Expect Unexpected Costs and Work Required When Selling a Home

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buying, frisco tx real estate, home selling, houses for sale frisco tx, mortgage, owning, purchasing, real estate agent, selling

You already know that selling a home is accompanied by costs and work. There are costs that you are aware of and know the specific work required when it comes to selling a home. But there are also unexpected costs and chores of which you may not be aware of.   This list details many of the unexpected costs and steps you may encounter when selling your home.

1. Get a Mortgage Pre Approved
2. Determine your home’s value
3. Estimate the cost of selling
   1. The real estate agent commission
   2. Legal fees, escrow, repair and maintenance costs
   3. Insurances and Taxes
   4. Other fees
4. Determine the fees and costs associated with buying a new home
   1. The moving expenses, down payment, loan costs, insurances and taxes, including other buying-related expenses.
5. Stage, repair and prepare your existing home for sale.
   1. Improve the overall condition of your home, for both the inside and outside of the home.
6. Show your home to potential buyers
   1. It is the job of your real estate agent to conduct open houses, facilitating your buyers viewing and negotiation.

If you are thinking of selling your existing home and purchasing a new home, call Houses for Sale in Frisco TX. We at Frisco TX Real Estate can walk you through the expected and unexpected steps to complete to sell your home.  Call us today!

From Homeowner to Landlord

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for rent, frisco real estate, home, homeowner, insurance, landlord, rental property

Making your property available for rent is a beneficial way to generate some incremental income. Converting from homeowner into a landlord is not an easy. Here are the things that you need to prepare:

1. Insurance
   1. Insurance is the most critical factor as a homeowner and is the first item to complete. It is important to choose the best option for you. Enlist the help from a professional insurance agent to provide you options.
   2. Insurance is critical, as it will reimburse your repairs and renovation on your property and cover any damage.
2. Check your property for issues and problems.
   1. If you have the extra money to hire a professional,  we recommend it. It is important that you are able to detect the issues and make repairs on it as needed.
3. Redesign and make your home stand out.
4. Know the market value of your property
   1. The value of your property will determine the price you can charge as a rental. Calculate the monthly cost and research nearby properties’ rental prices.

It is very important to prepare a home to transition into a rental property. Call Houses for Sale in Frisco TX to help you with the process of changing from a homeowner into a landlord.

Useful Ways to Save Money for the Downpayment

According to surveys, rents are projected to outpace the value of a home by the end of this year. Experts suggest that you consider purchasing a home now. Today, the housing market is stable and interest rates are low. Down payments are considered as a part of buying a home and are also considered as a big challenge for most home buyers.

If you are thinking of buying a home, let Houses for Sale in Frisco be your guide. Here are some useful ways to save money for down payment:

1. Reduce and eliminate some of your large expenses.
2. When you are working, ask your payroll department to automatically deduct a specific amount of your monthly salary and deposit it to a savings account.
3. Consider downsizing if your home is too big for you.
4. Sell the things that are not needed anymore
5. Make some investments of your money.

Take these suggestions to help you prepare yourself for the home buying process. If you are serious about buying a home, call Houses for Sale in Frisco TX. We at Frisco TX Real Estate provide useful tips and advice and are available to help you with your real estate needs.

More Home Buyers Putting Less Down

A recent post by the National Association of Realtors (NAR) revealed that in the months of December 2014 through February 2015, there was an increase in the number of first-time buyers making a down payment of 6% or less as compared to last year:

• 2014: 61% of first time home buyers
• 2015: 66% of first time home buyers

While the number of small down payments is lower than it was in 2009 when 77% of down payments were 6% or less, it does show the recent decisions by both Fannie Maeand Freddie Mac to offer 3% down payment options to certain buyers is impacting the market. FHFA Director Mel Watt recently explained why Freddie and Fannie made this decision:

“The new lending guidelines by Fannie Mae and Freddie Mac will enable creditworthy borrowers who can afford a mortgage, but lack the resources to pay a substantial down payment plus closing costs, to get a mortgage with 3% down. These underwriting guidelines provide a responsible approach to improving access to credit while ensuring safe and sound lending practices.”

This is great news to millions of purchasers that have been denied the opportunity to own their own home because of the almost impossible burden of saving for a 20% down payment.

Will these programs create future challenges?

Certain pundits fear that low down payment programs will create a wave of foreclosures down the road. Mr. Watt also addressed this concern:

“To mitigate risk, Fannie Mae and Freddie Mac will use their automated underwriting systems, which include compensating factors to evaluate a borrower’s creditworthiness. In addition, the new offerings will also include homeownership counseling, which improves borrower performance. FHFA will monitor the ongoing performance of these loans.”

Also, the Urban Institute revealed data showing what impact substantially lower down payments would have on default rates in today’s mortgage environment. Their studyrevealed:

“Those who have criticized low-down payment lending as excessively risky should know that if the past is a guide, only a narrow group of borrowers will receive these loans, and the overall impact on default rates is likely to be negligible. This low down payment lending was never more than 3.5 percent of the Fannie Mae book of business, and in recent years, had been even less. If executed carefully, this constitutes a small step forward in opening the credit box—one that safely, but only incrementally, expands the pool of who can qualify for a mortgage.”

Here are the direct links to the guidelines for each program:

Fannie Mae 3% Down Program

Freddie Mac 3% Down Program

Remember, as with any new program, there will be some confusion. Contact your mortgage professional for a deeper understanding.

Making an Offer on a Home

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buying a home, cma, home buying, home inspection, home search, houses for sale in frisco tx, purchase letter, purchase offer

Purchase offers are known by different names in different parts of the country. Purchase offers are how you wish to handle the findings of the professional home inspection.

So you’ve found the home you wanted and dreamed of. If you’re really ready and have decided to buy a home, call Houses for sale in Frisco Tx.  We will create a report for you about the recent CMA within the area of the home you want to buy. The CMA helps you to identify the best purchase offer and fair price.

You and your agent will determine the price to offer together with the purchase letter, also known as a binder of the seller and the buyer.  This offer should be presented to the seller for the process to continue. Purchase offers are the basis for sellers to understand that you are interested in buying their home.

Thinking of buying a home in Frisco, Fort Worth, Irving, Arlington, Dallas or anywhere in Texas? Call us today!  We can help you with the entire process from home search to making an offer, from negotiation to closing. We will make sure that you have a smooth home buying process. Call Now!

Either Way, You’re Still Paying a Mortgage

There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s.

As a paper from the Joint Center for Housing Studies at Harvard University explains: 

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Also, if you purchase with a 30-year fixed rate mortgage, your ‘housing expense’ is locked in over the thirty years for the most part. If you rent, the one guarantee you will have is that your rent will increase over that same thirty year time period.

As an owner, the mortgage payment is a ‘forced savings’ which will allow you to have equity in your home you can tap into later in your life. As a renter, you guarantee the landlord is the person with that equity.

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting since home values and interest rates are still at bargain prices.

Don’t Wait! Move Up to the Home You Always Wanted

Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. Prices are still below those of a few years ago and interest rates are still below 5%.

However, sellers should realize that waiting to make the move while mortgage rates are increasing probably doesn’t make sense.

As rates increase, the price of the house you can buy will decrease.

Here is a chart detailing this point:

5 Reasons to Sell Now!

Many sellers are still hesitant about putting their house up for sale. Where are prices headed? Where are interest rates headed? Can buyers qualify for a mortgage?  These are all valid questions. However, there are several reasons to sell your home sooner rather than later. Here are five of those reasons.

1. Demand is Strong

There is currently a pent-up demand of purchasers as many home buyers pushed off their search this past winter & early spring because of extreme weather. According to the National Association of Realtors (NAR), the number of buyers in the market, which feel off dramatically in December, January and February, has begun to increase again over the last few months. These buyers are ready, willing and able to buy…and are in the market right now!

2. There Is Less Competition Now

Housing supply is still under the historical number of 6 months’ supply. This means that, in many markets, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as prices increased over the last eighteen months. Many of these homes will be coming to the market in the near future. Also, new construction of single-family homes is again beginning to increase. A recent study byHarris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).

The choices buyers have will continue to increase over the next few months. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

One of the biggest challenges of the 2014 housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. As the market heats up, banks will be inundated with loan inquiries causing closing timelines to lengthen.  Selling now will make the process quicker and simpler.

4. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 19% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate in the low 4’s right now. Rates are projected to be over 5% by this time next year.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market and pricing it so it sells. Perhaps, the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.