Back with the Agent: the Sit-Down Meeting

If all went well at the first casual meeting, the agent has arranged a sit-down substantive meeting where both of you will get to know much more detailed information about each other. At this meeting the agent will outline the steps in buying a house and explain some of the forms and procedures you’ll encounter on the path to home ownership: inspection reports, the Seller’s Disclosure, handling of earnest money and more. The agent will want to learn as much as possible about your desired neighborhood(s), what type/size of house you want, and how much you are able to spend to get it. By now you should be pre-qualified by a loan officer so you know what you can afford, and the agent should be able to tell you if your wallet matches your wishes.

First Look at Financing

Before seriously looking at homes you need to find out just what you can afford, and how much it’s going to cost you. As Realtors we want to be looking at homes just as much as you do—but first let’s take a quick look at the pre-approval process.

Pre-Qualifying: Conditional Loan Approval
At this stage your contact with a loan officer is likely to be just a couple of phone conversations, where you’ll give information about your income and debt (including all obligations), and you may be asked for permission to run a credit report. Based on this information the loan officer can issue a letter that specifies a certain mortgage amount for which you are conditionally pre-approved. When you find a home you will need this letter in order to make an offer.

Buyer’s Closing Costs
You don’t know the exact amount you’ll need for a mortgage yet, so the amount stated in the pre-approval letter is hypothetical, though within your qualifying limits. At this time you may ask the loan officer for a more detailed look at the costs of your hypothetical mortgage, and receive an estimate of closing costs. The estimate shows your down payment and monthly payment as well as the various charges that make up the buyer’s closing costs, including lender fees, title company fees, and state mortgage registration tax. Several months of pre-paid property taxes and property insurance (and the initial lump sum for FHA insurance) are also considered buyer’s closing costs, as they are put into your mortgage escrow at closing. We won’t take the time to further detail the buyer’s closing costs, but be aware that they can vary greatly from lender to lender, ranging from 2% to as much as 4% of a $200,000 loan. Some of this difference depends on the type of loan and the interest rate, but lender fees can vary greatly as well.

Financing Quick Points
We say again: when looking for a lender, it’s best to start with recommendations from real estate professionals who work with lenders every day. Your agent will know several trustworthy loan officers—and with all the complexity of mortgage banking you will need a loan officer you can trust.

Important caution: if you’re shopping around for a mortgage lender, be sure that you don’t allow every lender to check your credit. It actually will lower your credit score to have it checked too often. This isn’t a problem, however, if you check your credit yourself. Just be sure to use a service that will give you a FICO report (the type mortgage lenders use). Most lenders will accept your information to issue a conditional pre-approval, since it needs to be verified later for full loan approval anyway.
New lending regulations require that lenders re-check your credit a second time within 10 days of closing, so don’t plan on charging the furniture for your new castle (or the boat for the moat!) until after closing.

What Questions Do You Need To Ask In Order To Find The Right Realtor

Take some time to learn about the agent and determine that he/she is competent, able to communicate directly and honestly with you, and can answer your questions openly. So what questions should you be asking, and when do you start? We say fire away as soon as you can, on the phone or in person or on the web, whenever you’re first making contact. Here are a few essential questions:
Do you work full-time at real estate?
Can you help us find the right loan officer and loan program?
Do you have enough time available to meet our needs?
Are you familiar with the areas we are interested in?
And the agent will likely have some questions for you, such as:
Have you already been pre-qualified by a loan officer?
Have you already been working with a Realtor?
What areas and type of home are you looking for?
If the answer to the agent’s question #1 is no, then the agent should suggest several loan officers who will be able to pre-qualify you right over the phone, so when you meet again you will know just how much you can spend on a home.

Selecting an Agent

Most buyers begin the home-buying process by looking at open houses. Some don’t even know they’re interested in home ownership until they see a house that’s exciting to them.
And for some buyers, the important task of selecting an agent ends right there. Although few realize that the open house experience can be as much about finding an agent as it is about finding a house, that’s the way it works. If you click with the Realtor who greets you at the door you’ve accomplished a lot—since to find and buy the house you really want you’ll have to spend lots of time with this person. Others consciously choose an agent or company because they have seen multiple signs in a neighborhood they desire. We receive many emails from people who, after seeing our signs, checked us out online. And, of course, buyers are often referred to an agent from friends, family, or co-workers.

August Real Estate Statistics

Buying a Home Getting Started - Start w/ the Real Estate Agent

Buying a Home - Getting Started - Start with the Real Estate Agent

Of course you knew we would say the agent comes first—and we do, because a full-service real estate agent will be the pivotal person who helps coordinate the efforts of all the hard-working people you need to get into your new home. The agent can direct you to a good lender and loan officer, reputable home inspectors, title company, even movers and repair contractors. At Re/Max Advantage Realty we’re not obligated to recommend an in-house lender, nor are we compensated in any way—we use certain professionals simply because they perform the best. Starting with an agent you trust can save you lots of time, money and frustration, as many who have come to us can attest. For example, some buyers use the DIY approach of finding and committing to a lender online before working with an agent; yet in nearly all cases, local lenders that we actually work with can get you the loan faster, with better rates and more sensible underwriting. OK, you say, but how to find that all-important agent?

How to choose a real estate agent

If you're buying or selling a home, a top-notch real estate agent canbe your biggest asset. Choose the wrong one, and you could wind up regretting it big down the road.

"Real estate has always been a mark of independence and freedom in this country," says Donald R. Brenner, professor emeritus at American University. "Owning property is very important, and when you deal with someone who is going to help you buy or sell a piece of property, you'd better find someone that knows what they're doing."

Don't embark on your buying or selling journey without an expert on your side. Our basic tips will get you on the road to finding the right agent for your needs:

1. Find an agent before you begin looking at homes. People rarely buy the first house they look at, but are often stuck working with that first agent even after walking away from the deal. If you select your agent before you start looking, on the other hand, you'll know he or she understands your needs and wants and can meet your expectations.
   
2. Ask friends and coworkers for referrals. People you know can provide a good starting point, by recommending agents who've already proved themselves. Don't make your decision based only on a recommendation, but use them to gather names.
   
3. Choose the agency first. Choose the firm based on their local reputation (not a national reputation, as with a well-known franchise).
   
4. Choose an agent who handles homes in your price range. Some agents specialize in high-end houses or in low-budget properties. Each of these agents may not be able to do the best job for you if you're looking for a home in another price range.
   
5. Choose an agent who will provide other services. Their help is invaluable when it comes to arranging house inspections, finding a real estate attorney or conducting a study of the property's value.
   
6. Choose an agent you get along with. This seems like a no-brainer, but you'd be surprised. It's important that you be able to work with your agent. Make sure he or she takes the time to explain things you don't understand, works on your time schedule, and whose personality clicks well with you.
   

US Census – Dubuque Area Statistics

July 28, 2011

US Census Bureau recently released household statistics for Illinois, Iowa & Wisconsin.

4,836,972 Households in Illinois. 2,279,768 households in Wisconsin & 1,221,576 in Iowa

36,815 Households in Dubuque County. 2,877 Dubuque households featuring a female age 65 or older living alone (7.8 percent) Iowa's statewide average is 8.1. 2,160 Dubuque households headed by a single female with children. The county's rate of 5.9 percent mirrors Iowa's state average.

2.99 people – average family size.

June Home Sales Remain Steady

 

The Dubuque Board of REALTORS reports the number of home sales in June 2011 increased 12.25% percent over May 2011. According to the Dubuque Multiple Listings Service's (DMLS) 2011 Residential Housing Report, 125 homes were sold in the Tri-State Area in June 2011 up from 102 in May 2011. 159 Homes were sold in June 2010. Average are home prices decreased 2 percent in June 2011 ($148,705) over same time 2010 ($151,848).

 

"We have seen a steady increase in sales each month since the beginning of the year" says Dubuque Board of Realtors President Jeff Hefel. "Although sales lag behind those of 2010, we attribute that to an uncharacteristic spike in sales during the first two quarters of 2010 when area homeowners took advantage of the federal tax credit. Interest rates remain low & it continues to be a great time to buy a home."

 

Dubuque Multiple Listing Service's Residential Housing Report

 

        # of Sales        Avg Sale Price

May 2011    102            $173,895

June 2011    125            $148,705

June 2010    159            $151,848

 

The DMLS Residential Housing Report is compiled at the end of each month. Data is collected from local Dubuque Board of REALTORS offices that enter sales data into the DMLS. Reports are available to DMLS members with a login & password.

 

** This article was printed in the Dubuque Telegraph Herald Sunday, July 24, 2011.**

If I Sell My Home, Will I Have to Pay Capital Gains Tax?

The IRS permits a maximum exclusion on capital gain of $250,000 for individuals and $500,000 for married couples filing a joint return who sell their home, but of course some conditions apply.

For the five-year timeframe prior to the date of the sale of your primary residence, you must meet the Ownership and Use Tests the IRS provides in Publication 523, Selling Your Home. These rules ensure you have owned the home for at least two years, and lived in the home for at least 24 months out of the last five years. Additionally, you may not have excluded a gain on your taxes from the sale of a different home within the last two years. Note that if you sell your property for less than your original purchase price, you cannot claim a capital loss.

A 'reduced maximum exclusion' can apply to those who must sell their home due to a change in their place of employment, health issues, or unforeseen circumstances that affect qualified individuals. In all cases, it is best to consult your tax professional or IRS guidelines if you have any questions about the taxes you may be responsible for if you sell your home.

**Provided by Premier Bank – Dubuque IA

A little known gem only 15 minutes from Dubuque, Located in Galena

Just wanted to share with everyone a delightful place I had the pleasure of dining at this weekend. The Goldmoor Inn. The Goldmoor Inn, a Galena, Illinois bed and breakfast, and Aaron's Cottages and Cabins sit high atop the bluffs overlooking the majestic Mississippi River. They also have fine dining available to non-guests. It was very beautiful and I would recommend for a special occasion. The food, dining experience, service, and setting were all wonderful! For those that are not familiar with Dubuque. Galena is only a 15 minute drive from Dubuque and I found it to be a wonderful get away for the evening. http://www.goldmoor.com/index.htm

 

Planet Patrol: The Case of the Broken Loop - July 19, 2011

July 19, 2011

Multicultural Family Center, 1157 Central Ave. Family Environmental Program. Topic: importance of recycling and proper disposal. Dinner provided and registration is required. Free event. Free admission. For more information, visit Mfcdbq.org

Dubuque & Statewide Activity Report

Locally, the Iowa Association of REALTORS® (IAR) reports that the number of pending home sales was up 5.6% in May 2011 compared to pending sales in May 2010. However, the key issue for many sellers is that prices have not significantly appreciated and have held relatively steady over the last 5 years. The IAR report indicates that May home prices have increased only 0.8% over the last 5 years (due in part to nationwide economic issues) but over the last 10 years Iowa home prices have actually appreciated around 19.8%, in spite of the economic troubles of the last few years.

The fact that prices haven't significantly appreciated in recent years has caused reluctance among sellers to accept a lower price for a home. This has resulted in many homes on the market, meaning that buyers have lots of choices when looking for a home. Coupled with very low interest rates, now might be a good time to buy for anyone looking to live in an area for at least 3-5 years or longer

Selling a Home in Dubuque, IA Successfully Marketing Your Home Online

 

Selling a home in Dubuque, IA is always an important task that has a lot of risks and rewards involved with it.

 

With more than 89% of home buyers using the internet to do research and look at homes, the online marketing of homes for sale in Dubuque, IA is critical.

 

In this article we will look at the 3 most important factors in online marketing of real estate and how they can be used to better market your property and get more people to contact your agent and then physically see your home.

 

According to the National Association of Realtors 2010 Profile of Home Buyers and Sellers, the 3 most important features of a real estate website for buyers are:

 

1. Photos of your home
   
2. Detailed information of your home
   
3. A Virtual Tour of your home
   

The key to successfully marketing your home online is to get potential buyers off the computer and into your home is using proven strategies of online marketing that are so often missing in real estate!

 

The first goal is to get buyers to contact your agent about your home; the second goal is to get buyers to contact your agent period so that the agent can schedule a showing of your home with the buyer.

 

Marketing Your Home to attract buyers

 

1. Make sure that good pictures of your home are taken so that when buyers see your home online, that the pictures show your home to its' fullest potential. Tips for this include to make sure that there is good outside lighting and that interior lights are turned on, that everything is picked up so that there is no clutter in the kitchen, bathrooms, living room, etc. and that multiple pictures are taken of every room so that the best of each can be selected for the marketing of your home.
   

   
    

2. Be sure that all the details of your home are given to your Realtor and that they use this in their marketing. More and more, buyers want information and data, and making sure your Realtor and buyers have all the information and data for your home is critical.
   

 

1. Bring both the great photos and information about your home alive by having a virtual tour created that lets buyers get a sense of your home in a way that is impossible except to actually be there themselves.
   

A serious flaw that most Realtors make when creating a virtual tour is including music with it!

 

Many people look at homes while at work or while doing other things, and having unwanted music blasting over their computer while they are just trying to look at the photos and information of your home is a great  way to lose them immediately the one time they will see your home's photos and information! Do not risk getting the dreaded back button clicked or the internet browser closed all together during the best opportunity you have for showing off your home to potential buyers.

 

Get on the Buyers Short List….or at least get them to contact your agent!

 

Buyers will look at hundreds of homes online and it is impossible for them to see every one of them, even ones that might be exactly what they are looking for. By the time even a short number of homes have been viewed, it is easy for buyers to miss the fact that your home is one they should schedule a viewing with to see!

 

This is where using the principals of online marketing can help sell your home.

 

By offering buyers more information they likely want, your agent can get buyers to contact them and then schedule a showing with the buyer for your home. If the buyer never contacts your agent in the first place, then it is impossible for your agent to even attempt to schedule a showing of your property with potentially the perfect buyers!

 

This is why offers of other important information should always be made in the Virtual Tour and the other online marketing tools your Realtor uses.

 

Imagine a typical case of buyers looking at homes online in Dubuque, IA.

 

Having looked at 25 other homes for sale in Sarasota, FL, a buyer sees your home online, but is tired from seeing so many homes and quickly glances at a few pictures and almost instinctively clicks the 'next' button. Does this sound familiar?!

 

A way to get the buyer to stop and make contact with your agent is to make a number of offers for other information that will then allow your agent to schedule a showing of your property with the buyer.

 

Offers such as a list of homes for sale that meet their profile in Sarasota, FL, a free list of foreclosed homes for sale (buyers in all price points love deals and do not realize the issues with buying foreclosures and most quickly give up the notion and buy listed homes for resale), a home market analysis (most people selling are doing so to buy another!) and so on.

 

By combining good photos of your home with all the information about it and creating a virtual tour and then putting that virtual tour all over the internet via the MLS and other online marketing channels available to Realtors combined with additional offers prompting buyers to contact your agent, the process of selling your home can be made easier and faster than otherwise possible.

 

And since so few real estate professionals market homes this way, you will be at an advantage over all the other sellers currently in the market trying to sell their homes!

Investing in Real Estate: Income, Potential Long-Term Gains

Conditions have rarely been better to add real estate to your investment portfolio. Most markets have plenty of affordable properties, interest rates remain historically low, and with homeownership rates declining, the market for rentals is increasingly strong.

Of course, conditions differ by market. Real estate investments may be more or less favorable depending on your locale. But if you're looking for a good return on investment with the potential to produce significant profit down the road, you owe it to yourself to look into real estate.

You also may realize tax advantages by investing in real estate; please check with your CPA or tax advisor for the details.

RE/MAX Broker/Owners in New York and British Columbia offer their perspective on investing in real estate:

Positive Cash Flow

"There's never been a better opportunity to have a positive cash flow with investment properties," says Nunzio Salafia of RE/MAX Plus in Rochester, N.Y.

"In my market, rental rates haven't declined at the same rate that prices and interest rates have. There are awesome deals out there. I own several properties myself, and the units are producing a strong income stream for me. If you can make money every day, it's far better than having money in a bank."

Investing in real estate isn't for neophytes, Salafia cautions. You should have real estate experience, a capable agent, and of course the financial wherewithal. Even branching out into an unfamiliar sector is problematic, he says.

"I'm not sure now is the time to take a chance with learning curves," he says. "For instance, if you have experience buying and selling single-family homes, investing in that sector would be smart. But you probably shouldn't be looking at commercial properties."

Diversify Your Portfolio

"Anybody who's investing in the stock market, or in bonds or other equities, should also be investing in real estate to give themselves a diverse portfolio," says Brian Naphtali, with RE/MAX Select Properties in Vancouver, British Columbia. "How does real estate compare to other investments? Favorably from an income point of view, and if you consider the capital gains real estate has seen in the last 20 years, then it's done very well.

"The thing about real estate is that even if values fluctuate, it still provides rental income. Real estate continues to be an excellent investment."

Naphtali advises anyone interested in real estate investing to start by speaking with a mortgage officer.

"This will help you quickly determine if you have the ability to more forward," he says. "Next, visit with a Realtor in your area who's knowledgeable in the investment market. He or she can help you identify the right property and purchase it at the right price."

Find a RE/MAX real estate investment specialist in your area (In the Residential Sub-Specialties field, check "Investments").

The advice offered here comes from sales associates affiliated with independently owned and operated RE/MAX real estate offices and may not be applicable to all areas. Contact an independent RE/MAX real estate agent near you for expertise tailored to your locale.

5 Steps for Getting Ready to Buy

Step: 1. Find a Local Lender You Can Talk To in Person
Local lenders understand your market and know of loan programs that might be beneficial to you.

Check with your lender on any local programs that might help with closing costs or in other ways. Even though the media have pronounced the 100-percent-financing option dead, this is not always the case. Check it out for yourself and then get preapproved for a loan so you know how much house you're able to buy.

Step 2. Be Specific in the Area You Want To Live
Educate yourself. Familiarize yourself with the neighborhoods you're interested in, the taxes and school districts. This not only helps you narrow down your search when you need to move fast, but also helps you figure out potential mortgage payments. Find a home in your desired neighborhoods.

Step 3. Find an Agent Specializing in the Area You Want to Live
This will save you time and effort. Once you've identified a real estate agent, trust him or her to do the job. Agents who are thriving in this challenging market have proven their worth. They have the resources and skills to help you find your next home.

Step 4. Don't Shy Away From Houses That Need Some Work
Just because a house needs some paint or cosmetic fixes doesn't mean it's not a good buy. Most real estate agents have an address book full of trusted businesses they work with to help you fix up your new home. There's a HUD program known as 203(k) that enables you to fold repair money into a primary mortgage; ask a RE/MAX agent in your market about the program.

Read more about the 203(k) program.

Step 5. Be Prepared To Act
Sometimes the first home you see is the right one for you. Don't discount it. Remember, good deals still go fast. Take advantage of the electronic tools your real estate agent has to offer. In many instances, real estate agents have access to better information than what you can find in a standard Internet search.

Tips on Selling Your Home in Dubuque Iowa

Hire a REALTOR®

Studies show that homesellers who use a REALTOR® to represent them generally get a better price than those who sell the home themselves. REALTORS® are up-to-date on critical processes and can help keep you out of trouble. They can also help you get your home sold at the best price in the right timeframe.

Equally as important, REALTORS® add objectivity to an inherently emotional transaction: the sale of your home.

To locate a RE/MAX Sales Associate, visit the Find An Agent area of remax.com.

Before Your Home Is Listed

It's important to have your home in good showing condition before buyers start going through it. Here are some steps to take:

• Touch up interior and exterior paint as needed.
• Install new carpeting and flooring if it appears worn or dated.
• Make sure the front is clean and spruced up – curb appeal will create a favorable first impression.
• Trim bushes and plants as needed, and make sure the lawn is kept mowed and trimmed. In autumn, rake the leaves; in winter, keep the snow shoveled.
• Keep the interior clean, decluttered and odor-free. Eliminate evidence of pets.
• Minimize personal items such as family photos. You want buyers to see themselves living in the home.
• Consider putting excess furniture and belongings in storage. Now's the time to clean out the garage and basement and sell, give away or throw away items you don't need anymore.
• Consider having a pre-listing inspection performed. Buyers will be hiring professional inspectors; here's your chance to address problems in advance.
• Consider engaging a professional stager to give your home the right emotional appeal.

During the Listing Period

§         When potential buyers visit your home, either be absent or make yourselves as inconspicuous as possible.

§         Have fresh flowers in the entryway. It makes for a friendly introduction into your home.

§         If offers are made that don't match your hoped-for price, don't reject them out of hand. Pay attention to your agent's advice.

§         Consider dropping the price if several months go by with few or no offers. But if you and your agent have priced your home properly from the start, this shouldn't be necessary.

§         Don't get discouraged. In buyer's markets, homes take longer to sell than during boom times. Your home will eventually sell; it's a matter of your RE/MAX agent finding the right buyer for you.

Help Your Agent

You have the best chance of selling your home if you work closely with your RE/MAX agent. Make sure all showings are coordinated through him or her. If you have a brochure box, be sure to keep it filled.

If prospective buyers want to discuss your property or negotiate price or other terms, defer to your RE/MAX agent. He or she is the expert and can best handle all these details without emotion.