Are You Ready for the Spring Market?

What should you expect to see on the market as we transition into spring? I have information and advice that you might find useful.

Today, I’d like to talk about what we can expect in terms of the market now that we’re leaving winter behind and transitioning into spring. Spring is when the real estate market really starts to get busy. Sellers are occupied with preparing their homes for the market by painting, cleaning things out, emptying closets, making whatever repairs they need to, and freshening up the curb appeal. Buyers, on the other hand, are waiting for homes to start popping up on the MLS. However, there is a general shortage of inventory; pockets here and there have either almost none at all or plenty to offer. If you’re unsure where your location is in terms of inventory, give us a call and we can help you figure out what’s happening in your segment of the market.

"Things are starting to heat up this time of year."

For the last five and a half years, we’ve been doing “coming soon” listings. These allow you to prepare your home to list but also get some marketing done before you actually go live. We can give you more information on how you can use this to your advantage. For buyers looking for the coming soon inventory, be sure to ask our agents. We can now search for those listings in our MLS. Things are starting to heat up this time of year. You should expect to see multiple offers more and more, especially in the busy segments of the market. If you have any questions about this or would like more information on prepping your house for sale or what your home’s value is, please reach out to us. We’ll be glad to assist you.

Why You Should Put Job Changes on Hold During a Home Search

When it comes to the matter of job changes, it is best to avoid alterations in your employment status until after a home purchase is complete. Here’s my advice on this kind of situation.

Today I’d like to go over what you need to know about undergoing job changes while trying to obtain a mortgage.

First, what happens if you transfer from a being a W2 employee to being self-employed or to a 1099 status?

Especially when you take on a 1099 status, most lenders are going to want to see two years of your commission before they give you a loan.

I was recently having dinner with someone whose employer informed them that they would be changing positions from a W2 to a 1099 employee. On top of that, this person was in the middle of the home buying process. This presents a major issue.

My advice to this person was to wait until the home purchase was completed to change their job status.

When it comes to other kinds of job changes, like moving within a company to another W2 position, the situation is less critical. Nevertheless, it’s still important to speak to your lender about any such developments.

"Anything that could threaten or change your ability is something your lender needs to know about."

Keeping your lender in the loop on changes in your life is very important to the success of your home purchase. Anything that could threaten or change your ability is something your lender needs to know about.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

How to Hire a True Professional Real Estate Agent

How can you make sure that you hire the right real estate agent to guide you through our changing market? I’ll give you a few tips today.

How can you make sure you hire the right real estate agent? 

82% of homebuyers hire the first agent they talk to. Whether an agent was recommended or referred to you, you need to look at their online reviews to get a real idea of what it would be like to work with them. 

We have just over 200 reviews online. Just like when you buy merchandise, you need to check the reviews. We are selling a service, so you need to look at reviews and ask yourself, “What am I getting for my money?” 

Now, on the buyer side, you’re not paying the commission straight out; that’s usually paid by the seller. Still, it’s important that you hire a knowledgeable agent who will help you navigate the process. 

"82% of buyers hire the first agent they talk to, but are they getting the best value?"

We have a team of real estate professionals so when you work with us, you will always have support. If you call the office and you can’t get in touch with your real estate agent, one of our licensed real estate assistants or other agents will help you with whatever you need. 

It’s also important that you work with an agent who will get you good comps before you make an offer. We are seeing a lot more “For Sale By Owner” properties as the market changes. You need to know about comparable properties in the neighborhood so that you don’t pay more than you should for the home. 

When that happens, the home usually fails to appraise. If the seller doesn’t agree to change the purchase price, it could cost you a lot of time and money. From the home inspection to giving notice on a rental to setting up moving companies, there are a lot of costs that come with moving. 

Since there is so much that happens during a real estate transaction, it’s very important that you have professional assistance from a great real estate agent. If you have any questions or are interested in buying or selling a home, just give us a call or send us an email. My team and I would be happy to help you!

Are You Paying Cash? The Importance of Home Financing in Today's Market

Unless you're one of the lucky 10% of people who can buy a home with cash, you'll need to secure financing to buy your house. Here are some of the important details to keep in mind about finding the right home loan.

When you buy a house, financing plays an extremely important role, and you have a lot of options.

Getting financing for a home is also very different than it was in recent years when the joke was that if you could fog a mirror, you could get a home loan. Now, lenders want to see all your financial records and many other things.

There are many types of home loans, including USDA, VA, FHA, and conventional loans. For example, I recently had a client's parent call me wanting to help their kid out. They wanted their kid to be able to buy their next house without having to sell their previous home first, so we discussed the parents possibly paying down the old house and some other strategies.

Finding the best financing is just as important as finding the right house.

We're always happy to answer questions about financing for you.

There is also a lot of grant money available for first-time homebuyers. Some of it is worth taking the time to obtain, but you need to be aware of all the facts surrounding them. For instance, you might get a $5,000 grant but not realize that you have to pay it back when you sell the house. Some grants, on the other hand, are forgivable after five to 15 years.

We work with an assortment of lenders, and it's good to know who has certain programs available. Of course, we're happy to provide you with any and all information you need. For instance, there might be a doctor's loan available for someone who just got out of medical school and has an income that's not yet close to where it will be in a year or two. There are also a lot of programs for first-time homebuyers. We're also seeing first and second mortgages gain popularity again as well.

Remember that obtaining the best financing is just as important as finding the right house. Make sure you speak with an agent to walk you through the process and get direction to the right people to help you find the best option. 

If you have questions for us, don't hesitate to give us a call or send us an email. We'd love to help you with your real estate and financing needs!

How to Buy a Home With Propane and/or Oil Tanks

When you buy a home, you need to know everything about the propane and oil tanks. Who owns them? Have they been tested recently?

When buying a home in the Baltimore area, you need to be aware of propane tanks and oil tanks.

As a buyer, you need to know who owns these tanks and whether they've been tested. Always ask your agent who owns the tank; they can talk to the listing agent and find out.

If you have a smaller tank, it's likely just used for cooking. If you're looking at a home that uses propane for everything (cooking, hot water, and heat) then you'll likely have a much larger tank. In that case, it will likely be a 500- or 1,000-gallon tank. These tanks can either be above or below ground.

You really want to be careful with these tanks and be sure that the home seller owns them. If not, hopefully they'll have information about the company that owns the tanks. Make sure you clarify this at the settlement table.

Heating oil is used for hot water and heat. Usually, you'll have a 275-gallon tank in the basement or outside. Larger homes might even have an underground tank that's 500 or 1,000 gallons. I definitely recommend having these tanks tested. If they haven't been tested in the last five years, let the listing agent know that you wish to have them tested. You don't want to move into a house with contaminated dirt.

One thing you don't want is to move into a home with contaminated tanks.

I hope this information is helpful to you as you look for your next home. If you have any questions for us, don't hesitate to give us a call. We'd be happy to help.

Which Questions to Ask When House Hunting

If you're in the market for a home, you need to ask the right questions. Today we have a set of preliminary questions that every house hunter should be armed with.

When house hunting, there are a lot of questions you should ask in order the find the right home at the right price and in the right condition. First, you’ll want to have a consultation with your buyer's specialist to go through all the things that are important in terms of wants and needs in your next home—the needs are always the most important. We also want to drill down on the wants as well so that everyone is on the same page. Since there is never a truly perfect home, we want to focus on hitting all the needs. Buyers always have a laundry list of wants, but what are you willing to sacrifice because of pricing or inventory?

Be sure all your needs are covered before focusing on the wants.

When you see a home, one of the first things you should ask is how many days it has spent on the market. If it's a hot property that shows well and is priced appropriately, it could go in as quickly as one to three days. Sellers who start with their price too high and are forced to come down may be on the market for closer to six months. Then, you'll want to look at the updates and overall condition of the house. Look at the major mechanicals of the house, like the roof and whether there have been water or mold issues, for example. Ask your agent about the things that they run into on a regular basis. If you’d like a full list of the questions you should be asking as a Baltimore home buyer, reach out to us by phone or email and we'd be happy to set you up. We want to make sure the home buying process is a great one for you.

How Do the New TRID Guidelines Affect You?

There are many great Baltimore area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (410) 638-9555 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today, I want to touch on some big changes coming to the industry that were supposed to begin August 1.

 The new lending guidelines, or TRID, have been pushed back to October 3. Some forms are merging to be more consumer-friendly, and there is one form that is altogether new. These guidelines were put forward by the Consumer Financial Protection Bureau in order to make the closing process easier.

There will be a transition period once TRID goes into effect in October. The biggest changes are on the banking side, as there will be a lot more disclosure that will be done up front as you're going through the lending process. This will make it a bit easier on you, as you will not have a bunch of forms put in front of you that you might not understand.

These changes are all based on loan applications submitted after October 3. If you put a contract on a house after October 3, you'll have to abide by these new regulations, whereas if you write a contract application in late September, you will abide by current regulations. Once the changes go into effect you will have to get your documents to the settlement company at least three days prior to settlement, so there will no longer be last-minute document exchanges.

If you would like more information about these changes, or if you need real estate assistance of any kind, give us a call or shoot us a quick email. We would love to hear from you!

Important Financing Changes in 2015

Baltimore Real Estate Agent Lee Tessier of Keller Williams American Premier Realty talks home loans and financing updates for home buyer in the Baltimore area.

There are many great Baltimore area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (410) 638-9555 for a FREE home buying or selling consultation to answer any of your real estate questions.

This year we're going to see some significant changes in real estate financing, all of which could impact your buying power. These changes could greatly impact your Baltimore or Harford real estate transaction, so I'd like to share and explain to you what is going on and how these changes may begin to affect you. I've outlined a few below, but always feel free to reach out to me with further questions - these changes can sometimes be complicated. 

• FHA has Reduced their PMI by 0.5% on a Monthly Basis: This means that on a $200K home you could expect to pay about $80 less per month, which increases affordability with interest rates now falling in the low 3% range. However, rates could jump to 5% by the end of the year, which gives buyers another reason to act now instead of later. 
• Grants for First-Time Home Buyers: There are currently a lot more grants available for first-time home buyers. FHA, CDA, FHLB, USDA, and many more are available, but make sure you're using a good lender to get these loans. Be sure to contact us for access to some of our preferred vendors in the Baltimore or Harford area. 
• FHLB is back: Funding begins on January 20th and the income limits will be slightly higher this time. The grant is once again a maximum of $5,000, though $7,500 is available for firefighters, first responders, police officers, teachers and licensed health care workers.
  
• Loan limits for Fannie Mae and FHA have increased: Up to $517,500 from $494,500 in most areas, but some are even higher. That means lower down payments on some higher priced homes, which really helps with affordability.
  
• Fannie Mae has come back out with a 3% down purchase: There are two kinds, one for first time buyers that offers a reduced mortgage insurance premium. Be sure to ask us about the other.

There have been more other important developments in regards to financing, so please be sure to give us a call so you don't end up paying more for your home than you really have to. 

Also, if you have any further questions or would like to know more about how the Baltimore or Harford real estate market is shaping up, be sure to call or email us. We'd be glad to assist you.