51 Ways to Make Your Home Sell Faster - Tip #7

Back into Spring with the latest of our tips to make your home sell faster!





Homes for Sale in the Belmont Neighborhood
Luxury Homes for Sale in Charlottesville


Quinton Beckham
Keller Williams Realty
434.242.6212
www.select-homes-charlottesville.com 

Charlottesville Community Supported Agriculture

The Bellair Farm in Albemarle County, VA has a history dating back to the 1700's. As a part of its current mission to "develop an ecologically sound plan for Bellair Farm so it can be sustained as an agricultural, historic and natural resource benefitting the local community" the Bellair Farm is now offering participation to the community in Community Supported Agriculture (CSA) program.

CSA Programs allow members of the community to participate in the support of, and directly benefit from, local farms by purchasing shares of crops to be grown that year. It benefits both the farm and the community as the person purchasing the share in advance gets the produce at about half of the market price. It benefits the farm by allowing them to have monetary resources when they most need them - in the spring when farmers must buy seeds and equipment for the coming season - without having borrow money from lenders. The community benefits by having a direct connection to a local food source, maintaining agricultural land and otherwise providing for a more stable and sustainable local economy.

Bellair Farm's CSA Program comes at a cost of $600 per share. This can be billed wherein the buyer sends in a $100 deposit and then pays off the remainder in two equal installments. Each week the shareholder can pick up their share of the crops either at the farm or on a designated day or time at a market in town. Bellair Farm's plan seeks to provide 360 pounds of produce for each shareholder. From 12-20 different types of vegetables are available each week and you have an opportunity to choose what comes in your weekly share so that you have items you will actually use.

Bellair Farm grows its produce using organic standards and a respect for the land.

For more information or to sign up, visit www.bellairfarm.com or call 434-262-9021.

Albemarle County Homes for Sale
Homes for Sale in Cherry Hill
Farms and Estates for Sale in Albemarle and Charlottesville

If you are looking to Buy a Home, Sell a Home, or Invest in Real Estate - CALL ME!

Quinton Beckham
Keller Williams Realty - Charlottesville
1885 Seminole Trail, Suite 100
Charlottesville, VA 22901
434.242.6212
www.select-homes-charlottesville.com

Charlottesville Real Estate in 2013

We have been saying it for weeks now, months even - The Real Estate Market is Picking up, getting stronger and moving faster. So lets take a look at Charlottesville and see how it's doing compared to  last year...

So what does this mean? I am not a statistician, but I can tell you what I see in my own business and that of my office and associates. 

Properties Sold - 

The beginning of 2012 saw a lot more movement by investors snapping up properties that were short sales or foreclosed on. These were not first time home buyers, but investors or those whose financial status was such that they were "looking for a deal" on a house. January of this year also saw a lot of that leftover inventory being taken. This is the last movement of investors who are looking for properties to flip or rent out before they number of them on the market decreases. 

Days on Market

Yep , things are picking up speed. Although there are still a lot of people who are unemployed or under-employed, there is still an overall decrease in unemployment and an increasing confidence in the economy as a whole. Combine this with continued mortgage interest rates at record lows and the average family or first time home buyer has an opportunity to break out of being trapped in a rental market and get that very first home of their own. I have clients who make the average amount of money for the area (about $25,500 per year) and others who are making six figures and have been renting. No matter where they fall, they are recognizing the unique opportunity that exists right now: 

Homes that have not regained their prior price tag and interest rates that make buying with a monthly payment that is the same or lower than renting. 

Median Prices

Everywhere you look, the number of distressed properties is decreasing and Charlottesville is no different. For them to decrease, they must be sold. The low prices on these homes water down the overall median prices, which is why we see a little bit of a drop in January 2013. But hold on to your checkbook, because I would predict that as these properties continue to disappear and the pace of the market as a whole picks up, we will see that Median price continue to climb - and at a pace that we have not seen for years. 

So why should you care? 

All of this means that no matter who you are or what your circumstance is, you have an opportunity to move from renting to owning, from being packed into a smaller home to upgrading to a home that better suits your family. It means that the economy and the Real Estate Market is set to let you explore making some personal gains and gaining some tax advantages that you can not have renting. 

And one quick note about Short Sales

And if you are reading this and angry at the predictions because you are still in one of the homes that is upside down, there is some good news for you as well. There are still those families out there that are in homes that are deeply underwater - by $30,000 to $100,000. The Mortgage Forgiveness Debt Relief Act, originally scheduled to expire on December 31, 2012, was extended through the end of 2013. WIthout this important piece of legislation if you did manage to short sale your home and get out from under a crippling mortgage you then got hit with a tax on the amount of debt that was forgiven. Let's say you sold a home for $100,000 to avoid a foreclosure but had a mortgage note of $200,000. On your taxes at the end of the year you had to claim $100,000 as income, as a gift from your lender, and then be taxed on it. (This is an oversimplification, see your tax professional for details about your particular situation.) The point is, you have a chance to get out from under the mortgage, have the difference in debt forgiven AND not be taxed on it. Your best shot to do this is in the time between now and August. 

Points to Take Away

- Thinking you can not afford a home? 

You may be wrong. Make an appointment to see your lender or call your REALTOR to see who they would recommend you talk to. You might be surprised at the opportunities that exist for you. 

- Ready to upgrade your home? 

Talk to your REALTOR. The timing could not be better as there more families out there that could afford to buy the home you are in and better opportunity for you to upgrade the home you live in without a huge increase in your payments. 

- Stuck in a home that is upside down? 

Again, talk to your REALTOR and let them recommend some Attorneys or CPAs to talk you through your options - this may be your last best option for getting out of an upside down home, taking a break for a few years and then purchasing a home again in 2015. Three years sound like a long time? It may not be when you look at how long it would take the home you are in to regain the value it had when you bought it. If you bought at the peak of the housing market, this could be especially true for you. 

See City of Charlottesville, VA Homes for Sale

Homes for Sale in Belmont

Condos and Townhomes for Sale in Charlottesville

Quinton Beckham

Keller Williams Realty - Charlottesville

1885 Seminole Trail, Suite 100

Charlottesville, VA 22901

434.242.6212

www.select-homes-charlottesville.com

51 Ways to Make your Home Sell Faster - Tip #5

Number five in our continuing series of simple tips to make your home SELL!
And yes, we started playing with the special effects...

Homes for Sale in the Belmont Neighborhood of Charlottesville, VA

Homes for Sale in Redfields Neighborhood of Charlottesville, VA

Luxury Homes for Sale in Charlottesville / Albemarle

Keller Williams Realty - Charlottesville

Quinton Beckham

1885 Seminole Trail, Suite 100

Charlottesville, VA 22901

434.242.6212

www.select-homes-charlottesville.com

51 Ways to make your home sell - Tip #4

The fourth of our weekly installments on 51 ways to make your home sell faster



Homes for Sale in Belmont Neighborhood of Charlottesville, VA
Homes for Sale in Rugby Neighborhood of Charlottesville, VA

Quinton Beckham
Keller Williams Realty Charlottesville
1885 Seminole Trail, Suite 100
Charlottesville, VA 22901
434.242.6212
www.select-homes-charlottesville.com

51 Ways to make your home sell - Week #3

The third of our Short Weblogs with tips to help you sell your Home faster!

Click the links below for:

 All Homes for Sale in Charlottesville
Homes for Sale in Belmont
Homes for Sale in the Rugby Neighborhood
Homes for Sale in Redfields

For more Information or a Home Sale Consultation, Contact me:

Quinton Beckham, Keller Williams Realty
1885 Seminole Trail, Suite 100
Charlottesville VA, 22901
434.242.6212
www.select-homes-charlottesville.com

Top Ten Remodeling Values for Your Home

No matter who we are, we fix up our homes and then when we go to sell them, we want to get our money back. Now, we all know you don't get it ALL back, but here's a look at the top ten ways to increase the sale price of your home with a remodel and what you can expect recoup:

Selling your Home in Charlottesville? I can help you get the most for your home!

Search Homes for Sale in Charlottesville, VA

Search Homes for Sale in the Belmont Neighborhood of Charlottesville

Quinton Beckham

Keller Williams Realty

1885 Seminole Trail, Suite 100

Charlottesville, VA 22901

434.242.6212

www.select-homes-charlottesville.com 

51 Weeks of Tips to Sell your Home - Week #2

I know many of these tips seem silly as you listen to them and you think, "what? no buyer would ever notice that..."

But I dare you, go look out of your windows before you hit the play button, look carefully, then come back and watch...





And as always,
If you are looking to Buy a Home in Charlottesville,
Sell your Home in Charlottesville
Or Invest in Real Estate.

I want to help!

Quinton Beckham
Keller Williams Realty
1885 Seminole Trail, Suite 100
Charlottesville, VA 22901
434.242.6212

www.select-homes-charlottesville.com

Let's Talk about Short Sales... But only for 2013

While perusing Facebook and catching up in what my friends across the country were doing I ran across one Tucker Griffin and Barnes' postings which talked about the Debt Forgiveness Act. Forgive me if I sound like I am quoting, and I guess in many ways I am, but Bill tucker is a lawyer in Charlottesville with over 30 years experience leading the Firm's Real Estate Group in all manner of Real Estate related issues. Tucker Griffin and Barnes is an excellent firm with a stellar reputation that, despite being a full service law firm, has managed to stay focused on their community.

Homes for Sale in the Belmont Neighborhood of Charlottesville

What he pointed out in this posting was that the Debt Forgiveness Act has been extended to December 31, 2013. This allows homeowners who are are at risk of foreclosure - upside down on their mortgages and going through financial issues that could make them fall behind on payments - to have an opportunity to sell the home they are in while avoiding being taxed on the "forgiven" debt. This is an incredible boon to any family that is feeling trapped in a home that they bought at the peak of the market that they can no longer keep up with after the recession.

For the full posting from Tucker, Griffin and Barnes, click here. 

If you or someone you know is falling behind on their mortgage payments or at risk of foreclosure, a short sale offers you unique opportunities to get a fresh start without having to file bankruptcy or pay an enormous tax bill. For more information, contact me at 434.242.6212 and I strongly recommend that you read the link above.

Condominiums for sale in the City of Charlottesville

If you are looking to Buy a Home, Sell a Home or Invest in Real Estate, call me -

Quinton Beckham
Keller Williams  Realty
434.242.6212
www.select-homes-charlottesville.com

Mortgage Rates Decline - Home Buyers Rise

If you were paying attention this week you saw that mortgage rates declined once again. A 30-year fixed rate had risen to 3.56% but yesterday reached the low of 3.51 - just a few tenths of a point from the all time low of 3.31% (click here for the full article from USA TODAY.) New home sales jumped 16% in January over December and the number of people who signed contracts to purchase resale homes also rose, according to the National Association of Realtors (NAR). Following this increase in demand, home prices also rose. All based on purchasing power.

NAR tracks the Pending Home Sales Index which measures the number of homes that are placed under contract. Although this does not measure actual sales, it is a good indicator of consumer confidence. This has seen a relatively steady climb over the last 12 months with a good jump in January. NAR offers this data to the public and you can view it by clicking here. Additionally, overall financial forecasts remain on the upswing with unemployment dropping, mortgage rates making modest climbs to reach break into the 4% territory in the fourth quarter of the year. This data can be seen by clicking here.

Overall, this continues to be a good home buying season for everyone involved with rising home prices benefitting sellers, decreasing unemployment putting cash in the hands of more consumers and low mortgage rates keeping homes affordable for anyone who is seeking to upgrade their home or get out of renting and become a homeowner.

If you are interested in becoming one of those homeowners, click this link to see all properties for sale in the City of Charlottesville, Virginia.

If you have questions on buying or selling a home, you can check out my website or contact me directly at 434.242.6212

Quinton Beckham
Keller Williams Realty
434.242.6212
www.select-homes-charlottesville.com

51 Ways to Make Your Home Sell Faster - Week #1

The first in a series of WebBlogs about making your home move FASTER from listing to Sale!



Looking to buy or sell a home in Charlottesville? I can help.

Click here to see Featured Properties for Sale in Charlottesville, VA


Quinton Beckham
Keller Williams Realty
434.242.6212
www.select-homes-charlottesville.com

Believe it or not, it's a good time to sell

In case you haven't noticed, Winter is winding it's way to a close and Spring is just around the corner. And as plants get ready to end their restless slumber and spring forward into the air, home buyers are stirring too. Spurred on by forecasted changes in mortgages rates and pending changes in FHA rules and costs, home buyers are seeking to get a home before the prices have fully recovered and while mortgage rates remain at their historic lows.

What they are finding is this: There aren't a lot of homes on the market.

While new home sales are starting to pick up again, builders remain cautious and many homeowners are still underwater on their mortgages making selling their home something that they are not optimistic about. The nation now has a 4.2 month supply of homes on the market; meaning that if sales continued at their current rate, we would be out of homes in 4.2 months.

Nationwide, nearly 28% of homeowners owe more than their home is worth, according to data from market watcher Zillow. And if you look at homeowners who don't have at least 20% in equity, that number climbs to 45%. So what does this mean for you?

Click here to see Homes for Sale in Charlottesville

For buyers

If you have been thinking that now is the time to get the best mortgage rates and better pricing per square foot on a home of your own, you are right. The market made a lot of gains last year but homes can still be found that are a great deal and the low mortgage rates mean that you can afford more home for your monthly payment. Some buyers who wouldn't have even been able to qualify for a mortgage of $250,000 because of interest rates making their monthly debt too high five years ago are finding that they CAN qualify because the payments are actually less than what many of them are paying for rent. It's still a great time to buy, but if you see that home that meets 90% of your needs, you better jump on it, there just aren't a lot homes out there and finding that "perfect" home in the price range you can afford isn't likely to happen. 

For Sellers

If you have some equity or just have a real reason to move, then you shouldn't wait. You are much more likely to get close to your asking price now than if you wait until the market picks up in Spring and Summer and the competition grows. Although many buyers are aware of the lack of inventory, they are not wanting to wait and maybe miss a chance to make a great buy at a low interest rate. Listing now can make you one of the few homes available that many buyers are in competition for. Add that to the fact that the REO or distressed home market (those in short sales or foreclosures) is drying up, and you have an opportunity to snag that smart buyer who knows today's market conditions won't last. 

Click here to see what your Charlottesville Home is Worth

For the complete article in USA TODAY, click here

Call me for more information on making the market work for you,

Quinton Beckham
Keller Williams Realty
434.242.6212
www.select-homes-charlottesville.com

Five Reasons to Buy A Home Now

Wondering if you should wait longer for a "better" market to purchase your new home? Think again, your best bet for a good buy, good rates and a home you can keep for a while could be right now. Based on prices, mortgage rates and soaring rents, there may have never been a better time in real estate history to purchase a home than right now. Here are five major reasons purchasers should consider buying:

Supply Is Shrinking

With inventory declining in many regions, finding a home of your dreams may become more difficult going forward. There are buyers in more and more markets surprised that there is no longer a large assortment of houses to choose from. The best homes in the best locations sell first. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy.

Click here to see Condominiums for Sale in the City of Charlottesville

Price Increases Are on the Horizon

Prices were expected to bounce along the bottom this winter. However, many pricing indices (examples: CoreLogic, FHFA, LPS, Case Shiller) are reporting that prices are continuing to rise.

Rents Are Skyrocketing

Rents historically increase by 3.2% on an annual basis. A study issued earlier this year projects rent increases of 4% for the next two years. Trulia recently reported that rents this year have actually shot up by 5.4%.

Interest Rates Are Projected to Rise

The Mortgage Bankers Association has projected that the 30-year mortgage interest rate will be 4.4% by the end of 2013. That is an increase of approximately one full point over current rates.

Click here to see Homes for Sale in the Redfields Neighborhood of Charlottesville

Buy Low, Sell High

We would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’. It’s time to buy.

And of course, if you are looking to buy a home, sell a home, or invest in real estate in the greater Charlottesville / Albemarle area - call me - I can help!

Quinton Beckham

Keller Williams Realty

434.242.6212

www.select-homes-charlottesville.com 

For the original article, click here

Wednesday's Child, full of woe...

So you've done it, you made the plunge, chose a Real Estate Agent and you are putting your home on the market; you are ready to get it out there and don't want to wait another day! But maybe you should.

One thing that every Real Estate Agent knows and lives by, the longer your home is on the market, the less likely you are get your asking price. Days on Market is the holy grail of negotiating and one of the few unarguable points in determining the how close to your asking price that first golden offer is; the longer on the market, the less likely it is you will get the price you ask for.

In this era of online everything there is simply one magic day for marketing a home and getting the most bang for your electronic debut - Friday. According the Real Estate Analysts Redfin, homes listed on a Friday garnered 99.1% of their asking price in the actual sale. (Remember folks, that is an average, your individual experience will absolutely vary according to the market you are in, your home itself, the neighborhood and local trends.)

Homes for Sale in the City of Charlottesville, Virginia

Nailing the day that a home listing hits the internet is crucial according to Glenn Kelman, President and CEO of Redfin, which covers 19 markets in the U.S. "You get four times the traffic on the day of debut than any other time of the week, and you only get one chance," he says, "Soon, you're yesterday's news." Properties listed on a Friday also sell the fastest, average days on the market being only 81 days.


But what makes Friday so special? Richard Ryan, Professor of Psychology at the University of Rochester says that adults typically work a Monday through Friday workweek (adults who are NOT real estate agents, I should add) and are more upbeat and enthusiastic on a Friday. They also tend to report more energy and vitality on the weekends which could make them more proactive in actually seeing your home or making an offer.

Homes for sale in the Belmont Neighborhood of Charlottesville

So if Friday is the best day to debut, what is the worst? Sundays. Homes that debut on a Sunday end up selling, on average, for 98.4% of asking price. That could be a difference of nearly $5000 on a $500,000 home. Sunday listings have to sit around for a few days before people start lining up home tours for them and by that time, newer listings may make the Sunday debuts seem stale.

Now you can't hang your entire marketing plan for selling a home on the day of the week, but in this market of ups and downs and low inventory and competitive buyers, we certainly can take every little bump to help us that we can get. The number of factors that go into a home sale are so numerous as to be immeasurable, one of the many reasons you need a Real Estate Agent to help you navigate it and get the best price and best net proceeds for your home.

As always, if you are looking to Sell a Home in Charlottesville, Buy a home in Charlottesville or want to Invest in Real Estate, email me or give me a call, I would love to be the agent that helps makes it the absolute best experience for you possible.


Quinton Beckham
Keller Williams Realty
434.242.6212
www.select-homes-charlottesville.com

Click here for the complete article from the WSJ

So you've closed on your new home... NOW WHAT?

You've searched and searched, previewed homes until your eyes have bled and finally (as your Realtor cheered and jumped up and down) found the home of your dreams, made an offer, made it through contract negotiations, home inspections and closing. You're done and ready to move in, right? Well, maybe. There are some things you still need to do to keep that home your "dream home."

Prepare for anything you want done before you move in

Rarely does a buyer get into a new home that is truly, completely, ready to go. As you have looked at the home and toured through it you have come up with a myriad of ideas about how to live in it. Where you will out the sofa, which rooms the kids will have, what color are you going to paint that room that has a shade of lavender rarely seen outside of an Easter egg. Which rug will cover that stain in the otherwise immaculate hardwood floors... 

If you want to get things done to your new home, the best time to do them is before you move in. Once you have removed your contingencies, the sellers have moved out and you are close to closing, get the contractors in the house that you are going to need to do work on the home to make it yours. Have the painter take a look and give an estimate, get that floor refinisher in to see the stain and tell you if he can fix it and how much it will cost, how long it will take. Your Realtor can be a great resource for small job contractors who can help you get all the minor repairs that weren't worth negotiating over but that you still want done. Work on a home is faster, cheaper and less headache if it can be done while the home is vacant. Nothing takes the fun out of moving into a home faster than sharing the space for the week with Joe the Plumber...

Click here to see Homes for Sale in Belmont, Charlottesville

Set up the utilities

We are so used to flipping a switch and the lights coming on that we forget that we really do have to get the utilities put into our name. Find out which companies serve your new community and call them in advance to be sure everything can move into your name seamlessly so that the first morning in your new home will be one that has hot water and hot coffee. Especially check for any cable or internet service. These vary widely based on where you live and nothing makes the teenagers whine more than not being able to Facebook, blog and play xbox live for the two weeks it takes to get the cable installed and working. 

For the original article, click here. 

You have your new keys! WONDERFUL! Now change the locks. 

It's just better to assume that everyone and their brother has a set of those keys that are now in your hand. The listing agent likely made them available to a score of contractors, their assistant and God only knows how many copies the last owner handed out to family members and neighbors to be sure that they never got locked out. 

Be ready to hire a cleaning crew before you put one stick of furniture in

Most of the time, sellers have had the place cleaned after they moved out, but just in case, it might not be a bad idea to have a cleaning crew ready to do a thorough once over. Showing up on moving day with a car full of hungry family, boxes and hundred of pounds of furnishings only to find that every bug for miles around has decided to use your kitchen floor as their place to die can take the thrill out of that new home in ten seconds flat. Even if the seller did clean, for all you know they paid their fifteen year old nephew $40 to do it and their perspective of what "clean" is can be starkly different from your own. This is a small and inexpensive item that is better not left to chance and more easily done before you fill up the rooms. 

Click here to see What your Charlottesville home is Worth

Have a handyman or a small contractor on call

Moving in can take days or weeks depending on your particular tastes and personality and once the house has closed, it's all yours. Every square foot of joy and each and every scratch, dent or hole in the wall from dropping that family heirloom armoire made from leftover 1941 tank panels. Having a handy man identified who is ready to go can make your life simpler. If you have them identified already and know that they can do the touch ups or fix those small yes annoying items that are not apparent until after you try to move in. 

Taking just a little time to plan ahead can save you a ton of headache, remove huge amounts of stress from being prepared and make your overall experience a much, much more enjoyable one!

Click here to see all homes for sale in the City of Charlottesville

Quinton Beckham

Keller Williams Realty

www.select-homes-charlottesville.com 

Paul Goodloe McIntire's Belmont Legacy

His name and contributions surround us, but few outside of Charlottesville Historians know just how much of an impact that Paul Goodloe McIntire had on the shape of the city. Born in 1860 in the City of Charlottesville, McIntire attended the University of Virginia for only one semester before leaving in 1880 for Chicago "...to earn some money." He worked first as a coffee salesman (Barista's of the city should puff out their chest at that!) and later as a stockbroker. He then moved to New York City where he bought a seat on the New York Stock Exchange and between the years of 1901 and 1921 amassed a fortune. Never forgetting his home town he used his wealth to beautify the city, purchasing land to become parks and adding sculptures for all of Charlottesville's residents to enjoy.

Just some of his notable gifts include the Statues located in Lee and Jackson parks - parks placed on land that he purchased and donated to the city for this purpose. One of his donations that any traveler or resident will recognize is the statue of Meriweather Lewis, George Rogers Clark and Sacajawea that stands at the intersection of Ridge and McIntire Roads at the primary traffic gateway to the Downtown Pedestrian Mall. Another statue of Lewis and Clark stands at the intersection of Jefferson Park Avenue and West Main Street; a gift he made to the University of Virginia.

In addition to Lee and Jackson Park, McIntire also gifted the land that has become Washington, McIntire and Belmont parks. Homeowners in Belmont note Belmont Park to be one of the finest parks in the City of Charlottesville.

The 3.1 acres of Belmont Park is bounded Stonehenge Avenue, Rialto Street and Druid Avenue. The park contains a full basketball court, benches, swing set, playground equipment, large Oak Trees for Shade and a courtyard with shelter for outdoor concerts. When driving by Belmont Park, Residents and visitors alike have their attention drawn to the latest addition, the "spray ground" that allows children to enjoy an afternoon playing in the various water spouts while staying cool. The spray ground is operated by touchpad, recycles the water it uses and is open from 9am to 8pm during summer months.

From UVA dropout, to coffee salesman to philanthropist, McIntire's is a story that could easily be repeated today and Belmont Homeowners enjoy the legacy of his generosity to this day.

For more information on Charlottesville City parks and trails, CLICK HERE

For more information on Paul Goodloe McIntire, CLICK HERE

If you are looking to -
Buy a home in Belmont or the City of Charlottesville
Sell your Charlottesville Home
Or have other questions about Real Estate
Please click the links above or contact me directly

Quinton Beckham
Keller Williams Realty
434.242.6212
www.select-homes-charlottesville.com

Will 20% soon be the new minimum down payment for a mortgage?

Several government agencies are reviewing data to determine what will be the minimum down payment required under the new Qualified Residential Mortgage (QRM) guidelines scheduled to be revealed in the next few months. In the original Mortgage Market Note issued by the FHFA, it was suggested that loan-to-value (the percentage of the overall purchase price that was being borrowed) was a major factor in determining if a loan would default:

"For most origination years, requirements for borrower credit score and loan-to-value ratio are the factors that most reduce the ever-90-day delinquency rate of mortgages acquired by the Enterprises that would have met the proposed QRM standards"

The note then went on to make the following proposal:

"An LTV ratio qualified residential mortgage must meet a minimum LTV ratio that varies according to the purpose for which the mortgage was originated. For home purchase mortgages, rate and term refinances, and cash-out refinances, the LTV ratios are 80, 75 and 70 percent"



For the complete article, click here: http://www.kcmblog.com/2013/01/23/will-20-soon-be-the-minimum-down-payment-on-a-home/



Basically, the note suggested that a 20% down payment should be the new guideline for Qualified Residential Mortgages. Now, no one can know for sure what the final requirements will be. Bloomberg reported last week:

"The six regulators drafting the separate QRM rule, including the Department of Housing and Urban Development, The Office of the Comptroller of the Currency and Securities and Exchange Commission, must decide whether to include such a requirement - and whether to make it less than the 20% they originally proposed."

What could these new regulations mean for the average home buyer? Certainly there is a growing portion of the Charlottesville Area Home Buying population for whom a requirement of 20% down payment could, unintentionally, lock them out of homeownership as a whole. More and more of those who are approaching Real Estate Agents to buy a home are those who are renting. As rents have climbed dramatically over the last few years, this has seriously impacted the average Charlottesvillian's ability to set aside money month after month in pursuit of that often elusive down payment. Their first and best method to take advantage of the currently reasonable home prices and excellent mortgage rates is to seek out a Mortgage program that allows them to own a home for only 3-5% down.

Should the new QRM guidelines require a 20% down payment on what would be a very large percentage of mortgages, we could see a slowing of the Real Estate market as a large portion of potential buyers are trapped in rentals that are costing a larger portion of their monthly incomes.
For now, this has not happened and we can hope that the regulators will keep in mind that much of America can not put away a 20% down without the tax advantages of homeownership.

What does this mean to someone seeking to Buy a Charlottesville Home? Don't wait until the market changes, home prices go up or mortgage rates rise. Meet with a qualified Real Estate agent and get a check on your finances, credit scores, housing needs and determine if you can get out of the rent trap.

What could this mean to someone seeking to Sell their Charlottesville Home were it to go through? Certainly, nearly every offer has some request for the seller to cover a portion of the closing costs, generally 1-3%. Expect to see those become necessary in order to get cash strapped buyers through the mortgage process and qualified for a loan. For those wanting to upgrade their homes or needing to sell property at all, the market continues to have many opportunities to attract buyers and a mortgage structure that is attractive to a larger percentage of home seekers than ever before - waiting too long to put your home on the market could see those buyers dry up and create a market that has fewers buyers, who are more sought after.

If you are wanting to:

Find out if you can Own a Home in Charlottesville
Buy a Home in Charlottesville
Sell your Charlottesville Home

Please contact me, I want to help!

Quinton Beckham
Keller Williams Realty
434.242.6212
www.buyorsellhomescharlottesville.com
www.select-homes-charlottesville.com

Confused by Mortgage Lingo... here's some help!

I can well remember when I first started in college back in... well, let's not say how long ago that was, it was more than a little while... when I first started learning all the terms I would have to know to be in healthcare and not look like an idiot it felt like I was having to learn a second language. And in some ways, I was. It took years to sling those words and phrases and initials around like a pro. I am still of the belief that those words and abbreviations exist in healthcare so that your doctor can talk about you, right in front of you, without you knowing what he is saying.

Frequently, sitting across from a loan officer feels exactly the same way. They throw around words and abbreviations and phrases like they are talking about breakfast cereal and we smile and nod, afraid they will think we are not financially savvy and then walk away not really sure what the heck it was they said. This can make the pre-approval process a frightening thing, as though we are being asked to lay out the most private details of our life so that someone can judge us. It can be a very daunting process to go through, especially if it is your first time or you aren't sure that you will qualify. So, to give you a chance to speak the language like a pro and, more importantly, really understand what they are talking about - I give you the Glossary of Mortgage Terms!

For the complete glossary from The Mortgage Professor, click here. 

Some of my personal favorites:

JUMBO MORTGAGE
Though at first glance you might think that this is a mortgage that comes with large fries and bucket of coca-cola, it is, in fact, not. Jumbo mortgages are those mortgages whose total amount are higher than what Fannie Mae or Freddie Mac are allowed to purchase. Though there are some exceptions to these rules, generally these are homes that need to be purchased with conventional loans.

MAXIMUM LOCK
Though this sounds like some action-adventure movie, it is, in fact, a very important thing for potential home buyers to know. When purchasing a home you and the lender "lock-in" the interest rate according to the prevailing rate at the time the home goes under contract. As everyone who has purchased a home recently knows, your expected date to close and the actual you close can be extremely different. The maximum lock is the longest period of time that a lender is willing to "lock in" that particular interest rate for you. Good stuff to know as a purchaser.

NOHO
No, this is not the next up and coming neighborhood in Manhattan. This is Lender speak for someone who does not have the finances currently to become a Homeowner. Mainly, they are living paycheck to paycheck and therefore are too great a risk. I have to admit, I have been a NOHO at certain points in my life. If you think you are a NOHO, contact me so that I can set you up with people can help you to get out of that rut and into better credit, financial health and out of NOHO status.

PAYMENT SHOCK
This is one of my personal favorites. I tend to have payment shock every time I half-fill my small hand carried basket at Whole Foods and then get to the register and see that my small stock of specialty items has reached a triple digit price tag. But in mortgage speak, Payment Shock is generally referring to sudden increases in ARM payments that surprise homeowners when whatever index the ARM is tied to climbs dramatically in a short period of time. Though not something many people have been afraid of lately, this is still something that can occur when interest only mortgages finally convert to including principal.

SWING LOAN
No, this is not some tawdry loan hanging out in hot tubs and seeking to flirt with properties that already have a mortgage of their own. Rather this is loan that banks sometimes offer to help homeowners who are seeking to switch homes but need the proceeds from the sale of their current loan to close on their new home who are needing to close on the new home and their current home hasn't closed yet. Also referred to as "bridge-loans" as they bridge the gap between the two closing dates.

I hope that this may have shed some light on "Mortgage Speak" for you and even, perhaps, generated a chuckle or two.

If you are looking to Purchase a Home in the Greater Charlottesville Area, Sell a Home in the Greater Charlottesville Area or Invest in Real Estate - I would very much like to be the agent that helps you in this endeavor. Please check out my website www.select-homes-charlottesville.com or click on the embedded links for more information and resources for sellers and buyers.

Quinton Beckham
Keller Williams Realty
434.242.6212
www.select-homes-charlottesville.com
www.buyorsellhomescharlottesville.com 

Homer Simpson sells home to Moe the Bartender...

On the lighter side of Real Estate news, the Los Angeles Times reports that Dan Castellaneta who does the voice for Homer Simpson on "The Simpsons" sold his home to Hank Azaria, who voices Simpsons' bartender Moe.


His Pacific Palisades home sold for $5.5 million, following a $200,000 price reduction prior to Azaria purchasing it. There was no mention of whether or not there was free beer or the settling of old bar tabs as a part of the sale.

For the full article, click here: http://marquee.blogs.cnn.com/2011/09/22/simpsons-real-estate-deal-homer-sells-home-to-moe/?iref=allsearch

Castellaneta and his wife Deb Lacusta - a television writer herself - have lived in the 4,414 square foot, 4 bedroom, 3 1/2 bathroom home for five years.

I doubt very much that this will have any impact on anyone who is looking to Buy a Home in Charlottesville or Sell a Home in Charlottesville. However, having been a fan of the Simpsons going back many years, I could not help myself and had to include this in my blog somewhere.

Should you wish to sell or buy in the Greater Charlottesville Area, please feel free to contact me for assistance. I promise, I will not try to mimic any voice from the Simpsons...

CLICK HERE to see homes for sale in the Rugby Neighborhood of Charlottesville.

Quinton Beckham
Keller Williams Realty
434.242.6212
www.select-homes-charlottesville.com 

Mortgage Rates Remain at Record Lows

According to the associated press, the average rate on 30-year fixed mortgages inched down toward its record low this week, helping to keep home buying affordable. 

Mortgage buyer Freddie Mac Says the rate on the 30-year loan dipped to 3.38% from 3.40% last week. This is slightly above the 3.31% rate reached in November, the lowest on recrods dating back to 1971. The average on the 15-year fixed mortgage remained unchanged at 2.66%. The record low being 2.63% In all of 2012, the average for a 30-year fixed mortgage was 3.66%, the lowest annual average in 65 years, according to Freddie Mac. 

Cheaper mortgages are a key reason the housing market began to come back last year and continued low rates promise continued recovery in the housing market for 2013. With these rates in mind, moving away from renting and into homeownership remains the best choice for consumers. 

If you are looking to buy a home in Charlottesville, Sell a home in Charlottesville or invest in real estate, contact me and let me help you make it happen! 

Quinton Beckham

Keller Williams Realty 

434.242.6212

www.buyorsellhomescharlottesville.com 

www.select-homes-charlottesville.com