May 2010 Summary:

Source: RBI

FHA mortgages have been very popular recently.  There are many reasons for this, including lower down payments, lots of options to obtain help from motivated sellers, and the ability for people with less than perfect credit to enjoy home ownership.

 Yesterday we received guidance from several lenders that FHA rules will be a-changing.  The guidelines will be tightened significantly in the coming weeks and months.  Here are some important changes that could affect your 2010 home purchase.

 *  The upfront Mortgage Insurance Premium (MIP) will be raised to 2.25% from 1.75%.  This will be effective in the Spring and the date is not known yet. 
Bottom line: you’ll pay an additional half a percent of your loan amount at settlement.

*  HUD has put in a minimum FICO of 580 for the 3.5% down payment.   This change will go into effect sometime in the summer.  Note, however, that most lenders have already raised the limit to a 620 minimum, so this is really not a big change, but there is a probability that we’ll see the minimimum FICO score with most lenders increase to 640.
Bottom line: It’s getting harder for anyone with less than pristine credit to qualify for a mortgage.

*  Seller concessions moving from 6% down to 3%.  This change will be posted sometime in February and will have an effective date in the early summer.
Bottom line note from Tom: as a buyer’s agent, this is HUGE!  I’ve had several cases over the past year of negotiating a 5-6% credit from the sellers.  If 3% is the new maximum, it’ll be harder to negotiate with the seller to lower the up-front cost of the home purchase.

 And don’t forget the TAX CREDITS that are set to expire in April!  So, to briefly recap why you need to MOVE NOW if you’re thinking of buying a new home in the coming year:

 Here’s what you can currently take advantage of:

 *  TAX CREDIT OF $6,500 to $8,000 for repeat *and* first time home buyers (if qualified).
*  The seller can pay up to 6% of the sales price of buyer’s closing costs. 
*  Upfront MIP is 1.75% (half a percent lower than it will be)
*  No minimum credit (FICO) score currently (with lenders usually requiring 620). 
*  FHA allows Non-Occupying co-signers for income only.  (FHA loans are the only loans that allow a relative to co-sign for the borrower and do not require the borrower to have any source of income.) 

I know this is a lot to digest, but I wanted to make sure all my friends have all the facts about the current market for real estate.

 Questions? Simply reply to this email or call us at 301.785.5889 today.  We’re here to help!

 (And thanks for making it all the way to the end of this important message!)

NAR FAQs About New Homebuyer Tax Credit Changes

It’s important to note the income and home purchase price limitations. 

Purchase Price: The credit is available for the purchase of principal homes costing $800,000 or less, period. 

Income: The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

We’ll post again when the extension is officially signed by the President.

Stay tuned!

According to the Real Estate Staging Association (RESA), marketed vacant and occupied homes once staged spent 85% and 89%, respectively, less time on the market than if they were unstaged.

Marketed vacant homes that were previously unstaged were not sold after 190 days on the market. Once staged, those homes only took 28 days to sell.

Marketed occupied homes that were previously unstaged were not sold after 57 days on the market. Once staged, those homes only took 6 days to sell.

Kittleman Realty Group provides free staging assistance to help our clients get the most money in the least amount of time.  We also have accredited professional stagers available to consult with you.

Just call 301-785-5889 and put us to work for you.  We’re here to help!

Sincerely,

Are you looking for the perfect home, but torn between communities?  Would it be helpful to put the two neighborhoods side by side and evaluate each on schools, household size, diversity, and more?

Here’s your answer!  FREE community reports and comparisons:
http://www.kittlemanrealty.com/community_report.asp#

Check it out right now – no registration necessary!

Remember – we’re here to help!

Chances are, as a seller, you want your home to sell quickly and for the best possible price. The key to making that happen is first, to price your home competitively, and then, make the best possible first impression on a potential buyer – realizing that in the current market, buyers have lots and lots of inventory to choose from.

Effective staging begins with the mindset that once your home is on the market, it’s no longer really “yours.”  Potential buyers want to walk in and picture themselves in your home.  They don’t want to see your family pictures, evidence of your travels and your hobbies, and certainly not your clutter. Anytime I begin the process of helping sellers stage a home, I recognize that they’ve probably spent several years decorating and filling it with their unique tastes in furniture and home décor to make it home their own. Sometimes staging requires undoing some of that. 

Keep in mind that staging starts at the street, if a buyer were to drive by your home, what would their first impression be? Make sure your landscaping is inviting. Paint and plants are key to curb appeal. Trim trees and shrubs so that would-be buyers can see your home clearly, and it looks like it has been well maintained.

As for your home’s interior: embrace the 3Ps – 2Fs Formula: plantings, paint, pictures, fixtures and furnishings.

The entrance to your home says a lot. Be sure to make this first impression a pleasant one. The proverbial “Welcome Mat” is a great start. As the buyer moves into the other areas of your home, the most important thing that you can do is to make sure that you’ve removed all clutter, and cleaned out your closets.

Especially if you live in a small home, you want to convey that there is plenty of room, and clutter conveys the opposite message.

This can mean taking down any personal photos, rearranging or removing furniture to increase the feel of spaciousness, or simply exchanging any unnecessary knick-knacks for candles, books, or other simple items that don’t draw too much attention to themselves. I’ve heard some of my previous clients describe living in a staged home as “hotel living.”

Staging is simply an act of accentuating the value of your home based on first impressions. 

While it might seem time consuming on the front end, chances are that a well-staged home will sell quicker and help you to get where you want to be much sooner.

Call 301.785.5889 or email me for a free, no hassle home staging consultation.  Many times, it’s a fresh set of eyes that can help to unlock the potential of your home and help get you sold and moving toward your goals.

We’re here to help!

But if you really want a proper pricing opinion, you need to bring in the experts.  People who know your home, have actually seen your home, and appreciate its uniqueness.  You need people in touch with national trends, but also people who understand the dynamics of the local market.  You need the Kittleman Realty Group.

If you want an honest, accurate evaluation of your home’s value in the current market, click on the link below, fill out the short form, and someone from our team will contact you shortly for a free, no obligation consultation.

FREE MARKET EVALUATION OF YOUR HOME (click here)

No hassles, no spam, no obligation.  We promise!

1. Has your income or financial situation improved? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving.
2. Are interest rates attractive? A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.
3. Are there reasons why you can’t remodel or add on? Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.
4. Have you outgrown your neighborhood? The neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for good. For example, you may have realized that you’d like to be closer to your job or live in a better school district.
5. Have you built substantial equity in your current home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five or more years, you may have significant, unrealized gains. 

Reprinted from REALTOR® Magazine Online (http://www.realtor.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2009. All rights reserved.