America's Real Estate Awakening~ Stay or Walk Away?
More than one person I know is walking away from their home. Strategically defaulting -- meaning, they can afford to make their mortgage payments, but have decided to stop, stay in the home, and allow the bank to take it in foreclosure, because the home is now worth much less than they paid for it -- and much less than they owe on it.
What they once saw as unthinkable is more and more socially acceptable. In some cases and some circles, strategic defaults are even viewed as an admirable guerrilla tactic and smart financial decision made in denial of the core, emotional desire every human has to hold on to a home.
And these strategic defaults are socially contagious. I know one set of homeowners who recently reunited with several other couples they hadn't seen in years, and realized that three of the four were in the process of walking away.
The data bears this out: a recent study conducted jointly by professors at the University of Chicago and Northwestern University found that homeowners who know someone who has walked away from their home become 86 percent more likely to also walk away.
At the same time, a number of people I know are buying homes now, trying to take advantage of rock-bottom pricing and mortgage interest rates. One of these couples is buying a unit, and asked my advice on what to look for in their homeowners association documents.
I briefed them on the woeful state of many HOAs right now, and the ripple effect an insolvent HOA can have, first making the units virtually impossible to finance, minimizing the available pool of buyers to those who have cash, and finally, decimating the value of the association's units.
In her post-bubble voice, this uber-professional, responsible mother who earns six figures and has a 740 credit score, said, "We understand. We've decided to put 3.5 percent down, and we're buying the place for a couple hundred thousand dollars below what we sold for three years ago. We plan to stay put for the next 20 years-plus, but if we need to sell and can't because of HOA issues, we'll just walk away."
And as she said it, I had my own real estate awakening of sorts.
We can coin cute turns of phrase to lighten up the conversation, like calling frugal women "recessionistas" all we want, but let's face facts: This generation of real estate consumers has seen and lived through a brutal market.
And there are elements of that brutal business that have changed the way they will view and interact with and make decisions about real estate -- forever.
Data shows that walking away from a home and a mortgage is the very last resort, even for the most distressed homeowner. Yet this generation of real estate consumers now knows that it is a last-ditch option, if and when things do ever get that tough.
And, as the Chicago-Northwestern study found, consumers have seen people do it and not die, or get sued (banks can and do sue strategic defaulters, in a small number of cases and places where the law allows), or burst into flame from the immorality of it all.
On the upside, this reflects that this generation of homebuyers and owners is less bullied by corporate propaganda touting the immorality of strategic defaults, as put out by corporate entities that regularly, strategically default on their own loan obligations as a matter of good business.
This generation will be more prone to make financial decisions based on what is beneficial for their families and their financial futures than by the fear of a bad credit rating or the stigma of losing a home.
This generation's concept of their home will be as a place to live, and an asset which -- like all asset classes -- can increase and decrease in value (rather than our now-cured national delusion that homes only ever go up, up, up in value).
Homes, while still playing a role in how we see ourselves and express ourselves and how we live, will not for this recession-honed era of housing consumers be overblown in our heads as the be-all-and-end-all of our identities.
This, I hope and suspect, means that real estate will be respected as an area of life in which decisions must be made as deliberately as any other business decision, and with sustainability as the aim, but has also been put back in its place, so to speak, behind a number of other things that are actually, truly more important in life.
This is what I hear as the subtext behind the woman's statement that if forced to, she'd just walk away: I'm not willing to sink my family's entire financial ship over this asset.
Of course, there are certainly some much more grim implications to this evolution in the way we think about real estate. Ask anyone in the foreclosure hot spots in California, Nevada and Arizona.
When home values begin to decline widely, jobs leave, and people start walking away en masse so that everyone knows someone who has done it -- and lived to tell the tell -- it becomes extremely difficult to stabilize the market and avoid a complete plummeting of the entire market.
Not only do home values drop, so does sales activity as buyers become more and more fearful of continued value declines after they buy.
One of the issues with developing a more mature, less extremely optimistic and emotional attachment to anything in life, including real estate, is that it is very hard to rewind these sort of awakenings.
You've experienced this sort of thing as you grow awake to not just the parts of an issue in life that you love, but also the warts and gritty elements that make up the whole picture -- you grow, and are empowered to better assess and make decisions.
But some of those more informed, wiser decisions are painful. The outcomes, like the truth that caused you to evolve in your understanding, also have lovely and excruciating elements about them.
And so it is with America's real estate awakening. Lovely. Mature. Wise. And occasionally, excruciatingly painful.
Tami Winbury Keller Williams Realty 805-798-3412 http://www.venturacountyhomesforsale.net/
Tara-Nicholle Nelson is author of "The Savvy Woman's Homebuying Handbook" and "Trillion Dollar Women: Use Your Power to Make Buying and Remodeling Decisions."
Tami Winbury
Family Friendly Service
Wednesday, May 25, 2011
Tuesday, May 24, 2011
Home Buyer's 101- How To for First Time Home Buyers
Home Buyer's 101- How To for first-time home buyers.
That's why we at Keller Williams Realty and Tami Winbury put together our own First-Time Home Buyer's Kit. The free kit includes our Home Buyer's Handbook designed to provide answers to the more basic questions about buying a home.
What are the benefits of owning versus renting a home?
When you add up the tax benefits of owning a home versus renting a home, it costs no more to be a homeowner than it does to rent, in many cases. With this in mind, why help finance your landlord's financial goals when you can own your own home and, as your equity grows, increase your savings for the future as well?
Does my credit score affect my ability to secure a home loan?
When it comes to qualifying for a mortgage, the answer is never simply a matter of yes or no; it's a matter of when: When will you be ready to qualify? While your credit score does affect this process, with credit repair services, government loans, and other programs and strategies, homeownership can be a reality for anyone willing to put in the necessary time and effort.
What's the difference between being pre-qualified and being pre-approved?
There's a world of difference. A pre-qualification is a statement based often on unverified financial data. A pre-approval, however, is a decision to loan, and carries a lot of weight with sellers. With a pre-approval, you are essentially a cash buyer, and not only do you know exactly how much you can afford, sellers will take your offer much more seriously knowing you are pre-approved.
Get all of the answers you need from Tami Winbury. If you or someone you know is thinking about buying a home, her a call.
Tami Winbury Keller Williams Realty 805-798-3412 http://www.VenturaCountyHomesForSale.net http://www.LiveOjai.com
That's why we at Keller Williams Realty and Tami Winbury put together our own First-Time Home Buyer's Kit. The free kit includes our Home Buyer's Handbook designed to provide answers to the more basic questions about buying a home.
What are the benefits of owning versus renting a home?
When you add up the tax benefits of owning a home versus renting a home, it costs no more to be a homeowner than it does to rent, in many cases. With this in mind, why help finance your landlord's financial goals when you can own your own home and, as your equity grows, increase your savings for the future as well?
Does my credit score affect my ability to secure a home loan?
When it comes to qualifying for a mortgage, the answer is never simply a matter of yes or no; it's a matter of when: When will you be ready to qualify? While your credit score does affect this process, with credit repair services, government loans, and other programs and strategies, homeownership can be a reality for anyone willing to put in the necessary time and effort.
What's the difference between being pre-qualified and being pre-approved?
There's a world of difference. A pre-qualification is a statement based often on unverified financial data. A pre-approval, however, is a decision to loan, and carries a lot of weight with sellers. With a pre-approval, you are essentially a cash buyer, and not only do you know exactly how much you can afford, sellers will take your offer much more seriously knowing you are pre-approved.
Get all of the answers you need from Tami Winbury. If you or someone you know is thinking about buying a home, her a call.
Tami Winbury Keller Williams Realty 805-798-3412 http://www.VenturaCountyHomesForSale.net http://www.LiveOjai.com
Wednesday, May 18, 2011
Ca. Home Sells for $200K Over Asking Price
Don't place false hopes on a bidding war
When the market strongly favored sellers in 2005 and 2006, they usually didn't entertain offers the first day their listing showed up on the multiple listing service. If they had, they might have left money on the table. There were so many buyers chasing so few listings that waiting a week or so to hear offers often resulted in over-asking-price offers.
Today, that strategy is still used in some hot niche markets that defy the national trend. Listings in some locations like Ojai and Ventura County and some price ranges under $400,000 are in high demand. If the inventory of listings in these areas is low, it creates an imbalance that favors sellers in what is otherwise a buyer's market.
For example, one listing in Piedmont, Calif., a city with a great public school system, recently sold for $200,000 over the list price. The seller waited to hear offers until after two public open houses and a broker open house. Had he accepted offers earlier, he might not have done as well.
HOUSE HUNTING TIP: Waiting to hear offers can cost you money if your home isn't priced right for the market. If you price too high and also insist on waiting to hear offers, you're letting agents and their buyers know that you expect to sell for an unwarranted price.
On an overpriced listing, if offers aren't written by the designated date, you need to lower the asking price, usually by a significant amount, in order to rekindle enthusiasm for the property.
It's natural for sellers to want to get as much money as possible for their homes, particularly if they have a high mortgage balance. It's important to remember that the market sets the price, not the seller's expectations, dreams or how much they owe against the property.
One of the hardest exercises for sellers is to look at their home objectively, through the eyes of buyers who are hypercritical. Sometimes it helps for sellers to look at open houses of listings in their neighborhood that are similar to their home. However, some sellers are so emotionally attached to their homes that looking at other listings only strengthens their resolve that their home is worth more.
It's imperative for sellers to detach themselves from their homes in order to price for the market. Even in the hot segments of the market, overpriced listings don't sell. It helps to have an objective party advising you. Choose a local real estate agent who you respect and trust to represent you in the sale of your home.
Ask your agent, Tami Winbury at Keller Williams Realty to explain to you how your home compares with comparable listings that have sold in your area recently. What you might consider a benefit to your house may not be desirable in buyers' eyes. Listing at a price that's too high for the market will only hurt the marketability of your home in the long run.
Some buyers have an aversion to making an offer in competition against other buyers, especially if the news is that prices may not have hit bottom. In this case, you might not want to broadcast that you're waiting to hear offers until a specific date.
Here's another strategy to consider. Have your real estate agent tell agents and buyers who inquire about your game plan for offers that you haven't set a date, but that you want your home to have exposure to the market before you hear offers. In this case, you would at least want to have broad Internet advertising with photos, an open house for agents, and a public open house.
THE CLOSING: Putting off buyers who are interested in your home could backfire. So, don't wait too long if there are buyers who are serious about making offers.
Tami Winbury Keller Williams Realty 805-798-3412 http://www.venturacountyhomesforsale.net/ http://www.liveojai.com/
Dian Hymer,
When the market strongly favored sellers in 2005 and 2006, they usually didn't entertain offers the first day their listing showed up on the multiple listing service. If they had, they might have left money on the table. There were so many buyers chasing so few listings that waiting a week or so to hear offers often resulted in over-asking-price offers.
Today, that strategy is still used in some hot niche markets that defy the national trend. Listings in some locations like Ojai and Ventura County and some price ranges under $400,000 are in high demand. If the inventory of listings in these areas is low, it creates an imbalance that favors sellers in what is otherwise a buyer's market.
For example, one listing in Piedmont, Calif., a city with a great public school system, recently sold for $200,000 over the list price. The seller waited to hear offers until after two public open houses and a broker open house. Had he accepted offers earlier, he might not have done as well.
HOUSE HUNTING TIP: Waiting to hear offers can cost you money if your home isn't priced right for the market. If you price too high and also insist on waiting to hear offers, you're letting agents and their buyers know that you expect to sell for an unwarranted price.
On an overpriced listing, if offers aren't written by the designated date, you need to lower the asking price, usually by a significant amount, in order to rekindle enthusiasm for the property.
It's natural for sellers to want to get as much money as possible for their homes, particularly if they have a high mortgage balance. It's important to remember that the market sets the price, not the seller's expectations, dreams or how much they owe against the property.
One of the hardest exercises for sellers is to look at their home objectively, through the eyes of buyers who are hypercritical. Sometimes it helps for sellers to look at open houses of listings in their neighborhood that are similar to their home. However, some sellers are so emotionally attached to their homes that looking at other listings only strengthens their resolve that their home is worth more.
It's imperative for sellers to detach themselves from their homes in order to price for the market. Even in the hot segments of the market, overpriced listings don't sell. It helps to have an objective party advising you. Choose a local real estate agent who you respect and trust to represent you in the sale of your home.
Ask your agent, Tami Winbury at Keller Williams Realty to explain to you how your home compares with comparable listings that have sold in your area recently. What you might consider a benefit to your house may not be desirable in buyers' eyes. Listing at a price that's too high for the market will only hurt the marketability of your home in the long run.
Some buyers have an aversion to making an offer in competition against other buyers, especially if the news is that prices may not have hit bottom. In this case, you might not want to broadcast that you're waiting to hear offers until a specific date.
Here's another strategy to consider. Have your real estate agent tell agents and buyers who inquire about your game plan for offers that you haven't set a date, but that you want your home to have exposure to the market before you hear offers. In this case, you would at least want to have broad Internet advertising with photos, an open house for agents, and a public open house.
THE CLOSING: Putting off buyers who are interested in your home could backfire. So, don't wait too long if there are buyers who are serious about making offers.
Tami Winbury Keller Williams Realty 805-798-3412 http://www.venturacountyhomesforsale.net/ http://www.liveojai.com/
Dian Hymer,
Monday, May 16, 2011
Emotions of Buyers and Sellers
The Seller’s Point of View
Tami Winbury at Keller Williams Realty has just sold our home:
You are leaving a house you’ve called home for a number of years. You’ve been asked to move out your personal belongings, so the place hardly seems cozy or familiar anymore. You’re exhausted from keeping the place spic and span – show-ready at a moments notice.
Keeping after the kids and all their stuff is a job in and of itself, and being displaced repeatedly on weekends for open houses and showings is becoming quite annoying.
You’ve taken good care of the house for such a long time, and it finally paid off. You have an offer, and you and the buyers have come to agreement. But now it seems that the buyer ordered every inspection known to man, and was very aggressive in asking for one repair after another. Figuring all of that out means more people traipsing through your house, poking, prodding and who knows what? It’s very disruptive – you have so much to do to get ready for this big move!
They want to measure, photograph, match colors, re-visit – these extra visits are making you crazy! This house is so nice – close to perfect even! Why do they need to change everything? Isn’t it good enough for them – especially since they got it for such a screaming deal? Lila Francese is a home stager who will assist in getting your home ready to sell for the top dollar.
Enough already – can’t this all just wait until they own the place?
The Buyer’s Point of ViewWe’ve looked at a lot of homes. We’ve seen some in fabulous condition, but they’re too far from everything. This one has a great location and even though it’s had some nice updates to the kitchen and baths, there’s still a ton we have to do. The carpet’s worn. The paint colors are dark, and splotchy. The yard is very overgrown, so we’ll need to deal with that. And the heater and AC are old. We’ll no doubt have to replace those very quickly.
We were able to negotiate the price a bit, but we still have a lot of money to spend getting the place up to date. After all, the home we moved from had everything brand new. This feels like a bit of a step back, but this is where our job has taken us.
We could see quite a few ‘sins’ cosmetically and we were ok with those. But boy, we didn’t expect some of the things that came up as a result of the inspections. We still want the house and with the seller willing to make some concessions, we’ll put in a little more cash to make those other repairs as well.
But we’re getting a bit stressed out. There is some reluctance on the part of the seller to provide access to the house. We understand that they are packing to move, but the boxes and chaos doesn’t bother us. We have a big job ahead of us, and getting estimates and measurements helps us figure out what we can actually do right now, before we move-in.
With young children, it’s really hard to have any type of construction work after we move in. And we’re concerned about the dust and paint fumes a baby might breath in. Why can't they just hurry and get out? Don’t they know how hard it is to move into a house, and then have to move everything back out so contractors can do their work?
Why do they seem so concerned that we’ll be making changes to the place? It's not their house any longer.
You can see that both sides have legitimate concerns in this often stressful and emotional time. While difficult, understanding the situation from the other party’s perspective, will often help ease the tension. Usually, those sellers will soon be buyers, and one day, those buyers will be on the selling side.
Isn’t it good to know that most escrows are over in 30-45 days?
Call Tami Winbury Keller Williams Realty
805-798-3412 http://www.venturacountyhomesforsale.net http://www.LiveOjai.com
Karen Crowsen
Tami Winbury at Keller Williams Realty has just sold our home:
You are leaving a house you’ve called home for a number of years. You’ve been asked to move out your personal belongings, so the place hardly seems cozy or familiar anymore. You’re exhausted from keeping the place spic and span – show-ready at a moments notice.
Keeping after the kids and all their stuff is a job in and of itself, and being displaced repeatedly on weekends for open houses and showings is becoming quite annoying.
You’ve taken good care of the house for such a long time, and it finally paid off. You have an offer, and you and the buyers have come to agreement. But now it seems that the buyer ordered every inspection known to man, and was very aggressive in asking for one repair after another. Figuring all of that out means more people traipsing through your house, poking, prodding and who knows what? It’s very disruptive – you have so much to do to get ready for this big move!
They want to measure, photograph, match colors, re-visit – these extra visits are making you crazy! This house is so nice – close to perfect even! Why do they need to change everything? Isn’t it good enough for them – especially since they got it for such a screaming deal? Lila Francese is a home stager who will assist in getting your home ready to sell for the top dollar.
Enough already – can’t this all just wait until they own the place?
The Buyer’s Point of ViewWe’ve looked at a lot of homes. We’ve seen some in fabulous condition, but they’re too far from everything. This one has a great location and even though it’s had some nice updates to the kitchen and baths, there’s still a ton we have to do. The carpet’s worn. The paint colors are dark, and splotchy. The yard is very overgrown, so we’ll need to deal with that. And the heater and AC are old. We’ll no doubt have to replace those very quickly.
We were able to negotiate the price a bit, but we still have a lot of money to spend getting the place up to date. After all, the home we moved from had everything brand new. This feels like a bit of a step back, but this is where our job has taken us.
We could see quite a few ‘sins’ cosmetically and we were ok with those. But boy, we didn’t expect some of the things that came up as a result of the inspections. We still want the house and with the seller willing to make some concessions, we’ll put in a little more cash to make those other repairs as well.
But we’re getting a bit stressed out. There is some reluctance on the part of the seller to provide access to the house. We understand that they are packing to move, but the boxes and chaos doesn’t bother us. We have a big job ahead of us, and getting estimates and measurements helps us figure out what we can actually do right now, before we move-in.
With young children, it’s really hard to have any type of construction work after we move in. And we’re concerned about the dust and paint fumes a baby might breath in. Why can't they just hurry and get out? Don’t they know how hard it is to move into a house, and then have to move everything back out so contractors can do their work?
Why do they seem so concerned that we’ll be making changes to the place? It's not their house any longer.
You can see that both sides have legitimate concerns in this often stressful and emotional time. While difficult, understanding the situation from the other party’s perspective, will often help ease the tension. Usually, those sellers will soon be buyers, and one day, those buyers will be on the selling side.
Isn’t it good to know that most escrows are over in 30-45 days?
Call Tami Winbury Keller Williams Realty
805-798-3412 http://www.venturacountyhomesforsale.net http://www.LiveOjai.com
Karen Crowsen
Monday, May 9, 2011
My Aunties 40 Car Garage is For Sale!
40 Car Garage For Sale- House Included!
My Aunt and Uncles House is For Sale in Temecula! Check out their 40 Car Garage!!! 40-Car Garage For Sale postchronicle.com
Live in the Temecula, California area and have something like 40 cars taking up space in your driveway? Have we got the place for you.
The listing agent calls this place the "ultimate in luxury and unsurpassed in amenities," due in large part to the large garage attached to the $3,995,000 home. We'd like to meet the builder/owner who decided their home needed to have a garage almost as big as their living quarters. Priorities.
Here's how it's described:
6500 SF shop complex complete with office, living quarters, and work space for the serious car collector. Secured tool room with a rollup door, parts and supplies storage room, separate storage bays with rollup doors, outside work stations with skylights, industrial grade amenities with electrical and air fittings throughout the shop. Inside storage can accommodate 2 40' Motor homes bumper to bumper in addition to storage for a car collection of up to 40 cars. There is ample room to land a helicopter in the rear of the garage.
Oh, and there's a house attached to it as well. But who cares? Our only question is this: are the two El Caminos included?
Call me for details today. View Listings
Provided by:
Tami R Winbury (Lic: 01878369)
Keller Williams Realty
109 N Blanche St 102
Ojai, CA 93023
Cellular: 805-798-3412 <a href="http://www.venturacountyhomesforsale.net/" target="_blank"></a>
View Listings link will be available for 30 days. If you do not see a link, copy this text to the address line in your browser:
http://rapca.rapmls.com/scripts/mgrqispi.dll?APPNAME=rapca&PRGNAME=MLSLogin&ARGUMENT=EXd%2BVqm%2FfSTsk7PDT2uI9bhzNZpBKIs%2BOlgW9ze8v0E%3D&KeyRid=1&Include_Search_Criteria=
My Aunt and Uncles House is For Sale in Temecula! Check out their 40 Car Garage!!! 40-Car Garage For Sale postchronicle.com
Live in the Temecula, California area and have something like 40 cars taking up space in your driveway? Have we got the place for you.
The listing agent calls this place the "ultimate in luxury and unsurpassed in amenities," due in large part to the large garage attached to the $3,995,000 home. We'd like to meet the builder/owner who decided their home needed to have a garage almost as big as their living quarters. Priorities.
Here's how it's described:
6500 SF shop complex complete with office, living quarters, and work space for the serious car collector. Secured tool room with a rollup door, parts and supplies storage room, separate storage bays with rollup doors, outside work stations with skylights, industrial grade amenities with electrical and air fittings throughout the shop. Inside storage can accommodate 2 40' Motor homes bumper to bumper in addition to storage for a car collection of up to 40 cars. There is ample room to land a helicopter in the rear of the garage.
Oh, and there's a house attached to it as well. But who cares? Our only question is this: are the two El Caminos included?
Call me for details today. View Listings
Provided by:
Tami R Winbury (Lic: 01878369)
Keller Williams Realty
109 N Blanche St 102
Ojai, CA 93023
Cellular: 805-798-3412 <a href="http://www.venturacountyhomesforsale.net/" target="_blank"></a>
View Listings link will be available for 30 days. If you do not see a link, copy this text to the address line in your browser:
http://rapca.rapmls.com/scripts/mgrqispi.dll?APPNAME=rapca&PRGNAME=MLSLogin&ARGUMENT=EXd%2BVqm%2FfSTsk7PDT2uI9bhzNZpBKIs%2BOlgW9ze8v0E%3D&KeyRid=1&Include_Search_Criteria=
Friday, May 6, 2011
Zillow says 44% not confident in Home Loan Process. Are You?
Home buyers lack mortgage know-how
A new survey indicates that home buyers are ill-prepared to take out a mortgage, answering basic questions about mortgage information incorrectly nearly half (46 percent) of the time, according to a Zillow Mortgage Marketplace.
MAKING SENSE OF THE STORY
More than 1,000 home buyers were asked to respond true or false to eight mortgage-related statements, including “The rates of 5/1 adjustable-rates mortgages always increase after years.” Although the correct answer is false, because 5/1 ARMs do adjust after five years, but the rates could go up or down, 57 percent of people surveyed answered this question incorrectly.
Forty-five percent of home buyers surveyed also incorrectly stated that home buyers should always buy mortgage discount points. The fact is, the decision hinges on how long the borrower plans to own the property, and in some situations, buying mortgage discount points is not worthwhile.
An additional one-third of respondents do not understand that lender fees are negotiable and vary by lender, incorrectly thinking lenders are required by law to charge the same fees for credit reports and appraisals.
Survey respondents also believe that pre-qualifying for a loan means they have secured financing. With a pre-qualification, which is the earliest step in the mortgage process when a lender approximates the amount the borrower can afford, the lender does not run the borrower’s credit or request any documentation to verify the information provided by the borrower.
Slightly less than half of the polled prospective home buyers also do not understand that Federal Housing Administration (FHA) loans are available to all buyers, but instead believe only first-time buyers qualify. In reality, FHA loans can cost less for many buyers, including repeat buyers with low to average credit scores and with down payments of less than 20 percent.
Pop quiz. True or false, the rates of 5/1 adjustable-rate mortgages always increase after five years.
If you answered true, then you've joined 57 percent of people who also gave the wrong answer in a recent survey from real estate site Zillow on mortgage basics. (The right answer is false because while such loans do adjust after five years, the rates could go either up or down.)
This wasn't the only trouble area. The 1,000-plus poll-takers also had trouble with interest rates, FHA loans and lender fees. Overall, 44 percent said themselves that they were lacking in knowledge of the basics.
The consequence of misinformation could mean lost dollars for potential homebuyers, said Erin Lantz, director of Zillow's Mortgage Marketplace.
What she said:
By simply spending a few hours researching how a mortgage works, and by shopping around for the most competitive rates and fees, buyers can save a lot of money.
Other findings from the online survey, taken April 13-15:
--Forty-five percent of those surveyed think they should always buy mortgage discount points, which are prepaid interest. The fact is, the decision hinges on how long you plan to own the property. It would not be worthwhile to buy them in certain cases.
--Fifty-five percent of those polled don't grasp the concept that rates of home loans can change drastically throughout the day.
3 things you need to get financing
A good credit score. Check your score at the three major credit bureaus: Equifax, Experian and TransUnion. Lenders say 600 is the minimum while you’re in a good spot with a score of 740.
A steady job, the biggest clue you’ll be able to make your monthly payments. Consult a lender to figure out how much money you have to work with and which loan product would work best.
Enough for a down payment, which varies by loan size and type. Typically, a down payment is 10 or 20 percent. However, people are still able to lock in 90-95 percent loans, depending on the market and consumer’s circumstances, said Steve Hops, residential president of the California Mortgage Bankers Association and senior vice president of Guild Mortgage in San Diego.
Call Tami Winbury Today!
Keller Williams Realty
805-798-3412
http://www.venturacountyhomesforsale.net/
http://www.liveojai.com/
A new survey indicates that home buyers are ill-prepared to take out a mortgage, answering basic questions about mortgage information incorrectly nearly half (46 percent) of the time, according to a Zillow Mortgage Marketplace.
MAKING SENSE OF THE STORY
More than 1,000 home buyers were asked to respond true or false to eight mortgage-related statements, including “The rates of 5/1 adjustable-rates mortgages always increase after years.” Although the correct answer is false, because 5/1 ARMs do adjust after five years, but the rates could go up or down, 57 percent of people surveyed answered this question incorrectly.
Forty-five percent of home buyers surveyed also incorrectly stated that home buyers should always buy mortgage discount points. The fact is, the decision hinges on how long the borrower plans to own the property, and in some situations, buying mortgage discount points is not worthwhile.
An additional one-third of respondents do not understand that lender fees are negotiable and vary by lender, incorrectly thinking lenders are required by law to charge the same fees for credit reports and appraisals.
Survey respondents also believe that pre-qualifying for a loan means they have secured financing. With a pre-qualification, which is the earliest step in the mortgage process when a lender approximates the amount the borrower can afford, the lender does not run the borrower’s credit or request any documentation to verify the information provided by the borrower.
Slightly less than half of the polled prospective home buyers also do not understand that Federal Housing Administration (FHA) loans are available to all buyers, but instead believe only first-time buyers qualify. In reality, FHA loans can cost less for many buyers, including repeat buyers with low to average credit scores and with down payments of less than 20 percent.
Pop quiz. True or false, the rates of 5/1 adjustable-rate mortgages always increase after five years.
If you answered true, then you've joined 57 percent of people who also gave the wrong answer in a recent survey from real estate site Zillow on mortgage basics. (The right answer is false because while such loans do adjust after five years, the rates could go either up or down.)
This wasn't the only trouble area. The 1,000-plus poll-takers also had trouble with interest rates, FHA loans and lender fees. Overall, 44 percent said themselves that they were lacking in knowledge of the basics.
The consequence of misinformation could mean lost dollars for potential homebuyers, said Erin Lantz, director of Zillow's Mortgage Marketplace.
What she said:
By simply spending a few hours researching how a mortgage works, and by shopping around for the most competitive rates and fees, buyers can save a lot of money.
Other findings from the online survey, taken April 13-15:
--Forty-five percent of those surveyed think they should always buy mortgage discount points, which are prepaid interest. The fact is, the decision hinges on how long you plan to own the property. It would not be worthwhile to buy them in certain cases.
--Fifty-five percent of those polled don't grasp the concept that rates of home loans can change drastically throughout the day.
3 things you need to get financing
A good credit score. Check your score at the three major credit bureaus: Equifax, Experian and TransUnion. Lenders say 600 is the minimum while you’re in a good spot with a score of 740.
A steady job, the biggest clue you’ll be able to make your monthly payments. Consult a lender to figure out how much money you have to work with and which loan product would work best.
Enough for a down payment, which varies by loan size and type. Typically, a down payment is 10 or 20 percent. However, people are still able to lock in 90-95 percent loans, depending on the market and consumer’s circumstances, said Steve Hops, residential president of the California Mortgage Bankers Association and senior vice president of Guild Mortgage in San Diego.
Call Tami Winbury Today!
Keller Williams Realty
805-798-3412
http://www.venturacountyhomesforsale.net/
http://www.liveojai.com/
Wednesday, May 4, 2011
Selling Your Home 101- A Buyer is Ready to Present an Offer!
A Buyer is Ready to Present an Offer!
When an offer is presented, Tami Winbury will advise and help you to obtain the best possible price and terms. Understanding the standard forms and the many transactional issues is key to negotiating the best terms to meet your individual needs. Making sure buyers are pre-qualified is of utmost importance in negotiating a successful sale. Tami will promote your interests and assist in developing a clear and binding transaction.
Typically an offer is initiated by the buyer through their Realtor and includes the following information:
- The amount the buyer is willing to pay
- Mortgage amount, if any
- Closing and occupancy dates
- Contingencies, such as mortgage commitment, building inspections and pest inspections to include where appropriate (but not limited to): termite, pest, radon, water potability, well, lead, septic.
- Any personal property specifically included or excluded
- If the offer is not acceptable to you, further negotiations may be necessary to reach terms agreeable to both you and the buyer. Because counter-offers are common (any change in the offer can be considered a counter-offer) it is important that you remain in close contact with Tami Winbury during the negotiation process so that proposed changes can be reviewed and responded to quickly.
You have an Acceptable Offer!
Timing is critical at this stage! Escrow is opened and the contingency period begins. The typical contingency period is 17 days. This is when the Buyer completes their due diligence and all inspections are complete. You will be contacted by the Escrow Company who acts as a neutral 3rd party for Buyer and Seller and receive any instructions needed to complete paperwork.
Timing is critical at this stage! Escrow is opened and the contingency period begins. The typical contingency period is 17 days. This is when the Buyer completes their due diligence and all inspections are complete. You will be contacted by the Escrow Company who acts as a neutral 3rd party for Buyer and Seller and receive any instructions needed to complete paperwork.
Between Contract and Closing
Throughout the transaction, Tami will closely monitor the progress of all contingencies to make certain that all deadlines are met. 5 days prior to the day of closing, the buyer will have a “final walkthrough” to make certain that the house is left in “broom clean” condition and has been thoroughly vacated.
What to expect at the Closing
The closing is a formal process where all parties sign all of the necessary paperwork needed to complete the transaction. Title to the property is transferred from you to the buyer. The buyer receives the house-keys and you receive payment for the house! From the amount credited to you, the title representative subtracts the funds to pay off the existing mortgage and other transaction costs. Deeds, loan papers, and other documents are prepared, signed and ultimately filed with local property record office.
Call Tami when you are ready to list your house for sale!
Tami Winbury
Keller Williams Realty
805-798-3412
Tuesday, May 3, 2011
Rent vs. Buy- Which is Better in Your Area?
Rent vs. buy - which is better in your area? Use this interactive map to find out.
http://explore.trulia.com/datavis/rentvsbuy/Q2-2011/?ecampaign=anews&eurl=explore.trulia.com%2Fdatavis%2Frentvsbuy%2FQ2-2011%2F
We just released our Q2 2 Rent vs. Buy Index, which found that buying a home has become more affordable than renting in nearly 80% of major U.S. cities since last quarter. Find out how things have changed in your neighborhood with our interactive rent vs. buy map.
Call Tami Winbury Keller Williams Realty for information in your area and a free listing of available homes for sale and rent. 805-798-3412 http://www.liveojai.com/ http://www.venturacountyhomesforsale.net/
http://explore.trulia.com/datavis/rentvsbuy/Q2-2011/?ecampaign=anews&eurl=explore.trulia.com%2Fdatavis%2Frentvsbuy%2FQ2-2011%2F
We just released our Q2 2 Rent vs. Buy Index, which found that buying a home has become more affordable than renting in nearly 80% of major U.S. cities since last quarter. Find out how things have changed in your neighborhood with our interactive rent vs. buy map.
Call Tami Winbury Keller Williams Realty for information in your area and a free listing of available homes for sale and rent. 805-798-3412 http://www.liveojai.com/ http://www.venturacountyhomesforsale.net/
- In 80% of major cities across the country, owning a home is more affordable than renting
- Steady rents, falling home prices and lower mortgage rates have tipped the rent versus buy scale in favor of homeownership
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