Real Estate Blog

July Existing-Home Sales Fall as Expected but Prices Rise

5 Simple Steps to Buying a Home - It's not rocket science , but you could end up taking  one giant leap  if you don't read this blog!  ..especially first time homebuyers.

Step 1:  Find a Realtor to represent you. So many consumers spend hours and hours searching the internet for properties and driving around neighborhoods wasting time. I've said it before and I'll say it again..'A good Realtor is worth his weight in gold'. Spend your time searching the internet for a Realtor, find one and call him for a consultation. You can still search for homes yourself, but your Realtor can save you countless hours searching the wrong sites and looking at properties that are already sold. 

Your Realtor will have access to an MLS service ( Multiple Listing Service) in the area you are interested in. Most websites on the internet that allow users to search for homes have outdated properties. Homes are sold and it takes time for the information to be distributed to the internet sites. In contrast, the MLS has the information immediately. The catch is only Realtors have access to the MLS.

So find a Realtor, call him or her, meet with him or her, and hire him or her. The beauty of the whole thing is your Realtor, who works for you, is only compensated when he finds you the home you want....And the compensation comes from the Sellers of the house you buy!!!  Not the Buyer!.

For information on how to find a good Realtor and what a good Realtor should do for you, see my blog post : Why Do I need A Realtor® or Real Estate Agent at all?

Step 2: Find your DREAM HOME. After you hired your agent, search the market. Your agent will provide you with time-saving tips, links to search for homes and information that will help you save time and money. By listening to your needs, a good Real Estate agent will be able to set up filters and perform accurate property searches for you. Compile a list of your 5 top homes and have your agent set up tours of your 5 favorites. When you find the home that fits your needs its time to really put your agent to work!

STEP 3: Make an offer. This is where a good agent will earn his commission and then some. Putting together an offer involves a lot of paperwork along with a fair amount of skill. Many factors need to be considered and disclosures need to be  made by both parties. Your agent will help you navigate these waters. Put your offer together with the help of your agent, taking into consideration the temperature of the current market. Once your get your property under contract....Step 4 , here we come!

Step 4: Secure Financing. Actually, if your agent knows what he is doing, you will already be pre-qualified at this point. Now its time to lock in a rate, and get your loan approved. Again, this is not difficult but you should have the advice of a Realtor. You will need some advice by someone who knows how to look at a lenders GFE(Good Faith Estimate). The GFE is where all your fees and expenses to get you in that home should be disclosed. There are rules about what a lender can and cannot change once he gives you a GFE. Your agent can help you decipher the GFE and make sure you are getting a good deal on financing.

 Step 5: Settlement on your new home.  After you have secured financing and crossed all the t's and dotted all the i's, its time to go to settlement. At settlement you will again cross all your t's and dot all your i's. Signing all the paperwork at a real estate settlement can be very stressful and intimidating... if you don't have someone on your side to answer questions........YOUR REALTOR!. You should understand everything you sign at settlement, and the settlement attorney is not representing you, so you may or may not get detailed explanations. 90% of the time settlements go smoothly, if not its in your best interest to have your Realtor there.

So that's it!, 5 simple steps. Of course there are many small items that need addressed throughout the entire process, and thats why you want to find a good Realtor, and hire him to be your buyer representative.

-Cal Williams

www.CalWilliams.com 

Welcome to 2010. The Vancouver Olympics are in full swing, the economy has shown signs of life and the average American still can't get a loan to buy a home!

The factors contributing to our current economic  'situation'  have produced a climate where....LENDERS WONT LEND MONEY!

As we all know, the Real Estate Market is a huge part of our national economy. Until the credit crunch loosens and banks begin to lend money, the Real Estate Market will remain tight and it will remain a BUYERS MARKET. But,it's a buyers market only in the sense that SELLERS are not getting the prices they were getting a few years ago and there are not enough qualified BUYERS to put upward pressure on home prices.

What can SELLER'S do to combat these evil forces? What can home sellers do to get the 20% appreciation they are entitled to? 

Well there are some things homeowners can do  to increase the value of their home and help them to get a fair price on their home when it is time to sell. Firstly, the days of 20% appreciation are gone, so we might as well get used to that now.  Despite the gloom and doom seen all over the news, there still are many qualified buyers searching for a home. Not all buyers are looking for distressed and bank owned properties.

With a few simple home improvements, sellers can as least know they are putting their best foot forward when getting their home on the market. ( I'll just mention here that every homeowner owes it to themselves to consult with a Realtor before putting their property on the market...See my other blogs....and its financially prudent.)

What improvements bring the most value for resale? Typically, bathrooms and kitchens are the most secure in getting your investment back out when you sell. These items are also the most prominent for new homebuyers and can increase your sale price as well as set you apart from other homes. Finished basements are also popular but do not raise the market value of the home much.

But what about exterior improvements?

A December report released by The National Realtors Association shines the light on this very subject.

The article state "the smartest home improvement investments may also be some of the least expensive. Results from the 2009 Remodeling Cost vs. Value Report show that small-scale exterior projects are the most profitable at resale, according to estimates by Realtors® who completed a recent survey."

Exterior Remodeling Proves Best Bang for Your Buck, Realtors® Report

In todays Real Estate market, Sellers need to keep on top of the trends and what buyers are looking for. The competition can be fierce, many sellers trying to attract fewer buyers....supply and demand..ecomonics 101..thanks Professor Bellinger...Dickinson College.

- Cal Williams

www.CalWilliams.com

The slide began on 2007.  Prices were  rising, inventories were low and interest rates were low. The market was hot and real estate was the primary wealth building tool for Americans. But the slide was already beginning. A closer look at transaction reports would have made industry experts realize that there had already started a fundamental change in the markets. Most consumers and most real estate experts did not see the changes until it was too late. I'm sure there were signs but I didn't see them. Credit has dried up and problems in the real estate industry still dominate the headlines.

Now , as we head into 2010, if real estate is to remain the foundation of the American economy, what needs to be done and who needs to do it?

The first thing is to get the blame out-of-the-way. We always need to place blame before we can move on.

There is plenty of blame to go around as to why the collapse occurred at all. Lenders, consumers, appraisers and the business cycle have all been blamed. And don't forget the media, which loves to make everything seem worse than it is.  Its time to forget about who to blame and start paying attention to moving forward. 2010 is shaping up to be the year that the real estate industry  must  get back on course, for the good of our national economy.

Moving forward, the most widely publicised and brightest star in the real estate industry is, of course, the First Time Buyer Tax Credit, which we all know has been extended and expanded ( see previous blogs ).  Along with the tax credit providing an  unbelievable lift to the markets, I think consumer confidence needs to come back and it slowly will. There is ALWAYS a need for housing. There ALWAYS will be a need for housing.  Consumer confidence will return  and I think there are many signs that it already has begun to bounce back. The tax credit helps, but the simple fact that homeownership has been a part of the American Dream is what always helps to bring real estate back. This has all happened before and will again!

The benefits of homeownership are so great in this country that eventually the consumers will push the market back to where it should be.  One of the criticisms of our government, in regard to the collapse, was that they have made it too easy to buy a home.  But the reality of the situation, as every Econ 101 student knows, is that markets are cyclical. There will always be ups and downs. How high and for how long, and how low and for how long are the only variables.

Consumer confidence will return, if it has not already. On top of that, the government needs to continue to get credit flowing again and help existing homeowners keep their homes. There are many programs in place to help do this. Banks seem to be working with homeowners, through modifications and repayment plans, to help them keep their homes for the most part.

There is no denying that homeownership has many benefits and has a positive effect our national economy. I believe the people in position to help us through this understand this and are doing the right things. The market will always have its ups and downs. The severity of the business cycle, in either direction, is what we must control and prepare for.

Our economy and the world economy will benefit from getting the real estate industry back on track in 2010. I believe that the support and programs being initiated by the industry and the government will make this happen, and 2010 will be the year that noticable improvements in the real estate market are realized by the consumer.

Cal Williams

www.CalWilliams.com