Real Estate Update

Posts Tagged ‘Buyers’

First time homebuyers are in the exciting position of both choosing a home and making one the biggest investments in life. But are realtors necessary? I hear this question a lot from first time homebuyers. They wonder why they can’t just peruse open houses and visit new developments where realtors are just sitting there waiting. Well, that opens the first can of worms for first time homebuyers. Realtors usually work as either buyer’s agents or seller’s agents. That friendly realtor at the open house only represents the interests of her clients (the sellers.) That’s why I tell any first time homebuyer to team up with a professional realtor who knows the things that you don’t.

Tap Into Their Knowledge

Anybody can buy a house. But all the unknowns typically overwhelm a first time homebuyer. The great thing about working with a realtor is that you get an “instant guru” for all you questions from finding good schools, to how much less a seller might take, to “what is PMI again”? You will find that the mountains of paperwork go more smoothly if a realtor guides you through the purchase agreement. The legalities of buying a home are enormous, but competent realtors make sure you don’t skip the inspection, or spend all your time driving around an area that’s out of your price range.

But what about price range? One of the biggest concerns that new buyers have about hiring realtors is paying the commission. After all, is it really worth it to pay realtors when you could have that money available for your new home? Weigh this decision carefully. Don’t nickel and dime yourself out of competent advice. Especially if you have never navigated the paperwork and legalities of a real estate transaction, one of your smartest moves can be to include a realtor on your house hunting team.

Use the Services that Realtors Offers

Once you decide to work with a realtor, let them really work for you. Realtors can eliminate many homes based your requirements, so that you spend less time looking at inappropriate ones. List your desired amenities and priorities so that your realtor really knows what to look for. Good realtors listen. You shouldn’t have to tell him 4 times that a second bathroom is a must.

The best realtors will honor your time schedule and when you are available to look at sites. Realtors can also give valuable information about movers, local amenities and things to do, even local doctors if you’re new to town. Remember, in addition to having professional knowledge of the real estate game, your realtor is an area local. Ask lots of questions, and expect lots of information in return.

Where to Find Competent Realtors

Realtors are everywhere. Ask for referrals from people you trust. Interview potential realtors before making up your mind. Ask about their background, client load, experience and availability. Then grab you digital a camera and a notepad, call your chosen realtor, and have fun buying your fist home.

Until the last few months, the Manhattan condo market had been largely immune to the plunge in real estate values that has plagued most real estate markets around the country. Luxury Upper East Side condominiums and Manhattan new condos elsewhere on the island held most of their value as the unique nature of Manhattan’s economy and real estate market insulated them from the housing bust. However, in the second quarter of 2009, that insulation melted away. Manhattan real estate professionals say that during the three months that ended on June 30, 2009, condo prices fell between 13 and 19 percent with median sales prices ranging from 5,000 to 9,000. This represents a significant shift from the first quarter of 2009 when condo values ranged from a modest two percent loss in value to respectable gains of up to six percent compared to the first quarter of 2008.

Manhattan Condo Buyer’s Market on, Right Now

The uncertainties of the current Manhattan condo market have temporarily driven many of the speculators away from investing in condos and condo development projects. Investors who bought condos at relatively low “preconstruction” prices to turn a tidy profit when the condos were ready for occupancy have largely abandoned these investments for the moment. Another favorable facet of current condo market conditions for buyers is the fact that wealthy people who bought Manhattan condos as tax shelters for their money can no longer write off losses. Under new tax guidelines, it is no longer possible for investors to write off more in expenses than what they receive for rent on their condos. Rents on Manhattan condos have plummeted in the last year and what looked like a steady stream of income for investors has become a liability.

Huge Inventory of Unsold Manhattan New Condos

The steadily increasing value of Manhattan new condos fueled a condo development frenzy over the last several years and developers were putting up new condo buildings as quickly as they could. Nevertheless, the nature of the business is that development lags behind demand, and when the economy began to flag in 2008, new condo buildings were too far along in the development process to stop construction. This has led to a glut of unsold condos that has also put downward pressure on Manhattan condo prices that could favor buyers for another year at least. The Real Estate Board of New York has said that 11,023 condo units now under construction will be ready for sale by the end of 2010.

Tough Financing Options for Manhattan Condominiums

Yet another factor driving down Manhattan condo prices is the difficulty condo buyers are having with obtaining mortgage financing. Jumbo mortgages that exceed 9,750 exceed the loan limits of conforming loans backed by Fannie Mae and Freddie Mac, and most Upper East Side condos are priced very near or over that limit. Skittish lenders are asking borrowers of jumbo loans to put steep down payments of up to thirty percent on modestly priced condos and up to fifty percent on high-end luxury Upper East Side condos. This has understandably driven condo buyers to Manhattan condos on the lower end of the price spectrum.

Condo Sales Picking Up

Naturally, when market conditions favor buyers wanting to buy a condo for their primary residence rather than an investment, more buyers enter the market. According to one Manhattan real estate professional, condo sales jumped by more than 28 percent in the second quarter of 2009 as buyers sensed the bottom of the market was near. She said that lower-priced one bedroom and studio condos dominated the market and led to the surge in sales.

“It’s value-based shopping. People are coming back into the market, but nobody is going to overpay.”

A Fleeting Opportunity

While the Manhattan condo market is somewhat immune to the up and down cycles of most real estate markets, the window of opportunity for buyers will not remain open for long. Unlike most major American cities, New York City’s population is growing. As more buyers take advantage of current market conditions, the availability of lower-priced Manhattan condos shrinks and prices inevitably rise. Since there is little Manhattan new condo development currently under construction due to tight credit and wary investors, the condo market is expected to tighten in the near future. When that happens, investors will once again have the upper hand, well-informed buyers will see the value of their investments appreciate and cautious buyers who waited too long will have missed a golden opportunity.

Wealthy home buyers who buy multi-million dollar homes are typically self-made millionaires with new money, according to a recent online survey of 683 Coldwell Banker Previews International property specialists. The study revealed the top professions of these affluent customers. According to the respondents, 88 % of their customers are business or corporate executives, 37 % are physicians, 31 % are lawyers, 30 % are financial professional and 14 % are entertainers, entertainment executives or professional athletes.

Wealthy home buyers require their real estate agents to be equipped with special skills, according to the Coldwell Banker’s survey. Given the magnitude of the financial transactions involved in luxury home purchases, 78 % of sales associates said that the top most need their clients require from their real estate agents is privacy and confidentiality. The luxury customers also want their real estate agents to exercise discretion while dealing with their multi-million dollar transactions. Almost 70 % of respondents polled that their wealthy clients want their real estate professionals to offer customized services while 44 % said that the luxury home buyers want their agents to have good network and work relationship with executive assistants, CPAs and attorneys.

Wealthy home buyers also want their agents to know the inside scoop on the real estate market, according to 36 % of the respondents in the Coldwell Banker’s survey. Seventeen percent of the sales associates surveyed indicated that one of the necessary skills for real estate professionals working with affluent customers was the ability to provide emotional support to their clients. And according to 11 % of respondents, luxury customers want their real estate agents to establish personal rapport with their clients.

The study also included queries on the “must have” amenities that the affluent clientele want in their luxury homes. Wealthy home buyers want media rooms in their homes, according to 60 % of respondents and another 60 % polled that their affluent customers want “wired” homes. However, there are a few home design elements that are out among luxury home buyers. Gourmet kitchens, granite countertops and wet bars are no longer counted as luxuries by wealthy home buyers, according to the survey respondents.

The survey also found that the multi-million dollar home buyer pays a typical down payment of 20 % to 30 %, while a quarter of clients put down 30 % to 50 % of the sale price.

If you want to sell your house in Frederick Then Monocacy Home Buyers, LLC wants to buy it.

You may be asking yourself, “Can I really sell my home fast for top dollar?”  The answer is yes, you can sell your house to us in less than 48 hours.  Monocacy Home Buyers, LLC is a professional home buying company in Frederick Maryland that buys homes in any price range or condition.  If you are thinking about calling a local real estate agent to list your Frederick property, why not call us first?  You will benefit by selling your home immediately in a tough real estate market, while at the same time saving the 5-7% fees that a real estate agent will charge you.

Avoid the costly expenses of preparing your house to sell in a buyer’s market.

Sell your Frederick home to Monocacy Home Buyers and forget about having to repair or upgrade your property.  We buy houses in “as is” condition.  Due to the large number of foreclosures on the market and tough lending guidelines, today’s housing market is very competitive.  The limited number of buyers in the market today have a large choice of properties to choose from at rock bottom prices.  To make a property stand out it is usually necessary to make upgrades to the kitchen, appliances and bathrooms.  This can be extremely expensive and when combined with real estate agent fees, can eat up all of the proceeds from the sale of your home.  When selling your house to us you no longer have the added worry or expense of a costly upgrade or remodel project.

If you want to sell your house by owner we can help.

If you are considering attempting to sell your house by owner then we can be your easy solution.  It is very difficult in today’s market for a home owner to find a buyer.  A property can sit on the market for months.  In today’s declining housing market a home is losing value for every day that it does not sell.  This can be as much as 3-6% per month in some cases.  A quick sale is a must.  Monocacy Home Buyers, LLC wants to buy your for sale by owner property.

Selling your house to Monocacy Home Buyers, LLC is quick and easy.

We’ll make you an offer to buy your home fast. If your Frederick house qualifies for our purchase program, one of our professional house buyers will schedule an appointment to come visit your home and make you one or more custom offers to buy your home so you can sell your house quickly!

Your house selling satisfaction is a must. Remember, there is no obligation for you to accept any of our offers to purchase your house if they don’t meet your unique house selling needs. You will be able to talk to our house buyers and negotiate a sale that is a win-win for all involved. If you are not completely satisfied with our offer, you do not have to sell us your house.  We strive to satisfy your real estate needs in a quick and efficient manner.

Sell your home in Frederick, Maryland to Monocacy Home Buyers, LLC today!

We buy houses in the Frederick Maryland area. Need to sell your house fast? We can help! We buy houses in any condition, price range, or situation.  If you need to move fast or you are facing foreclosure, a short sale, or no equity we can buy your home.  We can pay all cash, and can purchase your house immediately! We will handle all of the paperwork, make all the arrangements and close within a few days if necessary.  You’ll get a quick sale with no hassles.  For more information, you can find us on the web at monocacyhomebuyers.com

San Diego County is home to one of the largest concentrations of military bases in the United States. In fact, the San Diego area contains 12 major Marine Corps and Navy bases and facilities. If you’re in the military and moving to San Diego, one of your biggest decisions is whether to buy a property, live on base housing (if this option is available to you), or rent a home or apartment. If you choose to buy a property, there are many issues to consider before taking this step.
BUY OR RENT?
The decision to buy or rent is more complicated for military personnel because you may be assigned to San Diego only for a limited period of time. If you plan to purchase while in San Diego and then sell when you transfer, the condition of the real estate market at the time you sell will make this either an easy or difficult process. In a seller’s market (when demand exceeds supply), properties tend to sell quickly and at or above asking price. In a buyer’s market (when supply exceeds demand), properties usually take much longer to sell and may sell below asking price. Individuals in the military should consider this issue in determining whether to buy or rent real estate in the San Diego area.
For those who choose to buy, the major other consideration is the likely appreciation rate of your property during your tenure in San Diego. If you plan to sell your property before you depart to your next assignment, you should remember that there are expenses (e.g. realtor fees, taxes, etc.) associated with selling your house, and any price appreciation you realize by owing the property for a few years, may or may not be offset by these fees.
Some individuals choose to keep their property even after they transfer to a new assignment outside of San Diego. In these cases, you can rent out the property, leave it empty, or find another acceptable use of the dwelling. If you choose to hire a Property Manager to oversee the renting and maintenance of your property, keep in mind that the fess for this service will cut into any monthly profit you realize on the property.
GETTING A HOME LOAN?
If you decide to purchase a property, obtaining a home loan is one of the tasks you must undertake. Many active-day members, retirees and other service veterans are eligible for special loan programs guaranteed by the Veterans Administration (VA).
To be eligible for a VA guaranteed loan, you must have served on activity duty and have a discharge status of other than dishonorable after a minimum of 90 days of service during wartime, or a minimum of 181 continuous days during peacetime. There is a minimum 2-year service requirement for veterans who enlisted after September 7, 1980. The 2-year requirement also applies to Officers who began service after October 16, 1981. There is a minimum 6-year service requirement for National Guard members and Reservists, and surviving spouses are also eligible under some conditions. There are other special conditions in which a person may be eligible, so contact your local VA office to get more information.
WHAT IS VA GUARANTEED LOAN?
The VA loan is a federal guarantee of a maximum of 25% of a home loan amount but not to exceed $104,250. This formula allows eligible members to obtain a maximum loan amount of $417,000 (as of 2006). However, service members must meet other eligibility requirements. Individuals borrowing using this type of loan must intend to be occupants of the purchased property.
Private lenders are the source of funds for VA guaranteed loans. The guarantee provides these private lenders assurance that the federal government will reimburse the lender up to the maximum allowable amount if the borrower fails to repay the loan. Because of this guarantee, lenders are more favorable to offering loans without a requirement for a down payment.
VA CERTIFICATE OF ELIGIBILITY
Individuals desiring a VA guaranteed loan must first obtain a Certificate of Eligibility from the Veterans Administration (VA Form 26-1880). Contact your local VA office to obtain this form by calling 1-888-244-6711. You will need a copy of your military discharge document (DD-214) to submit with your application. Once you have the Eligibility Certificate, you can then select a lender or mortgage broker to work with on getting the loan.
CLOSING COSTS
In addition to the purchase price of your property, there are closing costs that must be paid to process your home loan. These closing costs are fees that are charged by different service providers to help complete the loan process. For example, your lender will require an appraisal of the property to make sure that its value is at or above your purchase price. Other charges commonly included in closing costs are: recording fees, credit report fee, prorated taxes and assessments, hazard insurance, flood insurance (if required), survey, title examination, title insurance, postage and shipping fees, and the VA Funding fee.
WHAT IS THE VA FUNDING FEE?
The VA charges a fee to individuals utilizing the VA guaranteed loan. This fee is a percentage of the loan amount and is linked to the size of your down payment on the home you plan to purchase.
For active-duty personnel or veterans who put no money down, the funding fee is 2.15% of the loan amount. This rate increases to 2.4% for National Guard/Reserve.
For active duty personnel or veterans who put a down payment greater than zero but less than 10% of the loan amount, the fee is 1.5% of the loan. This rate increases to 1.75% for National Guard/Reserve.
For active duty personnel or veterans who put a down payment of 10% or more of the loan amount, the fee is 1.25% of the loan. This rate increases to 1. 5% for National Guard/Reserve.
The rates listed above are for first time users of the VA loan guarantee program. Individuals who have used the VA guaranteed loan program before pay higher rates than first time users. The rates above are subject to change. In some limited cases, individuals are exempt from paying the funding fee. You should contact your local VA center for current information.
CHOOSING A VA LOAN VS. A CONVENTIONAL LOAN
You must carefully evaluate the terms of the VA guaranteed loan vs. the terms of a conventional loan. One advantage of a VA guaranteed loan is that many lenders will not require you to put a down payment on the purchase of the property, assuming you meet their other lending criteria (e.g. credit scores, sufficient income, adequate debt to income ratio, etc.). There are also many zero down payment conventional loan programs. In some cases, the VA guaranteed loan will offer a lower interest rate and better terms, and in other cases, you can obtain a better deal through conventional financing. A good loan officer can help you evaluate the advantages of either loan, given your particular situation.
FINDING THE RIGHT HOME
If you are familiar with the San Diego area, then you probably already know where you want to live. If you are less familiar with the communities in San Diego, your Realtor can serve as an excellent resource to answer your questions. There are many steps to take during the home search process, which include:
1. Work with your loan officer to identify how much you can afford.
2. Determine what type of property you want to buy (single-family home, townhouse, condominium, other). Your Realtor can advise you about the differences between these types of properties.
3. Determine how many bedrooms, bathrooms, square footage, etc. you need.
4. Determine what areas of San Diego you would consider living in.
5. Calculate the drive time (with and without traffic) to your job.
6. Identify the quality of schools in the neighborhoods that you are considering.
7. Locate the crime statistics for the neighborhood that you are considering.
8. Identify the location of local community resources such as libraries, shopping centers, athletic centers, etc.
9. Ask your Realtor to advise you about the resale potential of the home you are considering.
Although there are many other factors to consider, the above is a good starting point. Your Realtor should be able help you get answers to the questions above as well as provide you many other resources. Keep in mind that most Realtor’s who assist homebuyers and paid by the home seller, but make sure to ask your Realtor about this.
HOW MUCH SHOUD I PAY FOR A HOUSE?
Your Realtor should be an excellent source of information to help you understand a fair offer price. The Realtor should provide you information about what other similar properties in the same community have sold for recently, current pricing trends for the community, as well provide you a recommendation based on their experience in the local market.
DO I NEED A HOME INSPECTION?
There are many other issues besides the offer price to consider when making an offer. For example, many buyers find it advantageous to get an inspection of the property by a qualified inspector. The inspection typically covers the major systems of a property. Check out the National Association of Home Inspectors web site for more information about what is covered in a typical home inspection. Getting a home inspection is generally a good idea.
HOW LONG WILL THIS TAKE?
If you want to use the VA guarantee, then make sure you have obtained the Certificate of Eligibility far in advance of your relocation to San Diego. Whether or not you are using the VA loan program, be sure to obtain a loan pre-approval (sometimes called loan prequalification) from a lender or mortgage broker. This lets home sellers know that you are a serious buyer and are ready to act quickly if needed.
Prior to moving to San Diego, get a sense of the local real estate market. Your Realtor can set up an automatic email notification system that will send you descriptions and pictures of properties that meet your criteria. Doing this type of research should save you a lot of time when you arrive.
Once you have your loan pre-approval, the next step is to locate a property that meets your needs. Your Realtor should show you a variety of available properties that meet your criteria. Once you find a house you an interested in, your Realtor will prepare the purchase offer documents, and guide you through the loan and closing process.
In summary, it’s simply a process of getting a loan, finding a house that you like, making an offer that is accepted, and going through the closing process, which can occur in less than 30 days.
CONTACT A SAN DIEGO REALTOR
If you are moving to San Diego, contact a Real Estate agent who is familiar with VA guaranteed loans and has experience working with military buyers. Many agents have prior military service themselves, and are very familiar with your situation and needs.