What is a Home Warranty? Should I buy one?

What is a Home Warranty?

A home warranty is a service contract that helps protect against unexpected repairs or replacements . There are different home warranty programs. Make sure you check which systems and items are covered. Typically a home warranty costs around $450. When you purchase a home warranty for yourself, you are purchasing a warranty for the listing period (up to a year) and also 1 year coverage for the buyer. The fee is owed only when the property is sold. If your property does not sell, nothing is owed.

Should I Buy a Home Warranty?

A home warranty is not required, but  I would recommend purchasing one. It can help cut down on unexpected costs. Also, buyers are  increasingly requesting sellers to purchase them a home warranty. You might as well protect yourself during the listing contract at no additional cost. Purchasing a home warranty can also help with potential  issues the buyer may have and may help in negotiations. For example if the inspector says the hot water system is towards the end of its life , a warranty may help a buyer feel more confident about purchasing your home knowing that if it goes out, they will be protected.

 

Whats $100 a month worth to you?

Lately I was researching if you put more money towards your mortgage payment, how beneficial is it?

If you have a 30 year mortgage of $200,000 with 5% interest and you put $100 more a month towards your payment. You will wipe 5 years off your mortgage, turning your 30 year morgage into a 25 year mortgage. Also you will pay $37,000 less in interest.

Now I was curious, how much more do you have to pay to wipe 10 years off your mortgage? With the same scenario, 30 year $200,000 mortgage and 5% interest. If you just put an extra $250 more towards your payment a month, you will turn your 30 year mortgage into a 20 year mortgage. Not to mention you will save $70,000 in interest as well.

It is amazing what $100 or $250 more a month towards you mortgage can do.

It’s a Great Time to Buy in Hood River

Recently I read an article from Kiplinger’s Personal Finance called “Six Good Reasons to Buy a Home Now”. Here are the 6 reasons the article gives:
1. Prices have nearly hit bottom
2. Houses are affordable again
3. Mortgage Rates won’t go any lower
4. It’s a buyer’s market
5. You may find a distressed property
6. Homeownership is still attractive
I have to agree with the article, all 6 reasons are a great reason to buy in Hood River. I feel the prices are stabilizing here. Just the other day I saw a house on the market that sold last year and it was listed for what the owner’s bought it at. It went pending, it hasn’t closed yet (so we don’t know what the offer price was), but it went pending right away that chances of it selling near or at sales price are high.
Hood River has also always had a higher than average starter price home. We have seen the lower end price range fall a little making Hood River more affordable than it was before.
Mortgage rates are great. Most articles I have read about interest rates predict them to go up by year end, which is a great reason to buy now. With prices stabilizing and interest rates predicted to go up it will make buying a home more expensive if you wait.
Many people still believe in homeownership and Hood River is a great area to call your home. Contact us if you would like a list of properties for sale.

Common Mistakes Sellers Make

In this market there is no room for mistakes. I recently read an article that listed some of the worst mistakes sellers make and I would have to agree with them as well. Below is the article, along with my comments (in red)

Avoid Sellers’ Worst Mistakes
In a buyer’s market, sellers have little room for error when putting their home on the market or they risk having their property linger. Sellers should take caution to avoid the following common traps, according to a recent article at MSNBC.com.

1. Overpricing the home. Home values have dropped considerably since its peak in 2006, but sellers still are often tempted to list a home based on what they paid for it. Eventually they realize their error and have to reduce their price, sometimes several times. In the past month, 23 percent of homes listed for sale on Zillow have reduced their price. Your home receives the most activity when you first list it. Reducing the price does not have the same effect/activity as when it first comes on the market. Even if you were able to find a foolish buyer to overpay for your house, if a loan is involved the home would still have to appraise. As a seller you need detach yourself from the house, and not take into account how much you paid, what improvements you have made, and what you need/want to net in the end. It is important to price it right in the beginning. Your real estate agent plays an important role in helping you price your home without any emotional involvement.

2. Relying too much on just comps. Size up your competition currently on the market, not just the homes that have already sold. Evaluate homes with a listing price similar to yours to see how well yours stacks up against the competitions and how you can differentiate. Comparables are important to look at, but what is currently on the market is just as important. The fact is comparables are the past.

3. Failing to take into account the home’s web appeal. Photos are key when marketing a home online. Be sure to include lots of high-resolution photos of the interior, including of the areas in a home that buyers most care about, such as kitchen, living spaces, and bathrooms, experts say. Photos are very important in marketing your property. Many times buyers will first learn about your home through the internet, your photos will be the buyer’s first impression. I have heard people say when a buyer looks at photos on the internet that is when their first showing takes place. You want to impress them and make them actually pick up phone and call to schedule a showing.

4. Hovering during showings. Sellers certainly shouldn’t be home for showings, but as a seller’s agent, either should you. Lurking sellers or seller agents may make buyers nervous. Other real estate agents often want privacy with their buyers so they can gather true feedback about the house. I have seen it before when the owners or tenants are around during a showing making buyer hesitant to truly view the property. Buyers are hesitant to voice their opinion and they are hesitant or won’t open doors/closets because they feel like they are invading their privacy, which may cause them to miss out on important features.

Many of these mistakes can be avoided by picking the right listing agent. A good listing agent will advise you on price, take good photos, and advise you what actions you may take as a seller that may deter buyers. Our goal as your real estate agent is to net you highest price possible. Go to our website www.LiveinHoodRiver.com to find a listing agent that can help you sell your home.  Find out why you should list with Don Nunamaker, Realtors.

Source

Obtaining a Real Estate Mortgage

Recently I read an article on realtor.org and found the following paragraphs very interesting:

“Getting a mortgage in today’s lending market isn’t easy and can be a complicated, stressful process for borrowers, according to findings from a national survey by MortgageMatch.com of 1,000 adults.

About 70 percent of Americans say access to affordable mortgages is a serious problem, and that understanding the mortgage process and lenders’ requirements is even more difficult and stressful than getting the mortgage itself or even negotiating the sale price on the home.

Nearly 80 percent of recent home buyers, particularly those earning $50,000 a year or more, say getting a mortgage was much more difficult than they had expected. And nearly a quarter of home buyers said waiting to hear if they were approved for a mortgage was even more stressful than waiting to hear if they landed a job. “

Many of our clients in the Hood River real estate market have said they found the mortgage loan process confusing as well. Nowadays lenders have to give out so many required disclosures designed to help protect the consumer, it can be overwhelming trying to understand all these forms and documents, which is why it is important when buying a home to use a lender you can trust. If you don’t know a lender you can trust ask your real estate agent which lenders they would refer you to. There are many great lenders that work in the Hood River real estate market. Contact us, we would be glad to help you in your search for a home in the Hood River or The Columbia Gorge area.

Year End Real Estate Statistics

Many have wondered is the housing market really improving. Is 2011 going to look better or worst? In Hood River County residential sales went up in 2010 compared to 2009, and we almost sold the exact amount of houses in 2008. In 2010 203 homes were sold in Hood River County (204 in 2008!). We are still down from 2004-2007, but I see an optimistic future. The average days on market decreased, 156 days in 2009 and 122 days in 2010. The number of homes sold increased, 178 homes sold in 2009 and 203 in 2010. The Hood River housing market looks to be improving!