Monthly Archives: September 2011

Step 5 : Make An Offer!

by Nouman Mirza

Submit Offer!So you’ve found your dream home and are really excited to get it before someone else does? Before you let emotions take over, just remember that it is still an investment. Purchasing a home is not something as simple as buying gas, groceries or clothing. It requires research from a skilled professional to find the value, prepare legal contracts and then present your offer to the seller (or seller’s realtor)! When making an offer, make sure your Realtor covers these basics:

Price: You need to make sure that the price you are offering is the fair market value. If the house requires repairs, make sure to factor those into your cost when making an offer. If there are many buyers competing, more than likely the seller will get higher than their asking price so keep that in mind as you set your price. And ALWAYS Continue reading →

Short Sale In A Nutshell

by Nouman Mirza

Short Sale ManWhether you like it or not, short sales are part of real estate and they’re not going away anytime soon. Roughly 40% of home sales in today’s market are short sales or foreclosures! Distressed properties are well worth their value but before you get involved in the short sale, it is important to really understand the basics.

What is a short sale?
Short sale  is defined as a sale where the debt owed against the property exceeds the property’s market value. The lender normally incurs a loss and must agree to the sale in writing, thus preventing a foreclosure if the home sells.

What are the seller’s benefits?
The number one benefit for the seller is that they will avoid foreclosure or bankruptcy, both of which Continue reading →

Important Questions for Fixed vs ARM Loans?

by Nouman Mirza

Fixed vs ARMSo after reading the pros and cons of a fixed or adjustable rate mortgage, I’m sure you know which one is the best for you? Before you finalize your decision make sure to ask yourself these important questions:

  1. How long do you plan on staying in the home? If you plan to stay in the house for only a few years, it would make sense to take the lower rate ARM, especially if you can get a reasonably priced 3/1 or 5/1. Your payment and rate will be only and you can build up your savings for a bigger home down the road. Plus, you’ll never be exposed to huge rate adjustments because you’ll be moving before the adjustable rate period begins. Continue reading →

Time Grows Short for Congress to Act on Flood Insurance Deadline!

by Nouman Mirza

After unanimously passing through the Senate Banking Committee on Sept. 8, the Flood Insurance Reform Act of 2011 is one step closer to helping the 5.6 million Americans in 21,000 communities who rely on the National Flood Insurance Program (NFIP) to protect their homes from flood damage. But with differences between House and Senate bills to iron out, a short-term extension of the NFIP through Nov. 18 may be needed since the program expires on Sept. 30. Continue Reading →

Visit houselogic.com for more articles like this.

Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

Fall Maintenance Tips

by Nouman Mirza

Fall MaintenanceToday is the autumnal equinox, which marks the first day of Fall. From here on out, we have nothing but cooler days, longer nights, football, fall foliage and of course the upcoming holiday festivities! But before we get caught up in all the autumn changes, remember that your home has to be readied for the changes as well! Here is a list of things you should take care of before it’s too late:

  1. Examine your roof/gutters/downspouts. You need to clear leaves, dirt and pine needles from gutters and examine downspouts for damage or loose pieces. Check the roof, specially around the chimney, sky light and any other openings in the roof for any leaking problems.
  2. Examine the walkway. Before the land is covered in snow, make sure to walk around the house and find any cracks or loose paver material on your entryway, sidewalk and other walkways. Fix these issues before it gets too slippery and becomes a tripping or falling hazard. Continue reading →

Pitfalls of Pricing High!

by Nouman Mirza

Pitfalls of Pricing High!With modern technology, real estate information is readily available and buyers are more educated and informed than ever before. The chances of you pricing your home high and selling it to an uneducated buyer are slim to none. Whether you plan to list your home or already have an overpriced listing, consider these dangers as you implement your marketing strategy:

  1. PITFALL #1 – TIME: Historically, the first 30 days on market are the most critical for any home since it’s the greatest potential for new buyer traffic. Often seller’s think that if they start high they can always come down later. Even though the price can be brought down later, you’ve already lost on your best buyers during the 30 days. Another downside is the time the home sits on the market. From the buyer’s perspective, the length of time a home sits on the market can be a sign for red flags since it could mean a possible sign of unmotivated seller or just problems with the home itself.
  2. PITFALL #2 – COMPETITION: An overpriced home not only sits on the market but also helps the competition. It is a cue to the buyers that they can get the same or similar home just down the street for a cheaper price. A buyer will choose a home with fewer amenities and less upgrades if there is a large price difference. Continue reading →

Step 4 : Look At Homes!

by Nouman Mirza

Search For HomesMillions of new and existing homes are sold each year. There isn’t a shortage of homes but there is a shortage when it comes to finding the best homes that meet YOUR needs. Now that you’ve gotten the loan pre-approval, you must be very eager to go start looking at homes? Before you jump into a car and drive away, consider the following:

  • Is Your “Needs-List” Ready? As I had said previously, you want to have a concrete list of things that you need in your room. There are many homes with 3 bedrooms, 2 baths and at the same price but each home will have a different design, location, taxes and interior and exterior finishes. Make sure you know exactly what you want in terms of location, amenities, design and any other features that you may want or need.
  • Where Do You Begin Your Search? The best place to search for homes is online. You can use the advanced search at www.pwrealty.com to find your next dream home. When looking at homes online, you should avoid homes that have no photos or very little information as these can be signs of homes in poor condition or unprofessional real estate agents. You can also narrow or widen your search based on the mapped search feature. Continue reading →

Fixed or ARM Loans?

by Nouman Mirza

Fixed vs ARMEven though I am not a loan officer, I will always get clients that want my opinion on fixed or adjustable mortgages. The low initial cost of adjustable-rate mortgages (ARM) can be very tempting but the carry a degree of uncertainty. However, fixed rate mortgages offer rate and payment security, but they can be more expensive. So here are some pros and cons to help you decide on your loan search:

PROS:

FIXED RATE ADJUSTABLE RATE (ARM)
  • Rates and payments remain constant. There won’t be any surprises even if inflation surges out of control and mortgage rates increase.
  • Stability makes budgeting easier. People can manage their money with more certainty because of their housing outlays don’t change.
  • Simple to understand, so they’re good for first-time buyers who wouldn’t know a 7/1 ARM with 2/6 caps if it hit them over the head.
  • Feature lower rates and payments early on in the loan term. Because of this, lenders can use lower payments when qualifying and buyers are able to buy more expensive home than otherwise could.
  • Allow borrowers to take advantage of falling rates without refinancing.
  • Help buyers save and invest more money. Someone who has a payment that’s $100 less with an ARM can save that money and earn more in a higher-yielding investment.

CONS: Continue reading →

FHA Loan Limit Decrease

by Nouman Mirza

FHA loan limits are decreasing on October 1, 2011. After years of steadily rising, the loans limits set by government agent will be decreased on October 1, 2011. Here is how the limit affects each county in Virginia:

County Current FHA Loan Limit Limit as of 10/1/2011 Difference
Alexandria City
Arlington County
Botetourt County
Clarke County
Craig County
Culpeper County
Essex County
Fairfax city
Fairfax County
Falls Church city
Fauquier County
Franklin County
Frederick County
Fredericksburg city
Highland County
King George County
Lancaster County
Lexington city
Loudoun County
Madison County
Manassas city
Manassas Park city
Middlesex County
Northumberland County
Orange County
Prince William County
Richmond County
Roanoke city
Roanoke County
Salem city
Spotsylvania County
Stafford County
Warren County
Winchester city		 $729,750
$729,750
$280,000
$729,750
$280,000
$382,500
$375,000
$729,750
$729,750
$729,750
$729,750
$280,000
$475,000
$729,750
$287,500
$386,250
$545,000
$296,250
$729,750
$277,500
$729,750
$729,750
$330,000
$392,500
$331,250
$729,750
$300,000
$280,000
$280,000
$280,000
$729,750
$729,750
$729,750
$475,000		 $625,500
$625,500
$271,050
$625,500
$271,050
$287,500
$274,850
$625,500
$625,500
$625,500
$625,500
$271,050
$271,050
$625,500
$271,050
$350,750
$442,750
$271,050
$625,500
$271,050
$625,500
$625,500
$271,050
$318,550
$271,050
$625,500
$271,050
$271,050
$271,050
$271,050
$625,500
$625,500
$625,500
$271,050		 ($104,250)
($104,250)
($8,950)
($104,250)
($8,950)
($95,000)
($100,150)
($104,250)
($104,250)
($104,250)
($104,250)
($8,950)
($203,950)
($104,250)
($16,450)
($35,500)
($102,250)
($25,200)
($104,250)
($6,450)
($104,250)
($104,250)
($58,950)
($73,950)
($60,200)
($104,250)
($28,950)
($8,950)
($8,950)
($8,950)
($104,250)
($104,250)
($104,250)
($203,950)

If the above limits are put into place, many of us will run the risk of being priced out of the American Dream of home ownership. Even worse, this could hold back housing recovery. So I ask you to ACT NOW! CLICK HERE to write a message to your elected officials to extend the loan limit. It is important to the housing recovery!

REMEMBER, FHA LOAN LIMITS WILL DECREASE OCT. 1!

Is Your Home Overpriced?

by Nouman Mirza

Overpriced Home

In the current real estate market, price remains a core factor in determining how quickly a home will sell. You are almost shooting yourself in the foot when you list it a high price. Here are some signs to determine if you home is overpriced:

  1. Homes on the same street or subdivision are selling for a much lower prices.
  2. You’ve factored cost of improvement into your sales price.
  3. You are getting no or a handful of showings per month. Continue reading →