Bonnie’s Eating Plan
Developed by Jo Turner, NMD
17224 N 43rd Av
Glendale, AZ 85308
602.938.5747
Guidelines:
· No wheat, dairy, refined sugar, white potatoes or corn
· Use real butter
· Use Stevia for sweetening – not Nutrasweet, Splenda or pink packets
· Use olive oil and apple cider vinegar with herbs a salad dressing – as much as desired
· Use Celtic salt or sea salt as table salt
· Choose organic when possible
· Use olive oil for light sautéing and coconut oil for higher heat (frying)
· Eat more vegetables than fruit daily
· Have two to four protein drinks daily
· Drink coffee, tea – one soda a day is okay
· Drink six to eight glasses of water a day. (Rule of thumb: ½ your weight is the number of oz of water you need a day. If you weight 130, you need 65 oz of water daily.
· Fiber – use Psyllium capules or Metamucil
· Take a multi-vitamin plus 2000 mg of Omega 3 Fish oils daily
· Caution: don’t take vitamins or medicines at the same time as your fiber!
For Women:
1 protein and 1 carbohydrate for Breakfast
1 protein and 2 carbs for Lunch
2 proteins and 1 carb for Supper
For Men:
1.5 protein and 1 carb for Breakfast
1.5 protein and 2 carbs for Lunch
2 proteins and 1.5 carbs for Supper
Protein – 1 serving equals one from the following list:
· Cooked meat – palm size and about 1 inch thick
· Two medium eggs (not fried) from free-range, bug-eating chickens
· One slice of real cheese
· Two or three slices of deli meat (avoid nitrates and nitrites)
· Two slices of Canadian bacon
· Half cup cottage cheese
· Two strips of turkey bacon
· One good size turkey sausage patty
· One chicken breast or equivalent for turkey
· Fish – palm size and about 1 inch thick (Wild Salmon and Cod are best choices – no farm-raised fish)
Carbohydrates – 1 serving equals one from the following list:
· One cup vegetable – raw or cooked (the more color, the better the nutrition)
· Half cup carrots – raw or cooked
· Half a medium sized sweet potato or a really small one
· 6 oz vegetable juice
· Half an avocado
· Half cup oatmeal uncooked – then cook it (use steel cut oats, not instant)
· Six spears of asparagus
· One to 1-1/2 cup watermelon
· One cup honeydew melon
· Half a banana
· Half cup grapes
· Half cup sliced strawberries
· Half cub blueberries or blackberries
· Half an apple
· Half an orange
Wednesday, October 29, 2008
Your Down Payment Affects Everything
Your Down Payment Affects Everything (courtesy Jason Servais, Countrywide Home Loans, (602) 410-2118.
Your First Step Toward Buying a Home. When preparing to buy a home, the first thing many homebuyers do is look at "homes for sale" ads in newspapers, magazines and listings on the internet. Some potential buyers read "how-to" articles like this one. The next thing you should do – before you call on an ad, before you talk to a Realtor, before you shop for interest rates – is look at your savings.
Why? Because determining how much money you have available for down payment and closing costs affects almost every aspect of buying a home – including how you write your purchase offer, the loan programs you qualify for, and shopping for interest rates.
Mortgage Programs. If you only have enough available for a minimum down payment, your choices of loan program will be limited to only a few types of mortgages. If someone is giving you a gift for all or part of the down payment, your options are also limited. If you have enough for the down payment, but need the lender or seller to cover all or part of your closing costs, this further limits your options. If you borrow all or a portion of the down payment from your 401K or retirement plan, different loan programs have different rules on how you qualify. Of course, if you have enough for a large down payment, then you have lots of choices. Your loan choices include such varied programs as conventional fixed rate loans, adjustable rate mortgages, buydowns, VA, FHA, graduated payment mortgages and all the varieties of each.
Shopping Rates. A very important reason you need to have at least some idea of your down payment is for shopping interest rates. Some loan programs charge a slightly higher interest rate for minimal down payments. Plus, the interest rates for different loan programs are not the same. For example, conventional, VA, and FHA all offer fixed rate loans. However, the rates vary from one program to another.
If you shop lenders by phone, the loan officer will be able to tell which programs fit and quote you rates accordingly. However, if you are shopping on the internet, you have to have some idea of your loan program on your own.
Writing Your Offer. Another reason you need to have a clue about your down payment is because it affects how you write your offer to purchase a home. Not only are you required to put your down payment information in the offer, but different loan programs have different rules which also affect how you write your offer. This is especially important when dealing with FHA and VA loans.
If you are asking the seller to pay all or part of your closing costs, you have to be certain your loan program allows what you are asking. For smaller down payments, lenders allow the seller to pay less closing costs than for larger down payments. Some loan programs will allow a seller to pay certain types of costs, but not others.
Finally, your down payment also affects your ability to qualify for a loan. When you make a small down payment, lenders are fairly strict about having you conform to their underwriting guidelines. For larger down payments, they will tend to make allowances or exceptions to the rules.
Conclusion. As you can see, the down payment affects every choice you make when you buy a home. Although you should look at ads, familiarize yourself with neighborhoods, learn about prices, and read as much as you can - when you get ready to take action – the first thing you should do is figure out how much money you have available for the purchase.
copyright 2000 by Terry Light and RealEstate ABC, modified 2002
Your First Step Toward Buying a Home. When preparing to buy a home, the first thing many homebuyers do is look at "homes for sale" ads in newspapers, magazines and listings on the internet. Some potential buyers read "how-to" articles like this one. The next thing you should do – before you call on an ad, before you talk to a Realtor, before you shop for interest rates – is look at your savings.
Why? Because determining how much money you have available for down payment and closing costs affects almost every aspect of buying a home – including how you write your purchase offer, the loan programs you qualify for, and shopping for interest rates.
Mortgage Programs. If you only have enough available for a minimum down payment, your choices of loan program will be limited to only a few types of mortgages. If someone is giving you a gift for all or part of the down payment, your options are also limited. If you have enough for the down payment, but need the lender or seller to cover all or part of your closing costs, this further limits your options. If you borrow all or a portion of the down payment from your 401K or retirement plan, different loan programs have different rules on how you qualify. Of course, if you have enough for a large down payment, then you have lots of choices. Your loan choices include such varied programs as conventional fixed rate loans, adjustable rate mortgages, buydowns, VA, FHA, graduated payment mortgages and all the varieties of each.
Shopping Rates. A very important reason you need to have at least some idea of your down payment is for shopping interest rates. Some loan programs charge a slightly higher interest rate for minimal down payments. Plus, the interest rates for different loan programs are not the same. For example, conventional, VA, and FHA all offer fixed rate loans. However, the rates vary from one program to another.
If you shop lenders by phone, the loan officer will be able to tell which programs fit and quote you rates accordingly. However, if you are shopping on the internet, you have to have some idea of your loan program on your own.
Writing Your Offer. Another reason you need to have a clue about your down payment is because it affects how you write your offer to purchase a home. Not only are you required to put your down payment information in the offer, but different loan programs have different rules which also affect how you write your offer. This is especially important when dealing with FHA and VA loans.
If you are asking the seller to pay all or part of your closing costs, you have to be certain your loan program allows what you are asking. For smaller down payments, lenders allow the seller to pay less closing costs than for larger down payments. Some loan programs will allow a seller to pay certain types of costs, but not others.
Finally, your down payment also affects your ability to qualify for a loan. When you make a small down payment, lenders are fairly strict about having you conform to their underwriting guidelines. For larger down payments, they will tend to make allowances or exceptions to the rules.
Conclusion. As you can see, the down payment affects every choice you make when you buy a home. Although you should look at ads, familiarize yourself with neighborhoods, learn about prices, and read as much as you can - when you get ready to take action – the first thing you should do is figure out how much money you have available for the purchase.
copyright 2000 by Terry Light and RealEstate ABC, modified 2002
Monday, September 29, 2008
Mental Health, a Biblical Recipe
Philippians 4:6-9 (New International Version)
6Do not be anxious about anything, but in everything, by prayer and petition, with thanksgiving, present your requests to God. 7And the peace of God, which transcends all understanding, will guard your hearts and your minds in Christ Jesus.
8Finally, brothers, whatever is true, whatever is noble, whatever is right, whatever is pure, whatever is lovely, whatever is admirable—if anything is excellent or praiseworthy—think about such things. 9Whatever you have learned or received or heard from me, or seen in me—put it into practice. And the God of peace will be with you.
The Biblical recipe for mental health: 1) pray; 2) think; 3) do.
6Do not be anxious about anything, but in everything, by prayer and petition, with thanksgiving, present your requests to God. 7And the peace of God, which transcends all understanding, will guard your hearts and your minds in Christ Jesus.
8Finally, brothers, whatever is true, whatever is noble, whatever is right, whatever is pure, whatever is lovely, whatever is admirable—if anything is excellent or praiseworthy—think about such things. 9Whatever you have learned or received or heard from me, or seen in me—put it into practice. And the God of peace will be with you.
The Biblical recipe for mental health: 1) pray; 2) think; 3) do.
A Dozen Benefits of Peroxide
A Dozen Benefits of Peroxide (borrowed from a doctor's wife in Indiana)
1. For whiter teeth and no canker sores, hold a capful of peroxide in your mouth for 10 minutes daily, then spit it out. Soak toothbrushes soak in a cup of peroxide to keep them free of germs.
2. Clean counters and table tops with peroxide to kill germs and leave a fresh smell. Put a little on your dishrag when you wipe, or spray it on the counters.
3. Pour peroxide on wooden cutting board to kill salmonella and other bacteria.
4. To treat foot fungus, spray on a 50/50 mixture of peroxide and water on toes and let air dry.
5. Soak infections or cuts in 3% peroxide for five to ten minutes several times a day.
6. Fill a spray bottle with a 50/50 mixture of peroxide and water and keep it in the bathroom to disinfect.
7. For a cold or clogged sinuses, tilt your head back and spray 50/50 mixture into nostrils. It will bubble and help to kill the bacteria. Hold for a few minutes then blow your nose into a tissue.
8. To ease toothache pain until you can get to a dentist, put a capful of 3% peroxide into your mouth and hold it for ten minutes several times a day.
9. For natural highlights, spray the 50/50 solution on wet hair and comb it through.
10. Put half a bottle of peroxide into your bath water to help get rid of boils, fungus, or other skin infections.
11. Add a cup of peroxide to a load of whites in your laundry. If there is blood on clothing, pour directly on the soiled spot. Let it sit for a minute, then rub and rinse with cold water. Repeat if necessary.
12. Use peroxide to clean mirrors without smearing.
1. For whiter teeth and no canker sores, hold a capful of peroxide in your mouth for 10 minutes daily, then spit it out. Soak toothbrushes soak in a cup of peroxide to keep them free of germs.
2. Clean counters and table tops with peroxide to kill germs and leave a fresh smell. Put a little on your dishrag when you wipe, or spray it on the counters.
3. Pour peroxide on wooden cutting board to kill salmonella and other bacteria.
4. To treat foot fungus, spray on a 50/50 mixture of peroxide and water on toes and let air dry.
5. Soak infections or cuts in 3% peroxide for five to ten minutes several times a day.
6. Fill a spray bottle with a 50/50 mixture of peroxide and water and keep it in the bathroom to disinfect.
7. For a cold or clogged sinuses, tilt your head back and spray 50/50 mixture into nostrils. It will bubble and help to kill the bacteria. Hold for a few minutes then blow your nose into a tissue.
8. To ease toothache pain until you can get to a dentist, put a capful of 3% peroxide into your mouth and hold it for ten minutes several times a day.
9. For natural highlights, spray the 50/50 solution on wet hair and comb it through.
10. Put half a bottle of peroxide into your bath water to help get rid of boils, fungus, or other skin infections.
11. Add a cup of peroxide to a load of whites in your laundry. If there is blood on clothing, pour directly on the soiled spot. Let it sit for a minute, then rub and rinse with cold water. Repeat if necessary.
12. Use peroxide to clean mirrors without smearing.
Saturday, August 16, 2008
Short Sale Questions from a Prospective Buyer
Five Questions a Buyer Needs Answers to Before Looking at a SHORT SALE Property:
1. Has the Seller’s agent submitted the homeowner’s package to the bank, and has it been approved? (Okay – that’s more than one question.) If the bank hasn’t yet determined that the Seller is qualified for a short sale, a prospective buyer may have a long wait only to find that the bank won’t approve.
2. How many lienholders are there? If more than one, are they the same lender? (Again, two questions – not one.) The more lienholders, the more complicated the transaction. If the Seller’s agent knows the answer to the question, that’s a good sign that communications with the bank are underway.
3. Has a loss mitigator been assigned? If the Seller’s agent doesn’t know what a loss mitigator is, that’s a bad sign. If one has been assigned, that’s good – that’s more evidence that the bank is communicating.
4. Has a third-party BPO already been done, or is the bank waiting on an offer? (Again, a two-part question.) BPO is short for Broker Pricing Opinion. This written opinion lets the bank know – or think they know – the market value of the property. If the Seller’s agent can tell you that the BPO has been done, you should have a much shorter response time from the bank if you decide to bring an offer than if the bank has no clue as to value.
5. Are you using a professional negotiator? Short sales require a lot of communication between the Seller’s agent and the bank. A lot. If the Seller’s agent is working with a professional negotiator, HURRAY! This should mean that a Buyer is NOT likely to experience long, long delays in getting a response, should he decide to bring an offer.
1. Has the Seller’s agent submitted the homeowner’s package to the bank, and has it been approved? (Okay – that’s more than one question.) If the bank hasn’t yet determined that the Seller is qualified for a short sale, a prospective buyer may have a long wait only to find that the bank won’t approve.
2. How many lienholders are there? If more than one, are they the same lender? (Again, two questions – not one.) The more lienholders, the more complicated the transaction. If the Seller’s agent knows the answer to the question, that’s a good sign that communications with the bank are underway.
3. Has a loss mitigator been assigned? If the Seller’s agent doesn’t know what a loss mitigator is, that’s a bad sign. If one has been assigned, that’s good – that’s more evidence that the bank is communicating.
4. Has a third-party BPO already been done, or is the bank waiting on an offer? (Again, a two-part question.) BPO is short for Broker Pricing Opinion. This written opinion lets the bank know – or think they know – the market value of the property. If the Seller’s agent can tell you that the BPO has been done, you should have a much shorter response time from the bank if you decide to bring an offer than if the bank has no clue as to value.
5. Are you using a professional negotiator? Short sales require a lot of communication between the Seller’s agent and the bank. A lot. If the Seller’s agent is working with a professional negotiator, HURRAY! This should mean that a Buyer is NOT likely to experience long, long delays in getting a response, should he decide to bring an offer.
Getting Started on a Short Sale
How do you get started if you think a short sale is your best solution? Contact your Realtor and request a short sale package. Some are bank specific, so be sure to provide your agent with all of your loan information as well as an authorization form that allows the realtor to speak to the bank on your behalf.
Once the short sale process has begun, listen to what your realtor tells you. She may ask that you not have any communication with your bank after the short sale process is started. The realtor and her team will negotiate directly with the loss mitigation department, and discussions with other bank departments may get in the way of those negotiations. If she tells you to IGNORE THE BANK, she means that at this stage, the controlling department is the loss mitigation department – and she’ll talk with them on your behalf.
Once the short sale process has begun, listen to what your realtor tells you. She may ask that you not have any communication with your bank after the short sale process is started. The realtor and her team will negotiate directly with the loss mitigation department, and discussions with other bank departments may get in the way of those negotiations. If she tells you to IGNORE THE BANK, she means that at this stage, the controlling department is the loss mitigation department – and she’ll talk with them on your behalf.
Consequences of a Short Sale
What are the consequences of doing a short sale? You are wise to ask, because there ARE consequences.
Certainly, your credit WILL BE impacted. The average “drop” is 100 points for a short sale, but this depends on how the bank reports the sale to the credit bureaus. Some will report that it was “satisfied in full” while others may say that it was “settled for less than owed.” We have no control over how the bank reports the sale.
You will receive a 1099-C at the end of the year showing that you made extra income. This extra income is the amount that the bank was shorted, or the deficiency. For example, if you owed $250,000 on your home and you short sold it for $150,000. You will receive a 1099-C at the end of the year stating you made $100,000. The Mortgage Forgiveness Debt Relief Act of 2007 will protect many sellers in a short sale situation and make them exempt from paying the taxes on the deficiency. Individual circumstances vary, however, and we very strongly recommend that you speak to a CPA to see if you will qualify for this exemption.
Although Arizona has anti-deficiency laws in place for homes that are foreclosed on, these same laws MAY NOT apply to short sale situations. For this reason, it is important that your realtor have the bank put in writing that they will “release the lien AND SATISFY THE DEBT.” You want to be certain that no one will file a deficiency judgment against you after the short sale is executed.
Certainly, your credit WILL BE impacted. The average “drop” is 100 points for a short sale, but this depends on how the bank reports the sale to the credit bureaus. Some will report that it was “satisfied in full” while others may say that it was “settled for less than owed.” We have no control over how the bank reports the sale.
You will receive a 1099-C at the end of the year showing that you made extra income. This extra income is the amount that the bank was shorted, or the deficiency. For example, if you owed $250,000 on your home and you short sold it for $150,000. You will receive a 1099-C at the end of the year stating you made $100,000. The Mortgage Forgiveness Debt Relief Act of 2007 will protect many sellers in a short sale situation and make them exempt from paying the taxes on the deficiency. Individual circumstances vary, however, and we very strongly recommend that you speak to a CPA to see if you will qualify for this exemption.
Although Arizona has anti-deficiency laws in place for homes that are foreclosed on, these same laws MAY NOT apply to short sale situations. For this reason, it is important that your realtor have the bank put in writing that they will “release the lien AND SATISFY THE DEBT.” You want to be certain that no one will file a deficiency judgment against you after the short sale is executed.
Short Sale Marketing and Offers
How will your house be marketed in a short sale? Marketing for a short sale property is the same as it would be if your house were not being short sold. Pretty much the only difference is that all the marketing materials must disclose that “all terms of offers are subject to lender approval.”
Once your realtor puts your house on the market, real estate agents will show it to prospective buyers and we wait for an offer. Try to price within the bottom 10% of the active listings – that should generate plenty of activity and result in an offer within the first 30 days on market.
As soon as we have an offer, we submit it to the bank along with supporting documentation. The bank’s “loss mitigator” is our point of contact during the entire process. He or she will review the package in its entirety before ordering a BPO (Broker Pricing Opinion). This BPO is similar to an appraisal and will require a third-party agent to come to your house and take photos of every room…even the garage. They will then create a report for the bank that reveals the current value of the home.
Once your realtor puts your house on the market, real estate agents will show it to prospective buyers and we wait for an offer. Try to price within the bottom 10% of the active listings – that should generate plenty of activity and result in an offer within the first 30 days on market.
As soon as we have an offer, we submit it to the bank along with supporting documentation. The bank’s “loss mitigator” is our point of contact during the entire process. He or she will review the package in its entirety before ordering a BPO (Broker Pricing Opinion). This BPO is similar to an appraisal and will require a third-party agent to come to your house and take photos of every room…even the garage. They will then create a report for the bank that reveals the current value of the home.
Qualifying for a Short Sale
How can a Seller know if a short sale is the right solution? The best way to find out is to speak with a real estate professional about any other options that may be available. If you want to stay in the home and simply need to have your interest rate reduced (due to an ARM adjustment), a loan modification directly through your lender may be a better choice.
Supposing a short sale is what you want to do. What does it take to qualify? Your realtor should provide you with a package of forms to complete (including a financial analysis). This package is submitted to your lender(s) for approval. It is very similar to applying for a mortgage…only in reverse. There must be evidence of a hardship. Being unhappy that your property is worth less than what you paid for it is NOT evidence of a hardship.
Out-of-pocket expenses in a short sale are paid by the bank. These include seller closing costs and realtor commissions. However, it is important that the seller keep current with HOA dues and keep the electric and water turned on at the property. Per the Arizona Real Estate Purchase Contract, the seller is required to keep the utilities on so that a buyer may perform home inspections.
Supposing a short sale is what you want to do. What does it take to qualify? Your realtor should provide you with a package of forms to complete (including a financial analysis). This package is submitted to your lender(s) for approval. It is very similar to applying for a mortgage…only in reverse. There must be evidence of a hardship. Being unhappy that your property is worth less than what you paid for it is NOT evidence of a hardship.
Out-of-pocket expenses in a short sale are paid by the bank. These include seller closing costs and realtor commissions. However, it is important that the seller keep current with HOA dues and keep the electric and water turned on at the property. Per the Arizona Real Estate Purchase Contract, the seller is required to keep the utilities on so that a buyer may perform home inspections.
What is a SHORT SALE?
What is a short sale? What is short about it? Glad you asked. According to a Keller Williams Realty expert, Leah Wolfe-Kraemer, a short sale, or short payoff, occurs in a real estate transaction when a lienholder (bank) agrees to accept less than what the seller owes in exchange for releasing the lien on the property and satisfying the debt. In other words, the agreed payoff is less than the seller owes.
And why, you ask, might a bank accept less than what the seller owes them? Well, the banking industry is much too complicated for a short answer, but the biggest reason is that it is better for the bank than letting a property go through the foreclosure process. The entire foreclosure process is extremely time-consuming and expensive for a bank, and at the end, the property will still sell for much less than the amount owed. By granting short sales, the bank can bypass most of the foreclosure process.
And why, you ask, might a bank accept less than what the seller owes them? Well, the banking industry is much too complicated for a short answer, but the biggest reason is that it is better for the bank than letting a property go through the foreclosure process. The entire foreclosure process is extremely time-consuming and expensive for a bank, and at the end, the property will still sell for much less than the amount owed. By granting short sales, the bank can bypass most of the foreclosure process.
Tuesday, August 12, 2008
Westbrook Village
I had a tour of Peoria's Westbrook Village yesterday. Wow. Very impressive. My client (who has a lovely home for sale) wanted me to see the amenities.
There are golf courses, tennis courts, swimming pools and spas, facilities for arts and crafts and hobbies, a library, and more. Even a restaurant. And volunteer opportunities for the Sheriff's Posse. This is an age 55+ community, and there is lots of interest to capture the attention of residents.
The HOA is $517 a year - not much for all that it includes. See the website at http://www.westbrookvillage.org/. For more about golfing at Westbrook Village, see http://www.westbrookvillagegolfclub.org/
There are golf courses, tennis courts, swimming pools and spas, facilities for arts and crafts and hobbies, a library, and more. Even a restaurant. And volunteer opportunities for the Sheriff's Posse. This is an age 55+ community, and there is lots of interest to capture the attention of residents.
The HOA is $517 a year - not much for all that it includes. See the website at http://www.westbrookvillage.org/. For more about golfing at Westbrook Village, see http://www.westbrookvillagegolfclub.org/
Sunday, August 3, 2008
Fair Market Value, Timing, Convenience
Fair Market Value, Timing, Convenience
I am looking for a seller who wants -- really wants -- to sell his house. The house he lives in. The one that needs to be sold in order for the seller to become a buyer for another house - his new home.
The goal of this seller that I'm looking for - the goal of ALL sellers - okay, maybe all is too strong a word - let's say ALL with maybe a couple of exceptions -- is to sell their home for the most amount of money, in the least amount of time, and with the least amount of inconvenience.
The first key objective is to price the house -- forget for now that we're talking about the house you've turned into a home - just think of it as a HOUSE - price the HOUSE at its fair market value.
A property that is listed WELL UNDER fair market value will…
a. Cause buyers to wonder what’s wrong with it, so they will scrutinize it much more.
b. Cause the seller to lose money.
c. Not be a win-win situation.
On the flip side, a property listed WELL OVER fair market value will…
a. Not generate as many interested buyers because they will think it’s out of their price range.
b. Waste advertising dollars and marketing efforts.
c. Take a long time to sell and could impact when the seller can move into his/her new home.
d. Make other competing properties look good.
e. Make the home overpriced in everyone’s mind (agents and buyers) and they tend not to forget.
f. Often eventually sell below market value.
So - the trick is to land on fair market value. That's tricky, both to identify what fair market value is and also to apply that to listing price. It is a good idea to think in terms of a PRICE RANGE -- that’s how buyers think about prices.
A second key objective is timing, which means selling your home in your desired timeframe. Did you know that a house generates the most interest in the real estate community and among buyers during the first 30 days (or four weeks) that it is listed.
The third key objective is selling your house with the least amount of inconvenience. Too much to write about here - but I have ideas, so if you're interested, contact me and we'll talk.
I am looking for a seller who wants -- really wants -- to sell his house. The house he lives in. The one that needs to be sold in order for the seller to become a buyer for another house - his new home.
The goal of this seller that I'm looking for - the goal of ALL sellers - okay, maybe all is too strong a word - let's say ALL with maybe a couple of exceptions -- is to sell their home for the most amount of money, in the least amount of time, and with the least amount of inconvenience.
The first key objective is to price the house -- forget for now that we're talking about the house you've turned into a home - just think of it as a HOUSE - price the HOUSE at its fair market value.
A property that is listed WELL UNDER fair market value will…
a. Cause buyers to wonder what’s wrong with it, so they will scrutinize it much more.
b. Cause the seller to lose money.
c. Not be a win-win situation.
On the flip side, a property listed WELL OVER fair market value will…
a. Not generate as many interested buyers because they will think it’s out of their price range.
b. Waste advertising dollars and marketing efforts.
c. Take a long time to sell and could impact when the seller can move into his/her new home.
d. Make other competing properties look good.
e. Make the home overpriced in everyone’s mind (agents and buyers) and they tend not to forget.
f. Often eventually sell below market value.
So - the trick is to land on fair market value. That's tricky, both to identify what fair market value is and also to apply that to listing price. It is a good idea to think in terms of a PRICE RANGE -- that’s how buyers think about prices.
A second key objective is timing, which means selling your home in your desired timeframe. Did you know that a house generates the most interest in the real estate community and among buyers during the first 30 days (or four weeks) that it is listed.
The third key objective is selling your house with the least amount of inconvenience. Too much to write about here - but I have ideas, so if you're interested, contact me and we'll talk.
Real Estate Consulting
Keller Williams Realty – Consulting
We talk at Keller Williams about NOT being order takers. I'm a consultant - sometimes referred to as a fiduciary. Okay - most of the people I know don't say the word "fiduciary" all that often. You generally think of that as a legal term. The mean has to do with a high level of care, with responsibility. There is a difference in being a fiduciary - let's just call it being a consultant, and being a functionary, or agent. Here are the key points:
1. A consultant is someone in a special relationship of trust, confidence, or responsibility to others.
2. An agent is someone who simply executes tasks for others – an order taker.
3. A consultant takes the time to understand your wants and needs, and then recommends solutions that satisfy or exceed your wants and needs. A consultant also educates you so that you can make sound business decisions.
4. An agent simply coordinates selling and buying transactions.
5. Keller Williams Realty trains its associates to behave as consultants - not order takers. This means that I will tell you what you need to hear, even when it may not be what you want to hear. My goal is to help you sell your home - quickly, for the price you want, with the least amount of hassel.
If I make it sound easy, shame on me. It's hard for many people just to start thinking of the home they've created as a HOUSE - and that's part of the process as the buying and selling process gets underway.
I'm looking for a few motivated sellers and a handful of ready, willing and able buyers. If that's you or someone you know, let's talk, yes?
We talk at Keller Williams about NOT being order takers. I'm a consultant - sometimes referred to as a fiduciary. Okay - most of the people I know don't say the word "fiduciary" all that often. You generally think of that as a legal term. The mean has to do with a high level of care, with responsibility. There is a difference in being a fiduciary - let's just call it being a consultant, and being a functionary, or agent. Here are the key points:
1. A consultant is someone in a special relationship of trust, confidence, or responsibility to others.
2. An agent is someone who simply executes tasks for others – an order taker.
3. A consultant takes the time to understand your wants and needs, and then recommends solutions that satisfy or exceed your wants and needs. A consultant also educates you so that you can make sound business decisions.
4. An agent simply coordinates selling and buying transactions.
5. Keller Williams Realty trains its associates to behave as consultants - not order takers. This means that I will tell you what you need to hear, even when it may not be what you want to hear. My goal is to help you sell your home - quickly, for the price you want, with the least amount of hassel.
If I make it sound easy, shame on me. It's hard for many people just to start thinking of the home they've created as a HOUSE - and that's part of the process as the buying and selling process gets underway.
I'm looking for a few motivated sellers and a handful of ready, willing and able buyers. If that's you or someone you know, let's talk, yes?
Real Estate Pricing Misconceptions
Real Estate Pricing Misconceptions
Setting a value on something we care about can be painful. This is especially true when the thing we care about is our HOME. Many of us work hard to turn a house into a home, and when it becomes time to move on, to put the home we've loved out in the marketplace for all the world to see, we are hard pressed to price it to sell.
No matter what we would rather believe, the plain truth is that when pricing to sell, only four things matter: LOCATION, CONDITION, MARKETING and PRICE. It does NOT matter:
1. What you paid for your home - okay, it may matter to you but it does NOT matter to your buyer.
2. What you invested in updating your home - those updates affect MARKETABILITY but not price.
3. What you want or need to buy a new home - sorry, irrelevant to the buyer.
4. What you want or need to rebuild the home you have - again, you care but it means NOTHING to the buyer.
5. What your neighbor says he sold his home for - hey - if your neighbor wants to buy your home, let's talk!
6. What another realtor says he can sell your home for - because when it's all said and done, housing prices are just like stock market prices. Value equals what somebody will pay.
If you are getting ready to price your home for sale, how about giving me a chance to help. Just let me know.
Setting a value on something we care about can be painful. This is especially true when the thing we care about is our HOME. Many of us work hard to turn a house into a home, and when it becomes time to move on, to put the home we've loved out in the marketplace for all the world to see, we are hard pressed to price it to sell.
No matter what we would rather believe, the plain truth is that when pricing to sell, only four things matter: LOCATION, CONDITION, MARKETING and PRICE. It does NOT matter:
1. What you paid for your home - okay, it may matter to you but it does NOT matter to your buyer.
2. What you invested in updating your home - those updates affect MARKETABILITY but not price.
3. What you want or need to buy a new home - sorry, irrelevant to the buyer.
4. What you want or need to rebuild the home you have - again, you care but it means NOTHING to the buyer.
5. What your neighbor says he sold his home for - hey - if your neighbor wants to buy your home, let's talk!
6. What another realtor says he can sell your home for - because when it's all said and done, housing prices are just like stock market prices. Value equals what somebody will pay.
If you are getting ready to price your home for sale, how about giving me a chance to help. Just let me know.
Real Estate Pricing Factors
Real Estate Pricing Factors
When you're ready to price your house for sale, you have tons of stuff to think about. When you need to move. What you're going to do when the house sells. How a sale affects family, work, etc. It's good business to talk with an agent about pricing, specifically about:
1. Availability - it doesn't make a lot of sense to put your house up for sale and make prospective buyers jump through hoops if they want to look at it. They won't buy if they can't look. So let your agent put a lockbox on and be ready to show your house at the drop of a hat.
2. The competition - know what else is for sale. Not just in your immediate neighborhood but in the greater community. Buyers have choices and a smart seller knows what they are.
3. Timing – how quickly you need to sell your home makes a big difference. If you need to be in another part of the country in 30 days, then price it accordingly.
4. The condition of your home - beautiful, move-in ready homes are very appealing, particularly to buyers who have been looking at trashed properties.
5. Terms - Are you flexible with closing date? If somebody is looking for a home that is move-in ready that they can purchase quickly, that may be a selling feature for you. If you are willing to offer a lease-purchase, that may be attractive to a buyer who wants your house but either has some credit issues to clean up or a down payment to beef up.
6. Warranty - Buyers often ask for seller to pay for a home warranty. Offer it. It's a good idea to have a home warranty on the home at the time it's listed - the warranty will transfer once a sale happens.
7. Amenities - What's particularly cool about your place may be appealing to a prospective buyer too. Maybe it is your floorplan, your spa, your neighborhood, your greenbelt. Amenities affect marketibility.
8. Lot size, trees, views, privacy, etc. - Location, location, location. Did I mention location? If you are fortunate enough to have a great location going for you, market it for all its worth.
Summing it up: Four things affect the sale of a house. They are price, marketing, condition and location. There's an art to this stuff. Want to talk about it?
When you're ready to price your house for sale, you have tons of stuff to think about. When you need to move. What you're going to do when the house sells. How a sale affects family, work, etc. It's good business to talk with an agent about pricing, specifically about:
1. Availability - it doesn't make a lot of sense to put your house up for sale and make prospective buyers jump through hoops if they want to look at it. They won't buy if they can't look. So let your agent put a lockbox on and be ready to show your house at the drop of a hat.
2. The competition - know what else is for sale. Not just in your immediate neighborhood but in the greater community. Buyers have choices and a smart seller knows what they are.
3. Timing – how quickly you need to sell your home makes a big difference. If you need to be in another part of the country in 30 days, then price it accordingly.
4. The condition of your home - beautiful, move-in ready homes are very appealing, particularly to buyers who have been looking at trashed properties.
5. Terms - Are you flexible with closing date? If somebody is looking for a home that is move-in ready that they can purchase quickly, that may be a selling feature for you. If you are willing to offer a lease-purchase, that may be attractive to a buyer who wants your house but either has some credit issues to clean up or a down payment to beef up.
6. Warranty - Buyers often ask for seller to pay for a home warranty. Offer it. It's a good idea to have a home warranty on the home at the time it's listed - the warranty will transfer once a sale happens.
7. Amenities - What's particularly cool about your place may be appealing to a prospective buyer too. Maybe it is your floorplan, your spa, your neighborhood, your greenbelt. Amenities affect marketibility.
8. Lot size, trees, views, privacy, etc. - Location, location, location. Did I mention location? If you are fortunate enough to have a great location going for you, market it for all its worth.
Summing it up: Four things affect the sale of a house. They are price, marketing, condition and location. There's an art to this stuff. Want to talk about it?
Keller Williams Realty Belief System
Keller Williams Realty Belief System
The Keller Williams culture is based upon a belief system that is summed up by this acronym: WI4C2TS.
WI4C2TS
This means:
Win-Win – or no deal
When we face problems, we encourage the exploration of how everyone can win.
Integrity – do the right thing
We do what we say we’re going to do. We believe in doing the right thing.
Commitment – in all things
We walk the talk and we are not afraid of being held accountable by our clients.
Communication – seek first to understand
We are into curiosity, not judgment. We ask a lot of questions to understand your wants and needs.
Creativity – ideas before results
We work through issues by examining all aspects; options come first, then solutions.
Customers – always come first
Keller Williams Realty would not exist if it did not have customers.
Teamwork – together everyone achieves more
None of us is as smart as all of us. We succeed when we work together as a team.
Trust – starts with honesty
Trust is the basis of all relationships. Honesty creates trust.
Success – results through people
You get a team of real estate specialists all working for you.
The Keller Williams culture is based upon a belief system that is summed up by this acronym: WI4C2TS.
WI4C2TS
This means:
Win-Win – or no deal
When we face problems, we encourage the exploration of how everyone can win.
Integrity – do the right thing
We do what we say we’re going to do. We believe in doing the right thing.
Commitment – in all things
We walk the talk and we are not afraid of being held accountable by our clients.
Communication – seek first to understand
We are into curiosity, not judgment. We ask a lot of questions to understand your wants and needs.
Creativity – ideas before results
We work through issues by examining all aspects; options come first, then solutions.
Customers – always come first
Keller Williams Realty would not exist if it did not have customers.
Teamwork – together everyone achieves more
None of us is as smart as all of us. We succeed when we work together as a team.
Trust – starts with honesty
Trust is the basis of all relationships. Honesty creates trust.
Success – results through people
You get a team of real estate specialists all working for you.
Keller Williams Realty
Keller Williams Realty
Keller Williams Realty was founded in Austin, Texas in 1983. We are an international company with offices in the United States and in Canada. We are among the largest real estate companies in North America.
Two visionaries lead us: Gary Keller, founded and Chairman of the Board, and Mo Anderson, CEO.
At Keller Williams, we are real estate consultants, not agents, not salespeople. What this means is that we build fiduciary relationships with our clients.
There are no other international real estate companies that operate like Keller Williams. According to Inman News, Keller Williams is the most innovative real estate company in North America.
We are a profit sharing company where associates are in partnership relationships with the owners. This means t hat everyone at Keller Williams wants your home to sell because everyone benefits.
Keller Williams Realty was founded in Austin, Texas in 1983. We are an international company with offices in the United States and in Canada. We are among the largest real estate companies in North America.
Two visionaries lead us: Gary Keller, founded and Chairman of the Board, and Mo Anderson, CEO.
At Keller Williams, we are real estate consultants, not agents, not salespeople. What this means is that we build fiduciary relationships with our clients.
There are no other international real estate companies that operate like Keller Williams. According to Inman News, Keller Williams is the most innovative real estate company in North America.
We are a profit sharing company where associates are in partnership relationships with the owners. This means t hat everyone at Keller Williams wants your home to sell because everyone benefits.
Comparative Market Analysis
Comparative Market Analysis (CMA)
A comparative market analysis (CMA) is a tool to determine your home’s range of value. There are six elements to an CMA:
a. Recent sales;
b. Current listings (your competition);
c. Opinions of other real estate professionals;
d. Current financial market;
e. Expired listings (homes that have not sold);
f. Absorption rate (how many months of supply of homes are on the market; a one month supply = a seller’s market; a two or more months supply = a buyer’s market.
It is important to read the CMA from a buyer’s perspective.
My job is to help you determine a range of value that will make it possible for you to sell your home within your timeframe. Your job is to decide the actual price at which you will put your home on the market.
Keep in mind that buyers and sellers determine value.
A comparative market analysis (CMA) is a tool to determine your home’s range of value. There are six elements to an CMA:
a. Recent sales;
b. Current listings (your competition);
c. Opinions of other real estate professionals;
d. Current financial market;
e. Expired listings (homes that have not sold);
f. Absorption rate (how many months of supply of homes are on the market; a one month supply = a seller’s market; a two or more months supply = a buyer’s market.
It is important to read the CMA from a buyer’s perspective.
My job is to help you determine a range of value that will make it possible for you to sell your home within your timeframe. Your job is to decide the actual price at which you will put your home on the market.
Keep in mind that buyers and sellers determine value.
Tuesday, July 29, 2008
Ten Tips for Holding a Yard Sale
Ten Tips for Holding a Yard Sale
Hold a yard sale to reduce the clutter in your home and get rid of items you don’t want to move.
1. Check with your city government to see if you need a permit or license.
2. See if neighbors want to participate and have a “block” sale to attract more visitors.
3. Advertise. Put an ad in free classified papers, and put up signs and balloons at major intersections and in stores near your home.
4. Price items ahead and attach prices with removable stickers. Remember, yard sales are supposed to be bargains, so don’t try to sell anything of significant value this way.
5. Check items before the sale to be sure you haven’t including something you want by mistake.
6. Keep pets away from the sale.
7. Display everything neatly and individually so customers don’t have to dig through boxes.
8. Have an electrical outlet so buyers can test appliances.
9. Have plenty of bags and newspaper for wrapping fragile items.
10. Get enough change, and keep a close eye on your cash.
Hold a yard sale to reduce the clutter in your home and get rid of items you don’t want to move.
1. Check with your city government to see if you need a permit or license.
2. See if neighbors want to participate and have a “block” sale to attract more visitors.
3. Advertise. Put an ad in free classified papers, and put up signs and balloons at major intersections and in stores near your home.
4. Price items ahead and attach prices with removable stickers. Remember, yard sales are supposed to be bargains, so don’t try to sell anything of significant value this way.
5. Check items before the sale to be sure you haven’t including something you want by mistake.
6. Keep pets away from the sale.
7. Display everything neatly and individually so customers don’t have to dig through boxes.
8. Have an electrical outlet so buyers can test appliances.
9. Have plenty of bags and newspaper for wrapping fragile items.
10. Get enough change, and keep a close eye on your cash.
Seven Terms to Watch for in a Purchase Contract
7 Terms to Watch for in a Purchase Contract
1. The closing date. See if the date the buyer wants to take title is reasonable for you.
2. Date of possession. See if the date the buyer wants to move in is reasonable for you.
3. The earnest money. Look for the largest earnest-money deposit possible; since it is forfeited if the buyer backs out, a large deposit is usually a good indication of a sincere buyer.
4. Fixtures and personal property. Check the list of items that the buyer expects to remain with the property and be sure it’s acceptable.
5. Repairs. Determine what the requested repairs will cost and whether you’re willing to do the work or would rather lower the price by that amount.
6. Contingencies. See what other factors the buyer wants met before the contract is final—inspections, selling a home, obtaining a mortgage, review of the contract by an attorney. Set time limits on contingencies so that they won’t drag on and keep your sale from becoming final.
7. The contract expiration date. See how long you have to make a decision on the offer.
1. The closing date. See if the date the buyer wants to take title is reasonable for you.
2. Date of possession. See if the date the buyer wants to move in is reasonable for you.
3. The earnest money. Look for the largest earnest-money deposit possible; since it is forfeited if the buyer backs out, a large deposit is usually a good indication of a sincere buyer.
4. Fixtures and personal property. Check the list of items that the buyer expects to remain with the property and be sure it’s acceptable.
5. Repairs. Determine what the requested repairs will cost and whether you’re willing to do the work or would rather lower the price by that amount.
6. Contingencies. See what other factors the buyer wants met before the contract is final—inspections, selling a home, obtaining a mortgage, review of the contract by an attorney. Set time limits on contingencies so that they won’t drag on and keep your sale from becoming final.
7. The contract expiration date. See how long you have to make a decision on the offer.
Five Ways to Speed Up Your Sale
5 Ways to Speed Up Your Sale
1. Price it right. Set a price at the lower end of your property’s realistic price range.
2. Get your house market-ready for at least two weeks before you begin showing it.
3. Be flexible about showings. It’s often disruptive to have a house ready to show on the spur of the moment, but the more often someone can see your home, the sooner you’ll find a seller.
4. Be ready for the offers. Decide in advance what price and terms you’ll find acceptable.
5. Don’t refuse to drop the price. If your home has been on the market for more than 30 days without an offer, be prepared to lower your asking price.
1. Price it right. Set a price at the lower end of your property’s realistic price range.
2. Get your house market-ready for at least two weeks before you begin showing it.
3. Be flexible about showings. It’s often disruptive to have a house ready to show on the spur of the moment, but the more often someone can see your home, the sooner you’ll find a seller.
4. Be ready for the offers. Decide in advance what price and terms you’ll find acceptable.
5. Don’t refuse to drop the price. If your home has been on the market for more than 30 days without an offer, be prepared to lower your asking price.
Five Things To Do Before You Sell
5 Things to Do Before You Sell
1. Get estimates from a reliable repairperson on items that need to be replaced soon, such as a roof or worn carpeting, for example. In this way, buyers will have a better sense of how much these needed repairs will affect their costs.
2. Have a termite inspection to prove to buyers that the property is not infested.
3. Get a pre-sale home inspection so you’ll be able to make repairs before buyers become concerned and cancel a contract.
4. Gather together warranties and guarantees on the furnace, appliances, and other items that will remain with the house.
5. Fill out a disclosure form provided by your sales associate. Take the time to be sure that you don’t forget problems, however minor, that might create liability for you after the sale.
1. Get estimates from a reliable repairperson on items that need to be replaced soon, such as a roof or worn carpeting, for example. In this way, buyers will have a better sense of how much these needed repairs will affect their costs.
2. Have a termite inspection to prove to buyers that the property is not infested.
3. Get a pre-sale home inspection so you’ll be able to make repairs before buyers become concerned and cancel a contract.
4. Gather together warranties and guarantees on the furnace, appliances, and other items that will remain with the house.
5. Fill out a disclosure form provided by your sales associate. Take the time to be sure that you don’t forget problems, however minor, that might create liability for you after the sale.
Monday, July 28, 2008
Six Reasons You Need a Realtor
Six Reasons You Need a REALTOR
1. A real estate transaction is complicated. In most cases, buying or selling a home requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page government-mandated settlement statements. A knowledgeable guide through this complexity can help you avoid delays or costly mistakes.
2. Selling or buying a home is time consuming. Even in a strong market, homes in our area stay on the market for an average of 120 or more days. And it usually takes another 30 days or so for the transaction to close after an offer is accepted.
3. Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with someone who speaks that language.
4. REALTORS have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. That’s why having an expert on your side is critical.
5. REALTORS provide objectivity. Since a home often symbolizes family, rest, and security, not just four walls and roof, homeselling or buying is often a very emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you keep focused on both the business and emotional issues most important to you.
6. REALTORS are members of the NATIONAL ASSOCIATION OF REALTORS, a trade organization of more than 1 million members nationwide. REALTORS subscribe to a stringent code of ethics that helps guarantee the highest level of service and integrity.
1. A real estate transaction is complicated. In most cases, buying or selling a home requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page government-mandated settlement statements. A knowledgeable guide through this complexity can help you avoid delays or costly mistakes.
2. Selling or buying a home is time consuming. Even in a strong market, homes in our area stay on the market for an average of 120 or more days. And it usually takes another 30 days or so for the transaction to close after an offer is accepted.
3. Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with someone who speaks that language.
4. REALTORS have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. That’s why having an expert on your side is critical.
5. REALTORS provide objectivity. Since a home often symbolizes family, rest, and security, not just four walls and roof, homeselling or buying is often a very emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you keep focused on both the business and emotional issues most important to you.
6. REALTORS are members of the NATIONAL ASSOCIATION OF REALTORS, a trade organization of more than 1 million members nationwide. REALTORS subscribe to a stringent code of ethics that helps guarantee the highest level of service and integrity.
Five Property Tax Questions You Need to Ask
5 Property Tax Questions You Need to Ask
1. What is the assessed value of the property? Note that assessed value is generally less than market value. Ask to see a recent copy of the seller’s tax bill to help you determine this information.
2. How often are properties reassessed and when was the last reassessment done? Generally taxes jump most significantly when a property is reassessed.
3. Will the sale of the property trigger a tax increase? Often the assessed value of the property may increase based on the amount you pay for the property. And in some areas, such as California, taxes may be frozen until resale.
4. Is the amount of taxes paid comparable to other properties in the area? If not, it might be possible to appeal the tax assessment and lower the rate?
5. Does the current tax bill reflect any special exemptions that you might not qualify for? For example, many tax districts offer reductions to those 65 or over.
1. What is the assessed value of the property? Note that assessed value is generally less than market value. Ask to see a recent copy of the seller’s tax bill to help you determine this information.
2. How often are properties reassessed and when was the last reassessment done? Generally taxes jump most significantly when a property is reassessed.
3. Will the sale of the property trigger a tax increase? Often the assessed value of the property may increase based on the amount you pay for the property. And in some areas, such as California, taxes may be frozen until resale.
4. Is the amount of taxes paid comparable to other properties in the area? If not, it might be possible to appeal the tax assessment and lower the rate?
5. Does the current tax bill reflect any special exemptions that you might not qualify for? For example, many tax districts offer reductions to those 65 or over.
Five Factors That Decide Your Credit Score
5 Factors That Decide Your Credit Score
Credit scores range between 200 and 800. Scores above 620 are considered desirable for obtaining a mortgage. These factors will affect your score.
1. Your payment history. Whether you paid credit card obligations on time.
2. How much you owe. Owing a great deal of money on numerous accounts can indicate that you are overextended.
3. The length of your credit history. In general, the longer the better.
4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay promptly.
5. The types of credit you use. Generally, it’s desirable to have more than one type of credit—installment loans, credit cards, and a mortgage, for example.
For more on evaluating and understanding your credit score, go to http://www.myfico.com.
Page 7 Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2005.
Credit scores range between 200 and 800. Scores above 620 are considered desirable for obtaining a mortgage. These factors will affect your score.
1. Your payment history. Whether you paid credit card obligations on time.
2. How much you owe. Owing a great deal of money on numerous accounts can indicate that you are overextended.
3. The length of your credit history. In general, the longer the better.
4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay promptly.
5. The types of credit you use. Generally, it’s desirable to have more than one type of credit—installment loans, credit cards, and a mortgage, for example.
For more on evaluating and understanding your credit score, go to http://www.myfico.com.
Page 7 Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2005.
FIVE COMMON FIRST-TIME HOMEBUYER MISTAKES
5 Common First-Time Homebuyer Mistakes
1. They don’t ask enough questions of their lender and miss out on the best deal.
2. They don’t act quickly enough to make a decision and someone else buys the house.
3. They don’t find the right real estate professional who is willing to help you through the homebuying process.
4. They don’t do enough to make their offer look good to a seller.
5. They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.
Reprinted with permission from Real Estate Checklists and Systems (www.realestatechecklists.com)
1. They don’t ask enough questions of their lender and miss out on the best deal.
2. They don’t act quickly enough to make a decision and someone else buys the house.
3. They don’t find the right real estate professional who is willing to help you through the homebuying process.
4. They don’t do enough to make their offer look good to a seller.
5. They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.
Reprinted with permission from Real Estate Checklists and Systems (www.realestatechecklists.com)
Sunday, July 27, 2008
HOW MUCH HOUSE CAN YOU AFFORD?
How Much House Can You Afford?
Debt-to-Income Ratios
To determine your maximum mortgage amount, lenders use guidelines called debt-to-income ratios. This is simply the percentage of your monthly gross income (before taxes) that is used to pay your monthly debts. Because there are two calculations, there is a "front" ratio and a "back" ratio and they are generally written in the following format: 33/38.
The front ratio is the percentage of your monthly gross income (before taxes) that is used to pay your housing costs, including principal, interest, taxes, insurance, mortgage insurance (when applicable) and homeowners association fees (when applicable). The back ratio is the same thing, only it also includes your monthly consumer debt. Consumer debt can be car payments, credit card debt, installment loans, and similar related expenses. Auto or life insurance is not considered a debt.
A common guideline for debt-to-income ratios is 33/38. A borrower's housing costs consume thirty-three percent of their monthly income. Add their monthly consumer debt to the housing costs, and it should take no more than thirty-eight percent of their monthly income to meet those obligations.
The guidelines are just guidelines and they are flexible. If you make a small down payment, the guidelines are more rigid. If you have marginal credit, the guidelines are more rigid. If you make a larger down payment or have sterling credit, the guidelines are less rigid. The guidelines also vary according to loan program. FHA guidelines state that a 29/41 qualifying ratio is acceptable. VA guidelines do not have a front ratio at all, but the guideline for the back ratio is 41.
Example: If you make $5000 a month, with 33/38 qualifying ratio guidelines, your maximum monthly housing cost should be around $1650. Including your consumer debt, your monthly housing and credit expenditures should be around $1900 as a maximum.
copyright 2000 by Terry Light and RealEstate ABC, modified 2002
Debt-to-Income Ratios
To determine your maximum mortgage amount, lenders use guidelines called debt-to-income ratios. This is simply the percentage of your monthly gross income (before taxes) that is used to pay your monthly debts. Because there are two calculations, there is a "front" ratio and a "back" ratio and they are generally written in the following format: 33/38.
The front ratio is the percentage of your monthly gross income (before taxes) that is used to pay your housing costs, including principal, interest, taxes, insurance, mortgage insurance (when applicable) and homeowners association fees (when applicable). The back ratio is the same thing, only it also includes your monthly consumer debt. Consumer debt can be car payments, credit card debt, installment loans, and similar related expenses. Auto or life insurance is not considered a debt.
A common guideline for debt-to-income ratios is 33/38. A borrower's housing costs consume thirty-three percent of their monthly income. Add their monthly consumer debt to the housing costs, and it should take no more than thirty-eight percent of their monthly income to meet those obligations.
The guidelines are just guidelines and they are flexible. If you make a small down payment, the guidelines are more rigid. If you have marginal credit, the guidelines are more rigid. If you make a larger down payment or have sterling credit, the guidelines are less rigid. The guidelines also vary according to loan program. FHA guidelines state that a 29/41 qualifying ratio is acceptable. VA guidelines do not have a front ratio at all, but the guideline for the back ratio is 41.
Example: If you make $5000 a month, with 33/38 qualifying ratio guidelines, your maximum monthly housing cost should be around $1650. Including your consumer debt, your monthly housing and credit expenditures should be around $1900 as a maximum.
copyright 2000 by Terry Light and RealEstate ABC, modified 2002
REVERSE MORTGAGES
Reverse Mortgages
Financial Security has a new address …
Let your home take care of you
Reverse mortgages can be a great way for qualified homeowners who are 62 years of age and older to access the equity of their homes.
A reverse mortgage can provide you with the means to supplement your monthly income, cover healthcare costs, pay off existing mortgages or other financial obligations, fix up your home, or simply gain peace of mind.
Whatever your specific goals, a reverse mortgage can go a long way towards helping you maintain your financial independence.
What is a reverse mortgage?
A reverse mortgage is a loan against your home that you do not have to pay back for as long as you live in the home.
You have several choices about how you receive the cash from the loan, and you still own your home throughout the entire term of the loan.
A reverse mortgage can help turn the value of your home into cash without having to make monthly payments and can help you better manage your financial future.
If you would like to learn more, call JASON SERVAIS at Countrywide for a free brochure. The number is 623.825.9800, X231.
Financial Security has a new address …
Let your home take care of you
Reverse mortgages can be a great way for qualified homeowners who are 62 years of age and older to access the equity of their homes.
A reverse mortgage can provide you with the means to supplement your monthly income, cover healthcare costs, pay off existing mortgages or other financial obligations, fix up your home, or simply gain peace of mind.
Whatever your specific goals, a reverse mortgage can go a long way towards helping you maintain your financial independence.
What is a reverse mortgage?
A reverse mortgage is a loan against your home that you do not have to pay back for as long as you live in the home.
You have several choices about how you receive the cash from the loan, and you still own your home throughout the entire term of the loan.
A reverse mortgage can help turn the value of your home into cash without having to make monthly payments and can help you better manage your financial future.
If you would like to learn more, call JASON SERVAIS at Countrywide for a free brochure. The number is 623.825.9800, X231.
Sunday, June 29, 2008
Open House
Held an open house in Phoenix Saturday - 7th Avenue and Thunderbird. Bank-owned. On Moon Valley Golf Course. Needs some work, but it's big (over 3400 s.f.), has a three car garage plus extra parking, a pool - and lots of potential. Worth a look if you know a buyer interested in that area.
Real Estate Auction
I went to my second real estate auction Thursday last week. Very interesting. Fast-paced. Loud. Well run. My bidder was after a 35-year old three bedroom, two bath home in Glendale (AZ) that had been foreclosed on by the bank. 1300+ s.f. She had previewed the property so she knew pretty much what it was worth. Her budget allowed her to bid as high as $70K - it sold for $80K. I think the bidding must have taken about all of 45 seconds. Her objective was to purchase it as an investment property - it needs some work, and some appliances and will likely rent for $900+ a month.
She'd bought a property at auction earlier in the month that she'll live in. Ended up winning the bid for $155K - plus 5% in selling costs. Last week it appraised for $180K - so she's pretty happy. It's a good buy.
Lots of properties - in a variety of conditions - at below market prices. Consider a look at http://www.ushomeauction.com/.
She'd bought a property at auction earlier in the month that she'll live in. Ended up winning the bid for $155K - plus 5% in selling costs. Last week it appraised for $180K - so she's pretty happy. It's a good buy.
Lots of properties - in a variety of conditions - at below market prices. Consider a look at http://www.ushomeauction.com/.
Sun City condo
I am working with a retired couple in Sun City, AZ who have a 900 s.f. one bedroom, one bath condo for sale for only $73K. It has a good sized Arizona room - which can be used as a second bedroom. Beautifully maintained, it is completely move-in ready. The HOA is $120/mo and includes water, trash pick-up, roof maintenance and replacement, exterior maintenance etc - a good deal. At lease one person in the household must be at least 55 years of age. Sun City has a "buy-in" fee consisting of $2500 capital preservation fee, $300 transfer fee plus $396 recreation fee (which is an annual fee). This home is a fantastic buy - no "gotchas" - it just needs someone to see it for the great buy it is. Know anyone who might be interested?
Fun in the Sun - with a Pool
I'm working with a lovely couple from rural Indiana - ready to move to Glendale (Arizona), somewhere close to GCC. That's the 85302 zipcode. They'd prefer single family, at least three bedrooms, 1800 s.f. or thereabouts, in a very quiet neighborhood. Their one "gotta have" is a pool, preferably a diving pool. They are happy to paint and do a little landscaping, but aren't in the market for a fix-up. Budget is $200K, more or less. No short sales unless the lender has preapproved. Anybody have a worthy property for them to consider?
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