You have read what I have to say about the current real estate market. Want to know what other "real estate experts" are saying?
Many people are listening to the news media and thinking they are getting "expert" advice. Friends and neighbors, that ain't necessarily so. Most of your network financial gurus are stock market guys. They want you to put your money with them in the stock market and not in real estate. They have been sulking over the last few years because people were buying real estate with the money their stock brokers used to "invest" for them. (But seriously, they deserved to lose you after they sold you all those .com stocks and messed up your 401k plans.)
Click on the link below and see what a real "real estate expert" has to say. While you are there, you can read other stories about the current real estate market, but don't forget to come back to my blog when you are done with this research project.
http://realtytimes.com/rtpages/20071126_buyinghomes.htm
You are welcome to leave your own real estate comments by clicking on the link below.
Monday, November 26, 2007
Tuesday, November 20, 2007
What mortgage problems?
I watch the news just like you and they keep talking about the mortgage problems. Yes, I understand that a lot of owners are losing houses to foreclosure, but a lot more are not. If you are making your payments each month, you are fine and no one is going to take your home.
The facts are that over 95% of mortgages in America are being paid every month on time and there is no threat to these homeowners. Of the less than 5% who are left, the majority of them are still making some kind of payment and their lenders are working with them. That leaves a very small number of people who have quit paying on their mortgages and are now or will be in the process of losing their home shortly.
Recent surveys of actual people (not news media or "financial experts") show that more than 75% of those who have bought in the last 12 months feel good about their new home and expect to be there for 7 years or more. Further, they feel that their home investment will be as good or better than an equal investment in the stock market. They are keeping their head and not panicking - contrary to what the talking heads are saying.
So, relax and don't worry about the real estate market. If you want to buy a house, you have no reason to wait. Mortgage rates are at near record low levels, regardless of any mortgage problems the media is talking about. And with all the talk about the mortgage market and the phantom housing bubble, the prices are quite reasonable. Further drops in prices are less likely than increases in price as the market comes out of the thaw... I personally am looking to buy any bargains I can Now, before you guys start buying again and the prices begin to rise.
It is time to buy and quit listening to the nay-sayers!
Happy Thanksgiving!
Copyright 2007
The facts are that over 95% of mortgages in America are being paid every month on time and there is no threat to these homeowners. Of the less than 5% who are left, the majority of them are still making some kind of payment and their lenders are working with them. That leaves a very small number of people who have quit paying on their mortgages and are now or will be in the process of losing their home shortly.
Recent surveys of actual people (not news media or "financial experts") show that more than 75% of those who have bought in the last 12 months feel good about their new home and expect to be there for 7 years or more. Further, they feel that their home investment will be as good or better than an equal investment in the stock market. They are keeping their head and not panicking - contrary to what the talking heads are saying.
So, relax and don't worry about the real estate market. If you want to buy a house, you have no reason to wait. Mortgage rates are at near record low levels, regardless of any mortgage problems the media is talking about. And with all the talk about the mortgage market and the phantom housing bubble, the prices are quite reasonable. Further drops in prices are less likely than increases in price as the market comes out of the thaw... I personally am looking to buy any bargains I can Now, before you guys start buying again and the prices begin to rise.
It is time to buy and quit listening to the nay-sayers!
Happy Thanksgiving!
Copyright 2007
Wednesday, November 7, 2007
Real Estate - The Current Market
I have written several times in this blog about the current market. People seem to think we are in a recession or homes are just not selling. That is not the case. Do you want to know what the real estate market is doing? The term that seems to fit best is a "correction" and even this correction is not taking place on a nationwide basis. Some parts of the country are up 8-10% in prices and sales for 2007.
Real estate is like politics, it is always local. In the Chattanooga, TN. market, it really does not matter what is taking place in the New York, Florida or California markets. Those markets were inflated as everyone already knows. In those markets, there had to come a slow down at some point. Now is that time. However, most of the Southeast United States (excluding parts of Florida) has never been overinflated. The prices in most of the Southeast are still below national averages. The Chattanooga area is one of the most affordable places to live in America.
The National Association of Realtors® (NAR) tells us that the final sales figures for 2007 should show sales of about 5.9 million existing homes. This is not a record, but is at the level recorded for 2002, the second year of our most recent housing boom. That means we are really still buying and selling at boom market levels. The figures for next year are predicted to be in the 6.2 million for number of existing home sales in America.
Currently, prices in the Chattanooga area are fairly stable. Sellers still want to sell their homes, so they can move up or down while the market is adjusting. That means buyers can take advantage of this "buyer's market" and maybe get the lowest prices they will ever see. Everyone (yes, even you) fully expects prices to again rise and probably very shortly as 2008 begins the thaw.
Realtors® are still bullish on our market, we work in the housing market everyday and we see the American Dream still being pursued and attained. Those who are buying now are stopping the rent cycle and beginning the homeownership/equity building phase of life. Those who buy now will be a step ahead of you, if your plan is to "wait this out."
Most folks will continue to pay housing costs in some form, either as rent or they will realize the American Dream. You know the economy goes through cycles and you know this current housing cycle will end. Are you going to act now and take advantage of a buyer's market or will you react later when everyone else is buying and it is again a seller's market?
In Chattanooga, TN. there is a great team of Realtors® ready to work with you to help you realize your dreams of the "white picket fence" (even if your version is quite different.) Dreams don't just go away! My team at UpwardRealty.com can and will help you realize your American Dreams.
Call us anytime at (423) 847-8001 or check out our company website at http://www.upwardrealty.com/ .
Our goal is to give you such good service, you will become our "client for life."
Copyright 2007
Real estate is like politics, it is always local. In the Chattanooga, TN. market, it really does not matter what is taking place in the New York, Florida or California markets. Those markets were inflated as everyone already knows. In those markets, there had to come a slow down at some point. Now is that time. However, most of the Southeast United States (excluding parts of Florida) has never been overinflated. The prices in most of the Southeast are still below national averages. The Chattanooga area is one of the most affordable places to live in America.
The National Association of Realtors® (NAR) tells us that the final sales figures for 2007 should show sales of about 5.9 million existing homes. This is not a record, but is at the level recorded for 2002, the second year of our most recent housing boom. That means we are really still buying and selling at boom market levels. The figures for next year are predicted to be in the 6.2 million for number of existing home sales in America.
Currently, prices in the Chattanooga area are fairly stable. Sellers still want to sell their homes, so they can move up or down while the market is adjusting. That means buyers can take advantage of this "buyer's market" and maybe get the lowest prices they will ever see. Everyone (yes, even you) fully expects prices to again rise and probably very shortly as 2008 begins the thaw.
Realtors® are still bullish on our market, we work in the housing market everyday and we see the American Dream still being pursued and attained. Those who are buying now are stopping the rent cycle and beginning the homeownership/equity building phase of life. Those who buy now will be a step ahead of you, if your plan is to "wait this out."
Most folks will continue to pay housing costs in some form, either as rent or they will realize the American Dream. You know the economy goes through cycles and you know this current housing cycle will end. Are you going to act now and take advantage of a buyer's market or will you react later when everyone else is buying and it is again a seller's market?
In Chattanooga, TN. there is a great team of Realtors® ready to work with you to help you realize your dreams of the "white picket fence" (even if your version is quite different.) Dreams don't just go away! My team at UpwardRealty.com can and will help you realize your American Dreams.
Call us anytime at (423) 847-8001 or check out our company website at http://www.upwardrealty.com/ .
Our goal is to give you such good service, you will become our "client for life."
Copyright 2007
Friday, November 2, 2007
Enough With the Gloom and Doom!
Do news reporters truly enjoy delivering only bad news? If you have listened to either the local or national news outlets recently, you probably think buying or owning a home is the worst thing you can consider. Regardless of the facts, the press is continuously telling us how the bottom is just falling out of our economy and buying a home now is just stupid.
Well, that ain't so! Most of the so called "experts" are not real estate experts. I have watched investment shows while four experts discuss which stocks they think are right to buy. All four have their favorites and each gives good reasons why the other three experts are really idiots. Then after 10 minutes of this, the moderator will ask them about real estate. All four will give the same response - it is a bad time to buy, prices will continue to drop, it is just bad-bad-bad! This is the only thing these "experts" have agreed on the whole time they have been on the program. However, when they were introduced, there was nothing said about them having any real estate experience - they all work for business magazines, websites, or stock brokerages. They all have an agenda - get your money out of real estate and into the stock they sell.
However, everyone keeps telling us it is a "buyer's market". Doesn't that mean it is a GOOD time to buy? Actually it does! Right now, because of the relentless bad press on real estate, prices have dropped. They have not dropped by double-digit amounts as the press whould lead to you think, but in most markets prices today are 3-5% below the level of a year ago. However, prices have actually gone up in some areas this year. Also, most home owners are not in a "have to" sell situation, so they will not make drastic price cuts, even with the "I'm going to steal a house" mentality many buyers now have.
If you are buying, expect to get a fair price, but not to steal a house. Sellers will just wait you out. Right now, you can buy a house at a reasonable price, but if you wait another year, you may be paying 8-10% or more to buy that same house. That's OK, the sellers are willing to wait.
How about interest rates on mortgages. The press has not been telling you that rates are really low. You can find 30 year fixed rate mortgages at around 6%, give or take a quarter. For 15 year terms, fixed rates are below 6%. Folks, those are LOW rates! Does anyone remember the early 80's - back then 15-18% was common and people went nuts when the rates dropped to the 11-13% range.
Regardless of what the press says, the economy is good right now. Interest rates are low, unemployment figures are low, the economic reports show the economy growing, and if not for rising gas prices we would say the economy is booming.
It is a good time to buy real estate, before the prices and interest rates begin to go back up. And you know they will.
Well, that ain't so! Most of the so called "experts" are not real estate experts. I have watched investment shows while four experts discuss which stocks they think are right to buy. All four have their favorites and each gives good reasons why the other three experts are really idiots. Then after 10 minutes of this, the moderator will ask them about real estate. All four will give the same response - it is a bad time to buy, prices will continue to drop, it is just bad-bad-bad! This is the only thing these "experts" have agreed on the whole time they have been on the program. However, when they were introduced, there was nothing said about them having any real estate experience - they all work for business magazines, websites, or stock brokerages. They all have an agenda - get your money out of real estate and into the stock they sell.
However, everyone keeps telling us it is a "buyer's market". Doesn't that mean it is a GOOD time to buy? Actually it does! Right now, because of the relentless bad press on real estate, prices have dropped. They have not dropped by double-digit amounts as the press whould lead to you think, but in most markets prices today are 3-5% below the level of a year ago. However, prices have actually gone up in some areas this year. Also, most home owners are not in a "have to" sell situation, so they will not make drastic price cuts, even with the "I'm going to steal a house" mentality many buyers now have.
If you are buying, expect to get a fair price, but not to steal a house. Sellers will just wait you out. Right now, you can buy a house at a reasonable price, but if you wait another year, you may be paying 8-10% or more to buy that same house. That's OK, the sellers are willing to wait.
How about interest rates on mortgages. The press has not been telling you that rates are really low. You can find 30 year fixed rate mortgages at around 6%, give or take a quarter. For 15 year terms, fixed rates are below 6%. Folks, those are LOW rates! Does anyone remember the early 80's - back then 15-18% was common and people went nuts when the rates dropped to the 11-13% range.
Regardless of what the press says, the economy is good right now. Interest rates are low, unemployment figures are low, the economic reports show the economy growing, and if not for rising gas prices we would say the economy is booming.
It is a good time to buy real estate, before the prices and interest rates begin to go back up. And you know they will.
Copyright 2007
Thursday, October 4, 2007
What is this leverage stuff?
Are you looking to become a real estate investor? If so, you have possibly heard the term "leverage" used by someone already in the biz. The concept of leverage is what makes real estate a different kind of investment than stocks, bonds, or mutual funds. Using leverage is like supersizing your available investment funds.
Lets use a simple example to make the leverage concept a little clearer. Say you have $25,000 that you want to invest. If you buy stocks (without consideration of broker fees), you can buy $25,000 worth of the stock. If the stock you like sells for $25 per share, you can buy 1000 shares. If after one year the stock value increases 20%, your stock would be worth $30,000. You made $5000, not too bad - a savings account won't do that for you. The larger gain comes from taking a risk, since the stocks carried no FDIC insurance like the savings account.
Now, about that leverage available to the real estate investment. This concept is based on using what we refer to as OPM (other people's money). If you want to put that same $25,000 into a piece of real estate (not considering closing costs), with the right property, you can get a 75% loan and that means your $25,000 will buy a property valued at $100,000. So, you now have a property valued at $100,000, but you have only put $25,000 into the deal. That is leverage.
Of course you can get into a discussion about making the payments on the $75,000 loan, but that is why tenants were created. There are some other factors that also sweeten the real estate deal, such as depreciation and cash flow. And your $100,000 property only needs a 5% increase in value to recover the 20% return you would have made on the stock.
Both stocks and real estate can go down in value. A decrease in value is far more common in the stock market then in the real estate market and while a particular stock can lose 100% of its value - real estate almost never is worth $0.00.
The Chattanooga area is a great place to invest in real estate. The prices are more moderate than many big cities and it is a great place to live. Here is a great site to learn more: www.ChooseChattanooga.com.
Copyright 2007
Lets use a simple example to make the leverage concept a little clearer. Say you have $25,000 that you want to invest. If you buy stocks (without consideration of broker fees), you can buy $25,000 worth of the stock. If the stock you like sells for $25 per share, you can buy 1000 shares. If after one year the stock value increases 20%, your stock would be worth $30,000. You made $5000, not too bad - a savings account won't do that for you. The larger gain comes from taking a risk, since the stocks carried no FDIC insurance like the savings account.
Now, about that leverage available to the real estate investment. This concept is based on using what we refer to as OPM (other people's money). If you want to put that same $25,000 into a piece of real estate (not considering closing costs), with the right property, you can get a 75% loan and that means your $25,000 will buy a property valued at $100,000. So, you now have a property valued at $100,000, but you have only put $25,000 into the deal. That is leverage.
Of course you can get into a discussion about making the payments on the $75,000 loan, but that is why tenants were created. There are some other factors that also sweeten the real estate deal, such as depreciation and cash flow. And your $100,000 property only needs a 5% increase in value to recover the 20% return you would have made on the stock.
Both stocks and real estate can go down in value. A decrease in value is far more common in the stock market then in the real estate market and while a particular stock can lose 100% of its value - real estate almost never is worth $0.00.
The Chattanooga area is a great place to invest in real estate. The prices are more moderate than many big cities and it is a great place to live. Here is a great site to learn more: www.ChooseChattanooga.com.
Copyright 2007
Wednesday, September 19, 2007
It is 'Buy and Hold' Time!
Cable TV is loaded with "Flip This House", "Flip That House", "Property Ladder", etc. The theme to all of these shows is buy it, fix it up, and resell it for a big profit. Like you, I am an avid fan and often a critic of what the "stars" are doing.
The key to making this work is buying the property far enough below market value to allow the repairs, carrying costs, and re-selling expenses to be paid and still leave a profit. Good flippers invest wisely, but too many would be flippers pay too much for the property. If they proceed to spend too much on the repair phase, or take too long, the profit part of the formula can disappear like a vapor. The "take too long" part has become more prevalent with a lot of flippers in the current slow sales market.
If you are considering real estate investing, proceed with caution, but do proceed. We are in absolutely one of the best buyer's market that has existed in many many years. Now is an excellent time to acquire real property at the lowest prices we have seen in a long time. BE WARNED, reselling that property at a profit is not so easy at present.
That brings us to an investment method many of today's millionaires used to build their fortune. We call this Buy and Hold. In this scenario, the current low prices allow you to buy property at the lower prices we now have due to the recent market corrections. You likely will have to do repairs, some minor, some extensive. But you should still have a solid investment; you just need to hold on to it for a little while.
Once you have the property, a good tenant will be around to make your mortgage payments until the market rebounds and prices rise again. With so many people not buying at present, they become tenants since they must still live somewhere. Since the market correction began (somewhere in 2006 or early 2007 - depending on which expert you consult) there have been millions of people creating new households, graduating from high school or college, leaving their parents home, and starting new jobs. All these life changes create housing needs. We know they have not been buying, so they must be renters.
So, to summarize keep these points in mind:
Prices are still low, mortgage rates are low, and there are still mortgage funds available. If you have good credit, you CAN get a mortgage at a very good rate.
Many people have lost their homes to foreclosure or are offering houses at bargains to avoid foreclosure, so bargains are out there. Like always, you must do your homework.
The usual large number of buyers are not buying, so they are still renting. This means you should have tenants who need housing. When they finally get off the sidelines in a year or so, market values (and interest rates) will probably be rising again and you may have a ready buyer.
So, find a good Realtor with investment experience and go find some bargains. Take a look at my September 4 blog entry:
In the Chattanooga, Tennessee market, my team and I will help you. Check out UpwardRealty.com
Copyright 2007
The key to making this work is buying the property far enough below market value to allow the repairs, carrying costs, and re-selling expenses to be paid and still leave a profit. Good flippers invest wisely, but too many would be flippers pay too much for the property. If they proceed to spend too much on the repair phase, or take too long, the profit part of the formula can disappear like a vapor. The "take too long" part has become more prevalent with a lot of flippers in the current slow sales market.
If you are considering real estate investing, proceed with caution, but do proceed. We are in absolutely one of the best buyer's market that has existed in many many years. Now is an excellent time to acquire real property at the lowest prices we have seen in a long time. BE WARNED, reselling that property at a profit is not so easy at present.
That brings us to an investment method many of today's millionaires used to build their fortune. We call this Buy and Hold. In this scenario, the current low prices allow you to buy property at the lower prices we now have due to the recent market corrections. You likely will have to do repairs, some minor, some extensive. But you should still have a solid investment; you just need to hold on to it for a little while.
Once you have the property, a good tenant will be around to make your mortgage payments until the market rebounds and prices rise again. With so many people not buying at present, they become tenants since they must still live somewhere. Since the market correction began (somewhere in 2006 or early 2007 - depending on which expert you consult) there have been millions of people creating new households, graduating from high school or college, leaving their parents home, and starting new jobs. All these life changes create housing needs. We know they have not been buying, so they must be renters.
So, to summarize keep these points in mind:
Prices are still low, mortgage rates are low, and there are still mortgage funds available. If you have good credit, you CAN get a mortgage at a very good rate.
Many people have lost their homes to foreclosure or are offering houses at bargains to avoid foreclosure, so bargains are out there. Like always, you must do your homework.
The usual large number of buyers are not buying, so they are still renting. This means you should have tenants who need housing. When they finally get off the sidelines in a year or so, market values (and interest rates) will probably be rising again and you may have a ready buyer.
So, find a good Realtor with investment experience and go find some bargains. Take a look at my September 4 blog entry:
Searching for a REALTOR®... Homebuyer's list.
In the Chattanooga, Tennessee market, my team and I will help you. Check out UpwardRealty.com
Copyright 2007
Tuesday, September 4, 2007
Finding the RIGHT Realtor®? Seller's version.
Chattanooga/Hixson, Tennessee
You invested well...you took care of your home...you paid your mortgage...you now need to sell. What should you look for in the Realtor® you select to get the most for your hard work? How can you realize the most dollars from your equity?
Here are some things owners should consider when searching for a Realtor®:
1. They must be full-time in the business. Only a full-time agent can be available anytime a prospective buyer calls. Buyers can be fickle, meaning if they are asked to wait, they find another option. That might mean buying another house, not yours.
2. They must have experience. This is the person that will negotiate on your behalf to make sure you get the maximum price. Experience is extremely valuable when pricing your home, only a Realtor® with market knowledge can sort out the important information from superficial information. Your agent's experience is of vital IMPORTANCE to you!
3. They must have contacts within the business. Your Realtor® will be the one person that makes sure your home is exposed to the other professionals in your market. Your Realtor® will work to resolve all inspections, appraisals, title questions and problems to get you to the closing table. It really is who you know. No closing, no equity check.
4. They must be a REALTOR® - all real estate agents are not Realtors®. However, all Realtors® are trained and tested on the Code of Ethics as part of their membership in the National Association of Realtors®. Realtors® are voluntarily held to higher standards. Realtors® take public service seriously. Ask the questions and look for the "R".
5. They must belong to the MLS service in your area. This connection is vital for maximum buyer exposure. Agents who are not MLS members forfeit the #1 marketing tool in the real estate business today. Don't ever consider trying to sell real estate without MLS access by your Realtor®.
6. They must care about you. If you interview a Realtor® that doesn't listen to what you say, they may not share your priorities. Most agents do truly care about you, but you can tell when you find one who only cares about the commission. Trust your instincts. This is your advocate in the sale of your home, you must feel they are on your team.
7. They must be trustworthy. This means they shoot straight with you, even if it means giving you advice you don't want to hear. Selling your home is a stressful process and you want to know what is happening, you need your Realtors® counsel every step of the way. You need to know what the market is doing and how it is reacting to your home. If your Realtor's® story seems to keep changing, you probably selected the wrong agent.
8. They must represent you. Having representation means your Realtor® is working on your behalf and for your best interest. The listing agreement will establish your agency relationship with your agent. Make sure you understand how you will be represented in different options. Tennessee law allows different options, but how you will be represented must be in writing.
While this may appear to be a simplified list, these recommendations can lay a solid foundation for a successful home sale. Attention to these basics should mean you avoid the heartaches and headaches of dealing with the wrong agent.
In the Chattanooga area, my team at UpwardRealty.com would love to show you how selecting the right Realtor® can make your next move far less stressful.
The wrong agent, no matter how good the sales pitch, can become your worst nightmare.
We serve Southeast Tennessee and North Georgia.
Copyright 2007
You invested well...you took care of your home...you paid your mortgage...you now need to sell. What should you look for in the Realtor® you select to get the most for your hard work? How can you realize the most dollars from your equity?
Here are some things owners should consider when searching for a Realtor®:
1. They must be full-time in the business. Only a full-time agent can be available anytime a prospective buyer calls. Buyers can be fickle, meaning if they are asked to wait, they find another option. That might mean buying another house, not yours.
2. They must have experience. This is the person that will negotiate on your behalf to make sure you get the maximum price. Experience is extremely valuable when pricing your home, only a Realtor® with market knowledge can sort out the important information from superficial information. Your agent's experience is of vital IMPORTANCE to you!
3. They must have contacts within the business. Your Realtor® will be the one person that makes sure your home is exposed to the other professionals in your market. Your Realtor® will work to resolve all inspections, appraisals, title questions and problems to get you to the closing table. It really is who you know. No closing, no equity check.
4. They must be a REALTOR® - all real estate agents are not Realtors®. However, all Realtors® are trained and tested on the Code of Ethics as part of their membership in the National Association of Realtors®. Realtors® are voluntarily held to higher standards. Realtors® take public service seriously. Ask the questions and look for the "R".
5. They must belong to the MLS service in your area. This connection is vital for maximum buyer exposure. Agents who are not MLS members forfeit the #1 marketing tool in the real estate business today. Don't ever consider trying to sell real estate without MLS access by your Realtor®.
6. They must care about you. If you interview a Realtor® that doesn't listen to what you say, they may not share your priorities. Most agents do truly care about you, but you can tell when you find one who only cares about the commission. Trust your instincts. This is your advocate in the sale of your home, you must feel they are on your team.
7. They must be trustworthy. This means they shoot straight with you, even if it means giving you advice you don't want to hear. Selling your home is a stressful process and you want to know what is happening, you need your Realtors® counsel every step of the way. You need to know what the market is doing and how it is reacting to your home. If your Realtor's® story seems to keep changing, you probably selected the wrong agent.
8. They must represent you. Having representation means your Realtor® is working on your behalf and for your best interest. The listing agreement will establish your agency relationship with your agent. Make sure you understand how you will be represented in different options. Tennessee law allows different options, but how you will be represented must be in writing.
While this may appear to be a simplified list, these recommendations can lay a solid foundation for a successful home sale. Attention to these basics should mean you avoid the heartaches and headaches of dealing with the wrong agent.
In the Chattanooga area, my team at UpwardRealty.com would love to show you how selecting the right Realtor® can make your next move far less stressful.
The wrong agent, no matter how good the sales pitch, can become your worst nightmare.
We serve Southeast Tennessee and North Georgia.
Copyright 2007
Searching for a REALTOR®... Homebuyer's list.
Chattanooga/Hixson, Tennessee
Whether you are ready to buy your first home or you are moving up or down the property ladder, the right Realtor® makes all the difference. Before you start looking, give some thought to what you expect from your agent.
Here are some things to look for when searching for a Realtor®:
1. They must be full-time in the business. Only a full-time agent can keep up with the changing market. Sometimes the right house is only available for a very short time.
2. They must have experience - this is the person that will negotiate on your behalf in probably the largest purchase you will ever make. Their experience is IMPORTANT!
3. They must have contacts within the business. Your Realtor® will be the one person that makes sure all inspections and problems are worked out to get you to the closing table. Sometimes it really is who you know. No closing, no house.
4. They must be a REALTOR® - all real estate agents are not Realtors®. All Realtors® are trained on the Code of Ethics as part of their membership in the National Association of Realtors®. Realtors® are voluntarily held to higher standards. Realtors® take public service seriously.
5. They must belong to the MLS service in your area. That connection is your source to accurate information on the most timely basis. Agents who are not MLS members, often find out about the good deal after the deal is gone.
6. They must care about you. If you interview a Realtor® and your needs seem secondary to selling you a house - run! Most agents do truly care about you, but you can tell when you find one who is working only for the commission.
7. They must be trustworthy. This means they shoot straight with you, even if it means giving you advice you don't want to hear. If your Realtors® story seems to keep changing, you probably need to change Realtors®.
8. They must represent you. Having representation means your Realtor® is working on your behalf and for your best interest. You are assured that the first seven (7) attributes on this list come together here in #8. This requires a written agreement by Tennessee law, so ask questions about a Buyer's Representation Agreement in advance.
In the Chattanooga area, my team at UpwardRealty.com would love to make you our customer for life. We serve Southeast Tennessee and North Georgia.
Copyright 2007
Whether you are ready to buy your first home or you are moving up or down the property ladder, the right Realtor® makes all the difference. Before you start looking, give some thought to what you expect from your agent.
Here are some things to look for when searching for a Realtor®:
1. They must be full-time in the business. Only a full-time agent can keep up with the changing market. Sometimes the right house is only available for a very short time.
2. They must have experience - this is the person that will negotiate on your behalf in probably the largest purchase you will ever make. Their experience is IMPORTANT!
3. They must have contacts within the business. Your Realtor® will be the one person that makes sure all inspections and problems are worked out to get you to the closing table. Sometimes it really is who you know. No closing, no house.
4. They must be a REALTOR® - all real estate agents are not Realtors®. All Realtors® are trained on the Code of Ethics as part of their membership in the National Association of Realtors®. Realtors® are voluntarily held to higher standards. Realtors® take public service seriously.
5. They must belong to the MLS service in your area. That connection is your source to accurate information on the most timely basis. Agents who are not MLS members, often find out about the good deal after the deal is gone.
6. They must care about you. If you interview a Realtor® and your needs seem secondary to selling you a house - run! Most agents do truly care about you, but you can tell when you find one who is working only for the commission.
7. They must be trustworthy. This means they shoot straight with you, even if it means giving you advice you don't want to hear. If your Realtors® story seems to keep changing, you probably need to change Realtors®.
8. They must represent you. Having representation means your Realtor® is working on your behalf and for your best interest. You are assured that the first seven (7) attributes on this list come together here in #8. This requires a written agreement by Tennessee law, so ask questions about a Buyer's Representation Agreement in advance.
In the Chattanooga area, my team at UpwardRealty.com would love to make you our customer for life. We serve Southeast Tennessee and North Georgia.
Copyright 2007
When renting no longer works for you...
Chattanooga/Hixson, Tennessee
You may have heard paying rent is like "flushing your money down the drain" or "tossing money in the trash". But, renting sometimes is the only option you have. When young people are starting out, renting is their only option. Later, some of our best memories are the times we spent renting that first pad (I think you might call it a crib now.)
As we grow financially in our personal lives, most of us dream of owning our own home. "The American Dream" drives us in that direction. We desire a place that shows our individual character, white picket fence optional. A place to raise a family and find a new meaning for a "crib".
For many reasons, we may be hesitant to buy that first home. It can be a scary process when we have no experience with home ownership. Second home buyers are far less hesitant - once you have owned a home, you don't want to go back to renting.
But, are you financially able to own? In most cases, the answer is "YES!" ... Provided you have not absolutely wrecked your credit. Having paid your bills on time, including your landlord - you should be able to qualify for a mortgage... In our buyer's market, sellers are frequently eager to assist buyers with closing costs help, which can make a deal work for a first time buyer.
Owning a home allows you to build equity. Equity is the value you have in your home above the amount you owe. Simply put, if you own a home worth $150,000 and you owe $120,000 on your mortgage, you have built $30,000 in equity. The people in America that have wealth own something, they have equity. There are some sweet income tax advantages as well.
So, are you beginning to think that maybe it is time to consider home ownership? If so, what about the first step you should take. Mortgage lenders say start with them. However, Realtors® like me, know that we are your best first stop. A good Realtor® is worth their weight in gold. The right Realtor® will be able to connect you with multiple lending sources and help you evaluate the various options each lender offers. Your Realtor® is a valuable source in finding the right lender and avoiding the wrong mortgage.
Once you know your financing options, you will know your price range. Your Realtor® will then help you evaluate your needs, such as home size, schools, neighborhood features that appeal to you, and a myriad of other options that must all come together in the right home.
Realtors® are paid on a commission basis, but we don't live in a vacuum. We must compete in the real world. A career Realtor® cannot afford to work with one-time only clients. We must build solid relationships - happy homeowners. Only satisfied buyers become repeat clients. Unhappy clients don't recommend their Realtor® to friends and family members.
When renting is no longer working for you, start with a good Realtor and get ready to begin building equity. In the Chattanooga area, my team at UpwardRealty.com would love to make you our customer for life.
Get the details on what to look for in a BUYER"S AGENT by reading my September 4, 2007 post titled:
(There are a number of special programs for first time home buyers and I will address these in a future blog. Most lenders define a first time buyer as "has not owned real estate within the last three years." Check back for that posting.)
Copyright 2007
You may have heard paying rent is like "flushing your money down the drain" or "tossing money in the trash". But, renting sometimes is the only option you have. When young people are starting out, renting is their only option. Later, some of our best memories are the times we spent renting that first pad (I think you might call it a crib now.)
As we grow financially in our personal lives, most of us dream of owning our own home. "The American Dream" drives us in that direction. We desire a place that shows our individual character, white picket fence optional. A place to raise a family and find a new meaning for a "crib".
For many reasons, we may be hesitant to buy that first home. It can be a scary process when we have no experience with home ownership. Second home buyers are far less hesitant - once you have owned a home, you don't want to go back to renting.
But, are you financially able to own? In most cases, the answer is "YES!" ... Provided you have not absolutely wrecked your credit. Having paid your bills on time, including your landlord - you should be able to qualify for a mortgage... In our buyer's market, sellers are frequently eager to assist buyers with closing costs help, which can make a deal work for a first time buyer.
Owning a home allows you to build equity. Equity is the value you have in your home above the amount you owe. Simply put, if you own a home worth $150,000 and you owe $120,000 on your mortgage, you have built $30,000 in equity. The people in America that have wealth own something, they have equity. There are some sweet income tax advantages as well.
So, are you beginning to think that maybe it is time to consider home ownership? If so, what about the first step you should take. Mortgage lenders say start with them. However, Realtors® like me, know that we are your best first stop. A good Realtor® is worth their weight in gold. The right Realtor® will be able to connect you with multiple lending sources and help you evaluate the various options each lender offers. Your Realtor® is a valuable source in finding the right lender and avoiding the wrong mortgage.
Once you know your financing options, you will know your price range. Your Realtor® will then help you evaluate your needs, such as home size, schools, neighborhood features that appeal to you, and a myriad of other options that must all come together in the right home.
Realtors® are paid on a commission basis, but we don't live in a vacuum. We must compete in the real world. A career Realtor® cannot afford to work with one-time only clients. We must build solid relationships - happy homeowners. Only satisfied buyers become repeat clients. Unhappy clients don't recommend their Realtor® to friends and family members.
When renting is no longer working for you, start with a good Realtor and get ready to begin building equity. In the Chattanooga area, my team at UpwardRealty.com would love to make you our customer for life.
Get the details on what to look for in a BUYER"S AGENT by reading my September 4, 2007 post titled:
Searching for a REALTOR®... Homebuyer's list.
(There are a number of special programs for first time home buyers and I will address these in a future blog. Most lenders define a first time buyer as "has not owned real estate within the last three years." Check back for that posting.)
Copyright 2007
Thursday, August 30, 2007
It's a buyer's market. So why are you NOT buying?
Real estate news has been mostly negative for months now, but every story mentions that we are in a "buyer's market". So why are buyers sitting on the sidelines?
Let me speak to the buyer in you and lets think this through. Confusion and fear seem to be the key reasons you are not buying.
You are being told by the news that this is your market, but then you hear horror stories about the subprime mortgage market disappearing. But, is that you? Chances are very good that you have not abused your credit, at least not beyond repair, so you are probably not a candidate for a subprime mortgage anyway. IF this is true, then all the subprime news is NOT your news - it belongs to the other guy. You are not a subprime buyer!
Your news is very good, because you have maintained your credit. Interest rates on most mortgages are still low. Here at the end of August, most lenders are offering 30 year loans between 6% and 6.5% for your good credit. And good credit can actually have a couple of small blemishes, but not serious or numerous blemishes. So, you should be in a great position to get a very reasonable mortgage, at a fixed rate (not those scary adjustable rates).
Here is some perspective on interest rates. If you wait for a "better" market, you likely will be paying 7% or more for the same money. On a $100,000 mortgage, a 1/2% rate increase raises a 30 year mortgage payment by $34 each month. That means the 1/2% more would cost you an additional $12,240 over the life of the loan. That alone is a good reason not to wait.
You may then say, "but the TV news says home prices are going to continue to drop, so I should wait." That may be right, home prices are in a downward correction pattern at present. But, how far down are they going to go? Many markets have already made their major adjustments, so you may only be looking at a 2-3% additional drop. if so, then on a $150,000 house, a 3% drop is $4500 more it MIGHT go down. Unless you have cash, interest rates will need to stay at present level while you wait or you will pay a lot more in interest than you saved by waiting. At some point in time home prices will start to go up again.
Your decision to buy now or wait is very personal, but don't let the "gloom and doom" news stories make that decision for you. There are so many advantages to being a homeowner such as deducting your mortgage interest at tax time, or being able to paint a room the color you want, or making your own rules instead of following a landlord's rules. But the one that always seems to come out when talking with a new homeowner is that their dream has come true. Most people still have a deep desire to own their dream home.
A wise, very rich investor has been quoted as saying "when other people get scared, I get excited and when others get excited I get scared." If this is good advice, then now is the time to buy when others are afraid of the market. I'm sure you have heard the investment advice that "the time to buy is when everyone else is selling." For most of you, a home will be the biggest investment you make. Right now sellers want to sell but there are very few buyers, so sellers are negotiating. However, sellers are not giving their homes away, so don't expect to "steal" a house, but there are really good deals in the market.
So why are you NOT buying?
Copyright 2007
Let me speak to the buyer in you and lets think this through. Confusion and fear seem to be the key reasons you are not buying.
You are being told by the news that this is your market, but then you hear horror stories about the subprime mortgage market disappearing. But, is that you? Chances are very good that you have not abused your credit, at least not beyond repair, so you are probably not a candidate for a subprime mortgage anyway. IF this is true, then all the subprime news is NOT your news - it belongs to the other guy. You are not a subprime buyer!
Your news is very good, because you have maintained your credit. Interest rates on most mortgages are still low. Here at the end of August, most lenders are offering 30 year loans between 6% and 6.5% for your good credit. And good credit can actually have a couple of small blemishes, but not serious or numerous blemishes. So, you should be in a great position to get a very reasonable mortgage, at a fixed rate (not those scary adjustable rates).
Here is some perspective on interest rates. If you wait for a "better" market, you likely will be paying 7% or more for the same money. On a $100,000 mortgage, a 1/2% rate increase raises a 30 year mortgage payment by $34 each month. That means the 1/2% more would cost you an additional $12,240 over the life of the loan. That alone is a good reason not to wait.
You may then say, "but the TV news says home prices are going to continue to drop, so I should wait." That may be right, home prices are in a downward correction pattern at present. But, how far down are they going to go? Many markets have already made their major adjustments, so you may only be looking at a 2-3% additional drop. if so, then on a $150,000 house, a 3% drop is $4500 more it MIGHT go down. Unless you have cash, interest rates will need to stay at present level while you wait or you will pay a lot more in interest than you saved by waiting. At some point in time home prices will start to go up again.
Your decision to buy now or wait is very personal, but don't let the "gloom and doom" news stories make that decision for you. There are so many advantages to being a homeowner such as deducting your mortgage interest at tax time, or being able to paint a room the color you want, or making your own rules instead of following a landlord's rules. But the one that always seems to come out when talking with a new homeowner is that their dream has come true. Most people still have a deep desire to own their dream home.
A wise, very rich investor has been quoted as saying "when other people get scared, I get excited and when others get excited I get scared." If this is good advice, then now is the time to buy when others are afraid of the market. I'm sure you have heard the investment advice that "the time to buy is when everyone else is selling." For most of you, a home will be the biggest investment you make. Right now sellers want to sell but there are very few buyers, so sellers are negotiating. However, sellers are not giving their homes away, so don't expect to "steal" a house, but there are really good deals in the market.
So why are you NOT buying?
Copyright 2007
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