Want Holiday Sales? Only if you are listing.

When it comes to selling a home, many houses are sold in the warmer months of the year. Logically the warmer months usually mean a clear day to move and less risk of a snow storm on your potential moving day. However, don’t count out winter sales.

Top three reasons to keep your house listed throughout the holidays and winter months.

1)      The first reason to keep your house listed is simple. Potential buyers are still looking for homes. No matter the time of year, there are at least a few people still looking for a new home. Even if they aren’t necessarily looking to move in January, you can count on the buyer braving the cold and snow for that right house at that right price.

2)      Second reason - Less Competition.  Many people don’t want to have to “deal” with showing their house throughout the holiday season and may take their house off the market. Being one of the fewer homes kept on the market or listing it during this time will allow you to stand out among the crowd because there is less of a crowd.  

3)      The final reason to list your house through the holiday season and  throughout the end of the calendar year is because of transfers. Many businesses will transfer employees at the end of the calendar year and those buyers and families NEED to find a great house IMMEDIATELY. Take advantage of the lack of homes for sale and leverage that with the demand of the transfer market.

These are just three simple reasons to keep your house on the market during the holiday season. Can you think of any other reasons to put or keep your home on the market during this time?

I Don’t Have to Have 20% Down Money to Get a Mortgage?

Traditionally, a 20% down payment is ideal for many mortgages to avoid paying private mortgage insurance, aka PMI.  Also, by having more money saved that you initially put into your home rather than borrowing will help to reduce your monthly payments, and provide you instant equity in your new home.  However, thanks to the Federal Housing Administration (FHA), you need much less down money, or with some programs, zero money down.  We’ll briefly discuss several of the programs available.

First, let’s take a look at FHA 203(b). This program allows a qualifying buyer to put down as little as 3.5% of the total purchase price. There are loan limits in this program, but they vary by area so be sure to check with your REALTOR® about your area. Also in this program, the PMI is wrapped into the loan. You can use this loan to purchase one to four unit structures. There are some income and other limits with this and many other FHA programs so be sure to check with your REALTOR® about those as well. Some other FHA programs can be found here.

Another popular program is the 100% USDA Rural Development Program. This is a 100% loan that requires no down payment as well as no PMI. A minimum credit score of 640 is required and the loan can be up to 103.5% of the appraised value of the structure. With no limit to the seller’s contribution toward closing costs this loan is very beneficial to the buyer and may require little to no money at all for closing.

However, there is one “catch” to the USDA program. The property must be in designated rural areas. You can check out http://eligibility.sc.egov.usda.gov to see what areas are approved. Also, there are income eligibility requirements to be met as well. They vary based on county for instance a 1-4 person household can make no more than $81,650 in Dauphin or Cumberland counties but in Lancaster county the limit is $77,500 (as of June 2, 2010 – subject to change).

Are you a veteran?  Don’t forget that as a veteran you are entitled to a VA Loan which is also a 100% loan that requires no money down.  As with all of these programs, your REALTOR® can help you to get in touch with a mortgage broker that will work with you to understand which program will best meet your needs.

Next week, we’ll go into more detail about another FHA program that allows you to include money for improvements to the dwelling in the purchase price. Be sure to stay tuned for a great FHA program that is often overlooked.

Flooding…It happens everywhere, not just along the banks of a river.

With over 10 inches of rain falling on the mid-state recently (13.4 inches reported by Harrisburg International Airport) widespread flooding was expected. The Susquehanna River and other large creeks hit near record flood levels. Even streets became creek and river-like with cars being swept away.

Between the rains of both Hurricanes Irene and Lee, the mid-state is currently in the midst of a massive cleanup and the area has been declared a disaster by President Obama. If you were affected by flood damage you have a few options.

First, check with your homeowner’s insurance policy and see if you’re covered. Depending on where you live, you may need a separate policy or rider, but in the case of one local couple…their homeowner’s policy came through. 

Matt Hannaford, a social media manager and part time DJ in Harrisburg, works from home most days and Wednesday, September 7^th was no different.  After an early morning meeting, he was back home by 10:30 to get to work. 

Knowing that his outdoor drain sometimes gets clogged with leaves during heavy rains, he decided to make sure he wouldn’t have any problems and checked the drain. He noticed that it was covered and that there was about four inches of water at the bottom of the steps. He quickly grabbed a shovel to move the leaves away from the drain. 

Unfortunately, for Hannaford, the drain wasn’t clogged. Rather, it was flowing water in the opposite direction and into the base of the steps. The high water forced its way through the exterior door and into the basement where it had already filled the basement with about two to three inches of water throughout the 1000 square foot space.

Hannaford quickly called his wife, Erin, and then other members of their family for help. They eventually got the situation under control, but it took until Thursday afternoon to rid the basement of standing water. By Friday evening, the five-room, finished basement was gutted and the clean up and rebuilding process could begin.

The young couple called their homeowner’s insurance company Wednesday afternoon while attempting to remove the water and found out that they were covered for at least part of the damage. Lucky for them, the insurance will cover the majority of the damages. Others however, may not be so lucky. 

It’s important to work closely with a REALTOR® to ensure that you have the proper coverage in case of emergency situations such as these.  When the Hannaford’s purchased their home in late 2010, they had been told that the basement only had water in it one other time…in 1972. What are the chances?

Second, you should check out www.fema.gov/assistance and see if you qualify for any additional help. If your homeowner’s coverage doesn’t cover flood or water back up damage, you may be eligible for federal loans to help with the unexpected costs. 

Remember, our team of REALTORS® and legal advisors are here to help you through the purchasing process, including considering the unexpected.

We continue to keep your best interest in mind and we hope you all are safe, dry, and insured!