Generally speaking an abstract is a packet or booklet containing the history of the property. Whenever a property is sold the abstract is updated or examined by an attorney after an offer has been accepted. As part of this examination process we recieve a "title opinion" which will show any liens, judgments, or property taxes owed against the property in which the seller will have to pay to satisfy clear title to the buyers. A complete updating of the abstract can take 6-12 months after the time of closing which is why it's often forgotten about, however you should be contacted when it's completed and given the option to pick it up or have it stored for you.

When you do receive the abstract for your property make sure and put it in a safe place! Most will put it in a safe or safety deposit box after they receive it. Should you ever decide to sell the property you will have to pay to have the abstract updated for the new buyer, which costs $350-550 on average. As long as you have the abstract the process is fairly simple, I will give you a receipt for it and see that it gets delivered to the abstract company. What happens if you have lost your abstract or cannot find it? Re-creating an abstract in opposed to just updating one can cost anywhere from $1,000-2,000....ouch!

Hopefully you have found this post helpful. As it is with any post, the information above is largely in part an expression of my personal opinion or thoughts. Please feel free to call or text me at 515-556-5474, email me at CharlieFazio@Remax.net or visit my website www.FazioRealEstate.com for more information.]]>Most buyers want a great deal, I get that. But in general most buyers do not take in to consideration just how much it will cost the seller, and are not familiar with the type or amount of fees a seller must face when they sell a home. Take a walk in the sellers shoes...

For example, the average buyer in our marketplace might offer $145,000 on a home priced at $150,000. The buyer will more than likely also ask the seller to pay $3,000 in closing costs, and a $420 home warranty. Sounds like a pretty fair deal right? Well, for the seller this offer is basically an offer to purchase their home for $141,580 or $8,420 off their list price. This is a common offer scenario we see in this price range, but often times our buyers do not realize that everything they are asking for must come off the sellers bottom line right now, whereas the buyer will likely be spreading their mortgage over a 30 year period of time.

Now you might say that $8,420 off the list price is not bad so what's the big deal? That reduction is only the amount in which the buyers offer is for, the seller must also pay a long list of seller fees which are in addition to the reduction of the buyers offer. The average seller fees consist of; broker fees, abstracting fees, tax proration fee, termite fee, attorney/doc prep fees, revenue stamp fee, and paying off their mortgage.

Using the above scenario as an example, the seller in this situation would be looking at having to pay approximately $13,825 in seller fees, a reduction in list price of $8,420, and then paying off their mortgage. If they accept the buyers offer they are basically selling the home for $127,755 and if they owed $130,000 on their mortgage - the seller would have to pay $2,245 out of pocket at the time of closing in order to sell.

We see this scenario quite often in our marketplace and unfortunatley sellers in this situation often think if they owe $130k on their mortgage and their home is now worth $150k, they will see close to $20k in equity come back to them. That's not the case as you can see in the breakdown. It usually comes down to how bad the seller wants or needs to sell, and the fact that when they buy their next home they will not face these fees as a buyer.

The goal of this blog entry is to shine some light on what our sellers are facing in today's market and to provide some insight to buyers who are currently considering making an offer. We all want a good deal, whether it's a house or a gallon of milk, but it's important to take in to account the total amount of fees on both sides and put ourselves in sellers shoes once in a while too...

Hopefully you have found this post helpful. As it is with any post, the information above is largely in part an expression of my personal opinion or thoughts. Please feel free to call or text me at 515-556-5474, email me at CharlieFazio@Remax.net or visit my website www.FazioRealEstate.com for more information.]]>You may have heard this before, or perhaps your Realtor is savvy and has already told you too...

A couple of easy changes that I like to recommend to my sellers are "de-clutter and de-personalize".
 
De-clutter is a popular one we hear all the time, simply put you want to relocate any extra items laying around which may make a room seem smaller, even if that means getting a storage unit.

It's important to de-personalize too. The thought behind that is when a potential buyer tours your home we want them to feel like it's home to them or basically allow them to invision themselves living there, which is much harder to do when the seller has family or personal photos plastered all over the walls.

So what does it mean to de-personalize? Take down family photos or kids art projects and replace them with warm or general art decor. This is similar to when we hear of sellers "staging" a home. You can accomplish a similar outcome on your own, for much less money.

For more tips to selling a home in today's market simply send me an email or give me call. Thanks for stopping by today and best of luck to you!

Hopefully you have found this post helpful. As it is with any post, the information above is largely in part an expression of my personal opinion or thoughts. Please feel free to call or text me at 515-556-5474, email me at CharlieFazio@Remax.net or visit my website www.FazioRealEstate.com for more information.]]>Are you one of many buyers today who have stable employment and good credit scores, but no down payment money? If so, you're not alone!

As many of you know the banks have tightened down over the past several years and often times require buyers to have their own money for down payments or more "skin in the game". This is a good thing in the sense that we got in to a lot of trouble when they were lending to under qualified buyers during the sub-prime era, but it's my opinion that they took things a step too far in some cases.

The good news is that there are still loan programs available today that offer very low to no down payment options. You will need good scores and employment, and you might be limited to certain areas of homes or subject to additional guidelines, but they are definitely worth checking out if you're considering renting instead of buying.

With today's low interest rates and a great selection of homes to choose from, you owe it to yourself to at least explore these additional lending options before throwing out the idea of buying altogether based on the lack of down payment funds.

For more information about what type of programs I am referring to and referrals to a loan officer for each program, please call or email me today.

Hopefully you have found this post helpful. As it is with any post, the information above is largely in part an expression of my personal opinion or thoughts. Please feel free to call or text me at 515-556-5474, email me at CharlieFazio@Remax.net or visit my website www.FazioRealEstate.com for more information.
]]>Hello Spring 2012! The selling season has officially kicked off and new listings have been selling very quickly over the past couple of weeks. It appears our buyers are thirsty for new listings to hit the market and when they do - they rush out to see them and write offers.

On the fence about listing right now? Get down and list! If you're listing a home here in Central Iowa right now then you should expect a fair amount of traffic within the first 2 weeks and when you get an offer make sure you do everything you can to try and work something out with that buyer.

Do not tell yourself "traffic has been great so I will get more offers very soon and I don't have to accept this offer." Once you are out of that first 2 week window chances are your number of showings will go down and you could be on the market another 3-4 months before you see the next offer. Why? Because when you first hit the market your listing was like fresh meat in the shark tank, and current buyers looking in your area jumped all over it, some didn't like it and the ones who did wrote offers, but were you flexible enough and able to get something worked out? Remember, if you loose a buyer because you were a few thousand apart on the offer, it's the same thing as paying a few thousand in interest over the next few months in your mortgage payments. once you miss out on the first 2 weeks you will be dealing with other new listings popping up, and waiting for the buyer pool to re-cycle itself.

You might say, well I see houses for sale all over the place so why aren't they selling and how is my house going to sell? Chances are the other homes you're seeing were over priced to begin with and they are now chasing the market. Trust me, if you price your home right and list with the right Realtor(such as myself), you can expect to have a shot at selling within the first 30 days. The fact is we are currently at a 5 year low for active number of listings on the market, which means buyers have less inventory to choose from and this is a major upside for sellers.

If you're thinking about listing sometime soon please give me a call today. Let's run the numbers and see how things look and I'll share my thoughts on how quickly we can expect to sell your home.

Hopefully you have found this post helpful. As it is with any post, the information above is largely in part an expression of my personal opinion or thoughts. Please feel free to call or text me at 515-556-5474, email me at CharlieFazio@Remax.net or visit my website www.FazioRealEstate.com for more information.]]>As you may have seen in local news reports lately, mortgage interest rates have increased slightly over the past week or so for the first time in a long time. The increase directly relates to the current housing market condition, which has been slowly improving since the 1st of the year.

So what does this mean for someone on the fence about buying now or waiting until later this year? It means that by the end of the year rates will likely be higher than they are now, although it's anyones guess as to how high they will be.

My suggestion is don't wait, buy now. Most new mortgages are for a 30 year term and the difference between a rate of 4.25% and 5.25% can be huge. A 1 point difference not only means your payment will be higher, but it could also reduce the price range of home you are shopping for. Lock in the low rate while it's still here!

Hopefully you have found this post helpful. As it is with any post, the information above is largely in part an expression of my personal opinion or thoughts. Please feel free to call or text me at 515-556-5474, email me at CharlieFazio@Remax.net or visit my website www.FazioRealEstate.com for more information.]]>A question I get asked a lot is; What is the difference between the assessed value and market value of my home?

The assessed value is created by the county assessors office and in general it's made up from a mathematical equation they use based on area sales prices and the basic details of the property such as square footage. The assessed value is what your property taxes will be based on. There are a lot of variables here that make up the assessed value such as whether or not the basement is finished and if it is, does the assessors office know about it? Often times homeowners will finish a basement without obtaining proper permits and do not inform the city at all. They often do this as a way to keep property taxes from increasing, although to me the trade off is not worth it for several reasons. Inaccurate assessed values can effect the average value for entire area, a non-increase for additional finish will often create a large gap between market value and assessed value, and most buyers are turned off when they know the owners did not pull proper permits. Assessed values are a good general figure to look at when trying to determine value, but should only be used as a guideline and not as a 100% accurate figure. Simply put, most of the time the assessors office has no idea if you have granite countertops and a brand new furnace, so they have to use a general formula when determining value.

Market value of a property is the most accurate number describing today's value of the property. This form of valuation is most often determined by local Realtors, as they have the most market knowledge and access to the MLS system. After doing some basic research a Realtor in your area will be able to tell you the market value of your property, or what your home is worth today. Market value will often vary year to year and at times even every 60-90 days. This type of valuation is not only based off recent property sale prices, but it is also based off particular features or upgrades of other homes, time on market until sold, season of the year, and so on. If you're like me you are probably pretty proud of your home, so don't be surprised if the market value of your home comes in a little lower then you thought it would. Market value is market value. It might be the same as it was 5 years ago, but don't get discouraged. This just means if you sell today here is what you can expect to get, but also keep in mind that the home you are looking to purchase has more then likely not seen an increase in value over the past 5 years either, which helps balance things out. Many times when the market value comes in lower then the owner expected I hear, "Well I'll just wait for the market to recover 1-2 years from now." Your market value might go up in 1-2 years, but so will the market value of the home you want to purchase, which cancels out the logic in waiting. Make sense?

If you live here in Central Iowa and are considering selling your home but would like to know the market value first, call or email me today and find out how you can get a FREE market analysis of your home!

Hopefully you have found this post helpful. As it is with any post, the information above is largely in part an expression of my personal opinion or thoughts. Please feel free to call or text me at 515-556-5474, email me at CharlieFazio@Remax.netor visit my website www.FazioRealEstate.comfor more information.
]]>New reports out show the current level of active listings in Central Iowa are at a 5 year low. So what does this mean for local buyers and sellers?

For sellers this means now is a great time to list your home on the market. Over the past few years our market has been saturated with listings, creating a buyers market, whereas now we have seen things start to shift back the other way. Spring is a prime-time to list in any given year, but now when you add the fact that there are fewer listings on the market it makes it even better!

For buyers this means there are fewer homes on the market to choose from, but don't let that discourage you from buying. Interest rates are still super low and there a wide variety of great loans out there to choose from. In addition to great financing options there are some pretty amazing homes currently on the market and you can expect there to be even more as we kick off the Spring season! For more information about financing options and programs available ask me about my preferred loan officer.

If you're a buyer and just getting started with your search, contact me today and find out more about today's buying process and learn how it's free for you to work with me! If you're a seller and would like a free market analysis on your home, simply call or email me today to schedule a FREE-no obligation appointment where we can further discuss our options.

Hopefully you have found this post helpful. As it is with any post, the information above is an expression of my personal opinion or thoughts. Please feel free to call or text me at 515-556-5474, email me at CharlieFazio@Remax.net or visit my website http://www.FazioRealEstate.com  for more information.]]>We all know there are several foreclosure listings on the market, but what does it mean when they say "water will not be turned on, we recommend an air pressure test" in the listing description?

When a bank has taken a property back through foreclosure one of the first things they will do is winterize the property. This is a process involving shutting the water off at the meter, disconnecting the water meter, draining the hot water heater and water lines, and flushing the lines with a solution similar to the antifreeze we would use in a car. They do this for a number of reasons but primarily it's because the property will not be occupied and they do not have knowledge of the current plumbing condition, nor do they want any further damage done due to frozen pipes, etc.

If you're like most buyers you will want to know what to expect in terms of repairs or out of pocket expenses when buying any home, especially a foreclosed or bank owned property. The best way to test the plumbing system when the water is turned off is to have an "air pressure test" done by a local plumber or home inspector. The fee for this will vary depending on who you have do it, but on average it runs right around $100.

The test itself involves attaching an air device such as a small compressor with a gauge on it to the open end of the pipe closest to the water meter. This will force air through the water lines of the property and help you determine whether or not there are any breaks in the lines or not. The plumber or inspector will look to see if the lines hold air at a steady pressure, or if they do not hold pressure it will allow them to listen and look for potential areas where a break may have occurred.

So, when you see a listing description that mentions "air pressure test" you will know that the water has been shut off and the only way to determine the condition of the water lines is to have this test done.

Hopefully you have found this post helpful. As it is with any post, the information above is an expression of my personal opinion or thoughts. Please feel free to call or text me at 515-556-5474, email me at CharlieFazio@Remax.net or visit my website www.FazioRealEstate.comfor more information.]]>Whether you're just starting to think about selling your home or if you are a seller out there with home that has been on the market for a while now, you may feel your home will never sell, but trust me it will - it's just a matter of time. Just about every area around central Iowa has had their share of foreclosures or short sales and in some cases you just have to wait for those to disappear from the market in order for yours to sell in that particular area. The good news is that they are starting to disappear!

One of the most important factors to keep in mind when selling a home is the list price. If you are serious about selling you have to make sure you are priced according to today's market value of your home. From 2003-2005 home values were up and it was more of a "sellers market". From 2006-now it's been more of a buyers market, which as a seller it means having to adjust your mentality a bit. You may have bought your current home during the sellers market, and now as a seller in a "buyers market" expect to get more then what you paid for it, however it's highly likely that this will not happen.

Sure you could hold off from selling and wait for the market to turn the other way, but you have to look at your reasons for wanting to sell and determine if its worth waiting or not. Is holding off for a couple of years worth it if you need a bigger house or a different school district now? How much will you be spending on interest in your monthly payments over those couple of years? Depending on your payment amount and interest rate, you might spend $15,000-25,000 in those two years just in interest, and chances are you will not get that much more for your home if you were to sell it then anyway. Also keep in mind that if you sell now for a bit less, you should also get your next home for a bit less as well which creates a balancing effect.

The amount we spend on interest each month brings up another good debate when it comes to the initial list price of your home. There are a lot of very proud home owners out there that when given a market analysis of their home feel like it's automatically worth the highest amount. That's not always the best way to look at it. If for example you feel your home is worth $150,000 and as your agent I tell you it will take 6-9 months to sell somewhere close to that amount, but if you list it at $144,900 right now you have a good shot at selling within the first 3 months, what would you say to that? At first glance you might think it's worth waiting an extra 6 months to get a few thousand more, but when you consider the amount you will be spending on interest during that time you might be surprised to see where the numbers come out at.

The best advice I can give any seller in todays market is to price your home right from the beginning. Otherwise you will likely miss out on potential buyers in your area if you are priced too high, and by the time you reduce the price the buyer pool in that particualr area might be a lot smaller, plus you will have been on the market a longer time, which raises a red flag to buyers anyway. Folks in the industry call this way of holding out for more and reducing later "chasing the market".

Hopefully you have found this post helpful. As it is with any post, the information above is largely in part an expression of my personal opinion or thoughts. Please feel free to call or text me at 515-556-5474, email me at CharlieFazio@Remax.netor visit my website www.FazioRealEstate.comfor more information.
]]>Lately the most asked question I've been getting from both buyers and sellers is the same, what incentives are out there for buyers right now, and is it still a good time to buy? Buyers ask this for obvious reasons, as they are looking to get as many benefits as they can during the buying process. Sellers ask this question because they are trying to decide if now is a good time to list their home for sale, and they want to get an idea of whether or not there are still any buyers out there!

As many of you know over the past couple of years there have been a variety of incentives out there in our marketplace. These credits have ranged from first time buyer tax credits, existing home owner tax credits, energy or "green" savings, and builder discounts/upgrades. Along with these incentives there have also been other very appealing incentives such as; a great selection of homes to choose from, competitive pricing on homes, and falling interest rates.

The tax credit incentives ended on April 30th of this year, however this was not the end of buying and selling for the year, as some had thought it would be. Yes the month of May and part of June were very slow, but by mid June activity in our market started to increase again and has remained fairly steady since then. Bottom line is that there are still sellers who need to sell for 101 different reasons, and there are still new buyers popping up all of the time.

The answer to the big question of whether or not it's still a good time to buy is - YES. The biggest reason being that interest rates remain at historical lows and depending on an individuals mortgage qualifications, a locked rate between 3.75-4.75% is very attainable on a 15yr or 30 yr loan. Rates this low open a lot of doors for both buyers and sellers. Buyers who may have only been able to afford a house at the $100k mark with a 5.75% rate a couple of years ago, can now afford to get a lot more home for the money with the interest rates as low as they are. This also means that sellers in all price ranges will potentially benefit from having a larger buyer pool. In addition to great rates, there is still an amazing selection of homes out there just waiting to be gobbled up by buyers.

Hopefully you have found this post helpful. As it is with any post, the information here is largely in part an expression of my own opinions or thoughts based on my experience as a local real estate professional. Please feel free to call or text me at 515-556-5474 or email me at CharlieFazio@Remax.net, and lastly you can always get more information by visiting my website at www.FazioRealEstate.com
]]>Maybe you just finished college, and started a new career. Maybe you recently became engaged or married. You may have just decided you would rather your monthly payments go towards building equity instead of paying rent. No matter what your situation is, or whatever it is that brought you to this point, I would like to say congratulations to you!

Making the decision to purchase that first home is a big one, and it's very exciting too! In order for things to go the way you would like, and for you to ultimately be happy with the experience, you need to make sure you enlist a group of professionals who will put your interests first.

The very first step you should take after deciding you are ready to purchase your first home is to obtain financing. Do this BEFORE looking to see what homes are available! Why? The worst thing that can happen is that you would find a home you absolutely love, or a price range you feel good about, only to find out you do not qualify for that amount or the monthly payments are going to be too high for your budget. Obtaining financing not only tells you whether or not you are approved, but it also gives you an idea of what your monthly payment will be in a certain price range. These are two key factors in which you want to have squared away before beginning your search. Trust me, you will feel much better knowing where the numbers need to be!

Choosing a lender can be challenging as there are so many out there. It's always good to check with family members or friends and see who they have used in the past, and whether or not they can refer someone to you. You might also talk with a banker at the bank you currently are a member with. Another very popular option is to ask your Realtor who they recommend if you have began working with a Realtor at this point. Often times local area Realtors have established relationships with a particular lender or two, and in some cases can offer you a discounted financing option.

Once you have financing lined up, it's time to begin house hunting! Please feel free to call, text, or email me if you have any questions at all. For additional information please visit my website at www.FazioRealEstate.com ]]>