•Eighty-four (84) percent of first-time buyers are aware of the first-time home buyer tax credit and 64 percent of those who state they are in the market for their first home say they qualify for this credit.
•On the first-time seller side, an equal 84 percent are aware of the move-up/repeat home buyer tax credit yet only 33 percent say they qualify for this credit.
Survey results provided by Century 21 Corporate
Wednesday, April 21, 2010
Low Mortgage Rates But How Accessible Are They?
•The majority of first-time buyers (79 percent) and sellers (86 percent) believe mortgage rates are either somewhat or very affordable right now. Again, due to their experience, sellers are more likely than buyers to find the current rates very affordable (35 percent of sellers vs. 21 percent of buyers).
•The low interest rates have influenced 46 percent of owners to sell their home for “move up” reasons and another 43 percent to change neighborhoods.
•Most respondents feel that getting a mortgage today is either somewhat difficult or very difficult (87 percent of first-time buyers and 82 percent of first-time sellers). Because many may be going through the process currently, buyers were significantly more likely than sellers to find the process very difficult vs. not difficult at all.
Survey Results provided by Century 21 Corporate
•The low interest rates have influenced 46 percent of owners to sell their home for “move up” reasons and another 43 percent to change neighborhoods.
•Most respondents feel that getting a mortgage today is either somewhat difficult or very difficult (87 percent of first-time buyers and 82 percent of first-time sellers). Because many may be going through the process currently, buyers were significantly more likely than sellers to find the process very difficult vs. not difficult at all.
Survey Results provided by Century 21 Corporate
Home Price Effects on First-Time Buyers and Sellers
•More than 80 percent of buyers believe now is a good time to buy a home.
•First-time home buyers rated the three most influential factors in their decision to enter the market and buy a home as current housing prices (66 percent), followed closely by both the home buyer tax credit (63 percent) and low interest rates (60 percent).
•Finding a home within a buyer’s price range is extremely important (95 percent), as is a neighborhood’s safety (90 percent).
•The top two factors influencing the first-timers’ decision to sell their homes were personal/family reasons and current housing prices – both of which were cited as motivating factors by 48 percent of first-time sellers.
•Most likely due to their experience, approximately half of first-time sellers (54 percent) think home prices are more affordable now than compared to this time last year.
•In fact, the current home prices have influenced 50 percent of sellers to “move up” and 37 percent to change neighborhoods.
•Sellers are mainly concerned about losing money on the sale of their home and receiving offers near their asking price.
•Approximately half of all first-time home buyers (48 percent) and sellers (53 percent) anticipate housing prices will increase over the next year.
Survey Results provided by Century 21 Corporate
•First-time home buyers rated the three most influential factors in their decision to enter the market and buy a home as current housing prices (66 percent), followed closely by both the home buyer tax credit (63 percent) and low interest rates (60 percent).
•Finding a home within a buyer’s price range is extremely important (95 percent), as is a neighborhood’s safety (90 percent).
•The top two factors influencing the first-timers’ decision to sell their homes were personal/family reasons and current housing prices – both of which were cited as motivating factors by 48 percent of first-time sellers.
•Most likely due to their experience, approximately half of first-time sellers (54 percent) think home prices are more affordable now than compared to this time last year.
•In fact, the current home prices have influenced 50 percent of sellers to “move up” and 37 percent to change neighborhoods.
•Sellers are mainly concerned about losing money on the sale of their home and receiving offers near their asking price.
•Approximately half of all first-time home buyers (48 percent) and sellers (53 percent) anticipate housing prices will increase over the next year.
Survey Results provided by Century 21 Corporate
Monday, April 19, 2010
Short Sales Updates--RobertoandAssociate.com
- All new Bank of America/Countrywide short sales must be submitted using their "Equator" system. This system should expedite the tracking of short sales.
- NEW short sales seem to be more efficiently handled by the lenders and servicers. There are still delays with the investor part of the process. The older files (more than 3 months in processing) are still taking longer to complete.
- If Wachovia owns the loan in their portfolio and it is not owned by an investor, they are "Fast Track"ing them and buyers can get answers within weeks. "Fast Track" is their internal short sale processing system. If it is part of this system, no hardship letter or financials are needed.
- Sellers do NOT need to be late to be considered for a short sale--but they must show hardship to the lenders.
- Each short sale is dependent upon the cooperation and completeness of information requested from sellers for the lenders, the efficiency of the loss mitigator assigned to the file, the policies and systems in place with the lender (servicer), the investor (AmTrust needs FDIC approvals which may take months), the contract offer price, the value (correct or not) of the BPO (Broker Price Opinion) obtained by the lender, the BPO's physical inspection vs. computer values, the seller's financial hardship, the amount of the delinquent association dues and other factors. All these elements must align. As a result, the process takes
time and research to clear or negotiate.
- "Release of Mortgage" on an approval letter does not mean release of deficiency or release from the "Note". Sellers need to talk with their attorney for clarification.
- NEW short sales seem to be more efficiently handled by the lenders and servicers. There are still delays with the investor part of the process. The older files (more than 3 months in processing) are still taking longer to complete.
- If Wachovia owns the loan in their portfolio and it is not owned by an investor, they are "Fast Track"ing them and buyers can get answers within weeks. "Fast Track" is their internal short sale processing system. If it is part of this system, no hardship letter or financials are needed.
- Sellers do NOT need to be late to be considered for a short sale--but they must show hardship to the lenders.
- Each short sale is dependent upon the cooperation and completeness of information requested from sellers for the lenders, the efficiency of the loss mitigator assigned to the file, the policies and systems in place with the lender (servicer), the investor (AmTrust needs FDIC approvals which may take months), the contract offer price, the value (correct or not) of the BPO (Broker Price Opinion) obtained by the lender, the BPO's physical inspection vs. computer values, the seller's financial hardship, the amount of the delinquent association dues and other factors. All these elements must align. As a result, the process takes
time and research to clear or negotiate.
- "Release of Mortgage" on an approval letter does not mean release of deficiency or release from the "Note". Sellers need to talk with their attorney for clarification.
Friday, April 16, 2010
How to Determine the Price of Your Home
Why is it that some homes sit on the market for a year while others sell like hot cakes? Frustrated sellers will blame a bad market, while a good real estate professional will tell you that many times, a slow sale is often attributed to the listing price.
If a home is overpriced, buyers will stay away. But, if the price is competitive with similar homes in the area and “shows” better than the competition, it will have a better chance of being sold quickly.
The secret is perfecting a technique that’s as American as apple pie: comparative shopping.
Although comparing houses with different styles, square-footages and locations is challenging, real estate professionals still feel it’s one of the best methods to use when determining a home’s market value.
A responsible real estate agent will effectively evaluate a home’s worth through a process known as Comparative Marketing Analysis (CMA). Taking a look at assets, such as a swimming pool, bigger than normal living spaces, a fantastic view, adjacent city parks and other attractions, the agent will begin to compare your home with similar properties, called “comparables,” that have sold in the area within the last six months. Typically, the agent is able to recommend a realistic price range that will ensure you top dollar and a reasonably
However, factors such as the amount of time needed to sell your home can alter the agent’s price recommendation dramatically.
Typically, people should check with real estate offices in the community to determine the typical duration that listings are on the market. Sales associates will explain that the marketing “norms” vary with prices and properties. Based on this criteria, the agent feels confident that he or she will be able to sell it for a price that both you and the buyer will be happy with. However, if you’re under time constraints because of unexpected job changes or moving agreements you’ve made on another property, this will narrow your chances of selling the home for top dollar in the market.
Assuming you have sufficient time to market the home, here are a few small steps you and your agent can take to finding the right price for your property.
The best comparisons can be made with similar homes that have been sold within the last 45 days as opposed to the standard six months. Any longer and other factors, such as the economy, could cloud your view of how much your home is really worth.
Another good benchmark is to review the selling prices of homes that have just been sold and are pending closes. Most MLS services provide information on deals pending that most real estate agents should be able to shore with you.
A good rule of thumb before setting a price is to make 20 comparisons of comparable properties within a one-mile radius of your house. Once completed you can feel comfortable that the price you’ve picked is a good gauge of the home’s worth and won’t discourage qualified buyers.
Being open and honest about what you see as the home’s greatest strengths and biggest weaknesses will also help an agent get a better feel for how to best evaluate (or assess) and market your home. Think of your home as if you were the buyer. If your home is listed at the right price, you’re well on your way to a speedy and fruitful sale.
If a home is overpriced, buyers will stay away. But, if the price is competitive with similar homes in the area and “shows” better than the competition, it will have a better chance of being sold quickly.
The secret is perfecting a technique that’s as American as apple pie: comparative shopping.
Although comparing houses with different styles, square-footages and locations is challenging, real estate professionals still feel it’s one of the best methods to use when determining a home’s market value.
A responsible real estate agent will effectively evaluate a home’s worth through a process known as Comparative Marketing Analysis (CMA). Taking a look at assets, such as a swimming pool, bigger than normal living spaces, a fantastic view, adjacent city parks and other attractions, the agent will begin to compare your home with similar properties, called “comparables,” that have sold in the area within the last six months. Typically, the agent is able to recommend a realistic price range that will ensure you top dollar and a reasonably
However, factors such as the amount of time needed to sell your home can alter the agent’s price recommendation dramatically.
Typically, people should check with real estate offices in the community to determine the typical duration that listings are on the market. Sales associates will explain that the marketing “norms” vary with prices and properties. Based on this criteria, the agent feels confident that he or she will be able to sell it for a price that both you and the buyer will be happy with. However, if you’re under time constraints because of unexpected job changes or moving agreements you’ve made on another property, this will narrow your chances of selling the home for top dollar in the market.
Assuming you have sufficient time to market the home, here are a few small steps you and your agent can take to finding the right price for your property.
The best comparisons can be made with similar homes that have been sold within the last 45 days as opposed to the standard six months. Any longer and other factors, such as the economy, could cloud your view of how much your home is really worth.
Another good benchmark is to review the selling prices of homes that have just been sold and are pending closes. Most MLS services provide information on deals pending that most real estate agents should be able to shore with you.
A good rule of thumb before setting a price is to make 20 comparisons of comparable properties within a one-mile radius of your house. Once completed you can feel comfortable that the price you’ve picked is a good gauge of the home’s worth and won’t discourage qualified buyers.
Being open and honest about what you see as the home’s greatest strengths and biggest weaknesses will also help an agent get a better feel for how to best evaluate (or assess) and market your home. Think of your home as if you were the buyer. If your home is listed at the right price, you’re well on your way to a speedy and fruitful sale.
Monday, April 12, 2010
Establish Realistic Goals When Shopping for Property
With the Internet espousing $20,000 single house foreclosure deals, the public's expectations of what is available on the market is quite warped. Recently, I showed a property that was listed for $39.9K. Most of the townhouses in the area were going for $80K or more, so this unit was a real deal. After viewing the property, there was only about $5K in repairs. So the property truly was an amazing deal--at $39.9K. My customer hesitated to "make a decision" and lost the deal, however within 4 days there were 11 cash offers at significantly more money than the listing price. Eventually, the property sold for $80K and the "deal" turned out to be just like a regular sale. But for all the naive internet shoppers, the listing changed their perception of the marketplace, because they don't follow up to find out what the real sale price is verses the listing price. Today, inexpensive properties are going through price wars.
As realtors we are seeing more gimmicks to try and delude individuals into believing that there are unbelievable deals. Typically, the $40K properties that we see as realtors are missing all the appliances, terribly located, mold problems, critter infested, missing or damaged walls or other major renovations needed. There ARE deals, but remember the deals are relative. If a property was selling for $2 million and it is listed for $1.2 million in move-in condition, it's a deal. If a property was listed for $79K a couple years ago and now is $50K which requires lots of work. That's not as good of a deal.
Another reason many buyers have unrealistic goals is that they see a friend's property that they just finished renovating. The friend paid $150K for the property and put in $70K in upgrades. When the buyer asks the friend what did you pay for it. The natural response from the friend is to say $150K, but the reality is that in its current shape, the property is worth $220--with months of living in upheaval during renovation.
As buyers, set expectation in reality. Don't expect that all the units in a condo are going to go for the same price as the 30-year old, original condition, short sale price. All properties in the same building aren't work the the same price. (Most sellers think their property is the best in the complex!!)
To also put South Florida in perspective, there are only a few places in the US where the weather is nice all year round. Hence South Florida is one of the most desirable places in the US to live. When people move to Florida they want to be near the water and amenities. All these factor add value to the property. So if you want sand-access with your beach front property, you will pay more money than if you choose to live 5 miles from the beach.
For more information on what a buyer should expect to pay when purchasing in the Fort Lauderdale area, contact Kirk Nicklas at 954.547.3146.
As realtors we are seeing more gimmicks to try and delude individuals into believing that there are unbelievable deals. Typically, the $40K properties that we see as realtors are missing all the appliances, terribly located, mold problems, critter infested, missing or damaged walls or other major renovations needed. There ARE deals, but remember the deals are relative. If a property was selling for $2 million and it is listed for $1.2 million in move-in condition, it's a deal. If a property was listed for $79K a couple years ago and now is $50K which requires lots of work. That's not as good of a deal.
Another reason many buyers have unrealistic goals is that they see a friend's property that they just finished renovating. The friend paid $150K for the property and put in $70K in upgrades. When the buyer asks the friend what did you pay for it. The natural response from the friend is to say $150K, but the reality is that in its current shape, the property is worth $220--with months of living in upheaval during renovation.
As buyers, set expectation in reality. Don't expect that all the units in a condo are going to go for the same price as the 30-year old, original condition, short sale price. All properties in the same building aren't work the the same price. (Most sellers think their property is the best in the complex!!)
To also put South Florida in perspective, there are only a few places in the US where the weather is nice all year round. Hence South Florida is one of the most desirable places in the US to live. When people move to Florida they want to be near the water and amenities. All these factor add value to the property. So if you want sand-access with your beach front property, you will pay more money than if you choose to live 5 miles from the beach.
For more information on what a buyer should expect to pay when purchasing in the Fort Lauderdale area, contact Kirk Nicklas at 954.547.3146.
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