How to buy a Foreclosed Home

Today's article comes to us from Century 21 Dunaway & Hart, Inc.'s Relocation and REO Director, Sherry Atkinson.

There are as many self-help books, videos, web-pages, and experts on buying Bank-owned homes as there are bank-owned homes. So, how does a buyer actually buy one of these homes?

Step one should be contacting your local real estate agent. A large majority of Bank Owned or REO properties are listed by local agents. The bank will ask a real estate broker to list these homes at market value and market these homes to the public.

A common myth is that a buyer can make a low offer and walk away with these Bank Owned Properties. In realty, the Bank is like any other Seller. They want the highest and best price for their home. An informed buyer will inspect the foreclosed property to determine the condition of the home and ask their agent to obtain comparable sales to determine the market value.

The majority of these banks require a buyer to have financing in place before making an offer to purchase. A pre-approval letter from the lender is almost always required. In fact, some Banks require that a potential Buyer get a second pre-approval letter from their own bank. The Bank will not require that the Buyer use their bank to finance but they will require a letter to ascertain that the potential buyer has met all the criteria that they require to finance a home.

Also, be prepared to present earnest money. These banks will look at the amount of earnest money or escrow funds that a buyer is willing to put up. This shows good faith to the Seller and that a buyer actually has some liquid money for closing. A good rule of thumb is $500 for properties less than $25000 and 1% of sales price for properties above $25,000.

Most banks will counter with their own addenda. Be sure to have an attorney review anything that you do not understand before signing. Your real estate agent is there to negotiate the contract but they cannot give you legal advice.

And finally, be patient. Be prepared to wait anywhere from 2 days to 1 week or longer for responses. All banks are different and all have different systems in place for responding to offers. Most banks have to go through several corporate approvals before a contract is signed.

To buy homes for sale in Conway, Arkansas or in Faulkner County, Conway County or Perry County, contact a Real Estate Agent at Century 21 Dunaway & Hart, Inc. today. Affordability and Mortgage Calculators can be found at our website so you can determine your price range.  To look at homes for sale in central Arkansas, check out all the property listings in central Arkansas, watch our television show, or read our Central Arkansas Homes Magazine. You may also call our office at 501-327-2121 or 800-490-0021 to set up a private home or land showing with one of our award winning Real Estate agents today.

Conway is named one of the Fastest Growing Cities in Arkansas

The Gadberry Group recently released a report naming the fastest growing cities in Arkansas for 2009.  Maumelle, Bryant and Conway respectively were the top three cities in the state.

In the past decade, Conway has seen exponential growth topping 30% and has also earned the desingation as one of the most educated cities in the state with over 36% of residents earning a Bachelor's degree or higher according to City-Data.com.

The Arkansas Democrat Gazette quoted Larry Martin, a principal with the Gadberry Group, "For years, Conway was known as a bedroom community to Little Rock but that no longer is the case. Conway landed one of the largest economic development projects in the state in 2008, Hewlett-Packard's $28 million customerservice and technology center, which will employ 1,200 by 2012."

The Log Cabin sat down with Mayor Tab Townsell after the report was released.  The Mayor said “We’re trying to grow into the city we wish to become and not just grow out of the city we were in love with. In other words to build smart, to build fine parks, build better roads and bike trails and continue to grow in our police and fire safety forces. They keep our city safe, and that is what is going to dictate whether or not we are a good place to live as we grow.  Now Conway is an independent area. "People now are going from Little Rock to Conway to work.”

Brad Lacy, President and CEO of the Conway Area Chamber of Commerce also weigned in on Conway's standing with The Log Cabin.  “Conway has felt like an island in the storm.  We have been so fortunate to maintain growth in this climate. I think it’s due to our diverse and fundamentally sound local economy.”

To look at homes for sale in Conway, Arkansas or in Faulkner County, Conway County or Perry County, contact a Real Estate Agent at Century 21 Dunaway & Hart, Inc. today. To look at homes for sale in central Arkansas, check out all the property listings in central Arkansas, watch our television show, or read our Central Arkansas Homes Magazine. You may also call our office at 501-327-2121 or 800-490-0021 to set up a private home or land showing with one of our award winning Real Estate agents today.

Casino Night Time!

For the past seventeen years, Century 21 Dunaway & Hart, Inc. has chosen to give back to the community which it serves. It all started when Pete Hart and a group of dedicated Real Estate agents decided to make a difference. They started the first of many Casino Nights and donated all the proceeds to Easter Seals Arkansas. This amazing group of driven individuals paved the way for us to continue there work and here we are almost two decades later doing just that.

So many times, we get so wrapped up in our daily routines that it is difficult to stop and reflect on helping others. Casino Night is our chance to do just that. I especially love that Casino Night is nestled between Christmas and Valentine's Day: two holidays that create the perfect opportunities to give to our families and friends. Casino Night lets us give to people who we may not know but who are so incredibly deserving.

Easter Seals Arkansas is an exceptional organization whose mission is to provide services to ensure that all people with disabilities or special needs have equal opportunities to live, learn, work, and play in their communities. The success of their mission can be seen through the children’s’ faces in the collage I have created below.

The 18th annual Pete Hart Memorial Casino Night will be held Friday February 12th at The Knights of Columbus Hall located across from the Conway Airport. General admission tickets are $15 dollars in advance and $20 at the door. Advance tickets can be purchased from a Century 21 Dunaway & Hart agent or at our office located at 575 Harkrider Street, Conway, AR. You may call our office at 501-327-2121 or 800-490-0021 for more information.

Also, call our office, if you are interested in donating an in kind item to this worthwhile cause.  We have everything donated so all monies raised can go directly to help children and adults with disabilities. 

Limited Corporate Sponsorships are available and the breakdown of sponsorship levels can be in the following flyer:

Little Rock, North Little Rock, Conway MSA Named by Forbes among America's Best Bang-For-The-Buck Cities

Forbes has named the Metropolitan Statistical Area (MSA) including Little Rock, North Little Rock and Conway, Arkansas near the top of their America's Best Bang-For-The-Buck Cities in America. The Little Rock, North Little Rock and Conway MSA ranked in second place out of the 100 largest Metropolitan Statistical Areas in the country.  Forbes analyzed a variety of factors including: foreclosures as a percentage of housing units; vacancies; unemployment rates; a three-year job growth forecast; a three-year home price forecast; housing affordability; median real estate taxes; and median travel time to work.

Specifically, the relatively stable housing market was listed as a key component among the top contenders.  Conway's housing market has fared well throughout this recession and now is a great time to buy with the extension and expansion of the Homebuyer's Tax Credit and historically low interest rates.

To look at homes for sale in Conway, Arkansas or in Faulkner County, Conway County or Perry County, contact a Real Estate Agent at Century 21 Dunaway & Hart, Inc today. To look at homes for sale in central Arkansas, check out all the property listings in central Arkansas, watch our television show, or read our Central Arkansas Homes Magazine. You may also call our office at 501-327-2121 or 800-490-0021 to set up a private home or land showing with one of our award winning Real Estate agents today.

Home Sales Increase Over 10% in October

According to the National Association of Realtors, existing home sales in the US spiked 10.1% in October, 2009 over September, 2009 sales.  The October home sales Homes sales are at their highest levels since February, 2007. 

The National Association of Realtors is attributing the large gain in home sales to the First Time Home Buyer Tax Credit which was originally set to expire on November 30.  With the tax credit extension and expansion in place, homebuyers have until April 20, 2010 to write a contract on a new home.   Historically low mortgage rates are also partly responsible for the gain in home sales across the country.

To look at homes for sale in Conway, Arkansas or in Faulkner County, Conway County or Perry County, contact a Real Estate Agent at Century 21 Dunaway & Hart, Inc today. To look at homes for sale in central Arkansas, check out all the property listings in central Arkansas, watch our television show, or read our Central Arkansas Homes Magazine. You may also call our office at 501-327-2121 or 800-490-0021 to set up a private home or land showing with one of our award winning Real Estate agents today.

Homebuyer Tax Credit Passed by Congress

According to the National Association of Realtors, the Homebuyer tax credit has not only been renewed, but extended as well.  As of last Thursday, November 5, Congress has passed the legislation and it is expected to be signed into law by President Obama. 

The current Homebuyer Tax Credit enacted in February 2009 and set to expire on November 30, 2009, allowed a tax credit of $8,000 for married couples ($4,000 for married filing separate) making less than $150,000 with a phase out plan for those making above the income limits.  The limit for a single person is $75,000.  The new legislation extends the credit through April 30, 2010 and also increases the income limits to $225,000 for married couples and $125,000 for single people with a phase out above those limits.  Under the legislation, a first time homebuyer "may not have had an interest in a principal residence for three years prior to purchase."  A principal interest can extend beyond a home to include condos, manufactured homes and even an RV if it was a principal residence. 

There is also great news in this legislation for existing home owners! There is a $6,500 tax credit available for married couples ($3,250 for married filing separate) making less than $225,000.  The limit for a single person is $125,000 with a phase out above those limits.  In order to qualify for the current homeowner tax credit, the homeowner "Must have used the home sold as a principal residence consecutively for five of the previous eight years." A binding contract must be written on a property before April 30, 2010 and the homebuyer will have until July 1, 2010 to close the transaction.   The tax credit will be claimed on tax return and will not be a part of the closing process.

To look at homes in Conway, Arkansas or in Faulkner County, Conway County or Perry County, contact a Real Estate Agent at Century 21 Dunaway & Hart, Inc today.  To look at homes, check out home listings in central Arkansas, watch our television show, or read our Central Arkansas Homes Magazine.  You may also call our office at 501-327-2121 or 800-490-0021 to set up a private showing today.

Factors That May Affect Your Property Values

1. Location, Location, Location - Location is perhaps the single biggest indicator of worth of property, whether it is land or a home.
2. Availability and Current Location of Utilities - Utilities including water, sewer, electric, telephone and natural gas all help determine the value of land. This is only a determining if you have land. However, in a house the type of utilities available can affect you home value. For example, Conway Corp, offered within the City of Conway has traditionally offered competitive utility rates when compared to surrounding areas.
3. Zoning - Zoning is an important indicator of value assuming the property is within the city limits.
4. Floodplain/Floodway Issues - If the property is in the floodplain or floodway your property value may decrease dramatically.
5. Neighborhood - The area surrounding the property is an important factor when determining property worth.
6. Topography - Flat land is usually more valuable than rocky or hilly terrain. Lowland wetlands are less valuable.
7. Waterfront - Being waterfront can add significant value to property whether it is a home or land.
8. Access - Accessing the property is vital in determining property worth, as well as the quality, type, and traffic count of roadway.
9. View - A scenic view makes property more valuable.
10. Mineral Rights - Mineral rights have the potential to provide long term income to the property owner. Whether or not you own the mineral rights to your property can significantly affect your land value.
These are all general guidelines and not intended to replace a comparative market analysis or appraisal of property.
If you would like a Comparative Market Analysis on your house or land, call one of our award winning real estate agents at CENTURY 21 Dunaway & Hart, Inc. at 501-327-2121 or 800-490-0021.