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Bronx, NY

Does It May Sense for Bronx Residents to Pay Full Commission in This Market?

03-07-12
Rummy Dhanoa
Rummy Dhanoa: Real Estate Brokerage in Bronx, NY

Does It May Sense for Bronx Residents to Pay Full Commission in This Market?

Should Westchester Home Owners Pay Full Commission In Today's Market?

Does it makes sense to pay a full commission to your real estate agent in today’s market? Sellers, buyers and even agents are debating what should be charged to assist a consumer in completing a real estate transaction. Forget what the actual amount of the commission is. The bigger question is whether you should pay a ‘full fee’ when hiring a real estate expert to guide you through the complexities of today’s rapidly changing housing environment.

If a full fee was the rule in 2006 when completing a deal was so much simpler, why would you now consider cutting the fee of your agent in today’s tumultuous market? You are depending on this person to help you reach your goals in a sale or purchase. In 2006, buyers were willing to pay almost anything to a seller just to get into a home. Banking entities seemed to be willing to mortgage any property for any buyer. The process was rather simple.

Today, a person looking to buy or sell should be willing to pay a full fee for two reasons:

You need an expert guide if you are traveling a dangerous path

The field of real estate is loaded with land mines. You need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a buyer willing to pay fair market value for your home at a time that there are mass inventories of foreclosures and short sales will take a true real estate professional. Finding reasonable financing can also be tricky in today’s lending environment.

Experts in any profession do not discount their fees; especially when the job is becoming much more difficult.

You need a skilled negotiator

In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible re-negotiation of that off after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.

When an agent is negotiating their commission with you, they are negotiating their own salary – the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family? If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal.

Bottom Line

We believe that famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.

The Sales Team of Rummy Dhanoa

www.RummyRealEstate.com

www.FreeNYHomeSearch.com

HUD Is Increasing Cost Effective April 2012

03-01-12
Rummy Dhanoa
Rummy Dhanoa: Real Estate Brokerage in Bronx, NY

HUD Is Increasing Cost Effective April 2012

This is a BIG DEAL for The NY Real Estate Market

In a move to increase their financial standing (and to get the FHA back into required capital requirements), on Monday, HUD announced their anticipated increases in the premiums they charge borrowers. Simply stated, the cost of borrowing is going up.

FHA loans, by design, are more liberal in their underwriting guidelines than most conventional loan products (in terms of credit, income ratios, required investment from the borrower, and maximum loan amount). HUD is not a lender. Rather, it is a federally-insured insurance company. They insure lenders against default on loans underwritten in compliance with their published guidelines. It is because of this insurance that lenders approve and close loans with more liberal guidelines.

As an insurance company, HUD charges two types of premiums on the FHA mortgages:

  • The UFMIP (Up Front Mortgage Insurance Premium) will be raised effective April 1, 2012 from its current 1% to 1.75%. One advantage to the UFMIP is the fact that it is typically built into the loan amount and does not require additional cash outlay at closing. However, the increase in loan amount does impact monthly payment and cash flow.
  • The MMIP (Monthly Mortgage Insurance Premium) will be raised 10 basis points on April 1, 2012 to cover the requirements of the payroll tax extension approved last year. This is a direct increase of 10 basis points in the borrower’s mortgage payment, and has the effect of a 10 basis point increase in interest rates. As a kicker, loans over $625,000 will be bumped 35 basis points from today’s levels effective June 1, 2012. This bump is substantial, as you can see in the chart below.

On a loan amount of $300,000, we are seeing an increased payment of $36.41, which doesn’t sound too bad. However, we know that home buyers buy homes comparing what their monthly payment will be after they close. This hike in payment is equivalent to borrowing an additional $7000. Starting next month, it’s as if the home became $7000 more expensive. What is the result? Buyers are going to have to pay more OR they’re going to have to offer less to the seller (to maintain the same mortgage payment they were comfortable with today). A $7000 lower offer is like another 2.5% decline of home prices. Not good for anyone.

Advice:

Sellers, price correctly and get into contract in March.

Buyers, today is the cheapest mortgage you are likely to see in your lifetime (all things considered)! Get off the fence and buy NOW!

P.S. – Rumors are strong that FHA is looking to reduce the allowable sellers’ concession from 6% to 3% in April as well. This move will have a huge impact on how much cash will be needed to buy (especially in places like NY with the NYS Mortgage Tax). Hurry—get in the game!

The Sales Team of Rummy Dhanoa

INVESTOR'S WORKSHOP-WESTCHESTER, NY

01-16-12
Rummy Dhanoa
Rummy Dhanoa: Real Estate Brokerage in Bronx, NY

THE SALES TEAM OF RUMMY DHANOA WOULD LIKE TO INVITE YOU TO OUR INVESTOR'S WORKSHOP:

http://youtu.be/nwSW_seVvAk

PLEASE R.S.V.P. BY JANUARY 21ST - SEATING IS LIMITED

CALL 914-902-3252 or go to www.RealEstateWorkshop.Info

www.FreeNYHomeSeach.com

www.RummyRealEstate.com

Mortgage Market News - Week Ending Jan 6. 2012

01-09-12
Rummy Dhanoa
Rummy Dhanoa: Real Estate Brokerage in Bronx, NY


Unemployment Rate Falls

During the first week of the new year, mortgage rates continued to be influenced by the same factors as in 2011. Stronger than expected US economic data roughly offset continued concerns about Europe, and mortgage rates ended the week nearly unchanged.

Friday's Employment report provided further support that the US economy is gaining strength to begin the new year. Against a consensus forecast of 150K, the economy added 200K jobs in December. The Unemployment Rate unexpectedly fell to 8.5%, the lowest level since February 2009, from 8.7% in November. The decline was partly due to the increase in jobs and partly due to people dropping out of the labor force. Average Hourly Earnings, a proxy for wage growth, increased 2.1% from one year ago. This was an encouraging report in nearly every area.

While prospects in the US appear to be picking up, signs of improvement in Europe have been frustratingly slow to emerge. Bond yields in troubled countries remained at elevated levels, and European banks had to pay higher than expected costs to raise additional capital. Investors are still demanding very large premiums to lend money to European countries which are considered risky, making recovery efforts even more costly. Relatively safer assets, such as US mortgage-backed securities (MBS), continued to benefit this week from the lack of progress in Europe.


Also Notable:

  • The ISM Manufacturing index rose to the highest level since June
  • The value of the euro relative to the US dollar fell to the lowest level since September 2010
  • Tensions with Iran pushed oil prices up to $103 per barrel, the highest level since May
  • The Treasury will auction $66 billion in 3-yr, 10-yr, and 30-yr securities next week

Average 30 yr fixed rate:

Last week:

-0.03%

This week:

0.00%

Stocks (weekly):

Dow:

12,400

+200

NASDAQ:

2,675

+75

Week Ahead

Next week, the Fed's Beige Book will come out on Wednesday. Retail Sales will be released on Thursday. Retail Sales account for about 70% of economic activity. Import Prices, the Trade Balance, and Consumer Sentiment will come out on Friday. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday.


www.FreeNYHomeSearch.com

www.RummyRealEstate.com

New Year, New Start-Evictions Made Simple

12-19-11
Rummy Dhanoa
Rummy Dhanoa: Real Estate Brokerage in Bronx, NY

With tenants and rental property, chances are you'll have to evict a tenant sooner or later either because the tenant hasn't paid his rent or because strange people keep visiting him at odd hours of the night. Whatever the reason, the tenant hasn't lived up to the terms of the lease agreement and you want him out. The question is, how do you go about evicting him?

First and foremost, remember that the laws in your state may require different procedures than the general advice in this post, so get familiar with the rules in your area and get yourself a good lawyer - preferably one that specializes in landlord/tenant disputes.

With the legal disclaimer stuff out of the way, let's look at some general eviction steps that apply in many states. As the real estate law section of FreeAdvice.com says: "The process of eviction is a very fast one compared to other kinds of legal actions. The trade off is that the landlord must do everything exactly right."

Step 1: Give notice - The very first step is to give the tenant notice. This notice can take many forms.

a. Nonpayment of rent - If the tenant has breached the lease provision that talks about paying rent on time, you'll typically send a "pay rent or quit" notice that says you'll begin the eviction process if the breach isn't cured within a certain number of days. That's just a fancy way of saying pay up or ship out.

b. Violation of occupancy rules - If the tenant has violated any other occupancy rules, like housing people who aren't on the lease, you may be able to send him an eviction notice under current law even if it's not explicitly called out in the lease. However, just like with past due rent, you may have to give him a specific number of days to correct the problem before proceeding with the eviction. Best bet is to check with a lawyer.

c. Unconditional notice - In some states, you can give notice of eviction for any valid reason without giving the tenant an opportunity to "cure the breach". You'll send this type of notice when you don't want the tenant to fix the problem; you just want him out. Again, check with a good lawyer to see what the laws in your state say.

Step 2: File the action in court - If you've sent the required legal notice and the tenant still hasn't fixed the problem within the specified number of days, then it's time to file an eviction action in court. Depending on where you live, filing an action can be as simple as filling out a form online or it may require a personal appearance in court. In either case, once the tenant is served, he generally has a certain number of days in which to respond before additional actions are taken.

Step 3: Fight or flight - If the tenant does not respond to the eviction action within the allotted time, then you'll receive a default judgment in your favor. If the tenant fights the action, then you're on your way to court. If you haven't found yourself a good lawyer yet, now is the time.

Step 4: Getting on with eviction - If the court rules in your favor, the next step is to contact the local Sheriff's Department to enforce the ruling. Resist the temptation to change the locks or remove the tenant's personal property. Taking matters into your own hands will almost certainly land you in trouble. Instead, let the Sheriff's Department do its job. They'll post a notice on the door and remove the tenant's belongings after waiting the appropriate period of time. That's when it's time to call the locksmith.

Make sure you know the laws in your area. It is an even better idea to have an attorney on hand to help through the process. As a landlord it is always better to be prepared for eviction situations in advance.

The Sales Team of Rummy Dhanoa

www.FreeNYHomeSearch.com

www.RummyRealEstate.com