Move quick!

Now is the spring season and in our marketplace the demand for housing is up and the inventory is down.  This is important to note as our market is more of a seller's marketplace versus a buyer's market and there are many competitive offers for properties.  If you are a buyer, you must act quickly and realize not every property will be on the market forever and also know you may be in a competitive bidding situation with other buyers.  This has happened frequently this spring.  Also note, rates are going to climb so to take advantage of lower interests and greater buying power, now is the time to consider getting out there looking at homes and making an offer.  For more information about our marketplace or house hunting, please contact Rob Millman at (812) 528-3028 or mailto:rmillman@prudentialindiana.com

Discovering Financing Options

If you are considering the purchase of a home, it has to be an exciting time for you!  One of the first steps I always recommend is for a prospective buyer to determine the amount of their buying power.  When making an offer, or for that matter even looking at property, a savy listing broker will ask you or a buyer agent representing you, if you have evidence of buyer power.  My recommendation as a good first step is to speak with a lender about pre-approval for mortgage.  This process usually only takes about 15 mintues and is well worth the effort.  It provides you a clear definition of your ability to purchase and also assists your agent to know your true capabilities to purchase.  Another positive factor is it helps your broker to know the parameters of the type of home to seek.  If you are a first-time homebuyer using FHA or Rural Development financing, for the most part, you can rule out foreclosed or REO properties needing a lot of work.  The home you will purchase will need to be in good condition.  Of course, there are exceptions to the rule if you are using a program like FHA 203K which is for non-structural improvements to the home.  There may be some similar programs I am unaware of, but a good 'rule of thumb' is to only search for homes in better condition.

If you are a conventional buyer, meaning you have at least 5% to place down on a mortgage, there are more opportunities for you. 

Also, please understand the difference between pre-qualification and pre-approval.  A lender can pre-qualify you based upon your income and monthly outgoing expenses without pulling your credit report.  However to get pre-approved, the lender will have to actually contact the credit bureaus and obtain your credit report to determine your credit score and worthiness for a mortgage.

If you are serious about purchasing, please give me a call and we can discuss your situation and determine which program may work for you and connect you with a lender to meet your needs.

Best to you!

Jackson County Real Estate Market Indicators

Jackson County Real Estate Market Indicators

Many would describe the past few years as the good, the bad and the unknown.  Instead of accepting a despondent attitude, there are several positive factors to contemplate for 2011.

First, we have hit bottom!  The market has only one way to go and that is up!  Thirty Year Interest rates for residential housing continues to remain extremely attractive near the 5.00% mark.  These are great rates and shouldn’t preclude anyone from making a decision to sell and buy.  The Employment level in Jackson County has steadily been increasing over the course of the past six months and is cause for a smile.

Now is a good time to consider making a move as home prices have made their adjustment.  Inventory levels are down in some price ranges keeping home values steady - a function of supply and demand.  We have a shortage of good rental homes in the county which should be a preemptive consideration for the need for new construction.  

In mid-December, I was in a meeting with Eugenio Aleman, Senior Economist for Wells Fargo.  Eugenio indicated as a nation we lost 9 million jobs with the recession and our current absorption rate is 200,000 jobs per month.  Based upon these factors, he suggested it will be approximately four years to complete the absorption and feel the full effects of the recovery.

Do you remember the ole’ adage, “buy low and sell high”?  We are in the expansion phase of the real estate cycle.  Now is the time to make moves to best position yourself by making purchase decisions anticipating projected gains in the future.

Our local lenders have many attractive programs for homeowners,  I would suggest, if you even have an inkling to move, now is one of the greatest opportunities ever to make your decision and give them a call.

If you have questions or comments, maybe thinking of moving, please contact Rob Millman (812) 528-3028.

Taking the First Step!

Taking the first step when house hunting and contacting a real estate professional can be scary.  It is good to evaluate the broker you choose to work with based upon experience, ability and professional credentials.  It is best to meet in the office face to face and talk about criterias you are seeking in a home and also to be totally truthful about your financial situation.  Not everyone likes to talk about their finances and the past several years has not been kind to most of our bank accounts.  So do not fear, as conversations are confidential and the real estate professional you choose can help lead you in the direction of a selection of lenders matching your situation whether you are a first time homebuyer or experienced in the process.

Some key points you may want to consider is resale value for when you choose to move.  Many buyers will quip, 'this will be my last home', but rarely is that really the case.  So keep in mind location, curb appeal, amenities, school districts, and condition of the home.  As a good reminder, you will want at least 3% reserves for unexpected maintenance and repair costs after the sale.  There are no perfect homes and it is good to have some savings on hand for unexpected emergencies.  Ask for a home warranty when crafting your purchase agreement to cover major components in case of an unexpected repair.  Be sure to read the home warranty as many times a small amount of extra coverage may lower your deductibles or provide additional protection.

Taking the first step with your eyes wide open will give you personal reassurance you are making the right decisions.

Preparing to Sell Your Home

January is a good time to consider preparing your home for the market and developing a strategy to get it sold fast.  Typically, March is the biggest showing month of the year and in preparation to have your home on the market by no later than the last week of February takes some forethought. 

There are three key caveats to selling a home: location, condition and pricing.  Obviously, it is not likely you can uproot your house and move it to a different location, however determining the best attributes of your neighborhood when selling is very important.  Is your home close to schools, parks, medical facilities and shopping?  Also evaluate your neighborhood property values and if they are stable, increasing or decreasing.

The next consideration is condition.  How would you rate the condition of your home on a 1-5 scale with 5 being best?  The key to staging is to declutterize, neutralize and depersonalize.  This is essential to prepare your home for showing as staging your home if it were a model home will sell it faster. 

The final key is pricing to fair market value.  Now for most home sellers this is the most stressful of the cavets to understand.  A Harvard study found most people usually value their posessions considerably higher than their actual worth.  Noting this fact, it may be a good exercise to visit competing homes in the marketplace and discover where they are located, the condition and pricing so you may best position your home in the market for a fast sell.  It also may provide a good dose of reality to fully understand market values.

By preparing now - you can make needed improvements to your house like declutterizing, painting, neutralizing your home, putting away family photos, and finally repairing any deferred maintenance items.  It only takes 15 seconds for a buyer to determine if they want you house or if they are ready to move on to the next.  Preparing your home to sell is like getting it ready for a date. My suggestion is to view videos like 'Dress Your House for Success' by Martha Webb and take heed to suggestions found on programs you may watch on HGTV. 

If you are serious about moving, contact me so we may discuss your plans and so I may provide you with suggestions to prepare for the market and discuss a pricing strategy.