The past few months…

I have been very bad lately on updating my blog. (I’m sorry)  I have actually been pretty busy.  I know everyone thinks the market is horrible right now but I’m not complaining.  As a new agent I have already had two closing and I have a listing and I’m working with two buyers!  So I thank God for such a great start.  (Also I think Ms. KT for helping me so much)  I really do love real estate and I love working with people.  It just makes you feel good inside when someone gets to move into there dream home.  I know I still have lots to learn but I do believe I found a career that I’m going to stick with and love!

Real Estate’s Perfect Storm

A mortgage loan officer stopped by the office last week to speak at our sales meeting.  His subject was the “Mortgage Market Meltdown: What it Means to You.”    The speaker was Scott Matuk of First Community Mortgage, and one of my recommended lenders.  He said that if the mortgage market was compared to a hurricane, it would be a Category FIVE because not only is the market affecting the economy of the U.S., but it’s also have a huge impact on Europe, Asia, etc.  In the last two weeks alone, $2 TRILLION has been lost in the market.

There were several factors that caused this huge mortgage problem, including: subprime and alternative lending practices (anyone with a heartbeat could generally qualify for a home loan and AltA was for people with good credit but had other issues).  These loans accounted for between 40 and 70 percent of all loans in 2005-06 and this appetite brought loose underwriting practices.  Then reality set in and we learned many folks had bad credit for a reason – they couldn’t pay back the money they borrowed.

As this began happening, mortgage backed securities – those giants who typically buy loans that free lenders to loan even more – start backing out of purchasing them.  Or if they do take the loans, they pay the loan companies less for them.  This practice either shorted the liquid assets of lenders or stuck them with high-risk loans.  Eventually they were unable to cover the losses from delinquent loans.  So the consumer is maxed out and unable to repay.  The securities industry is no longer willing to buy subprime and AltA loans from lenders.  And the subprime lenders have no more equity to support the loans, causing the perfect storm.

For the real estate industry, it means there are fewer potential buyers, increasing inventory, increasing foreclosures, and increased pricing pressure.   The good news is that although more exotic, weird mortgages are going away, there are still plenty of loans available for buyers.  Typically, these are conforming loans and government backed loans such as Fannie Mae, FHA and VA.  But buyers are cautioned to not get too comfortable. 

If you are planning to buy a home in Smyrna, LaVergne, Nashville, or the surrounding area in the next six to twelve months, have your credit score pulled now to see if your credit is okay.  Talk to a lender like Scott (who can be reached at 500-5276) who can counsel you on what you can do to increase your credit score before you’re ready to buy.  Even loans for people with 720 scores may no longer be available, so this is vital.  You should be prepared to bring your tax returns, W2 forms, bank statements and pay check stubs when you go for a home loan … this means that you are getting a fully documented loan and those are the loans that are still available.

If you are a seller, you must get real about the price of your home.  No “I’m going to price it $5,000 higher than it’s worth so I’ll have room to negotiate.”  Price it at what your agent believes is fair market value, not what you think it’s worth.  Your agent has access to what’s happened with home prices and they do not take lightly the home price they recommend!   Scott said that sellers could also consider seller-held second mortgages for buyers… I’ve always advised my sellers to steer clear of these, but maybe this scenario is worth talking about.  BEWARE of the non pre-approved buyer.  If you get an offer, make sure the purchase contract states that they must have a financial commitment letter from their lender within five days of binding.  If they do not provide this, the contract becomes void. 

Finally, rest assured that most bank-backed mortgages will be okay.  Get a loan through someone who is controlling the decision – be a bit more cautious of someone who is sending your loan application to a land far far away for approval.  And remember, ALL loans will be credit score driven in the foreseeable future.   For everyone, routine credit monitoring should be just like your annual physical.  Every year, review yoru credit.  If you are considering buying or selling, start your credit review process three to six months in advance.  Get your financial house in order.   Good luck!

Reprinted with permission by Kathy Tyson.

My First Listing

Well, I got my first listing!  The listing is actually my rental house, but it still counts.    It’s very cute.  The square footage is 1416, it has 3 bedrooms and 2 1/2 baths.  It’s listed at $117,000.  It’s in Smyrna within walking distance of the library and playground.  I’m currently doing some remodeling.  I’ll show some before and after pics.  Let me know what you think. 

First the before:

Watch for the after pictures coming soon!

It’s Official!

Congratulations to Bob Parks Realty, LLC for becoming the official real estate company of the Tennessee Titans!   Does this mean that I will help a player find a home?  Or the Coach?  Me?  Somehow I doubt it.  What it does do is shows how much we love the Titans!   In other news, we now have an office in Florida.  Called Premier Property Group, LLC, the company will be in the Florida panhandle market between Destin and Panama City Beach.  The Daily News Journal reports more details from a company press release.

Can’t wait!

As a new agent I just can’t waited to get started.  I’m so eager to get some hands on training!  Over the weekend I sat at my second open house.  It was a beautiful house.  I had about four couples visit the house in the two hour period that I was there.  In which three of the couples had no agent and they have just started their journey in seaching for a new home.  Of course I gave them a business card and told them I would be glad to help them find their dream home.  Wish me luck! 

The Fast Track to Sell

When you sell your home, the key is always ALWAYS pricing it correctly, along with presentation.   If your home is clean, organized, and has a fresh feel and smell, you’re on the right track.  You don’t want to turn off a potential buyer as soon as they pull in the driveway and walk through the front door.  Here are some simple steps to help you sell:

1. Get rid of clutter.  If you haven’t touched it, used it, or looked at it in the past month, then it doesn’t need to be there.  Pack it up and store it away (rent a storage unit if necessary).
2. Clean up messes.  If you see dirt, cobwebs, dust, upside down ladybugs, clean them up.  Kitchens are the obvious area to keep clean as that’s where food is prepared, but bathrooms are also especially important.  Remember, buyers WILL look behind your shower curtain, they will open the  medicine cabinet, and they will open the toilet lid. And they’ll look in your closet.
3. Paint!  Fresh paint is always a bonus for buyers!  Try to pick a neutral color (purples, reds, pepto pink, and electric greens cause headaches so steer clear.)
4. Open your window treatments!  Curtains and blinds should be open to let in the light.
5. Curb appeal!  Potenetial buyers should enjoy their walk from the to the door.  Plant flowers, sweep the sidewalk, MOW THE GRASS!
6. No pets!  We love our pets, but clean up after Rover both inside and out (yuck!).  If you can, put pets in a pen and/or move them offsite during home showings.  This is especially important if your pet is aggressive.  You do not want your dog to scare your buyer while doing its job to protect your home. Barking, snarling, growling, biting = bad = no sale. 
7. Box up kids toys.  Toys + Clutter = bad = no sale.
8. Leave home when shown.  Let the agents do their jobs and sell your home for you. Buyers do not want you there because they feel inhibited when looking around.  Plus you could easily say the wrong thing and lose the sale over an innocent remark.  You could also adversely affect your negotiating position by the remarks you  make.  Loose lips sink ships.
9. Finish your projects!  Did you  mean to paint that baseboard?  Do it!  Boards missing on outside deck!  Nail them in!

Selling Your Home

When you list your home, there are always options regarding the commission.  With Bob Parks Realty, LLC, we charge a 6% commission on residential listings.  I do offer a second commission option of 7%.  The details of the full service you get with both of these commission options follow:

SIX PERCENT COMMISSION

• Pricing-Assistance with pricing your home based on a comparative market analysis.

• Bob Parks Marketing System – Your home will be entered into the Bob Parks marketing/information system. Bob Parks, LLC sold over $1.4 billion in 2005.

• Relocation Program– Info. on your property will be put into the Leading Real Estate Companies of the World. Networks with over 100,000 associates worldwide.

• Bob Parks Sign- I will place the recognized Bob Parks sign on your property.

• Color Brochure-Full color, with pictures of your home

• Brochure Box– Placed with Bob Parks sign

• Lock Box– I will place a lock box on your property to increase showings and provide you with the security of knowing who has shown your home.

• Multiple Listing Service-(MLS)-Your property’s information will be entered in the MLS, giving your home exposure to thousands of Realtors in Middle Tennessee.

• Internet-Your home will be available on numerous real estate sites such as Realtor.com, giving your property world wide exposure.

• Mail to Neighbors–I will mail “Just Listed” postcards to 50 neighbors closest to your property or buyers “moving up”.

• Counter  Display-I will prepare an informational notebook  containing most things a buyer will want to know-survey, school systems, utilities, homeowner’s association, pre-inspection, etc. This information will give buyer’s the confidence to write a contract.

• Buyer/Seller Survey– As part of the counter display, we will have a survey card for Realtors and their buyers to fill out and give us feedback on their showing of your home.

• Open House-With your permission, I will facilitate your open house.

• Weekly Contact-An update on the marketing of your home.

SEVEN PERCENT COMMISSION

• Pre-Inspection- on home by licensed home inspector

• 1 Yr. Home Warranty– immediate coverage for current homeowner, transferred to new homeowner at closing

• 2 Hr. Staging – by professional stager

Welcome to Karmen’s Real Estate

It is a pleasure to welcome you to my new real estate web log.  I hope you’ll feel welcome to comment here, ask questions, or contact me if you have any real estate needs.

But let me first introduce myself.  My name is Karmen Crowder and I work with Bob Parks Realty, LLC in Smyrna, Tennessee.  I’m married and I have one son.  He keeps me very busy between soccer and karate.  I attend church at fbc Smyrna.  I have lived in Murfreesboro for a total of four years, but I was born and raised in Portland TN. 

557 Sam Ridley Parkway, W.
Smyrna, TN 37167
Tel: (615) 459-4040
Cell:  (615) 202-7519
Email: kcrowder@realtracs.com