Real Estate

I am giving my house away

The other day I was talking with a seller about his house. It had been on the market for a few months and he had only a few showings. He wanted the house sold which makes sense since he had listed for sale with a licensed Realtor.   According to the comps in the neighborhood, the house appeared to be priced at the top end of the pricing for the neighborhood. The house was completely redone with fresh paint and new flooring. He had installed new granite counter tops and appliances in the kitchen and the bathrooms had been updated.  The MLS had the house highlighted with 20 pictures, the max, and it had been emailed to many agents and buyers alike.  The Realtor had had a broker’s open and open houses but there were simply no offers. He was frustrated and was considering renting the house until the market improved.

Currently, we have a low level of inventory with low interest rates.  Many people consider us in a sellers’ market so I am assuming what he met to say is that he wants to wait until the property has appreciated to a higher value. Because while the market is good, we are still not making crazy speculative buys that have no merit.

I informed him that if the property was not showing and it was being marketed, which it was, that the price was too high. To which he responded, “Well anyone can give a property away.”  Regardless of what the area comparable show the market is rejecting the price of the home.  As I reviewed the other properties in the area, it appeared that the homes in the addition that were for sale may not have been updated to the same level as this gentleman’s property. And while the seller and Realtor could justify the list price, the buying public was choosing something else. If the property is not priced correctly, buyers will not waste their time looking at it, believing the seller is unreasonably.

I personally do not believe that you list a house too low. If you do, the buyers will know and multiple offers will force the price of the property back up to fair market value. I have personally witnessed this several times especially with foreclosed homes that are listed below value.

If you have questions regarding real estate, please feel free to contact me at 405-213-2992 or visit my website  http://www.sandiwalker.net

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HUD Properties

Buying a foreclosure home

Foreclosure homes have become a major segment of the home sales market. For many home buyers, purchasing a foreclosure property means buying a Great Deal. As with any home, buyers should be informed about the price, the neighborhood, and the condition of any property they are considering to buy.
Another important consideration about purchasing a foreclosure home is the available financing. With financing, not every foreclosure property is equal. Buyers should be aware what lender owns the home, and if there are any special financing options available.
Most foreclosure sellers do not offer special financing. Sometimes it can be difficult to purchase a foreclosure property, especially if there are condition issues. If a property has deferred maintenance, a new lender may not be willing to make a new loan on the property. Foreclosures are always sold “as is” and without repairs. This means that if the appraiser requires repairs to be done prior to the closing of your loan and your lender will not escrow for the repairs, you will not be able to buy the property. I do not know of any foreclosure seller that will allow a buyer to make repairs prior to closing and almost never will the seller make repairs.
FHA offers a great HUD foreclosure program. Regular FHA loan terms apply, which means the buyer can take advantage of the exceptionally low interest rates that FHA offers. Depending upon the severity of the repairs to the property, FHA may allow you to escrow for repairs. Please refer to a blog I wrote months ago about insured and uninsured properties.
This is one of my favorite loan programs in regards to foreclosures. You can search for a HUD Home here .
FNMA offers special financing with their HomePath program. These loans feature low down payments. One feature that many buyers like is that the loan does not have mortgage insurance. This is true but the interest rate tends to be a little higher.
FNMA also will allow after closing renovations, which can be an excellent option for someone purchasing a HomePath home.
Understanding your financing options is an important part of any home purchase decision. And it is especially important for those home buyers who are considering purchasing a foreclosure home. Some loan programs simply will not work with a foreclosed property. I strongly recommend not using a VA loan on a foreclosure property.
If you have questions regarding real estate please call me at 405-213-2992 or visit my website http://www.sandiwalker.net

Real Estate

Selling your home “as is”

I get calls from sellers who want to sell their home “as is”, sometimes. Maybe it needs more work than they want to put into it or they think “I live here and it all seems to work” or they don’t have the money to make repairs. I can understand all of those reasons.
But when selling a home we need to think about the person who is going to buy the house. I always say, “If you don’t know who is going to buy your house, how are you going to find them.” Meaning== are you Mr or Ms.. Seller, looking for a first time buyer, move up buyer or investor.
Most first time home buyers do not have the resources or the expertise or desire to make repairs to their first home. They are looking for a move in ready home. They are more likely to want the seller to make repairs that the home inspector suggests. As such, they may forego buying a listing that refuses to make repairs.
A move up buyer may be in a position to make repairs and may be willing to overlook some outdated items in the home or be willing to replace the carpet, but they will most likely take those repairs into consideration when making an offer.
If the property needs major repairs and the seller does not have the ability or resources to make the repairs but has equity in the property, then the best idea may be to sell the house “as is” and discount the property where a buyer would be willing to make the repairs. A buyer is not normally going to be willing to pay retail for a home that they are going to have to update or repair.
Keep in mind that depending upon the repairs the house may or may not be financeable. If the house is not financeable then the pool of buyers has just dwindled to cash buyers. And if I know anything about buyers, a cash buyer looking at a dilapidated property is looking for a deal.
It may be more beneficial for a seller to put a fresh coat of paint on the walls, clean or replace the carpets and do some touch ups before listing the property. And then be willing to make some repairs to the property. Regardless of whether you are selling the property or not a buyer has the right to inspect the property and if they find major deficiencies, they are most likely going to want adjust the price accordingly or they will walk away without buying it. In addition, the seller needs to disclose any property defects to potential buyers.
If you have questions about real estate, please feel free to call me at- 405-213-2992 or http://www.sandiwalker.net

Real Estate

Saving for a home

Today I received a call from a potential buyer. She wanted to buy a home and stop renting. She had about $500 saved and is currently paying $450 a month rent. She makes enough money to pay more in a mortgage payment, but so far has been spending what she makes. I know this because she only has a minimal amount of money in savings.
Honestly, there is not much available in today’s market for the $450 a month that she is use to paying in rent. She may be able to find a home that requires some work, but since she has nothing saved it would be hard to make the necessary repairs. Currently, she has enough for the earnest money but she has nothing saved for house maintenance and upkeep.
In my opinion, she needs to set a goal of saving some money but putting an extra $100 or $200 a month (if she can afford it) into a savings account. This would be like making a $550 or a $650 a month mortgage payment–her current rent plus the amount into savings. If she can do this faithfully for 6 months to a year then she will have some money to put towards a down payment or have in case of repairs. The more she can save the better. Down payment assistance programs may be available for her to use rather than using her own money and the seller can contribute to buyer’s closing costs.
Buying a home is a responsibility. I love helping first time home buyers realize their dreams. I do want to educate them so they go into the transaction with their eyes wide open and they are successful. If you have questions regarding homeownership, please feel free to contact me at 405-213-2992 or visit my website at http://www.sandiwalker.net. And be sure to follow my blog.

HUD Properties · Real Estate

What are “HUD homes,” and are they a good deal

HUD homes can be a very good deal. When someone with a FHA loan which is backed by HUD (Housing and Urban Development) can’t meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. It now becomes a government owned home.
HUD obtains a new FHA appraisal to determine the value of the property in its current condition. This becomes the list price of the house. HUD first attempts to sell the properties to owner occupants. If no acceptable offers are made by owner occupants then HUD allows investors to bid on the properties. HUD will lower the list price after some time on the market if no acceptable bids are received. While they want the most money for the property they can get, it’s not like they are going to decide to not sell and hold the property. Therefore, the longer the home is on the market the less HUD will be willing to take for it.
While the price of the house is often lower than other homes in the neighborhood, the property may need work to bring it up to a certain standard. I always tell my clients that if the prior owner didn’t have the money to pay the mortgage, they probably also didn’t have the money to maintain the property either. So just know that there is normally deferred maintenance on these homes.
I always believe it is smart to look around the neighborhood and see what else is available. If the HUD property is $95,000 and needs $10,000 in repairs but the house across the street is in better condition and has a seller who is willing to make some repairs if found on an inspection and is priced at $103,000. The house non-HUD property may be the better deal.
Please note that there are times that it may not be wise to purchase a HUD property over a traditional sale. This properties are sold “as is” with no repairs. If you are unable to make the necessary repairs or the repairs are beyond your budget, it may not be advised to enter into the purchase.
If you have questions about HUD properties or real estate in general please feel free to ask. My phone number is 405-213-2992 or visit my website at http://www.sandiwalker.net

Uncategorized

Why should I buy instead of rent?

A home is an investment. There is more stability in owning a home than in renting. While a landlord can decide to not extend your lease and force you to move, you can remain in your own home as long as you pay the mortgage and the property taxes.
When you rent, you write your monthly check and that money is gone forever. You may live in the rental property for a long period of time but you will still not accrue any equity. You may decide to make improvements to the property if your landlord allows you to do so, but when you leave the leased unit, those improvements belong to the owner and not you. In addition, the owner is allowed to take the tax benefits for the property including interest deduction, property tax deduction and such, not the tenant.
Eventually you will have the home paid off and will only need to pay the property taxes in order to continue to live in the home. You should continue to maintain home owners insurance in addition. This can mean you have a very inexpensive place to call home during your retirement years rather than continuing to pay rent which will most likely continue to go up.
In addition, the value of your home may go up over the years. Over time property has increased in value making real estate a good way to create wealth. The richest people in this country own property. However, do remember that the property needs to be maintained in order to retain its value and increase.
Finally, you’ll enjoy having something that’s all yours – a home where your own personal style will tell the world who you are. When you own your own home, you can paint it and decorate it the way you like. You can plant trees and bushes as you like.
If you would like more information regarding real estate, please feel free to call me at 405-213-2992 or visit my website http://www.sandiwalker.net

Real Estate

The American Dream.

The American dream is to own a piece of land for yourself. Something you can call your own. When homeownership is high in an area, stabilization and neighborhood pride tends to exist. Property is an investment that will hopefully increase in value over time if it is maintained. Property can be handed down to our children as an inheritance. There are also tax benefits. It is said that the average net worth of a home owner to a renter is 47% greater. It truly is a wealth building mechanism.
So how does a person achieve, their person piece of the American Dream.
Most people will not be able to pay cash for their first home and will need to obtain a home loan. So in order for a lender to approve a buyer for a loan you need to demonstrate that you can manage money and credit with other minor purchases. I advise people to get a credit card (this may need to be a secure card, at first) and charge a tank of gas or dinner out once a month and pay it off when you get the bill. Do not over charge on credit cards. You should not carry more than 50% of the credit limit on your cards. Do not over draft on your bank accounts. Pay your bills on time. And then save a little money.
There is some down payment money available for buyers who qualify in Oklahoma and you can always ask the seller to pay your closing costs. But you will still need earnest money when you write the offer, money to pay inspectors, and money to pay for the appraisal up front. In addition, once you close on the property all the repairs will be your responsibility so you will want to have a little cash incase something breaks.
If you have questions regarding real estate, please feel free to call me at 405-213-2992 or visit my website http://www.sandiwalker.net And be sure to follow my blog.