Buying A House in the Winter?

Some people may think that you are crazy buying a house in the winter but some people think that will be a great idea.  Yes, that is true since majority of the sellers that wants to sell their house before the year is over will be more willing to re-negotiate the price and terms of the sale.

From another point of view, as the number of the sellers diminishes, so is the number of the buyers. Therefore, you’ll have less competition! And what does this mean to you? Less competition means more chances for you to get the property at the price you want!  Here are the pros and cons!

Bet You Didn't Know: Christmas

Christmas is both a sacred religious holiday and a worldwide cultural and commercial phenomenon. For two millennia, people around the world have been observing it with traditions and practices that are both religious and secular in nature.

Christians celebrate Christmas Day as the anniversary of the birth of Jesus of Nazareth, a spiritual leader whose teachings form the basis of their religion. Popular customs include exchanging gifts, decorating Christmas trees, attending church, sharing meals with family and friends and, of course, waiting for Santa Claus to arrive. December 25–Christmas Day–has been a federal holiday in the United States since 1870.

Phoenix Named Hot Housing Market to Watch in 2015

Metro Phoenix is one of the U.S.'s "10 hottest housing markets to watch in 2015," according to a new Realtor.com report as mentioned by Catherine Reagor of The Republic.

The real estate website's chief economist, Jonathan Smoke, said Phoenix's potential for income growth and new-home construction landed it on the list.

CNN Money stated 2015 home sales forecast: +11%

Source: Catherine Rigor | The Republic | AZCENTRAL.COM

Relocation Guide - Real Estate

Thanksgiving dinner on the patio, New Year's hikes up South Mountain. Two thriving downtowns and another awakening. More manageable mortgages and mountain views. 

Phoenix-area residents tote thick brag books on their hometown, adopted as it may be. And they're not just filled with sunny skies and sparkling swimming pools.

Where weather was long the area's main appeal- and remains a big seller - the attraction has broadened.

One of the advantages in moving to Arizona is you don't have to leave the state to get away, of course. Arizona boasts dramatic geographical diversity. Tourism folks like to brag about being able to ski in the morning (in Flagstaff or the White Mountains) and swim in the afternoon. Sedona, Jerome, Prescott and Tucson, each with their own appeal, are easy day trips.

Read more:

Fannie Mae and Freddie Mac Unveils Mortgages with 3% Down Payment

To broaden the pool of home buyers and boost real estate market, Fannie Mae and Freddie Mac are launching #mortgage loan programs with down payment as low as 3%.


The loans, unveiled Monday, reverse a trend of tighter lending standards by the government-sponsored mortgage giants since their taxpayer-financed bailouts. The programs allow only fixed-rate loans on single-family homes used as a primary residence.

Caution on Over Improving your Home

Homeowners need to be cautious when making home improvements, renovations or addition. When you sell, you "never get 100 cents on the dollar no matter what the improvement is" says Erik H Reisner, managing partner of a Vermont real estate company. "It may increase the value of the property but not dollar for dollar." If you have equity, you might even burn off all the equity in your property.
Bottom line, if it is for your own use or helps you get more time in the house (like adding a first floor bedroom) that is smart. But if your sole purpose is to increase your home price, or even "get it back at resale" it might not even be worth it.

Click here for more info

HAPPY THANKSGIVING to you and your family

Tips on How to Prepare your Home for Holiday Visits

Some preparations for holiday guests take only a few minutes; some take a lot longer. My advice: Start preparing your home for the holidays now.

Prioritize

The day before guests arrive is no time to pull apart junk drawers and clean out linen closets. Declutter guest rooms and public areas — foyer, kitchen, living room, den, and dining room. Remove anything unnecessary from countertops, coffee tables, and ottomans; if it’s out of sight, keep it out of mind, for now.

If you run short of time, bag up the clutter and store it in car trunks, basements, and out-of-the-way closets. Sort and arrange after your guests depart.

Safety

Light the way: Even though you can navigate your home blindfolded, your guests can’t. Make sure outside lights are working so they don’t trip on the way to your door. Put motion-activated night lights in hallways, bathrooms, and bedrooms to ensure safe passage after the sun sets.

Child proofing: Ask parents to bring hardware that keeps their small ones safe, such as baby gates and cabinet locks. Transfer toxic cleaners and medicines from base to wall cabinets. Hide matches and lighters.

Fire prevention: If you didn’t freshen smoke detector batteries when you switched the clocks to Daylight Savings Time, change them now. After your guests arrive, run a quick fire drill: Make sure they can locate exits and fire extinguishers, and that they know how to open windows and doors.

Entryway upgrades

Your home’s foyer is the first place guests see, so make a good first impression.

• Upgrade exterior entry doors or give old doors a new coat of paint. Polish and tighten door hardware, and oil hinges to prevent squeaks.

• Remove scratches from hardwood floors, stairs, and wood railings. Place a small rug or welcome mat at the entrance to protect floors from mud and snow. 

• Clear out shoes, umbrellas, and other clutter.

• Add extra hooks to walls so guests can hang coats and hats.

• Add a storage bench where guests can remove boots and shoes.

Kitchen prep

Your kitchen is command central during the holidays, so make sure it’s ready for guests and extra helpers.

• To increase storage, install a pot rack to clear cooking items off countertops and ranges.

• Move your coffee station into a family room so guests don’t crowd the kitchen when you’re trying to fix meals.

• If you like to visit while you’re cooking, place extra stools and chairs around the perimeter of your kitchen so guests can set a spell.

Sleeping arrangements

If you’ve got a guest room, replace the ceiling fixture with a ceiling fan and light combo, which helps guests customize their room temperature without fiddling with the thermostat for the entire house. 

To carve sleeping space out of public areas, buy a folding screen or rolling bookcase, which will provide privacy for sleepers. Fold or roll it away in the morning.

Bathroom storage

Bring toilet paper, towels, and toiletries out of hiding, and place them on open shelves so guests can find them easily.

If you don’t have enough wall space for shelves, place these items in open baskets around the bathroom.

Also, outfit each tub with a bath mat (to avoid falls) and each toilet with a plunger (to avoid embarrassment).

Source: Lisa Kaplan Gordon from Houselogic

Mortgage Rates Dropped this Week

Fixed-rate #mortgages fell back near yearly lows again this week, lowering borrowing costs for home buyers and refinancers. The 30-year fixed-rate mortgage averaged 3.99 percent this week, Freddie Mac reports in its weekly mortgage market survey.

“If you are planning to buy a home in the next year, it’s better to do it sooner rather than later,” Frank Nothaft, Freddie Mac’s chief economist, said in the video commentary embedded here.

Source: Freddie Mac

Thanksgiving Becomes a Holiday

Early Puritans observed Thanksgiving days of prayer, but Sarah Josepha Hale's crusade for a national day of thanks is what ultimately gave us Thanksgiving.

Source: History.com

State Marijuana Laws Don't Protect Your Property

NAR Senior Policy Representative Megan Booth presents during the “Medical Marijuana and R.E.” session at the REALTORS® Conference & Expo in New Orleans

Here’s the thing about marijuana laws: Federal trumps state. So even though 23 states and the District of Columbia have legalized medicinal pot use — and four states have OK’d recreational use — the federal government still says marijuana is illegal. That means landlords and property managers in legal-pot states shouldn’t feel completely safe allowing tenants to smoke on the premises, NAR Senior Policy Representative Megan Booth said during the “Medical Marijuana and R.E.” session at the REALTORS® Conference & Expo in New Orleans.

“State marijuana laws haven’t been challenged at the Supreme Court yet,” Booth said. “That’s why they stand.”

She pointed out that federal law gives the government the right to seize finances and property that are connected to illegal activity, including drugs. So technically, landlords who let tenants grow weed in their apartments or smoke it on site for any purpose run the risk of having their real estate property taken from them.

The likelihood of that happening seems slim, as public opinion on marijuana shifts toward pro-legalization along with changing state laws. According to the Pew Research Center, the majority of Americans now believe marijuana should be legal, with 52 percent supportive. That’s up from only 12 percent in 1969.

Still, pressure is being applied to the federal government to act in accordance with federal law. “The U.S. has signed on to global treaties classifying marijuana as one of the heaviest controlled substances,” Booth said. “So there’s some outrage that the U.S. isn’t prosecuting marijuana users here as fiercely.” That pressure should signify to landlords and property managers that risk is present when accepting marijuana use on their properties.

As state marijuana laws change, multifamily properties and condos may need to add lease addenda specifically covering marijuana policies on the premises, Booth said. There also may be new disclosures that are required in the future when selling condos in pot-friendly buildings or homes near property that allow marijuana use, she added. For example, since the legalization of medical and recreational marijuana use in some states, there has been an increase in reports of explosions in properties where tenants are growing pot with sophisticated equipment. Smoke and odor could also have an impact on neighbors, and mold from the growing of marijuana — which requires a high level of humidity — could become an issue in multifamily buildings. For all those reasons, it may become necessary to disclose to buyers and renters when they are considering a condo or home in or near properties where marijuana use is allowed.

Posted in Conference & Expo, Law & Policy, NAR Events, Property Management, byGraham Wood

History of Veterans Day

 

Though the Treaty of Versailles was signed on June 28, 1919, November 11 remained in the public imagination as the date that marked the end of the Great War. In November 1918, U.S. President Woodrow Wilson proclaimed November 11 as the first commemoration of Armistice Day. The day’s observation included parades and public gatherings, as well as a brief pause in business activities at 11 a.m.

On November 11, 1921, an unidentified American soldier killed in the war was buried at Arlington National Cemetery in Washington, D.C.; the U.S. Congress had declared the day a legal federal holiday in honor of all those who participated in the war. On the same day, unidentified soldiers were laid to rest at Westminster Abbey in London and at the Arc de Triomphe in Paris.

On June 4, 1926, Congress passed a resolution that the “recurring anniversary of [November 11, 1918] should be commemorated with thanksgiving and prayer and exercises designed to perpetuate peace through good will and mutual understanding between nations” and that the president should issue an annual proclamation calling for the observance of Armistice Day. By that time, 27 state legislatures had made November 11 a legal holiday. An act approved May 13, 1938 made November 11 a legal Federal holiday, “dedicated to the cause of world peace and to be hereafter celebrated and known as ‘Armistice Day.’” In actuality, there are no U.S. national holidays because the states retain the right to designate their own, and the government can only designate holidays for federal employees and for the District of Columbia. In practice, however, states almost always follow the federal lead.

American effort during World War II (1941-1945) saw the greatest mobilization of the U.S. Army, Navy, Marines and Air Force in the nation’s history (more than 16 million people); some 5.7 million more served in the Korean War (1950 to 1953). In 1954, after lobbying efforts by veterans’ service organizations, the 83rd U.S. Congress amended the 1938 act that had made Armistice Day a holiday, striking the word “Armistice” in favor of “Veterans.” President Dwight D. Eisenhower signed the legislation on June 1, 1954. From then on, November 11 became a day to honor American veterans of all wars.

In the United States, an official wreath-laying ceremony is held each Veterans Day at the Tomb of the Unknowns in Arlington National Cemetery, while parades and other celebrations are held in states around the country. Veterans Day is not to be confused with Memorial Day–a common misunderstanding, according to the U.S. Department of Veterans Affairs. Memorial Day (the fourth Monday in May) honors American servicemembers who died in service to their country or as a result of injuries incurred during battle, while Veterans Day pays tribute to all American veterans–living or dead–but especially gives thanks to living veterans who served their country honorably during war or peacetime.

Source: History.com

Happy Halloween

Halloween is a celebration observed on 31 October, primarily in regions of the Western world; the traditions and importance of the celebration vary significantly between geographical areas. Halloween is a time of celebration and superstition. It is thought to have originated with the ancient Celtic festival of Samhain, when people would light bonfires and wear costumes to ward off roaming ghosts.

Evolving from the ancient Celtic holiday of Samhain, modern Halloween has become less about literal ghosts and ghouls and more about costumes and candy. The Celts used the day to mark the end of the harvest season and the beginning of winter, and also believed that this transition between the seasons was a bridge to the world of the dead.  Over the millennia the holiday transitioned from a somber pagan ritual to a day of merriment, costumes, parades and sweet treats for children and adults.

On all Hallow's Eve, Christians in some parts of the world visit graveyards to pray and place flowers and candles on the graves of their loved ones.

More Phoenix Homeowners Have Equity Now

Fewer metro Phoenix homeowners are underwater now, according to a report released today by real estate research firm CoreLogic.

Approximately 19.5 percent of the Valley's homeowners owed more than their house is worth as of June 30, down from 21 percent at the end of this year's first quarter.

At the worst of the housing crash, more than 40 percent of metro Phoenix homeowners were underwater.

Another big drop in the Valley's rate of underwater homeowners won't come again this year. Home sales have slowed and so have the area's price increases.

But on the bright side, Arizona is faring much better than other states hurt most by the housing crash with about 19 percent of homeowners underwater. In Nevada, 26.3 percent of homeowners still can't sell for a profit. In Florida, the rate is 24.3 percent.

Written by Catherine Rigor, The Republic|azcentral.com

Maricopa County Foreclosure Statistic

Foreclosure Outcomes :After the filing of a Notice of Trustee Sale, there are only three possible outcomes. First, the sale can be Cancelled for reasons that include a successful loan modification or short sale, a filing error, or a legal requirement to re-file the notice after extended postponements. Alternatively, if the property is taken to sale, the bank will place the opening bid. If a 3rd party, typically an investor, bids more than the bank’s opening bid, the property will be Sold to 3rd Party; if not, it will go Back to the Bank and become part of that bank’s REO inventory.

Foreclosure Outcomes: Arizona > Maricopa County

Notices of sale, which set the date and time of an auction, and serve as the homeowner's final notice before sale, in Maricopa County fell 1.9% in August.

Posted by Jen Weller, Fidelity National Title.

Americans' Attitudes Improve on Housing

Consumers’ optimism toward the housing market showed a slight rebound last month, with more people now saying it’s a good time to buy or sell a home, according to Fannie Mae’s September 2014 National Housing Survey, based on about 1,000 Americans’ attitudes on the housing market.

 The share of consumers who say now is a good time to purchase a home rose to 68 percent in September, a four percentage point increase from August. Also, the share of Americans who said they’d prefer to buy a home on their next move rose to 66 percent, following a three-point drop the previous month. The percentage of those who reported now is a good time to sell grew to 39 percent. Those surveyed also were more upbeat about home prices rising in the next 12 months, with expectations of price gains of 2.2 percent, on average.

Consumers also showed greater optimism toward the overall economy, with 40 percent now saying the economy is on the right track, posting a five percentage point gain from last month.

"The September National Housing Survey shows a slight recovery in consumer housing sentiment after a two-month setback, bringing us back to the modestly positive trend we've seen over the last year," says Doug Duncan, senior vice president and chief economist at Fannie Mae. "It might be too late to save this year's home sales from posting the first decline in five years. However, the return to an upward trend in housing sentiment, combined with this month's positive news on the jobs front, suggests that a broad-based, albeit measured, housing recovery is on track to resume in 2015. The results of the past few months show that consumer optimism remains cautious and somewhat volatile, and we'll likely continue to see bumps on the housing recovery path reflected in our survey results."

Source: Fannie Mae, Published by Daily Real Estate News

Solving The Puzzle of Property Taxes

The National Association of Realtors has said that home values are slowly accelerating. That is not bad since we dont want a repeat of real estate bubble that happened several years ago. Tami Hoey of AZCentralfamily.com has published this article last year, but property taxes calculation does not change.

Good Morning Arizona,  called in an expert to help us understand property taxes. Attorney Don Miner says it's important to understand tax values. "When the market's fluctuating, it may take them a year, two years, even three years to catch up," Miner tells us.

Ratios can vary according to the type of property: Commercial, vacant land, owner occupied and rental.

Miner says take a close look at your notice of property valuation. "It comes toward the end of every February," says Miner. "Look hard at those values to be sure that they're not higher than your fair market value.

The notice of value will show the full cash value of the property, the limited property value of the property, the assessment ratio, and the appeal deadline.

Should You Consider Owner Financing?

With over 90% of mortgage loans owned or guaranteed by the U.S. government, lending requirements have tightened to the point that many otherwise qualified borrowers are unable to buy a home, especially with higher credit score and down payment requirements as well as private mortgage insurance. FHA loans, for example, require mortgage insurance on every loan.

Home sales due to tight lending have been held back as much as 15%, estimates the National Association of REALTORS®. That's left many homeowners and homebuyers frustrated.

Owner financing could be the answer for many. If the parties protect themselves by adhering to state regulations and use reputable sources to help navigate the transaction safely, including their real estate professionals and attorneys, it could be the ideal alternative to bank financing.


What is Owner Financing (#ownerfinancing)?

Owner financing simply means that the home's owner carries most or all of the buyer's note. In a volatile real estate market, owner financing can get homes sold that otherwise wouldn't sell, which benefits both sellers and buyers. All it takes is a legal binding agreement that spells out the terms of the loan.


Benefits to sellers

When the seller carries the note, he or she takes the place of the bank, assuming the risks such as defaults and damage to the property, and the rewards such as receiving market value plus monthly interest payments on the note.

A seller can sell a home without having to meet the repair and integrity standards set by FHA and conventional loan lenders.

A popular scenario is that the seller may require that the buyer pay rent-to-own until they accumulate enough for a conventional down-payment. A portion of the money is kept by the seller, and a portion goes into a trust so when the balloon portion of the note is due, the buyer can refinance with a conventional bank loan that pays the seller off.

Benefits to homebuyers

Buyers who have trouble meeting conventional loan standards for any reason are most likely to benefit from buying a home with owner financing. Because the seller collects a monthly interest payment and retains ownership of the home until the terms of financing are met, buyers can typically buy a seller-financed home with little or no money down. But, they can expect to pay higher interest rates for the privilege. The buyer can immediately start enjoying the benefits of homeownership, including rising equity and tax benefits.
Owner financing isn't just for buyers with low credit scores. It can also benefit buyers who want to buy a home but perhaps can't meet the 20% down-payment requirements of a conventional loan.

The Risks in Owner Financing

As in any transaction, there are risks. For the seller, it would be that the buyer stops making payments and loots or destroys the property. But in the case of a default, you take back the property with whatever the buyer has paid forfeited to you.

For the buyer, the risk is that the seller doesn't have clear title to the property, or that the owner-financed loan is tied to the seller's adjustable rate loan, which can be more expensive, some years, than the buyer can afford.

Your real estate agent may be negative about your selling the home this way, because agents are used to the formalities of banks. However, any problems that arise can be managed with proper protections for both sides. Consult a real estate attorney and your real estate professional for more information.

Written by Home Blogger, My Realty Times

Hispanics to Shape Future Housing Demand

A booming Hispanic population will be the key to the nation’s future residential real estate market, Julian Castro, the newly confirmed secretary of the Housing and Urban Development, told The Associated Press.

Nearly half of first-time homebuyers nationwide will be Hispanic in six years, according to a 2013 study from the National Association of Hispanic Real Estate Professionals. What’s more, Hispanics are forecasted to account for 40 percent of the estimated 12 million net new households nationwide within the next decade.

Castro says that an overhaul of federal immigration laws could further aid the U.S. housing market. Federal immigration law changes could add about 3 million home owners and generate more than $500 billion in sales, income, and spending into the housing economy, estimates the National Association of Hispanic Real Estate Professionals study.

"It's a significant contribution if we can get immigration reform done," Castro says.

Source: “Castro: Hispanics Key to U.S. Housing Sector Future,” Associated Press (Sept. 20, 2014)

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Get a Discount on Your Mortgage

Mortgage Applications Plunges?

Just a slight trend higher in interest rates was enough to stall both potential home buyers and borrowers looking to refinance their loans.

Total mortgage application volume fell 7.2 percent last week from the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association (MBA). The weekly index is now at its lowest level since December of 2000.

"Although the weekly increase in rates was small, they were trending up in the week following Labor Day, with many data reports showing a pickup in the pace of economic growth," said Michael Fratantoni, chief economist for the MBA.


written by Diana Olick,CNBC

Why Loans Are Still Hard to Get

In the early days, if you wanted a mortgage loan, you had to have a job, some down payment money and good credit. While that's still true today, loans are more difficult to get.

Lenders look for more information about you,  making the process take longer than it used to. If you're wondering why, the reason is buy backs. A buy back is a loan that the lender originally issued and then sold to another lender, mortgage servicing company or to Fannie Mae or Freddie Mac. 

If the borrower defaults on their loan, lenders want to know why.  Fannie and Freddie look to see if there was a problem in underwriting or something fraudulent about the loan that contributed to the borrower's default. If so, the lender could be forced to buy the loan back.

Explains David Reed, author of Mortgages 101, "When a mortgage company makes a home loan, it doesn't pull money out of its savings accounts, but instead utilizes a credit line from which it draws. The lender approves a loan, draws down its credit line by $300,000 to issue the mortgage. If a lender does this several times a day pretty soon that credit line would start to look a little thin. When a lender needs to replenish its mortgage coffers, it sells the loans it has already made to other lenders."

There are specific purchase agreements between lenders who buy and sell loans. These are called conforming loans, because the loan must meet certain criteria to be eligible for purchase by a secondary party. It can't exceed a certain amount, may require a minimum down payment and the credit scores of the borrowers may not be below 620, for example. That way lenders who buy loans don't have to re-underwrite a loan that's been certified by the original lender as a "sellable" mortgage, says Reed.

To avoid any potential buy back, lenders today are asking for more documentation than previously required, or asking that borrowers meet stricter credit terms than those required for conforming loans. The result is that lenders are taking more time to close loans.

Reed points out that if one were self-employed, the underwriter would ask for maybe one year's tax return. "Now, two years returns are required, and even three years, if the underwriter feels uncomfortable with a loan," he says.

The bottom line for borrowers is be prepared to offer more documentation and for the purchase transaction to take longer. That doesn't mean the lender is going to decline the loan.

In fact, one way to look at the situation is that it's an advantage for borrowers. It may be tougher to get a loan, but it's also going to be tougher to default.

Written by Blanche Evans, Realty Times