October 6, 2009
Ever wonder what determines the home values in your neighborhood? Why is it that your home value is dropping while your neighbor’s home value remains the same?
There are a number of factors that are put into play when determining the value of your home…
- One important factor is the physical characteristics of your home. A larger home, in terms of square footage, is of course, going to be worth more than a smaller home. Other characteristics include extra bathrooms, curb appeal, added features such as a wine cellar or a screened in porch; all of these will increase the value of your home.
- Another factor is the condition of the current real estate market. This factor has become the trickiest, especially in today’s market! During the times when the demand for new homes is high, and the number of homes available in inventory is low; property values will rise. On the opposite side of the scale, when there are many homes in the inventory, and not a whole lot of buyers looking; the home prices will fall, as is the case today.
- Location, Location, Location! One of the main factors to consider when determining your home value is where it is located; a home located on the water is obviously going to have a home value higher that a home that is not. This can vary from neighborhood to neighborhood, town to town and even state to state. Homes that are located in a more alluring location are less likely to lose home value during times such as we are experiencing today.
When examining the fluctuating home values between homes in one location, look back at when the homes were purchased. Newer neighborhoods that saw their home prices rise rapidly during the housing boom have seen them fall just as quickly. In many cases, the lower priced homes were hit the hardest; these are the homes that brought in the investors. During the real estate boom, many investors were purchasing handfuls of houses at a time, and a large percentage of these houses have now foreclosed, dropping the home value.
It appears to always come back to location. Homes that were purchased in a more desirable location have not seen much activity with the values of their homes, even during a time when the a large percentage of homeowners are now upside down in their mortgage.
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September 29, 2009
With the deadline to the first-time homebuyers tax credit program just around the corner, some may believe that they have missed their chance.
This may not be the case; the trick is to find a home that can close quickly without having to wait for a tour. Ask your agent some important questions that may not be addressed on the listing, such as…
- Is their any mold in the home?
- Are their extensive repairs that need to be done?
- How long has the property been listed?
- Are there any other offers that have been written?
- How old are the appliances in the home?
- When do the current homeowners need to move out?
- What are the neighbors like?
If all the answers are to your liking; all you have left to do is make certain that you can begin the process right away and that you have all your financing information ready and available. You could very well be in your new home with a tax credit by November 31, 2009!
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September 17, 2009
Good News! Extending the tax credit for first-time homebuyers is being considered by the Obama Administration!
According to spokesman for Obama’s economic team, Robert Gibbs, the team is evaluating the impact that an extension of the tax credit would have on home sales in order to make a presentation to the president.
As of now, the tax credit covers up to 10% of the new home price up to $8,000 and is scheduled to end on November 30, 2009.
So, just in case the extension falls through, first time homebuyers interested in receiving the tax credit should act now, in order to close by the end of November!
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September 9, 2009
As time rolls by, it becomes more apparent that purchasing a home now, just makes sense! The tell-tale signs are all there…
- Mortgage giant, Freddie Mac released a study last week that shows that 30-year fixed rate mortgage interest rates are still dropping. Last week the rates were at 5.14%; this week 5.08%!
- The National Association of Realtors‘ housing affordability index shows that out of the eight ‘most affordable housing’ months, seven of them were this year!
- Bankrate.com, a web-based company that specializes in lending trends, recently reported that closing costs on home purchases have dropped to levels equaling 2007 rates.
- And you certainly don’t need an expert to tell you that the house prices are lower than they have been in 20 years!
Now is the time for all potential homebuyers to become a full-fledged homeowner, before the rates begin to rise, bringing the home prices with them!
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May 4, 2009
First-time homebuyers are being enticed to purchase real estate during a time when the market has some of the best deals since 2003, in some places! Low interest rates, incredible low home prices and the $8,000 tax credit is indeed, a hard thing to pass up! Wouldn’t it be nice to be able to use that tax credit as your down payment?
Many states across the Nation are finding ways to make that happen by using bridge-loan programs that would allow first-time homebuyers to take out a type of second mortgage. The second mortgage would be credit dependent and may or may not include interest charges; these funds would become payable around June of 2010 when you receive your income tax return.
Missouri was the first state to introduce a program such as this, buy allowing qualified first-time home buyers to receive a “no-cost” tax credit advance of up 6% of the home price. If the home buyer is unable to re-pay the credit advance by the time allocated, the advance will turn into a good old fashioned 10-year second mortgage with a fixed interest rate of 1/2 of a percentage point higher than the rate on the first mortgage!
Here in Florida, a host of groups, including the Florida Association of Realtors, have been lobbying the state to incorporate such a program to assist first time home buyers with the down payment money. The hard part was trying to get the bill passed before the 1st of May, when state lawmakers have to have their annual session complete. Since the prospect of this bill actually passing in time seemed unlikely, other options, that would not include legislature, were being looked into.
One of the options would include the state issuing short-term notes to the banks to be offered to first-time homebuyers, when the homebuyers receive their tax credit; it is to be paid back to the bank.
Down payment changes may be coming to Florida soon, I’ll keep you posted!
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April 23, 2009
We are amidst the spring selling season for real estate at the moment, and today the existing home sales data for March should be released. There has been some evidence that that the home sale prices are beginning to hit rock bottom, which indicates that now it the time to buy!
First time home buyers are being lured in by the low interest rates, $8,000 tax credit and the amazing low home prices. Real estate investors are watching the housing inventory decline and the sales prices drop and are preparing to make their move. These prices and incentives will not last forever, as the inventory declines; home prices will rise.
If you’re even remotely interested in purchasing a home, don’t wait it out, in a few years time you will regret not getting in on the deals that are out there.
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April 16, 2009
On Wednesday, April 15, 2009, Donald Trump appeared on “Larry King Live”, boasting his new book, “Think Like a Champion”. During his interview with Larry King, Trump acknowledged that this is a great time to purchase real estate!
During these hard economic times, folks are losing their homes, their jobs and consumer confidence; however, with all the incentives that have been put into place by the Obama Administration, the housing inventory in Florida is finally starting to drop again. First time homebuyers are enticed by the low interest rates, the $8,000 tax credit and the affordable prices!
Be forewarned, these prices will not last forever, once the housing inventory begins to level out, prices will rise; according to Florida Governor Crist, You’ll be kicking yourself in two or three years if you don’t buy at today’s prices!
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January 14, 2009
Since home prices and interest rates have drastically reduced, first time home buyers may finally be able to afford that home that they have been saving for! As of December, first time homebuyers only need a median household income of roughly $35,000 to purchase a home in the low to mid $100,000 bracket!
With a good credit score and a 10% down payment plus closing costs, qualifying for a mortgage loan should be relatively easy at this point. There are many loan programs out there to help first time homebuyers, some of which will offer thousands of dollars above the mortgage price for repairs that may be needed if purchasing a distressed home. A good rule to follow to determine how much house you can really afford is by calculating 28% of your monthly gross income. The number that you come up with should be the total that you spend on your mortgage including insurance and taxes.
Ginnie Mae, a government backed loan agency has a simple home-loan calculator that can aid in your search to determine what you can afford; having this information before you sit down with a loan officer will make you little more comfortable.
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September 21, 2008
Buying a home may very well be one of the biggest purchases that you will make in your life. Researching your purchase can take a bit of time, but it is well worth it. With the real estate of today, there are plenty of homes for sale out there, this is a buyers market!
Decide which kind of homebuyer that you are. Would you like a ‘fixer-upper” that needs some work to transform it into the home that you desire, or would you prefer to have a home that is ready to move in with no changes that need to be made? What kind of home do you want? Would you prefer a single family home, an apartment, waterfront property or would you like to own land? Once you have decided which kind of home that you are looking for it’s time to figure out where you want to live.
You can change any thing in your home to make it into something that you desire, except the location! Be sure that your home is feasible for work travel. With gas prices the way that they are today, you want to make sure most of your mortgage payment isn’t going into the tank of your car. Check out the neighborhoods in the area and look for noisy neighbors, traffic situations, and access to shopping, schools and parks until you find the neighborhood that suits your needs.
Once you have found the right neighborhood for you and you start looking at the houses, make a checklist of things that you will not change your mind on, and things that you can work with. Look at the yard. Is it suitable for pets, children and/or gardening? How about your neighbor’s view of your home? Does their window look into yours? Are there stairs? Check the condition of the roof of the home, the plumbing and closet space, be certain that these things are up to your standards.
Taking this extra time to fill your needs could save you money and frustration in the long run!
Other related articles
Fixed Rate Mortgage vs. Adjustable Rate Mortgage
Green Mortgages in West Central Florida
Ins and Outs of Gated Community Living in Citrus and Hernando Counties
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September 12, 2008
When purchasing your new home, it is important to have all the facts that you will need readily available for the lender. Choosing which type of mortgage that you will be paying for the next 30 years is a big decision. There are two primary types of mortgages, a fixed-rate mortgage and an adjustable-rate mortgage (ARM).
A fixed-rate mortgage includes a fixed interest rate into the montly mortgage payment. This interest rate will not change during the life of the loan, the amount of interest and principal may vary from month to month, but the monthly payment is the same. The advantage to a fixed-rate mortgage, is that the borrower is protected from any interest rate changes that could raise your monthly payments.
Adjustable-rate mortgages sets the interest rate below the current market rate at the beginning of the loan but consistantly changes throughout the life of the loan. The advantage to an ARM is the lower monthly payments in the beginning of the loan, allowing the borrower to enjoy low interest rates without the need to refinance.
Choosing which type of mortgage that is right for you could take some time and effort on your part, however, it will pay off in the long run by helping you to avoid any costly mistakes.
Other related articles
Green Mortgages in West Central Florida
Preparing for a Mortgage Application
Lease Option to buy in Hernando and Citrus County
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