A real estate agent is a REALTOR® when he or she becomes a member of the NATIONAL ASSOCIATION OF REALTORS®, The Voice for Real Estate®, the world’s largest professional association. The term "REALTOR®" is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and abides by its strict Code of Ethics.

Founded in 1908, NAR has grown from its original nucleus of 120 members to more than 1 million today. NAR is composed of REALTORS® who are involved in residential and commercial real estate as brokers, salespeople, property managers, appraisers, counselors, and others who are engaged in all aspects of the real estate industry.

Members belong to one or more of 1,700 local associations/boards and 54 state and territory associations of REALTORS® and can join one of our many institutes, societies, and councils. Additionally, NAR offers members the opportunity to be active in our appraisal and international real estate specialty sections. REALTORS® are pledged to a strict Code of Ethics and Standards of Practice.

Working for America’s property owners, the NATIONAL ASSOCIATION OF REALTORS® provides a facility for professional development, research, and exchange of information among its members.

 
Are you in need of Huntsville and North Alabama Real Estate information? Contact me anytime for the latest information about buying and selling real estate!

 
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 Huntsville area 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 Alabama 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 Huntsville, Athens, and Madison 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.

Are you ready to begin your Huntsville, Madison, Athens, and all of North Alabama Home Search? Contact me anytime to begin the process, or for some no obligation information and advice. Don’t forget there are many Foreclosure deals out there, both Bank Owned and HUD Government foreclosures, many of them move-in ready!

 Walter

With the housing market at an all time low and it being such a buyer’s market, there has never been a better time to purchase Huntsville area estate than right now. For this reason many first time home buyers are searching the lowered prices for homes that they can move into instead of renting. Likewise, the current trend is attracting investors who are wishing to amass more property to add to their portfolio, Those who were never interested in investing and those who felt they could not afford it are also jumping onto the trend to make some additional money by purchasing North Alabama rental properties, flipping houses, or buying inexpensively to sit on the homes until the market once again takes an uphill swing.

The seasoned investors know what they are doing and are taking full advantage of the lucrative opportunities afforded them. However, the novice investor may struggle a bit as they try to navigate through the sometimes complicated world of real estate investing and purchasing investment properties. There are several do’s and don’t tips from the professionals that budding Huntsville and North Alabama real estate investors can learn from to help with their investing strategies.

Some do’s to consider before investing include:

• Do analyze your finances and make sure you can afford to take on an investment property. You do not want to become over extended with your income or credit and find yourself in financial straits because you took on too much. 
• Do make sure you get prequalified for a loan so that you only look for investment properties that fall within your budget. 
• Do make sure you research the current market trends, especially in the area in which you plan to purchase. Check out recent sales for comparable houses in the area. 
• Do be sure to hire a competent Huntsville and North Alabama real estate agent or legal counsel to help with paperwork and make sure contracts are favorable to you. 
• Do make sure you are prepared for the risks involved in investing and have the ability to choose properties that are sound. 
• Do make sure you fully inspect properties to ensure there is no maintenance or repairs needed that will significantly change the total cost of your investment. If you are looking at fixer upper homes, make sure you have the available capital as well as professionals to get your property up to code as quickly and inexpensively as possible.

Some things you may want to avoid when investing in property:

• Don’t over estimate the value of rental properties. You will need to be prepared for the house to be vacant for some time and to possibly have potential rental revenue that may not meet your mortgage payment amounts. 

• Don’t be swayed into purchasing a property that seems too good to be true. Use your head as well as your instincts and treat the transaction as a business proposal. 
• Don’t get invested emotionally in the process of buying a particular house. Know when to walk away from a deal. 
• Don’t rely on the seller’s documentations. Always have an independent consultant verify title clearances, valuations and inspections. 
• Don’t deal with the transaction entirely yourself. The paperwork alone can be daunting and can cost you a lot of money in the long run if something is missed. Hire professionalsto make sure everything is in order. 

• Don’t be in a hurry to find an investment property. This will cause you to be sloppy and make poor decisions. Do your due diligence and get the best property you can find.

1. Research before you look. Decide what features you most want to have in a home, what North Alabama neighborhoods you prefer, and how much you’d be willing to spend each month for housing.

2. Be realistic. It’s OK to be picky, but don’t be unrealistic with your expectations. There’s no such thing as a perfect home. Use your list of priorities as a guide to evaluate each Huntsville area property.

3. Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and closing costs. Then, talk to a local Huntsville lender and get prequalified for a mortgage. This will save you the heartache later of falling in love with a house you can’t afford.

4. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion, but be ready to make the final decision on your own.

5. Decide your moving timeline. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area? All of these factors will help you determine when you should move.

6. Think long term. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in this home for a longer period? This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that will best suit you.

7. Insist on a home inspection. If possible, get a warranty from the seller to cover defects for one year.

8. Get help from a REALTOR®. Hire a real estate professional who specializes in buyer representation in the Huntsville and North Alabama area. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. Buyer’s reps are usually paid out of the seller’s commission payment.

Any other questions? Contact me anytime for more information at no obligation.

Walter

Huntsville mortgage rates experienced a historic drop this month. 30 Year rates fell from 5.97 to 5.53. This is the lowest rates have been since January 2008. But I think this understates how low mortgage rates are this week so I did a little research. Since 1974 rates have been lower than today’s rates only four times. Below are the dates and Huntsville and North Alabama mortgage rates.

1) June 2003 5.23
2) March 2004 5.45
3) May 2003 5.48
4) January 2008 5.48
5) December 2008 5.53

Although we looked over a period of 34 years it was interesting that three of the four months with the lowest mortgage rates were in 2003 and 2004. This was basically when Greenspan was cutting the fed rate to prevent the US from going into a recession. A lot of people now blame Greenspan for causing the housing bubble and our current problems. While he might be partially to blame personally I think the massive number of subprime loans (basically loans to people that have a poor credit history) and interest only loans contributed to the problem as well.

The main difference between today’s low rates and the rates we saw in 2003 and 2004 is that 5 years ago pretty much anyone with a pulse could get a loan. In the current market rates are low but banks are much more restrictive about giving out loans.

Below are rates for the last few weeks.

December 4, 2008
30-yr 5.53 15-yr 5.33 5-yr ARM 5.77 1-yr ARM 5.02

November 26, 2008
30-yr 5.97 15-yr 5.74 5-yr ARM 5.86 1-yr ARM 5.18

November 20, 2008
30-yr 6.04 15-yr 5.73 5-yr ARM 5.87 1-yr ARM 5.29

November 13, 2008
30-yr 6.14 15-yr 5.81 5-yr ARM 5.98 1-yr ARM 5.33

November 6, 2008
30-yr 6.20 15-yr 5.88 5-yr ARM 6.19 1-yr ARM 5.25

It interesting that 5 year rates are significantly higher than 30 year rates. This is the first time 30 year rates have been significantly lower than the 5 year ARM. It pretty much means 5 year rates are pointless at this point. There is no real reason to get a 5 Year ARM when you can get a better rate on a 30 year loan.

Looking at mortgage rates is one thing but let’s translate this into mortgage payments. Using our mortgage calculator we translated today’s mortgage rates into a mortgage payment on a 200k house. For good measure we did the same thing with last weeks rates and last months rates.

December 4th
30-yr $1139.34
15-yr $1616.18
5-yr ARM $1169.68
1-yr ARM $1076.08

November 26th
30-yr $1195.24
15-yr $1659.74
5-yr ARM $1181.15
1-yr ARM $1095.75

October 30th
30-yr $1258.87
15-yr $1708.31
5-yr ARM $1245.77
1-yr ARM $1120.56

Looking back to October 30th we can see that payments have come down $119.53 or about 10%. This is pretty substantial. In contrast payments on a 1 year arm have only fallen by $44.48 or about 4%.

So what is going to happen moving forward? I would expect continued wild fluctuations in the mortgage market. We have been seeing large one week changes for the last month and there is no reason that we will not see more wild swings moving forward. Therefore if you are considering a house I would lock in at current rates instead of waiting.

So what about the proposal being considered by Congress to push rates down to 4.5%? I can’t say for certain if this will happen or not. It looks on track to pass now but that could change. If it does pass I think it will spur a lot of real estate activity. It’s not just that rates will be lower but getting rates below 5% is kind of a psychological barrier. I think just seeing rates that are 4.5% will grab people’s attention. But that said if there is an increase in activity I expect prices to move up. I highly doubt they will recover to what we saw a year or two ago but we will probably see higher prices than what we are seeing today at least temporarily. After the initial shock has worn off the economy will probably determine what happens with real estate prices.

What this means? NOW is a GREAT time to search and find your next home in Huntsville, Madison, Athens, or all of North Alabama. Contact me. I’m happy to help.

Walter

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