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