Real Estate Blog

The St. Petersburg Times has some excellent home buying tips in today’s edition. Here’s tip No. 1:

1. DO YOUR HOMEWORK. Before you wade into the world of home purchasing, access the wealth of information that’s available free of charge on the Internet.

There’s a wealth of information right here at Tampa Bay’s Inside Real Estate Journal, plus links to other important information sources from around the Web. Here are some other great tips from the article:

2. SHOP FOR A MORTGAGE FIRST. The process of getting a preapproval letter from a mortgage lender will reveal how much house you can afford and give you an edge as you look at homes.

3. WORK WITH A BUYER’S AGENT. It’s important to have someone representing your interests alone. Otherwise, you could end up showing all your cards to a listing agent who actually represents the seller.

4. BE ON THE LOOKOUT FOR “INCURABLE DEFECTS.’ Even if you find a house in a good neighborhood, is it right next to a shopping center or a noisy street? Will parking always be a struggle? Does the house have an attractive exterior but an interior floor plan that makes no sense at all?

5. CHOOSE A HOUSE THAT FITS. It may sound obvious, but the house should match the way you live. For instance, maybe you’d never, ever use that formal living room and dining room, or the enormous carport that got touted as such a bonus feature at the open house.

6. CHECK THE BUILDER’S REPUTATION. If you’re buying a new home, chat with people who live in other homes done by that builder. Ask them what they like and don’t like about their homes.

7. ASK FOR AN ANALYSIS. Before you make an offer on a house, ask your buyer’s agent to prepare a comparative market analysis, which shows the actual sales prices of comparable homes that recently sold in the neighborhood, as well as asking prices of similar homes that are for sale.

8. PAY FOR AN INSPECTION. A professional inspection should include a visual examination of general structure; central cooling; central heating; plumbing; bathrooms; laundry; electrical; common safety devices; kitchen and appliances; general interior; attic; insulation; ventilation; roof; exterior; grounds; and parking. Most inspectors charge extra for radon testing and termite, well and septic inspections.

9. EXERCISE PATIENCE. Don’t be in such a hurry that you fail to research an area’s home sales market - an especially common pitfall for out-of-town home buyers relocating for a new job. Learn about crime rates, school district quality and alternatives to the neighborhood you’re considering.

10. BUT DON’T DALLY TOO MUCH. If you sit on your hands for too long hoping to score a better price or interest rate, or if nerves are preventing you from buying a home even if you can afford one, you could miss your window to buy at all and lose out on tax deductions and the opportunity to build equity.

One last tip: Contact me now so I can help you find the perfect home or condo!

-John Mudd

“Mr. Real Estate”

According to Robert Trigaux’s column in today’s St. Petersburg Times, 63 percent of mortgages originated during the second half of last year were interest-only mortgages. I shared what I’m seeing as far as mortgages are concerned:

John Mudd, who sells homes and condos along the Pinellas County beaches for Exit Realty Suncoast, considers the interest-only mortgage “the most popular one for first-time buyers, primarily because it makes payments the most affordable for the first five years.” Most first-timers expect to buy something else within the next five years, he said.

The column also notes that a large number of homebuyers used interest-only mortgages during the 1920s housing boom, but noted that they disappeared during the Great Depression. What’s my advice for homebuyers? Get a 30-year fixed or 40-year fixed rate mortgage. It’s not that much more a month, and if you do keep your home for more than five years your payments won’t increase dramatically due to increased mortgage rates. Both the 3-year adjustable rate mortgage (ARM) and 5-year ARM look attractive now, but they may not be attractive in the next three or five years.

-John Mudd

“Mr. Real Estate”

Daniel H. Mudd was recently named President and CEO of Fannie Mae. Now, to answer all the questions I’ve received regarding his appointment:

(1) No, he’s not my dad, or my uncle.

(2) Yes, he is a distant relative, as the Mudd family, as it exists in America today, is heir to Thomas Mudd, who arrived from England with the Third Lord of Baltimore in the 1600s.

You can read all about Daniel H. Mudd’s appointment as President and CEO of Fannie Mae at RISMedia’s Real Estate News.

-John Mudd

“Mr. Real Estate”