Chuck sees a positve turn in our market and 4 other reasons to buy or sell now

Chuck Edwards, Assistant Manager of the CENTURY 21 Judge Fite Arlington, Texas office gives his top 5 reasons for buying or selling real estate in today's market.

1. Top officials and industry leaders have stated that “When our market’s financial recovery begins, it will be seen up-front in real estate and it will be strong.” These comments are reflections on the sales activity during the early days of June. Buyer activity has been astoundingly strong in our direct markets here in Dallas and Fort Worth and we’ve noticed that mortgage rates are starting to climb slightly. Both of these events signal a positive turn in our market.
2. Buyer reaction to the $8,000 Tax Credit stimulus move has been an unquestioned success. More buyers are making offers now than we’ve seen in months. In fact, agents representing anxious buyers have complained that prime, well-staged, competitively-priced listings are going under contract under multiple offer situations where more than one set of buyers are interested in the same listing.
3. Specialized industry services such as showing services report a marked increase in the number of agents calling in to arrange showings and the number of showings has increased in recent weeks as well.
4. Mortgage firms are adjusting to new procedures and the major lenders are working hard to get deals closed within the time frame outlined in the contract. A redirection of appraisal procedures, a stabilization of credit guidelines and a general eagerness on the part of various levels of the lending community are helping get the buying process back to normal.
5. Given the encouragement from the brisk buying activity, the inventory levels are at their peak just now. As the buying activity continues to build, the inventory will be expected to be markedly reduced and rates and pricing will predictably rise. Overall, we have an ideal time to buy a home in mid-year 2009.

Chuck Edwards
Assistant Manager
CENTURY 21 Judge Fite Company Arlington
chuckedwards@judgefite.com

Joe's Top 5 Reasons to Buy or Sell in Today's Market

Joe Picardo, Manager of the CENTURY 21 Judge Fite Company office in Cedar Hill, Texas gives his top 5 reasons for buying and selling in today's market:

For Buyers
#1 There has never been a better value to price ratio, ever!
#2 Interest rates are very, very low
#3 Lots of nice homes to choice from
#4 Lots of special programs for various people, i.e. first-time homebuyers
#5 Great tax benefits in owning property.

For Sellers
#1 In this market if your home is priced right and staged right, it will sell fast.
#2 A good listing will stand out compared to all the distressed inventory.
#3 Any hit you might take in selling your home you will make up on the purchase of a new one.
#4 With all the special programs out there we have seen lots of buyers in the market
#5 If you hold off you may have a lot more competition once the potential seller comes off the fence

Joe Picardo

Century 21 Judge Fite Company

Cedar Hill Branch Manager

972-460-5200

Positive Developments sought for the Real Estate Industry

Here is a report issued by Tom Kunz, CEO of Century 21, LLC on the positive development for the real estate industry that was announced earlier today by the Business Roundtable, an association of chief executive officers of leading U.S. corporations. Specifically, the Business Roundtable’s Housing Working Group – which is chaired by Realogy CEO Richard A. Smith – issued a set of recommendations for the White House and Congress that are aimed at jumpstarting the housing market in order to stimulate a broader economic recovery.

The Business Roundtable’s recommendations are as follows:

· Keep mortgage interest rates at historically low levels (below 5 percent) for at least one year;

· Expand the current First-Time Homebuyer Tax Credit incentive from the lesser of 10 percent of the purchase price of the home or $8,000 to a higher limit of either 10 percent or $15,000 for all homebuyers, remove the income restrictions and include all primary residence purchases for one full year;

· Conduct a thorough review of current foreclosure mitigation and loan-modification programs in light of rising loan-modification re-default rates;

· Make permanent the current temporary conforming loan limits; and

· Continue to review and strengthen government efforts already underway to review and refine mortgage lending practices.

“We believe targeted, demand-side solutions – such as the ones Business Roundtable is recommending today – will provide a critical next step for a housing recovery that will help create jobs and boost the economy as a whole,” said Smith in the Business Roundtable’s press release.

To obtain a copy of the Business Roundtable press release and its Housing Working Group’s detailed recommendations, click here. To read an article that appeared in today’s online edition of The Wall Street Journal containing an interview with Richard Smith about the Business Roundtable’s recommendations and why they are crucial to jumpstarting the housing market, click here.

What to look for when buying a home

Jim Fite, President of CENTURY 21 Judge Fite Company talks about what to look for when buying a home.

How does a real estate agent help me buy a home?

Choosing the right real estate agent can save you time and headache!

Working with the right real estate agent will be one of your most valuable resources. Trying to do it yourself these days can lead to issues not being handled and problems not being discovered. It is great to start your search for homes online and save yourself time by finding the properties you like, but once you find a home you are interested in, contact the agent, it will make the process much more fun and save you time! Here are a few things that a real estate agent does to help you through looking for and purchasing a home:

• A real estate professional can help you determine how much home you can afford and even suggest ways to accrue the down payment and explain alternative financing methods. In addition to knowing the local money market, also can tell you what personal and financial data to bring with you when you apply for a loan.

• A real estate professional is already familiar with current real estate values, taxes, utility costs, municipal services and facilities, and may be aware of local zoning changes that could affect your decision to buy.

• A real estate professional can usually research your housing needs in advance through tools and automated search engines that can pinpoint properties right in the location you want

• A real estate professional often can suggest simple, imaginative changes that make a home more suitable for you and improve its utility and value. Remember, they are in hundreds of homes a month, use their expertise to help you find the perfect home that suits your needs

• A real estate professional is sensitive to the importance you place on this major commitment you are about to make. Look for a real estate professional to facilitate negotiation of a win-win agreement that will satisfy both you and the seller.

Find a great site to search for homes like Realtor.com or Century21.com and pinpoint the location, price range and homes that you are interested in, then contact an agent for more information, that will get the process started. Interview a few agents to see if there is a chemistry there and that they have the credentials needed to represent you.

You paid WHAT!? for that house?

I ran into a friend a couple of months ago at Red Robin Restaurant I had not seen in years. After the chit chat he said that he had found the most incredible home for his family just 15 miles from here. Both he and his wife’s face lit up as they described it to me. As a Realtor of 30 years, I truly was impressed with the word picture they articulated. It was definitely a good deal. I asked if they were on contract to buy it, he shrugged his shoulders as he looked at his wife he said we are not, because we can’t get anything out of our home. My next question was, “how much under market can you buy that home?” It was a lot under market. That answer led to the next statement…”What are you waiting for? “You might not get as much out of your present home as you would like, however, you are making the Deal of a Lifetime on the purchase of the new home!” You know for a fact that the old owner spent way more on that home than you are paying now. Do not miss the opportunity staring you in the face.

For investors, today is the time to buy & own rental properties. There are many homes that can be bought at incredibly low prices, with low interest rates. Today’s market is a better investing market than the past 4-5 years. Buy your rentals right and you can cash flow $200.00 to $300.00 per month per property on a 20 year note. In the DFW area, we have a great influx of new residents looking for that Big Texas Dream. They are coming here in droves. My wife and I will be buying additional investment properties this year. Do Not Miss The Boat, Hummer, Helicopter, and OPPORTUNITY.

For most Americans their home is their largest investment and the bulk of their financial net worth. Make a plan, buy investments, and work your plan because Real Estate builds Wealth. Once you own property call CENTURY 21 Judge Fite Property Management to take the head ache out of owning rentals. I learned a SECRET of keeping rental properties. Once you own them, hire a professional to manage them. In order to own them long enough to Build Wealth in Real Estate, you need help. My wife and I hired CENTURY 21 Judge Fite Management Co to manage our Rentals 18 years ago. No regrets, only the ability to see more clearly the opportunity in front of us. Since hiring CENTURY 21 Judge Fite Management, we have grown by 3 & 1/2 times due to not being stuck in the muck and mire of managing.

How much insurance should I get when I buy my home?

Some Insurance Tips for Buying and Selling Real Estate in This Market

What do you need to consider for your insurance needs when you purchase or sell in today’s market?

Selling can be a big challenge, and sometimes it involves a lot stress due to reduced values or personal tragedies. When canceling your policy due to the sale, don’t try to save a little money by making the cancellation effective on your closing date, but wait until you have moved out or have insurance at your new home. You want to have coverage for any short periods while you are a tenant of the new owners or when your personal property is in transit from your old home to your new location.

If you lose your home to foreclosure or a short sale, don’t forget to cancel your policy like above after you move out. Also ask for a refund for the remaining policy term. There is a chance you may get a refund, but it all depends on your mortgage company and insurance carrier’s policy terms.

While purchasing a home in today’s market, there is the great potential to get one priced below what it was worth just a few years ago or below its current tax value. Be very careful about the limits you insure your home for. It may appear to make good economic sense, but in reality your purchase price does not reflect the replacement cost for damages or total replacement of your home and personal property. Always make sure to have the correct limits in place to cover you in the event of a total loss.

There can be severe consequences for not having proper replacement limits of coverage in place. Even a partial claim, like damage to a roof, can result in a dramatic reduction in the claim amount paid by the insurance company if a property is not fully insured. At the time of loss, if the limit of liability on the policy is less than 80% of the full replacement cost of the dwelling, the insurance company will only pay a proportionate share of the full replacement cost.

Insurance carriers use sophisticated replacement cost calculators that work in the background to insure that your property has the proper amount of coverage. The calculators take into account several variables that are based on statistical history of loss, square footage, construction costs and zip code. Other variables, such as swimming pools, past claims history, and the age of the roof are determined on a case by case basis and may impact the premium.

If you think the replacement value is too high make sure you bring that to your agent’s attention so he or she can review with you the different factors that went into the calculation. Sometimes your agent can consult with an underwriter at the insurance carrier to come up with a more appropriate replacement cost amount.
One of the other factors when purchasing distressed or foreclosed properties is finding a good source of information concerning the history of a home. In many cases a Sellers Disclosure Statement is not available. In these cases make sure you ask the insurance agent you are working with to provide you with feed back on what is contained on the CLUE report.

C.L.U.E. stands for Comprehensive Loss Underwriting Exchange, which is a database featuring loss information submitted by 9 out of every 10 insurance companies. A C.L.U.E. report provides a history of about 30 different kinds of losses from wind damage to dog bites that have been filed against insurance policies covering a given property. The report provides information including the dates and types of losses and the amounts paid for each claim. This information is confidential in nature and can only be shared with the client, not a third party such as a real estate agent or loan officer.

The above examples are just a few of the reasons why you should select an Independent Agent like Judge Fite Insurance Agency instead of an agency that only represents one insurance carrier. We have over 30 appointments with insurance carriers and a service level to provide you more options, competitive quotes and answers to your questions.

For more information about insurance for your home, investments, vehicles, or business, contact Judge Fite Insurance Agency today at insurance@judgefite.com or 214-446-2571.

Is there risk in buying or selling in this market?

There is risk every day in everything that we do or touch whether it is cooking breakfast and burning yourself or driving your car to work. There is risk in every real estate market, whether economic times are good or bad. People move to new homes because they have a need. It may be that they just got married, or have a new baby, or are getting a divorce, better would be a job transfer or promotion. Life happens. To me, that is why you buy or sell in any market. If you have the need to move, then any market is workable with the proper education and planning.

Risk comes in when you try to move too fast. If selling when the listing inventory is plentiful, then you must make sure your house is the best on the market, so it beats the competition. It needs to be priced the lowest in the area and in prime condition, if you are in a hurry to move. If you are not priced correctly, then your property can become shopworn so marketing dollars might need to be spent to re-introduce your house to the REALTORS who sell in your area. Otherwise, you may have to wait until the competition sells before your house will move. That is economics. If you are buying, you have more choices when inventory is higher and you can shop for the best home for the money, the bargain. Real estate cycles. Whether your need to buy or sell is for investment or for personal reasons, every market has its advantages. Hire an expert REALTOR to help you find the right home to fit your needs.

Real Estate 411: Why Buy Now?

Here are Jim Fite's top 5 reasons why you should buy real estate NOW! Jim Fite is President of CENTURY 21 Judge Fite Company in the Dallas/Fort Worth Metroplex. Click here to search for your dream home!

Ellis County Texas ain't what she used to be

Midlothian, Texas in Ellis County is a booming residential area in North Texas. Check out this beauty and others by clicking on the photo!

The MORTGAGE Factor: Getting back to the basics

QUICK FACT #1:

What our parents told us was true

At the height of the housing boom, many borrowers had to stretch to afford a house. In some cases agreeing to spend half their monthly earnings on their home and getting into the mortgage with 100% financing. We all know how that turned out. Now, reducing monthly payments to 31 percent is the goal that many financial advisors say is optimal and the amount that is being targeted in the new housing plan to help people who are in mortgage “trouble”. But is that a reasonable goal? And where did that number come from? Its roots may go back more than a century to company towns, where employers would collect a week’s wages for a month’s rent. In the 1920s, as homeownership became an option for more middle-class families, lenders adopted a similar standard: spend a quarter of a month’s income on housing. Though the number has inched up through the years, that general rule of thumb has stuck. I remember my dad advising me early in my college years that my housing costs could not exceed 25% of my pay….thanks dad, I should have listened to you!

Check out all the info at DallasRealEstate411.com!

QUICK FACT #2:
The 28/36 Rule

Financial planners agree that a figure around 30 percent is not a bad place to start. That usually leaves enough to pay for life’s many other costs. Given that the current economic crisis has turned a lot of financial assumptions on their head, it is probably wise to rethink how much of your income should go toward servicing the large debt that is truly homeownership. Here is where the old standard known as the “28/36 rule” comes in to play. Using that rule, households should spend no more than 28 percent of their gross income on housing costs — including mortgage payments, property taxes and insurance — and less than 36 percent on all debt. The total includes obligations like car payments, student loans, credit cards and medical debt.

QUICK FACT #3:
Now is the right time to revisit some of the lessons our parents and grandparents learned long ago.

HOW MUCH CAN I AFFORD? Your housing budget depends on your situation and priorities. One exercise I remember from school involves simple math and planning. Write down all of your expenses. Break them down into expenses that are fixed (utilities, groceries, auto expenses, insurance, etc.) and variable (everything else). Now, look at the variable costs…what am I willing to give up that could be reallocated toward housing?

DO THE MATH Before you start hitting open houses, sketch out a rough budget based on the 28 percent rule of thumb, using a simple mortgage calculator.

DOWN PAYMENT Currently, many consumers have no choice but to make a sizable down payment. If you do not, or cannot, it will cost you dearly in the form of a higher interest rate or fees. FHA is a great option and many times offers lower interest rates and lower down payment options for homes under $271,000.

TAXES Consider the tax savings associated with buying a home, but do not use it as an excuse to buy more than you can afford. Property taxes and mortgage interest are generally tax-deductible, but only if you itemize your deductions. Itemizing makes sense when your individual deductions exceed the standard deduction, which is $11,400 for married people filing jointly in 2009.

RESERVES Ideally, homeowners should have six months of net pay in the bank. But if you halve that figure and save three months of your take-home pay that generally translates into eight months of payments. That does not account for food and other necessities, but it does provide some cushion.

For more information on how to get started with your new mortgage, call CENTURY 21 Judge Fite Company at 800-451-8055, or visit C21JFC.com.

2-Minute 411 Video

Jim Fite, President of CENTURY 21 Judge Fite Company, talks about the mortgage factor in buying a home, and remembering the 28/36 rule.

Real Estate 411: 2-Minute Video with Jim Fite

CREDIT for Home Buyers and Home Sellers.

Jim Fite, President of CENTURY 21 Judge Fite Company shares his thoughts on CREDIT and ideas on how to help you get in the Driver's Seat!

How can I better manage my Credit Score so I can get a new home?

CREDIT for Home Buyers and Home Sellers

Real Estate 411 – FACTS

QUICK FACT #1: 1956 was a year for credit

QUICK FACT #2: So, what's the BIG deal?

QUICK FACT #3: 5 factors determine your score

Want the details on these QUICK FACTS? CLICK HERE!

Real Estate 411 – TIPS

It's a CREDIT driven society we live in, but don't let credit drive YOU

QUICK TIP #1: It's NOT error free

QUICK TIP #2: Get in the driver's seat!

QUICK TIP #3: Talk their language

Want the details on these QUICK TIPS? CLICK HERE!

2-Minute 411 with Jim Fite

Managing CREDIT: Old-school wisdom

Getting into major debt can mean BIG trouble and prevent you from being able to buy the home of your dreams. The task is learning how to effectively . . . CLICK HERE to read complete article.

To find a real estate professional or mortgage counselor who can help you address your credit issues, contact CENTURY 21 Judge Fite Company at 800-451-8055 or email 411@judgefite.com.

What is "Staging" anyway?

Click here to watch the video.

"Staging" is the latest buzzword in real estate, but it simply means to present your home in its best and most appealing light. If you are preparing your home to sell, it is to setup your home to appeal to prospective buyers and showcase the property in a way that makes buyers eager to purchase! In theory, "staging" isn't hard or costly, but in reality, many homeowners find it difficult because it's often hard to see something objectively when we love it. An easy way to see effectively "staged" homes is to visit decorated models. Decorating a model is expensive, but builders are willing to invest the cost because they understand just how well a "staged" home sells.

What Are the Benefits of Home Staging?

>> A staged home sells faster and for more money in most markets
>> Inspectors view a staged home as a home that has been well cared for
>> Appraisers are more likely to appraise a staged home at full value
>> You can't sell what is covered up in clutter
>> Homes that are staged, clean, and free of clutter have an immediate advantage in any market

WHAT IS THE ULTIMATE GOAL OF STAGING?
To sell your home faster at top dollar!

BASIC STAGING RULES
Clean - put the sparkle back!
Fix – anything broken, cracked or dripping
De-Clutter – get rid of 50%
Go Neutral – Neutral colors sell
De-Personalize – Remove objects your buyer can’t identify with

For more on Staging Your Home for Sale….visit http://www.century21judgefite.com/ or click here to download the “10 Easy Steps to Staging…” printable PDF.