To Contribute to Buyer’s Closing Costs or NOT!

 

Is there a defined rule when it comes to closing cost assistance for financing buyers? Many might think there is an industry standard to expect. Buyer’s closing costs assistance or seller’s concessions are always a topic of discussion in any financing negotiations. Why not? If the Buyer is purchasing a home and paying for the down payment, closing costs, home inspections, appraisal, HOA applications, etc., a little money saved can go a long way. Thousands of dollars just vanish from the buyer’s pocket. I’m not saying it’s not worth the investment, but if the Buyer could save a little in their pockets, then Why Not?

Any new buyer I work with, I’ll explain to them that we’ll ask the seller to contribute and pay for up to half of their closing costs. In some cases, I can negotiate that all of their closing costs be paid. On the selling side, when I represent a seller, the seller’s net sheet is calculated to include 3% seller concessions as a variable cost. It’s not mandatory, but if a Buyer asks, at least the seller is able to make concessions as they see fit.

I never really gave this practice much thought until I submitted an offer on a property for one of my Buyers recently. The listing agent countered our offer stating that the Seller won’t contribute to our closing costs. The listing agent further explained that she never asks for closing costs for a buyer or recommends a seller to contribute to the Buyer’s closing costs unless it’s a foreclosure or new construction property. Foreclosures and new construction purchases are easy outlets to obtain closing cost assistance for the Buyer. New construction builders almost ALWAYS offer seller concessions as part of their appeal to Buyers. I was certainly taken back by her real estate practice. She eloquently added that, if a Buyer wants to buy a home, they should the necessary money saved to cover all costs. I chuckled to myself.

Perhaps this is the service she provides to her clients, but I feel this is a Disservice. Saving a few thousand dollars for a Buyer shows that you care. It shows that you understand that even after the  home purchase, there’s money that goes towards cosmetic improvements, furniture, utility connections, among other items. It hurts my heart that this is her belief and practice. I feel this is why when I speak to so many Buyers, they feel that home ownership is out of reach. They feel that they cannot afford it, and have to save for years. They eventually give up on this dream because of kids, bills, and other items that may slowly nibble at their saving opportunities.

I believe that Home Ownership is a dream. As your Real Estate Professional, it’s my job to make this dream come true. Anyway I can.

If you are wondering how to begin the journey to home ownership, call me today at 813-419-7009 or email me at info@gloriawalters.com.

Photo credit: www.totalmortgage.com

Mortgage borrowers find it a bit easier to qualify

NEW YORK – May 13, 2015 – Lenders continue to loosen standards on home loans. Government and jumbo programs saw the most easing, while conventional conditions tightened.

At 122.0, the Mortgage Credit Availability Index (MCAI) was higher than it's been in at least four years, and possibly five years based on a historical graph.

An increase in the index – which provides a standardized quantitative index solely focused on mortgage credit – indicates that lending standards on home loans are loosening.

The Mortgage Bankers Association reported the index based on data from Ellie Mae Inc.

March 31, 2012, has been established as the base period, with an index of 100.

The index was up for the third consecutive month from 121.4 in March.

As of April 2014, the index was 113.8.

"The increase was driven by new offerings of FHA's 203K home improvement program, new VA offerings, and new jumbo products," MBA Chief Economist Mike Fratantoni said in a written statement. "The increase was partially offset by some investors tightening underwriting criteria on conventional cash out offerings."

But while the trend has been improving, credit standards remain nowhere near levels during the pre-crisis go-go years – with the index estimated to have been approximately 880 in 2006.

The Government MCAI rose 1.1 percent from March, the best month-over-month improvement of any loan type.

A 0.8 percent rise was recorded for the jumbo index, while credit standards on conforming loans eased 0.2 percent.

The only category to tighten was conventional, with that index contracting 0.6 percent.

Copyright © 2015 Mortgage Daily. Distributed by Tribune Content Agency, LLC.

FOR SALE ~ New Tampa Home in Sterling Manor

 

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Looking for a move-in ready home, in a maintenance free community in the Tampa Palms area, this home is the perfect choice. Completely renovated, with lots of updates and upgrades, this home offers 3 Bedrooms, 2.5 Baths, an optional 4th bedroom/den/office and screened-in deck. As you enter the home, you are welcomed with a 2-story, opened entrance, with large windows from the floor to ceiling. A formal dining room, with a wall inset for added decorations along with a bay window with sitting space. The first floor also features an optional 4th bedroom, a spacious living room, double sided fireplace, oak wood flooring throughout, recessed lighting, full kitchen with stainless steel appliances, closet pantry, and updated light fixtures.

The second floor is covered with plush carpet from the staircase to the bedroom closets. The second level, split bedroom floor plan includes 2 bedrooms, and a master suite that is separated by a guest bathroom. The master suite features windows that allow a lot of natural light, ceiling fan, tray ceiling, and two closets with one being a walk-in closet. The master bathroom will be your favorite place, with a water closet, garden tub, separate shower, linen closet, and double vanities. This home sits on a conservation of wooded charm. Not to mention the community is a maintenance free community where the lawn is trimmed routinely and the overgrown trees are pared bi-annually.

For more property details, call 813-419-7009 or email info@gloriawalters.com.

Agents tinker with the timing of an open house

 
CHICAGO – April 21, 2015 – To make their open houses stand out, some real estate pros veer from the traditional weekend afternoon by opening their listings' doors at night. As the weather warms up and days stretch out, some agents host open houses on weekday evenings. Twilight open houses usually occur at dusk, about 4 to 6 p.m., and sometimes later.

Twilight open houses became more popular after the housing crisis as real estate pros were looked for new ways to catch potential buyers' attention and compete against a backdrop of many other homes for sale at the time. But now, some agents say they use twilight open houses for some of their most unique listings.

A Chicago brokerage, @properties, specializes in twilight open houses as full-scale, invitation-only events. For example, the brokerage held a twilight open house when 20 energy efficient homes in a new development in Skokie were for sale. The brokerage paid for a bartender and caterer to try to lure more potential buyers after work to the twilight open house. It worked: About 100 people showed up and four homes sold.

Kelly Evans with RE/MAX Estate Properties in Redondo Beach, Calif., says she holds twilight open houses occasionally but reserves it for unique properties. Unlike traditional open houses, buyers aren't as likely to just follow a yard sign and show up, she says. In fact, most potential buyers who see an open house sign on a weekday or evening many times assume an agent had a weekend open house and just forgot to remove the sign.

To avoid confusion, agents say with a twilight open house usually make it an invitation-only event on a weeknight, making it an offer for a special viewing to current clients, past clients, an entire building or neighborhood.

"I don't use it very often. It's very property-specific," Evans told realtor.com. "It's only for that house that has panoramic views, or there's a harvest moon – something to draw people in."

Source: "At the Twilight Open House, a Novel Approach to Home Sales," realtor.com® (April 3, 2015)

© Copyright 2015 INFORMATION, INC. Bethesda, MD (301) 215-4688 

Mixing Business with Business!

 

Every quarter, I host a Business Mixer at various venues across the Tampa Bay Area. I partner with one of my preferred business associates and invite all of our clients, friends and colleagues that are entrepreneurs. It’s an opportunity to not only solidify our existing relationships with these business owners, but to introduce their services to other like-minded individuals. I believe that we can all help each other succeed.

For my Real Estate business, I keep a well-defined list of professionals that I can refer should the opportunity presents itself. Since I work by referral, I do like to offer referrals too. It’s a Win Win. Not only does the end recipient receive service from a trusted professional, but it helps build that client’s confidence in me.

I'm a Quality Agent that delivers Quality Service. I like to work with people that share the same High Standards in their Business. Feel free to come on out to my next business mixer. I’d love to meet you. Upcoming Business Mixer Link –> http://bit.ly/1EfvPM7.

Viewing Real Estate Through the Eyes of Your Phone or Tablet.

 

Photo Credit: RISMedia.com

A recent survey conducted determined that many Realtors use FaceTime, an iPhone video app, to help overseas or out-of-state Buyers view homes virtually. Personally, I’ve used Google Hangouts, or even Skype to conduct such viewings. These outlets have also proven reliable when a Buyer cannot make it to the final walk-through and have chosen to close via mail-away.

Such applications as FaceTime, Google Hangouts, and Skype are all capable of sending video and sound using your smart phone or tablet. The user can also switch views between the front and back camera as needed to talk to a client and showcase a a home during the walk-through or tour. The Realtor can get up close and answer any questions on the home on the spot for the client.

Considering how hot the market is right now, homes can be under contract in one day. This method allows the Realtor to discuss all pertinent items with the Buyer in Real Time and the visual aspect offers added comfort for making quick decisions. If the client is unavailable at the time of the property viewing, I video record the property and outline all features and challenges of the home. The video is then shared with the client via Dropbox or Youtube, depending on file size.

In today’s market, having a Tech-Savvy Realtor is a plus. The Tampa Bay market is volatile and values are increasing daily. Buyer’s offers need immediate presentation to the sellers to increase chances for success. As I have listed many homes in the first quarter of the year, I see the first hand competition among eager buyers ready to secure a home and cease their long home search.

Looking to purchase or sell real estate in the Tampa Bay area? Your Favorite Realtor is here ready to assist. Feel free to call me at 813-419-7009 or email me at info@gloriawalters.com. Follow me at @GloriaSellsTPA or Facebook.com/GloriaSellsTPA.

Move-In Ready Home in Wesley Chapel

CLICK HERE TO WATCH VIDEO!

Ready for immediate occupancy is this contemporary turnkey single family home in desirable Ashton Oaks, FL. Only two years young, this open concept home features wood, ceramic tile and carpet flooring, modern-style ceiling fans, canned/recessed lighting, a spacious laundry room with washer/dryer hook-up, a sophisticated paint theme, as well as granite countertops and stainless steel appliances in the kitchen.

The den/sitting room is perfect for entertaining privately or personal quiet time. The island kitchen features 42” dark maple cabinets, pendant lighting, built-in wine-rack, a breakfast bar, as well as a dining area that leads into the family room. The split bedroom floor plan allows master suite privacy that features a stand-up shower, dual sinks, and walk-in closet. Furthermore, the open lanai offers a covered space to enjoy the Florida weather.

This home is conveniently located in close proximity to I-75, the Wiregrass Mall, the Cobb Theatre, Publix, and many shopping, dining and other area points of interest. This pet friendly community also features a small dog park and a community pool.

Email, call or text 813-419-7009 for more information. Make an Offer today.