All posts by Philip Ford

Inside the Mind of a Seller

The NAR 2013 Profile of Homebuyers and Sellers gives some key insight into what today’s typical seller is thinking when it comes time to move.

97% – Recent sellers typically sold their house for this percentage of the listing price.

88% – Sellers that were assisted by a real estate agent when selling their home.

59% – Purchased a newer home than they’d owned previously.

47% – Reported that they reduced the asking price at least once.

36% – Sellers that offered incentives to attract buyers.

13% – Sellers that had to delay or stall selling their home because the value of their home was worth less than their mortgage.

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How Do Home Buyers & Sellers View Technology?

A recent independent poll commissioned by Discover Home Loans provides insight into how consumers use technology in the real estate buying and selling process, and how they view it as a resource. A few key findings point out how much consumers use technology for real estate activities:

93% – technology allowed them to do things remotely

92% – technology helped them save time

90% – reported an overall positive experience when using technology

89% – used some form of technology to help them with the home buying process

83% – technology helped them to stay organized

47% – technology helped them to save money

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Factors Influencing Urban Buyers’ Neighborhood Choice

64% – Quality of neighborhood

58% – Convenient to job

42% – Overall affordability of homes

36% – Convenient to friends or family

32% – Convenient to entertainment / leisure activities

29% – Convenient to shopping

27% – Convenient to parks / recreational facilities

26% – Design of neighborhood

20% – Convenient to schools

19% – Quality of school district

12% – Convenient to health facilities

8% – Availability of larger lots or acreage

7% – Convenient to airport

5% – Other

4% – Home in a planned community

Source: NATIONAL ASSOCIATION OF REALTORS®, 2013 Profile of Home Buyers and Sellers

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Tips For a Smooth Loan Approval

•Don’t apply for new credit

•Don’t co-sign on a loan

•Don’t dispute anything on your credit report

•Don’t change bank accounts

•Don’t close any credit card accounts

•Don’t finance any elective medical procedure

•Don’t make a major purchase (car, boat, jewelry, etc.)

•Don’t max out or over charge your credit card accounts

•Don’t open a new credit card account

•Don’t take out a new loan

•Don’t transfer balances from one account to another

If you encounter a special situation, it is best to discuss it with your lender.

Source: Mortgage Options Lending

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Community Preference Survey

The NATIONAL ASSOCIATION OF REALTORS® 2013 Community Preference Survey reveals the following preferences in neighborhoods and where people want to live:

86% value privacy from neighbors when choosing a home.

75% of small town and rural residents would still live in a rural area if they could choose any plave to live.

60% prefer a neighborhood with a mix of houses, stores and businesses that are easy to walk to.

42% complain that there are too few shops or restaurants within an esy walk of their house.

Sources: NATIONAL ASSOCIATION OF REALTORS® & The Council of Residential Specialists

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2014 Profile of Home Buyers and Sellers

This information was obtained from an annual survey that was conducted by the NATIONAL ASSOCIATION OF REALTORS®. Here are the highlights from the latest report:

•Thirty-three percent of recent home buyers were first time buyers.

•For 43 percent of the home buyers, the first step in the home-buying process was looking online for properties.

•Ninty-two percent of buyers used the internet in some way in their home search.

•Real estate agents were viewed as a useful information source by 98 percent of the buyers who used an agent while searching for a home.

•Seventy percent of home sellers only contacted one agent before selecting the one to assist with their home sale.

•The share of home sellers who sold their home without the assistance of a real estate agent was nine percent.

Source: NATIONAL ASSOCIATION OF REALTORS®

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Common Real Estate Terms

These terms are handy to know terms when you are involved in either buying or selling real estate:

Disclosure Statements
These are most often prepared by the person selling a property. They can include a property condition disclosure, a lead based paint disclosure (for properties built prior to 1978), and a septic disclosure to name a few. You should ask for copies prior to preparing a written offer.

Good Faith Estimate
A lender is required to provide a borrower this document at loan application. It provides the borrower a breakdown of their loan costs, closing costs and downpayment required. It also gives an estimate of the total monthly payment. The numbers from the Good Faith Estimate and the closing statement should align fairly close, if not you should ask questions.

MIP
This stands for Mortgage Insurance Premium. If your obtaining a mortgage with a loan to value greater than 80%, then the lender will require mortgage insurance in most cases. The premium is usually paid as part of your monthly house payment. For some loan programs a portion of the premium is collected when the loan is funded. 

Lien
This is a claim by someone or a company on a property, usually for money owed. In Tennesse a Deed of Trust is filed with the Register of Deeds in the county where the property is located. This document reflects the terms of the loan, and is a matter of public record. 

Buyer’s Market
This is a a term used when the market is in the buyer’s favor. The buyer usually has the advantage when it comes to negotiations. A buyer’s market occurs when there are more homes for sale than there are buyers to purchase them, thus forcing sellers to me more aggressive with pricing. Usually homes take in excess of six months to sell in this type of market.

Seller’s Market
This term is used when there are not enough homes available for the number of buyers looking to purchase. This environment gives the seller the advantage when it comes to negotiations. In this type of market you will see home prices on the rise as many properties will receive multiple offers. In this kind of market, homes that are priced right and in good condition may only be on the market for a few weeks.

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