Don’t Sell Yourself Short, Avoid Foreclosure With A Short Sale. April 25, 2008
Posted by ScottAlexander in : Financing, Real Estate , add a comment
What is a “short sale?” Well, it’s certainly not something that is fun to talk about. Simply defined, a “short sale” is a situation where the market value of the property is less than the amount the seller owes his/her lender. For a short sale, the lender must agree to accept less than the full amount due. Why would a lender do that?
There are several reasons. First of all, the lender really doesn’t want to own houses. It is a huge headache for them to repossess, list and sell homes. It is a costly, time-consuming process. The reality is that often it better for the lender to “cut its losses” and allow the owner/borrower to sell short.
This is cold business driven calculus, not motivated by “feel good” sentimentalism. I can’t blame lenders for the problem. Here is why I bring it up. We might see some of these situations in San Angelo in the coming months. If you are someone who has a problem, the last thing that you want to occur is repossession. So talk to your lender. See if you can work something out. Then you might want to talk to them about a “short sale.”
Scott Alexander
(325) 450-5099
scott.alexander1@coldwellbanker.com
http://www.scottalexanderhomes.com
Club Park at Bentwood Better Than Arizona? April 10, 2008
Posted by ScottAlexander in : Real Estate , add a commentOne of the great questions that we all face as we fade off into our AARP years is: “Where am I going to live?” For some the solution has been Arizona, Florida, maybe Central Texas. Think about what we want: quiet living around good people with similar interests, a nice low-maintenance home, a safe community, and access to restaurants, theater and most importantly—a good golf course! So why in the pluperfect heck would anyone leave San Angelo?
Everything you want, need, desire, and long for is located right here.
Just move to Club Park at Bentwood, the new patio home addition to San Angelo’s most prestigious neighbor, Bentwood Country Club Estates. Club Park is under development as I write. Thirty-one patio home lots await their new owners.
Some of these terrific building sites are on the golf course while others are just across the street from the 10th fairway. The homes are going to be oriented towards those of us who have played more than a few rounds of golf. There will be a practice area practically in your back yard and the homes will be in the neighborhood of 2200 square feet.
If you are interested in building in Club Park, come to Bentwood on Tuesday, April 29th between 6 and 8 in the evening. You can meet Jim Lane of Horizon Builder, Scott Alexander of Coldwell Banker Patterson Properties, and Susan Pulley from the Bank of San Angelo. The point of the evening is informational. We want to share some time with you and tell you more about how you can make your retirement dream a reality.
Home Warranties and Why You Need One April 10, 2008
Posted by admin in : Real Estate , add a commentWhich 2008 Police Chief Candidate Is Best For San Angelo? April 9, 2008
Posted by AndrewK in : @San Angelo, Real Estate , add a comment
I recently had the pleasure of attending the Tom Green County Democratic Club meeting at which there was an in depth discussion with all six of the candidates for San Angelo Police Chief. I was impressed with the candidates and their platforms. Some had good ideas, others had some great ideas. The resounding theme of the discussion was clearly that the police force needs to be more involved with the community they each had ways they planned to achieve this.
The current police chief Tim Vasquez stated that he is considering adding citizen contact to the minimum work standard. Mr. Burkett advocates a “community base policing” program where the officers on duty are to get to know the residents and business owners where they patrol.
Another issue that is pressing our community is the war on drugs and gangs. Drugs, particularly methamphetamines, are a rapidly growing problem in San Angelo and tend to lead to more serious and violent crimes. All of the candidates addressed this issue and assured the audience that they had a plan to fix this. More details can be found at each of the candidates websites.
There was even talk of the police department “going green” and saving money by ordering hybrids for all non emergency vehicles and solar panels or wind turbines for the police buildings. This idea was met with a little resistance but the candidates did suggest that a bond election could raise money for this cause and that the current facilities are antiquated.
Altogether the candidates did a great job and we thank them very much for their time. If you don’t know the candidates I encourage you to research them and their websites. This issue strikes to the core of real estate in that our neighborhoods and communities need to be safer from drugs and gangs and our police and citizens should come together to achieve this goal.
I encourage you to vote on May 10th for the candidate you feel will lead our police force the best.
Does Fluffy Come With the House? April 9, 2008
Posted by ScottAlexander in : Real Estate , add a commentOne of the things that is always a source of contention between buyers and sellers is the answer to this question: “What is the seller offering for sale?” Generally, what appears to be part of the house and is attached to the house is part of the sale. So ceiling fans, chandeliers, blinds, etc. are part of the offering unless specifically excluded in writing by the seller.
My twisted sense of humor brings me to the pictures that we realtors post on the internet. We take great pains to stage a house: buying new bedspreads, painting, removing clutter, putting out floral arrangements, etc. Then when the pictures swirl out into cyberspace, prancing across the carefully staged living room is “Fluffy,” the family poodle. I always wonder, “Is the dog part of the deal?”
So I guess my point is simple. If you are a potential buyer or seller, make certain you know exactly what is conveyed in the transaction. The devil (or dog) is in the details. Have your realtor spell it out. And please, don’t offer the family pet as a “buyer incentive.” There are better options.
What Happened to 100% Financing?! April 9, 2008
Posted by GregChaffin in : Financing, Market Reports, Real Estate , add a comment
The days of 100% financing are over for the time being. The exception is VA loans for our veterans. FHA is fast becoming the financing of choice for numerous borrowers for various reasons. FHA loans offer a low down payment and provide the security of a fixed payment. FHA is used when borrowers have limited funds to close requiring a minimum investment of only 3%.
There is a saying in the mortgage industry “No credit is good credit”. FHA is not a credit score driven program. Borrowers who are faced with credit limitations on conventional financing may find a solid alternative through FHA. Borrowers who have no credit established are able to obtain alternative credit sources for creditors who don’t report to the 3 major credit bureaus. This method makes it possible to “build” a credit file for potential borrowers.
Major benefits for borrowers seeking FHA financing are; New debt-to-income ratios of 31/43%. No reserves are required, Sellers in the transaction can contribute 6% towards the buyers closing cost, Borrowers down payment can be in the form of a gift letter from another person, or a gift swap program. What makes a gift swap program different, the seller contributes the down payment funds to a non profit organization that in turn make the funds available to the buyer for their down payment.
Ameridream, Nehemiah and Genisis are the organizations who make this possible for buyers.
The new loan limits for the West Texas area are $271,050.00. This means single family homes with a sales price of $279,181.00 will qualify for FHA financing. Singlewide and Doublewide manufactured homes are acceptable for FHA financing. Some restrictions apply see your lender for details.
Grag Chaffin, Coldwell Banker Mortgage Specialist
(432) 528-3192
http://gregchaffin.coldwellbankermortgage.com
Greg.Chaffin@mortgagefamily.com
HGTV is All the Rage! April 8, 2008
Posted by ScottAlexander in : Home Improvement, Real Estate , add a comment
One of the things that I have discovered since I became a Realtor is that everyone wants to talk about real estate. The general populace wants to talk about 3 things: how much their house is worth, what they can do to update their houses and make them more valuable, and home improvement shows. I’ve got to admit these things fascinate me as well. Like many homeowners, I lie awake at night hoping that property values go up—and that the tax appraiser doesn’t notice. Before remodeling our kitchen (which my wife can take the credit for) we thought about how the things we were doing affected our value. I’ll blog about that at a later date. But who would have thought that everyone would watch HGTV??? Not me.
Boy, was I wrong. I can tell when people are going to remodel, update, sell or contemplate doing any of the above when they mention HGTV. The shows are cool, lively, entertaining and informative. In addition to the TV program, the website is an incredible source of information. Not only can you read about the national mania, housing, but you can also read blogs about kitchens, bathrooms, fabric, and the like. As a “guy” I admit to being challenged in this area. But I’m learning. Click on the link below to see more of this incredible site. See you in the blogosphere.
Scott Alexander
(325) 450-5099
scott.alexander1@coldwellbanker.com
http://www.scottalexanderhomes.com
Going Green! April 8, 2008
Posted by ScottAlexander in : Real Estate , add a commentWhatever you believe about Global Warming, “going green” is going to save you money. That’s something that we can all relate to. Here are some thoughts about saving money by saving energy. Whether you do this to “reduce your carbon footprint” or to save money for that new Ping driver, the impact of these cost-saving choices is “green.”
1) Dim those lights. Use the new bulbs or use dimmers, which reduce the amount of energy used and doubles the life of an incandescent bulb.
2) Turn off that computer. Even in “sleep mode” it’s using power.
3) Put timer switches on your dishwasher . That way it goes on late at night when energy use is down.
4) Put insulation in the attic. Get an R-38 rating.
5) Buy a house with trees. Shade in the summer = cooler. The leaves go away in the winter= more sunlight and warmer.
6) Recycle.
7) Lucky # 7. If you aren’t using it, turn it off.
Scott Alexander
(325) 450-5099
scott.alexander1@coldwellbanker.com
http://www.scottalexanderhomes.com
Special Agent Man April 8, 2008
Posted by ScottAlexander in : Real Estate , add a commentRealtors are “special agents” who are employed by people to assist them in buying or selling of a home. Perhaps I’ve watched too many James Bond movies and the “special agent” tag appeals to me, but I have lost track of the number of times that I have run into buyers and sellers who do not understand the relationship between them and the real estate agent.
Let’s be candid. Realtors are employees of either sellers or purchasers of homes. Their duty is to get the best price, terms, and conditions for their client. It is easy for people to understand the agency relationship between the listing agent and the seller. After all, the seller is paying a commission to the agent if and when the house sells. So if you are a buyer and you call the agent listed on the sign (me included), remember that he/she works for the seller. The agent’s duty is to be fair and honest, but his interests must lie with the seller.
So what’s a buyer to do? Find an agent to represent you!! Employ someone to be your buyer’s agent. You are the personnel director of “Me, Inc.” and your job is to find someone who has your interests in mind. Interview agents. Find someone you are comfortable with and you trust. Sign a buyer’s representation agreement with him. Then put him to work. If it doesn’t work out, remember you are the boss. Give him the pink slip and find another.
Why do you need an agent? Because they know more than you do about real estate. If your agent doesn’t, you have hired badly. I did 61 transactions last year. I hope that I learned something.
Scott Alexander
(325) 450-5099
scott.alexander1@coldwellbanker.com
http://www.scottalexanderhomes.com
From Funeral To Foreclosure? April 7, 2008
Posted by CalebConner in : Insurance, Real Estate , add a comment
When you think of the word home, not house, but home, what do you feel? Comfort, safety, sanctuary and protection may come to mind. There are many emotional ties that people hold to their homes, and rightly so. It’s probably the largest purchase you will ever make, so it’s important that it be protected. Most people are aware they need homeowners insurance when they buy a house, and they may even call around to see if they can find the best deal.
For the most part, insurance is not complicated, but serves as a financial tool designed to transfer the risk of personal, bankrupt able catastrophes over to larger companies who have pooled insurer’s assets in order to pay claims. It’s a smart decision to have home insurance (just ask your lender). Here is a fun fact that you might not be aware of: statistically only 1 out of 100 homes will result in a total loss due to a fire. That is tragic, but not as tragic as the number of homes lost due to the death of a spouse.
Every year, 15 out of 100 homes are lost due to the death of a spouse. Gasp!!! This occurs, primarily, because the remaining spouse will not be able to pay the mortgage without the other spouse’s income. Life insurance is a simple solution for this problem and is one of the most overlooked areas of financial planning. Twenty or thirty year level term insurance is a critical component in any individual’s well-prepared financial plan and can be derived using a simple formula. Level term insurance is designed to replace lost income due to the death of a spouse, which for most people is around 10 times their income.
For example, suppose someone earns $40,000 per year and their spouse earns $35,000 a year. Their spouse will need $350,000 in life insurance and they will need $400,000 in life insurance. Not having level term insurance in place is frankly irresponsible and can leave your family in dire straits. It is important to talk with a trusted insurance agent and financial advisor to make sure that you have the coverage you and your family needs.
Death is inevitable, but steps can be taken now so that the loss of a loved one is the only loss suffered. Consult with your insurance and financial advisor today!
Caleb Conner
Farmers Insurance
325-227-9841
http://www.farmersagent.com/cconner1/index.htm
Posted by CalebConner in : Financing, Real Estate