Get Listed and Sold' Blog

Top 10 Reasons to Buy a Home Now!

Mark Houck, REALTOR® (Real Estate Professionals, Inc.) — Thu, 03 Jan 2008 14:10:35 -0600

Did You Know?

It's a Great Time for Buyers!
Top Reasons to Buy a Home Now!

It's no secret that the housing market finally, after a long while, belongs to the buyer. Home sales and prices sagged in 2006 and 2007. According to David Lereah, chief economist for the National Association of Realtors, buyers have a "window of opportunity" in 2008 to take advantage of lower mortgage interest rates and seller flexibility.

A cooling housing market gives buyers, especially first-time buyers, more opportunities to snatch up a good deal. Here are the Top Reasons to consider Buying a Home:

Selection, selection, selection. As of January 1, 2008 - there are about 12,601 resale homes on the market in Baltimore, Cecil and Harford counties (Maryland) alone - in these 3 counties alone the inventory equates to almost 25% of the active properties in the entire state of Maryland. Throughout Maryland there are 52,765 active! Regardless of the price range a buyer desires, there are plenty of houses from which to choose. Just a few years ago the resale inventory dropped below 2,500 units. A buyer was forced to make compromises if they were going to locate the home of their dreams. There is a great selection of attached homes, condos, and townhouses. You can find large lots, small lots, and a lot that will accommodate your boat or RV. There are lots of options in this market.
No Bidding Wars. In 2005 - 2006 there was a 'feeding frenzy' that existed. Buyers bid the properties up substantially from the original listing price. There were escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There is little to no competitive bidding in this buyer's market.
Make a reasonable offer. A few years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table. Today the sell price list vs. price ration is about 96%. A seller will not be insulted if you 'make them an offer they can't refuse'.
Patience is tolerated. In the hot seller's market that existed everything was rushed. Find a house before other buyers did. Hurry up and make the offer. Today a buyer can take their time. Look at several homes and think about your decision for a few hours.
Contingencies are welcomed. In this market a buyer is encouraged to obtain a home inspection, termite inspection, and appraisal. In 2005-2006 many buyers waived these contingencies in order gain an advantage with multiple offers.
There are plenty of specs. In the not too distant past buyer had to 'play games' if they wanted a new home. There were lotteries and waiting lists in order to obtain new construction. Some buyers slept in their cars in order to get to the head of the lines.
Repair requests are accepted. After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might insist the home was sold 'as is'. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.
Deals for everyone. It is estimated that one third of all sales in 2005-2006 were to investors. These non-owner occupied buyer caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.
Location, location, location. Today's buyers can find homes closer to work. In the past buyers flocked to PA and the outer parts of the state in order to find affordable homes. In this market, reasonably priced homes are within biking or walking distance to schools, rapid transit lines, and relatives.
Real Financing is available. The zero down, no doc, adjustable, and high interest sub-prime loans are gone. Fixed rates and low interest are back. FHA financing, first time homeowner bond programs, special loans for teachers, and police officers are back in business. It's a great time to buy real estate!

If you find the right house at the right price, Buy It!

If you're serious about buying a house, you have to decide whether you will actively shop and then negotiate a fair deal, or if you'll just passively browse houses, hoping to stumble on a steal.

* Reported by National Association of Realtors and Metropolitan Regional Information Systems

To Pre or not to Pre - That is the Question!!

Mark Houck, REALTOR® (Real Estate Professionals, Inc.) — Sat, 21 Apr 2007 09:26:20 -0500

Inspections & Appraisals?

One way REALTORS® can ensure that they and their clients know the true condition and value of the home they’re putting on the market is by getting a guaranteed pre-inspection by a professional inspection company and a pre-appraisal.

Everyone knows pricing and condition will play a Major Role in home sales. But not everyone agrees on what is smart or how to go about leveraging these elements.

So what does everyone think about getting homes pre-appraised or pre-inspected? Please share your experiences, ideas, opinions.

Below are my thoughts:

So why Pre-Inspection...

A guaranteed pre-inspection is an effective selling tool, reassuring buyers that what they see is what they get. It also eliminates the buyer-beware attitude and can speed up negotiations between buyer and seller.
With a home pre-inspection, sellers have the opportunity to address any defects an inspector might find and have them repaired before a possible buyer even sees the house. That gives the seller and sales associate peace of mind that the property they’re listing has no surprises awaiting them in the contract or in the appraisal.
It also eliminates last-minute price negotiating and the possibility that buyers might develop cold feet regarding a sale once their buyer inspection uncovers a needed repair, often bringing into question the whole purchase

In today's buyer's market, condition has become as important as the long-lauded “location, location, location.” Buyer's are aware that sellers are more flexible and willing to negotiate. Sellers STILLwant the most money out of their equity. Pre-Inspections are a way to attempt to satisfy both sides of the transaction.

Buyers will feel more secure about the property they are looking at and sellers will be able to alleviate those unexpected last minute, deal-killing problems by eliminating surprises before they happen.

So why Pre-Appraisal...

Everyone knows pricing will now play a Major role in home sales. But not everyone agrees on what is smart.

A pre-appraised home helps the sellers to be competitive while still securing more of the equity they have built.
It allows a potential buyer to see value compared to other properties on the market.
It almost guarantees value for the second appraisal that the buyers are inevitably going to get which almost eliminates the need to renegotiate a price reduction.

A pre-appraisal may not be the final listing price, but will give the seller and their Realtor more confidence in the negotiating process.

Sellers should verify that the inspection company uses inspectors who carry the proper insurance, including professional liability (errors and omissions), workers’ compensation, and general liability, and are certified by a recognized training and certification program.

* Produced using excerpts from National Association of Realtors website

Schools Schools Schools

Mark Houck, REALTOR® (Real Estate Professionals, Inc.) — Sun, 15 Apr 2007 23:08:24 -0500

Schools are obviously an important factor in someone's choice on where to live. Here are a few helpful links to find out more about the schools in the different counties in Maryland.

School System Links:

State of Maryland Public Schools
Links to all of the Public school systems in the State of Maryland

State of Maryland Private Schools
Links to all of the Private school systems in the State of Maryland

Harford County Public Schools
Harford County Public School Systems

Harford County Private Schools
Harford County Private School Systems

Baltimore County Public Schools
Baltimore County Public School Systems

Baltimore County Private Schools
Baltimore County Private School Systems

Baltimore City Public Schools
Baltimore City Public School Systems

Baltimore City Private Schools
Baltimore City Private School Systems

Cecil County Public Schools
Cecil County Public School Systems

Cecil County Private Schools
Cecil County Private School Systems

Montgomery County Public Schools
Montgomery County Public School System

Montgomery County Private Schools
Montgomery County Private School Systems

Prince George's County Public Schools
Prince George's County Public School System

Prince George's County Private Schools
Prince George's County Private School Systems

Howard County Public Schools
Howard County Public School System

Howard County Private Schools
Howard County Private School Systems

Anne Arundel County Public Schools
Anne Arundel County Public School System

Anne Arundel County Private Schools
Anne Arundel County Private School Systems

To Sign or Not to Sign...

Mark Houck, REALTOR® (Real Estate Professionals, Inc.) — Thu, 05 Apr 2007 00:13:07 -0500

Did You Know?

Purchasing real estate is a complex and major transaction with many details to be handled. Depending on the laws in your state and the business arrangement you have with a licensed real estate agent, that agent may actually be negotiating for the seller, not you the buyer.

The best way to be certain that an agent is working in your best interests is by signing a buyer representation agreement with an agent.

A real estate buyer's representative represents the buyer who is purchasing property in a real estate transaction. Research by the National Association of REALTORS has shown that when a buyer's representative is used, the prospective buyer found a home one week faster and examined three more properties than consumers who did not use a buyer's representative.

So you've decided to buy a home...

If you're looking at a buyer representation (agency) agreement only as protection for the real estate agent or broker, you're missing a good deal of its value. There are significant values that can accrue to you, the buyer client, as well.

1) The Buyer is Assured of Your Best Efforts
If you the buyer is working with multiple agents, or you're out cruising the open houses, you don't have dedicated professional support. It's only logical that your Realtor would have a significantly higher level of comfort with a representation agreement, and thus be willing to spend more time and effort in scouring the market for the right properties for their buyer clients. To help you put this perspective in a positive way, Realtors are more attentive to their buyer clients. Due to the time and expense requirements, they're unable to offer this to non-clients.

2) Your Buyer Representation Clients are Exposed to Every Eligible Property
This is a big one. If this doesn't get you into the mode to sign the agreement, then nothing else is likely to do so. This might also indicate a less-than-serious buyer. Basically, Mr. & Mrs. Buyers, not all properties that meet your requirements are listed in the MLS. I feel it's in your best interests, and my your agent's duty, to look for FSBO properties that you might want to see. But you'll need to agree that they'll get paid a minimum commission if one of these properties turns out to be the right one for you. You can negotiate its payment as part of the transaction."

3) Last, But Not Least, They Get Paid for Sure
This one is for the Realtor's mental and financial comfort level. It's a whole lot nicer going to the office each day knowing that they'll be showing properties to buyers who are serious enough to guarantee that they'll get paid. There's also that better feeling they'll get knowing that they were able to show you all the homes that met your requirements, as well as having you well-informed as to your choices in representation. It's not fun having a buyer ask you after a purchase why they didn't see the home three streets over at a better price.

The buyer's representative works for, and owes fiduciary responsibilities to, the real estate buyer and has buyer's best interests in mind throughout the entire real estate process. A buyer's representative will:

Evaluate the specific needs and wants of the buyer and locate properties that fit those specifications.
Assist the buyer in determining the amount that they can afford (pre-qualify), and show properties in that price range and locale.
Assist in viewing properties -- accompany the buyer on the showings, or preview the properties on behalf of the buyer to insure that the identified specifications are met.
Research the selected properties to identify any problems or issues to help the buyer make an informed decision prior to making an offer to purchase the property.
Advise the buyer on structuring an appropriate offer to purchase the selected property.
Present the offer to the seller's agent and the seller on the buyer's behalf.
Negotiate on behalf of the buyer to help obtain the identified property -- keeping the buyer's best interests in mind.
Assist in securing appropriate financing for the selected property.
Provide a list of potential qualified vendors (e.g. movers, attorneys, carpenters, etc.) if these services are needed.
Most importantly, fully-represent the buyer throughout the real estate transaction.

* Produced using excerpts from About.com article by James Kimmons and REBAC.net webiste

New Tax Deduction Will Make Housing More Affordable!

Mark Houck, REALTOR® (Real Estate Professionals, Inc.) — Wed, 04 Apr 2007 22:40:01 -0500

Did You Know?

New Tax Deduction Will Make
Housing More Affordable!

WASHINGTON, D. C. December 9, 2006 -- A new tax deduction will make homes more affordable next year by allowing many American home buyers to write-off premiums for private and government mortgage insurance. The deduction, which will help families who can’t afford the traditional 20 percent down payment for a home mortgage, will be effective for the 2007 tax year.

“Making the cost of mortgage insurance tax deductible helps those who need it most: low- and moderate-income Americans, primarily first-time home buyers, who are financially responsible but simply don’t have the means to amass a 20 percent down payment, ” said Steve Smith, Chief Executive Officer of The PMI Group, Inc. and President of Mortgage Insurance Companies of America (MICA). “We congratulate Congress for taking this important step to address a key barrier to homeownership that so many Americans face. ”

Borrowers closing loans to purchase homes in 2007 who have annual household incomes of $100, 000 or less will be able to get a low down payment mortgage and deduct the full cost of their mortgage insurance premiums on their federal tax return.

“We are pleased that policymakers have recognized mortgage insurance as a cost of finance just like mortgage interest, ” said MICA Executive Vice President Suzanne Hutchinson. “Mortgage insurance plays a crucial role in maintaining the stability and continued health of the mortgage finance system. In today’s climate of steadily rising interest rates and slowing home price appreciation, an insured loan is often the most borrower-friendly alternative. ”

The legislation has been supported by a broad range of consumer, business, taxpayer, civil rights, civic and labor groups. Following are some comments on the new deduction from some of these groups:

“A tax deduction for mortgage insurance premiums will go a long way to help homeowners and potential homeowners who simply want to own a piece of the American dream, ” said Marc H. Morial, President and Chief Executive Officer of the National Urban League. “I congratulate both the U. S. House and the Senate for doing what’s right to make the goal of affordable homeownership a reality for every American. ”

“This tax deduction will create important social benefits by offering relief to over-burdened taxpayers, ” said John Berthoud, President of the National Taxpayers Union. “Finally, homeowners will have the ability to make all the costs associated with the ongoing financing of their home truly tax deductible. ” “Homeownership contributes substantially to social stability, ” said Bruce Hahn, President and CEO of the American Homeowners Grassroots Alliance. “Yet homeownership remains just beyond the grasp of millions of Americans. Making the cost of mortgage insurance tax deductible helps put homeownership within reach for many more families. ”

“Currently, many Latinos need loans with private mortgage insurance because they are unable to afford the 20 percent down payment traditionally needed to buy a home, ” said Guarione M. Diaz, President and CEO of the Cuban American National Council. “Policies such as this one help these families realize the aspiration of homeownership and fulfill an essential element of the American dream. ”

“With a U. S. Hispanic homeownership rate of 48 percent (20 points below the national average of 68 percent), this legislation would enable more hardworking Hispanic families and consumers to become homeowners, ” said Manny Mirabal, President and CEO of the National Puerto Rican Coalition. “An estimated 33 percent of the families benefiting from this tax deduction would be minority homeowners. ”

MICA is the trade association representing the private mortgage insurance industry. Its members help loan originators and investors make funds available to home buyers for low down payment mortgages by protecting these institutions from a major portion of the financial risk of default.

* Reported by MICANews.com

Home Types And Styles

Mark Houck, REALTOR® (Real Estate Professionals, Inc.) — Wed, 04 Apr 2007 16:08:45 -0500

Home Types And Styles

The real estate market in this area has as much variety as any place in the country. Our market started over 200 years ago and hasn't slowed since. Below are a variety of styles and a brief description of what you will see when you tour homes.

Builders and home owners bring their favorite style from other parts of the country and add to the mix is styles available in our real estate market.

The following are a few varieties of homes you will find in this market:

The Colonial The ever popular Colonial is the home of choice for most new home buyers and builders. It offers more square feet for the foot print than any other style. The Colonial home is the proper description for any two level home. The Colonial may have a basement. Most in this market do have basements.

		The Rambler (Rancher) The Rambler is the classic one level home that has been constructed in all communities for over 100 years. Recently, with the rising cost of land, fewer Ramblers have been constructed, making the resale market very attractive for these homes. The Rambler or Rancher is a one level home that may have a basement.

Split Foyer The split foyer is a very popular style with builders. Characterized by the foyer entrance with steps up to the mail level and steps down to the lower level, the Split Foyer can be constructed completely on a slab with little to no excavation costs. The Split Foyer is a two level home with the upper level always finished. The lower level may be finished.

		Split Level The Split Level home was popular and built mostly during the 1960-1970s. They are still popular as resale homes. The come in 3-5 levels with 3 levels above the ground. Lower levels may or may not be finished.

The Cape Cod The Cape Cod, identified by the front sloping roof, has been around for over 100 years. The style came from New England and has remained a popular home style. Many families building large custom homes will select the Cape Cod style because of the warm, inviting ambiance it offers. The Cape Cod is a two story home and may have a basement.

		The Townhouse These are wonderful starter homes for buyers who are not ready for a detached single family or someone who doesn't want lawn care. Two or three level town homes and apartment style condominium homes are available in most urban areas and they are popular in this market.

Added Incentive Could Mean a Faster Sale!

Mark Houck, REALTOR® (Real Estate Professionals, Inc.) — Wed, 04 Apr 2007 15:57:17 -0500

Did You Know?

Added Incentive Could Mean a Faster Sale!

A good home in good condition in a good neighborhood offered at a fair price will still sell in a reasonable amount of time.

But some owners want to offer a little extra incentive to ensure that their homes sell as quickly as possible. Here are some suggestions that won't break the bank and most are less expensive then your first price reduction.

Suggestions to help make a Sale a Fast Sale:

Pay homeowners association fees for up to two years.
Pay the buyer's home insurance for up to a year.
Offer a bonus to the buyer's agent.
Buy down the mortgage rate by a point or two to lower the buyer's monthly payment.
Pay closing costs.
Replace all the appliances with new ones
Offer a buyer's home warranty
Get an appraisal to show value and equity to a potential buyer
Get an inspection ahead of time and provide it to a potential buyer

These suggestions will offer lots of incentive to potential buyers and agents. Think about it from this point of view: If a buyer's agent knows that the property has been inspected and appraised, then they can help to reassure their clients. They also know that's money that their client doesn't have to pay.

In addition, these will help to reduce the negotiation and settlement times. If a buyer has an inspection and an appraisal showing the properties' condition and value, they are less likely to try to negotiate the small things and you have more leverage to stand your ground.

* Excerpts used from: Source: St. Petersburg Times, Judy Stark (08/19/06)

I'm Pre-Approved, What Do I Do Now?

Mark Houck, REALTOR® (Real Estate Professionals, Inc.) — Wed, 04 Apr 2007 15:47:24 -0500

Did You Know?

The first REAL step is to get pre-approved in writing by a mortgage lender. This lets you know the maximum mortgage for which they can qualify. It also lets the seller know you've positioned yourself well for the closing process to be smooth.

Your contract will have a stronger position for consideration with a mortgage lender's pre-approval letter or certificate (not just a worthless pre-qualification letter where the buyer's loan application hasn't been verified).

I'm Pre-Approved, What Do I Do Now:

Most buyers begin their quest on the Internet, usually at http://Realtor.com, where more than 70 percent of today's home buyers start their search. At this point, the home search can become murky.

Many prospective home buyers contact the home's listing agent, either by e-mail or by phone. Although the listing agent is likely to be extremely helpful, few buyers realize that listing agent primarily represents the home seller, not the buyer.

Or another scenario might develop as prospective home buyers scan the weekend newspaper homes-for-sale ads, especially the advertised open houses. No matter how helpful and charming the open house host agent might be, most prospective buyers don't understand that agent legally represents the home seller, not the buyer.

PROS AND CONS OF "DUAL AGENCY"

In most states, a home's listing agent can also represent the home buyer. When both buyer and seller fully understand the agent represents both parties, this is called a disclosed "dual agency."

Some states have statutes allowing the listing agent to represent the home seller while another agent working for the same brokerage, called a "transaction agent," represents the home buyer. Depending on state law, there are several other possibilities.

But home buyers should be certain they fully understand who represents whom. In a dual-agency situation, the one agent theoretically represents both buyer and seller. Such an agent owes a fiduciary duty of honesty, truthfulness, and full disclosure (with notable exceptions) to the other party.

However, this is an inherent conflict of interest situation for the dual agent.

To prevent misunderstandings, most states now require real estate agents to provide written agency disclosures to home buyers and sellers who they represent in the sale. At this point, smart home buyers ask, "Who really represents me?"

DO HOME BUYERS NEED THEIR OWN BUYER'S AGENTS?

The answer in most situations is probably "YES." The reason is a buyer's agent, who is truly looking out for the buyer's best interests and using the best efforts to find a house or condo meeting the buyer's needs, will emphasize to the buyer the pros and cons of each residence inspected.

But a "dual agent" representing both home seller and buyer can hardly be expected to do so, especially pointing out the drawbacks of a listed home under consideration by the prospective buyer.

Any licensed real estate sales agent or broker can be a buyer's agent representing the home buyer in the transaction. A typical buyer's agent can represent any home buyer, but also take listings of local homes for sale.

However, when a buyer's agent shows homes listed for sale by that agent, or another agent working for the same brokerage, then the dual agency issue occurs.

WHO PAYS THE SALE COMMISSION DOES NOT DETERMINE AGENCY.

In most buyers' agent situations, the buyer's agent receives half of the sales commission paid to the listing agent. This commission split is usually stated in writing in the local Multiple Listing Service (MLS) disclosure between MLS member agents.

Just because the home seller pays the listing commission, which is then split with the buyer's agent, doesn't mean the buyer's agent works for the home seller.

However, when a buyer's agent shows a prospective buyer a "for sale by owner" house or condo where there is no listing agent, if the seller refuses to pay the buyer's agent any sales commission, then it becomes the obligation of the buyer to pay their buyer's agent a commission. For this reason, many buyers' agents require their buyers to sign a written buyer's agency contract, typically for 30 to 60 days.

HOW HOME BUYERS CAN FIND A GOOD BUYER'S AGENT.

Any real estate agent can be a buyer's agent to help locate your home purchase. In addition, there are a few exclusive buyers' agents who represent only home buyers, never accepting listings from home sellers.

The best way to locate a successful buyer's agent is to ask friends and business associates who have recently purchased a house or condo for their buyer's agent recommendations. Because the drawbacks of not having a buyer's agent can be costly, especially when the same agent represents the home seller, home buyers should spend considerable effort to locate an effective buyer's agent.

If a buyer's agent requires a written buyer's agency contract exceeding 60 days, buyers should be aware they will be "tied up" with that buyer's agent even if they find a home to purchase on their own. For this reason, unless you have received a superb recommendation to a buyer's agent from a recent home buyer, it is best not to sign a long-term buyer's agency contract.

CONCLUSION: Home buyers need their own buyers' agents, just as most home sellers hire listing agents to represent their best interests. Likewise, home buyers need a separate buyer's agent looking out for their best interests. Representation by a "dual agent" who represents both seller and buyer creates an inherent conflict for the home buyer.

* Produced using excerpts from "Do home buyers need their own agent?" By Bob Bruss June 02, 2006

It's a Great Time for Buyers! Top Reasons to Buy a Home Now!

Mark Houck, REALTOR® (Real Estate Professionals, Inc.) — Tue, 06 Mar 2007 13:29:23 -0600

Did You Know?

It's a Great Time for Buyers!
Top Reasons to Buy a Home Now!

It's no secret that the housing market finally, after a long while, belongs to the buyer. Home sales and prices sagged in 2006, and 2007 is not expected to be too different. According to David Lereah, chief economist for the National Association of Realtors, buyers have a "window of opportunity" in 2007 to take advantage of lower mortgage interest rates and seller flexibility.

A cooling housing market gives buyers, especially first-time buyers, more opportunities to snatch up a good deal. Here are the Top Reasons to consider Buying a Home Now!

The inventory (selection) of houses on the market is huge
Home prices have leveled off
Sellers are more flexible and are more willing to negotiate to come to an agreement
Mortgage rates are still near all time lows
You can benefit from new tax laws and deductions which can add up to real big savings
The are even more grants, special incentives, and loan programs to help you get into the home of your dreams
The chances of bidding wars is very low which encourages sellers to consider contracts more closely
Sellers are offering more incentives, owners may be willing to throw in extras such as appliances, work sheds, drapes or even patio furniture for the asking price
There's no need to rush in this market, homes are on the market longer giving you more time to make the right choice
Renting cost more than buying
A home is a solid investment for your future
And you won't believe this Top Reason - It's FREE for you to have a Realtor represent you and your best interest in purchasing a home!

If you find the right house at the right price, Buy It!

Junk or Not - Mortgage Fees At a Glance

Mark Houck, REALTOR® (Real Estate Professionals, Inc.) — Tue, 06 Mar 2007 13:25:05 -0600

Did You Know?

BAD NEWS - Some Mortgage lenders are constantly working to create new names for unnecessary junk or garbage fees to impose on innocent borrowers who have no clue when they are being ripped off.

GOOD NEWS - Most are honest mortgage lenders who won't try to impose unexpected last-minute fees. These are the ONLY lenders we respect enough to work with and are confident enough to refer our clients to.

Mortgage Lender Fees - Junk or Not:

We suggest you start shopping among at least a half-dozen mortgage lenders for a so-called "no cost, no fee" home loan. In today's mortgage market with rising interest rates, we recommend obtaining a fixed-rate mortgage.

However, if you are certain you won't keep your home more than five years, then an adjustable-rate mortgage (ARM) fixed for five years can save you a few interest dollars. But be certain it does not contain a prepayment penalty or negative amortization (where the interest rate adjusts monthly or semi-annually and unpaid interest is added to your loan balance).

Junk or Not - At a Glance:

If you are dealing with a direct lender, such as Wells Fargo, Bank of America or Countrywide, the lender's good faith estimate must reveal all loan charges. But you might be asked to pay legitimate fees to third parties, such as for the appraisal, credit report and lender's title insurance fee. That's fine. Those are not junk or garbage fees.
If you are dealing with a middleperson, such as a mortgage broker, his or her written good faith estimate might be less reliable. The reason is the broker often says, "I got you the best mortgage, but the lender imposed these unexpected junk fees at the last minute. Take it or leave it."
Never pay front money or advance fees for any loan. After listing typical fees some lenders request upfront money. None of these are necessary with a legitimate lender. So don't let yourself be talked into front money or advance fees of any kind.
Watch out for unnecessary, 100 percent pure lender profit, previously undisclosed junk or garbage fees with creative names such as underwriting fee, document preparation fee, loan review fee, warehousing fee, and loan origination fee.
Most mortgage lenders are honest. Some are not. The "bad guys" know when they have a vulnerable situation, especially when the home buyer has zero cash available.

If the lender asks you to pay a loan fee of 1 percent or 2 percent of the amount borrowed, usually called points, ask how much reduction you will receive in the loan's interest rate. For each one point loan fee paid, you should receive at least a one-eighth-percent reduction in your loan's interest rate for the life of the mortgage. Pay a loan fee only if you expect to stay in the house at least 10 years. Otherwise, take the no-cost, no-fee mortgage with all lender charges included in the interest rate.

New Tax Deduction Will Make Housing More Affordable!

Mark Houck, REALTOR® (Real Estate Professionals, Inc.) — Tue, 06 Mar 2007 11:02:50 -0600

Did You Know?

New Tax Deduction Will Make
Housing More Affordable!

The legislation has been supported by a broad range of consumer, business, taxpayer, civil rights, civic and labor groups. Following are some comments on the new deduction from some of these groups:

Why Rent When you Can Buy!!

Mark Houck, REALTOR® (Real Estate Professionals, Inc.) — Tue, 06 Mar 2007 11:00:00 -0600

Why Rent?

Renting can cost more than seven times more than owning per year, according to a newly revised consumer education brochure from the NATIONAL ASSOCIATION OF REALTORS®.

The brochure poses the question “Why rent when you can buy?” and challenges certain assumptions about renting versus buying. Its goal: To serve as another tool to help prospective home owners evaluate whether home ownership is the best move for them.

Renting Can Cost 7 Times More Than Owning:

“Housing is a good investment, and owning a home makes sense for a lot of current renters, but many would-be home owners are reluctant to take those first steps,” says 2006 NAR President Thomas M. Stevens, senior vice president of NRT Inc., from Vienna, Va. “Given their experience with home buyer concerns and insight into local markets, REALTORS® can counsel consumers about their options and provide the information and support people need to begin their journey toward home ownership.”

Here are some key benefits of buying, as noted in the brochure:

The Federal Reserve Board estimates that home owners have a net worth nearly 36 times more than that of renters.
Over the past 10 years, the cost of rental housing in the United States has increased an average of 3 percent per year; average rents are projected to rise 4.1 percent this year alone. With a 3 percent annual increase, a current rental payment of $1,000 per month would increase every year and amount to $137,567 after 10 years, with no wealth accumulation.
By contrast, a $210,000 home purchased today with a down payment of $10,000 and a 20-year fixed rate mortgage at 6.5 percent would cost a steady $1,100 per month and yield a net worth of $138,521 after 10 years, assuming an historic 4.5 percent annual appreciation rate.

“The decision to become a home owner involves financial and emotional considerations,” Stevens says. “Our REALTOR® members help millions of people into homes every year, one family at a time.”

Are You Ready? Let us help you to discover the possibilities of Home Ownership Now.

Is 'Your' Realtor really working for you?

Mark Houck, REALTOR® (Real Estate Professionals, Inc.) — Tue, 06 Mar 2007 10:52:37 -0600

Exclusive Buyer Agent

Don't get taken advantage of! It does not cost you anything to be represented by a professional buyer's agent like myself and it could save you thousands. Sellers have agents working for them and home buyers should too!

Is 'your' Realtor working for you? As a home buyer, your interests are not represented properly unless you have told the Realtor who is showing you homes that you want them to represent you as your "Buyer's Agent." If you haven't, "your Agent" could be representing the seller.

Some of What An Exclusive Buyer Agent Will Do For You:

Information And Counseling

Explain the forms of agency available to you and explain how different relationships may affect the level and type of service a Buyer may receive from a real estate agent.
Offer to enter into a written Agency Agreement with the Buyer. The agreement will include beginning and ending dates, fee structure and payment method, and the responsibilities of both parties.
Pledge absolute confidentiality to a Buyer when representing him/her.
Counsel the Buyer regarding his/her financial qualifications and assist the Buyer in finding and working with mortgage lenders.

Searching For A Property

Discuss preferences in size, areas, styles, age, floor plans, and develop a property profile.
Search the entire real estate market, including the Multiple Listing Service (MLS), properties for sale by owners, and new homes (where appropriate).

Contract Offer

Inform the Buyer about any defects or problems he/she has observed or discovered regarding the property.
Prepare a comparative market analysis, to determine the property's fair market value.
Explain the choices available in each section of an offer to purchase and explain the alternatives available to the Buyer.
Advise the Buyer to seek legal counsel where appropriate.
Prepare the offer to purchase in a manner which will protect the Buyers interest. Will provide proper disclosures regarding agency representation and any other matters as required by law.
Develop negotiation strategies with the Buyer, including pre-set limits on key points of negotiation when the Buyer wishes to do so.
Counsel the Buyer regarding the time requirements in the contract and encourage the Buyer to have professional inspectors inspect the property if the contract is accepted.

After The Offer To Purchase Is Accepted

Will counsel the Buyer about home inspections, and provide the names of real estate inspectors. Will encourage the Buyer to be present during inspections.
Will explain options available to the Buyer regarding items in the inspection report.
Where appropriate, will notify the Seller or the Seller's Agent in writing of inspectors' findings and the Buyers choice of any options available to the Buyer.
Maintain contact with the title company and mortgage company to insure that the Buyers interests are being protected.
Will review the settlement statement with the Buyer at or before closing.
Will attend the closing with the Buyer and be prepared to answer questions the Buyer may have.

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