Newsletter - May 2008

Many think today’s real estate market is an ideal one for buyers, but it’s a market only for buyers who are prepared, and who understand today’s lending environment…

Today’s ideal buyer has a secure job, can meet the ever-tightening lender’s income and credit requirements, and can afford a higher down payment than what was required in the past. The Median home price as of January 2008 was $201,000. This figure represents a drop of 4.6 percent from the same period in 2007. In January there was a 10-month inventory supply of existing homes for sale.

While this news is great for buyers, don’t forget this… you are investing in a place to “live,” and not in a stock or savings account. You should buy smart, and within your means.

It’s very important for you to know what you can afford… Lenders’ standards are more stringent, and they are requiring a higher down payment. The days of “no money down” are no more. Buyers are expected to spend nothing greater than 28% of their gross monthly income on mortgage payments, real-estate taxes and home insurance. Utilize the Internet’s online calculators to help you determine your spending threshold. It makes sense to get pre-approved for a loan, before you start house hunting. It’s important that you have cash in-hand for closing costs that include legal fees and title charges. Total fees are characteristically 2 percent to 3 percent of the house price; they vary by state and mortgage product. Don’t forget moving expenses and a increase in utility bills (you may be paying mortgage and sewer charges for the first time). Maintaining your home may be a first for you as well.

Understand the market. The Internet is a tremendous tool for buyers. When you’re hunting for a home, review information on areas you are interested in, such as: crime statistics, school standings, job growth and neighborhood conditions.
Make Sure to Negotiate .. because buyers have a good deal of leverage. When a home has been on the market for a long time, or it is empty, the seller may be very willing to negotiate. With a good number of comparable homes on the market all vying for your attention, you’re in the driver’s seat.

Settle down. Plan on living in your home for an extended period of time, perhaps as long as seven to 10 years. Since it may be a while before the market is “up” again, you will need to ride it out. If you can’t make a commitment like this, you may want to pass on purchasing a home for a while.

Home Sellers… don’t be disheartened especially if you’re purchasing a property after you’ve sold a home. You’ll be the lucky buyer on this transaction!

Newsletter - March 2008

There is a little three-digit number that is attached to your name that have a big effect on your life.. It's your credit rating.

Your credit rating is a score derived from a series of items found on your credit report. This report includes a history of residences and bill payments as well as if you have been sued, arrested or filed for bankruptcy. This information is then rated and used to calculate your score. When you apply for a loan or credit card, the company uses this information to determine if you are qualified for credit and at what terms.

Equifax, Experian, and TransUnion. Each provides slightly different information, so it could be to your advantage to order one from each. You will need to provide your name, address, date of birth, and your Social Security number, as well as one other verifying piece of information, such as the amount of your mortgage payment or mother's maiden name. You can request a copy from one or more of these agencies. Take a moment to visit annualcreditreport.com. This is the only legitimate Web site you should use to obtain this information.

High or Low?

'Most scores typically falls between 400 and 500. An average score is around 700. What's important to note: what's considered good or high varies between creditors. Your score changes every time information is updated in your credit file, so one late payment can make a difference. A low score can result in higher interest rates or even the denial of a loan. And remember, just because you close or pay off an account, it can remain on your report for up to seven years.

Where do I get my credit report? Obtaining your credit score is easy and free. You can obtain your credit report once every 12 months from any of the three consumer reporting companies:

I have a report, now what?

You will want to look at your credit report before malting major purchases like buying a house or car to ensure it's accurate. You not only learn your credit score but you can also guard yourself against identity theft. If you find any of the information is inaccurate, inform the reporting agency in writing. It is their job to investigate and report back. Also, you will want to work toward fixing any problems you have encountered so your score improves. This means paying off credit cards, and taking control of your credit.

You can learn more at wwwftc.gov.

Newsletter - January 2008

One Size Does Not Fit All When It Comes To Real Estate Contracts

By: Robert L. Baker, Jr., Esq.

Sure, when shopping for a retirement gift for the guy in the corner office that you have never actually spoken to, the one size fits all approach is fine. You want something general that will hopefully appeal to the masses. This, however, could not be further from the truth when it comes to a real estate contract.

The real estate contracts many of you are familiar with from your last home sale or purchase were drafted in an effort to be generally applicable to most transactions. These form contracts contain language that is non-specific and vague. Needless to say, the standard form real estate contracts used in the majority of transactions are not specifically tailored to your needs as a buyer or seller. What’s more, these contracts often contain omissions and loopholes that frequently leave the client unprotected should problems arise over the course of the purchase or sale.

There is a way to avoid this problem: have an attorney
review your contract. The law provides a seventy-two hour attorney review period that begins after the execution of your real estate contract. During this time period, your attorney can review the contract and make changes that fit your precise needs. Why settle for a generic real estate contract when you can have one customized to your transaction? The peace of mind you will feel knowing that you are protected is well worth the small expense of hiring an attorney to represent you. Considering that a home is usually the largest purchase or sale that people will make in their lifetime, it just makes sense to be as protected as possible. You owe it to yourself to do so.

The Law Office of Robert L. Baker, Jr., Esq. LLC is available to handle all of your real estate needs, as well as any other legal needs you may have. Feel free to call us at (609) 208-0777 for a free initial consultation. We will be glad to assist you.

January’s Tidbits

January’s gemstone is the Garnet, and its flower is the Carnation.

In Roman mythology, Janus was the god of gates, doors, doorways, beginnings, and endings. His namesakes are the month of January, and the word “Janitor,” the caretaker of doors and halls. Janus was frequently used to symbolize change and transitions such as the progression of past to future, of one condition to another, of one vision to another, the growing up of young people, and of one universe to another. He was also known as the figure representing time, because he could see into the past with one face and into the future with the other. Therefore, Janus was worshipped at the beginnings of the harvest and planting times, as well as marriages, births and other beginnings.

Top Ten New Year’s Resolution (See if any are on your list).
Spend More Time with Family and Friends: General Nutrition Centers, Quicken, are a few companies that conducted recent polls showing that more than 50% of Americans vow to appreciate loved ones, and spend more time with their family and friends this year.

Fit in Fitness: Regular exercise is associated with more health benefits than anything else known to man. Fitness studies reveal that staying fit reduces some cancer risks, increases longevity, helps achieve and maintain weight loss, enhances mood, lowers blood pressure, and improves arthritis. Exercise —it keeps you healthy and makes you look and feel better.
Weight loss: Set reasonable goals and stay focused. A short-term diet is not the answer, change your eating habits for good!

Quit Smoking: There are so many proven quit-smoking aids. On average, smokers try around four times before they can quit, but they do it. When you stop smoking, your family and friends will reap the benefits as well. It’s time… Start enjoying the rest of your smoke-free life!

Enjoy Life More: Get out, and try something new! How about a new hobby, performing volunteer work, attending a theater
performance, or a relaxing and healing experience at a local spa? Anything that brings you joy is the way to go.
Quit Drinking: Or at least, lighten up a bit.

Get Out of Debt: Get a handle on your finances, and don’t use the excuse that the item was on sale. Pay yourself and invest in your future. Try “voluntary simplicity,” and buy only what you need for a while. Owning “things” has nothing to do with happiness.

Learn Something New: Whether you are considering a career change, want to learn a new language, or fix your car, you will discover that education is one of the easiest and most motivating New Year’s resolutions to keep.
Help Others: Spend time helping out at your local library, animal shelter, or mentor a child. If you don’t have the time, then try donating your furniture or clothing to a worthwhile organization. “The hand that gives the rose, retains the fragrance.” Make a
positive difference in someone’s life!

Get Organized: Here’s a reasonable goal that you can accomplish. You may discover items you didn’t know you had! That could be a good thing! But, whether your pleased to discover something worthwhile, or have to toss it, you’ll feel a lot better when things are in order. Your closets will look bigger, the house’s appearance will be vastly improved, your car will shine as if it was new again, and your satisfaction level will soar to a perfect “10!”

Newsletter - December 2007

Advice for Home Sellers…

If you want to sell your home quickly, price it right. When prices are coming down, sellers must understand that to sell their homes, they should drop their asking price. Forget what the house next door sold for last year, and ignore what comparable homes are listed for today. What really maters is the recently “sold” prices of comparable homes. Ask your realtor to help with this assessment. Price your home accordingly, or shave a little off your asking price. Aggressive pricing often attracts multiple bids, and you may find yourself with several offers, and a higher selling price.

Appearances count … The better your home looks, the faster it will sell. If there’s no place to hide all that “stuff,” consider renting a storage unit (approx. $150 per month for a 10 x 15 unit) to make your home look more spacious. It’s a small price to pay when you consider the few thousand dollars you may net on your house sale, and the shorter amount of time you’ll be paying mortgage and upkeep payments as well.

Expect Buyers to be Bargaining Assertively. This is especially true if there are several similar homes on the market in your area, listed at approximately the same price.
This excerpt was taken from the National Association of Realtors® 2007 Profile of Buyers’ Home Feature Preferences.

What single home feature do buyers say they want most in a new home? The answer is Central Air Conditioning.
Being cool is important to buyers in all regions of the country. Nearly three-quarters of homebuyers ranked central air conditioning as “very important” for their new home and 83 percent of buyers purchased a home with central air. Other highly desired home features: a garage for two or more cars (57 percent), a walk-in closet in the master bedroom (53 percent), and a backyard or play area (50 percent).

What’s the median size of homes purchased between late 2005 and early 2007? The answer is 1,840 square feet
Home sizes are growing. The size of the typical home purchased by survey respondents increased by 100 square feet since 2004, according to the survey results. Meanwhile, the median age of recently purchased homes decreased to 12 years from 15 in that same time span.

Did you know…Repeat buyers tend to be choosier than first-time buyers. In particular, repeat buyers place much more emphasis on these home features:
Oversized garages and master bedroom walk-in closets.
Sixty-five percent of repeat buyers said they wanted a garage with two or more spaces, compared with 41 percent of first-time
buyers; 61 percent said they wanted a walk-in closet in the master bedroom, compared with 38 percent of first time buyers. Although repeat buyers placed more importance than first time buyers on nearly all home features surveyed — with the exception of a backyard or play area, and proximity to work — big garages and walk-in closets are two features that repeat buyers were much more likely to seek in their new home.

What did new-home buyers most wish their home had more of? The Answer is Storage – and this is another good reason to rid your home of clutter. Nearly half of new-home buyers said more storage space would make their residence ideal. Among all buyers — of homes both old and new — 40 percent would have preferred more closets and nearly 60 percent wish for a larger kitchen. Regardless, more than 90 percent of homebuyers said they are satisfied with the home they purchased.