Why Professional Photos?

90% of home buyers begin their home search on the internet.  If they are looking at homes with terrible pictures, what are the chances that they will like the house?  And imagine if there aren't any photos!

I hire a professional photographer to take pictures of every home I list.  They have the proper cameras, flashes, and do a much better job capturing the home than I do.  A home seller's first showing is on line and without good photos, a potential buyer may overlook the house.

If you hire a Realtor to list you house, don't let them cut corners by taking their own photos.  Professional photos DO make a difference!

Lending....sometimes it is a shell game and the buyer often loses.

What's the best interest rate?  And how much are the origination charges?  Those are two very important questions.  But they aren't ALL the questions. Is there a processing fee?  Underwriting fee?  Is the rate quoted with points?  How about the survey and appraisal?  How long is the lock on the rate - does it cost more for a 45 day lock?  All these questions are important to get an accurate quote. 

This week I reviewed three buyer's good faith estimates and to my surprise, on one HUD there were some hidden charges that accounted for $$1500 in additional fees and a .25% higher interest rate.  Now, the buyer did get a $2500 credit because they went with a 'preferred lender' - whatever that means.  So the additional $1500 in fees was netted out of the $2500 credit leaving the buyer with a $1000 credit.  But they are still paying a higher interest rate which quickly adds up.  The $1000 savings will soon translate into many thousands of dollars in extra interest.

Buyers are sometimes private about their finances (ok - always private) and as a Realtor, I respected their privacy and let them do their own homework when it came to lenders.  Through experience, I have learned to respect their privacy while helping them understand a Good Faith Estimate early in the process.  All the numbers are on a HUD statement at closing anyway, so why not help buyers price shop before they commit to overpaying?  It is just another service I can provide my clients! 

Two Costs to Consider when Buying a House

The price of the house and the price of the money - the two cost you MUST consider when you buy a home.

Think about it. You want the best price, or a deal, on the house. Right? You negotiate down to the final $100. Of course the price of the house is important!

Now it's time to finance the great priced home you just agreed to purchase. Do you consider the cost of the loan? Or is it a cost you assume you can't control?

Consider this:

$150,000 loan for 30 years - 5% interest rate .  Monthly Principle and Interest Payment = $805
    Two years worth of interest = $15,392


Now take the same loan at 5.25% interest.  Monthly payment = $828
    Two years worth of interest = $16,173

Hmmm...that's nearly $800 more interest in just two years!  Plus $23 a month more for the payment (or $552 over two years).  And the equity in the home increased by $200.  That means a .25% increase in rates just cost $1500 in two years.  And that number grows over the life of the loan.  Makes that last $100 you negotiated on the price seem almost irrelevant, doesn't it?

Consider a home worth more than $150,000?  Higher priced home = greater difference. 

Don't be short sited when you buy a house.  Just because you got a great house at a great price, doesn't mean you got the best deal.  Make sure you consider the cost of the money.  Interest rates are still extremely low!  Take advantage or pay more.  It's that simple.

How late payments, short sales and foreclosures impact your credit score

I thought this article had a lot of good information regarding the impact a mortgage late payment can have on your credit score. It also explains the implications on your credit score of a short sale and a foreclosure.

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  How Foreclosure Affects Your Credit Score

  Foreclosures—and how you handle them—may have long-term credit score implications. Read

Visit houselogic.com for more articles like this.

Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

Foreclosure Crisis could mean opportunity for Private Owners/Sellers

No one knows how long the freeze on foreclosed properties will continue. But the freeze is keeping the most undesirable competitors off the market, making foreclosed properties less of a factor in pricing than they have been for the past 3 years.

Q: Shouldn’t I wait for a better time to put my home on the market?
A: When there are more foreclosed properties listed for sale, the law of supply and demand applies and suppresses prices. Foreclosed properties are active competition for private home sellers during their marketing period - often being used in negotiations to the detriment of those private sellers.

With a freeze on foreclosures (a number of active foreclosed REO properties have recently been withdrawn from the market) and the fact that pending properties that were scheduled to close have been stalled and postponed indefinitely, buyer's options are reduced and competition for private owners/sellers is eliminated.

Q: Will the freeze affect my home’s value?
A: The fact that those closings did not occur could serve to temporarily buoy the value of comparable homes within a neighborhood or market area. These depressed prices do not go on the books for appraisal purpose.
The fact that active foreclosed properties are not being negotiated on, or are even being withdrawn from the market, reduces underpriced competition for the private home owner/seller. At that point, supply and demand takes over. Fewer properties available at suppressed prices will increase demand for properly priced homes not in foreclosure.

Q: What does this mean to the average homeowner thinking of putting their home on the market?
A: Two things. First, during the freeze, fewer foreclosed homes will go on the market, reducing that inventory. Second (and most importantly), buyers will be wary of making offers on bank-owned homes. The time is right and most opportune for a private homeowner/seller to market their home at a reasonable price.

Q: Are you calling this a window of opportunity, rather than a time to sit out?
A: Yes. The law of supply and demand is still relevant and at work in our economy regardless of all the other challenges we may face. Homeowners can and should seize this opportunity to get serious about marketing their home and seize this window of opportunity that has opened while it is available!

The Value of a Pre Approval Letter

Buyers get pre-approved before they write an offer.  Sellers ask to see a pre-approval letter with an offer.  But why?? 

The intended value of a pre-approval is that it shows credit worthiness.  It is not a guarantee the buyer can get a loan.  Assuming the lender has done their job, the letter is as close to a guarantee as any buyer or seller can get.  However, assuming is a big mistake.  Many lenders check credit scores, ask the buyer how much they make, how long they have been employed and how much debt they have.  Then they write a pre-approval letter without verifying that the information is accurate. A good lender verifies the information by getting copies of W-2s, tax returns, 2 months supply of bank statements and check the credit score before they offer their expert opinion that the buyer will be able to get a mortgage. 

Is this important? As a seller, you don't want to take your house off the market while the buyer gets all their lending in order only to find out they can't afford your house.  You may have lost 30 days or more on the market.  And as a buyer, do you want to get your hopes up that you are going to buy a house only to find out you really can't afford it?  So yes, it is extremely important!

Your agent, whether you are on the buying or selling side, should help you determine if a pre-approval letter is worth the paper it is written on.  Believe it or not, a lender can make or break a deal.  So if you are a buyer, ask your agent for referrals of good lenders.  And sellers, make sure you question the validity of a pre-approval letter before you accept an offer.  

Do OPEN HOUSES sell homes?

Statics show that homes not held open will not sell at an open house.  That's right, don't hold it open and it won't sell at an open house.  But the real question is IF it is held open, will the open house bring the buyer?  And that is not quite so easy to answer.

I just held a house in Noblesville, IN open for two hours on Sunday.  It looked great!  The home owners cleaned, baked cookies, put fresh flowers in vases and made the home look like a model.  We put an ad in the Indianapolis Star (color ad!), I did my homework on the competition, put on my best Sunday dress and was ready to answer any and every question a potential buyer may ask.   And guess what.... no one came! 

Based on that experience, I would say, no, the open house did not sell the home.  But selling a home isn't about doing one thing.  It takes a multiple pronged marketing approach and lots of hard work to get a house sold.  Internet marketing, multiple color photos, print advertising, broker tours, signs in the yard, word of mouth, and yes, open houses, are all part of a complete marketing approach.  It only takes ONE buyer and all buyers do not look for homes the same way.
It is reported that only 1-2% of homebuyers found their current home at an open house.  That means an Open House worked for 100% of the sellers that sold their homes to those buyers.  Not to mention the 'soft' buyer leads that advertising may genterate, meaning buyers that see the ad in the paper and go on line to get more information, or neighbors that tell a friend about the house down the street that they saw last Sunday at an open house. 
So do Open Houses sell homes?  The answer is yes.  But the reality is that Open Houses are not the most effective option for a seller.  However, if your agent is willing to hold your home open, then why not do it?  If you say no, you may have a missed opportunity.  If you say yes, you may have a buyer!