First-time Home Buyers Find Barriers in Student Loan Debt

Are first-time buyers becoming scarce? According to recent statistics from the National Association of Realtors, there are fewer first-time home buyers in the market today. In a normal market, first-time home buyers represent 40% of all home purchases. But in the last 4 years, that percentage has dwindled down to less than 35%.  

In the last 3 months, the percentage of first-time buyers in the market fell to 30%.

There have been many theories behind this disturbing trend. The Great Recession meant job losses and income cuts for many Americans. Unemployment was high. Mortgage requirements became tougher. And student loan debt became higher.

In recent years, student loan debt grew at an unprecedented rate. According to recent studies, college graduates currently average about $27,000 in student loan debt. 10% of graduates average more than $50,000 in student loan debt. Around 3% of them have $100,000 in debt.

How does this hurt home buying? Mortgage loan qualifying requires an examination of the home buyer’s debt-to-income ratio. In most cases, the total amount of debt payments, including the mortgage payment, cannot exceed 43% of the buyer’s monthly income. Some mortgages require debt-to-income ratios to be as low as 36%.

For some first-time home buyers, the student loan payment amounts can easily cause them to exceed the allowed debt-to-income ratios, even if their other debts are modest.

If you have student loan debt, it doesn’t mean you cannot buy a Fountain Hills home. However, you will need to make sure your total debt picture is as small as possible. From car payments to credit card bills, keep your debt obligations at the absolute minimum. And if you need help managing your student loan debt, visit the U.S. Department of Education website for information about payment deferral and forbearance.

If you are a first-time home buyer, give yourself the advantage of having an Accredited Buyer Representative! I will refer you to reputable mortgage lenders who can coach you on mortgage qualifying and find the best financing for you.

For the best home buying experience, let me be your guide to the Fountain Hills real estate market! I have helped Arizona home buyers for over 30 years, and I'd like to help you too! I will provide you with expert, professional representation throughout the home buying process.

Contact me today for complete home buying help in Fountain Hills!

Tina Nabers
Nabers Property Management & Real Estate
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Great Fair and Golf Tournament Draw Thousands to Fountain Hills, AZ!

Get ready, Fountain Hills residents - we're about to have 200,000 guests! February brings tourism to Fountain Hills with the Great Fair and the 2013 Memorial Championship Disc Golf Tournament!

While much of the country endures cold temperatures, snow, and cabin fever, we're going have temperatures in the 60's and 70's with blue skies!

For those of you who are not already residents of Arizona, February is the perfect time to plan a weekend warm-up getaway to Fountain Hills! Join us for our special events!

The annual Great Fair takes place on February 22 through 24, from 10:00 a.m. to 5:00 p.m. Admission and parking are free of charge!

You will find about 480 skilled artists and craftsmen from around the world offering unique, one-of-a kind works of art. Materials and mediums of every imaginable type are on display in this juried event. You name it, it's here. The artistic talent, the variety of displays and the quality will amaze you!

There will be live entertainment and delicious food, plus a beer garden. Soak up the sunshine and the friendly atmosphere of Fountain Hills! At night, you can chose from our terrific restaurants and enjoy our beautiful desert evenings.

Next, the 2013 Memorial Championship Disc Golf Tournament welcomes pro golfers to Fountain Hills and Scottsdale! Tournament begins February 27, events end March 3. You must have a 2013 PDGA membership to enter as a contestant, but spectators are welcome.

And if you haven't golfed in Arizona, you haven't golfed anywhere! Come to Fountain Hills for the Great Fair, and stay for our 5 world-class public golf courses! The scenery is breathtaking, and the temperatures this time of year are ideal for 18 holes of invigorating golf.

When you visit Fountain Hills, AZ, you might be tempted to stay! If you'd like to take a look at our wonderful homes in the area, just let me know! I would be happy to be your guide to Fountain Hills real estate!

Tina Nabers
Nabers Property Management & Real Estate
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Faster Short Sales Benefit Fountain Hills Home Sellers

Fountain Hills home values gained ground during 2012, and there is reason for optimism during 2013!

Recent updates to the short sale process, along with an extension of the Mortgage Debt Relief Act, will enable distressed homeowners to sell their homes with less red tape and a quicker turnaround. This will help property values across the board! Here's what you need to know!

First, as part of the Federal "fiscal cliff" budget compromise signed January 1, 2013, the Mortgage Debt Relief Act has been extended! Without the extension, short sellers would have been on the hook with the IRS for any forgiven mortgage debt. The MDRA allows an exception to this tax rule through 2013.

Next, there is good news from Freddie Mac and Fannie Mae. The new short sale guidelines that were put in place November 1, 2012, have reportedly cut down on short sale processing time by 50% to 75%! There are other advantages to the new rules, and here are a few of them:

1. Up to $3,000 in relocation assistance is available to distressed homeowners who successfully complete a short sale through Freddie Mac or Fannie Mae.

2. Mortgage servicers can directly approve qualifying short sales without going to Freddie or Fannie for another layer of approval.

3. Mortgage servicers must acknowledge receipt of a short sale request within 3 days.

4. Short sales must be approved or denied within 30 days. In more complex cases involving a second mortgage or some other issue, the review process cannot exceed 60 days.

The above guidelines pertain to mortgages backed by Freddie Mac and Fannie Mae. Click on the respective links to verify if your mortgage loan is associated with one of them.

Please keep in mind that short sales are meant to help home sellers who are unable to keep their homes due to a personal hardship. However, you do not need to be behind on your mortgage to be eligible for a short sale. This is another rule change that became effective in November 2012.

Short sales are preferable to foreclosures because they are based on current market values, whereas foreclosures can be heavily discounted when they hit the market. Short sales prevent home abandonment and blight. And because home sellers have incentive to complete a short sale, they are more likely to maintain the condition of their home. All this adds up to healthier home values for everyone concerned!

Fountain Hills real estate has many positives going for it, and good housing polices like these should help improve home values throughout 2013!

Do you have questions about home values in your Fountain Hills neighborhood? When you are  selling a Fountain Hills home, put your trust in my 33 years of local real estate experience! Contact me today for expert, reliable help!

Tina Nabers

Nabers Property Management & Real Estate
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6 Selling Strategies For Your Fountain Hills Home!

2013 is shaping up to be a year of opportunity for Fountain Hills home sellers! If you are thinking of putting your home on the market, now is the time! 

We have motivated buyers looking for Arizona homes all year around, and the winter months are an excellent time to sell!

In addition to the valuable selling tips I have on my website, I have a few home selling ideas for you here from AOL real estate. I've added thoughts from my own experience:

1. Instead of downplaying an unusual home feature, promote it towards a certain type of buyer. For example, if you have a two-bedroom home with a four-car garage, it could be perfect for a car enthusiast! Or, if you have a small second bedroom, it may be perfect for a nursery or home office. Decorate the room/area accordingly.

2. Include a perk in return for a full-price offer. Things like a golf membership, a home security service or home warranty can draw a lot of attention, and sweeten the deal for a buyer.

3. Accommodate showing appointment requests, even if it means some inconvenience. Being flexible can help you find the right buyer.

4. Beware of flashy marketing gimmicks that promise big-price offers. If your home cannot live up to its marketing when the buyers see it in person, the only one who "wins" is the advertising company.

5. De-personalize your home. It's hard to take down family photos, but since your goal is to sell and move on, you need to do this at some point anyway! Decorate sparse walls with tasteful, inexpensive artwork or photos of local scenery.

6. Do some home staging! You don't have to spend a bundle. A good technique is to pretend you are having a dinner party or other gathering. Display new guest towels and fancy soaps in the washrooms. Set the dining room table. Have a vase of fresh flowers on the table. Put out the little extras that say "welcome" to guests!

Looking for more home selling ideas? I would be happy to give you professional suggestions specific to your home! I will also tell you what improvements will pay off, so that you do not spend money needlessly. In the meantime, help yourself to my free e-book, "450 Ideas To Help Sell Your Home Faster!"

Getting top dollar for your Fountain Hills home also requires a comparative market analysis! I will be happy to evaluate your home's competitive strength in the Fountain Hills real estate market. There is no charge and no obligation!

Let my 30 years of experience be your home selling advantage! When you have questions about selling your home, call me for prompt, professional service! 

Tina Nabers

Nabers Property Management & Real Estate

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5 Reasons for Optimism in Fountain Hills Real Estate During 2013

It's a New Year full of new opportunities in Fountain Hills real estate! Whether you are thinking of buying or selling a home, you can be optimistic during 2013. Here are 5 reasons why!

1. Mortgage interest rates are expected to remain low. According to industry analysts, rates are likely to remain less than 4% throughout the year.

2. Nationwide, home prices are expected to climb by about 3%.

3. New housing starts are predicted to reach 1 million units nationally by the end of 2013.

4. While the Federal budget debate is not complete and spending cuts may occur in the future, the worst-case scenarios in the "fiscal cliff" have been averted.

5. The Greater Phoenix real estate market closed 2012 with strong momentum! Median home prices in November 2012 were 31.9% than November 2011. This marked the 12th consecutive month of year-over-year price gains.

At the same time, distressed property sales in the Phoenix area show a steady decline. Bank-owned home sales represented just 17.2% of the market during November 2012. When you consider that foreclosure sales accounted for over 66% of the market in early 2009, we've made amazing progress!

Arizona real estate demand comes from domestic and international investors, retirees, relocating professionals, first-time home buyers and move-up buyers. In fact, the latter group is causing sales trends towards larger, well-appointed homes. We are seeing good sales activity in a variety of price levels, which further proves that the market is not being driven by distressed properties.

Some challenges will remain ahead of us during 2013. Mortgage loan approval can still be difficult for credit-worthy home buyers. Meanwhile, conservative home appraisals will keep the pace of sale price increases in check. Homeowners who wish to sell, but remain underwater in value, continue to wait for higher prices which keeps home inventory lean. All considered, real estate in Fountain Hills will be attractive for home buyers, but also very competitive!

Overall, Fountain Hills is positioned for home sales growth during 2013! We have the advantages of natural beauty, recreation, proximity to corporate centers, and ample shopping and dining. If you are considering a new home in Arizona, start by looking at the beautiful Fountain Hills homes available now!

Whether you are buying or selling a Fountain Hills home, put your trust in my 33 years of local real estate experience! I can help you make the most of today's opportunities in the Fountain Hills real estate market. I will also provide you the courteous, professional service you can count on! Contact me today for help with all of your real estate needs!

All the best to you in the New Year!

Tina Nabers
Nabers Property Management & Real Estate
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Are Your Selling Expectations Realistic for Your Fountain Hills Home?

If you are thinking of selling your Fountain Hills home, you probably have three main objectives: 

1. Selling your home for the highest feasible price.

2. Selling your home as quickly as possible.

3. Selling your home with a minimum amount of contingencies. 

As your experienced Fountain Hills real estate professional, I understand these goals and I will help you meet them! 

I also want to share insights from a survey by HomeGain, which says that 75% of home sellers believe their home is worth more than more than their agent's recommended price.

This isn't surprising. After all, your property tax assessment may be higher than the market value of your home. Your replacement cost in your home insurance policy may be higher than the market value of your home. It only stands to reason that your personal opinion of your home's value may be higher than the current market value.

But I'm going to tell you what your home is likely to sell for, given current market values and recent home sales in your neighborhood. After all, selling your home and experimenting with the market are two different things. Over-pricing your home just to "see what happens" usually backfires, and here's why:

1. Most home buyers need mortgages, and mortgages require appraisals. If your home fails to appraise for the sales price, there's no deal.

2. The first 30 days on the market are critical. If your home is over-priced, buyers are likely to avoid it, which extends your days on market. The longer your home lingers on the market, the more it has to compete with new listings, and the weaker your negotiating position becomes. 

Getting top dollar for your Fountain Hills home begins with a realistic assessment of your home's competitive strength in the market!  With over 30 years of experience in Fountain Hills real estate, I have helped home sellers succeed throughout all market conditions! When you have questions about selling your home, call me! I will be happy to help you! 

 

Tina Nabers
Nabers Property Management & Real Estate
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FHA "Flip Rule" Extension Benefits Fountain Hills Investors and Home Buyers

House-flipping became a dirty word during the downturn of the housing market, but the practice is back in vogue. It also has the conditional blessing of the Federal Housing Authority. This is good news for property investors and home buyers in Fountain Hills. Here's why!

Arizona property investors have been an essential part of our housing recovery. They absorb foreclosures, repair distressed homes and either return them to the market, or rent them out. As attractive as buying a foreclosed home on the cheap may sound, most home buyers are not financially equipped to deal with a home that needs extensive repairs.

Recognizing the important role investors play in the housing market, the FHA has extended its blessing of "house flipping" by allowing buyers to finance homes that have been owned by the seller for 90 days or less. Inman News has an excellent article on the subject, and I'm going to touch on the main points.

1. The home purchase must be an "arm's length" transaction, meaning the buyer and seller cannot be working together, or be in cahoots in any way. The seller must also provide good chain of title proving their ownership.

2. If the home sale price is 20% more than what the seller originally paid for it, the seller must show documented proof of repairs, or provide other detailed, viable explanations to justify the markup. The FHA may require a second appraisal to validate the price.

3. If a 20% markup is involved, a home inspection is mandatory, and the buyer will be provided a copy of the report. Any significant defects would require full repair before an FHA-backed mortgage would be approved.

These sensible guidelines protect home buyers, and empower them to purchase "flipped" homes with FHA mortgages. In turn, property investors have a wider market of qualified home buyers.

If you are a first-time home buyer, you won't recognize a "flipped" home from any other on the market. As your Accredited Buyer Representative, I can verify the last sale date of the home and confirm whether or not you may be looking at a flip. There's no need to avoid them, but you will want to be aware of this type of seller and do your homework. I will help you!

Let me be your guide to the Fountain Hills real estate market! I have helped Arizona home buyers and sellers for over 30 years, and I'd like to help you too! I will provide you with expert, professional representation throughout the home buying process. This saves you time and money, and protects you from potential headaches. 

Contact me today and find out more about home buying in Fountain Hills!

Tina Nabers
Nabers Property Management & Real Estate
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