Michael Reynolds's Blog

Just a few Stats to compare.

Michael Reynolds (Holland Realty L.L.C.) — Sun, 11 Nov 2007 08:22:59 -0800

Just thought I would do a little comparison on My local market (Gadsden, AL) over the last 3 months, compared to the same 3 months last year.

8-1-06 - 10-31-06 : Total Sales Avg List $ Avg Sold $ Avg DOM

258 $121,628 $116,262 114

8-1-07 - 10-31-07 : Total Sales Avg List $ Avg Sold $ Avg DOM

232 $136,532 $130,410 133

Percent Change from 2006:

Total Sales: 10.08% (Down)

Avg List $: 10.92% (Up)

Avg Sold $: 10.85% (Up)

Avg DOM: 14.29% (Up)

Stats are for Etowah Co. including Gadsden, AL.

My market is not real big, but there is not a major change from last year. Any thoughts?

Service to the consumer

Michael Reynolds (Holland Realty L.L.C.) — Fri, 04 Aug 2006 17:39:52 -0700

I was reading Jonathan Greene's blog post " A Little Consideration!" and it inspired a few thoughts. In todays world of computerized checkout lines at retail stores, drive throughs, and self serve everything, many people in all forms of business have forgot exactly what service can mean to a consumer. I remember my first job out of high school bagging grocieries at a local store, and how surprised customers were when I would carry there carts out for them and load there cars for them! Wow, who would have thought about service? LOL. Many weeks I made as much money in tips from the customer as I did on my paychecks. It doesn't take very much to go above and beyond, the little thing count.

New to the biz

Michael Reynolds (Holland Realty L.L.C.) — Thu, 03 Aug 2006 09:53:32 -0700

As of late, I have found that many of my blog replies consist of a comment and then me asking for advice on the subject, so, it has inspired me to ask the question: How many of us are new to the real estate business?

Some are concerned about letting on that they are new b/c they do not want the word "new" associated with there name in there market... as for me, I don't think "new" means "dumb", I'm not afraid to ask for advice or tips, and I definately want to be told that I'm wrong if I am wrong. I figure, if I associate my name with "new", in a very short time, I will be able to replace it with "experienced" much quicker than those who are struggling to gain all of the information on there own.

Having said that, all of you experienced real estate pros must remember what it was like to be new, if you've got any tips, I know that I and other new (admitting or not) professionals would be grateful.

(see, you can tell I'm new... any of you busy professionals probably wouldn't be spending 8:30 to 10:00 in the morning on ActiveRain writing blogs. LOL:)

Things Buyers hate.

Michael Reynolds (Holland Realty L.L.C.) — Fri, 28 Jul 2006 11:31:45 -0700

I was just wandering about everyones opinion on what the biggest turn off's are to buyers when they are being shown a home?

I think odors (pets, cigarette smoke, and mildew, ect..), Dogs in the yard that run up and scare people or bark, no gutters, dimly lit rooms, and the owners hanging around for the showing (and drilling the sellers with questions) are some of the top picks.

Do buyers have different "no-no's" in different parts of the country?

The Missing Links

Michael Reynolds (Holland Realty L.L.C.) — Sun, 23 Jul 2006 17:30:58 -0700

What about the buyers with missing links? I'm talking about buyers that do not have any money for down pymts., closing costs, or people with not so great credit. I just got an accepted contract the other day for one of my clients whom not only had little money ($1,000) and also didn't have very good credit. They explained to me that they had tried to go through two other Agents but they wouldn't even give them the time of day. It took me about 2 1/2 weeks to get everything put togetherm but with the help of a good loan officer, and some strong negotiating I made the deal. Now, I am a new agent (less than 6 months), but still, I was able to help these people, whom couldn't even get a smile out of two other agents, get into the home they have been looking for a year to find.

Why would any agent turn there back on clients like this? Is it just to hard to make the deal work for nice people like this? I admit, a few hoops had to be jumped through, but, it was worth my time, I'll be getting a nice pay day, and they are very happy that what they thought couldn't happen, is going to happen! I believe even if you can't make a deal happen for a client it could still be money in your pocket, if you are helpful and can provide information that will help them get to where they want to be... they will send others to you, not only that, but when they get there situation fixed, they will, without any doubt, come back to you to help them get there home.

Lenders... I need some info.

Michael Reynolds (Holland Realty L.L.C.) — Fri, 21 Jul 2006 10:05:57 -0700

I just need a little information. Does anyone know of a mortgage company that can originate loans, like, subprimes or any other 100% or near 100% loans for less than $50,000. There is a huge market in my area for homes under $50,000, but there are no lenders that can really help me out in securing fianancing for my first time buyers, and people with "not so perfect" credit. I know a few that can help me out for anything over $50,000. Does such a thing even exsist?

A little info on Bad Credit. What can you do?

Michael Reynolds (Holland Realty L.L.C.) — Mon, 17 Jul 2006 11:31:24 -0700

If you have bad credit, it generally cannot be avoided on your credit report. However, you can help to correct credit errors or misunderstandings by writing a letter to the creditor or by writing letters to be included within your credit reports. Sometimes, a letter explaining a sudden loss of a job, a lay off, or a long-term illness will change the view of the lender in reviewing your credit report. Also, you should provide any documentation proving your reason for failing to pay on your debts. By law, credit reporting agencies are required to include letters of explanation along with any documentation proving such explanation with the credit report. As a general rule, a bad credit report usually stays upon your record for a period of 7 years.

Top 10 ways to build a great "blog".

Michael Reynolds (Holland Realty L.L.C.) — Sat, 15 Jul 2006 23:00:32 -0700

10 tips for creating a great weblog

If content is king then these 10 Techniques for Finding Blog Readers is a great list. One of the problems that people have in starting a weblog is finding content. As a Realtor this should be easy. Set up tutorials and guides as to what the process is, how a Realtor can find people great deals. What is takes to buy a home, tax implications of buying a home.

I know that some Realtors are concerned that a site like Zillow can be a problem as it may or may not have accurate property values for peoples homes but the price of a home is not what a Realtor offers it is all of the things above that create value in the eyes of a buyer or seller.

Getting Cash To Buy A Home

Michael Reynolds (Holland Realty L.L.C.) — Sat, 15 Jul 2006 22:46:05 -0700

Getting the Cash to Buy a Home

For most people, buying a house involves a double financial whammy.
First you have to assemble a pile of cash for the down payment and closing costs. Then you must convince a bank to lend you an even more staggering sum -- generally 80 percent or more of the purchase price. So your first step, even before you start the actual hunt for a property, should be to get your financial house in order.
Start with your credit
Credit reports are kept by the three major credit agencies, Experian, Equifax and TransUnion. Among other things, they show whether you are habitually late with payments and whether you have run into serious credit problems in the past, such as a bankruptcy within the last seven years.
Fair Isaac, a firm that develops credit scoring systems, calculates a credit score based on the information in your report. You have three different credit scores, one for each of your credit reports.
A low credit score may hurt your chances for getting the best interest rate, or getting financing at all. So get a copy of your reports and know your credit scores. Try Fair Isaac's MyFico.com, which charges about $39 for all three reports and scores, as well as an explanation of your score and tips for improving it.
Errors are not uncommon. If you find any, you must contact the agencies directly to correct them, which can take two or three months to resolve. If the report is accurate but shows past problems, be prepared to explain them to a loan officer.

Know what you can afford

Next, you need to determine how much house you can afford. You can start with one of the Web's many calculators, like the one on www.virtualrealestatemall.com . For a more accurate figure, ask to be pre-approved by a lender, who will look at your income, debt and credit to determine the kind of loan that's in your league, your Realtor can also prepare a report to estimate your buying power, if you are short on cash some loans are available that require very little down payment, but, you will be required to pay PM (Private Mortgage Insurance) which will be added to your monthly payments.
The rule of thumb here is to aim for a home that costs about two-and-a-half times your gross annual salary. Use this only as a general guide, though. Many factors can change that equation. If you have significant credit card debt or other financial obligations like alimony or even an expensive hobby, then you may need to set your sights lower.
The size of your down payment will also determine how much you can afford.

Coming up with the money

If you haven't already, you'll need to come up with cash for your down payment and closing costs. Lenders like to see 20 percent of the home's price as a down payment. If you can put down more than that, the lender may be willing to approve a larger loan. If you have less, you'll need to find loans that can accommodate you.
Various private and public agencies -- including Fannie Mae, Freddie Mac, the Federal Housing Administration and the Department of Veteran Affairs -- provide low down payment mortgages through banks and mortgage companies. If you qualify, it's possible to pay as little as 3 percent up front for a loan. For more, check out their Web sites at Fanniemae.com or Freddiemac.com.

A warning: With a down payment under 20 percent, you will probably wind up having to pay for private mortgage insurance, a safety net protecting the bank in case you fail to make payments. PMI adds about 0.5 percent of the total loan amount to your mortgage payments for the year. So if you finance $100,000, your PMI will cost $500 annually.
Increasingly, though, lenders are giving qualified buyers the option of using "piggyback loans" to cover a portion of a home's down payment and avoid paying PMI. These second loans are usually in the form of a home equity loan or line of credit for 10 to 15 percent of the home's purchase price.
Once you've considered the down payment, make sure you've got enough to cover fees and closing costs. These may include the appraisal fee, loan fees, legal fees, inspection fees and the cost of a title search. They can easily add up to $5,000 to $7,000 -- and often run to 5 percent of the mortgage amount.

Out of cash?

If your available cash doesn't cover your needs, you have several options. First-time homebuyers can withdraw up to $10,000 without penalty from an Individual Retirement Account, if you have one, though you must pay taxes on the amount. You can also receive a cash gift of up to $12,000 a year (the limit for 2006) from each of your parents without

triggering a gift tax.

Gift taxes are paid by the donor, not the recipient. (In fact, if your and your spouse's parents are both well-heeled, they can give you a total of $96,000 in one year -- $12,000 from each of the four parents to each of you. This is a good type of family to have.)

Some mortgage companies also have programs to help buyers get cash to help with down payments, as well as closing costs.

Don't forget, you're a local Realtor or loan originator can help guide you through this process. Happy buying!

First Time Buyer Advice.

Michael Reynolds (Holland Realty L.L.C.) — Sat, 15 Jul 2006 22:41:42 -0700

10 Things to know before Buying a Home

1. Don't buy if you can't stay put.

If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner.

2. Start by shoring up your credit.

Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Aim for a home you can really afford.

The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you'll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.

4. Don't worry if you can't put down the usual 20 percent.

There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a down payment as small as 3 percent of the purchase price.

5. Buy in a district with good schools.

In most areas, this advice applies even if you don't have school-age children. Reason: When it comes time to sell, you'll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.

6. Get professional help.

Even though the Internet gives buyers unprecedented access to home listings, it's still a good idea to use an agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

7. Choose carefully between points and rate.

When picking a mortgage, you usually have the option of paying additional points -- a portion of the interest that you pay at closing -- in exchange for a lower interest rate. If you stay in the house for a long time -- say five to seven years or more -- it's usually a better deal to take the points. The lower interest rate will save you more in the long run.

8. Before house hunting, get pre-approved.

Getting pre-approved will you save yourself the grief of looking at houses you can't afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.

9. Do your homework before bidding.

Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5 percent less than the asking price, you should make a bid that's about eight to 10 percent lower than what the seller is asking.

10. Hire a home inspector.

Sure, your lender will require a home appraisal anyway. But that's just the bank's way of determining whether the house is worth the price you've agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.