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Should You Hire an Appraiser if You're Selling Your Home?

should you hire an appraiser when you're selling a house in port aransas
For most people, whether they’re selling a condo at the Mayan Princess or a luxury home on North Padre Island, it doesn’t make sense to hire an appraiser—but the question often comes up.
The bottom line is that your buyer’s lender is most likely going to require an appraisal, and an appraiser will probably not be able to tell you the information you need to price your home correctly. That means, in a nutshell, that you should save your money and talk to your Realtor® about pricing. Your Realtor will determine what your home is likely to sell for based on a comparative market analysis, or CMA.

Why Won’t an Appraisal Help You?

An appraisal is designed to show the lender whether it’s making a good investment. The appraiser will evaluate your home, but he or she is giving an estimate; this estimate helps the lender figure out whether your house will be worth enough to recoup their losses if you stop paying your monthly mortgage.

Why You Need a Comparative Market Analysis

Your Realtor will evaluate your home’s features and compare it to other, similar properties in the area. She’ll look at properties that have:

  • Sold and closed over the past 6 months
  • Active listings
  • Pending sales
  • Expired listings (homes that didn’t sell during the listing period)

Your CMA will give you a snapshot of the entire area so you can settle on the right asking price for your home.
The bottom line: Save your money and don’t hire an appraiser unless your house is truly so unique that there’s nothing nearby to compare it to.

Are You Selling Your Home in Port Aransas or North Padre Island?

If you’re selling your home, we’d love to help you do so quickly and at the right price. We’ll be happy to give you a free comparative market analysis so you know exactly how much your home is worth. While you’re here, you can also download our free home-selling eBook and read our useful tips for selling your home faster.
When you’re ready, call us at 361-563-7788 or contact us online to find out how we can help you sell your home in Port Aransas or North Padre Island.
 

Filed under: Appraisal, Blog, Selling by Julie Woodward
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What Are Contingencies in Real Estate?

what are contingencies in real estate - buy a home for sale in Port Aransas TX
Contingencies are part of many real estate transactions, and chances are pretty good that you’ve heard the term before.
But what are contingencies, and what do you do if they’re included in your real estate purchase contract?

What Are Contingencies?

Contingencies are conditions that must be met in order for you and the other party (or parties) to execute the real estate purchase contract. The final sale is contingent upon one or more parties to the transaction meeting certain criteria.
Typically, contingencies in a real estate purchase contract fall into at least one of three categories: appraisal, home inspection, or mortgage approval.

Appraisal Contingencies

Most lenders require you to have a home appraised before they’ll lend you the money to buy it. When there’s an appraisal contingency in your contract, you can get out of buying the home if the appraisal comes back lower than what you intend to pay for the home.

Home Inspection Contingencies

You have the right to have a home you intend to buy inspected by a professional home inspector. If the inspector finds something wrong with the home, you can ask the seller to fix it or you can back out of the deal, no harm done.

Mortgage Contingencies

A mortgage contingency protects you and the seller from entering into a contract when you don’t have the money to purchase the home. (That’s another reason that it’s a good idea to get a mortgage preapproval before you even begin house-shopping.)

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

You can also check out:

 
 

Filed under: Blog, Buying by Julie Woodward
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What is a Real Estate Purchase Contract?

What is a Real Estate Purchase Contract - Port Aransas Homes for Sale
When you buy a home, it all starts with a real estate purchase contract.
But what is this document, and what does it include?

What is a Real Estate Purchase Contract?

A real estate purchase contract is a legally binding, bilateral agreement between two or more parties. If you sign one, you’re saying that you have the legal capacity to make the purchase, exchange, or conveyance of “real property.” The term real property in this sense refers to land, a home, and buildings or other fixtures that you intend to buy.

What’s in a Real Estate Purchase Contract?

Your real estate purchase contract should contain:

  • Identification of everyone involved in the transaction
  • A description of the property
  • The agreed-upon purchase price
  • Details, rights, and obligations of the contract
  • Contingencies (conditions) that must be met before you can execute the contract
  • A description of the property’s condition
  • A list of what’s included with the property—and what’s not
  • How much money you’ll put down as a deposit
  • Who pays closing costs
  • How much the closing costs will be
  • A projected closing date
  • Each party’s signature

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

You can also check out:

Filed under: Blog, Buying by Julie Woodward
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3 MORE Great Reasons to Buy a Home in Port A or North Padre Island

3 MORE Great Reasons to Buy a Home in Port Aransas or North Padre Island
Our last post—3 Great Reasons to Buy a Home—was incredibly popular… and we decided to share three more great reasons to buy instead of rent.

3 MORE Great Reasons to Stop Renting and Buy a Home in Port A

Property Tax Deductions

We mentioned taxes in our last post, but only mortgage interest. You may also be able to deduct property taxes, according to IRS Publication 530. Naturally, you’ll need to consult with a tax professional if you’re going to attempt to deduct your property taxes from the amount you owe the Internal Revenue Service. (Remember, we’re not tax advisers—we’re Port Aransas real estate experts.)

Capital Gain Exclusion

If you’ve lived in the home for two out of the past five years, you may be able to exclude up to $250,000 for one person or $500,000 for a couple on your profit from capital gains.
You don’t have to buy a new home to do so (or “move up,” contrary to popular belief) in order to take advantage of capital gain exclusion, but again, you’ll want to consult with a tax professional.

You’re Always Building Equity

If you’re paying down your mortgage, you’re typically building equity in your home. Naturally, if your home is depreciating in value (it happens as part of a natural market cycle, so don’t worry too much if your value dips now and then) you won’t be building as much equity as you would if it were appreciating.
For the most part, you build equity every time you make a mortgage payment. And if you pay extra toward the principal each month, you’re building even more equity.

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

You can also check out:

 
 
 

Filed under: Blog, Buying by Julie Woodward
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3 Great Reasons to Buy a Home in Port Aransas

3 Great Reasons to Buy a Home in Port Aransas or on North Padre Island
If you’re like most people, you’re excited about buying your first home—but is home ownership really right for you?
There’s no one-size-fits-all answer about whether buying a house is the right decision (or when you should buy a house, for that matter), but here’s what most homeowners report as some of the best reasons to buy instead of rent.

3 Great Reasons to Buy a Home

While these don’t apply to every situation, these are the best reasons many of our buyer clients buy homes.

Pride in Ownership

It’s the American Dream—you grow up, get a job, and buy a house. And you should be proud to own a home; you’ve earned it.
You can also take pride in the fact that this home is yours, and you can paint it, stomp on the floor from upstairs, and do whatever else you’d like in it.

Real Estate Tends to Appreciate

In addition to providing you with shelter, your home is likely to appreciate. Most real estate investments—and that’s what a home is—grow in value over time. While some depreciate, and nearly all homes are subject to the market’s ups and downs, for the most part, buying real estate can be a great investment.

Deductions for Mortgage Interest

When you pay interest on your mortgage loan, you may be able to deduct it from your taxes. The IRS requires that your mortgage balance be lower than how much your home is worth, but to be sure, you should consult with a tax professional before attempting to write off the amounts you’ve paid.

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

You can also check out:

 
 

Filed under: Blog, Buying by Julie Woodward
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Let's Talk About FICO Scores

FICO Scores and Buying a Home in Port Aransas or North Padre Island
Your FICO scores affect your interest rate when you’re buying a home (and contrary to popular belief, you can buy a home after a foreclosure or bankruptcy if you work to improve your credit).

What Are FICO Scores?

Your FICO score is a type of credit score created by the Fair Isaac Corporation. Lenders use your FICO score to find out whether you’re a big risk (and whether they’re willing to take that risk on you).

What’s a Good Credit Score?

Credit is scored on a big scale ranging from 300 to 850. The higher the number, the better your credit.
According to The Balance, here’s the breakdown on what interest rates you may qualify for based on your FICO credit score, assuming that you have a 10 percent down payment and meet all the lender’s other requirements:

  • FICO Score of 600 to 640: + 1.625 percent over prevailing rate. This means if a borrower with good credit is paying 5.875 percent, your interest rate would be 7.5 percent.
    A $200,000 amortized loan at 7.5 percent would give you a monthly payment of $1,398.
  • FICO Score of 560 to 580: +2.875 percent over prevailing rate. This means if a borrower with good credit is paying 5.875 percent, your interest rate would be 8.75 percent.
    A $200,000 amortized loan at 8.75 percent would give you a monthly payment of $1,573.
  • FICO Score of 540 to 559: +3.425 percent over prevailing rate. This means if a borrower with good credit is paying 5.875 percent, your interest rate would be 9.3 percent.
    A $200,000 amortized loan at 9.3 percent would give you a monthly payment of $1,653.
  • FICO Score Under 540 to 500: +3.875 percent over prevailing rate. This means if a borrower with good credit is paying 5.875 percent, your interest rate would be 9.75 percent.
    A $200,000 amortized loan at 9.75 percent would give you a monthly payment of $1,718.
  • FICO Score Under 500: +6.25 percent over prevailing rate. This means if a borrower with good credit is paying 5.875 percent, your interest rate would be 12 percent. With a FICO of less than 500, you will not qualify for a 90 percent loan, but you may qualify for a 65 percent loan, therefore, you need to increase your down payment from 10 percent to 35 percent.
    A $200,000 amortized loan at 12 percent would give you a monthly payment of $2,057.

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

You can also check out:

 
 

Filed under: Blog, Buying, Credit Scoring by Julie Woodward
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How to Improve Bad Credit So You Can Get a Mortgage Loan

How to Improve Your Credit So You Can Get a Mortgage - Port Aransas Homes for Sale
If you’re like most people, your credit could use a little “brushing up” before you apply for a loan.
That’s perfectly normal, and you’re thinking along the right lines: the better your credit score, the easier it will be to get a good interest rate and more favorable terms from your lender. While this isn’t financial advice (you should talk to a financial adviser for that), it can give you hope when you’re working toward buying your own piece of the American Dream.

Bad Credit and Applying for a Loan

Having bad credit doesn’t disqualify you from getting a loan, but it can hurt your chances. It can also make it harder to get agreeable terms on a loan.
So what should you do?
Talk to a broker who focuses on helping people in situations similar to yours. There are a number of mortgage brokers who specialize in working with people who have bad credit, and your Port Aransas Realtor® may even be able to refer you to a local expert.

What Your Broker May Advise

Your mortgage broker may advise you to take a few steps to improve your credit, including:

  • Opening a line of credit with a major credit card company. While you don’t need to start with a high limit, the key is getting a card and making timely payments on your account. This shows lenders that you’re responsible with your debt and that you’re “good for it.”
  • Showing steady employment. When you’ve worked in the same place for a year or more, you’re showing lenders that you’re responsible, too.
  • Save up at least 10 percent toward a down payment. If you’re willing to contribute to a home you want to buy, lenders can see that you’re committed and may be more likely to want to work with you.

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

You can also check out:

 
 
 

Filed under: Blog, Buying, Credit Scoring by Julie Woodward
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Can You Buy a Home After Foreclosure or Bankruptcy?

can you buy a home with bad credit - port aransas homes for sale
If you really want to buy a home but your credit score is holding you back, there’s good news: you may be able to buy a home in Port Aransas with bad credit.

The Bottom Line on Credit

This isn’t financial advice—we’re not financial advisers. However, you may be relieved to find out that even if you’ve had a bankruptcy or foreclosure, you may not be automatically disqualified from buying a home in Port Aransas.

How is Buying a Home With Bad Credit Different From Buying With Good Credit?

You can buy a home with bad credit, but you’ll most likely pay more than a borrower who has a high credit score will.
Lenders are in business to make money, and they can’t do that without assuming a certain amount of risk. While some buyers need to do major work on their credit reports in order to qualify for great rates, the truth is that many buyers who think they won’t qualify for a mortgage actually will.

After a Foreclosure or Bankruptcy: What You Need to Know

If you’ve had a foreclosure or a bankruptcy, here’s what you need to know:

  • A bankruptcy can stay on your credit report for up to a decade.
  • You’re more likely to get better rates and more favorable terms if you wait about four years after filing for bankruptcy before applying for a mortgage.
  • FHA guidelines only require that you wait two years after a foreclosure, and with an FHA loan, you could put as little as 3.5 percent down on a home.
  • FHA guidelines only require that you wait three years after a short sale.

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

You can also check out:

 
 

Filed under: Blog, Buying by Julie Woodward
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3 Things to Know Before You Make an Offer on a Port Aransas Home

3 Things to Know Before You Make an Offer on a House in Port Aransas
When you’re searching for Port Aransas homes for sale, especially if you’ve been to see your favorites, you’re warming up to actually making an offer.
But are you ready to do that?
Many people are so excited to dive into home ownership that they’re ready to make an offer immediately. While that’s great, you need to know a few things before you jump in with both feet.

3 Things to Know Before You Make an Offer

Your Realtor’s® job is to make sure you’re getting the best possible price on a home, and part of that includes doing plenty of market research.
Before you make an offer on any home, sit down and talk about your options with your Realtor.
Some of the things your agent is going to review so you can make the best possible decision include:

  • How much the seller paid
  • Why the seller is selling
  • What the last 6 months have looked like as far as sales

How Much the Seller Paid

You may not know exactly how much the seller paid for the home (and in some cases, it doesn’t matter)—but if the sale was recent enough, it may make a difference in how much you offer for the house.

Why the Seller is Selling

If the home’s current owners are in a big rush to move, whether it’s because of a corporate relocation or something else, you may be able to adjust your offer accordingly.

What the Past 6 Months on the Port Aransas Real Estate Market Have Looked Like

Your Realtor’s job is to keep tabs on the Port Aransas real estate market, so she’ll know whether homes have been selling below list price. If they have, that’s often an indicator that the seller will accept a small percentage less than what he or she is currently asking.

Are You Moving to Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
While you’re here, check out our:

 

Filed under: Blog, Buying by Julie Woodward
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What Happens at Closing?

What Happens at Closing When You Buy a Home in Port Aransas, TX?
When you’re looking at Port Aransas homes for sale, the final step—closing—is never far from your mind. That’s the big day; the day you’ll get the keys to your next home.
But what, exactly, happens at closing?
Your Realtor® will be there with you, and so will a handful of other people.
Here’s the breakdown of what happens.

What Happens at Closing?

The day you sign the final paperwork that outlines your ownership of the home you’re buying is called closing day. You’ll sit at the closing table (it’s really just a table where we close real estate transactions) and sign your name to dozens of documents.
There will be plenty of documents for you to sign, too. You’ll have financial documents, disclosures, title agreements… you name it, and you’re signing it on closing day.

What Happens After You Sign All the Papers?

After you sign all the paperwork your Realtor puts in front of you, those documents need to go to your lender. Typically, whomever is in charge on closing day will handle faxing or scanning these documents to your lender (and the seller’s lender, if there is one).
In many cases, your signature is required on all these documents before your lender will actually fund the loan and give the seller his or her money. In some cases, the funds are already waiting and the lender just needs a final confirmation that everything went through according to plan.
After everyone has all the documentation they need, your loan is funded… and you’re a homeowner.

Are You Buying a Home or Condo in Port Aransas?

Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
In the meantime, you might find these links helpful:

 
 

Filed under: Blog, Buying by Julie Woodward
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