Wednesday, October 15, 2014

When is the Best Time to Sell My House?



School is back in session, the holidays are right around the corner, you might not think that now is the best time to sell your house.  But with inventory below historic numbers and demand still strong, you could be missing out on a great opportunity for your family. 

1. Demand is Strong
Foot traffic refers to the number of people out actually physically looking at home right now. The latest foot traffic numbers show that there are more prospective purchasers currently looking at homes than at any other time in the last twelve months which includes the latest spring buyers’ market. These buyers are ready, willing and able to buy…and are in the market right now!

2. There Is Less Competition Now
Housing supply is still under the historical number of 6 months’ supply. This means that, in many markets, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market in the near future.

Also, new construction of single-family homes is again beginning to increase. A recent study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).

The choices buyers have will continue to increase over the next few months. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker
One of the biggest challenges of the 2014 housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. Any delay in the process is always prolonged during the winter holiday season. Getting your house sold and closed before those delays begin will lend itself to a smoother transaction.

4. There Will Never Be a Better Time to Move-Up
If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 19% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate in the low 4’s right now. Rates are projected to be over 5% by this time next year.

5. It’s Time to Move On with Your Life
Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?
Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market. Perhaps, the time has come for you and your family to move on and start living the life you desire.

As we get later into the year, many people have other things (weather, holidays, etc.) that distract them from searching for a home. Call me today and take advantage of the buyer activity currently in the market.



Elizabeth Scott, Realtor®, Broker
BE SAVVY...CALL THE SMART REALTOR

2013 Diamond Award – High Sales Volume
e-PRO, Strategic Pricing Specialist
Fathom Realty NC, LLC      
Phone: 919.306.9699
Email




Friday, October 10, 2014

What You Don't Know About Your Credit Score...Will Cost You!



What You Don't Know About Your Credit Score...

Is this you?  You are considering purchasing or refinancing a home.  You are spending hours hunting online looking at numerous websites for homes for sale.  Also, you consult many other websites to find the best interest rate & terms for future monthly mortgage payments.  You want to do the right thing and be informed and plan ahead, right? 

So many of my clients have felt betrayed & cheated using this system.  The credit scores they counted on to get the specific interest rate for their loan are not used by real mortgage lenders.

A Google search for “credit score” will yield hundreds of results. You click on one or more and then you accept the provider’s terms and conditions to get a free credit score. Terrific! In exchange you just received a meaningless credit score that lenders never use. You also handed over their Non-Public Personal Information (NPPI) to that credit score provider for life. GULP!

Let’s get real:  here are the available credit scoring products available to consumers today:

  • FICO credit score from Fair Isaac Corporation/myfico.com, range 300 to 850
  • Plus Score from Experian, range 320 to 830
  • Trans Risk Score from TransUnion, range 300 to 850
  • Equifax Credit Score from Equifax, range 300 to 850
  • Vantage Score from all three bureaus, two ranges, 300 to 850 and 501-990

What is a FICO Score?
In 1958, Bill Fair and Earl Isaac, a mathematician and engineer, formed a company in San Rafael, California. They created tools to help risk managers make a better decision when taking financial risk. Today, 90 percent of all lenders use the FICO score, first created in 1989 by Fair Isaac, and it’s the only score Fannie Mae and Freddie Mac, the Federal Housing Agency and Veterans Affairs will accept in underwriting loans they guarantee.

What is a Consumer Score?

The three credit bureaus, in their understanding of the credit scoring model created by FICO, decided to create their own scoring models, and in 2004 – 2006 they unveiled the “consumer” scores: Plus Score, Trans Risk Score, Equifax Credit Score, and Vantage Score. However, these are not genuine FICO scores, and mortgage lenders don’t use them. Consider this comparison: Would you buy a watch that gives the approximate time of day?

The three credit bureaus work with major financial institutions, professional organizations, comparison sites, personal finance businesses, clubs such as Costco, AAA, Sam’s Club, and many data-mining brokers to bombard consumers in the race of the free credit score mania, all with the enticement of a “consumer” score that is not used by lenders, in hopes of obtaining subscriptions or fees from consumers. Fees that are totally unnecessary!

Know Your Score

Gaining access to your own credit report and credit score prior to loan approval with no strings attached is very helpful.  And, you will need a letter of qualification to purchase a home anyway.  With little effort, a great lender can guide you on how to correct inaccurate information at the credit bureau level, and with a few simple steps, credit scores could be enhanced. So where can I get this free information?

More Information

You have a legal right to access their annual credit report at no charge once a year from annualcreditreport.com, a site sponsored by the three major credit bureaus: Experian, Equifax and TransUnion.

These reports provide all the basic consumer data, but do not reveal a credit score. If you have a need for the FICO credit score that is actually used by mortgage lenders, myfico.com  is the website to visit. For $19.95 per bureau, you can purchase a customized credit report with a genuine FICO score.

Additional websites to visit: the Federal Trade Commission and the Consumer Financial Protection Bureau for true answers to questions about any financial concepts, financial products, dispute and complaint submissions, and much more.

Or, if you want the best local advice and information, contact me.  My team of advisors, lenders and I will help you get in shape for the best possible mortgage rate you can get.  So, stop roaming the internet in the middle of the night, get a good night's sleep, and give me a call!


Elizabeth Scott, Realtor®, Broker
BE SAVVY...CALL THE SMART REALTOR!

2013 Diamond Award – High Sales Volume
e-PRO, Strategic Pricing Specialist
Fathom Realty NC, LLC      
Phone: 919.306.9699
Email