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Affordably priced in Frisco, many homes are available today for under $150,000.
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Franzetti Real Estate | Serving all of Dallas Fort Worth
Frisco ISD 3 bedrooms, 2 bathrooms, $157,975 WOW
Click below for details and to schedule your personal showing.
http://friscolittleelm.kwrealty.com/listing/mlsid/173/propertyid/11613840/
3 Bed 2 Bath in Frisco $157,975
3 Bed 2 Bath in Frisco $157,975
3 Bed 2 Bath in Frisco $157,975
Now available in Sunset Pointe. Follow the link below.
http://singleentrylisting.com/4193/3028_baybreeze_dr
Minutes from the Tollway and new LL toll bridge. Master suite with dual vanities, game room, formal living and dining and a large backyard. Corner lot on very quiet friendly street. LEISD is an Exemplary school district.
Rismedia—In a landmark study examining the home buying and selling preferences of consumers in the Mid-Atlantic region, 95% reported that working with a real estate professional is just as important, if not more important, than it was just a few years ago. The survey results were released in a new research paper entitled Keepin’ it Real, by MRIS, the area’s Multiple Listing Service (MLS) and a leading developer of real estate information technology.
According to the report, which can be found on www.MRIS.com, today’s consumers recognize this is not the time to complete a real estate transaction on their own, and are placing a stronger emphasis on the agent’s professional skills. As such, trustworthiness was ranked as the most critical factor in choosing an agent, followed by experience, willingness to look out for a client’s interest, expertise in negotiating contracts, responsiveness, familiarity with contracts and knowledge of the local community. These requirements are evidence that consumers are seeking more than simple guidance, they are looking for an expert they can trust to execute a step-by-step process throughout the entire transaction.
“In today’s housing market especially, this is no time to go it alone,” noted John L. Heithaus, Chief Marketing Officer of MRIS. “With 95% of all buyers and sellers reporting that working with a professional real estate agent or broker is important, it is evident that consumers understand how vital they are to the process. A real estate professional has the industry knowledge, networking ability and expert guidance on home buying and selling to deliver top notch customer service and advice, and provide a successful experience for consumers.”
Additionally, the Keepin’ it Real report reveals that 68% of buyers and sellers rated their agent with a six or seven, on a 7-point satisfaction scale. This high level of consumer confidence reinforces the credibility of the real estate professionals in the Mid-Atlantic area. Nearly half of the consumers surveyed, or 48%, found their agent by way of referral. Moreover, 80% of consumers stated that they would recommend their agent to a friend or family member, especially those that purchased or sold a home in the past twelve months.
Whereas in years past, the agent was the first step in the home buying or selling process, today, Internet-savvy consumers can gather information and educate themselves, long before contacting an agent. The Internet empowers consumers to search for homes and neighborhood information, compare pricing and explore financing options on their own. Yet, despite all of the tools and resources available, when it comes time to actually buy or sell a home, there is nothing more valuable than the industry knowledge, expertise and guidance a real estate professional brings to the table.
The Keepin’ it Real research paper is confirmation that today, more than ever, a real estate professional is an invaluable resource in the home buying and selling process.
A credit score is one of the most important numbers in a person’s life. It determines the cost of major purchases like cars and homes. It is a deciding factor for landlords in picking renters and some employers use credit scores to find dependable workers. Unfortunately for borrowers, a favorable credit score is not easy to obtain. The economic crisis that began in 2008 forced lenders to raise their expectations for borrowers in the hopes of lowering their risks. The once “good” credit score of 680 has been devalued in favor of scores of 720 or more.
Credit scores range from 330 to 830 and the average score in the United States is 698. Even the nation’s top average score of 713 in New England is not high enough to qualify for the best rates on loans. This means that many Americans will find themselves spending hundreds or thousands of dollars more for cars, homes and other major purchases.
The Dirty Secret
Lenders evaluate FICO scores based on a tiered system that divides credit scores into five ranges. Scores below 620 are often considered subprime, and borrowers in this range will either be denied loans or be offered higher interest rates and lower loan limits. For example, a non-profit state loan agency set 770 or higher as the top tier of FICO scores. Borrowers in this range received the lowest interest rates. In previous years, the same agency ranked 680 in the lowest tier in which borrowers were subject to interest rates that were 4.15% higher than those with scores in the top tier.
Borrowers with a FICO score of 689 were placed in the lowest tier. A score only one point higher, 690, was enough to be bumped up to the next tier and amounted to an interest rate that was 2.5% lower. These same dramatic jumps in interest rates can be seen in other industries such as home mortgages and car loans. Borrowers are encouraged to shop around for loans because each lender has their own “break point” between tiers. If you can find a lender that places your score in a higher tier, it could result in significant savings over the term of your loan. Another option is to find a co-signer with a higher credit score who would be able to get you placed in a higher tier.
So What Does That Mean?
Using the standards of the nonprofit state loan agency in the example above, imagine that you need a 6-month loan for $4,000. If your credit score is 689, you would be charged an interest rate of LIBOR (London Interbank Offer Rate) plus 6.45%. As of Nov. 17, the LIBOR rate for 6-month loans was 0.44%. Based on those numbers, the interest rate would be 6.89 %. If your credit score was one point higher at 690 you would be bumped up to a higher tier. Your interest rate would be calculated at LIBOR+3.95% which equals 4.39%. Individuals who have poor credit will often be subject to higher interest loans which they might not be able to pay off accordingly; as a result their credit becomes worse and worse untill they are no longer able to qualify for loans.
Some experts say that as the economy continues to improve lenders will gradually lower the benchmark for solid credit. In the meantime, consumers with scores in the lower tiers should wait a few months before applying for a loan, and follow basis financial advice such as paying bills on time, monitoring their credit reports and managing debt to help raise their scores.
The Bottom Line
The tier system of credit scores can be extremely fickle. One point can be the difference between hundreds or thousands of dollars in loan payments. With the higher expectations of lenders, it is more important now than ever to shop around for the best rates and make financial decisions that keep your credit score as high as possible.
The combination of low prices, cheap mortgages, and a slowly improving job market should gradually entice buyers back to the market, setting the stage for prices to stabilize.
Wildcards: Foreclosures. If the investigations into robo-signed seizure documents and other issues turn up more problems for banks, foreclosures could be halted indefinitely. That would prop up prices in the short run but weigh them down over the long run.
Jobs. Housing demand could rise if the labor market picks up faster than expected. In that case, prices would firm up earlier in the year.
What to Watch: Signs of an improving market: three straight months of rising sales and a decreasing inventory of homes (a six-month supply is considered healthy; today it’s 11 months). A local agent or realtor’s association can supply you with that data.
Action Plan: Buyers. Don’t try to time the market perfectly. Even if prices fall a bit more in your area, mortgage rates could rise later in the year, offsetting the drop. Initially bid about 10% below what comparable homes have sold for over the past three months; go even lower if the area is rife with foreclosures.
By contrast, if well-priced houses in your desired area are receiving multiple offers — your agent will know — bid close to list price. But don’t engage in a bidding war, says Mark Foreman, senior vice president at Century 21. Plenty more homes will be coming onto the market.
Until your house keys are in hand, don’t change your financial profile don’t buy a car, take a new job, or pay a loan late. Increasingly lenders are re-pulling credit reports and reconfirming jobs just before closing, says Jim Gillespie, president of Coldwell Banker. Any changes could kill the deal.
Action Plan: Sellers. Hang on a few more years until the market recovers. Can’t hold off? Then try to unload fast.
Prices will be falling in most areas for the next several months and, depending on your location, the foreclosure slowdown in place may temporarily reduce your competition.
Wherever you are, pricing your home right is key. Buyers typically put an upper limit on their search in increments of $25,000 or $50,000. If your house is priced at $365,000, shoppers who cut their search at $350,000 may never see your home.
Best idea: Slightly underprice your house. More often than not you’ll attract numerous buyers who bid up the price, and you’ll end up getting fair value in much less time.
Action Plan: Investors. Assuming foreclosures have slowed where you are, hold off until a few months after they ramp up again. Until then, inventory will be limited, and that will set a floor under prices. When you’re ready to make your move, paying in cash will better the odds of a winning bid, says Foreman.
Action Plan: Owners. One word: refinance — even if you just did it a few years ago.
If you can shave at least one point off your rate and plan to stay in your home for at least four years, a refi makes sense. On a two-year-old $300,000 loan at 6.5%, refinancing will save you $465 a month and $120,000 in interest.
Or go with a 15-year loan, which averages 3.7%. Your payment will jump $225, but you’ll own your home 13 years earlier and save $253,000 in interest.
For a personal consultation, contact Franzetti Real Estate.
To pare down their growing inventory of properties, Fannie Mae and Freddie Mac are scrambling to unload nearly 150,000 foreclosed homes. And that means 2004-esque deals — like requiring as little as 3% down, offering to pay a portion of the closing costs and arranging special financing and warranties for repairs and renovations.
It’s another option for home owners who want to trade up — and an easier way into the market for first-time home buyers, says Dean Baker, co-director of the Center for Economic and Policy Research who studies the housing market.
The best bargain might be the home’s price. A Smart Money analysis revealed that buyers could save $100,000 by buying a Fannie or Freddie home instead of similar fair-market properties just a few blocks away.
And while many of Fannie and Freddie’s homes are at the lower end of the market and in less-desirable areas, buyers can still find properties in good neighborhoods — and for $100,000 less than comparable houses nearby. For example, a five-bedroom, three-bath with a backyard, deck and two-car garage in tony Alexandria, Va., was listed for $445,000, $100,000 less than the average listing price in the area, according to Trulia.com. Four blocks away, a similar non-foreclosed colonial is listed for $639,900.
The downside: Angry neighbors. These types of listings are devaluing nearby properties. That means in some areas where Freddie and Fannie homes are on the market, buyers could find a better deal on a nearby market-rate home that doesn’t require repairs.
Buying a Fannie or Freddie home can be more complex than pursuing an open-market real estate listing — or even a commercial bank foreclosed property. There’s a smaller selection of appealing properties — there were just six higher-end homes listed on a recent day in Alexandria, for example — and those tend to sell the fastest. And there’s little room to negotiate price.
The three best features of Fannie and Freddie foreclosures that make digging for these deals worthwhile:
Small Down Payment
For its foreclosed properties, Fannie Mae will accept down payments as low as 3% on 30-year mortgages at the same interest rates banks are currently offering. And Fannie Mae doesn’t require private mortgage insurance. Compared to a typical bank mortgage, which requires 10% down, plus PMI for buyers with less than 20%, that’s a huge savings — an estimated $51,000 up front and upwards of $2,500 per year PMI on a $300,000 mortgage.
It’s a tradeoff, though. For buyers with 20% down, mortgage payments on a 30-year mortgage loan at 5% would be $1,288 a month. With just 3% down, the buyer would need to borrow $291,000 and make a $1,562 monthly payment.
Help with Renovations
Fannie and Freddie have fixed big flaws like leaky roofs and damaged electrical work, and they often handle small projects like replacing appliances that are broken or missing, tearing up old carpet, or fixing other damage left by former owners or vandals.
Now, to entice buyers who want to update or upgrade, many of Fannie Mae’s properties come with an optional mortgage that includes extra financing up to $30,000 for repairs and improvements. But with a little down payment and the extra amount tacked on, the buyer could end up owing more than the house is worth — especially if home prices continue to drop.
First Dibs
Buyers who plan to live in their Freddie Mac-purchased home will get to see properties for at least the first 15 days they’re on the market — before the listing opens to would-be landlords. Many bank-owned foreclosure properties are snatched up by cash-stocked investors who can wait out the downturn to sell later at a profit.
And Fannie and Freddie homes can be seen inside and out — unlike some regular foreclosure listings. Consider bringing along a contractor when you view the home to help spot areas that need repairs and provide pricing. (Most contractors will do this for free.)
“It gives families who want to buy a home to live in the opportunity to look and bid without competition from cash-rich investors,” says a Freddie Mac spokesman.
Avg. Sales Price: 379,000
Avg. Days on Market: 25
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