Fort Wayne Real Estate Blog

There are unbelievable deals out there.  There are home loans to fix houses that have potential problems. (FHA 203 k)  If you are renting and you have the potential to buy, in my opinion, you are making a big mistake.  I can understand if you are moving out of the area in the next couple of years or if your job situation may cause you to relocate soon.  In fact, a good percentange of the renters just assume that they can’t buy.  My question is, “Have they ever really checked?” 

I work with loan officers that can take potential buyers with credit problems and turn them into buyers in as soon as 30 days.  We don’t just brush people off, we help until they can achieve there goals.  If you have filed bankruptcy, you can buy a home 2 years after the discharge in most cases. 

Take advantage of these historically low rates and own the home of your dreams today.  Find out more about the Fort Wayne Real Estate market at http://www.fortwaynerealestateinfo.com

By Neal Sherk

With the economy and job market so uncertain in today’s world, it is inevitable that many families will end up having trouble making there bills on time.  The mortgage payment being no exception.  All it takes is a major medical bill, job loss, hours cut at work, or one of many other financial setbacks for a family to get behind.  This can lead them into a financial situation that seems impossible to overcome.  Sometimes it seems like losing the house is the only possible outcome. 

 This paper published by the Distressed Property Institute Forclosure Vs. Short Sales explains the benefits of a short sale over a forclosure.  The key is hiring the Real Estate Agent with the expertise to get the short sale done in a professional and timely manner.  My web page Fort Wayne Short Sales  explains what I can do for a struggling homeowner.  If someone is in trouble with their home, waiting for the bank to take action is the worst thing to do.  Contacting a professional who knows short sales is the smart decision.

The real estate market — with all its rollercoaster-like dips and turns — has occupied a huge amount of our attention in recent years. While most of the news has been bad (record foreclosures, innumerable bad loans), much has also been made of this cheerful fact: Single women have become a major force in the real estate market. According to the National Association of Realtors, last year unmarried gals made up 20 percent of all home buyers, where single guys accounted for 12 percent.

Why the discrepancy between men and women? No one seems to be able to put their finger on it exactly. I personally think it’s because the concept of home resonates so strongly with women. Regardless of our marital status, we want to come home from work to a place that feels like ours.

According to the Joint Center for Housing Studies, the three main reasons single women are buying homes in record numbers are: to relocate closer to a job or family; because they need more space; and, the No. 1 reason cited, because they have a strong desire, plain and simple, to nest. I rest my case.

Realtors and builders are taking notice of this trend. In new home construction, builders are putting in extras such as security features, gourmet kitchens and yards with little to no maintenance required.

For many singles, the time is ripe for that first big purchase. Interest rates are at historic lows and are expected to stay there for at least the near future, according to the National Association of Home Builders.

“I’ve been in real estate a long time, and this is the best market I’ve ever seen for buyers,” says Jan Gray, a Northern California realtor who specializes in coastal properties south of San Francisco. “The rates are super low, and don’t believe people who say it’s hard to get a loan. It’s just not like the old days, when banks accepted you if you had a pulse.”

Gray has sold homes to both families and singles, and says unmarried women are among the most excited — and savviest — clients she’s had. “They’ve ranged in age from 35 and settled on a career to and 60 and retiring,” she says. “And for the most part, all have done tons of homework and know what they’re looking for.”

As a single woman, Gray knows the joys of feathering a nest by oneself. “When women shop for a home with a man, I always see them deferring to him: his need for a garage, or a work space, or a man cave. When women buy for themselves, they are excited about turning this place into something that reflects them and who they are — they know they could even paint the bathroom pink if they wanted to!”

So … are you convinced? Herewith, some tips for being a savvy solo home shopper. For starters, it’s no longer “location, location, location.” It’s now “location, condition and price.”

Location
Obviously, location is still important. Try to buy in the best neighborhood you can afford. But also take your passions and hobbies into consideration before investing. If you love the nightlife that a big city has to offer, consider living right in town, with restaurants and bars within walking distance. But if you’re an outdoorsy type, a more suburban — or even rural — setting would put you closer to the weekend activities you love. Since many home-buying single women also are mothers, it’s also important to consider a school district’s reputation and the safety of the area.

Condition
For many solo buyers, a property’s condition is of equal importance to its location. I purchased a brand-new condo almost 20 years ago, and reveled in the fact that I didn’t need to call a repairman for almost 10 years. Old cottages in the woods may sound charming but can be money pits. Gray says, “I know it’s boring, civil-engineering stuff, but before you buy, find out about drainage. Will your basement flood in winter rains?” And don’t be afraid to poke around at the foundation, especially when you’re buying an older home. Spending a few dollars on a professional inspector can save heartache down the line.

Price
Where the rule of thumb used to be buy the most expensive house you can so that you can realize more of a return, nowadays you should carefully consider your monthly mortgage payment. Experts say it should not exceed 28 percent of your pre-tax monthly income. And stop thinking of a house as an investment and just think of it as a home (and perhaps also a tax write-off).

Consider Your future
Single women are buying houses at all different stages of their lives. Some are just starting out and still plan to get married and have kids someday. Others are “done” with marriage and looking happily at a future on their own. Before you buy a house, think about what you want your future to look like. If kids are a big hope, buying a studio condo could be a mistake. Likewise, you might not want to rattle around a four-bedroom place if you’re solo. Adds Gray, “Also, listen to your body. Smart women know that they should find a place with minimal stairs if they plan to grow old there.”

Might this home become a rental?
Some single buyers — especially younger ones — might not have the most stable lives. Perhaps their employers might transfer them to another city for a year, or they might fall in love and want to move. For that reason, when you buy a home, try to envision its potential attractiveness as a rental. Is it close to stores, restaurants and other pluses? What are the rent prices in that area, and would your mortgage payment be equivalent?

How much upkeep will you want to do?
If you’re an avid gardener, having a yard with roses and hedges might seem like a dream. But if you’re brown-thumbed like me, a condo might be the perfect answer. And if you have to have that lawn to be happy, but lack the time to mow it, Gray recommends that you “factor in the cost of a gardener before you sign on the dotted line.”

Take it slow
If you watch shows like “House Hunters,” you might believe that buyers spend about 20 minutes in a house before writing that huge check. But experts advise that you take it slow: See as many different kinds of homes as you can. Even if you don’t think you’d be interested in a condo, you might see one that turns out to be perfect for you. Gray even advises clients to visit a house they’re interested in several times. “Go at different times of the day to see its exposure to the sun. Orientation of a home is also important.” And there’s no need to rush! It’s a buyer’s market right now, with a glut of homes for sale. So take your time and enjoy the process!

December and early January is one of the slowest periods for home sales. That's one reason you should be out there looking for a home to buy.

In most parts of the United States, house sales follow predictable seasonal patterns. They’re strongest in summer, and bottom out around Christmas and the New Year before picking up again in spring.

That means that late December/early January is a great time to look for a house. There are other advantages to buying at year-end, too. So if you are thinking of purchasing a home in the near future, consider fast-forwarding your plans and starting your house-hunt now.

Here are five good reasons:

1. Lower prices. A lot of people don’t have the time or the desire to look for a house during the holiday season -- they’re too busy shopping, going to holiday parties and catching up with family and friends. The slackening of demand is reflected in softer house prices. Houses that failed to sell in the pre-holiday period may be reduced; new listings -- though sparse -- will be priced to reflect the slow market, which picks up only gradually in the New Year. It’s a good time to find a bargain.

2. Less competition. With fewer active house-hunters out there, you are unlikely to end up in a bidding war that would drive up the price for the house you want or put it out of your financial reach. Less competition also means less stress for you during the bidding process.

3. Motivated sellers. Many sellers who failed to make a deal before the holidays will be very motivated now, especially if their houses have been on the market for several weeks. They will be eager to sell and to avoid scheduling their holiday plans around viewings by prospective purchasers, so they are likely to look at any reasonable offer favorably and to negotiate on price. They may also be open to requests for extras like appliances and window coverings, and to giving you the closing date you want.

4. Favorable mortgage terms. Fewer home sales translate into less demand for mortgage money during the holiday season. Lenders may be willing to shave a few basis points off the interest rate they offer you or to forgo some of their fees in order to get your business. Make sure you shop around to get the best deal available.

5. Tax deduction. If you close on or before December 31, you are likely to be eligible to deduct the interest component of your first monthly mortgage payment from your taxable income for that year. You may also be able to deduct any money you pay for points to reduce the interest rate on your loan. Consult a tax advisor to see how the mortgage interest deduction applies in your situation.

LendingTree.com August 2007

By FrontDoor.com | Published: 11/07/2008

The holiday season from November through January is often considered the worst time to put a home on the market. While the thought of selling your home during the winter months may dampen your holiday spirit, the season does have its advantages: holiday buyers tend to be more serious, and competition is less fierce with fewer homes being actively marketed. First, decide if you really need to sell, really. Once you've committed to the challenge, don your gay apparel and follow these tips from FrontDoor.

1. Deck the halls, but don't go overboard.
   Homes often look their best during the holidays, but sellers should be careful not to overdo it on the decor. Adornments that are too large or too many can crowd your home and distract buyers. Also, avoid offending buyers by opting for general fall and winter decorations rather than items with religious themes.
   
   
2. Hire a reliable real estate agent.
   That means someone who will work hard for you and won't disappear during Thanksgiving, Christmas or New Year's. Ask your friends and family if they can recommend a listing agent who will go above and beyond to get your home sold. This will ease your stress and give you more time to enjoy the season.
   
   
3. Seek out motivated buyers.
   Anyone house hunting during the holidays must have a good reason for doing so. Work with your agent to target buyers on a deadline, including people relocating for jobs in your area, investors on tax deadlines, college students and staff, and military personnel, if you live near a military base.
   
   
4. Price it to sell.
   No matter what time of year, a home that's priced low for the market will make buyers feel merry. Rather than gradually making small price reductions, many real estate agents advise sellers to slash their prices before putting a home on the market.
   
   
5. Make curb appeal a top priority.
   When autumn rolls around and the trees start to lose their leaves, maintaining the exterior of your home becomes even more important. Bare trees equal a more exposed home, so touch up the paint, clean the gutters and spruce up the yard. Keep buyers' safety in mind as well by making sure stairs and walkways are free of snow, ice and leaves.
   
   
6. Take top-notch real estate photos.
   When the weather outside is frightful, homebuyers are likely to start their house hunt from the comfort of their homes by browsing listings on the Internet. Make a good first impression by offering lots of flattering, high-quality photos of your home. If possible, have a summer or spring photo of your home available so buyers can see how it looks year-round.
   
   
7. Create a video tour for the Web.
   You'll get less foot traffic during the holidays, thanks to inclement weather and vacation plans. But shooting a video tour and posting it on the Web may attract house hunters who don't have time to physically see your home or would rather not drive in a snowstorm.
   
   
8. Give house hunters a place to escape from the cold.
   Make your home feel cozy and inviting during showings by cranking up the heat, playing soft classical music and offering homemade holiday treats. When you encourage buyers to spend more time in your home, you also give them more time to admire its best features. 
9. Offer holiday cheer in the form of financing.
   Bah, humbug! Lenders are scrooges these days, but if you've got the means, then why not offer a home loan to a serious buyer? You could get a good rate of return on your money.
10. Relax -- the new year is just around the corner.
    The holidays are stressful enough, with gifts to buy, dinners to prepare and relatives to entertain. Take a moment to remind yourself that if you don't sell now, there's always next year, which luckily is only a few days away.
    
    

7 STEPS TO CURB APPEAL IN THE FALL

In many parts of the country, autumn and its colorful display of foliage are eagerly awaited after a long, hot summer. But once those leaves have fallen, it can leave your house looking, well, a bit naked, with nothing to hide those little figure flaws that nearly every home has. That’s why fall is a great time to dress up your home’s exterior, especially if you’re trying to sell your home. Here are seven steps to increasing your fall curb appeal:

I recently sold a house to a 1st time home buyer.  Great little starter home in need only minor repairs.  As we started through the loan process, the lender came to us and said the house is in a flood plain and that we would require flood insurance.  This alone is enough for my buyers to walk away. 

They were very dissapointed that we had to start over.  After we hired a surveyor to do an elevation check on the home, we discovered that the home is actually 2 feet above the flood plain.  There is a large ditch in the back of the house.  Where there is water, there is always flood plain.  We now know that the home is out of the flood plain, so we should be home free.

Not the case!  Now we have to go through FEMA, a government entity that has to review the findings of the surveyor and make its final decision as to whether or not this home is in a flood plain or not.  This can take several months.  Until then, my clients have to carry expensive flood insurance, even though we know the home is out of the flood zone.

Moral of the story-If you live in a home with any body of water nearby, and you are looking to sell, you can look at the local flood maps on the GIS website near you.  This will show your proximity to a flood zone.  If you are close, order the elevation check early so your sale won't be delayed.