Written by Robert H. Ruth

Every year since 2013 the National Association of Realtors (NAR) has published a report looking at trends among buyers and sellers in the Real Estate Industry from the previous year. I’ve always eagerly anticipated this report because it provides excellent insights into the composition of the Real Estate marketplace. This year I thought I’d share some of the more significant findings that are pertinent to home buyers since that is the focus of my blog posts here. If you want to see the report for yourself, I have provided a link for you to download a pdf version here: CLICK HERE

The introduction of the report has much useful information about the composition of buyers in the Real Estate marketplace .  Here are what I…

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Written by Robert H. Ruth

This is a topic I discuss with borrowers most every day, so I thought you’d like to know the components of your credit score.  According to Fair Issac Corporation (FICO), “the score is calculated from many different pieces of data in your credit report, and the data is grouped into the 5 categories below.” Here they are with the approximate weighting assigned to each category:

 

  • Payment History : 35%
  • Amounts Owed :  30%
  • Length of Credit History:15%
  • New accounts Opened :10%
  • Mix of Credit :10%
  • Total: 100%

Let’s see what each category represents:

Payment history: 35%

This tells whether you have paid your credit card accounts on time in the past.  If you make all your payments on time each…

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Written by Robert H. Ruth

What is a concession?

A concession is some benefit usually offered from the seller to the buyer that helps in the negotiation to buy a home.  The concession is typically financial in nature, and is in essence, a type of deal sweetener for the buyer. In the real estate finance industry, concessions are also known as Interested Party Contributions (IPC’s).  For this article, I wanted to explain the 2 most common types of IPC’s: financing concessions, and sales concessions.

 Financing Concessions

These IPC’s are paid on the borrower’s behalf by the seller to help facilitate the transaction. Financing Concessions typically cover closing costs for the buyer who is financing the purchase with a mortgage. They are…

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Written by Jon Nelson

THE REAL ESTATE CYCLE - Barring any special circumstances, every home, neighborhood, city, town and state is subject to the inevitable influence of the Real Estate Cycle. Independent of any external pressures, the stages of this ever-changing sequence have been the source of much unnecessary financial and economic strife and leave a permanent mark on homeowners and the municipalities they populate.

If a certain locale is not growing, it may very well be declining. This is a dynamic pattern that can and will impact the indirect and sometimes unforeseeable consequences of consumers unknowingly purchasing ‘too much home’ for their budget. The ripple effects of this are far-reaching and can often accelerate the decline of a…

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Written by Robert H. Ruth

According to two recent studies, one published by the National Association of Realtors, the other by Harvard University’s Joint Center for Housing, single women represent 17% of homebuyers throughout the US. That is a very significant number… it shows that single women are the second biggest demographic segment of the purchase market after married couples. By comparison, single men only account for 7% of homebuyers.

Here are a few significant findings from the studies:

  • More than one in five home buyers is a single woman
  • There are twice as many unmarried women buying homes than single men
  • Single women buyers equal more than 33% of the growth in home ownership since 1994

These statistics are even more…

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Real Estate Raw&Uncut is for: Realtors, Agents, Buyers, Sellers, Brokers, Attorneys, Lenders, or just anyone that wants it "REAL" in REAL ESTATE! No hidden lies, none of that Realtor "fluff", no TV drama, no media BS... only the cold hard truth which we deliver unscripted and unfiltered with a new episode every week.

Episode 185: Chances are very good that your seller will receive much less in the long run for an overpriced property than if the property was priced correctly from the start. Most people accept and understand this concept. What many do not recognize is that knowing your product prior to listing can prove to be instrumental in getting the deal done. It is imperative that you have the following information before placing a property on…

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This is an extremely important act that was passed by all 50 states in the 1960’s to allow farmland, forestry, or open space to be assessed at its use rather than its fair market value or highest and best use as determined by an assessor.  Without this law, many land owners would simply not be able to afford land that has been passed down from generation to generation as the taxes would be outrageous.

Each state has its own rules and regulations regarding land use assessment and valuations differ from town to town. The State Law in CT sets no minimum acreage requirements to qualify but the individual township may have guidelines. Many towns in CT require a minimum of 25 acres.  In CT you must have your land designated as “Forestry” through the…

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Mother Nature served up more than just inclement weather during the 2014-2015 Winter season.  As the snow piled up throughout New England we were given insight into a real estate market that would have otherwise been impossible to perceive.  

Reports regarding the absorption of foreclosures and REO’s have been fairly consistent. The inventory is being purchased which in turn is driving supply down as well as months of inventory.  Our economy is feeling a bit healthier and we expect interest rates to rise by the 4th quarter as a reflection.

But WAIT….the latest snow storms showed us that MANY homes are still VACANT & BANK OWNED.  With driveways blocked and paths un-shoveled we were able to get a true glimpse of the housing market.   No one is…

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“ Sometimes the path you’re on is not as important as the direction you’re heading.” Kevin Smith

In the real estate industry, like many other industries, knowledge is a highly valued commodity.  The generally accepted thinking is that the more time you have in the business, the more knowledge you have amassed, and that cumulative knowledge can be used for the benefit of your clients. This is certainly true.

 

It is also true that over time you have been a participant in more transactions which gives you a wealth of experience in dealing with a variety of situations. This experience and situational awareness that can only be developed over time can be of tremendous value to clients.

 

Our industry then, is one in which knowledge,…

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It may be time to push the chair back from the table and stand up to the behemoth before us.  We as real estate professionals should not be threatened or scared of the paradigm shift that is currently taking place in the industry. We must embrace change and be nimble. There is an opportunity for the Brokers in this country to come together as one. An opportunity to create a portal that will enable the real estate industry to grow and thrive indefinitely.

Let’s back up a few years and look at Zillow’s business model. Zillow proposed to add value to the consumer by offering a Zestimate.  The Zestimate made the consumer flock to www.zillow.com .  The consumer felt that they now had a tool offered by a disinterested third party that made the Appraiser…

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