Q. Which is a better investment, the stock market or real estate?A. "Better" is a relative term. What is better for one person may not be for another.Investing in the stock market is much more a passive investment than investing in real estate. You buy a stock and then wait to see which direction it goes, up or down. Your potential gain is determined by many factors, most of which you cannot control. If you make the right buying decisions you can make a lot of money, sometimes in a very short period of time. The reverse can also happen.Delaware People who favor real estate as an investment are usually people who do not have the temperament for the level of anxiety that can be involved in stock investing and wish to put their money into something they can see and feel. Their feelings are... 02/27/2008

My home has been on the market for months, why hasn't it sold?Answe: Without a doubt the number one reason people can't sell their home fast is the price is too high.In order to price your home to sell you need to know the true market value. Everyone claims their home is worth more than it really is worth. The truth is that your home is only worth what someone is willing to pay for it. Knowing this, it is important to find out what people are paying for homes that are comparable to yours. There are several methods of getting good home values and the list follows:There are several websites that offer free home appraisals and most use public records to determine your home value. Basically the websites use local home sales to give you an idea of what your home is worth. It is important to ... 02/27/2008

Q. How much delaware real estate insurance do I need to protect my home if it is ever destroyed?A. Over 70% of the homes in the USA are underinsured and, of those homes, 70% are underinsured by at least 30%. This is a major problem! The confusion between market value and replacement value is where many of these problems originate.Many people base their insurance coverage on the market value of their home. Market value is what a buyer will pay for your property, but this is irrelevant if your home is destroyed. What you should really be basing your coverage on is replacement value.When computing replacement value you must figure in all of the costs of rebuilding your home. This can be 20-30% more than new construction because of the added cost of demolition and removal. Once the land is ... 02/27/2008

Is it wise to use a flat-fee realtor to list my home for sale?A. Many people believe that using a flat-fee realtor is a way to get their home listed in the multiple listing service (MLS) and still save a lot of money on the commission.A flat-fee realtor charges a fee to place the home in the MLS and does little, if anything, else. That can be a false economy for a couple of important reasons. First, it's not enough to just place the house in the MLS. It is desirable to offer a commission to any broker who brings you a buyer.Second, MLS of Delaware Home printouts show the origin of the listing. If any Delaware agents see that the listing was placed by a flat-fee broker. Delaware Agents know that most people who sell by owner do not have the experience and expertise to understand all the ... 02/27/2008

QUESTIONS From My Delaware Buyer: We're hearing a lot about "sub-prime" loans. What are they?A. Sub-prime lending, is the practice of making loans to borrowers who do not qualify for the best market interest rates because of their deficient credit history. Most borrowers of this type have a credit score of less than 620.Sub-prime lending is risky for both Delaware lenders and borrowers due to the combination of high interest rates, poor credit history, and adverse financial situations usually associated with sub-prime applicants. A sub-prime loan is offered at a rate higher than A-paper loans due to the increased risk.Sub-prime lending is highly controversial. Opponents have alleged that the sub-prime lending companies engage in predatory lending practices such as deliberately lending t... 02/27/2008

QUESTION From a Delaware Real Estate Buyer.  Is this the best time to buy a new home or a used home?A. With all the problems in the real estate industry, this may be the best time to get a good deal on a new home rather than an existing one.In some cases, builders of new homes have trimmed prices to such an extent in the second half of 2007 that buyers in many markets are actually paying less per square foot on average for new homes than used homes. The median price per square foot for new homes nationally has dropped in 2007 while the median price per square foot for existing homes has actually risen.People who have had an existing home on the market and can avoid having to sell (for job transfers, bankruptcies, and other life changes) will take the home off the market and sit tight ra... 02/27/2008

Delaware Real Estate Corner Realty Question: We have a lot of equity in our Dover home and we've been thinking of selling. Will we have to pay a lot of taxes after the sale?     A. Every situation can be different and the laws in every state differ, so you should talk to your tax professional. But if you've lived in the home for 2 of the last 5 years, you could qualify for a tax exemption on capital gains of $500,000 (if filing jointly) or $250,000 (if filing singly). The Taxpayer Relief Act of 1997 allows for this if a variety of requirements are met. Because the savings can be huge, it pays to thoroughly investigate this possibility.     There are many other factors that can come into play such as how the home was bought, how it was used. Was it a rental? What kind of improvements did... 02/27/2008

  Dear Delaware Real Estate Customers:     Hello, and thank you for visiting my House Search web site, as you see I am the exclusive realtor for the Dover, Delaware territory. Please feel free to use any of the material forwarded to you for your own research.   I willl be contacting you within the next few days to see if we can discuss your needs so that I may be of better service to you. I will also set you up to also receive daily listing information that comes through our multi list service so that you can view everything on the Delaware market that meets your criteria. This information is free and does not by any means lock you into using me as your realtor. However, if you choose to do so I would be glad to have the opportunity to help you purchase your next home.   I can be reache... 02/27/2008

With News Of A Possible Ressession in the USA is buying a home on your mind?  Many will say no and some will say yes.  As a Dover Realtor Helping HomeBuyers with my real estate team right now we have been seeing some great prices on homes!  Dover is a wonderful community that has local shopping mall nearby, the Dover mall as well as some Wal-Mart's , Target , and K-Mart.  Dover has bowling, skating rink , movie theatre and many other attractions that a new home owner could want.  I encourage you to take a look a the Delaware Real Estate Section on my website which features all the homes in Dover, Felton, Camden, and Smyrna.  Please visit this website especially if you are a first time home buyer.  Buying A Home Does Not Have To Be a Complicated Process!  Let Realtor Tom Davis Ease you t... 02/27/2008

Looking For Dover Homes?  Dover Is The Capital Of The First State Of Delaware!  Dover Is Also Well KnownFor Our Tax Free Shopping!  I would like to help you find the right home for sale!  You Can Find Out More AboutDover by visiting http://www.cityofdover.com/ If you enjoy Nascar Races then Dover is a great location for you to out the Dover Nascar Races as well!  Dover has great resturaunts for dining out, notable casino's like Dover Down, Horse Racing and much more!  Tom Davis Is A Licensed Real Estate Agent That helps out Home Buyersin Dover and around Delaware.  Tom can schedule an appointment to go over your housing needs.  Tom believes in providing a hassle free service for his buyers and sellers.  If you would like to begin your home search right away to see what homes are for sal... 01/17/2008

December is just around the corner, and the holiday season is upon us once again!  Here in Dover that means plenty of activities to enjoy and memories to be made with the whole family.Print this flyer to keep track of all of the holiday festivities happening in Dover during the coming month.  You may also consider beginning a new family tradition of cutting your own Christmas tree this year!  Check out this list of local Christmas tree farmers to find a "pick-your-own" tree farm near you.To learn more about living in Dover and Dover DE real estate please visit DoverAreaRealEstate.com.   11/29/2007

About 65% of the questions I receive from brokers are about collections-a staggering percentage. Most of the questions relate specifically to how they can best handle a derogatory item or "trade line that is bringing down a credit score - killing the deal. That's why it is so important for you to know the best ways handle the problem quickly. It's critical that you know the truth from the myths because the obvious solutions may very well be the wrong ones. Here's a quick lesson: Surprisingly enough, it's not always right to advise a client to pay a recent collection. Paying it off can actually bring down the score because it creates a "recent derogatory," A very negative label that can make the score drop by 50 to 75, or even more points. Knowing this, both brokers and consumers become ... 05/03/2007

Annual Percentage Rate (APR) is a tool that consumers can use as a starting point to compare loan programs. However, it's important to keep in mind that APR is not a perfect system, and not all lenders calculate APR in the same way. While the Federal Truth-in-Lending Act does require any mortgage broker or lender to disclose APR to the consumer, there is no rule written in stone for calculating this number that each and every lender agrees upon.The point of calculating APR is to let the consumer know what the actual cost of their financing is in the form of a yearly rate. APR factors in certain closing costs and fees associated with the loan, and spreads this total over the life of the loan along with the actual note rate. The objective is to give the consumer a clearer picture of what ... 05/03/2007

Few things are as devastating as losing your home. Sadly, it's not always inevitable. In many cases the foreclosure could've been avoided with some outside help.You are in a unique position to advise your clients in financial matters. If you know that a client is on the path toward foreclosure, take the time to show them how it can be avoided. First, remind them of some of the hidden difficulties that will arise if foreclosure occurs.Finding a new home. Don't let your clients believe that it will be better to let the foreclosure happen, because after they lose their home, they will still need to find a new place to live. All too often, the price they will need to pay in rent will be almost as high if not higher than their current mortgage payment. Remember: The owner of the property nee... 05/03/2007

Consumers are often misled when it comes to the subject of the Federal Reserve and how it affects mortgage interest rates. Often the media is the culprit causing the confusion. In the last few years, the Fed has taken action that caused mortgage interest rates to move in a direction other than what consumers expected, because the media provided weak reporting on the subject.The Federal Reserve affects short-term interest rate maturities, the Fed Funds rate, and the Overnight Lending rate. These factors have a direct impact on the Prime rate. If you took only this into consideration, you may mistakenly conclude that changes made by the Fed will cause a similar movement in mortgage interest rates. However, mortgage interest rates are dictated by the trading of mortgage-backed securities, ... 05/03/2007

The effects of the subprime crisis are becoming clearer with each passing day. According to the Wall Street Journal, tightening guidelines and fewer available products are creating challenges for borrowers with credit issues. If you're thinking about taking on or refinancing a mortgage, your credit score will be crucial when it comes to obtaining the best loan program available. For homeowners with ARMs that are scheduled to reset anytime within the next 2 to 24 months, the challenges are even greater. With higher credit standards and tightening guidelines, you may not even qualify for a refinance if you wait too long. At this stage, a fixed-rate product may be your best chance at creating real financial stability before your loan resets and your payment adjusts. Even if your mortgage h... 05/03/2007

Those who take property ownership seriously often look for options to build equity at a faster pace. An aggressive approach is to select a 15-Year loan program over a 30-Year mortgage.A 15-Year loan works well for homebuyers budgeting time and money, those who are possibly looking forward to a debt-free retirement, or those who plan to upgrade to a larger home within 15 years. But this requires a sincere commitment to making substantially larger monthly payments.Provided the homeowner can afford the financial commitment of a 15-Year loan, they will pay significantly less money in interest simply because the life of the loan is spread over a shorter period of time. However, they need to be aware that unless they are extremely financially secure, even a minor setback can have a tragic imp... 05/03/2007

Harrington ERA Realty and at home mortgage offers the most comprehensive relocation service in our area. Some highlights of our program are: A highly-trained relocation team whose primary purpose is to see that your transfer into Central Delaware is smoothA full-time, licensed, corporate relocation specialist who will manage all aspects of your firm's relocation programA network of 34,000 member brokers and sales associates in over 3,000 offices worldwide who will facilitate the sale of your home as you prepare to move to Central DelawareAn equity advance program through ERA's Seller's Security Plan for qualified sellersA Central Delaware touring/orientation program to assist your transferees with familiarization of area sites, shopping centers, tourist attractions, and moreFirst-day ex... 02/27/2007

  Here's the answer.... Bankruptcies and foreclosures can remain on a credit report for seven to 10 years. Some lenders will consider a borrower earlier if they have reestablished good credit. The circumstances surrounding the bankruptcy can also influence a lender's decision. For example, if you went through a bankruptcy because your employer had financial difficulties, a lender may be more sympathetic. If, however, you went through bankruptcy because you overextended personal credit lines and lived beyond your means, the lender probably will be less inclined to be flexible. 01/07/2007

While it is true that most people who become millionaires do so through real estate, this investing tool also creates its share of financial problems. Investing in real estate is just like any other type of investment, do your research to avoid mistakes. Here is a list of common errors new or wannabe real estate investors make. 1. Buying the first house you can. In the eagerness to get started investing, some investors jump on the first property that they find available. Some of this is due to over excitement, some due to laziness (not wanting to look any more) and some due to fear - that there won't be other deals. There are always deals to be made in the real estate market. Only buy that first property you see if the numbers work. 2. Being more eager to buy than the seller is to sell.... 01/07/2007