Why you need your own agent if you are building a new home

Have you ever stopped in at a builders model home in a new and upcoming subdivision and then been hounded for months by the on-site agent to come back and give it a second look or go see another subdivision being developed by the same builder? These aggressive sales tactics are an integral part of on-site training for most builders’ agents. The tactics obviously work or they would not continue to train them however most of these captive agents are bound by contract to only show homes in their builders developments so they are not likely to tell you about a great home less than .5 mile away built by a competitor that is 10k less and is offering 20k in incentives or the one year old home, same model one street over that the seller must sell because they are unexpectedly being transferred out of town.

These examples are just some of the reasons why it is in your best interest to have your own agent that works for you exclusively navigate the purchase of a new home or construction of a new home in a community. Other advantages include price negotiations, contract review, construction oversight and coordinating the inspections, closing, etc.

The best part is that it costs you nothing! The seller or builder in this case pays your agent to represent you. Would you sue someone and use the same attorney the other party is using? Of course not. Partly because the attorney would tell you it is a conflict of interest to have inside knowledge from both parties. This is no different. If you buy a home with the agent that is representing the seller (builder) you have the same conflict. This is what we can a dual agency and according to dual agency agreement the agent representing both parties is not able to provide advice about pricing or any inside knowledge they just prepare the contract and present it.

Is this the kind of representation you want on one of if not the largest transaction in your life? I doubt it so please do not allow an on-site agent to tell you that you can not have representation or they will get you a better deal if you use them exclusively. This is simply not true and most on-site agents will recommend you get your own agent to advise you throughout the process. Make sure any agent you choose has experience with new construction and is familiar with the local builders. Bottom line – have representation that has your best interest.

Is spring finally here?

It looked like spring was upon us and then snow flurries and freeze warnings reappear yesterday. Hopefully this weather is on its way out and pool season is here to stay. There are only a few weeks of school left and open house traffic tells me buyers are ready to make a move.
With interest rates still extremely low and some of the new no downpaymemt first home buyer programs more people are out shopping for their new home. I had over 20 buyers in my open house the past weekend which is one of the most successful opens I have ever held. We still have inventory but at this rate we will have less options for buyers so if you are looking to make a move this summer let’s start the process now. You can set up a free account on my website and get alerts when homes that meet your criteria list or have a price change. Visit http://www.sellingrocketcity.com to get started.

Sequestration and the Huntsville Real Estate Market

Well I even heard the national news this morning call out Huntsville AL as one of the worst hit cities in the sequestration
path of destruction.
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Almost everyone of my clients has called to ask how this affects the sale of their house and my response is “I don’t know. We have to wait and see”. If our favorite politians up in Washington can’t find some middle ground then Huntsville could be in trouble. I know my family can’t take a 20% pay cut with gas prices on the rise and health care cost said to increase shortly and I feel certain yours can’t either. For those looking to buy or sell a home I am hopeful that since rates are slowly climbing buyers will still sign on the dotted line and make that purchase even if that means they end of buying less of a home to do it. Homeownership is still one of if not the best investment you can make in your future and the dream of homeownership is still very much alive.
The best advise I can give is that and hope that some agreement is reached and the impact in minimal. On a good
note the 400k and up segment of our Huntsville market has been the most active over the past few months which is encouraging in an otherwise not encouraging climate.

If you don’t already own a home now is the time to realize that dream while the 30 year mortgage rate is still well under 4%.

Two great homes located in Laurel Bend neighborhood

If you haven’t driven down Merdianville Bottom Rd lately then you haven’t seen that the road was re-routed to accommodate the extension of the runway at the airport. Right at the end of the new road you will find Laurel Bend it is a quiet, well maintained neighborhood that is about 6 years young. On Laurel Bend Dr I am selling two amazing homes one that includes a storm shelter, master suite, granite, large fenced yard and separate study with french doors and the other with hardwood floors throughout, granite in kitchen and a master suite with sitting area.

119 Laurel Bend Dr – offered at $219,500

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119 Laurel Bend dr-8119 Laurel Bend dr-15

106 Laurel bend Dr – offered at $189,900

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Could interest rates be on the rise?

With FHA mortgage insurance premiums said to rise sometime in 2013 and the gradual increase we are seeing in home pricing can we afford for interest rates to go up as well? I don’t think we have much choice in the matter as long as the economy continues to improve we will see a gradual increase in rates. What does that mean in dollars and cents to the average home buyer? Well, let’s take a 220k home purchase and look at the monthly mortgage payment at 3.25% vs. a 5% increase in home prices and a 1% rate increase….

Now as you can see below that even a 1% increase can make a huge difference in the life of your mortgage as well as the monthly payment amount. Even if you look at scenario 1 where the home price decreases by 5% you are effected by the higher interest rate. All the experts are predicting that values will continue to rise so if you are thinking about buying now is the time while home affordability is still at a 40+ year low.

NOW SCENARIO 1 SCENARIO 2
Homes Decline 5% Homes Increase 5%
1% Rate Increase 1% Rate Increase
HOME PRICE $220,000.00 $209,000.00 $231,000.00
DOWN PAYMENT $12,000.00
LOAN AMOUNT $208,000.00 $197,000.00 $219,000.00
INTEREST RATE 3.250% 4.250% 4.250%
MONTHLY PAYMENT $905.23 $969.12 $1,077.35
Extra Monthly Cost $63.89 $172.12
Extra Cost – Loan Term $23,001.28 $61,962.92

Your new home!

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1718 Alm Dr NE Huntsville, AL 35811

If you are looking for a spacious home that offers a full mother-in-law suite complete with kitchen, laundry and separate entrance look no further. This home is located in NE Huntsville’s highly desirable neighborhood of Gladstone Place just minutes from I-565 and Research Park this home has it all. With 5 bedrooms (3 upstairs and 2 in the basement) and over 3,700 square feet there is plenty room to spread out. The basement could be used as a rental income or would be a fantastic home for extended family.

The roof is one year young and backyard offers a ton of privacy with deck. This home is offered at $299,000 and I would love to give you a tour. Just call me to set up a time @256-513-7299

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