Consumer Reports recently published a survey, and the results indicate that there is, in fact, some good news in the real estate industry!  While foreclosures and other economic factors still exert some negative impact, those buyers and sellers who have worked with real estate professionals expressed a high degree of satisfaction, both with their representatives and with their bottom line.

Nearly 10,000 consumers were surveyed, and nearly three-quarters of those buyers and sellers reported that they were very or completely satisfied with their agent.  More good news: 86 percent of sellers who listed with a professional made the sale!  (Many of the remaining percentage still had their homes on the market at the time of the survey.)

Other results showed what all agents already know, because over four-fifths of consumers who listed through a broker netted an average of only $5,000 less than their asking price.  On the flip side, two-thirds of buyers who used a representative paid about $5,000 less than their purchase’s original listing price. (The remaining third, who negotiated on their own, ended up paying very close to the asking price.)

So what do all these statistics mean to you?  Regardless of your market’s conditions, when you face the need to buy or sell your home, you’ll get the best results when you seek the representation of a REALTOR®, like the Associate Brokers at Don Kingsley Real Estate.

If you are in need of real estate guidance, please feel free to call me and I will be happy to share my knowledge with you at no cost or obligation.  If you prefer, email me at donkingsley@kingsleyrealestate.com.

Effective October 1, 2008, a housing bill was passed to help both troubled borrowers and lenders.  At-risk borrowers whose loans originated between January 2005 and June 2007 may be eligible to refinance their unaffordable mortgages into low-cost, fixed-rate loans insured by the Federal Housing Administration (FHA).

Whether current or in default, at least 31% of the borrower’s monthly income must be tied to paying the mortgage debt.  Other requirements come in to play that have to do with the total debt owed and any secondary financing.

Borrowers may get information from their current lender or an FHA-approved lender (found on the website for the Department of Housing and Urban Development).  Each loan will be considered for underwriting after a new appraisal is performed and income and credit history is again documented and verified.

Be aware that there are many requirements for approval that, once secured, include many additional terms, such as insurance premiums and profit sharing on appreciation.  If you sell or refinance within a one-year period, you must pay the FHA 100% of your profits.  That percentage drops 10% each additional year, down to 50% after five years.

Keep in mind, however, that savings can still be substantial on these lower interest, fixed-rate loans, which will never readjust like subprime mortgages can every six months.  Homeownership can again be the American dream, not a nightmare.

If you are in need of real estate guidance, please feel free to call me and I will be happy to share my knowledge with you at no cost or obligation.  If you prefer, email me at donkingsley@kingsleyrealestate.com.

Buyers and sellers develop a natural sense of excitement as a transaction’s closing date nears.  While most aspects should run smoothly, it’s wise to be prepared for unexpected delays.  Anticipating potential problems before they develop could save untold time and stress.

One pitfall might be the title search.  The title is simply legal proof of a property’s ownership, but issues such as death, divorce, and liens can cloud the final result.  Meet with an attorney to determine and resolve any problems.

Financing can also present snags.  If the buyers can’t qualify for a loan, the transaction falls through.  Buyers should begin their mortgage education well in advance of their home search, and sellers should ask a price in line with the home’s appraised value.  If the appraisal is much lower than the contract price, the lender will likely reject the loan application.

The best situation for buyers (and sellers) is to have a loan pre-approval in hand.  It starts with the loan officer performing a review of the buyer’s credit, income, and asset v. liability status.  A letter of pre-approval should indicate exactly how much home a buyer can afford, and should put sellers more at ease with pre-qualified buyers.

There are myriad aspects to closing the transaction, so go over each item thoroughly with your REALTOR® and develop your plan of action!

Call me if you need assistance with your real estate decisions.  If you prefer, email me at donkingsley@kingsleyrealestate.com.  I will be happy to share my knowledge with you at no cost or obligation.