New Buyers: 4 Ways to Set Yourself Up for Success

As one of the largest financial decisions in a person’s life, buying a home requires discretion, sensibility and budgeting. The following tips will keep you on the right path as you look to purchase your first place.

1. Keep score

The better your credit score is, the better your mortgage terms will be. A good credit score can save you tens of thousands of dollars over the life of your loan. Start reviewing your credit a few months before you apply for a home loan. If you have a score in the 600s or lower, start paying down credit balances to 30 percent or less of your balance. Also make bill and debt payments on time – no later than 30 days after the due date. If you have a score in the 700s or 800s, be sure to maintain and protect your good credit. The slightest credit misstep can cause a strong credit score to plunge more sharply than a weak score.

2. Consider all costs

The cost of a home is just the start, and smart buyers tighten their belts before buying to meet the monthly and yearly financial demands of homeownership. When you buy a home, you’re responsible for paying principal and interest, taxes and insurance. Additionally, you’ll need to cover expenses such as utilities and possibly homeowner association dues. You’ll also need cash on hand for the upkeep and repair costs that come with any home. The average homeowner spends 1 percent to 4 percent of a home’s value on property maintenance each year, according to U.S. News & World Report. Expect to pay for repairs or maintenance even within the first year of owning your home.

3. Be flexible in your search

Homebuyers who distinguish between wants and needs make the most sensible decisions. A list of must-haves should include items that affect your quality of life, such as a home’s location, its price, number of bedrooms and square footage. You should be prepared to concede nonessential items, such as views and extra rooms, if you find a house meets your must-haves and is within your budget. Being flexible also involves adjusting your criteria as the home search progresses. For example, your budget may require looking at a town house rather than a detached home, or buying a fixer-upper in order to live in a better neighborhood.

4. Keep your cool

Don’t get overly excited in your search, especially in markets where homes are selling quickly. A bit of self-restraint prevents you from overspending or choosing a home that doesn’t fully fit your needs. Be prepared to walk away if a home inspection reveals more defects in a home than you’re able to deal with. Also, keep calm if you find yourself in a bidding war. Your agent can help you make the most competitive offer, and if it doesn’t get accepted then your agent can help you find the next great option. Finding the right home that fits your lifestyle and budget can take weeks or months. By starting early and being patient, you’ll avoid the sense of urgency that often drives homebuyers to make hasty decisions.

ref: Above {The RE/MAX Magazine}

Thanks for visiting.  Be sure to check my web site for current listings.

www.kengordonrealestate.com

Ken Gordon

Ken Gordon Real Estate

RE/MAX Interactive

321-684-9900

4 Home-Selling Myths Debunked

The process of buying and selling homes can seem mysterious to many novices. Even if well-meaning friends and family members offer advice from all sides, many first-time buyers and sellers may remain uncertain about some key facts.

Let’s see if we can debunk some of the most common home-selling myths that agents hear from clients every day.

Myth: The seller determines the sales price.

Fact: Your home’s sales price should be the result of many factors, among them the size and condition of the home, its location, current market conditions and selling prices of comparable homes in the area.  While the seller ultimately agrees on the final list price, it’s not as simple as pricing the home based only on the money the homeowner hopes to make.

Myth: You should overprice your house in order to leave room for negotiation.

Fact: Overpriced homes take longer to sell and typically sell under their market value. When you overprice, you actually limit your real buying pool. Buyers who can afford to pay only what your home is really worth won’t bother looking at it because they’ll assume they can’t afford it.

Potential buyers who can afford to pay your high asking price will soon realize your home doesn’t stack up to the others in the same price range. By alienating both pools of buyers, you run the risk of wasting the valuable marketing window when your home is a new listing.

Myth: There’s no need to make repairs if you plan on giving the buyer a repair credit.

Fact: Many homebuyers want a home that’s move-in ready. If you plan on selling your home quickly and for top dollar, consider making any major repairs before you put the home on the market. Not only will the home be viewed as move-in ready, but your agent can also mention the repairs as a selling point in the marketing materials. If the need for additional fixes arises during inspection, that’s when you could discuss a possible repair credit for the buyers.

Myth: Home improvements pay for themselves when you sell.


Fact: While many repairs offer tremendous value down the road, few home-improvement projects provide a 100-percent return on your investment, according to Remodeling magazine’s annual Remodeling Cost vs. Value Report. Get expert opinions on what to fix, and how, before you take out that sledge hammer.

ref: Above {The RE/MAX Magazine}

Thanks for visiting.  Be sure to check my web site for current listings.

www.kengordonrealestate.com

Ken Gordon

Living Paradise Properties

RE/MAX Interactive

321-684-9900

Tips for Preping Your Home to Sell

Not many people know that selling their home might require some work.  Remember that showing your home for sale is much more than simply putting a sign in the yard and running an ad in the Sunday paper.  There are several things to consider when "marketing" your home.  I've heard it said that the market rewards those who prepare and punishes those that don't.

So, what can you do to prepare?  Here are a few ideas to make sure your home is ready to impress potential buyers?

1.  Clean everything and make sure your home smells good! (Pine-Sol is an excellent cleaning solution and always leaves a fresh, clean smell behind.)

2.  Pick up in every room.  Leave no clutter on the floors even in the kid's rooms. Don't forget to check the closet floors. Clutter always makes a room appear smaller.

3.  Straighten and dust bookcases and shelves. Wipe down all the tchotchkes.

4.  Straighten closets and, if possible, reduce the amount of clothing hanging to make the closets appear less crowded.

5.  Organize your pantry, line and clean the shelves, straighten the laundry room.

6.  Paint, inside and out. Fresh paint always makes the home feel "newer".  Use softer earth tones.  Nothing bright or obnoxious.

7.  Leave a few family photos out, but be careful not to have too many,  An entire wall packed with pictures might be overwhelming and take away the buyers ability to "feel at home".

8.  Make the beds every day.

9.  The bathrooms MUST be spotless. No towels on the floor. Shower curtains or doors clean and pulled closed.  Clean and smelling fresh. Toilets bowls scrubbed – no rings

10.  Curb appeal.  Homes that have attractive entry ways seem to sell faster. Extra effort to make sure the yard is well maintained is essential as this is the first thing a potential buyer sees. First impressions set the tone for the rest of the showing.

Helpful hint:  As already stated, preparation is key.  You won't always have a 2 or 3 hour notice that a potential buyer wants to see your home.  I've had people call and say, "We're sitting out in front of your listing and was wondering if we can get in right away."  In this situation, you have to be ready to move quickly to allow for a showing.  Keep some empty storage bins handy and use them for the "last minute pick up" (of clutter).  Slide them under the bed or take them with you.

Thanks for visiting.  Be sure to check my web site for current listings.

www.livingparadiseproperties.com

Ken Gordon

Living Paradise Properties

RE/MAX Interactive

321-684-9900

Homes In Ideal Neighborhoods Sell Fast

Did you know that according to most home buyers, neighborhood quality is the #1 factor they consider?

It’s true: homes in ideal neighborhoods sell fast. To take advantage of the best real estate opportunities, you need a real estate professional who provides quick, efficient service.

There are thousands of homes out there. My job is to help you narrow down the options to the homes that specifically meet your unique needs, and then negotiate the best possible price for you. A few of my services include: 

• Property previews. Visit www.livingparadiseproperties.com to see properties for sale 24 hours a day, 7 days a week.
• Daily e-mail message service. Alerting you to new home listings that meet your criteria.
• Detailed community information. School ratings, crime statistics and home values to help you select your most desirable neighborhood.

You may not be in the market to buy or sell a home right now. But when you are ready, I’ll be happy to help.

Call me TODAY at 321-684-9900 for honest, exceptional service...

Tips for Home Buyers

As many markets continue to heat up, both buyers and sellers are facing multiple offer situations. If you’re a buyer in a bidding war, here are some tips to give you an edge:

• Get pre-approved for your loan. Get pre-approved by a local lender and attach a copy to your offer.
• Think unevenly. An uneven offer price such as $251,000 instead of $250,000, will stand out from the others, and it may just beat an offer that came in at a slightly lower figure with an even bid.
• Be flexible. The fewer contingencies and the cleaner the offer, the better the chance you have to win a bidding war. Have your agent find out the seller’s ideal closing date, and offer to make it happen.
• Hide your hand. Determine the highest bid you’re trying to beat, and try to come in over that rather than offering the most you can afford.
• Don’t get distracted. If you find yourself caught up in the excitement of a bidding war, step back and reassess if the home has everything you want and need.

Market Research

Is now a good time to buy? What trends are affecting the value of my home? What new economic policies will be shaping my real estate decisions in the coming months?

Watch the video, then call me for detailed information about your neighborhood.

Ken Gordon 321-684-9900.

http://www.youtube.com/watch?v=m8oyyXPBG0I&feature=youtu.be

Florida's housing market continues positive trends in June...

ORLANDO, Fla. – July 19, 2012 – Florida’s housing market had increased pending sales, more closed sales, higher median prices and a reduced inventory of homes for sale in June, according to the latest housing data released by Florida Realtors®.

“Florida’s housing recovery continues its positive momentum,” said 2012 Florida Realtors President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “All of the signs point to solid gains, which is good news for the state’s economy.  In June, pending sales were up 31 percent for existing single-family homes and nearly 23 percent for townhouse-condo units compared to a year ago. The trend shows that many buyers are ready to purchase their Florida dream home, but a lack of financing options and overly restrictive credit standards remain obstacles.”

Pending sales refer to contracts that are signed but not yet completed or closed; closed sales typically occur 30 to 90 days after sales contracts are written.

Statewide closed sales of existing single-family homes totaled 18,800 in June, up 5.3 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The statewide median sales price for single-family existing homes last month was $151,000, up 8.2 percent from June 2011.

According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in May 2012 was $182,900, up 7.7 percent from the previous year. In California, the statewide median sales price for single-family existing homes in May was $312,110; in Maryland, it was $259,207; and in New York, it was $208,000.

The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Looking at Florida’s year-to-year comparison for sales of townhomes/condos, a total of 9,202 units sold statewide last month, up 1.5 percent from those sold in June 2011. The statewide median for townhome-condo properties was $110,000, up 15.8 percent over the previous year. NAR reported the national median existing condo price in May 2012 was $180,000.

Last month, the inventory for single-family homes stood at a six-months’ supply; inventory for townhome-condo properties was at a 5.9-months’ supply, according to Florida Realtors.

“The trend we’ve seen established over the past year is continuing,” said Florida Realtors Chief Economist Dr. John Tuccillo. “In June, every housing market indicator moved in the right direction. Closed sales are up, but so are pending sales, median prices, average prices and the ratio of sales price to list price. Conversely, listings are down, days on market are down and – most important – inventories are down. We have now reached a six months’ supply of inventory for existing single-family homes and 5.9-months’ supply for townhouse-condos.”

Tuccillo added, “With an improving employment environment in Florida, we expect that the housing market recovery will continue in the future.”

The interest rate for a 30-year fixed-rate mortgage averaged 3.68 percent in June 2012, significantly lower than the 4.51 percent average during the same month a year earlier, according to Freddie Mac.

To see the full statewide housing activity report, go to Florida Realtors Media Center at http://media.floridarealtors.org/ and look under Latest Releases, or download the June 2012 data report PDF under Market Data at: javascript:HandleLink('cpe_0_0','CPNEWWIN:NewWindow^top=10,left=10,width=500,height=400,toolbar=1,location=1,directories=0,status=1,menubar=1,scrollbars=1,resizable=1@http://media.floridarealtors.org/market-data');

© 2012 Florida Realtors®