The Benefits Of Home Ownership

The decision to purchase a home is exciting and a major investment for your future. Because there is only so much of it to go around, real estate is the top choice for many investors and the desire for most families. This article is designed to highlight some of the many benefits of home ownership and how buying a home can often turn the American Dream into a reality.

One of the most profitable markets in real estate is rentals, which means that many families are paying to live in a home that isn’t their own. In some cases, renting a home is necessary. For all others, the money that would be spent on rent could instead be used to pay a mortgage. In fact, monthly rent payments often exceed that of a typical mortgage payment. One of the greatest benefits of home ownership is putting money into something that you can call your own and knowing that the monthly payments are going toward your home’s equity.

Speaking of equity, many properties experience a growth in value as more development moves into the area or the economy strengthens through an increase in job opportunities. If this happens, home values soar and owners can bask in the glory of their newfound profit. When you purchase a new car, it depreciates the moment that you drive off of the lot. When you buy a home, however, it has the potential to appreciate year after year. There are few things in life that can offer you a return above and beyond your original purchase price, but a home can.

When you own a home, you will enjoy the freedom of decorating and making any changes that you choose without needing the permission of a landlord or property owner. In addition, you may even be able to use your home’s equity to finance some needed improvements and/or repairs. In some cases, these changes may even increase the value of your home. An upgraded kitchen or bathroom, hardwood flooring or an additional room are examples of changes that could result in added value.

Another advantage of home ownership is the tax benefits that are available. The interest paid on a home mortgage as well as most property taxes paid are tax deductible. For additional information on deducting mortgage interest and property tax, consult the IRS or a tax professional.

In addition to providing yourself and your family with a feeling of stability and permanence, home ownership can also help strengthen your credit profile through timely mortgage payments and a steady financial history.
So, call me today at Cortier’s Real Estate 979-985-5610 or my cell 979-218-8956 or better yet drop me an email at Bill@cortiers.com and let’s get started……..

THE TEN COMMANDMENTS OF CREDIT

Rates are GREAT and there is money to lend

BUT, beware—your credit score plays a key role in securing a great rate…so make sure you protect it before and throughout the entire lending process

WHEN APPLYING FOR A MORTGAGE

1.  Thou shalt NOT change jobs, become self employed or quit your job;
2.  Thou shalt NOT buy or lease a car, truck or van;
3.  Thou shalt NOT use credit cards excessively or let current accounts   fall behind;
4.  Thou shalt NOT spend money you have set aside for closing;
5.  Thou shalt NOT omit debts or liabilities from your loan application;
6.  Thou shalt NOT by furniture or appliances;
7.  Thou shalt NOT originate ANY inquiries into your credit;
8.  Thou shalt NOT make large deposits without checking with your loan officer;
9.  Thou shalt NOT change bank accounts or overdraw you checking account;
10.   Thou shalt NOT co-sign a loan for anyone.

As of June 1, 2010, Fannie Mae and Freddie Mac require lenders to pull a final credit report at closing on ALL new mortgage loan applications.  If your credit scored have lowered or if new debt has occurred, the closing could be stopped in its tracks.  Buyers, please be forewarned of this change so that you won’t have any surprises at closing and don’t jeopardize one of the most important purchases you will likely ever make.

I must give credit to Janelle Carver, Senior VP of Cornerstone Mortgage who drafted the Ten Commandments of Credit after experiencing a close call with a client’s loan.

EXPERIENCE COUNTS!  So don’t trust you home buying experience and mortgage to just anyone………both Janelle and myself look forward to working with you throughout the process of selecting and financing your perfect dream home. Please contact us with any questions you may have.

Show me the money!
Many people choose NOT to use a real estate agent in order to save money, but keep in mind that it is unlikely that both the buyer and seller will reap the benefits of not having to pay commissions.

For example, if you are selling your home on your own, you will price it based on the sale prices of other comparable properties in your area. Many of these properties will be sold with the help of an agent. This means that the seller gets to keep the percentage of the home’s sale price that might otherwire be paid to the real estate agent(s).  However, buyers who are looking to purchase a home sold by FSBO (for sale by owners) may also believe they can save some money on the home by not having an agent involved. They might even expect it and make an offer accordingly. Unless the buyer and seller agree to split the savings, they can’t both save this commission.
THE BOTTOM LINE: while there are certainly popple who are qualified to sell their own homes, taking a quick look at the long list of frequesntly asked questions on most FSBO websites suggests the process isn’t as simple as many people assume. And when you get into a difficult situation, it can really pay to have a professional real estate agent, such as myself on your side.

TIP#4 REAL ESTATE AGENTS CAN’T LIE
Well, they actually can, but because we are licensed professionals, there are more repercussions if we do. If you are working with a licensed real-estate agent under an agency agreement, such as a conventional, full-service commission agreement in which the agent agrees to represent you, your agent will be bound by law to a fiduciary relationshop. In other words, the agent is bound by law to act in his clients’ best interest, not his own.

In addition, most real estate agents rely on referrals and repeat business to build the kind of client base they need to survive in the business. This means that doing  what’s best for their clients should be improtant to them as any individual sale.

If you decide to buy or sell a home, the offer to purchase contract is there to protect you.    An experienced real estate professional, such as myself, deals with sales contracts on a regular basis. There is an effective date in the contract, which is when both the buyer and seller agrees to the all terms in the contract. It’s very improtant that the effective date be filled in because many paragraphs in the sales contract deal with time and that time is linked to the effective date. Examples of which are the following: due deligence for inspections and reports, applications and acceptance for financing if applicable, surveys and objections to surveys, committment of the title policy, notice of receiving the seller’s disclosure.
Once inspections are completed and the reports are given to the prospective buyer, they may elect to have repairs completed prior to closing, this is requested from the seller in the form of an amendment. Financing if applicable, has to be approved within so many days after the effective date, if not, written notification has to be delivered to the seller or his agent notifing them they can’t obtain financing or in need more time and ask for an extention. So you see, there are many caveats in a sales contract.  Any oversight on any one of them, could result is losing your earnest money deposit on the home and could even be sued by the seller for failing to fulfill your end of the contract.

An experienced real estate professional is there to guide the buyer or seller through the process of buying or selling a home and will protect and insure their respective clients from potential pitfalls and dangers and making for a smooth, sucessful and easy transaction.

Many people don’t like the idea of doing a real estate transaction through an agent and think that direct negotiation between buyers and sellers is more transparent and allows the parties to look after their own interest………This is most likely true……BUT……..this is assuming that both the buyer and seller are reasonable people who are able to get along. Unforturnately, this isn’t always the case or an easy relationship.

What if……….you the buyer really like a home, but hate its decor……working with me as your real estate professional, I can convey your concers to the seller’s agent, acting as a messenger. I maybe in a better position to negotiate a discount without insulting the seller or ruffling his feathers.

A real estate agent can also play the “bad guy” in a transaction, preventing harsh treatment/conversation between a buyer and seller. An agent can help by speaking for you in tough transactions and smoothing things over to keep them from getting too personal. This could possibly put you, the buyer, in a better position to get the house you want. The same is true for the seller, who can benefit from a hard-nosed real estate agent who will represent his or her interest without turning off potential buyers who might want to haggle about the price.

In the next few weeks, I will write and post why you shouldn’t discard the idea of enlisting the aid of a real estate professional.  It’s true, that while doing the work yourself can save you  significant commission dollars, for many, flying solo may not be the way to go—–and possibly could end up being more costly than a commission in the long run.  Buying and selling a home (most likely your most valued asset) is a major financial and at times emotional task.

#1  Better access/More convenience

My job as your real estate agent is a full-time job to act as a go-between buyers and sellers and their respective agent.  This means that I will have easy access to most other properties listed by other agents and or in the Multiple Listing Service.  I know what needs to be done in order to get a deal together and get it to closing.

If you are looking to purchase a home, I will track and locate homes that meet your criteria, get in touch with sellers’ agents and make the appointments for you to view the homes.  If you are attempting to do this on your own, you will have to play this telephone tag yourself.  This may be especially hard if you’re shopping for homes that are FSBO or for sale by owner.

Similarly, if you are looking to sell yourself, you will have to solicit calls from interest parties, answer questions and make appointments.  Please keep in mind that potential buyers might move on if you tend to be busy or don’t respond quick enough.  Too, you may find yourself making an appointment and rushing home to make sure everything is in order, only to find out that no one shows up.

The Texas Quarterly Housing Report which is issued four time a year by the Texas Association of Realtors has just hit the air waves for the period of April through June 2010.  It states the sales of existing single family homes increased 14% or 66,079 homes, compared to the same quarter of the prior year 2009.  Using this same period of time, the median price of homes in Texas remains virtually unchanged and stands at $149,200.00. In the past, we generally see a surge in home buying during the summer months and most likely this spike can be attributed to the federal tax credit for homebuyers which expired April 30, 2010.

Bill Jones, chairman of the Texas Association of Realtors recently made the positive comment, “We’re encouraged to see continued strength in Texas real estate market as 2010 marches forward.  We’re now focused on maintaining that strength and expanding access to affordable, sustainable homeownership in Texas.”  We generally see a surge in home buying during the summer months and  most likely can be attributed to the federal tax credit for homebuyers

So maybe, just maybe, we can see the light at the end of the tunnel with the housing industry, but in order for it to be sustained, jobs, jobs and more jobs need to come online. Our home town of Bryan-College Station is ranked 1^st in job creation in the state with Texas’s unemployment hovering at 8.5% while the nation’s is 9.5%

The interests rates are at historically low and are hovering around 4.5%, So if your contemplating home ownership, please let me assist you in purchasing one of your most valuable assets.

According to the Texas A & M Real Estate Center, TEXAS is leading the nation in the economic recovery.  How does this translate to our hometown of Bryan-College Station?  Well, BCS is ranked is 1^st in job creation followed by San Angelo, Waco, Temple-Fort Hood and finally McAllen-Edinburg-Mission.

Overall, the state’s unemployment rate is hovering at 8% for May 2010.  Amarillo won first place with the lowest, followed by Midland, Lubbock, Bryan-College Station and lastly San Angelo.  This translates directly to homes sales and building permits.  For single family homes for the period of April 2010, building permits were up by 100 from this same time last year. But after April, once the government tax incentives had lapsed, they returned to their normal levels.  Coupled with low the lowest interest rates in decades, the housing market is slowly recouping.

So, if you’re a first time buyer or looking to step up to a larger home now is the time to consider the move.  Of course, lenders will be cautious as ever and the buyer will still have to qualify based on their income/debt ratio and credit ratings.  But overall, owning your own home is the American dream  and I can help make that happen.

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