You are a newlywed couple in your late 20’s with decent jobs, respectable income, and reasonable credit.  You’ve started your search to buy a home in Tuscaloosa, but when you walk into the bank to pre-qualify for a loan, to your surprise, you find out… NOT!

You’re not alone. The Federal Reserve studied the problem, and found that in the three years between 2009-2011, just 9% of youngsters between the ages of 29-34 were able to qualify for a first-time mortgage. It had been 17% only 10 years earlier.

It’s no wonder that many have sought alternative financing routes to buy a home, which is why mortgage co-signing is becoming more and more common. Yet before buying a home in Tuscaloosa via this route, it’s important to have the consequences – good and bad – squarely before you.

Advantages

The big one is obvious: a Tuscaloosa mortgage co-signing may be the only way to buy a home. Importantly, it can also help you secure a better interest rate and the lower monthly mortgage payments that entails.

Once you start making your mortgage payments regularly and on time, a co-signed mortgage can start to help you build (or rebuild) a strong credit rating.

Pitfalls

A mortgage co-signing may help you buy a home in Tuscaloosa, but it also has immediate and major impacts on both your and your co-signer’s credit. Late payments would affect your co-signer’s credit rating as well as your own. The possibility of adding extra stress to important relationships is potentially very real, since a mortgage lender will attempt to collect payments from your co-signer in the event of a default.

The bottom line?  Buying a home is a big step; if you require a co-signer to get approval for a loan in Tuscaloosa, it’s important to make sure it is part of a sound long-term financial strategy.  I’m here to supply the real estate expertise that helps my clients attain their goals – so if you or your adult children are preparing to buy a home together, do contact me to schedule a sit-down to go over today’s options.

Tuscaloosa REO (Real Estate Owned by a lender) houses have been a substantial part of the real estate conversation for some time.  Whether or not we ever need to delve into an REO transaction ourselves, well-informed local homeowners are familiar with some of the basic terms that come up when REOs are discussed:

(1) Arrears: a home that is delinquent on payments – being there is red flags a possible future foreclosure.

(2) Decree (short for decree of foreclosure): the ruling that declares a property should be sold to pay its mortgage.

(3) Default property: a home behind in payments to a mortgager. May describe a property in (or close to going into) actual foreclosure proceedings.

(4) Power of Sale: a legal decree giving the mortgager or lien holder the right to advertise a home sale in order to bring the mortgage up to date.

(5) Quit claim deed: a declaration turning all rights to a property back to the lending bank or mortgager.

There is a welter of information (trustworthy and not really) online about what should happen in a Tuscaloosa REO or foreclosure situation. Sometimes a short sale can be the most desirable solution, but before that can happen, decisions by both homeowner and lender have to be made.  I always advise homeowners to seek legal and financial counsel before committing to either direction. If you should fall behind in your own mortgage payments, a good understanding of your options is the first step toward bending the situation in a positive direction.

I am available to meet privately to discuss sales pricing in Tuscaloosa — and where a sale is feasible, I’m here to help you make it happen!

When you search through the latest listings of Tuscaloosa homes, you first find those that fit your top-line needs. Then you winnow down that list. Some of the candidates will seem more appealing than others; and some will seem to be over- or underpriced.

Before making a final judgment on which homes bear a closer look, the most successful homebuyers also factor in qualities that may not be at the top of their own personal priorities list, yet which make a difference to the majority of homebuyers. In other words, they keep in mind the most important qualities that add value in market terms – that add investment value to homes that are principally your personal residential choice. Some of the more important ones:

• Location has a huge impact on a property’s long-term price. Are amenities close by? Close enough to walk. Are homes in the immediate area well maintained? Is the property on a desirable block, or located next to a busy road?
• Taxes impact the overall cost of long-term cost – and when homes are listed, those figures are significantly displayed. Also important is whether there are any pending issues you should be aware of — like a sewer bond or other pending taxes.
• Condition will become a major factor in years to come — forward thinking will pay off in terms of overall value. A 20-yr-old water heater, for example, is going to cost sooner rather than later.  Homes with excellent roof and foundation condition can add exceptional long-term value.
• Tuscaloosa homes with potential are homes with unrealized value. With smaller properties, it’s worthwhile to consider how doable it would be to add rooms or expand its square footage.  Even if you don’t end up adding square footage, if homes are small for the neighborhood, a future buyer might.

This January’s historically low mortgage rates make it a terrific time to give me a call. Together, we’ll find the Tuscaloosa homes that are good fits for your family – as well as great long-term values.

I think every Tuscaloosa real estate agent shares my overall sense of optimism as national housing prices continue to revive. While the nation’s economy could definitely be in better shape, this growing stability in the residential market is one of the few economic indicators to provide a steady stream of positive news. The rest of the economy can certainly use some of that: since the real estate market is so massive, upbeat reports from our industry provides a steadying influence on the others.

Real estate agents nationwide know that the current basement-level interest rates for home loans are part of the reason. Especially because of the public commitment to hold rates down into the future, other outside influences (like widely fluctuating gas prices) have less effect on the greater trend.

What does that mean for us, in our neighborhood — on our block?  After all, here in Tuscaloosa, we don’t buy and sell real estate nationally.  Since home sales are the ultimate local product, to get the most accurate applicable economic information, we have to go local. That’s where a Tuscaloosa real estate agent makes all the difference.

An experienced real estate agent is the single expert most familiar with the nuances of Tuscaloosa neighborhoods. For a buyer, that means providing guidance on where to look to find the best value that matches requirements. For a seller, we are able to get started in the right direction by compiling an up-to-the-minute competitive market analysis. The fact is, a price may seem fair — seem ‘right’ – yet, if the rest of the market has moved away from ‘right,’ still fail to produce interested buyers…or to create more of a bargain than was actually called for.  The information that pegs the current local market is the surest way to save precious time.

A knowledgeable Tuscaloosa real estate agent helps a client develop winning strategies for selling their home quickly – and that’s something that entails more than just finding a price that attracts buyers. Because markets are always changing, marketing must change with them. For example, when the market is heavy with investors (who are looking for a deal), it’s a different situation than when it is dominated by traditional homebuyers (who are looking for a home).

In any case, whether you are buying, selling or investing, a real estate agent in Tuscaloosa will be an invaluable asset.  I am here to help my clients make sense of it all — call me anytime to discuss what’s doing!

Lately, buying a second home on Lake Tuscaloosa has become a much more attainable goal for a great many current homeowners. Partly due to the historically low mortgage interest rates I have been writing about, the affordability factor has become less of a barrier. With prices beginning to rise, those who have been considering buying a second home might take this December as a good time to make their move – or at least to do some serious research.

The first part of that effort should be arithmetical: does buying a second home make financial sense? For most people, buying a second home will entail getting a second mortgage, with the characteristics of that mortgage dependent upon how the home will be used.

For a second home that is strictly that – a property that serves as a personal residence – mortgage rates are usually about the same as for a primary residence. But if the home will also serve to provide rental income, banks will usually consider it an investment property – and call for a bigger down payment and a slightly higher interest rate.

According to Shannon O’Brien of realestate.com, those buying a second home for its income-producing potential can currently expect down payments ranging anywhere from around 25% to 40%. Penciling in accurate up-front capital requirements means taking that — as well as applicable interest rates — into account. Since investment property involves offsetting tax implications, talking second home finances over with a trusted accounting professional is also a good idea.

Considering all the factors currently, Lake Tuscaloosa’s real estate climate is definitely encouraging. Especially for those who have been waiting patiently for a chance to take fuller advantage of it, the realm of second home ownership could be worth investigating. If you are interested in the prospects for buying or selling a second home, do give me a call. I’ll be happy to help you investigate the many possibilities in today’s market.

When you want to sell your house, you want it to bring in top dollar. That means you want to find a Realtor^® in Tuscaloosa who has the characteristics of a top performer. He or she may or may not have last month’s highest sales volume, may or may not have page after page of onscreen MLS listings. However, there are characteristics you can look for that are bound to point to the best candidate to represent your home in your neighborhood.

1) Understanding You: the Client

I agree with Realtor Magazine:

“One of the strongest ways to increase likability and foster a connection is to demonstrate that [the Realtor] understands someone else’s needs, and is happy to help fulfill them.”

A great Realtor is inherently a great salesperson, and as such, automatically adapts his or her selling skills to each client.  The evidence comes through demonstrating that if the need arises to step back, he or she will do so. Likewise, when a client needs a push, he or she knows how to give them that push — gracefully.

You can test this. When you are interviewing to find a Realtor, don’t just quietly nod and agree with everything you hear. Offer a few objections, even if they are only theoretical. See how seamlessly the candidate handles the change of direction. The ability to discern and adapt to various types of clients is the same ability that will help a skilled Realtor present a positive impression of your property.

2) Selling Advice

It is essential to find a Realtor in Tuscaloosa who is a true professional – one who has the ability to approach your home from an unbiased perspective.  Being able to provide analytical, accurate and fact-based market information is vital. It is this ability that is the basis for establishing a market position that helps sell your house for its maximum value…and in the shortest timeframe.

3) Negotiation

A great Realtor is able to successfully negotiate price and terms between you and your buyer. No matter what, there is likely to be an emotional component involved, so maximum success takes not only keen business acumen, but strong intrapersonal skills, too.

When you are ready to find a Realtor for your Tuscaloosa property, look for experience, a full skill set, and confidence. Add in a touch of panache, and together you will make up a team that is fully armed to come to market.  I hope you will consider me for your candidate list: I work tirelessly to help every one of my clients meet their own selling goals. Give me a call to hear what my marketing plan can do for you.

Lately you may have noticed that it has become more of a pleasure to open the newspaper when you are checking up on real estate news. In addition to the Internet news feeds, I do still subscribe to some of the old-fashioned kind, too: the ones printed on actual paper (so you can tear interesting articles out and carry them around rather than just  Ctrl+C and Ctrl+Ving them).

Given the definite possibility that paper papers won’t be around much longer, I enjoy them while I still can. The Wall Street Journal is one. I opened it up on Saturday to find a headline at the top of the second page that got my attention: “Home Sales Rise For 15^th Month,” it fairly screamed.

If you are a frequent visitor here, you know that I follow and comment on home sales and associated topics regularly — but even I hadn’t realized that the trend has been going for such a long time. I took a look at the charts, and it is so!

Others noted the mark, too. The NY Times seems in a permanently grouchy mood of late, so it had a less ebullient take on the statistics (which originated with the NAR). But even they were forced to note that higher prices have become the rule rather than the exception. “The nation’s stock of existing homes for sale fell 3.3% last month…tight inventories have helped support home prices…,” the Grey Lady mumbled.

The Journal was more cheerful in approaching the latest numbers. “The markets need inventory right now,” they quoted the president of a leading appraisal firm. “The pent-up demand is enormous.”

You certainly can appreciate observations like that – especially if you are a homeowner who is keeping an eye on home sales since you might list soon. If you fall into that category, I hope you will check in with me to get a more precise readout of the Tuscaloosa home sales market, and what you might expect from this fall’s selling season. The Journal says, “…there are signs that demand could be picking up.” Since they also noted that national median home prices rose 11.3% from a year ago, you would have to say that’s a pretty safe assumption.

Everyone brings their own priorities to the table when checking out the Tuscaloosa homes for sale. Some folks drive street-by-street through their favored neighborhoods, eliminating or accepting through that first curb-appeal impression. Others trawl through the web listings, prioritizing by price, or lot size, or by number of bedrooms. Regardless of how they determine which Tuscaloosa homes for sale get a second look, savvy buyers eventually compare the amount of repair work each will need. They try to think like an inspector.

This is not to suggest that anyone except an experienced professional will be able to complete a thorough inspection – you need a pro for that. Nevertheless, while you are first comparing properties, putting on your inspector’s hat can help you whittle down the field.

If you watch an inspector at work, you will first notice that he or she spends an inordinate amount of time looking upward, so that’s a good place to start. An older home may have roofing issues, since some materials are made to last only about 15 to 30 years. Homes for sale with ceilings that show staining, corners with peeling paint, or buckled plasterboard are tip-offs that damage might already have taken place.

An exterior walk-around to check for irregularities in the roof could be an indication of needed repair or replacement, and that can get expensive. Look for cupping or blistered shingles or exposed matrix (the stuff under the shingles).

Then look down. Again, the usual suspect is water damage — an initial cause of foundation problems, mold and rot issues. Inspect the walls and exposed foundation for discoloration or patching.

Then, before you take off your inspector’s hat, look for poor drainage: sloping which leads toward rather than away from the house itself. Drainage that leads toward the home can cause water damage you may never have suspected without crawling under the house — damage to crawlspaces, walls and foundation.

If you think you see something and hear an explanation that leaves questions in your mind, we should compare notes: it might be time to engage an expert for a detailed assessment.

These are only a few examples of elements that are sometimes overlooked when weighing the merits of Tuscaloosa homes for sale.  If you choose me to collaborate in your search, I will be sure to bring my experience to bear in helping you avoid unexpected expensive repair work – from first walk-through to the final professional inspection you will want before signing on the dotted line.

Questions?  Call me anytime!

Traditionally, new buyers take their first homeowner’s plunge with what is termed a “starter home” – confining their Tuscaloosa home search to relatively inexpensive and modestly sized properties.  Today a shift is underway. Many prospective buyers are finding the traditional starter home is no longer a necessary first step.  I think it’s due to our current market’s desirable conditions, but no matter what the reason, more first-timers are finding it beneficial to sail past the starter home market and step right into a larger, more long-term property. The unusual combination of circumstances is national in scope:

More House for Less – Viewed from a historical perspective, house prices are still down near the bottom of the charts – though it’s looking as if that is not likely to last much longer. The National Association of Realtors reports that year-over year sales growth and prices continue to climb, although the latest contract numbers for September show a slight dip in volume. Bottom line:  a buyer today can buy more house right now than he could in the past.

Home Price Uncertainty – The global financial meltdown has had one undeniable consequence: individuals and businesses are more conservative in their expectations. The old plan to buy a small house — then sell it in a few years for a huge profit to finance the next house – does not seem to be such a sure thing in peoples’ minds.  Unless a buyer is confident that the family will be content to stay in a starter home for 7 to 10 years, it can make more sense for buyers to set their Tuscaloosa home search parameters to include houses that meet long-term needs.

Buyer Expense-Cutting – By skipping a starter home, homebuyers avoid paying mortgage, moving and closing costs twice. That doesn’t even include the minor costs that tend to add up both from selling the old house and buying the new: fresh paint, new carpet, new appliances, new furniture, etc.

Starting a home search is exciting anytime, especially when it’s your first house. Buyers looking to take advantage of low prices and inexpensive loan rates don’t have to be first-timers to find they can afford more house than they previously assumed. If you have been considering buying a home in Tuscaloosa, I’d love to help you find your dream home.  Contact me anytime and we will schedule a Tuscaloosa home search consultation!