Observations of a Lehigh Valley Realtor

Buyers Have the Edge!

Deb and Joe Corcoran, Keller Williams Real Estate — Fri, 04 Mar 2011 16:34:30 -0800

According to Lawrence Yun, chief economist from the National Association of REALTORS, "Home buyers over the past year got a great deal, and buyers for the balance of this year have an edge over sellers. Affordability could reach a generational high in the second half of this year because of rock-bottom mortgage rates, helped partly by the Fed's very accomodative monetary policy." For more reasons why now is prime-time to buy a home, contact us and we'll send you a free ebook!

It's Prime Time to Buy a Home!

Deb and Joe Corcoran, Keller Williams Real Estate — Thu, 10 Feb 2011 11:53:06 -0800

I just read a really good e-book called "7 Reasons Why Now Is a Great Time to Buy a Home". It's filled with positive, exciting information to help buyers seize the incredible market opportunities available right now in the Lehigh Valley. I'll be sharing key excerpts from the ebook here in my blog over the next several weeks. For a free copy of this e-book, contact me and I'll send it right out to you!

So Which Numbers Do We Believe?

Deb and Joe Corcoran, Keller Williams Real Estate — Tue, 26 Oct 2010 12:22:59 -0700

One headline says '10% Jump in Existing Home Sales' while another reads 'Lehigh Valley Housing Market Sags'. So, which do you believe? Actually they're both correct. The numbers can be confusing, but we've always told people that real estate is a local market. Years ago, when prices were climbing in most of the country, there were areas where prices were actually going down. That's why you have to look beyond the headlines to see what's really going on. The just released September numbers from the National Association of Realtors shows what could be the beginnings of a housing recovery, with sales up 10% over the previous month. On the other hand the picture is not as rosy in our local market. Sales in the Lehigh Valley decreased 12.7% from August to September. Although this is in keeping with the seasonality of real estate sales in the Lehigh Valley, August sales were lower than normal due to the tax credit which was offered earlier this year. The Lehigh Valley saw the effects of the housing downturn later than most other areas, and we may see the recovery a little later as well.

Southwest Airlines Coming to LVIA?

Deb and Joe Corcoran, Keller Williams Real Estate — Mon, 27 Sep 2010 12:01:27 -0700

It appears it could happen, but not in the usual way. Southwest announced today that they are buying AirTran Airways, which flies out of Lehigh Valley International Airport. Usually mergers like this are approved on the condition that services already provided by each airline are not disrupted, so by 2012 we could see Southwest Airlines flying out of LVIA!

FHA Changes Could Cost Buyers More Money

Deb and Joe Corcoran, Keller Williams Real Estate — Wed, 01 Sep 2010 11:40:30 -0700

Changes to FHA financing now scheduled to take effect on October 4 will probably raise the monthly payments for those who use the popular FHA Financing option. My loan officer, Mona Campos from Keystone Financial Mortgage in Bethlehem, recently showed me how the numbers add up.

Currently all FHA borrowers pay a 2.25% up-front funding fee at the time of closing on their home purchase. Most buyers actually roll this amount into their loan as part of their closing costs, so they never really think about it. It is, however, raising their monthly payment. The good news is that FHA is actually going to lower the funding fee to 1%. On a typical $200,000 loan with 3.5% down (FHA minimum) and 4.5% interest, the lower funding fee reduce the cost of the loan each month by $12.65. So far, so good. Now you know there's a 'however' coming, don't you?

The monthly FHA loan payment also includes the monthly PMI. which is the fee FHA collects to insure itself against the borrower defaulting on the loan. This part of the FHA fees is going up. Currently .55% for loans with less than 5% down, this fee is increasing to .90%. How does this effect our monthly payment under this scenario? The monthly PMI goes from $91.68 to $150, an increase of $58.32.

So now we have a decrease of $12.65 because of our up-front PMI descrease and an increase of $58.32 in our monthly PMI for a new payment increase of $45.67. I know the numbers can be confusing but hopefully this will help you to understand how these changes can effect your purchasing power in the coming months. If you're thinking about using FHA financing for your home purchase just give us a call and we'll be glad to guide you through to your new home purchase.

Before you take a bite of that...

Deb and Joe Corcoran, Keller Williams Real Estate — Thu, 29 Jul 2010 17:04:15 -0700

ESPN did a series this week on the food served at sports arenas and stadiums across the country and the results were pretty shocking! I got to thinking about our local major sports venue, Coca Cola Park, and thought it was worth checking into the report card the home of the IronPigs received from the PA Dept of Agriculture, the government authority charged with inspecting food handling facilities in the state. The most recent inspection was held on June 29th according to the PDA website, and found 4 minor violations in the concession stands, the most serious being for improper storage of funnel cake batter. Unlike most of the IronPigs this season, the batter was too hot! See the full report.

Is it the right time to Re-Fi?

Deb and Joe Corcoran, Keller Williams Real Estate — Thu, 15 Jul 2010 11:45:00 -0700

My top-notch loan officer Mona Campos tells me that if the interest rate on your mortgage is above 5.5% you should be talking to somebody about refinancing your loan. The three biggest reasons to refi are to lower your monthly payment, to lower or lock-in your rate and to shorten your loan term. This last one is a real biggie for a lot of people I talk to. You could keep your monthly payment the same but get a lower rate on a shorter term refi and save money and years on your mortgage! Mona also says that if you're worried about the valuation on your home, don't be! There are programs that will refi for up to 105% of the value of your home. It's definitely worth checking out! Mona Campos can be reached at 610-867-9220.

What's Worse: The Hail Damage or the Contractors?

Deb and Joe Corcoran, Keller Williams Real Estate — Wed, 30 Jun 2010 11:01:52 -0700

I've heard from a lot of clients and friends lately asking about different roofing companies and their reputations. It seems hail storms drive out-of-the-area contractors into an area before the hail has even melted! Many of these companies claim to get you a new roof for free without even paying your insurance deductible if you just put their sign in your yard. Now we know why Lower and Upper Macungie Townships have so many of the these contractor signs! My response to those seeking advice on these companies is simple and basic. Check out their references from other area homeowners, get their state license number (every contractor in the state is now required to have one!), and check other sources like the Better Business Bureau, Angie's List or do a basic Google search. Remember, if it seems too good to be true, it probably is!

Here's a link to an article on the topic from Angie's List.

More Financing Hurdles for Borrowers!

Deb and Joe Corcoran, Keller Williams Real Estate — Wed, 16 Jun 2010 12:46:08 -0700

It hasn't gotten very much attention, but recent changes from Fannie Mae will make it more difficult for home buyers to close on loans. The new Loan Quality Initiative will require lenders to pull a second credit report right before closing to ensure that borrowers haven't taken on an unmanageable additional payment before closing. That means if you're thinking about buying new furniture to put in you beautiful new home, you could put yourself in a position to not be able to buy that home! The new rules stipulate that if your credit score changes by more than two points the loan has to go back to the underwriting department at the lender. This doesn't mean you absolutely won't get the loan, but it could delay closing or result in a higher APR or additional closing costs.

Deadline for Tax-Credit Closing to be Extended?

Deb and Joe Corcoran, Keller Williams Real Estate — Mon, 14 Jun 2010 15:16:39 -0700

The Senate is expected to take up a bill this week that would extend the deadline for tax-credit closings by up to three months. The bill would not allow new buyers into the program, but would give an extension of the closing deadline to those already under an agreement of sale. The bill seems to have support from both sides and is sponsored by Majority Leader Harry Reid and co-sponsored by Republican Johnny Isakson and Democrat Chris Dodd. The National Association of Realtors says that up to 180,000 buyers may be affected by the approaching deadline.

Interest Rates are still Amazingly Low!

Deb and Joe Corcoran, Keller Williams Real Estate — Mon, 07 Jun 2010 10:50:28 -0700

The Wall Street Journal is reporting that 15-year interest rates have hit a historic low of 4.2% and 30-year rates are also still under 5%! The 30-year rate is now at 4.79%. The government tax-credit incentive may be over, but these interest rates are incentive enough for anyone looking to buy a home this summer. If you'd like to find out more or get started with finding your new home just give us a call!

The Home Inspection Process (Buyers edition)

Deb and Joe Corcoran, Keller Williams Real Estate — Wed, 26 May 2010 12:34:29 -0700

I get a lot of questions from home buyers and sellers about the home inspection process. Today we'll look at it from the buyer's point of view. We'll look at the seller's side later this week.

First of all, is it necessary to have a home inspection? Necessary, no; recommended, yes. A good home inspector will find out if the home you've made an offer on is as sound as you think (and hope!) it is. The purpose of the home inspection is to find the issues in a home that a trained inspector can see and that the buyer can't. For example if on your visits to the home it's plain to see that the tile is cracked in the shower you should take that into account when determining your offer price, not use the fact to beat up the seller later for a repair credit. You knew the tile was broken when you saw it, you didn't need the home inspector to tell you. On the other hand, if the tile looks fine to the casual observer but the home inspector finds evidence that the shower is leaking into the wall, then the buyer has grounds to ask for a seller repair or credit. The home inspection process is good protection for home buyers, but the purpose shouldn't be to nickel and dime the seller's over issues that were obvious before an offer was made.

Buyers should always be present for the home inspection and plan to be there a little while. A good home inspector will need 2-4 hours to inspect the average home. He'll also educate you about your new home along the way. I work with a great home inspector and my clients love the knowledge they pick up along the way. There are a lot of things discussed that never show up in the inspection report!

Real Estate Survey

Deb and Joe Corcoran, Keller Williams Real Estate — Fri, 23 May 2008 14:55:25 -0700

I know I promised some thoughts on the recent Lehigh Valley Association of Realtors report in my next post, but I've come across something else that I'm really excited about.

Every year, RISMedia and REAL Trends release two of the real estate's most comprehensive surveys: the RISMedia Power Broker Report and the REAL Trends 500. Both surveys rank the largest residential real estate brokerages in the U.S. based on both transaction sides and sales-dollar volume, and these reports are frequently used as referral tools and are referenced by thousands. This year, Keller Williams stormed onto the lists with a very strong showing.

KW offices dominated the Power Broker Report - with more offices listed in their top 700 list than any other franchise brand. The survey also named Keller Williams Realty as the industry leader in terms of number of agent teams. And, 102 KW offices were listed in the Companies to Watch section - making up 55% of the total list! Our offices here in the Lehigh Valley were part of the Companies to Watch section a year ago. This year our 7 office group has cracked the TOP 100 real estate companies in the US!

As for the Real Trends 500, which lists the top 500 brokerages in the nation, Keller Williams Realty had the second highest amount of offices listed both transaction sides and sales volume, among the top franchise brands.

Even further proof that it's always a great day at Keller Williams!

Is This the Bottom?

Deb and Joe Corcoran, Keller Williams Real Estate — Thu, 08 May 2008 17:42:25 -0700

The latest facts and figures on Lehigh Valley home sales are in from the Lehigh Valley Association of Realtors, and the numbers are better than they've been in quite a while. While I always caution people against putting too much faith in the banner headlines on CNN, USA Today, or the Morning Call (I'll explain why in a minute), many of the national columnists are starting to say that we've reached the bottom of the cycle in real estate and we'll be in a stable state before a gradual rise in the key indicators. The reason I caution against such pronouncements is that real estate is and always will be a local business. You can no more talk about the national real estate market than you can talk about the national weather forecast. It can be hot in Allentown and cold in Fargo on the same day. The same is true in real estate; try telling homeowners in parts of Texas about the booming real estate market in 2005. They'll know you weren't in Austin at the time because 2005 sure wasn't the best time to sell a house in the Texas capital.

That said, let's take a look at the April numbers in our local market. The number of homes sold was 496 which was 52 more than March, an increase of almost 12%. The average sale price was also up 10% from March (208,000 to $229,000), and the time it took the average home to sell fell from 73 days to 67. All good indicators, right? They are an improvement, but maybe not as much as you might think. In almost every year the numbers improve as the weather gets warmer, usually peaking in May and June. To find the real story you have to dig a little deeper into the numbers. I'll run my analysis and provide some comments in my next post.

Is It Really That Hard to Get a Mortgage?

Deb and Joe Corcoran, Keller Williams Real Estate — Mon, 05 May 2008 09:02:17 -0700

You've watched the news and read about it in the papers. You know, the "credit crisis" and how buyers need 20 percent down in order to buy a home? And even if you found a buyer with 20 percent down, lenders aren't making loans anyway. So, why bother, right? Wrong!

We're right smack in the middle of what just might be the biggest disservice ever perpetrated on potential home buyers. It seems the press just can't get enough of all the gloom and doom in the housing industry. The fact is that mortgage money is as available today as it was a year ago and loans are being made this very moment with little or no money down. And, no, platinum credit isn't required. You just need to know where to look. Who are these lenders? They're right down the street.

Federal Housing Administration (FHA) loans are exploding onto the mortgage scene; recent estimates are that one out of five mortgages are FHA loans. FHA loans never went away, their reemergence is a result of the collapse of the sub-prime market. FHA doesn't technically have a minimum credit score, although, in practice, lenders won't approve an FHA loan with a credit score below 500. But that's a far cry from the notion that an 800 score is the only thing lenders care about.

The best part? FHA only requires 3 percent down. 3 percent. And that 3 percent can come in the form of a gift or grant. FHA borrowers only need to have $500 in a transaction. All the while, FHA mortgage rates are as good or better than their conventional counterparts.

Low or no down payment, extremely competitive rates and easier qualifying. No wonder FHA is moving up the charts!

Please contact me if you would like more information about FHA loans or help getting into your first home.

The Success Principles

Deb and Joe Corcoran, Keller Williams Real Estate — Thu, 31 May 2007 10:14:35 -0700

I had intended to share some coaching ideas the next time I wrote, but I found something so incredibly powerful that I wanted to share it right away. I was browsing through the bookstore last week when I noticed Jack Canfield (Chicken Soup for the Soul) had a new paperback in release called "The Success Principles" I've never read "Chicken Soup for the Soul", somehow the title never really grabbed me. It sounded a little too 'touchy-feely' for me. But I became interested in Mr. Canfield after seeing him in the "The Secret" DVD. Okay, I guess I'll have to admit that now I'm getting a little more in tune with my 'touchy-feely' side! I was intrigued by the title of this book and decided to see where this whole thing was headed. You know the old proverb that says, "When the student is ready, the teacher will appear"? I guess I must be ready!

Canfield's writing style and ability to relate the material has me looking forward to every opportunity to see down with this incredible book. This is powerful stuff, and if you're not ready for it you may blow it off as I did with "Chicken Soup". The very first chapter of the book is entitled "Take 100% Responsibility for Your Life". I wasn't quite sure at first if I was ready for that much responsibility! A section of that first chapter states, "You either create or allow everything that happens to you." This is all in the first few pages! Canfield mixes sections like this with quotes and philosophies from many of the speakers and great thinkers he's come across to present a great case for thinking big, having a plan, and taking action. Pick up this book today and get started on the plan that will take you to your wildest dreams!

"Things may come to those who wait, but only the things left by those who hustle." - Abraham Lincoln

"The Secret" and remembering names

Deb and Joe Corcoran, Keller Williams Real Estate — Tue, 08 May 2007 14:17:19 -0700

I have to admit that I avoid trendy things like the plague. For example, I've never seen "ET". My feeling is that something that gets that much hype could never live up to it. Right or wrong, that's my philosophy and I usually stick to it. I made an exception this week when one of the agents in our office headed up a discussion on "The Secret" as part of our monthly book club. We talked about the book and then watched the DVD and I realized that the ideas discussed matched a lot of the same things I had been learning in other venues. In my last post I talked about some of the things I had learned from hearing Terry Watson; he also discussed "The Secret" when I saw him. He relayed the lesson of 'target fixation', whatever you focus on is where you'll end up. Motorcyclists and skiers know this lesson all too well. "I don't wanna hit that tree, I don't want to hit that tree...I can't believe I hit that tree!" We were focused on it the whole time. We were so consumed with avoiding that tree that on the entire mountain it was the only thing we saw. We aimed right for it. We really shouldn't be surprised!

So how does this relate to "The Secret" and specifically your business? Sometimes we direct so much energy to not failing that we become obsessed with it. We're not planning for success; it's not even on our radar. We're too concerned with not failing. Terry asked us to think about the two words that when used together are the most powerful in the English language: I am. Whatever follows "I am" is true or will soon become true. I used to always say "I am terrible at remembering names". Of course this gave my mind complete permission to be bad at remembering names. I was off the hook, I was bad at names. Now however, 'I am really great at remembering names'. Am I there yet? No, but I am getting to be really good at remembering names. Hey, Rome wasn't built in a day! The story behing "The Secret" and so much of the great things I've been learning, is that we really need to unleash the power of our minds. Think positively, and good things will happen. Wake up every morning saying "I am..." followed by several positive statements about what you want to be and what you want to achieve. Never allow negative thoughts to follow 'I am'. It's too powerful a statement to misuse it!

You've got to act on the information

Deb and Joe Corcoran, Keller Williams Real Estate — Thu, 03 May 2007 09:38:02 -0700

I had the great opportunity to hear Terry Watson speak at the PAR District One conference last week and I was blown away. I'd never heard of Terry before, but he's got quite a resume and he's a very gifted speaker; the type of person who takes control of a room and really lights it up. Terry talked a lot about the importance of learning, which we all know and appreciate, but said something so profound the entire room erupted in nervous laughter. He told the story of conducting a class at a competing firm in his native Chicago and during the class he was asked why he was willing to share his knowledge with the competition. Terry replied, "Because they're paying me a lot of money and you're not going to do what I tell you anyway!"

How many times have you gone to a class or seminar, gathered some incredible information you thought would completely change your business, and then put the book on the bookshelf or your desk and never opened it again? I've done this experiment many times, hoping osmosis or something would make the information seep through the desk, up into my keyboard, and into my fingers and brain by some kind of magic and exclusive phenomenon! It doesn't, which is why I've pulled out my notes from Terry's talk today so that I can put them into action. Get in the habit of putting some time aside to work 'on' your business. Yes, the day after you come back from a class you've got 75 e-mails and 30 phone messages, so take the time to get caught up. But put some time in your schedule later in the day or the next morning to review your notes and the materials you've been given and figure out the two or three things that you learned that will make it worth the time (and money!)you spent to attend.

Remember, Education without coaching and implementation is entertainment!

A new place to learn

Deb and Joe Corcoran, Keller Williams Real Estate — Wed, 02 May 2007 14:21:23 -0700

A new venture is born! I 've thought about blogging in the past but never really knew what I would write about. What did I have to share? Then I realized that I was fortunate enough to have a lot to share with other real estate agents that we're trying to build a business that would provide for them and their families. The business that would allow them the freedom to meet their dreams; the one that would put their kids through school, and pay for great family vacations. My goal is to help others to achieve their goals. I always welcome your feedback and comments.

Joe