A study by the National Association of REALTORS, find that homes are more affordable than they ever have been since the NAR began keeping statistics in 1970.

According to the study,”The index shows the median-income family, earning just under $61,000, could afford a home costing $325,500 in the first quarter, which is more than double the national median existing single-family home price of $158,100. The median monthly mortgage principal and interest payment for a median-priced home would take only 13.5 percent of gross income”, stated Moe Veissi, President of NAR.  tional Association of REALTORS reports that for the first time since 1970 (when the NAR began collecting data), all the stars have aligned for housing to be affordable for all buyers.  This result was reached in the first quarter of 2012.

The one piece of the puzzle which still stands in the way of some buyers are lending standards.  In what many people believe to be an overreaction to the banking meltdown in 2008, lending standards are incredibly difficult – particularly for self-employed persons.  Even with those standards being difficult, it’s never been a better time to buy a home.  Call me today to discuss your situation and get an idea of how you might be able to buy now.

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Appraisals

This morning, I was reading an article posted on Inman news from a Zillow blog on the topic of how to influence your appraisal.  Interestingly, just yesterday, one of my lender partners was complaining about the number of low appraisals recently on re-finances.  The National Association of REALTORS reports that as many as 33% of all contracts for purchase in January 2012, failed due to appraisal issues.   This is a huge increase over the number that failed due to appraisal in January 2011.

The article outlined some really good suggestions – let me explain that rather than suggest that you do all of these yourself – I would suggest that you contact your Realtor to help you:

1.  Prepare comparables to your home.  Comps are the responsibility of the appraiser.  However, sometimes, the appraiser may not be familiar with your home or with your neighborhood.  A newer feature of appraisals is that in order to remove any hint of Bias, the federal government through Fannie Mae and Freddie Mac, now require lenders to either have an approved list of appraisers OR more commonly, participate in a “pool” of appraisers.  The “pool” may include appraisers from out of the area who are not familiar with your home or your neighborhood or your city.  So, it’s always a good idea to have comps ready for the appraiser.

2.  Point out features:  Most often, you or your agent will be present for the appraisal.  It is now your job or the job of your agent to point out features that your home has that others in your neighborhood may not,  for example, if you have installed new energy efficient HVAC systems or windows or a new tankless hot water heater, you should point out these types of features to the appraiser.

3.  Appeal – You can appeal an appraisal that you feel is not fair.  It may not be successful, but you, as the homeowner, do have that right to appeal to the lender.  If you decide to appeal – the best approach is using logic – not emotion!  Be prepared with facts – not your wishes and dreams and stay calm.

Let me know if you need any help with an appraisal or with any real estate need.

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Today, in my other role as President of Franklin Tomorrow, I had the privilege of attending a Breakfast with the Mayor’s event with Rogers Anderson, Mayor of Williamson county and Ken Moore, Mayor of Franklin.  The keynote speaker was Carol Evans with Legacy Parks Foundation of Knoxville, Tennessee.

The topic was increasing the public-private partnership to increase our citizens participation in the building of open space and greenways in Franklin and Williamson county.  This is accomplished now through the Friends of Franklin Parks – a wholly owned subsidiary of Franklin Tomorrow.

The discussions were very interesting and Carol brought her experiences over the past three years with the foundation in Knoxville being about to raise over 3 million (yes three million) dollars for the park system in Knoxville.  This includes donation of land – an old abandoned marble quarry and a developer’s unusable flood plain – as well as donations of time, energy and resources from citizens.

It’s a great time to live, work and play in Franklin Tennessee!  I’ve love to have you join us!

For more information about getting involved – please visit the FranklinTomorrow.org website.

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What words can you use to describe this home?  Charming?  Cozy?

What a great home in a great neighborhood.  Life like it was – the Clevers – Front Porch conversation, great neighbors, tree lined streets, catching lightening bugs…Remember?

Relive this lifestyle in Willow Springs.  This two bedroom home is newly painted and ready for you to place your furniture.  A study in the front with bay windows is perfect for contemplating the latest reports or writing your first novel.  The dining room has french doors that open to the porch to encourage conversation and circulation among your guests.  The butler’s pantry gives you more storage for all your Mom’s antique china and crystal.  The kitchen and great room flow together.  The great room has a fireplace with gas logs and a wall of windows overlooking the courtyard.

Don’t miss out of this great one story home!

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Okay, you didn’t win $350 million lottery – so now it’s time to get serious about buying a home.  It can be very frightening to buy a home.  Whether it’s your first home, or your third, so much is at stake — your savings, your credit rating, and your financial freedom.  I have a friend from high school days who has never purchased a home.  He’s always rented.  Let’s see, why would he do that?  The answer is complex but the bottom line was that he was afraid to make the commitment to purchase a home.  Yet, he and I have figured out that he had been paying just as much to rent a home as he would have to buy a home.  He felt pretty embarrassed that he’d been afraid and had wasted a lot of money over the years. 

If you don’t want to end up like my friend and you do want to move into your own home, how do you get started on this journey towards homeownership? 

As a first step, make a careful assessment of the kind of a home you need and want.  It is helpful to write down things that you just cannot live without (three bedrooms, three baths), things that you would really like to have (an office), and things that are optional, but would be nice to have (a pool).    Take time, right now, to be as specific as you can about your particular requirements.  This list will really help you as you begin to sift and sort through the current housing inventory.  Many buyers get confused after walking through many homes.  If you have your list, you can always compare your list with the homes you’ve seen and eliminate those that don’t meet your criteria.

Next, you need to decide how much you can afford taking into account your plans for the future.  Sometimes people buy able their comfort level and find themselves, house poor.  This means that they have a very beautiful dream home but no money left over for dining out, clothes, furniture, or travel.  Set up a budget for yourself. Decide how much you can really afford to invest monthly for your house payment.  It pays to be realistic in your budgeting. Most Lenders want your payment to be no more than 28% of your total monthly income.

The third step is to get pre-approved for a mortgage.  You can save yourself a lot of time and heartache by meeting with a Lender before you start your search for a home.  If you have some credit issues, they can place you on the path to getting your scores up to an acceptable level.  Being pre-approved let’s you know exactly the costs involved in your purchase and will let you spend your time looking at homes in the correct price range. 

The fourth step is to employ a REALTOR to assist you with your search, the negotiations, and the successful close to the transaction.  This means signing a Buyer Agency contract…just like when you sell a house, you need your own REALTOR who will protect your interests and act as your fiduciary in the home buying process. 

Finally, after all that work you are now ready to go look at homes.  Here are a few tips on how to successfully house hunt:

1) Keep an organized record of all your research data. Write down comments about the homes that you see. Keep track of your likes and dislikes.

2) Make sure your REALTOR is aware of your time schedule and expectations. Do you like to look at one or two homes in a session? Four? Eight?

3) Tell your REALTOR about any homes you see that interest you and that you’d like to know more about.  This includes homes you’ve “discovered” as you’ve explored the area yourself, or those advertised in the newspaper. 

4) If you like to spend time driving around by yourself looking at homes, ask your REALTOR for a list of drive-bys — homes to consider first from the outside.  Your REALTOR can make appointments later to show you the interior of those that appeal to you.  Take your REALTOR’s card with you to model homes and open houses.  

5) Express your likes and dislikes to your agent after you look at a home. Honest communication is essential.  Many buyers are shy and afraid to tell the REALTOR what they really think of a house. They think the agent might take it personally. Remember, the homes don’t belong to the REALTOR and your REALTOR is representing you, not the seller of the home!  You must be straightforward about your likes and dislikes in order for the agent to do the best job for you.

When you find the home of your dreams, your REALTOR and lender will take charge of the details of the transaction.  Before you know it – you’ll be in your new home, with a great tax deduction and the confidence that you’ve made a great decision.

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