Nancy Kratt/Century 21 Sunbelt Realty: Want to Sell Your Home in a Slow Market?

Nancy Kratt/Century 21 Sunbelt Realty: Want to Sell Your Home in a Slow Market?: "As we all know, the real estate market has slowed down in recent months. But rest assured, there are still plenty of homebuyers eager to ma..."

Want to Sell Your Home in a Slow Market?

As we all know, the real estate market has slowed down in recent months. But rest assured, there are still plenty of homebuyers eager to make a purchase. Knowing how to prepare your home for sale, when to allow access for showings, and how you can offer buyer incentives will help you find the right buyer, even in a declining market. So, before you even put your home on the market, make sure that all basic repairs are completed. Nothing can turn off a prospective buyer quicker than loose railings, torn screens or missing hardware on cupboard doors. These easy repairs do not cost a lot of money. If a homebuyer sees that the little things are not attended to, they are likely to believe that the larger things are neglected too. Let buyers know that you have pride in your home by making sure that all of the small repairs are taken care of. Another important key item, keep your home clean throughout the time it is on the market. In a slow real estate market, it is important to have your home available to show at a moment's notice. The more often your home is shown, the likelier it is that your home will sell. Keep your home available to your realtor and they will be able to show your home quickly to any buyer that shows interest. Have your home staged by a professional. Home staging has become a booming business and a professional home stager will help you remove clutter and depersonalize your space. Prospective homebuyers want to picture their family in the home, not yours and a home full of personal clutter will not show off the potential of your home. Keep pets contained during a real estate showing and make sure that your cat litter box is always clean. Pet owners tend to get used to the odors caused by litter boxes and it is important that you remember to clean it every day. Nothing will turn off a prospective home buyer like a home that smells. Many people are fearful of dogs, especially ones that they do not know. Make sure that you either take your dog with you for a showing or put them on a leash outside. Most important item, be realistic in your expectations of the price you will be able to sell your home. Forget about what could have been if you had sold it last year and focus on what your home is worth now. In a buyer's market, buyers don't have to negotiate much. Buyers know that you want to sell your home and a home that is priced too high is likely to be looked over. Ask a fair price for your home to avoid the need for too much negotiation. In a slow market, hiring a real estate agent is crucial to get your home sold in a reasonable amount of time. Yes, there are ways you can list your home for sale by owner using the internet, but nothing beats the experience that comes from a real estate agent who is able to take care of everything in order to sell your home. Selling your home can be a stressful time, but you can be successful in selling your home if you remain patient, reasonable and flexible. There are buyers out there and the key is to find them and get them to fall in love with your home. So if you or someone you know wants to sell their home, I am here to help guide them through a succesful sale!

7 ways to avoid a crummy real-estate agent

Does your agent never get in touch, fail to offer advice, or work only part time? Well, it's about time you ditch the dud and find someone who is effective.

In an uncertain housing market, an effective real-estate agent can be a big help to consumers looking to buy or sell property. But not all real-estate agents are created equal. Consumers who end up with a dud throw additional risk onto what's already likely to be the largest financial transaction of their lives. Choosing a real-estate agent is a major decision.

So you want to make sure — whether you are selling or buying — that you have somebody who is effective for you. But with so many options, how do you pinpoint the best broker?

To help consumers struggling with this question, here is a list of seven ways to avoid a crummy real-estate agent:

1. Locate candidates
Begin your selection process by putting together a slate of qualified candidates. Start by speaking with friends and relatives who have recently bought or sold a home. What did they think about their agent? Would they use that agent again?

Get some really good word-of-mouth recommendations from people who have used an agent. That is a key piece to whatever you are doing.

2. Run background checks
Once you have a handful of names, it's time for a bit of detective work. Plug the names into Google or your local newspaper's online search engine and see what pops up.  If you Google somebody and you can't find their cell phone (number) and you can't find their e-mail and you can't find their (website)  —  you don't see them marketing themselves on blogs and various websites, on Twitter and Facebook  —  it probably means that they don't necessarily have the marketing skills in this day and age to do the job.

Consumers can even run a background check through the website of their state's real-estate licensing board.  Make sure that the person you are (considering for your agent) has a license. It may seem obvious, but sometimes you forget that.

3. Conduct interviews
After narrowing down the field of candidates, meet the agents face to face.

The main thing is to sit down with the Realtor and make sure that you feel comfortable with that individual and you feel like you can have a working relationship with them.  

4. Establish experience
In addition to getting a feel for an agent's personality and professionalism, there are several key qualifications consumers should establish during the interview. Determining the agent's experience in your target market is perhaps the most important. You really need to ask them where they work most of the time: Where do you live? Where do you work? What area of town are most of your transactions in. Consumers should look for agents with extensive experience in the area where their transaction is taking place.

5. Consider communication
Consumers need to be sure that their agent will communicate effectively with them as the process unfolds.

Those who are Gen Xers want to only talk to you via e-mail and text, and there might be some agents who might be of an age where e-mail and text aren't the major ways of communication.  Misunderstandings happen when you don't have all of that worked out upfront.

But regardless of the form of communication, consumers need an agent who is responsive and easy to reach. And you can test that.  Call them on off hours and see if they respond and how quickly they do respond. … If they don't get back to you (promptly), that is a huge red flag.

6. Know resources, commitment
Agents who have robust resources will often be able to produce better results for their clients. Inquire about additional resources, such as a staff, that the agent can bring to bear on the transaction.  A bonus would be if somebody has a team or an assistant.  That's just kind of a good sign that they have got their business structure together.

Steer clear of agents who work in real estate only part time. They are probably doing that and something else, whether it is raising a family or doing another job. You do want somebody who is fully devoted to being either a sales or a buyers agent.

7. Call references
Finally, consumers should ask agents for a list of clients they have represented recently.  References are good, but the thing that most people don't do is they don't call them.  Call them.  When speaking with references, consumers should try to find out as many details as possible about the agent's performance during previous transactions.

How to Get a Low Mortgage Rate

Mortgage Interest Rate and Credit Scores

Often referred to as a FICO score (for the Fair Isaac Company, which created one of the best-known credit formulas), the score measures a combination of how regularly you pay your bills, live within your means, and manage debt. Of all the considerations, lenders pay closest attention to your history of payments. If there was one piece of advice I can offer my clients, it's to pay every bill on time. Do it religiously and don't make minimum payments. It may sound obvious, but the key to a low interest rate is credit score stability, and creditors' priorities reflect that. While different reporting agencies may vary slightly in the how they weigh the various factors (FICO is not the only measurement used by the three major credit bureaus), credit scores are based on five key elements:

Paying bills on time: 35%

Debt-to-credit-limit ratio: 30%
How long you've had the credit: 15%
Pursuit of new credit: 10%
Types of credit used: 10%

Have 6 Months of Stable Credit History for a Lower Interest RateTo present a picture of financial stability, I suggest that homebuyers take at least six months to get their finances in order before applying for a mortgage in order to get the best mortgage interest rate. In this economy, risk managers are looking in the strangest places to analyze your spending habits -- including the grocery line. If you never buy your groceries with a credit card, and then you suddenly start using it, that's a red flag. Some are surprised to find that their interest rates have gone up because of changes in their spending patterns. And while something as mundane as grocery shopping may not directly affect your mortgage interest rate,  an accumulation of such minor discrepancies could hurt a lender's faith in you.

Unfortunately, stability can come at a high price, as even some positive changes in your finances can shake your lender's confidence. Part of what goes into the credit algorithm is the time you've spent working at your job. So while changing jobs for a pay raise might seem like a no-brainer, if you're expecting to apply for a mortgage within the next year, you may want to hold off until you've secured a good mortgage interest rate.

Keep a Low Debt-to-Credit-Limit RatioYou should never use more than 50 percent of your total credit limit. In fact,  using 40, 30, or even 5 percent is even better. In other words, the total debt you owe on any account should never approach the total credit limit. This is because credit formulas divide the sum of your balances by the sum of your credit, and use this number to judge how well you live within your means. Just because you have a high credit limit doesn't mean you should prove that you need all, or even most of it. Mortgage lenders see such spending as the sign of a high-risk borrower and therefore set higher mortgage interest rates for frequent offenders -- if they lend to them at all.

Opening and Closing Accounts

At the same time, don't panic and start shuffling cards in an attempt to artificially change your ratio -- you'll only cause more damage and potentially hurt your chances of getting a low mortgage interest rate. Closing credit cards without a balance, for instance, reduces your total credit limit, and therefore worsens your debt-to-income ratio. If you close your oldest card, your credit history becomes younger, which hurts your long-term reliability. Finally, if you open up new cards in the six months prior to applying for a mortgage, it suggests to lenders that you're having trouble paying bills and that will also ding your score. So, serial shoppers should beware of department stores that offer membership credit cards in exchange for discounts. These too can prevent you from getting a low mortgage interest rate when applying for a home loan.

Diversify Your Credit HistoryOne way to help ensure you'll get the best mortgage interest rate is to show your lender that you can handle a variety of loans, including fixed payments (mortgages, car payments, student loans) and revolving credit (credit cards). The best way to stay current with your balances is to sign up for automated bill payment. Provided you haven't charged more than you're capable of paying, you'll never suffer another late payment again.

Renters, Take HeedThere are some individuals with credit scores in the high 700s who won't qualify for the best mortgage interest rate because of past indiscretions on their credit report. In a growing number of cases, larger landlords are reporting their tenants' rent-payment records. Any creditor can deal directly with the three major credit bureaus. So treat your landlord like you would your lender. By the same token, if you always were on time with rent payments you should request that your landlord submit a positive report to the credit bureaus; it will make you more appealing to lenders, especially if you don't have very established credit.

Beware "Credit Repair"When you hear someone say they can improve your credit in a short period of time, you should run for the hills. While some people have tried to game the system and artificially inflate their credit score in the hope of getting a lower mortgage interest rate, these efforts are usually made in vain, and for a hefty fee. It's not just the FICO score. Lenders look at the credit report when deciding the mortgage interest rate. It's more important to avoid behavior that indicates job loss, or some other financial instability. Throughout the plodding process of preparing one's credit, patience is a virtue. There is no substitution for establishing a long track record of reliability.

Get Your Credit Report and Check for Errors79% percent of credit reports have a serious error or other mistakes, and one in four reports has an error so bad that it could prevent someone from getting credit at all -- let alone a low mortgage interest rate.  You are entitled to an annual free report from each of the three credit bureaus: Experian, TransUnion and Equifax.

The Final Test

The average home purchase takes about four to five months. If there's anything I would share with prospective homebuyers hoping for a low mortgage interest rate, it's to remember that "affording a new home means a lot more than paying the mortgage."

One way to test whether you're ready to make the move, is to determine just how much you'll be spending monthly in addition to your mortgage payments. Once you've added up your projected mortgage payment and all your other budgetary items (be honest), put this money aside for three to six months in a savings account. If you find that you need to dip into it for emergencies, you can't yet afford your new payment. But if you can comfortably get by without touching the account, you're not only ready for your mortgage, you've also built up a handsome hunk of change toward your down payment.

Americans: Home Ownership Still a Great Investment

Seventy-five percent of Americans say that “owning a home is the best long-term investment they can make and is worth the risk of ups and downs in the housing market,” according to a new survey of 2,000 bipartisan voters by the National Association of Home Builders. Despite their situation — whether underwater on their home or even renters — the survey found Americans to be optimistic about home ownership. Eighty-one percent of those who own their homes outright, 76 percent with mortgages, 67 percent of renters, and 65 percent who have underwater mortgages cited home ownership as the “best long-term investment.” When survey respondents were asked whether they’d recommend buying a home to a friend or family member just starting out, 80 percent of Americans said “yes.” Even home owners currently underwater — those who owe more on their mortgage than their home is currently worth — overwhelmingly (78 percent) said they would recommend home ownership to family or friends starting out.  More buyers are coming up through the pipeline too. The survey found that 73 percent of those surveyed who do not own a home said their goal is eventually to buy one. The NAHB survey also found: ▪ 58 percent of Americans oppose eliminating the mortgage-interest deduction and 63 percent oppose lowering it. What’s more, 57 percent of those surveyed say they are less likely to support a candidate for Congress who wanted to eliminate the mortgage-interest deduction.  ▪ Respondents were split on about requiring a 20 percent down payment to purchase a home: 49 percent were in favor and 49 percent opposed it. However, mortgage holders and renters aged 18 to 54 were more opposed to it: 58 percent of younger mortgage holders and 59 percent of younger renters opposed adding a 20 percent down payment requirement.

Are Homebuyers shying away from "fixer uppers?"

About 87% of first time homebuyers prefer a move-in ready property, according to a recent survey, which has real estate agents encouraging sellers to spruce up their homes before putting them on the market.

It seem buyers will pay a premium, engage in a bidding war and even overpay just to avoid buying a "project home."

Sellers who take the time to make cosmetic repairs, eliminate clutter and address maintenance issues will sell their homes faster and for more money. Removing excess furniture, clearing the floors and depersonalizing the space will make rooms look larger and help buyers imagine themselves living there.

Agents might even help seller declutter and stage, noting that those who refuse to do so will have to reduce their price expectations.

Less than perfect homes can however be a low priced opportunity to buyers willing to overlook minor imperfections and just need a little TLC.

I tell my buyers to look for the best bones or the best bang for your dollar in a home. Basically, if  you are able to get the worst home in a great area, you can only improve on your investment. You simply have to focus on potential in a down market.

Florida’s consumer confidence stays level for first time in months

June 1, 2011 – Consumer confidence among Floridians remained at 68 in May, ending three consecutive months of decline, according to a new University of Florida (UF) survey.

“While the overall consumer confidence index has declined steadily over the last several months and remained flat this month, there has been some uncharacteristic volatility in the individual components,” said Chris McCarty, director of UF’s Survey Research Center in the Bureau of Economic and Business Research. “Of particular interest are the changes in perceptions of personal finances. This month, there was a decline in perceptions of personal finances now compared to a year ago, while expectations of personal finances increased from a record low in the release last month. We attribute most of these changes to fallout from the Florida budget.”

Three of the five index components increased or remained the same. Perceptions of respondents’ personal financial situation expected a year from now experienced the largest increase, rising three points to 76. Perceptions of U.S. economic conditions over the next year (66) and perceptions of U.S. economic conditions over the next five years (72) remained the same.

Confidence in purchasing big-ticket items such as cars and appliances fell one point to 74, and perceptions of personal financial situation now compared with a year ago fell four points to 52.

Although April brought some positive signs of recovery, McCarty said the economic environment is still mixed. Unemployment dropped to 10.8 percent – the lowest in Florida since 2009 – but the rate is still one of the highest in the country. Median housing prices rose to $132,700, but McCarty said prices could decline as a backlog of foreclosures moves through the courts. Gas prices have declined the past two weeks, but should rise again with the summer travel season approaching.

“Looking ahead, Florida is once again at a crossroads,” McCarty said. “It is critical that the job situation in Florida continues to improve. Although there have been gains associated with a recovery in tourism, there are several thousand layoffs looming in the public sector and associated industries. These will likely show up in the unemployment rate for July or August. This will likely keep consumer confidence at relatively low levels in the upper 60s.”

The research center, a part of the Warrington College of Business Administration, conducts the Florida Consumer Attitude Survey monthly. Respondents are 18 or older and live in households telephoned randomly. The preliminary index for May was collected from 403 responses.

The index is benchmarked to 1966, so a value of 100 represents the same level of confidence for that year. The lowest index possible is a 2; the highest possible is 150.