Have You Considered Investing In Real Estate?

Have you ever considered buying a property as an investment? The property market is not reserved for experts and millionaires – you too could use it to make the most of your hard-earned savings.

A lot of people only buy a house as a family home and find paying off their mortgage before they reach retirement a big financial burden. Sound like you? However, buying a house as an investment (not living in it and instead renting it out) can make you a lot of money. In fact, it’s been shown that property outperforms other investments such as stocks, shares and savings accounts to bring you a nice fat profit in the long-term.

Yet somehow we’re all too cautious about hopping on the property investment train. Why? There are a few common apprehensions, questions and ‘buts’ people have when first looking at property, but there are good answers to all of them. So, before the words ‘finance’, ‘invest’ and ‘mortgage’ turn you off, have a read of the below to get clued in on what property investment can do for you and your piggy bank

But I don’t have the money to invest in property!

It’s a common misconception that you need to have all the cash up front. US banks may lend up to 75% of the property purchase price for investors, so for a $250,000 purchase (the average housing price in Lewisville according to Zillow) the total capital you need is $62,500. IRA’s and 401K’s are ways to get the down payment.

But I don’t want to take out another mortgage!

Before you panic about taking out a second mortgage, remember that the tenants who will be renting at your property will be paying off the mortgage for you, and that taking out a mortgage to pay for your investment means making more money.

But isn’t it risky?

As with all investments, there are low-risk and high-risk options.

But how can I make money from my investment if all my pennies are tied up in the property?

1) The increase in the property’s value over time. A well-chosen property and market will see the value of your investment jump up significantly over the course of five-to-ten years. You can then choose to resell at that higher price, keep it for longer to increase profits further or pass on the investment to your children.

2) The rent your tenants will pay you. This can cover the mortgage and/or provide you with an additional regular income – remember, rents will also increase over time as the area you invest in becomes more popular.

But I don’t want to be a landlord!

You don’t have to be! There are property management companies that exist to take that responsibility off of your hands. They can handle everything, from decorating and tenanting to taxes and reselling, and you’ll still be able to make a healthy profit.

When you’re ready to learn more or if you’re already clued in and want some more in-depth market advice, contact Jim Trump & Associates today! (214) 609-7123 or jtrump@kw.com

U.S. City Growth Is Slowing, But Suburbs Are Still Booming!

While cities are still outpacing suburbs, the gap is closing

The United States’ biggest cities grew more slowly last year as suburban areas population closed the gap, according to figures released by the U.S. Census on Thursday, suggesting that city-dwelling Americans may be looking to the suburbs again. While city growth overall is still outpacing the suburbs, the gap between the two is shrinking after several post-recession years in which downtowns and older urban cores around the U.S. saw significant population increases.

“The slowing growth in these urban cores and the increasing gains in the suburbs may be the first indication of a return to more traditional patterns of city-suburban growth,” said University of New Hampshire demographer Ken Johnson.

Of the 51 largest metropolitan regions in the U.S. in 2013, just 18 of them saw faster growth in cities than suburbs in 2013, compared with 25 in 2012.

The new Census figures show significant growth in suburban areas in the South and West. Almost all of the fastest-growing cities with a population of 50,000 or more were suburbs of major cities like Dallas, Salt Lake City, Phoenix, Nashville and Houston.

Texas suburbs saw the largest growth between 2012 and 2013, especially in areas around Austin, a city millennials have moved to in recent years for its tech jobs and cultural opportunities. The U.S.’s fastest growing city is San Marcos, whose population grew 8% in 2013. Cedar Park and Georgetown were also in the top seven fastest-growing cities, and all three Texas cities surround Austin.

“What you’re seeing, particularly outside of the northeast, is the growth of the ‘boomburbs,’” says Andy Beveridge, a demographer at Queens College. “But you still have substantial growth in the cities. Both are happening.”

Many of the nation’s biggest cities still saw the largest population increases, led by New York City, which added 61,440 people and remained the country’s largest with a population of 8.4 million. Houston, Los Angeles, San Antonio and Phoenix made up the top five in terms of population increases. One curious outlier was Chicago, the nation’s third-largest. Its population in 2013 grew by just 5,900, or 0.2%, to 2,719,000. That was smaller than the 8,600 it gained in 2012. In Chicago’s suburban Cook County, population growth was stable, and it increased in the city’s outer suburbs. Johnson points to Chicago as possibly suggesting an end to rapid city gains over suburban growth.

Historically, Americans have moved from downtown city cores to suburbs as they got older, had children and needed more space. Suburbs grew three times as fast as cities from 2000 to 2010, according to an analysis by William Frey, a demographer with the Brookings Institution. But the recession quickly reversed that as many older Americans felt frozen in place and decided to stay put, temporarily halting that city-to-suburbs flow. At the same time, those in their 20s and 30s have flocked to downtowns in that same period, often lured by jobs and the ease of commuting in an urban area.

Since the recession, city growth has largely outpaced suburban growth. From 2011 to 2012, city populations increased by 1.13% while suburbs increased by 0.95%, according to Frey. The new Census numbers show cities growing 1.02% and suburbs growing 0.96%.

But Frey says the U.S. is a long way off from the kind of suburban sprawl it witnessed throughout the 1990s and 2000s. Many of those living in cities have likely decided to stay put for good, Frey says, or are still financially unable to move or buy a house.

“We may never see that kind of suburbanization again,” he says.

Why You Should Sell Your House NOW!!

School is back in session, the holidays are right around the corner, you might not think that now is the best time to sell your house.  But with inventory below historic numbers and demand still strong, you could be missing out on a great opportunity for your family.

Demand is Strong

Foot traffic refers to the number of people out actually physically looking at home right now. The latest foot traffic numbers show that there are more prospective purchasers currently looking at homes than at any other time in the last twelve months which includes the latest spring buyers’ market. These buyers are ready, willing and able to buy…and are in the market right now! As we get later into the year, many people have other things (weather, holidays, etc.) that distract them from searching for a home. Take advantage of the buyer activity currently in the market.

There Is Less Competition Now

Housing supply is still under the historical number of 6 months’ supply. This means that, in many markets, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market. There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market in the near future. Also, new construction of single-family homes is again beginning to increase. A recent study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference). The choices buyers have will continue to increase over the next few months. Don’t wait until all this other inventory of homes comes to market before you sell.

The Process Will Be Quicker

One of the biggest challenges of the 2014 housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. Any delay in the process is always prolonged during the winter holiday season. Getting your house sold and closed before those delays begin will lend itself to a smoother transaction.

There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 19% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate in the low 4’s right now. Rates are projected to be over 5% by this time next year.

It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should? Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market. Perhaps, the time has come for you and your family to move on and start living the life you desire.

That is what is truly important. 

For professional real estate service, contact The North Texas Home Hunter at (214) 609-7123 or jtrump@kw.com

 

10 Simple Steps to Losing Your House!

Open New Lines of Credit

Lenders must adhere to strict debt-to-income ratio requirements.  If you add a new car payment or credit card payment to the mix after you have been pre-approved, you debt-to-income ratios may now be too high to qualify for the proposed housing payment.

Run Up Balances on Current Credit Cards

Even if you don’t open new lines of credit, charging a substantial amount on a current card will raise the minimum monthly payment on that card your lender is using for financing. Again, this could throw your debt-to-income ratios completely out of whack!

Spend Down Payment Funds

Even if your lender verified down payment funds prior to your pre-approval, if your balance decreases to less than what you will need at closing and your lender requires new bank statements, this could cause a major delay in your closing date.  If you’re closing on a short sale with a hard deadline, you could end up losing the house if you cannot close in time and aren’t able to obtain an extension.

Lose or Switch Jobs 

Not much explanation needed here. If your qualifying income is no longer coming in every month, closing on your house isn’t going to happen unless you have a co-borrower who can carry the payment on his or her own.

Make a Late Payment on Your Credit Report

If your credit score is barely meeting the minimum threshold, one late payment could knock you out of the qualifying range.  If your credit score expires before closing and your lender needs to re-pull credit, then you would be in trouble if this has happened to you.

Failure to Communicate Alimony or Child Support to Your Lender

This information is important and will affect the amount for which you qualify. If it comes up too late in the process, there’s a chance you could lose the house, so please share this information with your lender, even if he or she doesn’t ask.

Failure in Communicating That You Are in the Market for a Condo

If you are purchasing a condo, the lender must factor in condo association dues, which can be very pricey. If your lender isn’t factoring a cushion for this into your pre-approval, you may find out that your debt-to-income ratios are too high once you are already under contract.

Getting a 10 Minute Pre-approval

Yes, I know you are busy, but getting a pre-approval shouldn’t be a 10 minute process with some online lender that you heard about on the radio.  Obtaining a mortgage loan is very complicated and your lender should spend time interviewing you, learning about your employment history, and reviewing the standard documents required for a mortgage pre-approval.  Just because you are supposed to receive court-ordered child support doesn’t automatically make that money qualifying income.  A lender must be able to show a history of receiving these payments on time, if not; the underwriter will not allow your lender to use the income.

Failure to Communicate an Employment Gap 

A lender should ask for your two-year work history upfront, and, if a large employment gap arises that your lender was unaware of, you could have issues if you don’t have a good letter of explanation.

Failure to Submit Lender-Required Documentation

Your lender may ask you for documentation several times throughout the process–in order to make sure he or she can submit your story to underwriting in a timely matter and close you on time. They aren’t doing this to be spiteful! You must be available via phone and email to respond to these requests in a timely manner.  If you aren’t, your loan won’t make it to final approval, and you will not be able to close on your home.

How Do You Make Sure This Doesn’t Happen To You? 

How can you be sure you won’t sabotage your own chances of closing on your dream home? Make sure you speak with a mortgage advisor who is knowledgeable, skilled, and thorough enough to make sure you’re not scaring underwriters away with your credit history, bank statements, and employment history.  A skilled loan officer will not conduct a 10 minute pre-approval or send you out to search for home without explaining closing costs and how to get to the closing table with ease. I have lenders that I work with that I trust implicitly, and will give you their information in order to streamline the lending process.

For professional real estate service, contact The North Texas Home Hunter at (214) 609-7123 or jtrump@kw.com

The “Secret” Short Cut To Selling Your Home

All Home Sellers want a fast sale. Many seek a Short Cut to give them the edge. Many soon learn there is a “Right” way and a “Wrong” way to listing their home. There is a secret though and simply put, there is no short cuts when selling a home. There is a simple recipe that can lead to success which is listing with the best local agent who will guide you through each step of the selling process.

Price the home correctly from the start. Your agent should have a proven marketing program to reach the most potential buyers. The agent should be available to answer calls and questions. They should communicate with you during the selling process. There is no short cut for hard work. There is no short cut for a good agent and hard work getting results.

Click here for Flower Mound area Homes for Sale by clicking here.  

What is a Home Buyer or Seller to do? Having the best Listing Agent or the best Buyer’s Agent is one of the best ways to be assured you are being taken care of when buying or selling a home.

The hard truth is that Buying or Selling a Flower Mound home can go as good as the agent you hire.

If you are buying or selling a Flower Mound home, you need an agent who will work with you, look out for you and guide you through each step of the Buying and Selling process. Buyers and Sellers should know that they have a choice of agents. Use your choice to hire the BEST agent in your area, and know that bigger is not better.

I have put together a simple recipe for both Home Buyers and Sellers. Follow this along with pricing your home right, and the result can be a SOLD SIGN in your front yard.

THE TOP TIPS TO FIND A “GREAT” REAL ESTATE AGENT

LEARN THIS ONE FACT: One should know that All Agents are not created equal and every buyer or seller should take the time to hire the BEST, not just the biggest, agent or company. It is important to Hire the BEST Agent. In FM that could be me.

CHOOSE THE RIGHT AGENT: As a Buyer OR Seller in this market you need every advantage you can to get your home sold. It starts with choosing the right agent.

1. Ask for a Full time agent whose sole job is to sell homes.
2. Ask for a Full service agent who will guide you through each step of the selling process. Discount brokers often equal discount services.
3. Ask for a Local agent who knows your neighborhood and is readily available when you need them. Out of town agents can leave you high and dry in your time of need.
4. Asking for a well experienced Listing Agent can give you the advantages you need when selling your home. Not all agents are created equal. Choose only the best.

HOME BUYERS SHOULD START BY:  Getting a FREE PRE-QUALIFICATION with a local and trusted lender. They will look at your credit and financial picture and let you know what type of mortgage you may qualify for and what your interest rate and monthly payment may be.

HOME SELLERS SHOULD START BY: Getting a FREE MARKET ANALYSIS. Learn what your property is worth in today’s market along with how long it may take to sell. If you are ready to sell now, learn what you should ask for it, how much offers may come in for and what the approximate selling price should be. Flower Mound Home owners should contact me now.

IN SUMMARY

The key to having a successful purchase or sale can increase simply by choosing a better agent. The secret is that All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest. I leave you with a now infamous philosophy, which is simple: To provide more personal and professional service to guide my clients through each step of the buying or selling process.

It does not take magic to turn your “For Sale” sign into a “Sold” sign. It takes a full time Local Agent who specializes in listing homes like yours.

If you are thinking of buying a Home please contact me. Get a free pre-qualification along with some of the BEST CUSTOMER SERVICE through each step of the Buying Prices.

I STRIVE TO PROVIDE THE BEST POSSIBLE SERVICE THROUGHOUT EACH STEP OF THE LISTING AND SELLING PROCESS!!!

For professional real estate services, contact The North Texas Home Hunter at (214) 609-7123 or jtrump@kw.com

What Are The Proper Expectations That You Should Expect From Your Realtor?

Hiring a Realtor for the critical job of selling your home is a really key decision. Get it wrong and there could be some serious consequences in terms of your home remaining unsold for longer than you would like and/or not achieving its optimum price in whatever the current market conditions happen to be.

It would be very accurate to say that not all Realtors are operating on a level playing field, not by a long shot!

A search for the right Realtor for you will be considerably enhanced if you know exactly what you should be expecting your Realtor to do for you.

At the very least, a professional Realtor must: –

– Demonstrate absolute integrity.
– Educate you about the current conditions of the local market.
– Analyze what you want and what you need in your next home.
– Co-ordinate the work of other needed professionals throughout the process.
– Guide you to homes that fit your criteria and budget.
– Negotiate on your behalf to get you the best deal possible.
– Check and double-check paperwork and deadlines.
– Inform and discuss with you, and suggest solutions to solve any problems that may arise.

Going on from there you should also expect the following: –

– In-depth expertise in and experience of the local market.
– Working as a full-time Realtor, not as a part time hobby!
– Aggressive seller/buyer identification and connection methods.
– Strong customer service ethic/communication/marketing skills.
– A strong online presence; quality website, daily social networking engagement etc.
– Ongoing commitment to continuing professional development; consistently honing selling skills and real estate industry knowledge.

I would strongly advise you to ensure that whatever Realtor you select, he or she fits all of the above criteria. This will hugely improve your chances of meeting your goals the very first time.

For professional real estate services, call The North Texas Home Hunter @ (214) 609-7123 or jtrump@kw.com. Put me to the test!

    

Steps Towards Winning In A Sellers’ Market

Over the past year two years or so, the real estate market has become a very different landscape from years past. If you have been out looking to become a home buyer, it’s possible that you have found yourself putting in offers on multiple houses, and also possibly watching from the sidelines as another home buyer walked away with a deal. If this is not a true seller’s market, to you the difference may not be apparent!

In any case, when a prospective home buyer finds themselves vying for one of the plum homes that are now appearing in the area listings, there’s no need to passively watch as others get the nod. If you are sure of the value of the property you are going for, there are straightforward tactics for improving your chances of winning the day.

– Offering at or above list price –

This is the time-tested way to give you the best shot of getting your contract accepted over bidders who offer less than list. Real estate prices are again on the rise, increasing your likelihood of being able to recoup the extra money if you decide to sell several years down the road. Look at the comparables with your agent to determine what an aggressive, yet realistic price, will be.

– Ask your real estate agent what the recommended earnest money amount would be; then double or triple that amount. It’s a sure way to signal that you’re a serious and financially able home buyer. This tactic has the advantage that it doesn’t really cost you anything in the long run, assuming you hold up your end of the contract. It is a way to stand out from other home buyers without actually spending more.

– In a buyer’s market, it’s almost expected to ask for add-ons like fixing a staircase or leaving the swing set. But in a seller’s market, you can beat the competition by not asking for extras beyond what is offered in the listing. Home sellers may be fully occupied with many outside details (like looking for their own next home!) and often assign high value to an offer that looks uncomplicated.

– Along the same lines, another way to set yourself apart from every other home buyer is to offer to give the seller more than the usual time to move out of their house. Many other bidders, and their agents, won’t think of doing a lease back, but it can make the deal if the sellers are having to cope with difficult deadlines for their own move.

Above all, don’t let yourself get discouraged! The right house is out there, and you will get an offer accepted! Particularly in a seller’s market, any home buyer will be rewarded by just remaining patient and cool-headed.

For professional real estate services, call The North Texas Home Hunter at (214) 609-7123 or jtrump@kw.com

5 Reasons To Hire A Realtor~

5 Mistakes That First Time Home Buyers Often Make.

Buying a home is exciting, especially when you’re buying for the first time. In the midst of all of the excitement, it’s easy to become blinded by beautiful back-splashes, granite and quartz counter tops, hardwood floors, and fenced-in backyards. While looking at homes that are completely perfect from top to bottom, you may begin to rationalize a larger purchase than you had originally planned for:

“This house is perfect for me; it’s worth $50,000 extra dollars for me to have a house with enough space in a perfect location,” or “We were planning on spending a little bit of money on painting; we can spend $50,000 extra on this house because it doesn’t need any work.”

Overspending

Before you even look at a single property, you need to know exactly how much you can afford. There are several online calculator tools you can use, but these tools are only estimates. How much is your current rent payment? Did you meet that payment each month with ease, or was it a bit of a struggle each month? The payment you can afford right now is a good indicator of what you’ll be able to afford in your new home.

Meet with a lender and get pre-approved for an amount you can afford. Also, keep in mind that it’s always better to lean towards a lower amount, rather than a higher amount. You do not have to use the entire amount you’re pre-approved for. Once you know how much you have to work with, then and only then should you start your house hunt.

Counting chickens before they hatch

When determining how much mortgage you can afford, base this amount on what you are earning today. That is, the income that you and your spouse earn from stable sources. If you’re in your last year of law school, for instance, don’t assume that you will be earning much more money in a year or two, so you can afford a larger payment. If your wife is expecting a big promotion, don’t base your mortgage payment off of her potential salary increase. No one can predict the future, and although you may very well be in a better financial situation a year down the road, there is no guarantee.

Failing to account for closing costs, property taxes, HOA, and homeowner’s insurance

When you rent a home, you generally only have one payment, rent, and then maybe renter’s insurance, which is optional. When you buy a place, your mortgage payment is only the beginning of an array of costs. Homeowner’s association fees can be as high as a few hundred dollars per month, depending on where you live and the amenities and services offered.

Homeowners insurance and property taxes vary based on your geographic location. Florida has notoriously high homeowner’s insurance rates, where they average $161.08 per month. In Idaho and Wisconsin, rates are a bit lower, averaging below $50 per month, according to Value Penguin. Property taxes average higher in New Jersey, New Hampshire, Texas and Wisconsin and they’re lower in Louisiana, Hawaii, and Alabama.

On top of all of those costs, if your down payment is less than 20 percent of the selling price, you may end up paying an additional cost, private mortgage insurance (PMI), which is basically insurance for the lender in case you default on your loan.

At the end of it all, your $800 mortgage payment can easily turn into a $1,200 house payment.

Failing to protect yourself with home inspections, contingency clauses, etc.

During your house hunt, you may find a house that looks great at first glance. Then, as you walk through a few of the rooms, you notice problems with the house. Maybe the floors squeak or the kitchen island is off-centered. After walking through the house, you come to realize that someone simply put lipstick on a pig, and this house is in questionable shape.

Home inspections provide you with some protection. The inspector will be able to find problems that you can’t and you want to know these problems before you sign on. “The seller isn’t likely to tell you there’s mold in the basement or the walls are poorly insulated,” reports MSN.

Contingency clauses also offer a form of protection. A mortgage financing contingency clause protects you if you lose your job and the loan falls through or the appraisal price comes in over the purchase price. Should one of these events occur, the buyer gets back the money he used to secure the property (Earnest Money). Without that clause, the buyer can lose that money and still be obligated to buy the house, legally.

Being too naive or too paranoid 

Some first-time home buyers are naive. Overly optimistic, they think nothing could possible go wrong. If a home has a few problems, they view them as easy fixes and are unrealistic when it comes to the cost and time it takes to fix up the home. Some naive buyers will move to a neighborhood on the wrong side of town, forgetting that you can fix up a house, but you can’t change your neighborhood or location without moving.

Paranoid buys are sometimes difficult to work with. They may not believe the price is an accurate assessment of the house’s market value. They’ll submit low-ball offers and then show frustration when they are consistently rejected. Paranoid buyers don’t trust real-estate agents, and may even try to buy their home without an agent, which is generally an unwise choice for anyone, let alone first time buyers.

To protect you during your purchase, and for professional real estate service, contact The North Texas Home Hunter at (214) 609-7123 or jtrump@kw.com

What Does Your Realtor Do?

In this fast paced world of the internet, and with so many websites in which to view homes for sale, the question always comes up; “Why use a REALTOR when buying or selling a home?” Many buyers and sellers only look at what they perceive as the cost of hiring an agent and overlook the real benefits the agent brings to both sides of the sale. Typically, the seller pays the commission to the listing agent for listing, marketing, and selling the property and the listing agent then shares a portion of that commission with the Buyers’ agent. 

In most cases, the commission is the only fee that is charged and keep in mind; they are only paid upon the closing of the property. 

An experienced agent is trained in the complexities of the transaction and generally is knowledgeable in the market area where the home is located. The fiduciary allegiance owed by the agent to the client is first and foremost. The agent must represent their clients best interests at all times. The negotiating skills of that agent is critical and must include strong communication skills, strategies, problem solving, being creative and maintaining a rapport with the agent on the other side of the transaction. 

Unfortunately, locating a buyer and then putting the property under contract is only half of the equation. The early period of the contract (Option Period) is when the buyers hire inspectors to inspect the property and go over its ‘overall health’.  In many cases, the buyer will ask for repairs to be made by the seller, which reopens negotiations as to what the seller is willing to do and the buyer is willing to accept. The agent is more than likely also involved in assisting the buyer in the type of that will best suit them, and referring great lenders to them. With all of the choices now available from the internet and what we have heard about the issues with the large national (big box) banks, the process of selecting a lender has become a lot more complicated. As an agent, I believe that using a smaller, local community lender is the best. It doesn’t matter how great the terms are that the buyer is offered, if the lender cannot deliver as promised, then it is probably too good to be true. Lastly, the liability in selling real estate if NOT handled correctly can be great, and the agent potentially assumes that liability along with the client. The state of Texas is a consumer state and requires the seller and agent to disclose any known defects in the property. Part of the job of the agent is to advise the seller of the great importance of disclosure and make sure that the proper forms are provided to any potential buyer. After the sale, any issues that arise are usually concerning the condition of the property. 

A real estate transaction is very complex and requires expertise. An agent, an experienced agent, will help you through the pitfalls. 

Jim Trump is one of the rare licensed REALTORS that is a Certified Negotiation Expert. For professional real estate services, contact The North Texas Home Hunter, Jim Trump, at (214) 609-7123 or jtrump@kw.com