Real Estate Information Archive

This year’s estimated average refund is at $2,840, according to the Internal Revenue Service (IRS). It’s a little bit less than last year’s average at $2,895.

You’re probably thinking of what you’re going to spend it on right now but if you’re planning on buying a home this year, it can actually get you started on saving for a down payment.

Here’s a map showing the tax refunds received last year by state. (The refunds received for the 2017 tax year should continue to reflect these numbers as the new tax code will go into effect for 2018 tax filings.)

Do you need to make a 20% down payment to qualify for a mortgage? Many first time buyers think so. There are other options. Did you know that there are programs that allow you to just make a 3% down payment? These programs are from the Federal Housing Authority, Freddie Mac, and Fannie Mae. If you’re a veteran, the Veterans Affairs Loans can allow you to purchase a home for 0%!

Let’s say you started saving up for a down payment using your tax refund check. Would you be close to the 3% down payment?

The map below shows what percentage of a 3% down payment is covered by the average tax refund by taking into account the median price of homes sold by state.

As you can see, you’re not that far from owning your own home. New Mexico is almost at 50%. Now is the time to get the ball rolling and start saving up. That piece of paper in your hand can soon turn into the keys of your new home.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers Representative who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record. He can also help you to get a  loan pre-approval at no cost.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at [email protected]

He has a great website full of the latest information at www.NMElite.com

Buying or selling a home is a big decision. It is one of the biggest decisions you’ll be making in your life. It is crucial that you know what you’re doing, but being knowledgeable may not be enough. Getting help from an experienced real estate professional can be the difference between you enjoying your new home or the equity from a sale and losing it all.

With continuous increase in mortgage rates and home prices, buying or selling on your own may not be a wise decision.

Why hire a real estate professional?

State Regulations

In each state, there are varying regulations on the contracts needed for a successful sale. It would mean a lot of paperwork. Your local real estate expert would know these regulations and make sure that everything goes smoothly.

Experience

Buying or selling a home involves a lot of steps. A real estate professional with experience can make sure that all steps are done the right way to get you in your dream home.

Negotiating

There will be a lot of negotiating in the buying or selling of a home. You need someone who can help you get what you want, someone to deal with buyers, sellers, appraisers, inspectors, etc.

What is your property or the property you want really worth?

Knowing this is very important when buying or selling a home. Your home could be worth more than you think. The home you’re buying maybe worth less than the listing price. It could mean losing thousands of dollars if you don’t know what you’re doing.

According to a study by Collateral Analytics

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.”

Up to date

The real estate market is ever changing. You need someone who knows the past, the present and can foresee the future. A good real estate professional knows the market and would tell you what you need to hear and not what you want to hear.

Financial guru Dave Ramsey advises,

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers and Seller Representative who can help you navigate thru the process and get the job done for you. He can provide you with a Free Market analysis when you are ready. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at [email protected].

He has a great website full of the latest information at www.NMElite.com

Here are also some Free Sellers resources. VIP-Seller-Resources

Are you planning on buying a home? One of the most important things to know about is mortgage rates and what’s going to happen to it in 2018. Keep in mind, the higher rate, the higher the monthly payment.

According to Freddie Mac’s U.S. Economic & Housing Marketing Outlook’s chart, in the next 12 months, interest rates are projected to go up steadily.

How will this affect your mortgage payment?

A half percent increase can significantly increase you monthly payments. It will also depend on the amount of the loan you get.

National home prices have appreciated 7.0% from this time last year and are predicted to be 4.2% higher next year, according to CoreLogic’s latest Home Price Index.

If both scenarios come true, people would be paying more to be able to buy a home.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers Representative who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at [email protected].

He has a great website full of the latest information at www.NMElite.com

In a seller’s market, it’s crucial to avoid any mistakes as a buyer. You should have an appropriate plan ready to go.

We are now in a seller’s market and it is very important that you are prepared for it when buying a home. The rules have changed on how to place an offer and how to negotiate. Here are some major mistakes you can avoid to make sure you are on the right path to getting your dream home.

Offer not strong enough

In this market offering low is not the best option. With not much inventory available in the market, competition can be fierce. The home you have fallen in love with might be taken away buy another buyer with a stronger offer. According to David Dubin, a New York broker, “In a seller’s market, many buyers do not step up with a strong enough offer,” he also states “There is usually a shortage of inventory, and the competition is usually fierce. I always encourage a buyer to come in with a strong opening offer.” You also want to keep response times shorter and don’t counter too many times as that can allow time for a better offer to come in.

Waiting too long

It’s understandable that you would want to analyse your home purchase and want to be sure of the whole process, but you shouldn’t over analyse. Once you find the home you love, don’t be afraid to make a competitive offer. It is best to get your finances in order and get a preapproval. “Know how much you can truly afford, repair any credit issues, have your down payment in hand, and delay [other] major purchases,” says John Lazenby, president of the Orlando Regional Realtor Association in Florida. You don’t want to lose the home to a more aggressive buyer.

Inexperienced agent

Home buying can be stressful. Getting help from a real estate agent can save you time, money, and make the whole process easier and maybe even stress free. Work with an agent who has a good track record and who has experience. They can most certainly give you a better chance of getting the home you want. Michael Holt, a New York agent explains, “When you are competing against other buyers in a fast-paced market, it is vital to be ‘offer-ready,’” he also says, “Working with a real estate professional saves tons of time and stress, as they know the ins and outs of the process and can provide tremendous insight regarding upcoming inventory.” A CRS, Certified Residential Specialist may be the best agent to use as they are some of the most experienced agents out there.

Not getting Prequalified or preapproved

Getting prequalified is good then get preapproved. Getting preapproved will show sellers that you have you finances in order and that you’re ready and able to buy. Getting prequalified is a good first step to show seller’s how serious you are. “Prequalification is absolutely paramount,” says Teka Klopfenstein, a New York agent. “A buyer has zero advantage if they do not have the cash to purchase without a mortgage and haven’t taken the time to speak with a lender.” Not getting prequalified, she says, “sends a message to the seller that the buyer will lag on getting their ducks in order and aren’t taking their house hunting seriously.”

Unprepared for a bidding war

In a seller’s market, the inventory is low and competition is fierce. You should be prepared for a bidding war. There is a solution that’s presented by broker Michael Holt. “Set your search below your max budget to leave room in case of an over-asking bidding war.” This way, you get an advantage over buyers who have their bids at max.

Not knowing and understanding your mistakes

Like everything that happens in life, learning from your mistakes makes you stronger and better than you were before. In real estate, when your offer gets declined or if you lose a home to another buyer, it’s not the end of the world. With the experience you’ll gain from them, you’ll come back stronger and know what needs to be done to get the home you want.  “You probably have to let a few keepers slip through your fingers, have a couple sleepless nights over it, and then come back with serious intent to lock up the next greatest opportunity in front of you.”, says Stenta who compared the home buying process to dating, particularly for first-time buyers.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers Representative who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at [email protected].

He has a great website full of the latest information at www.NMElite.com

Majority of Americans, about 91%, believe that owning a home is important (48%) or essential (43%) to achieve the American Dream of owning a home. Although the number of people who believe this is high, most people don’t know the benefits of owning their own home.

There are a huge number of benefits when owning your own home. You may think you only benefit financially, but there are actually more important benefits when owning your own home.

Findings show that homeownership positively impacts educational achievement.

According to researchers, when owning your own home, you get more involved with your community than renters.

Studies show that homeowners and their children are much happier and healthier, even after factoring in the income and educational levels which are also part of positive health outcomes.

It’s not just about the financial benefit. It’s about family, the community, and the American Dream.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers Representative who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at [email protected].

He has a great website full of the latest information at www.NMElite.com

The following new limits will be effective for loans in 2018:

• FHFA (Federal Housing Finance Authority)—Conventional Loans. The Federal Housing Finance Agency (FHFA) has announced that it has increased the 2018 maximum conforming and high-cost area loan limits for mortgages acquired by Fannie Mae and Freddie Mac. Conforming loan limits for one-unit properties in the contiguous U.S. will be $453,100. High-cost area loan limits for one unit will be $679,650.
• FHA (Federal Housing Authority) FHA has updated its list of the maximum mortgage limits for FHA-insured forward mortgages, effective for case numbers assigned on or after January 1, 2018, through December 31, 2018. FHA loan limits will increase in 3,011 counties and stay the same in 233 counties.
• VA (Veterans Affairs) VA Loans will also have new limits; however, for pricing purposes, keep in mind that any amount over the conforming lending limit of $453,100 will be considered high balance for VA on or after January 1, 2018.

You’ve found the perfect home. The price is perfect and everything looks good. The only thing that could keep you from owning your dream home is the competitive market. What you need to do is to make a really good offer so that you get the home you want.

Freddie Mac’s “4 Tips for Making an Offer” in their Executive Perspective will help you in making the right moves to get into your dream home.

1. How much can you afford?

“While it’s not nearly as fun as house hunting, fully understanding your finances is critical in making an offer.”

By getting pre-approved, you show home sellers how serious you are about purchasing their home. Knowing that you are already approved for a mortgage gives you confidence that you can afford the home. Find out if you would also need to make repairs t the home.

2. Time is of the essence

“Even though there are fewer investors, the inventory of homes for sale is also low and competition for housing continues to heat up in many parts of the country.”

You have to act fast. With inventory being low, lower than the 6 month supply needed for the market to be considered “normal”, competition for homes will be fierce. Multiple buyers compete for a single home. If you’ve decided to purchase the home, talk to an agent immediately, so that you can present your offer as soon as possible.

3. Solid offer

Freddie Mac’s advice for a strong offer:

“Your strongest offer will be comparable with other sales and listings in the neighborhood. A licensed real estate agent active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer based on their experience and other key considerations such as recent sales of similar homes, the condition of the house and what you can afford.”

Talking to your agent will make a big difference. Discuss how you can make a stronger offer which will make your offer stand out from the rest.

4. Negotiation is Key

“It’s likely that you’ll get at least one counteroffer from the sellers so be prepared. The two things most likely to be negotiated are the selling price and closing date. Given that, you’ll be glad you did your homework first to understand how much you can afford.

Your agent will also be key in the negotiation process, giving you guidance on the counteroffer and making sure that the agreed-to contract terms are met.”

Be prepared to negotiate. Once tour offer is approved it is advised that you get an independent home inspection to make sure of the condition of the home. If there are any needed repairs, you can talk to the seller about it and discuss the issues. You’ll also see if the home is really worth it. If it’s not, you can cancel the contract.

Having an expert local professional in your corner will mean success and will make the whole process go smoothly.

Buying a home may be the largest and most complex financial transaction you ever undertake. If you're ready to buy a home, wouldn't you prefer to work with the most qualified real estate professional you can find?

An Accredited Buyer's Representative stands out in the crowd. If your REALTOR® holds the ABR® designation, you can trust that they have the extra edge when it comes to KNOWLEDGE AND EXPERIENCE.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.

You can contact him by calling 505-362-2005 or by emailing him at [email protected].

He has a great website full of the latest information at www.NMElite.com

For weeks, the mortgage rates have been going up. This is according to a report by Freddie Mac. Multiple sources like Freddie Mac, the Mortgage Bankers Association and the National Association of Realtors, are saying that mortgage rates will continue to rise in the next year.

Right now, it is still at a historic low. It is lower than what it used to be 10 or 20 years ago.

Chart of average mortgage interest rate of the past decades.

Since mortgage rates are projected to rise, it is wise to purchase now before it gets higher by the next 4 quarters.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.

You can contact him by calling 505-362-2005 or by emailing him at [email protected].

He has a great website full of the latest information at www.NMElite.com

Homeownership is now gaining momentum. It is now rebounding from recent lows and is going the right path. Everyone has different reasons to buy a home. Owning your own home is a dream come true and it gets better.

Here are 5 financial reasons why you should buy a home.

• Equity – With your monthly mortgage payments, you build equity. You can put this towards home repairs or renovations, pay a debt, or even set it aside for your child’s education.. When you rent, your landlord gets that equity.

• Save on Tax – Who doesn’t want to save on taxes? You can deduct your mortgage interest, profits from selling your home, and property taxes. Speak with an accountant to be sure which taxes can be deducted in your area.

• Steady Housing Cost – Rent gets higher as years pass. When you purchase a home, you get to pay a fixed amount each month. You home value may rise due to inflation, but you’ll still be paying the same amount monthly.

• Renting is more EXPENSIVE – You may not believe it, but it’s true. According to a report done by Trulia, it is now less expensive to own a home than to rent. About 37.4% less to be exact. It varies depending on the location, but it ranges from 6% cheaper in San Jose, CA to 57% cheaper in Detroit, MI.

• Home and Investment – Your home is an investment. The price will continue to rise as years pass which will result in more money if you decide to sell it. And you can live in it. You can live your life and build memories and also earn at the same time. Owning your own home seems like the smartest move to me. What do you think?

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist, SRES – Senior Real Estate Specialist who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.

You can contact him by calling 505-362-2005 or by emailing him at [email protected].

He has a great website full of the latest information at www.NMElite.com

More than half of buyers are surprised when it comes to the closing costs required to obtain a mortgage, according to a survey done by ClosingCorp.

They surveyed first-time and repeat homebuyers which totalled to 1,000 and it showed that 35% were surprised at how high the fees were than they expected, while 17% didn’t know they had to pay closing costs at all.

“Homebuyers reported being most surprised by mortgage insurance, followed by bank fees and points, taxes, title insurance and appraisal fees.”

Bankrate.com gathered data from lenders from all the states in order to show the average costs in each state.

Info below is based on $200,000 homes with a 20% down payment.

“Closing costs are typically between 2 and 5% of your purchase price.”

Don’t get caught off guard with closing costs. Ask your lender and your agent about closing costs and find out how much you would be paying for.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist, SRES – Senior Real Estate Specialist who can help you navigate thru the process and get the job done for you.

He always makes sure all his clients, both buyers and sellers have an idea of their closing costs. For Sellers he always does a formal net out and for buyers he works with the lender to see what their closing costs will be. In many cases he may need to negotiate the closing costs so that in minimizes the buyers out of pocket costs. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a proven track record.

You can contact him by calling 505-362-2005 or by emailing him at [email protected].

He has a great website full of the latest information at www.NMElite.com