FHA Renovation Loans Offer a Great Way to Purchase Heavily Discounted HUD Homes

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One of the unfortunate outcomes of the economic downturn our nation faced during the time immediately following 2007 has been the number of homes with the mortgage going into default. Sadly, try as much as we did collectively as a nation to avoid this, for many homeowners this was an inevitable and very painful fact of life.

But as they say, “every cloud has a silver lining” and the opportunity that lies in these same homes is for first-time buyers to be able to afford much more house in much less money. Take HUD Homes. When a federally insured home is defaulted on and repossessed by the government upon default, it will usually end up on a long list of available HUD homes.

As demonstrated in the video, all a prospective homebuyer needs to do is to visit www.HUDHomestore.com and start shopping. With weekly updates the inventory of these homes is fairly vast, providing a fair amount of selection in the same areas and same neighborhoods that you would find traditional MLS listings. As you browse through the properties you will find that each has a set of parameters, including the types of acceptable financing allowed on each property.

Keep in mind that there are many HUD homes that are insurable. In the example I pulled up to demonstrate the property was not insurable, therefore the only forms of financing available were either cash, conventional mortgage or a FHA 203k loan. Also called the “rehabilitation loan” the idea behind this type of financing is that the home being purchased will need some sort of rehabilitation or renovation. The government then insures one amount to cover the purchase price plus another additional amount that accommodates renovations/repairs that need to be done.

The beauty of this type of financing is that like any other FHA product you will only have to put down 3.5% on the loan and that includes the amount borrowed for rehabilitation too. There is one more aspect to HUD homes that many people don’t realize; these are usually open for owner occupants first before they open up to the remaining market. This gives you a much better chance at getting the property you want without having to compete with an investor that is out looking to get a great deal.

There is one small caveat to this unique type of home inventory – you must visit the property via an authorized HUD broker. Of course, Carbutti & Co. Realtors is a HUD broker and we have full access to HUD homes so all you have to do is give us a call or send us a quick email and we’ll get you right in to see the homes of your choosing. Also, in our extensive experience dealing with HUD homes, we are more than happy to answer any questions you may have about the home buying process with these properties. We look forward to hearing from you today!

Harness the Power of the Fall Season – List Your Home Now To Sell it Lightning Fast

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Many sellers are unsure whether or not to wait until next spring before listing their home. The confusion comes with a combination of age-old schools of thought that predict the spring season as being almost the only season for homes to sell successfully. Not true.

A lot of homeowners are under the impression that homes are not selling at all, whereas in our own experience, time and again we continue to see completely the opposite results. So much so, that we are defying the myths of never ending days on market statistics with many properties going under contract in approximately two weeks. Here’s why.

There are so many buyers in the marketplace right now that are eager to lock in the phenomenal interest rates and market conditions that continue to allow a very significant amount of buying power. The interesting thing is that while it is a strong buyers’ market in that sense, sellers are still enjoying an edge with the lower inventory that comes with it being this time of year.

Regardless of which side of the fence you are on, either way you look at it the market is strong. People are out there buying. If there are fewer homes available on the market, then that only means that there is less selling competition. This of course translates to top dollar and incredibly quick, hassle-free transactions in which everyone comes out a smiling winner.

So to answer one of the most frequently asked questions I am getting these days, it IS a great time to sell your home. Sure, you could wait till spring. But keep in mind that so will countless other sellers and by the time springtime blooms are back out, so will equally as many more “for sale” signs, competing with you.

By listing your home now, you can harness the power of the buyers that are striving to find that perfect property before the holidays kick in.

Contact us today if you’d like a custom, home valuation report detailing exactly what we expect your home will sell for in today’s marketplace. Our team looks forward to hearing from you and helping your real estate goals come to fruition.

Who Said Buying a Home in the Spring Is Better Than Buying in the Fall/Winter?

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Other than the age-old trend of people buying homes more so in the spring season as opposed to the fall and winter, there really is no reason that one might choose one season over the other. Sure, there may be more homes on the market – but equally there are as many more buyers circuiting the market too.

The question prospective buyers ought to be asking themselves is whether or not they would prefer buying a home that is right for them regardless of the time of year or does it just suit them more to buy when it’s warmer outside?

Spring Is In the Air – And So Is Much More Competition

Many buyers like to be out shopping for a new home at a time that they feel there are a lot more homes on the market. But one very important thing to consider is that there are equally as many other buyers out there also looking. And with a greater number of buyers at any given time, there’s a good chance you will come across more buyers looking for the same type of property that you are seeking.

So when the perfect home shows up on the market, in great condition and priced just right – you guessed it – more than one buyer will likely show up to make an offer on it. What does that do to your chances of securing the home of your dreams? Having multiple buyers vying for the same property dilutes your chances a good amount. Not only will you find a greater likelihood of competing against another buyers’ bid but you will also face the risk of multiple offers and ultimately a bidding war. Despite the low, low interest rates, the last thing any buyer wants is to deal with artificially inflated prices.

Real Estate Market in Fall and Winter Slows Down But Doesn’t Stop

Contrary to what many people believe, the real estate market does not stop during the cooler months of the year – rather it just slows down a little. But this can work in buyers’ favor when you consider that there is fewer buying competition to contend with. Yes there are fewer homes on the market since the same people that believe springtime is a better time for real estate also remove their homes from the market. However, with fewer sellers there are also fewer buyers which means that when you do find the perfect home there is a much better chance at successfully closing the deal – and without all the hoopla that goes along with multiple offers or bidding wars.

Consider also that by the time the holidays begin to roll around, many sellers have had their property on the market for one, two or even more months and they are eager to sell. This translates to their willingness to negotiate more than ever before.
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With today’s record setting low interest rates and with them the very low cost of borrowing money combined with increased buying power, it only makes sense to jump off the fence and embark on your home buying journey. We invite you to contact us today so we can begin helping you find your perfect home.

Don’t Let the Internet Take Away Your True Homebuyer Experience!

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Before I got into the wonderful business of real estate, my dad was a full-fledged member of the profession. And I have to say that I learned a LOT from him. But as technology began to get more and more prevalent in our line of work, things started shifting and there was a notable change in the way I (as well as many of my associates, colleagues and others in the same industry) was doing things.

Today, though – I want to talk about stepping back from all this technology – for just a second. Don’t get me wrong; I know only all too well how important using today’s modern tools is to being effective in any setting. But when it comes to buying a home, there is something to be said about sitting face-to-face with someone that has nothing but the best of intentions (and responsibility) for you.

That’s why at Carbutti & Co. Realtors we focus heavily on making sure that we serve our buyers with everything they need as they embark on the wonderful journey of buying their new home. We work hard to make sure you are educated on all the important steps you need to know about the buying process.

While doing myriad online searches, reading through countless Internet blogs and soaking up tons of information published widely on the web, many buyers do not realize the need for an exclusive relationship with one Realtor/Broker. To help illustrate how important this piece is in the overall endeavor of searching, choosing and buying your new home, I often mention this analogy; Imagine standing in a courtroom and facing a judge. The other side has their attorney representing them but you are standing there all alone and have no one representing your best interests. Transactions in real estate need just as much representation.

Buying real estate can be a complicated process with complex situations, detailed forms and certain nuances that only a professional would know to consider. Without a professional licensed Realtor at your side making sure you make decisions that get you the best outcome, you stand to risk a lot. That’s why we encourage our clients, friends, business contacts and neighbors to enter an agency/broker agreement with us so that we can focus all our energy on the needs at hand – and do so with the utmost conviction and purpose. Not that we don’t do so anyway, but with an exclusive contract with you it becomes our legal duty to provide full representation of your needs, as per your best interests.

One of the things we do to assist our buyers’ understanding of the process is to provide them with a copy of our extensive Homebuyers’ Guide. This comprehensive and very well thought-out resource will help to prepare you for all that goes in to searching, finding and buying your dream home.
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So in your quest to finding the perfect home, please don’t forget you also need to find the perfect agent – and we can honestly say that we believe, hands down, that our competent, knowledgeable and focused agents are the ones to represent you – as you need.

If you’d like to explore your options, get some help getting preapproved for a mortgage, or even if you just want to test the waters and see what’s out there – we invite you to contact us today at 203.980.6886 or via my email directly at jonathan@carbutti.com. I look forward to hearing from you!

Guilford Connecticut Town Tour; The Perfect Blend of Coastal Living With Historic Charm

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As visitors first begin to discover, the Town of Guilford has many gorgeous aspects to it that make it such a highly desired place to live. Nestled among the exquisite shores of this quaint New England beach community are the marks of history, community and camaraderie. Just fifteen or twenty minutes from New Haven, this small town offers its residents a little bit of everything. Homes that represent some of our region’s earliest settlers, including the oldest house in Connecticut (built in 1639) as well as newly constructed homes to suit those with varied tastes – all are found in this great town.

Visitors and residents alike enjoy a host of activities that take place year round, solidifying this community’s already strong sense of community. And there is no shortage of commercial activity either. With the perfect blend of shops, historic storefronts, coffee places and restaurants, the town center is the perfect place to spend time whenever possible. Gorgeous beaches, spectacular green and wide-open spaces make Guilford a great place for recreation.

What many people enjoy about Guilford is also how accessible New Haven is through the Metro-North train line. After just an hour and ten minute train ride, people are transported to an entirely different place. Another key aspect of living in Guilford that is enjoyed by residents is the strong school system. Connecticut’s schools are consistently ranked high and Guilford is no exception. The schools feature unique music and sports programs as well as academics that rival only the top schools in the state. Time and again, Guilford students receive recognition statewide and on a national level.

To discover Guilford, we invite you to take a tour with us so we can share the experience with you in person. Contact us today to schedule your tour; we look forward to meeting with you!

Three Very Costly Mistakes That Sellers Make When Choosing a Listing Agent

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We’ve all heard the expression “time is money” right? So why, then, is time not something that most sellers think about when hiring an agent to list their property? Just imagine, hiring the wrong agent can end up in months of frustration with lack of communication, lack of preparedness and worse, a lackluster attitude toward what is probably the most important financial transaction of your life.

To help make sure you don’t make the same mistakes that countless other sellers have made, here are three important things to consider before you sign the dotted line of a listing agreement.

Shop Carefully and Consider Your Options

All too often we see that most sellers will hire the first agent they meet and speak with about their home. That is not a problem except that many agents will unscrupulously have you sign a 6-month or worse yet, 12-month exclusive right to sell agreement with them. What does that mean? It means that regardless of who ends up selling your property (yes, even if you found your own buyer) they would benefit from the sale. But it goes beyond just the commission. If after a few negative experiences with this person you wanted to get out of the contract – you simply couldn’t.

To sign an agreement with a broker that lasts a year or even six months is a huge mistake. These sellers end up unhappy with their agents – stuck because despite being told verbally that they would be able to get out of that contract within 30-days, they couldn’t. The reason for this is that it was more than likely not in writing – effectively trapping these people into staying with that broker despite what their wishes may be.

At Carbutti & Co. Realtors, our goal is not to trap clients into being forced to deal with us. We want you to recognize our strengths and want to work with us. Our 90-day listing agreement policy reflects that and corroborates the confidence we have in our team to deliver results that work to serve your best interests. We feel that 90 days provides a good benchmark of time to help determine whether the home is priced right, advise has been appropriately administered and whether the property has received ample exposure in the market.

Choose an Agent or Broker That is Current

What do we mean by “current”? It’s simple. Just like technology continues to evolve in all other areas of life, we have to assume that the person representing them is also current with technology. A very surprising large number of agents neglect to realize the importance of delivering on real-time needs of buyers using up-to-date tools. Rather than make the mistake of hiring an agent that is relying strictly on Open Houses (studies show less than 2% of sales are generating from Open Houses), contact someone that is using relevant technology.

Video is the single most innovative and also underutilized technology in real estate. Your agent should be using video tours as a matter of routine and unless they do so, you are working with a broker that has not yet kept up with the times. Buyers are out there using their smartphones to do home searches, utilizing their GPS systems to search neighborhood properties and expecting real time responses to information requests. That’s why it is critical to know that unless your broker is up to speed in today’s technology, they can’t keep up with the needs of today’s buyers. As a test, look up any agent in Google. Do they pop up as the first or second item on the search results page? If not, they are not positioned to be at the forefront of today’s technologically advanced real estate industry.

Look for Recognition Among Community and Peers

There is something to be said about agents and brokers that are revered not only by members of the community but also by their peers. In the many dealings that are necessary for a smooth transaction, it is critical that agents on both sides of the transaction are able to communicate effectively. When you have an agent that is difficult to get along with, does not mesh well within the community or their colleagues, you stand to face risks that directly impact the sale of your property.

Hire a broker with a name that is respected in the marketplace by both consumers and other real estate agents. When interviewing your prospective agents, be sure to ask about their dealings with others in the industry. At Carbutti & Co. Realtors, we enjoy strong relationships with the real estate community and others. Among other factors, this helps us to successfully achieve the goals of our clients.
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These are just a few of the things you can do to make sure you are in good hands when it comes to selling your home. But beyond that, it’s important to be able to look your agent in the eye and feel that you are valued – cherished and most of all heard. To give us an opportunity to listen to your needs, please contact us today. We look forward to the chance to share with you why we are the right brokerage to hire for your real estate needs!

Wallingford, CT Real Estate Market Update

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As we take a look at how our single-family homes on the market have been performing lately, the news is good. The big news is that our home sales have not only outperformed our expectations, they have surpassed them by far. In fact, when looking at the relationship of inventory as to sales, we are seeing home sales that have exceeded our new inventory coming on the market over the past couple weeks.

The median selling price is currently $279,000 with an average price per square foot of $172. Our days on market are not as telling as the rest of numbers, with the average DOM currently registered at 212 for the Wallingford area.

Fairly High Percentage of Properties With Price Reductions

One statistic that many consumers do not tend to hear about is the percentage of properties with price reductions. At the moment we have 38% homes that experience some form of price lowering from the time they were listed to now. The reason this is relevant and useful to you is that this number points to the number of properties that may or may not have been priced appropriately to begin with.

Consider this: a great home in a great location that is situated among other similar homes but priced way over the rest – simply will not generate enough attention, if any at all. As a buyer, this means you should exercise savvy in your judgment when looking at properties. For sellers this is a huge wake up call to those that may be expecting more than their home is realistically going to yield.

Market Action Index Showing Wallingford Buyers Still Have the Edge

Our current Market Action Index is at 12.7, indicating a buyer-centric market for the time being. However, this trend is moving upward toward a seller-controlled environment as we approach 30 (a MAI above 30 implies sellers’ advantage while below 30 marks a buyer-controlled climate).

What Does This All Mean To You as a Consumer?

It means that now is just about the best time to buy. There’s no telling how the Presidential election will impact the housing market so right now, as we are sitting in a fairly certain market with reasonable prices, record setting low interest rates and buyers out there seeking competitively priced properties, it only makes sense to reach out and grab the opportunity!

If you would like a more detailed look at how we are doing in our marketplace, or if you want to explore buying or selling your home, contact us today for a customized consultation where we can assess your needs and get started on making your goals become a reality.