Buyers: Price Reduction Not Always a Red Flag

Several years ago, a home listed for sale developed a stigma if it didn’t sell within a month or two. Today, many sellers have homes listed that have been on the market for six months or longer. In fact, it’s so commonplace for it to take a significant time to sell a house that it is no longer a disgrace if a listing doesn’t sell right away.

It’s an irony of the current market that with all the homes offered for sale, many serious buyers can’t find a home to buy. There are often certain types of homes, in certain areas, that just aren’t on the market. These are usually prime properties in excellent condition that have broad-based appeal. When these listings come on the market, they are usually snapped up quickly, despite the otherwise slow housing market.

Many buyers are sitting on the fence at this point, watching the market and waiting for a better time to buy. It’s impossible to time the housing market, so you won’t know precisely when the market will next correct until that correction has already occurred. A market correction can be verified only through hindsight.

Although most buyers feel more comfortable buying in a hot market — even though it may mean paying more — there are some buyers who see a slow market as a good buying opportunity. If you are one of these buyers and you’re having difficulty finding a home to buy, consider the following options.

 

HOUSE HUNTING TIP: Get to know the inventory of homes available in your target area. Some of these listings will never work for you, either because they aren’t large enough or because they have defects you might not be able to live with, like a lot of stairs to the front door. You can drop these listings from your radar.

Find an agent who specializes locally and who will keep you well informed on local market conditions. Ask your agent to sign you up for a listing alert program that will send you information directly from the multiple listing service when new listings come on the market or when the status of a listing changes.

Of particular interest are listings that are back on the market, and ones that have had a price reduction. If a house that’s back on the market is one you were interested in, find out why the deal fell apart. In the past, it was commonly assumed that if a transaction failed it was due to inspection-related issues, not financing. Today, we’re seeing more transactions fall apart because the buyers were unable to secure financing. A seller who just lost a deal because the buyer couldn’t perform could be receptive to a reasonable offer from a better-qualified buyer.

Don’t assume there’s something wrong with the house if it’s back on the market, or if it has been unsold and on the market for a long time. In a changing market, it’s often difficult to select a list price that will bring about a speedy sale. Keep an open mind about listings that have had price reductions. These could have been mispriced to begin with. If the sellers are motivated, they will reduce the price until it is in line with the market.

Some unsold listings haven’t moved because they need too much work. In today’s market, the most salable listings are those that are in move-in condition. Properties that need work should be priced to account for the work that will need to be done.

 

THE CLOSING: Fixer homes may be more difficult to sell in the current market. But, at the right price, a buyer with vision will step up to the plate.

To learn more go to www.phillyrealestateinformation.com

Fitting Into Your New Neighborhood

Here’s some advice on making a new city feel like your hometown

Congrats! You’ve found a new place to live. The next step is turning your new town into your hometown. How do you connect and feel at home in your new community? How can you find a place to “belong”? The road to easy acclimation will depend on three main things:

• What you value most;
• What your local community has to offer;
• What the greater area has to offer.

 

Over the years I’ve lived in a variety of places: a tiny apartment two blocks from the beach in Southern Delaware, a quiet apartment in the middle of New York, and a townhome 20 minutes walking distance to downtown Philadelphia, PA.

Here’s how to acclimated to each new place.

Southern Delaware

The ocean reigns in Southern Delaware, explaining my “two blocks from the beach” location. After driving on the freeway all day for my sales job, I wanted to be able to park my car at the end of the day and walk or ride my bike everywhere. Living in a small beach community in Bethany Beach allowed me this luxury. Taking sailing classes through a community college and the Learning Annex helped me connect with fun, like-minded people in my neighborhood as did attending nearby church services and events.

Jogging on the boardwalk that snaked 3 miles along the ocean to the Navy lighthouse was a way to meet fellow joggers and neighbors. I also frequented a fantastic seafood bar for good music and wine on a Friday night, and I stopped in at a neighborhood cafe for cappuccino and muffins on a Sunday, where I’d interact with folks.

New York

I moved to New York without knowing a soul and spent my first year living in a quirky apartment house with 80 tenants from all walks of life as my neighbors. These Tenants ranged in age from 18 to 85. This incredibly rich experience helped me make friends quickly, leading to volunteer and career opportunities. Soon, I landed an ideal apartment in the Japatown neighborhood.

From day one, I asked myself, “Who do I want to connect with, and what do I enjoy doing or learning? This led me to join my grad school alumni group, take self defense classes and learn massage techniques. I looked in the paper for fun events, like the neighborhood block parties around the city. I ran in the “Bay to Breakers” race and jogged through the city streets, stopping at a smoothie place for a shake. I’d walk instead of taking the bus, and I spent time in my “hood,” whether sitting at an outdoor cafe or hanging out in the park.

Philadelphia, PA

After I relocated to Philadelphia, caring colleagues took me under their wing, introducing me to their friends and hangouts. I gathered information on local events at the Visitors Information Center, took a trolley tour through neighborhoods, and rented before buying to get a feel of what part of town felt most like home.

Through joining the Chamber of Commerce, Business Networking International, Toastmasters and the Philadelphia Track Club, it was easy for me to get connected. I also joined a book club, which I’m still part of, 5 1/2 years later. Last, I took classes at a community college. Through friends, community newspapers and bulletin boards found at coffee shops and organic food stores around town, I keep up on the latest changes in my area.

In my experience, to feel at home anywhere, it’s important to connect with your community and find “your people.” Whether this means joining a ski or chess club, inviting a neighbor over for coffee, or volunteering with Meals on Wheels or at hospice, it’s up to you. The key is simply to take the first step of reaching out. If you find that one activity doesn’t energize you, try something else, until you find your niche.

To learn more go to www.phillyrealestateinformation.com

Real Estate Marketing

Your home should be listed, whenever possible, in the local Multiple Listing Service (MLS) and on other websites, which have a huge online database of homes and virtually 100% of potential buyers who look for property on the Internet.

 

Advertising

The largest expense for a real estate agent has traditionally been classified advertising in local newspapers. However, today properties are also exposed through popular Internet home search/listing services and real estate guides.  Utilizing print advertising together with maximum internet exposure is critical to a successful marketing campaign.

Even with these additional advertising venues, a real estate “For Sale” sign on the front lawn are still remarkably effective. Many realtors use brochure boxes along with these signs to market the property. When appropriate, and with your permission, your agent may send a mailing about your property to neighbors. Sometimes one of them has a friend or relative who always wanted to live in the same neighborhood.

 

Showings and open houses

To prepare your home for viewing, make it as light, cheerful and serene as possible. Your realtor will probably find a tactful way to suggest that you not be present while the house is being shown to prospective buyers. This is done because your presence will inhibit their actions and conversations. They won’t feel free to open closets and cabinets, test out the plumbing, and discuss their observations objectively as they walk through. It goes without saying that your children and pets should not be on the premises either.

If your realtor has scheduled an open house, you may want to notify the neighbors, and assure them that they’ll be welcome. They’ll appreciate the chance to look around in your house, and sometimes they can turn up a buyer among their friends. In preparing for an open house, you should:

• Pull the drapes back
• Light lamps
• Simmer a few drops of vanilla on the stove
• Light your fireplace
• Set the dining room or kitchen table if you have particularly nice linen or china
• Put fresh towels in the bathroom
• Leave the house so your realtor is free to deal with prospective buyers in a professional manner.

 

When preparing your home, think about the techniques that are used to show builders’ model homes. You want your home to look like a model home.

 

How long has your house been on the market?

Professional appraisers sum up their entire body of knowledge in three words — “Buyers make value.” Your home is worth as much as some member of the buying public will come forth and pay for it. After it’s been on the market for months, you’ve been given a clear message that the property may not be worth what you’re asking for it. This is particularly true if there haven’t been many prospects coming to see it. What you do at that point depends on whether you really need to sell, and whether you’re working with a time limit. If you’re not really motivated to move soon, you can always wait – years if necessary – and hope inflation will catch up with the price you want. Buyers become suspicious of a house that’s been for sale for a long time.

If, however, you do need or want to sell, discuss with your realtor a schedule for reducing your price gradually until you find a level that attracts buyers. There’s no point in saying, “We simply can’t sell our house.” Homes sell — if the price is right.

 

If you’re buying another home

Don’t spend a great deal of time worrying about what will happen when you’re selling one home and buying another. You’re not alone. Realtors, lawyers, title and escrow companies have had plenty of experience in arranging contracts and loans so that the two transactions work together smoothly. In today’s real estate market it’s best to list your present home for sale first.

Selling and buying a home is a very emotional event and if you create a “race” by locating your replacement property before you sell your current home, you may lose it to another buyer, who does not need to sell in order to buy. If you do find just the house you want, you can always put in a purchase offer contingent (dependent) on selling your present one. However, in a hot market you will have difficulty getting the house you want this way.

Sometimes the seller will sign a contract agreeing to wait a certain period of time while you find a buyer for your house – sometimes not. What would you do if you were presented with such a proposal, from a buyer who also has a house to sell? If you do find that you need to buy the next house before you’ve received the proceeds from the present one, lending institutions can sometimes make you a short-term “bridge” loan to tide you over between the two transactions. Make sure you fully understand the exposure and emotional investment before proceeding with this type of loan.

For more information go to www.phillyrealestateinformation.com

Five Real Estate Investment Tips

There are countless tips on real estate investing available and this is by no means intended as a comprehensive list. While every investment has its own intricacies and problems that need to be worked out, there are some very basic aspects that are common to most investment properties. Understanding those aspects and asking questions about them can help you determine whether a particular real estate investment opportunity is for you.

Anything Can Change

Building in the capacity for change in your investment is not only good real estate advice, but good life advice. Aspects of an investment can change at any given time and building in a little cushion in your profit projections for that change will most likely give you a better outlook on the possible outcome of your investment.

This is especially true for something like the tax climate of your investment as changes in tax laws happen regularly. If the tax situation surrounding your investment is the only thing you like about it, it is probably not a sound investment. Solid investments can withstand changes in the tax code, so never rely solely on the stability of tax codes, you will be sorely disappointed.

Do What You Know

It is tempting to get involved in real estate investment opportunities outside of your comfort zone. Maybe the terms look good or the area is nice, but your lack of expertise in the field will ultimately hurt you over the course of the investment. If you are well versed in multi-family homes, do your best to uncover the best investment opportunities in that field. If your bag is fixer-uppers, stick with that. Success is difficult to replicate so if you have a knack for something, exploit that knack.

Compare, Compare, Compare

As any real estate agent will tell you, valuations for a new home put on the market are a direct reflection of other sale prices of similar properties in that area. Your potential investment is the same way. If you are going to rely on rents to make back the money spent on the investment, compare the rents your prospective investment property takes in against similar properties in the area. Are they too high? If so, that may indicate future trouble filling the building at those prices, which then cuts into your profit forecast.

If you are getting involved in a fixer-upper, compare what you think the home will be like in the future to homes that have sold that look similar to that now. Doing so will help you estimate your eventual sale price and the amount of money you should invest to net a decent return.

Hammer Down True Expenses

Just as you want to examine what your incoming cash flow will be on any real estate investment opportunity, you want to investigate your outgoing cash flow as well. What are the key costs involved in running the property? What are the taxes on the property? How much does it cost you when part of your multi-family property is vacant? Sometimes properties can look great when you examine the rent payments coming in but then lose their luster when you look at the cost of running the facility. You need to investigate both sides of the story to get an accurate view of the financial future of your investment.

Know the Building

In real estate investing, surprises are usually costly. Not only should you do a full walk through of the prospective investment yourself, you should also look in to hiring an independent, professional inspector as well. Uncovering problems with the foundation, roof or furnace early can either save you from making a poor investment or give you ammunition to negotiate a lower price.

Not all real estate investments are the same and you will likely run in to a unique problem on every property you pursue. However, by sticking to the tips here, you can give yourself a great foundation from which to operate. Above all, pursue information on the property as vigorously as possible to eliminate the possibility of regretting your investment later.

For more information go to www.phillyrealestateinformation.com

Price and Package Your Home to Sell

Just as a buyer may have unrealistic expectations of the kind of deal they can get on a home, a seller too may believe that their home should be listed for more than their REALTOR® advises. Realtors are in a tight spot when it comes to trying to reason with a seller about the price of their home. They have to be sensitive to not only the monetary investment that was made, but also the emotional investment. But the bottom line is if a home isn’t priced to sell, then it probably won’t.

I am asking sellers to get real with their home prices:

Get real with your home price… and you will sell your home! There are many homes lingering on the market, causing a decline in values as we all know it. When the home is on the market and it is getting too few showings or no showings at all, it is priced too high, period. When a home is on the market and it has many showings and no offers or offers that are priced well below (even in this market), it is priced too high, period! Unrealistic expectations are usually the culprit, yet it could be a denial of the market we are in. It is amazing how many sellers I speak to that are shocked in the decrease of the values. We aren’t in the market; we were in several years ago.  Many times there is a dollar figure in mind and to say that ‘I want to get out of it what I’ve put into it’ just isn’t realistic. A question I ask many clients is, When you put that green carpet in or installed that new powder room in the middle of the living/dining room , did you do that for your own use and pleasure or for the use and pleasure of the next buyer? Let’s just say you thought ahead and did it for a future buyer, ok then, What if the next buyer doesn’t like the green carpet or the new powder room smack dab in the center of the living/dining room, and they decide to get rid of it as soon as they move into the home, how much value has this brought to your home?

A property on the market is a product for sale. The buyer will only pay top dollar if the product is packaged to sell. A product for sale must appeal to as many buyers as possible to achieve the highest return on the investment. Take a look at the examples below:

Example 1

A buyer for a local department store attended a men’s fashion show and feel in love with the red denim jeans with a tear drop on the back pockets. So the buyer purchases one thousand pairs of these red denim jeans with blue tear drops sewn on the back pockets for the men’s department. The cost was $10.00 each.  The department store now has $10,000.00 invested in the jeans. The manager of the men’s department prices the jeans at $59.95 which is the stores standard mark up or what the store would like to make on these jeans. Now do you really think that 1000 men are going to purchase these jeans? Your right if you said no, I don’t know of too many men that will wear a pair of red jeans with blue tear drops on the pockets. The store will most likely sell several pairs at the $59 price but if they sell at all they will most likely have to lower the price to $9.99 or lower to sell them, which is already under cost without adding in overhead.

Example 2

The same buyer purchases one thousand pale yellow sun dresses with a nice modern design on it for $29.00 each. The women’s department manager decides that the dress is going to be a big success so they price the dress at $139.99. How many of the dresses do you think they will sell for $139.99? My guess is about 10. Another 90 will most likely sell for somewhere in the neighborhood of $49 to $69. It just too bad that summer is now over and all the fall and winter clothing has arrived and they are now stuck with 900 dresses that will now have to be marked down to about $9.99 to get them sold.

Example 3

A large super marker receives a shipment of 300 boxes of crackers that were damaged as a clerk removes them from a shelf in the stock room. The boxes are a little crushed but the crackers are all ok and the seal on the box did not break. The store manager decides to put the crackers on the shelf at the regular price of $3.99. I don’t know about you but I am not paying top dollar for crackers that are in a crushed box. First of all the crackers are most likely going to be smashed and secondly it makes we wonder what the manager would do if there were other problems within their store.

Selling a home is no different. You have to supply an item that the majority of buyers are looking for and you have to price it right in the beginning if you want to sell for the highest possible price.

Sellers have to keep in mind that buyers these days have home values at their fingertips and know how much they want to spend. With the amount of information on the Internet about comparable home sales and other market data, buyers are informed and ready to buy if the price is right.

For more information go to www.phillyrealestateinformation.com

Ten Important Tips to Successful Real Estate Investing

Be a Real Estate Investor – 10 Important Secrets

When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know:

1. Compare Property Values and Rents

Financial statistics only go so far; the best measure of a property’s market value is often the sale prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need.

2. Be Careful – Tax Laws May Change

Don’t base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of the tax code. The right property with the right financing is what you should look for as an investor.

3. Specialize In Something You Know

Start in a market segment you know. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you’ll benefit from experience by specializing in one aspect of investment real estate properties.

4. Know The Costs Going In!

Know the financial statements inside out. What are operating expenses?

What are loan payments? Vacancy costs? Taxes? What does the cash flow statement look like? These are key issues that must be addressed before making a solid investment.

5. Know Where Your Tenants Are Coming From

If the last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there simply to attract unsuspecting buyers. It is also important to collect the tenants’ security deposits at closing.

6. Assess The Tax Situation

Taxes are an integral part of successful real estate investing, and they often make the difference between a positive cash flow and a negative one. Know the tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor.

7. Investigate Insurance Coverage

If seller’s coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price.

8. Confirm Utility Costs

Ask the local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant’s rent.

9. Consult Your Accountant

Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code.

10. Inspect!

Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without at least examining the site. In some cases, hiring professional inspectors to examine the structural mechanical system may be a sound investment.

For more information go to www.phillyrealestateinformation.com

Buyers: Don’t Freak Out When Your Loan Falls Through During Escrow

You worked for years to improve your credit score. You saved every penny you made and then moved in with your parents to save a few more. You surfed real estate listing sites until your Chihuahua could tell a Craftsman from a Rancher. After all that, you were finally awarded the distinction of being pre-approved for a mortgage. Fast forward through the house hunt, and past inspections, disclosures and all that jazz. The end is in sight, and you can practically hear the Chariots of Fire theme song playing as you approach the finish line that is close of escrow. Then, the unthinkable happens — your loan doesn’t get final approval.

I Know the Feeling. How could this happen? Loans “fall out” occasionally, when lenders go out of business, lending guidelines change abruptly, the buyer’s credit score or income changes between pre-approval and escrow, or the property doesn’t appraise at the purchase price. Having your loan fall apart during escrow, when your heart is set on a particular home, is enough to make you scream or sob, or both, alternating even.

Your Mindset Reset. After you finish cursing or crying, depending on your personal preference, stop freaking out. You have a very short period of time to regroup and reposition yourself to close the deal. We’ll assume that you have followed the advice of yours truly and not removed contingencies or allowed your objection period to expire just yet. So the issue is not that your deposit is at risk so much as that you need to secure a mortgage if you want to buy this home!

It’s time to flip the switch from panic mode to project mode, to determine whether — and where — you’ll be able to find the funds you need.

Your Drama-Free Real Estate Rx. First, ask your mortgage professional why your loan fell apart. Then,

1. If the issue was the appraisal, work with your Realtor to ask the seller to reduce the purchase price.
2. If the issue was a change in lender guidelines, ask your mortgage broker whether she can submit your application to other lenders or whether another loan option is available that her company doesn’t offer, but might be able to refer you to.
3. If more down payment funds are required, either because your debt-to-income ratio is too high or your lender’s guidelines have changed, investigate whether you might qualify for any Down Payment Assistance Programs (DAPs) offered by your city or state. Ask your Realtor and mortgage broker to help you identify any DAP funds you might be eligible for.
4. If you’re still searching for down payment funds, explore whether it’s possible for you to borrow from your retirement accounts or ask family members for gift money.
5. If your credit score has dropped, review the report to ensure that no erroneous or fraudulent entries are dragging your score down. If so, ask your mortgage professional how best to go about quickly correcting the report.

 Finally, just flat out ask your Realtor, mortgage pro and even your personal banker if they can think of any other financing alternatives.

If all that fails, it might just mean this home is not meant to be yours. As hard as that might be to hear, it’s all a matter of perspective. You are fortunate to have encountered this snag while you could still bail from the deal by exercising your loan contingency. Then, you can go back to the drawing board, either house hunting at a reduced price range or taking care of the items necessary to put you back in position as a qualified buyer.

Freak-Out Prevention Tip: It’s usually best to work with a mortgage broker, rather than with a mortgage representative who works for a single bank. Mortgage brokers work with multiple banks and have the widest range of loan programs to offer as backups in case Plan A implodes.

For more information go to www.phillyrealestateinformation.com

The Financial Nature of Home Ownership

Home ownership can be one of the most meaningful aspects of any person’s life. With a house and plot of land to call home, a family can feel secure, safe and comfortable. After a long day at work, a man or woman can relax in the solitude and quietness of their very own home. While those are all great perks of home ownership, when it comes time to pursue a loan of any kind, home ownership can show off one of its most valuable traits.

Applying for a loan is much like applying for a job. After looking through the various types of positions available, you submit a resume and hope to get the call to come in for an interview. Your credit report functions much the same for a loan application as a resume does for a job application. A lender can see your financial history, current condition and forecast from there a level of risk.

Just as a great reference can make your resume sparkle in the eyes of a potential employer, so too can home ownership make your financial history jump off the page for a potential lender. Home ownership implies a steady stream of income, financial stability, the intention to plant roots and most importantly, the ability to repay a sizable financial commitment. Naturally, missed mortgage payments can undo all of that benefit, so only a strong mortgage history will help you.

When a home owner investigates taking out a loan, most will go straight for home equity loans that borrow against the equity built up in the home, and rightfully so. A home equity loan can be a great financial solution for those that need additional funds and provides a host of benefits, all of which are accessible because of the benefits of home ownership.

Home equity loans, because they have the backing of a home, are available at lower interest rates and in greater amounts than unsecured loans that have no backing. Obviously, if you do not own a home, you are not eligible for a home equity loan, something that can be a vital financial tool used to keep a family afloat or pursue a new business or other dream.

Of course, not everyone is thrilled with putting their home in jeopardy when pursuing a loan and unsecured loans fill that void. Contrary as it may seem, home ownership can be a great benefit in that circumstance as well. While you may not see the low interest rates and favorable terms possible through a home equity loan, the rates and terms for an unsecured loan can be improved greatly through home ownership.

As a lender examines a particular person’s ability to repay an unsecured loan, a variety of traits are taken into account. For someone pursuing an unsecured loan without the benefit of home ownership, rates will be higher, payments will be more expensive and the loan term may be shorter. These can be significant barriers and for many people, they can be a complete roadblock to a needed loan.

So, as you go through the process of searching for a home, it is of course true that you will be providing security for yourself and a foundation for your future. However, you will also be gaining a significant financial advantage should the need arise to take out a personal loan of any kind. These situations are often sudden and surprising, so having the kind of safety net home ownership can provide is a significant benefit and one that should not be neglected through your pursuit of a home or even during the choice to even purchase a home or not.

To learn more go to www.phillyrealestateinformation.com

Seven Surefire Ways to Improve Your Credit Score

You’ve already heard the bad news. The housing crisis has tightened up credit markets, and it’s harder to qualify for a mortgage loan. Credit scoring has always been an important part of the loan approval process, but suddenly it bears more weight than ever.

If your credit is shabby, you’ll need to shore up your score to convince a lender you’re worthy. Here’s how to boost your point total:

Be on time. Before you worry about cleaning up what happened yesterday, get right with today and focus on your current bill-paying performance. Pay on time, and pay more than the required minimum payment each month on outstanding credit balances.

Shrink your credit ratio. The credit-scoring process looks at the ratio of your debt to the total amount of available credit you have, so add up your credit limits to see where you stand. Your long-term goal is to get rid of all your debt, but a good, short-term target is to shrink your ratio to less than 50 percent. Then 40, then 30, and so on.

Pay off a card, but don’t close it. Because of the aforementioned credit ratios, reducing your available credit hurts your score. If you have a $3,000 balance on one card with a $5,000 maximum and no balance on a card with a $10,000 maximum, closing the unused card suddenly makes your credit ratio skyrocket from a benign 20 percent to a troubling 60 percent. Resist the urge to close an account when you’ve paid it off; lock the card in a drawer instead.

Get current on any outstanding debts. Got collection agencies on your trail? Pay off your late accounts, but remember that paying off a delinquent account will not erase it from your history. You simply have to wait; the further the delinquency recedes into the past, the better off you’ll be. If you have a good explanation for falling behind, a lender may be sympathetic if you’ve paid off the debt.

Take a magnifying glass to your credit report. Credit reports often contain score-dinging errors. Check yours via www.annualcreditreport.com, and look for obvious mistakes like erroneous balances or accounts you don’t recognize (which can be a sign of identity theft). Make sure lenders have reported your credit limits accurately, because they affect your credit ratio.

Restrain yourself with new cards. Don’t open up new accounts to increase your available credit. This strategy doesn’t necessarily boost your score and can actually hurt it, according to MyFICO.com. If you’d like to have a new card, apply for one, but don’t open multiple accounts at the same time. This looks like risky behavior to a lender.

Allow some time to pass. Following these tips will improve your credit score, but give them time to work their magic.

Here’s a general timetable:

• Corrected errors on your credit report should boost your score immediately;
• Paying down balances takes a little longer to work (depending on how much you pay off and how often your lender reports to credit bureaus), so you may see results in a few weeks or a few months;
• Paying off delinquent accounts gives you some leverage with lenders, but improvement in your actual credit score will be slow, so be patient.

For more information go to www.phillyrealestateinformation.com

Hunting Down the Perfect House

When the time finally comes to make a move to a new home, families can often times be on one hand extremely excited about the prospect of shopping for a home and on the other hand be unsure as to how to start the process. There are a few important steps that should be taken in any home-buying process to ensure a smooth real estate transaction.

Know What You Want

If you’re upgrading from your current home, odds are you have a good reason. Perhaps your family has grown too large for your old home or perhaps a bump in income has given you the ability to upgrade any of the features of your home. You know why you want to move, now write those reasons down on paper.

When you come to a real estate agent or decide to go out on your own, knowing the kind of square footage you might be looking for, the number of bedrooms, the general area, the school district and other requirements will quickly narrow down your search to homes that are the most relevant to you. By having a good handle on the type of home you’re looking to buy, you cut out a lot of the guess work and wasted time that can take place in the early going.

Pick the Right Real Estate Agent

The best real estate agent is not always the one with his face on the bus bench. Publicity gets the name of particular realtors and realty companies out into the public, but publicity does not always translate into the time and care it takes to make sure you get the home buying process you’re looking for. Interview multiple realtors, asking plenty of questions each time.

You will probably be spending a large amount of time with whoever you choose, so make a wise choice. You are entrusting perhaps your biggest single possession into your realtor’s hands, so feeling comfortable with your choice will go a long way towards feeling comfortable with the process as a whole.

Take Control of the Showing Process

Shopping for homes is usually the most time-consuming portion of the home-buying process and can often leave people frustrated if they feel that they are wasting their time on improper homes. Knowing what you want comes in to play big time in this step and can trim a lot of the fat from what is out there on the home market by narrowing down the entire set on a few key pieces of information. If you see a home online or just driving by, don’t hesitate to ask you realtor to set up a showing. That’s what they’re there for so make use of them.

Don’t ever be afraid to simply drive up to a home where you have a scheduled showing and never take a step inside. This is going to be your prospective home, so factors such as the appearance of nearby homes, the area of town and accessibility to things that are important to you are all entirely legitimate reasons to not want a particular home. Communicate that to your realtor and she/he will be able to get a better idea of the type of area you are looking for. Keeping that communication going leads to better showing and less time wasted on homes that just aren’t right for you.

To learn more go to www.phillyrealestateinformation.com