A Revolutionary New Website
An incredible new service has been launched called:
Zillow.comYou truly have to visit the site to appreciate this new company's innovative approach to real estate. It is Web 2.0 at it's finest, and is just one in a long list of many services that utilize the Google mapping technology.
Zillow is a free service that basically provides comparative price opinions (comps) on over 40 million homes across the country using many different data points.
We can't say enough good things about it, so you'll just have to try it yourself. Go to their home page: www.Zillow.com and type in a property address.... you will be amazed!
Tips for Choosing Contractors Wisely
RealEstateJournal | Tips for Choosing Contractors Wisely: "The first step is to find out how long the business has been in operation by asking for a copy of its operating license. Home-improvement contractors survive on the merit of their work, so older firms are less risky. 'The rule of thumb is the longer they've been in business the better,' said Morsberger. 'But look for at least two years in operation.'
ValueStar also researches contractors' financial status to make sure they have the financial resources to finish the job and any follow up work. 'You want to make sure that a contractor's going to be around for at least the next 12 months in case more time is required for the work or for additional services,' said Morsberger.
Morsberger also recommends asking for three to five references from past projects. These should include information on the contractor's ability to meet project deadlines and estimates, without sacrificing quality.
If the references are positive, then ask for a detailed estimate of the work to be performed including materials needed, the completion date and possible reasons why more money might be needed.
"The customer needs to sign off on any changes that require more money and materials than what was in the original quote," said Morsberger. "And never pay in full until the work is completed according to the original specifications."
Finally, make sure that the contractor has proper insurance. Without workers compensation, the homeowner is liable for injuries on the job. ValueStar also recommends that contractors have at least $1 million in general liability to cover any damages that results from accidents."
New Commercial Division Launched
Just in the way of an FYI, The Christian Real Estate Network just launched a Commercial Division today.
We were getting many requests from people looking for agents to help with all types of commercial property including Church, retail, industrial, etc.
As with other services we have launched in the past, this service was launched purely to serve a need that we saw around the country. So, if you know of any commercial agents that would be interested, please let them know. They can visit this link for more information:
Christian Real Estate Network Commercial DivisionWe are Blessed to have the privilege to serve the real estate community with this new service. We see some exciting new opportunities that may become available as we expand in this new venture, especially in the area of helping Churches across the country with their property needs.
To request a commercial agent in your area, please use this link:
Request a Christian Commercial Real Estate AgentGod Bless you!
Grace & Peace,
Justin Smith
President -
Christian Real Estate Network
Should You Leverage Your Home or Pay it Down Rapidly?
By Robert D. Ashby, CMPS
Solid Rock Mortgage
PEMBROKE PINES, FL - There is a great debate within the inner-mortgage circles these days. Should we, as loan professionals, encourage clients to borrow as much money as possible? Or would consumers benefit more if we helped them to understand the advantages of 15-year amortization schedules and pre-paying principal? Let's examine the pros and cons of both strategies.
Leveraging Your Property. In order to understand why you'd want to borrow as much as possible for your home purchase, you must first grasp the concept that equity has a zero rate of return. Here's an example:
If Consumer "A" buys a home for $300,000, and puts 20% down, then they have $60,000 in equity. Over the next 5 years, the property appreciates $100,000 in value. Consumer "A" now has $160,000 in equity.
Consumer "B" buys a home for $300,000, and puts no money down. At the end of 5 years, that same home is now worth $400,000. Consumer "B" has $100,000 in equity, which is the same appreciation as Consumer "A", a net $100,000.
As you can see, your down payment has nothing to do with your rate of return. What becomes important is how you choose to manage the $60,000 you didn't use as a down payment. If you use it for frivolous activities, such as buying toys or going to Las Vegas, it would be more prudent for you to use that money as a down payment. Especially since this will enable you to obtain a lower interest rate.
However, if you were to invest the $60,000 in a vehicle that can out-earn the cost of that debt, then this could be a formula for success. This is why some lending professionals suggest putting as little down as you possibly can, maximizing your tax write-off, and investing the rest. This principle has been applied for many years in the life insurance game. The old saying goes, "Buy term and invest the rest." The key component is taking the money you would have used as a down payment and creating an asset accumulation account. This account should earn a significant enough rate of return to enable you to pay your mortgage off entirely and achieve the ultimate goal of being debt-free.
Paying Your Home Down Rapidly. There are very few times over the course of my career that I have seen a client with zero debt and no financial difficulties. Choosing to pay off all of your debt can reduce stress and help you to gain freedom of cash flow for investment opportunities. A 15-year mortgage or a bi-weekly payment strategy provides structure. It can also put you on track to have your mortgage paid off within a set timeframe. Simply put, it contains built-in discipline.
It's important, however, to understand that regardless of how rapidly you pay your home off, you're not getting any greater rate of return on your investment than if you paid it off slowly.
Conclusion. So how does one determine which scenario is best? The choice depends entirely upon the individual. Savvy consumers who are disciplined, and are comfortable taking chances from an investment perspective, would do well with the first scenario. Over the course of time, it's been proven that your rate of return over the long-haul will be far greater than the rate you'd pay for a mortgage in today's rate environment. It's important to seek the advice of a skilled investment advisor to ensure success with this strategy.
The second scenario is best for those who have a difficult time managing their money or who'll sleep easier at night knowing they have a plan in place to pay their loan off more rapidly. Be sure that your budget can handle accelerated payments. When consumers "bite off more than they can chew" with a 15-year mortgage, they frequently end up having to refinance back into a 30-year schedule.
If you find this subject intriguing and would like to know more, I recommend that you read a book titled, Missed Fortune 101, by Douglas Andrew. It's an outstanding read that is very simplistic and goes into far greater detail than I can cover in this column. Douglas is a financial planner who advises safe-structured investments such as whole life policies and tax-free fixed income instruments.
# # #
Robert D. Ashby is a member of the Christian Real Estate Network and is affiliated with Solid Rock Mortgage, a Licensed Mortgage Brokerage Business, Florida Department of Financial Services. He is also Florida’s first Certified Mortgage Planning Specialist. If you would like to obtain a FREE CD Interview with financial planning expert and best-selling author, Douglas Andrew, or would like to attend a Mortgage Planning Seminar, please contact Robert D. Ashby at 954-432-3450.
SUBMITTED BY: Robert D. Ashby
(954) 432-3450
(954) 432-3407 Fax
rashby@solidrockmortgage.com
Home Staging Tips
RealEstateJournal | How a Home Stager Preps Her Home Before Selling: "To sell a house she owns more quickly, Debra Gould, president of Six Elements Inc., a company in Toronto that specializes in making for-sale properties more attractive, first upgrades the light fixtures and uses higher-wattage bulbs. Brightly lit rooms appear bigger and more inviting, she says, but she also installs dimmers to be able to create mood lighting.
She also reconfigures entire rooms. If a second bedroom is cramped, for example, she suggests turning it into a home office or study.
She paints walls according to neighborhood and buyer type: bold colors for an artistic feel or neutral tones for more-conservative buyers. She also paints laminate cabinets with melamine (plastic-based) paint and changes hardware to spruce up kitchens and bathrooms.
Ms. Gould stores clutter off-site, because house-hunters often inspect basements and closets. As a finishing touch, she often puts planters out front to create curb appeal."
NAR Releases Monthly and Annual 2005 Existing Home Sale Numbers
Investing In Single Family Homes Proves Strong in 05: "The National Association of Realtors (NAR) has issued its report for both December existing home sales and for the entire last year.
Total sales for the year, including single-family houses, townhouses, condos, and co-ops totaled 7,072,000 units. This was 4.2 percent higher than the 6,784,000 recorded in 2004 and represented the fifth year in a row that existing home sales set a record. NAR has been keeping these sales records since 1968.
The median existing home price for the year was 208,700, up 12.7 percent from the median of $185,200 in 2004. Comparative sales figures for December 2005 and December 2004 were $211,000 and $191,000, an increase of 10.5 percent year over year.
Inventory levels declined to 2.80 million units at the end of December, a 5.1 month supply at present sales levels. Inventory in December 2004 was 2,214,000, a 3.9 month supply at the then-current rate.
Condo and co-op sales were up in December to a seasonally adjusted annual rate of 877,000 units in December; this was 1.6 percent higher than November figures. For the year, condo sales were up 9.3 percent to 896,000 units which set the 10th consecutive annual record. The median price for a condo was $228,100 for the month which was 10.2 percent higher than the median in December, 2004. On an annual basis the median price for 2005 was up 12.7 percent to 218,200.
Single family houses, however, declined 6.8 percent to a seasonally adjusted annual rate of 5.72 million in December, from 6.14 million annualized units in November. December 2004 figures were also down from figures a year earlier by 4.2 percent.
The median price of a single family home was 209,300 in December, 10.8 percent higher than the prevailing median price one year earlier. The median figure for the year was $207,300, 12.6 percent higher than 2004."
