beware of Foreclosure Rescue Scams

The threat of losing your home can lead some homeowners to take desperate measures to find companies who claim to reduce your monthly mortgage payment or take other steps to save your home.

Unfortunately, there are many scam artists stealing millions of dollars from distressed homeowners by promising immediate relief from foreclosure. Keep this in mind: If the advice or information sounds too good to be true, it probably is. Don’t be taken advantage of.

Here are some tips to help you avoid these scams: 

  • Help is free! There is never a fee to get information from us. HUD-approved housing counseling agencies can also help you at no cost to you. Beware of any person or organization that asks you to pay a fee in exchange for housing counseling services or modification of a delinquent loan.
  • Beware of anyone who says they can “save” your home if you sign or transfer over the deed to your house. Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
  • Don’t sign papers in exchange for a promise that someone else will pay off your mortgage. Always be sure to read and understand all paperwork before signing to ensure that you are not unknowingly giving someone else ownership of your home. 
  • Never submit your mortgage payments to anyone other than your mortgage company without your mortgage company’s approval. Scammers might ask you to make your payments to them; however, they usually pocket your payments instead of sending them to the lender.
  • Beware of anyone who says that you don’t need a real estate professional or title company when selling your home. You should always have a real estate professional, attorney, or a title company to help you with any transaction involving your home.

The FTC warns:

The scam artists use simple but potentially deceptive messages, like:

“Stop foreclosure now!”

“Get a loan modification!”

“Over 90% of our customers get results.”

“We have special relationships with banks that can speed up the approval process.”

“100% Money Back Guarantee.”

“Keep Your Home. We know your home is scheduled to be sold. No Problem!”

Once they have your attention, they use a variety of tactics to get your money.

If you’re struggling to make mortgage payments or facing foreclosure, there are legitimate options available to help save your home. Contact your lender immediately. You may be able to negotiate a new repayment schedule.

If you believe you’ve been the victim of foreclosure fraud, contact the FTC, or your state Attorney General’s office, or the Better Business Bureau.

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