How to maintain a high credit score

December 1st, 2008 Sharon Merritt

There are three major credit bureaus that collect data that determines your score.  The major purpose of a credit score is to predict if there will be a 90 day late payment over the next 24 months.  The score is a numerical value that ranks individuals according to their credit history at a given time.  New data is sent on a regular basis so your score can change daily.  The highest score possible is 900 and the lowest is 350.  the median score is 720, while the average is 686.  Here is a familiar scale (like in school) that will give you a rough idea how your score looks:  A: 750+; B: 700-750; C: 650-700; D: 580-650, F: <580. 

Data on your report goes back 7 years (10 years for a bankruptcy) and the score is base on 30 different factors.

Scores are calculated this way:

35% from past payment history

30% from outstanding balances carried on accounts

15% from length of credit history

10% from types of credit you have

10% from your request for credit (inquiries)

Here is a list of things you can do to maximize your credit score:

*Avoid late payments of any kind; (the most recent 2 years carry the most weight).

*If you have older collections, DO NOT PAY Them OFF until speaking with someone.   Normally when they are paid off the accounts will then appear as new collection and can lower your score.

*Have the right number of accounts, at least 2 open for 6 months.

*Having 3-5 different types of accounts is the optimal numer to have opened.

*Keep the accounts open that you have had for a long time, close the newer ones.

*Maximize your credit limit on credit cards (while keeping your balance low).

*Minimize your balance on credit cards.  A balance of 30% or less of the high credit limit is best.

*Limit the number of inquiries on your credit.  There  is a 45 day window for “Like kind” credit inquiries, so all mortgage inquiries pulled within a 45 days counts as only 1 pull.

*Review your credit report regularly.  Pulling your own report does not count as an inquiry.  Both www.myfico.com or www.annualcreditreport.com are good websites to use.

This information outline was provided by Nancy Grieve, Mortgage Loan Consultant.  She is happy to talk with you to answer you questions.  770-798-9780; nancy.grieve@fairfieldmortgage.com

Posted in Blogroll | No Comments »

It’s all about the timing

November 19th, 2008 Sharon Merritt

Sometimes it is all about the timing.  This fall I worked with a couple that sold their current residence and then found another home that was both newer, larger, and on a basement for less than they sold their old home for.   Call me for the details I’ll tell you all about it.

It is hard to decide when it is time to make the move. Most of the people I have been working with this year want to purchase a home but have a home to sell.  Do you want to sell and buy when the market is on the way down, when the market is at the bottom, or when the market is on the way up? 

There are three types of sellers on the market right now, those that want to sell, those that need to sell, and those that have to sell.   My advice to you will differ depending on your category.

The bottom line is, if you are able to sell your home in this market for profit, you can increase that profit when you purchase.  All it takes is a good Realtor to navigate the process with you.

I am always available to discuss your personal real estate goals and/or answer your real estate questions.

Posted in Blogroll | No Comments »

The law of supply and demand

November 10th, 2008 Sharon Merritt

In January, 2008, new residential construction pretty much came to a stop.  In today’s Gwinnett Daily Post there is an article about Gwinnett County Planning and Zoning cutting their staff by half because of the reduced need brought on by the reduction in permits.  Very, very few new homes are being built.  However, people are still moving to Gwinnett, people are still getting married and having babies, people are living longer.  True, there is a glut of foreclosure homes currently on the market.  Last week I ran a search that indicated 43% of the homes in Gwinnett 63 with listing prices of $180,000 to $250,000 that had gone under contract since August 1st were foreclosures or short sales.   The number of residential home sales in September, 2008, was up from September, 2007.

What happens when the foreclosure inventory returns to normal?

The supply will be down, but the demand is growing.

The national supply of residential inventory has dropped from 11.5 months of inventory to 9.9 months of inventory since January of this year.

If you are a buyer, now is the time to buy–the foreclosures out there are amazing deals.

If you are a seller, you need to watch the inventory and time the marketing of your home.  I am always available to discuss your personal real estate goals.  Give me a call!

Posted in Blogroll | No Comments »

The Truth

October 9th, 2008 Sharon Merritt

Some days it appears the real estate market is picking up.  The first of this week is one of those times.  I wonder if my belief that we are at the bottom of the declining market communicates nonverbally and brings me phone calls.  In the last two days I have received three referrals and all three were told the same thing, Sharon will tell you the truth.  Wow, what a compliment.   Do you want to know the truth about what your home is really worth?  Check out your subdivision sold comparables.   If there is a sale of a home similar to yours that was not a foreclosure or short sale, that closed during the last 90 days, you have a very good comparable.   You may be able to easily determine a range of value based on that sale.  In addition to the sales price, condition of the home and layout of the lot, other things to consider include days on market and seller concessions.  However, there is not much selling and you may have to determine value based on old sales, or sales in other subdivisions, or sales of homes very different from yours.  Ususally you can look at sold comparables from years past and determine the value your subdivision has for various features, including basements, bonus rooms and fenced yards.  In this declining market we are hearing figures of homes depreciating 17% to 20%, but this has not been my observation.  As always, I would consider it an honor to talk with you about your personal real estate goals.

Posted in Blogroll | No Comments »

Before it’s too late…

October 7th, 2008 Sharon Merritt

Today a friend of mine is losing her home to foreclosure.  Her home will be auctioned on the courthouse steps and she and her family are going to have to move.  Unfortunately, I did not learn of this situation until this past weekend and by then it was too late for me to help her.

If you, or someone you know, is in a similar situation please give me a call.  At the very least I can tell you what to expect in the dispossessary timeline (information my friend found valuable).  However, with my knowledge of the mortgage markets, procedures for restructuring finance, short sales and local real estate there is always the chance I will know about an option you, or your friend/acquaintance, may not have considered.  Please do not hesitate to call or e-mail with any real estate question, concern, or need. 

How may I be of service to you?

Posted in Blogroll | No Comments »

1400 foreclosed homes are going to be auctioned

September 30th, 2008 Sharon Merritt

If you are in the market to buy you may want to check out the auction of foreclosed homes at www.USHomeAuction.com.  If you want a book showing the addresses, information about the home, previous value and starting bid price let me know and I will send you one in the mail.  All of the homes that are scheduled for this auction are going to be held Open for the next two weekends and then the auctions begin on Saturday, October 18th. 

Last weekend I sat at an Open House for one of these properties and 8, yes 8, potential buyers came by that one house.  There are buyers in the market today.  If you are a buyer in the market today and are interested in attending the auction and maybe bidding on one of these homes, please let me know–I can guide you through the process and help you make that winning bid.  If you are a potential seller in this market I would look at this auction as a positive thing.

Some of you have been seeing TV ads for this auction over the past weeks but I did not learn about it until last week.  This news in another piece of information that leads me to the conclusion that we are at or near the bottom of the housing decline.  When these 1400 homes are no longer on the market, what is going to happen?  My opinion is the value of homes will start creeping up.

If you were not a news junkie and you dropped out of the sky into our real estate market and saw that the value of homes was good and the the cost of money was good you might share my positive outlook.

As always, I am available to answer your real estate quesetions and/or help you identify and meet your real estate goals.  When you let me discuss your personal real estate goals with you, I consider it a great honor.

Posted in Blogroll | No Comments »

September 26th, 2008 Sharon Merritt

Yesterday was an eventful day for me.  The opportunity to participate in a meeting with a Developer, Land Planner, Project Funder, and a truly amazing Economic Guru (University Dean) was one of the most exciting events I have recently attended.  This group of highly educated and successful people discussed the feasibility of bringing a large scale development out of the ground in southwest Georgia in approximately two years.  There is a new Kia Plant down that way and growth will follow.  Leaving this meeting I was greatly encouraged about the Metro-Atlanta Real Estate Market.

Several days have passed since my last entry into this blog.  I was preparing a couple of sentences that said my opinion was that we were nearing the bottom of the real estate downturn.  In the September/October issue of the Georgia Realtor Magazine the President wrote: ”Things ARE beginning to turn.”  A recent article in the Gwinnett Daily Post from an AP business writer headlined: “Consumer outlook up; housing bottom may be near.”  Then the awful Wall Street meltdown occurred. 

After readjusting my thinking, my opinion is the same.  Real Estate is a localized market.  In the Collins Hill High School District it appears to me that we may be very near the bottom of the downward real estate cycle.

If you are a Buyer that has been waiting for the very best time to buy, consider purchasing now.  If you have not owned a home in the last three years and you qualify (there are income limitations), there is up to $10,000 grant money available to you for use in purchasing your new home.

If you are a Seller that wants to sell as soon as home prices become stable, it is time to start watching your subdivision closely.  If you want me to set you up a Client Gateway so you are notified via e-mail when new inventory comes on the market in your subdivision, let me know.

If you are a Home Owner wanting your equity back, just be patient a little longer.

Real Estate is my passion and I love to talk about it.  Please feel free to contact me at any time.  I am available to discuss your personal real estate goal and/or talk about real estate in general.

Wishing you the very best, I remain…Respectfully yours, Sharon

Posted in Blogroll | No Comments »

October foreclosures in Collins Hill

September 11th, 2008 Sharon Merritt

The foreclosure ads are out for homes scheduled to be sold on the Gwinnett County courthouse steps on October 7th, 2008. The good new is that, if you take out the builder foreclosures, the number of individuals scheduled to lose their homes in foreclosure in the Collins Hill High School District is down more than 30% from the past several months. If you are a buyer there is another piece of good news, there is a builder in this area in jeopardy of losing 17 brand new homes. This may be a great time to grab a wonderful deal. Call me if you want more information.

Posted in Blogroll | No Comments »

New Home contracts, be careful!

September 9th, 2008 Sharon Merritt

In the business of real estate nothing remains the same. A buyer I am currently working with needs to sell their current home before they can buy a new one. McCar Homes, with several new home subdivisions, has a new clause in their contract. Although they accept contingencies (they will allow you to put one of their homes under contract even though you have to sell your current home to close on theirs) the clause says:

“Buyer agrees that if at any time within sixty (60) days after signing this Agreement he/she is offered a contract to purchase or lease such property at a price that is within fifteen (15%) of the current asking price for such property (hereafter defined as “A Reasonable Offer”) then this contingency shall automatically be removed.”

If you are a buyer with a home to sell this clause should be of great concern to you. The way I interpret this clause, the McCar new home buyer has a great deal at risk (thousands of dollars in earnest money at least) unless they are willing to sell their home at 85% of list price. How many sellers do you know that are willing to accept 85% of the value of their home? My buyers were not able to proceed with the purchase of this home, McCar homes is very happy with this sentence. If I was a Seller I would be happy with that sentence too.

Alway remember, an experienced Realtor can guide you through any real estate transaction, always looking out for your best interests and helping you to avoid expensive pitfalls.

Please let me know if I can be of assistance to you in any way at any time.
Sharon Rose Merritt
REALTOR
RE/MAX Center
770-846-5252- Cell
770-338-8307- FAX
sharonmerritt@remax.net
www.real-estateresource.com

Posted in Blogroll | No Comments »

Did You See Margaret Kelly on ‘The Today Show’ Last Week?

September 5th, 2008 Sharon Merritt

RE/MAX International CEO Margaret Kelly was interviewed live by TV host Al Roker on Tuesday, August 26, in the NBC Studio. Margaret was featured in the “Today’s Real Estate” segment, where she shared her best strategies on - How to Sell Your Home. Click here to watch the video.

According to the Realtor database, First Multiple Listing Service, during the month of July, 2008, 38 homes in the Collins Hill High School District closed. Of those 38 homes, 18 of them had a RE/MAX Realtor representing either the Seller or Buyer and 4 of them had RE/MAX Realtors on both the Buyer and Seller side. There is a reason RE/MAX has Premier Market Presence. RE/MAX Realtors are among the most experienced and educated and RE/MAX Realtors are selling houses in this market. Of those 38 homes two of them were sold by the Listing Agent, and one of those was my listing. I understand this market and I know how to get your home sold. Real estate is my passion and I love to talk about it, call or e-mail me anytime with your real estate questions and let’s talk.

Posted in Blogroll | No Comments »