Why hire a Realtor

5 Reasons to Hire a Real Estate Professional

by The KCM Crew on May 14, 2014 in For Buyers, For Sellers3.8k 2.6k 610 449 118 9 Whether you are buying or selling a home, you need an experienced Real Estate Professional to lead you toward your ultimate goal. In this world of instant gratification and Internet searches, many sellers think that they can For Sale by Owner or FSBO.The 5 Reasons You NEED a Real Estate Professional in your corner haven’t changed, but rather have been strengthened in recent months due torising interest rates & home prices as the market recovers.

1. What do you do with all this paperwork?

Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true Real Estate Professional is an expert in their market and can guide you through the stacks of paperwork necessary to make your dream a reality.

2. Ok, so you found your dream house, now what?

According to the Orlando Regional REALTOR Association, there are over 230 possible actions that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, who knows what these actions are to make sure that you acquire your dream?

3. Are you a good negotiator?

So maybe you’re not convinced that you need an agent to sell your home. However, after looking at the list of parties that you need to be prepared to negotiate with, you’ll realize the value in selecting a Real Estate Professional. From the buyer (who wants the best deal possible), to the home inspection companies, to the appraiser, there are at least 11 different people that you will have to be knowledgeable with and answer to, during the process.

4. What is the home you’re buying/selling really worth?

Not only is it important for your home to be priced correctly from the start, to attract the right buyers and shorten the time that it’s on the market, but you also need someone who is not emotionally connected to your home, to give you the truth as to your home’s value.According to the National Association of REALTORS, “the typical FSBO home sold for $184,000 compared to $230,000 among agent-assisted home sales.”Get the most out of your transaction by hiring a professional.

5. Do you know what’s really going on in the market?

There is so much information out there on the news and the Internet about home sales, prices, mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to, to tell you how to competitively price your home correctly at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a low-ball offer?“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.” – Dave RamseyHiring an agent who has their finger on the pulse of the market will make your buying/selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

Bottom Line:

You wouldn’t hike up Mt. Everest without a Sherpa, or replace the engine in your car without a trusted mechanic, why would you make one of your most important financial decisions of your life without hiring a Real Estate Professional?

Don't WAIT until Mortgage Rates DO go up!

Biggest news in Jim's Mortgage Matters is the expectation is that interest rates won't reach 5% anytime soon on 30 year fixed mortgage money...or as noted " .    It is really unknown when that well occur.

Another takeaway is that housing activity has slowed.  In Hampton Roads, it is not really very true but evidently the higher rates has impacted the trends nationally. 

Yet with a confidence that rates won't move much higher, buyers can feel very good that they still can get some great cheap loans for now.

Now is not the time to wait!!!

Keeping you updated on the market! For the week of  August 5, 2013 MARKET RECAP Are Mortgage Rates the Real Issue? Housing activity has slowed noticeably over the past couple months. Sales of new and existing homes have stagnated, while new residential construction has been volatile. Most market watchers say higher mortgage rates are to blame. To be sure, higher mortgage rates raise the monthly cost of financing and owning a home, but rising home prices are also a contributing factor to overall costs. On the latter, most data sources point to a sustained rise in home prices. The latest data release from S&P/Case-Shiller confirms the trend. Case-Shiller's home price index show that prices rose in 18 of the 20 cities it follows ( Minneapolis and Cleveland were slight laggards). Overall, home prices rose 1% in May compared to April. This latest increase lifts the year-over-year gain to 12.1%. The laws of supply and demand state that when prices rise demand falls. But at the same time, rising prices draw more supply into the market. As we know, lack of supply has restrained sales growth over the past year. The good news is that we have seen supply in existing homes for sale increase over the past few months. Rising home prices are, no doubt, a contributing factor. Going forward we see home-price gains moderating. This should help draw more homes into supply. We say that because more potential sellers will no longer be compelled to wait if they believe the price trend is moderating, or even stagnating. When you become more unsure of the future, you tend to act now; you don't wait. We view moderating price gains as a positive. Indeed, low single-digit annual price gains would be more indicative of a normalized housing market. Double-digit year-over-year price gains aren't the norm, nor are they sustainable. We remain somewhat skeptical, though, that recent mortgage-rate increases and tight supply are the main culprits behind the recent slowdown. Economic growth, or rather the lack of growth, could very well be the real culprit. The fact is that economic growth remains sluggish. In the second-quarter of 2013, gross domestic product (GDP) grew at a 1.7% annualized rate (normal growth is around 3%). Because the economy isn't quite firing on all cylinders, we doubt that we will see any dramatic moves in mortgage rates. Job growth will be key. If we see sustained job growth over the next couple months, this will be indicative of stronger economic growth in the third quarter. If that occurs, rates will move higher, but we still don't think they'll move materially higher. We don't expect to see 5% on the 30-year fixed-rate loan until the Federal Reserve unequivocally indicates it will cut back on quantitative easing, and that remains the great unknown. Economic Indicator Release Date and Time Consensus Estimate Analysis International Trade (June) Tues., Aug. 6 8:30 am, ET $44.2 Billion (Deficit) Moderately Important. The rising deficit points to a modest improvement in domestic demand. Mortgage Applications Wed., Aug. 7, 7:00 am, ET None Important. Sluggish economic growth and higher lending rates have stalled purchase-application growth. Consumer Credit (June) Wed., Aug. 7, 3:00 pm, ET $15 Billion (Increase) Important. Gains are occurring most strongly in student lending, which suggests consumer confidence is lagging. Wholesale Inventories (June) Fri., Aug. 9, 10:00 am, ET 0.5% (Decrease) Moderately Important. Falling inventories point to higher industrial output should economic growth accelerate. Federal Reserve Speak The language from the Federal Reserve can be frustratingly ambiguous. The minutes of the latest Fed governors meeting, released this past Wednesday, state that “economic activity expanded at a modest pace during the first half of the year,” which indicates the economy still isn't growing at a pace the Fed would like to see. At the same time, the Fed has hinted that it could begin tapering quantitative easing within the next month or two. It can all be a bit confusing. The key variable in the equation, and we've said this repeatedly, is job growth. Accelerating job growth means accelerating economic growth, and then, for sure, the Fed will begin to taper and mortgage rates will rise. But if job growth continues to come in at, or below, current expectations, we'll likely see the unemployment rate hold current levels, which is unacceptable to the Fed. Our best guess is that the current mortgage-rate range will hold through summer. If we don't see a material change in the unemployment rate by the end of the third quarter, we'd expect the Fed's commitment to quantitative easing to push into 2014, which means mortgage rates would hold the current range through 2013. If you do not wish to receive this valuable email, please let me know. EQUAL HOUSING LENDER

What to Seek In Your Next Realtor

In purchasing or selling real estate, selecting a Realtor is a key consideration.   Like choosing an attorney, financial planner or a doctor, you must choose carefully as you must trust the advice provided in the same way as you would in these other professions.

Frequently, the home purchase or sale is the largest financial transaction(s) in a person's life time.   Thus, good counsel is essential.

So how to choose a Realtor??

Experience, Availability, Personality and Knowledge are key factors.

Experience counts!!   Though a new agent may have a good working knowledge of a contract, the experienced agent should know means to leverage the terms of the contract to his/her clients advantage.  In addition, experience brings a broader knowledge of the home values, historical and present, negotiating savvy and vetted marketing strategies.

I must note these factors should be self-evident in talking with an experienced Realtor in the Realtor responses to questions and description of experiences.  IF YOU AREN'T COMFORTABLE THAT THE AGENT HAS THE EXPERIENCE NEEDED, HE/SHE MAY LACK THE EXPERIENCE.

Availability may seem a mute topic.  Yet, even the best Realtor in town can be too busy at a given time to help you.   It is so true that if you want something done, ask someone that is busy.  

As you speak with the Experienced Realtor, inquire about their availability on week you plan to come in town to tour homes or the weekend that you want to list your home.  A truly good Realtor will always discuss availability openly to ensure your needs are met!!

Personality can not be ignored.  Though Realtors like me believe we can work with anyone as we just love to help, you, as buyer or seller, must be comfortable with me or any Realtor that you are considering.  IF the agent wasn't as outgoing as you would like or has failed to respond to texts as quickly as you will expect or some other such attribute that "bugs' you,  you should seek to talk to another agent.

Knowledge should be self-evident from the moment that you start speaking about the house you seek or the home you need to sell.
If BUYING, does the Realtor ask specific questions to qualify the type of house you seek?  Or notes the rarity or the ease of finding the house that you seek?   Or brings up other buyers helped finding the same king of house. Such actions shows knowledge of what needs to be know to find the right house...but it will go much deeper as the transaction progress to knowing the best way to negotiate for the best deal, in handling home inspection and handling issues to ensure you close on time with little headache.  

If SELLING, does the Realtor bring extensive market related data that shows in depth knowledge of the specific neighborhood and the broader market?   Do they quickly recognize both good aspects of your home and those aspects needing work with a value based input on these aspects of your home?  Does he/she know how he/she will market your home and why he/she do it that way?

Knowledge will show itself quickly or it is absent.

THE BEST WAY TO GET THE BEST REALTOR IS TO ASK A FRIEND, CO-WORKER OR FAMILY MEMBER FOR A REFERRAL.


Referrals get you a known successful Realtor.  I know I appreciate every referral I get!!  It validates that I am what a buyer or seller seeks.

More Buyers Buying!! Now is not the time to wait

In reviewing multiple sites, I have found that Jim's Mortgage Matters really does a good job of summarizing trends.

Note the quick analysis on refinances being down with the new rates(up a point-1% in past 30 days) while purchases are up 2%.
Purchase applications have seen a double digit increase over the past year(16%).

As Jim notes, no one can predict where mortgages will go!!!
Yet, Fed action seems to indicate they will continue to rise...but who knows!  Home prices continue to strengthen also.

So are you willing to risk the chance of the double whammy of higher rates and higher prices???   Again, no guarantee that you will face this situation but the probability is very real.

Keeping you updated on the market! For the week of  July 1, 2013 MARKET RECAP The Power of Expectation Mortgage rates continue to be the lead story in the financial press, and for good reason – rates are up a full-percentage point over the past month and are now at July 2011 levels. It's understandable that the spike in mortgage rates would slow refinance activity. Indeed ,that's been the case: Refinances have dropped considerably over the past month, and the latest weekly data show yet another drop, with activity falling 5%. Refinances are now at a two-year low, and their percentage of overall lending has dropped to 67%. Purchase activity is a different story: Purchases were up, rising 2% from the previous week. Total purchase applications are actually up 16% year over year, indicating homebuyers have yet to be put off by rising mortgage rates. We've written frequently about expectations. If buyers expect lower prices, they'll frequently (but not always) wait for lower prices. We saw a lot of that behavior when mortgage rates were trending lower. Many borrowers, especially on the purchase end, would wait and wait and wait. (Refinancers were more willing to act, knowing if rates continued to drop they could refinance again.) On the other side of the coin, people tend to be spurred into action by rising prices. They don't want to pay more tomorrow for what they can get cheaper today. We've seen that in the purchase market over the past month. Home prices have been rising steadily over the past 18 months, but now mortgage rates are rising too. More borrowers (and most lenders, for that matter) don't expect to see a return to the ultra-low rates of a couple months ago. Many believe the trend has shifted and rising rates are the new norm. We think rising rates are the new norm too. We say that because credit markets are much more sensitive to the Federal Reserve and the prospect of it curtailing its mortgage-backed securities (MBS) purchases. When the Fed curtails (or even hints at curtailing) its purchases, interest rates will rise, which means today's bond investors will suffer losses. (When interest rates rise, the price of fixed-income investments like bonds fall.) Obviously, these investors don't want to suffer losses, so they'll sell if they think demand for bonds and fixed-income securities will fall. Of course, we can't predict with certainty whether mortgage rates will move higher in the near future. After all, a significant macro event – a major terrorist attack, a large bankruptcy, a European bank run – could spur money to flow back into haven investments, like U.S. Treasuries and MBS. That said, we see higher rates and more volatile rates as the likely scenario. For this reason, we continue to say that waiting is the real risk in this market. Economic Indicator Release Date and Time Consensus Estimate Analysis Construction Spending (May) Mon., July 1, 10:00 am, ET 0.8% (Increase) Important. Residential construction spending is driving overall spending growth. Mortgage Applications Wed., July 3, 7:00 am, ET None Important. Rising rates have spurred more buyers into action. International Trade (May) Wed., July 3, 8:30 am, ET $40.2 Billion (Deficit) Moderately Important. The increase in non-energy imports points to an entrenched recovery. Employment Situation (June) Fri., July 5, 8:30 am, ET Unemployment Rate: 7.5% Payrolls:165,000 (Increase) Very Important. Interest rates will rise if payrolls increase more than anticipated. Full Steam Ahead Sales of new and existing home are gaining momentum: More supply is coming to market and prices continue to rise. On the latter, the S&P/Case-Shiller Home Price Index shows prices up 1.7% in its 20-city index month over month; the year-over-year rate is exceptionally strong, at plus 12%. But will rising mortgage rates derail the recovery? We don't think so. Many people have the perception that rising mortgage rates lead to lower (or at least less growth) in home prices. The rationale goes that rising mortgage rates lower affordability, so home prices fall to compensate for higher financing costs. The perception was recently refuted in the New York Times. Douglas Duncan, chief economist at Fannie Mae was quoted to say, “There’s no strong correlation between interest rates and home prices.” Mortgage rates rose sharply in the late 1970s, but home prices continued to rise too. In the 1990s, rates were relatively flat and home prices continued to move higher. In 2007 and 2008, both mortgages rates and home prices fell. In 2013, rates have increased and so, too, have home prices. In other words, there really isn't much of a correlation. To be sure, mortgage rates matter, but they're less important than many people believe. Job and economic growth are by far the more important variables, and both have been improving in recent months. EQUAL HOUSING LENDER

Sparked Interest Among Young Americans to Buy a Home This Year.

Wow!!  So much news that I have to share!

It is very interesting that the Young are leading the charge.  I guess they have the greatest confidence in the future and will benefit the very most by these low interest rates!  

As any one knows, in the early phases of our work life(and home ownership), watching pennies is what makes dollars over time.

I am sure with the debacle in mortgages that these Young Buyers have paid attention to every element of their mortgage.  And I believe every one should!!



Sparked Interest Among Young Americans to Buy a Home This Year.

Mortgage Deduction Still on Congress's Mind

It is still on the table!!!

Thanks to Al Clark we are all aware.

It is hard to believe that Congress's professed effort to support the Middle Class would consider eliminating the Mortgage Interest Deduction.  This deduction is a key factor in home affordability whether one buys a $50,000 house in a small town in a very rural part of the country or buys what amounts to a first time home buyer $300,000 home in San Diego. 

The 18% to 25% deduction on mortgage interest equates to huge savings on annual basis and can simply be the difference between buying and sharing in the American Dream of Home Ownership(like the Congressman considering this item) or still giving the landlord all the tax benefits and profits via the tenant's rent payment.

Don't take me wrong: there is nothing wrong with renting!
Yet, to take away one of the under pinnings that allow home ownership to be affordable is not good macro economics for the U.S. economy or micro economics for the home buyer's budget.

Call your Congressman or Congresswoman!

P.S. Don't miss the notes on almost 14% increase in National Median Home price....good news keeps coming

MORTGAGE INTEREST DEDUCTION FRONT AND CENTER IN CONGRESS

Topic Summary: As part of the ongoing effort by House lawmakers to craft comprehensive tax reform legislation in 2013, the House Ways and Means Committee welcomed testimony from real estate industry executives and economists on the merits of the mortgage interest deduction (MID). On the "keep things as they are side" caution was advised not to harm the very robust housing recovery by adding new tax policies that will lead to uncertainty for homeowners.   Just In: The national median existing-home price for all housing types was$184,300 in March, which is 11.8 percent higher than March 2012. The March increase is the strongest since November 2005 when it rose 12.9 percent from a year earlier, and the last time there were 13 consecutive months of year-over-year price increases was from May 2005 to May 2006. Not if , but how. Many in Washington and real estate circles feel that something will be done to the cherished deduction this year. While pledging a "careful, thoughtful review," House Ways and Means Chairman Dave Camp asked several experts for their ideas on how to alter the MID to raise more revenue for the government. Any changes that come about or even discussed can have a chilling effect on the real estate industry and future homebuyers and sellers. Fist Some Facts: The deduction for mortgage interest has been part of the federal income tax code since its inception in 1913. Despite a century of additions, modifications, deletions and overhauls of the tax code, Congress has left the mortgage interest deduction untouched. Current law allows a homeowner to deduct the interest paid yearly on up to $1 million in total acquisition debt for a principal residence and a second, non-rental home. Homeowners may also deduct the interest on up to $100,000 in home equity debt. According to estimates from the Joint Committee on Taxation, (JCT) the mortgage interest deduction will cost (loss revenue) $75 billion in fiscal year 2015, real property tax deductions will cost $30.4 billion and the exclusion of capital gains on owner-occupied housing will cost $26.0 billion. In 2012, 34 million households, or 22 percent of tax filers, claimed the home mortgage deduction. That cost the federal government $68 billion in forgone revenue, according to estimates from the JCT Less than a quarter of the deduction's benefits, the JCT says, went to households making less than $100,000 in 2012, and the deduction is only available to the roughly one-third of households that itemize. Ideas on The Table There are three ways Congress could play with the home mortgage deduction: the direct way, a "back door" way and a gradual way. The direct way to raise more revenue would be to reduce the amount of the deduction--for example, it could be limited to homes (mortgages) worth $500,000 or less, rather than the current $1 million dollar limit. It could also be eliminated entirely for second homes. The most extreme measure would be to phase out the deduction entirely. Such attacks would be strongly fought by the real estate industry and hopefully homeowners. The Sneaky Way.  Instead of specifically targeting the home mortgage deduction, a cap would be placed on all itemized tax deductions. The Obama Administration has already proposed capping such deductions at 28% for households earning more than $250,000. This would substantially reduce the value of the home mortgage deduction for high income taxpayers. For example, Under the President's proposal, married taxpayers with adjusted gross income greater than $250,000 would normally see a $35.00 benefit for every $100 in itemized deductions but instead they would receive only a $28.00 benefit for every $100 in itemized deductions. The Gradual Way. Some are suggesting just wind down the value of the deduction over several years to lessen the sting on the economy and home prices.  Don't forget other deductions are also being talked about for reduction too. The ability to deduct property taxes cost the government $30 billion last year. A Home seller's ability to exclude capital gains on a home sale reduced revenues about $26 billion. Timeframe: The tax writers indicate they want to get substantive tax reform done this year. We will be keeping a watch out for any news on this important issue facing current and would be homeowners.

HOT Interest Rates....Here's Roof

 

Frequently, I am asked "are the rates really that good".  I have shared time and time again that we have never seen such rates.

 

And it benefits buyers directly by lower payments!

 

And sellers "indirectly" by making their home "cheap" monthly.

 

Jeff Hurd with Prime Lending provided these four documents displaying the historical trends and, almost more importantly, a chart noting the value that these rates bring to your payment.

 

 

 

Click Here for the 20 Year FHA Interest Rate Average For 30 Year Fixed-Rate Mortgage Chart

Click Here for the 30 Year FHLMC Rates On 30-Year Fixed-Rate Mortgage Chart

Click Here for the 200 Year Historical Rates On 30-Year Fixed-Rate Mortgage Chart

Click Here for the Home Price vs. Payment Chart

 

 

Now isn't the time to sit on the fence!  You will regret waiting 6 months, a year or 2 years believing "the market better"