Characteristics of a Homebuyer

Every year I wait patiently for the new NAR report on buyers and sellers.  There is a wealth of information there that I like to study because I think it helps me as a Realtor to know what buyers and sellers want and how I can use that information in my business. 

We hear so much today in the news about housing and it effects peoples decisions.  In Virginia, we have not seen as many foreclosures as in other areas but that doesn’t mean they are not there along with short sales.  We have to look at our market in a local way – not global.  There are great buys in Lynchburg, Va. and the interest rates are very strong and worth looking into for ownership. 

  I know it is hard if you buy and have to sell a few years later for whatever reason.  A lot of people are falling into this problem.  My son took a new job in South Carolina not knowing at the time when he bought his house in Virginia that he would be moving so soon after buying the house.  Right now, he  is renting in South Carolina until his homes sells in Virgina.  Most buyers though stay in a home at least 7-10 years and have equity in those homes.   Home owners has remained the top reason for buying a home in Virginia.

Here are just a few of the highlights that I have found in the new 2010 Profile of Home Buyers and Sellers.

• 50% of recent home buyers were first time homebuyers
• First time homebuyers were an average age of 30 years old
• Repeat buyers were an average age of 49 years old

The 2009 Median household income of buyers was $72,200.

• First Time Homebuyers was $59,900
• Repeat buyers was $87,000

Those who bought homes in 2009 20% were single female and 12% were single male.

The PRIMARY reason for their recent purchase of a home was to own a home.

If you are like many home owners right now; you are having trouble paying your mortgage.  Your job has been downsized or you have lost your job all together.  There is hope for you  before you have to lose your home to foreclosure.

Listen to the Video below from www.MakingHomeAffordable.gov and get help before it is too late.

It’s Got To Be Real!

Hello clients, friends and followers,

  As per the news media this week, this is the worst housing market in years.  There is no denying that the market is slower than last year, but what I can tell you is that right now in Central Virginia we have great listings with owners who want to sell.  Interest rates are historically low.  Lenders have been asked to lend money—to get the market moving again.  Our unemployment rate is lower than the national average.  We all know what a great place this is to live.  I am asking you to be my advocate and let people know that there is no better time than now to buy a home!

 Thanks for your help.

WASHINGTON June 16 (Reuters) – The U.S. Senate voted on Wednesday to give homebuyers another three months to settle on their contracts and take advantage of a popular tax credit that sparked a rush of activity in the housing market.

 The Senate, with a vote of 60-37, accepted an amendment that extends the closing deadline to Sept. 30 for buyers who met the April 30 deadline to have a signed contract.

 The current deadline requires buyers to close by June 30 to get the $8,000 tax credit for first-time homebuyers. Existing homeowners buying a new primary residence are eligible for a $6,500 credit.

The proposal would not have a significant impact on future home sales as the extension would be only

for homebuyers who already had a contract in hand by April 30.

Looking for Realtor who will listen to your needs in real estate and be there with you through out the transaction and thereafter?  Call Brenda at 434-258-7670 or email her at brenda.moore@realliving.com

ADJUSTABLE-RATE (ARM) A mortgage that does not have a fixed interest rate. Based on market conditions, the rate can increase or decrease, affecting your payment.

ESCROW - Monies or documents held by a neutral third party before closing on a property.  It can also be an account held by the lender, set up for the payment of taxes or insurance.

FIXED-RATE LOANS – A mortgage that has a fixed interest rate throughout the life of the loan.  Repayment terms are generally 15, 20 or 30 years.

LOAN ORIGINATION FEES – A fee charged by the lender for processing a loan.

LOCK-IN – A written agreement setting a specific interest rate on a home loan.  The lock-in is typically good for a specific  time, usually 60 to 90 days.

POINTS – These fees are paid to the lender for the loan, usually in relation to the interest rate.  One point is equal to 1 percent of the principal amount of a mortgage loan.

PRIVATE MORTGAGE INSURANCE (PMI) – This fee protects the lender against a loss if a borrower defaults on the loan and is added to the monthly mortgage payment.  PMI is usually required if the down payment is less than 20% of the purchase price.

Looking for a Realtor who is going to go the extra mile with you?  Call me, Brenda Moore, ABR, GRI, REALTOR at 434-258-7670, REAL LIVING CORNERSTONE, FARMVILLE, VA. 23901.  Brenda serves the Lynchburg, Va. area and surrounding Counties.

Looking for an Insurance Agent who will take great care of your needs?  Call Connie Kesler with Kesler and Associates Insurance Group. Inc. – ckesler@keslerandassociates.com – 434- 316-2076. 

It can be easy for homebuyers to overlook home insurance costs. Most buyers tend to focus on factors such as quality of neighborhood, property taxes, school districts and available recreational and cultural outlets. But the seemingly mundane detail of home insurance can add up to a big investment. The size, location, construction and overall condition of a house can affect insurance cost, choice and availability, according to the Insurance Information Institute. When looking at prospective homes, the Institute recommends that homebuyers consider the following:

•  Where is the nearest fire department? Houses located near a fire station usually cost less to insure.
• Are the plumbing and electrical systems in good condition? Poorly maintained, unsafe and/or outdated systems are more costly to insure than well-maintained ones.
• Is the home vulnerable to wind damage? A beach home may be more susceptible to wind damage and can be more costly to insure than homes located inland.
• Is the home at risk for flooding or located in a flood zone? Most standard homeowners’ insurance policies do not cover floods, so you may need a separate policy, which you can get through the National Flood Insurance Program, which is serviced by private carriers, or from a few specialty insurers.
• Is the home located in an earthquake-prone area? If so, earthquake insurance requires an endorsement or a separate policy.
• Is the house well constructed and well maintained? Homes built with disaster-resistant materials and designed to meet currentbuilding codes are more likely to withstand natural disasters.

 Your home is your biggest investment. Make sure you protect it with the right type of homeowners’ insurance policy.

Brought to you by your Agent, A Member of the Council of Residential Specialist.

Considering a move to a new city? Before you pack your bags and hire a moving company, be sure to research the potential price tag of relocating. It may cost more than you think.

Cost of living can vary greatly from town to town, so be sure to do some research before taking the plunge. Better Homes and Gardens recommends browsing the local newspaper for grocery promotions, ads, and other local news to track costs so you can put those figures into a worksheet and determine the income you might need. While several cost-of-living calculators are available on the Internet, they provide only general figures and don’t take into account specific housing needs.

Be sure to ask a Certified Residential Specialist in your target area about “hidden” homeownership costs, such as recreation fees, trash collection and community services. Try to obtain a one-year sampling of utility bills for the type of home you’re considering. What can you expect to pay for telephone, cable TV and Internet services? Will you have your own septic tank and water pump, or will the community provide water service?

There are a host of other expenses to consider. What taxes will you pay? Higher taxes may mean better schools, libraries, trash collection and other community services, while lower taxes could mean higher expenses for these services. But it pays to have all the facts before you make a move.

Likewise, transportation and parking costs often are higher in larger cities, while a small-town commute can mean a short walk or bike ride. Also, gas prices can be more costly in some areas than in others.

Leisure time costs can add up as well. How much more will you have to pay for tennis or health club memberships, adult education classes and golf course fees?

Moving away from family and friends can mean more frequent phone calls and trips back home, so be sure to allow for those additional costs as well.

Brought to you by your Agent, A Member of the Council of Residential Specialist.

Market value is the main concept you must understand when determining the value of your home. But what is it and how can it help you price your home?

What is market value?
Market value is the amount prospective buyers are willing to pay at the time homeowners are ready to sell. The best way to find out the market value of your home is to ask me for help. I can ensure that you get the best price by providing and discussing with you the Comparative Market Analysis (CMA).

What is a CMA?
The CMA will include homes in your area that are currently on the market, expired from the market, pending a sale and already sold within the last three to six months. Of course, the best indicator of your home’s value is the price for similar homes in your area that have already been sold. The comparison is based on the proximity to your home and the similarity of characteristics such as lot size, square footage, number of bedrooms and baths, etc.

It’s a good idea to sit down with me to discuss how each factor of the market analysis affects your home’s value. You can consider the current listings to identify the competition, recently sold homes to indicate what buyers are willing to pay, homes with a sale pending to show the current demand and expired homes to suggest what buyers are unwilling to pay.

What are the dos and don’ts?
Do obtain the CMA and discuss the findings with me. Don’t price your home based on factors not affecting the market value. Those factors include how much money you need to buy your next home, how much you paid for your current home, how much you paid for home improvements, the value of similar homes in different communities, area appreciation statistics, the cost to build the same home today and personal attachment.

Discovering how much your home is worth is the first step to ensure that your home is priced correctly. So, take the time, do the research, talk with me, and together we can decide what the best price is in today’s market.

Contact me for more information.

Exterior Photos
When preparing to photograph the exterior of your home, your yard should be tidy. If there’s snow, shovel your walkway and driveway. Make sure large piles of leaves and yard waste are left out of the picture. Your driveway should be cleared of cars, garbage bins and any other yard tools. Hoses and sprinklers should be removed as well. Groom flowerbeds, bushes and trees so they don’t overtake the front of the house. Patios and walkways should be swept and well maintained.

Living Spaces
Inside your home, make sure all lights are turned on and all blinds are open to achieve the maximum amount of light in each room. This helps capture the color of the walls, furniture and depth of the room. Staging your room in a way that displays very little furniture helps the room appear larger to a potential buyer. Finally, if you have valuables, don’t include them in the photograph. Displaying expensive pieces of artwork or heirlooms can increase the risk of robbery or a breach in security.

Kitchens
When photographing the kitchen, ceiling fans, televisions and kitchen appliances should be turned off because they pose a major distraction in the photo. Anything stuck to the refrigerator should be removed including magnets, pictures and fliers. De-cluttering countertops creates the illusion of larger workspaces, so make sure to remove toasters, seasonings, breadbaskets, etc.

Bathrooms
All toiletries and cosmetics should be stored in cupboards or closets out of sight. Make sure the bath and shower have been scrubbed clean of all mildew and soap scum. Clean towels should be neatly placed on racks and all products should be taken out of the shower.

Most importantly, family, friends and pets should stay out of these photographs. You are trying to showcase your home, not your relations, so keep them out of the picture.

Contact me directly, as your agent I’m happy to assist with this task and make your home shine.