http://coldwellbankervail.com/blog/archive_201610/sort_entrydatetime-desc/ One important thing to remember about the property market is that it's always in a state of change. Sometimes the market is favorable to buyers and sometimes it's favorable to sellers. But don't worry, a knowledgeable agent can guide you in the sale or purchase of your next home, no matter what type of market you're facing.What is a Seller's Market?A seller's market is simply a property market that benefits you as a seller. In a seller's market, there's a scarcity of properties, which can drive up the price of homes, especially in desirable locations.Sellers can depend on real estate experts to know what the market is doing, but here are some signs of a seller's market:Low inventory when compared to previous months and/or yearsHomes are selling fasterLess than six months of inventory on the marketMore homes are sellingMedian sales prices are growingLess information in real estate ads; just the bare details"For Sale" signs don't stay up long before being replaced with "pending" or "sold"What is a Buyer's Market?A buyer's market is the opposite of the seller's market. If you're buying at this time you'll be spoiled for choice as the supply of homes on the market exceeds the number of buyers, giving you the chance to score a fantastic deal.A sharp agent will quickly be able to tell you where the market lies, but here are some signs of a buyer's market:Inventory that is high when compared to previous months and/or yearsHomes are selling more slowlyMore than six months in inventory on the marketSales prices are shrinkingFewer sales are taking placeReal estate ads are growing in size, giving more details and/or images"For Sale" signs are staying longer, meaning the days on the market are longer tooHow Do I Figure out the Months of Inventory in a Market?Look for the total number of active listings for the month prior to the current oneLook for the total number of sold or closed transactions for the same time frameDivide the total number of listings by the number of sales. This figure represents the number of months of inventory there are.For example, let's say there were 6,500 listings in one month's time. During that same time, there were 1,500 properties that were sold. Divide 1,500 into 6,500 and you arrive at 4.3 months of inventory, meaning that this is a seller's market.While a savvy real estate agent is the best resource for this information, other resources include real estate listing websites and/or your local real estate association.Do All Markets Follow the Same Cycles?Markets are always in a state of flux. At its core, people are the driving force behind the real estate market.For example, as more people move into a location, the more need there is for housing. If the number of properties in the area cannot support the number of people moving in, prices of existing homes will likely rise until more homes can be built.This constant change to the supply and demand in a market is how markets shift back and forth from being more favorable for either buyers or sellers.Can I Buy in a Seller's Market?Absolutely, but it's not going to be a walk in the park.You'll need determination, knowledge, and most importantly, someone on your side who knows the market inside and out.Something to consider - you don't know the seller's true reasons for wanting to sell. Maybe there's a divorce pending or another baby on the way and they need more space fast. Whatever is going on with the seller, a savvy agent will spot opportunities to help you and the seller arrive a ta mutually agreeable solution.One key reason it's vital to engage an agent in a seller's market is for their negotiating skills. While it's important to always negotiate, a seller's market calls for serious help to ensure that you don't pay more than you need to.Should I Wait to Sell?It depends. Is it mandatory that you sell right now or could you wait until it's a seller's market again?Consult with an agent to get his opinion about your chances of getting what you need or want for the sale of your home. He just might have some options you may not have considered that will help you get out from under your home and get on with your life.Don't be afraid to sell or buy if you think the market isn't in your favor. The real estate market can be highly varied, so trust your agent to help you get the best possible results, no matter what the market looks like.*Article courtesy of coldwellbanker.com http://coldwellbankervail.com/blog/4418/how-to-tell-the-difference-between-a-buyer's-market-and-a-seller's-market/ Thu, 27 Oct 2016 12:00:00 -0700 HOUSE POOR [adjective | hous - poo·r] A person who can afford his or her home mortgage payments, but can't afford much of anything else. Discretionary spending on restaurants, furnishings, travel and clothes are severely cut back, due to a large proportion of his or her income going towards the mortgage payments, upkeep costs, and energy/utility bills.You don't want to find yourself stuck at home while your friends are out having fun. Buying more home than you can afford comfortably will place serious restraints on your financial life. This doesn't sound like fun, does it?Sure, you want a nice home. But you also want to make sure that it fits in the landscape of the rest of your life.Here are the ABC's of finding a dream house that you can reasonably afford.Assess Your RatiosFinding that magic mortgage number of how much home you can realistically afford.Front-End Ratio: A front-end ratio is also known as the mortgage-to-income ratio. You can find this ratio by using adebt to income calculator or simply by dividing your projected monthly mortgage payments by your gross monthly income. For example, if your monthly mortgage payment would be $1,500 and your monthly income is $6,000, your front-end ratio would be 1500/6000 or 25%This projected mortgage payment should include the principal, taxes, insurance, and interest payments. Many lenders have limits on the maximum front-end ratio that they'll permit. If you're seeking an FHA loan, the federal cap on front-end ratios is a 31% percent limit.Back-End Ratio: Your debt-to-income ratio is your back-end ratio. The back-end ratio can be found by adding all of your monthly debt payments, including your car payments, credit card payments and any other outstanding debt, then dividing this number by your gross monthly income, which is the amount earned before taxes or other deductions.The higher your back-end ratio is, the more difficult it is to meet your monthly mortgage payments. Lenders will also have maximum caps on this. The absolute highest back-end ratio you can have and still qualify for an FHA mortgage is 43%.Pause and reflect on whether or not you should borrow as much as you qualify for. Consider your own ratios. Do you want to allocate your money elsewhere besides your mortgage? What percentage of your income do you feel comfortable spending on your mortgage?Bet on LifeAre you starting a new career? Returning to graduate school? Do you plan on growing your family? If you don't expect any big changes to your life or finances, then you may be able to afford a larger mortgage payment. If you do have life plans that will impact your finances in the near future, it may be best to secure a more manageable mortgage payment.Also, job security is critical when deciding how much home you can afford. How long have you been working? Do you suspect any major upheavals in the company anytime soon? Have there been any major layoffs?Here's a scary but sobering fact: 1 out of every 200 homeowners will end up facing foreclosure.You never know what the future holds, make sure that you have an emergency fund that can cover all of your necessary expenses while you get back on your feet. An emergency fund should cover at least three to six months of your living expenses.If you haven't built this fund yet, plan out how you can put some dollars towards creating these reserves before you decide how much you want to spend on buying a house.Calculate Other Monthly ExpensesYour total monthly expenses will affect how much home you're able to afford.Calculate all of your expenses, such as groceries, gas, dining out, clothes, miscellaneous goods, toiletries, cosmetics, utilities, and car expenses. Don't forget to include line-items for travel, holidays and other annual expenses. Forgetting to calculate these annual or biannual expenses can have a reverberating impact on your ability to afford your home.Once you've added these numbers, look at how much wiggle room you have left. Think about how much you want to spend on your home, while still leaving a buffer for any other costs that might creep up. After all, more savings is always a good thing.*Article courtesy of coldwellbanker.com http://coldwellbankervail.com/blog/4408/how-much-house-can-you-afford?/ Thu, 20 Oct 2016 12:00:00 -0700 Home Improvements that Increase the Value of Your HomeThe housing market remains competitive for home sellers. National and regional builders spend hundreds of thousands of dollars researching what home buyers want and purposefully market their houses to these same buyers. Location remains a top priority, but home sellers have a better likelihood of achieving the sales price they seek by investing a bit of time and money into home improvements and basic upgrades.Improve the first room home buyers visitThe Great Recession led to many American families rediscovering their joy of cooking and spending time together at home. Many families continue to opt for home cooked meals over dining out as their economic situation improves. For parties and social get-togethers, the kitchen is usually the gathering spot and often the topic of conversation. While the kitchen can be the most expensive room to remodel, industry experts agree that a few hundred dollars invested in new faucets and lighting fixtures can revitalize the look of an entire kitchen. Home sellers do not have to take on the high cost of replacing counter tops to give their cabinets a fresh look. New paint or a thorough cleaning can help brighten the entire room. Sellers want buyers to think about the time they will enjoy in the kitchen, not the high cost of needed repairs and upgrades.Upgrade AppliancesHaving to purchase all new appliances on top of purchasing a new home is daunting for any potential buyer. This is one of the main attractions of new constructions. Home buyers know they will have a few worry-free years before any costly repairs or appliance replacements. Sellers may want to consider offering an allowance for new appliances to be part of an accepted contract. This helps the seller ensure they get the price they want and provides some peace of mind for buyers. Sellers should consult with a Coldwell Banker® brand agent about federal and state laws for these agreements. To avoid any confusion, agents for both buyers and sellers must carefully review wording and discuss it with their clients.Improve the appearance of the bathroomsBathrooms have changed over the years. Some older homes have small bathrooms that lack the appeal of the spacious lavatories found in modern houses. Rather than invest in replacing existing tiles, sellers can brighten the look of bathrooms by re-grouting and replacing the few tiles that may be chipped or missing. It is important that the room be clean and as new-looking as possible without spending a considerable amount of money.Add a fresh coat of paintThe best investment any seller can make is in interior and exterior paint. Designers and industry experts claim the payback is typically up to 300 percent. For color ideas and the latest trends, sellers should consult with a Coldwell Banker® brand agent prior to choosing colors. Advice from a knowledgeable third-party is preferred over thoughts from friends and family about what they think looks good.Improve the entryway and front doorAny front door can look new again with a fresh coat of paint. Be sure the entire area is clear of spider webs and leaves. A worn out door knob and lock make the house appear old and run down. It is worth investing in new hardware for the front door to make a good first impression.Rather than tackling all of these projects at once, sellers should formulate a written plan and accomplish them over a period of months. Strive to have all upgrades complete before putting the house on the market.*Article courtesy of coldwellbanker.com http://coldwellbankervail.com/blog/4383/home-improvements-that-increase-the-value-of-your-home/ Thu, 13 Oct 2016 12:00:00 -0700 Stages of Buying a Home - What to ExpectIt may be a goal you have had since childhood. Perhaps, you have rented for most of your adult life and now want to experience the joys and satisfaction of home ownership. Buying a home is a big step and requires a lot of important decisions along the way. With some advanced planning and research, you can be sure your home purchase is something you feel good about for many years ahead. Here are the basic steps that lead you to a successful transaction.Understanding what you can affordThis is different from qualifying for a loan. This is calculating how much of your budget you will devote to your home and how much money you want for other things. For a person who values travel, they can afford more house than they should buy. Some of their money will go toward accommodations on the road or other travel expenses. If you love fishing, boating, or a hobby such as restoring classic cars, factor the required budget for your preferred pastime into your overall household budget. With that in mind, think twice about buying a home the bank says you can afford. You will be happiest in the home that allows you to enjoy life to its fullest.Review your credit reportKnow your credit score prior to meeting with any loan officers or mortgage brokers. A lower score will result in a higher interest rate and possibly prevent you from qualifying for the loan you want. It can take several months to correct any errors in your report. By reviewing your report a few months before home shopping, you could save yourself several thousands of dollars over the life of your loan.Choosing your professionalsThe U.S. Department of Housing and Urban Development (HUD) advises potential home buyers to attend a homeownership education class prior to choosing a mortgage. The Consumer Financial Protection Bureau was established to help protect consumers from predatory lending and mandates all required information about your loan and real estate transaction be written in clear, easy to understand wording. It is an excellent resource for home buyers.Take time to interview several loan professionals before signing with one. You can be pre-qualified by your bank or any loan company. That does not obligate you to choose them for your home loan. Discuss your goals with a Coldwell Banker® brand agent. They are here to consult with you at each step of the process. Also, it is a good idea to know who will be your attorney for the closing. Many builders want you to close the transaction with their attorney. As the home buyer, it is your right to choose the attorney who will represent you in the closing.Choosing your homeOnce you are pre-qualified, you are ready to begin shopping for your new home. For most buyers who plan to purchase with a standard 30-year fixed-rate mortgage, there are few restrictions on the houses they view. If you will be using a FHA loan, USDA home loan, or other special financing, you can only consider homes that qualify for these programs. HUD has incentives for first-time buyers and community servants like firefighters, teachers, and lawenforcement officers. To see if you qualify for special financing, and to learn if there are any Good Neighbor Next Door homes available in your area, consult with a Coldwell Banker® brand agent.Take your lifestyle and future plans into consideration as you view homes. If you plan to move in a few years, you may want to choose a simple, easily affordable home that will always be in demand and fairly easy to sell. It is best to have a second and third choice in mind that you can go to if you have to walk away from negotiations on your first choice.Negotiating the contractBuying a home is an emotional experience. Trust your home buying expert with Coldwell Banker Real Estate LLC for guidance. They work with lenders, home sellers, and other real estate agents every day. They will advise you on negotiation strategies and be there to provide objective advice that protects your best interest in the transaction. Most contracts have contingencies, and the negotiation is not complete until all contingencies are met.Home inspectionA thorough home inspection by a certified professional is crucial for any home purchase. You should attend the inspection and feel free to ask questions about any areas of concern. Once you have received the home inspection report, your Coldwell Banker brand agent will review it with you. You may choose to ask the seller to make some needed repairs, negotiate a lower price, or accept the report and move forward with the transaction as it is.The closingThe Real Estate Settlement Procedures Act (RESPA) requires that lenders provide home buyers with as accurate of a good faith estimate as possible and that they disclose the nature of all cost. It also prohibits kickbacks and other unlawful payments among real estate professionals and lenders. The TILA-RESPA Integrated Disclosure rule combines forms required by the Truth in Lending Act, also known as Regulation Z, and the Real Estate Procedures Act, known as Regulation X, into one simple form. This new document replaces the final document required by the TILA and the HUD-1. You have three days to review and discuss it with your Coldwell Banker brand agent.For any changes in amounts before or after closing, the lender must provide you with a corrected Closing Disclosure showing the actual amounts. All financial figures must be documented in writing and not delivered verbally. With sufficient communications prior to closing, you know the amount of certified funds (if any) you need to bring to closing. You can relax, sign the necessary paperwork, and receive the keys to your new home.*Article courtesy of coldwellbanker.com http://coldwellbankervail.com/blog/4373/stages-of-buying-a-home/ Thu, 06 Oct 2016 12:00:00 -0700