Mike’s Real Estate Show

11 Things You Must Know When Finding a Home
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Once you’ve decided to buy a home, there’s a number of issues that need to be considered.  Because buying a home will be one of the biggest purchases you make in your life, learning the “11 Things You Must Know When Finding a Home” can make the process easier.In this report, we outline 11 Questions and Answers to help you make informed choices when purchasing a home.

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Rates as of 5/18/07       

 Front page of the Press Democrat Business Section today reports: More Households can afford homes!  If you or your clients have any questions regarding qualifying and how much house they can afford, give me a call 284-2718!  Here’s a taste of today’s rates. Read the rest of this entry »

I only dwell on the numbers in the marketplace as one looks at a compass. All real estate is local as we well know. I met with a couple nearly a year ago to determine market value for their home. It is in Healdsburg, 1 acre, very clean but small, only 1200sqft WITH a converted garage. But in a very desireable area. I told them at the time $650,000. I revisited the property 45 days ago and listed it for $675,000. Scarcity is the issue. It really doesn’t matter what the market is doing nationally, statewide or countywide or in the City you work but it boils down to neighborhood and schools. We sold the property for full price in 10 days and I have 5 agents behind it begging to let me know if it falls through. We just went pending. Another propery, in Healdsburg retirement community, with over 15 homes on the market in this smallish neighborhood. My property, updated, staged, brought to the market in impeccable shape. Listed $447,500 which was $17,500 higher than the same model 3 doors up listed in my office. Sold in 15 days full price, now pending.
 Our county now has 2600 listings up from 1850 only 4 months ago. Sales are continually down 30% month to month even now in our prime season. Prices, medium wise, down 10% over last year–but remember, medium is simply demonstrative of WHERE the action is in the market! I make sure my listings are priced right, staged, 3% to the selling office and easy to show.
 

Here are some tips I just recieved from  noted Financial Planner and lecturer Chris Bird:

* Do Not Call Lists: Yes we’ve all heard of these but have you DONE something about it? Go to: www.donotcall.gov and get banish annoying calls from your life–but be nice to the Realtors out there!!

* Have you been getting way to many “pre-aproved” credit card mailings!? I do! Call this number and take yourself OFF of their lists: 888-567-8688.

* Junk Mail: Do you wince like me when walking by a tree as you cart bundles of junk mail to the recycle can? Then go to: www.dmaconsumers.org which will take you off the carrier sort mail–the biggest junk mail tool!

* Here are other tips Chris reccomends: Purchase a Shredder–a big one! One that does CD’s also–not just paper.

*Order a Credit report from the big three: Experian, Equi-Fax, and Transamerica.

*Big TIP of the DAY! Include a “consumer Statement” on credit files: Big Action Plan for you! Include the following phrase: “For any credit requested under Social Security number:_____________(put your Soc.Sec# there), (your name)________________, please contact me at:___________________(give a reachable day time phone number).” Send it to all the big three credit reporting agencies: Experian, Equi-Fax, and Transamerica. You can get these all on line!

Send it to the following companies:

The three major credit bureaus may be contacted directly at:

Equifax     
P.O. Box 740241
Atlanta, GA 30374
800-685-1111
 
TransUnion
P.O. Box 1000
Chester, PA 19022
800-888-4213
 
Experian
P.O. Box 2002
Allen, TX 75013
1-888-EXPERIAN
(1-888-397-3742)
 
Innovis Data Solutions
Post Office Box 219297
Houston, TX 77218-9297
800.540.2505
877-INNOVIS

Innovis is the new kid on the block but get them that statement also!!

Rates as of 5/11/07

As expected, the Fed has kept their key rate at 5.25%, which means the Prime Rate is still at 8.25%.  The Fed is still concerned with inflation, though a couple of key reports that have been released in the last few days, show that Core Producer Price Index, one measurement of the rate of inflation, seems to be flat.  Any reduction in the Fed’s key rate will depend on inflation concerns abating.  I’ll keep watching and listening and keep you posted.

Conforming                 fully amortized                        interest only

30 year fixed               6.25 %              6.375%

3/1 ARM                     6.00%                6.25%

5/1 ARM                     6.00%                6.25%

7/1 ARM                     6.00%                6.25%

10/1 ARM                   6.125%              6.375%

                                   fully amortized                        interest only

JUMBO – up to $650,000; add .25 point for loans up to $1mil

30 year fixed               6.375%        6.50%

3/1 ARM                     6.50%          6.50%

5/1 ARM                     6.375%        6.375%

7/1 ARM                     6.50%          6.50%

10/1 ARM                   6.625%        6.625%

 100% financing:          Mortgage Insurance may also be an option – here are some possibilities without MI.

30 year fixed – 80/20  - Conforming loan amount on the first  6.50% 1st / 9.875% 2nd – assumes 680 credit score and full document loan for 2nd pricing – better score, better pricing on the 2nd

30 year fixed – 75/25 – Conforming loan amount on the first  6.25% 1st / 9.875% 2nd – assumes 680 credit score and full document loan for 2nd pricing – better score, better pricing on the 2nd

Call for information on Blended rate 100% options with No MI. Other loan options… I can provide additional loan options, including Alt-A loan products, Option ARMS, the Flexible Hybrid ARMS, Commercial loans, Home Ownership Accelerator Program, Construction Loans, Loans for Investment Property and much more!

 Here’s the fine print:

Conforming limit is $417,000.00.  Rates assume impound account set up and except for 100% financing, assumes loan to value (LTV) no more than 80%.  Funds to be used for purchase.  Cash out refinances may incur higher rates.  Rates quoted with a 30 day lock.  Subject to qualifying borrowers and properties.  Rates quoted for fully documented loans.  Rates are as of 5/11/07 and are subject to change.  Rates are quoted WITHOUT points.  Borrowers may buy down the rate.  Each application is evaluated on an individual basis.  There may be better suited programs for borrowers the may offer better rates/terms as well as options for non-qualifying borrowers.

Alicia Hodenfield  Investors Trust Mortgage

Direct line (707) 284-2718  Cell (707) 483-6299

Fax (707) 573-8109 

1105 N. Dutton Avenue Suite 200 Santa Rosa, CA  95401

www.aliciahodenfield.com

Licensed by California DRE #01104067/Salesperson License #01501465

“We must learn to live together as brothers or perish as fools.” — Martin Luther King, Jr. 

Oh by the way, if you know of someone thinking of purchasing or refinancing a home, who would appreciate the kind of service I offer, I’d love to help them.  As these people come to mind, just give me a call with their name and number.  I will be happy to follow up and tend to their real estate financing needs.

Goog-411: Free Local Info
 
Next time you find yourself on the road and in need of local information, try Goog-411 (Google’s Voice Local Search). It may be in it’s experimental stage, but I found it to be easy to use, and on target. You can try this service by dialing 1-800-GOOG-411 (1-800-466-4411) from any phone. Oh, and it’s free!

When your call is answered, the service asks your city and state (only US business listings), after which you are asked, “What business name or category?” I searched a specific business name in my city. After being provided with the address and phone number, I could choose to be connected directly, or get the details by SMS if using a mobile phone by saying “text message”.

I called the service a 2nd time to search by category and asked for “restaurants”. This time I was provided with a list of top restaurants in my city (#1: Excellent Restaurant, #2: Great Restaurant, #3: Really Good Restaurant, and so on). At any time, I could choose to go back to a specific restaurant by selecting its number. And all their choices for my city were surprisingly right on!

Google says they are “fine-tuning the service to get better at recognizing your requests”. Even still, it’s worth a try! 1-800-GOOG-411 (1-800-466-4411)

Listeners, We will have Alicia Hodenfield on the show today giving us the latest in the sub-prime melt-down and what it means to you if you are buying or selling real estate in the current marketplace. If you are selling today you’ve got competition!! As of today we have 2620 listiings on the market in Sonoma County. In April we had 357 sales down about 21% of the 452 sales in April of 2006. However we have 590 homes in escrow so about a 4 1/2 month supply of homes.

  We’ll talk about this in more detail on the show and also what you can do if you’re NOT getting the price you want and why this is a huge fallacy inlight of todays’s market.