Kids and Tornado Advisories

From the tornadoes this year in Oklahoma to the recent hurricane in the Philippines, 2013 has been a scary year. Images of devastation, homes flattened, people clinging to rafts and children crying have been broadcast over and over again.

Horrific? Absolutely. But adults have developed coping mechanisms. If the devastation is far away, like the Philippines, we forget about it. If it’s closer home, we may send in money to the Red Cross or similar organizations. If it’s in our backyard, we are more motivated. We may actually join in the disaster efforts, even to the point of volunteering.

But 5-year olds have not developed coping mechanisms. While adults may think that the little guy is not watching, he is, in fact, paying attention and absorbing the images.

Last week, all TV channels had a ticker running from the National Weather Service advising viewers about an impending tornado. Main areas were in Florida and Georgia with spillover in some counties in South Carolina.

My little 5-year old grandson Neil was here for the Thanksgiving week. The advisory scared him, and he asked me several times if ours was one of the counties in the tornado’s path. I told him no, we were not near the path at all.

His next question: Why do we have to have tornadoes?

I told him how tornadoes formed, about weather patterns and how the Red Cross has shelters where we would stay till the tornado passed with plenty of food and water. I wanted him to feel safe.

What I actually told him was what tornadoes were and how we were going to remain safe. But I didn’t really answer his question, did I?

5 Reasons to Buy A Home Now Instead of Spring

Based on prices, mortgage rates and soaring rents, there may have never been a better time in real estate history to purchase a home than right now. Here are five major reasons purchasers should consider buying:

Supply Is Shrinking

With inventory declining in many regions, finding a home of your dreams may become more difficult going forward. There are buyers in more and more markets surprised that there is no longer a large assortment of houses to choose from. The best homes in the best locations sell first. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy.

Price Increases Are on the Horizon

Prices are projected to appreciate by over 25% from now to 2018. First home buyers will probably pay more both in price and interest rate if they wait until the spring. Even if you are a move-up buyer, it will wind-up costing you more in net dollars as the home you will buy will appreciate at approximately the same rate as the house you are in now.

Owning a Home Helps Create Family Wealth

Whether you are rent or you own the home you are leaving in, you are paying a mortgage. Either you are paying your mortgage or your landlord’s. The Fed, in a recent study, revealed that the net worth of the average homeowner is 30 times greater than that of a renter.

Interest Rates Are Projected to Rise

The Mortgage Bankers Association, the National Association of Realtors, Freddie Mac and Fannie Mae have all projected that the 30-year mortgage interest rate will be over 5% by the end of 2014. That is an increase of almost one full point over current rates.

Buy Low, Sell High

We would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’ compared to where it will be next year. It’s time to buy.

Courtesy: Keeping Matters Current.

Why Appraisals and Market Analyses are critical!

I just had a contract fall through. It is really frustrating when a contract falls through because the house does not appraise.

What is an appraisal?

An appraisal is the valuation of a property to determine the market price. It is done by a licensed appraiser who compares recent sales in the area, taking into consideration the location, size, age, and features of the house and its comparable houses.

A market analysis is also prepared to determine the market price of a property. It is prepared by a Realtor (like me) but on a simpler scale, and it also compares location, size and features of the subject property and it's 'comps'.

When the buyer showed interest in this particular house, I prepared a market analysis.

The house was listed at $400,000. The most appealing feature was that it was on a small lake (you could see the shores on the other side) and though older, had been maintained well.

My market analysis found that it was worth around $300,000. That is a big difference! In my comparison, all houses were water-front houses, and all had sold in the last 6 months for less than $100/SF. This house just did not justify the price.

My buyer, however, was very keen. Much against my wishes, we wrote out the contract for a price close to the asking price. I suggested that before he spent any money, he gets an appraisal done. Typically, the bank that he was getting his home loan from would order the appraisal.

The appraisal came back at $320,000!

At this stage, we know that the bank will give a loan for only $320,000. And not a penny more.

We had 2 choices:

1.      The seller drops his price to $320,000, or
2.      The buyer gets a loan for $320,000 and comes up with the difference.

In a market like Los Angeles or Chicago, buyers have been willing to come up with the difference. But in the Columbia market, this does not happen.

Well… the seller refused to lower the price, the buyer could not come up with the difference, so we canceled the contract!

For more details on home buying, call me on 803-348-9922 or email me at vsashikant@gmail.com.

 

Check out all homes for sale in Columbia and Lexington at www.homesincolumbiasc.net

 

For... all Real Estate matters!

 

Men and Women Differ on Home Buying - But You Knew That, Didn't You?

Men are from Mars, women are from Venus — and that couldn't be more true when it comes to home buying. According to Prudential Real Estate's Consumer Outlook Survey, men and women are quite different when it comes to what they value most about home ownership and the process of buying and selling.

 

Here are key differences:

1. Women enjoy the home search more than men - 87 percent of women versus 77 percent of men saying they like looking at homes.
 

2. Women associate home ownership with "pride," "accomplishment," or "independence," while men tend to associate it with "control over living space" and "more space for my family."

 

We may often find ourselves stuck in the middle as agents, but both sexes say they trust us to be the voice of reason and settle any disagreements among couples. 83 percent of survey respondents say their real estate agent was helpful in moderating an agreement, and 86 percent value the agent's point of view as much as — or more than — their partner's.

 

Both sexes cited "honesty" and "knowledgeable" as the most important traits in a real estate agent. 

 

Men and women tend to take on different responsibilities when it comes to home buying, the survey finds. Men take on more of the financial aspects, while women tended to take the lead on planning aspects, such as neighborhood and school research.

 

Nearly 40 percent of men said they researched banks and secured the mortgage; 42 percent of women said it was their responsibility to manage appointments, and 34 percent took the lead in researching neighborhoods. 

 

When it comes to the most important home features, men and women are mostly in agreement. Both genders ranked "safe neighborhood," "overall condition of home," and "number of bedrooms" the highest. 

 

Source: Prudential Real Estate

Pet Peeve of the Day – Sheer Bad Manners!

Most people seem to be unsure as to the correct response to receiving a birthday card. Are there multiple ways to respond? How about a quick email or a text to say that you received and thank you for remembering me and my birthday?

I seem to remember everyone’s birthday. Before PDAs, I remembered my family’s and friends’ birthdays in my head. But now that I can enter birthdays in my iPad and put in reminders, I have added to that list my extended family, past clients and colleagues. I actually go out and buy cards to suit each one (not just generic) and mail them so that it arrives on time – for overseas friends and family, this may be 3 weeks in advance!

And yet… how many of those that receive it acknowledge that they received my good wishes? Sadly, a very tiny percentage.

A few weeks ago, I sent a gift for a relative’s grandson who turned 5 and who lives in Canada. I rushed a board game through Amazon to a friend who was leaving for Toronto. I know from tracking that the gift reached the friend on time. It is 2 weeks now, and I have to still receive an acknowledgement!

My final peeve is at a former colleague. To congratulate him on his new office premises, I took a gift and a card. I meant to surprise him. The office was closed. I went back the next day. The office was still closed. So I called him (ruining the surprise). He sounded rushed and asked me to leave the gift hidden under an upturned trash can in the backyard. I did.

That was 4 days ago! Not a peep from him.

Sheer bad manners!

 

 

Good news for Home Buyers! Mortgage Rates Fall!

After the Federal Reserve announced this week that its $85 billion per month bond-buying program will remain, mortgage rates dived.

 

The program had helped keep mortgage rates low, but fears mounted this summer that the Fed would begin winding it down. This caused mortgage rates to move up, increasing borrowing costs for home buyers and slowing the recovery of the housing  market.

 

The Fed’s decision has reinforced its commitment to holding short-term interest rates near zero through next year and into 2015. The Fed noted that employment is improving, and is optimistic about the “growing underlying strength in the broader economy.”

 

Here are Freddie Mac's reports of mortgage rates for the week ending Oct. 31: 

 

Type of Mortgage	Today’s Rate 10/31/13	Last Week 10/24/13	October 2012
30-Year Fixed	4.10%	4.13%	3.39%
15-Year Fixed	3.20%	3.24%	2.70%
5-Year ARM	2.96%	3.00%	2.74%
1-Year ARM	2.64%	2.60%	2.58%

The Fed's decision should help sustain low mortgage rates in the near future, says Frank Nothaft, Freddie Mac’s chief economist.

 

That's good news for home buyers and sellers!

 

Courtesy: Realtor Magazine

 

Looking for a home? Check out all homes for sale in Columbia and Lexington at www.homesincolumbiasc.net

 

Want to know what your home is worth? Call me at 803-348-9922 or email me at vsashikant@gmail.com.

 

For... all Real Estate matters!

 

 

The Importance of Curb Appeal

Calling all Sellers!

Do not underestimate the importance of good curb appeal - it takes just 7 seconds for a potential buyer to form an opinion.

Here are some tips:

1. Roof and Chimney: Shingles should be intact with none missing and mortar between bricks should be secure.
2. Gutters: Repair and clean gutters. Nothing says poor maintenance than choked gutters.
3. Invest in some cool house numbers: Switch out those tired digits and give your address a makeover.
4. Windows and Trim: Paint windows and trim, replace broken glass panes, and clean all windows inside and out.
5. Wash your house's face: Washing a house can add $10,000 - $15,000 to the sale price.
6. Landscaping: A well-designed landscape can add 7 - 14% to your home's value.
7. Upgrade the Front Door and increase the resale value.
8. Upgrade the Mailbox: Wobbly dented mailboxes are a no-no. You can get a good-looking durable free-standing mailbox for $50!
9. Replace Light Fixtures: Highlight your landscape and home with strategically placed lights.

For more tips, call me at 803-348-9922 or email me at vsashikant@gmail.com.

 

Courtesy: Keeping Current Matters Blog



5 Reasons Why You Should Sell Your House Now

Many now realize that it is a great time to buy a home.  It might also be an opportune time to sell your house.  Here are the five reasons we believe now may be a perfect time to put your house on the market.

1. Demand Is High

The most recent Existing Home Sales Reports by the National Association of Realtors (NAR) show a double digit percent increase in sales year-over year; sales have remained above last year’s levels for over 25 months.  There are buyers out there right now and they are serious about purchasing.

2. Supply Is Beginning to Increase

Total housing inventory is again approaching historic norms of a 5 month supply compared with 4.3 months in January.  Many expect inventory to continue to rise as 3.2 million homeowners escaped the shackles of negative equity in the last 12 months and an additional 1.9 million are expected to enter positive equity in the next 12 months.  Selling now while demand is high and before supply increases may garner you your best price.

3. New Construction Is Coming Back

Over the last several years, most homeowners selling their home did not have to compete with a new construction project around the block.  As the market is recovering, more and more builders are jumping back in.  These ‘shiny’ new homes will again become competition as they are an attractive alternative for many purchasers.

4. Interest Rates Will Again Rise

Although Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have softened recently, most experts predict that they will begin to rise later this year.  The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison projecting that rates will be up almost a full percentage point by this time next year.
Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

5. It’s Time to Move On with Your Life

Look at the reason you are thinking about selling and decide whether it is worth waiting.  Is the possibility of a few extra dollars more important than being with family; more important than your health; more important than having the freedom to go on with your life the way you think you should?
You already know the answers to the questions we just asked.  You have the power to take back control of your situation by putting the house on the market today.  The time may have come for you and your family to move on and start living the life you desire.  That is what is truly important.

Courtesy: KeepingCurrentMatters.com

Will Halloween Spook your Homeowners Insurance?

According to people-in-the-know, some of the top trending costumes this year are those modeled on Breaking Bad, Duck Dynasty, Miley Cyrus and Gatsby. And you can expect Monsters, Princess Sophia and Tinker Bell to drop by.

But when Trick-or-Treaters come to your doorstep and they, er… stumble and fall, are you liable? Don’t worry, say experts, your homeowners’ insurance will protect you from Halloween mishaps like these:

• A trick-or-treater gets hurt on your property. Injuries to trick-or-treaters or your party guests are covered by the homeowner liability portion of your policy. The injured person files a claim with your insurer.
• Tricksters damage your home. Standard homeowners’ policies cover vandalism, such as dents in your siding caused by eggs thrown at your home, when repair costs exceed your deductible.
• Candles or decorations cause a fire. A fire started by a Halloween candle or a string of holiday lights will be covered. If the fire makes your home unlivable, your homeowners policy will pay for your living expenses while you wait for repairs.
• You crash your car into a telephone pole to avoid hitting a trick-or-treater in your driveway. That accident would be covered by the collision portion of your auto insurance (if you have it). If you hurt anyone, the liability portion of your auto insurance would cover the cost of their treatment.

If everything on this list of Halloween home horrors occurred, your umbrella insurance would kick in to cover costs — provided you have it.

To make your property safe for Halloween, the Insurance Information Institute has these recommendations:

• Pick up anything in your front yard, sidewalk, stoop, or porch that a person could trip over.
• Turn on your outdoor lighting so kids can see where they’re going.
• Use battery-powered lights in your jack-o-lanterns.
• Don’t put matches, lighters, or candles in places children can reach.
• Pets, candles, and trick-or-treaters don’t mix. Keep pets away from the front door on Halloween.
• Look for safety certifications, such as UL (Underwriters Laboratories), on your decorative lights.

Courtesy: Realtor Magazine. Pictures courtesy: Party City

Check out all homes for sale in Columbia and Lexington at www.homesincolumbiasc.net

For... all Real Estate matters!

Military Relocation Professional

When the National Association of Realtors offered the MRP or Military Relocation Professional certification, I jumped at the idea of honing my skills and learning more about helping military families relocate.

I have worked with many military families - after all, Fort Jackson is the largest base for basic training - and loved working with them.

Here are some cool facts:

• Active members relocate every 2 - 3 years, mostly within the US.
• There are nearly 1.5 million active military service members in the Army, Navy, Air Force, Marines and Coast Guard (numbers as of Sep 2012)
• 16% of military personnel are women.
• Orders to deploy may mean within 48 - 72 hours!

Integrity runs deep in military culture and values like honor, loyalty and courage are lived out everyday, shaping the military personnel's interaction with others.

Every military family I have worked with has shown respect for me, my time and my knowledge. Having moved a lot in my life, I can empathize with the anxieties and sacrifices that a military family is subject to - even when they are moving within the United States, not just when a family member is deployed.

With the Military Relocation Professional certification, I can help military families better - whether they are buying a home or selling a home under tight time lines. My commitment is to be available, use my expertise and experience, and to take the stress out of real estate transactions.

For... all Real Estate matters!

Check out all homes for sale in Columbia and Lexington at www.homesincolumbiasc.net

 

 

If I Were a Rich Man... diddle-diddle-diddle... diddle-diddle-diddle-diddle-dum...

Granite and hardwoods are so 20th century and passé for wealthy buyers. What features is Richie Rich looking for in his $1.5 million home (average home price)?

According to Realtor Magazine, a recent survey of home buyers who made more than $250,000 a year lists thusly:

Must-have amenities:
1. An open floor plan
2. Fully automated/wired home system with high-speed cable and integrated music systems, computerized lighting and home monitoring systems

3. Pool

4. Outdoor kitchen

5. Gym

6. Home theater

 

Less important amenities:

1. Wine cellar

2. Guest house

3. Safe room

4. Separate catering kitchen

5. Tennis court

6. Staff quarters

 

Source: Realtor Magazine

FREE Video Lessons from Marketing Gurus? You gotta be kidding!

Every day there is an email from a marketing company ready to show me how to market my business. I don’t mind a message in the body of the email that I can skim through – a short one with the salient points in bold. Heck… I even subscribe to a few.

But… here’s my gripe about the video ones. Or several gripes:

1.      It’s a 13-minute video and in the 1^st 3 minutes, the presenter’s best buddy has the camera on himself, telling us about the presenter who is… to put it succinctly, a national treasure, and we should be so honored to have him in our midst.

2.      The camera is now on the presenter, and in the next 3 minutes, he’s telling us how long he has been doing this and how people have reacted to his talks and found new meanings in their pitiful marketing efforts, and how he is going to change our lives.

3.      In the next 5 minutes, the presenter re-affirms that this is a FREE service and runs through the points that are going to take us to the next level. One point, typically, the 4^th or 5^th is a complex one, and he’ll stress on it or his buddy will be back asking pertinent questions about it.

4.      Ah! Now for the crux! The complex point. It turns out that you may well be able to do this yourself if you have an advanced degree in computer science or have a back office team of 15 people to turn to. But… he’s going to help you do all of this for just… $___ (anything from $29.99 a month to $100 a month). He’ll even throw in a one-on-one coaching period.

Do I need to watch this 13-minute pompous pretentious pundit to discover that nothing is free?

Dear Marketing Gurus… please don’t send me emails with videos of yourself. I’ll take great pleasure in hitting ‘Delete’!

5 Inspection Problems Buyers Shouldn’t Ignore

Home buyers need to be extra vigilant about inspections in the early stages of a purchase because if problems are discovered too late in the process, it can "dash home owners' dreams and budgets," writes Yahoo! Finance in a recent article.

One home buyer in Long Island, N.Y., explains in the story that she didn't discover the fixer-upper she bought needed $225,000 in repairs until after she purchased it. 

Jonathan and Drew Scott, who educate viewers about transforming fixer-uppers on HGTV's "Property Brothers," offers up a checklist of five things buyers should look for to ensure they don’t buy a lemon. 

• Mold: Buyers should note any musty smells in the home and be on the lookout for any mold. Mold can be caused by improper air circulation as well as water leaks. 
• Pests: Termite damage can be widespread and costly to repair.  
• Outdated fixtures and wiring: Electrical problems in a home can cause fire hazards. Buyers should take note of any indication of faulty wiring, such as cable coming out of drywall. 
• Poor DIY jobs: Buyers should make sure that the previous home owner's do-it-yourself projects were done correctly and are up to code. For example, poorly done flooring and painted-over wallpaper can be time-consuming and costly to fix. 
• Drainage problems: Sloping sod can cause flooding problems in a backyard, and a slow-draining sink could be an indication of a bigger problem. Buyers should test sinks and flush toilets to test for any potential problems. 

Courtesy: Realtor Magazine

Fannie Mae's Housing Forecast - the picture says it all!

Why are you still waiting for the real estate market to bottom out? Call me NOW to find your dream home at 803-348-9922. Or check out all homes for sale in Columbia and Lexington on www.homesincolumbiasc.net.

Courtesy: Keeping Current Matters Blog

Harvard Study: Homeownership Still the American Dream

                                                                                                                         

A big question facing the real estate industry over the last few years is how the housing crisis would impact the public’s belief in homeownership as a major component of the American Dream. Many felt the tragedy experienced by so many families would force them to reconsider their desire to ever be a homeowner again.

A recent study by the Joint Center for Housing Studies at Harvard University addressed this question. Their paper, Reexamining the Social Benefits of Homeownership after the Housing Crisis, revealed some interesting findings:

Homeownership Still Preferred Over Renting

“Even after the dramatic loss of equity and the high foreclosure rates, the early evidence suggests that people seem to believe that, over the long run, owning is still preferable to renting…The long term cultural preference for owning seems to have weathered the recent housing crisis.”

Americans Still Expect to be Homeowners

“The research on home-buying expectations supports the conclusion that very large percentages of Americans still expect to buy a home at some time in the future.”

Younger Americans More Desirous of Homeownership

“Moreover, the finding that younger renters and owners are more likely than their older counterparts to expect to own bodes well for the future of the housing market.”

Even after one of the most difficult decades in this country’s real estate history, the belief that homeownership is a part of the American Dream still lives on.

Courtesy: The KCM Blog

4 Tips to determine how much Mortgage you can Afford

The most important part of home ownership is affordability – how much can you afford to pay every month as mortgage comfortably? Here are 4 tips to ensure that home ownership will fit in your budget.

1. The general rule of mortgage affordability:

As a rule of thumb, you can typically afford a home priced two to three times your gross income. For example, if you earn $100,000, you can typically afford a home between $200,000 and $300,000.

2. How much can you put down as down payment?

As an example, if you are buying a home for $100,000, and you have $20,000 saved up for down payment, that means you can put down 20% and your loan is for the remaining 80%.

This means that you will not have to pay private mortgage insurance (typically required by all lenders for down payments less than 20%), which may cost hundreds each month.

The lower your down payment, the higher the loan amount you’ll need to qualify for and the higher your monthly mortgage payment.

3. Consider your overall debt:

Lenders generally follow the 28/41 rule.

Simply put:

·        Your monthly mortgage payment (loan principal, interest, taxes and insurance) should not total more than 28% of your gross annual income.
·        Your overall monthly payments for your mortgage plus all your other bills (car loans, utilities, credit cards, other loans) should not exceed 41% of your gross annual income.

Here’s how that works. If your gross annual income is $100,000, multiply by 28% and then divide by 12 months to arrive at a monthly mortgage payment of $2,333 or less. Next, check the total of all your monthly bills including your potential mortgage and make sure they don’t top 41%, or $3,416 in our example.

4. Use your rent as a mortgage guide:

Multiply your current rent by 1.33 to arrive at a rough estimate of a mortgage payment.

For example: If your rent is $1,500 per month, you should be able to comfortably afford a $2,000 monthly mortgage payment.

This is because of the tax benefits of home ownership. However, if you take the standard deduction, you can’t also deduct mortgage interest payments. Talking to a tax adviser, or using a tax software program to do a “what if” tax return, can help you see your tax situation more clearly.

However, if you’re struggling to keep up with your rent, consider what amount would be comfortable and use that for the calculation instead.

If all this math is making your head spin, simply give me a call (M 803-348-9922). I am not a mortgage loan officer, but I have several good friends who are and I can introduce you to them. They will take your details over the phone and pre-qualify you.

You can also check out the mortgage calculator on my website www.homesincolumbiasc.net – plug in the price of home and interest rate (it’s up to 4.68% for a 30-year fixed mortgage) and you’ll get a monthly mortgage payment (principal and interest).

Courtesy: Realtor Magazine