SELLING YOUR HOME? 3 THINGS YOU SHOULD KNOW

It is a great time to be a home seller.  Homes are selling fast and for premium prices.  Do your homework before you jump into the market because once you sell, you now become a buyer.

NerdWallet recently surveyed 2,127 homeowners through a Harris Poll.  They learned that 17% of homeowners plan to sell in the next 18 months.  In fact, 45% of those planning on selling in the next 18 months were motivated by both higher asking prices and lower inventory in the current housing market.

So, if you are a future seller here are three things you need to know.

1. You may be able to forego presale home improvements.  Preparing to sell your home often means spending cash to upgrade, remodel or repair your home.  Unless your house has a major problem like a leaking roof, you may just want to sell "as-is" and let the new buyer determine what repairs, remodeling or upgrade they want in the house.

2. It will move quickly.  Today's seller's market home turnovers are in some areas as little as 1 day to 20 days before a contract is signed, usually with multiple offers.  Single family homes are in high demand, so, be prepared to sell the moment you hang out the "For Sale" sign.  It is also ideal that your next home already be lined up.  

3. As a buyer, you will face stiff competition for a replacement home. The irony here is that the very thing that makes it ideal to sell now also makes it tough to find a new home.  You will join other buyers in the already crowded home buyers pool.  Adding a contingency to the sale of your present home to allow you to find a new home may not fly with you buyer.  The big trick is finding your next home.

It is a "catch 22" situation that calls for a clear plan to make the transition from seller to buyer go smoothly.  Happy hunting! 

  

5 TIPS WHEN LOOKING FOR A MORTGAGE LENDER

Unless you are independently wealthy and are going to pay cash for your first home or next home, you may need the services of a mortgage lender.  Here are 5 tips to help you navigate the mortgage industry and find the right underwriter for your home loan.

1. Does the lender embrace FHA, VA, and USDA loans?  Government insured loans offer low minimum down payments and more relaxed qualifications requirements.  If you are a first-time buyer this is very attractive way to purchase your new home.

2. Know your FICA score and credit history. Lenders use the FICA score and credit history to determine the risk factor in providing a loan to you.  If you score is low and you have some hiccups in your credit history, talk with the lender or bank loan officer as to how you can improve your FICA score.  You may have to delay purchasing a home until you can raise your FICA score and clear any credit history issues.

3. Investigate assistance programs.  If you are a first-time buyer many lending institutions offer assistance programs that can help with down payments.  Check with the lender about assistance programs during you initial conversation with them.

4. Request quotes from several lenders. This may sound time consuming, and it is, but it is in your best interest over the next 30 years or so to ensure that you are working with a professional lender who is service oriented and not quota driven.  You would do the same if you were buying a car or looking for health insurance.  Do it with your lender - shop around!

5. Get a preapproval letter from your lender before shopping for a home.  When making an offer to a seller, the preapproval letter, from a lender, goes a long way in favorably positioning you with the seller.  The seller is not interested in waiting for you to obtain financing when others are standing in the wings ready to close the deal. 

Incorporate these 5 tips into your game plan for purchasing your first home or next home and position yourself to be a successful buyer.

 

FACTORS TO CONSIDER WHEN PURCHASING A SECOND PROPERTY

Today's mortgage rates are making it attractive for families to consider purchasing a second home, buying a vacation rental, or investment property.  Before you jump into the "pool" you need to consider the following key factors.

1. Decide on your plan. A key factor here is, "How do I want to use the property?"  Will it be a second home or a vacation rental?  Perhaps I am looking to expand my passive income portfolio by purchasing an additional home or two.  Regardless, have a plan!

2. Create a budget. Wanting to buy a second home is one thing, being able to pay for it is another.  You are going to have to crunch some important numbers to determine what funds you have on hand and what you will need to borrow.

3. Compare lenders. Here is where you need to find a lender who is "investment oriented".  Discuss your plans for the property and determine if his lending institution is a good working partner and get pre-approved.

4. Start shopping for a home. Now is the time to work with a professional real estate agent who is familiar with the locale you are interested in buying into.  With the agent's help and knowledge of the area you can redeem precious time as you search for the ideal property.

Implementing these key factors will help you navigate the current housing market to find that perfect second property.  

HOUSING SENITMENT SHIFT

If you are a buyer and out there searching to buy your dream home, you may be having real difficulty realizing your dream.  There has been a recent shift in the housing market buyer sentiment. 

Why is there a shift in sentiment?  In one word, frustration!  Buyers who were slow to enter the housing market at the early onset of low interest rates and a modest housing inventory are frustrated.  With low inventory and increasing prices for houses, buyers are taking a second look at purchasing.  

New home construction delays.  In an effort to off-set the housing demand of buyers, new home construction is on the upswing in most areas of the country.  Yet, with the demand for new affordable homes, comes an increase in new home construction costs due to a limited supply of essential materials and builders passing the cost increases on to new buyers.

Bidding wars. Many sellers are asking and getting at or above listed sale price for their homes. Buyers may find themselves in a bidding war with other potential buyers for one or more properties.  Recent national home sales data shows a significant drop in days on market as buyers are acting quickly to gobble up a desired property. 

How long this sentiment will last is uncertain.  If this is just a knee-jerk reaction or are we beginning to see a new trend? We shall see.

 

WELCOME TO SUMMER!

Memorial Day has long been considered the unofficial "first day of summer".  The kids will be out of school and there is that planned summer vacation you have been looking forward to for the past few months.  Summer is also the time for picnics, barbeques and nights chasing fireflies.

But summer is also the time to take care of a few home updates.  Here is a list of a few things you may want to tackle this summer to enhance the beauty of your home while adding value to its future sale price.

1. Windows and screens - Summer is the ideal time to clean windows and wash screens.  Also is the time to repair, repaint, and replace inefficient windows with more energy efficient ones.  

2. Downspouts and gutters - The winter months wreck havoc with gutters and downspouts if you live in areas where snow is an event.  Clean gutters and unclog downspouts in preparation for summer rains.  Replace or re-secure sections that have been damaged.  

3. Paint - Is it time to change the exterior color of your house and front door?  Maybe add a trim color to make your windows pop. This can be a DIY project, or you can hire a professional, either way a little change in color may just brighten up the neighborhood.

4. Curb appeal - Is your flower bed looking tired and rundown? With a few changes in design your flower garden can be the envy of the area.  Choose plants and shrubs that complement the color of your home and do not hide your home from public view.  Perhaps your lawn needs to be reseeded or you need to add a tree to balance the picture framing of your home.

There are other summer time projects on your list, but these are a few to help you get started beautifying your home this summer.