Joe Capote

February 2, 2011 • 6:03 pm 0

What My Realtor Did Right

When it comes to overall satisfaction of their real estate agent, 49% of traditional buyers and 69% of internet buyers reported a ‘so-so’ level of satisfaction, according to the California Association of REALTORS 2010 Survey of California Home Buyers. The same survey reported that  36% of those surveyed would ever use their agent again. That is a pretty horrific success rate, particularly in a business where client referrals and repeat business are some important.

So what did the survey indicate that home buyers thought were important traits in their real estate agent? Here is the skinny:

  • 69% of buyers indicated that an agent’s response time had an extremely important impact on their agent-selection process.
  • 38% of internet expected their agent to respond instantly to any communication, included submitted forms.
  • 31% of regular buyers had the same expectation of immediate response to any communication.
  • 74% of buyers listed ‘always quick to respond’ as the top reason for their satisfaction with their agent.

It’s clear that quick response is highly valued by today’s savvy homebuyers. What other traits were highly valued?

  • One who makes themselves available to their clients after the sale.
  • Knowledgeable
  • Aggressive negotiation skills
  • Attentiveness
  • Setting of proper expectations

What do you think? Do you have any real estate agent horror stories?

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February 11, 2010 • 12:17 pm 0

10 Questions to Ask Your Lender

1. What are the most popular mortgages you offer? Why are they so popular?

2. Which type of mortgage plan do you think would be best for me? Why?

3. Are your rates, terms, fees, and closing costs negotiable?

4. Will I have to buy private mortgage insurance? If so, how much will it cost, and how long will it be required? (NOTE: Private mortgage insurance is usually required if your down payment is less than 20 percent. However, most lenders will let you discontinue PMI when you’ve acquired a certain amount of equity by paying down the loan.)

5. Who will service the loan — your bank or another company?

6. What escrow requirements do you have?

7. How long will this loan be in a lock-in period (in other words, the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if it drops during this period?

8. How long will the loan approval process take?

9. How long will it take to close the loan?

10. Are there any charges or penalties for prepaying the loan?

Used with permission from Real Estate Checklists & Systems, http://www.realestatechecklists.com.

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November 6, 2009 • 10:41 am 0

First Time Homebuyer Tax Credit Extension Approved by Congress

It’s (mostly) official. After two weeks of delays, congress has voted to extend the first time homebuyer tax credit. The Senate voted 98-0 on Wednesday and yesterday the House voted 403-12 on legislation that includes the extension and expansion of the credit. The President is expected to sign the legislation, perhaps as early as today.

The new tax credit extension has a few differences. For example, income limits have been raised to $125,000 for a single buyer, $225,000 thousand for a married couple. This limit is bumped up from $150k total, and is a good move for areas where the cost of living is higher (like ours). Another difference a tax credit has been added for move-up buyers. Current homeowners could now be eligible for a $6500 tax credit for selling their current home and purchasing a new home.

For a brief the of changes to the homebuyer tax credit extension, the NAR has a good breakdown of the information HERE. There is also a really helpful list of FAQ’s from the NAR posted HERE.

Filed under: Buyer's Blog, Seller's Blog, , ,

November 5, 2009 • 10:28 am 0

Senate Clears Homebuyer Tax Credit Extension; May Pass as Early as This Week | RISMedia

Senate Clears Homebuyer Tax Credit Extension; May Pass as Early as This Week

By Steve Cook and Brett ArendsPrint Article Print Article

senate_1105RISMEDIA, November 5, 2009—After two weeks of delay, the Senate cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers. By an 85 to 2 roll call vote, the Senate voted to cut off debate on a package of measures that includes the homebuyer credit, making it virtually certain that the legislation will reach President Obama for his signature this week. 

The homebuyer tax credit, due to expire at the end of November would be extended through April 30 of next year. First-time buyers who are in the process of making a purchase would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline. 

For the first time, the legislation that was recently cleared makes move-up buyers as well as first-time buyers eligible for a credit. The $8,000 maximum first-timer credit will continue and will now be available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law. A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years. 

For homebuyers across the country, the expanded tax credit would allow more people to qualify for the credit. While two-thirds of American families own their own home, and most earn less than the income limits that have been established within the extension, more buyers may be eligible. Move-up buyers don’t have to sell their current home to qualify for the new credit, but the money cannot be used to buy a vacation home. “It’s only for a primary residence,” said Regan Lachapelle, a spokeswoman for Sen. Harry Redi (D-Nev.), who helped engineer the deal. “In expanding the tax credit, we are helping first-time home buyers, as well as homeowners looking to move up to a new home, but we would exclude from the credit speculators who may have recently purchased a home intending to flip it for a fast profit,” said Senator Max Baucus, Democrat of Montana and chairman of the Finance Committee. 

The tax credit has fired-up the housing market, driving existing home sales to the highest level in over two years. The National Association Realtors reported sales jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units in September and are 9.2% higher than the 5.10 million-unit pace in September 2008. 

The legislation included provisions added to address complaints of fraud as well. The Internal Revenue Service is given greater authority to oversee the process to root out fraud, and provisions are added in response to past abuses of false sales or underage buyers. An investigation by the Treasury Department’s Inspector General for Tax Administration found that more than 580 children, some as young as four years old, had received $627,000 in first-time homebuyer credits. The IRS has identified 167 suspected criminal schemes and opened nearly 107,000 examinations of potential civil violations of the first-time homebuyer tax credit.

For more information, visit www.realestateeconomywatch.com and www.wsj.com. 

via rismedia.com

Tax credit extension now includes a move-up homebuyer tax credit of $6500 and higher income limits for firt time homeowners. C’mon congress, do it!

Posted via web from josephcapote’s posterous

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October 24, 2009 • 8:29 pm 0

Dodd Looks to Extend First-Time Homebuyer Tax Credit

Based on this, it appears that at least some of congress is listening to the N.A.R’s efforts. The FTHTC needs to be extended, and should even be increased in areas where the median home price beats the U.S. average. Reducing foreclosures in also a good part of the effort, as loan modifications regulations should be pushed. Especially to institutions who have accepted TARP funds.
By Stacy Kaper, American Banker
October 21, 2009

Senate Banking Committee Chairman Chris Dodd on Tuesday endorsed extending and expanding a first-time homebuyer tax credit that was included in the economic stimulus package but is due to expire next month. 

The Connecticut Democrat was joined by Sen. Johnny Isakson, R-Ga., who testified at a committee hearing Tuesday that the $8,000 first-time homebuyer tax credit should be continued through June and broadened to more homebuyers. 

“The credit is set to expire in five weeks. But the work of stabilizing the housing market won’t be done,” Sen. Dodd said at the hearing. 

“We still need to use every tool at our disposal to try and fix this problem.” 

Dodd added that reducing foreclosures needs to be a part of any housing recovery effort. 

“The utility of the homebuyer tax credit will be maximized only if it operates in tandem with an effective program to protect struggling homeowners from foreclosure as well.”

Posted via web from josephcapote’s posterous

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September 29, 2009 • 12:10 pm 0

10 Questions to Ask Home Inspectors

Before you make your final buying or selling decision, you should have the home inspected by a professional. An inspection can alert you to potential problems with a property and allow you to make an informed decision. Ask these questions to prospective home inspectors:

1. Will your inspection meet recognized standards? Ask whether the inspection and the inspection report will meet all state requirements and comply with a well-recognized standard of practice and code of ethics, such as the one adopted by the American Society of Home Inspectors or the National Association of Home Inspectors. Customers can view each group’s standards of practice and code of ethics online at http://www.ashi.org or http://www.nahi.org. ASHI’s Web site also provides a database of state regulations.

2. Do you belong to a professional home inspector association? There are many state and national associations for home inspectors, including the two groups mentioned in No. 1. Unfortunately, some groups confer questionable credentials or certifications in return for nothing more than a fee. Insist on members of reputable, nonprofit trade organizations; request to see a membership ID.

3. How experienced are you? Ask how long inspectors have been in the profession and how many inspections they’ve completed. They should provide customer referrals on request. New inspectors also may be highly qualified, but they should describe their training and let you know whether they plan to work with a more experienced partner.

4. How do you keep your expertise up to date? Inspectors’ commitment to continuing education is a good measure of their professionalism and service. Advanced knowledge is especially important in cases in which a home is older or includes unique elements requiring additional or updated training.

5. Do you focus on residential inspection? Make sure the inspector has training and experience in the unique discipline of home inspection, which is very different from inspecting commercial buildings or a construction site. If your customers are buying a unique property, such as a historic home, they may want to ask whether the inspector has experience with that type of property in particular.

6. Will you offer to do repairs or improvements? Some state laws and trade associations allow the inspector to provide repair work on problems uncovered during the inspection. However, other states and associations forbid it as a conflict of interest. Contact your local ASHI chapter to learn about the rules in your state.

7. How long will the inspection take? On average, an inspector working alone inspects a typical single-family house in two to three hours; anything significantly less may not be thorough. If your customers are purchasing an especially large property, they may want to ask whether additional inspectors will be brought in.

8. What’s the cost? Costs can vary dramatically, depending on your region, the size and age of the house, and the scope of services. The national average for single-family homes is about $320, but customers with large homes can expect to pay more. Customers should be wary of deals that seem too good to be true.

9. What type of inspection report do you provide? Ask to see samples to determine whether you will understand the inspector’s reporting style. Also, most inspectors provide their full report within 24 hours of the inspection.

10. Will I be able to attend the inspection? The answer should be yes. A home inspection is a valuable educational opportunity for the buyer. An inspector’s refusal to let the buyer attend should raise a red flag.

For more information on the home inspection process, and other eduction about buying a home, visit my buyer’s center at http://www.JosephCapote.com.

Source: Rob Paterkiewicz, executive director, American Society of Home Inspectors, Des Plaines, Ill., http://www.ashi.org.

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September 22, 2009 • 3:19 pm 0

Should I Buy a Home or Continue Renting?

Many folks as the question, “Should I rent or should I own?”. The answer is maybe. It depends on your particular situation to see what is right for you. When pondering the decision, consider the following factors:

•It’s not just about paying the mortgage. There are other financial factors that you need to take into consideration when it comes to your monthly payments. While it’s true that with every mortgage payment you make, you build equity, there are other expenses to consider besides your mortgage payment. For example, you will have to pay property taxes on your home and will also face additional monthly and periodic expenses, such as homeowner’s insurance, repair and maintenance costs. If you’re considering buying a condo, the homeowner’s association fees should be factored.
•Don’t forget the cost of buying a home. In most cases, you’ll need a down payment (usually between 5 percent and 20 percent of the purchase price) and have to pay closing costssuch as attorneys’ fees, loan origination fees (often referred to as “points”) and recording fees. Be sure to find out approximately how much you’ll need in total closing costs before you buy any property. Your realtor can provide you with all the estimated closing costs, and your lender is required to provide a ‘good faith’ estimate within three days of submitting the loan application.
•There are tax advantages to owning a home. For example, the mortgage interest you pay is, in many cases, tax deductible. So, too, are your property taxes in most instances.
•A home can be a good investment. In addition to simply putting a roof over your head, your home can also be an excellent investment. That’s because home prices often rise from one year to the next. (When you sell your home, you can cash in on this appreciation. Buying and selling your primary residences can incur stiff taxes and penalties, so check with a tax advisor prior to looking to sell your home.) As with any investment, however, “past performance is no guarantee of future returns.” Simply stated, home prices don’t necessarily rise every year. Some years, they actually fall instead of rise. For that reason, it’s possible to lose money if you “buy high” and “sell low”.

How long do you plan to live in your home? If you know you have a job transfer that will take you to a different geographic region within the next year or so—or you aren’t sure you want to stay in the area in which you currently live—it may not make sense to purchase a home. Why? Because you pay closing costs when you both buy and sell a property. And your out-of-pocket costs in both transactions could be high, especially if your home doesn’t appreciate much in value while you own it. In such instances, you could actually have to come up additional cash to pay the bank when you sell your home.

Benefits of home ownership are good, but it’s up to you to determine whether is is right.

For more information, visit my buyer’s center at http://www.JosephCapote.com

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September 15, 2009 • 3:53 pm 0

Why Choose FHA?

I know that I have written about FHA loans before. This post aims to be a lot less long-winded and more straight to the point. So why should you, Mr./Ms. potential borrower/first time homebuyers, choose an FHA loan?

  • FHA loan limits for a 1 unit property are $625,500
  • Minimum FICO score of 580
  • Permits non-occupying co-borrowers
  • 3.5% down payment can be a gift
  • 6% seller credit for non-recurring closing costs

What does this mean? Say you are a first time homebuyer and want to purchase a home, but your credit isn’t the best and/or you have little money for downpayment closing costs. The FHA can give you hope. Take the following scenario:

You want to buy a cherry, 1br/1ba condo with a pool/jacuzzi in a desirable mid-peninsula neighborhood.

  • Purchase Price: $348,000
  • 3.5% Down Payment $12180
  • Closing Costs estimated at $8000
  • Total cash required at closing: ~$20,000

Now, if you ask the seller to credit back the closing costs (the purchase price is now $356,000, and the seller pays for your non-recurring closing costs, allowing you to finance them as part of the loan) your cash to closing in $12,180. Now, if you have a rich uncle who is willing to gift you the 3.5% downpayment, (thanks, unc) your cash to closing is $0.00.  Additonally, the first time homebuyer tax credit ($8,000) and the Mortgage Protection Program are available to help.

Think you can’t afford to own a home, think again. The rates are low, there are right priced homes available (be flexible) and you can qualify for FHA loan with a 3.5% downpayment. For more information, visit my website at www.JosephCapote.com

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September 15, 2009 • 10:42 am 0

Take the Stress Out of Homebuying

When it comes to real estate, there is a lot to know and a lot to think about. It’s no wonder that buying or selling real estate can be an extremely stressful situation, for many reasons. Here are some tips to keep the stress level down, and keep the buying/selling process as comfortable as possible.

Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.

1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.

2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer — you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make that much difference in price, and a good home won’t stay on the market long.

3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family — the people who will be living in the home.

4. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.

5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.

6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself — room size, kitchen, etc. — that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.

7. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.

9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.

10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home’s most important role is to serve as a comfortable, safe place to live.

Finally, my personal favorite, eat lots of M+M’s. These really do a lot to soothe any stress associated with buying or selling real estate. Chocolate or Peanut (or even Almond) is a personal decision, of course!

For more information, check out my website at http://www.JosephCapote.com.

Filed under: Buyer's Blog, Seller's Blog, , ,

September 11, 2009 • 7:15 pm 0

The Mortgage Protection Program

On April 2, 2009 the Housing Affordability Fund launched a new program designed to provide peace of mind to first-time buyers who are hesitant to enter the housing market due to concerns about potential job loss, and subsequently being unable to meet their monthly mortgage obligations. Qualifying buyers can receive up to $1,500 a month for up to six months in the event of job loss, a qualified co-buyer can also receive a $750 benefit for up to six months to help pay the mortgage.

To qualify for the Mortgage Protection Program, Applicants must:

. · Be a first-time home buyer – someone who has not owned
property in the last three years (includes co-buyer).
· Open escrow April 2, 2009, or later, and close on or before
Dec. 31, 2009 (purchase agreement cannot be dated before April 2, 2009)
· Use a California REALTOR® in the transaction
· Purchase the property in California
· Be a W-2 employee (cannot be self-employed)

As always, there are some strings attached, but overall a good program for first time homebuyers. The demand in California is really high righ now. For more information, visit my wesite at http://www.JosephCapote.com or contact me at JCapote@FrancoRealEstateGroup.com

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