Four Real Estate Deal Killers

Four Real Estate Deal Killers

     Don't be caught off guard when you decide to sell your home. The market is changing and seller's are beginning to gain control of the market. Contact Tami Winbury Keller WIlliams Realty 805-798-3412 www.TamiWinbury.com for all your Real Estate needs.
     Many news reports point to the sub prime lending mess as the cause for the housing slump. But home sellers should know that plenty of people with good credit are simply cautious buyers, which can keep sales down.
     In most areas it's a buyer's market, so people can be picky. "Most buyers in this market will try to re-negotiate based on the findings of their home inspection. If the seller is unwilling to make repairs or lower the price, they may walk away because they knew other properties are available," says Kathleen Kuhn, president and CEO of HouseMaster.
     With approximately two million home inspections collectively performed by its franchise offices, HouseMaster is aware of a number of conditions that are more likely to scare buyers away.
But sellers do not have to stand by with their fingers crossed to secure a fair sale.
     "More and more home sellers are getting a pre-listing home inspection that helps identify potential deal-breaking issues before the house is listed on the market," Kuhn says. "This way, sellers can fix problems and worry less about a buyer walking away late in the deal process."
According to Kuhn, the following are "The Fearsome Four" when it comes to real estate deals:

• Roofing Concerns: A new homeowner does not want the expense of roof replacement shortly after closing. Many sellers believe that if their roof is not presently leaking it is in acceptable condition. But an astute buyer knows that a worn roof needs to be replaced before it leaks.
• Electrical Problems: Older panels are often undersized and might even pose a fire hazard. Although an upgrade is usually straightforward, the potential fire risk can be scary for prospective buyers.
• Structural Issues: Major structural issues are one of the least common defects found in homes, but when they do occur, they can be costly to repair, and can really stop a buyer in his tracks. Fortunately, there are often repair options that will make the sales process go smoother. But it will often require another inspection by a structural engineer or repair professional, and additional time, to determine what can be done.
• Synthetic Stucco or Exterior Insulation Finish Systems (EIFS): Overall EIFS can be effective, economical alternatives to traditional stucco. Unfortunately improper installation can lead to trapped moisture behind the siding. This can cause structural damage and mold, and can cost tens of thousands of dollars to correct.

     "Sellers lose some advantage when they are caught off guard by issues, even minor ones. In a market where every edge counts, sellers can use tools like pre-listing home inspections and repair records to show that they are conscientious and have taken appropriate steps to sell responsibly and competitively," Kuhn says.
     Remember, these tips are only general guidelines. Since each situation is different, contact a professional if you have questions about a specific issue. More home safety and maintenance information is available online at www.housemaster.com.

Contact Tami Winbury Keller WIlliams Realty 805-798-3412 www.TamiWinbury.com for all your Real Estate needs. DRE#01878369

Before Buying a Home- Must Read

Before Buying a Home

Home prices in most parts of the country are just about as affordable as they are likely to get, and mortgage rates remain super low. Together, those factors mean that many people are thinking about buying a home. Some will be first-time homebuyers, while others will be “boomerang” buyers who lost their homes in the housing meltdown but are now hoping to get back in. Still others may see this as the best time to upgrade to a larger home, downsize to a smaller one, or to move to the retirement locale of their dreams.
Whatever your motivation for buying a home, unless you are going to pay cash for the property, there’s one essential step you must take first: get preapproved for a loan.
The reason? Your lender will help determine what type of home loan financing you can get, and the interest rate you’ll pay. You’ll want to have plenty of time to dispute credit report errors if you find any, and get them fixed. The last thing you want is to find out at the last minute that you can’t buy your dream home because of something on your credit report that shouldn’t be there.
If you will be buying and financing a home with someone else — a partner or spouse, for example — you’ll each want to get your credit reports and scores. Get them from all three major credit reporting agencies; Equifax, Experian and TransUnion, as they each collect their own data and don’t share corrections with each other. You can do this for free once annually at AnnualCreditReport.com.
You’re Not Just a Number
The three-digit number that represents your credit score will be important when it comes to buying and financing a home. A difference of a few points could make a difference in the rate you’ll pay for your mortgage. Mortgage lender, Bob Brenner will typically use the middle of the three credit scores to determine the rate/program for which you qualify.
But that doesn’t mean you need to obsess about your score. Doing so can cause you unnecessary grief. After all:

• Trying to tweak your scores based on what you think may help improve them can sometimes have the opposite effect.

• There are many different loan programs with different credit score requirements. Loan officer, Bob Brenner will help you shop around to find the right program to meet your needs.

What’s in a Number?
If focusing on the number that represents your credit score isn’t the most important thing, then what is? Understanding the elements that make up your scores can be much more important. Our Credit Report Card, for example, assigns a grade to each of the main factors that go into a score:

• Payment History
• Debt Usage
• Credit Age
• Account Mix
• Inquiries

Within those, we recommend you put your efforts toward the things you can control.
What Can Your Score Do For You?
When it comes to buying a home, your credit scores can help you secure the financing you need to buy the property and pay it off over time. Your credit scores are a tool to help you achieve your personal and financial goals. If you can get the loan you need with the credit scores you have, then be satisfied with that — even if you don’t have the best score your loan officer has seen!
And finally, it’s important to put your scores in context. Mortgage lenders will look at other factors, like your debt-to-income ratios, employment history, and down payment. As any loan officer can tell you, even a perfect score can’t get you a loan if — for example — the appraisal comes in too low, or if you can’t document your income.
Gerri Detweiler Credit.com's Personal Finance Expert
Contact Tami Winbury Keller Williams Realty 805-798-3412 DRE#01878369 today for help in your search to purchase a home and all your real estate needs.

Lo Inventory: Homes to Sell Needed!

Low Inventory: Homes to Sell Needed!

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It's true! The housing inventory is at an all time low. Supply and Demand is proving true as we

watch homes receive multiple offers and bidding wars on the rise. Call Tami Winbury Keller Williams Realty

today to list your house implementing her Marketing Arsenal. 805-798-3412

We’ve heard it on the street, we’ve seen in on Facebook(Follow Tami Winbury) and Twitter(Follow Tami Wnbury), and we’ve seen it in our own neighborhoods: low inventory is a major story in the real estate market right now. While it is not a universal condition, a low inventory of homes on the market seems to be prevalent in many desirable areas. Inventory levels, the amount of time it would take to sell all existing homes on the market without any new homes being added, are dropping below normal (it varies by market but six months is often considered a good indicator). The low inventory situation exists both major cities and in some suburban areas. Let’s take a look at a few recent stories:

Denver, Colorado

From the Denver Post: The number of showings per listing has risen as the housing inventory has fallen. During a stable market a typical inventory level would be around five to seven months, Boulder County’s inventory is 3.4 months.

Portland, Oregon

From Oregon Live: In the Portland area December closed with fewer than 6,400 homes listed for sale. At that month’s sales rate it would only take 3.6 months to work through that supply. Average inventory level for the area is generally six months.

Seattle, Washington

From the Seattle Post-Intelligencer: Sales of houses and condos In King County last year rose 19.9 percent, while the number of homes on the market fell by 36.9 percent. The inventory level fell from 6.7 to 3.4 months.

Los Angeles, California

From the Los Angeles Daily News: Warren Snyder, who co-owns Carriage Realty & American Broker Loans in Rolling Hills Estates was quoted as saying: “The short inventory count is causing people to pay more for the house. It’s supply and demand.”

Lubbock, Texas

From the Lubbock Avalanche-Journal: For the first time in several years, the Lubbock market’s existing months of inventory for December dropped below 1,300 homes or 4.5 months and officially transitioned from a buyer’s to a seller’s market, carrying last year’s strong recovery trend into 2013. Last year during this period the inventory level was around 6.5 percent.

West Palm Beach, Florida

From the Palm Beach Post: Palm Beach County Realtors have said one of their biggest challenges in recent months is a low inventory. T 4.7 in November, a 54 percent decrease from the same time in 2011. Condominium supply was at 4.8 months, down 47 percent from November 2011.

Raleigh-Durham, North Carolina

From the Triangle Business Journal: The Triangle MLS in North Carolina which covers an area including Raleigh, Durham, Cary and Chapel Hill areas, reported in December that the inventory of homes and properties listed on MLS in the region hit a new low with 11,802 homes listed for sale in December, which is about a 5.9-month supply level.

Portsmouth, New Hampshire:

From Fosters.com: The single family homes available for sale in the Seacoast area of New Hampshire at its lowest level since at least 2010, according to the Seacoast Board of REALTORS monthly survey of the 13-sample Seacoast towns.

New York, New York:

From NY1.com: The prediction for New York City is that inventory will remain low in 2013, especially because many sellers cannot afford to trade up or qualify for financing, so they are opting to stay put.

So what is a potential homebuyer to do? In our recent post on smart moves to make in 2013, Realtors® gave advice on backup offers and other strategies. If there is a home you like, be ready to take action because, from what we are seeing out there, it looks like it may not be on the market long.

President Barack Obama has won re-election, What are the housing-related challenges

Now that President Barack Obama has won re-election, What are the housing-related challenges staring the federal government square in the face. These are some of the decisions that will have to be made in the coming weeks:

1. The "fiscal cliff": The fiscal cliff is a series of tax increases and spending cuts that will go into effect unless U.S. lawmakers come up with an alternative plan to reduce the federal deficit by $1.2 trillion as required by the Budget Control Act of 2011. The spending cuts, known as "sequestrations," would automatically go into effect on Jan. 2 and be split evenly between defense spending and domestic spending.
The credit rating agency Standard & Poor's has said there's a 20 to 25 percent chance the U.S. economy will go into a double-dip recession should Congress fail to reach an agreement avoiding the fiscal cliff. S&P's deputy chief economist, Beth Ann Bovino, warned that such a scenario would cause home prices, currently at a bottom of 31 percent below their mid-2006 peak, to tumble to a record low of 40 percent below peak.
In a report released in September, the Obama administration called sequestration "bad policy" that "would be deeply destructive to national security, domestic investments, and core government functions." The president has put forward two deficit reduction proposals that included both spending cuts and revenue increases, but has run into opposition from some members of Congress who oppose tax increases and want to reduce the deficit solely through spending cuts, the report said.
Given that Congress remains divided after the election -- Republicans retained control of the U.S. House of Representatives and Democrats retained control of the U.S. Senate -- whether lawmakers can come to an agreement over the coming weeks remains a question.

2. The mortgage interest deduction (MID): Revamping the mortgage interest deduction is one of the solutions proposed to head off the fiscal cliff and could be part of a broader plan to streamline the tax code by eliminating some loopholes and deductions. Some experts have said the MID, which costs the government about $90 billion a year, is unlikely to survive in its present form, though what would take its place, if anything, is unclear.

Two years ago, a bipartisan deficit reduction commission recommended scaling back the MID, which is currently capped at mortgages worth up to $1 million for both principal and second homes and home equity debt up to $100,000. The deduction is available only to taxpayers who itemize.

The commission, often referred to as Simpson-Bowles, proposed turning the deduction into a 12 percent nonrefundable tax credit available to all taxpayers, capping eligibility to mortgages worth up to $500,000, and eliminating the deduction on interest from second homes and home equity debt.
The National Association of Realtors, which has consistently defended the mortgage interest deduction in its current form, was highly critical of the recommendation, claiming any changes to the MID could depreciate home prices by up to 15 percent, and promising to "remain vigilant in opposing any plan that modifies or excludes the deductibility of mortgage interest."

3. Mortgage debt forgiveness: Another homeowner tax break may be on the table in fiscal negotiations: the Mortgage Debt Relief Act of 2007, which is set to expire at the end of this year. The law exempts up to $2 million in mortgage debt forgiven by a lender in a short sale, loan modification or foreclosure from federal taxation. The law applies only to mortgage debt incurred to fund the purchase or improvement of a principal residence.
Banks have relied heavily on short sales to meet their obligations under the terms of a $25 billion settlement with the nation's five largest mortgage servicers over so-called "robo-signing" practices. If the debt relief law lapses, however, homeowners would have less of an incentive to pursue short sales because forgiven mortgage debt could be considered taxable income.

4. Qualified mortgages: Now that we know the Dodd-Frank Wall Street Reform and Consumer Protection Act is here to stay -- presidential candidate Mitt Romney had vowed to repeal it -- there are two controversial rules contained within the law that are waiting to be finalized: the qualified mortgage (QM) and the qualified residential mortgage (QRM).
QM would establish standards for borrowers' "ability to pay" the mortgages they seek, while QRM would establish certain baseline standards for safe underwriting and require lenders to retain a 5 percent minimum ongoing stake in any loans they originate that don't meet QRM requirements.
The regulations are under the aegis of the Consumer Financial Protection Bureau (CFPB), which postponed action on both rules in June after protests from Realtors, builders, banks, unions and consumer groups. Under Dodd-Frank, the CFPB is required to issue the qualified mortgage rule by Jan. 21, 2013.

Will election boost housing market?

Commentary: Expect new leadership at Fed and Treasury regardless of who wins

Contact Tami Winbury Keller Williams Realty for information about your local housing market.

The last economic data to be released before the election has given no advantage to either candidate. We did pick up 171,000 jobs in October, a little better than forecast, and revised up another 84,000 in prior months.

Markets are flat, I think suppressed more by the election than anything, although stocks are clearly hurt by diminished earnings. Foreign action has also been muted and deferred by our election, especially in Europe.

So, Wednesday morning -- assuming we know the election results by then -- how will events and markets break from months of unnatural quiet?

1. We'll know by then. The 2000 election was a coin toss like this one, but the damned thing won't land on its edge again ... not twice in four tries.

2. Who? Obama has an Electoral College edge, but that edge has narrowed steadily. Iffy polling results this year seem to make even the pollsters queasy. This one may more resemble '48 and the Chicago Tribune's "Dewey Beats Truman!" -- but either man could be Truman.

3. With no forecast to work with, markets can't discount either outcome. Wednesday could be an explosive trading day, but maybe not. If it's Obama, things are going to happen fast; if it's Romney, no matter what he says after winning, he still won't be in office for almost three months.

4. Fiscal cliff. If it's Romney, then Obama and Congress will punt 90 days. If it's Obama, markets will begin to trade rapidly on prospects for a deal. If Obama sticks with his ethereal hope that "Congress will reach a compromise," find something big and solid to hide under.

In our system of government -- intentionally designed so that it's hard to get things done, and so that nothing at all gets done in a hurry --either the president leads, putting his reputation on the line and giving cover to legislators of his own party, or nothing of substance ever happens.

If we seem in for a replay of 2011, markets aren't going to like it. If we get a deal -- a real one -- markets will like it no matter how tilted Left or Right.

5. No matter who gets elected, Tim Geithner will be gone from Treasury. He has wanted to leave for a year, and the White House has not explained why it begged him to stay. Anybody can do nothing. It's been a challenge to annoy Right, Left, and Business Center, but the Prince of Procrastination has been up to it. Whoever replaces the Wizard of Waiting cannot do less.

6. Any pop the economy gets from an Obama resolution of the fiscal cliff will be smothered in its crib by runaway regulation. Romney might overdo regulation relief, but it would take many years to do harm: Really bad financial actors and practices are long gone. Even Vikram Pandit is gone. The link from regulation to the economy is finance. Somebody is going to have to decide, quickly, whether we want Dodd-Frank and Basel III risk-based bank capital rules, or want loans. A or B.

7. Housing. Finance is everything, and the most damaged by the "regulation bubble." Edward J. DeMarco, czar of Fannie and Freddie, must be either removed or recalibrated. There will come a day to privatize these two, but squeezing the life out of them before a private supply exists makes a broad housing recovery impossible. Oh, by the way, the FHA needs a $50 billion to $100 billion bailout.

Housing's benefit from the election? I don't see any. Obama's record is clear: nothing. However, Romney is fond of the privatizing nincompoops. Worse than nothing.

8. The new guy will nominate the next Fed chairman. There are many able candidates, but this is a tough stream in which to change horses.

Lou Barnes is a mortgage broker and nationally syndicated columnist based in Boulder, Colo. He can be reached at lbarnes@pmglending.com.

Contact Tami Winbury Keller Williams Realty for information about your local housing market. DRE# 01878369 805-798-3412

Home Ownership- Ready?

Home Ownership

Ready?

Knowledge and experience are the keys to successful real estate transactions. REALTOR.com® contains an enormous amount of valuable information, and such data -- combined with the expertise, experience and training of Tami Winbury Keller Williams Realty -- can be the essential keys to your success.

One of the keys to making the home-buying process easier and more understandable is planning. In doing so, you'll be able to anticipate requests from lenders, lawyers and a host of other professionals. Furthermore, planning will help you discover valuable shortcuts in the home-buying process.

Do You Know What You Want? Whether you are a first-time home buyer or entering the marketplace as a repeat buyer, you need to ask why you want to buy. Are you planning to move to a new community due to a lifestyle change or is buying an option and not a requirement? What would you like in terms of real estate that you do not now have? Do you have a purchasing timeframe?

Whatever your answers, the more you know about the real estate marketplace, the more likely you are to effectively define your goals. As an interesting exercise, it can be worthwhile to look at the questions above and to then discuss them in detail when meeting Tami Winbury Keller Williams Realty.

Do You Have The Money?
Homes and financing are closely intertwined. (Financing is the difference between the purchase price and the down payment, commonly referred to as debt or the mortgage.) The good news is that over the years new and innovative loan programs have evolved which require a 5 percent down payment or less. In fact, a number of programs now allow purchasers to buy real estate with nothing down.

In addition to a down payment, purchasers also need cash for closing costs (the final costs associated with closing the loan). Several newly emerging loan programs not only allow the purchase of a home with no money down, but also underwrite closing costs.

Not everyone, however, elects to purchase with little or no money down. Less money down means higher monthly mortgage payments, so most home buyers choose to buy with some cash up front.

As to closing costs, in markets where buyers have leverage, it may be possible to negotiate an offer for a home that requires the owner to pay some or all of your settlement expenses. Speak with Tami Winbury for details.

Is Your Financial House in Order?
Those great loans with little or nothing down are not available to everyone: You need good credit. For at least one year prior to purchasing a home, you should assure that every credit card bill, rent check, car payment and other debt is paid in full and on time.

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Call Tami Winbury Keller Williams Realty today for more information about buying or selling your home. 805-798-3412. DRE#01878369

Make it Happy

Read this and Remember to Make Everyday Happy!  I know I forget... Take a minute and make everyday just a little bit special for your children... and your man!
peace love lemonade: Make it Happy: Most folks are about as happy as they make up their minds to be. Abraham Lincoln  We all know things can't possibly ALWAYS be great, ...