Kevin Savoie's Blog

Mortgage Rates Are Creeping Back Up

Kevin Savoie (Keller Williams) — Mon, 15 Jun 2009 19:23:10 -0700

Mortgage rates hit 7 month high with an average of 5.59% so lock in your rate now if you're considering buying or refinancing.

New Interest Rates From NOLA Lending Group

Kevin Savoie (Keller Williams) — Tue, 25 Nov 2008 14:51:50 -0800

NOLA Lending Group just announced new mortgage interest rates. Conventional 30 year fixed is 5.75% with 95% financing. FHA and VA 30 fixed are 6.50% with 97% financing for FHA and 100% financing for VA. Call me, 985-788-5665, or message me if you need more info.

Buying a “For Sale by Owner”

Kevin Savoie (Keller Williams) — Mon, 24 Nov 2008 11:57:33 -0800

I had an interesting question over the weekend. A man made an offer on a vacant piece of property that is for sale by owner. The offer was accepted and is now a valid contract. The buyer is now aware that the property is in a flood zone and requires additional insurance. His question is "Can I get out of this contract and get my deposit back?" Quite simply, yes there are ways of voiding a contract if either party does not meet certain conditions. A big issue arises though since the contract is not a standard Louisiana real estate contract and neither party is being represented by an agent. I haven't seen the contract yet but here are a few of my questions. Was an inspection period requested and for how long? Was there any disclosure made of the property? Where conditions in the contract for the return of the deposit in the case of default by either party? Using a licensed agent is critical to protect your best interest when buying real estate. Do you have question about buying or selling property? Drop me a note or call me at 985-788-5665.

25% Off Sale

Kevin Savoie (Keller Williams) — Wed, 08 Oct 2008 12:09:35 -0700

On November 28, the day after Thanksgiving, retailers will open their doors to waiting crowds of shoppers looking for the ultimate bargains. Limited quantities of high demand, on sale electronics and toys will fly off the shelves. Retailers are also advertising rock bottom prices on cars, trucks, jewelry, and appliances. Large supplies and reduced demand are driving prices to unprecedented lows. The same is happening in real estate. There is a large inventory of homes and property for sale in today's market. Tighter lending requirements have reduced the number of qualified buyers. The result is great prices on one of the best, if not the best, investments available today-Real Estate. This is truly a buyer's market. Will values continue to go down? That is a possibility. But, that should only concern you if you're planning on selling the property in the next couple of years. In other words, if you think you'll be transferred or if you plan to flip the property, then I would wait to buy. If you have any questions or to view available properties, go to www.KevinSavoie.com and www.StTammanyRepos.com.

St Tammany Parish Property Tax Assessments Are Out

Kevin Savoie (Keller Williams) — Sat, 04 Oct 2008 18:24:23 -0700

All St Tammany Parish property owners should have received a letter from the Parish Tax Assessor's office outlining their proposed 2008 property tax assessment. Owners are allowed to appeal the assessment during the public review period that ends October 16^thif they disagree with the assessed value. The assessor's website, www.stassessor.org, has assessment review forms which are used to submit appeals. Please contact me if you have questions about how your taxes are computed or if you need a current market value of your property.

Real Estate and Hurricanes

Kevin Savoie (Keller Williams) — Fri, 29 Aug 2008 13:48:07 -0700

I had a good question last night. A lady that I'm working with asked if she had to sign papers to buy her new home with the possibility of Hurricane Gustav washing it away. In real estate "all bets are off" once a named storm enters the Gulf of Mexico. Insurance companies will not issue policies and title companies will not close contracts once a storm enters the gulf. Contracts are extended with the hopes that the property is unchanged.

Bond Money Issue

Kevin Savoie (Keller Williams) — Tue, 26 Aug 2008 16:14:00 -0700

A new issue of Louisiana State bond money is available for homebuyers. The rate is 6.625% and is fixed for 30 years. With this program, borrows get 4% of their loan amount in GRANT money to help with down payment/closing costs. That means you get 4% of the loan amount for free. Income limits are $71,760 for a 2 person household and $83,720 for a 3 or more person household. This program can be used in conjunction with FHA, VA, Rural Development, and conventional loans. If you have remotely considered buying a house then please don't hesitate to call because as always there is a limited amount of money designated for this issue. For more information please message or call me, 985-788-5665, or call your loan officer for more information on qualifying.

Going Once, Going Twice

Kevin Savoie (Keller Williams) — Thu, 21 Aug 2008 18:52:21 -0700

Sold! Like it or not you just bought it. Auctions can be a good source for finding bargain properties but they do have their drawbacks. First, let's cover some basics. The St Tammany Parish Sheriff's office holds auctions on Wednesdays in the courthouse. The seized properties being auctioned are published in the Farmer newspaper. Buyers must pay 10% of the closing price at the auction and the remainder within 30 days. Private auctions are conducted much the same way except that the expenses are sometimes higher and the owner usually has the right of refusal. Now for the down side. Auctioned properties are sold as is, with no guaranties and no disclosures. So why does that matter? Properties sold through a broker, such as Keller Williams, must have state mandated disclosures. This applies to homes, vacant land, duplexes, etc. These disclosures are completed by the seller and must include all know defects. Let me give you an example. I recently attended an auction at which a property that I had shown a client was up for auction. The property looked nice from the outside but had some problems once you looked a little closer. The buyer got a good buy. But was he ready for the repairs that had to be made? Our estimate was that the property required about $20,000 in repairs, or about 11% of it's value.

Do you have questions regarding real estate? Drop us a note or give us a call.

The Good, The Bad, and The Ugly

Kevin Savoie (Keller Williams) — Sun, 17 Aug 2008 18:58:23 -0700

The good of course is Team Savoie, your local real estate professionals. The bad is the current state of the economy. I say current because it will get better. I know there are some that would have you believe that the economy is and will forever be terrible. In respect to real estate, if you're a buyer and planning to own the property for more than a couple of years then buy everything you can! The ugly can be property taxes. I say can because yours may not be as bad as you think. First, if your property is still damaged from Hurricane Katrina, then write to the parish tax assessor for an exemption. Second, if your property value has dropped or if you've bought a property that has decreased in value, then again write to the tax assessor. Go to www.stassessor.org for information on how taxes are assessed, important dates such as our next public meeting, and property value search option. You can check your own property taxes under the property value page. Remember that property taxes are public information and you have the right to dispute yours if you feel it's necessary. Owning real estate is at the heart of the American dream. We want all your real estate experiences to be good.

To All First Time Home Buyers

Kevin Savoie (Keller Williams) — Wed, 06 Aug 2008 09:45:16 -0700

The new federal housing bill includes a First Time Home Buyer Tax Credit for homes purchased between April 9, 2008 and July 1, 2009. The bill provides a maximum $7,500 tax credit for first time home buyers. For more information go to the NAHB's new website www.federalhousingtaxcredit.com.

How do you buy a house? Let us count the ways.

Kevin Savoie (Keller Williams) — Mon, 04 Aug 2008 06:56:29 -0700

1. VA

2. Fannie Mae Repo

3. FSBO

4. Bond for Deed

5. State Bond Money

6. USDA

7. FHA

8. Relo

9. FHA Repo

10. Lease Purchase

11. No Document Loan

12. Parish Bond Money

13. Cash

14. VA Repo

15. Renovation Loan

16. Construction Loan

17. Bank Repo

18. Bridge Loan

19. 3/2/1 Buy Down

20. USDA Repo

21. 1031 Exchange

22. Adjustable Rate Mortgage

There are more but I'm sure you can see that there are many ways to make your dreams a reality. For more information on financing for homes please contact a lender(s) or drop me a note and I'll be glad to help.

Search for home at www.KevinSavoie.com and www.StTammanyRepos.com.

New Lending Requirements

Kevin Savoie (Keller Williams) — Fri, 25 Jul 2008 12:09:12 -0700

New legislation designed to help mortgage lenders Fannie Mae and Freddie Mac will take effect October 2, 2008. Although passed to support the mortgage industry, individual borrowers will find it harder to get loan approval. Lenders will begin requiring higher credit scores and more money down. In addition, interest rates are expected to continue an upward trend. If you have been considering buying a home or property then it's time to jump in the market before it tightens up.

Get a Second Opinion

Kevin Savoie (Keller Williams) — Fri, 11 Jul 2008 19:04:14 -0700

Okay maybe not a second opinion, but it pays to shop around when it comes to your home. Whether it's homeowners insurance, a mortgage, or even a real estate agent, it pays to shop around. When considering buying a home or property, check more than one lender. Banks and mortgage companies have different products and just because one doesn't qualify you, another may. Or one lender may have a product that is better suited for you than another. This also applies to insurance. Even if you have insurance now, take the time to check around. A few phone calls can save you hundreds of dollars. If you find a better rate, simply contact your lender to have the new policy attached to your mortgage. Give us a call or drop us a note if you would like a list of local lenders and insurers. Oh, and when the time comes we can also recommend a good real estate agent.

Real Estate Update for 26 June 2008

Kevin Savoie (Keller Williams) — Thu, 26 Jun 2008 14:08:23 -0700

Existing home sales increased 2 percent in May. The national median price for exiting homes is down 6.3 percent to $208,000. This decrease is sales price has undoubtedly brought more buyers into the market. On the other hand, new home sales declined by 2.5 percent with median sales price down 5.7 percent from a year ago to $231,000.

Please remember that these are national averages. Contact me if you would like information on your neighborhood or an area you're considering buying in.

Louisiana Foreclosure Rate Drops 15%

Kevin Savoie (Keller Williams) — Mon, 17 Mar 2008 20:48:44 -0700

This is a reminder that real estate is all about location. The national foreclosure rate is up 60% from this time last year. Louisiana's foreclosure rate is down 15.25% for the same period. Our state is one of only five in the nation that can claim a drop in foreclosure its rates. So remember, national averages and rates are not a good indicator for the local market. Please let me know if you would like an analysis on your home or property.

Real Estate Today: Isn’t What It Was Last Year

Kevin Savoie (Keller Williams) — Sat, 01 Sep 2007 08:52:09 -0700

CNN reported yesterday that the average home sale price in the New Orleans Metro area is down 6.7% from this time last year with the average price being $166,000. Baton Rouge has done better with an average sale price of $174,000, up 1.4%. The national average is down 1.5% for an average price of $223,800. St Tammany Parish has faired much better. Although the total number of sales is down about 34%, our average sales price has risen an average of 7% from this time last year. Homes are taking longer to sell but homeowners are making more concessions to help attract buyers. Completion for buyers is fierce since the number of homes in our market has risen significantly in addition to the fears brought on by troubled subprime mortgage industry.

Homeowners Insurance or Home Warranty

Kevin Savoie (Keller Williams) — Fri, 10 Aug 2007 09:55:02 -0700

To start, if you have a mortgage on your property the mortgage company will require you to carry homeowners insurance since the mortgage company has an interest in your property. Homeowners insurance policies cover most major perils such as fire, wind damage, etc. A home warranty on the other hand covers things such as deterioration and mechanical breakdowns of major appliances. Basic policies typically range from $300 to $450. Additional options may be included such as septic tank, spa, and swimming pool.

“For Sale By Owner” aka "Enter at Your Own Risk"

Kevin Savoie (Keller Williams) — Tue, 31 Jul 2007 21:40:14 -0700

Many sellers try "For Sale By Owner" for the following reasons:

Attempting to save on commission.

Selling for the challenge of it.

Not knowing a reliable agent.

Now here are some questions you might consider before selling your home yourself:

Are you comfortable with contracts and how to fill them out properly?

Are you aware of the many different types of financing available for buyers?

Are you aware of the documents required for closing and how they are filed?

Are you familiar with the required disclosures and the consequences of failing to disclose defects?

Can you afford not to have you house marketed in a such a way that thousands of buyers and buyer's agents will see it and have access to the important facts on it?

If your goal is to sell your house at the highest price, in the shortest amount of time, with the least inconvenience and to net the most money, please let us to show you our marketing plan.

What is a short sale?

Kevin Savoie (Keller Williams) — Fri, 20 Jul 2007 22:37:09 -0700

A short sale is a sales transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan. For homeowners who are upside down and can no longer make their mortgage payment (because of either a job loss, divorce, or an option ARM that's resetting higher), up to now the only option was to let the bank foreclose. That stays on your credit record for at least 10 years. Some experts are now advocating a "short sale." If your bank agrees to a short sale, you would list your home with a realtor who would then find a buyer. Your house would be sold for a loss with the bank's blessing. For buyers it is a great opportunity to get into a home for below market value. As with most other value purchases short sales can require patience since the bank holding the mortgage must also approve the offer to purchase instead of just the homeowner. Also, homes being sold in a short sale are typically sold “as is.” In other words, neither the bank nor the owner will do any curative work to the home. Expect to see more “pre-foreclosure” sales in the future. More and more lenders are approving short sales as an alternative to foreclosure. It’s a good alternative for banks since it’s better than if the house goes into foreclosure, sits empty, and its value decline until it's auctioned.

Slidell Residential Sales Stats as of 6/30/2007

Kevin Savoie (Keller Williams) — Sun, 15 Jul 2007 12:08:09 -0700

AREA	SLIDELL	114 - 120
DATES	1/1/06-6/30/06	1/1/07-6/30/07
AVERAGE SELL	$173,756	$194,917
CHANGE IN SALE PRICE	12%
NUMBER OF SELLS	1197	694
CHANGE IN NUMBER	-42%
DOM	34	77
CHANGE IN DOM	126.47%
SP/LP RATIO	95%	97%
CHANGE IN SP/LP	2%
NUMBER OF HOMES CURRENTLY FOR SALE	1023

In a nutshell, average sale prices are up 12%, total sales are down 42%, and houses are staying on the market much longer. These statistics are a comparison of the first six months of 2007 compared to the first six months of 2006.

Fannie Mae Offering New Loan Program

Kevin Savoie (Keller Williams) — Fri, 08 Jun 2007 20:18:59 -0700

The program, Community Investment Mezzanine Fund or CI Mezz-Mod Rehab for short, is designed for multifamily properties undergoing rehabilitation. The program offers many benefits to investors such as higher leverage, flexible funding, and supplemental financing. The minimum loan amount is $500,000 so I won't be using it this week. You can get more information at Fannie Mae's website: www.efanniemae.com/mf/finsolutions/products/pdf/cimezzmodrehab.pdf.

Neighborhood Profile – Belair

Kevin Savoie (Keller Williams) — Fri, 08 Jun 2007 18:28:30 -0700

AREA	Belair - 750	118
DATES	1/1/06-5/31/06	1/1/07-5/31/07
AVERAGE SELL PRICE	$211,116	$197,672
MEDIAN SELL PRICE	$215,000	$189,950
CHANGE IN SALE PRICE	-6.37%
NUMBER OF SELLS	39	24
CHANGE IN NUMBER	-38.46%
DAYS ON THE MARKET	17	73
CHANGE IN DOM	329.41%
SALE PRICE/LIST PRICE RATIO	98.28	98.37
CHANGE IN SP/LP	0.09%
NUMBER OF HOMES CURRENTLY FOR SALE	46

Neighborhood Profile – Bon Village

Kevin Savoie (Keller Williams) — Sun, 03 Jun 2007 19:31:12 -0700

AREA	BonVillage - 44	116
DATES	1/1/06-5/31/06	1/1/07-5/31/07
AVERAGE SELL	$195,916	$177,300
MEDIAN SELL	$198,200	$170,000
CHANGE IN SALE PRICE	-9.50%
NUMBER OF SELLS	12	5
CHANGE IN NUMBER	-58.33%
DOM	19	54
CHANGE IN DOM	184.21%
SP/LP RATIO	95.99	98.25
CHANGE IN SP/LP	2.35%
NUMBER OF HOMES CURRENTLY FOR SALE	10

Slidell Residential Sales Stats as of 5/31/2007

Kevin Savoie (Keller Williams) — Sun, 03 Jun 2007 15:39:50 -0700

AREA	SLIDELL
DATES	1/1/06-5/31/06	1/1/07-5/31/07
AVERAGE SELL	$170,559	$195,331
MEDIAN SELL	$158,250	$173,000
CHANGE IN SALE PRICE	14.52%
NUMBER OF SELLS	948	558
CHANGE IN NUMBER	-41.14%
DOM	32	77
CHANGE IN DOM	140.63%
SP/LP RATIO	95.67	95.46
CHANGE IN SP/LP	-0.22%
NUMBER OF HOMES CURRENTLY FOR SALE	985

Why be an agent with Keller Williams Realty Slidell?

Kevin Savoie (Keller Williams) — Sun, 03 Jun 2007 15:27:26 -0700

Because Keller Williams Realty has done what nobody else has!

1. The highest commission structure with little or no risk to the sales associate! You start with a 70/30 commission split. Once you reach your annual cap your commission is yours...no split! Note: We started making 100% commission within 8 months.

2. Every sales associate, regardless of production, has the same annual expense cap amount. This makes a level playing field!

3. Profit sharing offers Keller Williams agents an additional income stream even after they leave their real estate careers.