Can you afford to purchase if prices or interest rates rise?
Is there merit in waiting for the housing market to cool before jumping in to buy a home? While that question may be on the minds of many consumers, the possibility of a significant drop in home prices coupled with a terrific downward trend in mortgage interest rates is rather remote.
Potential buyers and investors have given considerable thought to both housing prices and interest rates recently for two reasons: First, they have been intrigued by comments from national economists about the statistics supplied by the U.S. Census Bureau and Department of Housing and Urban Development that showed a 10.2 percent drop in the rate of new single-family home sales between July 2006 and July 2007. Second, mortgage money for many homes will be more difficult (and possibly more expensive) to obtain, given the subprime fallout and reports that borrowers in the "jumbo" category (loan amounts greater than $417,000) were facing increased scrutiny.
The idea of "saving my money until home prices come down" has probably become a contradiction in terms -- at least for the foreseeable future. Yes, housing is cyclical but it usually does not go backward for very long, if at all. The additional money you save now probably will not offset the potential appreciation or the fatter monthly payment that could result if interest rates rise.
For example, if a $250,000 home appreciated 5 percent in the next year, could you sock away an extra $12,500 in after-tax savings to counter that gain? This also does not take into account additional tax savings from the mortgage-interest deduction. Or, if the market remains flat and mortgage interest rates rise, will you still even be able to qualify for the home of your choice?
Mortgage-interest news has not been positive. The inflation and energy fears that were in the news two years ago have now taken a backseat to how scarce mortgage money could become -- especially for jumbo loans.
So, if you find the home you've always wanted and have your financing lined up -- whether it be a primary residence, a second home or investment property -- buy it and hold on to it. Real estate has been a terrific long-term investment and will continue to be especially in neighborhoods with a consistent, proven rental clientele -- like a college or university town.
For example, a 55-plus couple that we know has always wanted to return to the college town where they attended school. Their kids have grown and moved away; their primary source of income was Internet-based; and their dream was to reconnect with Slavic languages, earn teaching credentials and become teachers at a community college. Even though they had found a home in the college town and the area had shown consistent appreciation, the couple was concerned about the housing outlook.
While the market "might have peaked" nationally, housing is local. Boom markets, where real price growth increases at least 30 percent over three years, have been heavily concentrated in California (21), the Northeast (18), and Florida (11). And, according to the Federal Deposit Insurance Corp., boom does not necessarily lead to bust -- only 17 percent of all housing booms ended in busts. Most busts were preceded by a significant stress in local economies, such as loss of jobs. A bust is defined as a nominal drop of 15 percent over five years. Having that type of decline -- for that long -- would require a dramatic event.
There are usually no such dramatic events in college towns. A permanent pool of buyers and renters makes a college town a prime target for older residents (like our friends) and investors. The number of visiting professors to college campuses always is underestimated, as are the number of staffers (secretaries, security, catering and librarians) who often are terrific rental-lease prospects. Investor inquiries to human resource representatives have worked wonders in landing mature renters, as have inquiries posted in faculty lounges and in on-campus faculty living areas. Graduate students (some married) also form a significant, yet not-targeted, renter pool. Sometimes, professors seek alternative housing for highly coveted students.
Do not take all national housing news and apply it as gospel in each and every neighborhood. Housing will continue to work well as a long-term investment as long as strong fundamentals are in place.
http://www.robsellscharlottesville.com/
Showing posts with label Monday Night Football. Show all posts
Showing posts with label Monday Night Football. Show all posts
Monday, October 1, 2007
Despite housing slowdown, today's the time to buy
Can you afford to purchase if prices or interest rates rise?
Is there merit in waiting for the housing market to cool before jumping in to buy a home? While that question may be on the minds of many consumers, the possibility of a significant drop in home prices coupled with a terrific downward trend in mortgage interest rates is rather remote.
Potential buyers and investors have given considerable thought to both housing prices and interest rates recently for two reasons: First, they have been intrigued by comments from national economists about the statistics supplied by the U.S. Census Bureau and Department of Housing and Urban Development that showed a 10.2 percent drop in the rate of new single-family home sales between July 2006 and July 2007. Second, mortgage money for many homes will be more difficult (and possibly more expensive) to obtain, given the subprime fallout and reports that borrowers in the "jumbo" category (loan amounts greater than $417,000) were facing increased scrutiny.
The idea of "saving my money until home prices come down" has probably become a contradiction in terms -- at least for the foreseeable future. Yes, housing is cyclical but it usually does not go backward for very long, if at all. The additional money you save now probably will not offset the potential appreciation or the fatter monthly payment that could result if interest rates rise.
For example, if a $250,000 home appreciated 5 percent in the next year, could you sock away an extra $12,500 in after-tax savings to counter that gain? This also does not take into account additional tax savings from the mortgage-interest deduction. Or, if the market remains flat and mortgage interest rates rise, will you still even be able to qualify for the home of your choice?
Mortgage-interest news has not been positive. The inflation and energy fears that were in the news two years ago have now taken a backseat to how scarce mortgage money could become -- especially for jumbo loans.
So, if you find the home you've always wanted and have your financing lined up -- whether it be a primary residence, a second home or investment property -- buy it and hold on to it. Real estate has been a terrific long-term investment and will continue to be especially in neighborhoods with a consistent, proven rental clientele -- like a college or university town.
For example, a 55-plus couple that we know has always wanted to return to the college town where they attended school. Their kids have grown and moved away; their primary source of income was Internet-based; and their dream was to reconnect with Slavic languages, earn teaching credentials and become teachers at a community college. Even though they had found a home in the college town and the area had shown consistent appreciation, the couple was concerned about the housing outlook.
While the market "might have peaked" nationally, housing is local. Boom markets, where real price growth increases at least 30 percent over three years, have been heavily concentrated in California (21), the Northeast (18), and Florida (11). And, according to the Federal Deposit Insurance Corp., boom does not necessarily lead to bust -- only 17 percent of all housing booms ended in busts. Most busts were preceded by a significant stress in local economies, such as loss of jobs. A bust is defined as a nominal drop of 15 percent over five years. Having that type of decline -- for that long -- would require a dramatic event.
There are usually no such dramatic events in college towns. A permanent pool of buyers and renters makes a college town a prime target for older residents (like our friends) and investors. The number of visiting professors to college campuses always is underestimated, as are the number of staffers (secretaries, security, catering and librarians) who often are terrific rental-lease prospects. Investor inquiries to human resource representatives have worked wonders in landing mature renters, as have inquiries posted in faculty lounges and in on-campus faculty living areas. Graduate students (some married) also form a significant, yet not-targeted, renter pool. Sometimes, professors seek alternative housing for highly coveted students.
Do not take all national housing news and apply it as gospel in each and every neighborhood. Housing will continue to work well as a long-term investment as long as strong fundamentals are in place.
http://www.robsellscharlottesville.com/
Is there merit in waiting for the housing market to cool before jumping in to buy a home? While that question may be on the minds of many consumers, the possibility of a significant drop in home prices coupled with a terrific downward trend in mortgage interest rates is rather remote.
Potential buyers and investors have given considerable thought to both housing prices and interest rates recently for two reasons: First, they have been intrigued by comments from national economists about the statistics supplied by the U.S. Census Bureau and Department of Housing and Urban Development that showed a 10.2 percent drop in the rate of new single-family home sales between July 2006 and July 2007. Second, mortgage money for many homes will be more difficult (and possibly more expensive) to obtain, given the subprime fallout and reports that borrowers in the "jumbo" category (loan amounts greater than $417,000) were facing increased scrutiny.
The idea of "saving my money until home prices come down" has probably become a contradiction in terms -- at least for the foreseeable future. Yes, housing is cyclical but it usually does not go backward for very long, if at all. The additional money you save now probably will not offset the potential appreciation or the fatter monthly payment that could result if interest rates rise.
For example, if a $250,000 home appreciated 5 percent in the next year, could you sock away an extra $12,500 in after-tax savings to counter that gain? This also does not take into account additional tax savings from the mortgage-interest deduction. Or, if the market remains flat and mortgage interest rates rise, will you still even be able to qualify for the home of your choice?
Mortgage-interest news has not been positive. The inflation and energy fears that were in the news two years ago have now taken a backseat to how scarce mortgage money could become -- especially for jumbo loans.
So, if you find the home you've always wanted and have your financing lined up -- whether it be a primary residence, a second home or investment property -- buy it and hold on to it. Real estate has been a terrific long-term investment and will continue to be especially in neighborhoods with a consistent, proven rental clientele -- like a college or university town.
For example, a 55-plus couple that we know has always wanted to return to the college town where they attended school. Their kids have grown and moved away; their primary source of income was Internet-based; and their dream was to reconnect with Slavic languages, earn teaching credentials and become teachers at a community college. Even though they had found a home in the college town and the area had shown consistent appreciation, the couple was concerned about the housing outlook.
While the market "might have peaked" nationally, housing is local. Boom markets, where real price growth increases at least 30 percent over three years, have been heavily concentrated in California (21), the Northeast (18), and Florida (11). And, according to the Federal Deposit Insurance Corp., boom does not necessarily lead to bust -- only 17 percent of all housing booms ended in busts. Most busts were preceded by a significant stress in local economies, such as loss of jobs. A bust is defined as a nominal drop of 15 percent over five years. Having that type of decline -- for that long -- would require a dramatic event.
There are usually no such dramatic events in college towns. A permanent pool of buyers and renters makes a college town a prime target for older residents (like our friends) and investors. The number of visiting professors to college campuses always is underestimated, as are the number of staffers (secretaries, security, catering and librarians) who often are terrific rental-lease prospects. Investor inquiries to human resource representatives have worked wonders in landing mature renters, as have inquiries posted in faculty lounges and in on-campus faculty living areas. Graduate students (some married) also form a significant, yet not-targeted, renter pool. Sometimes, professors seek alternative housing for highly coveted students.
Do not take all national housing news and apply it as gospel in each and every neighborhood. Housing will continue to work well as a long-term investment as long as strong fundamentals are in place.
http://www.robsellscharlottesville.com/
Friday, September 28, 2007
Important Buyer Information
Still searching for the right listing? If you are unable to find your ‘perfect’ home, don’t hesitate to contact us! Let us know if you require any assistance or information on any of the listings sent via our site. Our goal is to make your purchasing decision as smooth and stress free as possible.
Are you undecided on the right home for you? Before purchasing a home, you need to determine whether the home you have decided on is the right home for you. We are here to assist you with this decision, however there are a few items to consider beforehand:
How Long are you Planning on Living in the Home? In order to cover your selling costs and recover the cost of your home, you should plan on staying in your new home for an average of 3 to 4 years. Depending on economic factors, this time can either be lengthened or shortened.
How Long will the Home Meet Your Needs? Make sure that your home will meet your space requirements both now and in the future, depending on how long you plan to live there. Can the den be converted to a bedroom? Will the spare room be appropriate for a dining room? Renovating your home may accommodate your expanding or shrinking family.
Is the House the Right Price? Determine whether the home is a good fit for your financial situation. Many financial institutions will pre-qualify you for a mortgage even before you begin your home search. This will help to determine what price range you can afford. In addition, try the Mortgage Calculator available on our website to help you determine the right price.
What is the Physical Condition of the House?Always keep in mind that your house will require repairs. If these costs are of concern, make sure to choose a home that will reflect your renovation budget. As well, home inspections are very important in order to help reduce such unexpected costs.
Are you thinking about that perfect house and wondering what it will take to make it your own? When you decide that it is time to start the negotiation process there are a few key rules to keep in mind:
- Be assertive and aggressive. Question what you are told. If you do not agree with what is being said, speak up. This is an important decision and involves a great financial responsibility on your part. Make sure you are getting what you need.- Be patient and give the appearance that you would be willing to walk away. Be prepared for this process to take some time. Do not show your desperation, no matter how much you love the property.- Become a good and prepared listener. Make sure you know the property before entering the negotiations. Listening to what is being said is much more effective if you have prepared yourself prior to entering the negotiations.
The negotiations can be a time consuming and sometimes frustrating process. Remember to take the time to think rationally. Time is on your side and chances are the seller is just as eager to sell as you are to buy.
Please do not hesitate to contact us or visit our websites!!
http://robsellscharlottesville.com/
http://www.theaverygroup.com/
Are you undecided on the right home for you? Before purchasing a home, you need to determine whether the home you have decided on is the right home for you. We are here to assist you with this decision, however there are a few items to consider beforehand:
How Long are you Planning on Living in the Home? In order to cover your selling costs and recover the cost of your home, you should plan on staying in your new home for an average of 3 to 4 years. Depending on economic factors, this time can either be lengthened or shortened.
How Long will the Home Meet Your Needs? Make sure that your home will meet your space requirements both now and in the future, depending on how long you plan to live there. Can the den be converted to a bedroom? Will the spare room be appropriate for a dining room? Renovating your home may accommodate your expanding or shrinking family.
Is the House the Right Price? Determine whether the home is a good fit for your financial situation. Many financial institutions will pre-qualify you for a mortgage even before you begin your home search. This will help to determine what price range you can afford. In addition, try the Mortgage Calculator available on our website to help you determine the right price.
What is the Physical Condition of the House?Always keep in mind that your house will require repairs. If these costs are of concern, make sure to choose a home that will reflect your renovation budget. As well, home inspections are very important in order to help reduce such unexpected costs.
Are you thinking about that perfect house and wondering what it will take to make it your own? When you decide that it is time to start the negotiation process there are a few key rules to keep in mind:
- Be assertive and aggressive. Question what you are told. If you do not agree with what is being said, speak up. This is an important decision and involves a great financial responsibility on your part. Make sure you are getting what you need.- Be patient and give the appearance that you would be willing to walk away. Be prepared for this process to take some time. Do not show your desperation, no matter how much you love the property.- Become a good and prepared listener. Make sure you know the property before entering the negotiations. Listening to what is being said is much more effective if you have prepared yourself prior to entering the negotiations.
The negotiations can be a time consuming and sometimes frustrating process. Remember to take the time to think rationally. Time is on your side and chances are the seller is just as eager to sell as you are to buy.
Please do not hesitate to contact us or visit our websites!!
http://robsellscharlottesville.com/
http://www.theaverygroup.com/
Important Buyer Information
Still searching for the right listing? If you are unable to find your ‘perfect’ home, don’t hesitate to contact us! Let us know if you require any assistance or information on any of the listings sent via our site. Our goal is to make your purchasing decision as smooth and stress free as possible.
Are you undecided on the right home for you? Before purchasing a home, you need to determine whether the home you have decided on is the right home for you. We are here to assist you with this decision, however there are a few items to consider beforehand:
How Long are you Planning on Living in the Home? In order to cover your selling costs and recover the cost of your home, you should plan on staying in your new home for an average of 3 to 4 years. Depending on economic factors, this time can either be lengthened or shortened.
How Long will the Home Meet Your Needs? Make sure that your home will meet your space requirements both now and in the future, depending on how long you plan to live there. Can the den be converted to a bedroom? Will the spare room be appropriate for a dining room? Renovating your home may accommodate your expanding or shrinking family.
Is the House the Right Price? Determine whether the home is a good fit for your financial situation. Many financial institutions will pre-qualify you for a mortgage even before you begin your home search. This will help to determine what price range you can afford. In addition, try the Mortgage Calculator available on our website to help you determine the right price.
What is the Physical Condition of the House?Always keep in mind that your house will require repairs. If these costs are of concern, make sure to choose a home that will reflect your renovation budget. As well, home inspections are very important in order to help reduce such unexpected costs.
Are you thinking about that perfect house and wondering what it will take to make it your own? When you decide that it is time to start the negotiation process there are a few key rules to keep in mind:
- Be assertive and aggressive. Question what you are told. If you do not agree with what is being said, speak up. This is an important decision and involves a great financial responsibility on your part. Make sure you are getting what you need.- Be patient and give the appearance that you would be willing to walk away. Be prepared for this process to take some time. Do not show your desperation, no matter how much you love the property.- Become a good and prepared listener. Make sure you know the property before entering the negotiations. Listening to what is being said is much more effective if you have prepared yourself prior to entering the negotiations.
The negotiations can be a time consuming and sometimes frustrating process. Remember to take the time to think rationally. Time is on your side and chances are the seller is just as eager to sell as you are to buy.
Please do not hesitate to contact us or visit our websites!!
http://robsellscharlottesville.com/
http://www.theaverygroup.com/
Are you undecided on the right home for you? Before purchasing a home, you need to determine whether the home you have decided on is the right home for you. We are here to assist you with this decision, however there are a few items to consider beforehand:
How Long are you Planning on Living in the Home? In order to cover your selling costs and recover the cost of your home, you should plan on staying in your new home for an average of 3 to 4 years. Depending on economic factors, this time can either be lengthened or shortened.
How Long will the Home Meet Your Needs? Make sure that your home will meet your space requirements both now and in the future, depending on how long you plan to live there. Can the den be converted to a bedroom? Will the spare room be appropriate for a dining room? Renovating your home may accommodate your expanding or shrinking family.
Is the House the Right Price? Determine whether the home is a good fit for your financial situation. Many financial institutions will pre-qualify you for a mortgage even before you begin your home search. This will help to determine what price range you can afford. In addition, try the Mortgage Calculator available on our website to help you determine the right price.
What is the Physical Condition of the House?Always keep in mind that your house will require repairs. If these costs are of concern, make sure to choose a home that will reflect your renovation budget. As well, home inspections are very important in order to help reduce such unexpected costs.
Are you thinking about that perfect house and wondering what it will take to make it your own? When you decide that it is time to start the negotiation process there are a few key rules to keep in mind:
- Be assertive and aggressive. Question what you are told. If you do not agree with what is being said, speak up. This is an important decision and involves a great financial responsibility on your part. Make sure you are getting what you need.- Be patient and give the appearance that you would be willing to walk away. Be prepared for this process to take some time. Do not show your desperation, no matter how much you love the property.- Become a good and prepared listener. Make sure you know the property before entering the negotiations. Listening to what is being said is much more effective if you have prepared yourself prior to entering the negotiations.
The negotiations can be a time consuming and sometimes frustrating process. Remember to take the time to think rationally. Time is on your side and chances are the seller is just as eager to sell as you are to buy.
Please do not hesitate to contact us or visit our websites!!
http://robsellscharlottesville.com/
http://www.theaverygroup.com/
Wednesday, September 26, 2007
Avoid The Most Common Buyer Errors
Shopping for a new home is an emotional experience. It’s also time consuming and comes with a myriad of details. Some buyers, however, caught up in the excitement of buying a new home tend to overlook some items. Their home purchase turns into an expensive process. These errors generally fall into three areas:
- Paying too much
- Losing a dream home to another buyer
- Buying the wrong home
When you have a systematic plan before you shop, you’ll be sure to avoid these costly errors. Here are some tips on making the most of your home purchase:
Bidding without sufficient information
What price do you offer a seller? Is the seller’s asking price too high? Is it a deal? Without research on the market and comparable homes, you could lose thousands of dollars. Before you make that offer, be sure you have researched the market. A professional realtor, can offer an unbiased opinion on the value of a home, based on market conditions, condition of the home and neighborhood. Without knowledge of the market, your offer could be too much. Or worse, you could miss out on a great buying opportunity.
Buying a mis-matched home
What do you need and want in a home? Sounds simple. Yet, clearly identifying your needs and bringing an objective view to home shopping, leaves you in a better position. Sometimes, home buyers buy a home that is too large or too small. Perhaps they didn’t consider the drive to work, the distance to school, or the many repair jobs waiting for completion. Plan ahead. Use your needs list as a guideline for every home you view.
Unclear title
Before you sign any document, be sure the property you are considering is free of all encumbrances. As part of their services, a realtor can supply you with a copy of the title to ensure there are no liens, debts, undisclosed owners, leases or easements.
Outdated survey
Before the purchase is completed, an updated survey is essential. This report will indicate boundaries and structural changes (additions to the house, a new swimming pool, neighbor’s new fence which is extending a boundary line, etc.).
Unexpected repairs
For $300 - $500 a professional inspector will conduct a thorough inspection of the home. This way, you’ll have an idea of the cost of future repairs. Make the final contract subject to a favourable report.
Shopping without pre-approval
It only takes a few days to get financing pre-approval. When you are shopping for a home, this gives you more power. A seller is more likely to consider an offer from a serious buyer.
Remember additional cost
Besides the funds for the purchase of a home, you’ll need funds for items such as loan fees, insurance, legal fees, surveys, inspections, etc.
Rushing the closing
Before you sign, ensure that all documentation clearly reflects your understanding and conditions of the transaction. Has anything been forgotten? Don’t rush. You could lose money, financing or even the sale.
http://www.robsellscharlottesville.com/
Avoid The Most Common Buyer Errors
Shopping for a new home is an emotional experience. It’s also time consuming and comes with a myriad of details. Some buyers, however, caught up in the excitement of buying a new home tend to overlook some items. Their home purchase turns into an expensive process. These errors generally fall into three areas:
- Paying too much
- Losing a dream home to another buyer
- Buying the wrong home
When you have a systematic plan before you shop, you’ll be sure to avoid these costly errors. Here are some tips on making the most of your home purchase:
Bidding without sufficient information
What price do you offer a seller? Is the seller’s asking price too high? Is it a deal? Without research on the market and comparable homes, you could lose thousands of dollars. Before you make that offer, be sure you have researched the market. A professional realtor, can offer an unbiased opinion on the value of a home, based on market conditions, condition of the home and neighborhood. Without knowledge of the market, your offer could be too much. Or worse, you could miss out on a great buying opportunity.
Buying a mis-matched home
What do you need and want in a home? Sounds simple. Yet, clearly identifying your needs and bringing an objective view to home shopping, leaves you in a better position. Sometimes, home buyers buy a home that is too large or too small. Perhaps they didn’t consider the drive to work, the distance to school, or the many repair jobs waiting for completion. Plan ahead. Use your needs list as a guideline for every home you view.
Unclear title
Before you sign any document, be sure the property you are considering is free of all encumbrances. As part of their services, a realtor can supply you with a copy of the title to ensure there are no liens, debts, undisclosed owners, leases or easements.
Outdated survey
Before the purchase is completed, an updated survey is essential. This report will indicate boundaries and structural changes (additions to the house, a new swimming pool, neighbor’s new fence which is extending a boundary line, etc.).
Unexpected repairs
For $300 - $500 a professional inspector will conduct a thorough inspection of the home. This way, you’ll have an idea of the cost of future repairs. Make the final contract subject to a favourable report.
Shopping without pre-approval
It only takes a few days to get financing pre-approval. When you are shopping for a home, this gives you more power. A seller is more likely to consider an offer from a serious buyer.
Remember additional cost
Besides the funds for the purchase of a home, you’ll need funds for items such as loan fees, insurance, legal fees, surveys, inspections, etc.
Rushing the closing
Before you sign, ensure that all documentation clearly reflects your understanding and conditions of the transaction. Has anything been forgotten? Don’t rush. You could lose money, financing or even the sale.
http://www.robsellscharlottesville.com/
Wednesday, September 12, 2007
Monday Night Football Party!!!!
Monday Night Football Party!!!
Monday Night Football Party Every Monday Night at Rivals Sports Bar and Grill on Rio Road. Kick-off is at 8:30 PM!! Click the Link for more Information!!
BlogCatalog
http://www.robsellscharlottesville.com
Monday Night Football Party Every Monday Night at Rivals Sports Bar and Grill on Rio Road. Kick-off is at 8:30 PM!! Click the Link for more Information!!
BlogCatalog
http://www.robsellscharlottesville.com
Monday Night Football Party!!!!
Monday Night Football Party!!!
Monday Night Football Party Every Monday Night at Rivals Sports Bar and Grill on Rio Road. Kick-off is at 8:30 PM!! Click the Link for more Information!!
BlogCatalog
http://www.robsellscharlottesville.com
Monday Night Football Party Every Monday Night at Rivals Sports Bar and Grill on Rio Road. Kick-off is at 8:30 PM!! Click the Link for more Information!!
BlogCatalog
http://www.robsellscharlottesville.com
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