So You Want to Buy a House?

Medical Bills can effect your FICO score

2012-03-06T16:48:00.003-06:00

Can an unpaid medical bill cost you more than the bill itself - even the purchase of a new home? You bet it can.

In a recent article in USA Today they share the story of a couple who had a $200 medical bill sent to collections. Though they ultimately paid the bill off, the result on their credit report was a lowering of their score by 100 points! This meant they needed to pay additional discount points to secure their home loan costing them $2,500.

(to read the full article click here http://yourlife.usatoday.com/health/story/2012-03-05/Medical-bills-can-wreck-credit-even-when-paid-off/53367464/1) It is worth the read.

This article was of particular interest to me since I had recently attended a workshop specifically on credit scores. In it they shared real life stories of folks who had, for example, a $75 medical billing error. They refused to pay and it was ultimately sent to collections which they ignored since they did not owe it. This decision ended up costing them thousands because of the effect on their FICO credit score - lower score often equals loan denial or higher interest charged. They ultimately had the error corrected, but it took longer to remove the collection from their credit report.

So what is a consumer to do? Protect your credit score at all cost. Yes, even if it means paying something you don't feel you owe especially when it comes to a medical bill. In the complexities of medical billing and insurance there are bound to be errors. Keep meticulous track of all your bills, statements and EOBs (explanation of benefits). Remember that doctor's and hospitals really aren't about taking money they aren't owed (though it may feel that way). I know, I worked as a medical biller for awhile. If you find an error, bring it up immediately DO NOT ignore it. Send copies of documents proving your point. If it does not resolve quickly and they are threatening with collections (something that is often an automated letter) call and speak to a real person to make a note in your file. If that doesn't work - pay it - then continue your fight. Does that seem unfair? Yes, but you have to ask if a $75 bill is worth not being able to buy your new home. For most folks it isn't.

For more insights on how to help your FICO score, please contact me. karen@karensherrill-homes.com

Good News in Housing and Jobs

2012-01-18T15:36:00.001-06:00

In HAR's recent news release it indicates that housing is beginning a climb up - more sales, slight increase in prices and less inventory. The article also states that "According to the Greater Houston Partnership, as of November 2011, the Houston metropolitan area gained 170,700 net new jobs, recovering 112 percent of the 152,800 jobs lost during the recession".

So let's see, the housing market is improving, jobs are growing and interest rates are at an all time low (by low I mean you can get under 4%) So what was the reason you aren't buying a home?

Read the entire article http://www.har.com/newsroom/

2012-01-16T12:24:00.000-06:00

Yes another blog about how low interest rates are. How many of these can I write? Just when we think "there is no way interest rates can go any lower" there is an article to disprove this.
http://rismedia.com/2012-01-15/mortgage-rates-continue-trend-of-record-breaking-lows/

However, all good things must come to an end. With the housing market beginning to warm up - prices are sure to follow. This makes it the best time to buy or at the very least get the process started.

Get your finances in order and keep all those documents you will be using for your taxes
Talk to a lender to see how your credit looks and what you might qualify for
See if you qualify for any special programs based on your job (i.e. such as police officers)
Talk to a Realtor about your desires and needs for a home to help narrow your target area

Give me a call if you need the names of lenders, or what further assistance to help you buy

New Year - New Home?

2012-01-09T09:48:00.001-06:00

The headlines of the Chronicle read" Demand to build for new homes". http://www.chron.com/business/article/Builders-to-get-busier-this-year-2442255.php With a headline like that, it can only mean good news for the housing market.

With interest rates remaining low, and builders want to build, it is a great time to get a new home. It is always important to also realize that when you go directly to a builder to have new home built without a Realtor, no one is representing your interests or negotiating on your behalf. While it may not bring the cost of the home down, a Realtor may be able to negotiate some extra items - like blinds or garage door openers etc. Having a Realtor help you find a new home or housing development also doesn't cost you anything! Our fees are paid by the builder; plus we can show you other homes in other developments to make sure you are finding the best home for your family.

New Year - new home - why not!

Good News in the Housing Market

2011-12-21T12:55:00.001-06:00

"Housing likely to end 2011 on a high note"

There it was, an article in today's Chronicle....good news about the housing market. Yes it must be the Christmas season as the words - article - good news - and housing market haven't been strung together in quite some time.

You can read for yourself that there were improvements in median price and number of sales when you compare Novembers numbers to last year. I didn't need to really read the article, you can feel it. There is a growing optimism.

http://www.chron.com/business/article/2011-s-housing-market-likely-to-end-on-up-note-2416165.php

What does this mean for you? Well if you are a homeowner, or a seller it means the corner is beginning to be turned and housing prices will begin to rebound, and homes will sell quicker. What does this mean for buyers? It may mean the end of the days of luxuary where you could leisurely shop for a home and use the housing figures as a way to get a "bargain" or be extremely picky about what you want for the money. Prices are still low (but inching up) and rates are crazy low. 2012 may be the year you want to buy. Even if you aren't planning to buy or sell until Spring, give me a call to maximize your efforts as you wait.

What you won't hear from the media

2011-12-12T10:54:00.002-06:00

The other day I was commenting to my husband how the "average" 30 year mortgage rate was around 3.8% His comment "why don't you hear about that on the news?" Good point. I can assure that as rates inch up the low 4's it will be all over the media how rates are climbing. The reality check though is to realize that even if rates climb to 5 or 6 - they are still good rates. There was a time in the not so distant past that interest rates were in the double digits - and people still bought homes. I think with rates at their current low rate, many who are "waiting" for the housing market to get better will kick themselves that they did not take advantage of rates when they are their current historic lows. Why? Because low rates mean lower mortgage payments meaning you can either afford a home that is worth more OR you can shell out less money allowing you to save more.

As this article states, 2012 looks to be a bright year when it comes to housing.
http://www.housingwire.com/2011/12/05/barclays-analyst-sees-housing-rebound-coming-in-2012?utm_source=twitterfeed&utm_medium=twitter&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29

Gloom, Doom and Reality

2011-11-30T09:36:00.001-06:00

Last night while watching the local news they gave another gloom and doom report on real estate. The main problem I had with it is that the statistics were national and they were showing a home obviously in Arizona. Houston's market and Arizona's do not compare at all. Always remember that Real Estate is local.

In recent months the Houston market has actually shown signs of improvement. There are buyers, but they are taking there time since there is so much inventory. Other buyers, like my recent out-of-state clients, searched; found a home they liked; and moved in all within 6 weeks of our first contact.

If you want local statistics ask a Realtor - like me!

Temperatures aren't the only thing falling

2011-09-30T16:35:00.002-05:00

SEPTEMBER - 2011 Housing Trends eNewsletter is Now Available

If you blink you’ll almost miss it….a slight cooling in the air, even an amazing thunder storm that had the Sherrill household opening the door and standing outside (under an overhang) to enjoy the spectacle of rain! Yes, fall has arrived. The temperature isn’t the only thing falling – interest rates continue to drop as evidenced by this article http://www.msnbc.msn.com/id/38770102/ns/business-real_estate/

“The average on a 30-year fixed mortgage fell to 4.01 percent this week, Freddie Mac said Thursday. That's the lowest rate since the mortgage buyer began keeping records in 1971. The last time long-term rates were lower was in 1951, when most long-term home loans lasted just 20 or 25 years.

The average on a 15-year fixed mortgage, a popular refinancing option, ticked down to 3.28 percent. Economists say that's the lowest rate ever for the loan. “

What does this mean to you. Well if you are currently own a home, now might be a great time to refinance maybe to a 15 year loan. If you are looking for a home – why wait? With rates this low, you can afford more home for less. Homes are beginning to sell, but there is a lot of inventory and many homes to choose from….once again a great time to buy.

Of course if you are trying to sell your home, you may be asking “where are the buyers?”. Good question. They are taking their time, looking for a “deal” that requires little to no work AND they are shopping neighborhood to neighborhood. There is still a bit of a gloomy mood in Clear Lake homebuyers. Today was the last day of work for many NASA contractors, which of course are many of our friends and family which adds to the sense of discouragement. Then all you have to do is turn on the TV and you will be blasted with how bad the Real Estate market is from “experts”. But as I was driving around today I was reminded of a few things – just a stone’s throw down the road are growing industries that are bringing in jobs. Houston is not Detroit, we are not a one industry town. Also, remember when the “experts” predicted gas prices to hit $5 or more? Funny, I just filled my tank and it was $3.13 (less with my Kroger points). I guess maybe sometimes “experts” can be wrong. Maybe things aren’t as bad as we are told.

So with that – enjoy the cooling weather. Go outside and enjoy it. If you or someone you know wants to buy a home, give me a call I’d love to show you around!

Schools can make a difference

2011-08-11T20:35:00.000-05:00

I might be a bit prejudiced since 3 of my kids graduated from Clear Lake High School. We knew it was a great school. But now Newsweek in their annual "Best High Schools in America" ranked Clear Lake no. 267 http://www.thedailybeast.com/newsweek/features/2011/americas-best-high-schools.html
So let's say all your kids are grown and gone, or you have no children - why should you care? It is a well known Real Estate fact that school districts and schools affect housing prices and desirability of the neighborhood. Parents want their kids to attend good schools. Schools that are nationally recognized are even more desireable.

The advantage of Clear Lake High School is that whatever your budget you can find a home that feeds to Clear Lake - from starter homes to mansions all students can attend this school. Of course I have to say you really can't go wrong with any Clear Creek school - but Clear Lake will have just a little bit more bragging rights with this article.

If you are looking for a home and desire a specific school district - just ask a Realtor

ACT NOW

2011-07-29T01:25:00.002-05:00

814 Buoy - a beautiful 3 bedroom 2 bath updated Clear Lake home has drastically reduced it's list price from an original $139,000 to $131,500!!! Why act now? This is a beautiful home at an amazing price. With murmurs of mortgage rates possibly rising, now may be the best time to buy. Call me today for a private showing. Visit www.814buoy.com for photos, information and a virtual tour.

Amazing Value in Clear Lake come to Open House to see!

2011-07-14T16:31:00.000-05:00

Recent price reduction brings this beautiful home to the price of $136,900. See for yourself why this is an amazing value at our Open House - Sunday, July 17th from 2 p.m. to 4 p.m.

814 Buoy, Houston 77062

It is move in ready - for your family or a hassle free investment property. All improvements done for you already

Want more details? Visit www.814buoy.com

Move right into this Clear Lake beauty!

2011-06-27T09:12:00.002-05:00

Nestled in the heart of Clear Lake, this home is convenient to everything. Minutes from the freeway, mall or neighborhood conveniences it is still tucked into a nice quiet neighborhood. The 3 bedroom 2 bath home also feeds to CCISD schools - walking distance to Whitcomb Elementary and zoned for desirable Clear Lake High School.

But wait there's more! This home is move-in ready, gorgeous on the inside with updated kitchen and bath- including stainless appliances, quartz and granit countertops. All your big expenses of roof, A/C and water heater have been recently replaced. There is a pride of ownership evident in this home of only three owners! The back yard features a large patio and space for a pool, playground or just enjoy the space of this tree-lined green space.

Why rent when you could buy?

Want to see more? Visit www.814Buoy.com for more details and LOTS of photos!

How's the Houston Market Doing? Read the latest....

2011-06-21T12:35:00.000-05:00

The latest news release is out with figures for the Houston market. These are important notices to read since Real Estate is "local" and we often glean our information from a national resource....

"Getting an accurate read on the Houston real estate market remains challenging because the 2010 tax credit prompted a surge in home sales during the first half of last year that otherwise would have occurred throughout the summer," said Carlos P. Bujosa, HAR chairman and VP at Transwestern.

The average price of a single-family home jumped 6.5 percent from May 2010 to $220,210. The May single-family home median price—the figure at which half of the homes sold for more and half sold for less—climbed 3.2 percent year-over-year to $157,900. Both the average and median price reached the highest levels for a May in Houston as well as for 2011.

Volume continued to soar among rental properties, confirming reports that while many new residents may be moving to the greater Houston area, they are as yet unable or unwilling to buy a home possibly due to more stringent mortgage lending requirements, an inability to sell the homes they've left behind, or a combination of these or other factors."

Read complete press release at http://www.har.com/mls/dispPressRelease.cfm?MONTH=06&YEAR=11

Want to see how your neighborhood is fairing? Email me at karen@karensherrill-homes or call me at 713.817.5710, I'd love to give you a detailed report.

Rent Vs. Buy - Don't just take my word for it....

2011-06-16T08:00:00.001-05:00

I wrote the other day about the benefits of owning a home versus renting. I am not alone in the thought that now is the perfect time to buy. Here is an article form National Association of Realtors - and they have cool charts!

June 8, 2011 by Lawrence Yun, Chief Economist & Senior Vice President, Research
The cliché says that there has never been a better time to buy. The hard data in the housing affordability index confirms that. The affordability index, which takes into account median income, median home price, and mortgage rates, has been bouncing around in the 180 to 200 range since the beginning of this year – the highest reading since the index was first used in 1971.

Yet, you still encounter consumers hesitant about taking advantage of possibly the greatest home buying opportunity of a lifetime. Should they buy now or not?
Let’s consider the situation in which a family earns $60,000, which is about the national average. They are renting at $1000 per month. They are considering buying a home that requires them to take out a mortgage of $170,000, which would be fairly close to the current national median home price.
At the current rate of 4.8 percent on a 30-year fixed rate mortgage, the monthly mortgage payment would be …(drum roll) … $891 per month. That’s not all. A measurable portion of the monthly mortgage payment is actually goes towards principal reduction on the loan balance. For example, in the first year about $215 of the mortgage is for the principal payment, which in essence is a forced-disciplined savings imposed on the home buyer. The remainder $676 ($891 minus $215) is the pure interest payment to the bank. So the $676 monthly mortgage interest payment looks a lot sweeter than the $1000 in rent that was being shoveled out the door. With each passing year, the principal portion gets larger while the interest portion declines because of a steadily falling loan balance.
That’s still not all. A fixed rate mortgage means the monthly payment is fixed and will not rise for the term of the mortgage. In this example, a person theoretically could be paying $891 in mortgage in the year 2041. What would be the cost of living at that time? Food price? Gasoline price? Also rent?
If rent was to rise by 3 percent a year, starting with the base $1000, the monthly rent will be $1344 in 10 years, $1806 in 20 years, and $2427 in 30 years. If rent was to rise by 5 percent, then it goes to $1628 in 10 years, $2526 in 20 years, and $4321 in 30 years. If monetary policy were to get of control, with too much money printing and inflation rose by 10 percent per year, then the rent becomes $2593 in 10 years, $6727 in 20 years, and $17,444 per month in 30 years. Many economists are expecting 3% to 5% annual rent growth over the next two years based on recent falling trends in apartment vacancy rates.

When rents rise, there is also a tendency for home prices to rise. Fundamentally, rent and home price would rise roughly in lock step – provided that home values do not contain bubbles and are back in line with their historical relationship to rents. The chart below shows the rent (based on rental rent component of the consumer price index) and NAR median home price trend with the index set at 100 in 1980. Well, today, home price and rent ratio are pretty much back to historically justifiable levels. So it is reasonable to presume that any rent increase will also at some point lead to equal gains in home values.

If home values were to rise 5 percent (under rent growth assumption of the same) then the home value would rise to $178,500, translating into a gain of $8,500 in housing equity in the first year. Subsequent cumulative gains over several years would be sizable, if the yearly 5 percent increases could be sustained. Nationally the annual average home price increases have been at around 4 to 6 percent each year. Even if by some strange event home value was not to increase one cent over the next 30 years, the home would be owned free-and-clear by the 30^th year. (Or much sooner if the family makes additional principal payments)
One always has to mindful that all real estate is local. One cannot simply pick up a home from Detroit and plop it down in San Francisco to get a fast price appreciation. Therefore local conditions, figures, rent growth projections, and analysis will significantly vary.
Moreover, homeownership cost entails not only mortgage, but the additional costs in terms of property taxes, insurance, and money needed for maintenance and remodeling, though there are cost savings such as the mortgage interest deduction and property tax deduction for tax purposes that were not considered.
What is most important from my perspective is whether the family likes the home they are about to purchase and whether the family is willing to stay well within their budget. If these two criteria are met, then now may indeed be a good time to consider buying.

Disclaimer: The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®

Record low rates gone soon?

2011-05-31T19:08:00.002-05:00

The front page of the Chronicle today reads "Mortgage experts: Record low rates could soon be gone" I so wanted to place a link to the article right here - but obviously what is in the paper is not necessary online. So I shall paraphrase....

"Mortgage rates are at historic lows, but that might not be the case much longer. Those holding out ofr a bargain or wating to jump into the housing arket for other reasons could be in for a rude awakening.....Mortgage rates aren't expected to spike tomorrow. But as the ecomony improves and if inflation begins to affect more segments of the economy, rates should start to tick up. How much is anyone's guess."

What difference does an interest rate to you as a buyer? As the article stated lets say you want a monthly mortgage payment of $1043. If interest rates are at 4.75% this means you would have a loan amount of $200,000. If interest rates are 7% the loan amount would be decreased to $157,000. So in essence it will decrease your purchasing power and buyers may need to lower their price point and expectations as the rates rise.

So what is the take away? If you are truly just waiting for things to drop lower, now may be the time to pick up the phone and call me to show you a home!713.817.5710

Is HGTV to blame?

2011-05-02T11:44:00.002-05:00

In a recent article the headline reads "Home Buyers Shun 'Fixer-Uppers'". You can click and read the article, but it goes on to say how many home buyers want move-in ready as a top priority. This has been my experience in taking home buyers to listings. They throw out words and phrases like "dated" "needing upgrades" "lacking newer finishes". Which leads me to the question, is HGTV to blame?

Before we moved to our current home we had basic cable. Just the local channels and PBS. When we went on our home search we had the eyes of a then average homebuyer - looking for something that would meet the needs of our growing family, had a nice layout, "potential", nice neighborhood and good schools. The fact that it had original flooring, faucets and appliances were factors, but we said "we can replace them over time". Our home still does not have granite countertops, wood floors or custom tiles. I still hate my white kitchen floor and bright blue tile backsplash insets, and yet it meets the needs of our family and we still love it!

Enter the new age of HGTV savvy buyers. They wrinkle their nose at laminate flooring, beautiful counters that are in great shape but aren't "granite". They want their new home to look new even if it is 10, 20, 30 or more years old. Even worse they take the factors of their personal preference of upgrades, and subjective pricing and decide that is how much less they need to offer from the asking price. Afterall, most homes on House Hunters look professionally staged when people move in and they are all smiles. That is the dream of home buyers.

The home sellers in the age of HGTV expect that they can squeeze out most home improvements into $$$$. I cringe each time I see a show that says "well with these improvements your home is now valued at $$$$" The homeowners hug and maybe cry a little. The problem is that even if it is "valued" at $$$$ a home buyer may only offer $$. Value does not equate sales and cash in your pocket necessarily. If you make improvements in your home and update will it sell quickly?, probably, will you recoup all your investment? - probably not. In this day and age home buyers want and expect move-in ready and updated. If you offer what they expect, they are not going to assign greater value to it - they just won't subtract as much from your list price.

In this day and age it is not simply saying I bought my house for _________and we put in _______ and we have closing costs to cover and we want a profit so our asking price should be __________. While that sounds nice, it is not reality (even if your Uncle Fred tells you that is the way to do it). This is why it is so important to sit down with a good Realtor who will tell you the truth and not just want you want to hear, and help you set a realistic price on your home based on what sells in your neighborhood.

Is HGTV to blame? Maybe, but then again whoever said you should believe everything you see on TV. If you need a Realtor, please give me a call 713.817.5710

What Realtors Do

2011-04-28T14:48:00.002-05:00

Sometimes I feel like I am in the most misunderstood industry. I have to admit that before I became a Realtor, I probably didn't understand what a Realtor really "did" to earn their commission either. I think many see the images on TV (HGTV to be specific) and think "hey, that's a pretty easy gig". An article written by fellow Realtor Kris Berg http://lowes.inman.com/newsletter/2011/04/28/news/142064 magnified a point I have known for a long time. A good Realtor works really hard!

Often the public thinks a Realtor simply puts a sign in the yard, a home on the internet and waits for buyers to spot it, fall in love and make an offer. In fact, some think it is so easy, they decide to do it themselves OR pay a firm to list it on the MLS. The folly in this is
A. if you just stick a sign in the yard, the person across town or across the country will not know your home is for sale even if it is perfect for them and
B. you could be like a recent For Sale By Owner I came across. The sign stated it was on the MLS, but I knew all the homes in that neighborhood and had never seen it. After specifically putting in the address there it was - with the wrong information for its location, city and any other factors someone desiring that neighborhood might use to look. Once again, you get what you pay for.

For buyers, I remember seeing a House Hunters on HGTV where the young couple chirpily states "we've seen over 100 homes, we're not going to settle no matter how long it takes". In the background their diligent Realtor, in amazingly good spirits, who will not be reimbursed for his time, gas and expenses until they close on their dream home. I know I have been showing homes to a family for a year, and I don't want them to settler either. I want them to find the house that says "this is home!"

I'm not sure the point I am trying to make except to say I work hard in Real Estate (as do most of my fellow Realtors). I read, and read, and read articles and legislation that affects Real Estate. I study market trends in neighborhoods, I continue my education to be the best and informed I can be. I try to stay current on technology and marketing trends. I work tirelessly for my buyers and sellers - usually on weekends and evenings to accommodate their schedules. I fill the gap when they can't be present. I communicate, communicate, communicate so nothing is missed and everyone is informed.

Yes I work hard. Why? As a recent string of conversations of Realtors on Linkedin state - it's because we love serving people and find great satisfaction in helping our clients achieve their goals whether it's a home sale, investment property, or the perfect home. Seeing the smile on someone's face when they realize "yes, this is it!" is amazingly gratifying and it's what I do.

The Reviews are In!

2011-04-19T12:15:00.000-05:00

If you missed our workshop, you missed out on a variety of useful information to help you in your homebuying journey. Here is what one attendee wrote to my broker:

"I would like you to know, I received an e-mail today from Karen Sherrill regarding the homebuyers workshop I attended on Saturday. I found the workshop to be very well put together, informative, and full of useful tips. I also, would like to say how refreshing it was to receive a follow up e-mail thanking me for attending and letting me know to contact her if there is anything else she could do to help. I hope your company will do more of these workshops as I would enjoy to learn all I can on buying a home before I make such a large investment."

All those who attended rated it a "10" and said it was well worth their time. Each walked away with information about loan programs as well as tips to improve your credit score. If you couldn't make the workshop don't be discouraged. I still have all the information shared available and will be sharing it periodically on this blog.

If you would like to receive the Homebuyers Toolkit Brochure we handed out, just email me with your name and address and i will put one in the mail to you FREE! karen@karensherrill-homes.com

Be watching for more informative meetings in the future!

I'm giving up part of my Saturday - is it worth it?

2011-04-14T11:11:00.000-05:00

YES! I am excited for the information our vendors will share - loan programs to help make buying a home more affordable than you think, down payment assistance programs, programs for specific industries. Explanation of FICO scores and what you can do to make yours stronger. Strategies to help you develop a plan to reach your dream of home ownership.

Our vendors are also available to answer your questions and provide additional information and handouts. We'll wrap up our session around noon but we will provide lunch so you can stay and ask questions and develop your plan. It's FREE and there are door prizes! Come on - you won't be sorry you came!

Homebuyers Workshop coming to Clear Lake

2011-03-10T15:14:00.001-06:00

Have you always dreamed of a home of your own?
I am hosting a homebuyer workshop to help you become - and remain - a proud Texas homeowner. As a Realtor and Texas Affordable Housing Specialist, I know purchasing a home is a big decision and there are many things to consider. Before you buy, you should know if you're financially ready, if you can afford to own a home, the steps and processes involved, and the various expenses associated with purchasing and maintaining a home.

Saturday - April 16th

10 a.m. to 1 p.m.

Gateway Community Church

760 Clear Lake City Blvd, Houston 77598

*Door Prizes

*Food Provided by Chick-fil-A and Kookie Kreations

contact: karen@karensherrill-homes.com

This homebuyer workshop, which is part of the Texas Association of Realtors Housing Initiatives Program, will present you with the information to help prepare you to comfortably purchase and keep your home for years to come.

Click the event button to let me know you're attending or visit Facebook

Other participants are: Simien Properties, Hometrust Mortgage, Wells Fargo, AAA Texas, Farmers Insurance, and National Credit Foundation