According to Daily Real Estate News, Almost 80 percent of agents who were survey said that buyer who are out during the holidays are more serious.  Over 60 percent of agents said that because there are less homes on the market that there is not as much competition for the seller since less homes are generally for sale during that time.   Interestingly enough, almost 20 percent of agents said that the homes felt more cozy due to the cold weather.

During the winter season photographs the the property are even more important for the sale of the home according to the interview by Realtor.com.  Sellers don’t tend to offer open houses as much during the holidays, therefore relying more on the photos and videos.  This also helps the buyer bypass listings that do don’t interest them.

Helpful Tip:  Find an agent that takes good photographs.  I am a photographer on the side and I have had many people remark on the photos and how the photos got them to look at the property.

Photo Copyright 2006 Amy S Myers

Private transfer fees are part of a covenant attached to a property deed that forces the seller to pay 1 percent of the purchase price to a private third-party entity every time the property sells over the next 99 years. These fees cost unsuspecting homeowners thousands of dollars in additional closing costs.”

Quoted from:

http://www.parjustlisted.com/archives/8065#utm_source=feed&utm_medium=feed&utm_campaign=feed

“Sprinklers no longer a mandate in Pennsylvania!

Governor Tom Corbett today signed his first bill, House Bill 377 which removes the sprinkler mandate on all newly constructed one- and two-family homes. The new law is Act 1 of 2011.

Now that sprinklers are a consumer choice, builders must offer a buyer the option of installing sprinklers. Builders must also provide the buyer with information made available by the State Fire Commissioner on the possible benefits of installing a sprinkler system.

Among other things House Bill 377 will also change the codes adoption process in Pennsylvania and require increased standards for fire protection of flooring.

As of January 1, 2010, sprinklers are mandated in newly constructed townhomes. Act 1 will not change this requirement.”

1. Just because a house looks good does not mean it is. There could be”mold like” substances hiding behind walls and floorboards which could lead to costly repairs. Sometimes a foreclosure or fixer upper can look run down and have an excellent shell and important interior parts. Recently I took a buyer into a an older $22,000 – 4 bedroom foreclosure. You could tell the home was wonderful in its day. But what we found out was that some of the beams in the basement were burned. Insurance money, we thought, had made some nice upgrades but . . . there was also the hidden issue of the home being required to tap in to new sewer lines in the town – ouch! I made sure any interested parties were aware.

Also, don’t rely on any previous inspections if there would be any. Empty homes can deteriorate quickly. I always suggest buyers have an inspection. Also you should check the sewer/septic and water statuses as some banks claim to know nothing about whether these systems exist or are currently in working order.

2. Price is should not always be the focus. The price will get many people’s attention. You want to research quality of the school district, location, crime rate and even the view, and accessibility. Also financial problems are not always the main reason for every foreclosure.

3. Don’t be tempted to “flip” the house. Sometimes the price is not always low enough for a neighborhood to get your money back out of the flip. Always consult a real estate professional, home inspector or a contractor if you lack that knowledge.

4. Stick to a budget. Buyers need to make sure that they have the money to repair what they need or want repaired. Buyers should avoid taking additional loans. A great option in some cases is a rehab loan. For example, there is a loan called a 203K rehab loan (not all loan agents have knowledge of how to run them nor do all want to). This loan will escrow money for needed repairs that are are required to get financing or even additional things that are desirable to do.

Here is a neat article with before and after photos of a remodeled fixer upper. You have to have vision when purchasing a home like this. As an agent, is amazing to see what different people see when they walk into a home.

Stylish Remodels: A Foreclosure Gets a Dramatic Makeover

1. Low Interest Rates. Interest rates are still hovering at historic lows. This means that you can qualify for more house for your money than you may if rates shoot up.  If you wait, you could be priced out of a home that is at the top of your comfort range if rates increase.  No one knows how long rates will stay low.    If you are on the fence about buying this is definitely a reason.

2. Mortgage Interest Deduction: Currently home mortgage is deductible on your taxes saving you money.

3. Affordability: Low interest rates along with recently falling prices in some areas have given buyers even more of a reason to buy.  Price is the number one reason a home sells.

4. Paying Towards Ownership. Each payment you make on your own home goes towards your future equity.  You are paying yourself instead of the Landlord.

5. Appreciation: Besides paying toward ownership you have the opportunity to get more value as the equity as your home value increases.  So, in most cases, you will gain more value in staying in your home longer.

6. Home equity: As you build home equity, you gain value by being able to borrow against it for repairs and improvements.

7. Stability: Owning a home builds stronger communities, people take pride in their homes and neighborhoods and get involved in their community.

8. Monthly Payments: Once you have paid off your 15, 20, or 30 year mortgage, you will be free of that monthly payment.  You will still be paying property tax, insurance and some maintenance.   In most cases, reduction in monthly obligation will be less than what you would be paying a landlord.

Here is a  photo of one of my puppies, to share from the February 2010 blizzard, since the snow season is upon is.  We can hope we don’t get that much this year.

1. Shop for the best rate possible. Pay close attention to the points you will be charged. This can save you thousands of dollars over the life of the loan.

2. Ask the lenders to give you a good-faith estimate (GFE). This statement will itemized the closings costs for you. Ask the lender any questions you may have regarding any of the fees.

3. Prepayment Penalty. Make sure you do not have a prepayment penalty. Life changes and you may need to resell. In addition, you may want to refinance or pay additional or your principle loan amount.

4. Be comfortable with your lender. This can avoid closing time surprises. Make sure your lender is responsive and gets back to you in a timely fashion.

5. Find a lender that can work with your specific situation. Not all lenders know how to run all types of loans. Some can work with tough credit and some can’t. Some now how to run through state programs and some not. Ask specifically if they can help you with the kind of program you need. Ask multiple lenders these questions.

6. Ask how long your rate lock period is. Each lender has a different lock rate period for you to choose the rate. The lock length rate can vary from 30-90 days. Some lenders charge a fee if you want to change the rate once locked in. Interest rates may be increasing during the time you are applying for your loan. So keep a close eye on rates and ask your lender to assist you. They know the market’s rate history and trends well.

Here are some interesting facts.

1. Low-income borrowers are not the only one’s to benefit from FHA Loans.  There is no maximum income restriction.
2. FHA loans can be for more than first-time home buyers.
3. FHA loans are not only for lower priced homes. Loan amounts for FHA can be almost $800K. The loan amount cap was originally around $363,000 and increased to almost $800K to help stabilize the housing market.
4. FHA does not have anything to do with low-income housing. Simply FHA loans are mortgages that are insured by FHA.
5. FHA loans, in many cases, are more affordable conventional loans and allow the borrower to have a smaller down payment.
6. More lenders are willing to loan to to FHA (the federal government) that assures repayment.
7. FHA loans can be assumed. This means a new buyer can take over the payments as long as they bring the seller’s current equity (cash in the home) to the table. This works well when interest rates have risen greatly compared to what the seller’s current mortgage interest rate is.

Read More at RISmedia

But did you know that if you are stepping up and having trouble selling your home, you can still qualify without actually selling the first home.  But. . . you must purchase the second home as your primary residence.   Not too bad.  It is time to move.  . . .  Are you ready?

“There is no requirement that existing homeowners must have sold their home to be eligible for the $6,500 tax credit. However, Weichert encourages existing homeowners who want to benefit from this incentive to move quickly, particularly those who prefer to first sell their current home before purchasing a new one.”  Quoted from : RIS Media – Repeat Buyers Need to Act Fast to Capitalize on Expanded Tax Credit

Tax Credit Details

Additional Tax Credit Details from Realtor.org

Frequently Ask Tax Credit Questions

AKHome.info Tax Credit Archives

1) One of the first thing to do is to locate an agent that you feel comfortable with and that has your best interests in mind. Interview them if you do not know someone personally, even if you are looking to have representation as a buyer.

2) At the same, time find a loan agent. Check with your agent as he or she may have many contacts from mortgage companies and banks. Quite often I find that Mortgage companies may have better programs and lower rates, although not 100% the case.

3) The next thing is to do a budget after getting pre-approved with your loan agent. Many of my buyers says to me, “I am approved for this amount but I don’t want to go that high”. They would like some breathing room.

Below you will find a link for a home affordability calculator for the NAR (National Association of Realtor’s). If you need assistance, have your loan officer, real estate agent, tax advisor sit down and go over your figures with you. Happy House Hunting. Tax Credit deadline to be under contract is April 30, 2010.

Home Affordability Calculator

Top Cities that were least effected by the Recession from Forbes:

“To identify these cities, Forbes magazine ranked the 100 largest Metropolitan Statistical Areas by employment rates, the conventional mortgage home price index, and the average days on the market for properties currently for sale.

The top cities on Forbes list were:”

* Omaha/Council Bluffs, Neb.
* San Antonio, Texas
* Austin-Round Rock, Texas
* Pittsburgh
* Harrisburg/Carlisle, Pa.
* Dallas/Fort Worth
* Rochester, N.Y.
* Houston
* Raleigh/Cary, N.C.
* Baton Rouge, La.”

Quoted from Realtor.org and Forbes, Francesca Levy (11/19/2009)

Heinz Stadium, Pittsburgh, PA

Photo Copyright, 2009 Amy S Myers