Why Rent when you can Purchase your home with no money down - find out about grant money available from the Government.

In this time where we hear how difficult it may be to buy a home, there is some good news that you may not be aware of. Through community grant assistance, you may be able to purchase a home with no money down and ask the seller to pay your closing costs. Owning your home can not only be a great investment, a sense of fulfilling accomplishment, and a wonderful way to take advantage of many tax write offs that are still allowed by the IRS. http://www.irs.gov/publications/p936/ar02.html Many lenders are now offering through federal grants, money that does not need to be repaid, $7,500 to first time home buyers or buyers that have not owned a home for at least three years. There are income stipulations and all normal verifications apply. http://www.villagebankmortgage.com If you would like more information on how you too can realize the satisfaction of owning a home rather than paying rent to your landlord, give us a call. http://realestate.yahoo.com/info/guides/buying-vs-renting

As Broker/Owners of Resource Realty in the Hanover County of Mechanicsville, Virginia, we truly welcome the opportunity to work with buyers that can take advantage of this little known government program. It is as rewarding for us as it is for the buyer who is able to turn the key into their home for the very first time. Finding out how the program works is really as easy as a simple phone call!

We look forward to working with you!

Compliments of: Kathy Holland, Broker/Owner

Resource Realty Services

Summer Time Home Maintenance Issues

Summer is finally here. That is good news for all of the kids who have worked so hard in Hanover, Henrico, Chesterfield, King William and surrounding local schools over the last nine months and a great break for all of us who like to have the daylight for as long as we can. Your home and yard however, can experience some high risk issues during this time. The rising cost of fuel is making it harder and harder to pay bills for the average family. The last thing you need is the expense of replacing a mechanical device in your home, or having to redo a yard that has taken time and money to get lush and green, or have structure damage due to wood destroying insects. Many of my clients have a service contract with local companies to help avoid some of these possible catastrophes. For example, most heating and air companies will do a yearly service contract which will state that they will come out twice yearly and inspect and service your unit. How many of us do not take time to change the filters? Most HVAC contractors will say that is the one thing that will extend the life of your unit and many homeowners do not take time to do this. This maintenance contract will also ensure that this is done. Obviously, you can get a unit fixed if it breaks – but having a service contract may prevent a problem before it becomes one. Also, in the hot days of the summer, you may have to wait two to three days to get your unit repaired. That will seem like weeks if the temperature is 100 degrees! You can also have a monthly yard maintenance contract for a minimal fee. This takes the guess work out of what to do when to keep your lawn vibrant. If you are a “do it yourself” kind of person, Scotts has a great program on their website or on the back of any seeding, fertilizing, or stabilizer bags. If you follow that and keep your yard watered you should have success! If you are spending time and money on your yard, you may want to consider a sprinkler system. It doesn’t seem to matter how much money or energy you put into your yard – if you do not have the ability to keep it wet, you will not enjoy success. You can also obtain a yearly maintenance contract from a local pest control company. In our hot and wet climate here in the Richmond, Hanover, Mechanicsville, Henrico, Glen Allen and King William, Virginia areas, termites and mold have become an ever increasing problem. A termite contract may help prevent structure damage from infestation over time that unfortunately the average home owner doesn’t find out about until damage has been done. This contract is minimal and inspections are done once yearly. The good news is that it comes with a warranty in the event that you do get termites during this contract – the company will cover the treating and damage costs associated with the infestation. If you are interested in obtaining information on how to contact any company about maintenance contracts, please give me a call.

Compliments of: Kathy Holland, Broker/Owner

Resource Realty Services

The importance of obtaining a home warranty – When & How to get one

Did you know that more than 50% of the purchase contracts that we write in the Richmond, Hanover, Henrico, Glen Allen, and King William, Virginia area now have a home warranty included? For homes that are more than ten years old that number goes to 75%. Warranty pricing ranges from $350-$450 which covers you for one year and coverage varies. Most home owners feel it is a small price to give some security particularly for the “big” ticket items such as heat pump units, air compressors, water heaters and many appliances. You can ask that a seller pay for the warranty at closing as part of their closing cost or you yourself as the buyer can purchase it. In most cases, the seller has the cost figured into their pricing structure when they determine what price to list the home for. If the home you are buying is more than ten years old, I would recommend that you ask the buyer to pay. If you do not that is $400 to the good they have pocketed and can deduct from what they thought would be part of their expenses at closing. In fact, the only time that I would not ask that a seller pay for a warranty is if you are competing with other potential buyers. In our previous market, this would have been the case – not so much anymore!! Did you know that you can purchase a home warranty at any time? It may cost a little more but even if you have been in your home for years, you can still buy this warranty. You can also renew your warranty after the initial one year has expired. Most warranty companies will send you a reminder with the new pricing structure when your year is almost up. It is VERY IMPORTANT that you know how to use your warranty if an when the time comes that you need it. YOU MUST place a call to the (800) number on your warranty certificate and go through the warranty company for service calls. If you call a contractor out on your own it will not be covered. They usually have a company call you within (48) hours to repair your item. Most of the work that I have heard about is good – with few exceptions. Be vigilant. If you continue to have the same problem – insist on getting a second opinion and lobby to have the item replaced and not just repaired. A home warranty is money well spent if you use it right!! Feel free to call me if you have any questions about a warranty you currently have in place or if you may be interested in finding out how to purchase a new home warranty. At Resource Realty, The Sister Team of Kathy Holland & Cindy Strobel pay for the home warranty of purchasers who purchase a home with them.

Compliments of: Kathy Holland, Broker/Owner

Resource Realty Services

Flipping Investment Property as easy as 1-2-3

Are you interested in seeing how you might fare in investment or fixing up distress property and flipping it for sale at a profit? Have you been contemplating getting into that business and just don’t know where to start? Are you a real estate professional that has helped other investors and wonder why you haven’t been doing the same thing yourself? If you are a real estate agent and have been in the business with some and not a lot of cash I can show you how to make the investment business work for you. In fact, you should look at your investment flip portfolio in the same way that you view prospecting or listing clients. You will learn that over time it will even become more important in your real estate success! You will see that it takes very little money and definitely no construction labor on your part to make this enterprise successful. You will immediately see how to use your investment properties to make investment money and make your real estate business grow. How do you do this? We use a four pronged approach. The good news is that currently there is an over abundance of properties to choose from in the Richmond, Henrico, Hanover, Chesterfield, Mechanicsville, and King William areas of Virginia. You can buy low and with little fix up sell higher and faster than your competitor because of the extra “touches” that you put into the property. Refer back to my investment blog and feel free to contact me and I will send you information on how to get started. My email address is Kathy.Holland@YourResourceRealty.com . I look forward to helping you enjoy the successes of investment flipping.

 

Compliments of: Kathy Holland, Broker/Owner

Resource Realty Services

Buyers, Now is the Time to Buy

If you are a first time home buyer or a purchaser that does not need to sell your home in order to “cash out” funds to make your next purchase. If you are a home owner that has extra funds and had thought about investing in a 2^nd home, a fixer upper or a River home now is the time for you to act. In case you have not heard, inventory in the Richmond, Henrico, Hanover, Glen Allen, King William, and Chesterfield Virginia areas are at an all time high. The Association of Realtors has reported that there is more inventory on the market than there has been in the last six years. Housing in this Central Virginia market for the first time in four years has not seen an appreciated increase but rather a decrease in market value. Sellers are having to make deals unheard of just a year ago. You as the buyer have the upper hand. Mortgage rates are consistently hovering in the 6% range and although the days of the no document or no money down loan are gone, if you have decent credit you can still buy a home. Why? because sellers are willing to pay your closing costs for you if you do not have the money! I encourage you to stop paying rent or if you have been waiting to see what the market is going to do and you do not have to sell act now before the market takes the gradual and inevitable turn it will take. Forecasters have already started to see an upswing in pended sales over the last two months. Get in now low and start accumulating equity and enjoying all of the benefits of home ownership so that if and when you are ready to move sometime in the future you too can realize the great appreciation profits that other home owners did three years ago. If there is anything constant in real estate it is change! Our industry is a cyclical market it always has been and always will be because so many factors influence our industry. You can view all listings in the Central Virginia Richmond and surrounding counties of Henrico, Hanover, Chesterfield, King William areas on my website at www.YourResourceRealty.com Don’t wait! Take advantage of this great opportunity to stop making the investor of your current residence rich and enjoy all of the benefits available to you from your own home ownership. I will gladly assist you in any way I can. If you are interested in talking with a loan officer to see what you may qualify for just send me an email with your contact information and I will forward that to a qualified Mortgage Loan Expert with knowledge of 200+ loan products. That email address is Kathy.Holland@YourResourceRealty.com . I look forward to hearing from you.

Compliments of: Kathy Holland, Broker/Owner Resource Realty Services

Is There a Reason to Change Real Estate Firms – It May Change Your Career

Do you sometimes feel like your real estate career is going nowhere? Do you feel like just a number at your current real estate firm? Do your brokers set quotas or unreachable expectations? Do you feel that you are continually fighting for listings/sales within the brokers and salespersons within your firm? Are your sales not where they have been in the past? Do you feel that your brokers do not share with you the tools that have made them successful? Are you losing out on potential sales because of the reputation of your firm? Being a Realtor can be and should be the most rewarding occupation that anyone could have. You are entrusted with the most valuable asset that most consumers will acquire during their lifetime. A properly trained and equipped Real Estate Professional will not only provide their client with the data to make an educated investment in real estate; but they typically make a true acquaintance for life. Successful agents find a way to have past clients work for them and build their client base. There is a distinct difference between a Real Estate Salesperson and a Real Estate Professional. Keeping your clients informed with what is happening with market conditions and trends should be part of your everyday agenda. To do this, you must have the tools in place to keep in touch with your clients. Don’t be the one that pads the statistics that state most people do not remember who their real estate agent was 3 months after the transaction. There are many tools available to turn you into the Real Estate Professional. With the number of agents in the Richmond, Virginia and the surrounding counties of Hanover, King William, Henrico, Chesterfield Powhatan Caroline and other surrounding localities of Richmond, Virginia, you must rise above the rest. Make sure to join a team that shares the same work ethic and values that you have. I will give you two tips and in addition, I look forward to hearing from you if I can go into further detail on how selecting the right firm can make the difference between having a successful and rewarding real estate career vs. a flailing, lackluster and unrewarding and short lived real estate adventure. Tip 1. Don’t allow yourself to get too high or too low during the real estate process. Stay on an even keel and you will do yourself and your client well.

2. Never feel that you have to hide from anyone in the grocery store. Remember, do one good thing for a client and that client will tell another person about you. Do one bad thing to a client, and that client will tell dozens of people to stay away from you! Do what you say you will do when you say you will do it! Don’t do things that will make you not want to face that client at a later time…

Compliments of: Kathy Holland, Broker/Owner Resource Realty Services

Real Estate Smarts – Sounds A lot Like Buying Stocks and Diversifying Finances

Investors! Now is the time to buy rehab, distress and fire sale property in the Richmond, Mechanicsville/Hanover and surrounding localities. For several reasons, not the least of which is the product of our current real estate market in Richmond, Virginia and the surrounding counties of Hanover, King William, Henrico, Chesterfield Powhatan Caroline and others, many sellers are getting anxious to move their property. In many instances, there exists a domino effect. If the seller can’t move their existing residence, then they won’t be able to purchase the property that they currently have under contract. You may not have to settle for property that needs quite a lot of work. For the same price per square foot that you are accustomed to paying for distress property, you may find that “desperate” seller ready to “move on”. Your portfolio should consist of some rehab and flip properties as well as some buy low and keep properties. In this way, you can flip properties to obtain much needed liquid cash while at the same time holding on to your investment. Some investors choose to refinance and cash out their holdings every three years. This too, gives you liquid cash while continuing to own the property. In doing this, the investor is counting on the appreciation rate to remain steady over the long haul. If you do purchase with the intent of rehabbing and flipping, spend your money wisely. Doing little things can pay big dividends! One little tip – spend money on polishing placing knobs on cabinets. Most of you savvy investors already know and for those of you just getting started you must buy when the market is down (like now) and you must diversify your holdings. (some that need minor cosmetic help, some properties that need major structural repair, and some that are just great buys that you can rent) For those of you reading this that are just starting to “dabble” in this arena – congratulations! After you have done a few, consider taking the next step and get your real estate license to take full advantage of all benefits available with investment property. Visit my blog to read about what you should be looking for in a real estate company. Thanks for reading this article. If I can help in any way, please do not hesitate to call me Kathy Holland at Resource Realty Services (804)559-5990.

Compliments of: Kathy Holland, Broker/Owner

Resource Realty Services

What a Great Market for First Time Homebuyers or Non-contingent Buyers in Richmond, Virginia and Surrounding Areas - BUY

Are you a first time homebuyer? Are you a buyer that can purchase a home without having to sell a current residence to proceed forward with your purchase (1^st right of refusal)? If the answer is yes to either of these questions, PLEASE TAKE NOTE! Now is the time for you to act. The market in the Richmond, Virginia and the surrounding counties of Hanover, King William, Henrico, Chesterfield Powhatan Caroline and other localities is currently inundated with ‘stale” properties. Sellers are dropping prices like we haven’t seen in years. Buyers are getting all closing costs paid by the seller, incentives such as decorating allowances, association dues paid for at least a year – just to name a few of the incentives. If you are interested in new construction, take advantage of your strategic position. Builders are ready to move inventory. You can help! These same builders are giving thousands in free options for you buyers that can buy there spec home without any contingencies and take it out of their inventory. If you have good credit, you may be surprised about how easy getting a mortgage can be. With the closing costs being paid by the sellers, in most cases, you may find home ownership to be a better financial proposition than renting. You can likely get into a home with no money and find your mortgage payment lower than what your rent payment is currently. By renting, you are merely helping your landlord deepen his pockets. Your landlord is holding on to valuable real estate which is appreciating annually while you are making the payment. Worse, you are not taking advantage of most tax write off incentives available to you with home ownership. Consult your tax advisor for more information on the benefits available to you. I am happy to answer any questions you may have regarding purchasing your first home or helping you obtain any property.

Compliments of: Kathy Holland, Broker/Owner

Resource Realty Services

Curb Appeal

Whether you are selling your house or want “passer bys” to take notice, you want your yard and front of the home to look well kept.

Always have a wreath on your front door. It helps you home look inviting and “homey”. Make sure your front lights and lamp post have working light bulbs.

The other thing is to make sure your lawn is cut and all weeks are out of your flower beds. Make sure you have fresh mulch. There is mulch out now that is die to ensure the deep color last longer. Check with your local provider in Henrico, Mechanicsville, Richmond or surrounding areas where you live.

Do these things and your see your neighbors take notice in Richmon, Virginia and surrounding areas!!!!

Compliments of: Cindy Strobel, Broker/Owner

Resource Realty Services

Richmond, Virginia and Surrounding Areas Market Snapshot for the Month of March, 2008

Are you interested in what is happening in your next of the woods? Here is data for the month according to the Richmond, Virginia Association of Realtors.

AREA NEW UNDER SOLD AVG SOLD %SP/

LISTING CONTRACT PRICE LP

22/Richmond 208 87 53 $297,991 95.96%

24/Goochland 73 24 17 $828,845 93.82%

32/Lakeside 86 35 25 $199,115 98.15%

34/Glen Allen 214 81 59 $344,993 97.26%

36/Hanover 117 45 22 $394,711 94.37%

43/King William 55 11 14 $194,492 97.37%

44/Mechanicsville 133 41 20 $265,635 97.56%

As you can see, the trend is an upswing of homes under contract. We are seeing more positive market condition!!!

Compliments of: Cindy Strobel, Broker/Owner

Resource Realty Services

Off to College

As Spring approaches, High School Seniors are thinking about college. Whether your child will go away or go to a local college like VCU in Richmond, Randolph Macon in Ashland, or J Sergeant Reynolds in the Glen Allen area, you may find yourself with an empty room.

One school of thought (no pun intended) is to leave your child’s room just “as it is”-so when your child visits they will feel like they never left. The other school of thought is to convert the room for your use-your child has moved on and started a new phase in their life and will not be needed in its present state.

You can convert the room to a “hobby” room such as craft, sewing, or music room. Also, you have an opportunity to get in shape with a room for exercise equipment.

No matter what you do, always keep a daybed on hand for those future visits!!!

Compliments of: Cindy Strobel, Broker/Owner

Resource Realty Services

Richmond, VA and Surrounding areas Market Snapshot for the Month of February, 2008

 

Are you interested in what is happening in your area? Here is data for the month according to the Richmond, Virginia Association of Realtors.

AREA NEW UNDER SOLD AVG SOLD %SP

LISTING CONTRACT PRICE LP

22/Richmond 189 77 56 $313,421 97.07%

24/Goochland 65 20 11 $222,766 98.98%

32/Lakeside 81 39 18 $209,805 96.67%

34/Glen Allen 201 89 47 $415,799 98.57%

36/Hanover 89 45 21 $307,840 97.11%

43/King William 55 25 9 $229,532 97.00%

44/Mechanicsville 112 50 32 $265,028 97.77%

As you can see, the trend is an upswing of homes under contract. We are seeing more positive market condition!

Compliments of: Cindy Strobel, Broker/Owner

Resource Realty Services

Investment Property Do’s and Don’ts

Are you an avid real estate investor? Do you have some extra disposable income and have been exploring the possibility of doing some rehab houses? Are you a realtor that is looking to take the next step and advance your real estate career? Are you a past investor that got out of the business because you were not making the margins you expected? If the answer to any of these questions is YES, then read on.. When looking for an investment property –there are several questions to be asked. First, do you want a minor cosmetic fix up or a major renovation? This answer usually depends upon the skill level of the investor and/or his/her contractors, the time that the investor wants to put into it, how many current properties are outstanding in his/her inventory, and how much profit you wish to make. For instance, many investors now do very little of their own work. Ideally, they hire contractors that will guarantee a low rate due to the volume of work that will be provided. You may be thinking that if you hire the work out you will not make as much money. FALSE. This is called working smarter and not harder. You can treat your investment/rehab business like a general contractor new home business. When is the last time you have seen Mr. Builder Class A Contractor swinging a hammer, nailing a two by four and walking on the roof to place sheathing? If he is a profitable builder, I will submit to you the answer is NEVER. Your time can be more wisely spent pursuing the deals, determining when and what to buy, and directing the subs to ensure timely completion of the work. Obviously, the major renovation will be more time consuming but the margins will be greater. This poses the next question. Are you better doing five large projects and making $100,000 or doing ten little cosmetic fix ups and making $100,000? If you are just an investor, then the answer is probably you don’t care. If you are a realtor who also happens to be an investor, the answer should most certainly be TEN FIX UPS. Why you ask. That gives you five additional properties with which to gain commission on its purchase, pick up many, many clients upon its return to the market, and save commission upon its sale. If you are a Realtor/Investor your profit mentality must be different than your Investor. Your visibility in the investment market also helps to add to your visibility as a realtor both for prospective buyer/sellers and also to assist prospective investors. Remember, there is enough investment property to go around. You must have an ongoing relationship with your local bank. A line of credit should be established to give you the ability to purchase property for cash. Yes, CASH.. this word speaks volumes for a seller who usually is in financial disarray, which is why their home got in the condition it is currently in. Your bank may even, depending upon your credit situation, offer to give you fix up costs rolled up in the loan amount so that you are out of pocket virtually nothing initially. A frank discussion along with a well documented business plan with your background should be provided to your lender. Don’t be afraid to ask for purchase money and fix up money for all of your purchases. The other thing to consider when buying is whether or not to do a home inspection. They are just about useless for distress property. If you are an astute contractor or investor, a thorough look at the property should give you what you need to make a viable offer to purchase. NO INSPECTION AND CASH WITH A QUICK CLOSING usually will seal the deal.

If you are not a realtor, you should think strongly about getting your license. You are leaving money on the table that could add to your margins if you could represent yourself in the transaction. There is a whole different section on the pros and the reasoning on whether or not to pursue differing properties if you are an agent. If you choose to use a realtor, select them wisely. Use one that is familiar with investment property. They can provide an abundance of information from areas to buy where properties sell quickly to where to spend your money in fix ups - What really matters to the consumer. Contrary to what you may think or have heard, this market is a great investor market. You can buy low now due to the slowdown in the market and the increased inventory. It is imperative that you spend your money wisely on rehab – your house has to really stand out among the others on the market. It is also wise to choose an agent that is innovative with technology to give you the edge over all others that have listings similar to yours on the market. Most importantly, if you are going to do investment property you must have a strong gut. You can’t second guess your decisions and definitely can’t get antsy if a property stays on the market longer than expected. Remember, you will have more gains on some properties and more losses on some. The measure of success of the real investor is minimizing losses, and maximizing profits with inherent risks. This is done over the long haul. If you would like more information on investment property, or how to become a Realtor/Investor, please contact me.

Compliments of: Kathy Holland, Broker/Owner Resource Realty Services

How To Become A Successful Agent In Richmond, Virginia

 

Are you an agent struggling to gain market share in this ever changing real estate industry? Are you aspiring to possibly join the real estate market as a new agent? Here are some tips that will help with both scenarios. First, if you are already in Real Estate and are treating this as a sales business – STOP!! If you haven’t yet become a realtor get the word sales completely out of your mind. This is the biggest misnomer involved in our industry. If you do not remember anything else, please make sure that you consider yourself a service provider and not a salesperson. A client/customer does not buy a home because you “sold” it to them; they decided to make and offer due to the fact that it meets their criteria and that you have provided them with quality, pertinent data to ensure that they have paid market price or less. This approach will ensure that you create relationships and not deals. Relationships will result in more sales through means of referrals. Referrals, do not forget this word, as it is the means to the end!! The second biggest thing to remember is that referral sources, past clients and your network of people, will make your business grow. Third, listings are the fastest way to grow your business. What is the one thing, among others, that this should tell you? Do not become a buyers agent!! Yes, you may receive some portions of commissions when working for an agent or team as a buyers agent – but you typically only take a portion of what is due for commission and you absolutely do not build your database since the team leader keeps the clients names in their database. You can build your database by doing open houses for listing agents (as long as it is understood that you keep any buyer prospects that come through) Fourth, you must invest money in branding yourself. Remember, you are starting and/or trying to increase market share with a brand new business (you!!) You act as an independent contractor is most cases – so you are really on your own. Set a budget. In your first two years, you should set aside at least 18% of your sales commissions to go back into brand advertising. If you have little to no sales, assume a figure of $50,000 and borrow or ask your broker if they have an agent marketing expense account that they might front the cost and you pay them back on your next commission check. Fifth, choose your broker company wisely.. The old adage that you are “judged by the company you keep” could not be more true in Real Estate. Choose a reputable company with agents that treat people the way you would want to be treated. Make sure you select a company that is innovative and moving forward with technology – as it is the wave of the future. This does not mean a national company, necessarily. In fact, this is the second biggest misnomer. Real Estate is a service and relationship business between you the agent and the client. It truly doesn’t matter whether you are an agent in a company with (5) licensees or (500) licensees. There are numerous advances in technology that some small companies are using. This helps to move real estate quickly. The question is simple, have you provided the data required to make a sound judgment decision on a piece of real estate for your client? Lastly, be honest and forthcoming. This is not rocket science; but it is in most cases the most important decision for a prospective client. Use care, and compassion when working with your client. Work hard!! You get a nice paycheck; and the knowledge and service you provide to a happy client is crucial to determining how many more of those you get from referrals from that satisfied client. Remember, if you do a good job, hopefully that person will tell many more people about you. If you do a bad job, guaranteed that person will tell everyone they know about you. Happy Selling!! If you would like more information on how to become a successful agent, please contact me.

Kathy Holland is the Owner of Resource Realty, A full Service Real Estate Broker located in Mechanicsville, Virginia.

Six Simple Things You Can Do to Ensure a Smooth Home Purchase

Six Simple Things You Can Do to Ensure a Smooth Home Purchase

Buying a home can be an emotional, time-consuming, and complex process. There are a few things that you can do to help make the process go as smooth as possible:

1. Check your credit.
Before you apply for a home loan, regardless of your credit, it's a smart idea to obtain a copy of your credit report from the three major credit bureaus and review the information. If there are errors or things that need to be addressed, it's easier to address them before you have found a house, than after you have found a house and are trying to close your loan.
If you know that there are a few blemishes on your credit, let your lender know what they are, why they are there, and why you are a still good credit risk. Lenders look at your credit to determine how likely you will pay back the loan. If you had extenuating circumstances - like a loss of a job or medical bills - let them know so that they understand that it is not likely to happen again in the future.

2. Get approved before you buy.
An approval means that a lender has reviewed your credit history, verified your assets and employment, and has approved your loan before you have found a home to purchase. As long as the home appraises for at least the purchase price, the loan should close.
Getting approved also gives you an advantage over other buyers. Your firm approval makes it easier for you to negotiate on the price of a home, than a person who is not approved or is pre-qualified.
While getting pre-qualified may sound official, it is really just getting an idea of what you can afford. Its having a person plug in a few numbers that you give them - your monthly income and your monthly debt - and getting an approximate payment calculated. From the payment, the calculator can approximate the house price range that you can afford. No information is verified. Because your assets, income or credit is not verified, a pre-qualification has little value when purchasing a home.

3. Find a great buyer's agent.
Traditionally real estate agents represent the sellers in a transaction. When you are not working with a buyer's agent, they are less likely to negotiate the best price or contingencies for you.
A buyer's agent's job and fiduciary responsibility (meaning legal duty) is to you, the buyer. Before working with an agent, establish if they are a buyer's agent or a seller's agent. After spending a lot of time with a Realtor, it's natural to feel like you're a team. But if they are not negotiating for you, then they are not on your team.

4. Learn about the neighborhood.
Often times the house you find may be in a neighborhood that you're not familiar with, which is ok. It just means that you'll have to do a little more research. If you find a house that you like, ask for a list of the neighborhood properties that sold in the last year. How does your home rank? Is it at the top of the price range? If so, it might be hard to resell. Is it average or on the low end? If so, great - as the other home prices go up in value, they will pull your home's value up as well.
Check out the schools - are they sought after? A good school district means your neighborhood will always be valued by families which is a great reassurance to purchase, not to mention the value-add if you have school-age children.
Next, contact the police station and obtain crime statistics? Are they acceptable to you? Sometimes, if they won't give them to you, it could be a cause for alarm.
Talk to the neighbors. The more people you talk to, the better sense you will get of who makes up the neighborhood and how they will effect your time spent in it.
Check out the location of the shopping, police and fire stations, schools, and air traffic overhead. These are all things that might affect your property value or quality of your life.

5. Protect Yourself.
Ask your Realtor for a copy of the documents you will be asked to sign if you decide to buy the house. Read them ahead of time so that you'll understand the questions that you will be asked, the things you need to know, and the decisions you will need to make.

6.) Have reasonable expectations.
There is a lot of money at stake. No house is perfect. Understanding and remembering these two statements will help diffuse the negotiation stage, the inspection stage and the closing stage.
Emotions are high for both buyers and sellers. - The seller may have loving memories and years of sweat equity in the house. Maybe they are being relocated and don't want to go. Understanding their motivations for selling will help you appreciate their situation and predicament during these emotional times.
There is a lot of money at stake for all the parties involved (and that includes the realtors) - Just remember that market value (the value of a home) is the price that a willing buyer and a willing seller can agree to. If you can not agree on a price, ask yourself: Is there something you missed? Are there comparables that support the price that they want? Are there motivations that might factor into the price they are demanding? In the end, does it matter? What is the house worth to you today and what do you think you can reasonably sell it for based on the amount of time you plan to spend in it? Think about the answers to those questions before you make your move.
No house is perfect - Always get an inspection. It might be a few hundred dollars, but it's worth it. It's the inspector's job to find any problems with the house that could cost you thousands to repair down the road. Some inspectors have a tendency to over play the importance of their role and the items that they find. Get objective opinions that you trust before making a decision on an inspection report. Likewise, if an inspector says a foundation is cracked but its nothing to worry about - get a second opinion. Ask a handyman for an idea of how much repairs will cost and how complicated they are. The home buying process is an emotional, complex and time-consuming process, but it is worth it. Nothing compares to owning your own home in a neighborhood that you chose.

Compliments of: Cindy Strobel, Broker/Owner

Resource Realty Services

Thinking About Buying Your First Home?

Thinking About Buying Your First Home?

Many renters are starting to think about purchasing a home of their own. Several factors should be considered when purchasing a home:

How long you plan to live in the home.

If you purchase a home and get a job transfer or decide to move after only a short time, you may end up paying money in order to sell it. The value of your home may not have appreciated enough to cover the costs that you paid to buy the home and the costs that it would take you to sell your home.
The length of time that it will take to cover those costs depends on various economic factors in the area of the home. Most parts of the country have an average of 5% appreciation per year. In this case, you should plan to stay in your home at least 3-4 years to cover buying and selling costs. If the area you buy your home in experiences an economic up turn, the length of the time to cover these costs could be shortened, and the opposite is also true.

How long the home will meet your needs.
What features do you require in a home to satisfy your lifestyle now? Five years from now? Depending on how long you plan to stay in your home, you'll need to ensure that the home has the amenities that you'll need. For example, a two-bedroom dwelling may be perfect for a young couple with no children. However, if they start a family, they could quickly outgrow the space. Therefore, they should consider a home with room to grow. Could the basement be turned into a den and extra bedrooms? Could the attic be turned into a master suite? Having an idea of what you'll need will help you find a home that will satisfy you for years to come.

Your financial health - your credit and home affordability.
Is now the right time financially for you to buy a home? Would you rate your financial picture as healthy? Is your credit good? While you can always find a lender to lend you money, solid lenders are more skeptical if your credit history is not good. Generally, a couple of blemishes on a credit report will make you a good credit risk and could qualify you for the lowest interest rates. If you have more than a couple of blemishes on your report, lenders like Quicken Loans may still provide you with a loan, but you may just have to pay a higher interest rate and fees.
Some say that you should refrain from borrowing as much as you qualify for because it is wiser not to stretch your financial boundaries. The other school of thought says you should stretch to buy as much home as you can afford, because with regular pay raises and increased earning potential, the big payment today will seem like less of a payment tomorrow. This is a decision only you can make. Are you in a position where you expect to make more money soon? Would you rather be conservative and fairly certain that you can make your payment without stretching financially? Make sure that whatever you do, it's within your comfort zone.
To determine how much home you can afford, talk to a lender or go online and use a "home affordability" calculator. Good calculators will give you a range of what you may qualify for. Then call a lender. While some may say that the "28/36" rule applies, in today's home mortgage market, lenders are making loans customized to a particular person's situation. The "28/36" rule means that your monthly housing costs can't exceed 28 percent of your income and your total debt load can't exceed 36 percent of your total monthly income. Depending on your assets, credit history, job potential and other factors, lenders can push the ratios up to 40-60% or higher. While we're not advocating you purchase a home utilizing the higher ratios, its important for you to know your options.

Where the money for the transaction will come from.
Typically homebuyers will need some money for a down payment and closing costs. However, with today's broad range of loan options, having a lot of money saved for a down payment is not always necessary - if you can prove that you are a good financial risk to a lender. If your credit isn't stellar but you have managed to save 10-20% for a down payment, you will still appear to be a very good financial risk to a lender.

The ongoing costs of home ownership.
Maintenance, improvements, taxes and insurance are all costs that are added to a monthly house payment. If you buy a condominium, townhouse or in certain communities, a monthly homeowner's association fee might be required. If these additional costs are a concern, you can make choices to lower or avoid these fees. Be sure to make your realtor and your lender aware of your desire to limit these costs.
If you are still unsure if you should buy a home after making these considerations, you may want to consult with an accountant or financial planner to help you assess how a home purchase fits into your overall financial goals.

 

Compliments of: Cindy Strobel & Kathy Holland - Broker Resource Realty, Mechanicsville, Virginia, Brokers/Owners Resource Realty Services

STAGING YOUR HOME FOR SALE

First impression is EVERYTHING!!! In today’s competitive home selling market, you need all the edge you can find to sell your home quickly and painlessly. Home Staging is proven to be the easiest and most effective way to sell you home for the most money in the Hanover, Mechanicsville, Richmond, King William, Chesterfield, Highland Springs areas.

In as little as one day, you can transform that “just another house on the market” look to a fashionable, one of a kind home that will grab the eye and make prospective buyers want to live in it!!!

According to Jill Bartley of “Expert Home Stagers of Hanover”, a home that has been staged properly will sell 40% faster than a home that has not been staged. The cost of professionally staging your home is significantly less than the difference between asking price and that first offer. Professional home staging increases potential buyers by up to 80%. The average increase in selling price of a professionally staged home versus a non-staged home is 6.9%. In this market of home staying on the market long, the average time on the market for professionally staged home is 11 to 22 days.

WHEN YOU ARE READY TO SELL THINK ABOUT STAGING, IT MAY SAVE YOU MONEY!!!!

Compliments of: Cindy Strobel, Broker/Owner

Resource Realty Services

August 6, 2007 Current State of Mortgage Financing...What's Going On?

August 6, 2007 - Current State of Mortgage Financing...What's Going On?

Anyone watching or reading the financial news over the last few days and weeks has seen a lot of angst and consternation over the state of the mortgage industry. In fact, one of the larger lenders in the US, American Home Mortgage, was forced to shut down operations last week. But why? What is happening, and most importantly, what does all this mean to you? Let's unpack the definitions and details, so that you really understand the truth behind the headlines.

Over the past several years, many loans were made to homeowners with somewhat non-traditional or "non-conforming" situations, be it a poor credit history, inability to document income, or any number of factors that do not fit within the traditional "box" for home loans. These loans are often called "Sub-Prime", or "Alt-A", meaning that they were somewhat riskier in nature than A credit, prime, or traditional loans. Another type of "non-conforming" home loan is one where the credit and income might be perfectly fine, but the loan amount is higher than $417K, which is the current maximum loan that can be done using pools of money from mortgage giants Fannie Mae (FNMA) and Freddie Mac (FHLMC). If the loan amount is higher, it can certainly be done - it's called a "jumbo loan" - but the end money comes from private institutions, not from the large government sponsored entities of Fannie and Freddie.

Most non-conforming loan product rates popped significantly higher in the last week. Here's the scoop.

The end investor for Subprime or Alt-A loans will charge a premium for taking on a pool of these loans, because they know that traditionally, they might have a higher rate of default and delinquent payments within that risky pool. But lately, default and foreclosure has been on the rise - partly due to the fact that with credit tightening and a soft real estate market, many troubled homeowners are unable to refinance or sell in order to get out of trouble. So now, these end institutions are demanding a much higher "risk premium" for taking on these pools of loans, as they see the rates of default are climbing higher.

But since these institutions are purchasing these pools of loans sometimes months after the borrower has actually closed at a given rate, this increase to the risk premium means that instead of paying $101K for a $100K loan that will bear interest, they may only be willing to pay $95K for that $100K mortgage to account for the risk. Multiply that times thousands upon thousands of loans...and you have millions upon millions of dollars in loss for the company trying to sell the pool at a much lower price than they were expecting. This is called a "liquidity crisis", and is exactly what happened to American Home Mortgage - there was no mismanagement, but they simply got caught holding too many "hot potato" loans, forced to sell them at massive losses...and eventually they had to make the decision to close the doors and stop the bleeding.

Further, even when a lender is able to take some losses, they may be subject to a "margin call". This means that as their losses and risk premiums increase, the value of their loan portfolio decreases. As the value decreases, the credit lines that are secured by those portfolios begin to issue margin calls as the value of the asset that they are secured on is now diminished. This is exactly like margin calls in the Stock market. If you have a loan against a Stock that is losing value, you will get a "margin call" and need to pay down the loan, as the underlying Stock is losing too much value to be considered adequate collateral any longer. So for the big lenders, as their portfolio is losing value due to increased risk premiums and losses...the margin calls start coming in, and they are required to pay down their balances. In turn, this means that they have less availability to fund their new loans, which then exacerbates the problem.

In response to seeing this situation play out in the demise of American Home Mortgage, lenders of other non-conforming loan products increased their interest rates dramatically almost overnight to be better prepared - and likely over-prepared - for increased risk premiums down the road. Even though loans above $417K are not presently suffering from increased delinquencies like the Subprime and Alt-A loans are, these rates popped higher as well, because they are being purchased by smaller private entities that can't afford to take on any margin of risk.

What happens next, and what should you do now?

The present situation will likely settle out over the coming year, and the rates on products that have moved so significantly higher now should trend lower down the road as delinquency rates stabilize. But here are a few important things to do right now.

First, even if you are not presently in the market for a home loan of any type, call me to make sure that your credit standing is as solid as possible. Many people I talk to about home loans didn't expect they would have a need, and didn't plan in advance to ensure their credit would qualify them for the best possible financing. With no immediate need for a home loan, time is on your side...why don't we take a few minutes together and just make sure you are prepared, should a need arise down the road?

Next, if you are in the market for a home loan, or know someone who is - know that now is time to be working with a real qualified professional who can keep you informed of changes in the market and get your loan funded quickly. Now is NOT the time to be playing the risky game of trying to scour the entire nation to find someone who promises to save you a paltry amount on costs, or deliver a rate that seems too good to be true. Your home and your financing are just too important, and times have changed. I am here to help and advise during these volatile times - and would welcome calls from you, your friends, family, neighbors or coworkers.

Lloria Ross

First Horizon Home Loans

www.llorialoan.com

804-484-1663

How to Buy Your First Home the Easy Way!

How to Buy Your First Home the Easy Way!

Avoid 10 Common Potentially Devastating Mistakes First Time Home Buyers Make.

If you follow these (ten) 10 suggestions, with the help of the right real estate professional, you’ll make a good sound business decision that you’ll be happy and proud of for years to come. Many home buyers do very little research before “diving in” and investing their hard-earned money. Before doing that, doesn’t it make sense to be as informed as possible? This article is designed to help you avoid 10 common, critical mistakes many home buyers make. If you follow these (ten) 10 suggestions, with the help of the right real estate professional, you’ll make a good sound business decision that you’ll be happy and proud of years to come.

1. Inspect, Inspect and Inspect- Go over the inspection report with a fine tooth comb. Make sure the report was done by a professional organization. For condo purchases, go over the by-laws, and association fees. Don’t take anything for granted... inspect everything!

2. Imagine the Property Vacant- Your furnishings and decorations will be the

ones filling this new residence. Don’t be swayed by beautiful furniture ... it

leaves with the owner.

3. Income Plus Lifestyle equals Mortgage Payment- Sit down with a competent real estate professional and honestly discuss your income level and living expenses. Take into account future considerations like: children, add-ons,

amenities or fix ups. Your dream home is certainly worth a sacrifice but don’t mortgage your entire future.

4. View Several Homes- See at least 3-5 properties. Don’t move on the first

property you see but..don’t move too slowly either. With your agent’s help,

you’ll be able to view enough properties to get a good overall perspective of your

market. And when you find the right property, all the leg work will be worth it.

5. Utilize Your Team- By aligning yourself with the right real estate professional, you’ll have an entire team working for you. Top real estate professionals have lenders, title reps, inspection teams — an entire group of trained professionals to make the whole buying experience simple and easy for you.

6. Be Columbo— Check out all your costs and expenses before your sign: utilities, taxes, insurance, maintenance and homeowner dues, if applicable. Make sure all utilities are on (gas, electricity, and water). SO you can inspect everything in working order. Ask lots of questions and be very detail conscious.

7. Do a Final WaIk-Through- Visit the property after all the furnishings have been moved out to be sure there are no surprises. Be absolutely positive the property was left exactly as you had agreed upon final tile contract. Many times, things are unintentionally overlooked that could have been spotted in a final walk_through.

8 Plan for Flexibility- Closing dates are not written in stone. Allow for contingencies and have a back-up plan. If you or the sellers allow a little more time to conclude the final arrangements, don’t let these delays upset or frustrate you. These types of circumstances are not uncommon in a real estate transaction.

9. If It’s Not In Writing, It Doesn’t Exist- All promises and discussions are to he in writing. Don’t make any assumptions or believe any assurances. Even the best intentions can be misinterpreted. Have your real estate professional keep an ongoing log (in writing) of all discussions, arid get the seller’s written approval for all addendums.

10. Loyalty Breeds Loyalty- Be open, honest and up-front with our team. Hard feelings and disloyalty will cause headaches, delays or may even keep you from getting into the home you worked so hard to locate. Take the lime to select the right team in the beginning and your first home purchase will be simple. easy and profitable experience you’ll have fond memories for years to come.

Our hope with this article has been to educate you and help, you avoid the pitfalls many home buyers go through. We hope you found the ideas valuable!

Compliments of: Cindy Strobel, Broker/Owner

Resource Realty Services

www.YourResourceRealty.com

Your Name is Being Sold - Take Action Now!

 

Alert to Hanover, Henrico & all residence! Your Name is Being Sold - Take Action Now!
Here’s breaking news you need to know … and you need to let all your family and friends know right away as well.

Your information … a hot commodity

Having credit checked is an important and necessary step in the home buying process. But very few people realize that each time their credit is checked, the “inquiry data” that the credit bureaus (Equifax, TransUnion, Innovis or Experian) have on file have now become a commodity. This information is being sold by the credit bureaus to other lenders…and also to companies that sell and resell the same names and personal information.

That’s right – the credit bureaus have found a way to increase their revenues at your expense….and without your permission.

These “inquiry leads” include name, address, phone numbers (including unlisted), credit score, current debt and debt history, property information, age, gender and estimated income. They are marketing personal, confidential information to competing creditors…and making millions. Your privacy is being sold, not just once, but over and over again.

And lenders that purchase these leads at a premium will then do everything they can to recoup their investment and turn a hefty profit. Super sneaky bait and switch tactics are being used to lure clients away from their reputable lender. Clients have even been called by disreputable lenders and told that the lender they had been speaking to previously “passed on” the information to them, because they knew that they’d be able to offer much better interest rates and terms. Ouch!

Just Say “No”

The consumer credit reporting industry has provided a way to “opt out” and remove your name from these lists. You can contact them by phone at 1-888-567-8688 or online at www.optoutprescreen.com you must opt out at least 48 hours prior to having your credit checked to make sure it is processed in time. You can choose a five year or lifetime option, and the lifetime option does require a signed form. If a credit report needs to be run prior to the 48 hour waiting period – at least you are aware and informed, and can be on the lookout for suspicious phone calls or mailers from someone who has purchased your data.

The good news is by opting-out you can make it stop right away and protect yourself from “pre-approved credit offers” arriving via mail, which is one of the leading causes of identity theft in the US.

Take Your Privacy Back

You certainly have the right to shop for the best professional to meet your lending needs – but this should be done when and how YOU choose, not being done without your consent or permission. In fact, we even provide a “Shopping Around” guide, just email your request for the free guide to ltross@firsthorizon.com so that you know how to make educated, informed choices when selecting your lender. Contact us if you’d like a copy sent to you right away. But looking around should be on your terms, not being done as a sneak attack, because they think you won’t know better. And unfortunately, these unsolicited marketing tactics are a nuisance and intrusive, but quite legal.

Take your privacy back. Take five minutes right now – opt out, and pass it on. Refuse to be a part of this system.

Compliments of Lloria Ross

First Horizon Home Loans

www.llorialoans.com

804-484-1663