Friday, November 28, 2008

In Pennsylvania Realtors work for the Seller

Most people interested in purchasing a home start by searching for the property. The internet seems to be a favorite start point as well as newspapers and Real Estate books. See our website at http://www.jbrealtyservice.com/. Another buyer choice is "open houses" and "new construction sites". A great percentage of consumers are not aware that the person holding the "open house ", new construction or not, is the agent for the Seller. Consumers need to be aware that any information they share with these agents can, and in most cases should be shared with the Seller. When the consumer is at the "open house" and/or construction site they will usually be presented with a discloser form titled "Consumer Notice". This form should be read carefully and taken seriously. The form will state that it is not a contract. This can lull the consumer into not paying ample attention. This form spells out the consumer's right to be represented by a Realtor that will have the Buyer's best interest as a proirity.
The next step would be to interview several Realtors to consider for a buyers agent. Choose wisely. Buyers Agency is best accomplished with the consumer entering into a contract with a Realtor of their choice acting as a "Buyer's Agent". In almost all cases the listing Agency shares their commission with the Agency representing the Buyer. Therefore the buyer does NOT pay a commission to the Buyer's Agent. Consumers that consider the home buying experience as a shopping trip and do not follow a procedure that respects the home purchase as a serious financial commitment can be at great risk. Most Real Estate horror stories begin here.
At JB Realty Service we have been praticing Buyer agency since before it was populer and understand the contracts fine points, using all choices to the Buyers favor. contact us at john@jbrealtyservice.com or call us at 215-721-6300

Tuesday, August 5, 2008

Predicting the Real Estate Market

This will probably get me in a real fix...not a good idea to predict...Oh well the Lord hates a coward. The biggest thing to remember is that for the most part Real Estate is local. The Philadelphia area has historically held its own in Real Estate turn down cycles. The past has shown a typical adjustment in this region of about 10% . With some areas actually showing equity gains and others maybe deeper adjustments. We live in an area of diversified industries and job markets. This helps offset any major unemployment spikes. Any way back to the Real Estate market. As long as there is not a major change in the economy for any reason, it comes down to supply and demand. The inventory of homes for sale should start to dwindle over the next couple of months. The sellers who wished they would have sold two years ago will either SELL or decide not to and stay where they are. Although there may be a greater influx of short sales and REO sales the lenders will figure out some of the prices they are trying to get are not realistic...investors will be able to acquire them at a faster rate as the REO departments become better managed. Buyers can still get reasonable mortgages ...FHA is not new...we at JB Realty Service have been doing FHA loans for over 20 years....mortgage brokers and realtors just got lazy over the last few years and used the quicker and less regulated 100% conventional loans. They will need to become educated OR re-educated with these loans and the consumer wins. These loans have continued to be at the top of options for all qualified buyers. I think all is in place for us to see the bottom over the winter with a return to a normal Real Estate market next spring...Normal does not mean the hyper market of three or four years ago but more stable prices and reasonable sale times of 2-5 months. I will talk about interest rates next time....Watch out for interest rate spikes coming. In the mean time, check us out at http://www.jbrealtyservice.com./

Lets end the economic down turn

It is my opinion that if two things were done NOW we would create an economic boom. ONE,,,, make the tax cuts permanent. TWO,,,, announce to the world, we have had enough .... we will start drilling for oil , tap the natural gas reserves and give massive tax breaks for all new technology leading to energy independence. I am having a difficult time believing this is that difficult an idea to grasp. Demand out paces supply...increase supply and decrease demand.....not either /or. I am sure there will be fifty reasons we will be told why it can't be done . Are we that weak a Nation we give in so easy? It should have been done years ago. So we can't go back...but we can start NOW.

Saturday, May 17, 2008

home values

For the purpose of a refinance and a sale, the property will most likely be appraised to judge its value for purpose of a loan. What consumers do not realize is that the appraiser works for the lender. The lender is the client not the home owner or the buyer.The consumer may recieve a copy of the report for limited use or just for their records. The lender, as the client of the appraiser, sets the scope within which the appraisal is performed. When the client (lender) asks that the scope of work include only the most recent transactions of the last 2-3 months this can result in great strain for certain properties. How can properties not decline in value under these strick conditions. Sales to use as comparables have been sparce. If sales are occuring they are most likely under distress. Now we have created a self fulfilling prophecy. Property values will continue to decline because of the enviorment that is being created. We all understand the mees the lenders are in nationwide...BUT...REAL ESTATE markets are local. The lenders are looking for safe loans. Understood. Wide sweeping guidlines are NOT the answer.

Wednesday, March 12, 2008

prepare to buy investment property

Preparing to be in a position to purchase properties in the up coming months you will need a little understanding of some events that may be inevedable. First as seen in the news there is a major mortgage mess...the effect this has on you is that finding financing for the investment property is going to be more difficult. In the past investors could purchase properties with little or no money down,no more. The lenders are changing their qualifiing criteria every week. Lets just focus on one aspect..more and more the lenders are requiring more down payment..20% down on a $200,000 property is $40,000 plus closing fees. If you find that investment property will you have these funds available to you ? One way to get the money would be from the equity you have in an existing property(investment or primary home).If you wait and try to refinance under pressure to access the funds at the same time you are negotiating the purchase it will not only be stressful but it will not be the best postion to negotiate from. Sellers are not ussually fond of contingencies in the purchase offer.Also consider Your properties are probably at a higher value now than they will be in the up comming months. You may want to liquify those equity dollars now to have the funds in place when the oppurtunity arises to make the investment purchase.

Sunday, March 9, 2008

NEW FHA LOAN LIMITS

First time buyers, first time sellers looking to move up in the home market, and also those current property owners struggling with adjustable mortgages should benefit the most by the latest government move which increases FHA loan limits. The new limits should have a positive affect on the housing industry everywhere. In the Bucks, Chester, Delaware and Montgomery county areas of Pennsylvania the limits have been adjusted up about 50% from approx. $285,000 to $420,000. THESE CHANGES ARE SET TO EXPIRE AT THE END OF THE YEAR. These government backed mortgages are generally easier to qualify for and require a very low down payment of 3% in most cases. Housing and Urban Development (HUD)which cooperates with the Federal Housing Administration (FHA) gets to have a major impact on the criteria to qualify for FHA loans. We at JB REALTY SERVICE LLC find these loans are a great tool for those who are just graduating college or trade school and may not have established a long work history, borrowers with low cash reserves that may be getting funds from relatives, and buyers in need of assistance from sellers with monies toward closing costs. Credit score levels are also more forgiving. Buyers must be aware not all lenders are approved to offer these FHA loans. Contact john@jbrealtyservice.com. We can advise you on all your real estate and mortgage needs, also read the blog at http://www.jbrealtyservice.com/.

Friday, March 7, 2008

PREPARE FOR THE WORST

Investors and home owners are in for some rocky times they may not be aware of. The tax cuts are set to end in 2010. One of the changes that interest me is "The Capitol Gaines Tax". The old tax, which it is set to revert back to, as I remember was 28% federal when adding your state tax a total of 30% and higher. How many of you bought a second home or investment property over the last 7 years or so. HOW MANY OF YOU ARE THINKING OF SELLING? You may want to think about selling before the tax resets. How about home owners thinking of retirement or moving out of the area. Currently if you have lived in your property as a primary residence for 2 out of the last 5 years,have not sold another primary residence and the sale is less than $500,000 for a married couple you probably will pay no tax. This benefit may also change,for more information put our team of experts to work for you,contact. john@jbrealtyservice.com . A FREE EVALUATION of your specific situation is available by appointment.call 215-721-6300.Also you can read more at WWW.JBREALTYSERVICE.COM

Wednesday, March 5, 2008

YOU MUST CALL NOW

If you, or anyone you know, have an adjustable and/or sub-prime mortgage, or maybe you don't know what type of mortgage you do have, you could be in for a substantial mortgage payment increase. We will evaluate your current mortgage situation and qualify you for a government assisted program to help reduce these payments. This evaluation is FREE. Read more at my blog at JBrealtyservice.com. We can HELP if you contact us. Call 215-721-6300 or E-mail me at john@jbrealtyservice.com

Monday, February 25, 2008

NEW CONSTRUCTION...GOOD DEALS ??

I was listening to a real estate radio show and heard the host proceed to advise new construction as a very good deal. I agree with this particular host 90% of the time so I was waiting for the qualifier. . . it did not come. I had to write about this topic, new construction being an option for buyers looking for the "good deal".

It is true that with the building industry having inventory that is "sitting around" you are in the position of power as the buyer. Let's talk about this. If the development is over built and the builder is dropping prices, this means the values are dropping for those that purchased previously, when they thought it was the best time to buy the "good deal". So what to do? You need to ask more questions. How many units will be constructed? Are there more phases to the development? Are you buying one of the first 20 homes being constructed or are you buying one of the last 20? How long has the builder been at this project? What is the projected time of completion?...etc...etc.

As in all things a "good deal" is not always as simple as it may seem, that's how people get burnt. We at JB Realty Service have the experience to guide you through the new construction process to insure the best opportunity for that "REALLY good deal". For more information visit http://www.jbrealtyservice.com. You may contact me at: john@jbrealtyservice.com or call 215-721-6300.

Monday, February 18, 2008

LET'S TALK INTERNET INFO SITES

AH YES, THE INTERNET..what a wonderful tool. Remember, it's just that, a tool. Just like building a house requires more than a couple of tools, so does finding a house. Internet sites have to speak to many people at one time so they can not get very specific. Most information is offered in limited supplies to the public for various reasons. It needs to be presented in the context of your particular situation. An example would be the appraisal. This is a difficult and important part of a real estate transaction in order to acquire a value of the property for financing the loan and yet there are Internet sites that offer the public "values" just by entering an address. You may be able to get an approximate value by looking at the recent sales, this would work well in a town house development with dozens of houses. However, this approach would not work for a custom home with a water front view, new kitchen, and wet bar. Can you see what I mean? At JB REALTY SERVICE our broker is a licensed broker/appraiser. This has proven to be very valuable to our clients. For more information on anything else real estate visit http://www.jbrealtyservice.com. You may contact me at: john@jbrealtyservice.com or call 215-721-6300.

LETS TALK ABOUT FHA FINANCING

Just simply, more often than not, the best first time buyer program anywhere....FHA(federal housing administration)...FHA loans are backed by the federal government.since the fed is involved they get to have some say on the standards the lender can use to approve a loan.In many cases buyers will be approved for financing thru an FHA loan that would not qualify for conventional loans.the FHA LOANS ARE TYPICALLY MORE FORGIVING..suce as the credit score is not so strict..you typically need less down payment..some of the buyers funds needed for the purchase can come from a gift..the seller can contribute up to 6% towards the buyers closing cost..the buyer may have just started a new job..YOU CAN HAVE OWNED A HOME BEFORE..in most cases you are condidered a first time buyer if you have not purchased a home in the last 3 years and do not currently have an fha mortgage that is not going to be paid with the sale of your house..most properties in reasonable condition will be approved for FHA financing, and much more....THESE ARE NOT SUB PRIME LOANS...If your lender does not take the time to explain FHA choices to you or does not offer FHA as a product we at JB REALTY SERVICE. will be glad to assist you. For more information visit http://www.jbrealtyservice.com. You may contact me at: john@jbrealtyservice.com or call 215-721-6300.

Monday, February 11, 2008

LETS TALK FORCLOSURE

**Well where to start. Unless you have been on a secluded island for the last year or so, I'm sure you are aware of some of these terms. Subprime, ARMS (adjustable rate mortgages), bad credit score loans, no income verification loans... you get the idea. If you or anyone you know suspects or is not sure they have one of these types of loans.call 215-721-6300 or contact us at john@jbrealtyservice.com We will evaluate the loan for FREE and advise you of the best course of action.If you already have been issued papers from your mortgage company.. YOU MUST ANSWER THEM ASAP ..contact an attorney or contact us NOW. This is where the term SHORT SALE applies. A short sale is when we work with your lender to allow us to sell your house for less than what you owe. How this helps you is we save you from foreclosure. This saves your credit. In many cases you can buy again in 2 years.. Other options are payment plans that allow you to keep your home.. This can usually be done without bankruptcy. You must take ACTION NOW. Remember the only dumb question is the one you were going to ask but didn't. For more information visit http://www.jbrealtyservice.com. You may contact me at: john@jbrealtyservice.com or call 215-721-6300.

Sunday, February 10, 2008

LETS TALK ABOUT PAYING OFF DEBT

**While paying off debt in it self is a good thing, more important is how and when you eliminate your debt. The object should be to make the payments in a way that it has the MOST positive impact on your credit. The objective being to raise the credit score which in turn will impact the types of mortgages that are available to you. In some cases this may afford a better interest rate.In other cases it could make the difference between getting a mortgage or not. At JB REALTY SERVICE we take the time to review your credit report well in advance of the client actually finding a property. We also work directly with the lender to insure not just the best rate but also the best type of loan for each situation.visit http://www.JBREALTYSERVICE.COM or call us at 215-721-6300 ..As each clients situation is unique we offer a private, no obligation, FREE consultation. You can also e-mail me at john@jbrealtyservice.com remember the only dumb question is the one you wanted to ask but didn't.

Friday, February 8, 2008

MORE DETAILS THIS WEEK

* REALTORS DONT WANT YOU TO GO TO NEW CONSTRUTION SITES WITHOUT THEM BECAUSE THEY WONT GET PAID

* I CAN GET THE SAME INFO ABOUT HOUSES A REALTOR CAN BY GOING ON THE WEB

* PAYING OFF ALL MY DEBT IS THE BEST THING TO DO BEFORE I TALK WITH A REALTOR OR MORTGAGE LENDER TO SEE IF I CAN GET A LOAN TO BUY A HOUSE

* IF MY HOUSE IS AREADY IN FORCLOSURE ITS TOO LATE FOR A REALTOR TO HELP

* THE SPRING MARKET STARTS IN APRIL AND THIS IS THE BEST TIME TO BUY OR SELL A HOUSE

* I OWNED A HOME BEFORE SO I AM NOT A FIRST TIME BUYER

* FHA LOANS HAVE HIGHER INTEREST RATES AND ARE NOT GOOD FOR BUYERS

* FHA AND VA MAKES SELLERS FIX THEIR HOMES AND IS BAD FOR SELLERS

* WHEN I HEAR ON TV THE "FED LOWERS INTEREST RATES"THIS MEANS MORTGAGE RATES GO DOWN

* I CAN DO WHAT A REALTOR CAN DO WITH THE HELP OF AN ATTORNEY

For more information visit http://www.jbrealtyservice.com. You may contact me at: john@jbrealtyservice.com or call 215-721-6300.

Thursday, February 7, 2008

REALTOR Reputation

Pennsylvanians say they choose a REALTOR® based on reputation and 86 percent of those homebuyers purchased their home through a REALTOR®, according to a new NAR survey.

The 2007 Profile of Homebuyers and Sellers Pennsylvania Report describes the critical role that real estate professionals play in the real estate market and provides insight into the needs and expectations of clients. You can access the report on the PAR web site at: http://www.parealtor.org/content/2007_profile_homebuyers_sellers.htm

To learn more about our own real estate services, visit: http://www.jbrealtyservice.com