One way to determine if prices are headed up or down is to watch the supply of inventory.  A balance market has five to six months of supply.  Monthly supply is determined by the number of homes sold in a given month divided by the number of homes on the market.  For example, if there are 1000 homes on the market in your area and 200 sold in a month there would be 5 months of inventory.  Based on this finding, prices would be holding steady. 

If there was less then 5-6 months of inventory you would be in a seller’s market and prices would climb.  With a low supply of available homes, buyers would have to outbid each other to get the home.  This is what drives inflation.

It there was more then 6 months of inventory you would be in a buyer’s market and prices would drop.  With an abundance of homes available, seller’s would have to compete with each other causing prices to fall.

Economical factors can also play into which direction home prices go.  According to Realtor.org, ”Traditionally, the national average sales price of a home is two-and-a-half times the average household income.”  During the boom in the real estate market this reached four times the average income.  With unemployment rising, prices may drop more to get us closer to the traditional average.  But the good news is we are getting closer to the two-and-a-half time average.

Delaware Association of Realtors announced that; HB 70 Deed Restrictions and Wind Energy: HB 70, legislation that would prohibit deed restrictions from limiting the use of wind energy systems, was tabled during consideration by the House Energy Committee. DAR told the Committee that while we support the use of alternative energy systems, we are opposed to governmental efforts to override private deed restrictions. DAR believes that the government should not interfere with the rights of property owners to privately regulate the use of their properties. DAR also expressed concern about other technical aspects of the bill and on the noise provisions. Several members of the Committee also expressed concern about the retroactivity of HB 70. The bill’s sponsor, Representative Oberle, agreed to revisit the issue during subsequent revision of the legislation.

Homes built before 1978 may have traces of lead base paint in the homes.  High levels of lead was used in paint before 1978.  That’s why most people do not worry about lead in homes built after 1978.  However, you never know if a homeowner had old paint laying around and used it after 1978.  Lead also comes from toys, drinking water, furniture, crystal, pottery and you could be bringing it home from your job.  To learn more, click here.

The way to control is mold is to control moisture. There are different kinds of mold or often referred to as “mildew”. Mold is a living organisms that produce “spores” tiny particles that float in the air. Mold does not affect everyone but some people made have flu like symptoms. To learn more see the attached brochure.  Click here.

WHY YOU NEED A REALTOR®
A licensed real estate professional provides much more than the service of helping you find your ideal home.
Realtors® are expert negotiators with other agents, seasoned financial advisors with customers, and superb navigators
around the local neighborhood. They are members of the National Association of Realtors® (NAR) and must abide by
a Code of Ethics and Standards of Practice enforced by the NAR. A professional Realtor is your best resource when
buying your home.
LET A REALTOR BE YOUR GUIDE
• A knowledgeable Realtor can save you endless amounts of time, money, and frustration.
• A knowledgeable Realtor knows the housing market inside and out and can help you avoid the “wild goose
chase.”
• A knowledgeable Realtor can help you with any home, even if it is listed elsewhere or if it is being sold
directly by the owner.
• A knowledgeable Realtor knows the best lenders in the area and can help you understand the importance of
being preapproved for a mortgage. He or she can also discuss down payments, closing costs, and monthly
payment options that suit you.
• A knowledgeable Realtor is an excellent source for both general and specific information about the community
such as schools, churches, shopping, and transportation—plus tips on home inspections and pricing.
• A knowledgeable Realtor is experienced at presenting your offer to the seller and can help you through the
process of negotiating the best price. By bring objectivity to the buying transaction, he or she can point out the
advantages and the disadvantages of a particular property.
And the best thing about your Realtor is that all this help normally won’t cost you a cent. Generally speaking, the
seller pays the commission to the Realtor (but this may vary from province to province and state to state).

Fannie Mae wants to continue to provide financing for high-credit quality (minimum of 720 credit score) investors because experienced investors bring stability, liquidity and affordability to the housing system. Which in turn plays a key role in helping the housing market recover.

Fannie Mae is making changes again to their policy about multiple mortgages to the same borrower. Before the housing boom, borrowers could have 10 (ten) financed properties which they held individual or joint ownership interest and the mortgage was delivered and backed by Fannie Mae.   In 2008 this was changed to 4 (four) financed properties.  The new modifications will allow investors and second home borrowers to own five to ten financed properties if they meet certain eligibility and underwriting and delivery requirements.

Underwriting guidelines for the borrower:
1. No history of bankruptcy or foreclosure within the last seven years.
2. No delinquencies (30-day or greater) within the last 12 months on any mortgage loans.
3. Rental income on the subject investment property must be fully documented.
4. Rental income from other properties owned must be supported by two years’ federal income tax returns.
5. Complete and sign Form 4506  Request for Copy of Tax Return or 4506-T Request for Transcript of Tax Return.  This allows the lender permission to request copies of federal income tax returns directly from the IRS.   The lender then must validate the accuracy of those tax returns provided by the borrower prior to the loan closing.
6. Reserves on hand varies depending on whether the subject property is a second home or investment property, and on the number of other financed properties the borrower currently
a. When the borrower will own one to four financed properties (including the subject property) the reserve requirements are:
 Two months of reserves on the subject property if it is a second home,
 Six months of reserves on the subject property if it is an investment property, and
 Two months of reserves on each other financed second home or investment property.
b. When the borrower will own five to ten financed properties (including the subject property) the reserve requirements are:
 Two months of reserves on the subject property if it is a second home,
 Six months of reserves on the subject property if it is an investment property, and
 Six months of reserves on each other financed second home or investment properties

Reserves are those liquid or near liquid assets that are available to a borrower after the mortgage loan closes. Reserves are most often measured by the number of months of principal, interest, taxes, and insurance (PITI) that a borrower could pay using his or her financial assets.
Fannie Mae is expanding the definition of reserves to include all components of the monthly housing expense (PITIA), including:
• principal and interest,
• hazard, flood, and mortgage insurance premiums (as applicable),
• real estate taxes,
• ground rent,
• special assessments,
• any owners’ association dues (excluding any utility charges that apply to the individual
unit),
• any monthly cooperative corporation fee (less the pro rata share of the master utility charges
for servicing individual units that is attributable to the borrower’s unit), and
• any subordinate financing payments on mortgages secured by the subject property.

The First Saturday of each month, Dover offers a variety of activities at Heritage Park. The Park offers regular tours of Legislative Hall, Delaware Public Archives, Visitor Center and Galleries, Old State House, Biggs Museum, Victrola Museum and Delaware Archaeology Museum. One of the tours offered is “Dover Divided Walking Tour - The Civil War”. This tour points out buildings of significance and Delaware’s part in the Civil War. Check out what is being offered at www. Destateparks.com. There’s plenty of free stuff to do in Delaware.

Pull your credit at www.annualcreditreport.com and you can dispute them online. Or write a letter to all three credit bureaus explaining the discrepancies. Attach any documents you may have to verify the dispute. Contact the company that the dispute is with to see if it was an over sight on their part. Maybe, you could work something out with them.

1. Have a plan and write it down. Ask yourself where you would like to be in five years. Have an idea of where you money is going. Write down everything you spend and what you save.

2. Maximize your 401k plan.

3. Check on your Social Security benefits at www.ssa.gov

4. Power down your debt. Eliminate credit cards, car payments, personal loans. Start with paying off the highest interest rates first.

5. Find out what is on your credit report. Take your name off of the list that generates the pre-approved credit card offer. Contact each of the credit bureaus: www.equifax.com, www.experian.com, www.transunion.com

6. Compound your interest and watch it grow! If you put just $2,000 a year into a Roth IRA or a 401k from the age of 21, you can expect to retire at 65 with almost TWO MILLION dollars in the bank! If you are over 50, you can play “catch up” by contributing at least $3,000 a year. It is never too late to start a retirement plan! Take advantage of tax deferred college savings programs as well. And make sure you are aware of changes in the tax laws.

7. Diversify! Have three to six months of your living expenses readily available by investing in mutal funds or a money market account.