Buyer Urgency Expected to Drive 2013

DAILY REAL ESTATE NEWS | WEDNESDAY, DECEMBER 19, 2012

Home shoppers will likely have more urgency in the new year, wanting to buy before home prices rise even more. 

Home prices are edging up in most markets, and buyers are taking notice. Buyer surveys recently have shown that home shoppers expect home prices to continue to inch up, and they want to cash in before they rise too much higher. 

“Every single thing about housing is flashing green” with household formation rising, inventory falling, and affordability hovering at record highs, James Dimon, chief executive of J.P. Morgan Chase told CNBC last month. 

In 2013, rising rents are expected to push more renters to buy, The Wall Street Journal reports. Also, investors who’ve had a big appetite for housing in recent years may start to decrease their share in some markets that have seen prices rise, such as Phoenix, and focus on other markets still in recovery mode, like Chicago and Atlanta. 

“Rising prices could eventually encourage more sellers to put their homes on the market, which would help boost demand even further,” The Wall Street Journal reports. 

To meet the expected increase in demand in 2013, some real estate companies are going on a hiring spree. For example, Redfin says it plans to increase its 400 agents nationally by 50 percent by the end of January after having to send about half of its referrals to other companies earlier this year because demand outstripped its supply of agents.

Source: “2013: How Rising Prices Could Boost Housing Demand,” The Wall Street Journal (Dec. 18, 2012)

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4 Housing Issues to Watch in 2013

Daily Real Estate News | Thursday, December 27, 2012

What does 2013 have in store for the housing market? With marked gains this year, housing experts expect the housing market to continue to gain momentum in the new year.
The Wall Street Journal recently offered up some chief housing issues likely to be important in the New Year. These include:

• Inventories rise: To meet the increased demand, home builders are increasing production and more sellers may be more willing to test the market as housing prices increase.
• Home prices spur demand: More buyers have urgency with home purchases as rents rise, housing values gain momentum, and mortgage rates remain low.
• Credit remains tight: “While rising prices could serve as a tailwind, new regulations may lock in some of the defensive underwriting posture while impeding capital rules may lead banks to pare their lending footprint,” The Wall Street Journal predicts.
• Broader economy dictates how far recovery goes: If unemployment decreases and the economy improves, many of the biggest challenges facing the housing market would likely fade, such as tight credit, the large number of underwater home owners, and a high rate of foreclosures.

“Any renewed weakness in job growth could put housing back into the stall that it found itself in between 2010 and 2011,” The Wall Street Journal reports. “The housing market is still fragile. ... If lawmakers can’t agree on a series of spending cuts and tax hikes to avert the ‘fiscal cliff,’ that could crimp demand or damage confidence.”
Source: “Recap: Five Housing Issues to Watch in 2013,” The Wall Street Journal (Dec. 21, 2012)


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Buyer's Broker - Key West Real Estate Agents

Buyer's Broker - Key West Real Estate Agents

A Buyer's Broker is a licensed Key West real estate agent who works for you the buyer and is legally and morally bound to get the best deal for you - the buyer.

  A Buyer's Broker tends to dig deeper into the history of the property and the seller, not merely acting a a transaction agent, which is the norm for real estate agents in Key West.

  What is the history of the home.

  Factors about the seller i.e. are they moving, getting a divorce. What are the real reasons the property in question is selling.

  As your Buyer's Broker, I try to level the playing field.

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Tax Benefits of Homeownership

Tax Benefits of Homeownership
The tax deductions you’re eligible to take for mortgage interest and property taxes greatly increase the financial benefits of homeownership. Here’s how it works.

Assume:
$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest)
$2,700 = Property taxes (at 1.5 percent on $180,000 assessed value)
______

$12,577 = Total deduction

Then, multiply your total deduction by your tax rate.

For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56

$3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate)

Note: Mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total income reaches a certain level.

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Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®.
Copyright 2008. All rights reserved.

5 Common First Time Home Buyer Mistakes

5 Common First Time Home Buyer Mistakes

They don’t ask enough questions of their lender and end up missing out on the best deal.

They don’t act quickly enough to make a decision and someone else buys the house.

They don’t find the right agent who’s willing to help them through the homebuying process.

They don’t do enough to make their offer look appealing to a seller.

They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.

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Key West Real Estate - 10 Ways to Prepare for Homeownership

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Lawrence Yun, NAR chief economist

Lawrence Yun, NAR chief economist, said buyers are responding to favorable market conditions. “We’ve had very good housing affordability conditions for quite some time, but we’re seeing more impact now from steady job creation, and rising consumer confidence about home buying now that home prices have clearly turned positive,” he explained.

Posted by Key West Real Estate Agent Joe D Wells

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Mortgage Insurance

Mortgage Insurance: a policy that protects lenders against some or most of the losses that can occur when a borrower defaults on a mortgage loan; mortgage insurance is required primarily for borrowers with a down payment of less than 20% of the home's purchase price. Insurance purchased by the buyer to protect the lender in the event of default. Typically purchased for loans with less than 20 percent down payment. The cost of mortgage insurance is usually added to the monthly payment. Mortgage insurance is maintained on conventional loans until the outstanding amount of the loan is less than 80 percent of the value of the house or for a set period of time (7 years is common). Mortgage insurance also is available through a government agency, such as the Federal Housing Administration (FHA) or through companies (Private Mortgage Insurance or PMI).

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James Bond Anyone?

I just found a property and wanted to share it with you!

Qualifying Ratios - Key West Real Estate

Qualifying Ratios: guidelines utilized by lenders to determine how much money a homebuyer is qualified to borrow. Lending guidelines typically include a maximum housing expense to income ratio and a maximum monthly expense to income ratio.

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Meet Joe Wells - Key West Real Estate Agents

 

 

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FICO Score

FICO Score: FICO is an abbreviation for Fair Isaac Corporation and refers to a person's credit score based on credit history. Lenders and credit card companies use the number to decide if the person is likely to pay his or her bills. A credit score is evaluated using information from the three major credit bureaus and is usually between 300 and 850.

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Key West Real Estate Agents

Visit Joe Wells at www.oceanbluerealestate.com to find a real estate agent to help you with your Key West real estate search.

Key West Real Estate with Joe D Wells

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Encroachments:

Encroachments: a structure that extends over the legal property line on to another individual's property. The property surveyor will note any encroachment on the lot survey done before property transfer. The person who owns the structure will be asked to remove it to prevent future problems.

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Lawrence Yun Quote

“Recent price increases are not deterring buyer interest,” notes Lawrence Yun, NAR’s chief economist. “Rather, inventory shortages are limiting sales, notably in parts of the West.” For example, sales of homes priced under $100,000 in the West have dropped 47 percent from a year ago. 

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Adjustable-Rate Mortgage (ARM):

Adjustable-Rate Mortgage (ARM): a mortgage loan that does not have a fixed interest rate. During the life of the loan the interest rate will change based on the index rate. Also referred to as adjustable mortgage loans (AMLs) or variable-rate mortgages (VRMs)

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Two Sides to Old Town Key West

Did you know there are two sides to Old Town Key West? North and South. 
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RESPA:

RESPA: Real Estate Settlement Procedures Act; a law protecting consumers from abuses during the residential real estate purchase and loan process by requiring lenders to disclose all settlement costs, practices, and relationships

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HUD

HUD: the U.S. Department of Housing and Urban Development; established in 1965, HUD works to create a decent home and suitable living environment for all Americans; it does this by addressing housing needs, improving and developing American communities, and enforcing fair housing laws.

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Collateral: - Key West Real Estate

Collateral: security in the form of money or property pledged for the payment of a loan. For example, on a home loan, the home is the collateral and can be taken away from the borrower if mortgage payments are not made.

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FHA

203(b): FHA's single family program which provides mortgage insurance to lenders to protect against the borrower defaulting; 203(b) is used to finance the purchase of new or existing one to four family housing; 203(b) insured loans are known for requiring a low down payment, flexible qualifying guidelines, limited fees, and a limit on maximum loan amount.

203(k): this FHA mortgage insurance program enables homebuyers to finance both the purchase of a house and the cost of its rehabilitation through a single mortgage loan.

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Forbearance

Forbearance: a lender may decide not to take legal action when a borrower is late in making a payment. Usually this occurs when a borrower sets up a plan that both sides agree will bring overdue mortgage payments up to date.

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What is the name of the road worth.

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