March
18
2010
If you are considering the purchase of a short sale property, you need to ask yourself the following questions:
1. Are you in a position where you can wait for the lender’s approval of the Short Sale?
A Short Sale has no pre-determined time frame, even if your agent writes one into the contract. Short Sales can take anywhere from 30 days to 6 months, or beyond. The lender is not in any hurry to accept your offer without certain tasks being completed, and certain factors being accepted. Many times, when a short sale contract is presented to a lender, it is the first notification that the seller wants to have the lender consider this option, and the lender will have to go through a process to determine if the seller is even eligible for a short sale. The entire process will also largely be dependent upon the skill of the Realtors involved in the transaction.
2. Do you have a home to sell before you can purchase the short sale?
If you have a home that you have to sell first in order to buy your next home, you will need to have it sold already, before making an offer. No lender is going to consider you a qualified buyer if you are not financially able to complete the sale within a reasonable time frame. Making your offer contingent on the sale of your home will most definitely assure you a rejected contract.
3. Will you follow through on feedback regarding, among other things, market value and contract contingencies?
Are you willing to present a reasonable offer based on current market value, or are you looking to lowball a lender in the attempt to ‘steal’ a property? A lender is going to look at what the best avenue would be for their financial situation, and it could be that your “offer” would not generate the lender more money than if they were to just foreclose on the property and take it into inventory and sell.
4. Are you open to listening to the advice of your Realtor in what terms can or should be included in the contract?
A contract full of contingencies (stipulations about inspections, repairs, financing, etc) will likely get you a rejected contract. The lender is interested in the bottom line, and the amount that presents to their side of the deal. When making an offer on a Short Sale property, you will need to consider the property in AS-IS condition – they are not going to consider most repairs.
5. Do you understand that the lender will be making the final call on price and terms?
The lender will make the final call on the terms of the contract. Unfortunately a buyer is not in a very good position to demand certain terms, because the lender would just as well foreclose on the property.
6. How willing are you to consult an attorney regarding home inspections, earnest money, and the contingency period for third-party approval?
Your Realtor can point you in the right direction in regards to inspections and such, but they are not an attorney, and if you have any doubts about any part of the contract, property condition, or terms, you will need to seek proper legal advice.
7. Are you willing to enter into an Exclusive Buyer Representation Agreement, and be responsible for compensation, should it not be paid by the seller’s side?
A good Realtor that can negotiate your deal, and follow through during the long process of a Short Sale is going to want to make sure they are compensated for their time. Just as you would expect your boss to pay you for the job you agreed to do, your Realtor will need to be guaranteed compensation for their due diligence throughout the Short Sale process. This is guaranteed through an Exclusive Buyer Representation Agreement.
There are many obstacles when considering the purchase of a Short Sale property. Not only are you going to need to negotiate a price and terms with the lender, but you will also need to make sure the contract negotiations and closing run as smoothly as possible, and that no stone is left unturned. You need to hire a Certified Short Sale Foreclosure Representative (SFR) to lead you through this difficult and often nerve-racking process.
For more information on how to make an offer on a Short Sale, call Michelle Fradella at Pinnacle Real Estate Services at 601-569-0075.
Thank you for visiting my site! If you want to find out more about Buying and Selling Homes in Picayune and the Pearl River County, MS, area, go to
March
2
2010
Ultimately, the best bet would be to put your home on the market, if you are having trouble paying your mortgage. Sometimes that’s not a viable solution, depending on how much you owe. If you are facing mortgage problems, there are steps that can be taken. Call Michelle Fradella at Pinnacle Real Estate Services – 601-799-1848 – to find out what your home value is in the current market, and to get assistance with what direction you should take.
February
25
2010
The very best and most enjoyable reason to purchase real estate in the Picayune and Pearl River County areas, by far is in buying a property in which your family will live and grow together. There is a lot of fun involved in finding the perfect place for you and your family to call home. There is also a great deal of stress involved as well and that should not be overlooked.
Some things to keep in mind when searching for the perfect property for your family:
- Make your first step the step of locating and hiring a Real Estate Consultant that you are confident has your needs, desires, and best interests at heart. Your Real Estate Consultant can prove to be a lifesaver when you’ve reached the final hours before closing and the sky looks as though it’s going to fall. They will also be there to search out the home that fits your needs, negotiate your deal, and advise you on anything that comes up during inspections and the loan process.
- Next, if you need to get financing for your next home, you will need to talk to a lender to get “pre-approved” for a loan. There is a difference between being “pre-qualified” and “pre-approved”. You will be a better-positioned Buyer when you have a pre-approval letter from a lender, stating that it has already been determined that you can get a loan for the amount you are offering.
- Meet with your Real Estate Consultant to identify the things that are absolute necessities in your search. Discuss a list of “needs”, and then add to the list the “wants”. It’s important to realize that not every item on your list is going to exist in one house. Know what you can’t live without (amount of bedrooms, amount of bathrooms, size of yard, etc), and then add to that the things that you’d like to have, also, if available in the price range you are looking in.
- Another important factor that must be considered when purchasing a home for your family is the neighborhood. This is more important than many people may realize. It is well worth having a smaller home in a neighborhood that is poised for growth rather than a larger home in a neighborhood that is in the state of decline or on the verge of the state of decline. Crime rates in the neighborhood and the school district are other things that need to be considered as well before deciding to view a potential home.
- It’s important to look at more than one property before making a decision. Keep in mind, however, that if you have sat down with your Real Estate Consultant and gone over your needs and wants, then they will have a good idea of what you are looking for. Your Consultant will pull the properties that meet those needs. If you are not comfortable with the properties that you are viewing, it’s important to go back to the list and adjust. Many Buyers tend to start out looking for one thing, and then realize that their expectations may be different than what was discussed. I’ve had many Buyers tell me that they absolutely have to have one item, and then go in the opposite direction once we start looking. Keep your Consultant in the loop on your thoughts, and they will be able to tailor the homes they show you to coincide with your list.
- Rely on the expertise of your Real Estate Consultant to give you advice on making an offer. There are many more contributing factors to a contract than just price. How quickly you are able to close, whether or not you have your financing in place, the amount of money you are putting down as earnest money, any request for seller assistance in closing costs, etc, will all be contributing factors. The truth is, it doesn’t matter how much you offer, it’s the underlying items on a contract that can make or break negotiations. When you’ve hired an experienced Real Estate Consultant, you will have someone with experience in negotiations to work at getting you the best deal.
You will find many houses along the way but few will reach out and impress themselves upon you as home. Those are the ones you should consider long and hard. Weigh the options, the prices, and your likes and dislikes, and depend on a seasoned Real Estate Consultant to guide you through the process. If you do all of this you should be well on your way to the home of your dreams.
February
17
2010
The listing inventory in Pearl River County is still at an all-time high. Currently there are 469 Residential Homes for sale, 40 Mobile Homes, and 8 Multi-Family Properties for sale throughout Pearl River County, MS.
Now is an opportune time to find the right property! Just in the $0-$100k price range , there are 75 homes for sale, with 41 of those homes being in the Picayune area.
If you are in the market for a home, and want to take advantage of the $8,000 tax credit (or $6,500, depending on your situation), then you need to act now. The tax credits end in April, so now is the time to start searching for your next home!
If you have an interest in buying a home in Picayune or Pearl River County, MS, then contact Michelle Fradella at Pinnacle Real Estate Services.
February
2
2010
January
9
2010
#1 Mistake: Not listing your property with a Full-Time Realtor©
When selling your home there are no guarantees that the ultimate buyer of your home will have simply walked through the front door. In many cases you may have to bring your home to the buyer. Effective marketing will help ensure that your property receives maximum exposure to attract a ready, willing and able buyer in the shortest period of time. When you list your property, you need to ask some specific questions about how it will be marketed.
In this extremely competitive market, if the Realtor© you are talking to does not run their Real Estate business as a FULL TIME business, then you need to be looking elsewhere. And if their idea of running a real estate business is putting a sign in your yard, entering it in the local MLS, and then running an ad in the local home buyer magazine . . . . well, then they are not seriously up to date in technology, and are not going to get your property exposed to the largest number of buyers possible.
Ask your Realtor© to list for you all of the ways he/she intends to market your home and on what time-line. Also, be sure to ask about the home being advertised on the Internet, and how MANY sites your property will be listed on. At Pinnacle Real Estate Services, we take the marketing of a property very seriously. Our “Strategic Marketing” puts your home in front of more buyers than any other company in Pearl River County, MS.
#2 Mistake: Not Pricing Your Property Right for the Current Market
Perhaps the most challenging aspect of selling a home is listing it at the correct price. It’s one of several areas where the assistance of a skilled, Full-Time Realtor© can more than pay for itself. Listing the home too high can be as bad as too low. If the listing price is too high, you’ll miss out on a percentage of buyers looking in the price range where your home should be. This is the flaw in thinking that you’ll always have the opportunity to accept a lower offer. Chances are the offers won’t even come in, because the buyers who would be most interested in your home have been scared off by the price and aren’t even taking the time to look. By the time the price is corrected, you’ve already lost exposure to a large group of potential buyers.
Your over-priced listing will actually also be helping to sell other properties that are in direct competition with you. Since your price is higher, the lower-priced house will be a better buy for the consumer.
The listing price becomes even trickier to set when prices are quickly rising or falling. It’s critical to be aware of where and how fast the market is moving – both when setting the price and when negotiating an offer. Again, an experienced, well-trained Realtor© is always in touch with market trends – often even to a greater extent than appraisers, who typically focus on what a property is worth if sold as-is, right now.
#3 Mistake: Thinking you need to be in the home to explain things to a prospective buyer.
You will be better served if you allow your Realtor© to do their job without you there. Most potential buyers usually feel more comfortable if they can speak freely to the real estate professional without the owners being present.
Also, if people unaccompanied by an agent request to see your property, you should refer them to your Realtor© for an appointment. Don’t expose yourself, your family, and your property to non-qualified buyers. If they are serious about viewing your home, they will call your Realtor©.
#4 Mistake: Forgetting what you would want to see if you were the buyer of your home.
Remember that although people can be different in personality, they tend to be the same when it comes to expectations at someone else’s expense. In other words, a prospective buyer would probably like to see a perfect home from top to bottom, inside and out. They can envision themselves living in your home, if it’s clean, and problems are already taken care of. Try to do as many of the following items as possible to improve the likelihood of your home selling quickly.
On the outside
• Sweep front walkway.
• Remove newspapers, bikes and toys.
• Park extra cars away from the property.
• Trim back the shrubs.
• Apply fresh, clean paint throughout.
• Clean windows and window coverings throughout.
• Keep plumbing and all appliances in working order.
• Maintain all sealant (window, tub, shower, sink, etc.) in good condition.
• Make sure roof and gutters are clean and in good condition.
• Mow the lawn frequently and plant flowers.
• Keep pet areas clean.
On the inside
• The kitchen and bathroom should shine.
• Quick once-over with the vacuum; carpets should be clean.
• Place fresh flowers in the main rooms.
• Put dishes away, unless setting a formal display for decoration.
• Make all beds and put all clothes away.
• Open drapes and turn on lights for a brighter feel.
• Straighten closets.
• Put toys away.
• Turn off television.
• Play soft music on the radio/stereo.
• Keep pets out of the way and pet areas clean and odor-free.
• Secure jewelry, cash, prescription medication and other valuables.
• Enhance the spaciousness of each room.
December
16
2009
When you are a buyer, looking for a house!
We have had some enormous amounts of rain here in the Pearl River County, MS, area over the past week. It’s unbelievable how much water has fallen. Now, don’t get me wrong, this type of rainfall is not usual for our area at this time of year, but it does give a home buyer a good idea of what they could ever expect of a property.
When my ex-husband and I bought our first home back in 1994, we bought in an area that was unfamiliar to us – LaPlace, Louisiana. We purchased the home during the dryer time of the year. Everything was rosey the first 3 months, until the summer rains started really falling. Come to find out, the area flooded during a hard rainfall, and our back yard looked like the swamp. Thankfully the house was built up about 8 inches, so we never did have water in the house, but I can tell you that it came pretty darn close! And the real problem was that the back yard was lower than the front, so everything drained to the back. My raised stepping stones were immersed 2 inches under water. Even after adding 12 yards of dirt, the yard was still soggy after a good rain. I certainly wished I would have known that before buying that house.
If you are considering buying a home, now is a great time to take a look to see what the worst scenario would be.
Does the property have lower pockets that will hold water?
Does the house get any water close to it after a bad rain?
Are there any waterways close by that might flood with heavy rains?
How quickly does the water drain, after a rain and how long will it take to dry out?
These are great questions to get the answers to right now.
If you are in the market to buy a home in Picayune or the Pearl River County, MS, area, now would be a great time to get out and see what secrets the rain has told. And when you are ready to start the whole home buying process, give me a call and we’ll sit down and get a list of everything that is important to you in a new home, and then head out to find the perfect spot for you and your family!
December
15
2009
RISMEDIA, December 15, 2009—(MCT)—Interest rates on the benchmark 30-year, fixed-rate mortgage dipped to a 38-year low recently, giving consumers another reason to consider purchasing a home or refinancing their current one.
Freddie Mac recently stated the average rate on a 30-year loan was 4.71% with an average 0.7 point, the lowest rate since the agency began its weekly tracking of long-term interest rates in 1971. A point is equal to 1% of the loan amount, payable as a lump sum at closing. While the decline wasn’t overly dramatic, the dip is likely to get people wondering whether it’s time to sign on the dotted line.
The 5 following questions may help you decide if now is the time to go ahead and purchase a home or refinance your current home.
Q: Why are rates so low?
A: Since early January, the Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae in an effort to stabilize the housing market by making homes more affordable for consumers. The Federal Reserve Bank of New York, which is managing the program, plans on purchasing $1.25 trillion of securities.
Q: Are rates expected stay this low?
A: It’s hard to tell, but don’t count on it because the lending landscape is likely to change next year. In September 2009, the Fed said it would gradually wind down the purchase program, ending it by March 30, 2010. That has some in the mortgage lending industry worried.
In a recently published mortgage survey, more than 60% of Bankrate.com’s panel of experts predicted that rates will move higher over the next 30 to 45 days. How much higher is anyone’s guess. Last year at this time, the average 30-year, fixed-rate mortgage was 5.53%.
Q: Why do different mortgage surveys come up with different average interest rates?
A: It depends on which lenders are in their sample, when the survey was taken and whether the rates quoted are the posted rate, the application rate or the commitment rate. Also, some surveys take into account the points paid to secure the rate.
But regardless of the survey, the general consensus is that rates are ultra-low right now and may be the lowest the market will see.
Q: What else does a consumer need to know?
A: The lowest rates are offered to the most credit-worthy customers who can make sizable down payments. Shop not just for the interest rate and the points involved but also for the fees involved, which can vary widely from one lender to another.
If you’re refinancing, remember the bigger the loan, the greater the payoff for finding a lower interest rate. Savvy customers put in their paperwork with a lender and set a “strike” interest rate at which to lock in the loan, a good move considering rate volatility.
Several refinancing calculators are available online that let borrowers plug in all the required numbers and determine the monthly savings and how long it will take to recoup the expense of a refinancing.
Q: So is now the best time to buy a home?
A: It depends on personal situations. Homebuyers certainly have a lot of factors working in their favor right now—low interest rates, plenty of marked-down homes for sale and an extended and expanded federal tax credit that will expire in the spring.
On the flip side, there’s growing sentiment among analysts that housing prices, which are showing ever-so-minor improvement, may fall further. The reason? Lenders are expected to get better at determining which borrowers will qualify for loan modifications. That means lenders also will get faster at moving homes through the foreclosure process.
Mark Zandi, chief economist at Moody’s Economy.com, recently predicted that housing prices nationally will hit bottom in 2010’s third quarter. That means anyone buying a house now could see the value of their investment initially depreciate.
(c) 2009, Chicago Tribune.
Read more: http://rismedia.com/2009-12-14/5-questions-to-consider-before-purchasing-a-home/#ixzz0Zm6mg3Wx
November
24
2009
Buyers commonly ask if the home warranty being offered by a seller is a “good deal.”
Considering that the average furnace repair is between $1,250 and $5,000, a home warranty may save you dollars on a repair that pops up after the closing. In addition, the money you save by not having to foot the bill for the policy–which on average can cost between $300-$400–makes a warranty a worthy perk.
You should be mindful, however, of exactly what the home warranty covers. Most sellers only purchase a one-year basic warranty, which will generally cover major built-in appliances and mechanical systems such as heating, electrical and plumbing, and usually it only covers normal wear and tear. For example, if the water heater was not in good working condition when the home was purchased, and it breaks a week or two later, there is no coverage.
If you want more extensive coverage, such as for pool equipment, air conditioning, or even the refrigerator, talk with your real estate professional about negotiating that extra cost with the seller, or consider purchasing your own warranty. Also, remember that although most home warranties provide coverage only for one year, most plans are renewable.
Whether or not you are given the option of selecting your own home warranty provider, here are questions to consider:
- How much is the deductible or per visit cost for repairs?
- Does the plan cover ‘pre-existing conditions’ which weren’t known to the seller?
- Who performs the repairs? Can you choose someone or does the company send a technician in their network?
- What’s the maximum dollar amount for repairs and what are the policy limitations? For example, will the policy pay for a new water heater at no additional cost?
Whether a warranty is offered by the seller or not, no buyer should forgo a home inspection. An inspection may uncover defects or potential problems that won’t be covered by the warranty – and may give you the opportunity to request the seller to make any major repairs before the closing.
But, warranties definitely have a place when it comes to protection and peace of mind. If you are looking in the Pearl River County, MS, area for a home, give Michelle Fradella a call for more information on home warranties and providers.
November
11
2009
The top 10 ways a seller can practically guarantee that their home listing will expire:
- Not serious about selling. Actions speak louder than words in this market. If you are not motivated to sell your home, then you should wait for a less competitive time to sell. Not being willing to price your home where it needs to be to actually sell in this market tells Realtors and Buyers alike that you really are not motivated, and they really shouldn’t bother.
- Improper pricing. A properly priced home is half sold. It won’t matter how many open houses, realtor lunches, glossy flyers, home magazine ads, Goodyear Blimps, or Saint Joseph statues are used, the fact of the matter is that if your home is not priced competitively, it WILL NOT sell.
- Not listening to your agent. A good full-time, seasoned Realtor is trained to know their market, know how to market homes, and how to motivate buyers. If you question the ability of your agent to represent you, then you obviously have the wrong agent. Don’t self-diagnose (your Doctor wouldn’t) – listen to the Professional!
- Micro-manage the marketing. Having former “sales experience” yourself, doesn’t give you the license to second-guess your Realtor. If you had a real estate license years ago – good for you, but I have to tell you times have changed, and what worked back in the old days WON’T work today! Share your concerns and timelines, but leave the marketing details to the expert.
- Don’t Stage the property. Oh sure, that brown variegated shag carpeting might be considered “retro” by some, or the whitewashed cabinets, Navajo white walls, and Southwest Décor might appeal to a small percentage of others – but if you really want to sell your home, you are going to have to make it appealing and competitive with newer homes on the market today.
- Let Fido run free. Nothing is worse than going in to show a home, and you’re met at the door by frisky, overly enthusiastic dogs. Worse yet, you’re barked to death by an aggressive one, and are not really sure if you should go in. The other day I showed a house and the dog was inside. He was quiet and reserved, but then proceeded to piddle on the floor because he was scared. Not the way I want a buyer to remember a home!
- Talk to the buyers. Being at home when a house is shown is certain death to a possible contract! Sure, you think that you need to tell them all there is to tell about YOUR home, just in case the Realtor doesn’t. Problem is that the buyers feel uncomfortable while you are there, so they can’t envision themselves “moving in” to the home. 9 times out of 10, the things that you tell them will give you a disadvantage when negotiating the price (if they do make an offer). DON’T be at home when your house is shown!
- Sell personal items. Buyers are looking to buy a home – they’re not thrift shopping at Hudson’s Treasure Chest! Don’t try to push your used furniture on them. If they want something, they will ask for it in the contract.
- What’s that Smell? Oh sure, your house doesn’t smell of pet odors, baby diapers, cat litter boxes, fried fish, a dairy farm, or low tide.
- Ignore Feedback. What do buyers know, anyway? You can’t imagine why they don’t care for the groovy blue counter tops, the large scary snake in the aquarium, or the Elvis mural on the wall. Why should these things make your home less than desirable? Every comment from a buyer should be considered. These may be things that are also turning other buyers off, and they just didn’t want to say.
If you are a serious Seller in the Pearl River County, MS, area and want your home to sell – take these words of advice. Also, call Michelle Fradella at Pinnacle Real Estate Services to get your home on the fast track to a closing!
601-569-0075- www.prchomes.com
