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Judy Reed

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RE/MAX vs The Industry

by Judy Reed

Quick Ways To Turn Off Buyers: YOUR SELLING CHEAT SHEET!

by Judy Reed

4 Ways to Tell How Fast Your Home Will Sell

by Judy Reed

for sale

It’s not just location, location, location — although location is certainly important. Lots of other factors make one house hot and another one not.

Here are data-driven pointers from Zillow Research that help identify which homes are likely to fly off the market (in 60 days or less):

  • Keep calm and price it right. The housing market is improving, but take care not to overheat your listing price. Homes priced more than 12 percent above their Zestimate® home values are almost half as likely to sell in 60 days as those priced closer to their estimated values. The sweet spot is between the Zestimate and six percent above it — a range where homes sell about as quickly as those priced below their Zestimates.
  • Take a picture, but not too many. The optimal number of listing photos is 16 to 21, but it’s better to have too many than too few. Having fewer than nine photos lowers your chances of selling in 60 days by two percentage points.
  • Size matters. As a rule, smaller homes (under 1,100 square feet nationally) sell the fastest — about nine percentage points faster than the largest homes in a 60-day window — but that doesn’t hold true for all markets. In San Francisco and Indianapolis, for example, small homes take the longest to sell.
  • Get the word out. Page views on Zillow are a strong indicator of how quickly a home will sell. Listings with 280 or more page views in the first week were three times as likely to sell in 60 days as those with fewer than 100 views. That’s powerful incentive to make sure your agent spreads the word early by posting your listing online.

Top 3 Reasons To Use Energy Star Approved Products

by Judy Reed

Ready For An Empty Nest?

by Judy Reed

Before you start going to open houses, pay down high interest debt now.

The higher the interest, the higher your priority should be in getting it squared up quickly. Many people pay close to the minimum on their credit card debt in favor of growing their savings, despite the fact that their payment often doesn’t even cover interest. Monthly interest for credit cards for people with near perfect credit can still hover around ten percent or more, often double or triple your student loan payments.

buy-house-student-debtPay down your cards as quickly as you can, and only use them in an emergency situation. With this extra interest-payment savings, you can pay additionally on your student loans, lessening their overall burden, or tuck away money for a down payment. This will improve your credit score too, helping you get better terms on your loan.

Be mindful of your Debt-to-Income ratio.

One of the biggest factors for people who can’t get a loan despite having a good job and some savings is their DTI, or Debt-to-Income ratio. Lenders study your monthly income compared to how much you spend paying down debts such as your loan payments, credit cards, auto loans and any other installment or revolving debt.

This is among the biggest hurdles for people with student loan debt in getting loans. Look into where your DTI is early in the process so you know how far away you are from securing good terms on a loan, then make actionable steps toward that goal before you sit down with a lender.

Investigate down payment assistance programs.

Chances are if you are making payments towards your student debt, you aren’t putting a large amount of money aside for your down payment. Many young people who have smaller savings look immediately to FHA loans, but especially in high dollar metros in places like California or New York, your FHA standard 3.5 percent can still cost tens of thousands of dollars (plus, many have higher interest rates and require mortgage insurance).

Every state and many cities have programs in place to assist qualifying homebuyers in paying their down payment. Whether they’re helping first time buyers or stabilizing neighborhoods, down payment assistance programs can be a great help to buyers whose savings have been affected by their debt load.

Consider crowdsourcing.

Sometimes the needs of the market lead people to innovate in ways wholly unfamiliar to generations before them. For our parents’ generation, signaling a stranger to drive you around was called hitchhiking; for our generation, we call it Uber.

The same type of dynamic exists in financing your investment. If you’re starting out with debt, getting more people on board or looking for a different way to kick off your investment can lessen the initial weight you carry. Alternative approaches to financing, from crowdsourcing collectives and co-ops to pitching in with trustworthy friends to get off the ground, are becoming more popular as the cost of buying a home increases in major metros.

Other alternative financing strategies such as buying owner-financed homes, rent-to-own and developing vacant land are also growing in popularity among creative youngsters looking to get started sooner rather than later.

Distressed properties.

Swing a hammer like your grandpa did. Chances are, if you are a young and indebted person with limited assets to work from, a distressed property that needs some renovation will be more in your range than a new or updated turnkey home. Do what you can yourself to save money on contractors. Remember to consider the cost of your renovation and the degree of repair that is needed; the cost of contractors can vary widely from region to region based on demand and availability.

first-propertyBuy wisely.

Above all, buy a home that is going to make you money, not just the one you can afford. Thanks to advances in real estate data, we are learning more and more new things about the types of trends that appeal to different buyer demographics. Buying a home with a higher walk score, for example, can boost your rate of appreciation more than homes in car-reliant neighborhoods according to several studies.

Know about buyer trends and get a home that will earn you money in the long term, rather than trigger migraines. People whose lending options are limited may feel pressured to aim lower on the quality and location of the home they invest in for obvious reasons, but often it’s better to wait than buy an unmarketable property.

With time and patience, young people who are still paying off their education can get started on buying a home. Growing an investment with a moderate student debt burden requires preparation, but it can be done — and done successfully!

If done right, buying an investment property can provide you with the type of financial security that even makes it possible to pay off your debts more quickly than expected.

Daylight Savings Time this weekend!

by Judy Reed

Looking For A New Strategy?

by Judy Reed

4 Reasons to Buy a Home This Spring

by Judy Reed

The home buying season is about to get under way, and it’s expected to be a busy one. Here are four factors that are likely to influence buyers.

Low mortgage rates

Everyone knows that the low-rate party is coming to end. Zillow is forecasting that mortgage rates – currently around 4 percent for the 30-year fixed – will rise to 5 percent by the end of 2015.

Granted, a 1-percent rise may not sound like much, but it’s a great motivator to get in and buy now. After all, a 1-percent increase in rates reduces affordability by a whopping 11 percent.

Confidence

Zillow’s Housing Confidence Index (ZHCI), which is designed to offer insights into homeowners’ and renters’ intentions and attitudes concerning the housing market, is a forward-looking gauge of housing market health. And things are looking up.

Confidence in the housing market is higher this year than it was last year — among homeowners as well as renters, many of whom are now rethinking their attitudes toward home ownership and are ultimately becoming more interested in buying.

High rents

Rental affordability is as bad as it’s ever been across the U.S., in part because there are not enough new, affordable units to meet demand. Renters can expect to spend 30.1 percent of their income on rent, while home buyers can expect to spend about 15.3 percent of their monthly income on a mortgage payment.

Those numbers alone are driving renters who can save for a down payment to pursue homeownership. In fact, data from Zillow shows that 5.2 million renters want to buy in the next year. That’s up from 4.2 million renters from the same time last year — almost a 25-percent boost.

Loan availability

Getting a mortgage is significantly easier than it was a year ago, and the markets are rapidly approaching pre-crisis credit conditions.

What this means to borrowers: Those who last year may have only been eligible for an FHA loan are now being offered conventional loans with private mortgage insurance. As lenders open their doors wider, borrowers have more options, with competitive terms and rates.

Drowning In Your Mortgage Payment?

by Judy Reed

Displaying blog entries 1-10 of 27

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