Regina Jenkins’s Blog

Obtaining a mortgage loan has become more challanging than it has been in the past. Locally, here in the Catawba Valley of NC, home sales remain steady while uncertainty in our lending institutions grows.

I was reading in the news today that the US Senate passed a bill to bail out Fannie Mae and Freddie Mac, the two largest U.S. mortgage companies. It was reported that, with nationwide foreclosures at record highs, home sales and property values down, America is in its deepest housing slump since the Great Depression.

Fannie Mae and Freddie Mac recently lost billions of dollars on bad home loans and the stock market has chiseled their share prices due to uncertainty about whether they have enough capital to stay afloat. For the past year, they’re both down roughly 85%.

Reportedly, Connecticut’s Democratic Senator, Christopher Dodd, chairman of the Senate Banking Committee, and a principal author of the bill said, “This legislation won’t perform miracles. But as others have said, it’s a step - and I hope an important step - to putting our nation on the road to economic recovery.”

The bill has two principal objectives: 1) to offer affordable government-backed mortgages to homeowners who are at risk of foreclosure, and 2) to bolster Fannie Mae and Freddie Mac with a temporary rescue plan.

The 694 page bill establishes a $300 billion fund under the Federal Housing Administration (FHA) to help distressed homeowners get more affordable, government-backed mortgages and get out from under mortgages they cannot afford. The FHA will be allowed to insure up to $300 billion in new 30-year fixed-rate mortgages for at-risk borrowers in owner-occupied homes if their lenders agree to write down loan balances to 90% of the home’s current appraised value. The costs of this FHA program would be funded by fees from Fannie Mae and Freddie Mac, along with fees paid by both lender and borrower. The new bill won’t take effect until October 1st, 2008 and housing activists said it might not be in full operation until 2009.

Some of the provisions of this bill are as follows:

• The bill eliminates a program that has allowed sellers to provide down payment assistance to buyers.
• The bill includes a tax refund for first-time home buyers worth up to 10% of a home’s purchase price, but no more than $7,500. However, this tax refund serves more as an interest-free loan, since it would have to be paid back over 15 years in equal installments.
• The bill establishes a permanent fund to promote affordable housing, paid for by fees from Fannie Mae and Freddie Mac.
• The bill sends about $4 billion in grants to states to help them buy and rehabilitate foreclosed homes. Although President Bush is expected to sign the bill, this grant had been opposed by the White House, which said it would benefit lenders and not homeowners.
• The bill also offers tax breaks to stimulate home-buying.
• The bill sets up the 1st national licensing system for mortgage brokers and loan officers.
• The bill raises the limit on the size of mortgages that federal agencies can guarantee.
• The bill would also increase the down payment requirement for borrowers obtaining FHA loans from 3% to 3.5%.

Time will tell what happens next, folks. I’d be interested to know what YOU think about this new bill.

If you’re in the business of real estate, at some point in time, you’ve either had a buyer or a seller ask you to cut your commission.

The ultimate goal as a Realtor is to look out for our client’s best interests and to be honest, no matter what. If you’re on a listing presentation and you tell Mr. and Mrs. Seller that you’ll list their property at 6% and they say something like, “Agent X said they’d list it for 5%”.

If you decide to match that 5%, then you’ve just told Mr. and Mrs. Seller a LIE, right? And that’s no way to begin a relationship. Remember, you started with “I’ll list your home at 6% commission”. If you cannot protect the negotiation of your own commission, how can you expect to negotiate the best price for your client when it comes to an offer being presented?

Here’s a scenario to consider…you list Mr. and Mrs. Seller’s house at 5% and offer to co-broke at 2.5% with another Realtor representing the buyer. Your client’s home is located in a neighborhood where there are other, very similar homes for sale, on the active market. Which homes do you think are going to get the most showings from other Realtors?

Here in the Catawba Valley of NC, there are 855 active Realtors working with buyers and sellers everyday. There are over 2100 active listings on the market. Isn’t it better to have all 855 agents looking for potential buyers for your home as opposed to just the one Realtor you listed with? Commission does matter.

Here’s a brief description of how the whole commission thing works…You list your home with a Realtor offering to pay 6% commission. When the home sells, 3% goes to the buyer’s agent and their company and 3% goes to the listing agent (seller’s agent) and their company. From that 3%, the company gets their cut, which in alot of cases is 50%. Realistically, the agents walk away with 1.5% of the original 6% commission. Out of that 1.5% comes the costs of marketing the property, advertising, signs, open houses, gas, flyers, so on and so forth. Do you get the picture?

Would you take a 1% cut on your weekly paycheck? Would you ask the doctor preparing to do your surgery to give you a break on the price? Realtors are no different. We work approximately 14 hours per day, always on call, at the convenience of the buyers and sellers we represent. It’s our chosen profession. Some of us actually LOVE what we do and we do it well.

The cheapest is not always the best. If you want your property sold, of course, you hope it sells quickly. Listen to your Realtor and follow their advise. Realtors are bound by a strong code of ethics and you can usually tell the good from the bad within the first few moments of speaking to one. Sometimes the honest answers are not always the answers you want to hear. But if you want your home to sell, price it competitively, pay the commission, and declutter. For decluttering tips check out my website http://www.ReginaJenkins.com

~Regina Jenkins

Keeping the “REAL” in Real Estate

If you’ve been here, you know it! Where was this picture taken???

Just want to let you know that CELL phone numbers were released to telemarketers on October 11th, 2007. It’s now legal for telemarketers to call you on your cell and solicit your business. You will be charged minutes used for these calls.

You can add your cell number, or any phone number for that matter, to the National “Do Not Call Registry” list. Simply dial 888-382-1222 from the number that you want to add to this registry, follow the prompts, and you’re done! It only takes a minute of your time, it’s FREE, and your number will be registered and protected for 5 years. You must call from the number that you want blocked from telemarketers.

It may take 31 days for your number to be removed, if telemarketers already have it in their hands. But if you’re called by a telemarketer and your number is on the Do Not Call list, that caller can possibly be fined up to $11K! WOW!

Take action now! You can help others by passing this information onto family and friends.

Everywhere I look there are articles about the real estate market plummeting downward. That is a fact and it’s relatively true, BUT that’s not necessarily the case here in the Catawba Valley of North Carolina. What I see from the perspective of an experienced Realtor, is that buyers are buying, and sellers are selling. The AVERAGE time on the market may be 5-8 months but if the home is priced competitively from the onset, then the result is a satisfied buyer and a satisfied seller. That’s the ultimate goal anyway, isn’t it? Win-Win situation for everybody?

A new home to the market get’s the most interest in the first 30 days. Stay away from the mindset of “let’s start high…we can always reduce the price later, if it doesn’t sell”. If you choose to work with a Realtor, make sure they conduct a CMA (comparative market analysis) of your property in TODAY’S market. Homes that sold last year are not reflective of the current market. Also, a CMA is a great idea for the home that you’re buying. A good Realtor will do this to help advise you on price when writing an offer.

Whether you’re buying or selling what you need first and foremost is information and knowledge. If you’re thinking about going it alone, without the aid of a professional Realtor, then arm yourself with knowledge. Offers are great, but what you want is for the deal to actually close.

Buying and selling real estate is not EASY, but it can be EASIER when you have representation and/or knowledge of how the whole process is handled…pre-approval and the loan process, inspections, appraisals, radon, termites, home warranties, etc.

Regina Jenkins, Keller Williams Realty, Hickory, NC

Welcome to Regina Jenkins’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Hickory, North Carolina.