03-03-2010
Record low mortgage rates continue; increases expected soon

AVONDALE, AZ - February 19, 2010 - The Federal Home Loan Mortgage Corp., known as Freddie Mac, released the latest results of its weekly Primary Mortgage Market Survey showing that the 30-year, fixed rate mortgage finance rate averaged 4.93 percent with an average 0.7 point for the week ending Feb. 18, 2010,down from last week's average of 4.97 percent, maintaining historic lows in home financing rates.

One year ago the average 30-year rate surveyed by Freddie Mac was 5.04%. The record low 30-year rate reported by Freddie Mac since its inception in 1970 was 4.71%, posted in early December 2009.

Officials of The National Association of Exclusive Buyer Agents (NAEBA) said these rates make home purchasing more affordable to millions of Americans, however the association warned that all indications are that rates will begin to rise later this spring.

"The Federal Reserve launched a program last year with $1.25 trillion designated to buy up mortgage securities, adding a great deal of liquidity to the mortgage market and keeping rates low," said Kimberly Kahl, NAEBA's Executive Director. "However, that program is scheduled to run out at the end of March and most observers, including NAEBA, believe that rates will go up as a result. There's a small chance that the Fed will extend the program, but to date there's been no definitive word on that."

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

In the latest Freddie Mac mortgage rate survey, the 15-year FRM this week averaged 4.33 percent with an average 0.6 point, down from last week when it averaged 4.34 percent. A year ago at this time, the 15-year FRM averaged 4.68 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.12 percent this week, with an average 0.5 point, down from last week when it averaged 4.19 percent. A year ago, the 5-year ARM averaged 5.04 percent.

The 1-year Treasury-indexed ARM averaged 4.23 percent this week with an average 0.6 point, down from last week when it averaged 4.33 percent. At this time last year, the 1-year ARM averaged 4.80 percent.

 "Mortgage rates eased for the second week, while economic data releases suggest that the housing market may be in a slow state of recovery," said Frank Nothaft, Freddie Mac vice president and chief economist. "The National Association of Realtors® (NAR) reported that existing home sales rose in 48 states and the District of Columbia between the third and fourth quarters of 2009; 32 states experienced double-digit growth. In addition, 67 metropolitan areas saw positive annual house price growth in the fourth quarter, more than double that in the third quarter, according to the NAR.

"New home construction is also slowly improving. One-family housing starts rose to an annual pace of 484,000 homes in January, which is up almost 36 percent from January 2009, based on the U.S. Census figures. Moreover, homebuilder assessments of market conditions over the first half of 2010 improved in February, according to National Association of Homebuilders/Wells Fargo Housing Market Index."

In another mortgage survey, conducted weekly by Bankrate.com, the nation's large mortgage lenders reported 30-year fixed mortgage rates at 5.11% for the week ended February 17, 2010, down 0.04% from the previous week. Rates for 15-year fixed mortgages and 5-year ARMs were both reported at 4.51%, reflecting decreases for both categories from the week before.

In releasing its weekly data, Bankrate.com officials said that mortgage rates could increase to over 6% by the end of the year due to a combination of the Fed ending its mortgage investment program, growth in the overall economy and an expected recovery, however slight, in the nation's housing market.   

NAEBA was established in 1995 by real estate agents who recognized the need to establish guidelines to protect the best interests of buyers in home purchasing transactions. The association maintains a rigorous list of membership requirements, including Certified Exclusive Buyer Agent certification, ongoing education, and state-by-state knowledge bases that ensures each NAEBA agent is an expert in both national and local real estate laws, markets and practices.

For more information about NAEBA and to find a NAEBA agent locally, visit the association's website at www.naeba.org, use its Find An Agent Form,  or call the NAEBA Referral Service at 800-986-2322.  

 

03-01-2010
Home buying tax credits to end April 30, 2010; still time to take advantage

First-time home buyers can secure a federal income tax credit of up to $8,000 and existing homeowners can claim a tax credit of up to $6,500 if they enter into a binding sales contract to purchase a home by April 30, 2010, and complete the closing by June 30, 2010.

The National Association of Exclusive Buyer Agents (NAEBA) says there is still time to claim this substantial incentive money, but advises prospective buyers to act quickly. NAEBA agents throughout the United States are well schooled in all of the details of the program and can assist both first-time homebuyers and move-up/repeat buyers not only get the best deal on a new home, but secure a valuable tax credit in the process.

NAEBA notes that the program is a tax credit, not a tax deduction, so the credit can be claimed dollar-for-dollar against what homebuyers owe on the federal taxes for the qualifying year.

Moreover, NAEBA notes that members of the U.S. military, Foreign Service and employees in the intelligence community who are ordered on a period of official extended duty overseas may extend the effective dates of home purchases and closings for an additional year.

There are income limitations on who qualifies -- $125,000 for an individual and $225,000 for a married couple filing joint returns - but it effectively covers more than 95% of the US population, NAEBA said. Also, the tax credit only applies to homes costing a maximum of $800,000, but once again that covers all but a fraction of American neighborhoods.

For more information on the tax credit program and to discover the benefits of buying a home with an Exclusive Buyer Agent, find a NAEBA agent by clicking here.

 

11-11-2009
Quick Decorating Fixes for Home Buyers

So you've decided to buy a home and your Exclusive Buyer Representative has carefully vetted all of your desires in that new home. One of the services your NAEBA real estate agent will do is to show you all of the properties that fit your "model" in your preferred location at or under your loan approval amount. An independent buyer agent is different than other Realtors in that he/she will also show you homes listed for sale by owner, foreclosure properties and others not necessarily shown in the MLS.

Your NAEBA agent will gladly help you source the inspector prior to buying your home plus lead you to loan resources for your mortgage. But they can also connect you with subcontractors or point you in the direction of the nearest Home Depot or Lowe's, because it's a NAEBA agent's mission to find out every detail about the neighborhood you have chosen.

One of the immediate improvements a buyer can make to their home includes fresh paint. Often homes for sale have been repainted white or off-white for the purpose of making the interior more appealing to a broad base of buyers while also making the rooms look bigger. Personalizing the home with colors that suit the new owner's personality and furnishings is relatively quick and easy to do. Paint consultant Sara Noel of Noel Designs in Denver, CO advises clients on color palettes for their homes to makeover the entire look for less investment than other improvements. Tidbits of knowledge gleaned from Noel include using lighter colors at the front end of a house or condo that is long and narrow. Darker colors have greater impact when applied to the back wall in this scenario.

Noel is often called upon by clients to glaze older, tired kitchen cabinets rather than reface or replace the cabinetry. Complimented by new granite kitchen counters, a glass tile backsplash, and new cabinetry handles, the look is new and highly customized without overspending.

Gary Stone, owner of Allstar Electrical in Denver Colorado recommends changing out light fixtures to remake the mood of a room. Electrical fixtures for the kitchen, bath, entryway, and exterior can give a home an entire new feeling and again, the investment is modest. Older homes often demand new service as older homes weren't equipped with enough electrical outlets to service today's needs. It's a safety measure as much as it is a convenience.

Other quick facelifts can be achieved by refinishing existing hardwoods, or replacing old carpet with a new installation of hardwood floors. Pedestal bathroom basins and vessel sinks can bring the bathroom focal point into this era for less than one might think.

Then there's the issue of window coverings. Remove those tired ‘70s draperies and replace them with rods and simple panel drapes. Or install plantation shutters for a classic look that helps with energy costs.

 

11-07-2009
Myths vs. Fact about buying today

Plenty of myths surround the experience of home buying. The problem is that the truisms of yesteryear may not hold true today, what with the recession of 2009, the predictions for the economy, and the transient nature of some career paths today. You may have heard that you should "Always buy the biggest home you can afford."

One of the driving factors in buying a house is how much house one can afford.

Even before touring homes for sale, smart buyers shop for a mortgage loan. The lender will provide you with a loan commitment letter specifying the maximum amount they will lend you for your mortgage.

This is the point where couples need to ascertain whether they want to invest in real estate to the max or up to a lesser amount. That answer is purely subjective. Your NAEBA agent will take you through your preferences. Consider what is the maximum payment you are comfortable with making each month toward a mortgage. If it's less than the loan commitment letter, turn your search down a notch and start looking at homes that meet your requirements, but may not offer all of the amenities a dream home might include. You can always move up later on, keep the first home as a rental to create a second stream of income or add on to your current home.

09-28-2009
Preferred Style of Home

Every buyer has a preferred style of home. Mid-Century homes built between 1945 and 1965 were made famous by Frank Lloyd Wright and Joseph Eichler. Popular Pre-WWII styles include Tudor, Colonial, Arts & Crafts, Mission, Italianate, Green Revival and Queen Anne. Stucco is used in both Mediterranean and Spanish homes. “Urban” defines new-build and warehouse conversions in this century.

09-22-2009
Market watch

The Wall Street Journal reported in early September that Standard & Poor's Case-Shiller U.S. National Home Price index of real estate values increased this past quarter over the first quarter of 2009. This is the first quarter-on-quarter increase in three years. This index of 20 major cities showed the only hard-hit Detroit and Las Vegas experiencing declines. 

09-18-2009
First Time Homebuyers

 The $8,000 federal tax credit for first-time homebuyers is scheduled to expire on December 1.  In order to qualify, the transaction must be closed on or before November 30, 2009. That leaves buyers with 2 ½ months to complete the process.

06-25-2009
Homeowners Foundation Highlights Dangers for Home Buyers

The American Homeowners Foundation (AHF), the independent national nonprofit consumer education organization serving American homeowners since 1984, has published a free guide to help home buyers avoid the many traps related to buyer representation. These traps have lead to thousands of lawsuits and caused many home buyers to pay thousands of dollars more than necessary. AHF has been warning home buyers about them for many years in its books and newsletters. According to AHF and the National Association of Realtors© (NAR), the problem is getting worse. For that reason the Foundation has compiled “The Home Buyers Guide to Real Estate Representation”, which it is providing free as a public service to American home buyers.

The process of buying a home has gotten far more complex over the years. One area that has become very complicated is buyer representation. Most home buyers deal with real estate agents and brokers in the course of their home purchase. Depending on the real estate agent and broker’s business model and the nature of the home buyers’ agreements, if any, with a real estate agent or broker, the agent and brokerage may be 100% on the buyer’s side, 100% on the seller’s side, somewhere in between, or a knowledgeable but largely disinterested third party.

The types of buyer agency business models have proliferated in recent years. They range from exclusive buyer agency, which does provide full representation to buyers, to many variations of dual agency, under which home buyers may be denied assistance in negotiating the lowest price and best terms. The alternatives available to home buyers in terms of buyer agency business models can have a major impact on the cost of a home. The problem is compounded by widespread noncompliance with state laws requiring that real estate agents and brokers make it clear who they actually represent and what services they may or may not provide.

Today many home buyers falsely believe that their real estate agent is helping them to negotiate the lowest price and most favorable terms, but in fact their real estate agent and brokerage is not, and may be helping the seller get the highest price. According to NAR’s 2007 Profile of Home Buyers and Sellers, nearly half of home buyers wrote contract offers to purchase homes without ever having been told by their agent that they were not helping the buyer negotiate the lowest price and most favorable terms.

To make an informed decision in selecting a real estate agent to work with, home buyers need to know in advance exactly what representation they will or will not be receiving from a real estate agent and brokerage. To help them, The Home Buyers Guide to Real Estate Representation includes a questionnaire home buyers can use to find that out, as well as obtain other background information that will help them pick the most qualified real estate agent. Home buyers can receive a free digital copy by sending an e-mail to .(JavaScript must be enabled to view this email address) and typing “Free Home Buyers Guide” in the subject line. They can receive a free printed copy by mailing a stamped self addressed envelope with 3 ounces of affixed postage to: AHF Free Home Buyers Guide, 6776 Little Falls Rd., Arlington, VA 22213.
The American Homeowners Foundation publishes books, model contracts, special studies and other helpful tools for home buyers and sellers and current homeowners. The Foundation’s website (www.AmericanHomeowners.org) contains much useful free information that American homeowners will find helpful in home buying, selling, remodeling, financing, and related activities.

06-19-2009
NAEBA Calls on Congress to Establish a Federal Mandate for Real Estate Agency Disclosure

The National Association of Exclusive Buyers Agents (NAEBA) released a letter to Congress today urging members to include real estate agency disclosure language in legislation relating to mortgage lending reform, including the Anti-Predatory Lending Act and the ongoing discussion over the formation of a Financial Products Safety Commission.

“Too many consumers have no idea that when they contact an agent listing a home, that agent must do everything possible to achieve the best outcome for the seller,” stated John Sullivan, President. “As a result, these consumers have no one involved from the beginning of the transaction who can advise them on negotiating techniques, price points or the acquisition of an appropriate loan.”

As Congress considers a range of measures to better inform consumers of their rights and responsibilities in the home buying process, NAEBA hopes to include clear, transparent and mandatory real estate agency disclosure language in legislative vehicles as they move forward. 

“Clear, consistent and transparent real estate agency disclosure will help consumers better understand that there are many types of real estate agents, each of whom have responsibilities to different parties in a real estate transaction,” stated Sullivan, “Common sense suggests that when an agent is representing a seller or, in the case of dual agency both parties, neither the buyer’s nor seller’s interests are fully served.  Consumers need to have all the facts in hand in order to make informed decisions.”

A recent NAEBA white paper titled “Consumer Protection and the Real Estate Industry,” makes clear the extent of the problem.  While the states have attempted to better inform consumers through state disclosure laws, inconsistencies in these laws, as well as lack of compliance and enforcement, have left most home buyers in the dark.  In fact, three studies by the National Association of Realtors since 2002 show that only about 30 to 35% of home buyers actually receive agency disclosure statements at their first meeting with a licensee, a level that is virtually unchanged since it was first revealed by the FTC in their 1983 study.

NAEBA believes that, at a minimum, consumers should know what kind of agent they have and who specifically that agent is responsible to in the transaction.  The organization is supporting language that will bring transparency to the process by:

• making clear all types of agency representation available;
• providing consistent definitions of agency throughout the country;
• clarifying the time and method of disclosure;
• obtaining written confirmation from the consumer that they have received and understand the information; and,
• providing for enforcement with significant penalties

“In keeping with ongoing efforts to provide consumers with the tools they need to avoid foreclosures, we urge Congress to establish a federal requirement for real estate agency disclosure in the home buying process.  Armed with the facts, the home buying public will be much better able to make informed and appropriate decisions – decisions that will impact their financial well-being for years,” stated Sullivan.  “We look forward to working with members of the U.S. House and Senate to help their constituents on this important issue.”

06-03-2009
Why Use an Exclusive Buyer Agent?

• Only an Exclusive Buyer Agent (often called an Exclusive Buyer's Broker) can GUARANTEE to represent you in your home purchase.
• Only an EBA can GUARANTEE to negotiate on your behalf.
• An EBA provides the true facts as to value, market/neighborhood conditions, and obvious physical defects.
• The high level of negotiation training and expertise of an EBA truly levels the playing when it is time to make an offer on a property.
• Because an EBA only represents buyers and does not have in-house or company listings, a seller is always unaware of the price buyers are willing to spend during the negotiation process, bringing the advantage back to the buyer and the buyer's wallet. For this reason alone, it is very common to save thousands of dollars during the critical negotiation process.
• An EBA will insist that the buyer utilize a qualified home inspector who will treat the buyer as their client, and not as a customer.
• Listing agents (the ones with the sign in the front yard) and the company that they work for represent the SELLER, not the buyer. Their job is to get the SELLER the highest price on the best terms.
• An EBA's job is to get the BUYER the lowest price on the best terms.
• EBAs will do a better job for transferees that anyone else. They will give you the facts, good and bad.
• A listing agent cannot tell you about many things that would be detrimental for the BUYER because they work for the SELLER.
• An EBA will help you with your financing alternatives. They may advise you to be pre-approved by a lender. Why? Because a fully approved loan makes you a cash buyer.
• EBA’s have a legal and ethical obligation to put your interests first!
• It just makes sense!

Let NAEBA help you ... Find Your Best Agent!

06-02-2009
HUD Secretary Donovan Announces Plan for Immediate Access to First Time Home Buyer Credit

Qualified first time home buyers will be eligible for a tax credit of up to $8,000 when filing their annual tax return.  On Friday, May 29, 2009, however, HUD Secretary Donovan announced that the tax credit may be immediately available to those buyers.

Currently, borrowers who apply for an FHA-insured mortgage are required to make a minimum down payment of 3.5% when purchasing a home.  The 3.5% is still required, but now lenders can monetize the tax credit to cover closing costs or for an additional down payment.  According to HUD, "this program will allow homebuyers to shop for the best home price and services using their anticipated tax credit."

For more information, see the press release from HUD or view Mortgagee Letter 09-15.  

06-01-2009
Protection During the Home Buying Process

Enjoy peace of mind during the home buying process by planning ahead and finding a buyer agent before you shop for your new home.

The ideal agent, one exclusively representing real estate buyers, can be found through an interview based on the kind of questions they hope buyers will ask of them.

Don’t make the mistake of finding your agent through an Open House or calling the Listing Agent or real estate office about a particular home. Since it is not uncommon for new agents or part-timers to conduct Open Houses and do "up-time" answering the phones at the real estate offices, you may end up with someone who hasn't had much experience.

If you call Listing Agents who specialize in listing houses, not focusing on buyers' needs, you may end up with an agent who will do a better job selling your house when the time comes rather than serving your needs and wants now as a home buyer.

NAEBA members work under a defined Code of Ethics and Standards of Practice , both of which revolve around the idea of buyer representation. This means that you can relax, knowing that your EBA is doing their best to protect you throughout the home buying process.

05-27-2009
A NAEBA real estate agent has no hidden agenda. They only represent the buyer

Real Estate Negotiations are Handled by a Home Buying Expert

Home buying assistance from exclusive buyer’s agents focus on negotiations since they devote their work to the buying side and are considered home buying experts. They understand that home buyers value their negotiation skills and that ‘everything is negotiable’ in real estate. Not just price but terms, conditions, contract clauses, disclaimers, exclusions, and dates.

Exclusive buyer’s agents will make sure the sellers know about other competitively priced homes on the market competing against theirs. They will attempt to learn the sellers’ motivation for selling, bottom line price and any deadlines they are trying to meet. They will ask if there have been other offers or if they have any offers at the present time. They will use clauses and contingencies in the offer to protect your earnest money deposit as well as afford you the time for the appropriate inspections necessary to learn more about the home.

They may suggest requiring a short window of time for the seller to respond to your offer depending on the type of market. The state of the market, whether it be a seller’s market or buyer’s market can affect your negotiations dramatically. When there are rising prices, fewer homes, and multiple offers competing against yours, you have must less of a chance of getting a bargain. You may end up in a bidding war when the market is ‘hot’ and it may even be necessary for you to be likable to the sellers when they must choose from among several offers on the table. On the other hand, when it is a buyer’s market, sellers are forced to be more accommodating and you will strike your best deal.

The exclusive buyer’s agent will advise you how long the property has been on the market as well as conduct a property value study or prepare a CMA (comparative market analysis) to help you decide the amount of the initial offer. They will encourage you to try to find at least two homes, preferably three homes that satisfy you to improve your bargaining position for your first choice home .

A thorough home inspection will also help you determine if the home is in the condition represented by the seller and the home buying expert will be ready to renegotiate should there be repairs needed or a request for a credit to cover repairs. Be prepared to walk away if you cannot strike a deal. It is a good way to test your resolve about the value of the house.

 

05-20-2009
No Compromise. How a NAEBA agent gets you a better buy

A better selection of homes to choose from is the goal of many home buyers as they set out to buy their next home. One way of achieving a greater ‘inventory’ of homes to select from is to choose agents who are exclusively representing real estate buyers. These exclusive buyer’s agents have made the commitment to identify all homes in the marketplace, including homes listed in the Multiple Listing Service (MLS).

This commitment to a comprehensive search for all available properties can be especially important when looking for luxury real estate such as vacation homes , estate homes , and other luxury homes .

For Sale By Owner (FSBO) homes are important in markets that still have a shortage of inventory or are active ‘seller markets’ where homes go under agreement quickly. Exclusive buyer’s agents will ensure that home buyers have access to all of the data on listed homes including the address and complete property data as well as the basic facts about the for-sale-by-owner homes .

For a better selection of homes to choose from, shop for an exclusive buyer’s agent who can expand your search to the full range of homes on the market, including for-sale-by-owner homes .

05-06-2009
Due Diligence. How a NAEBA agent does it better

Enjoy peace of mind during the home buying process by planning ahead and shopping for your real estate agent before you shop for your new home. Don’t get so caught up in the excitement of buying a new home that you miss out on the chance to have a real estate agent on your side.

Peace of mind starts with selecting a real estate agent from the pool of agents dedicated to buyers needs by exclusively representing real estate buyers only and ends with the satisfied feeling at closing that you were protected in all aspects of the transaction – location, negotiation , inspection, and getting the best mortgage rate .

While any real estate agent can arrange property showings, provide mortgage assistance, print up information from the Multiple Listing Service (MLS), explain the forms and agreements, and track the whole process, an exclusive buyer’s agent will point out reasons not to buy a particular property, negotiate aggressively for the best price and terms , include protective contingency clause in contracts to protect your interests, and most importantly, keep confidential any information that could hurt your bargaining position.

If you are looking for high end real estate , luxury real estate , or are buying a vacation home this representation becomes especially important.

When working with a NAEBA-member exclusive buyer's agent, you are assured of ethical conduct and adherence to NAEBA standards of practice .

02-16-2009
Site 2.0 Release

Please check out our new 2.0 site release!