Homebuilders, mortgage bankers, real estate agents, and homebuyers do not recall the early 1980s fondly. To reduce chronic inflation, the Federal Reserve dramatically raised interest rates causing severe economic recession in the U.S. The national unemployment rate peaked at 10.8%, the prime-lending rate hit a staggering 18.45%, and mortgage interest rates averaged 16%.

Todd Kreps, Realtor/Broker/ABR     704.564.6941

Benjamin Franklin led the effort to create America’s first fire insurance company. The Philadelphia Contributionship for the Insurance of Houses from Loss by Fire was established in 1752 with a board of directors and seventy shareholders. The first insured property to burn was repaired for 154 pounds, nearly a third of the Society’s assets.

Todd Kreps, Realtor/Broker/ABR     704.564.6941

”The money you get from selling land, never buys the same land back.” - Anonymous

Todd Kreps, Realtor/Broker/ABR     704.564.6941

Private mortgage insurance (PMI) protects the lender in the event the borrower defaults on a mortgage. Most lenders require annual PMI premiums of one-half to one percent of the amount borrowed if a buyer’s down payment is less than 20% of the purchase price. Roughly half of all current homebuyers are putting less than 20% down as rising home prices outpace wages and savings.

TodKreps, Realtor/Broker/ABR     704.564.6941

Landscaping is one of the few home improvements that adds more value than it costs. Adding landscaping instantly improves the curb appeal of a home. Landscaping is one of the most practical and cost-effective things a home seller can do in preparing a home for sale.

Todd Kreps, Realtor/Broker/ABR     704-564-6941

An Accredited Buyer’s Representative (ABR) represents the buyer (not the seller) who is purchasing property in a real estate transaction.  Research by the National Association of Realtors has shown that when a buyer’s representative is used, the prospective buyer found a home one week faster and examined three more properties than consumers who did not use a buyer’s representative.The buyer’s representative works for, and owes fiduciary responsibilities to, the real estate buyer and has buyer’s best interests in mind throughout the entire real estate process.  A buyer’s representative will:·Evaluate the specific needs and wants of the buyer and locate properties that fit those specifications.

 ·Assist the buyer in determining the amount that they can afford (pre-qualify), and show properties in that price range and locale.  

·Assist in viewing properties — accompany the buyer on the showings, or preview the properties on behalf of the buyer to insure that the identified specifications are met.

·Research the selected properties to identify any problems or issues to help the buyer make an informed decision prior to making an offer to purchase the property.

·Advise the buyer on structuring an appropriate offer to purchase the selected property. ·Present the offer to the seller’s agent and the seller on the buyer’s behalf.

·Negotiate on behalf of the buyer to help obtain the identified property — keeping the buyer’s best interests in mind.

·Assist in securing appropriate financing for the selected property.

·Provide a list of potential qualified vendors (e.g. movers, attorneys, carpenters, etc.) if these services are needed.

·Most importantly, fully-represent the buyer throughout the real estate transaction.

Todd Kreps, Realtor/Broker/ABR    704-564-6941

 Dressing homes for success before their debut day on the market has not only become de rigueur but it has spawned a booming industry that even has a trademarked name. It’s called “staging,” and if you think of it a little like getting a stage ready for a theater performance or the television crew, you’re not far off. 

Seducing the Buyer

The idea is to set the “stage” for would-be buyers to imagine themselves happily living in your home.  Setting the stage to sell your home does indeed mean that your home must be attractive and appealing even beyond being clean and in excellent repair. In short, your home needs to seduce. 

There are professionals called “Home Stagers” who are trained in assisting home sellers and Real Estate Agents in preparing homes to sell. In fact, statistically professionally staged homes sell 50% faster and for 6% more then homes not professionally staged. You can find a directory of professional home stagers and additional home staging resources at the Home Staging Resource (http://www.homestagingresource.com). 

Staging Tips From the Pros

De-clutter one more time. Think of it as a second, more thorough editing. When you removed clutter and personal items the first time around, you probably weren’t hard-nosed enough.

·Remove large unnecessary items.  Even if it means paying for storage somewhere else.  Large items can make rooms smaller than they are.

·Get serious with the closets. Staging pros suggest removing about half the clothes from your closets, then buying new, attractive, matching hangers for all the clothes that remain. Hang the clothes all facing the same direction. Organize shoeboxes into neat stacks. In linen closets wash all the towels and sheets so that nothing smells musty, and fold them perfectly, as if they were on display at a high-end department store.

·It may be worthwhile to invest in some plush new bathroom towels and an attractive new bedspread. Remember you will take these with you when you move, and if your old towels and bedspread look threadbare or faded, the message is that your home is dated or unkempt.

 ·Make sure every window sparkles and that the drapes/blinds are all open. No one wants to live in a dark house so make sure every possible ray of light gets in. Check all the light bulbs in every single fixture to make sure they work. Replace them with brighter ones, if possible.

·Professional stagers have lots of “beauty tips,” such as replacing shabby throw pillows in the living room with new ones; turning every jar and bottle in your kitchen pantry and bathroom medicine cabinet so that the label faces toward you - this gives your pantry and medicine cabinet an orderly look; organizing books on books shelves so that books of the same height are arranged next to each other; and storing any kitchen appliances or cookware that doesn’t fit easily into a cupboard. Since people will open your kitchen cupboards, consider removing any truly ugly or dinged up cookware.

·Make sure your home smells good. Now that you’ve ridden it of any animal, smoke, or cooking smells, throw open the windows for a while.  

·All ready for your visitors? It never hurts to take one, last, very careful look. Leave the house. This is important. Many buyers find it weird to encounter the seller when they go to an open house. They will hesitate to look in rooms and closets and will leave quickly, never a good sign. If you’re selling it yourself without an agent try not to hover and don’t follow visitors from room to room.

Also, don’t forget about the outside of the home.  Plant blooming flowers near the front and back doors and add fresh bark around the yard.  Make sure your shrubbery is well trimmed and the grass is mowed and fertilized.  A buyer gets a first impression of your home by driving by, so the outside look is just as important as the inside.

ToddKreps, Realto/Broker     704.564.6941

The recent credit crunch in the mortgage industry has prompted consumers to examine their options carefully. An outstanding option for home buyers and current homeowners making a comeback is FHA (Federal Housing Administration) loans. The desire for secure options in a volatile market is making FHA loans more attractive. But many people don’t understand FHA and if it’s right for them. While there’s still a bevy of conventional loan options available, the guidelines have been tightened and for some people with less-than-perfect credit, FHA may be just what they’re looking for. 

Credit

FHA is generally more flexible than conventional loans. Look for guidelines requiring two years from bankruptcy discharge date, paid tax liens and judgments and 3 years from a resolved foreclosure. It is even possible to qualify with no credit score, but you must be able to prove regular payment and financial responsibility in some other forms, such as utility bills or rent. IncomeContrary to popular belief, there is no minimum or maximum income limits for FHA. The key for qualification for income is not the type of income, but the fact a borrower can prove reliable and steady income. Even part-time income can be considered if earned for a significant period of time. 

Down Payment / Equity

The max loan-to-value ratio for FHA loans is 97%, meaning you must have 3% down payment or equity in the home. The bright side of buying a home with FHA is you can use gifts, grants and concession for your down payment. For a cash-out refinance with FHA, the max LTV is 95%. One thing to keep in mind is FHA does have loan limits based on geographical location. 

Mortgage Insurance

Mortgage insurance is a policy that protects lenders from losses on defaulted loans. It is required for borrowers that have less than a 20% down payment. Since FHA insures all FHA loans, the guidelines for FHA loans can be a little more lenient. FHA does require an upfront mortgage insurance premium of 1.5% of the loan amount. After closing, you will be responsible for mortgage insurance premium paid monthly for a minimum of 5 years. FHA has helped more than 30 million people become homeowners since 1934 and is becoming increasingly involved with options for borrowers who have adjustable rate mortgages that will re-set and may be facing foreclosure.

 As always, it is advised that you speak with a mortgage professional about your specific situation and what loan is right for you.

Todd Kreps, Realtor/Broker     704.564.6941

Prepared by a qualified professional (an appraiser), it is an estimation of a property’s fair market value.  Because tax records are often incorrect, and computers are unable to distinguish the condition and quality of a home, a professional appraiser is contracted to physically inspect the property.  In home purchase/refinance, this is done before loan approval to ensure that the mortgage loan amount is not more than the value of the property.   In other instances such as divorce settlement or estate settlement, it is done so that interested parties are able to properly value assets for distribution.

Todd Kreps, Realtor/Broker  704.564.6941

When choosing colors, women are generally drawn to brighter tones and more subtle shades. Men favor darker neutrals and blues. Men and women are a bit more agreeable on exterior house paint colors. According to a recent American Demographics/BuzzBack color survey; the top exterior home color choice for men was white while for women it was beige.

Todd Kreps, Realtor/Broker