David DePasquale Chatham Real Estate

Homes for Heroes Program 25% Rebate to Buyers and Sellers

Matthew T. Smoot — Wed, 21 Sep 2011 19:18:00 GMT

Homes for Heroes Program 25% Rebate to Buyers & Sellers Do you or someone you may know qualify as a "hero?" If so, there is an exclusive program available now through my real estate brokerage, Exit Preferred Realty. With this program both buyers and sellers are eligible for a 25% rebate at the time of closing. Who Qualifies as a Hero: -Firefighters, police officers, public safety officers, health care professionals, military personnel, educators, educational support staff, youth workers,...(read more)

$7,500 Grant Available for First Time Home Buyers throughout Maryland! Act Now as Funds are Limited!

Matthew T. Smoot — Mon, 12 Sep 2011 17:03:00 GMT

$7,500 FHLB Grant Available Now for First Time Home Buyers Receive up to $7,500 towards closing costs and Your down payment. How it Works: The purchaser contributes a minimum of $500 toward the purchase of his home. FHLB will then match it up to 5 times. To receive the full benefit of the $7,500 grant the purchaser must contribute $1,500, which can be used in the form of an earnest money deposit, appraisal, home inspection, etc. Eligibility Requirements : -Must be a First Time Home Buyer (cannot...(read more)

The First Time Seller...What they Should Know

Matthew T. Smoot — Mon, 12 Sep 2011 17:02:00 GMT

The First-Time SELLER Today’s buyer-take-all bonanza is a boon for fence-sitters and buyers with great credit and deep pockets. But sellers are gearing themselves to new realities that include paying (rather than making) money at the closing table, providing extras to sweeten the deal, and spending more time and cash making the home camera-ready. For first-time sellers who have never been through the process before, it’s a different world. One where the value of the house isn’t...(read more)

The Private Mortgage Market....What You Need to Know!

Matthew T. Smoot — Mon, 12 Sep 2011 17:01:00 GMT

Revitalizing the Private Mortgage Market By mid-May, the spring home-selling season is usually in full swing. Homes look their best, and buyers rush to lock in deals so they can relocate in the summer. But this year, things are not so good. Despite low home prices, sales are sluggish as the market struggles to recover from the burst bubble of the past decade. Many potential buyers are scared off by worries that a home bought this spring could be worth less a few months later, given that prices have...(read more)

Housing Affordability Today!

Matthew T. Smoot — Mon, 12 Sep 2011 17:01:00 GMT

Housing Affordability Highest in Two Decades Nationwide housing affordability during the first quarter of 2011 rose to its highest level in the more than 20 years it has been measured, according to National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) data released recently. The HOI indicated that 74.6 percent of all new and existing homes sold in the first quarter of 2011 were affordable to families earning the national median income of $64,400. This eclipsed the previous...(read more)

Cash is King!

Matthew T. Smoot — Mon, 12 Sep 2011 17:00:00 GMT

Cash is King For home buyers who need to finance their purchase using a mortgage, a cash buyer can be their worst enemy. That’s because when a buyer makes a cash offer, the seller knows it’s a solid deal—and that financing hiccups won’t delay a closing. Sometimes, that’s enough for the seller to accept a lower bid for a cash deal instead of a higher bid from a financing buyer. It just recently happened to a client of mine. Against a cash buyer, the financing borrower...(read more)

The Value of Home Warranties: Protect Your Wallet

Matthew T. Smoot — Mon, 12 Sep 2011 16:59:00 GMT

The Value of Home Warranties: Protect Your Wallet Even with home sales and prices continuing to fall nationwide, millions of Americans will still navigate the process of buying and selling homes this summer, and for many, the sheer volume of details and decisions can be overwhelming. With so much to consider when buying or selling a home, it can be challenging to investigate even routine aspects of the process, such as the value of home warranties. Lelia Chapman, vice president of field sales for...(read more)

Renters Strive to be Homeowners

Matthew T. Smoot — Mon, 12 Sep 2011 16:58:00 GMT

70% of Renters Strive to Become Homeowners Most Americans still believe that owning a home is a solid financial decision, and a majority of renters aspire to homeownership as a long-term goal. According to the 2011 National Housing Pulse Survey released recently by the National Association of REALTORS®, 72 percent of renters surveyed said owning a home is a top priority for their future, up from 63 percent in 2010. Seven in 10 Americans also agreed that buying a home is a good financial decision...(read more)

Rebound in Real Estate 2011

Matthew T. Smoot — Mon, 12 Sep 2011 16:57:00 GMT

In its latest real estate and economic forecast, the National Association of REALTORS® anticipates that sales of existing homes, after falling 4.8 percent in 2010, will rise 7.9 percent this year, to 5.3 million, and another 4.5 percent in 2012, to 5.53 million. The median price of existing homes, meanwhile, rose 0.3 percent in 2010 after a 12.9 percent drop in 2009, and is expected to rise 0.5 percent this year, to $173,800, and another 2.4 percent in 2012, to $177,900. Sales of new single-family...(read more)

Real Estate Trends for the Last Half of 2011 and Beyond

Matthew T. Smoot — Mon, 12 Sep 2011 16:57:00 GMT

Real Estate Trends for the Last Half of 2011 and Beyond For the remainder of 2011 and beyond, the prospect of future inflation and higher interest rates does not bode well for most forms of business or investment. However, there is a bright sliver of opportunity for investment vehicles capitalizing on fixed-rate debt to leverage income producing tangible assets that will have their nominal value increased and their debt debased by inflation. “The most obvious remedy for this problem is income...(read more)

More Time from Mortgage Application to Closing

Matthew T. Smoot — Mon, 12 Sep 2011 16:56:00 GMT

Driven by an increase in length of time from application to approval, the average timeline of the mortgage origination process has increased for a third consecutive year, while customer satisfaction has declined, according to the J.D. Power and Associates 2011 U.S. Primary Mortgage Origination Satisfaction Study released. The study, based on the voice of the customer, measures customer satisfaction in four key factors of the mortgage origination experience: application/approval process; loan officer/mortgage...(read more)

5 Things to do Before you Sell Your Home

Matthew T. Smoot — Mon, 12 Sep 2011 16:55:00 GMT

ONE Hire a real estate agent. It may be tempting to list your home on your own to avoid paying a sales commission, but selling your own home is a full-time job itself. A real estate professional represents the best opportunity to earn the maximum amount from your home’s sale. An agent will recommend the best listing price, market your home effectively and show your home to buyers. An agent also recognizes what buyers are looking for in a new home. TWO Get your home inspected. You are required...(read more)

The Tax Benefits of Buying a Home

Matthew T. Smoot — Mon, 12 Sep 2011 16:53:00 GMT

Now more than ever the Benefits of Home-ownership outweigh Renting Home mortgage interest deduction : The interest paid on a mortgage or mortgages of up to $1 million for a principal residence and/or second home is deductible as an itemized deduction. In the early years of a home loan most of the payments consist of interest, so this deduction is particularly substantial during the first years of home ownership. Depending on the state a buyer lives in and his or her tax bracket, this deduction can...(read more)

10 Deadly Mistakes Buyers Make When Purchasing A Home

Matthew T. Smoot — Mon, 12 Sep 2011 16:53:00 GMT

Protect yourself from these common pitfalls... When buying a home, emotions get mixed with financial limitations and ultimately move you in the direction of making one of the 10 Deadly Mistakes which are common among home buyers. Following are 10 points to consider as you prepare to buy a home: Home Buyers Mistakes - #1 Making an offer on a home without being prequalified. Prequalification will make your life easier - so take the time to speak with a lender. Their specific questions in regard to...(read more)

Time & Effort Can Rebuild Credit After Foreclosure

Matthew T. Smoot — Mon, 12 Sep 2011 16:51:00 GMT

If you've been through a foreclosure, you may wonder if there is hope for you to become a homeowner again. "It doesn't mean you'll never be a homeowner again," said Linda Davis-Demas, director of housing at Consumer Credit Counseling Service of Greater Dallas. But you'll need to examine what caused you to fall behind on your mortgage and take steps to fix the problem. "You have to look at what were the reasons you didn't make the payment," said Davis-Demas....(read more)

Tips for Keeping Your Home Healthy

Matthew T. Smoot — Mon, 12 Sep 2011 16:50:00 GMT

It’s easy to overlook a small leak or slight draft. But these problems have the potential to get worse very quickly. To prevent a big problem from arising, energystar.gov recommends having a contractor perform annual check-ups—on the cooling system in the spring and the heating system in the fall. To remember, you might plan the check-ups around the time changes in the spring and fall. Here are some things you should expect a contractor to handle: • Check thermostat settings to ensure...(read more)

10 Real Estate Predictions for the New Year

Matthew T. Smoot — Mon, 12 Sep 2011 16:49:00 GMT

The start of a new year is often a time of reflection, as well as a time of anticipation for the future. It’s no different for real estate professionals, many of whom have weathered the recession and are now optimistic about 2011. From the return of new construction to the creation of healthier homes, the following are 10 residential real estate trends they see for the coming year: 1.) Building is back : After three years of little to no new development, John Wozniak of Wheaton, Illinois-based...(read more)

Home Staging Tips

Matthew T. Smoot — Mon, 12 Sep 2011 16:48:00 GMT

Selling a home in any market can be competitive. It’s essential that sellers follow some simple, yet important tips to help make their home more salable. A quicker home sale can be reached by keeping in mind the needs of the home’s most likely buyer and creating a fresh inspiring look just for them, according to Pulte Homes expert Janice Jones, national vice president of merchandising. “Everyone understands the value of de-cluttering, cleaning and refreshing a home in today’s...(read more)

New Home Sales Struggling

Matthew T. Smoot — Mon, 12 Sep 2011 16:47:00 GMT

Sales of newly built, single-family homes held virtually unchanged in July with a 0.7 percent dip from the previous month to a seasonally adjusted annual rate of 298,000 units, according to newly released data from the U.S. Commerce Department. “The fact that new-home sales fell by less than one percent in July is an indication of how little conditions have changed in the housing market,” says Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder...(read more)

Kepping Homeowner's Insurance Costs Down!

Matthew T. Smoot — Mon, 12 Sep 2011 16:47:00 GMT

Saving money has never been so trendy. Long gone are the days of irresponsible spending, so why be irresponsible with your homeowners insurance? Taking a little bit of time to research your options might just help you save a little in the wallet and put more in the bank. Here are four tips I recommend: 1. Shop around. Some insurance companies have been raising house insurance costs to recoup losses from the financial crisis. Others are competing for new customers by offering lower rates. By shopping...(read more)

Winter-proofing Your Home

Matthew T. Smoot — Mon, 12 Sep 2011 16:46:00 GMT

As winter sets in, there's nothing better than hibernating on the sofa with a good book or classic film. But having this spoiled by a home emergency can add a real chill to your winter warmth, especially if it's preventable. We're all familiar with the issues winter forces upon us: the boiler breaking, pipes bursting or a break-in, which can make the harsh effects of winter far more severe. Planning ahead now can help protect you against these potential problems. Here are some simple...(read more)

Foreclosure Rate

Matthew T. Smoot — Mon, 12 Sep 2011 16:45:00 GMT

The October Mortgage Monitor report released by Lender Processing Services, Inc. (NYSE: LPS) shows that foreclosure timelines continue to increase, with the average number of days delinquent in five judicial foreclosure states (New York, Florida, New Jersey, Hawaii and Maine) exceeding 500 days. At the same time, the foreclosure timeline extension has been significantly more pronounced in non-judicial states ( see below: judicial vs non-judicial ). Approximately 275,000 loans started foreclosure...(read more)

The Housing Glut

Matthew T. Smoot — Mon, 12 Sep 2011 16:44:00 GMT

U.S. household formations are at their lowest since 1947, data from the Census Bureau show. And that's helping to keep the supply of unsold homes at near-record levels nationwide, even though relatively few houses are being added to the inventory. Between March 2009 and March 2010, the number of households rose just 357,000, according to the census data. In the previous 12 months, the number increased only 398,000, the third-smallest increase on record since World War II. Between 2002 and 2007,...(read more)

The Recession and You

Matthew T. Smoot — Mon, 12 Sep 2011 16:37:00 GMT

Survey: 1-in-5 Workers Live Paycheck to Paycheck

As the effects of the recession linger on, one place it continues to have a tight grip is on workers' wallets. Nearly eight-in-ten (77 percent) workers report that they live paycheck to paycheck to make ends meet. Sixty-one percent of workers said that they felt they lived paycheck to paycheck to make ends meet in 2009. Workers went on to say that sometimes they are unable to make ends meet at all, with one-in-five (22 percent) saying they have missed payments on bills in the last year. This is according to a new nationwide survey of more than 4,400 workers by CareerBuilder that was conducted from May 18 to June 3, 2010.

Twenty-three percent of workers said they started living paycheck to paycheck in 2009. As a result, workers said they have made a variety of changes to their living and spending habits to help get by. When asked what tactics they have used since the start of the recession to make ends meet, workers said the following:

-- Cut back on leisure activities - 54 percent
-- Used coupons or shopped at discount stores - 48 percent
-- Drove less to save on gas - 37 percent
-- Cancelled cable and other subscriptions - 12 percent
-- Used public transportation - 5 percent

"The last 18 months have required some workers to tighten their day-to-day spending and make some adjustments to their financial futures," said Rosemary Haefner, vice president of human resources for CareerBuilder. "Our survey found that six-in-ten workers say that the recession has made them more fiscally responsible. Maintaining a budget is not only important now, but will better position workers - both personally and professionally - for the long run."

Some workers are making ends meet by dipping into their long-term savings. More than one-in-five (21 percent) workers say they have reduced their 401(k) contributions or personal savings in the last year to get by.

Saving money is not an option for some workers, as one-third (33 percent) state that they do not participate in any programs such as 401(k), IRAs or retirement plans. One-in-three (30 percent) report that they don't put any money aside into their savings each month, while 28 percent set aside $100 or less per month for savings and 14 percent save less than $50.

Haefner offers the following tips for riding out the economic downturn and preparing for the future:

Cut back where you can - Takeout coffee, lunches out, and other common everyday expenses can make quite a dent in your checking account. Create a spreadsheet to analyze what you spend each month, and once you can see where your money goes, you can more easily see where you can cut back.

Be saving savvy - Even if it is a small amount, set aside money each month for your long-term savings. If you have trouble remembering or fitting into your budget, try setting up an automatic deposit into a savings account.

Maximize your benefits - Talk to your HR department about how you can make the most of the benefits at your organization. Find out if your company offers discounts to stores or for other services, and ask about how you can make sure you've selected the right benefits plans for your budget.

Take a Minute to Update Yourself on Both Local and National Housing Market Trends: http://soldwithsmoot.housingtrendsenewsletter.com/

Mortgages Cheap But Hard to Get

Matthew T. Smoot — Mon, 12 Sep 2011 16:36:00 GMT

With fixed mortgage-interest rates at an all-time low, it might seem as if real estate offices should have house hunters lining up, ready to sign on the dotted line. Last week, Freddie Mac announced that the average 30-year rate had fallen to 4.27 percent.

At that rate, a $200,000 mortgage — not including hazard insurance and taxes — would cost $986.22 a month. Add to that the decline in home prices, and it seems like a combination that's hard to resist.

But banks are extra-careful these days about whom they lend money, with the result that many looking to buy houses aren't able to qualify for the lowest interest rates — or for mortgages, period.

Real estate agents and mortgage brokers say they are trying to work with individual buyers to clear obstacles to borrowing created by cautious lenders, who are mindful of a several-year-long track record that, in August alone, produced 245,000 new foreclosures, 3.2 million loans that were more than 60 days delinquent, and 101,000 sales of repossessed houses nationally.

In some cases, the agents and brokers say, such efforts might include providing lenders more income documentation and clearing up borrowers' credit issues.

The situation is complicating a tough sales environment already battered by persistent high unemployment and prospective buyers' expectations that prices will go down even more. Moreover, many would-be sellers, especially those who bought during the 2005-2007 boom years, are dropping their prices only reluctantly. Some simply refuse, agents and brokers say.

To help buyers obtain mortgages, said Philadelphia agent Jeff Block, of Prudential Fox & Roach, he has "had to work closely with lenders ... but almost exclusively because of issues on the lender's end, and not with the buyer's financials."

"Needless to say, this is much more common with Internet and non-local lenders, but I can almost always find a way through it," Block said.

Weichert Financial Service president Steve Madonna said two prospective buyers in 10 cannot qualify for mortgages. "I am seeing people who qualify easily and people who don't qualify at all," he said.

Lenders look for four "tradelines," such as a car loan or credit card, that are at least 12 months old.

"I am finding many young people who are not using any credit cards at all," Madonna said. "They use their debit card 45 times a month, but it is the same as paying cash."

Philadelphia mortgage and real estate broker Fred Glick said that tighter requirements have cut the number qualifying for home loans about 50 percent from a few years ago.

"If they have equity, good credit, full income documentation, and the underwriter isn't taking acid that day, it's not bad," Glick said. Mortgages insured by the FHA and VA are available if buyers don't have sufficient down payments, "but you will have the mortgage-insurance payment or funding fee" that will add to the cost.

Marshal Granor, principal in Granor Price Homes in Horsham, Pa., said a lack of cash for closing costs also means some mortgage applicants won't make the cut.

And Jerome Scarpello, of Leo Mortgage in Ambler, Pa., said even qualified borrowers can be stymied by today's tighter lending rules — increased credit-score requirements, for example.

"If your score is under 700, some private mortgage insurers won't insure you," Scarpello said. "Under 620, you cannot get a competitive-rate loan."

The pendulum has swung so far to the other side, he said, that "good, quality, make-sense people are being told, 'No.' "

Broker Peter Buchsbaum, of Abington Mortgage in Horsham, said 95 percent of the people who contact him can qualify for the lowest interest rate and "the other 5 percent are capable of getting the rate, but maybe not for as much a loan as they are requesting."

He added, however, that the mortgage market is constricting each day, with some underwriting rules making sense and some not.

"My frustration is that the feds keep pushing interest rates as the answer to the real estate puzzle," Buchsbaum said. "Until prices stabilize and the public doesn't waste time trying to get loans from large banks, we'll stay in this rut."

To Narberth, Pa., Realtor John Duffy, it's looking like a return to the days when buyers needed stable employment, decent credit, and equity for a down payment.

"In the long run, that will help everyone," he said.

Take a Minute to Update Yourself on Both Local and National Housing Market Trends: http://soldwithsmoot.housingtrendsenewsletter.com/