Ask Our Broker
QUESTION:
We're interested in selling our home. We have spoken to several brokers about a listing and they each say that prices in our neighborhood have gone up. How can this possibly be true? Every national survey and media report mentions declining home prices?
ANSWER:
Sometimes it happens that two things are true, even two things which seem to conflict.
Real estate is a localized commodity. If your house was five miles in a different direction the very same bricks and mortar would have a different value. Hearing the same message from several different brokers suggests that you live in a neighborhood which simply does not reflect national or regional housing trends. This could be a by-product of location, the condition of neighborhood homes, a population increase, the nearby opening of a new source of jobs such as a mall, office center or factory, etc.
To find out more, ask your broker for specifics. Which individual homes have sold in the past six months? What was the initial asking price and what was the final sale price? How long was the property on the market? Are owners making so-called seller contributions? How much? Etc.
QUESTION:
My husband and I are renting a house that the landlord recently put up for sale. We're interested in buying the property, but our credit is not that great and we're having a hard time finding a loan. Is there a mortgage company that specializes in helping borrowers with not-so-great credit?
ANSWER:
What do you mean by "not-so-great?" Your credit may be better than you think. Ask several lenders to check your credit score.
Subprime loans are likely to be available - but at rates so steep you're likely better off renting until your credit improves.
FHA loans are available with 3.5 percent down for those with credit scores above 580. Also, look into VA financing if you have qualifying service and see if your state housing office has financing for first-time buyers.
