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Displaying blog entries 741-750 of 759

Financing a Montgomery Fixer-Upper

Friday, April 27, 2007
by The Hat Team

We have many wonderful old neighborhoods in Montgomery AL, but like many cities some of our older homes have seen better days.

You have found THE house in THE neighborhood, but you can hardly call it your dream home because of the work it needs.  How will you ever pay for all the repairs? The good news is there are financing options for properties in need of repair.

Section 203(k)
FHA's Section 203(k) mortgage combines the cost of renovation and the purchase of the house within one loan.

These mortgages can be used on homes in urban areas, as long as they're at least a year old and the planned renovation work totals at least $5,000.

First, you hire a HUD-approved consultant, who identifies the rehabilitation projects that are most urgent and the projects that enhance the value of the house. Next, the lender hires an appraiser to determine the post-renovation value of the house, which is used to determine the amount of money you can borrow. The portion of the loan earmarked for improvements is disbursed in installments as the work is completed.

HomeStyle Renovation
Fannie Mae also offers a mortgage product that allows borrowers to finance the cost of a house and renovation work within one loan. While Fannie Mae's HomeStyle Re-modeler is similar to the Section 203(k) program, it differs in a couple of key ways.

For starters, the mortgage limits are somewhat higher. For most of the United States, loans for single-family houses can go up to $323,000. With a HomeStyle Re-modeler loan, that amount would include both the cost of the house itself and the work that's done.

Fannie Mae doesn't require the use of a consultant. However, the borrower has to find a licensed contractor, who submits detailed work plans and specifications to the lender. Fannie Mae doesn't specify the types of repairs allowed, but the work has to be on structures that are permanently attached to the property.

Private Lenders
Many local banks will offer financing programs that allow the purchase of a home along with renovation costs.

Are you looking to buy an older Montgomery home? We can help you find that home and help you find the financing to go along with it.  Call The Hat Team at 834-1500 or 800-428-5239. We'll make your dream a reality!

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Midtown Montgomery Home Sales Increase

Thursday, April 19, 2007
by The Hat Team
"As home sales moderate, overall home prices will be essentially flat this year," says David Lereah, chief economist for the National Association of Realtors. Tighter lending standards are expected to slow sales, but the good news is, inventory remains well below the levels seen in the real estate downturn of the early 1990's.

Our local market is not following this trend towards moderation, however. The number of single family homes in Midtown Montgomery (Midtown consists of neighborhoods south of I-85 between Exits 1 and 6) that sold in March increased by 3 homes or 6 percent.  At the same time, the number of pending listings decreased by only 1 home or less than 1 percent. 

Market times in March 2007 increased slightly with market times of 102 days vs. 99 days in March 2006.  The average sales price decreased $20,520 or 12 percent compared to March 2006. This decrease offsets the 17 percent increase in prices we saw in February. 

Midtown
Montgomery

Pending
Listings

Sold
Listings

Average
Market Times

Average
Sales Price

March 2007

70

53

102

$144,910

March 2006

71

50

99

$165,430

The fluctuation in prices may be the influence of an extremely high end property selling, therefore, skewing the numbers and not necessarily a trend downward. The 3 percent increase in sales should keep prices up

Are you thinking of selling your Montgomery home? You can have a current no-obligation price valuation emailed to you by visiting MontgomeryHomeInfo.com.

Information is provided by the Montgomery Area Association of Realtors and is deemed accurate but not guaranteed. 

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Living Green In Montgomery

Friday, April 13, 2007
by The Hat Team

I learned about a wonderful website, Earth Trends, offering many suggestions, several of which are pretty simple, about things we can each do to help make our increasingly crowded, biologically challenging world a more sustainable place for ourselves and future generations.

Many of these suggestions you have heard before, like turn off the water when your wash your car and use a bucket instead. But the list here is so comprehensive, I wanted to share it with you.

Hopefully , we will all think a little harder about what we do, and don't do, to contribute to the problems of the world's environment. 

Did you know that recycling one aluminum can saves enough electricity to run a TV for 3 hours or that compact fluorescent bulbs use only one-quarter of the energy of an ordinary light bulb and last 8-12 times longer. (Each bulb saves 500 lbs. of CO2 per year)

I hope you will visit Earth Trends to learn about saving our planet and Hat Team to learn about Montgomery AL real estate.

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Alabama Home Sales Rise

Friday, April 6, 2007
by The Hat Team

Alabama's existing home sales increased in February by 14.7 percent with 4,069 homes sold, according to The University of Alabama's Real Estate Research and Education Center.

The average prices also rose in February to $155,632, an increase of 3.3 percent from the previous month. There were 36,702 homes listed on the market in February, representing a nine-month supply of homes in Alabama.

There are many more homes for sale  this year than last year, but the market appears to be able to handle the growth. This year is starting out to be another solid year for home sales in Alabama. 

Midtown Montgomery market statistics can be found on our website.

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Midtown Montgomery Development Experiences Renaissance

Wednesday, April 4, 2007
by The Hat Team

There is much development going on downtown, but Midtown Montgomery is also benefiting from commercial development with its new Midtown Plaza.

The new 300,000 square foot shopping area has exceeded the expectations of the developer and local residents alike. The developer is pleased that all, but one small retail space is rented and residents are pleased the construction congestion has given way to new and convenient shopping and restaurants.

Stores include Super Wal-mart, Ross Dress for Less, Office Depot, Dollar Tree and Shoe Carnival.  Ala Thai, a favorite local restaurant, opens later this month. CiCi's Pizza will open soon after.

Living in Midtown gets better every day!

Interested in what Midtown real estate is doing? Visit our website for all your Midtown Montgomery real estate listings.

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Montgomery Real Estate Podcast

Friday, March 30, 2007
by The Hat Team

The March edition covers Montgomery real estate market activity and we’ve got insights and strategies for you to successfully negotiate your contract for a win-win!

Features special guest Terri Murphy of US Learning.

Please join us!

download podcast mp3 file   |   subscribe to podcast feed


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Will Subprime Mortgage Market Effect Midtown Montgomery Home Buyers

Friday, March 23, 2007
by The Hat Team

The problems with the subprime mortgage market has been in the news lately with much speculation as to the effect this industry's woes will have on the real estate market and the economy as a whole.

Here is what the Wall Street Journal reported 3/12/07:

"Federal Reserve Chairman Ben Bernanke and many other economists do not expect troubles in the subprime mortgage niche to impact the overall national economy, citing a low unemployment rate and income gains. Additionally, they point to data from the Labor Department indicating that only 8 percent of consumer spending is tied to the lowest-income Americans, who make up the bulk of subprime borrowers. However, the U.S. economy could suffer if investors and lenders begin shrinking the amount of credit available to prime borrowers--a scenario that sparked previous recessions. Furthermore, rising subprime foreclosures could worsen the housing downturn, with Lehman Brothers chief U.S. economist Ethan Harris anticipating a monthly increase in inventory of as much as 20,000 homes in 2008. California, Florida and other overheated markets--as well as Ohio, Michigan and others plagued by the downturn in manufacturing--would be hit the hardest."

Need a mortgage to buy your new home? Contact us at 800-428-5239. We will refer you to a reputable, reliable and consumer friendly lender.

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Midtown Montgomery Real Estate Market Report

Friday, March 16, 2007
by The Hat Team
Buyers It's Time To Buy!

FreddieMac.com reports interest rates have been inching down for the past three weeks. This is icing on the cake for Midtown Montgomery home buyers who are benefiting from a moderately slower housing market. Sellers haven't been left out in the cold, however, as prices continue to rise. Take a look at the numbers. 

The number of single family homes in Midtown Montgomery (Midtown consists of neighborhoods south of I-85 between Exits 1 and 6) that sold in February increased by 8 or 20%!  And the number of pending listings decreased by only 3 homes or less than 2%. 

What's more, February 2007 saw market times of 169 days vs. 188 days in February 2006.  So demand is increasing along with prices. And average sales prices increased $24,140 or a whopping 17%. So it appears 2007 is well on its way to being another great year for Midtown.  

Midtown
Montgomery

Pending
Listings

Sold
Listings

Average
Market Times

Average
Sales Price

February 2007

46

40

169

$165,071

February 2006

49

32

188

$140,931

Sellers are becoming more comptetitive in their pricing to attract today's ready, willing, and able buyers. Add to this the interest rates inching down...Buyers, it is time to buy!!

If you are thinking of buying a home? You can get a daily email list of new homes for sale as they hit the market by visiting EmailMontgomeryAlabamaHomes.com. It is fast, easy and FREE! 

Information is provided by the Montgomery Area Association of Realtors and is deemed accurate but not guaranteed. 

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Montgomery AL Daylight Saving Reminder

Friday, March 9, 2007
by The Hat Team

Don't Forget

1. Move clocks AHEAD one hour.
2. Reset the time on your computer.
3. Change your smoke alarm battery.

This SUNDAY, MARCH 11, 2007!

And a reminder to call The Hat Team for your Montgomery, Al real estate needs. 800-428-5239

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Borrowing Is More Difficult For Montgomery Home Buyers

Wednesday, March 7, 2007
by The Hat Team

Montgomery home buyers with poor credit are having a more difficult time qualifying for a mortgage in a changing real estate market due to sub-prime lending practices. Sub-prime lending is the loaning of money, primarily for home equity loans, to people with spotty credit or the credit challenged, shall we say.

 

Skyrocketing property values in the past few years made it easy for homeowners to borrow heavily against their homes with second mortgages and home-equity loans. But as housing prices have leveled off, overextended homeowners are now defaulting because they cannot afford higher mortgage payments and can no longer refinance.

 

Every where you look, including websites such as BankRate.com, you see information about the dramatic increase in foreclosures due to sub-prime lending. In the wake of increased foreclosures, lenders are tightening their belts and increasing loan qualification limits. The majority of sub-prime borrowers are either lower income or minority borrowers, and the stricter loan qualifications are making it tougher for them to obtain financing.

 

As these alternative credit programs (loans for credit-challenged borrowers) disappear, it becomes increasingly important that home-buyers deal with an agent whose background and training include mortgage financing techniques.  No matter how tough lenders become, they all have what is called a Community Reinvestment Act obligation to reach out to marginal borrowers. 

 

We, at The Hat Team, not only have the knowledge and experience to help you find financing for your new home, we have a network of well-qualified, reputable lenders who will do everything they can to assist you also.

 

You can learn more about us at HatTeam.com or give us a call, 800-428-5239. We are at your service!

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