Real Estate Recovery or Not?
2012 Predictions By the Pro’s Infographic

Data, data everywhere, but what should you believe?  Are we on, in the middle, or at the tail of a deflating real estate bubble?  Is there a Florida real estate bubble?

There is A LOT of conflicting data emerging about the 2012 real estate market and 2012 real estate transactions.  Case-Shiller has emerged as the leading index of real estate values.  The Q4 2011 S&P/Case-Shiller index (1) shows continuing declines in real estate values with quarter over quarter declines of 1.1-1.2% and annual declines of 3.0-3.4%.   RealtyTrac is the leading source of foreclosure data.   On January 12, 2012, RealtyTrac published (2) surprisingly good news showing a 33% decline in the number of homes in foreclosure from 2010 to 2011.   The National Association of Realtors (NAR) Chief Economist Lawrence is projecting a modest 4.7% increase in real estate transactions with a 2.0% increase in real estate values in 2012 vs. 2011.  But, on December 19, 2011, NAR was forced to re-state historical homes sold data (3) due to “upward drift” of their core homes sold benchmarks, which historically have been based on feeds from the multiple listing service (MLS).

So what should you believe?  Nearly all data on real estate transactions and real estate values is historical;  it does not forecast the future and may not reflect the situation in your local market.   Real estate is inherently local, so if the national real estate market is in decline or on the mend, what does that say about your local market?  Does a national real estate bubble portend a Florida real estate bubble? Or a bubble in Fort Myers, or Sanibel Island specifically.

The largest real estate social network ActiveRain Corp surveyed 1,835 real estate agents and real estate brokers in the US and Canada to understand if the real estate market and economy are poised for recovery in 2012, both nationwide and in local markets.

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A Bottom of the American Real Estate Market

American real estate agents expect the US real estate market to be largely flat from 2011 to 2012.  Real estate agents predict that real estate values will be flat from 2011 to 2012, signaling a bottom to the real estate market or the end of the real estate bubble.  Given historically low interest rates as well as a bottoming of real estate values, real estate agents expect that the number of real estate transactions and new construction starts will increase slightly in 2012.   Additionally, real estate agents believe local economies are on the mend and we will see improvements in the economy.

Rental Nation?

With low real estate values, low interest rates and a recovering economy, American real estate agents believe that 2012 is a great time to purchase both single family and multi-family rental properties.  Real estate agents feel that single family homes and luxury homes represent great investment opportunities.   What did real estate agents think are the worst opportunities in the 2012 real estate market?  Due to the glut of inventory in the real estate market due to short-sales and foreclosures, new construction condominiums, new construction single family homes, and land for construction were rated as the worst investment opportunities.

What’s the Problem?  The Banks, Stupid!

When polled about the biggest challenges facing the real estate market and economy, real estate agents rated bank related issues the highest.  The biggest challenges were:  1) short sales, 2) ability to finance a new home purchase / loan qualifications, and 3) foreclosures.  The significant shadow inventory caused by short sales and foreclosures continues to drag on real estate values.  Though interest rates are at historical lows, increased loan qualifications are preventing first time home buyers from purchasing homes and current home owners from trading up into new homes.

We would have expected unemployment to be a greater concern to real estate agent.s  Persistently high unemployment was ONLY the fourth concern to real estate agents, which was surprising given how the poor economy and lack of jobs has dominated the news headlines for the past 24 months.

Local Opportunities, Local Problems

From a local market perspective, the 2012 ActiveRain real estate survey shows markets where real estate agents are significantly more optimistic and others in which real estate agents are concerned about 2012.  Based on our survey data, the ActiveRain real estate network has created a real estate confidence index and ranked the top real estate markets. 

Below is a list of the TOP 10 and BOTTOM 10 real estate markets ranked by real estate agent confidence.

See real estate confidence in your local real estate market.

Key Trends in Top Markets

Low Cost of Living Markets Rule: Low interest rates and low cost of living have attracted buyers and relocations back into these markets.  Even though the general economy is not as robust as anyone would like, home buyers are adjusting lifestyles to find markets with low cost of living and reasonable housing prices.   Applicable markets: Ft. Myers, Austin, Boise, San Antonio, Denver, Dallas, Nashville, Houston, Salt Lake City

Invasion of the Snowbirds: Senior Housing & Second Homes:  Seniors and those planning for retirement have returned to the South.  Seniors are taking advantage of low priced housing inventory in the Sun Belt and low interest rates to buy a retirement home or a second home in a warmer climate.  Many of these buyers have saved for lifetime and 2012 represents a great opportunity to buy while prices and interest rates are low.   Seniors are targeting markets with low cost of living for retirement. Applicable Markets:  Ft Myers, Austin, San Antonio, Nashville, Miami, Salt Lake City

International Buyers:  International home buyers are taking advantage of a weak dollar and low real estate values.  Florida is the biggest beneficiary of international buyer interest.  Miami is reporting strong home purchase market based on International cash transactions.

Deep in the Heart of Texas: No other state has FOUR major cities listed as growth markets.  So what is going on in Texas?  Texas represents exactly what every home buyer should be looking for: low cost of living, low cost housing, and job growth.   Throw in no state income tax and Texas is looking a lot more appealing than California.  Texas is attracting many large corporations to set up headquarters and operations in the state.   This is especially true in Austin.  Finally Texas has a great mix of technology companies AND energy companies (oil & gas and renewable energy).  See below.  Applicable Markets: Austin, Dallas, San Antonio, Houston

Technology and Energy Industries: Even in the current down market, technology and energy are growth industries driving job creation.  Though most think of San Francisco, Boston, New York and Seattle when we think of technology.  Secondary markets participating in technology and energy job growth are likely good real estate markets in 2012, due to low cost of living and high demand for skilled jobs.   Markets: Austin, San Antonio, Denver, Dallas, Houston, Salt Lake City  

Investment Property: Low interest rates, low real estate values, and rising rents due to job growth is a great investment proposition.  A number of the lower cost of living and lower real estate value markets are reporting growth driven by investors coming into the market looking for deals.   Applicable Markets: Boise, Nashville, Salt Lake City, Austin, San Antonio

Key Trends in Poor Markets

High Cost of Living, High Real Estate Values: Though interest rates are historicly low, cities with expensive housing and high costs of living are suffering.  Tightened loan standards are preventing home buyers from entering the market.  Families are relocating to lower cost of living markets.  The high cities with high real estate values are also suffering the most from the shadow inventory of foreclosures and short sales.  Applicable markets: New York, Los Angeles, Chicago, San Diego


California: Californian cities benefited from the greatest price increases during the real estate bubble.  Simultaneously California has suffered the greatest in the downturn with the highest numbers of foreclosures and short sales in the country.  California is also facing a major budget deficit of $XBn leading to reductions in government services, increased class sizes and increased taxes. Applicable markets: Los Angeles, San Diego, Sacramento

High Shadow Inventory:  Large numbers of foreclosures and short sales continue to depress real estate prices in many markets.  It will take several more years for many markets to stabilize.  Buyers continue to wait on the sideline for conditions to improve.  Applicable markets: Reno, Sacramento, Chicago, Springfield, Los Angeles, Philadelphia

High Unemployment:  Persistently high unemployment without an economic catalyst is preventing home buyers from entering the market and locking sellers into their current homes.  Applicable markets: Philadelphia, Los Angeles, New York, Chicago, Sacramento, Reno

Reliance on the Finance Industry:  Downsizing in the banking industry combined with reduction in Wall Street bonuses has caused challenges in markets reliant on banking,   Wall Street layoffs and a lack luster stock market have affected the highest cost markets like NYC most directly.  Applicable markets: New York , Chicago, Los Angeles, Philadelphia

O Canada!

Unlike the United States, Canadian real estate agents are fairly optimistic about 2012.  Canadian real estate agents believe that all core metrics of the Canadian real estate market and economy will be increasing in 2012.  Real estate values, real estate transactions, new construction starts, and the local economy are project to increase slightly in 2012.  Canada continues to have a strong banking system, a strong dollar, and low unemployment.  Interest rates are low, spurring international investment in Canada..  Canadian confidence continues to be high.  Job growth is being driven by the energy industry in Canada.

Few problems are facing the Canadian real estate market or the Canadian economy.  Inflation and gas prices are the only problems that the Canadian economy seems to be facing.  Unlike the US real estate market, Canada any issues with short sales or foreclosures.

Canadian real estate agents feel like single family homes, investment properties for rental and condominiums all represent good investment opportunities, due to historically low interest rates.  Interestingly, Canadian real estate agents are slightly LESS optimistic about real estate as investment opportunity when compared to American real estate agents

ActiveRain Corp is the world's largest network of real estate professionals.  ActiveRain is a social network, blogging and training platform built for real estate professionals, including real estate agents, real estate brokers, lenders, mortgage brokers, title companies, home inspectors, architects, home stages, and contractors.  ActiveRain receives more than 2 million real estate visitors per month.   For more information, sign up for a FREE account on ActiveRain here.

Partners:

RealEstate.com: RealEstate.com is a one of the most recognized brands in real estate search.   Visit RealEstate.com to learn about neighborhoods and cities, view listings of homes for sale, find out about real estate values, and see the latest mortgage rates.  Visit RealEstate.com for more information.   

    

Market Leader: Market Leader serves over 100,000 real estate professionals like you with integrated websites, contact management, a marketing center, and lead generation services that generate a steady stream of prospects plus provides the systems and training you need to convert those prospects into clients.  Visit Market Leader for more information on real estate marketing and real estate software solutions.

    

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(1) Q4 2011 S&P/Case-Shiller index

(2) RealtyTrac 2011 Year End Foreclosure Report

(3) NAR Re-Benchmarking of Home Sales

 

 

I met a great couple in August of 2011 that needed to have their home sold as a short sale.  No problem.  We do them all the time.  We received approval from the bank to sell as a short sale.  I assessed the property, sent an employee in to clean and shampoo the carpets, I planted a sign and installed two lock-boxes.  We're on the edge of the Metro-D.C. area.  Some agents coming from the east don't have Supra lock-boxes, so I install two to make sure everyone can get in.

September went by with only moderate showings.  Early in October we dropped the price and bingo.  A great contract.  It's a short sale with two loans.  That meant getting the first to approve and then getting the second to accept the scraps offered to them from the first.  After 75 days of frustrating unanswered phone calls to J. P. Morgan Chase I wrote my "An open Letter to Jamie Dimon, CEO of J. P. Morgan Chase" blog. Two hours later, Chase called and approved the short sale.  Coincidence?  Maybe. 

They sent the paperwork to have the sellers sign off, and then they sent a series of forms explaining what Citi-Mortgage (who was great to deal with) received as a consultation prize.  One day later, they called  and left a message stating that if it didn't close within 6 days the approval was withdrawn and they would sell the house on the courthouse steps.  Those six days included a weekend.

On Friday, I was able to get all the players engaged so we can close on Tuesday.  On Friday, Chase called again and left another message stating that if we didn't close by the close of business on Tuesday they were selling the property on the courthouse steps first thing Wednesday morning.  By this time, they have so frustrated all the players that attorneys in two different parts of the state, sellers and buyers in two different counties and me in another part of the state all agreed to cross the finish line at the last minute.  Just in time is time enough.

So Chase, we will close on time, and we will get these kids off your hook, and we will allow them to get on with their lives and thank God we will be done with you (for a season).  The payoff for my company and the attorneys is not huge, but being able to stick our finger in the eye of J. P. Morgan Chase, priceless. 

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Give me a call for all your real estate needs, and let's make something amazing happen. 

Mike Cooper @ Cornerstone Business Group, Inc., 888-722-6029

Real Estate Sales and Property Management

 

(Disclaimer:  All grammatical mistakes, punctuation breakdowns and misspellings are purely for your amusement and entertainment.  Feel free to cackle.)

Sellers, Do You Wish You Could Read A Buyer's Mind?

Well, now you can! After many months of interviewing buyers, this post will provide some insight into what buyers are really thinking when they go into your home! I have gathered the input from a focus group of buyers who have asked to remain anonymous.

Nina: What is the most surprising thing you see when you look at a house for sale?

Buyer 1: Sometimes I have to remind myself that I came to an open house and not a yard sale. There's so much stuff on every surface!

Nina: What about just picturing how your own furniture would look in the rooms?

Buyer 2: It's hard for me to picture my furniture in the dining room when there's a bird cage in the corner, a treadmill, a loveseat and mounds of clothes in there.

Nina: We know that kitchens and bathrooms get the most attention from buyers. What are the kitchens and bathrooms like that you are seeing?

Buyer 3: I don't mind when a seller hasn't put in granite or stainless steel appliances. I can change that. What bothers me is when they've priced their house as if they had.

Buyer 4: I agree. Even if the house is kept clean, a 30 year old bathroom vanity is outdated, as are the big lightbulbs surrounding the mirror. It makes the bathroom look like I'm backstage in a Broadway dressing room.

Buyer 2: I think it comes back to price. I realize that most sellers feel connected to their homes. They've hosted birthday celebrations and anniversaries and holidays. They spent money over the years to decorate the house to their taste. Why don't they understand that I'm not going to pay for what is now out-of-date decor. 

Buyer 1: That's another thing. Some of these sellers don't seem to have spent any money taking care of their homes.

Buyer 3: You're right! Don't they know you're supposed to have your chimney cleaned and checked if you use it? Or your heating and a/c serviced yearly? I do that in my house.

Buyer 4: I saw one house where the seller had the basement flooded because the water tank let go suddenly. It was years past its life expectancy. The seller ended up having to rip up carpeting, repair walls...just because they left replacing the tank for too long.

Buyer 1: We made an offer on a house and ended up walking away after the home inspection. The home inspector found a ton of mold in the attic because the bathrooms vented into the attic instead of outside. We didn't want to take care of that problem, and neither did the seller.

Nina: So, you're seeing houses that have had neglected maintenance, bathrooms and kitchens that need updating and too much clutter. And, given these things, the houses are priced too high. Is there any advice you'd give to a seller if you could?

Buyer 2: If you're really serious about selling your house, it doesn't make sense to price it too high. Buyers know when your house is priced higher than other houses like yours that have sold.

Buyer 1: Your house is just going to sit on the market, and you're either going to have to keep dropping the price, or let it sit. What's the point?

Buyer 3: Find a Realtor® you can count on for good advice for everything from pricing to marketing. If your Realtor doesn't blog about your listing it's not going to get found.

Buyer 1: Oh, and take a look at the photos of your house online. I can't believe the way some of the photos look so blurry or of cluttered rooms. Do I really want to see a photo of your toilet? We've chosen not to see some houses because of how the photos look online. You need another Realtor® if that's how yours is marketing your home.

Nina: Ok, well thank you all for your feedback. I'm sure sellers whose homes haven't sold will be especially appreciative of your comments. I wish you all the best in finding a new home for yourselves.

Buyer 4: I think I can speak for all of us when I say we're ready to buy. We're just trying to find homes that don't need $100,000 worth of maintenance repairs and are priced right.

Nina: Sellers, if you have any questions about today's interview, please call me at 781-253-3385. Let's set up a time for a free market analysis. I will be happy to price and market your home for sale.

 

 

 

 

 

   

 

  If you enjoy what you are reading   to my blog! Please add your comments and questions about the real estate market or the blog posts! Thank you

 

 

  

 

Canton Real Estate New & Info.                  Sharon Real Estate News & Info.

In one of my recent blogs (http://activerain.com/blogsview/2193545/do-real-estate-salespeople-make-tons-of-money-), I debunked the myth that real estate professionals are millionaires.  However, salespeople are paid a commission to do whatever it is they do.  Both sellers and buyers often want to buy or sell a home themselves; why do they need an agent?

Sellers wonder what salespeople could possibly do that's worth paying for; after all, don't agents just throw the property in MLS and then unlock the doors so buyers can take a look?    

And buyers sometimes assume if they just go to enough open houses, they'll find the home they want, place an offer, get a mortage and move in.  Nothing else is required, is it?

I'm going to focus today on the buyer side of the equation only.   What specifically does an agent for the buyer actually do to earn their share of commission?  Obviously, a buyer agent supports the buyer (you) and represents your interests; they maintain confidences, and provide loyalty and care. How hard could that be?  Is this really more meaningful than making arrangements to open a door of a vacant home?   The answer is Yes!!!

Understanding your true needs:  First, any good buyer agent will need to find out exactly what you want, not just at a high level, such as your need for a 3 bedroom/2 bath condo for $500K.  But a buyer agent will want to know, when you close your eyes and picture yourself in your new home, what is the vision in your head? 

• Do you want a sunny spot for a garden? 
• Do you want a back yard, and should it be fenced?
• Do you need space for visiting in-laws, and do you want that space right near your room, or far away in the basement?
• Are you a chef who requires a world-class kitchen or would a small efficiency kitchen work fine? 
• Are you in a rush to purchase because you want to be in your home before the kids start school in September, or are you willing to take your time to find the "perfect" house?
• How much are you pre-qualified for?  If you're not pre-qualified, do you have an expert that can help, or do you need one? 
• Regardless of your pre-qualification status, how much are you really comfortable spending, since that may be a different amount.  
• Do you want a fireplace?  A pool? 
• Do you have a limit to what you wish to pay in taxes, utilities, and other charges? 

The list goes on.  It's our job to figure out exactly what would make you happy.

Finding and viewing potential matches:  Sure, you could do a realtor.com, trulia.com or zillow.com lookup by yourself.  But agents have access to a lot of information such as history of the home - has it been for sale before?  Has the price recently been reduced or increased?  What are the actual taxes?  Are there any developments or building issues going on in the location you wish to move to?  We'll work to select only those properties that are worth your time to view, and then we'll call and schedule and cancel and reschedule the appointments as necessary.  We'll also preview the properties ourselves to make sure they're going to meet your needs.  And then of course we'll take you to see them.  We'll explain the particular benefits, and the potential downfalls for each home.  We'll listen to your likes and dislikes so we can better target future showings.  And then we'll repeat the process as often as possible until we find the right home for you.

Validating the information:  If you're looking at a co-op or condo, we'll verify the fees with the management company.  What is the fee for maintenance?  Does that include taxes?  What % of that fee is tax deductible?  Is there a parking fee?  Are there assessments?  If yes, when do they start and end, and how much are they?  When was the last one?   If you're looking at a single family home, we'll validate all information.  What are the town/state and village taxes?   We'll verify the square feet with the town records.  Any data points that we have will be validated and clarified if necessary.

Putting in an offer:   We'll make sure you have all the data you need to come up with a great offering price.  We'll gather comparables so you'll know what similar homes recently sold for.  We'll fill out the necessary paperwork, contact the seller's agent to make sure there haven't been any last minute changes, and we'll submit the offer.  And then we'll negotiate on your behalf.  We'll let you know what contigencies you should consider, and will ensure your offer includes them.

Completing the purchasing process:  Once we have an accepted offer, we'll do all the work required to make the rest of your buying process simple.  If you don't have your own, we'll provide you with names of expert real estate lawyers, home inspectors, mortgage brokers, and anyone else you need to finalize your transaction.   We'll obtain all documentation from the management company if you're buying a co-op, and we'll walk you through all the documentation requirements.  We'll ensure appraisers have access to the home, we'll do whatever we can to ensure contracts are completed expeditiously and we'll hold your hand until you're at the closing table and have signed your documents.

In a nutshell, buying a home can be incredibly complicated.  The buyer's agent job is to make a potentially very difficult process extremely simple and to make sure your dream home doesn't escape from your grasp. 

Kathleen Moriarty

914-419-0270 (cell)

www.kathleenmoriarty.com

 

It Is Up To You, Mr. Seller

So, Mr. Seller, you’ve made a decision that you want to sell your home. Scratch that. You’ve decided that you need to sell your home.

 

That’s great. You start looking at what other homes in your neighborhood are selling for. You research market statistics on homes that have sold. You peruse some websites that allow you to obtain a market analysis of your home. You go to Zillow to get some more information about the prices of similar homes in your area. You read the local newspaper, looking for tips on how to sell your home.

 

You’ve been gathering information for some time now, and you are weighing your options – do I use a realtor, or do I try to sell my home on my own? You evaluate all of the pros and cons of each avenue and you ultimately decide against selling it on your own and you decide to reach out to a few realtors – those whose sites you used to get a free evaluation from, and one who was recommended to you by a co-worker who recently sold his own home.

 

After speaking with all of the agents and listening to their presentations, you’ve settled on one agent. You just…clicked. He explained to you in detail his marketing strategy, established how he would communicate with you during the process, and provided his rather extensive resume of closed transactions over the last several years.

 

So you ask the usual questions as you prepare to sign the listing agreement:

• At what price should I list my home?
• How long do you think it will take for the home to sell?
• What should I do to make the home more appealing to buyers?
• Will the house actually sell in this market?

 

My response to those questions? It is up to you, Mr. Seller.

 

The whole process of selling your home is dependent first and foremost on the attitude that you bring to the table. You established that you wanted and needed to sell your home, so your actions should be consistent with that motivation.

 

But you’re the Realtor. You’re the professional, so you should know the answers to my questions.

 

That is true, I am the professional. But consider this:

·         I performed a comparative market analysis of your home and came up with a suggested listing price range of $150,000-$160,000. Did you concur with my professional opinion supported by the market statistics, or did you insist that you needed $195,000 in order to place your home on the market?

·         I toured the home prior to our listing appointment and took some pictures. I made several suggestions that would improve the curb appeal of your home, and even provided you a list of vendors who could perform the needed repairs at a minimal cost to you, if you were unable to complete the repairs yourself. Did you follow through with my suggestions, or did you refuse to even trim the hedges and mow the lawn, let alone make any repairs?

·         I suggested de-cluttering several rooms and making some minor rearrangements of furniture so that buyers could visualize the amount of space available. Did you take my advice, or ignore it altogether?

·         I informed you that the majority of buyers would be uncomfortable touring a home with either one of us present, and that your schedule needed to be flexible in order to accommodate potential buyers who want to see your home. Did you make arrangements to vacate the premises during a showing, or did you insist on being present to meet each buyer, as well as unreasonably limiting the times in which your home could be shown?

 

Sellers, if you are serious about selling your home, only you, based on the actions that you take, can determine whether your home sells or not. Your actions during the selling process must be consistent with your need to sell or your want to sell, and especially if you both need and want to sell your home.

 

In the final analysis, Mr. Seller, whether your home sells or not is entirely up to you.

                                                                 

 

 

 

 

Courtesy of William James Walton, Sr. , Realtor, Century21 Access America

Serving northern New Haven and southeastern Litchfield Counties (Waterbury, Wolcott, Prospect, Naugatuck, Middlebury, Southbury, Watertown, Thomaston and Plymouth)

 

Call William James Walton, Sr. Real Estate Agent with Century21Access America (203) 558-7463 for help with your real estate needs -buying or selling -  in Waterbury, Watertown, Wolcott, Middlebury, Southbury, Prospect, Naugatuck, Plymouth and Thomaston

Buyers - Search for Greater Waterbury, CT Area Homes For Sale

Sellers - Request a Free Home Evaluation, Look at Recent Home Sales

IRRESISTIBLE FORCES ARE MEETING IMMOVABLE OBJECTS!. . . .  WE ARE TRULY LIVING IN A PARALLEL UNIVERSE WITH SELLERS ON ONE SIDE OF THE CURVE AND BUYERS ON THE OTHER!  Can they come together and form "WHITE MATTER".  Or, will be all be drawn into that BLACK HOLE of negativity. 

Why, what do you mean, Lenn??? 

What "irresistible forces"?  What "immovable objects?"

NO. 1 IRRESTIBLE FORCE:   SELLERS' LENDERS WHICH, AFTER 3 YEARS OF SERIOUS and UBIQUITOUS SHORT SALE ACTIVITY, THERE ARE:

• No Short Sale Guidelines for the lending industry.
• No lenders with established published Short Sale processing procedures.
• No conformity of qualifications for Owner acceptance for Short Sale.

THE IMMOVABLE OBJECT?  THE LENDER and THE INTRACTABILITY OF SHORT SALE PROCESSING by sellers' lenders who follow no logical or timely attempts to get to the closing table.   Oh sure, we read "bragging rights" advertising and blogs (advertising) by listing agent describing "closed in 19 days" or "processed in 45 days".  Yet, the preponderance of short sales that the Buyers' Brokers in my network close have been taking an average of about 135 days.   That's not fiction.  That's fact established by tracking the "contract to close" period for 12 months - 73 short sale transactions by 11 experienced Realtors.  

NO. 2 IRRESISTIBLE FORCE:  PROSPECTIVE HOME BUYERS WHO BELIEVE THAT ALL SELLERS ARE DESPERATE TO SELL AND WILL ACCEPT OR NEGOTIATE ANY LOW OFFER INCLUDING:

• Bank owned properties that are discounted to about 90% of local market.
• Short Sale listings with 8 DOM that are discounted to about 90-95% of local market.
• Non-foreclosure or non-short sale listings that are priced to sell at the low end of local market.
• Fixer-upper listings that are discounted to 25% below market.  THE IMMOVABLE OBJECT?  THE INTRACTABILITY OF

BUYERS WHO BELIEVE THE NEWS REPORTS THAT ALL OWNERS ARE DESPERATE TO SELL AND ANY OFFER IS REASONABLE.  One of the results of the frequency of low offers is that sellers are pricing unrealistically high to counter the low offers that they expect from unrealistic buyers.  The belief that buyers can "pick up" real estate at prices well below the local market may be inspired by Realtor advertising touting their "negotiating skills" which often amount to little more than writing low offers.  Without good research into the individual property listings with consideration of recent closed sales, general condition, local attractions, shopping, schools, transportation alternatives, etc., simply writing low offers doesn't take an experienced real estate buyer's agent.  Such superficial representation can be performed by any licensee.

NO 3 IRRESISTIBLE FORCE:  HOME OWNER SELLERS WHO BELIEVE THAT THEY CAN DICTATE THE CONDITIONS FOR THE SALE OF THEIR HOME.

• Sellers who eschew agent prepared CMAs and price their property based on how much they want to clear.
• Price their home based on the price for which a home in the neighborhood sold 11 months ago.
• Owners who refuse to address deferred maintenance items prior to listing.
• Owners who ignore agent provided sold pricing trends and expect the market to always go up.
• Owners who believe that "as is" means that a buyer must accept the property "as is".

THE IMMOVABLE OBJECT?  THE PROPERTY.  A piece of land with or without an improvement that has no heart or brain.  A property that listens to no one.  A house that refuses to morph into what the seller wants to believe he is selling and refuses to be reduced to the image of what the buyer believes is it's value. 

THE REAL ESTATE INDUSTRY IS ON THE PRECIPICE OF DRAMATIC CHANGE.  Much has already changed in the past 3-4 years. 

• Home values have plummeted across the country.
• Foreclosures and Short Sales dominate many local real estate markets.
• Mortgage loan qualifications have become dramatically more difficult.
• Negative equity has stripped many home owners of their financial security.
• Loss of credit limits the ability of buyers and sellers to buy and sell real estate.
• Unemployment excludes many from the real estate market for some time.
• The high percentage of First Time Home Buyers with marginal credit and no cash reserves. 

IS THERE ANY GOOD NEWS??  Of course there is.  There always is:

• Home buyers have many new and late model homes on the market from which to select their dream home.
• Home prices should, in time, show positive equity for today's buyers.
• Mortgage payments are low when compared to past values.
• Interest rates are low which should benefit owners for many years to come.
• New homes have been reduced in priced to about 3/4 of the 2006 price range. 

IS THIS A GOOD TIME TO BUY A HOME?  Clearly, if a person is financially able and motivated towards home ownership, this is an a good time to buy a home.

IS THIS A GOOD TIME TO SELL A HOME?  If an owner is realistic about the local market values and has sufficient equity or assets to close.  Other than need, it's not a good time to sell.  However, the picture doesn't appear to be changing any time soon.

IS THIS A GOOD TIME TO JOIN THE REAL ESTATE INDUSTRY AS AN AGENT?  Only if a person has sufficient savings and/or income from other sources to be able to finance a real estate practice start-up and pay living expenses for probably a year or more.  It may take that long to build an income stream from real estate sales.  Many home buyers believe that they can do the job themselves with the help of the Internet.  Many agents don't understand Internet advertising. 

DON'T FORGET TO REBLOG!  THANKS.

Courtesy, Lenn Harley, Broker, Homefinders.com,  800-711-7988.

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WHAT IS A REVERSE MORTGAGE????

A reverse mortgage enables the borrower to withdraw a portion of their home's equity, use it any way that they want, make no form of monthly repayment, stay in their home as long as they like and when they are ready to sell the home or have passed away, the loan is repaid.  This program is insured by the Federal Government. The borrower does not forfeit title to the home or lose any other rights as the homeowner. The borrower or the borrower's heirs decide when or if the home is to be sold and after repaying the loan balance, all remaining equity in the home belongs to the borrower or the borrower's heirs.

QUALIFYING FOR A REVERSE MORTGAGE!!!!

Qualifying for a reverse mortgage simply requires that the homeowner(s) be 62 years of age or older, own or be purchasing a home that is considered their primary residence, and the home must meet standard appraisal guidelines for property type, value and condition. Since the borrower does not make a monthly payment, factors such as credit rating, income and assets are not considered.

Recently we had a widow who was left penniless and with a big mortgage on her home when her husband died. Her Social Security check was just enough to cover the monthly debt. For the last year she had taken babysitting jobs and odd jobs to make ends meet. She had also been living on food stamps and the charity of others to help her out. When she spoke with one of our Account Executives, she was behind on her taxes and had not been able to renew her insurance. Her credit was ruined by the medical bills from her husband's sudden death. The reverse mortgage paid off her home mortgage and provided her with a small amount of extra cash. Her Taxes and Insurance were caught up and her social security payment now goes to provide food and pay her bills. Her Reverse Mortgage made it possible for her to now afford to live in her home.

ARE REVERSE MORTGAGES SAFE FOR THE HOMEOWNER?

In 1988 HUD adopted reverse mortgages and with the assistance of Congress, enacted laws that put into place 12 safeguards that guarantee a senior will not give up title to their home and will not put themselves, their home or their family in any financial risk. Paying off a traditional mortgage with a reverse mortgage secures the home and eliminates any possible risk of foreclosure due to an inability to make a monthly mortgage payment.

FOR EXAMPLE!!!!!!

"When I received notice that due to an escrow shortage and an increase in my property taxes my house payment was increasing $200 per month, I felt I had no option but to sell my home.  When I discovered that using a reverse mortgage I could keep my home, have no mortgage payments, and receive monthly income, I couldn't believe it. My only regret is that it took until I was 78 to start enjoying my retirement." WT - Littleton, CO

HOW MUCH EQUITY IS USED AND HOW DOES A BORROWER TAKE THEIR MONEY?

HUD provides authorized lenders with a Reverse Mortgage Calculator that determines the Amount of equity available to a homeowner. The determining factors are the borrower's age, the home's value and the current interest rate. From this calculation, fees are deducted and any existing mortgage balances are paid in full. The amount that remains is available to the homeowner to draw as a lump sum, treat as a line of credit, receive as lifetime monthly tax-free income, or any combination of these three options. Regardless of how the borrower chooses to draw their funds, they will make no monthly payment. Interest accrues only against the funds they draw, and all remaining equity belongs to the borrower or their heirs.

 

Larry Bettag - Regional Vice President, Midwest Region

Illinois FHA Specialist

630-417-7172

  

               

An Illinois Residential Mortgage Licensee

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