Born and raised in Arizona, Daniel pursued a career in residential and commercial remodeling in which he acquired extensive experience in customer relations and sales.
His wife, Lisa, and stepdaughter, Alandra, moved to the Smith Mountain Lake area in 2015. They were drawn to this area for the beautiful scenery and the laid back country style of living. After years of searching, God has blessed them with an amazing property in Moneta.
Being an outdoor enthusiast and fisherman, Daniel has been busy exploring the Lake and surrounding areas. He would love to share his knowledge and experiences with you. As a previous business owner, he knows exactly what it takes to get the job done for his clients. With over 30 years of sales and negotiation experience, providing outstanding customer service, attention to detail, and patience, Daniel will serve you professionally in all of your Real Estate and Rental needs.
Be sure to head over to Bridgewater Plaza this Saturday for our annual Easter Egg Hunt. Tons of fun for the little ones, plus shopping and dining for the grownups! Drop in after the hunt at Lake & Land Realty to talk to one of our Realtors about current market condions and view the newest property listings on and around the lake! We are located between The Visitors Center and Moosies Restaurant!
Easter Egg Hunt at Bridgewater Plaza
April 15, 2017, 1:00pm - April 15, 2017, 3:00pm
Join us for our annual Easter Egg Hunt! Kids ages 5 and under will hunt at 1 p.m., followed by kids ages 6-8 at 1:30. Be sure to bring your camera to get photos with the Easter Bunny at Harbortown Mini Golf Course. Prizes! Candy! Rain or shine!
The SML Chamber will be representing Smith Mountain Lake at the Chamber booth at the SW VA Boat Show, February 24, 25, & 26 at the Berglund Center. The weather feels like Spring and boating on beautiful Smith Mountain Lake is just around the corner....come view the boats all in one place! Drop by the Chamber booth too to pick up helpful info about the Lake.
Working with a Realtor® can save you time, money and trouble. Nearly eight out of ten consumers believe Realtors® can show buyers a better selection of homes than they can find on their own, according to an independent survey of the general public released by the National Association of REALTORS®.
Seventy-eight percent of the general public believe real estate professionals offer them a broader selection of housing alternatives than they would otherwise find. Seventy-four percent agree that using a real estate broker saves time, and 70 percent agree that real estate professionals make buying or selling a home much easier.
What's the difference between a Realtor® and other real estate professionals?
While there are plenty of real estate professionals to choose from, the best bet in terms of ethical, efficient and reliable service is a Realtor®. A Realtor® is a real estate licensee who's decided to take an extra step toward professionalism and high ethical standards. That step: joining the local, state and national Associations of Realtors®.
You see, not all real estate licensees are Realtors®, although many people confuse the terms. More than 24,000 of the 37,000 active real estate licensees in Virginia are members of the Virginia Association REALTORS®, entitling them to use our registered mark, REALTOR®, after their name.
Unlike many real estate practitioners who simply hold business licenses, Realtors® have taken additional steps to become members of the local association of Realtors® and have agreed to act under and adhere to a strict Code of Ethics. Whether you're buying a home or selling a home, you can be certain your Realtor® will provide you more service and more expertise. Isn't that a guarantee you want, when you're making the biggest investment of your life? Contact one of our experienced Realtors with Lake & Land Realty. You will be glad you did.
Lake & Land Realty has 24 Realtors. We also offer Appraisal Services. Dexter Rakes, Realtor, and Tracy David, Realtor are two of our Realtors on staff that can assist you with your Appraisal needs. Just go to our homepage on www.RealtyAtTheLake.com and click on the Agents tab to find their contact info. Lake & Land Realty is your One company to serve all of your real estate needs. www.RealtyAtTheLake.com
Lake & Land Realty is excited to have Teresa Eaton join our company! Learn more about Teresa on " Our Agents" tab on the homepage of our website at www.RealtyAtTheLake.com. Call Teresa today at 540-314-5165 or email her at TeresaEatonsml@gmail.com.
The Real Estate Agents have been busy at Lake & Land Realty! With Spring, there is a buzz of new property listings! Please view all of our listings as well as all of the listings in the Multiple Listing Service in one place...at RealtyAtTheLake.com.
Our Agents can help you with any of these listings! Our company is located in the heart of Smith Mountain Lake- at Bridgewater Plaza right next to the Visitor's Center! Come see us our contact us today at 540-721-6005.
Does Staging Add Value to the Home-Selling Process?
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From Realtors to bloggers to HGTV, sellers hear about the need to get creative to attract prospective buyers to their homes. Suggestions include filling the rooms with warm and inviting scents, providing the perfect lighting or playing up fun and interesting features.
Another popular option is home staging, which involves arranging and decorating the home in a way that appeals to a wide range of buyers. In the National Association of Realtors’ new 2015 Profile of Home Staging, 96 percent of Realtors who have experience assisting buyers thought that staging had an impact on buyers at least some of the time (49 percent reported staging had an impact on buyers most of the time, while 47 percent believe that staging impacts buyers some of the time).
Needless to say, first impressions make all the difference. Lake & Land Realty's Real Estate Agents can assist you with marketing strategies.
Contact us today to scheudle a listing appointment with one of our Real Estate professionals. View www.RealtyAtTheLake.com learn more about our Agents.
15 Profil percent of Realtors who have experience assisting buyers thought that staging had an impact on buyers at least some of the time (49 percent reported staging had an impact on buyers most of the time, while 47 percent believe that staging impacts buyers some of the time).
Meet our newest Real Estate Agent! Jack Doyle joined Lake & Land Realty this Fall. Learn more about Jack and his property listings on our Agents Tab on www.RealtyAtTheLake.com! Welcome Aboard Jack!
4,000+ Sq Ft Lake Property has 3 Bedroom/4 1/2 Baths with Huge Lower Level-Newest Vacation Property!
Enjoy this Beautiful Smith Mountain Lake Villa with plenty of space on entry and lower level! This Vacation Rental Home is rented thru August. Reserve this home starting September 1st... just in time for the beautiful fall foliage and calmer lake waters or book it for your 2015 Vacation! The entry level consists of a kitchen with a breakfast nook, dining room, living room, 3 bedrooms. The huge walk out lower level features family room, kitchen/bar with counter top seating, 2 1/2 baths, pinball machine & chess/poker table! View pictures of this amazing property at www.RentalsAtTheLake.com!
This Upcoming Weekend is Pirate Days at Smith Mountain Lake! Visit Lake & Land Realty on July 18-20th for Some Pirate Booty! Look for the Pirate Rubber Duckie in our office and enter to win the Pirate Booty Gift Basket! We are Located Next Door to the Visitor's Center.
When you list your property with Lake & Lane Realty, your property is listed on all of the Main Real Estate Websites. See your property on Realtor.com, Zillow, Trulia, Hotpads and many other local websites. Our company has also purchased a premier account with both Realtor.com & Zillow so that your property stands out. Contact us today for more information and a complete listing of websites.
Marsha Turpin, REALTOR, is now managing the Short Term Vacation Properties! Tracy David, REALTOR, continues to manage the Long Term Property Rentals. Contact Marsha or Tracy for all of your Property Rental Needs. Lake & Land Property Rentals is centrally located at Hales Ford Bridge, next to the Visitors Center. See our latest properties at www.RentalsAtTheLAke.com.
Lake & Land Realty recently opened a Premier Office Account with Zillow.com. Premiere Agents with Zillow get 5 times more profile views and 28 times more leads! Lake & Land Realty strives to market your home ON the internet. Call today to learn about our marketing tools to get your property SOLD fast! 1-866-751-6005.
Lake & Land Realty is happy to welcome Mike DeGiorgi to our family of Real Estate Agents! Learn more about Mike on the Agent Tab on our website on www.RealtyAtTheLake.com.
Drop by the Southwest Virginia Boat Show this Weekend and visit the Smith Mountain Lake Chamber Booth to pick up Real Estate Info from Lake & Land Realty! The Boat Show is February 21, 22, & 23 at the Roanoke Civic Center.
Lake & Land Realty Customizes Your Property on Realtor.com. We purchased the Enhancement Program with them thus enabling us to enhance your home or land so that it stands out. Also there is a toll-free number for each of our Real Estate Age...nts on Realtor.com so they can handle inquiries easily on your property. It also allows us to post more photos of your property. See the Difference! Another Reason to List Your Property with Lake & Land Realty.
Lake & Land Realty Top Real Estate Agents for December 2013
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Congrats to our top Real Estate Agents at Lake & Land Realty for December 2013. Learn more about these agents and their property listings at www.RealtyAtTheLake.com. Way to Go!
Top Listing Agent: Ricky Smith
Top Selling Agent: Kay DeGiorgi
Top Selling Team: Catina Wright & Pam Gabriel
Top Producing Agent: Brian Rust
Top Producing Team: Mike, Sylvia, Matt & Amanda Pagans
Mark your calendar! The 2014 Southwest Virginia Boat Show will be held at The Roanoke Civic Center on February 21st, 22nd, and 23rd. Many vendors will be there showing their latest boats and jet skis! Get ready for a fun filled Spring/Summer on Smith Mountain Lake!
Another Reason to Call Smith Mountain Lake Area Home
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Smith Mountain Lake is situated in three counties and is conveniently located between two great towns...Lynchburg and Roanoke. The Roanoke region was recently named Best Trail Town 2013 by Blue Ridge Outdoors. It also came in third in Best Beer Town(out of 20 other sudsy places).
Smith Mountain Lake is the best of both worlds....a quiet community with all of the great things that the Lake offers as well as being close to a small city. Contact Lake & Land Realty to find your dream home today. We look forward to assisting you.
Lake & Land Realty would like to wish you a happy and prosperous New Year. We look forward to assisting you with all of your Real Estate Needs in 2014!
The National Association Realtor Chief Economist, Lawrence Yun, predicts that home sales will hold steady in 2014 and prices will continue to rise. He also expects the median existing-home price which is currently at $197,000 to increase 6 percent next year.
Sellers wonder if they should keep their properties on the market or take them off during this time of the year. Conventional wisdom says yes but with the internet, smartphones, tablets and our always on lifestyle that conventional wisdom isn't relevant anymore. The reality is that home buying season is now year around. Also the inventory and the competition is usually lighter. If you don't want to be bothered during the holidays, list in January. Traditionally inventory is very light and buyers with their New Years resolutions want to stop wasting money on rent and buy a home. Also some buyers are motivated to search for a home in January because of year-end tax planning. Whatever the buyers' motivation, for sellers it means one thing: Demand for homes can increase at a time when inventory is traditionally low...meaning you will have a more captive audience during the holidays...all the way through January.
Lake & Land Realty would like to wish you a Safe & Happy Thanksgiving. We are thankful for our customers and look forward to continuing in assisting you with all of your Real Estate Needs.
Lake & Land Realty at Smith Mountain Lake is participating in the annual Elf on the Shelf Contest. Come visit us and find our office Elf! Visit the other participating businesses at Bridgewater Plaza and turn in your completed entry form in at the Visitors Center(next door to Lake & Land Realty). A drawing for an awesome Gift Basket will be held on Saturday December 21st! Pick up an Elf on the Shelf entry form from our office. Good Luck!
The home sales statistics are pulled from the Multiple Listing System of Roanoke Valley, which encompasses the following areas: Cities of Roanoke and Salem, Town of Vinton and Counties of Roanoke, Botetourt and Craig plus portions of Bedford and Franklin Counties.
Roanoke, Franklin Named Top Digital Counties Again
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Two Roanoke region localities have been recognized as nationwide technology leaders. Roanoke County and Franklin County each placed in the top 10 of the Annual Digital Counties Survey for communities with a population of less than 150,000. Roanoke County was ranked fifth and Franklin County was eighth.
Smith Mountain Lake & the Roanoke Valley are not just beautiful places to call home but we are recognized for being tech savvy. Another reason to call Smith Mountain Lake & surrounding areas home.
Lake & Land Realty also handles Long Term Property Rentals On & Around Smith Mountain Lake! We List Your Properties for Rent on Realtor.com, Zillow, Hotpads & Trulia. They Are Also Listed in the Local Multiple Listing System. View All of Our Homes & Properties on www.RentalsAtTheLake.com. They Have Been Leased So Fast...We Are In Need of More! Contact Tracy David, Our Property Rental Manager for More Info at 540-263-007.
Lake & Land Realty is located at "The Bridge"....come have some chili and drop on in for Lake Info!
Coming Up! 11th Annual SML Fall Chili
and Craft Festival
November 2, 11am - 4pm.
Chili Cooker Teams, sign up
today!
Enjoy a full-day event
featuring crafts and a competitive chili cook-off. Trophies will be
awarded for "Best Chili," "People's Choice," and
"Showmanship." It'll be a hot time at Smith Mountain
Lake. The event is held lakeside at Bridgewater Plaza in Moneta, near the
Hales Ford Bridge.
Drop in Lake & Land Realty During Annual Fall Festival
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Bridgewater Plaza Fall Festival, October
12, 2013
Drive or boat to Bridgewater
Plaza, Smith Mountain Lake, on Oct 12, 10 a.m. to 5 p.m. for the Fall
Festival. Shop all your favorite stores, as well as local craft vendors,
and dine at your favorite restaurants! Also enjoy live entertainment on
Mango's stage: DJ music, singing by the Harmeneers, Staunton River High
School choir, VA Dance Academy performances, Traditional Tae Kwon Do Academy
demonstrations, Balloon Dude Travis, and Honey Tree Learning Center face
painting.
Lake & Land Realty is located at Bridgewater Plaza next to the Visitors Center-
The home sales statistics are pulled from the Multiple Listing System of Roanoke Valley, which encompasses the following areas: Cities of Roanoke and Salem, Town of Vinton and Counties of Roanoke, Botetourt and Craig plus portions of Bedford and Franklin
Another reason to list your property with Lake & Land Realty is that we have purchased the Company Showcase product with Realtor.com. This marketing tool allows us to enhance your property on Realtor.com.
We Attach more photos - photos are what potential buyers want to see. This is one of the most important elements repeatedly asked for and it's easy to do. We can add up to 36 photos including the MLS photo.
We Include customized text descriptions - to provide detailed listings descriptions. These descriptions highlight and complement your listing, providing us an opportunity to include more in-depth descriptions.
We Add animated headlines - to call attention to special listings. Headlines that “sell” will help our listings stand out when buyers are searching.
Look at Lake & Land Realty's listings on Realtor.com and you will see the difference. Contact one of our Real Estate Agents today to discuss our marketing strategies
The home sales statistics are pulled from the Multiple Listing System of Roanoke Valley, which encompasses the following areas: Cities of Roanoke and Salem, Town of Vinton and Counties of Roanoke, Botetourt and Craig plus portions of Bedford and Franklin Counties.
More Long Term Property Rentals Wanted! Lake & Land Property Rentals have rented all but one! Contact Tracy David, Property Manager, at Lake & Land Property Rentals for info. www.RentalsAtTheLake.com
It has been officially declared the weekend of July 19th through the 21st as "Smith Mountain Lake Pirate Weekend". All citizens and visitors are encouraged to participate in the festivities!
Come See us at Lake & Land Realty! We will be decorated in a Pirates Theme and be giving away skull rings & pirate coins to the wee pirates. Our neighboring businesses will also be participating in this fun annual family event. Another reason to call Smith Mountain Lake Home!
Lake & Land Realty Advertises Your Home Everywhere
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With our internet package, your property will get the maximum exposure. List with us and we will advertise your home on national, regional websites. Some of those websites include:
Realtor.com
Trulia
Zillow
LandFarm& Ranch
HGTVFrontDoor
Oodle
Hotpads.com
Craigslist
SWVAhomes.com
RealtyAtTheLake.com
For a complete list, please contact our office at 1-866-751-6005.
Lake & Land Realty has a sister company that handles property rentals too! That company is Lake & Land Property Rentals. We handle vacation and long term rentals. Several new properties have just been added! To view these rentals, please visit our Rentals website at www.RentalsAtTheLake.com.
Our Realtors at Lake & Land Realty insure your property get the maximum exposure. Learn about our Agents under the Agents tab on our website. They will insure that your.....
homes
are listed on the area’s Multiple Listing Service or MLS. We belong to both Roanoke & Lynchburg VA MLS.
homes
are listed on major real estate search engines. We list your home on Realtor.com, Trulia, Zillow, Craigslist, SWVAhomes, Hotpads and multiple other sites. Contact us for a complete list of websites that we post your property to.
homes
are listed online with multiple and good quality property photos.
The home sales statistics are pulled from the Multiple Listing System of Roanoke Valley, which encompasses the following areas: Cities of Roanoke and Salem, Town of Vinton and Counties of Roanoke, Botetourt and Craig plus portions of Bedford and Franklin Counties.
Working with a Realtor® can save you time, money and trouble. Nearly eight out of ten consumers believe Realtors® can show buyers a better selection of homes than they can find on their own, according to an independent survey of the general public released by the National Association of REALTORS.
February existing-home sales and prices affirm a healthy recovery is underway in the housing sector, according to the National Association of Realtors®. Sales have been above year-ago levels for 20 consecutive months. We here at Lake & Land Realty have been busy too. Please contact us for a market analysis today. Our Real Estate Agents will be glad to assist you with all of your real estate needs.
Lake & Land Realty Advertises Your Property Everywhere
0 Comments Posted
Lake & Land Realty advertises your home everywhere with our Internet package! With us, your property will get maximum exposure! List with us and we will advertise your home on National web sites like Realtor.com, Trulia, Zillow, Hotpads, Craigslist and multiple other sites. Contact us for a complete list today.
The home sales statistics are pulled from the Multiple Listing System of Roanoke Valley, which encompasses the following areas: Cities of Roanoke and Salem, Town of Vinton and Counties of Roanoke, Botetourt and Craig plus portions of Bedford and Franklin Counties.
Online House Hunting Hot in March and April in Virginia
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After the holidays, prospective homebuyers and renters in Virginia typically begin or renew their home search at the start of a new year. At the national level, online real estate search activity picks up in January and reaches its peak in March and April, after stripping out the upward trend from Trulia’s traffic growth over time. Following a slight dip in May, a second peak occurs during the summer months of June and July. As the year ends, home searches slow down, hitting their lowest level in December.
Asking prices increased 5.1% nationally year-over-year (Y-O-Y), marking a huge turnaround from being down 4.3 percent in December 2011. Moreover, not only are prices rising, these gains have accelerated in the last year. Quarter-over-quarter price changes were 0.8% in Q1 (March 2012), 0.4% in Q2 (June 2012), 1.4% in Q3 (September 2012), and 2.3% in Q4 (December 2012), seasonally adjusted. More good news for the Real Estate Industry!
Per a recent survey completed by Trulia.com..."RENTER NATION" JUST A MYTH AS 93 PERCENT OF MILLENNIAL RENTERS PLAN TO BUY A HOME.
Consumers Optimistic About Homeownership As Housing Market Recovers; 22 Percent of Homeowners at least Somewhat Likely To Sell In 2013 Amid Rising Home Prices.
More promising news for the Real Estate Industry for 2013.
Lake & Land Realty at beautiful Smith Mountain Lake in VA celbrated it's 7th anniversary this month! The company was established in 2005 & is now located at 17 Bridgewater Plaza, right in the heart of Smith Mountan Lake! We have grown from 15 to 30+ Realtors. Our broker & owner is Dexter Rakes. He is from the area and feels that he has the best Real Estate Agents. They will go the extra mile to get the job done. Our company recentlty opened a Rental Company-Lake & Land Property Rentals. Our company is a full service comapny that handles Real Estate, Rentals and Appraisals. Contact us for all your Real Estate Needs.
Virginia Association of REALTORS Help Out Those in Need
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In the wake of Hurricane Sandy, the Virginia Association of REALTORS® Board of Directors has approved a $10,000 donation to the REALTORS® Relief Foundation to help assist those in areas severely affected by Sandy. As REALTORS®, we help build and maintain communities. We aren’t just there when the time comes to buy or sell a home. We are there during periods of need as well. Now—in the wake of Hurricane Sandy—is one of those occasions.
Virginia Association of Realtors Has More Good News About the Real Estate Market in Virginia
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When viewed on a quarterly basis, the third quarter of 2012 shows further growth in Virginia’s residential real estate market with a 6% increase in home sales as compared to the third quarter of 2011. To view report, click on below link.
Per Virginia Association of Realtors, the Third Quarter Virginia Home Sales Report has been released and yet again, most state-wide indicators show an improved housing market in the Commonwealth.
Great news for the Real Estate Market! Feel free to call Lake & Land Realty today for a free market analysis!
Home ownership has a significant impact on net worth, educational achievement, civic participation, health, and overall quality of life. And, home ownership helps create jobs—lots of them—right here at home.Home Ownership matters…to people, to communities, and to America. Why?
For every two homes sold, one job is created in the U.S.
Each purchase generates as much as $60,000 in economic activity over time.
Owning your own home is not only beneficial to you; it also helps create jobs and stimulate the economy.
Houselogic.com, a comprehensive website about all aspects of homeownership from the National Association of Realtors®, has won Content Marketing Institute’s (CMI) 2012 Content Marketing Orange Award for the Content Marketing “Program of the Year” in the online channel. Just another tool to help the homeowner!
August home sales in the Roanoke region increased slightly from a year earlier.
0 Comments Posted
The Roanoke Valley Association of Realtors reported 384 homes sold last month, marking the highest monthly total in more than two years. In August 2011, 346 homes sold.
The organization tracks home sales in Roanoke and Salem, the counties of Roanoke, Botetourt and Craig, and portions of Bedford and Franklin counties.
Congratulations To Our Top Agents for August at Lake & Land Realty
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The following were our top Real Estate Agents for August 2012 at Lake & Land Realty! Ricky Smith was our Top Listing Agent: Pam Gabriel was our Top Selling & Top Producing Agent; Mike, Sylvia & Matt Pagans were our Top Listing Team and Manley & Trish Johnson were our Top Selling and Top Producing Team. Learn more about these Top Producers on our website-www.realtyatthelake.com.
Postive Real Estate News from the National Association of Realtors
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WASHINGTON (August 22, 2012) – Sales of existing homes rose in July even with constraints of affordable inventory, and the national median price is showing five consecutive months of year-over-year increases, according to the National Association of Realtors. Monthly sales rose in every region but the West, where inventory is very tight....
Contact Lake & Land Realty at Smith Mountain Lake for a market anaylsis of your property today. www.realtyatthelake.com
When looking for a home, search for one that you could see yourself living in for several years -- at least five to seven years is ideal. Buying -- and moving -- to a new home takes a lot of time and effort, and can add up significantly in closing and moving costs, etc. Staying in place longer will help you avoid those added expenses. Plus, the extra time spent in your home could be just enough to help you ride out a downturn in the real estate market.
Contact Lake & Land Realty at Smith Mountain Lake to let one of our experienced Real Estate Agents assist you in purchasing the home of your dreams. www.realtyatthlake.com
The Second Quarter 2012 Virginia Home Sales Report has been released and nearly all state-wide indicators show a much improved housing market in the Commonwealth. To read more about this visit the Virginia Association of Realtors website.
News Release From National Association of Realtors
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June Existing Home Prices Rise Again
WASHINGTON (July 19, 2012) - Existing-home prices continued to show gains but sales fell in June with tight supplies of affordable homes limiting first-time buyers, according to the National Association of Realtors®.
Total existing-home sales1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, declined 5.4 percent to a seasonally adjusted annual rate of 4.37 million in June from an upwardly revised 4.62 million in May, but are 4.5 percent higher than the 4.18 million-unit level in June 2011.
Lawrence Yun, NAR chief economist, said the bigger story is lower inventory and the recovery in home prices. "Despite the frictions related to obtaining mortgages, buyer interest remains solid. But inventory continues to shrink and that is limiting buying opportunities. This, in turn, is pushing up home prices in many markets," he said. "The price improvement also results from fewer distressed homes in the sales mix."
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 3.68 percent in June from 3.80 percent in May; the rate was 4.51 percent in June 2011; recordkeeping began in 1971.
The national median existing-home price2 for all housing types was $189,400 in June, up 7.9 percent from a year ago. This marks four back-to-back monthly price increases from a year earlier, which last occurred in February to May of 2006. June's gain was the strongest since February 2006 when the median price rose 8.7 percent from a year prior.
Distressed homes3 - foreclosures and short sales sold at deep discounts - accounted for 25 percent of June sales (13 percent were foreclosures and 12 percent were short sales), unchanged from May but down from 30 percent in June 2011. Foreclosures sold for an average discount of 18 percent below market value in June, while short sales were discounted 15 percent. "The distressed portion of the market will further diminish because the number of seriously delinquent mortgages has been falling," said Yun.
NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said there's been a steady growth in buyer interest. "Buyer traffic has virtually doubled from last fall, while seller traffic has risen only modestly," he said. "The very favorable market conditions are helping to unleash a pent-up demand, which is why housing supplies have tightened and are supporting growth in home prices. Nonetheless, incorrectly priced homes will not attract buyers."
Total housing inventory at the end June fell another 3.2 percent to 2.39 million existing homes available for sale, which represents a 6.6-month supply4 at the current sales pace, up from a 6.4-month supply in May. Listed inventory is 24.4 percent below a year ago when there was a 9.1-month supply.
First-time buyers accounted for 32 percent of purchasers in June, compared with 34 percent in May and 31 percent in June 2011. "A healthy market share of first-time buyers would be about 40 percent, so these figures show that tight inventory in the lower price ranges, along with unnecessarily tight credit standards, are holding back entry level activity," Yun said.
All-cash sales edged up to 29 percent of transactions in June from 28 percent in May; they were 29 percent in June 2011. Investors, who account for the bulk of cash sales, purchased 19 percent of homes in June, up from 17 percent in May; they were 19 percent in June 2011.
Single-family home sales declined 5.1 percent to a seasonally adjusted annual rate of 3.90 million in June from 4.11 million in May, but are 4.8 percent above the 3.72 million-unit pace in June 2011. The median existing single-family home price was $190,100 in June, up 8.0 percent from a year ago.
Existing condominium and co-op sales fell 7.8 percent to a seasonally adjusted annual rate of 470,000 in June from 510,000 in May, but are 2.2 percent higher than the 460,000-unit level a year ago. The median existing condo price was $183,200 in June, which is 6.9 percent above June 2011.
Regionally, existing-home sales in the Northeast dropped 11.5 percent to an annual pace of 540,000 in June but are 1.9 percent above June 2011. The median price in the Northeast was $253,700, down 1.8 percent from a year ago.
Existing-home sales in the Midwest slipped 1.9 percent in June to a level of 1.02 million but are 14.6 percent higher than a year ago. The median price in the Midwest was $157,600, up 8.4 percent from June 2011.
In the South, existing-home sales declined 4.4 percent to an annual pace of 1.73 million in June but are 5.5 percent above June 2011. The median price in the South was $165,000, up 6.6 percent from a year ago.
Existing-home sales in the West fell 6.9 percent to an annual level of 1.08 million in June and are 3.6 percent below a year ago. The median price in the West was $233,300, up 13.3 percent from May 2011. Given tight supply in both the low and middle price ranges in this region, sales in the West are stronger in the higher price ranges.
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
Postive real estate news from Lake & Land Realty at Smith Mountain Lake Virginia.
Article from Trulia Archives.
Once upon a time (i.e., 2006) in a magical place called the Bay Area, the real estate market got so heated that it became commonplace to hear coffee shop patrons trading stories about their little old million-dollar houses. It became equally commonplace for this excess of home equity to create a false sense of financial security, causing many a homeowner to save less for the future than they might have otherwise. This practice was just as inadvisable as it was common, as evidenced by a retirement planner’s primely located billboard at the time, which read:
“My house is worth a million dollars” is NOT a retirement plan.
But many people treated it like it was, to their detriment.
Relying upon your home equity for retirement requires that you sell the place at some point, cashing out and moving to someplace cheaper (and potentially less desirable) to live, when you stop working. That said, there are a number of other, less risky ways you can use your home 5, 10, even 20 years in advance of your planned retirement date to:
save cash now, so you can add it to your investments
increase your income now, also adding it to your retirement nest egg, and/or
reduce your expenses later, which might allow you to retire sooner (at a time when retiring at all is a true feat).
Here are six sets of strategies for using your home to help you retire - without having to sell the place and retire in Timbuktu:
1. Put your spare space to work. Depending on where you live and whether you have room, you may be able to rent your home out, a little bit at a time. On sites like VRBO and Airbnb you can rent out as little as one room, your mother-in-law unit or your whole house for one night, one week or one month (or any combination of these). Also, savvy homeowners are increasingly renting out spare rooms or floors for the long-term. I know a number of people who are now renting out their own homes while they travel on their own vacations, and still others who rent out their extra rooms while they’re at home, enjoying the side benefit of meeting new people.
If you do put your extra rooms to work, you can use the extra income to pay down your debt or to pile onto your retirement fund - just be careful of your local rent control laws, especially if you’re doing anything longer than a vacation rental.
2. Hack your utilities. If you do the whole weather-stripping-and-dual-pane-windowing drill, you definitely stand to save some cash on your monthly utility bills. But in some areas, homeowners might also be able to save, big-time, with little or no cash out of pocket by opting out of their regular utility service and into something called solar power service. These companies sell solar power as a service, on a long-term contract, so home owners don’t have to pay for panels, then charge a lower power rate than the traditional utilities.
What you save over these years you can redirect to your retirement. And to boot, some of these companies also allow you to fix your utility rate for a 20-year period so that in your retirement years, you will not be exposed to the unpredictability of energy rate increases.
3. Pay your mortgage off early. There are two levers you can pull to supercharge your retirement plan: (1) you can boost the income you’ll have to save and live on or (2) you can slash your future living expenses. The largest of these living expenses is, of course, your mortgage. For my grandmother’s generation, the norm was to pay off your 30-year mortgage right about the same time you were winding down a 30-year career. But today, it’s much more common for people to retire with 5, 10, 15 years or more still left on their mortgages.
One way to get to retirement sooner? Pay your mortgage off early. Enter three different time frames in which you’d like to pay your home loan off (i.e., in 7, 9 and 11 years from now) and enter that time period and the current balance you still owe on your mortgage (loan amount) into our mortgage terms calculator to figure out how much you’d have to pay every month to meet any of these targets.
If you can’t swing making a higher payment for one of your ideal payoff time frames, try this: simply round your monthly payment up to the nearest hundred or thousand dollars every month, if you can afford it. You’d be surprised at how even small, extra payments can snowball into an early mortgage payoff.
Here’s another option: pay 1/2 of your monthly every two weeks - because there are 52 weeks in the year, paying on that schedule results in making 26 half, and 13 full payments each year. The extra payment can pay off a 30 year loan as much as 4 or 5 years early! (Note: you can get the same result by simply paying an extra 1/12th of your mortgage payment every month.) However you do it, make sure you tell your mortgage servicer to dedicate any overage you pay toward your principal balance.
4. Tune up your mortgage. If you’ve been in your home a few years, it can be easy to tune out of the whole mortgage scene - especially after five years of mostly bad news. But the news now might be better than you think, as home values are starting to steady and even edge up, and rates are still uber-low. If you have a 6 percent home loan you got 6 years ago, you stand to save thousands and thousands of dollars by refinancing into a 3.6 percent loan (the going rate this week). And that’s thousands and thousands you can put into your retirement fund. (Of course, the precise amount that you personally will save from refinancing depends on your current interest rate, your loan amount and the costs you incur refinancing.)
So, reconnect with your mortgage broker and pay attention to interest rates - especially if you’re paying more than 5 percent. And just generally click out of mortgage autopilot, watching your statements and asking questions about things you don’t understand. For example, you might still be paying a Private Mortgage Insurance premium that you can get removed upon request, assuming you’ve been in the loan long enough and your home has enough value beyond the loan amount (the precise standards vary from loan to loan, but check in with your mortgage broker and your lender to see if you can ditch your PMI payments anytime soon and put that money toward your retirement savings).
5. Start a side business from home. Put your home to work! Whether you use your space to dog-sit, baby-sit, bake or make preserves to sell at the farmer’s market, using your home to start a side business or to work a side job can pull the “extra income” lever of the retirement cushion-fluffing equation. It might also enable you to claim a home office deduction from your income taxes, depending on whether you’re able to dedicate the space completely to your business endeavor.
Read The $100 Startup to make sure you don’t spend more in startup expenses than you make. Also, consult with a tax expert to be sure that you dot your i’s and cross your t’s; depending on how you structure your business, you may end up increasing your tax burden, an unpleasant result a real pro can help you avoid.
6. Trim your taxes. Follow these steps:
Type your address into the search box at Trulia.com.
Compare the Trulia Estimate against the tax assessment (you can find your assessed value on the same page under Property Taxes, or on your tax bill).
If your Trulia Estimate - or the prices you know nearby homes have recently sold for - is at or below the assessed value, you may want to apply to have your home’s value reassessed.
On your county tax assessor’s website, you’ll find the instructions and paperwork for submitting this request. (If you don’t, give them a ring!) They generally will ask you to tell them what you think your home is actually worth, and to provide some recent, comparable sales to back that dollar amount up (scroll all the way down on your home’s Trulia page, to the Sold Properties section for recently sold homes that might work).
The theme? If you can save on taxes, utilities or mortgage interest, we’re talking about the potential to save tens, even hundreds of thousands of dollars over the years between now and retirement - much more than cutting back on coffee or the occasional meal out. Same goes with using your home to bring in some extra income or paying off your mortgage early - the potential retirement-boosting results are unparalleled.
Lake & Land Realty wanted to share this artice published on Trulia.com as it is positive news for the Real Estate Market!
INTEREST IN SUPER-SIZED HOMES NEARLY DOUBLES IN PAST YEAR
Americans Optimistic About Housing Recovery: 58 Percent Believe Home Prices Will Return To Bubble-Era Highs Within 10 Years
SAN FRANCISCO, June 20, 2012 – Trulia today released the results of its American Dream survey, which has tracked American attitudes towards homeownership since 2008. Harris Interactive conducted this online survey on behalf of Trulia among 2,205 U.S. adults, age 18 and over, between May 22 - 24 and among 2,230 U.S. adults, age 18 and older, between June 4-6, 2012.
KEY FINDINGS:
Optimism Runs Ahead of Housing Market Reality: With prices rising quarter over quarter in 86 of the 100 largest U.S. metros in May, according to the Trulia Price Monitor, it’s not surprising that nearly two-thirds (61 percent) of Americans believe home prices in their local market will rise in the next year. However, American’s hope for a real estate market bounce-back may be too high. Even though prices in many markets reached unprecedented and unsustainable levels during the boom, 58 percent of Americans believe home prices in their local markets will return to their previous high in the next 10 years.
Return of Super-Sized Homes: After veering away from super-sized homes throughout the recession, Americans are yet again attracted to the idea of bigger homes.According to the survey,more than 1 in 4 (27 percent) Americans who believe home ownership is part of achieving their personal American Dream said that their ideal home size is over 2,600 square feet – up from 17 percent in 2011.In fact, interest in homes of more than 3,200 square feet nearly doubled in the last year from 6 percent in 2011 to 11 percent in 2012.
Starter Home Reality Check: Homeownership remains central to the American Dream. In fact, 72 percent said owning a home is part of achieving their personal American Dream. Among renters, 78 percent—many of whom may be first-time homebuyers—aspire to buy a home at some point in the future. However, most have unrealistic expectations about their prospective starter home. When surveying renters on what amenities would make them fall in love with a home if they were in the market for a home today, the top amenities were a master bathroom (62 percent), walk-in closet (56 percent) and gourmet kitchen (50 percent)[2]. However, there is a clear disconnect between what renters want and the reality of what actual homeowners said they had in their first home. Only 26 percent of homeowners said that they had an en-suite master bathroom in their first home, while just 35 percent had a walk-in closet and 9 percent had a gourmet kitchen.
Real Estate Expectations vs. Reality: Hard Pill to Swallow
Lake & Land Realty- Five Secret Sources of Downpayment Money
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Down payment: the mere utterance of the term strikes dread in the hearts of many a homebuyer-to-be. Coming up with a down payment often seems like an obstacle that must be overcome, as it is the biggest test of our ability to save money most of us will ever face and it’s a test that stands between us and our ability to become a homeowner.
I think it’s time to flip the script on how we think about down payments. What if we looked at them less as an obstacle, and more as an opportunity? Saving and collecting a down payment takes time, discipline and financial planning. It forces us into creating and practicing sound money management skills and habits, and into making clear choices about what’s important to us - things that will stand us in good stead throughout our tenure as home owners. To boot, the more money we have to put down, the more choice we have in terms of our purchase price range and the more control we have over our monthly payment.
All that said, down payments can be take years to save for, and some buyers are concerned they might miss a good market opportunity by continuing to wait. If you count yourself in that number, here are a handful of less-well known sources for boosting your down payment stockpile:
1. Your City. Most of us remember the days of the zero-down loan, the federal home buyer tax credit era, and even have memories of when we could use tax credit funds toward our down payment and closing cost requirements. The keyword here is ‘memories’ - those days are long gone, as are the times when there were nationwide programs that allowed a home’s seller to ‘gift’ the buyer a down payment from the overall purchase price of the home.
Where have all the down payment assistance programs gone? Local, that’s where.
The best programs of this sort are now largely operated by local governments, primarily cities and counties. As such, the rules vary widely. Some are exclusively operated for buyers with low or moderate incomes. Others are dedicated to helping first-time home buyers, usually defined as someone who hasn’t owned a home in the past 3 years. Many of these programs have a limited pool of funds that may run out over the course of the fiscal or calendar year, and almost all of them require buyers to jump some major hoops in terms of:
bringing their own funds to the table
picking a home that meets certain minimum condition criteria and/or
completing a course of homeowner education classes
in order to qualify for the funds. Some state and local programs in areas which were particularly hard hit by the recession also offer big-time bonuses for buyers who agree to purchase a bank-owned home or a property in a designated economic recovery zone.
To find these programs, just run a series of Google searches to find your city, county and state websites. Most will have a link for Residents, Housing, Homebuyer Assistance or some similar category of resources. And here’s a hint - make sure you’re on a site that ends in .gov - scammers posing as governmental agencies abound. Also, talk with your trusted, local real estate agent or mortgage broker; they often know the ins and outs of the local programs that can help a home buyer out.
2. Your Parents, Family and Friends. Many more home buyers than you might think get by with a little help from their friends (and relatives). Most mortgage programs will allow for some portion of your down payment to come in the form of ‘gift money,’ which is exactly what it sounds like: money someone gives you to help you buy a home. Check in with your mortgage pro about how much of your down payment needs you can satisfy with gift money - guidelines varies widely based on how much of your own cash you have to put down and what loan programs you’re applying for.
While gift money sounds great, it’s far from a panacea to the problem of coming up with a down payment. Taking gift money from a relative may create relationship issues or come with emotional strings attached, something you should consider and evaluate before you even have conversations about it with your potential benefactors.
And gift money generally also comes with lender strings attached, as well. Namely, lenders almost always require that gift money be contributed along with a gift letter that states that the giver is a relative and that the money is a gift, not a loan. The lender may also require to see a bank account statement from the giver showing that the money was theirs to give - just to be sure they didn’t go out and get some sort of loan that they expect you to help them repay.
Most insiders think of gift money as large gifts exclusively allowable in the context of a familial relationship, but at least one program I know of allows any general well-wisher to contribute any amount to your cause, whether or not they are a relative. The FHA Bridal Registry program allows couples to open a down payment registry account with their lender, and to deposit checks into that account from anyone who wants to give any amount to help them become home owners. Talk to your FHA mortgage broker for more information on how to open such a registry account.
3. Your Employer. Universities and the municipal agencies that employ first responders like police and fire personnel frequently make available down payment and other home buying assistance programs to their staffers. So do some large employers or even smaller companies who are seeking to lure top-level recruits, in the form of relocation assistance programs. Check in with your employers’ Human Resource division to explore whether any such assistance is available - and if you happen to find yourself a hot prospect on the job market, consider trying to negotiate relocation or down payment assistance into your offer package.
4. Your Income. This is not about cutting out a cup of coffee here or there. Euro-style austerity measures are just too hard to keep up for the months or years it can take to save up a down payment. Rather, the idea is to get gut-level real with yourself about what’s really important to you. And if the answer is buying a home, then it’s time to go through your spending with a fine tooth comb and look for the leakage you can stop up - cash you can redirect to your down payment savings.
If you spend $20 a workday on oatmeal and coffee at breakfast and your takeout lunch, that’s $400 per month - almost $5000 a year, you can save by simply bringing these things from home (not to mention the health and other benefits you’ll gain). And those numbers are not inflated, if you work in a big city. Nor is the $100/month cable bill, the $15 yoga class or the $2,000 vacation.
Fact is, you can have much of the enjoyment of these things for much, much less than you’re used to spending - at least while you’re in down payment-saving mode. Stream TV shows and movies online at Netflix, Hulu or Amazon - you can also find great workout videos on some of these channels for 10 percent of what you’d pay to go to a class! Bring the staycation back, or cut hotel costs by renting a private room or small apartment on a site like VRBO or Airbnb (you might be surprised at how nice the experience is if you stick with the vacation rentals that have rave reviews - I certainly was.)
Redirecting the dollars you would normally spend - whether intentionally or on autopilot - for some of these big-ticket items back into your down payment savings account is like pressing fast forward on your home buying timeline. The key is to click out of money-spending autopilot and to transfer the saved money, asap, into a separate down payment savings account - ideally one that is online, so you have to think hard and wait a few days before pulling money out.
5. Your Assets. Some retirement accounts allow you to borrow against or pull out funds, penalty-free, to apply them toward your down payment on a home. Is it advisable for everyone, in every situation to deplete their 401K or IRA to plug that cash into a house? Absolutely not. But there are situations in which it may make sense to get your down payment up to 20%, say, by borrowing a few thousand dollars from yourself.
If getting your down payment to the 20 percent mark by borrowing from your 401K gets your mortgage interest rate down and allows you to repay that cash to your own retirement account (vs. to your mortgage lender) with interest, you and your financial advisor might agree that this move is the right move for you. Or not - this is a highly personal decision that must be made strategically, but some home buyers should at least explore whether their retirement accounts are a sensible source of some portion of their down payment funds.
And these aren’t the only assets that can help fund your down payment. I know a young family who has given themselves a complete financial makeover over the last few years by getting rid of unnecessary belongings and selling them at flea markets, yard sales and online. Don’t underestimate what reselling your stuff can yield; my own Mom has had a few four-figure yard sales over the years!
Do you have ‘stuff’ you don’t need or use that someone else would love? Consider liquidating it online or taking it to a consignment store, and using the cash to fluff your down payment savings. Side benefit: you’ll have less to move when you’re ready to move into your new home!
Lake & Land Realty: Seven Springtime Home Spruces to Boost Buyer Interest
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1. Banish chips, scuffs and the like with a fresh coat of paint. I believe that eliminating nicks, scuffs and scratches on any painted or finished surface is one of the cheapest, easiest and most impactful spruces a seller-to-be can do. That’s because these little tiny blemishes create a shabby appearance on a home that might otherwise be in great shape, but can be entirely banished with a good washing and some fresh paint.
This goes for interior and exterior walls, floors, and especially any sort of trims that are painted white, as is common with crown and floor moldings - scuff marks and blemishes seem to pop out from these items. Also, the edges of cupboards, doors and drawers are places where chips and nicks are so common that homeowners overlook them, but can be super visible to buyers who visit your home for the first time.
2. Brighten, polish and replace all trims. One day, I’ll do a scientific study, and I predict the results will reveal that if you put two identical homes side-by-side and give one a set of tricked-out trims - exterior shutters, front door, eaves - even your house numbers, door knockers, kickplates and other exterior hardware - people will rate the house with the beautiful trims way higher on the ‘pride of ownership’ scale than you’d expect.
Go stand on your own curb to get the buyer’s-eye view of your home, and then drive around your own neighborhood or the nicest part of town and flip through some home improvement mags or websites for ideas. If you can add attractive trims, freshen up the ones you have or paint them to create an unexpected but attractive color combination with the body of your house, you can skyrocket your home’s standing on my (newly invented) ‘pride of ownership’ scale.
3. Furry, drippy, noisy or broken HVAC systems. Maintaining your heating and air conditioning systems is not that expensive, but buyers think it is. In fact, your furnace and AC are precisely the sort of major household machinery that intimidate first-time home buyers. So, if they show up to the open house or a private showing of your home in June and the AC is making a funny knocking sound or just flat out doesn’t work well enough to keep the house cool, buyers might perceive that as a more serious red flag than it truly is.
Does your AC has that furry ‘science experiment’ look to it? Not only are you paying for the energy it’s probably wasting to push the air pass all that dust and dirt, the gross-out factor will have even the hardiest buyer wondering what else might be wrong with your home.
On the flip side, letting prospective buyers know that your home’s HVAC systems have been recently maintained or upgraded is a nice touch that makes itself obvious during showings and allows buyers to breathe a sigh of relief when it comes to concerns about short-term repair bills and the comfort level of family members who may have allergies and asthma.
Side note: if your AC does make a funny sound you might be so accustomed to you can’t hear it anymore - check in with your agent unless you know as a matter of fact that your AC is in tip-top shape. One more side note: if you live someplace where it gets cold around the holidays and you don’t plan to list your home until wintertime, right now may be the ideal time to have your heating system serviced. Off-season repairs and maintenance are often discounted.
4. Mend and tend to your fences, gates and screens. These items may not jump out at us in our own home - in fact, these are things I often see sellers skimp on or run out of time and money to tend to. And it’s easy to rationalize your way out of dealing with them, as they seem like relatively inexpensive fixes for buyers to make themselves. But screens with holes in them and gates that don’t budge or hang off their hinges are precisely the sorts of things I’ve seen make buyers walk back through a home looking for other flaws; and anything to do with fences makes them envision neighbor disputes over bills. You have the power to avoid sparking these concerns in the minds of house hunters by mending these items this Spring.
5. Doors, cupboards and drawers. One creaky door or squeaky cupboard does not kill a deal. But keep in mind that in some homes, other than the lights, these are the only functioning systems of your home that house hunting visitors will almost certainly use during the course of a viewing. Making sure your entry, interior closet and cupboard doors are in good cosmetic shape and that they work well and don’t stick is an easy, inexpensive way to position your home as a (literally) well-oiled machine.
One point of clarification – it’s less the case that buyers will notice, ooh and ahh over your smoothly sliding drawers than that they will notice and grow concerned if they don’t.
6. Have everything cleaned and washed. Even the most immaculate of housekeepers can realize a massive refresh to the look, feel, smell and the overall air quality of their homes by having professional cleaners come take a tour through the place. Springtime is a great time to ask your agent for referrals to the best local vendors to power wash your house, windows and driveway, as well as to have your carpets, rugs and window coverings cleaned.For those who are on a tight budget, many vendors offer Spring cleaning promotions for these services right about now (and if your budget is even tighter, there are products you can buy and machines you can rent to do these things yourself – just make sure you account for the value of your time).
7. Shred it up. Some might say this is more like Spring cleaning than home maintenance, but I’ve noticed that the clutter of boxes and boxes of paperwork, old file cabinets and the like have a tendency to contribute to the sense that a listed property might be unkempt, the aura of stagnation. If you have no cash to do anything else on this list, one thing you can do for free is to go through all your files and boxes, get rid of old papers and shred anything with sensitive information.
Just think – you’ll have to do it anyway when you move, so this is like giving yourself a head start and your attic, basement office or other rooms a fresh start. You can count it as a staging tactic as well, as it gives the rooms at issue some added visual white space, making them seem larger!
Lake & Land Realty-5 Steps to Take When Appraisal Comes in Low
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When recently surveyed, over a third of real estate agents reported having had one or more home sale contracts fall out of escrow per month. Autopsies of these dead deals often surface a truly lethal culprit: appraisals that come in below the agreed-upon purchase price.
You see, mortgage lenders will only fund transactions up to a certain percentage of the appraised value of the home. If the home appraises low, either the buyer must come up with an increased down payment amount, the parties must agree to a price reduction, some combination of both of these must happen, or the deal is off.
While low appraisals can be particularly potent deal killers, their danger to your deal can be neutralized in some cases. If you find yourself facing an appraisal lower than the sale price in the contract, add these five steps to your immediate action plan.
1. Appeal errors or bad comps to the appraiser. Read the entire appraisal report, cover to cover. See if you spot any errors – it’s not at all unheard of for an appraisal report to miss a bedroom or underreport the home’s square footage. The trouble is that what starts out as a clerical error can often result in the application of the wrong “comparables” when it comes time for the appraiser to pick the properties to use as benchmarks of your home’s fair market value.
Whether or not you find actual errors in the details about the home you’re buying or selling, check in with your agent about whether the comparable properties used by the appraiser were reasonable, especially if they are from a different neighborhood, school district, town or construction era than the home you’re trying to buy or you are aware that much more similar or nearby homes have been sold in recent times than the comparable properties you see in the appraisal.
In my town, for example, within a half-mile radius you can find vast variations in property values based on neighborhood and schools and city limits that change almost imperceptibly. Changes in the mortgage industry over the last few years have created situations in which appraisers are sometimes assigned who have little or no familiarity with these hyperlocal types of nuances which you, as a party to the transaction, might be more readily able to detect and appreciate.
If you find errors or feel that there are much more comparable recent sales that justify a higher price for the property, work with your agent to send the correct information and the applicable comps you would propose to your mortgage professional, who can relay that information to the appraiser or Appraisal Management Company and request that the appraiser revise their report and estimate of value. The appraiser has no obligation to make the change, but the more glaring the error, the more likely it is that they will.
2. Ask for a second opinion. Particularly in cases of error or bad comps, if the appraiser ignores your request to revise the report, you might need to escalate your request to the lender itself. Here’s where it’s important to be working with an expert agent and mortgage pro with a great reputation; if they believe strongly in your case, they may be able to plead it to the underwriter and request that a second appraisal be done. The idea here is that if the second appraisal backs up your arguments, listing the correct property details or more accurate comparables, the lender is much more likely to exercise its discretion to deem the first one a dud and go with the second opinion.
3. Renegotiate. Low appraisals disappoint everyone around the negotiating table. If the sellers have the leeway (read: equity) or their bank agrees (in short sales), they might agree to bring the price down to the appraised value or near enough that the buyer feels comfortable putting some extra cash into the deal to close the purchase price-to-appraised price gap. Some buyers refuse to ever do this on general principal, as they feel like it’s overpaying for the property. Others realize that appraisals may come in low for reasons less indicative of the property’s value, like a dearth of comparable sales in the area, and figure that to get the home they want, they’re willing to kick in a little extra dough.
Of course, ‘little’ is relative, and neither position is right or wrong for everyone.
And the decision for sellers is just as personal. When the differential between the purchase price and the appraised value is small, it can seem like a no-brainer to bring the price down if mortgage considerations allow, but it can also seem sensible to request the buyer to make up such a small difference – especially in markets where properties are getting multiple offers. On the other end of the spectrum, when the differential is big, it is less likely that the buyer will want to come up with the cash to close the gap, and also less likely another buyer will come along and offer the appraised price.
You would think these things would make a seller more willing to slash the price where the gap is big, but it also may make their moving plans less feasible, and tempt them to stay put and wait on the market to be more active and bear better comps.
Work with your agent to figure out what re-bargaining position really works for you.
If you do find yourself renegotiating price due to a low appraisal, remember that this is real estate, so everything is back on the table. For example, when the appraisal gap is only $1,000, a buyer might be willing to close the gap if the seller agrees to leave the lawn mower and do some small repairs.
4. Pay the difference or split the difference. On the flip side of renegotiating is reconsidering your personal position. If you’ve been house hunting for two years, forgoing low rates and the tax and lifestyle advantages of owning your home, and you’ve finally found ‘the one’ – in great condition, not a short sale, perfect location – you might think long and hard about whether you are willing to pay the difference between a low appraisal and the purchase price. This is especially so when the gap is small and you have the cash, or when you know the seller is barely breaking even on the deal or has offered to split the difference with you, or the short sale bank refuses to go any lower.
And sellers, this goes for you, too: if you’re committed to trying to close the deal, it behooves you to consider whether you can reduce the price on the home. Consider that in some states and loan situations, a low appraisal report in a deal that dies may become a disclosure the seller must provide to future buyers (ask your agent whether this will apply to you). The fact is, if you don’t agree to a price reduction of some sort, the buyer could very well walk, limiting your options to selling at a lower price, doing a short sale or staying put anyway.
5. Change lenders. Mortgage banks have more control when it comes to choosing appraisers than mortgage brokers do. (Fortunately, many experienced local mortgage brokers work for companies that also have banking divisions, and may be able to process your loan through that division in an effort to get your transaction a fresh start and work around a low appraisal. Ask your mortgage broker if their office has a banking division, if you’re not sure.)
Mortgage brokers are no longer able to hand-pick appraisers for a given transaction like they once could, but unlike broker-only firms (who are forced to work through a middleman company that may pay a cut rate, attracting less experienced appraisers), mortgage banks and hybrid broker-bankers are allowed to pick the set of people included on their own short list of appraisers. I’ve found that lenders use this short list for good much more often than to try to exert any sort of inappropriate influence.
My experience has been that, when compared with the appraisers national lenders and the middleman companies put to work on brokered transactions, small mortgage banks and local, hybrid broker-bankers tend to fill their lists with appraisers who have more local experience and can appreciate the uber-important local nuances like those described in #1, above.
Lake & Land Realty-5 Links Between Your Career & Your Real Estate Decisons
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Freud was famously (and incorrectly) quoted as having said “sometimes a cigar is just a cigar.” But with real estate, the exact opposite is true.Buying, selling, even staying in or moving from your home is rarely just about picking a place to hang your hat. Rather, real estate decisions are whole-life decisions, because they impact and are impacted by nearly every other area of your life.
Most people are highly aware of the fact that their real estate decisions are related to their family matters and their money matters, but many don’t give nearly as much thought to the interconnectedness of whether, how and where you buy your home with your career: past, present and future.
Here are five ways your career and real estate decisions are linked, and some new ways to think about these topics together, to make decisions that better serve both these areas of your life.
Link #1: Location, location, location.At the top of the market, many areas saw an outflow of professionals from urban areas to the rows of McMansions that lined the gated cul-de-sacs and subdivisions of the suburbs. But as the prices of closer-in homes have declined, home values have melted down in many of these suburban areas and gas prices skyrocketed, many buyers have begun to prioritize urban areas to be closer to their jobs, some even ditching their cars and taking public transportation or walking to work.
Buying a home near work has obvious efficiencies and conveniences, including giving you back the hours you might otherwise have devoted to your commute.However, if your job is located far away from other companies, buying a home to be very nearby can cause issues – especially if your employer ever hits hard times or closes that location.
Link #2:Job choices and income can limit or enlarge your home options.As you’ve probably heard by now, mortgage guidelines have gotten very tight lately, with lenders forcing borrowers to stay well within their means, shrinking the amount of documented current monthly income that can be consumed by the new mortgage, property tax and home/mortgage insurance payments. Lenders also view your job history as relevant; large gaps of unemployed time and even major career moves from one industry to another can trigger a lender to require that you be in a stable work situation for at least two years before they agree to finance your home purchase.
While it might seem obvious that your income would have a direct effect of limiting how much you can afford to spend on a home, what is somewhat less obvious is that the way you make it can also have an impact.Borrowers who work on commission, earn cash tips and even are self-employed or small business owners may find themselves subjected to stricter guidelines than those who earn a salary, because of the greater burden of documentation lenders may impose. For example, if you’re self-employed, your “income” will likely be determined by your Adjusted Gross Income on your last two years’ federal tax returns, which many entrepreneurs work hard to bring down by making aggressive deductions.
Link #3:Home and mortgage obligations can limit your career decisions.While most home buyers are very aware of the extent to which their past job decisions and income impact their real estate moves, there are many ways our real estate commitments can impact our future career decisions.Smart agents advise their clients not to make any major job moves or go from, say, a salaried position to starting that business you’ve always wanted to in the weeks and months just prior to buying your home. But even after you’ve committed to make a mortgage payment in a market like today’s, where selling can take many months or longer, these obligations can actually limit your ability to work fewer hours, move to a lower-paying job in a field you want to break into, or quit your day job and become an entrepreneur without much more intensive planning and saving than you would have had to do otherwise.
Buying a home on today’s market is a long term commitment; most insiders recommend you not buy unless you are okay staying put at least 5 to 7 years (longer if you’re buying in a locale that has been hard hit by the foreclosure crisis; shorter if your market was relatively immune to the recession).At the same time, the length of time Americans work for one employer is getting shorter and shorter.Gone are the days when your 30-year mortgage matched right up with the 30 years you could expect to stay on a single job.Over the past few years, I’ve heard more than a few reports of unemployed homeowners who felt stuck in their homes, unable to accept job offers across the country because they were deeply underwater or other market forces made it impossible for them to sell their homes.
The upshot? It’s important to feel comfortable making a long-term geographic commitment to an area before you buy; if you expect you may need to move in the near-term for work, it might be best to rent unless you are able to negotiate for your compensation package to include relocation assistance from your employer.
Link #4:Health of your local job market impacts your home’s value.Many news stories have reported how the Silicon Valley real estate market has thrived of late, despite the home value doldrums still being experienced across the rest of the nation. In San Francisco and the South Bay Area, the tech boom means the local job market is booming and employees are being made millionaires by cashing in their stock options when tech companies go public. One of the first purchases many of these new millionaires make is a home.
On the other end of the spectrum, we’ve seen entire regional real estate markets fall into incurable recessions when the only major employer or two in town moves away or shuts down.Then, not only are you stuck with a home and no job prospects nearby, it becomes very difficult for you to find anyone else to buy it.When an area has a high unemployment rate or no new jobs are being created, not only does it increase the rate of foreclosures and make it difficult to find buyers, it also makes locals who do have jobs very nervous about their job security and hesitant to make the long-term financial and geographic commitment to buying a home.
My advice is to prioritize homes located near bustling job centers and areas with multiple industries that are thriving (and projected to continue doing so), areas in which the job market is not dependent on a single employer or even a single industry.
Link #5:Your home’s infrastructure can impact your ability to work there. Things like local internet speeds and networks available, lighting, room configuration - even the age of your home’s electrical system can have a major impact on how comfortably or effectively you are able to work at home – or whether you can work at home at all. And if you are looking to create an area in your home exclusively devoted to working or running a business, that may impact your ability to take extra tax deductions for a home office (a topic you should discuss with your tax professional).
This also highlights the holistic view you should take on how your choice of home impacts the entirety of your life. If you are able to work at home, your choice of home location vis-à-vis work location might be different than if you are not, which might impact what sort of work you do and which employers you prioritize, if you’re looking for a job.
It's like Freud didn't say, but could have - in real estate, nothing is just a cigar.
Lake & Land Realty-6 Ways to Turn Off Your Home Buyer(or Seller)
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In the wild world of dating, when you encounter a “turn-off,” you can just pack it in and not to go on another date with that guy or gal again. But turnoffs can be much more detrimental when they come up in the realm of your real estate goals. Indeed, turn a buyer off, dear sellers, and you risk not selling your home - period - or getting a lower price than you might have otherwise.
And, contrary to what you might assume, the same goes for buyers. Even in today’s ‘buyer’s markets,’ multiple offers do happen. And even in cases when you’re the only buyer on the scene, having a cooperative seller goes a long way toward everything from getting access to the place for inspections to getting a price reduction when the appraisal comes in low. Thus, the potential still exists for buyers to turn sellers off, and risk having their dream home slip right through their fingers.
As you proceed on your quest for drama-free real estate, factor in these frequently occurring gaffes that turn off buyers and sellers, and my tips for avoiding them.
Top 3 Ways to Turn a Buyer Off: If you’re a seller courting buyers, here are 3 faux-pas to avoid: 1. Hanging out when buyers are viewing your home: Buyers stalk properties online and off, checking obsessively for price reductions and the like. But buyer-side home stalking is unobtrusive to sellers. On the other hand, buyers can feel personally stalked and stifled in their ability to fully explore or verbally process their impressions of a home when you, seller, hang out inside your home while it’s being shown.
As soon as a buyer sees you in the house, it instantly becomes much more difficult for them to” (a) envision themselves living there (it’s your house, after all), (b) be comfortable opening up drawers, closet doors, etc., and (c) express their thoughts about how this house might be exactly what they’re looking for, if they can knock out that wall and get rid of those cukoo murals you so lovingly painted in your children’s rooms.
Sellers: If you want to sell your home, it’s best to not be around when buyers are looking. Give them some breathing space and a chance to truly walk around and consider what they like and/or dislike about your home without lurking and looming (and, let’s be real - eavesdropping) nearby.
2. Showing a messy house: Life gets hectic, and it’s easy for things like laundry, dishes and other house cleaning tasks to fall by the wayside. It’s also difficult to keep the home in which you and your 4 kids, 3 gerbils and 2 Labrador Retrievers live perfectly spotless for months at a time, while you’re waiting for an offer. But when you decide that you’re going to sell your home, it’s imperative that you make a pact and a plan with yourself and your family that the place will be in tip-top shape when buyers come knocking.
Remember: your home is competing with dozens of others, as well as with buyer’s HGTV-infused visions of what their next home should look like, so first impressions really count.
Sellers: Stuffing the closet is not the answer. (Buyers will be opening that closet door, after all.) Pack up your personals like you were moving (best case: you are), and put all but the essentials in storage, if needed. Get the carpets cleaned, do the dishes, make the beds, mow the lawn, dust, sweep and mop. Ask your agent to give you a gut check on whether your idea of clean is clean enough (better yet - ask them for the number of a house cleaner who you can engage to get the job done to showable standards).
This might all seem obvious, but agents and buyers alike are constantly amazed at the condition of some of the homes they walk into. Take my word for it; I’ll spare you the ‘ewww’-inducing stories.
3. Overpricing your home: Buyers already have lots to do before making the largest purchase of their lives. They have to wrangle their finances into order, jump hoops to qualify for a loan, collect the cash for down payment and closing costs, and invest sometimes hundreds of hours into market research and house hunting. With all of this already on their plates, the prospect of trying to negotiate down a crazily high asking price is just too much work (and too outside their comfort zones) for most buyers to deal with. The average buyer won’t even bother looking at your home if the asking price is clearly high and off base compared with other similar, nearby homes for sale; they’d rather sit tight and wait .
Sellers: Price to sell from the beginning. Work with your agent to determine a price that is supported by the data on how much nearby homes have recently sold for. You’ll save yourself a lot of time and anguish and get a lot more legitimate bites from serious, qualified buyers.
Top 3 Ways to Turn a Seller Off: Buyers, if you want a home’s seller to play ball, best practice is to avoid these 3 pitfalls: 1. Unjustified, extreme lowball offers: It’s no secret that buyers have the upper hand in many markets right now. (To be clear, I said ‘many’ - not ‘every’ - your agent can help you understand what the dynamics are in your market.) But let’s be realistic, here. No seller can afford to give away their home at a price far below what it’s worth on today’s market. Lowballing a seller at a price far below the recent sales prices of similar homes in the neighborhood on the ‘let’s-take-a-stab’ plan, is highly likely to turn them off. And that, in turn, will cause the seller to view your offer - and you - as disrespectful and wasteful of their time.
Not only will they turn down your offer, but they may not even bother with a counteroffer, rendering your efforts at securing that particular home dead in the water.
Buyers: Review the recent sale prices of similar homes in the neighborhood (aka “comps”) with your agent before you make your offer. Also, ask them to help you factor in other market data, like the average list price-to-sale price ratio and the average number of days neighborhood homes stay on the market. It’s all right to come in lower than asking, if the market data supports such an offer; just be sure your offer is based on reality - and not your fantastical hallucination about scoring the bargain of the millennium.
2. Buyer-side mortgage fails: Plenty of employed buyers with decent credit and cash in the bank have been turned down for a mortgage these past few years. That means buyers can’t assume (a) that they’ll be approved for the amount of loan they need to buy the house they want, or (b) that they’ll be approved for a loan at all. Your inability to get approved for a home loan can create all sorts of problems not just for you, but also for your home’s seller. The average seller’s worst case scenario is that they accept your offer only to find out a few weeks, or months, later that you can’t get the loan you need to close the deal.
Buyers: It’s not overkill to start working with a mortgage professional as far as six months or a year in advance of starting your house hunt to get pre-approved for a loan. Make sure you get a clear understanding of the amount you qualify for, then work with your real estate agent from there to determine the price range you should house hunt in. And whatever you do - don’t buy a new car, open new credit cards or even change your line of work before your escrow closes, unless you consult closely with your mortgage professional before you make that move.
Tip for Sellers: Work with your agent to vet buyers before you sign a contract. Factor in their down payment and earnest money deposit, and feel free to counteroffer these items, not just the offer price. It’s not overkill to have your agent contact the buyer’s mortgage broker to see how reliable the buyer’s pre-approval really is.
3. Bashing the seller’s home: Home bashing happens when buyers start bad-mouthing (aka “trash talking”) the place and/or the neighborhood in hopes of getting a lower asking price. Examples: pointing out all the foreclosures in the area, saying the house down the street just sold for much lower than the asking price on this house, saying you’ll need to rip out the entire kitchen before you even consider moving in - saying any of these things to a seller who happens to be at home during the showing or the inspection is probably one of the fastest ways to turn them all the way off.
Buyers: Bad-mouthing a house or neighborhood won’t work to get you a lower price. Instead, it only serves to irritate the seller and motivate them to come up with all sorts of reasons why they shouldn’t sell their home to you! Remember: homes hold incredible emotional experiences for owners. Make an offer you’re comfortable with and keep the negative comments to yourself.
If there are legitimate, factual reasons underlying your decision to make an offer at a price the seller might see as a lowball, ask your agent to respectfully communicate those facts to the seller’s agent.
Reactions to the prospect of negotiating run the gamut, almost like a Rorschach of people’s comfort levels when it comes to thinking, talking and asserting themselves about money matters. Some people get so excited about haggling they adopt an entirely new persona when the time comes to talk their way into saving even a few bucks here or there. Others cringe at the mere thought of trying to suss out what’s going on in the minds of those on the other side of the bargaining table in order to strike a deal, even when hundreds of thousands of dollars (and their own best interests) are at stake.
And in light of the current market, it can seem like every real estate pundit you’ve ever seen on TV, the old guys from the Fed, Suze Orman, Jim Cramer - even the President! - have each pulled a chair up to the table and chimed into your transaction, too! Trying to factor market dynamics into your personal negotiation equation only ups the complexity factor (and the fear factor to boot).
When it comes to buying or selling your home, there is a handful of negotiation need-to-knows that can go a long way toward protecting your best interests - and your cash! Here are five essential negotiation need-to-knows for savvy home buyers and sellers:
1. Work from a foundation of sound information. It’s essential that you amass an arsenal of information, and use that as the basis for your negotiation. You are in no position to negotiate, aggressively or otherwise, unless and until you are well acquainted with the real estate market immediately surrounding your home, including:
what have similar homes recently sold for;
how much above or below asking do they normally sell for;
how long do homes stay on the market, on average, compared with the home you’re buying or selling?
Not only will your agent help you understand these numbers and how they should relate to your own offer or response, your agent is also in a good position to reach out to the other agent and collect any available information about what is important to the other party: do they care more about moving quickly, getting top dollar, or certainty that the other side can close the deal? The other agent isn’t obligated to divulge any information but often will, in the interest of facilitating a deal that addresses their client’s priorities.
Finally, it’s uber-critical to know what your own priorities are. Ultimately, the bar for whether your negotiation for your home is successful is based on what the home and the terms of the contract are worth to you. Know your own bottom and top line for price, and what your own priorities are, before the negotiation begins.
2. Approach the negotiation as a problem-solving challenge. Today’s negotiations are really more like problem solving scenarios, when you take into account all the parties whose needs must be met for the transaction to move forward. Traditionally, negotiations were a two-way power struggle between the buyer and seller, based primarily on their wants and their respective bargaining leverage. But on today’s market, the bank - or banks on both sides -- often have their own guidelines and needs that impact the terms of the deal, whether it be the seller’s lender insisting on a certain price in a short sale, or the buyer’s lender and appraiser refusing to lend anything above a certain price.
Many a buyer has thought they were scoring a great deal by scoring a bargain basement price on a short sale, only to have the seller’s bank condition approval of the deal on a massive increase in the sale price. And the opposite is also true: a significant number of the deals that fall apart on today’s market do so because the home fails to appraise for the purchase price the buyer has agreed to pay. Ultimately, this is even the case when it comes to the buyer’s and seller’s needs: if the buyer can’t qualify for a high enough mortgage, or the seller can’t pay their mortgage balance off, at the price in the other party’s mind, there will be no deal, and the negotiation is inherently unsuccessful.
In this context, it’s more important than ever to approach your negotiation as an exercise in problem solving, with the aim of meeting the needs of as many parties involved as possible. If you get some of your wants met, too, you’re golden!
3. Manage your own mindset. You probably shouldn’t even try to buy a home that you don’t strongly like, or even love. It often makes sense to hone in on a specific offer price (within the range what is reasonable for a home) based on how much you want it, or how much you’d hate to lose it - especially in a multiple offer situation, where you may only have one chance to make an offer.
With that said, be aware that when it comes to negotiating, she who is the least emotionally attached to a particular outcome usually has the greater bargaining power. The more attached you are to a particular home or a particular price point or set of terms for your home, the more likely you are to panic, freak out, throw money at the situation or cave in on important points unnecessarily when you get even the faintest sense that your desires may be at risk.
When it comes to managing your own mindset and stamina through the course of a negotiation (uncertainty is tiring!), knowing what is and what isn’t within each party’s - control is key. Your agent can help you stay clear on this, which will help you avoid the emotional exhaustion that results from trying to negotiate things that are not really negotiable (e.g., the bank’s bottom line, cosmetic repairs on most foreclosures, etc.). On the flip side, knowing the full range of items that can be negotiated - which extends beyond price into areas like deposit amount, length of escrow, seller repairs, and whether the property is to be taken in as-is condition - empowers you to maximize how compelling your offer is to the other side, given the resources at your disposal.
4. Minimize time pressures. Over the years, I have seen many a buyer and seller make brow-raisingly questionable offers and counteroffers based solely on the fact that they have to move by a certain deadline. Because shelter is a basic human need, the prospect of having to move out, relocating to a new job or moving to a new town without having housing in place can cause even the most nimble among us to feel ungrounded.
Problem is, in the context of buying a home, moving deadlines can cost you thousands and thousands of dollars - and can even cause you to make needless compromises in terms of the actual property itself: compromises you might later (deeply) regret. If you are approaching a deadline for moving out or relocating, you’d do better to find a rental housing situation that will work for awhile or will work as a Plan B than to try to hurry your home’s purchase or sale to meet the deadline.
5. Act and react quickly - not impulsively. When you find ‘your’ place, make an offer. When you get an offer or counteroffer), respond to it. In real estate, time is always of the essence, and prolonged hesitation often results in lost opportunities. There’s nothing wrong with sleeping on a decision overnight, especially if the ‘right’ move is unclear. But you never know when another buyer or another property might show up on the scene and change the whole bargaining dynamic, costing you more money or wooing away your home’s buyer.
This is why it’s so important to be clear on the market data, your own budget and your own top and bottom lines from the start, so that you are positioned to act quickly, strategically and intelligently when the circumstances require it.
Buyers, sellers and agents: what negotiation insights have you gleaned from your own real estate experiences?
Reactions to the prospect of negotiating run the gamut, almost like a Rorschach of people’s comfort levels when it comes to thinking, talking and asserting themselves about money matters. Some people get so excited about haggling they adopt an entirely new persona when the time comes to talk their way into saving even a few bucks here or there. Others cringe at the mere thought of trying to suss out what’s going on in the minds of those on the other side of the bargaining table in order to strike a deal, even when hundreds of thousands of dollars (and their own best interests) are at stake.
And in light of the current market, it can seem like every real estate pundit you’ve ever seen on TV, the old guys from the Fed, Suze Orman, Jim Cramer - even the President! - have each pulled a chair up to the table and chimed into your transaction, too! Trying to factor market dynamics into your personal negotiation equation only ups the complexity factor (and the fear factor to boot).
When it comes to buying or selling your home, there is a handful of negotiation need-to-knows that can go a long way toward protecting your best interests - and your cash! Here are five essential negotiation need-to-knows for savvy home buyers and sellers:
1. Work from a foundation of sound information. It’s essential that you amass an arsenal of information, and use that as the basis for your negotiation. You are in no position to negotiate, aggressively or otherwise, unless and until you are well acquainted with the real estate market immediately surrounding your home, including:
what have similar homes recently sold for;
how much above or below asking do they normally sell for;
how long do homes stay on the market, on average, compared with the home you’re buying or selling?
Not only will your agent help you understand these numbers and how they should relate to your own offer or response, your agent is also in a good position to reach out to the other agent and collect any available information about what is important to the other party: do they care more about moving quickly, getting top dollar, or certainty that the other side can close the deal? The other agent isn’t obligated to divulge any information but often will, in the interest of facilitating a deal that addresses their client’s priorities.
Finally, it’s uber-critical to know what your own priorities are. Ultimately, the bar for whether your negotiation for your home is successful is based on what the home and the terms of the contract are worth to you. Know your own bottom and top line for price, and what your own priorities are, before the negotiation begins.
2. Approach the negotiation as a problem-solving challenge. Today’s negotiations are really more like problem solving scenarios, when you take into account all the parties whose needs must be met for the transaction to move forward. Traditionally, negotiations were a two-way power struggle between the buyer and seller, based primarily on their wants and their respective bargaining leverage. But on today’s market, the bank - or banks on both sides -- often have their own guidelines and needs that impact the terms of the deal, whether it be the seller’s lender insisting on a certain price in a short sale, or the buyer’s lender and appraiser refusing to lend anything above a certain price.
Many a buyer has thought they were scoring a great deal by scoring a bargain basement price on a short sale, only to have the seller’s bank condition approval of the deal on a massive increase in the sale price. And the opposite is also true: a significant number of the deals that fall apart on today’s market do so because the home fails to appraise for the purchase price the buyer has agreed to pay. Ultimately, this is even the case when it comes to the buyer’s and seller’s needs: if the buyer can’t qualify for a high enough mortgage, or the seller can’t pay their mortgage balance off, at the price in the other party’s mind, there will be no deal, and the negotiation is inherently unsuccessful.
In this context, it’s more important than ever to approach your negotiation as an exercise in problem solving, with the aim of meeting the needs of as many parties involved as possible. If you get some of your wants met, too, you’re golden!
3. Manage your own mindset. You probably shouldn’t even try to buy a home that you don’t strongly like, or even love. It often makes sense to hone in on a specific offer price (within the range what is reasonable for a home) based on how much you want it, or how much you’d hate to lose it - especially in a multiple offer situation, where you may only have one chance to make an offer.
With that said, be aware that when it comes to negotiating, she who is the least emotionally attached to a particular outcome usually has the greater bargaining power. The more attached you are to a particular home or a particular price point or set of terms for your home, the more likely you are to panic, freak out, throw money at the situation or cave in on important points unnecessarily when you get even the faintest sense that your desires may be at risk.
When it comes to managing your own mindset and stamina through the course of a negotiation (uncertainty is tiring!), knowing what is and what isn’t within each party’s - control is key. Your agent can help you stay clear on this, which will help you avoid the emotional exhaustion that results from trying to negotiate things that are not really negotiable (e.g., the bank’s bottom line, cosmetic repairs on most foreclosures, etc.). On the flip side, knowing the full range of items that can be negotiated - which extends beyond price into areas like deposit amount, length of escrow, seller repairs, and whether the property is to be taken in as-is condition - empowers you to maximize how compelling your offer is to the other side, given the resources at your disposal.
4. Minimize time pressures. Over the years, I have seen many a buyer and seller make brow-raisingly questionable offers and counteroffers based solely on the fact that they have to move by a certain deadline. Because shelter is a basic human need, the prospect of having to move out, relocating to a new job or moving to a new town without having housing in place can cause even the most nimble among us to feel ungrounded.
Problem is, in the context of buying a home, moving deadlines can cost you thousands and thousands of dollars - and can even cause you to make needless compromises in terms of the actual property itself: compromises you might later (deeply) regret. If you are approaching a deadline for moving out or relocating, you’d do better to find a rental housing situation that will work for awhile or will work as a Plan B than to try to hurry your home’s purchase or sale to meet the deadline.
5. Act and react quickly - not impulsively. When you find ‘your’ place, make an offer. When you get an offer or counteroffer), respond to it. In real estate, time is always of the essence, and prolonged hesitation often results in lost opportunities. There’s nothing wrong with sleeping on a decision overnight, especially if the ‘right’ move is unclear. But you never know when another buyer or another property might show up on the scene and change the whole bargaining dynamic, costing you more money or wooing away your home’s buyer.
This is why it’s so important to be clear on the market data, your own budget and your own top and bottom lines from the start, so that you are positioned to act quickly, strategically and intelligently when the circumstances require it.
Buyers, sellers and agents: what negotiation insights have you gleaned from your own real estate experiences?
Lake & Land Realty-9 Documents That Help You Reap Real Estate Tax Breaks
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Technically speaking, April 15th is tax day. But for Americans who expect a refund - including many homeowners who want to cash in on real estate-related tax perks - filing sooner holds the promise of getting that check in hand, stat.
If you count yourself in that number, here's a handy guide for 9 pieces of paper you should be sure to round up as you prepare to file, in order to reap every penny of the tax rewards you've earned by virtue of owning a home.
Mortgage Interest Statement - IRS Form 1098. The meatiest real estate tax deduction on the books is the one that allows you to deduct 100 percent of the mortgage interest you paid in a year - including prepaid interest or points you might have paid at close of escrow, if you bought a home last year. By now, you should have received in the mail a Form 1098 from your mortgage lender that reports how much that interest totaled up to in 2011. If you itemize your taxes and claim a mortgage interest deduction, you must include this form with your tax form when you file.
(If you haven't received yours yet, most lenders that have online account management services also post the form digitally in your secure account on the web. Just login like you would to make your monthly payment, and look for a notice that says you can now download your 2011 Form 1098.)
Property Tax Statements. In addition to deducting your mortgage interest, if you own a home you are eligible to deduct the property taxes you pay to your local city, county and/or state. You are not allowed to deduct some of the other miscellaneous expenses that some localities bundle up with the taxes they collect, like waste management and local assessments for things like street lighting, libraries and sidewalk construction. To get this deduction right, the best practice is to have your property tax statements at hand and make sure you're only deducting what's allowed.
If you bought your home this year, it's highly possible that you might not even have received a property tax statement yet - if that's the case, look to #3, below.
Uniform Settlement Statement (HUD-1). If you bought or sold a home last year, right after closing you should have received a form called the HUD-1 Settlement Statement (hint: it's usually on legal-sized paper and contains an accounting of credits and debits for you and your home's buyer or seller). That form documents a number of line items which might help you out at tax time, including prepaid interest, the prorated property taxes you paid at closing, and closing costs like original fees and discount points. Some states offer tax credits for buying a foreclosure; check with your tax pro to find out if any such credits apply to you. If so, this statement might be your ticket to lower taxes.
And here's another handy hint - if you can't find your copy, you might have gotten it on a disk - and you can always email your real estate or escrow agent for a copy, as well.
Moving Expense Receipts. Moving expenses are tax deductible, if your move is closely related, both in time and in place, to the start of work at a new or changed job location and you meet the IRS' time and distance tests. Long story short, your new home must be at least 50 miles farther from your new workplace than your old home was from your prior place of work, and you must work essentially full-time. So, if you bought or sold a home and moved in 2011, you'll need to include receipts from expenses you incurred making the move (meals not included) in your tax prep paperwork.
Cancellation of Debt Statement - IRS Form 1099. Homeowners who lost a home to foreclosure, or divested of one by negotiating a short sale or deed in lieu of foreclosure with their lender might receive some version of Form 1099 from their lenders, charging them with income in the amount of the mortgage debt that has been cancelled. You see, if you borrow money from someone, then they cancel the debt, that money you originally borrowed becomes income in the eyes of the IRS - and income is, as you know, taxable.
Utility statements for home office. For the average everyday homeowner who works at their employer's place of business, utilities are not deductible (sorry!). But if there is a part of your home that is "regularly and exclusively" used for business, you might be able to claim that portion of your home as a home office, and deduct some portion of your home utilities and costs of painting and repairs, as a result.Talk with your tax provider about what expenses are allowable to be claimed under your home office deduction, and whether or not you should take it.
Income and Expense statements from rental properties. Some of you have elevated the art of home ownership to a business! If you are a landlord, your tax situation is more complicated than that of the average bear; you'll need to have complete income and expense statements when you put your tax returns together. It might actually behoove you to consult with a tax professional to make sure you are appropriately depreciating the property over time and not taking deductions that will expose you to the risk of audits, as well as to begin cultivating a long-term tax strategy for your real estate portfolio.
Contractor receipts from energy efficient home improvements. Under the Nonbusiness Energy Tax Credit, homeowners who have made improvements to their homes that fall within a list of energy efficient upgrades might be eligible to claim tax credits. If, during 2011, you installed energy efficient improvements such as insulation, new dual-paned windows and furnaces, you might be eligible for a tax credit of 10 percent of the cost of these upgrades, up to $500 - only $200 of which may be used to offset the cost of windows.
Mortgage Credit Certificate (MCC). If you own a home you bought in the last few years using a Mortgage Credit Certificate issued by a local housing authority, that Certificate may entitle you to a pretty hefty tax credit, based on a percentage of the mortgage interest you paid - on top of your mortgage interest deduction. MCCs apply as long as you live in the home and have a mortgage on it, but they only apply to defray taxes you actually owe - you can't use them to get a refund. In any event, your mortgage credit certificate, if you have one, is a must-have document as you start putting your tax prep plan in play.
No matter what your tax situation is, if you own a home, it absolutely cannot hurt to get some professional help and advice to make sure you maximize your deductions, while minimizing your exposure to audit. And you should always consult with a tax attorney or certified public accountant regarding your tax liabilities and implications when you buy, sell, short sell or lose a home to foreclosure.
Lake & Land Realty: Seven Uber Helpful Mobile Apps for House Hunters
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The once-funny statement that “there’s an app for that” is now true much more often than not. With close to 1 million mobile apps available for download, it can be an overwhelming task to sort out the truly useful from those that are simply entertaining - not to mention those that are just plain silly.
So, I’ve done some homework for you! Here’s a short list of mobile apps I think you’ll find super useful for saving time, making smart decisions and keeping you organized while you’re hunting for your next home.
1. Genius Scan What it does: Puts a document scanner in your pocket. Enables you to use your phone’s camera to take a picture of a document, then email it to anyone in PDF or JPEG format.
Why it’s useful: Many real estate agents now use digital document signature software which allow you to sign with a click and, more importantly, without faxing documents back and forth. But some don’t - and some mortgage lenders will simply not accept anything but a copy or scan of your ‘wet ink’ signature.
Throughout your transaction, you might find yourself needing to scan and email your contract documents with your original signature, a copy of your deposit check, new payroll check stubs as you receive them, your driver’s license, a gift letter from your Auntie Grace or any of a number of other documents you’ll need to get to your agent or mortgage pro across town - or across the country. Having the ability to scan documents and checks and email them right from your phone can save you a lot of time and hassle - not to mention gas and cash.
Works with:iOS Price: Free Android Alternative: Document Scanner (Free 7-day trial/$3.98 for full version.)
2. Dictionary of Real Estate Terms What it does: Translates the vast universe of real estate jargon and acronyms into plain English, putting a decoder at your fingertips for easy reference any time you need it during your house hunt or transaction. The Dictionary includes over 3,000 real estate terms, charts and graphs. You can save your searches and email terms to others. Your phone does not have to be connected to the Internet to use the Dictionary, which can be useful if you need to look up a term on an inspection or appraisal report while you’re in a home or office where you don’t have a great connection.
Why it’s useful: I can guarantee few things in life, but one thing I do feel comfortable assuring you is that home buying will expose you to terms you have never heard before. You need to know what the terms used in your inspection, disclosure, contract and loan documents mean, and sometimes looking them up is the best way to do that.
Works with: iOS and Android Price: $1.99 (iOS) and 99 cents (Android)
3. House Hunter What it does: Helps you organize your house-hunting notes and priorities so you can more easily remember and compare the homes you’ve seen. The app also helps you evaluate the homes you’ve seen by providing a scorecard that weighs features against what you’ve identified as requirements and priorities. It includes a mortgage calculator, photo storage, and a feature that allows you to share your notes with your agent, among other bells and whistles.
Why it’s useful: After you see about five houses, they can all blend together. This app helps you keep it all straight, while also keeping you mindful of what your original priorities were and how the homes you see measure up against them.
4. SpringPad What it does: Helps you keep track of any and every thing you want to remember in a digital notebook you can access from anywhere, on any device. You can:
scan barcodes of home furnishings, appliances and other items you want to buy after you move;
save ideas, property addresses, online clippings from design and news sites, photos from decor mags and to do lists from your mortgage broker;
categorize all these things - and more - by house hunt, mortgage and escrow, moving, and decorating; and
set reminders, share your notes with your agent or even get an email alert when the duvet you want goes on sale.
All without a single scrap of paper!
Why it’s useful: Empowers you to organize the hundreds of elements of your home buying adventure into a single spot and access it wherever you are - without carrying a bulky, messy binder or folder around.
5. ColorSnap What it does: Allows you to take a picture with your phone’s camera from anything in the world that inspires you, then discover the corresponding Sherwin-Williams paint color.
Why it’s useful: If you see a wall color you love in a home you, well, don’t like too much otherwise, you can capture the color and replicate that once you do find your dream home. Same goes for if you come across any other item in a color you love and would like to incorporate into your design scheme.
6. Karl’s Mortgage Calculator What it does: Calculates mortgage payments using the principal loan amount, interest and term (and can solve for any of these if you input the other three variables). This app also gives you a more precise idea of what your total monthly expenses will be on a given home by factoring in line items other calculators leave out, like mortgage insurance, homeowners association dues, property taxes and homeowners’ insurance. You can also see what kind of savings you might be able to achieve - and how early you can pay your mortgage off - by running scenarios that add in extra loan payments.
Why it’s useful: Having this mortgage calculator handy during your house-hunting adventures will enable you to quickly calculate how a given increase in your offer price will change your monthly payment.
7. Trulia Real Estate App What it does: SHAMELESS PLUG ALERT. Seriously, no mobile app list for home buyers would be complete without the Trulia app. It uses your phone’s GPS function to serve you up nearby listings and their details if you happen to find yourself in a neighborhood you love, or in front of a home with a for sale sign - but no flyers! The Trulia app also finds the banks, restaurants and gas stations near any given listing, and can even create instant heat maps showing neighborhood differences in prices.
Why it’s useful: You may find that you like a particular neighborhood, but not the individual home you came to see. Or you might visit a friend and fall in love with their street, but have no idea what homes in the area go for. Having an easy-to-use mobile app that helps you discover more nearby homes for sale, wherever you are, is actually quite indispensable. It eliminates the need to scrawl down numbers on scraps of paper or squint to see the faded numbers on the curb then wait until you’re in front of the computer to try to match an online listing to a real-world house.
Lake & Land Realty-5 things to do NOW if you want to buy a home in 2102
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At this point in December, it can start to feel like the New Year – along with all our hopes, dreams, wishes and expectations for it – are barreling down on us. Personally, I’m a rabid Resolution-setter, and I have a pretty strong track record of making New Year’s changes actually happen – and stick. But what I know after years of using the New Year as a great excuse to set and meet some goals is that it’s very, very helpful to get a head start, ramping-up to new habits, behaviors and target goals achievements starting in December.
If you’re one of the millions who has an eye on 2012 as the year in which you’ll buy a home (first or not), here are five things you can do now to put yourself on the right path: 1. Check your credit. Take my word for it: there is no bad surprise worse than a bad credit surprise. Okay, maybe there is one thing worse – a credit surprise you receive while you’re in the midst of trying to buy a home!
Recent studies have revealed that a record high number of real estate transactions are falling out of escrow, and that credit “issues” are a leading cause of these dead deals. Your best chance at catching and correcting score-lowering errors and other derogatory items before they destroy your personal American Dream is to start checking and correcting while you still have time on your side.
2. Do your research. The more rapidly the real estate market changes, the more it behooves smart buyers to study up before they jump in. And now’s the time – you can start doing online and in-person research into topics ranging from:
· Target states, cities and neighborhoods. Whether you’re relocating or simply trying to narrow down the local districts to focus on during your 2012 house hunt, December is a great time to start your online research into decision-driving factors like tax rates, school districts, neighborhood character and even prices in various areas. Resident ratings and reviews sites like Trulia and NabeWise can help you make the neighborhood-lifestyle match.
Once you narrow things down and start speaking to local agents, ask them to brief you on the local market dynamics, including how long homes typically stay on the market and whether they generally go for more or less than the asking price, so you can be smart about how you search. (And yes, Virginia, there are areas where homes sell for more than asking, even as we speak!)
· Real estate and mortgage pros. If you don’t already have your pros picked out, now is the time to get on the horn or drop an email or Facebook message to your circle of contacts, asking them for a referral to a broker or agent they love. Follow up by: checking whether these pros are active in answering questions on Trulia Voices, searching for their name and seeing what sort of feedback on them you can cull from the web, then giving them a ring and launching a conversation about whether you and they might be a good partnership. · Short sales and REOs. Distressed property sales are not for the unwary. If you want to target upside down or foreclosed homes, or are planning to house hunt in an area where many of the listings are described as short sales or foreclosures, get educated about what you can expect from a distressed property purchase transaction before you get your heart set on a short sale.
· What you get for the money. Online house hunting is a powerful tool – especially when it’s cold and wet! But there comes a point in your house hunt where you’ve got to just get out into the actual physical homes you’re seeing online in order to get a strong, accurate sense of what home features, aesthetics and location characteristics correlate with what price points.
· Mortgage musts. You can read a bunch of articles about mortgages and get yourself pretty far down the path toward qualifying for a home loan, but you can only get a personalized action plan for a smooth road ‘home’ by talking with a local mortgage broker and having them assess your basic financials. They might say you need to move funds around, pay a bill down or off or produce some sort of documentation from your employer. And the time to start all that is now.
3. Fluff up your cash cushion. So, you’ve saved up your 3.5 percent down payment. Perhaps you saved a little extra for closing costs. Or maybe you’re even one of those uber-aggressive 20-percent-down-ers. No matter how much you’ve saved, you’ll find that you could use more once you activate your home buying action plan. Mark my words – after closing, you’ll crave extra cash to do some repairs, upgrade a couple of things, buy appliances or even just to hold onto in order to minimize your anxiety about depleting your savings!
So, if homebuying is on your personal 2012 action plan, don’t go hog wild on holiday gifts. Instead, wait until next year and give yourself the gift of a home.
4. Shed some stuff. Sell it. Donate it. Give it to relatives who’ve always coveted it. Just get rid of it. If you do it before year’s end, you can kill three birds with one stone: (a) getting some cold hard cash to go toward your savings, (b) getting some tax receipts so you can deduct the value of your donations in January, (c) minimizing money spent on holiday gifts for loved ones and these two bonus birds – clearing the mental clutter that physical clutter creates and prepping for your move in advance. 5. Sit very, very still. Sometimes, the best way to further our goals is to stop tripping ourselves up. In that vein, commit right now to refrain from making any major financial moves until you buy your home. Don’t quit your job to start that personal chef business (yet), don’t pull a bunch of cash out of your savings account (without getting clearance form your mortgage pro first), and don’t start buying cars and boats on credit – even if you do love the idea of putting the red bow on the car you give your wife, like in the commercials.
I assure you, the bow you’ll be able to put on that house or condo will be much bigger, redder and more tax-advantaged!
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