Real Estate Educational Bits

Helpful hints, educational bits, and information that help in the purchase of real property.

10 Steps to Home Ownership in Rock Hill-step 4

Posted On: February 28, 2012 By: wayne in the category: Real Estate Educational Bits

10 Steps to Home Ownership In Rock Hill

Millions of new and existing homes are sold each year. There’s no shortage of housing options, but with so many choices the challenge becomes finding the property which best meets your needs.

The housing market is complicated because the stock of homes for sale is always in flux. If it were possible to have a complete list of every home for sale at this very moment in a given community, such a list would become obsolete within hours as new homes become available and properties now for sale are put under contract.

In effect, Rock Hill and Fort Mill buyers are looking at a moving target in a marketplace that is never static. Because of this, it is important to know as much as possible about the choices in preferred markets, and the way to do that is by working closely with a local Rock Hill realtor who has a good lay of the land.

What are you looking for?

A home is more than just a collection of bedrooms and bathrooms. Several properties in Rock Hill – each with four bedrooms, three baths, and the same price — may well represent radically different designs, commuting distances, lot sizes, tax costs, interior dimensions, and exterior finishes.

Each of us is different and so it’s important to list the features and benefits you want in a home. Consider such things as pricing, location, size, amenities (extras such as a pool or extra-large kitchen) and design (one floor or two, colonial or modern, etc.).

Next, it’s important to consider your priorities. If you can’t get a home at your price with all the features you want, then what features are most important? For instance, would you trade fewer bedrooms for a larger kitchen? A longer commute for a bigger lot and lower cost?

Lastly, consider your needs in several years. If you’ll need a larger home, maybe now is the time to buy a bigger house rather than moving or expanding in the future. If you expect your income to increase, perhaps you should consider a more expensive home financed with a loan program where monthly payments increase in the future.

Where should you look?

All Rock Hill neighborhoods and communities have a special nature that gives them identity and value. One community may be well known for historic homes while another offers both suburban living as well as easy access to uptown Charlotte office areas.

Rock Hill Real Estate and Homes offers thousands of homes online. By any standard, it’s the largest source for property information, online or off. You can look at homes to contact listing brokers, and you can also search Realtor.com® to find brokers who offer buyer representation services.

How do you find a house?

Some buyers like to search REALTOR.com® by looking at listings on the basis of location or price; others prefer to have local Rock Hill realtor suggest properties; and many buyers prefer both approaches.

Regardless of your choice, it’s important to target your search. By using basic measures such as general location and affordability, you can refine your search and focus on homes that offer the most desirable features.

As a guide, you should maintain a file with information on each of the homes you like. You can print out listing pages from REALTOR.com® and then make notes for each one — what you like, questions, Rock Hill realtor contact data, etc.

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10 Steps to Homeownership in Rock Hill-Step 3

Posted On: January 23, 2012 By: wayne in the category: Real Estate Educational Bits

Step 3-Get loan approval.

Few people can buy a home for cash. According to the National Association of REALTORS® (NAR), nearly nine out of 10 buyers finance their purchase, which means that virtually all buyers — especially first-time purchasers — required a loan. The real issue with real estate financing is not getting a loan (virtually anyone willing to pay lofty interest rates can find a mortgage). Instead, the idea is to get the loan that’s right for you — the mortgage with the lowest cost and best terms.

Rock Hill Realtors routinely suggest that consumers start the mortgage process well before bidding on a home. Many lenders (the sources of money) and programs, for example, are available right here in the finance section of Realtor.com as well as through recommendations from local Rock Hill Realtors. By meeting with lenders — either online or face to face — and looking at loan options, you will find which programs best meet your needs and how much you can afford.

Rock Hill Realtors also recommend pre approvals for another reason: Purchase forms often require buyers to apply for financing within a given time, in many cases, seven to 10 days. By meeting with loan officers in advance and identifying mortgage programs, it won’t be necessary to quickly find a lender, check credit, and rush into a financing decision that may not be the best option.

What is it?

“Pre-approval” means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can readily qualify for a given loan amount with one or more specific mortgage programs. Based on this information, the lender will provide a pre approval letter, which shows your borrowing power. You can visit as many lenders as you like and get several pre-approvals, but keep in mind that each one carries with it a new credit check, which will show up on future credit reports.

Although not a final loan commitment, the pre approval letter can be shown to listing brokers when bidding on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase. This information is important to owners since they do not want to accept an offer that is likely to fail because financing cannot be obtained.

How do you get pre-approval?

Rock Hill real estate financing is available from numerous sources, including lenders here in the finance section of Realtor.com, mortgage companies that have worked with local REALTORS® and in some cases, individual REALTORS® themselves. Based on his or her experience, the Rock Hill REALTOR® may suggest one or more lenders with a history of offering competitive programs and delivering promised rates and terms.

The loan officer will carefully review your financial situation, including your credit report and other information. The lender will then suggest programs which most-closely meet your needs. For instance, a first-time buyer may qualify for state-backed mortgage programs with little money down and low interest rates, while a repeat purchaser (someone who has bought a home before) with more equity (money invested in the home) might want to get a 15 year loan and the lower overall interest costs it represents. Typically, Rock Hill first-time buyers opt for the traditional 30-year loan, with either a floating interest rate or a fixed rate of interest over the life of the loan.

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10 Steps to ownership in Rock Hill- Step 2

Posted On: January 23, 2012 By: wayne in the category: Real Estate Educational Bits

Step 2- Find a Realtor

More than 2 million people in the United States have earned real estate licenses. However, real estate is a tough business with a steep dropout rate, and the result is that only a small percentage of those with licenses actively help buyers and sellers. The National Association of REALTORS® (NAR) includes 1 million brokers and salespeople, individuals bound together with a strong Code of Ethics, extensive training opportunities and a wealth of community information. NAR members are routinely active in PTAs, local government committees and a variety of neighborhood organizations. Being actively involved in community affairs provides Rock Hill Realtor with a better understanding of the area in which they are selling.

Why?

Buying and selling real estate is a complex matter. At first it might seem that by checking local picture books or online sites you could quickly find the right home at the right price.But a basic rule in real estate is that all properties are unique. No two properties — even two identical models on the same street — are precisely and exactly alike. Homes differ and so do contract terms, financing options, inspection requirements and closing costs. Also, no two transactions are alike. In this maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local Rock Hill Realtors who serve your area.

How do you choose?

In every community you’re likely to find a number of realty brokerages. Because there is heated competition, local Rock Hill Realtors must fight hard to succeed in your community.The best place to find a local REALTOR® is from REALTOR.com’s® extensive listing of community professionals and properties. Other sources include open houses, local advertising, Web sites, referrals from other Realtors, recommendations from neighbors and suggestions from lenders, attorneys, financial planners and CPAs. The experiences and recommendations of past clients can be invaluable. In many cases buyers will interview several Rock Hill Realtors before selecting one professional with whom to work. These interviews represent a good opportunity to consider such issues as training, experience, representation and professional certifications.

What should you expect when you work with a REALTOR®?

Once you select a REALTOR® you will want to establish a proper business relationship. You likely know that some REALTORS® represent sellers while others represent buyers. Each REALTOR® will explain the options available, describe how he or she typically works with individuals and provide you with complete agency disclosures (the ins and outs of your relationship with the agent) as required in your state. Once hired for the job, the REALTOR® will provide you with information detailing current market conditions, financing options and negotiating issues that might apply to a given situation. Remember: Because market conditions can change and the strategies that apply in one negotiation may be inappropriate in another, this information should not be set in stone. During your time in the marketplace Rock Hill Realtors will keep you updated and alert you to each step in the transaction process.

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10 Steps to ownership in Rock Hill- Step 1

Posted On: December 14, 2011 By: wayne in the category: Real Estate Educational Bits

Step 1: Are You Ready?

Knowledge and experience are the keys to successful Rock Hill real estate transactions. REALTOR.com® contains an enormous amount of valuable information, and such data — combined with the expertise, experience and training of a local Rock Hill Realtor — 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 Rock Hill home-buying process.

Do You Know What You Want?

Whether you are a Rock Hill 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 Rock Hill 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 with local Rock Hill Realtors.

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 a local Rock Hill Realtor for details.

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Question on Buying HUD Home in Rock Hill

Posted On: September 13, 2011 By: wayne in the category: Real Estate Educational Bits

This question is not specific to one person I have met. Many folks ask me some version of this all the time. Here is the short version. I say short version because there are many different types of REO (real estate owned) properties available. Most people call them HUD homes because that’s what they have heard before. For the record I will be using HUD instead of REO because search engines like it.

Question: What is a general rule of thumb for purchasing a Rock Hill HUD home for sale by the # of days on the market. i.e, 10 days 85 – 88%; 30 days, 60 days, and 90 days ? I want to bid on a Rock Hill HUD home for sale that’s been on the market over 90 days. I cannot find any advice on (in general terms) what to bid based on the days on the market. I know other factors should be included in my decision, so I just need a general idea.

Answer: There are a lot of things to take into consideration when dealing with Rock Hill HUD homes, and you are dealing with government and banking bureaucracies so anything goes from their end, although they expect you to play by their rules.

HUD actually has their homes for sale appraised when they go on the market which would indicate what value the Rock Hill home could get financing for in today’s environment. I say today’s because it is as of the day it was appraised, which can actually be weeks or sometimes months before it actually hits the market. While the Rock Hill home for sale today may have been on the market for 90 days, the appraisal could potentially be older than 120 days. The appraisal could be 5 or 6 months old. You never know what can change in a Rock Hill neighborhood in that time.

The best way to go about putting in a strong bid is to have your REALTOR® pull the comparable homes for sale in the area, compare the condition of the home to other homes for sale and sold in the area, and use the comparison to determine where you want to bid on a Rock Hill home. Even more factors can go into your bid amount. If you are a cash buyer, you can generally reduce your bid on a home further, because HUD likes cash buyers on homes for sale that have been on the market for a while. There is not a simple “percentage formula” that you can use. It all depends on the comparable homes for sale and your specific situation.

Find someone that is familiar with buying a Rock Hill HUD home and is familiar with the area where you want to live. If you are not already working with an agent, I would be happy to help you in any way that I can.

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Two bits of Positive real estate news-

Posted On: August 22, 2011 By: wayne in the category: Real Estate Educational Bits

The next two bits of news are taken from other news sources. I know this is my Rock Hill SC real estate blog and I do attempt to keep things local but I thought that this time it might be nice to hear a bit of good news. Also, ignore the guys crack about lenders. He’s just taking a shot. I work with a number of financial institutions in Rock Hill and you do not have to have perfect credit to be approved for a loan.

1. Existing homes sales up big time from a year ago.

Existing-home sales declined in July from an upwardly revised June pace but are notably higher than a year ago, according to the National Association of Realtors®. Monthly gains in the Northeast and Midwest were offset by declines in the West and South.

Total existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, fell 3.5 percent to a seasonally adjusted annual rate of 4.67 million in July from 4.84 million in June, but are 21.0 percent above the 3.86 million unit pace in July 2010, which was a cyclical low immediately following the expiration of the home buyer tax credit.

Lawrence Yun, NAR chief economist, said there is a tug and pull on the market. “Affordability conditions this year have been the most favorable on record dating back to 1970, but many buyers are being held back because banks are offering financing to only the most highly qualified borrowers, ignoring a large share of otherwise creditworthy buyers,” he said. “Those potential buyers represent the difference between an uneven recovery and a much more robust housing market that could stimulate additional economic activity and create jobs.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.55 percent in July, up from 4.51 percent in June; the rate was 4.56 percent in July 2010. Last week, Freddie Mac reported the 30-year fixed rate dropped to 4.32 percent.

2.Mortgage rates hit new depths

I’ll paraphrase some of this. The thoughts above come from Realtor.org. As a member I have the right to use the information whenever I choose. This next part is chopped out of a story from Inman. The jist of it is that rates are at historic lows. The reasons are long a kind of technical but the consensus seems to blame market instability. I’ve been banging the drum about how conditions are great for someone thinking about buying. Think about getting locked in at a 4.15 rate. Wow.

Freddie Mac’s latest Primary Mortgage Market Survey showed rates on both fixed- and adjustable-rate mortgages continuing a three-week slide to hit new record lows. Rates on loans tracked by Freddie Mac are now nearly a full percentage point below 2011 highs seen in February. Rates on 30-year fixed-rate mortgages averaged 4.15 percent with an average 0.7 point for the week ending Aug. 18, down from 4.32 percent last week and a 2011 high of 5.05 percent in February, Freddie Mac said. That’s a new all-time low for 30-year fixed-rate loans in Freddie Mac records dating to 1971, surpassing the previous record of 4.17 percent set during the week ending Nov. 11, 2010.

That’s about it. I just wanted to pass along something positive. If you have any additional questions about our area or housing market please contact your local Rock Hill Realtor. Me

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A Short List of Common First Time Homebuyer Mistakes

Posted On: May 4, 2011 By: wayne in the category: Real Estate Educational Bits

As a Rock Hill realtor having sold Rock Hill real estate for a while now I have a unique advantage of looking from the outside in on most real estate transactions. It’s my profession so by this point I have the ability to not become emotionally involved in a transaction. Of course I want my clients to be happy but sometimes when a person gets a notion into their head it’s hard to change their mind. Here are a couple of quick tips. Take them or leave them.

They don’t ask enough questions of their lender and might miss out on a deal. Or they don’t shop around for the right lender.
They don’t act quickly enough to make a decision and loose out to someone else. Just because there are more homes on the market now and people are itching to sell doesn’t mean there wasn’t someone else looking at the same home yesterday and loving it.
They don’t find the right Realtor to help them through the process. Of course I like the way I conduct myself but not everyone likes me. Interview a few.
They don’t do enough to make the offer appealing to the seller. Again, just because the seller might be eager to sell doesn’t mean they won’t be nervous about taking their home off of the market for a buyer who looks shaky.
The average first time homebuyer stays in their first home somewhere between three to seven years on average. Think about resale before you buy a home, not just the price/deal you are getting now.

As always, if you have any questions about this area contact a Rock Hill Realtor.

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Real Estate Educational Bits

10 Steps to Home Ownership in Rock Hill-step 4

10 Steps to Homeownership in Rock Hill-Step 3

10 Steps to ownership in Rock Hill- Step 2

10 Steps to ownership in Rock Hill- Step 1

Step 1: Are You Ready?

Question on Buying HUD Home in Rock Hill

Two bits of Positive real estate news-

A Short List of Common First Time Homebuyer Mistakes