Should You Sell Now or Wait for Spring?

Watch on your mobile device >>

One of the most common questions that we get each and every year is whether a home seller should try to sell their home during the cold, winter months or wait for spring to put it on the market? There are pros and cons to every situation, but I want to give you a few things to think about that you may not have considered.

Many people believe that it is always best to list and sell a home during spring. After all, isn't that when everyone else does it? Plus, there are some negatives to selling during the winter.

For one thing, winter is the holiday season. You have Thanksgiving and Christmas, among other holidays. Many people don't want the showings during the holidays. They don't like the idea of people walking through their home with snow on their shoes. They have their holiday decorations up and don't really want anyone messing with their festive home.

Many sellers think that there are less buyers during the winter, and that is probably true. However, consider this: buyers who are looking around the holidays are serious. Why else would they be looking for a home at that time of the year? Many relocation companies move employees during the winter because they want to get things done before the end of the year. Relocation buyers are often some of the strongest purchasers you can find.

Some sellers are also under the assumption that prices go up in the spring. Unfortunately, the current real estate market does not point to the idea that prices will rise in the spring. Experts hope that they do not fall further, in fact. Waiting for prices to go up so quickly may be a dangerous game for a seller to play.

There are some absolute positives to putting your home on the market during winter. First, the interest rates are very low right now. Buyers are getting into homes for 3.75% to 4% right now. No one can predict the future, so you want to strike while the iron is hot.

Also, there are less homes on the market in winter which means way less competition for a home seller. The greater metro area had 20% less listings going into the winter months than will be true during spring.

On a good note, homes are still selling. I checked the records, and last winter through February, our team sold 60 homes! I also checked the MLS records and saw that 2,363 homes sold last year in our area. Your home only has to be ONE of them.

In short, if you don't mind the little inconveniences of selling during winter, you can reap big rewards. Call on us today to find out more about putting your home on the market the right way.

What Are FHA Loans and How Do They Benefit Me As A Consumer?

Watch on your mobile device >>

The Federal Housing Agency (FHA) doesn’t directly offer loans. Instead, its purpose is to provide mortgage insurance for Americans to purchase or refinance a principal residence.
To put it another way, the mortgage loans are funded by private lending institutions (mortgage companies, banks, savings and loan associations, etc.), and those mortgages are then insured by FHA/HUD.

The Benefits of FHA Loans

If you qualify as a prospective homeowner, these loans have three great benefits. First of all, your down payments are lower. Second, closing costs are also lower. And, finally, it’s easier to qualify for credit.

Who Qualifies?

FHA has programs for:

• First-home buyers
• Seniors
• Fixer uppers
• Manufactured housing and mobile homes
• Energy efficiency, etc.

If you’re a first-time home buyer, a FHA loan can be a good deal for you. See the eligibility requirements below. Later, I’ll cover the fixer-upper category requirements. Check with the FHA on other programs.

First-Home Buyer Programs

These programs have the following eligibility requirements:

• You must meet standard FHA credit qualifications (judged by the individual’s credit record).
• You’re eligible for approximately 97% financing.
• You’re able to finance the upfront mortgage insurance premium into the mortgage.
• You’re also responsible for paying an annual premium.
• Within this category, the eligible properties are one-to-four unit structures. As of this writing, the highest maximum FHA mortgage is $362,790 while the lowest maximum amount is $200,160.


The 203(k) Program for Fixer-Uppers


The 203(k) program issues loans to allow you to buy or refinance a property. In the loan, you can also include the cost of making the repairs and improvements.

The loans are provided through approved mortgage lenders nationwide, and they’re available to buyers wanting to occupy the home.

The down payment requirement for an owner-occupant (or a nonprofit organization or government agency) equals about 3% of the acquisition and repair costs of the property.

There are several steps to obtaining such a loan:

• You find a fixer-upper and sign a sales contract after doing a feasibility analysis of the property with a realtor.
• The contract should state that you’re seeking a 203(k) loan. It should also state the contract is contingent on loan approval based on additional required repairs by the FHA or the lender.
• You then select an FHA-approved 203(k) lender and arrange for a detailed proposal showing the scope of work to be done. The proposal should include a detailed cost estimate on each repair or improvement of the project.
• The appraisal determines the value of the property after renovation.
• If you pass the lender's credit-worthiness test, the loan closes for an amount that will cover the purchase or refinance cost of the property, the remodeling costs and the allowable closing costs.
• The amount of the loan also includes a contingency reserve of 10% to 20% of the total remodeling costs. It’s used to cover any extra work not included in the original proposal.
• At closing, the seller of the property is paid off and the remaining funds are put in an escrow account to pay for the repairs and improvements during the rehabilitation period.
• The mortgage payments and remodeling begin after the loan closes.


You can decide to have up to six mortgage payments (PITI) put into the cost of rehabilitation if the property is not going to be occupied during construction, but it cannot exceed the length of time it’s estimated to take to complete the rehab.

• Escrowed funds are released to the contractor during construction through a series of draw requests for completed work.
• To ensure completion of the job, 10% of each draw is held back; this money is paid after the lender determines there will be no liens on the property.

Whew, somewhat complicated, isn’t it? Well, we’re dealing with a government program! But, FHA loans can be a good deal for you, and I’m available to guide you throughout the entire process. Just give me a call today!

Home Inspector to the Rescue!

Watch on your mobile device >>

You Better Give Sherlock Holmes a Ring!

No, you don't need the fictional detective inspector. However, you do need a home inspector! Think of this as a "pre-emptive strike" to maintain or increase your home's value before you put it on the market. Here are the benefits an inspector provides you:

Benefit 1: The inspector can uncover any problems that need fixing, and you can correct them before any potential buyers enter your home. Such an inspection can prevent your sale from falling through!

Benefit 2: With an inspection, you can show prospective buyers receipts to prove the work has been done. Buyers love proof! In reality and in their eyes, it underpins the value of your home and the asking price.

Benefit 3: You may be able to factor the cost of the inspection into the asking price for your home!

Benefit 4: When you have a pre-sale home inspection completed, you're able to estimate if the discount the prospective buyer is asking is reasonable. In other words, you can refuse unreasonably low offers if you know the value of your house, including the degree of its defects.

So, How Do I Find a Qualified Home Inspector?

I can recommend a certified home inspector who will do a great job for you. However, if you decide you want to do it on your own, make sure he or she is qualified!

Con artists sometimes pose as home inspectors, taking your money and giving you nothing but grief in return. Here's how to know if an inspector is the real deal:

Ask your friends for referrals. If they've had a good experience, go with that home inspector. I’d recommend you interview a minimum of two or three inspectors before choosing one. Make sure they’re full-time professionals conducting several inspections a year.

If possible, select a home inspector who’s a member of The American Society of Home Inspectors or the National Association of Home Inspectors.These association members follow a stated code of ethics. In addition, they’re prohibited from having a professional interest in the sale, repair or maintenance of a property they inspect. They’re also forbidden from using their inspection business as a way to find customers for a handyman service that they “happen” to own. You may want to go on the Internet and use ASHI’s “Find a Home Inspector” link to identify potential candidates in our locality.

As part of the interview process, ask for samples of comprehensive reports (about 20-50 pages in length). The samples should be painstakingly done and backed up with complete details, including photos and diagrams. If an "inspector" refuses to give you a report or provides only a sloppily written 2-to-5 page sample, run the other way!

What Does a Home Inspector Cost?

Frankly, the rates vary. On a national level, the rates fall in the range of $200 to $400. As part of the interview process, I recommend you ask several inspectors for their rates so you can get an idea of the price range. In the end, keep in mind that while the cost of an inspection may seem high, it can actually add several thousand dollars to the value of your home! So, don't think of it as a cost; think of it as an investment!

What Exactly Does a Home Inspector Evaluate?

In general, he or she will look at the following areas:

- Electrical System Wiring, Service Panel and Service Capacity

- Energy Conservation/Safety Items

- Exterior Walls, Siding, Trim

- Floor, Wall, Ceiling, Roof Structures

- Foundation, Footings, Crawl Space, Basements, Sub-flooring, Decks

- Gutters, Downspouts

- Heating & Cooling Systems

- Insulation & Ventilation

- Interior Floors, Walls, Ceilings

- Moisture Intrusion/Mold

- Overall Structural Integrity

- Plumbing Systems

- Property Drainage/Landscaping

- Roof & Shingles, Chimneys, Attic

- Walks and Drives
 - Windows, Doors, Cabinets, Counters, etc. 

Should I Be Present During a Home Inspection?

You bet! A typical inspection takes three hours or more, so I recommend that you be present for at least the first 30 minutes to make sure the job is being done thoroughly. At the end of the inspection, the home inspector should give you a point-by-point summary of what needs to be corrected in order to add value to your home!

Hope you enjoyed this very useful information about home inspection! If you have more questions, please don't hesitate to contact me!