One of our favorite Mortgage Lenders, Michael Caputo, sent us the following information. Ever wonder what the big hype is over the Greek economy and why we should care about it? Read below.
I had an agent ask what all the talk was about Greece and why we care about it.
First, How Mortgage Rates Work
Rates come from the price of a mortgage-backed bond that's bought and sold on Wall Street, and that has its pricing set in the same way as a stock does -- supply and demand. When demand for bonds is high, in other words, prices rise.
Rising prices means lower rates on mortgage for buyers and refinancing households.
By contrast, though, when demand for mortgage bonds is low, bond prices fall. This leads to higher mortgage rates for everyone.
The relationship between mortgage bond demand and mortgage rates holds for most types of loans including the conforming, FHA, USDA and "high-cost" conventional varieties.
Because mortgage rates are based on the price of mortgage-backed bonds -- as a rate shopper -- one of the most important questions you can ask your lender is "What is the mortgage bond market doing today?".
It's your best insight into where mortgage rates might go next.
Mortgage Rates Sink On Economy, Greece
Since April, demand for mortgage bonds has been high; so high, in fact, that rates plunged to an all-time low, reaching sub-4 percent levels we never thought we'd see.
Mortgage rates have been low because investors need safe places to park their funds. Equity markets are unpredictable and global economies are on shaky ground, at best. And, when in doubt, investors move their money to the safest places they know.
Those places include the U.S. mortgage-backed bond market.
Mortgage rates have been down since April on weak, U.S. economic data and the likelihood of a Greece sovereign debt default. This is because the U.S. economy is a powerhouse and because a Greece default would send shockwaves throughout the Eurozone banking system.
In the U.S., as jobs data sank; economic output reduced; confidence dropped; and home prices idled this summer, demand for mortgage bonds picked up as investors fled stock markets, leading mortgage rates lower.
Greece's issues contributed, too. Markets were of unsure whether Eurozone leaders would offer a bona fide relief program to Greece, and as those doubts grew stronger, mortgage rates sank more.
But then an interesting thing happened.
Mortgage Rates Now "Single-Minded" On Greece
3 weeks ago, mortgage rates bottomed. It was the day before the October jobs report was released and it appeared unlikely that Greece would receive an aid package.
Since that date, however, the U.S. economy has shown signs of life.
The jobs market rebounded strongly, posting healthy gains
Home sales and homebuilder confidence rose nationwide
Retail sales and consumer spending outperformed expectations
To a recovering economy, these are all good signs. However, mortgage rates failed to rise to reflect that. Instead, markets remain captivated by what may -- or may not -- happen in Greece.
That mortgage rates are still low signals that concerns for Greece -- and the rest of the Eurozone -- have cast a long shadow on the mortgage bond markets. You can trace each day's mortgage rate movement to comments regarding Greece. The stock market is moving in kind.
Today's mortgage market has a one-track mind. As Greece goes, so goes mortgage rates
Rate Alert : Greece Aid Expected
Eurozone leaders are expected to announce an aid package for Greece. This is the news for which mortgage markets have been waiting since April 2011. If the program is deemed "good enough", stock markets will soar and bond markets will sink.
This will take rates higher.
There's too much risk in today's market. If you're shopping for a mortgage right now, do the safe thing -- get your mortgage rate locked.
That takes us to Thursday morning where the European Union reached a deal on the bank debt situation. Stocks will do very well today and mortgage rates will go up.
Friday, October 28, 2011
Thursday, October 13, 2011
Savannah Historic Districts
Did you know that Savannah has eight historic districts? Watch this video to see Don describe the location and home styles in each.
Tuesday, October 11, 2011
Want Your House Sold? Talk to Me.
When I agree to list a house for sale, there are many elements that we (the seller and my team) address prior to entering the market. Price, any disrepair and the appearance are a few of the most important ones. It has been my experience that once I get a stager into the house to help the homeowner de-clutter and de-personalize, the house shows much better. So with all these elements in place and a proper price agreed upon, it is then and only then that my sign goes up in the yard.
How I present this listing to the public is what is going to help sell it. So, then the photographer comes in. In today’s market it is said that the vast majority of Buyers are first introduced to their home on the internet. How my listing is presented on the many websites I have affiliation with is of utmost importance to me. I want clear, crisp, uncluttered images. I like to be able to see what is outside the window in addition to what’s in the room. The house needs to be presented so any Buyer can envision themselves living there.
I like to tell sellers don't get taken out of the game before the game starts. What we mean by that, is you shouldn't give buyers a reason to discount your home, before they even get a chance to see it. Recently, I was working with a buyer, who assumed a home wasn't very nice, because the Multiple Listing Service (MLS) report only contained a few pictures. As real estate brokers, we can talk until we're blue in the face about the need to give consumers lots of photos, but we constantly see listings that don't show many.
The Savannah MLS recently adjusted the amount of images an agent can upload from 12 to 25. I am so excited about this that I could just bust. I pay for prominent placement and the ability to add additional images on many affiliate websites I market homes for sale on. I do this because I know the public wants to know what they are looking at before ever getting into a house. I would never want one of my listings to be over looked because it wasn’t presented to the public in the most positive light possible.
The next time you are looking at Real Estate for Sale, ask yourself before dismissing a house, "Is it really not a good property for me or did the Realtor not do the best job possible presenting it?" If it is my listing, I expect you will be impressed or I didn’t do my job properly.
How I present this listing to the public is what is going to help sell it. So, then the photographer comes in. In today’s market it is said that the vast majority of Buyers are first introduced to their home on the internet. How my listing is presented on the many websites I have affiliation with is of utmost importance to me. I want clear, crisp, uncluttered images. I like to be able to see what is outside the window in addition to what’s in the room. The house needs to be presented so any Buyer can envision themselves living there.
I like to tell sellers don't get taken out of the game before the game starts. What we mean by that, is you shouldn't give buyers a reason to discount your home, before they even get a chance to see it. Recently, I was working with a buyer, who assumed a home wasn't very nice, because the Multiple Listing Service (MLS) report only contained a few pictures. As real estate brokers, we can talk until we're blue in the face about the need to give consumers lots of photos, but we constantly see listings that don't show many.
The Savannah MLS recently adjusted the amount of images an agent can upload from 12 to 25. I am so excited about this that I could just bust. I pay for prominent placement and the ability to add additional images on many affiliate websites I market homes for sale on. I do this because I know the public wants to know what they are looking at before ever getting into a house. I would never want one of my listings to be over looked because it wasn’t presented to the public in the most positive light possible.
The next time you are looking at Real Estate for Sale, ask yourself before dismissing a house, "Is it really not a good property for me or did the Realtor not do the best job possible presenting it?" If it is my listing, I expect you will be impressed or I didn’t do my job properly.
Monday, October 10, 2011
Real Estate News Update
Jobs Exceed Expectations
Most of the news this week was not good for mortgage rates. The economic data was generally a little stronger than expected, and investor concerns about Europe decreased. As a result, after reaching new lows early in the week, mortgage rates ended the week higher.
Against a consensus forecast of 60K, the economy added 103K jobs in September, and the data for July and August was revised higher by 99K. The Unemployment Rate remained at 9.1%, as expected. Average Hourly Earnings, a proxy for wage growth, increased 0.2% from August. The good news for the economy is that the Employment report surpassed expectations and makes a recession look less likely.
Maximum Number of Mortgages
One individual can mortgage up to eight homes now. Our limit was 4 if the subject property was an investment or second home. There is no limit on the number of mortgages an individual can have if the subject property is going to be the primary home for the borrower. Keep this in mind for any of your investor clients who have been holding at 4 properties because of the previous rule.
The All Important Credit Score
Credit scores are critical to getting approved and the interest rate a borrower can get. The concept of risk-based pricing makes it more important than ever for a borrower to make sure their credit score is as high as possible. We now offer the Credit Expert system to all of our clients as a part of the pre-approval process. Using this score illustrator helps us show the borrower how different actions will influence their score. Have you ever been unsure if you should pay off or pay down a credit card? Wonder no more as we can show you the impact to help you improve your score and lower your interest rate. If you would like a demonstration of this, just let me know.
A real estate news update from Michael Caputo at Starkey Mortgage. Contact Michael at mcaputo@starkeymtg.com.
Most of the news this week was not good for mortgage rates. The economic data was generally a little stronger than expected, and investor concerns about Europe decreased. As a result, after reaching new lows early in the week, mortgage rates ended the week higher.
Against a consensus forecast of 60K, the economy added 103K jobs in September, and the data for July and August was revised higher by 99K. The Unemployment Rate remained at 9.1%, as expected. Average Hourly Earnings, a proxy for wage growth, increased 0.2% from August. The good news for the economy is that the Employment report surpassed expectations and makes a recession look less likely.
Maximum Number of Mortgages
One individual can mortgage up to eight homes now. Our limit was 4 if the subject property was an investment or second home. There is no limit on the number of mortgages an individual can have if the subject property is going to be the primary home for the borrower. Keep this in mind for any of your investor clients who have been holding at 4 properties because of the previous rule.
The All Important Credit Score
Credit scores are critical to getting approved and the interest rate a borrower can get. The concept of risk-based pricing makes it more important than ever for a borrower to make sure their credit score is as high as possible. We now offer the Credit Expert system to all of our clients as a part of the pre-approval process. Using this score illustrator helps us show the borrower how different actions will influence their score. Have you ever been unsure if you should pay off or pay down a credit card? Wonder no more as we can show you the impact to help you improve your score and lower your interest rate. If you would like a demonstration of this, just let me know.
A real estate news update from Michael Caputo at Starkey Mortgage. Contact Michael at mcaputo@starkeymtg.com.
Thursday, October 6, 2011
Do You Know Your Credit Score?
Our friend Michael Caputo at Starkey Mortgage sent us some great information the other day about credit scores. Whether you're looking to buy or not, it's always good to keep tabs on your credit score. See his article below.
It is always a good idea to check the accuracy of the data on your credit report. Consumers can receive a free copy of their credit report each year by visiting http://www.annualcreditreport.com/
Eligibility for a particular loan program and the interest rate associated with it can be impacted by a borrower’s credit score. After reviewing the report, a consumer can initiate a dispute on line.
If there are any errors on the report that need to be corrected. http://www.equifax.com/ has a tremendous amount of resources designed to help an individual improve their credit history and better manage.
The credit that they have. The higher the credit score, the lower the perceived risk for an mortgage applicant. Please feel free to call anytime to review your credit report and discuss ways to improve your credit score.
Michael Caputo
Starkey Mortgage
912-658-2366
It is always a good idea to check the accuracy of the data on your credit report. Consumers can receive a free copy of their credit report each year by visiting http://www.annualcreditreport.com/
Eligibility for a particular loan program and the interest rate associated with it can be impacted by a borrower’s credit score. After reviewing the report, a consumer can initiate a dispute on line.
If there are any errors on the report that need to be corrected. http://www.equifax.com/ has a tremendous amount of resources designed to help an individual improve their credit history and better manage.
The credit that they have. The higher the credit score, the lower the perceived risk for an mortgage applicant. Please feel free to call anytime to review your credit report and discuss ways to improve your credit score.
Michael Caputo
Starkey Mortgage
912-658-2366
Tuesday, October 4, 2011
DOCOMOMO US National Tour Day 2011
DOCOMOMO stands for DOcumentation and COnservation of buildings, sites and neighborhoods of the MOdern MOvement. Initially founded in 1988 in The Netherlands, there are now DOCOMOMO working parties in over 40 countries. The organization is dedicated to the study of significant works of Modern Movement architecture, landscape design and urban planning around the world. DOCOMOMO US is the official Working Party of the United States.
Friday, October 7th
6:30pm (free event) @ Benedictine Military School
Reception, Tour, and Panel Discussion
Saturday, October 8th
8:30am (ticket required) @ Historic Kennedy Pharmacy
Continental Breakfast and Walking Tour
Afternoon (ticket required)
Tour of Homes and Savannah's Modern Neighborhoods
Tickets are available online at www.myHSF.org and Friday evening and Saturday morning events.
The Tour is presented by DOCOMOMO/US, Georgia Chapter and Historic Savannah Foundation.
Monday, October 3, 2011
The Team Concept
Just like players on a baseball team, each member of The Don Callahan Real Estate Group has his/her own responsibilities and area of the field to cover. Watch this short video to learn more about our team dynamic.
Tuesday, September 27, 2011
Attention Sellers: Why Staging Matters
We highly recommend a professional staging consultation for each of our listings. Watch this video to learn why this small investment in your home yields big results.
Picnic in the Park 2011
The themes for this year’s picnic contest will be "Greenest Picnic" and “Rock & Run,” in celebration of the runners, volunteers and the event that promises to put Savannah on the running map – the first Savannah Rock ‘n’ Roll Marathon. Those who enter their spreads in the Healthy Savannah Picnic Contest will be eligible to win an array of prizes, as well as bragging rights as Savannah’s best picnicker! Special celebrate judges will by WSAV's Tina Tyus-Shaw and SCAD's Sam Carter. Prizes to include a stay at the Avia Hotel, family memberships to the YMCA, 10 person party at the Island's YMCA rope and climbing course, Gift certificates to restaurants serving locally sourced and healthy foods, Yoga Class passes at several local studios, among other things.
2011 Theme: "Rock & Run"
Schedule (Times are approx.)
3:00 - 5:00 pm Healthy Savannah Picnic contest registration
5:00 pm Picnic contest judging
6:15 pm Esther F. Garrison School of Visual & Performing Arts, Middle School Choir
7:15 pm Strings of the South
http://www.savannahga.gov/cityweb/culturalaffairsweb.nsf/608e11690577454885256af400535d5b/afaf0d557d792f14852578ce006a3539?OpenDocument
Monday, September 26, 2011
What is HomePath Mortgage?
Benefits to the Borrower:
• Low down payment and flexible mortgage terms (fixed–rate, adjustable rate, or interest–only).
• Down payment (at least 3 percent) can be funded by the borrower’s own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer.
• No lender-requested appraisal.
• No mortgage insurance; ask your lender for cost details on loans without mortgage insurance.
• Expanded seller contributions for closing costs allowed.
• Available for primary residences, second homes and investment properties.
• Many condo project requirements are waived
Contact us today for a FREE guide to HomePath Mortgage.
Friday, September 23, 2011
JUST LISTED! Ardsley Park Bungalow with Custom Designer Kitchen
Super-cute Ardsley bungalow, not to be missed! Large living room with fireplace adjacent to spacious, separate dining room. There is a sunroom just off the living room. Custom designer kitchen with stainless steel appliances, breakfast bar and granite countertops. New Trane multi speed HVAC system with state-of-the-art filtration system. Three sizeable bedrooms and renovated bathrooms (2.5) with vanities and granite counters. Outstanding finishes throughout. Large, fenced corner lot with a remarkable canopy of Drake elm trees. Convenient to hospitals, Habersham Village and the Southside.
For more information visit: http://www.doncallahan.com/
Wednesday, September 7, 2011
How to File for Homestead Exemption
Residents of Chatham County who own a home and the land it rests on are eligible for an exemption. Property owners are allowed to claim only one homestead exemption, in which case must be on their primary residence. Rental property does not qualify. Only persons who reside on the property and whose name appears on the title can file for exemptions. Applications must be completed in person by the property owner, unless they have given another party their power of attorney.
WHAT:
Regular Homestead applicants must bring:
valid GA driver’s license or ID card
utility bill showing usage in 2011 (must be in name of applicant)
Senior Homestead applicants (62+ or 65+) must bring:
valid GA driver’s license or ID card
utility bill showing usage in 2011 (must be in name of applicant)
2011 State & Federal income tax returns
School Tax Disability applicants must bring:
valid GA driver’s license or ID card
utility bill showing usage in 2011 (must be in name of applicant)
letter of disability from a licensed GA physician (handicap parking applications cannot be accepted)
WHEN:
April 2, 2011 thru April 2, 2012
Monday thru Friday, 8:00am - 5:00pm (excluding holidays)
WHERE:
The Board of Assessors Office, room 503, located on the 5th floor. Applications are accepted at the windows.
HOW:
The exemption will not appear on your April property tax statement, but it will be applied to the September installment for the entire year.
Military applicants who currently have an out-of-state driver’s license or ID card must prove Georgia residency. LES papers showing Georgia as the home of record are acceptable.
WHAT:
Regular Homestead applicants must bring:
valid GA driver’s license or ID card
utility bill showing usage in 2011 (must be in name of applicant)
Senior Homestead applicants (62+ or 65+) must bring:
valid GA driver’s license or ID card
utility bill showing usage in 2011 (must be in name of applicant)
2011 State & Federal income tax returns
School Tax Disability applicants must bring:
valid GA driver’s license or ID card
utility bill showing usage in 2011 (must be in name of applicant)
letter of disability from a licensed GA physician (handicap parking applications cannot be accepted)
WHEN:
April 2, 2011 thru April 2, 2012
Monday thru Friday, 8:00am - 5:00pm (excluding holidays)
WHERE:
The Board of Assessors Office, room 503, located on the 5th floor. Applications are accepted at the windows.
HOW:
The exemption will not appear on your April property tax statement, but it will be applied to the September installment for the entire year.
Military applicants who currently have an out-of-state driver’s license or ID card must prove Georgia residency. LES papers showing Georgia as the home of record are acceptable.
Tuesday, June 7, 2011
How do you define professional?
...borrowed from Nathan Tutas
How do you define professional? Is it what title you have behind your name? Is it what company you work for? Is it how your email address comes across? Is it what you drive? How about what you wear? Or is it a combination of those things?
If you answered yes to any of those questions, I hate to tell you this, but you're wrong. Big time, dead wrong! Professionalism is an action. It's a way of doing business and doing it properly. It's about doing the things that will create last ing success in any walk of life.
No matter how well you are dressed, if you don't answer your emails in a timely manner, the client will not think of you as a professional. If you don't return phone calls for days on end...your beautiful BMW won't mean anything to the potential clients you lost. Like I said, professionalism is in how you act.
Do you treat your clients respectfully and show up on time to appointments. I'm sure you think your time is money. Well guess what, your clients think their time is money. Be on time.
I'd bet a million dol lars I could sell real estate in shorts and flip flops. I don't, but I could. Although I have the added bonus of being in Central Florida, so I wouldn't exactly look out of place. But you get my point. I can show up driving and wearing any thing I want and still do my job well.
I will have answered their call or email, I'll show up on time, I'll be prepared, I'll be well educated about the issues that might come up during our meeting, and I'll be sincere when I give them the best advice I can. That is professionalism and that is the standard you should be measuring yourself against. Another one of Nate's bright ideas.....
How do you define professional? Is it what title you have behind your name? Is it what company you work for? Is it how your email address comes across? Is it what you drive? How about what you wear? Or is it a combination of those things?
If you answered yes to any of those questions, I hate to tell you this, but you're wrong. Big time, dead wrong! Professionalism is an action. It's a way of doing business and doing it properly. It's about doing the things that will create last ing success in any walk of life.
No matter how well you are dressed, if you don't answer your emails in a timely manner, the client will not think of you as a professional. If you don't return phone calls for days on end...your beautiful BMW won't mean anything to the potential clients you lost. Like I said, professionalism is in how you act.
Do you treat your clients respectfully and show up on time to appointments. I'm sure you think your time is money. Well guess what, your clients think their time is money. Be on time.
I'd bet a million dol lars I could sell real estate in shorts and flip flops. I don't, but I could. Although I have the added bonus of being in Central Florida, so I wouldn't exactly look out of place. But you get my point. I can show up driving and wearing any thing I want and still do my job well.
I will have answered their call or email, I'll show up on time, I'll be prepared, I'll be well educated about the issues that might come up during our meeting, and I'll be sincere when I give them the best advice I can. That is professionalism and that is the standard you should be measuring yourself against. Another one of Nate's bright ideas.....
Thursday, June 2, 2011
Housing Imperils Recovery
While Real Estate is a local business, I have been talking about the dramatic hit our local market has endured in the past two quarters. This piece in the Wall Street Journal reports the same for the National market.
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Home Prices Sink to 2002 Levels; Consumer Confidence Falls as Pessimism Grows.
By S. MITRA KALITA And NICK TIMIRAOS
Home prices have sunk to 2002 levels, effectively wiping out almost a decade's worth of home equity across the U.S. and imperiling the fragile economic recovery as Americans confront the falling value of their biggest investment.
A closely watched home-price index released Tuesday, the S&P/Case-Shiller National Index, showed that prices nationwide fell 4.2% in the first quarter after declining 3.6% in the fourth quarter of 2010. The index had seen increases in 2009 and early 2010.
"Home prices continue on their downward spiral with no relief in sight," said David M. Blitzer, chairman of S&P's index committee. The report signals "a double dip in home prices across much of the nation," he said.
That doesn't bode well for the economy, which historically has depended on home buying and other consumer spending to rebound. Falling prices hurt economic growth in a number of ways. Not only do homebuyers curb spending when their homes are losing value, but continued price erosion keeps families stuck in homes they can't sell because they are worth less than what they owe.
Another 5% decline in prices will increase the share of underwater homeowners with mortgages to 28%, up from 23% at the end of 2010, according to CoreLogic Inc. A 10% drop will leave more than one-third of all U.S. borrowers underwater.
Declining home values, rising prices and unemployment continue to weigh on consumer confidence. Another wild card is wrangling over the debt-ceiling in Washington, where lawmakers remain at odds over raising the nation's $2.4 trillion cap.
The Conference Board, a business research group, said Tuesday that its confidence index fell to 60.8 last month, down from 66.0 in April, as Americans grew more pessimistic about the economy.
Economists are similarly downbeat, revising expectations downward for second-quarter growth; Goldman Sachs last week notched its forecast down to 3% from a previous 3.5%.
"If you had to identify one thing in particular that's been responsible for the subpar nature of this cycle, it would be housing," said Joshua Shapiro, chief U.S. economist for MFR Inc. "The bad news is I don't expect it to turn around any time soon."
Economists say it could take years for the housing market to return to health and it will take faster growth, strong job gains and improvements in consumer confidence to make it happen.
Residential construction has subtracted from growth in gross domestic product, the broadest measure of all goods and services produced in the economy, in four of the seven quarters since the recession ended in June 2009. That's a contrast with the past three recoveries when housing added to economic growth for at least a year and half following the downturns in the 1980s, 1990s and early 2000s.
Two years ago, home prices stopped falling as low prices, along with home-buyer tax credits, spurred a surge in sales. But demand collapsed last summer after those credits expired and left markets without enough buyers to absorb a steady flow of foreclosed properties.
Home prices have tumbled for eight straight months, and in March they slid to their lowest level since the start of the 2006-2009 downturn, according the S&P/Case-Shiller monthly 20-City Composite Index.
Indeed, 12 of the 20 metropolitan areas tracked in the index posted new lows in March. Only the Washington, D.C., and Seattle markets saw month-to-month growth of 1.1% and 0.1%, respectively. Minneapolis led the declines, with prices falling 3.7%; on an annual basis, its prices were down 10%.
Sellers such as Julie Lindsay are feeling the pinch. Ms. Lindsay, a retired state worker, listed her three-bedroom house in the St. Paul, Minn., suburb of Centerville for sale in April, thinking it would show better in the spring. "The flowers are planted. Things look nice," she said. "But it's not been great. I've had two people come see it, a couple of phone calls and that's about it."
She has lowered the price to $145,000—and tries not to think about the home's value three or four years ago. "It was worth $200,000 then," she says. "Now the county says it's worth $92,000. Holy mackerel."
Ms. Lindsay suspects a number of more affordable foreclosures nearby are hurting her chances of selling. "You can get newer houses for what I am asking for my old house if you buy a foreclosure," she said.
One bright spot: as prices fall, affordability is returning to pre-bubble levels in a growing number of markets. Prices in Atlanta, Cleveland, Detroit, and Las Vegas have fallen below their January 2000 levels, while prices in Phoenix are only slightly above that mark.
Economists say a shortage of "trade up" buyers has become one of the biggest drags on housing, leaving many markets dependent on first-time buyers and investors who land discounts on foreclosures by making all-cash bids.
"There's just no equity," says Christopher Thornberg, a housing economist at Beacon Economics in Los Angeles. "You add that up and what you're dealing with is, of course, a situation where there's not enough demand to really push the market forward."
Investors are making it harder for some buyers to enter the market. The National Association of Realtors recently reported that while overall sales are weaker this year than last, the volume of homes sold for $100,000 or less in the first quarter—many to investors in all-cash deals—was 8.9% higher than the same period last year.
Consumer Confidence Tumbles
Case-Shiller quarterly data reflect sales recorded during the January-March period, which were negotiated several months ago. The real-estate industry had hoped strong spring sales would turn the tide.
That hasn't happened. While mortgage rates last week fell to their lowest level of the year, there is little evidence that sales have gained momentum.
Lending remains tight, but buyers are also spooked and unwilling to lock in purchases amid the prospect of further price declines.
"People are reluctant to reduce their price to the place where the consumer says, 'I'm getting a great deal,'" says Ivy Zelman, chief executive of Zelman & Associates, a housing-research firm.
Some industry watchers say last year's price gains were artificially driven.
"The market showed a little stability that was largely stimulated by the tax credit, but that stability was very short-lived," said Michael Feder, chief executive of Radar Logic. "To call this a double dip is an overstatement. The fact is we have never really started to recover."
View original article: http://online.wsj.com/article_email/SB10001424052702303657404576357170425058088-lMyQjAxMTAxMDAwMTEwNDEyWj.html
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Home Prices Sink to 2002 Levels; Consumer Confidence Falls as Pessimism Grows.
By S. MITRA KALITA And NICK TIMIRAOS
Home prices have sunk to 2002 levels, effectively wiping out almost a decade's worth of home equity across the U.S. and imperiling the fragile economic recovery as Americans confront the falling value of their biggest investment.
A closely watched home-price index released Tuesday, the S&P/Case-Shiller National Index, showed that prices nationwide fell 4.2% in the first quarter after declining 3.6% in the fourth quarter of 2010. The index had seen increases in 2009 and early 2010.
"Home prices continue on their downward spiral with no relief in sight," said David M. Blitzer, chairman of S&P's index committee. The report signals "a double dip in home prices across much of the nation," he said.
That doesn't bode well for the economy, which historically has depended on home buying and other consumer spending to rebound. Falling prices hurt economic growth in a number of ways. Not only do homebuyers curb spending when their homes are losing value, but continued price erosion keeps families stuck in homes they can't sell because they are worth less than what they owe.
Another 5% decline in prices will increase the share of underwater homeowners with mortgages to 28%, up from 23% at the end of 2010, according to CoreLogic Inc. A 10% drop will leave more than one-third of all U.S. borrowers underwater.
Declining home values, rising prices and unemployment continue to weigh on consumer confidence. Another wild card is wrangling over the debt-ceiling in Washington, where lawmakers remain at odds over raising the nation's $2.4 trillion cap.
The Conference Board, a business research group, said Tuesday that its confidence index fell to 60.8 last month, down from 66.0 in April, as Americans grew more pessimistic about the economy.
Economists are similarly downbeat, revising expectations downward for second-quarter growth; Goldman Sachs last week notched its forecast down to 3% from a previous 3.5%.
"If you had to identify one thing in particular that's been responsible for the subpar nature of this cycle, it would be housing," said Joshua Shapiro, chief U.S. economist for MFR Inc. "The bad news is I don't expect it to turn around any time soon."
Economists say it could take years for the housing market to return to health and it will take faster growth, strong job gains and improvements in consumer confidence to make it happen.
Residential construction has subtracted from growth in gross domestic product, the broadest measure of all goods and services produced in the economy, in four of the seven quarters since the recession ended in June 2009. That's a contrast with the past three recoveries when housing added to economic growth for at least a year and half following the downturns in the 1980s, 1990s and early 2000s.
Two years ago, home prices stopped falling as low prices, along with home-buyer tax credits, spurred a surge in sales. But demand collapsed last summer after those credits expired and left markets without enough buyers to absorb a steady flow of foreclosed properties.
Home prices have tumbled for eight straight months, and in March they slid to their lowest level since the start of the 2006-2009 downturn, according the S&P/Case-Shiller monthly 20-City Composite Index.
Indeed, 12 of the 20 metropolitan areas tracked in the index posted new lows in March. Only the Washington, D.C., and Seattle markets saw month-to-month growth of 1.1% and 0.1%, respectively. Minneapolis led the declines, with prices falling 3.7%; on an annual basis, its prices were down 10%.
Sellers such as Julie Lindsay are feeling the pinch. Ms. Lindsay, a retired state worker, listed her three-bedroom house in the St. Paul, Minn., suburb of Centerville for sale in April, thinking it would show better in the spring. "The flowers are planted. Things look nice," she said. "But it's not been great. I've had two people come see it, a couple of phone calls and that's about it."
She has lowered the price to $145,000—and tries not to think about the home's value three or four years ago. "It was worth $200,000 then," she says. "Now the county says it's worth $92,000. Holy mackerel."
Ms. Lindsay suspects a number of more affordable foreclosures nearby are hurting her chances of selling. "You can get newer houses for what I am asking for my old house if you buy a foreclosure," she said.
One bright spot: as prices fall, affordability is returning to pre-bubble levels in a growing number of markets. Prices in Atlanta, Cleveland, Detroit, and Las Vegas have fallen below their January 2000 levels, while prices in Phoenix are only slightly above that mark.
Economists say a shortage of "trade up" buyers has become one of the biggest drags on housing, leaving many markets dependent on first-time buyers and investors who land discounts on foreclosures by making all-cash bids.
"There's just no equity," says Christopher Thornberg, a housing economist at Beacon Economics in Los Angeles. "You add that up and what you're dealing with is, of course, a situation where there's not enough demand to really push the market forward."
Investors are making it harder for some buyers to enter the market. The National Association of Realtors recently reported that while overall sales are weaker this year than last, the volume of homes sold for $100,000 or less in the first quarter—many to investors in all-cash deals—was 8.9% higher than the same period last year.
Consumer Confidence Tumbles
Case-Shiller quarterly data reflect sales recorded during the January-March period, which were negotiated several months ago. The real-estate industry had hoped strong spring sales would turn the tide.
That hasn't happened. While mortgage rates last week fell to their lowest level of the year, there is little evidence that sales have gained momentum.
Lending remains tight, but buyers are also spooked and unwilling to lock in purchases amid the prospect of further price declines.
"People are reluctant to reduce their price to the place where the consumer says, 'I'm getting a great deal,'" says Ivy Zelman, chief executive of Zelman & Associates, a housing-research firm.
Some industry watchers say last year's price gains were artificially driven.
"The market showed a little stability that was largely stimulated by the tax credit, but that stability was very short-lived," said Michael Feder, chief executive of Radar Logic. "To call this a double dip is an overstatement. The fact is we have never really started to recover."
View original article: http://online.wsj.com/article_email/SB10001424052702303657404576357170425058088-lMyQjAxMTAxMDAwMTEwNDEyWj.html
Thursday, May 5, 2011
JUST LISTED! - Outstanding Modern Home on Dutch Island
Rare opportunity to buy on exclusive Dutch Island. Even rarer opportunity to own one of Savannah's most outstanding Modernist houses. Built in 1995, with over 6,000 square feet, the house stands as a theatrical backdrop for entertaining of the first caliber. Perhaps most impressive, the great room features a dramatically sweeping staircase, remarkable fireplace and a 30' high wall of glass overlooking the marsh and creek. The home is commodious to say the least, with 4 bedrooms, 4 full baths, and 2 half-baths. Additionally, there is a separate living room, music room, dining room, top-floor family room with wet bar, a gourmet kitchen, even a screened-in dining porch. Patios, decks and screened porches punctuate the footprint throughout, adding further breadth to the livability of this Low Country marvel. The residents of Dutch Island have available for their use a multitude of amenities including; swimming pool, a 'beach' volleyball court, outdoor fire pit, children's playground, tennis courts, basketball court, and dock with boat ramp. Gated community with guard house.
For more information visit http://www.realestateinsavannah.net/827-Meriweather-Drive-a214301.html
Saturday, April 30, 2011
So you say you want to Sell your house?
If you are serious about selling your house…follow the instruction!!!
In today’s market ALL elements should be considered when putting your house up for sale. Be certain to hire a good Realtor. One that is not afraid to tell you what it will take to have a successful sale.
The location, style and size are a few elements you cannot change too easily.
However, below are some components of a successful sale that MUST be addressed in today’s market to compete with the increased inventory without having to “give the house away”
• Price: Have your Realtor do an evaluation and price your house properly. Be certain he or she is familiar with home sales in your community. If you are not sure, get an appraisal. How much you want or need for your house has nothing to do with what your house is worth.
• Condition: Whether you choose to have a pre-listing inspection of your house or simply do a walk through with your Realtor, you must address any and all disrepair or distractions (stains on the walls, discolored entry doors, clumsy plantings etc.)
• Appearance: A professional Stager is necessary! The cost is minimal considering the benefit they offer in the home sale process. Be prepare to pack away some of your belongings (you are going to be moving if you do this right). Remove your emotions for just a moment and trust in the process. Do everything that is recommended!
This is a business transaction. Take it seriously. Your house will sell and you will be able to move on with your life! Good luck!
To sell your home in Savannah or for any Real Estate needs in Savannah visit my website www.DonCallahan.com or contact me 912-441-4416
In today’s market ALL elements should be considered when putting your house up for sale. Be certain to hire a good Realtor. One that is not afraid to tell you what it will take to have a successful sale.
The location, style and size are a few elements you cannot change too easily.
However, below are some components of a successful sale that MUST be addressed in today’s market to compete with the increased inventory without having to “give the house away”
• Price: Have your Realtor do an evaluation and price your house properly. Be certain he or she is familiar with home sales in your community. If you are not sure, get an appraisal. How much you want or need for your house has nothing to do with what your house is worth.
• Condition: Whether you choose to have a pre-listing inspection of your house or simply do a walk through with your Realtor, you must address any and all disrepair or distractions (stains on the walls, discolored entry doors, clumsy plantings etc.)
• Appearance: A professional Stager is necessary! The cost is minimal considering the benefit they offer in the home sale process. Be prepare to pack away some of your belongings (you are going to be moving if you do this right). Remove your emotions for just a moment and trust in the process. Do everything that is recommended!
This is a business transaction. Take it seriously. Your house will sell and you will be able to move on with your life! Good luck!
To sell your home in Savannah or for any Real Estate needs in Savannah visit my website www.DonCallahan.com or contact me 912-441-4416
Who establishes the price of Real Estate???
Who establishes the price of Real Estate? In the real estate business, it is the buyer that sets the price of a property. They will only pay what comparable properties have sold for recently.
Some real estate owners price their property by ‘what I need to get'. Others scratch their head. Sometimes they want to sleep on it.
With the birth of the internet, buyers and sellers are more educated. They can find the information they require to make an informed decision.
So if you are selling a property, you can ask all you want. You will have to settle for what a buyer is willing to pay for it.
Visit www.DonCallahan.com for Real Estate in Savannah
Some real estate owners price their property by ‘what I need to get'. Others scratch their head. Sometimes they want to sleep on it.
With the birth of the internet, buyers and sellers are more educated. They can find the information they require to make an informed decision.
So if you are selling a property, you can ask all you want. You will have to settle for what a buyer is willing to pay for it.
Visit www.DonCallahan.com for Real Estate in Savannah
Tuesday, April 12, 2011
5 Things Home Buyers Do That Turn Sellers Off (and Kill Deals)
by Tara-Nicholle Nelson
Trulia.com
On today’s market, every savvy seller wants to know what turns buyers off, so they can get their homes sold as quickly as possible, for as much as possible. But buyers, take note – there is a minefield of seller turn-offs you can trigger that hold the potential to keep you from getting the home you want at the best price and terms, or to unnecessarily complicate dealings with your home’s seller.
Lest you think all of today’s sellers are under the gun and will just put up with whatever behavior buyers dish out, be aware that there are still many multiple offer situations in which buyers have to compete with each other to get a home – buyers who trigger these turnoffs tend to lose in those scenarios. Also, avoiding these seller turnoffs can create a transactional environment of cooperation and avoid things turning adversarial. That, in turn, can empower you to score a better price, get extra items you want thrown into the deal, and even negotiate more flexibility around your escrow and move-in timelines – all perks that can make your life easier and your budget go further. For sellers, these turnoffs pose the potential of irritating you out of an otherwise good deal – maybe even the only deal you have! Here’s a few of the most common buyer-perpetuated seller turnoffs, with tips for sellers on how to keep an emotional (and economic) even keel, even if your home’s buyer makes some of these waves:
1. Trash-talking. Trash-talkers are the home buyers who think they’re going to negotiate the list price down by slamming the house, telling the sellers how little it is really worth, how the house across the street sold for nothing, why the school on the corner should make them desperate to give the place away, etc. This strategy never works; in fact, when you attack a seller and their home, you only cause them to be defensive, and think up all the reasons that (a) their home is not what you say it is, and (b) they shouldn’t sell their home to you! Sometimes this happens with buyers who actually love a house and just walk around it fantasizing about all the ways they would customize it to their tastes while a seller is there.
Sellers: avoid being at home while your home is being shown. Buyers: save your commentary for your agent; if you do encounter the seller in person keep your conversation respectful and avoid critiquing the house or the list price.
2. Being unqualified for mortgage financing. When a seller signs a buyer’s offer, most often the seller agrees to effectively pull the home off the market, forgoing other buyers who might be interested. As such, the only thing worse than getting no offers on your home is getting an offer, getting into contract, then having the whole thing fall apart when the buyer’s loan falls through – especially if that could have been predicted or avoided up front.
Sellers: Work with your agent to vet your home’s buyers’ qualifications, including their loan approval, down payment and earnest money deposit – before you sign a contract. It’s not overkill for your agent to call the buyers’ mortgage pro before you sign the contract and get a level of comfort for how robust their qualifications are. Buyers: Get pre-approved. Seriously. And make sure that you don’t buy a car, quit your job, deposit lottery winnings or do any other financial twitchery between the time you get loan approval and the time you close escrow on your home.
3. Making unjustified lowball offers. No one likes to feel like they are being taken advantage of. And sellers generally know the ballpark amount that their home is worth, as well as what they need to sell it for to get their mortgage paid off. Yes – the price you pay for a home should be driven by its fair market value, rather than the seller’s financial needs, and deals are more available in a market like the current one, in which supply so vastly outpaces demand. But just throwing uber-lowball offers out at sellers hoping one will hit the spot is not generally a successful strategy, especially if you really, really want a given property.
Sellers: Don’t get overly emotional about receiving a lowball offer; counter at the price you and your agent decide makes sense based on the total circumstances, including your motivation level, recent comps and the interest/activity level your listing is receiving. Buyers: Work through the similar, nearby homes that have recently sold (a/k/a comparables) before you make an offer to factor the home’s fair market value into your offer price – also factor in how much you want the place, too. Don’t be amazed if you make an offer far below asking, and don’t get a response.
4. Renegotiating mid-stream. Sellers plan their finances, moves and - to some extent – their lives around the purchase price a buyer agrees to pay for their home. If you get into contract to buy a home, find out during inspections that costly repairs need to be made, then propose a lower sale price, repair credit or even actual repairs to the seller, that’s sensible and fair. But if you were aware that the property needed a lot of work before you made an offer on it, then you come back asking for beaucoup bucks’ worth of credit or price reductions midstream, expect the seller to cry foul. And holding the seller up two weeks into the transaction because you caught a case of buyer's remorse? Not cool, and not likely to foster the spirit of cooperation you may need to get your deal closed.
Sellers: avoid mid-stream price renegotiations by having a full set of inspection reports and repair bids at hand when you list your home. Buyers: try to avoid renegotiating the entire deal unless you get some major surprises at your inspections or inflating small repairs to try to justify a major price cut.
5. Misleading or setting the seller up. Remember when we talked about buyer turn-offs? Being misled by listing photos or very fluffy property descriptions was high on the list. The same goes for sellers.Offering way over asking with the plan to hammer the seller for a reduction when the house doesn’t appraise at the purchase price? #LAME Making an as-is offer planning the whole time to come back and ask for every penny ante repair called out by the inspectors? Lame squared.
Sellers: If you get multiple offers and are tempted to take a sky-high one or one that claims to be all cash, consider requesting proof that the buyer has sufficient funds to make up the difference between what you think the home will appraise for and the actual sale price, and statements showing the cash truly exists. Buyers: Don’t be lame. I’m not saying you have to tell the seller exactly what your top dollar is, but making offers with terms designed to intentionally mislead is really, really bad form – and can result in losing the home entirely if and when your bluff gets called.
View original article: http://www.trulia.com/blog/taranelson/2011/03/5_things_buyers_do_that_turn_sellers_off_and_kill_deals?ecampaign=anews&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2011%2F03%2F5_things_buyers_do_that_turn_sellers_off_and_kill_deals
Trulia.com
On today’s market, every savvy seller wants to know what turns buyers off, so they can get their homes sold as quickly as possible, for as much as possible. But buyers, take note – there is a minefield of seller turn-offs you can trigger that hold the potential to keep you from getting the home you want at the best price and terms, or to unnecessarily complicate dealings with your home’s seller.
Lest you think all of today’s sellers are under the gun and will just put up with whatever behavior buyers dish out, be aware that there are still many multiple offer situations in which buyers have to compete with each other to get a home – buyers who trigger these turnoffs tend to lose in those scenarios. Also, avoiding these seller turnoffs can create a transactional environment of cooperation and avoid things turning adversarial. That, in turn, can empower you to score a better price, get extra items you want thrown into the deal, and even negotiate more flexibility around your escrow and move-in timelines – all perks that can make your life easier and your budget go further. For sellers, these turnoffs pose the potential of irritating you out of an otherwise good deal – maybe even the only deal you have! Here’s a few of the most common buyer-perpetuated seller turnoffs, with tips for sellers on how to keep an emotional (and economic) even keel, even if your home’s buyer makes some of these waves:
1. Trash-talking. Trash-talkers are the home buyers who think they’re going to negotiate the list price down by slamming the house, telling the sellers how little it is really worth, how the house across the street sold for nothing, why the school on the corner should make them desperate to give the place away, etc. This strategy never works; in fact, when you attack a seller and their home, you only cause them to be defensive, and think up all the reasons that (a) their home is not what you say it is, and (b) they shouldn’t sell their home to you! Sometimes this happens with buyers who actually love a house and just walk around it fantasizing about all the ways they would customize it to their tastes while a seller is there.
Sellers: avoid being at home while your home is being shown. Buyers: save your commentary for your agent; if you do encounter the seller in person keep your conversation respectful and avoid critiquing the house or the list price.
2. Being unqualified for mortgage financing. When a seller signs a buyer’s offer, most often the seller agrees to effectively pull the home off the market, forgoing other buyers who might be interested. As such, the only thing worse than getting no offers on your home is getting an offer, getting into contract, then having the whole thing fall apart when the buyer’s loan falls through – especially if that could have been predicted or avoided up front.
Sellers: Work with your agent to vet your home’s buyers’ qualifications, including their loan approval, down payment and earnest money deposit – before you sign a contract. It’s not overkill for your agent to call the buyers’ mortgage pro before you sign the contract and get a level of comfort for how robust their qualifications are. Buyers: Get pre-approved. Seriously. And make sure that you don’t buy a car, quit your job, deposit lottery winnings or do any other financial twitchery between the time you get loan approval and the time you close escrow on your home.
3. Making unjustified lowball offers. No one likes to feel like they are being taken advantage of. And sellers generally know the ballpark amount that their home is worth, as well as what they need to sell it for to get their mortgage paid off. Yes – the price you pay for a home should be driven by its fair market value, rather than the seller’s financial needs, and deals are more available in a market like the current one, in which supply so vastly outpaces demand. But just throwing uber-lowball offers out at sellers hoping one will hit the spot is not generally a successful strategy, especially if you really, really want a given property.
Sellers: Don’t get overly emotional about receiving a lowball offer; counter at the price you and your agent decide makes sense based on the total circumstances, including your motivation level, recent comps and the interest/activity level your listing is receiving. Buyers: Work through the similar, nearby homes that have recently sold (a/k/a comparables) before you make an offer to factor the home’s fair market value into your offer price – also factor in how much you want the place, too. Don’t be amazed if you make an offer far below asking, and don’t get a response.
4. Renegotiating mid-stream. Sellers plan their finances, moves and - to some extent – their lives around the purchase price a buyer agrees to pay for their home. If you get into contract to buy a home, find out during inspections that costly repairs need to be made, then propose a lower sale price, repair credit or even actual repairs to the seller, that’s sensible and fair. But if you were aware that the property needed a lot of work before you made an offer on it, then you come back asking for beaucoup bucks’ worth of credit or price reductions midstream, expect the seller to cry foul. And holding the seller up two weeks into the transaction because you caught a case of buyer's remorse? Not cool, and not likely to foster the spirit of cooperation you may need to get your deal closed.
Sellers: avoid mid-stream price renegotiations by having a full set of inspection reports and repair bids at hand when you list your home. Buyers: try to avoid renegotiating the entire deal unless you get some major surprises at your inspections or inflating small repairs to try to justify a major price cut.
5. Misleading or setting the seller up. Remember when we talked about buyer turn-offs? Being misled by listing photos or very fluffy property descriptions was high on the list. The same goes for sellers.Offering way over asking with the plan to hammer the seller for a reduction when the house doesn’t appraise at the purchase price? #LAME Making an as-is offer planning the whole time to come back and ask for every penny ante repair called out by the inspectors? Lame squared.
Sellers: If you get multiple offers and are tempted to take a sky-high one or one that claims to be all cash, consider requesting proof that the buyer has sufficient funds to make up the difference between what you think the home will appraise for and the actual sale price, and statements showing the cash truly exists. Buyers: Don’t be lame. I’m not saying you have to tell the seller exactly what your top dollar is, but making offers with terms designed to intentionally mislead is really, really bad form – and can result in losing the home entirely if and when your bluff gets called.
View original article: http://www.trulia.com/blog/taranelson/2011/03/5_things_buyers_do_that_turn_sellers_off_and_kill_deals?ecampaign=anews&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2011%2F03%2F5_things_buyers_do_that_turn_sellers_off_and_kill_deals
Monday, April 4, 2011
What is a short sale???
What’s a Short Sale
Judy Chapman (Koenig & Strey Real Living)
Try Googling What is a Short Sale, and you’ll get over 6 millions links to informative web sites.
So it’s no wonder many home owners are confused about Short Sales, what they are and what they have to offer. With so much information and misinformation floating around, it’s easy not to know which end is up.
From all the hoopla, you probably surmise a Short Sale is some thing good and also some thing complicated. To separate the wheat from the shaft, you want the simplest explanation possible. An explanation that will help you decide if a Short Sale is right for you.
Here’s the simple answer to the question, What is a short sale?
If you’re upside-down on your mort gage — meaning your house is worth less than your loan — you can still sell your house … as a Short Sale.
Here’s the long-winded definition:
A Short Sale occurs when, upon the sale of the property, the lender agrees to accept a pay off for less than the remain ing mort gage balance. The lender can for give the entire short fall as well as pay the seller’s closing costs, includ ing the real estate broker’s sales commission.
The loss can —.
Be completely writ en off by the lender
Partially or wholly paid off over time by the borrower through a promissory note – or –
Partially mitigat ed through a lump-sum payment at the time of closing.
The lender may also seek the deficiency from the borrower post-sale.
The long and the short
For home own ers who can’t afford to live in their houses any longer — but can’t sell because they’re upside-down on their mortgage — a Short Sale could very well be the answer to a good night’s sleep. In fact, it may be the only viable way out of an impossible situation, stuck as they are between a rock and a hard place.
Doing a Short Sale is noth ing more than putting your house up for sale in the usual man ner, negotiating a solid contract with a qualified home buyer, preparing extra paperwork, waiting a bit longer for your bank to approve the Short Sale, and moving on with your life.
It doesn’t really matter the state of your financial situation. If you need to get out from under an upside-down property, the chances are high you can do it with a Short Sale.
Being upside-down isn’t the same as being inside-out
Cur rent ly, 25% of home own ers are upside-down on their loans.
Many of these homeowners have or will soon face adjustable interest rates that make it impossible to keep up with payments.
Others are experiencing hard ships, like job loss or illness.
Some have to make a change due to job relocation or family reasons.
Still others are in a negative cash flow position on rental properties.
And others don’t see the point of making payments on a house that will never recover from the real estate bust.
Unless banks forgive a portion of those loans, however, home owners are ‘under house arrest’ and can not sell.
This is where home buyers look ing for a good deal come into the pic ture.
Because buy ers must wait for bank approval, they’re only willing to purchase a Short Sale pro vid ed it’s at a dis count ed price. Depend ing on the condition of the house, Short Sale prop er ties generally sell for about 10% less than com parable ‘non-distressed’ hous es.
This kind of dis count makes your house that much more attrac tive to many home buy ers, who are usually investors and first-time home buyers. Some buyers who currently own a home but want to move up or down size are also will ing to make the plunge, provided the right opportunity comes along.
You don’t have to get dizzy from being upside-down
Because your lender must take a loss on its original invest ment, it must decide whether approving your Short Sale is a sound finacial decision. They do this by first exam in ing your financial position and then making sure the con tract ed price is the best possible price given current market conditions.
Getting right-side up
When you decide to do a Short Sale, make sure to take 2 crucial steps.
Treat the selling of your house with the same dedication and respect as you would a regular sale.
Under stand that a Short Sale isn’t guaranteed and requires flexibility, patience, and the willing ness to make it work.
Take it to the bank
Done right, a Short Sale can be successful. The emotional cost of doing one will be more than off set by being able to move out and move on.
CHICAGO SHORT SALESFIND SHORT SALE REALTOR(R)FIND ORLANDO RE
Judy Chapman (Koenig & Strey Real Living)
Try Googling What is a Short Sale, and you’ll get over 6 millions links to informative web sites.
So it’s no wonder many home owners are confused about Short Sales, what they are and what they have to offer. With so much information and misinformation floating around, it’s easy not to know which end is up.
From all the hoopla, you probably surmise a Short Sale is some thing good and also some thing complicated. To separate the wheat from the shaft, you want the simplest explanation possible. An explanation that will help you decide if a Short Sale is right for you.
Here’s the simple answer to the question, What is a short sale?
If you’re upside-down on your mort gage — meaning your house is worth less than your loan — you can still sell your house … as a Short Sale.
Here’s the long-winded definition:
A Short Sale occurs when, upon the sale of the property, the lender agrees to accept a pay off for less than the remain ing mort gage balance. The lender can for give the entire short fall as well as pay the seller’s closing costs, includ ing the real estate broker’s sales commission.
The loss can —.
Be completely writ en off by the lender
Partially or wholly paid off over time by the borrower through a promissory note – or –
Partially mitigat ed through a lump-sum payment at the time of closing.
The lender may also seek the deficiency from the borrower post-sale.
The long and the short
For home own ers who can’t afford to live in their houses any longer — but can’t sell because they’re upside-down on their mortgage — a Short Sale could very well be the answer to a good night’s sleep. In fact, it may be the only viable way out of an impossible situation, stuck as they are between a rock and a hard place.
Doing a Short Sale is noth ing more than putting your house up for sale in the usual man ner, negotiating a solid contract with a qualified home buyer, preparing extra paperwork, waiting a bit longer for your bank to approve the Short Sale, and moving on with your life.
It doesn’t really matter the state of your financial situation. If you need to get out from under an upside-down property, the chances are high you can do it with a Short Sale.
Being upside-down isn’t the same as being inside-out
Cur rent ly, 25% of home own ers are upside-down on their loans.
Many of these homeowners have or will soon face adjustable interest rates that make it impossible to keep up with payments.
Others are experiencing hard ships, like job loss or illness.
Some have to make a change due to job relocation or family reasons.
Still others are in a negative cash flow position on rental properties.
And others don’t see the point of making payments on a house that will never recover from the real estate bust.
Unless banks forgive a portion of those loans, however, home owners are ‘under house arrest’ and can not sell.
This is where home buyers look ing for a good deal come into the pic ture.
Because buy ers must wait for bank approval, they’re only willing to purchase a Short Sale pro vid ed it’s at a dis count ed price. Depend ing on the condition of the house, Short Sale prop er ties generally sell for about 10% less than com parable ‘non-distressed’ hous es.
This kind of dis count makes your house that much more attrac tive to many home buy ers, who are usually investors and first-time home buyers. Some buyers who currently own a home but want to move up or down size are also will ing to make the plunge, provided the right opportunity comes along.
You don’t have to get dizzy from being upside-down
Because your lender must take a loss on its original invest ment, it must decide whether approving your Short Sale is a sound finacial decision. They do this by first exam in ing your financial position and then making sure the con tract ed price is the best possible price given current market conditions.
Getting right-side up
When you decide to do a Short Sale, make sure to take 2 crucial steps.
Treat the selling of your house with the same dedication and respect as you would a regular sale.
Under stand that a Short Sale isn’t guaranteed and requires flexibility, patience, and the willing ness to make it work.
Take it to the bank
Done right, a Short Sale can be successful. The emotional cost of doing one will be more than off set by being able to move out and move on.
CHICAGO SHORT SALESFIND SHORT SALE REALTOR(R)FIND ORLANDO RE
So You Want to Look at Property...A Primer
For the most part, sellers want to sell their home and are happy to have you come through and see if their home will become your next home. That said, there a few tips that we think will help to make your "house viewing" experience as fun and enjoyable as possible!
1. Everyone in your group, including children should wear shoes that are easy to slip on and off. With few exceptions, you will need to remove your footwear before going through a home. It can be a challenge juggling purses, bags, cameras, umbrellas, children etc.
2. Do not bring food, drinks, candy, gum, chips whatever into someone's home. And we can deal with any garbage you may have somewhere else. If, for some reason we are doing a "marathon" showing tour with clients, especially those with children, we will schedule a break into the day for bathroom, coffee and food.
3. Sometimes it helps to sit on the couch or chair to get some perspective on a room and to see how the space "feels". We understand this. However, we think it's best not to lie down on the bed.
4. Speaking of children, please keep them within your view and under control. The contents of the fridge are not for the taking, the toys are not to be played with, drawers are not to be sifted through. Beds are not for jumping on etc.
(As for 2, 3 & 4 - We mention them now so we don't have to mention them later)
5. Whether you love the house or have not much good to say about it - tell us outside of the house, preferably at our office. Some sellers have nanny cams and some sellers may actually be at home. No one wants to feel insulted by their taste in decor, design or housekeeping skills. Not every home is for everyone. On the other hand, we don't want to tip our hand if you really, really love it!
6. We encourage our buyers to bring along a notepad & pen, as well as a camera (a picture's worth a thousand words). We do have a note about photos - not all sellers are comfortable with having photos taken other than the ones taken by the listing agent. As your agent/buyers representative, we do our best to confirm photo taking in advance.
7. Sometimes circumstances come up, but try to be on time. A lot goes into scheduling showings and having people leave their homes sometimes with kids and pets in tow.
8.There are occasions where extra sensitivity is required on our part and, as Realtors, we will likely know in advance what the issue is - estates, foreclosures and tenancy where the tenant may not want to move.
9. In all of this, if you are not really ready to commit yet to purchasing and are "just looking for fun" we would like to suggest that you visit open houses or model homes until you are ready. Booking showings with private homes requires a lot on the part of the seller to have the home ready to show and to make arrangements to be out of the house.
As always, it will be a pleasure to help you find the house of your dreams that fits your lifestyle and financial goals. House hunting should be a fun and exciting time!
Original article: http://activerain.com/blogsview/2222978/so-you-want-to-look-at-properties-a-primer-
1. Everyone in your group, including children should wear shoes that are easy to slip on and off. With few exceptions, you will need to remove your footwear before going through a home. It can be a challenge juggling purses, bags, cameras, umbrellas, children etc.
2. Do not bring food, drinks, candy, gum, chips whatever into someone's home. And we can deal with any garbage you may have somewhere else. If, for some reason we are doing a "marathon" showing tour with clients, especially those with children, we will schedule a break into the day for bathroom, coffee and food.
3. Sometimes it helps to sit on the couch or chair to get some perspective on a room and to see how the space "feels". We understand this. However, we think it's best not to lie down on the bed.
4. Speaking of children, please keep them within your view and under control. The contents of the fridge are not for the taking, the toys are not to be played with, drawers are not to be sifted through. Beds are not for jumping on etc.
(As for 2, 3 & 4 - We mention them now so we don't have to mention them later)
5. Whether you love the house or have not much good to say about it - tell us outside of the house, preferably at our office. Some sellers have nanny cams and some sellers may actually be at home. No one wants to feel insulted by their taste in decor, design or housekeeping skills. Not every home is for everyone. On the other hand, we don't want to tip our hand if you really, really love it!
6. We encourage our buyers to bring along a notepad & pen, as well as a camera (a picture's worth a thousand words). We do have a note about photos - not all sellers are comfortable with having photos taken other than the ones taken by the listing agent. As your agent/buyers representative, we do our best to confirm photo taking in advance.
7. Sometimes circumstances come up, but try to be on time. A lot goes into scheduling showings and having people leave their homes sometimes with kids and pets in tow.
8.There are occasions where extra sensitivity is required on our part and, as Realtors, we will likely know in advance what the issue is - estates, foreclosures and tenancy where the tenant may not want to move.
9. In all of this, if you are not really ready to commit yet to purchasing and are "just looking for fun" we would like to suggest that you visit open houses or model homes until you are ready. Booking showings with private homes requires a lot on the part of the seller to have the home ready to show and to make arrangements to be out of the house.
As always, it will be a pleasure to help you find the house of your dreams that fits your lifestyle and financial goals. House hunting should be a fun and exciting time!
Original article: http://activerain.com/blogsview/2222978/so-you-want-to-look-at-properties-a-primer-
Thursday, March 31, 2011
Do you really want to sell your house?
For those who believe everything they hear in the media and think that the housing market is at a complete stand still, I have some news. There are many homes that are selling, and selling quickly. They simply fit into one of two categories.
They are:
Well-presented, or Very well-priced.
Or, preferably - both.
Some of my buyer clients have recently run into extremely competitive situations resulting in multiple offer scenarios. I have found myself resorting back to techniques that were used during the boom periods to have their offers brought to the top of the pile. These include writing letters defining their current and past employment situations, and descriptions of exactly - what nice families they are.
What is causing this type of competition in a down market?
These are basically sellers who have smart Realtors® and they are taking their advice. Before the home is put in the market, the agent goes through the property and points out areas that need improvement. As a result:
-- Interiors are getting a fresh coat of paint. -- The home is immaculately cleaned. -- Any deferred maintenance is immediately taken care of. -- Repairs are being made. -- Out-of-date décor such as flowered wall paper is being removed. -- New kitchen counters are being installed. -- The exterior is repainted, in necessary. -- But most importantly, the home is priced correctly.
Perfect homes, of course are not the only houses that are selling. Foreclosures, estate sales and properties that need freshening but do not have the resources to do so are also sometimes generating multiple offers. The key is - they must be priced to sell.
The message here is that, even in this difficult market, there are houses that are coming on and selling on the first day they are listed. The secret - and this should not be much of a secret - is: Listen to your Realtor®!
Copyright 2011 "What Types of Homes are Selling Right Now? Perfect Ones!" Claudette Millette, Broker, Owner, The Buyers' Counsel - (508) 881-6230
Monday, March 28, 2011
JUST LISTED! - Awesome Midtown Ranch
Awesome, brick ranch in desirable Midtown Savannah. Situated on a quiet street with no thru traffic, this house resonates a peaceful ambiance. The airy, screen porch entrance leads to a spacious, open foyer just off the large, light-filled living room and separate dining room. The cozy family room offers a a wood burning fireplace flanked by floor to ceiling built-ins. The eat-in kitchen is crisp and well-planned. Each of the three (3) bedrooms is big and bright with plenty of closet space. The tremendous back yard and an attached studio with separate entrance, wrap this package up nicely. This solid, serene house awaits for you to add your discerning touches. For more information please visit DonCallahan.com
Wednesday, March 23, 2011
Community Profile: Parkside
Leafy shade covered streets and Craftsman style homes are a hallmark of this midtown neighborhood. Located immediately adjacent to Daffin Park, Savannah's largest, though less famous green space, Parkside is a quaint close-knit community offering an affordable alternative to Ardsley Park, its cousin to the west. Bungalows are the signature architectural style in this neighborhood, though there is a sprinkling of larger homes, multi-family buildings and even a few modernist gems. The Waters Avenue corridor provides access to local businesses and boutiques as well as a quick route to the Southside or Downtown Savannah.
Monday, March 21, 2011
5 Mortgage and Foreclosure Myths
Here's a great article from Trulia blogger Tara-Nicholle Nelson on 5 mortgage and foreclosure myths. If you're facing a major decision regarding your home, remember to turn to the experts. For real estate advice contact us today to discuss your situation. Looking into a short sale on your home? Visit http://www.shortsalesinsavannah.net/ to explore your options. Just thinking about refinancing? Visit the Concierge page of DonCallahan.com for a list of local lenders.
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In a mortgage market that changes as quickly as this one, today’s fact is tomorrow’s fiction. For buyers, misinformation can be the difference between qualifying for a home loan or not. Sellers and owners, knowledge is foreclosure-preventing, smart decision-making power! Without further ado, let’s correct some common mortgage misconceptions.
1. Myth: Buyers with bad credit can’t qualify for home loans. Obviously, mortgage guidelines have tightened up, big time, since the housing bubble burst, and they seem likely to tighten even further over the long-term. But just this moment, they have relaxed a bit. In the last couple of weeks, two of the nation’s largest lenders of FHA loans announced that they’ve dropped the minimum FICO score guideline from 620 (which allows for some credit imperfections) to 580, which is actually a fairly low score.
At a FICO score of 620, buyers can qualify for FHA loans at many lenders with only 3.5 percent down. With a score of 580, the lenders are looking for more like 5 to 10 percent down – they want to see you put more of your own skin in the game, and the higher down payment lowers the risk that you’ll default. However, if your credit has taken a recessionary hit, like that of so many Americans, this might create a glimmer of hope that you’ll be able to take advantage of low prices and interest rates without needing years of credit repair.
2. Myth: The Mortgage Interest Deduction isn’t long for this world. Homeowners saved over $85 billion in 2008 by deducting their mortgage interest on their income tax returns. A few months ago, the National Commission on Fiscal Responsibility and Reform caused a massive wave of fear to ripple throughout the world of real estate consumers and professionals when they recommended Mortgage Interest Deduction (MID) reform, which would dramatically reduce the size of the deduction.
Fact is, the Commission made a sweeping set of deficit-busting recommendations to Congress, a few of which are likely to be adopted. Fortunately for buyers and sellers, MID reform is not one of them. Very powerful industry groups and economists have been working with Congress to plead the case that MID reform any time in the near future would only handicap the housing recovery. Congress-folk aren’t interested in stopping the stabilization of the real estate market. As such, the MID is nearly universally thought of as safe – even by those who disagree that it should be.
3. Myth: It’s just a matter of time before loan guidelines loosen up. The US Treasury Department recently recommended the elimination of mortgage industry giants Fannie Mae and Freddie Mac. I won’t get into the eye-glazing details of it here, but the long and the short is that (a) this is highly likely to happen, and (b) it will make mortgage loans much harder and costlier to get, for both buyers and homeowners. It’s possible that loans are as easy to get as they’re going to get. So don’t expect that if you hold out, zero-down mortgages will come back into vogue anytime soon. Fortunately, Fannie and Freddie aren't likely to disappear for another 5-7 years, so you have a little time to pull your down payment and credit together. If you want to get into the market, the time to get yourself ready is now!
4. Myth: If you don’t have equity, you can’t refi. Much ado is being made about how stuck so many people are in their bad loans, because they don’t have the equity to refinance their way out of them. If you’re severely upside down (meaning you own much, much more than your home is worth), stuck may be the situation. But there are actually a couple of ways homeowners can refi their underwater home loans. If your loan is held by Fannie or Freddie (which you can find out, here), they will actually refinance it up to 125% of its current value, assuming you otherwise qualify for the loan. That means, if your home is worth $100,000, you could refinance a loan up to $125,000, despite the fact that your home can’t secure the full amount of the loan.
If your loan is not owned by Fannie or Freddie, you might be a candidate for the FHA “Short Refi” program. While most mortgage workout plans are only available to people who are behind on their loans, the Short Refi program is only available to homeowners who are current on their mortgages and need to refinance up to 115 percent of their homes’ value. So, if you owe $250,000 on your home, you can refinance via an FHA Short Refi even if your home’s value is as low as $217,000. If you think you’re a good candidate for a short refi, contact your mortgage broker, stat – there are some in Congress who think that this program is so underutilized (only 245 applications have been submitted since it rolled out in September – no typo!) that its funding should be diverted to other needy programs.
5. Myth: If you’ve lost your job and can’t make your mortgage payment, you might as well mail your keys in. Until recently, this was essentially true – virtually every loan modification and refinancing opportunity required that your economic hardship be over before you could qualify. And documenting income has always been high on the requirements checklist. But there are some new funds available in the states with the hardest hit housing and job markets, which have been designated specifically for out-of-work homeowners.
The US Treasury Department’s Hardest Hit Fund allocated $7.6 billion to the states listed below – all of which are now using some portion of these funds to offer up to $3,000 per month for up to 36 months in mortgage payment assistance to help unemployed homeowners avoid foreclosure. Contact the state agency listed below if you need this sort of help:
•Georgia: http://www.dca.state.ga.us/housing/homeownership/programs/hardesthitfund.asp
View original article here:http://www.trulia.com/blog/taranelson/2011/03/5_mortgage_and_foreclosure_myths?ecampaign=anews&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2011%2F03%2F5_mortgage_and_foreclosure_myths
-------------------
In a mortgage market that changes as quickly as this one, today’s fact is tomorrow’s fiction. For buyers, misinformation can be the difference between qualifying for a home loan or not. Sellers and owners, knowledge is foreclosure-preventing, smart decision-making power! Without further ado, let’s correct some common mortgage misconceptions.
1. Myth: Buyers with bad credit can’t qualify for home loans. Obviously, mortgage guidelines have tightened up, big time, since the housing bubble burst, and they seem likely to tighten even further over the long-term. But just this moment, they have relaxed a bit. In the last couple of weeks, two of the nation’s largest lenders of FHA loans announced that they’ve dropped the minimum FICO score guideline from 620 (which allows for some credit imperfections) to 580, which is actually a fairly low score.
At a FICO score of 620, buyers can qualify for FHA loans at many lenders with only 3.5 percent down. With a score of 580, the lenders are looking for more like 5 to 10 percent down – they want to see you put more of your own skin in the game, and the higher down payment lowers the risk that you’ll default. However, if your credit has taken a recessionary hit, like that of so many Americans, this might create a glimmer of hope that you’ll be able to take advantage of low prices and interest rates without needing years of credit repair.
2. Myth: The Mortgage Interest Deduction isn’t long for this world. Homeowners saved over $85 billion in 2008 by deducting their mortgage interest on their income tax returns. A few months ago, the National Commission on Fiscal Responsibility and Reform caused a massive wave of fear to ripple throughout the world of real estate consumers and professionals when they recommended Mortgage Interest Deduction (MID) reform, which would dramatically reduce the size of the deduction.
Fact is, the Commission made a sweeping set of deficit-busting recommendations to Congress, a few of which are likely to be adopted. Fortunately for buyers and sellers, MID reform is not one of them. Very powerful industry groups and economists have been working with Congress to plead the case that MID reform any time in the near future would only handicap the housing recovery. Congress-folk aren’t interested in stopping the stabilization of the real estate market. As such, the MID is nearly universally thought of as safe – even by those who disagree that it should be.
3. Myth: It’s just a matter of time before loan guidelines loosen up. The US Treasury Department recently recommended the elimination of mortgage industry giants Fannie Mae and Freddie Mac. I won’t get into the eye-glazing details of it here, but the long and the short is that (a) this is highly likely to happen, and (b) it will make mortgage loans much harder and costlier to get, for both buyers and homeowners. It’s possible that loans are as easy to get as they’re going to get. So don’t expect that if you hold out, zero-down mortgages will come back into vogue anytime soon. Fortunately, Fannie and Freddie aren't likely to disappear for another 5-7 years, so you have a little time to pull your down payment and credit together. If you want to get into the market, the time to get yourself ready is now!
4. Myth: If you don’t have equity, you can’t refi. Much ado is being made about how stuck so many people are in their bad loans, because they don’t have the equity to refinance their way out of them. If you’re severely upside down (meaning you own much, much more than your home is worth), stuck may be the situation. But there are actually a couple of ways homeowners can refi their underwater home loans. If your loan is held by Fannie or Freddie (which you can find out, here), they will actually refinance it up to 125% of its current value, assuming you otherwise qualify for the loan. That means, if your home is worth $100,000, you could refinance a loan up to $125,000, despite the fact that your home can’t secure the full amount of the loan.
If your loan is not owned by Fannie or Freddie, you might be a candidate for the FHA “Short Refi” program. While most mortgage workout plans are only available to people who are behind on their loans, the Short Refi program is only available to homeowners who are current on their mortgages and need to refinance up to 115 percent of their homes’ value. So, if you owe $250,000 on your home, you can refinance via an FHA Short Refi even if your home’s value is as low as $217,000. If you think you’re a good candidate for a short refi, contact your mortgage broker, stat – there are some in Congress who think that this program is so underutilized (only 245 applications have been submitted since it rolled out in September – no typo!) that its funding should be diverted to other needy programs.
5. Myth: If you’ve lost your job and can’t make your mortgage payment, you might as well mail your keys in. Until recently, this was essentially true – virtually every loan modification and refinancing opportunity required that your economic hardship be over before you could qualify. And documenting income has always been high on the requirements checklist. But there are some new funds available in the states with the hardest hit housing and job markets, which have been designated specifically for out-of-work homeowners.
The US Treasury Department’s Hardest Hit Fund allocated $7.6 billion to the states listed below – all of which are now using some portion of these funds to offer up to $3,000 per month for up to 36 months in mortgage payment assistance to help unemployed homeowners avoid foreclosure. Contact the state agency listed below if you need this sort of help:
•Georgia: http://www.dca.state.ga.us/housing/homeownership/programs/hardesthitfund.asp
View original article here:http://www.trulia.com/blog/taranelson/2011/03/5_mortgage_and_foreclosure_myths?ecampaign=anews&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2011%2F03%2F5_mortgage_and_foreclosure_myths
Wednesday, March 16, 2011
Keller Williams Growing
Keller Williams Realty received many accolades in 2010 including:
-- Entrepreneur magazine, No. 1 ranked real estate franchise on the 31st Annual Franchise 500 list
-- J.D. Power and Associates, highest in overall satisfaction ratings from home buyers among the largest full-service real estate firms for the third year in a row
-- Inman News, Co-Founder and Chairman of the Board Gary Keller named one of the 100 Most Influential Leaders in Real Estate
-- Training Magazine, highest ranking real estate franchise on the annual Training Top 25
It was announced the other week that Keller Williams is now the second largest real estate franchise in the United States based on total number of sales professionals. Despite industry contraction, Keller Williams associates across North America also showed significant percentage gains in listings taken (+13%), contracts closed volume (+9%) and contracts closed units (+6%).
Additionally, Keller Williams Realty rolled out a paperless transaction system this month. I am thrilled to be helping the environment while helping friends and clients with their real estate needs.
.
Wednesday, March 2, 2011
Just Listed! - 625 E. 51st Street
Charming brick bungalow on desirable block in Savannah’s most coveted Historic community, Ardsley Park. The deep shady front porch welcomes all guests and the homeowner. Separate Living room with fireplace, French door the side porch/sunroom, spacious dining room and adorable breakfast room with built in cupboards. The kitchen has updated white cabinetry, stove, refrigerator, dishwasher and built-in microwave/vent. There are three bedrooms and two full baths. With a fenced in back yard and one car garage this house has it all!!!
For more information visit www.DonCallahan.com
For more information visit www.DonCallahan.com
Thursday, February 24, 2011
225 East 65th Street - Video Tour
Don takes you on a tour of our new listing at 225 East 63rd Street. For more information on this home be sure to visit http://www.doncallahan.com/
Tuesday, February 22, 2011
1804 E. 32nd Street - Video Tour
Go along with Don Callahan as he takes you through his new listing at 1804 E. 32nd Street.
Are You Ready to Move Up?
Today's market has created an environment where it is a great time to be a buyer. Interest rates are still at historical lows, the job market is improving, and affordability is near generational highs.
Those with growing families and steady jobs may be asking themselves if now is the time to "move up". To answer this question, consider these points:
1. Finances: Is your job steady and secure? Moving up can mean taking on the responsibility of a bigger monthly mortgage payment, along with higher property taxes.
2. Equity: Some buyers use the equity they have built in their current house to help fund their "move up." Now is a good time to research the local housing market. Some neighborhoods may have experienced dramatic declines in home values, while others have maintained a healthy level. To find out how much equity you have built in your house, go to www.DonCallahan.com and generate a “market snapshot” on your home.
3. Housing Trends: Now that you have researched the local housing trends, you must ask yourself whether or not you feel comfortable making a move in your particular economic climate. Do you feel that there is a healthy balance of buyers and sellers, should you need to move and sell? As your local real estate agent, I can answer many questions pertaining to local market trends and values.
4. Family Considerations: Moving up may mean moving away from friends, family, and school districts. Be sure to take this into consideration before jumping into a life changing situation.
5. Energy: A bigger house means more energy consumption. This translates into a bigger carbon footprint, as well as a heftier monthly bill. If you are moving up, consider looking for homes that meet green standards. Energy star rated appliances, adequate insulation, and even new insulated windows can make a huge difference.
Remember, homeownership is a long-term investment. In today's troubled market it is best to keep in mind that home values may not be at their bottom. But if you meet the financial qualifications outlined above, then a long-term investment, and a "move up" sound like a good fit! Now, have fun picking out your dream home!
Those with growing families and steady jobs may be asking themselves if now is the time to "move up". To answer this question, consider these points:
1. Finances: Is your job steady and secure? Moving up can mean taking on the responsibility of a bigger monthly mortgage payment, along with higher property taxes.
2. Equity: Some buyers use the equity they have built in their current house to help fund their "move up." Now is a good time to research the local housing market. Some neighborhoods may have experienced dramatic declines in home values, while others have maintained a healthy level. To find out how much equity you have built in your house, go to www.DonCallahan.com and generate a “market snapshot” on your home.
3. Housing Trends: Now that you have researched the local housing trends, you must ask yourself whether or not you feel comfortable making a move in your particular economic climate. Do you feel that there is a healthy balance of buyers and sellers, should you need to move and sell? As your local real estate agent, I can answer many questions pertaining to local market trends and values.
4. Family Considerations: Moving up may mean moving away from friends, family, and school districts. Be sure to take this into consideration before jumping into a life changing situation.
5. Energy: A bigger house means more energy consumption. This translates into a bigger carbon footprint, as well as a heftier monthly bill. If you are moving up, consider looking for homes that meet green standards. Energy star rated appliances, adequate insulation, and even new insulated windows can make a huge difference.
Remember, homeownership is a long-term investment. In today's troubled market it is best to keep in mind that home values may not be at their bottom. But if you meet the financial qualifications outlined above, then a long-term investment, and a "move up" sound like a good fit! Now, have fun picking out your dream home!
Thursday, February 3, 2011
Why Use a REALTOR?
All real estate licensees are not the same. Only real estate licensees who are members of the NATIONAL ASSOCIATION OF REALTORS® are properly called REALTORS®. They proudly display the REALTOR "®" logo on the business card or other marketing and sales literature. REALTORS® are committed to treat all parties to a transaction honestly. REALTORS® subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. An independent survey reports that 84% of home buyers would use the same REALTOR® again.
Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.
But if you're still not convinced of the value of a REALTOR®, here are a dozen more reasons to use one:
1. Your REALTOR® can help you determine your buying power -- that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders -- banks and mortgage companies -- offer limited choices.
2. Your REALTOR® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.
3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning. schools, etc. There are two things you'll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?
4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.
5. Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date.
6. Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders.
7. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.
8. When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.
9. Your REALTOR® markets your property to other real estate agents and the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTOR® markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your REALTOR® acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTOR® Code of Ethics requires REALTORS® to utilize these cooperative relationships when they benefit their clients.
10. Your REALTOR® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.
11. Your REALTOR® can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing -- a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.
12. Your REALTOR® can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).
Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.
But if you're still not convinced of the value of a REALTOR®, here are a dozen more reasons to use one:
1. Your REALTOR® can help you determine your buying power -- that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders -- banks and mortgage companies -- offer limited choices.
2. Your REALTOR® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.
3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning. schools, etc. There are two things you'll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?
4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.
5. Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date.
6. Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders.
7. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.
8. When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.
9. Your REALTOR® markets your property to other real estate agents and the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTOR® markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your REALTOR® acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTOR® Code of Ethics requires REALTORS® to utilize these cooperative relationships when they benefit their clients.
10. Your REALTOR® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.
11. Your REALTOR® can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing -- a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.
12. Your REALTOR® can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).
Monday, January 24, 2011
Mortgage Rates Climb
By Chris Vogler chris.vogler@bankofamerica.com
Bank of America Home Loans
Stronger than expected economic data with a hint of higher inflation was negative for mortgage markets last week. Concerns about the level of demand for US securities from China added to the pressure. As a result, mortgage rates ended the week higher.
A number of factors combined during the week to push mortgage rates higher. The recent trend of improving economic data continued this week in the housing sector. The inflation information seemed to show a sharp increase. Later in the week, a Treasury auction for securities which provide protection from inflation showed that investor concerns about future inflation are growing. Investors also worried about a decline in demand for US bonds from China. As the largest foreign holder of US fixed-income securities, any sustained drop in demand from China would have a large impact on US bond markets, including mortgage-backed securities (MBS) markets.
Overall, last week's housing sector data was positive. December Existing Home Sales rose 12% from November. The inventory of unsold existing homes declined 4% to an 8.1-month supply. First-time buyers purchased 33% of existing home sales. December Housing Starts fell from November, but December Building Permits, a leading indicator, rose to the highest level since March. The performance of the housing market varied in different regions, but to see improvement on the national level is encouraging.
Bank of America Home Loans
Stronger than expected economic data with a hint of higher inflation was negative for mortgage markets last week. Concerns about the level of demand for US securities from China added to the pressure. As a result, mortgage rates ended the week higher.
A number of factors combined during the week to push mortgage rates higher. The recent trend of improving economic data continued this week in the housing sector. The inflation information seemed to show a sharp increase. Later in the week, a Treasury auction for securities which provide protection from inflation showed that investor concerns about future inflation are growing. Investors also worried about a decline in demand for US bonds from China. As the largest foreign holder of US fixed-income securities, any sustained drop in demand from China would have a large impact on US bond markets, including mortgage-backed securities (MBS) markets.
Overall, last week's housing sector data was positive. December Existing Home Sales rose 12% from November. The inventory of unsold existing homes declined 4% to an 8.1-month supply. First-time buyers purchased 33% of existing home sales. December Housing Starts fell from November, but December Building Permits, a leading indicator, rose to the highest level since March. The performance of the housing market varied in different regions, but to see improvement on the national level is encouraging.
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