Why Do I Have To Get An Appraisal??

An appraisal is a bank's valuation of how much a property is worth.  For FHA and VA loans, appraisals are required to protect the bank from underwriting a loan for more than a property's value.  It becomes a necessary step in purchasing a home when using an FHA or VA loan.  However, if the buyer is not, an appraisal can be performed to insure the buyer is making an informed decision and not overpaying. 

Appraisals are also used when refinancing.  If you need to consolidate bills, have a college tuition to pay, or just want to tap into the equity of your home, you'll need a new loan, which oftentimes requires a new appraisal of the property.

Homeowners that have used a conventional loan are required to pay Private Mortgage Insurance (PMI).  This is the supplemental insurance that many lenders ask home buyers to purchase when the amount being loaned is more than 80% of the value of the home. Very often, this additional payment is folded into the monthly mortgage payment and is quickly forgotten. This is unfortunate because PMI becomes unnecessary when the remaining balance of the loan - whether through market appreciation or principal paydown - dips below this 80% level. In fact, the United States Congress passed a law in 1998 (the Homeowners Protection Act of 1998) that requires lenders to remove the PMI payments when the loan-to-value ratio conditions have been met.
Many appraisers offer a specific service for home owners that believe they have met the 80% loan-to-value metric. For a nominal fee, the appraiser can provide you with a statement regarding the home value. Some will even take the next step and help you file a challenge with your mortgage company. The costs of these services are very often recovered in just a few months of not paying the PMI. 

Before deciding to sell your home, there are several decisions to be made. First and foremost: "How much should it sell for?"  But don't forget there may be other equally important questions to ask yourself such as "Would it be better to paint the entire house before we sell it?", "Should I put in that third bathroom?", "Should I complete my kitchen remodel?"  Many things which we do to our houses have an effect on their value.  Unfortunately, not all of them have an equal effect. While a kitchen remodel may improve the appeal of a home, it may not add nearly enough to the value to justify the expense.

Whether you choose to sell your home on your own or use the assistance of a real estate agent, a professional appraisal can help you make a better educated decision when determining your selling price.
Unlike a real estate agent, an appraiser has no vested interest in what amount the house sells for.  It's easy for them to step in and give you the information to help you make your decision.  Appraiser fees are based on efforts to complete the report and not a percentage of the sales price. So seeking a professional appraisal can often help homeowners make the best decisions on investing in their homes and setting a fair sales price.  But be careful on your timing.

However, when a homebuyer is using a VA loan or FHA loan, if the property does not appraise for the sales price that the seller and buyer have agreed to, the seller can choose to reduce the sales price or the buyer can walk away from the contract.  This is why in a "VA market", there is less of a housing bubble and the housing market can remain relatively stable. 
No situation is the same as the next, so one solution may not work for you, even if it worked for your neighbor.  The best thing to do is ask a professional.  Mortgage brokers and real estate agents are faced with questions about appraisals and lending all the time.  Why not ask??

If you have a friend or family member that would like to buy or sell a home, I'm never too busy for your referrals!  Call me for all of your real estate needs!



Three Great Resale Properties...under $120K!!!

These resale homes are ready for their new owners!!!  Call me today for more information or to take a look!  I'd love to help!

100 Paula Place

~1500 heated square foot

3/2

$73,900!!!!

1003 Massey Road

1466 heated square foot

3/2 + bonus!

$129,900!!!!



1144 Old Maplehurst Road

1092 heated square feet

3/1.5

Huge Wired Shed in back- perfect for the handyman!

$117,000!!!!



Oh!  By the way!  I'm never too busy for your referrals!  If you have a friend or family member that is interested in buying or selling a home, I would love to help them!!

Foreclosure Properties in Jacksonville, NC

Foreclosures are advertised as hyper property bargains.  This is why potential home buyers and especially preperty investors frequently consider them.  On the other hand, some people shy away from it, because it represents a major part of people's misfortunes and there is a lot of confusion surrounding foreclosure homes.  Nonetheless, if you should ever decide to look at buying  aforeclosed home, there are some important details you need to establish.


1.  Know if there are any liens and encumbrances on the property.  Liens and encumbrances are legal claims to a home by virtue of any outstanding obligations like unpaid contracts, outstanding taxes, and most commonly, mortgages.  An attorney will perform a title search prior to closing, but do your homework.  To have the ownership tranferred to you, you would need to settle all outstanding obligations on the property.


2.  Know the extent of maintenance, repairs or retoration work that needs to be done and put that budget in as well.  Foreclosure homes are typically sold "as is", with very little negotiating.  People who lose their homes to foreclosure have the propensity to vent their frustrations out on the house.  Not always, but usually.  Check the plumbing, electrical, roofing, insulation, walls and other detials.  Look for leaks, drippings and items that may need to be put in order before the homes become inhabitable.  Consider getting a home inspection.  It can cost around $200-$250, but can save you thousands in the end.  Typically you are going to put some elbow grease into a foreclosure home.  So know what the repairs and restoration is going to cost you and if it is worth it.


3.  Know the equity built up in the property.  The longer the previous owner owned the home, the higher the equity built into the property.  Statistically, in the Jacksonville market, a homeowner owns their home for 3-5 years.  That's not a lot of time to build equity in a home before foreclosure.  Because of this, typically foreclosures in this area are close to market value, but can be sold for up to $50,000 under market value. 


Investors who flip properties normally look at foreclosure as very good bargains.  If you are looking at foreclosures, it is best to get professional advice so that you know exactly what your options are, and what the actual economic costs are.  Your real estate professional should provide you with a market analysis that shows you what the market price for the home would be.  With that you would be able to decide how much equity you would be buying when investing in a foreclosure home.

Call me today with any questions!!!  I would love to help!  I'm never too busy for your referrals!!

The Top Ten Tips for Selling Your Home in 2011

If you're interested in selling your home in 2011, use these tips to aid you in a quicker sale!  

Selling Secret #10: Pricing it right
Find out what your home is worth, then shave 15 to 20 percent off the price. You’ll be stampeded by buyers with multiple bids — even in the worst markets — and they’ll bid up the price over what it’s worth. It takes real courage and most sellers just don’t want to risk it, but it’s the single best strategy to sell a home in today’s market.

Selling Secret #9: Half-empty closets
Storage is something every buyer is looking for and can never have enough of. Take half the stuff out of your closets then neatly organize what’s left in there. Buyers will snoop, so be sure to keep all your closets and cabinets clean and tidy.

Selling Secret #8: Light it up
Maximize the light in your home. After location, good light is the one thing that every buyer cites that they want in a home. Take down the drapes, clean the windows, change the lampshades, increase the wattage of your light bulbs and cut the bushes outside to let in sunshine. Do what you have to do make your house bright and cheery – it will make it more sellable.

Selling Secret #7: Play the agent field
A secret sale killer is hiring the wrong broker. Make sure you have a broker who is totally informed. They must constantly monitor the multiple listing service (MLS), know what properties are going on the market and know the comps in your neighborhood. Find a broker who embraces technology – a tech-savvy one has many tools to get your house sold.

Selling Secret #6: Conceal the critters
You might think a cuddly dog would warm the hearts of potential buyers, but you’d be wrong. Not everybody is a dog- or cat-lover. Buyers don’t want to walk in your home and see a bowl full of dog food, smell the kitty litter box or have tufts of pet hair stuck to their clothes. It will give buyers the impression that your house is not clean. If you’re planning an open house, send the critters to a pet hotel for the day.

Selling Secret #5: Don’t over-upgrade
Quick fixes before selling always pay off. Mammoth makeovers, not so much. You probably won’t get your money back if you do a huge improvement project before you put your house on the market. Instead, do updates that will pay off and get you top dollar. Get a new fresh coat of paint on the walls. Clean the curtains or go buy some inexpensive new ones. Replace door handles, cabinet hardware, make sure closet doors are on track, fix leaky faucets and clean the grout.

Selling Secret #4: Take the home out of your house
One of the most important things to do when selling your house is to de-personalize it. The more personal stuff in your house, the less potential buyers can imagine themselves living there. Get rid of a third of your stuff – put it in storage. This includes family photos, memorabilia collections and personal keepsakes. Consider hiring a home stager to maximize the full potential of your home. Staging simply means arranging your furniture to best showcase the floor plan and maximize the use of space.

Selling Secret #3: The kitchen comes first
You’re not actually selling your house, you’re selling your kitchen – that’s how important it is. The benefits of remodeling your kitchen are endless, and the best part of it is that you’ll probably get 85% of your money back. It may be a few thousand dollars to replace countertops where a buyer may knock $10,000 off the asking price if your kitchen looks dated. The fastest, most inexpensive kitchen updates include painting and new cabinet hardware. Use a neutral-color paint so you can present buyers with a blank canvas where they can start envisioning their own style. If you have a little money to spend, buy one fancy stainless steel appliance. Why one? Because when people see one high-end appliance they think all the rest are expensive too and it updates the kitchen.

Selling Secret #2: Always be ready to show
Your house needs to be "show-ready" at all times – you never know when your buyer is going to walk through the door. You have to be available whenever they want to come see the place and it has to be in tip-top shape. Don’t leave dishes in the sink, keep the dishwasher cleaned out, the bathrooms sparkling and make sure there are no dust bunnies in the corners. It’s a little inconvenient, but it will get your house sold.

Selling Secret #1: The first impression is the only impression
No matter how good the interior of your home looks, buyers have already judged your home before they walk through the door. You never have a second chance to make a first impression. It’s important to make people feel warm, welcome and safe as they approach the house. Spruce up your home’s exterior with inexpensive shrubs and brightly colored flowers. You can typically get a 100-percent return on the money you put into your home’s curb appeal. Entryways are also important. You use it as a utility space for your coat and keys. But, when you’re selling, make it welcoming by putting in a small bench, a vase of fresh-cut flowers or even some cookies.

Call me for all your real estate needs!  If you have a friend or family member who is interested in buying or selling a home, let me know!  I'm never too busy for your referrals!

It's About That Time.... SPRING CLEANING!!!

How many times have you heard, "Where in the heck did I put _____??  I just saw it!"  And then the frustration ensues, couch cushions start flying, the dog runs under the bed, and you still can't find it.  Sound familiar?  Believe it or not, amid the endless piles of laundry, dishes, old catalogs, bills, overdue library books, you have a house.  A house you would desperately love to show off with pride, as your home.  You might feel that your only hope is that a charitable neighbor nominates you for a cable show home makeover.  But, back to reality, it's really just time to dig in and find your home again!  Hopefully these tips for organizing and cleaning will help....

The first thing to do is to really look at your problem area.  Grab a notebook and a pencil.  Mentally survey each room and jot down the problem areas of the room, putting one problem on a page.  You'll see why in a minute.  The problem areas should be parts of the room that really bug you, or areas that attract clutter or messes.
Example:  Shoes that pile up next to the door, table piled with mail, end table with magazines from last year...  Carefully (but quickly!) analyze each room in the house and write down the areas that need improvement.
Don't forget about the hidden messes like junk drawers, medicine cabinets, garages, closets, and attics!  We don't usually notice the disorder until we try looking for something in one of these places and get lost.

Next, for each of the problem areas in a room, try to figure out why the disorganization and mess continues.  Sometimes this is best done while you're in the actual room, and it may be easier if you are drinking wine at the time.  All answers are acceptable here, including the fact that you live with slobs.  Typically there is usually more than one reason why an area of your home is continually unorganized.
Example:  Why are the magazines overflowing?  You may realize you have a fitness magazine with a headline that reads, "Get in the Best Shape of Your Life in 2010!".  It might be time to part with it, since you're doing 2011 spring cleaning. (or just cut out the section you want and file it away!)  You might have a giant bag of plastic grocery bags taking up space in your pantry.  Try to think of why you need that many plastic bags.  If you can't come up with a good enough reason to hoard them, maybe you can recycle some of them instead.
Continue the process for each of the problems in the room.  Write down the reasons for each problem in your notebook, then move to the next room.  When you're done analyzing all your problem areas, start go back to the beginning page of your "Spring Cleaning Notebook" and start making solutions, page by page.

Now comes the fun part.  Think about habits, behaviors, and tools that can make those messes disappear.

• Do you need special tools, bins, baskets or shelving to help organize things?
• Is the problem a habit that just needs to be enforced and practiced?
• Is it a combination of both of these things?
• Or do you just need to toss some stuff out?

Example:  Junk mail piling on your table.  Sort the mail while standing over the trash can.  Immediately throw away the junk.  Or find a sorter and organize it when it comes in, and downsize once a week.  Maybe reduce your mail by using online bill paying and opt out of credit card pre approvals.  How about extra coat hooks in the entry way closet?  Would that reduce the coats piling up?  Would a bowl or basket on the entry way table help track down keys? 

After you decide on your solutions, then it's time to implement the changes.  If you went through your home and only had a few changes, then you're lucky and can probably start immediately.  Make a list of what you need, buy the tools to get the job done and jump in.  Warning!  Organizational tools will not help if you don't use them!  You must also start to implement the behavior changes associated with keeping the mess clean.  While you're tearing things out, it's a great time to clean!  Start wiping down the walls and trim.  Dust the pictures that have been hanging in the same spot for three years.  Wash the curtains.  Sweep and mop in those hard to reach places.  Now is as good a time as any!
If you feel that you have substantially more work to do, don't expect that you will be able to instantly do the changes that you desire, espcially if your solutions involve hundreds of dollars of organizing equipment.  It may be necessary for you to pick one room at a time to overhaul.  And don't do it alone.  Make it a team effort.  Then the next time you hear, "Have you seen the _____?"  You can answer, "YEP!"

Renting Versus Buying in Jacksonville, North Carolina

Many renters are under the assumption that they are saving money by renting. You pay a flat fee every month, you don't have to worry about maintenance or taxes, and it doesn't matter anyway, because you're only going to be here for a couple years anyway.
In some cases that may be true. However, why not look at the big picture before your pay your landlord any more of your hard earned money.

The day you sign your lease (based on rent of $700 per month), typically you pay for a credit check ($30), the security deposit ($700), first month's rent ($700), and if you have a pet, the pet fee can be $100-$150 per pet. You've spent $1500 in the first month for a place that you don't own and you will never get that money back (except for the security deposit, if you play your cards right).


Whereas, if you were buying, most of your closing costs would be paid by the seller, which means that if you are using a VA loan, you will pay nothing down. Your first mortgage payment is usually not be due until two months after you close. (I.e. if you close on November 15, your first mortgage isn't due until January 1.) Your home will appreciate in value, slowly, but it will appreciate. Many homeowners can write off their mortgage interest on their taxes.  A person paying anywhere from $700-$900 a month in rent can afford a home with a price of $140,000-$160,000 depending on taxes, insurance, and mortgage interest rates.


There are a lot of factors to weigh when deciding whether to buy or rent. Jacksonville North Carolina is one of the few cities in the country where buying, even if you live in your home for under 5 years, can be cheaper and better for your financial future than renting. Ginnie Mae, which is a federal financial organization has put together resources for those considering to buy instead of rent. Check it out and use the comparison calculator to really weigh your options. The numbers don't lie.

Ginnie Mae: Your Path to Homeownership

If you have any questions, I would love to sit down and talk with you! I'm never too busy for your referrals!!

To Refinance or To Not Refinance. That is the Question!

Whenever the Fed cuts interest rates, you probably wonder whether it's time to swap your old mortgage and refinance. Generally, refinancing does save money. But don't rush into it - you need to make a few calculations first.
It's hard to come up with a calculation that fits everyone. Your savings depend on many factors, including your new interest rate, the length of the new loan, how much you've already paid down your current mortgage, your tax bracket, and a myriad of up-front charges.
Don't be fooled by claims of no-cost loans. There are always up-front costs, although they may be rolled into your mortgage payment.
So, talk to your financial adviser and make some calculations based on this list of fees that you can expect to pay if you refinance.

 Origination Fee. This is the service fee, usually expressed as a percentage of the total mortgage. It can run as high as 2.5 percent, although 1 percent is closer to the norm.
 Discount Points. You pay these for getting the loan. One point equals 1 percent of the total loan, so three points on a $100,000 mortgage loan adds $3,000 to your refinancing charges. Generally, the lower the rate, the higher the points. Some lenders finance the points or offer zero points, but both maneuvers boost your monthly payments.
 Prepaid Interest. You're likely to have interest from the date you settle. If you settle on November 10 and your first new monthly payment is January 1, you'll have to prepay interest from November 10 through the end of January. 
 Escrow Accounts. These are required if your lender pays your homeowners' insurance and property taxes. The lender sets up the account by adding the expenses to your monthly payments. They are kept in reserve until the bills are due.
 Miscellaneous. According to your situation, add in appraisal fees, credit report fees (the lender wants to be sure you're still a decent credit risk), attorneys' fees, application fees (which may not be refundable if you don't go ahead with the refinancing), title search fees, title insurance, survey costs, hazard insurance, termite inspection fees, mortgage insurance, fees for a VA loan guarantee, FHA mortgage insurance, or private mortgage insurance.

Now you're ready to consider the interest rate and tax implications - the final steps to determine if you're going to be saving any money.
 Recovery time. Estimate how long it will take to recover refinancing costs by dividing your closing costs by the difference between the new and old payments (your monthly savings).
 Dollar valuation. You want to take into account the future value of the dollar. (You'll be paying up-front costs in current dollars but taking your savings in the future when the dollar may be worth less.) Savings will also be affected by the time you plan to stay in the home.
 Income taxes. Lower interest payments mean lower deductions. So you may wind up paying more taxes that gnaw away at any total savings. IRS rules generally force you to deduct points over the life of the loan, not in the year you refinance, unless they were paid in connection with the improvement of your home.

There you have it. One last warning: Check your current mortgage to see if you'll be charged a prepayment penalty. That can dramatically affect your savings.
Even if you decide refinancing isn't worth it, you can ask your lender to alter some of the terms of your current loan. Again, you may want to talk to your financial adviser for suggestions on what might better serve your needs.

Call me for all of your real estate needs!  If you have a friend or family member that is thinking about buying or selling a home, I would love to talk with them!!