Tracey Howell :: Real Estate Info

Selling Is Stressful!

Tracey — Fri, 18 Jan 2008 19:32:58 GMT

There should be some kind of rule that says “Every Real Estate Agent must sell their own home once every couple of years.” I’m not kidding.
I am currently selling my own home and the stress is getting to me. First, the offer comes in and it’s a lowball offer. Immediately I don’t like the people who say they want my home. Then along come the home inspections. Ugh. Will they find that loose toilet? Will they write up my wobbly fence gate? Will they chastise me for not having my air conditioner serviced? And termites. Do I have those little buggers? Then we finally get the dreaded repair request from the potential new homeowners and they have asked for absolutely everything to be fixed. Heck, don’t they realize they are not buying a new home? My home is lived in. The carpet is a little worn and some doorknobs are wiggly. So what.
On the positive side of this, the process has served as a great reminder for me as a Realtor. I will have more patience with my clients and I can truly tell them that “I understand” what they are going through. The process of selling your home is full of stress from beginning to end, but an experienced agent can help alleviate some of that simply by relaying information and explaining the steps to a successful closing correctly.
So I say – find an agent that has sold their own home recently. It keeps us in touch with what our clients are going through. And it makes us better agents.

Got Mortage? Don'T Spend.

Tracey — Fri, 18 Jan 2008 18:58:05 GMT

So, you just put in a contract on a new home. The lender gave you a pre-approval letter and says he just got word from underwriting that you are good to go. Your closing is in 25 days. Your spouse wants new stainless steel appliances, some new furniture AND you need a new car. Stop right there – don’t spend any money on anything until after you close on that new home. Your lender got you qualified with your current debt and your current cash on hand. Any changes in those two things could throw your loan into the trash can. If the loan can be salvaged, the interest rate might go up.
It’s so nice to breathe easy once the approval comes in from the lender, and that’s fine. Breathe easy, but don’t buy anything. When my clients are insistent on spending money, I tell them to check with their lender before making any purchase over $500 prior to closing. It’s so tempting to buy those new appliances before the move, so they can be delivered on moving day. If your lender says OK, then you’re good to do that. But if he says to wait, wait. It’s not going to do you any good to have a bunch of new stuff for the house, and then find out you’re not able to get the house!
Mortgages are a little harder to get these days, so when you get approval for one, help yourself keep it by curbing your spending, at least until after the house is yours.

Use Your Mortgage

Ronnie — Thu, 03 Jan 2008 15:50:14 GMT

Yes, that is what I said! You may be wondering how you can use debt to create wealth.
The answer is that your mortgage on your home (primary or secondary), is like getting a coupon from the federal government. It is the only debt you have that gives you a rebate on your federal taxes. If you are in a 25% to 35% tax bracket, maximizing this benefit is a must. Unlike other deductions, your mortgage interest is not subject to the AMT, (Alternative Minimum Tax). Due to congress not indexing this to inflation, more and more of us are being trapped into the AMT. If you have a mortgage now and your rate is 6% your effective rate is 4.5%, (25% bracket), and 3.9%, (35% bracket). You can’t borrow money cheaper than that in today’s market. For example:

$300,000 mortgage, interest at 6% is $18,000 annually. Your rebate at 25% tax bracket is $4,500 or $375 per month. If you save this money over a 3 year term, at 5% rate of return, your net worth will be almost $15,000 or more, depending on investment.
Even Albert Einstein was amazed at the power of compound interest.

If you are buying a home, have a large down payment, and you are in one of the upper end tax brackets, consider the following example:

$500,000 sales price and you have $300,000 to use as a down payment. Instead, put $100,000 down on the home and invest the remaining $200,000. Using a conservative 3% increase in value of home, at the end of five years your home is worth $585,000. The same investment in a 5% municipal bond will have earned $255,000 in your savings account. You have two assets working for you instead of one and the return on your initial down payment is now $85,000 on the initial $100,000 down payment. Your home is not going to appreciate any faster if you put down $100,000 or $300,000 down at time of purchase.

We all have financial goals for our future: retirement, college for your children and taking care of our parents, just to name a few. You work hard for your money; let me help you make it work for you!

For more information or for a free mortgage analysis, please contact me, Ronnie Giberson at 704-887-5050 or visit my website at www.ronniegiberson.com. I look forward to working with you and helping you reach all your financial goals!

See A Mortgage Person First

Tracey — Thu, 03 Jan 2008 15:03:59 GMT

So, you’re moving to Charlotte and coming to spend a few days with me to buy a home. I have asked you to contact a mortgage person prior to your buying trip and will need a pre-approval letter before you hop in my car. You might think that I am being nosy, pushy or even rude, but this is necessary for many reasons. The first being this –why would I drive you around looking at other peoples homes without knowing whether or not you are qualified to get a mortgage? I’ll “take your word” that you’ll be here Saturday at 10AM, but I can’t “take your word” about the mortgage qualification. Most lenders can a letter done within an hour. Next, we’ll need to know the exact price range of homes we will be viewing. There’s nothing worse than to show you homes above your price range. If you get used to seeing granite countertops and tile floors, it’s really hard to step down to Formica and vinyl! And finally, most Sellers will require a pre-approval letter at the time you make an offer. When I represent the Seller, I don’t even begin negotiations until I get that letter AND call the lender. For yourselves, me and the Sellers, please get this done well in advance of your buying trip.

Market Still Good Here

Tracey — Sat, 08 Dec 2007 17:07:54 GMT

The Charlotte housing market is still good – and we have confirmation from several sources. According to the Standard & Poor index, we tied with Seattle for the largest increase in home prices for 2007. We are up 4.7%. Interesting, because overall, US housing prices fell 4.5%. Zillow is reporting gains in Charlotte of 8.9% during the last quarter of 2007 compared to the last quarter of 2006. I’m a little more trusting of the Standard & Poor index, but you be the judge. In both cases, our numbers are up, and I’m so thankful I’m not in Miami – they are reporting decreases of 11%!
Now for the not so good news. The market here has slowed down. It is taking longer to sell your homes and we are now getting used to seeing triple digit numbers for “Days On Market”. But so far, we are not seeing prices fall. There are many agents and mortgage brokers who are predicting a major slow down with price decreases for our area in 2008. We’ll check the numbers after the first quarter of 2008 and get that information out to you. If you are curious as to how your neighborhood is doing, shoot me an email and I’ll run the comps for you.

Be Prepared! It’s Not Only For Boy Scouts

Robert Allen — Mon, 03 Dec 2007 00:12:21 GMT

Having been a Boy Scout this motto was drilled into us at every meeting and event, I never realized until I reached Adulthood (Ok, some will argue that I’m still reaching.) just how applicable this is to every facet of our lives even when looking for a home and the subsequent financing most people need to facilitate the purchase. So in an effort to make you a better Scout as in scouting out a home let me dispense a little advise as to how you can be prepared.

Like any other journey it’s important to know where you are and where you’re going. One of the first things I would suggest it get a copy of your credit report from all three repositories. There are numerous companies that advertise Free Credit Report and most aren’t really free. The site I would suggest is www.annualcreditreport.com this is a government-sponsored site and will give you access to all three major reporting agencies and these reports are free. Again be prepared when you visit the site, as each agency will ask you numerous questions that only you will have the answers to. The only caveat is to get the credit scores from each agency there will be a fee; if having your score is important to you pay it but any mortgage professional worth there salt (They don’t really work for salt; some do trade in Bull) should be able to access it. FYI: Whomever the lucky lender is that gets your business will eventually have to pull one but until you choose make them use yours. The purpose of this is for you to review each report and check for accuracy. There is nothing more frustrating than having to get corrections on your report while the clocks ticking on a 30-day contract and these folks don’t move quickly. Once you’ve gotten any corrections completed insist that they re-score your file.

OK, work on your Credit Merit Badge and next time we’ll work on Income, Assets and how to tell the future. I the mean time help an old lady across the street.

The Last Boy Scout,

Robert W. Allen

R.W. Allen Financial Services, Inc.
Licensed Mortgage Lender
Toll Free: 1 800 440 9784 Ext. 21
E-mail: Robert@RWAllenFinancial.com
Web Site: WWW.RWAllenFinancial.com

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“new” Vs. "Existing" Home – How To Decide

Sun, 02 Dec 2007 23:56:28 GMT

Each has it’s own set of pro’s and con’s and only you can decide which is best for you and your situation.
In some cases, you can find a “new” home that is move-in ready. We call these spec homes. Most likely you will need to construct the home from the ground up. I have built 2 homes new and bought a spec home, and I have to admit that it is nice to have a home that no one has ever lived in. I have also purchased 2 existing homes and they had their advantages too.
With “New” homes, everything is new and comes with warranties. If the microwave blows or your toilet leaks, the builder comes back out to fix them. With existing homes, you’re on your own for any repairs. The new home should not require any major upkeep for a number of years. The existing home might easily need a new roof or air conditioning unit fairly quickly.
“New” homes tend to need lots of landscaping. The builders normally only put a few bushes out front leaving a naked backyard. Existing homes will have mature landscaping with much larger trees. The new homes in our area tend to be on very small lots, some only 0.12 acres. Many of the existing homes at least 5 years old are on much larger lots –0.3 and higher.
When you buy a “New” home, you are taking a chance that the neighborhood will continue to develop the way it is presented to you in the sales office. With an existing home, you can see the end results.
“New” homes don’t have any window coverings and it’s expensive to buy blinds for 32 windows! Existing homes almost always have window coverings in place. You might not like them, but at least you can shower and dress in privacy until you get them replaced.
Let’s not forget the time constraints. If you have a set date by which you need to move into your home, building a “New” one is probably not a good option for you. It’s very common for construction to run longer than promised. I’m being too kind here – it USUALLY runs over. If your timeline is flexible then you are in good shape to buy “New”. If not, buy existing.
If you’re looking at the home strictly as an investment, buy “New” and in the first phase of building development. You’ll have instant equity by the time you occupy the home in most cases. This is due to the fact that builders tend to raise prices as they go further along in developing the neighborhood. An existing home may take longer to increase in value, but that is not always the case. Your real estate agent can help you decide the best choice for you.

Why Do I Need An Agent When I'M Buying A "New" Home?

Tracey — Mon, 26 Nov 2007 18:45:25 GMT

Because you need representation.
Don’t ever forget that the sales agent sitting in the model home represents the builder, and only the builder. In fact, he or she will have you sign paperwork stating that fact. Only your real estate agent acting as your “Buyers Agent” will represent your interests.
Many people believe they will get a better price for the home if they don’t bring an agent. This is not true in our area. Builders here will rarely reduce the price for you because they depend on agents to bring them new business. Many builders even offer substantial bonus’s to agents to show their gratitude. I have had clients try to negotiate a better price before bringing me into the deal and they have always been told that there would be no difference in price.
As your agent, I can help you to determine whether the lighting allowance is reasonable and which options will bring more value to your home. I can help you figure out if the $2,000 in closing costs they offer are worth you using their preferred lender. Answer: usually not. But when they offer $4,000 or more in closing costs, it’s worth looking into.
Some builders will negotiate on price and some won’t. As your “Buyers Agent” I can pull the neighborhood sales prior to making an offer to make sure the price listed is in the right ballpark. Sometimes we can get extra options thrown into the deal if the builder will not negotiate on the sales price. Heck, in December we can get a lower price AND more options just to help the builder reduce his inventory.
Your Buyers Agent (me) will be with you through every step. You’ll have to navigate through design center meetings, walk-through’s, inspections, lender issues and finally, the closing. Isn’t it nice to know that I will guide you through all of this?

Get Rid Of Pet Odor Please!!!

Tracey — Mon, 27 Aug 2007 19:38:28 GMT

When I bring a Buyer to your home the last thing we want is to smell your pet(s) as soon as we open the front door. I know you love them, and they surely don’t smell bad to you, but what a turn off it is to the potential Buyer. A particularly smelly dog crated in the laundry room next to the kitchen can be a huge turn off. Thank you for not letting your dog roam the house, but please give Fido a bath. Likewise, the smell of your kitty’s litter box is never pleasant. One of my favorite’s is the cat that won’t use the litter box and relieves himself anywhere but. I am currently looking to buy another house for myself and I have a son with a severe cat allergy. We went into a home this week that had cats and within 10 minutes he was sneezing. I mentioned this to the listing agent and she informed me that the Sellers had cleaned the carpets the week before and that she could not smell it, and, the cats had been gone for 2 weeks. The odor smacked me in the face as soon as I opened the door! We marked this one off our list.
Don’t let this happen to you. Be vigilant and keep your home odor free. Happy Selling!

Know What Your Home "Needs" Are

Tracey — Mon, 27 Aug 2007 19:34:03 GMT

So you’re moving to the area and want to buy an awesome home – great! But before we ever plop down in my car for a touring trip, I need some direction from you. We’ll spend some time talking about your “Needs vs. Wants” prior to your first trip out. With 1,000’s of homes on the market here, I need to whittle down the list of potential’s to show you. We’ve all gotten stuck with the real estate agent who shows you a 3 bedroom home when you’ve clearly stated your need for 4. Or better yet, they show you houses above your price range! I will never do that. Your time, and mine, is much too valuable to waste.
The most important things I need to know are obvious: the price, area, number of bedrooms, size of garage, and the type of neighborhood you want to live in. Do you want a golf course, community pool or tennis courts, country club, or do you want to live on or near Lake Norman? Spend some time with me on the phone before your trip, and I know we’ll find the right home for you, and even leave you some extra time to get to know the area.