Listings 101: Breaking Down Selling Terminology

First-time home-buyers are usually the clients that have the most questions, but being on the other end of a sale can be challenging as well. Often misunderstood are the different options for selling a home.

While many assume consumers simply tell their agents when they’re ready to sell, and then the home is listed on the market, there are several terms that you should know to ensure you are listing correctly.

Exclusive Right to Sell
With this contract, the seller cannot list the property with any other agent and must pay the agent’s commission even if someone else finds a buyer. Even if a friend of yours decides to buy your home, the listing agent will still earn the sales commission. If another cooperating agent is involved, the commission is typically split between the agents. The normal contract length for this is about three to four months.

Open Listing
Similar in many respects to a For Sale by Owner listing, this means you are willing to work with real estate agents who want to show the home in an attempt to earn a commission. The difference is there is no exclusivity and you can give the listing to as many agents as you desire. No commission is owed if you find a buyer on your own, without any agent’s help. Agents often shy away from this type of listing because the seller can either sell the home alone or withdraw the listing without notice, and it’s not worth their time and effort unless they see the property as being unique.

Multiple Listing
When you sell your home with an agent, it will be listed on a free multiple listing service that distributes your property information, photos and videos to other agents. Most MLS listings are also available on the internet, allowing homebuyers to research what’s for sale on their own—although these are typically not as accurate or regularly updated. MLS members can submit exclusive agency and exclusive right to sell listings to the local MLS.

One-Time Show
This is similar to an open listing and is often used by real estate agents who are showing a For Sale by Owner to one of their clients. The home seller signs the agreement, which identifies the potential buyer and guarantees the agent a commission should that buyer purchase the home. This keeps the two parties from negotiating later and trying to avoid paying the agent’s commission. As with an open listing, agents will not be spending money on marketing your home and it will not be placed in the Multiple Listing System.

Pocket Listing
If you are a high-profile seller who doesn’t want to list on the MLS, this is a private way to get your home seen. Agents will show the home only to those who they work directly with and who are good candidates to buy.

Buying a Home When Your Spouse Has Poor Credit

Buying a home on two incomes can be difficult enough, and it can be even more demanding if one spouse has poor credit.

A poor credit score can make it difficult to qualify for a mortgage and can lead to a higher interest rate on a home loan. A spouse with poor credit could be left off the loan application entirely, requiring the other person to have a high credit score and a high enough income to afford the loan on their own.

If a spouse with poor credit does qualify for a loan, the lender could require a bigger down payment on the house.

FHA loans, for example, which are backed by the federal government, require a 10 percent down payment with a FICO credit score lower than 580, while a credit score above 580 only requires a 3.5 percent down payment.

A credit score is just part of the financial background a lender looks into. Income and a debt-to-income ratio are also considered, though a high income by itself won’t overcome a poor credit score.

Credit scores range from 500 to 850. A low score of 650 can be a predictor of making late loan payments, while a 550 score means you’re not likely to pay at all.

A couple’s credit scores aren’t averaged together in a home loan application. Lenders will use the lower of the two credit scores. If a husband has a 620 score and the wife has 700, then the lower score will be used in the mortgage application and an interest rate of three-eighths to half a point higher will be charged.

Options for those with poor credit

There are ways to get around one spouse having a low credit score. In the above example, the wife with the 700 credit score can get a home loan if she qualifies on her own.

Both spouses should be listed on the home’s title or deed, but only she would be listed as the borrower. The husband’s name could be added to the deed later when his credit score improves.

Buying a home on one income, however, can be difficult. The best solution is to improve the lower credit score, something that should be done months before applying for a loan.

Just a 10-point credit score improvement by paying down credit cards could be enough to get a better interest rate and can be done quickly.

Even minor credit improvements can take 30 days or more to fix, such as closing all but one credit card. Most fixes can take three to four months to show up on a credit report, so repairs should be made before applying for a loan.

Aaron Crowe is a freelance journalist who specializes in personal finance topics.

Factors to Consider When Shopping for a Neighborhood

Shopping for a home is just one part of the home-buying process. Finding the right neighborhood can be just as extensive as a home search, and can be more important, in some ways.

Some characteristics of a neighborhood can make a home a much better place to live in. Here are some to look for:

Follow Your Demographics
A single professional might enjoy a downtown condo with a busy nightlife than a family with small children would. Start your home search by looking for a neighborhood that fits your lifestyle and where you are in life.

Do you want a mix of ages in an older neighborhood, or are you nearing retirement and want to live in an area around more people your age?

Well-Maintained
Are homeowners busy on the weekend taking care of their yards? Do the homes look properly maintained from the outside, with no trash or weeds blocking entrances? Do the homes look like they’re in good shape (at least from the outside) on first inspection?

The more people in a neighborhood who take pride in their homes, the more likely they are to keep things looking good.

Outdoor Activities
Does the area have sidewalks for walking and bike paths? Are you near parks or other recreation areas, such as swim clubs and golf courses, so you can easily get outside?

The closer outdoor activities are, the more likely you are to use them.

Shopping and Restaurants
If good restaurants and at least one grocery store and other types of stores are within walking distance of your neighborhood, you’ll probably enjoy living there more.

The same goes for movie theaters, bars and a post office. They’re conveniences you’ll enjoy, but be aware that they could attract visitors and more traffic.

Low Crime
Check with the police department for the crime rate in a neighborhood you’re considering. If crime rates are dropping, it can be a sign that an area’s moving up and that police and residents are doing something about it.

Top Schools
If you have children, or might in the next few years, then a great school that’s nearby is a top selling point.

Even if you don’t plan on having children, a home in an excellent school district can be a strong value-add if you ever sell your home. Good schools often help property values rise.

Whatever your needs are in a home, start your home search by looking for neighborhoods that suit your lifestyle. From there, finding a home should be a lot easier.

I hope you found this helpful. Contact me for more home and real estate insights and info.

Top Places to Purchase a Winter Home

Winter is here, the holidays are approaching and for those of us in the market for a winter home, the research has begun. Looking for a second home is no easy undertaking and shouldn't be taken lightly. Chances are you want to find a place that isn't close to where you currently live, which translates to even more research than you likely did when you bought that house in your hometown or your college town.

With that in mind, RewardExpert turned to data and compiled a list of the best areas in the country to purchase a winter home. Each of these places was judged on the following criteria: Real Estate and Economy, Attractions and Amenities, Transportation Infrastructure, and Hazards to Property and Person.

Broken up by geographical region, here are the best places to buy a winter home:

Northeast: Finger Lakes Region/Schuyler County, N.Y.

• The Finger Lakes Region scored extremely high marks for its large number of breweries, wineries and fine restaurants.
• If you like cities, this area has a wealth of beautiful architecture, but its real gem is the surrounding nature. Popular activities include fishing, boating and hiking.

South Atlantic: Franklin County/Apalachicola, Fla.

• If you want a winter getaway in the sun, there aren't many better options than Franklin County, the least populated county in Florida.
• This area gives residents that "Old Florida" experience without breaking your budget. Although real estate prices have increased 10 percent over the past 12 months, Franklin County is still far more affordable than much of Florida.

Midwest: Houghton County and City, Mich.

• Located on the Upper Peninsula of Michigan, Houghton County is a world away from Detroit and Grand Rapids. If exciting winter activities like snowmobiling and skiing are your cup of tea, this may be the area for you.
• Houghton is one of the snowiest cities in all of the U.S., and each February the city holds a Winter Carnival.

South Central: Taos, N.M.

• Another sunny getaway, Taos is a bit more expensive than most other towns on this list because of the flourishing tourism industry in the surrounding area.
• Aside from unique activities like hot air ballooning, Taos also offers a vibrant arts scene.

Mountain West: Grand County/Moab, Utah

• Grand County and the city of Moab have just recently exploded onto the scene. Vacation homes in this area are red-hot and the property values have unsurprisingly jumped up 11.4 percent in the last year.
• With thousands of square miles of public land to rock climb, mountain bike and hike, there is no more perfect area for the outdoor lover.

Pacific West: Hood River and Wasco Counties/Hood River-The Dalles, Ore.

• Tied for the Pacific West region are Hood River and Wasco Counties, both of which scored high marks for affordability. Homes here go for less than two-thirds the price of those in neighboring Multnomah County.
• Wasco County is noted for its "coolness" and surrounding wineries and ski attractions.

For the comprehensive list and full breakdown of ratings, visit RewardExpert.

Posted on Dec 7 2017 - 3:07pm by Jameson Doris

Sending lots of love to all of the families affected by this devastating fire. Grateful for the brave fire fighters and wishing them all the best of luck, without injury, in putting it out. Keeping all in my thoughts and prayers during this very difficult and uncertain time.

https://www.npr.org/sections/thetwo-way/2017/12/11/569801554/thomas-fire-5th-largest-in-modern-california-history-shows-few-signs-of-slowing?utm_source=facebook.com&utm_medium=social&utm_campaign=npr&utm_term=nprnews&utm_content=2040

Finding the Best Interest Rate on a Mortgage

Mortgage brokers and other real estate experts can often help homebuyers find the best interest rate on a mortgage that fits their needs. That doesn’t mean borrowers shouldn’t shop around be well informed before talking to an expert.

Here are a few things consumers can do to get the best interest rate on a mortgage:

Fixed vs. adjustable
Fixed- and adjustable-rate mortgages are the two most common forms of mortgages. A fixed rate is set for the life of a loan, usually 30 years, and the mortgage payment is the same every month.

An adjustable-rate mortgage, or ARM, has an interest rate that changes after a certain number of years. It can remain at one rate for a year, then can change based on an interest rate index chosen by your bank. An ARM can also be steady for five to 10 years, and then adjust annually.

ARMs usually have lower interest rates than fixed mortgages, and can help people afford homes if they only plan to live in them for a few years.

Pay points
Paying what’s called a “point” through an upfront fee can lower the interest rate on a home loan. One point equals 1 percent of the total mortgage amount, and lowers the interest rate by a fixed amount, usually 0.125 percent.

If you plan on staying in a home for a long time, paying points can save you money. You just need to do the math and determine how many months or years in savings it will take you to recoup the amount you paid in points.

Qualify for loan programs
Some loan programs have lower interest rates for eligible borrowers. These include VA loans for military veterans, FHA loans approved by the federal government, USDA loans and other government programs for first-time homebuyers.

If the interest rates aren’t as low as you’re hoping for, these programs can still offer savings with low down payment requirements, protections if you fall behind on a mortgage, and allow low credit scores to qualify.

Improve your credit
Having a high credit score is one of the best things you can do to qualify for a better interest rate.

In the months before applying for a home loan, pay your bills on time and pay your credit card balances in full. Also check your credit report for errors and dispute them.

Interested in more real estate tips? Contact me today!

Thinking About Selling Your Home During The Holidays?

We are here for all of your real estate needs. Inventory is at an all time low. It is very much a sellers market right now. We have many buyers looking and there are not enough properties to show them. Don't let the fact that we are in the holiday season discourage you, if you are thinking about selling now. Please do not hesitate to contact us to find out how we can get your home sold today. It is an honor and privilege to serve you.

Santa Claus’ Home Jumps in Value

Santa Claus' North Pole home got a face lift! Thanks in large part to a 2013 remodel and updated Zillow listing, the jolly guy's home increased 6.5 percent in value to $710,559 compared to last year's Zestimate.

The 2,500-square-foot home was added to the site last December; the listing has since been updated with home facts and new photos. This has contributed to a dramatic increase in price.

To calculate the Zestimate—the site's price estimate for homes that aren't for sale—Zillow looked at similar homes in remote locations and applied a "Santa premium," according to Zillow. The company also predicts that Santa's home, which has never been sold, will rise another 7 percent over the course of next year.

"The real estate market across the country is booming, so it's no surprise that one of the most valuable residential properties in the Arctic rose almost 7 percent since last year," says Zillow CMO Jeremy Wacksman.

The 25-acre lot that Santa's home sits upon features a toy workshop, stables for reindeer and a garage space for sleighs. Built in the 1800s, the house now features modern comforts thanks to a remodel in 2013.

"Santa is synonymous with the holiday season," says interior designer Marian Bright, who oversaw the remodel. "He has inspired people around the world to change their home decor for at least one month out of the year. How could I say no to a challenge like that?"

The three-bedroom, two-bath cabin features a massive river-rock fireplace and a fully-equipped kitchen (with a hot cocoa tap). Take a look at some photos of the interior below:

Source: Zillow

For more information, please visit www.zillow.com.

Posted on Nov 28 2017 - 4:17pm by Jameson Doris

5 Tips to Reduce Your Home’s Holiday Energy Consumption

It’s the most wonderful time of the year! The smell of pine and cinnamon, cookies baking in the oven, lights twinkling inside and outside your home, and…

An enormous electric bill. Ouch.

The holidays in America are known for being a little over the top, and excessive energy consumption from lights, decorations and appliances are no exception. While it may be exciting to make your house light up like a beacon that can be seen from outer space, it’s not actually that great for your wallet (or the planet, for that matter).

If you’re thinking about having a greener holiday season, try the following tips:

Use Better Lights
Based on a report from WIRED, Americans spend an extra $233 million on utility bills each year because of holiday lights. To keep your energy consumption in check this season, try LED or energy-efficient bulbs instead of traditional ones. Incandescent lights draw up to 90 percent more watts than LED lights, so switching to LED strands—or going with wreaths, bows and lawn ornaments that don’t use energy—can save you a ton.

Use Smart Plugs
It’s easy to forget to unplug decorations and lights, but doing so can make a real ding in your monthly budget. That’s where smart plugs come in handy. Smart plugs monitor your energy usage and break it down into an easy report each month so that you know exactly how much energy your holiday decorations consume.

Some smart plugs can also be programmed to run on a timer or manually from an app on your smart device. When you’re toasty in bed, you can turn off your lights to save on energy. Plus, if you’re away on vacation, you can pull a "Home Alone" and make it look like you’re home, which can help deter holiday theft.

Cook Wisely and in Batches
Holiday cooking is one of the best parts of the season. (Hello, pumpkin pie.) But, firing up the oven and stove accounts for 4.5 percent of your home’s energy consumption, and that number jumps to 15 percent if you add in the energy your fridge and other kitchen appliances consume. This season, when you’re making lots of cookies, roasts and goodies, remember to bake in batches so you don’t waste energy heating and re-heating the oven.

Also, use appropriately-sized cookware. Glass or ceramic pots and pans can be heated to 25 degrees less than recipes recommend, and cast iron retains heat easier, making these types of cookware a good option to help you save more on energy costs. You can even go green entirely by making recipes that require low or no energy to prepare. And don’t forget that the oven will act as a temporary space heater when you're cooking, so be sure to turn down your thermostat.

Light a Fire
A roasting fire is a festive holiday accessory—and it’s a great way to cut down on grid-powered electricity this season. Fireplaces can actually be an eco-friendly (and super cozy) way to heat your home. You don’t even need chestnuts to get the full effect.

As you’re doing this, try keeping your thermostat 7 - 10 degrees cooler than normal for eight hours per day to save up to 10 percent on your utility bills. For example, you could turn your thermostat down early in the morning and at night, then turn it up during the day. It’s sweater weather after all, so bundle up and let a fire warm you.

Use Your Foyer Wisely
The more the merrier, but when guests come and go for the holidays, your home can lose a lot of heat through the opening and shutting of doors. Try adding a draft-blocking device to insulate your home. You should also open other doors inside your home to increase proper air circulation and make it easier for your furnace to heat the space.

Trying to make your home eco-friendly through the holidays doesn’t have to be a burden. In fact, besides saving you some serious change and reducing your carbon footprint, it can actually be a holiday mood booster as you make things more nostalgic and cozy. Who knows? You might even create a new holiday tradition.

Posted on Nov 29 by Elaine Thompson on http://blog.rismedia.com/author/housecall/

Best Financial Investments for Your Home

Over the last couple of years, rehabbing TV shows have become increasingly popular. In these shows, people fix or introduce new features to their homes while adding substantial market value to the house in the process. If you own a home, you can make many of these types of fixes or additions to increase the value of your home, too. You can also enjoy these changes for as long as you live there. Some of the best financial investments you can make to your home include:

Major Problem Fixes

The first high-return investment you should make in your home is to correct all major problems. If your home has serious issues, such as a broken air conditioner or a pipe leak, fixing those issues should be priority No. 1. Repairing or replacing the roof and siding can be a great investment, and potential buyers will generally factor in both the time and cost of having to fix it. Problems like these are always easier to fix when they're small than later after having put them off.

Exterior Improvements

Investing in the facade of a home can also bring great returns. Replacing garage doors is one of these investments. If your garage door looks new, your house will look new, as well. Painting the outside of your home is another good investment in the exterior. If you don't want to take the time and money to fully repaint your home, pressure-washing can be a quick way to make the outside of your home look much more presentable.

Entryway Improvements

Another good investment is to invest in a new entryway door. Like the garage door, the front door is important in making a good first impression on a potential buyer. Replacing your front door with a steel door can also make your home safer; increasing the safety of your home can be another great selling point for a potential buyer. Replacing windows is another way to make the outside of your home look better, as well as improve the home's energy efficiency.

Fixes and additions to the inside of your home can be a great financial investment. A fresh coat of paint to the interior can add value by making the home look cleaner and brighter.

Update Bathroom, Kitchen and Appliances

Improving your home's bathroom, particularly visible elements such as vanities, lighting, toilets and tubs, can create a high return. For bathroom improvements, you may obtain a better return on investment by spending your money on items in the bathroom that a potential buyer would see, instead of completely gutting the bathroom.

Kitchen remodels can be another way to significantly improve the value of your home. For kitchen remodels, you'll want to spend money on functional items such as cabinets, drawers, pantry doors and appliances. Appliances such as refrigerators don't have to be completely new, but they should keep up with current trends. Kitchen remodels should also suit the home. A kitchen that looks like it belongs in a $300,000 home will feel out of place in a $150,000 home.

Adding high-efficiency appliances to a home can modernize it and also save you money on electricity. Some states and cities have tax programs that could reduce your taxes if you buy and use high-efficiency appliances that require less electricity.

Overall, you should research the investment potential of your home before making any purchase. If you are trying to increase the value of your home, you need to make sure your fix or addition will increase the value of the home not only for you, but also to potential buyers.

By Craig Middleton. This article is intended for informational purposes only and should not be construed as professional advice. The opinions expressed in this article are those of the author and do not necessarily reflect the position of RISMedia and Levesque Realty.

2018 Real Estate Trends to Watch: ‘Surban’—That Sweet Spot Between City and Suburb

No—”surban” is not a typo. Think of it as the melding of two words to form a new one in the same manner as celebrity name fusion—think Brangelina, Bennifer or Kimye. Surban refers to a suburban area that has the feel of an urban area, with walkability to great retail and restaurants from a house or apartment, and it’s what all the real estate trend predictors are talking about.

What Is Surban?
Surban is defined as a suburban area that has the feel of urban; it is a blend of the best of urban and suburban life. Urban planners would previously have described these as “mixed-use” areas, but surban is a relatively new term that fits a bit better.

Characteristics of surban areas include:

• Located in suburban, not urban areas
• Anchored in areas with highly-rated schools and low crime rates
• Dominated by a number of housing options, from single-family residences to condos to townhomes
• Surrounded by great retail and shopping areas in walkable distance
• Highlighted with social venues such as restaurants, bars and entertainment

There is much being written about the current trend of surban living. The Urban Land Instituteestimates that these areas will draw at least 80 percent of the coming wave of households and will attract the most families in the next 10 years. Noted real estate consultants John Burns and Chris Porter recently authored a book, “Big Shifts Ahead,” and devoted an entire chapter to the surban way of life.

The Suburban and Urban Past
From 1950-1980, the real estate profession witnessed the trend of suburbia. Homeowners were moving out of the inner city and relocating in suburban areas. They were willing to sacrifice some incredible commute times to cities and suffer other inconveniences to experience an upscale lifestyle. This was because crime rates in urban areas were high and school performances were low.

The 1990s and 2000s brought with it an age of urbanization centered around the renewal of inner cities, development of mixed-use properties in urban areas, increased attention to mass transit, and a renewed focus on downtown condos. However, the economic downturn of the last decade left little job growth in the urban areas. In addition, crime rates are still relatively high, and school rankings and commitments to education remain low.

Paving the Way for Surban Areas
In order to truly understand what is meant by a surban area, let’s examine some specific examples. Think grown-up college campus. A walkable place to dine, work, live and play. Strip mall retail. Less emphasis on giant suburban malls. Let’s start with one of the original town centers.

In 1964, an internationally known planned community known as Reston, Va., was founded. When Reston founder Robert E. Simon, Jr., bought the Northern Virginia farmland 20 miles outside of Washington, D.C., he had the vision of developing a community that would embrace walkability, density, access to green space and a diversity of races and income levels.

In 1990, Reston Town Center opened. This iconic town center is described by CityLab as “a dense cluster of offices, restaurants and shops, centered on a wide-open plaza with a fountain…a community gathering spot.” Nearly 24 years later, the Silver Line Metro station opened in Reston, which ultimately perfected the interconnectedness of the community and city center by decreasing the need for cars.

When Reston Town Center was nearing completion in 1990, Kenneth P. Wong, senior development manager for the project, told the Washington Post: “The idea of a downtown in the suburbs was something that no one really had a grip on; it’s a very complicated proposition that needed a long [research and development] gestation period.”

The Surban Future
Today, suburban downtown areas are popping up throughout the country. Though Reston wasn’t the only place developing the blueprint for “surban” developments, it is often referred to as one of the most successful influencers.

Here are some of the other notable surban developments:

• Downtown Naperville, Ill., in the suburbs of Chicago
• Old Town Pasadena, Calif., in the suburbs of Los Angeles
• A-Town in Anaheim, Calif., in a neighborhood around the Angels Major League Baseball park
• Legacy Town Center in Plano, Texas, in the suburbs of Dallas
• Santana Row in San Jose, Calif., on a former rundown mall site
• City Centre in Houston, Texas, on a former rundown mall site
• Downtown Tempe, Ariz., in the suburbs of Phoenix
• Larkspur, Calif., north of San Francisco, with new housing sandwiched between a top-notch high school and a rejuvenated old downtown
• Geneva, Ill., in the suburbs of Chicago

These types of livable areas are projected to have a profound impact on many areas of real estate in the next several years.

Experts predict that surban developments will replace shopping centers. More retail stores will become places that sell experiences rather than goods, and more development will combine housing and retail to satisfy consumer demand for sites that offer convenient car-free shopping. Suburban office demand will also return. As Gen X and millennials move into more senior management roles and start families, many will move from urban cores to the suburbs to live in areas with good schools, but which are also near employment hubs and entertainment and recreational amenities. They will be willing to share space and work remotely.

What the Surban Trend Means for Housing
The focus is on rental properties, as rates are expected to surge over the long term. The de-emphasis on ownership will be reflected in soaring demand for rental units.

Well over half of the 12.5 million net new households created over the next decade will rent, including those who have never owned, and those making the switch from owning to renting as they age. Some experts believe homeownership will decline, with the national rate anticipated to be 60.8 percent by 2025—the lowest point since the 1950s.

As more people join the already large number of retirees, competition for workers will push up wages, contributing to a favorable environment for rent increases.

There may also be broader choices in housing options. For the most part, housing areas have historically been categorized based on single-family residences, townhomes, condominiums or multi-family buildings. The development and advancement of surban living have already begun blending housing options in a selected area. It will not be uncommon to find townhomes and condos mixed in with single-family residences. Ownership and rentals will exist in closer proximity to widen the retail base of the homes and provide an array of options for millennials.

By Len Elder, Instructor, McKissock Learning and Superior School of Real Estate

For more information, please visit www.mckissock.com or www.superiorschoolnc.com.

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