Buying in the Louisiana Market

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How’s the Market?

The market is great in Louisiana. Properties are being sold unbelievably fast. We have Rural Developing Financing for the Livingston parish. Everyone in the parish qualifies for this, given the property meets the requirements for rural development.

This opens up a lot of potential buyers. Before, generally a 3.5% down payment was expected, whereas now, people are able to get 100% financing. This was a third of our business last year.

What Does a Buyer Need to Know if They Are Looking for a Home?

The first step in buying a home is getting approved. Get in touch with your mortgage lender and begin the approval process. Once approved, we can help you find a home that best matches your criteria: location, amenities, etc. A seller likes to see a buyer that is ready, willing and able to purchase their home.

Once you have found a home, it takes 30 to 45 days to get you into it.

If you have questions or are looking to buy a home, please call us at 225.304.6363 or email me darrenjamesrealtor@gmail.com

‘For Sale by Owner’ Deals Need Livingston Parish Agent Knowledge

Agents Help Livingston Parish ‘For Sale by Owner’ Buys

Suppose you are driving past one of those ‘For Sale by Owner’ yard signs…and the house looks good!

 Do you screech to a halt, jump out and rush up to the front door to – quick! – sign a deal? More likely, you jot down the phone number (hopefully one is visible, though with For Sale By Owner signs, it’s not always the case) so you can call up your agent to get the details.

Veteran buyers considering a Denham Springs For Sale by Owner (FSBO) property know why it’s highly beneficial to use their agent from the start.  Even if you have found the home yourself, you should want that first call to go to an agent.

Here’s why:

·         Agents offer advanced relationships that stand to improve your bottom line. For example, timing often can make or break a deal, and agents can utilize their network of the Livingston Parish lenders who have proven most reliable.  Agents are also likely to have vetted referrals for specialized services to address fireplace and chimney issues, drainage, asbestos removal, etc.

·         Agents are experienced negotiators whose familiarity with Louisiana real estate requirements strengthens your position vis-à-vis credits and repairs. Agents understand potential issues likely to come up at inspection -- and can help you evaluate each item in your inspection report.

·         Some buyers believe they can save money by not using an agent in Denham Springs For Sale by Owner transactions. Sometimes that happens, but more often than not, it’s the FSBO owner whose heart is set on pocketing that extra 2.5 – 3%.  Agents can save you money in other ways --  by negotiating a lower selling price, proposing intangible benefits (like cash for closing), etc. 

Circumstances differ, but the bottom line value an experienced agent adds is a clear understanding of the complications and issues that often arise during dealings – whether ‘For Sale by Owner’ or not.   To get to closing, be sure your agent is involved. And if you’re looking for an agent, I would love to help – contact  me today to discuss how I will help!

You can call our office (225) 304-6363 or visit our website to find homes for sale in Denham Springs Louisiana

Cracked Glass Found in Home Prices Crystal Ball

image source: Bulliver

Home Prices Predictions: Reliable for Louisiana Homeowners?

Who doesn’t want to know what will happen in the future? That’s a very small group, for sure, since good planning is a cornerstone of good management -- for households as well as for organizations of every kind.

So, whenever Louisiana homeowners see headlines like “Home Prices Up ‘Unsustainable’ 5.9% in 2012,” above a MarketWatch article that explains that price growth is expected to slow, they probably would like to gauge the reliability of the forecasters.

In this case, MarketWatch is part of the relatively stalwart Wall Street Journal, so credibility goes up. But closer examination finds that the author is just reporting information real estate site Zillow compiled. Zillow is indeed an internet behemoth -- but can Livingston Parish homeowners rely on its national predictions to gauge Livingston Parish home prices?

My own take is to find out how well has this source done in the past…

Looking back a very short while ago (to December 26 of last year), I find that Zillow’s survey of 100 economists and forecasters “said they expect home prices to increase in full-year 2012 by 4.6%.”

Hey! Hold it! This is only February, but now the same outfit is telling us that the actual home prices gain last year was 5.9%. Doing a little arithmetic, it seems that the 100 economists and forecasters, faced with the task of estimating home prices for a year that had just a week left, were off by 28%! (They also acknowledge that the same panel had predicted the rise would be 2.3% only three months earlier).

So I guess it’s not that surprising that they feel home price rises like last year’s are going to be ‘unsustainable’ in 2013. Apparently the actual home prices were unsustainable last year, too!

Since real estate and home prices in Denham Springs are inherently local, it takes on-the-ground expertise to keep up with them.  If you’d like to know where your home falls in today’s market, contact Darren James Real Estate Experts at (225) 304-6363 now to schedule an initial consultation.  I think we’re getting ready for an interesting spring season —and I’d love to help you explore your options!  You could start exploring on www.agent225.com.  

Buying a Louisiana Home … With a $0 Down Payment?

Image Source: 401(k) 2013

It’s Ba-aaack: Return of the 100% Mortgage

Some of Louisiana's wealthiest buyers may be getting a mortgage without putting a single dollar down. And we aren’t talking about single-bedroom fixer-uppers, either!

It's called 100% financing, and, at first blush, it looks suspiciously like a version of the strategy that sent the economy reeling in 2008.  But lenders feel that well-heeled Livingston Parish residents who are getting a mortgage through these programs are totally different.  How so? you may ask.

For openers, these loans are offered only to the super-qualified: those with serious investment portfolios they can use as collateral. That means getting a mortgage with zero cash for the down payment. That can carry an additional tax benefit, since the borrower won't have to pay a capital gains tax on investments liquidated to fund a down payment.

Since current mortgage rates can be as low as 2.5%, since even middling investment accounts often return a higher rate, the difference make this strategy what the Wall Street calls an ‘arbitrage play’.

So what would a homebuyer getting a mortgage in Denham Springs need to do to qualify for one of these mind-bending loans?  In addition to the willingness to put up two forms of collateral (the property and a portion of your investment portfolio), the Wall Street Journal offers some relevant details:

• The amount that can be borrowed against any investment account depends on what’s in the portfolio. Usually up to 95% of account cash; up to about 80% for bonds; between 50% and 75% for most stocks. Withdrawing pledged funds is usually restricted.

• To get the lowest rates, clients who already have significant assets at a particular bank should consider applying for 100% financing there.

• Borrowers still need to pass regular underwriting requirements. They’ll need --  high credit scores, a low level of overall debt, and documentation of substantial income or assets.

Of course, getting a mortgage doesn’t require a seven-figure portfolio.  If you are seriously thinking about buying a Livingston Parish home, call me -- we’ll get started by getting you pre-qualified.

Determined Decluttering Aids Livingston Parish Open Houses

Denham Springs Open Houses (and Losing All That Junk)!

Why so many open houses in Denham Springs? The reason is because they are so effective -- not only by instantly spreading notice that a property is seriously entering the market, but also by creating a firm target date – a day when all concerned agree that the property will be in peak ‘showability’ condition.

Open houses are like showings on steroids. With dozens of visitors in the offing, there’s little doubt that every effort will go into preparing for them. Along those lines, every agent will tell you that a tidy home is far more tempting than one that looks too lived-in.  The New York Times recently offered the assessment that decluttering is vital because "most real estate is aspirational, and buyers want to see themselves in someplace better and more beautiful." 

Therefore, a basic part of preparing for open houses is the unglamorous task of whittling away as much of the daily clutter as possible. There are some stress-reducing ways you can approach the task:

Focus on how long it has been since items were used 

Anything you haven’t used in the past three months is a candidate for storage (or beyond!) It may be easier than you think.

Identify items in disrepair 

Homes across America are filled with things that fit this category – items that don’t belong on display in any Livingston Parish open houses. (When you find items like this, you may feel better about tossing them when you realize no one ever gets around repairing them, anyway!)

Find what’s hidden in plain sight

Finally, scout through the house for items you take for granted – but which add little charm. Shelves with books and magazines you will never read and chests in the kids’ room filled with long-abandoned toys are examples. Clearing such “hidden in plain sight” articles will complete the decluttering -- and create the kind of open houses potential buyers get serious about. If you are anticipating the coming spring selling season, then it’s time to recruit a top-notch Livingston Parish agent to help. I hope you won’t hesitate to give me a call!

How Louisiana Real Estate Investors Use Their IRA

The Underpublicized Denham Springs Real Estate Option 

In case you missed it, there is at least one widely overlooked Livingston Parish real estate investment possibility that can be available to active IRA holders. Especially if you are among those who look at the current Livingston Parish real estate market and find numerous investment possibilities with significant long-term upsides, the Self-Directed IRA option can be worth looking into. Some of the broad outlines of how it works:

1. The right IRA custodian

Custodians are trustees who hold self-directed IRA assets and file documents with the IRS. Louisiana real estate purchases are considered ‘non-traded’ assets -- and not every IRA custodian allows for them. You may need to find one who does. 

2. Use only IRA funds 

All costs associated with your real estate investment must be paid using funds from the self-directed IRA. These can include property management expenses (if you use the property as a rental), taxes, repairs, and insurance. Using IRA funds for any personal expenses or personal benefit will lead to penalties.

3. Guard your interests

Be careful to play by the rules. For instance, you cannot involve a spouse, family member, or company in which you have a 50%+ interest; nor may you reimburse yourself for work you do on the property (including the reporting and other administrative requirements). 

According to Fox Business News, many people are using self-directed IRAs to purchase non-traded assets like real estate. Since there are significant limitations as well as advantages, it is all but mandatory to consult a qualified accountant or legal professional before proceeding. If it looks as if the advantages predominate, it will be time to go about finding the right Livingston Parish property for your investment…time to contact me!

Cave Craving is also a Livingston Parish Listings Winner

Livingston Parish Listings Winner: Super Bowl-Ready Man Cave!

Every edge counts when you’re selling your Livingston Parish home and want it to stand out from all the other listings. Whether you have an underused room you have been wondering what to do with, or already have a ‘game room’ you’re looking to improve before an upcoming open house, in honor of next weekend’s Super Bowl, let’s talk about creating one of today’s most desirable extra-value features: that Livingston Parish listings star, the “Man Cave!” 

Find the Right Space 

Lisa McDennon, an award-winning interior designer in Southern California’s Laguna Beach, likes the basement as the ideal Man Cave location.  "I think the lack of windows…is a benefit because it's already dark and cave-like. It's also separated from the house by a wall." 

Install the Right Finishes   

Select wall and surface materials with finishes that can be easily adapted to a playroom, craft room, or family room.  ‘Man Cave potential’ may be the way to word your listings winner, because you want to appeal to buyers who have other priorities, too. In the event a potential buyer doesn’t want a Man Cave in their new home (what!?), make sure it is readily convertible. 

Get the Décor Right

Sports and other memorabilia can be overdone. "Too much is too much," McDennon cautions.  That translates into knowing when to let go of some items (or at least keep them closeted during showings.)  Choose a basic color scheme -- and stick with it.

And, needless to say, make sure your Man Cave stays tidy (no brontosaurus bones left lying around)…

If you are in the preparation stages for selling your Livingston Parish home this winter, and your spare room is currently used more for storage and cobwebs than anything else, consider the added pizzazz that comes when you add some Man Cave potential. After all, what men really need these days is a quiet place to meditate on important matters (like the Super Bowl).  I am here all the time to discuss these and many other ways you can maximize your property’s Livingston Parish listings potential.