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The Right Way to List and Sell Your Home in Austin, Texas

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Credits to Mark Moz

Do you have plans of selling your home in Austin Texas? If you do, then let me give you some information about the right way to sell your property in Austin Texas.

This is Now the Right Time to Sell Your Property in Austin Texas

Why did I say so? It’s because housing prices in Austin Texas have been gradually increasing at a moderate pace for many years. What does this mean to sellers like you? It means that, since the demand for houses in Austin Texas is moderately rising this is now the right time for you as a seller to sell your home. And because, there are not enough houses for the buyers to choose from the market, this way pricing your property correctly can give you the best price for your home. In addition to that, the population growth in Austin Texas also increases and therefore the strong demands for houses also increases plus there are lots of individuals and businesses does continue to move in because of the growing economy.

Pricing it Right

Pricing is one of the main factors that sellers should give consideration whether you’re staying in other country or in Austin Texas. Pricing your home right will bring potential buyers and there could be a possibility of multiple offers while pricing it wrong will only give you frustration. If you will list your home too high in the market, you will drive away potential buyers. And if you list it too low, it’s just like you’re watching your investment to slip away. You should know how to price your property correctly in order for you to get the price that you want for your home. I would highly suggest that you hire a professional listing agent so that they could assist you to your needs.

Condition of the Home

Since were done pricing your home, it is now time to make your home look presentable for potential buyers. During showings, potential buyers will notice everything about your home. That is why I suggest that you better prepare your home before the walk through. We all know the saying “first impression last”. We want to give our buyers a good impression of our home because this is the key for the buyers to make an offer. Let us begin on the exterior part of your home, look your home as if it is your first time seeing it. You can plant some fresh flower in pots and around trees. Cut the weeds and sweep the walkways this can give attraction to your home.

Next prepare the interior part of your home. Again look at your home as if it is your first time seeing it take note of what you see. Check if the walls are cleaned or if they need to be painted and touched up. Polished the flooring and wood furniture. Put away those personal items such as (picture frames, diplomas, trophy, medals etc.) this will make your home look more spacious for potential buyers.

 

 

 

 

 

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What Buyers Do Not Know About How You Price Your Home?

home-366927_1920Budget is the first thing that we usually consider in buying a property. Determining how much house you can afford so that you can come up to a better decision on what property you should buy. As a buyer have you ever wondered how homeowners price their homes? Sellers are also making a big decision in selling their property. There are also a lot of things that they need to consider before listing their property on the market. Like, what would be the perfect price when they sell their home? If they will list it too high they will drive away potential buyers. But if they list it too low, it’s just like they’re watching their investment to slip away. As a seller, this is one of the most important factors that they give consideration “PRICING”.  Pricing is one of the hardest decision of every sellers make. Not only pricing is difficult, it’s risky. Here are some ways sellers are pricing their homes.

Overpricing

Sellers are also making mistakes in selling their home. It is because some sellers are not being realistic about their home value. Of course, some sellers may think that they have to take an account of what they paid for and what improvements they’ve made. Others sellers also think that their house look nicer than the neighbors house because it’s their house. They just focus on what they like about their home and not the features of the house in which buyers a paying attention to when they are looking for a home. Normally, if a home is overpriced it will linger on the market for a long period of time and therefore the bigger the discount is likely to its original price.

 

Fair Market Value / Reasonable Price

Some sellers are successful in selling their property because their price is fair. This seller’s may have consulted a professional real estate agent to assist them in pricing their home. They have performed an accurate study by doing a comparative market analysis or the CMA. These homes usually sell within a month or two.

Marketing Strategy

Instead of pricing their home $300K they will list it $299K this is a common marketing tool that attracts or caught the buyer’s attention. This is called psychological pricing. Aside from getting the buyer’s attention the $1k they will lose will cover some of the buyer closing cost.

Home Priced is Below the Fair Market Value

There are some sellers who are aiming for a fast sale of their property, so they just listed the home below the fair market value. On the other hand some sellers lower their price to get a multiple offers on their homes especially if their property is in accessible location and it’s still in a good condition. For example, the seller’s agent will make a further study like performing a CMA or comparative market analysis within that area to determine the price of the homes. Once they listed the property on the market they will lower the price a bit to attract the buyers and therefore they can have multiple offers. So what happen is the price will push it upward.

 

 

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A Day In The Life Of A Real Estate Agent

glass-time-watch-businessBuying a home and selling a property is not an easy process that is why we are hiring a real estate agent to assist the buyers and sellers with their needs. But have you ever wonder what would be a day in a life of a real estate agent? If buying and selling a property is in very challenging in the part of a buyer and the seller’s side. What more is the typical life of a real estate agent. Real estate agent as defined by Wikipedia encyclopedia as a person who acts as an intermediary between sellers and buyers of real estate or real property and attempts to find sellers who wish to sell and buyers who wish to buy.

The typical life of a real estate agent varies depending on a day to day basis. Sometimes there are not enough hours for them in a day. There were also times that it slows down. Just to give you an overview about the life of a typical real estate agent here are just some of the activities that they do.

Administrative Duties

Usually a real estate broker or a real estate agent hires an assistant to do the administrative duties because it consumes a lot of their time. Some administrative duties includes the following:

  • Completing and submitting real estate documents 2016-04-01_0408
  • Schedule Meetings and appointments
  • Creating Flyers, distributing and making promotional materials
  • Creating or making Virtual Tours
  • Work as a Transaction coordinator
  • Making Phone Calls
  • Email Correspondence
  • Updating Websites and Social Media
  • Developing marketing plans for listings
  • Data entry
  • Posting on MLS

Generate Leads

A successful real estate agent knows how to generate leads. Of course, without the buyer and a seller there would be no transactions and therefore there are no commissions.

Working with Clients      

Typically, real estate brokers or agents spend their day working with their clients. For example, if a real estate agent is working for a buyer most of the task that they do is they will look for listings that matches his client needs. Assist the client in getting pre-approval if the buyer will buy the property using a mortgage loan. Then he will schedule the showing and make an offer to the seller. Real estate agent also accompany client to inspect the property as well as other activities. On the other hand, here is the task that they typically do when working with sellers. They prepare listing presentations; take photos and videos of the property, list the property on the MLS, negotiate with the buyer’s agent. Assist the client until the closing of the transaction.

They don’t stop learning

Real estate agents are licensed in a state where they operate and they are required to continue their education to maintain an active license status. In addition to that, for them to become successful and more competitive with their career, agents pursue their certifications and designations. By doing this they were able to improved their credential and marketability.

 

Credits to:

https://en.wikipedia.org/wiki/Real_estate_broker

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Top Misconceptions of Buyers      

 

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Credits to Mark Moz

Buying a new home is exciting but it is not that easy. It is usually combined with anxiety and stress due to a lot of things that you need to consider. In making a decision to buy a home there are also some information or advice you can get coming from your friends, family members, colleagues or even on the internet. Some of this information might lead to misconceptions and could create problems for a home buyer all throughout the home buying process. Learn the truth in order to avoid misconception in buying a new home.

I need 20% down payment

Many home buyers believed that they need to have a large amount of money for down payment. Not at all! There a several ways to finance a property with little to no down payment. One of the most popular ways to finance a home is by using FHA, Federal Housing Administration this one is similar to Pag-ibig in the Philippines. It allows the buyer to put as little as 3.5% down payments towards a home. And there’s the Department of Veterans Affair (VA). This is only applicable for people who served in the army. For this type of financing, it does not require a down payment.  The main point of this is you have alternatives.

I need to have a perfect credit to buy a new home

This is not true!  Most people mistakenly believed that in order to qualify for a mortgage is to have a high credit score. Well, here is the good news. Nowadays there are several mortgage products available for home buyers that would allow credit scores for as low as 620’s. In addition to that, credit guidelines for FHA, Federal Housing Administrative Mortgage are much more merciful compare to other conventional loans. You would only need 580 in order to qualify for a loan. Isn’t that amazing? So you don’t have to worry that much if in case your credit score is not high.

Getting a Real Estate Agent

Typically home buyers assumed that they don’t need to hire a professional agent for a home purchase. However, hiring a professional agent can make your home buying process much better. When it comes to negotiation, they are reliable and very effective to make a deal or an offer. Not only that, if you are a buyer of a property, buyer’s agent will also help you to get pre- approval in applying for a loan. Since, an experienced Real Estate agent knows how to communicate with a bank.

Buying a Home is a Quick Process

First time home buyers misconception is they often think that buying a home is an easy process. In reality, purchasing a property comes with many struggles to overcome. This will take up to 60 days from contract date to closing of the transaction. This will depend on several factors.

I hope this article has helped you in avoiding some misconception in buying a home. It is important that you’re aware of these in order to be successful with your home purchase!

 

 

 

 

 

 

 

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Pros and Cons of Homeowners Association

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Credits to Andrew Jameson

 

In making a home purchase, one factor that home buyer give consideration is whether to decide if they will choose to have HOA, Home Owners Association or not. This will still depend on the preference on home buyer. Some people would choose to live in a community that is well organized and well maintained. If you are considering moving into an HOA community here are some advantages and disadvantages that you should know.

Home Owners Association Advantages

Many Homeowners prefer to live in an HOA community due to several reasons:

Clean and Beautiful Surroundings

Most HOA have certain rules to follow about the community appearance. The common area that HOA’s maintain is the garden, swimming pool, tennis court, playgrounds, community centers and some recreational facilities. The kept every area neat and tidy and make sure that streets and sidewalks are free of trash.

Nicer Neighbourhood

Because HOA rules are very strict especially with the exterior appearance of your home, the result is you have a nicer neighbourhood since they all look uniform. Many HOA’s facilitate a neighbourhood watch and put up a gate around the community and hire’s security personnel to properly monitor the area.

 Basic Maintenance is Included

One of the good things of having an HOA is getting a basic maintenance such as plumbing landscaping, and removing of snow. This will help you lessen your responsibilities and stress.

Say Goodbye to Pest

Aside from having basic maintenance, Most Home Owner’s Association also provide pest control. There will be no termite eating your wall, and racoons.

Association Management

If you have a problem with your neighbour like they were always too loud and always shouting, dogs barking, loud parties etc. You can address this problem directly to the Home Owners Association instead of getting directly to your neighbour. This will help you resolve the conflict and can also avoid fighting with your neighbour.

Home Owners Association Disadvantages

When you buy a home with Home Owners Association, you would have to add to your budget the home owner’s monthly dues.

You cannot easily make some changes to your home

If you want to make changes to your home like changing the exterior color of your home or make some renovations outside. You would have to ask for an approval from the homeowners association before making changes to your home. Home owners are very strict on these because they want to maintain a nicer neighbourhood.

You’ll lose some of your freedom

Living in a community governed by an HOA community has some rules that you strictly need to follow. Aside from losing your freedom in making some changes to your home, there are also limitations like the number of parking areas each resident must have. HOA’s may also indicate whether they will allow pets in the community. If you don’t agree with these rules, you can also file a petition. However, if you lose, then you’ll have to live with it.

Foreclosure is Possible

There are some HOA”s have the authority to foreclose a property if you cannot pay the monthly dues. This regulation varies from state to state and in general applies for rare cases. However it’s still something to think about.

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Top 3 Ways To Avoid Getting Denied To Your Mortgage

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Source: Creative Common 3

Now you’re excited to buy your dream home. But before we go through the process, we have to make sure that you won’t get denied to your mortgage. Here are the top 3 reasons people gets denied to their loan application.

 

 

 

Your income isn’t enough

Definitely, the lender will check if you have the capacity to pay the loan. Having a job is not enough in order for you to qualify for a mortgage. Lender will check if you are stable to your job and if your income is enough to shoulder the mortgage. If you are a freelancer, you often change jobs, and the lender will view your income as unstable. How are you going to pay them back if you don’t have a stable source of income. In order to avoid getting denied you have to ensure that, you are stable to your job and make sure that, your income is not just enough but more than enough to cover your mortgage.

credit-40673_640Poor Credit History

Another common reason people get denied with their loan is poor credit history. Lenders will do a background check on your previous loan to determine if you are a good payer or not. So, if you were not able to pay your previous loan it will absolutely make a big impact on your credit score. Let’s just put it this way. For example, you are a lender and I am a borrower. After doing a background check on my credit history, you’ve found out that I was not able to pay my previous debts. Would you still lend me some money, if you know that I don’t have plans of returning it back to you? Would you still want to take additional measures to justify taking the risk? Most probably your answer would be a big NO! So in order to avoid this make sure that, when you are getting a loan you have to ensure to take responsibility for it.

Insufficient Collateral  

The value of the property will determined by an appraiser, to check how much is the current market value of the equity.  If you have a bigger equity on your property the bank is willing to you lend you a bigger amount of loan. However you are responsible to pay for the loan if you do not want to lose your equity. If you have too little equity on your property, you will be asked by the lender to reduce the amount of your loan, which would require you to come up with more money or deny your loan entirely.

Take note of these top 3 reasons on how to avoid getting denied to your mortgage, so that when you apply for a loan you can prepare and get an approval. However, for those of you who did not meet the qualifications for a mortgage loan, don’t get discourage, Instead, let this be you motivation to improve what you need to improve with your credit and finances.

 

 

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Components Of A Good Offer

man-875702_640Finally, after getting pre-approval from the bank, you’re now ready to buy a new home. So, you’re now browsing the MLS listings on the internet and suddenly there’s this gorgeous house that caught your attention. It was so gorgeous, that you can’t even resist it. Then you told to yourself “This is my dream home and I wanted to grow my family here”. Right after that you called your agent about the property listed on the market finding out that you’re not the only one attracted to that home. Your problem is how you are going to make a good offer in order for you to win the home that you like. On the seller side, how are you going to choose a good offer to maximize your profit so as not to get below the amount that you and your house deserve.

There are a lot of things that we need to take consideration before buying and selling a property. It is our responsibility as a buyer and a seller to ensure that you’re getting a good real estate offer. So, what are the things that you need to consider before getting a good offer.

Here are some of the components of a good real estate offer.

A Reasonable Price

Price is the major factor to consider in making a deal. As a home buyer, before you make an offer you must take consideration on the seller side. Don’t make an offer that is too low, this will make the seller get insulted with your offer. Since this is their home and though they are selling it they also have personal attachment to the home. Be considerate so that you can develop the trust of the seller. On the contrary as a seller, don’t put too much value on the property. This will make the buyer withdraw the offer no matter how they like the property. So be reasonable in pricing your property.

Earnest Money Deposit 

This will show how serious you are as a home buyer in purchasing the property.

Proof of Funds

Aside from giving the earnest money deposit, another important factor is the buyer’s proof of funds. Seller would want to see if the buyer has the capability of closing on a home before they take it off the market.

Pre-approval letter

If you do not have enough cash to finance the property, you must obtain a pre-approval letter from a lender. Aside from showing the seller that you are capable of closing the home, you must also show the seller that you have the capacity to finance the property.

Meet the deadlines

Both parties must comply with all the requirements needed in order to meet the deadlines on time. In a business transaction the faster you close the deal, the better. Meeting the deadlines in the most stressful thing in a transaction process, try to value the time given in an offer.

I therefore conclude that aside from having a good offer one thing that the seller and the buyer really consider is developing a good relationship with the buyer and the seller. If both sides were able to developed a good relationship most likely it will turn out to be a good offer.

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Getting The Best Deal On A Mortgage

home-366927_640Getting a mortgage is the common options of a home buyer in purchasing a property. Since majority of the people cannot afford to pay in cash. So as part of the home buying process, if the home buyer does not have enough money to purchase the property, getting a mortgage is the first thing that we should consider. Aside from choosing your dream home, you should also be meticulous in choosing where to get your loan.

You can ask the list of the mortgage lenders to your agent for you to check, so that you can make some comparison. Analyse everything that the lender has to offer. Don’t just focus on the small interest rate but also check if they have additional fees that will cost you more by the lender. I would also highly suggest that, aside from asking your agent you can likewise hire a mortgage professional or a mortgage broker. If just in case you are not comfortable with the list that you already have and you’re willing to pay extra for hiring a professional broker. However, this will benefit you in due time, because mortgage professional without any doubt knows exactly what you need, that will suite to your budget.

Here are some several tips that will help you get the best deal on a mortgage.

Make Comparison – This can be very confusing especially if this is your first time in acquiring a loan. So you better ask the help to your agent or if you have your mortgage broker, inform them what kind of mortgage you are looking for. Mortgage broker can have access to the Mortgage best buy tool. This is a good start in searching for a for a mortgage lender.

Make sure the mortgage lender, offer a package that best suits your needs.

Not all lending companies offer FHA, VA loans, down payment requirements, and credit requirements. This may vary depending on the lender.

Give the loan officer all the necessary details about your situation when asking for quotes.

This will help the loan officer decide what package best suit for you. Having this information can also help the lender think about the potential solution to your situation.

Ask what are the necessary documents will be required

In order to process the loan application all mortgage lenders will require more significant documents. Ask the lender so that you can be prepared to provide it.

Watch out for the Hard Sell

Some mortgage lender will try to make more money in the mortgage process. Some of these are building insurance, mortgage payment protection insurance which includes accident, sickness or unemployment insurance. If you want to want to get these insurance then it’s still up to you. If you’re thinking that you can afford to pay for an extra and you’re thinking that these will benefit you then it’s for you to decide. However, you have to be very wise in making your decision because some of these additional insurance is not necessary to include in your mortgage.