Our market is still moving in a POSTIVE direction!!!
Housing business picks up in Valley; foreclosures drop - Here are some key data and predictions from Land Advisors' debut real-estate forecast event last week:
• Almost one-fourth of metro Phoenix's current new-home developments will sell out in the next six months.
• Phoenix's housing market hit bottom in early April, said Mike Orr, principal of the Cromford Report, a real-estate research firm. Based on current price trends, the housing market could start to see positive appreciation rates by March.
• Last month was the second-best November for home sales in the area's history. Only November 2004 was better.
• Meanwhile, both foreclosures and preforeclosures fell in Phoenix during November. Foreclosures dropped 21% from October to 3,808. Preforeclosures dipped 9%, to 7,149.
http://www.azcentral.com/arizonarepublic/business/articles/2009/12/08/20091208biz-catherine1209.html
New FHA Guidelines Could Amp Condo Sales - "FHA approved" may soon become the most popular condo amenity, thanks to the new guidelines established by the FHA to take effect February 1, 2010. The guidelines addressed the two imperatives facing condominium sales: down payments and the financial integrity of condo associations. "FHA approved" used to mean a 3.5% down payment. Starting early next year, "FHA approved" will mean 3.5% down plus a financially stable association approved by your lender. This is huge. See the full article for details on the new guidelines.
http://realtytimes.com/rtpages/20091209_fhaguidelines.htm
Mortgage applications jump 8.5% as interest rates tick up - Mortgage applications jumped 8.5% the week ended Dec. 4, as more borrowers refinanced loans to lock in interest rates near record lows, according to the Mortgage Bankers Association. Refinancing applications were up 11.1% from the previous week; purchase applications were up 4%. Customers looking to refinance existing mortgages accounted for 74% of all applications, up from 72% the previous week.
http://www.usatoday.com/money/economy/housing/2009-12-09-mortgage-applications_N.htm
Thursday, December 10, 2009
Thursday, November 12, 2009
HOUSING: Market faces short-sale stampede in 2010, forecasters say
Our predictions seem to be matched by MANY others in the Real Estate industry, see this most recently written article:
By ERIC WOLFF - ewolff@nctimes.com Posted: Wednesday, November 11, 2009 4:10 pm
Short sales of homes frustrate buyers, annoy lenders, and cause real estate agents to tear their hair out waiting for deals to close.
In 2010, there will be a whole lot more of them, a market research firm said.
Surveys conducted by Campbell Communications show that short-sale inventory is rising quickly, and can be expected to do so even faster in the next few years. Meanwhile the number of ordinary home sales and foreclosures will grow slowly.
A housing market swamped by a wave of subprime mortgage foreclosures that peaked in 2007 is facing billions of dollars of adjustable loans that begin to recast in 2010, according to data from Credit Suisse. As low "teaser" rates expire, mortgage payments will jump for many homeowners.
With U.S. unemployment higher than 10 percent and the economy showing few signs of improving, analysts foresee a herd of distressed properties reaching the market between 2010 and 2012. But real estate agents waiting for a stampede of foreclosures to break out may be left standing at the gate, as homeowners seek alternative ways to avoid defaults.
"When someone becomes unemployed, there's a number of options. One is foreclosure," said Thomas Popik, Cambell Communications' research director. "Increasingly, a number of other options are available."
President Barack Obama has made avoiding foreclosure a priority in his administration. As part of the American Recovery and Reconstruction Act, lenders were offered incentives to modify loans of distressed property owners.
"We have a massive government intervention going on," said Sean O'Toole, founder and chief analyst for real estate Web site ForeclosureRadar. "We simply don't have the political will to foreclose on these folks."
In a short sale, borrowers get permission from their lenders to sell their property for less then they owe on a loan.
They solicit buyers and submit bids to a mortgage servicer, which in turn determines whether or not to approve the sale. If the sale is approved, the buyer can get a home at a discount, the seller avoids having a foreclosure as part of their financial record, and the bank can avoid becoming a homeowner.
"Banks are bad at owning real estate; they're not in that business and they're just bad at it," said Mark Goldman, an instructor at San Diego State University.
Lenders agree with Goldman on this point. A spokeswoman for GMAC Financial Services, Jeannine Bruin, said her company prioritizes keeping borrowers in their homes, but failing that, it prefers short sales to foreclosure. JPMorgan Chase & Co. has the same policy, spokesman Gary Kishner said.
"Foreclosure costs us a lot of money," Kishner said. "When a foreclosed house goes up for sale, we don't know how much house is going to go for. If we can avoid that, obviously it's better for us."
O'Toole has a sees it differently.
"What's pushing it forward is there's such a lack of inventory, and you've got this huge Realtor force that needs something to sell," he said. "This is one of the things that gives them something to sell."
Short sales also suffer from being complicated deals involving multiple lenders and thus multiple bureaucracies. In the end, the deals can take nine months or longer to complete.
"You'll have a lot of people lining up to offer short sales, but it's tough to get the banks attention to give them a deal," said Nathan Moeder, a real estate economist with The London Group.
And while most analysts agreed that there will be a substantial increase in short-sale inventory next year, not all think short sales will be a dominant force in the market.
"I don't think they'll become a stronger component of the market then REOs," O'Toole said, referring to bank-owned foreclosed properties. "I think REOs will still be a significant quantity, but I think we'll see a lot more growth in short sales than elsewhere."
By ERIC WOLFF - ewolff@nctimes.com Posted: Wednesday, November 11, 2009 4:10 pm
Short sales of homes frustrate buyers, annoy lenders, and cause real estate agents to tear their hair out waiting for deals to close.
In 2010, there will be a whole lot more of them, a market research firm said.
Surveys conducted by Campbell Communications show that short-sale inventory is rising quickly, and can be expected to do so even faster in the next few years. Meanwhile the number of ordinary home sales and foreclosures will grow slowly.
A housing market swamped by a wave of subprime mortgage foreclosures that peaked in 2007 is facing billions of dollars of adjustable loans that begin to recast in 2010, according to data from Credit Suisse. As low "teaser" rates expire, mortgage payments will jump for many homeowners.
With U.S. unemployment higher than 10 percent and the economy showing few signs of improving, analysts foresee a herd of distressed properties reaching the market between 2010 and 2012. But real estate agents waiting for a stampede of foreclosures to break out may be left standing at the gate, as homeowners seek alternative ways to avoid defaults.
"When someone becomes unemployed, there's a number of options. One is foreclosure," said Thomas Popik, Cambell Communications' research director. "Increasingly, a number of other options are available."
President Barack Obama has made avoiding foreclosure a priority in his administration. As part of the American Recovery and Reconstruction Act, lenders were offered incentives to modify loans of distressed property owners.
"We have a massive government intervention going on," said Sean O'Toole, founder and chief analyst for real estate Web site ForeclosureRadar. "We simply don't have the political will to foreclose on these folks."
In a short sale, borrowers get permission from their lenders to sell their property for less then they owe on a loan.
They solicit buyers and submit bids to a mortgage servicer, which in turn determines whether or not to approve the sale. If the sale is approved, the buyer can get a home at a discount, the seller avoids having a foreclosure as part of their financial record, and the bank can avoid becoming a homeowner.
"Banks are bad at owning real estate; they're not in that business and they're just bad at it," said Mark Goldman, an instructor at San Diego State University.
Lenders agree with Goldman on this point. A spokeswoman for GMAC Financial Services, Jeannine Bruin, said her company prioritizes keeping borrowers in their homes, but failing that, it prefers short sales to foreclosure. JPMorgan Chase & Co. has the same policy, spokesman Gary Kishner said.
"Foreclosure costs us a lot of money," Kishner said. "When a foreclosed house goes up for sale, we don't know how much house is going to go for. If we can avoid that, obviously it's better for us."
O'Toole has a sees it differently.
"What's pushing it forward is there's such a lack of inventory, and you've got this huge Realtor force that needs something to sell," he said. "This is one of the things that gives them something to sell."
Short sales also suffer from being complicated deals involving multiple lenders and thus multiple bureaucracies. In the end, the deals can take nine months or longer to complete.
"You'll have a lot of people lining up to offer short sales, but it's tough to get the banks attention to give them a deal," said Nathan Moeder, a real estate economist with The London Group.
And while most analysts agreed that there will be a substantial increase in short-sale inventory next year, not all think short sales will be a dominant force in the market.
"I don't think they'll become a stronger component of the market then REOs," O'Toole said, referring to bank-owned foreclosed properties. "I think REOs will still be a significant quantity, but I think we'll see a lot more growth in short sales than elsewhere."
Friday, October 30, 2009
First Time Homebuyer Tax Credit - Extended! and additional PERK!
THIS is the best news to come across my desk today for ALL my buyers and clients alike. Please read. Let me know how I can assit you!!!!
Looks like it is being extended until April 30, 2010.
http://www.usnews.com/money/blogs/the-home-front/2009/10/29/first-time-home-buyer-tax-credit-gets-obama-nod.html
http://www.bloomberg.com/apps/news?pid=20601087&sid=aoI9KTlHpwzI
An addition to the current agreement:
Existing buyers: But perhaps the most significant change is that current homeowners would become eligible for the tax perk as well. The current credit prevents home buyers who have owned a primary residence within the past three years from claiming the credit. The agreement, however, would allow current homeowners to claim up to $6,500 as long as the property they are vacating has been their primary residence for at least five years. Expanding the credit beyond first-time buyers is intended to boost home sales to "move up" buyers—those moving from one house to another—which some lawmakers, most notably Georgia Republican Sen. Johnny Isakson, argue is essential to a housing recovery.
Great article…
Looks like it is being extended until April 30, 2010.
http://www.usnews.com/money/blogs/the-home-front/2009/10/29/first-time-home-buyer-tax-credit-gets-obama-nod.html
http://www.bloomberg.com/apps/news?pid=20601087&sid=aoI9KTlHpwzI
An addition to the current agreement:
Existing buyers: But perhaps the most significant change is that current homeowners would become eligible for the tax perk as well. The current credit prevents home buyers who have owned a primary residence within the past three years from claiming the credit. The agreement, however, would allow current homeowners to claim up to $6,500 as long as the property they are vacating has been their primary residence for at least five years. Expanding the credit beyond first-time buyers is intended to boost home sales to "move up" buyers—those moving from one house to another—which some lawmakers, most notably Georgia Republican Sen. Johnny Isakson, argue is essential to a housing recovery.
Great article…
Sunday, June 7, 2009
INSPIRATIONAL QUOTES
INSPRIATIONAL QUOTES to start the week of June 13, 2009.
The following quotes make a difference in my life, I would like to share the motivation with my family, friends and clients!
If you can imagine it, you can achieve it; if you can dream it, you can become it.
William Arthur Ward
Happy are those who dream, dreams and are ready to pay the price to make them come true.
Leon J. Suenes
Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude.
Thomas Jefferson
Success is the sum of small efforts, repeated day in and day out.
Robert Collier
The thing always happens that you really believe in; and the belief in a thing makes it happen.
Frank Loyd Wright
The ability to convert ideas to things is the secret to outward success.
Henry Ward Beecher
The following quotes make a difference in my life, I would like to share the motivation with my family, friends and clients!
If you can imagine it, you can achieve it; if you can dream it, you can become it.
William Arthur Ward
Happy are those who dream, dreams and are ready to pay the price to make them come true.
Leon J. Suenes
Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude.
Thomas Jefferson
Success is the sum of small efforts, repeated day in and day out.
Robert Collier
The thing always happens that you really believe in; and the belief in a thing makes it happen.
Frank Loyd Wright
The ability to convert ideas to things is the secret to outward success.
Henry Ward Beecher
Thursday, June 4, 2009
HOME SALES RISE
Many people are to hear that Homes sales have rised, ohhhhhh yes, it is true!!!!!
Pending home sales rise 6.7 percent in April
Alan Zibel / AP Real Estate Writer
WASHINGTON -- The number of U.S. homebuyers who agreed to purchase a previously occupied home in April posted the largest monthly jump in nearly eight years, a sign that sales are finally coming to life after a long and painful slump.
Biggest jump since Oct. '01
June 2nd, 2009
Pending home sales rise 6.7 percent in April - Pending U.S. home sales in April posted the biggest monthly jump in nearly eight years, a sign that home sales are finally coming to life after a long and painful slump.
The National Association of Realtors said Tuesday its seasonally adjusted index of sales contracts signed in April surged 6.7 percent to 90.3, far exceeding analysts' forecasts. It was the biggest monthly jump since October 2001, when pending sales rose 9.2 percent.
"This is yet another positive indication that the bottoming process is forming," Jennifer Lee, an economist at BMO Capital Markets, wrote in a note to clients. "Now if only prices would stabilize."
Economists surveyed by Thomson Reuters expected the index would edge up to 85 from a reading of 84.6 in March. Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer for future existing home sales.
"The pronounced increase in April does indicate that actual existing home sales are poised to rise in the coming month or two," wrote Joshua Shapiro, chief U.S. economist with MFR Inc.
The index was 3.2 percent above last year's levels and has risen for three straight months after hitting a record low in January. A nearly 33 percent sales increase in the Northeast and a 9.8 percent jump in the Midwest led the overall surge. Sales contracts rose 1.8 percent in April from a month earlier in the West, but fell 0.2 percent in the South.
The big boost likely reflects the impact of a new $8,000 tax credit for first-time homebuyers that was included in the economic stimulus bill signed by President Barack Obama in February. Since buyers need to finish their purchases by Nov. 30 to claim the credit, "we expect greater activity in the months ahead," Lawrence Yun, the Realtors' chief economist, said in a statement.
Still, Yun cautioned that the pending sales data is more volatile than in the past because many sellers need banks to agree to take less than the original mortgage - a so-called "short sale." That process is often difficult, time-consuming and can wind up falling apart before the deal closes.
The Federal Housing Administration last week released details of a plan in which borrowers who use FHA loans can get advances from lenders that let them effectively receive the credit in advance, so they don't have to wait to get the money from the Internal Revenue Service.
Completed home sales rose 2.9 percent to an annual rate of 4.68 million in April from a downwardly revised pace of 4.55 million in March, the Realtors' group said last week.
Sales of inexpensive foreclosures and other distressed low-end properties have even sparked bidding wars in places like Las Vegas, Phoenix and Miami. But the market for high-end properties remains at a virtual standstill.
The national median sales price in April plunged more than 15 percent to $170,200, from $201,300 in the same month last year. That was the second largest yearly price drop on record, according to the Realtors' group.
NOW IS THE TIME TO BUY REAL ESTATE!!!
Pending home sales rise 6.7 percent in April
Alan Zibel / AP Real Estate Writer
WASHINGTON -- The number of U.S. homebuyers who agreed to purchase a previously occupied home in April posted the largest monthly jump in nearly eight years, a sign that sales are finally coming to life after a long and painful slump.
Biggest jump since Oct. '01
June 2nd, 2009
Pending home sales rise 6.7 percent in April - Pending U.S. home sales in April posted the biggest monthly jump in nearly eight years, a sign that home sales are finally coming to life after a long and painful slump.
The National Association of Realtors said Tuesday its seasonally adjusted index of sales contracts signed in April surged 6.7 percent to 90.3, far exceeding analysts' forecasts. It was the biggest monthly jump since October 2001, when pending sales rose 9.2 percent.
"This is yet another positive indication that the bottoming process is forming," Jennifer Lee, an economist at BMO Capital Markets, wrote in a note to clients. "Now if only prices would stabilize."
Economists surveyed by Thomson Reuters expected the index would edge up to 85 from a reading of 84.6 in March. Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer for future existing home sales.
"The pronounced increase in April does indicate that actual existing home sales are poised to rise in the coming month or two," wrote Joshua Shapiro, chief U.S. economist with MFR Inc.
The index was 3.2 percent above last year's levels and has risen for three straight months after hitting a record low in January. A nearly 33 percent sales increase in the Northeast and a 9.8 percent jump in the Midwest led the overall surge. Sales contracts rose 1.8 percent in April from a month earlier in the West, but fell 0.2 percent in the South.
The big boost likely reflects the impact of a new $8,000 tax credit for first-time homebuyers that was included in the economic stimulus bill signed by President Barack Obama in February. Since buyers need to finish their purchases by Nov. 30 to claim the credit, "we expect greater activity in the months ahead," Lawrence Yun, the Realtors' chief economist, said in a statement.
Still, Yun cautioned that the pending sales data is more volatile than in the past because many sellers need banks to agree to take less than the original mortgage - a so-called "short sale." That process is often difficult, time-consuming and can wind up falling apart before the deal closes.
The Federal Housing Administration last week released details of a plan in which borrowers who use FHA loans can get advances from lenders that let them effectively receive the credit in advance, so they don't have to wait to get the money from the Internal Revenue Service.
Completed home sales rose 2.9 percent to an annual rate of 4.68 million in April from a downwardly revised pace of 4.55 million in March, the Realtors' group said last week.
Sales of inexpensive foreclosures and other distressed low-end properties have even sparked bidding wars in places like Las Vegas, Phoenix and Miami. But the market for high-end properties remains at a virtual standstill.
The national median sales price in April plunged more than 15 percent to $170,200, from $201,300 in the same month last year. That was the second largest yearly price drop on record, according to the Realtors' group.
NOW IS THE TIME TO BUY REAL ESTATE!!!
Saturday, May 30, 2009
$8,000 TAX CREDIT FIRST TIME HOME BUYERS
Final score: $8,000 for homebuyers
First-time purchasers get a tax credit windfall if they buy before December
NOW IS THE TIME TO BUY!!!!
NEW YORK (CNNMoney.com) -- There's a nice windfall for some homebuyers in the economic stimulus bill awaiting President Obama's signature on Tuesday. First-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes.
A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount. But there has been a lot of confusion over this provision. Adam Billings of Knoxville, Tenn. wrote to CNNMoney.com asking:
"I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?"
The short answer? Yes, Billings would get back the $8,000 plus what he'd overpaid. The long answer? It depends. Here are three scenarios:
Scenario 1: Your final tax liability is normally $6,000. You've had taxes withheld from every paycheck and at the end of the year you've paid Uncle Sam $6,000. Since you've already paid him all you owe, you get the entire $8,000 tax credit as a refund check.
Scenario 2: Your final tax liability is $6,000, but you've overpaid by $1,000 through your payroll witholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.
Scenario 3: Your final tax liability is $6,000, but you've underpaid through your payroll witholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.
To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as "first time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.
Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)
Applying for the credit will be easy - or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.
Lukewarm reception
The housing industry is somewhat pleased with the result because the stimulus plan improves on the current $7,500 tax credit, which was passed in July and was more of a low-interest loan than an actual credit. But the industry was also disappointed that Congress did not go even further and adopt the Senate's proposal of a $15,000 non-refundable credit for all homebuyers.
"[The Senate version] would have done a lot more to turn around the housing market," said Bernard Markstein, an economist and director of forecasting for the National Association of Homebuilders (NAHB). "We have a lot of reports of people who would be coming off the fence because of it."
Even so, the $8,000 credit will bring an additional 300,000 new homebuyers into the market, according to estimates by Lawrence Yun, chief economist for the National Association of Realtors.
The credit could also create a domino effect, he said, because each first-time homebuyer sale will lead to two more trade-up transactions down the line. "I think there are many homeowners who would be trading-up but they have had no buyers for their own homes," Yun said.
Who won't benefit, according to Mark Goldman, a real estate lecturer at San Diego State University, are those first-time homebuyers struggling to come up with down payments. The credit does not help get them over that hurdle - they still have to close the sale before claiming the bonus.
One state, Missouri, is trying to get around that problem by creating a short-term loan on the tax credit of up to $6,750. The state would loan borrowers the money so they could use it at closing as part of the downpayment. Then, when the buyers receive their tax credit from the IRS, they pay back the state. Other states may follow with similar programs, according to NAHB's Dietz.
Many may look at the tax credit as a discount on the home price, according to Yun. A $100,000 purchase effectively becomes a $92,000 one. That can reassure buyers apprehensive about purchasing and then watching prices continue falling, he added.
And it provides a nice nest egg for the often-difficult early years of homeownership, when unexpected repairs and expenses often crop up. Recipients could also use the money to buy new stuff for their home - a lawnmower, a rug, a sofa - and, in that way, help stimulate the economy.
By Les Christie, CNNMoney.com staff writerLast Updated: February 17, 2009: 12:13 PM ET
First-time purchasers get a tax credit windfall if they buy before December
NOW IS THE TIME TO BUY!!!!
NEW YORK (CNNMoney.com) -- There's a nice windfall for some homebuyers in the economic stimulus bill awaiting President Obama's signature on Tuesday. First-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes.
A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount. But there has been a lot of confusion over this provision. Adam Billings of Knoxville, Tenn. wrote to CNNMoney.com asking:
"I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?"
The short answer? Yes, Billings would get back the $8,000 plus what he'd overpaid. The long answer? It depends. Here are three scenarios:
Scenario 1: Your final tax liability is normally $6,000. You've had taxes withheld from every paycheck and at the end of the year you've paid Uncle Sam $6,000. Since you've already paid him all you owe, you get the entire $8,000 tax credit as a refund check.
Scenario 2: Your final tax liability is $6,000, but you've overpaid by $1,000 through your payroll witholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.
Scenario 3: Your final tax liability is $6,000, but you've underpaid through your payroll witholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.
To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as "first time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.
Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)
Applying for the credit will be easy - or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.
Lukewarm reception
The housing industry is somewhat pleased with the result because the stimulus plan improves on the current $7,500 tax credit, which was passed in July and was more of a low-interest loan than an actual credit. But the industry was also disappointed that Congress did not go even further and adopt the Senate's proposal of a $15,000 non-refundable credit for all homebuyers.
"[The Senate version] would have done a lot more to turn around the housing market," said Bernard Markstein, an economist and director of forecasting for the National Association of Homebuilders (NAHB). "We have a lot of reports of people who would be coming off the fence because of it."
Even so, the $8,000 credit will bring an additional 300,000 new homebuyers into the market, according to estimates by Lawrence Yun, chief economist for the National Association of Realtors.
The credit could also create a domino effect, he said, because each first-time homebuyer sale will lead to two more trade-up transactions down the line. "I think there are many homeowners who would be trading-up but they have had no buyers for their own homes," Yun said.
Who won't benefit, according to Mark Goldman, a real estate lecturer at San Diego State University, are those first-time homebuyers struggling to come up with down payments. The credit does not help get them over that hurdle - they still have to close the sale before claiming the bonus.
One state, Missouri, is trying to get around that problem by creating a short-term loan on the tax credit of up to $6,750. The state would loan borrowers the money so they could use it at closing as part of the downpayment. Then, when the buyers receive their tax credit from the IRS, they pay back the state. Other states may follow with similar programs, according to NAHB's Dietz.
Many may look at the tax credit as a discount on the home price, according to Yun. A $100,000 purchase effectively becomes a $92,000 one. That can reassure buyers apprehensive about purchasing and then watching prices continue falling, he added.
And it provides a nice nest egg for the often-difficult early years of homeownership, when unexpected repairs and expenses often crop up. Recipients could also use the money to buy new stuff for their home - a lawnmower, a rug, a sofa - and, in that way, help stimulate the economy.
By Les Christie, CNNMoney.com staff writerLast Updated: February 17, 2009: 12:13 PM ET
Friday, May 8, 2009
TIPS TO SELLING Your home in a DOWN MARKET
Selling Your Home In A Down Market
by Glenn Curtis
In a declining real estate market where supply outstrips demand, a person can generally sell a house faster by lowering the price. But there are other ways to enhance a home's attractiveness besides lowering the asking price. If you're looking to sell your home in a cooling real estate market, read on for some tips on how to generate interest and get the best price possible.
Differentiate From the Neighbors In order to attract attention and to make your home more memorable, consider custom designs or additions, such as landscaping, high grade windows or an updated Timberline roof. This can help improve the home's aesthetics, while potentially adding value to the home. Any improvements should be practical and use colors and designs that would appeal to the widest audience. In addition, they should compliment the home and its other amenities, such as building a deck or patio adjacent to an outdoor swimming pool. However, while it can pay to spice up your home, don't over improve it. According to a 2006 article in Realtor Magazine, some renovations, such as adding a bathroom or a sun room, might not always pay. The data suggests that the nationwide average amount recouped for a bathroom addition is about 75%. For a sun room it's even less. If you're going to invest in renovations, do your research and be sure to put your money into the things that are likely to get you the best return. In addition, if you have added any custom features that you think buyers will be interested in, make sure they are included in the home's listing information. More than ever, in a down market you should take every small edge you can get. (For more insight, see Fix It And Flip It: The Value of Remodeling.)Clean the ClutterIt is imperative to remove all clutter from the home before showing it to potential buyers because buyers need to be able to picture themselves in the space. This might include removing some furniture to make rooms look bigger, and putting away family photographs and personal items. You may even want to hire a stager to help you make better use of the space. Staging costs can range from a couple of hundred dollars for a basic consultation to several thousand dollars, particularly if you rent modern, neutral furniture for showing your home. Many people feel that stagers can make a home more salable, so hiring one deserves some consideration. Sweeten the Deal Another way to make the home and deal more attractive to buyers is to offer things or terms that might sweeten the pot. For example, sellers that offer the buyer a couple of thousand dollars credit toward closing costs, or offer to pay closing costs entirely will in some cases receive more attention from house hunters looking at similar homes. In a down market, buyers are looking for a deal, so do your best to make them feel they're getting one.Another tip is to offer a transferable home warranty, which can cost $300 to $400 for a one-year policy and will cover a failure by appliances such as air conditioners and refrigerators. Depending on the policy, other appliances and house gadgets may be covered as well. A potential buyer may feel more at ease knowing that he or she will be covered against such problems, which could make your home more attractive than a competing home. Finally, it's important to note that some buyers are motivated by the option to close in a short amount of time. If it is possible for you to close on the home within 30 to 60 days, this may set your deal apart and get you a contract.Improve Curb AppealSellers often overlook the importance of their home's curb appeal. The first thing a buyer sees is a home's external appearance and the way it fits into the surrounding neighborhood. Try to make certain that the exterior has a fresh coat of paint, and that the bushes and lawn are well manicured. In real estate, appearances mean a lot. What better way to set your home apart than to make it attractive at first glance?Get Your Home in "Move In" ConditionAesthetics are important, but it's also important that doors, appliances, and electrical and plumbing fixtures be in compliance with current building codes and in working order. Again, the idea is to have the home in move in condition and to give potential buyers the impression that they will be able to move right in and start enjoying their new home, rather than spending time and money fixing it up.Pricing the HomeRegardless of how well you renovate and stage your home, it is still important to price the home appropriately. Consult ME, Claire Ackerman read the newspapers and go to online real estate sites, such as Realtor.com and I an pull comparable homes to let you know what they are going for in your area.It's not always imperative to be the lowest priced home on the block, particularly when aesthetic and other significant improvements have been made. However, it is important that the listing price is not out of line with other comparable homes in the market. Try to put yourself in the buyer's shoes and then determine what a fair price might be. Have friends, neighbors and real estate professionals tour the home and weigh in as well.Bottom LineSelling a home in a down market requires a little extra work. Do everything you can to get the home in excellent shape and be prepared to make some small concessions at closing. These tips, coupled with an attractive price, will increase the odds of getting your home sold.For more tips on selling your home, read Downsize Your Home To Downsize Expenses.
THERE ARE REAL SELLERS OUT THERE NOW A DAYS, NOT JUST BANK OWNED AND SHORT SALES!!!!!
I am only a phone call or email away so let me know
by Glenn Curtis
In a declining real estate market where supply outstrips demand, a person can generally sell a house faster by lowering the price. But there are other ways to enhance a home's attractiveness besides lowering the asking price. If you're looking to sell your home in a cooling real estate market, read on for some tips on how to generate interest and get the best price possible.
Differentiate From the Neighbors In order to attract attention and to make your home more memorable, consider custom designs or additions, such as landscaping, high grade windows or an updated Timberline roof. This can help improve the home's aesthetics, while potentially adding value to the home. Any improvements should be practical and use colors and designs that would appeal to the widest audience. In addition, they should compliment the home and its other amenities, such as building a deck or patio adjacent to an outdoor swimming pool. However, while it can pay to spice up your home, don't over improve it. According to a 2006 article in Realtor Magazine, some renovations, such as adding a bathroom or a sun room, might not always pay. The data suggests that the nationwide average amount recouped for a bathroom addition is about 75%. For a sun room it's even less. If you're going to invest in renovations, do your research and be sure to put your money into the things that are likely to get you the best return. In addition, if you have added any custom features that you think buyers will be interested in, make sure they are included in the home's listing information. More than ever, in a down market you should take every small edge you can get. (For more insight, see Fix It And Flip It: The Value of Remodeling.)Clean the ClutterIt is imperative to remove all clutter from the home before showing it to potential buyers because buyers need to be able to picture themselves in the space. This might include removing some furniture to make rooms look bigger, and putting away family photographs and personal items. You may even want to hire a stager to help you make better use of the space. Staging costs can range from a couple of hundred dollars for a basic consultation to several thousand dollars, particularly if you rent modern, neutral furniture for showing your home. Many people feel that stagers can make a home more salable, so hiring one deserves some consideration. Sweeten the Deal Another way to make the home and deal more attractive to buyers is to offer things or terms that might sweeten the pot. For example, sellers that offer the buyer a couple of thousand dollars credit toward closing costs, or offer to pay closing costs entirely will in some cases receive more attention from house hunters looking at similar homes. In a down market, buyers are looking for a deal, so do your best to make them feel they're getting one.Another tip is to offer a transferable home warranty, which can cost $300 to $400 for a one-year policy and will cover a failure by appliances such as air conditioners and refrigerators. Depending on the policy, other appliances and house gadgets may be covered as well. A potential buyer may feel more at ease knowing that he or she will be covered against such problems, which could make your home more attractive than a competing home. Finally, it's important to note that some buyers are motivated by the option to close in a short amount of time. If it is possible for you to close on the home within 30 to 60 days, this may set your deal apart and get you a contract.Improve Curb AppealSellers often overlook the importance of their home's curb appeal. The first thing a buyer sees is a home's external appearance and the way it fits into the surrounding neighborhood. Try to make certain that the exterior has a fresh coat of paint, and that the bushes and lawn are well manicured. In real estate, appearances mean a lot. What better way to set your home apart than to make it attractive at first glance?Get Your Home in "Move In" ConditionAesthetics are important, but it's also important that doors, appliances, and electrical and plumbing fixtures be in compliance with current building codes and in working order. Again, the idea is to have the home in move in condition and to give potential buyers the impression that they will be able to move right in and start enjoying their new home, rather than spending time and money fixing it up.Pricing the HomeRegardless of how well you renovate and stage your home, it is still important to price the home appropriately. Consult ME, Claire Ackerman read the newspapers and go to online real estate sites, such as Realtor.com and I an pull comparable homes to let you know what they are going for in your area.It's not always imperative to be the lowest priced home on the block, particularly when aesthetic and other significant improvements have been made. However, it is important that the listing price is not out of line with other comparable homes in the market. Try to put yourself in the buyer's shoes and then determine what a fair price might be. Have friends, neighbors and real estate professionals tour the home and weigh in as well.Bottom LineSelling a home in a down market requires a little extra work. Do everything you can to get the home in excellent shape and be prepared to make some small concessions at closing. These tips, coupled with an attractive price, will increase the odds of getting your home sold.For more tips on selling your home, read Downsize Your Home To Downsize Expenses.
THERE ARE REAL SELLERS OUT THERE NOW A DAYS, NOT JUST BANK OWNED AND SHORT SALES!!!!!
I am only a phone call or email away so let me know
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