Archive for the 'timing the real estate market' category

If you've been on the fence about buying a home, here's some news to consider.

The National Association of REALTORS® has just reported the news that the Federal Housing Authority (FHA) is set to increase fees on FHA loans significantly, effective April 1st.  From the article:

The agency is raising its fees in an effort to try to recoup some of its depleted reserves*, which suffered from the rising number of home owners who defaulted on their mortgages. The agency also says it’s raising fees to try to encourage the return of more private capital to the market. 

FHA loans allow for smaller down payments, as low as 3.5 percent compared to traditional loans, and they often have less stringent credit requirements, which have made them soar in popularity in recent years. (The agency insures loans but doesn’t issue them.) About 40 percent of all new mortgages for home purchases in 2010 were FHA-backed mortgages. 

In particular, FHA will increase two fees that borrowers pay. Starting April 1, it will increase its annual mortgage insurance premium for loans under $625,500,  bringing the total cost from 1.15 percent of the loan amount to 1.25 percent. Starting June 1, larger loan premiums will see an increase of 0.35 percent of a percentage point, bringing the total premium costs up to 1.5 percent of the loan amount, The New York Times reports. 

FHA also announced it will raise a fee for the upfront mortgage premium by 0.75 of a percentage point, which will now total 1.75 percent of the loan amount.

So what does this mean for a typical borrower?  According to The New York Times:

... a borrower with a 3.5 percent down payment with a mortgage of $193,000 can expect to pay an upfront mortgage premium alone of $3,377, compared to the prior $1,930. That can be rolled into the mortgage.

From the example, it's plain to see that these rate hikes will have an impact on how much home you can afford.  But if you secure a mortgage before April 1st, you can avoid these new fees (and save yourself some money).

In addition, these rate hikes will also apply to anyone with a current FHA loan who refinances.  So if you've been considering refinancing, now would also be a good time, before these rate increases go into effect.

Remember, you can search all MA homes for sale right here from my site.  Registration is free, and you are never obligated to buy a home.  And of course, you can take advantage of my Exclusive Buyer Guarantee and save AT LEAST $10,000 on any home you purchase through me.

Recently I had the privilege of representing the sellers of a nice Dutch Colonial Home on a quiet side street in Medford MA.  The owners had done some updates and enjoyed the home but were looking to move further out into the suburbs to a bigger house and start a family.  A first time homebuyer purchased the home and is now busy putting his own stamp on it.

My firm - RE/MAX Results - has represented hundreds upon hundreds of home buyers and home sellers in Medford MA.  Whether you are buying a home or selling a home, I can help you.  If you're thinking of selling your Medford home, you can request a Free, No Obligation Market Analysis.

Buyers can search all Medford MA Homes For Sale, or all Medford MA Condos For Sale.  It's important to note that I am a Certified Buyer Representative (CBR), so call me when you're ready to start seeing homes.

Whatever your needs, I look forward to working with you to make your real estate dreams a reality.

I'll be holding an Open House this Sunday, July 31, from 1:00 pm to 3:00 pm at 88 Stonegate Road in Chelmsford.  This is a fantastic detached luxury townhome located in the desirable Stonegate Community.  It is 4 bedrooms, 2.5 baths, and almost 2,300 sq feet of finished living area with lots of hardwood and a garage.

You can find much more info and more than a dozen photos by clicking HERE.  If you're a buyer looking for a condo or townhouse in Chelmsford, you owe it to yourself to come see this beautiful home.

Of course, you can find every condo or townhouse for sale in Chelmsford (from all real estate companies) by visiting my Chelmsford MA Condos For Sale page.

But if you're looking for single family homes for sale in Chelmsford, check out my Chelmsford MA Homes For Sale page instead.

Buyers, don't forget to look at my Exclusive Buyer Guarantee, available when you hire me as your Buyer Agent.

I look forward to seeing you at the Open House.

PS  If you are thinking of selling your Chelmsford MA home, I'm happy to provide you with a Free, No Obligation Market Analysis so you can determine your home's value in today's market.  Click Here and I'll be happy to help you with that.

If you're a home buyer in MA, you should definitely enlist the services of a Buyer Agent to help you find your home.  Over the last several years, Buyer Agency has exploded in MA.  I've written about the basics of why it is important to use a Buyer Agent HERE.

However, it is important to note that not every agent who practices Buyer Agency in MA has been properly trained to do so.  In fact, most haven't.  So how do you, the consumer, ensure that you are hiring a professional that knows what he or she is doing?

Happily, there is an answer.  You can enlist the services of a Certified Buyer Representative, or CBR.  From the CBR WEBSITE:

Why Should I Be Sure My Buyer Agent Is A Certified Buyer Representative?

A recent survey completed by the National Association of Realtors shows that over 40% of the buyers are now represented in the real estate transaction. In some states, the figure is over 80%. Considering the rapid growth of buyer agency, it is imperative that a buyer find an agent who has been trained to professionally represent them in the transaction.

That, specifically, is the reason the certification mark CBR® Certified Buyer Representative was created. Issued in 1993 by the US Patent and Trademark Office, this mark allows consumers to identify a buyer agent who has been trained and who possesses the skills necessary to represent purchasers in a legal, ethical, and non-adversarial fashion.

Those agents who have acquired this designation have demonstrated their commitment to full client level service to the buyer. They are armed with forms, checklists, and disclosure documents to perform a level of diligence in the real estate transaction that is unparalleled in the industry.

When deciding on an agent to represent you, ask about their credentials and training. Many real estate agents attempt to practice buyer agency without acquiring the skills necessary to perform professional representation. The CBR designation assures you that the agent you hire has been trained and will perform to the level of the competent professional, working in your best interest to meet your personal needs in your next real estate transaction.

I am happy to say that I attained the CBR designation years ago, and have helped many home buyers since that time to find their perfect home.  Nationwide, less than 1% of all REALTORs have achieved this designation, so it's a pretty elite group that I am proud to be a part of. 

So please make sure you do your homework before hiring an agent to help you find a home in MA, and hire a CBR.  You'll be very happy you did.

Remember the $10,000 First-Time Home Buyer Tax Credit?  Sure you do.  In the bad old days of, oh, say, 2009-2010, it was the biggest incentive for many people to get off the fence and enter the wonderful world of home ownership.  I remember the panic many felt in the countdown to the expiration of the tax credit last June, and it wasn't just buyers that were panicking.  There was a tremendous level of fear in the agent community as to what would happen to the real estate market once the tax credit went away.

Personally, I never understood that.  Even at the height of the "tax credit hysteria", I could give my buyer clients at least a half-dozen reasons to buy other than $10,000 in their pocket.  To give one of several examples, for most people in MA, the mortgage interest deduction alone would easily exceed $10,000 per year, and that's year after year, not just one time.

The funny thing is, a few years before the tax credit, I had created a program for my buyer clients to save them at least $10,000 on any home they bought through me.  And I still offer that program today.  In fact, you can find out about it HERE.

So, if you are looking to buy a home in MA, contact me today.  Or, if you know somebody else who is, tell them to get in touch with me.  There's no obligation, and you'll not only hire an experienced Buyer's Agent, and get first-class service (at no cost to you - my services are paid by the seller from the proceeds of the sale), you'll even save a few bucks too.

The government first-time homebuyer tax credit may be history, but my buyer clients are still saving big money today.  And unlike the government tax credit, you don't have to be a first-time homebuyer.  So give me a call, and let's find you that dream home.