With the Real Estate market experiencing one of it's most turbulent rides in recent history, many buyers and sellers are left wondering what is the "true" value of a home. Sellers may view offers as "lowball" offers and buyers are initially looking at homes and considering many, overpriced. What are they to do?

The best advice is to have your agent do some home work for you. Your agent should be able to pull research for you, of recent comps (homes similar to the one you're considering) to help you establish a range for either submitting an offer or listing your home. In todays active market, the fresher the numbers the better, so if you've been looking for a while, or listed for over 30 days, it's a good idea to get new numbers to remain in the ballpark.

Having your research ready will make you feel good about your price whether you're negotiating that first deal or putting your home on the market.

As a Real Estate Professional I always advise clients to get a home inspection. You wouldn't buy a resale vehicle without an inspection and I believe you should follow the same care when purchasing a home. I have been asked frequently if I think it is important to have a home inspection when purchasing new construction, and the answer is always yes. 

The inspector doesn't work for me or the builder - only you. He is an idependent contractor hired by you to perform  the professional service of inspecting the home to assure you that all of the structural, mechanical and electrical features are funtioning and performing the function for which they are intended. 

The home inspector adds immediate value to your transaction by letting you know the condition of the home you intend to purchase. Should the home need repairs it's nice to know you've had an opportunity to have a licensed inspector validate your concerns.

Here's a list which covers some questions you can ask prior to selecting an inspector.

1. Do you have a current license? Inspectors are not required to be licensed in every state.

2. How many properties similar to this do you do a year?

3. Do you have references of past clients that I may contact?

4. Do you carry professional errors and ommissions insurance? May I have a copy of the policy?

5. Do you provide any guarantees of your work?

6. What specifically will the inspection cover?

7. What type of report will I receive after the inspection? Do you take pictures of problem areas?

8. How long will the inspection take and how soon after can I expect to receive a report?

9. How much will the inspection cost?

10. Do you belong to any professional organizations?

In North Carolina home inspectors are licensed by the North Carolina Licensure Board. Prior to selecting an inspector I provide clients with a brochure - Questions and answers on home inspections, which details the process and answers quetions regarding the home inspection process.

The much heralded economic stimulus package contains provisions which should be of vital interest to home buyers and sellers this year.  The package contains several features designed to improve the troubled housing market, and this should be good news for both groups.

The key component is a measure which increases loan limits - It would increase the Federal Housing Administration's loan limits from $362,000 to $729,750 and the limits of the federally sponsored entities, Fannie Mae and Freddie Mac, from $417,000 to $729,750.

The National Housing Act limits the maximum dollar amount that FHA can insure, and these maximum amounts vary based on the geographic location of the property securing the FHA loan.  With regard to FHA-insured loans secured by single-family residences, the Act would increase the loan limit from 87 percent of the conforming loan limit to 125 percent of the median single-family home price in the geographic area.  In certain geographic regions where the cost of housing is very high, the Act increases the FHA loan limit to as much as 175 percent of the conforming loan limit.  The Act makes clear that, in calculating FHA loan limits, HUD will use the conforming loan limit in place prior to the Act’s passage, which was $417,000. 

Some Content Contributed by

Daniel Kypena
Branch Manager
Flaherty Funding Corporation 
www.DanKypena.com

The Good Neighbor Next Door Program offers teachers (pre-K-12), firefighters, emt's, and police officers an incredible opportunity to buy a home 50% off of the list price. These professionals can contribute to the revitalization of their communities while becoming homeowners through HUD's program.

One of the the requirements is the new homeowner must occupy the home as a sole residence for 36 months .

Seriously, is this program for real? What's the Catch?

The GNND program is a 'real' program. It is offered through the U.S. Department of Housing and Urban Development (HUD) to strengthen communities thoughout America.

I've heard you can buy one of the homes for $100.00 down, is this correct?

HUD allows homeowners the opportunity to use FHA insured financing with this program. If you choose to use an FHA insured mortgage program, the down payment requirement is only $100.00.                                                                                                

What about the 1% downpayment or Earnest Money Deposit,

Do I have to pay this?

Yes. HUD requires an Earnest Money Deposit of 1%. This amount can be no less than $500.00 and not more than $2000.00. If you use an FHA insured mortgage product, your lender may refund at closing, the 1% minus the $100.00 down payment.

What are some of the other requirements?

You must be a teacher (pre-K-12), firefighter, emt, or law enforcement officer.

*Law Enforcement Officer

A person will qualify as a law enforcement officer for the purpose of the GNND program if they are employed full-

time by a law enforcement agency of the federal government, a state, a unit of local government or an Indian tribal

government; and,

if in carrying out such full time employment, the person is sworn to uphold, and make arrests for violations of, federal,

state, tribal, county, township or municipal laws.

*Teacher

A person will qualify as a teacher for the purpose of the GNND program if the person is employed as a full time

teacher by a state accredited public or private school that provides services to students in grades pre-K through 12;

and,

if the public or private school where the person is employed serves students from the area where the home is located

in the normal course of business.

*Firefighter/Emergency Medical Technician

A person qualifies as a firefighter/emt for the purposes of the GNND program if the person is employed full time

as a firefighter or emergency medical technician by a fire department or emergency medical services responder unit of

the federal government, a state, unit of general local government, or an Indian tribal government serving the area

where the home is located.

I provide clients with the required eligibility certification documents that be must filled out so that I can present them to HUD once your bid has been accepted.

The White House
Washington, D.C.
The Ultimate home sale

Your phone rings and you have a message from a very quiet voice who wants a CMA for a 55,000 square-foot Georgian-style mansion that encompasses 132 rooms and 32 bathrooms. Amenities include a tennis court, bowling alley, movie theater, swimming pool, and oodles of history. You think about it and wow it's the dream sale of a lifetime!

The White House was originally built in the late 1700s at a cost of $230,000, - that comes to over 3.5 million in today's numbers.

But what do you do, tons of rooms you can't go in, folks following you around, so much history, priceless fixtures, what do you use as comps, the Nation's watching....lol, what a dream....wouldn't it be fun and the sale of the Century!

On November 8, 2007 HUD submitted a new RESPA rule to OMB (Office of Managent and Budget) that may provide more clarity and added value to clients.

The proposal includes a four-page (letter size) Good Faith Estimate (GFE) that would standardize the GFE and enhance the disclosure of loan terms, including: the initial interest rate and monthly payment, whether the interest rate and principal balance can increase and the maximum amount they can increase, whether the loan has a prepayment penalty and/or a balloon payment, the yield spread premium, if any, and the total estimated settlement charges.

HUD's approach is to provide more loan information in a consumer-friendly format that will enable consumers to lower costs and shop for the most appropriate loan. The proposed rule also identifies charges that can and cannot change at settlement, limits the amount of permissible changes and modifies the HUD-1 to facilitate comparison of the estimated charges on the GFE and the final charges on the HUD-1. Finally, the proposal includes a "Closing Script" as an Addendum to the HUD-1 that compares actual charges at closing with the estimated charges on the GFE and details the loan terms for the specific mortgage loan the borrower takes out at closing. The Closing Script would be read to the borrower by the settlement agent at closing, with a copy provided to the borrower.

These changes if approved, appear to provide more transparency to the client, and I for one, welcome the opportunity to add a tool which brings more integrity to the transaction.

Woohoo, I've completed the requirements for HUD to show their homes. What does this mean? I can now educate my clients on the benefits of the Good Neighbor Next Door Program (GNND) which allows teachers, ems, firefighters and police officers the ability to buy HUD foreclosed homes at 50% of the list price. Before you race off to look at just any foreclosure the process is a little more involved than just finding a home and purchasing it half off , but hey, that's what I'm here for.

I promise to do all I can to show you the benefits of an opportunity to not only build wealth, but strengthen the Charlotte community as well.

In a recent report Available Here, the Charlotte market continues to fare well amidst a Nation strongly affected by the woes in the housing and credit markets.

Here are the 20 cities covered by the Case-Shiller index, ranked from worst to best:
Detroit, down 9.7%: Tampa, Fla., down 8.8%; San Diego, down 7.8%; Phoenix, down 7.3%; Washington, down 7.2%; Miami, down 6.4%; Las Vegas, Nev., down 6.1%; Los Angeles, down 4.8%; San Francisco, down 4.1%; New York, down 3.8%; Cleveland, down 3.6%; Minneapolis, down 3.4%; Boston, down 3.4%; Denver, down 0.7%; Chicago, down 0.9%; Dallas, up 0.7%; Atlanta, up 1.2%; Portland, Ore., up 3.8%; Charlotte, N.C., up 6%; and Seattle, up 6.9%

Do not need to be bought out or paid off to get a new FHA loan - Or do they?