•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
Wednesday, April 21, 2010
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.
Friday, March 5, 2010
Remodeling Your Home: Home Much is Too Much?
The classic way for homeowners to increase the value of their house is by remodeling existing rooms or adding on to its current plan.
Some choose to build recreation rooms and studies while others add new appliances, fixtures and cabinets to enliven rooms and make their home more attractive to future buyers.
But, when should you decide to stop sinking money into a home and buy a bigger place? And how much rehab is too much when it comes time to recovering remodeling costs through a home sale.
For instance, if you’ve just spent $1,000 remodeling your living room and didn’t expand your small bathroom, the chances of increasing the number of interested buyers are slim.
With these concerns in mind, Century 21 sales associates offer a few tips for those struggling to add value to their home.
First, always protect the character of your home. Nothing sticks out more than a new addition that is in a completely different architectural style. Be consistent. Recognize your home’s character and stay within its framework.
The most financially rewarding areas to remodel are usually the kitchen and bath. Newly re-done cooking spaces and cabinets can attract more buyers and may command a slightly higher price for the home than a comparable one on the market. Simple repairs that are made to last will bring you the biggest returns upon sale.
Enlarged bathrooms are the most popular attraction for new home buyers, according to the National Kitchen and Bath Association. Today, the most popular additions for younger buyers are sunken whirlpool baths and showers. But be sure to install modest, solid amenities. It’s easy to quickly over-spend on bathroom fixtures.
Buyers are, by convention, more interested in above-ground living space – not basements, yards and walkways. Swimming pools can be a poor investment if installed for the sole purpose of increasing a home’s value; it’s rare that a pool’s cost will be recovered in a home sale. It can also be a negative feature for potential buyers with very young children.
Replacing worn carpeting, tiles and wood floors can give your home an immediate advantage over similar properties in the area. Updating paint colors in all areas of your home can also prove beneficial.
However, it’s recommended that you use neutral colors, such as gray, beige and off-white when adding new floor and wall coverings. Fewer buyers will then turn away because of differing tastes.
Stay simple with your remodeling and look at your home as though you were the buyer. Chances are that if you find the upstairs bedroom could be brightened by a larger window, potential buyers will probably feel the same.
Don’t go overboard. Concentrate on improving two or three deficiencies in your home. More than likely, the time and money you spend adding quality to your home.
Some choose to build recreation rooms and studies while others add new appliances, fixtures and cabinets to enliven rooms and make their home more attractive to future buyers.
But, when should you decide to stop sinking money into a home and buy a bigger place? And how much rehab is too much when it comes time to recovering remodeling costs through a home sale.
For instance, if you’ve just spent $1,000 remodeling your living room and didn’t expand your small bathroom, the chances of increasing the number of interested buyers are slim.
With these concerns in mind, Century 21 sales associates offer a few tips for those struggling to add value to their home.
First, always protect the character of your home. Nothing sticks out more than a new addition that is in a completely different architectural style. Be consistent. Recognize your home’s character and stay within its framework.
The most financially rewarding areas to remodel are usually the kitchen and bath. Newly re-done cooking spaces and cabinets can attract more buyers and may command a slightly higher price for the home than a comparable one on the market. Simple repairs that are made to last will bring you the biggest returns upon sale.
Enlarged bathrooms are the most popular attraction for new home buyers, according to the National Kitchen and Bath Association. Today, the most popular additions for younger buyers are sunken whirlpool baths and showers. But be sure to install modest, solid amenities. It’s easy to quickly over-spend on bathroom fixtures.
Buyers are, by convention, more interested in above-ground living space – not basements, yards and walkways. Swimming pools can be a poor investment if installed for the sole purpose of increasing a home’s value; it’s rare that a pool’s cost will be recovered in a home sale. It can also be a negative feature for potential buyers with very young children.
Replacing worn carpeting, tiles and wood floors can give your home an immediate advantage over similar properties in the area. Updating paint colors in all areas of your home can also prove beneficial.
However, it’s recommended that you use neutral colors, such as gray, beige and off-white when adding new floor and wall coverings. Fewer buyers will then turn away because of differing tastes.
Stay simple with your remodeling and look at your home as though you were the buyer. Chances are that if you find the upstairs bedroom could be brightened by a larger window, potential buyers will probably feel the same.
Don’t go overboard. Concentrate on improving two or three deficiencies in your home. More than likely, the time and money you spend adding quality to your home.
Tuesday, March 2, 2010
Flipping Out on New FHA Regulation
Information provided by Jim Monninger, Mortgage Specialist, Jim@FirstTrustMortgage.biz
On January 15, 2010, FHA made some changes to the June 7, 2006 anti-flipping policy on property flipping.
For the past 3 1/2 years HUD has not allowed the resale of a property within 90 days due to flipping concerns. While the initial intent was to prevent the rapid escalation of the price of homes through questionable flipping of properties, it is now hindering the sale of homes since prices have fallen and more properties are the subject of foreclosure.
While there were several exemptions to the rule, almost all applied to Banks and Financial companies. This change will directly impact the small investor who buys properties cheaply and repairs them for resale.
Currently many HUD or Lender Repo's are sold "As Is" without warranties or repairs. Many of the foreclosed homes are purchased by investors who have the means to repair the homes but may not purchase the homes due to the 90 day holding requirement to sell to a new FHA Buyer and the cost and risks associated. These buyers have to account for the longer holding time and potential risk of vandalism. Thus the homes tend to sit vacant longer and hinders community stabilization and revitalization.
Beginning February 1, 2010, sellers that meet the new requirements may be able to sell the property prior the old 90-day rule. The sales must be an arms-length transaction. The seller must hold title to the property (i.e. no double closing). There must not be prior evidence of flipping on the property and special rules apply if the increase from the sellers purchase price the buyers purchase price is greater than 20%.
This is a positive change from HUD. Homes may stay vacant less and buyers have more options. These transactions will be under more scrutiny but they can now get completed
With FHA case numbers pulled on or after 4/5/2010 the UFMIP (Up Front Mortgage Insurance Premium) increases from 1.75% of the loan amount to 2.25% of the loan amount. The good news is that it is still financed as an addition to the base loan amount.Another bit of good news is that the 6% seller contribution will continue for another few months and the talk of increasing the FHA minimum down payment from 3.5% to 5% has been but on indefinite holdhttps://entp.hud.gov/idapp/html/condlook.cfmThe following link is the link to the FHA condo search website:
Monday, February 1, 2010
Fannie Mae Announces 3.5 Percent Seller Assistance on HomePath® Properties
WASHINGTON, DC — Fannie Mae (FNM/NYSE) announced today that people purchasing a Fannie Mae-owned HomePath® property will receive up to 3.5 percent of the final sales price to be used toward closing cost assistance or their choice of appliances. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010. "Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover. Many families are taking advantage of the federal homebuyer tax credit to buy a new home so this is a great time for Fannie Mae to offer some additional help," said Terry Edwards, Executive Vice President of Credit Portfolio Management. "Homebuyers have the option to choose between financial assistance toward closing costs or new appliances for their home." Properties eligible for this incentive are listed on HomePath.com and most listings include detailed property descriptions, photographs, community and school information and more. In addition, many Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing which offers homebuyers an opportunity to purchase with as little as 3 percent down. | |||||||
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the | |||||||
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