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Are Sellers Crazy Not to Sell Now?

With real estate prices on the rise and multiple-offers the norm in many markets, are sellers crazy not to sell now?

Yes.

And No.

• If this is the right time to cash in your real estate investment, accurately crunching the numbers with your real estate professional will confirm that selling is the right thing.

• If this is not the right time to let go of your home to achieve another goal, it doesn’t mean that later may not be ideal. Real estate professionals are geared up to sell real estate now, so deciding on the actual timing of your sale is up to you. Deciding when to sell should be based on your personal criteria, not the professional’s. Compare what would make selling now right for you with reasons offered by real estate professionals as proof that this is the right time. Is there a fit or not?

Even when broad trends sweep through the real estate industry and across the country, it’s still all about what you—as an individual or as part of a couple or a family—can and want to do with your specific property or real estate dream.

The fact is you won’t know in advance whether either selling now or not selling now is positively the best move. “Experts” may say they know or sound like they know, but they understand less than you do about what’s right for you.

At some point after the sale, you may look back on what happened and decide that was either the right thing to do or the wrong thing. Hindsight is 20:20 in real estate, but by then it’s too late.

Not acting because of indecision or fear is not the answer either.

Over the years, I have met hundreds of people who each told their “if only I’d…” real estate story about what they could have bought or sold, but hesitated. None of them could forget about what they had lost or could have gained, real or imagined.

So how do you decide when to act and when to wait?

That’s the challenge—and that is also a very individual thing.

We’ve all got our own decision-making and investing style, whether we are conscious of these approaches or not. All we can do is keep improving both, so that we make confident, knowledgeable decisions about when to invest and when to take profit.

Three Key Contexts for Deciding If Now Is The Right Time to Sell:
#1. Ignore what’s hyped in the media and focus on facts about the real estate market in your neighborhood.

Go over your listing options with two or three real estate brokerages. Select local real estate professionals who have experience with multiple-offer markets if that’s what’s happening in your area.

Ask a lot of questions. Listen carefully to answers and ask “Why?” a lot. Take notes so you can compare their different analyses of your situation and options.

Don’t just go with the highest bidder. If they are wrong, you’re the one who will suffer. Merely listing under market value to attract multiple offers does not guarantee the seller nets more than they would by listing at market value. Solid marketing strategies and professional substance are what make the difference in real estate.

Nor are you out to make new friends. Stay skeptical. Your sale may just be another deal for the professionals involved, but your real estate represents great value in your life. Perhaps it’s the driver of your entire financial future.

#2. After the sale, what’s next?
Invest just as much time and effort in deciding what you’ll do with the cash after you sell. Will you rent? Where will you live next if you decide to buy another home? Are market conditions there going to limit your choices?

• Cashing Out: Low interest rates make putting cash in the bank a financially unattractive prospect, so what’s your plan to grow that capital or at least protect it? Do you have a financial advisor you can really trust or is this DIY investing? The home equity or value that took decades to accumulate can disappear very quickly if you are not experienced at managing lump sums or you trust the wrong financial advisor.

• Buying In: If you are going to switch from seller to buyer in a similar hot sellers market, you may discover that much or all of what you gain by selling can disappear into your next real estate purchase. If that proves true, but you have improved your location and/or made a great lifestyle choice, that financial equilibrium may be acceptable. However, if you end up with less than you had and you’re not happy about that, this may have been an expensive real estate lesson.

#3. If you’re wrong, what’s easier to live with?
It’s your choice. What would be easier to live with? Regret that you could have taken profit out now, but did not, or regret that you gave up your home, but did not improve your financial well-being?

That’s where many real estate owners—sellers—are today. They ask themselves, “Will I look back on this time and say I was crazy to sell or that I was crazy not to sell?”

The smart ones don’t just wonder or end up whining “if only.”

They commit to exploring their options and getting the facts to discover exactly where their best future might lie.

Saving for a Down Payment When You Live Paycheck-to-Paycheck

A down payment is an important component of taking a step toward homeownership. Saving for a down payment is also the biggest obstacle that you probably face when you want to buy a home.

A down payment is the cash you pay upfront when you’re going to make a large purchase. If you were going to buy a $350,000 home with a 10% down payment, you’d need to have $35,000 in cash.

Then, your mortgage lender provides the rest of the money to buy the home, and you pay your lender back over time. There are a few exceptions to lenders requiring a down payment, such as VA loans, but generally, it is required.

It’s recommended that you put at least 20% down if you’re going to buy a house, but that can be a lot of money.

How do you save if you’re living paycheck-to-paycheck? It is possible, but you also might have to make some changes.

Take the First Step
Even though you might feel overwhelmed about the prospect of saving money when you’re barely making ends meet, just take one first step toward your goal. That step may be small or almost symbolic, but it’s the best way to get started.

One good first step is to open a savings account where you’ll deposit money that’s specifically meant to go toward your down payment.

You might want a savings account that pays a bit of interest as well.

Create a Budget
You may be in a cycle of living paycheck-to-paycheck that you don’t necessarily have to be in.

If you can drill down into what’s going out versus what’s coming in, you might find that there are some ways you can save money even on your current income.

Really taking an honest look at your income versus your spending can be challenging and overwhelming because you may not realize how much you’re spending on things that you don’t need to be. Doing it is rewarding and valuable, though.

When you create a budget, include in it money that you’re going to set aside every week or month that will go toward your down payment.

Even small contributions do add up over time if you’re consistent and patient.

If you’re not sure where to start with your budget, a lot of financial professionals recommend following what’s called the 50/30/20 rule. This means that 50% of your income goes toward your essentials, such as your rent. Thirty percent goes toward lifestyle-related expenses, like eating at restaurants. The other 20% should either go toward savings or paying off debt.

Cut Out Subscriptions
One of the best things you can do for your finances is to regularly evaluate what subscription fees you’re paying and cut them out. It sounds simple, but the reality is if you’re like the average American, you might be spending $237 a month on subscriptions. That’s a lot of money that could go elsewhere.

Go Over Every Bill Carefully
When you’re working with a relatively small amount of income compared to your expenses, you should go over every single bill and transaction carefully.

There are a few reasons for this.

First, you want to make sure there aren’t mistakes you’re paying for. You might also find ways to pay less. For example, you could ask for a lower rate on your credit cards if you have a history of on-time payments, or you might be able to talk to your car insurance company about good driver discounts.

There are a lot of opportunities to save money on your bills, if you know where to look at you’re willing to ask.

Add Income
Finally, once your budget is in order, it’s a good idea to add extra income to your life. There are so many ways to do this. When you’re not working your full-time job, maybe you deliver groceries or work for a rideshare service.

It doesn’t matter what it is, but when you add another stream of income, it puts you that much closer to your down payment.

Everything you earn from your secondary income source should go directly into your down payment savings account, so you aren’t tempted to use it on anything else.

Position Realty
Office: 480-213-5251

Spring 2021 Real Estate Trends to Look For

Spring is always an interesting and exciting time in real estate, so what are analysts expecting we can see this year?

Increasing Mortgage Rates
It appears, depending on how the economic recovery comes along, that mortgage rates could continue to increase. Rates have been on the rise for weeks, while earlier in the year, they were holding under 3%. Analysts believe that it would be a good time for borrowers to try and lock in low rates now, with the anticipation they’ll tick upward through the year.

The 30-year fixed-rate mortgage is anticipated to average 3.1% through the spring months, while it was averaging 2.9% during the first quarter of the year, according to Fannie Mae.

It’s almost universally agreed that as more Americans are vaccinated, there will be more economic recovery, and therefore an upward movement in mortgage rates.

While there may be a slowdown compared to the hot market of the past year, there’s an expectation there won’t be a major crash. Price appreciation could slow down, and new homes might build up a bit more.

Inventories Could Increase
Homebuyers or would-be homebuyers often felt frustration over the past year. It was difficult if not impossible, to find available properties, and when something went on the market, it would be scooped up in days or sometimes just hours.

Now, however, homeowners may be more likely to list properties because more people are vaccinated, so there will be less of a fear of catching COVID-19 from people coming into their homes.

While there is the expectation that inventories will increase, there may still remain limited options, particularly in some markets.

Millennial Movement
Another trend that could continue influencing the real estate market this spring and beyond is millennials. Nearly five million millennials are set to turn 30 this year, and they’re now making up the biggest segment of home buyers. In 2018, millennial homeownership was at record lows, but there’s evidence that’s changing.

Around 86% of younger millennials and 52% of older ones are buying first homes, and some are buying luxury properties that are well beyond what you think of as a starter home.

Millennials will likely drive the market throughout 2021. There was a survey from the National Association of Home Builders in the fourth quarter of 2020 that found 27% of millennial respondents said they planned to buy a home in the next 12 months, up from 19% in a previous survey.

The Online Trends Are Growing
Online real estate services are continuing to grow in popularity, and regardless of the state of the pandemic, that’s unlikely to change.

There are so many ways technology was accelerated in real estate over the past year. From virtual showings to the use of a fully virtual agent to mobile or online closings, there are a lot of ways that technology is facilitating a simpler home selling or buying experience. It’s becoming increasingly possible to buy or sell a home without ever leaving your current home.

Position Realty
Office: 480-213-5251

6 Steps Towards Making Security Deposits Less of a Hassle

Doing any sort of business is about reducing risk and increasing your return. When it comes to managing properties, things can fall between the cracks and strategies go by the wayside. You can do simple things to streamline every process so you can enjoy more rewards with less of a hassle.

First, Food For Thought

New landlords assume falsely that security deposits are adequate protection against having to pay big bucks for tenant-caused damages. The truth is, it will barely cover minor damages. And, major damages to property can cost landlords tens of thousands of dollars.

Another factor to consider is that while the security deposit might cover normal wear and tear, they can appeal that decision if a tenant disagrees. Courts tend to take the side of the renter if there is even a little question about damage. 

Even though security deposits offer marginal protection, they are important. The trick is to know how to manage them in such a way that it does not make you want to pull your hair out or stop taking them altogether.

Tenant-Proofing Property

Landlords can take steps towards making properties tenant-proof. Reducing the chances of property damage works out better for both the renter and the landlord.

  • Vinyl Plank Flooring vs. Carpet — Carpet was once the most popular flooring. But, it stains and wears out rather quickly. Vinyl plank flooring lasts far longer and typically does not require replacing between tenants.
  • Glossy Paint — Paint is one of those things that have changed over the years, too. It is not unusual to have to repaint between renters. When using glossy paint, the risk is less because it is far easier to simply wipe down.
  • Door Stoppers — One of the cheapest remedies can save a landlord the most money. Door stoppers save walls by preventing holes in drywall.
  • Garbage Disposal — Garbage disposal-related problems cause some of the greatest headaches. Removing them will help reduce late-night phone calls and expensive repair bills.

Normal Wear and Tear

The entire point of a security deposit is to cover minor property damage. Wear and tear happen, and it comes with the territory. But, it is always the best policy to explain to a possible tenant what you consider wear and tear. 

Different states have different definitions, but remember that the law tends to lean towards the tenant. It is important to research so you can lay out in a lease agreement what you consider wear and tear versus excessive damage. It will make your position clear and help reduce confusion.

Move-In Inspection

Performing a detailed move-in inspection is likely already on your checklist. But, do you do the walk-through with your tenant? If you do it together, you both can make notes of the property’s condition. Recording it using audio, video, or both will help if a former renter challenges a security deposit return. 

Move-Out Inspection

A move-out inspection is just as crucial as the move-in inspection. It is best if you perform it with the tenant. Retrace your steps and compare notes with the former occupant. It makes it easier to cross-reference and make a decision about the security deposit. Transparency goes a long way to making the process less stressful.

Applicant Red Flags

Interviewing potential tenants does a number of things. You can see how they interact and what they say. A huge warning sign is if they start to complain about security deposits. It likely means one of two things — the candidate does not have the money for the deposit or fears they will lose the money. Both are glaring red flags that should not go ignored.

If you can inspect where the potential tenant lived prior, you can get a better idea of who you are dealing with. It goes a long way towards drawing up the lease and deciding if they are more a liability than a respectful renter.

Security Deposit Alternatives

Alternatives to security deposits exist to help fill vacancies faster. Our Lease Insurance Guarantee is one such option helping tenants put out less cash upfront while providing the landlord with more protection against evictions and property damage. Landlords of all sizes, even one property, can benefit from this type of service.

Landlords can ask their tenants to purchase LeaseGuarantee instead of handing over a security deposit. They offer rental income protection up to $10k to cover legal fees, rental losses, and damages. It covers way more than a security deposit and reduces your overall stress and concern.

Wrap-Up

Sometimes little things make all the difference. Security deposits are sometimes more of a hassle than not. However, they are important to hold tenants accountable and help cover any property damage. 

You want to maximize your return and minimize your risk. You can do this through straightforward renovations, a property management service, or both. The important part is streamlining the security deposit process to make it easier for you and more transparent for your tenant.  

Position Realty
Office: 480-213-5251

5 Ways for Landlords to Evaluate a Self-Employed Renter

Self-employed renters naturally strike fear in a landlord’s heart. Sure, we admire their moxie. But what about paying the rent? What about the ebbs and flows of business? How can you be sure a dip in sales won’t leave them weeks or months behind on paying up?

The same goes for freelancers, gig workers, and all those other professionals without standard, 9-to-5 jobs. They’re worrisome.

Fortunately, you don’t have to take a leap of faith when these tenants come calling to your rental property. There are many ways to both evaluate a self-employed renter’s income and ensure they’re a good fit for your rental all in one fell swoop. Here are five of them.

1. Ask questions

Get to know the prospective tenant. Ask them about the nature of their business, how long they’ve been operating, what types of clients they work with, and more.

You should also find out about the tenant’s credentials, past employment, and education history. How qualified are they to be doing what they’re doing? How likely is it they have the connections and skills to keep their business afloat?

You can also special order a business credit report from AAOA for $59.95 to find out if their business has good credit, high debt, lawsuits, violations, or high risk of default. Call (866) 579-2262 to request a comprehensive business credit report.

2. Research the business

You should also research the business. Do they have a website? Are they registered with your state? Are they licensed and insured? These are all indications a self-employed person is legitimate. (You might even be able to check out their pricing if you find their website!)

I had to rent a home a few years after I transitioned into freelancing, and my portfolio and published links (like those right here at Millionacres) were just a few of the items that helped prove my business’ legitimacy and success.

3. Request bank statements

If you want the most accurate depiction of the tenant’s income, ask for recent bank statements (business ones, if they have a business account). Pay careful attention to the deposits — how much they are, the consistency/cadence of them, etc. — and make sure the expenditures don’t outweigh the incoming cash.

Tax returns can work for verifying income, too, but these often don’t reflect the person’s full earnings — nor are they the most updated picture of their cash flow (they are annual, after all).

4. Pay special attention to their credit report

You’ll also want to pay special attention to the tenant’s credit. Look at the balances on any credit cards, loans, or other accounts they have out, as well as the monthly payment those come with.

You should also look carefully at payment history: Have they had any problems paying bills on time or in full? Are there any collection efforts or derogatory notes in their name? Have they had any bankruptcies or foreclosures? These can all give you insights into the tenant’s financial health — as well as any struggles they may be having.

5. Talk to past landlords

Finally, be sure to ask for the contact information for any past landlords the tenant has had. Call them up, ask about their payment history and, most importantly: Find out whether the landlord would be willing to rent to them again. Typically, if a landlord says “no” here, you’re best off moving to the next candidate. (Just make sure you’re abiding by fair housing laws and not discriminating!)
One last tip

If you’re not sure whether the tenant is a good fit, you can always consider requiring a cosigner, also known as a guarantor. This is someone who agrees to vouch for the tenant financially, as well as cover the rent if they’re unable to down the line. You can also have the tenant pay for a LeaseGuarantee policy which can cover future rental losses.

Position Realty
Office: 480-213-5251

Landlord’s Successfully Challenge The CDC’s Residential Eviction Ban

Earlier this year, the Eastern District of Texas invalidated — commerce clause grounds — the Centers for Disease Control and Prevention’s (CDC’s) ability to halt residential evictions during the COVID-19 pandemic. Subsequently, in Tiger Lily, LLC v. U.S. Dept. of Housing & Urban Development, the Sixth Circuit Court of Appeals granted another win to landlords in Tennessee, who argued the agency’s order exceeded its authority.

On March 29th, the court denied the government’s emergency motion to stay a lower court’s order barring enforcement of the CDC’s Halt Order, which extended the moratorium on residential evictions until December 31, 2020. The Sixth Circuit found the government could not show a likelihood of success on the merits of its appeal such that enforcement of the lower court’s order should be stayed.

The decision turns on questions of statutory authority and whether Congress granted the CDC the power to extend the moratorium on residential evictions past the date set out in the CARES Act. After the act’s congressionally authorized moratorium expired on July 25, 2020, the CDC unilaterally issued the Halt Order, extending the eviction ban until December 31, 2020. The CDC based its ability to do so based on Section 361 of the Public Health Service Act, which allows the secretary of Health and Human Services to issue regulations necessary to prevent the introduction, transmission or spread of communicable diseases and allows the secretary to provide for “inspection, fumigation, disinfection, sanitation, pest extermination, destruction of animals or articles found to be so infected or contaminated as to be sources of dangerous infection to human beings, and other measures, as in his judgment may be necessary.” The government argued that a nationwide moratorium on evictions is among the “other measures” for disease control covered by Section 361.

The Sixth Circuit disagreed, finding the Halt Order to be outside the scope of the statute. The court reasoned that the residual phrase “and other measures” was controlled by reference to the enumerated categories before it, and that “[p]lainly, government intrusion on property to sanitize and dispose of infected matter is different in nature from a moratorium on evictions.” According to the court, regulation of the landlord-tenant relationship is historically the province of the states, and, if Congress intended to alter the usual constitutional balance between the states and federal government, it would have done so in “unmistakably clear” language. The absence of such language in the Public Health Service Act was dispositive in the court’s opinion. Notably, the constitutionality of government intrusion onto typically state-dominated areas concerned the Eastern District of Texas case as well.

Given the success of the recent challenges to the CDC’s authority, more lawsuits are sure to come. And, while the public health effects of COVID-19 will diminish as more Americans are vaccinated, the economic effects on both landlords and tenants are sure to endure. It remains to be seen whether Congress will issue a new eviction ban, or whether President Biden will address the issue via executive order.

Position Realty
Office: 480-213-5251

You Don’t Need 20% Down and Seven Other Myths That Are Getting in the Way of Homeownership

Think you need to come up with 20% for a down payment in order to buy a house? It might surprise you to know that the median down payment for first-time buyers last year was just 7%, per the National Association of Realtors®. And there are plenty of loan programs out there that require far less. The 20% myth is just one of the things that’s keeping homeownership out of reach. We’re digging in to seven others.

You need to be well-established in your forever career
There has been a lot of discussion about how millennials are waiting longer and longer to purchase homes. “As a result of their consequent struggle to save, millennials are delaying major life milestones like getting married and buying a home,” said Business Insider.

Nonetheless, there are still millennials jumping into the market because, even know their name isn’t yet on the door, they’re excited to have a home in their name. Having a stable job, a comfortable salary, and the desire to own a home may just be enough.

Sure, you might not be ready to buy the house of your dreams or move to the neighborhood where you can imagine raising kids and, someday, retiring, but that doesn’t mean you’re completely out of the game. A smaller place closer to work or an attached property can, quite literally, get your foot in the homeownership door and allow you to start earning equity.

You have to be completely out of debt
Recent data shows that nearly half of all undergraduates are delaying homeownership because of student loans. “According to a recent Federal Reserve study, a $1,000 increase in student loan debt lowers the homeownership rate by about 1.5%, equivalent to an average delay of about 2.5 months in attaining homeownership,” said Clever Real Estate. “For the average college debt holder with $37,000 in debt, that ends up being about a 7.7-year delay in their path homeownership.”

Regardless of your debt, whether it’s from student loans or credit cards, it may still be possible to qualify for a mortgage and afford the payments, especially because rents are often comparable to mortgage payments. Mortgage underwriters don’t expect homebuyers to be debt-free; In fact, having no debt might actually work against you. They like to see responsible credit use and management.

You need to have a family
Yes, many would-be homebuyers hold off until parenthood is looming, because they’re not ready to move to the suburbs, get married, and have kids. But, a third of today’s new homeowners are unmarried, according to CITYLAB. “The shift is detailed in a new working paper from Harvard University’s Joint Center for Housing Studies, in which researchers crunched demographic data from HUD and from American Housing Surveys taken every other year between 1997 and 2017. Perhaps the most notable departure from 20 years ago is the marital status of new homeowners. According to the paper, the share of married buyers declined from 61 percent in 1997 to just over half by 2017. Meanwhile, 35 percent of first-time homebuyers in 2017 had never been married.”

You need a 30-year conventional loan
There are tons of different loans that can help you purchase your first home, make payments more affordable and/or give you the flexibility you need to make homebuying affordable. FHA loans are among the most well-known and most popular loans for first-time buyers because they require just 3.5% down and have low credit score requirements. Other loans worth looking into depending on your circumstances include: government VA loans for veterans; USDA loans for properties in rural areas; and loans like Fannie Mae’s HomeStyle Renovation loan, which gives buyers bundled funds to purchase and make improvements to their home.

You need to have great credit
If your score isn’t in the 800s, or even the 700s, it doesn’t mean you’re going to be living that apartment life forever. You might be surprised to see the credit score minimums for some loans. “While there is no official minimum credit score for a home loan approval, the minimum FICO credit score for conventional loan approval tends to be around 620,” said Credit.com.

It has to be your primary home
“Some rich urban millennials are choosing to rent in the city and buy a vacation home instead of a primary residence,” said Business Insider. Meanwhile, some other savvy investors are continuing to rent and plunking down money to purchase homes in tourist-friendly locations so they can take advantage of the AirBNB craze. “According to Priceonomics, hosts on Airbnb are earning more than anyone else in the gig economy and are raking in an average of $924 a month,” said Travel & Leisure. “Airbnb hosts make nearly three times as much as other workers…with some hosts making more than $10,000 per month.”

Position Realty
Office: 480-213-5251

Because It’s Ugly, and 3 Other Big Reasons Your Home Isn’t Selling

Ever wonder why some homes sell and others don’t? There is no magical fairy dust that can turn a loser of a house into a palace. And, in fact, if there were such a think as magical fairy dust, sprinkling it in your home would make a big mess, and that’s a big no-no if you want to sell.

Getting your home sold is not all that hard if you stick to the basics. But if you’ve got some of the problems below, you may just be sitting on that unsellable home for a while.

Problem No. 1: Because your home is ugly
Yes, your home is ugly. If your Realtor didn’t tell you that, let us go ahead and say what he should have. And just so we’re clear, “ugly” can also stand in for:

• Cluttered
• Outdated
• Dirty
• Messy
• Tacky

Very few people – investors looking for a deal aside – can walk into an untidy mess of a house and see the potential. If you’re not willing to clean it up, clean it out, and maybe make a few overdue updates, you may not get it sold. That goes double for over-personalization that is so in your face buyers can’t see past it.

“Everybody’s taste is different, so less is more when it comes to decor at sale time. Loud patterns and bold colors can be big distractions,” said MSN.

Solution:

You need to de-ugly-fy that house but quick. Pretty places around you are selling. If you have similar plans, similar features, similar lots and they’re selling while you’re sitting, it’s not hard to figure out why.

Take a good long look. If you don’t see anything wrong, bring in a few friends for their opinions. But only the ones who might actually tell you the truth.

Problem No. 2. Because your price is unrealistic
This is the No. 1 most common problem with homes that are not selling, says MSN. “If you’re guilty of having “a ‘what the heck are they thinking?’ price tag,” they say, you can expect to sit on the market for a while.

“Price is usually the overriding factor in any home that doesn’t sell. Whatever its problem, it can usually be rectified by adjusting the price.”

Adds U.S. News: “Without question, the No. 1 reason a home doesn’t sell is price. Sellers have an emotional attachment to their homes and tend not to be objective about the true value.”

Solution:

If it is an emotional attachment that’s getting in the way, take the emotion out of the equation and think of it simply as a business transaction. Many times the issue is a seller owes more than the home is worth or simply wants a higher price. But it’s the market that sets the price. And if it’s telling you your price is too high, it’s probably best to listen.

When all else fails, listen to your agent, who should have provided you with comparables that spell out recent sales and market trends. (Also See: It’s The Price That Sells a Home)

Problem No. 3: Because it’s a ‘project’ house
Maybe you’ve made the decision to sell and you just don’t want to put any money into a house that’s no longer going to be yours. But a house that looks like it’s going to take too much work – or too much money – to fix up is a turnoff.

“If a home looks as if it’s going to cost half as much to repair or renovate as it does to purchase, it’s going to take a long time to move,” said MSN. “Today’s buyer is a lot more reluctant to take on a ‘project,’ especially if there are houses around it that don’t need as much work. Ditto for homes that have strong pet or mold smells.”

The Solution:

“Fix it, or prepare to lop a large amount off the price,” said MSN.

Problem No. 4: Because you’re not cooperating
This is also the No. 1 reason houses end up overpriced. Uncooperative sellers also tend to ignore other advice from their agent, about keeping the home tidy (see No. 1), being available when needed, being open to price reductions, being able to make the house available for open houses, and agreeing to terms when there is a contract discussion.

“No offense, but maybe you aren’t showing your house off enough? If you aren’t using a real estate agent and work away from your home, your time might be limited, of course. But you should try to make your house as accessible and available as possible for a Realtor and a potential homebuyer to easily drop by and take a tour (which means having the place clean, too),” said U.S. News. “Having your home be shown only by appointment or only at designated times will severely cut down on the number of showings you get, and if the house isn’t getting shown, it isn’t going to get sold.”

The Solution:

Get in or get out. Or get in to get out. You have to commit yourself to a process that, quite frankly, can be inconvenient and a hassle in order to get your home sold, especially in more competitive markets. Being agreeable and available, however painful, for this finite amount of time, will pay off in the end.

Position Realty
Office: 480-213-5251

How Lenders Set Mortgage Rates

Ever wonder how mortgage lenders set interest rates for their loan programs each and every business day? Wonder why some lenders quote the exact same rate for the exact same program? Maybe why one lender is lower than others? Here’s some insight on how mortgage lenders set their rates each day.

First, note that mortgage lenders set their rates on the same basic set of indices. There are some exceptions, primarily mortgage lenders who issue their own loan programs that intend to keep the loans internally and collect interest on the loan rather than selling the note.

Adjustable rate mortgages and fixed rate mortgages are priced a bit differently. An adjustable rate mortgage, or ARM, is tied to a specific, universally tradeable index, such as the 1-Year Constant Maturity Treasury. Each morning, the “secondary” departments of these mortgage companies look up the current price of an ARM index and then add a margin to it. If, for example, the index came in at 1.75% and the margin was set at 2.00%, the new rate for that specific program would come in at 3.75% and stay there until the next adjustment.

Fixed rate mortgages, at least for most of them, are set in another manner but also use a specific index. Currently, the index used for most fixed rate conforming loans is the Universal Mortgage Backed Security, or UMBS. This is the index lenders use when setting fixed mortgage rates scheduled to be sold to either Fannie Mae or Freddie Mac.

Okay, so if most lenders use the same index when setting fixed rates, why are they sometimes different? That can depend upon different factors. Lenders compete for mortgage business in different ways, but they all want to compete based upon a competitive rate. The rate doesn’t always have to be the lowest rate but should be in the ballpark.

Maybe a customer has a long-lasting banking relationship with a bank and also has quite of bit of cash sitting in different checking and savings accounts. That customer might be offered an extremely competitive rate based upon loyalty of the customer as well as the amount of assets the bank holds. The rate in this instance doesn’t have to be the lowest because the borrower is focused more on trust and relationships than the rock-bottom rate.

On the flip side, for mortgage companies that don’t have such an established relationship, rates take on a more serious note. A mortgage company with less media exposure compared to established banks might need to entice a potential borrower with some very competitive mortgage rates. But again, they set their prices on the same set of indices.

Sometimes a mortgage lender has taken an aggressive approach and priced their loans very low and suddenly their pipeline is full. They’re overbooked and overworked. Their marketing campaign is working but now their loan processing times have slowed to a crawl. It’s not unheard of for a mortgage company to raise rates temporarily to turn off the spigot. It happens. Lenders certainly want to make a profit, otherwise the mortgage market would dry up, but they want to be smart about it.

Position Realty
Office: 480-213-5251

How to Screen a Tenant Who Does Not Have a Social Security Number

Landlords to Take a Different Tact with Tenant Screening Without a Social Security Number

Some states, such as California, prohibit a landlord from inquiring about a tenant’s or prospective tenant’s immigration status or citizenship and requiring proof of legal residency or citizenship as a prerequisite to renting.

A SOCIAL SECURITY NUMBER IS NOT REQUIRED TO RUN A TENANT SCREENING REPORT. With Position Realty we don’t only pull a credit report but we also run a tenant screening report. Call us Today!

The law does not prohibit a landlord from requiring documentation necessary to verify a prospective tenant’s identity or financial qualifications to rent, it may be necessary for a landlord to find other ways to screen a prospect who has no credit.You may want to decide to screen using personal references, and independent income verification.

According to a spokesperson for a national screening company, a social security number is not mandatory for a credit check. You can order a credit report with a name and address. However, when the prospect does not have a social security number, you are highly likely to get a “no hit” or “no report available” response. Before a person is noted by the credit bureaus, a file has to be created. The landlord’s act of requesting a report may be the very thing that initiates this person’s credit history. Still, ordering a tenant credit check may be worth a try to see what information might have been reported earlier.

Other Reports Available

  • A tenant background checks does not require a social security number. A full name and date of birth are crucial for determining if you have the right information.
  • Eviction reports are available without a social security number.

Unfortunately, you cannot receive a PATH report, the address history, which could create a hardship when cross-checking criminal and eviction reports. There is no doubt that a social security number is an important identifier when weeding out duplicate names.

Position Realty
Office: 480-213-5251

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