Denise McCreary’s Home Buying Tip #1

Before you start your house hunting in earnest, the real estate professional with whom you are working likely will prequalify you to determine a price range you can afford.  From my point of view, as an Accredited Buyer’s Representative (ABR), prequalification is a necessary part of the home buying process that helps save you time and money.

Don’t be shy or withhold information about your income or credit status.  Real estate professionals are not trying to pry.  Rather, he or she must know all details related to your ability to obtain a mortgage.

By candidly discussing your financial situation, you’ll give your agent the information necessary to show you homes you can afford.  If you don’t open up, you are placing the real estate professional in the role of a tour guide, not someone who can help you find a home within your budget.  You’ll wind up wasting your time and that of the seller.

Once you have signed a contract to purchase a home, you must choose a lending institution or mortgage company from which to obtain your home loan.  Your loan application will request financial data including your place of employment, assets, and liabilities (including recurring debts such as credit card bills and car payments).

Here are two important tips on loan qualification:

1. Do not borrow the down payment without disclosing the loan, submit fake letters-of-credit or gift letters, or make secret financial arrangements.
2. Accurately list your income and assets, all debts, and the approximate amounts you owe.

You’ll most likely be charged a credit report fee by the lender, which will cover the cost of having your credit history examined.  Credit reporting agencies compile credit reports on consumers, including bill payment history, as well as whether you have been sued or filed for bankruptcy among other information.

Federal credit reporting laws do not give you the right to inspect the actual credit report at the reporting agency or to receive an exact duplicate of the report.  But, you are entitled to a summary containing the sources of the report’s information.

If your ability to obtain a mortgage is adversely affected by the credit report, you have the right to challenge its accuracy and seek corrections.

The credit report is part of the information the lender uses to determine if you qualify for a loan.  It is not a mechanism to prevent you from buying.  Remember, lenders want to make loans, not turn them down.

Let me assist you in putting it all together.  Remember, now is the time to buy a home in Tucson, Arizona!   So whether you are in the market for your first home or your fifth, a modest dwelling, or a luxury home, let me help you take advantage of this very special time.

Denise McCreary

September Sets A Record In Tucson Real Estate Sales

September of 2008 has set a record increase in sales over August since 1996! 

Historically September is a slower month than August which has been the case since 1996.  This year there was an increase in sales by 3.43% over August which affirms that the Tucson market is continuing to stabilize.

Now is a good time to buy a home.

• Conditions are ideal for buyers.  Prices have moderated, and interest rates are hovering near 40-year lows.
• Current market conditions won’t last long.  NAR (National Association of Realtors) research shows that prices are beginning to stabilize and interest rates are creeping up.  A modest increase in property values is expected in 2009.
• The new first-time homebuyer tax credit and the availability of a number of attractive and safe mortgage products provide additional reasons for buyers to get off the fence and into the Tucson real estate market.

The market is strong and getting stronger.

• The new homebuyer tax credit contained in the new Housing and Economic Recovery Act of 2008 likely will bring about 2.5 million first-time homebuyers into the market between now and the middle of next year.
• The Emergency Economic Stability Act enacted on October 3, 2008 will help to improve credit markets, and NAR predicts that as a result home prices will pick up in 2009.
• Home ownership continues to be a wise investment.  FHA market share is expected to triple over the next 3 years, from an astimated 4 per cent in 2007 to 12 per cent in 2009. 

Although active listings have increased August to September by a little over 100, the number has significantly decreased from 9,190 in September 2007 to 7,858 in September 2008.

One interesting statistic to note is the differences in days on market (DOM).  In the central, east and south areas, DOM averages 78.  In the north and northeast areas of Tucson, average DOM is 103.  The statistics reveal much lower sales in the $1,000,000 and up luxury homes range.  So to reiterate the above, now is a good time to buy a luxury home.

For the full Monthly Statistical Digest from the Tucson Association of Realtors MLS, click here.

Denise McCreary

Denise McCreary’s Home Selling Tips #1

In today’s sluggish real estate market sellers must rise above average to attract buyers.  Here are a few ideas to help prepare your home for the market.

1. Declutter! Go through every room in the house with a large trash can at your side.  Separate what will be donated from what gets discarded.  This process is especially needed in bathrooms and kitchens.  Clear kitchen countertops of cookbooks, papers, knickknacks, leaving only a few necessary (like a spoon rest) items in sight.  If you can’t completely clear bathroom countertops, organize and place whatever is to be left on a tray.  You will appreciate this process when it comes time to move.

2. Have your home inspected before it goes up for sale.  Hire an ASHI (American Society of Home Inspectors) certified inspector.  Click here to find one in your area.  Be proactive and address needed repairs and recommendations.  This will prove to be an effective marketing tool, well worth the cost of the inspection.  It will also help to speed up the closing date, saving you money in the long run.

3. Do the obvious. If the carpet in your home is dated and worn, replace it!  If there are drywall or stucco cracks in need of repair, do it!  These things will only be distractions to a buyer, possibly turning them away from making an offer.  Remember competition is stiff.

4. Remove personal items.  Try to make your home show like a model.  Put away family photos and try to take a minimalist approach to decorating.  Invest in low cost designer touches like pillows and throws, vases and artificial floral arrangements.

5. Pastels are out-Nuetrals are in.   Use paint color to promote warmth and freshness to update and make your home more appealing.

6. What’s your curb appeal?  Clean up the outside of your home by trimming trees and shrubs, removing weeds, and washing windows.

Taking these steps will help to set your home apart and reward you with a shorter market time, a hassle-free inspection period, and most importantly, higher net proceeds on the sale.  If your property is in the luxury home category, I suggest hiring a staging company enhance your home’s market presence. 

Denise McCreary