Ready to get off to a great start?  Here is Part 2 of my 3-part series “Real Estate Defined”

Whether you’re simply thinking of buying a new home or actually ready to make your move, working with a Realtor ensures your real estate buying process is a great one.  You can count on us to find your ideal neighborhood, help you find the perfect house, and be there when you close the deal.

Real Estate Agent:  A real estate agent is a professionally trained and licensed real estate expert who is involved in real estate sales and transactions. Though it is not required to hire an agent when buying or selling a property, the tasks an agent performs can be extremely complex and time-consuming. Therefore, it is in a consumer’s best interest to work with a seasoned real estate professional who can offer invaluable expertise and assistance, as well as insight into the local real estate market and neighborhoods of interest.

• A Seller’s Agent: An agent who is hired to sell a home is responsible for marketing the home to potential buyers as well as other agents who are working with buyers. The seller’s agent ensures that the property is in proper viewing order and that he/she is familiar with everything about the property.  Some specific responsibilities include:
  • Assisting the seller in pricing the property appropriately
  • Suggesting any necessary repairs to be taken care of prior to listing
  • Exposing the property to a maximum number of buyers; arranging showings and providing feedback from prospective buyers
  • Explaining all the contingencies, helping the seller to remain objective and make informed decisions based on current trends, market data, and individual needs
  • Presenting and negotiating offers on the seller’s behalf
  • Following through on the contingencies all the way to closing (e.g. making sure that the mortgage loan is applied for and granted within a certain timeframe, the home inspection is done according to schedule, and any necessary repairs are made prior to closing).
• A Buyer’s Agent: An agent representing a buyer will need to focus on what the buyer’s needs are, establish what amenities the buyer is looking for, what geographical area(s) are being considered, how prepared the potential buyer is to buy and how much he/she is willing to spend. A buyer’s agent must also have a firm grasp of the surrounding area’s real estate market so that he/she can recommend alternative properties to the buyer. Once the home buying process begins, a buyer’s agent will be responsible for the following:
  • Providing an honest analysis of each property, including both good and bad points
  • Preparing an offer to purchase the property with terms favorable to the buyer
  • Negotiating with the seller to obtain the property at the best price and terms for the buyer
  • Providing the buyer with an estimate of the costs involved in the transaction and assisting the buyer in contacting the professionals necessary to complete the purchase, including mortgage services, title insurance and escrow companies, and home inspectors  
  • Monitoring performance of all others involved in the transaction to make sure all services are promptly and professionally carried out
  • Accompanying the buyer to the closing to verify that all terms and conditions of the purchase agreement are met

Commission:  Commission is the compensation or fee that a real estate agent charges for performing the agreed-upon terms under a brokerage contract.  The commission due for a real estate transaction is negotiable and usually paid from the seller’s funds at closing.  The fee is typically calculated as a percentage of the total sales price and commissions vary from market to market.  Commission is shared between the listing agent and the agent who represents the buyer, but the division is not always a 50/50 split. (Also, agents split their commissions with their brokers.)

In short, a realtor commits and delivers time and effort to make your total homeownership experience extraordinary.  Let me talk with you further about how I can help find or sell the home that’s just right for you!

Stay tuned for Part 3 when we discuss ‘the process’ and what the terminology means to buy and sell real estate …..

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Oh, by the way…  I’m never too busy for one of your referrals!

* Honored as the winner of the CARTUS Cup and the CARTUS Master’s Cup for the highest overall performance & service delivery in the world’s top performing broker relocation network
* Ranked #1 in Pennsylvania & Delaware, and #7 internationally of all Coldwell Banker affiliate companies
* Cartus Platinum Recognition Award for outstanding service and performance at all levels
* “Highest Overall Satisfaction for Home Sellers Among National Full Service Real Estate Firms” by J.D. Power & Associates in their 2009 Home Buyer/Seller Study

Buying or selling real estate is the beginning of the total homeownership experience.  BUT, understanding everything involved in real estate can sometimes be confusing.  

In my 3-part series “Real Estate Defined”, I’ll re-introduce you to language we hear every day and help you understand what each term means.  And when you’re ready to take the next step into homeownership, you will have the knowledge you need to make a strong and informed start. 

In Part 1, let’s break down some of the confusion with some terms we frequently hear in the news: 

Housing Market: The housing market refers to the supply and demand for houses in a particular country or region.  Factors that affect the housing market include interest rates, the mortgage industry, economic growth, incomes, unemployment rates and population demographic trends.  More specific definitions of “market” include: 

• Buyer’s Market: A buyer’s market occurs when demand for homes is very weak and prices do not appreciate as much or in some cases actually drop in certain areas. In a buyer’s market, homebuyers have the opportunity to purchase a home at lower prices.
• Seller’s Market: A seller’s market occurs when demand of for homes is great. In a seller’s market, potential sellers have the opportunity to sell their home at a higher price than in the past due to a limited amount of properties available and a large number of potential buyers demanding them at current prices.  Sellers and home owners are also likely to experience higher appreciation in a seller’s market. 
• Time on Market: The length of time in which a home is listed for sale is known as “time on market.”  On many multiple listing services (MLS) sheets, this is also noted as D.O.M. – Days On Market.

Existing Home Sales: Existing home sales is an economic indicator of both the number and prices of single-family homes, condos and co-op sales over a one-month period.  Each month, the National Association of Realtors (NAR) releases statistics on sales and prices of existing single-family homes for the nation and four regions. The existing home sales report, which includes footnotes on how the numbers are derived, is available at www.realtor.org. 

Inventory: Housing inventory is the number of existing homes available for sale each month.  The most closely watched housing inventory measure is a months’ supply, which measures the latest housing supply in relation to housing demand.  In May 2009, NAR reported that nationally the inventory of existing homes for sale fell, representing a 9.6-month supply at the current sales pace.  (A six-month supply is considered a balanced market.) A decrease in homes for sale is a sign that the housing market is on its way to recovery, while a large supply of homes still available gives potential buyers more options in choosing the home that best fits their specific needs and wants.  

Home Appreciation: Home appreciation is the increase in value of a property over a period of time.  Short-term increases or decreases in value are triggered by factors such as employment rates, interest rates, housing supply, demand, affordability, crime rate, quality of schools in the area and proximity to a city.  Additional factors such as upgrading a home can also result in home appreciation.  What a home is worth depends on these elements, as they directly impact what a buyer is willing to pay for a particular property. While real estate moves in cycles and home values fluctuate regularly, real estate has consistently appreciated over the long term.

In my next segment, we talk about Realtors – who are we and what can we do to help!

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Oh, by the way…  I’m never too busy for one of your referrals! 

* Honored as the winner of the CARTUS Cup and the CARTUS Master’s Cup for the highest overall performance & service delivery in the world’s top performing broker relocation network
* Ranked #1 in Pennsylvania & Delaware, and #7 internationally of all Coldwell Banker affiliate companies
* Cartus Platinum Recognition Award for outstanding service and performance at all levels
* “Highest Overall Satisfaction for Home Sellers Among National Full Service Real Estate Firms” by J.D. Power & Associates in their 2009 Home Buyer/Seller Study

From our mortgage agent, this just in:
The House of Representatives voted unanimously to extend the tax credit for military members for up to one year. This bill must still make it thru the Senate (so it’s not yet passed), but nonetheless it’s promising news!

With this precedent, maybe there is greater hope that the credit will be extended for the general public.

Keep letting your congressmen and women know if you feel this would be a benefit for the economy.

Patty Cunningham, Realtor®
Coldwell Banker Preferred

390 Waterloo Blvd, Suite 101
Exton, PA 19341
web: http://www.pattycsellshomes.com
blog: http://pcunning.wordpress.com
O. 610.363.6006
F. 484.356.0540
C. 610.659.4669
E. pcunningham@cbpref.com
Access my Business Directory here: http://www.pattycunningham.com/realestate/Contractor%20Referrals.pdf

Many are lobbying to get the $8000, first time homebuyer tax credit, currently slated to end on November 30, to be extended.  Do you think that is a good idea?  Will it continue to invigorate a sluggish economy, as proponents predict?  Or would an extension be a waste of taxpayer dollars?  Some say a recent mini-slowdown in the US economy can be tracked to the end of the “Cash for Clunkers” program, a tax incentive for car buyers that ended late this summer.  Could the tax credit have an even more significant impact on housing market and the state of the economy?

 Let me know what you think.  Post your reply here.

Patty Cunningham
Realtor
Coldwell Banker Preferred
Exton, PA
o. 610-363-6006
c. 610-659-4669

Roadmap to “sold!” A marketing plan.
 
Looking for the most profitable path to selling your home? Using a marketing plan is your map and an experienced real estate agent is your guide.

A knowledgeable agent will keep you on course with a complete marketing plan that includes fact-based market analysis, signage, virtual tours, brochures, MLS placement, direct mail, home showings, open houses, and the resources of their active network.

Know-how also counts on the road to “sold!” Select an agent with a proven track record who will aggressively market your home, anticipate problems, and skillfully resolve any unavoidable issues.

Patty Cunningham, ePro, AHS
Coldwell Banker Preferred
office: 610-363-6006
direct: 484-881-6051
cell:    610-659-4669
email: pcunningham@cbpref.com
web: http://www.pattycsellshomes.com
blog: http://pcunning.wordpress.com/

 Oh, by the way…  I’m never too busy for one of your referrals!

Caught in between selling and buying a home? Coldwell Banker^® has tips on what to do.

The first question I am frequently asked by clients is: “Should I sell my current home before I look for a new one?”  Trying to sell a home and buy one at the same time can be challenging. Many home buyers find themselves caught in a difficult position.  They often cannot place an offer on a desired home without committing the money they expect to receive from the sale of their current one.

Below are some tips on how to close the gap between buying and selling a home:

Consider bridge loans. A bridge loan means borrowing from the current home’s equity until the proceeds from its sale are obtained. Some bridge loans require that only the interest be repaid; others mandate a single payment of interest and principal when the loan needs to be paid back. If protracted, bridge loans can be expensive, so it is best to use them for overlaps of a short period of time between closings.

Buy on contingency. Have a prior-sale contingency included in the purchase contract of the new home. It provides the opportunity to withdraw from an offer if the current home does not sell by a specific and agreed upon date.

Evaluate whether to buy or sell first. You could still find yourself caught in between, even with a prior-sale contingency clause. Home owners must consider which is better to do first. In a seller’s market, locating the new home and starting the buying process may be the best approach. Most people need to sell their current home to qualify for a loan to purchase the next one, which is often more expensive. In a buyer’s market, you should be aware of the market conditions and the possibility of not being able to sell your current home quickly.

Review home equity options. For those who need to borrow for a longer period than just a few months, it is best to use a home equity loan or a fixed-rate line of credit, particularly if sizable equity has been built up.

With any of these options, I always advise my clients to use their own best judgment about the level of risk with which they are comfortable.  Just because a lender will give you the money, doesn’t mean that you should necessarily take it.  When in doubt, consult your financial advisor.

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Patty Cunningham, Realtor®                                                   390 Waterloo Blvd, Suite 101
Coldwell Banker Preferred                                                 Exton, PA 19341
web: http://www.pattycsellshomes.com                                      O. 610.363.6006
blog: http://pcunning.wordpress.com/                                                  F. 484.356.0540
                                                                                                                        C. 610.659.4669
                                                                                                                        E.  pcunningham@cbpref.com
Access my Business Directory here: http://www.pattycunningham.com/realestate/Contractor%20Referrals.pdf

               Oh, by the way…  I’m never too busy for one of your referrals!

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NOTE:  The information in this electronic mail message is the sender’s confidential business and may be legally privileged. It is intended solely for the addressee(s).

* Honored as the winner of the CARTUS Cup and the CARTUS Master’s Cup for the highest overall performance & service delivery in the world’s top performing broker relocation network
* Ranked #1 in Pennsylvania & Delaware, and #7 internationally of all Coldwell Banker affiliate companies
* Cartus Platinum Recognition Award for outstanding service and performance at all levels

As I predicted last winter, the housing market appears to be recovering, as documented in this recent report from the National Association of Realtors:

Existing home sales jump to two year high

The housing market is a buyer’s market and they are buying.

The National Association of Realtors reports sales of existing homes jumped 7.2 percent in July, the biggest monthly increase since it began keeping track in 1999.

Sales rose to an annual pace of 5.24 million. It was the fourth consecutive monthly increase in existing home sales, the longest streak since June 2004. Sales were 5 percent higher than a year ago, the first time sales were above year ago levels since November 2005.

“The housing market has decisively turned for the better,” said NAR chief economist Lawrence Yun in a statement. “A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing the higher sales.”

Tax credits, prices that have been driven lower for the last two years, and historically low mortgage rates are all contributing to rising sales.

Freddie Mac (NYSE: FRE) this week reported 30-year fixed-rate mortgages fell to an average of 5.12 percent this week. A year ago, long-term mortgages were 6.5 percent.

Yun also notes in some recovering markets, like San Diego, Las Vegas, Phoenix and Orlando, the demand for foreclosed and lower priced homes has spiked, and lack of inventory is becoming a common complaint.

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Patty Cunningham, Realtor®                                                   390 Waterloo Blvd, Suite 101
Coldwell Banker Preferred                                                 Exton, PA 19341
web: http://www.pattycsellshomes.com                          O. 610.363.6006
blog: http://pcunning.wordpress.com/                                                  F. 484.356.0540
                                                                                                                        C. 610.659.4669
                                                                                                                        E.  pcunningham@cbpref.com
Access my Business Directory here: http://www.pattycunningham.com/realestate/Contractor%20Referrals.pdf

               Oh, by the way…  I’m never too busy for one of your referrals!

The rules for the Mortgage Disclosure Improvement Act were finalized Friday, May 8^th and it is applicable to all mortgage lenders (federally chartered or state licensed).  For applications taken as of July 30, 2009, new requirements about the delivery and the accuracy of disclosures will apply.  One of the new requirements is that the borrower must be provided with an accurate APR disclosure at least three business days prior to closing.  It must be in their hands three business days prior to closing and they are permitted to close on the 3^rd business day after receiving it, or later.

An easy way to remember new rule is “3/7/3.”  This means:

• 3 days after application – an initial Truth In Lending (TIL) statement must be provided no later than 3 business days after receipt of the loan application. 

• 7 business days after initial application – Waiting period – the borrower is not permitted to close until at least seven business days have passed since the TIL was placed in the mail or provided to the borrower.

• 3 business days prior to closing – Waiting period – The borrower must receive an accurate APR on their TIL at least 3 business days prior to closing.  If it was provided before that period of time, because the loan terms were locked in earlier in the process, no new TIL is required if there is no change to the APR or the change is less than 1/8^th of a percent (1/4 percent for construction loans).

If the final loan terms cause the TIL/APR top be understated by more than 1/8^th of a percent, a revised TIL with an accurate APR must be provided to the borrower, so that they receive it at least three business days prior to closing.  It must be in their hands at that time, and they may close on the 3^rd business day after that day.

Some issues to consider:

These new timing requirements limit mortgage companies’ ability to accommodate rush closings, and they could delay closings.

For loans where the final loan terms increase the APR by more than 1/8^th of a percent, a revised TIL is required to be received by the borrower at least 3 business days prior to closing.  This means closing table changes may result in having to reschedule the closing date.

Patty Cunningham, Realtor®                                                   390 Waterloo Blvd, Suite 101
Coldwell Banker Preferred                                                 Exton, PA 19341
web: http://www.pattycsellshomes.com                                      O. 610.363.6006
blog: http://pcunning.wordpress.com/                                                  F. 484.356.0540
                                                                                                                        C. 610.659.4669
                                                                                                                        E.  pcunningham@cbpref.com
Access my Business Directory here: http://www.pattycunningham.com/realestate/Contractor%20Referrals.pdf

From the Philadelphia Inquirer last week, word that rights of natural gas pipeline companies may impact some homeowners in Chester County.

Pipeline push worries Chester County landowners and farmers

Hundreds of Chester County residents are confronting requests from companies for larger rights-of-way to expand existing natural gas pipelines or for new rights-of-way to add lines. And under federal law, the landowners might not have much choice. The price depends partly on the land’s appraised value; farmers also would be compensated because land dug up for a pipeline takes about five years to return to productivity. More than 700 miles of natural-gas pipelines crisscross Chester County, and because natural gas is a clean-burning fuel, demand is growing. Last month, the Federal Energy Regulatory Commission approved a controversial expansion of a Williams-Transcontinental pipeline near Downingtown and Exton. For natural-gas suppliers looking to build pipelines, Chester County has an advantage that few other places can match because of the presence of farmland and open space coupled with a nexus of three federal pipelines. Landowners who thought conservation easements guarded against development are shocked to find out that when pipelines enter the picture, that protection doesn’t mean much. The 1938 Natural Gas Act gave what is now the Federal Energy Regulatory Commission full authority over interstate natural-gas pipelines, overriding state or local restrictions such as easements. West Vincent has become the latest battleground between the pipeline companies and landowners. Dominion Keystone, an offshoot of Dominion Resources Inc. of Virginia, hopes to build a 280-mile pipeline from Greene County in the southwest corner of Pennsylvania to Chester County.

Patty Cunningham, ePro, SRES, ABR, AHS
Coldwell Banker Preferred
office: 610-429-4400
direct: 484-881-6051
cell:    610-659-4669
email: pcunningham@cbpref.com
web: http://www.cbpref.com/pcunningham
blog: http://pcunning.wordpress.com/
 
Oh, by the way…  I’m never too busy for one of your referrals! 

Where were you on this date in 2001?  I’m sure you remember what you were doing when you heard the news about the attacks on the twin towers and the Pentagon.  Take a moment today to reflect on the passing of life and innocence on that fateful day.  What do you do each day that honors your life?  How did this event change your view of the world? 

Blessings and peace.

Patty Cunningham, ePro, SRES, ABR, AHS

Coldwell Banker Preferred

office: 610-429-4400

direct: 484-881-6051

cell:    610-659-4669

email: pcunningham@cbpref.com

web: http://www.cbpref.com/pcunningham

blog: http://pcunning.wordpress.com/

Oh, by the way…  I’m never too busy for one of your referrals!