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3300 Chambers Road
Suite 5233, Arnot Mall
Horseheads, NY 14845
(607) 739-4000 Office
Email: cbhorizonsh@stny.rr.com
40 West Market Street
Corning NY 14830
(607) 936-2844 Office
Email: cbhorizonsc@stny.rr.com
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| Time is running out
Planning on using the up-to $8000 first home buyer credit? Let me help you think through the timing – because I’m worrying about the last minute log jam that may occur!
A really general rule of thumb is that it takes about 2 months from the time you have your purchase offer accepted to the time it closes. I’ve seen this happen as quickly as 3-4 weeks and I’ve seen it take longer. How busy banks are has a lot to do with it. How busy structural inspectors are does as well. And it gets right down to the schedules of attorneys, as it takes two or occasionally three, to close… and surveyors, water testers, etc. all have to be available too. In other words, muc of the timing is out of your control (and definitely out of ours) after the offer is made and accepted.
Let’s say that you wait until October 1st to buy a home, using this 60 day time frame. I suppose the first thing that could go wrong is that the sellers won’t accept your offer or that you are in a multiple offer situation and have to find another home that suits you. Tick tock. If the offer does get accepted, the next thing you’d probably do is have the structural done. What if there are issues that you and the seller can’t agree on and you don’t buy this house and have to start all over? Tick tock. If this deal does remain in force, you’ll be applying at the bank and will be in the pipeline with a lot of other people who have waited till nearly the last minute. The bank staff can only work so many hours in a day. Appraisers – I forgot to mention that we have a shortage of appraisers, and they can only perform so many appraisals in a day. After application and processing, the loan goes to underwriting. Tick tock. After the mortgage commitment is in, the attorney orders the abstract to be updated. Occasionally there are issues that need to be solved – boundary line agreements, death certificates that weren’t filed, that sort of thing. Tick tock. Water tests have to be run and there are only 2 or 3 vendors in our area who do this. Same for septic pumpers and testers. Tick tock. And now, with everything else in place, the lawyers’ offices have to schedule. This requires a final ok from the banks, who will now be in overdrive trying to process loans quickly, and mutual time between attorneys to close the deal. I would NOT wait till the last minute this year, because this is $8000 we’re talking about here.
Plan ahead – look now! Time really is running out – this is July this week! Call us today to get started.
Full disclosure
This is a different kind of disclosure we’re talking about today. Since we just ended a segment on the $8000, it wouldn’t be fair to not mention that there is another incentive in the works. The problem is – WHO KNOWS if it will come through or not? Right now there are 3 different bills in front of Congress to enact a $15,000, yes $15,000, credit. This one would be different in that it would not apply just to first home buyers and it would not have income caps as the current program does. It would still be UP TO 10% of the purchase price of the home and would expire, presumably, a year after it is enacted. So the question is, are you a gambler? If you wait, you may see a better credit. But if you wait, you may see no credit at all. And if you wait too long, you may not get your loan closed in time for what we already know is out there. But we thought you should know!
Are you a gambler?
Well, not only does this apply to the above topic, but it’s a favorite for us when we’re talking to sellers who have an offer on the table. There just is no crystal ball for us to use when helping a seller look at offers. Sometimes, buyers just “have” to come in low, and when there is a counter that is more in line with market values, the buyers accept that they aren’t stealing that house and they come up. Sometimes they don’t. Sometimes buyers make very reasonable offers, but if it’s too soon after the house goes on the market, it’s tempting to think that time will bring even better offers, and that is not always the case. Often, we tell sellers that the first offer is the best offer – that the buyers who are looking now have considered all that is out there, any maybe even lost out on a house or too, so often make the best offers. When a seller wants to turn down an offer that is within the range of value that the market analysis has indicated, we often use the gambling analogy. In effect, they have just “won,” the amount on the table. By countering, which allows a buyer to walk away if they choose, it’s like putting that money back on the roulette wheel in the hopes of winning usually a few thousand more. It’s a gamble. What usually determines things like this is the motivation of the seller or buyer – how badly they need to sell or buy, how comfortable they are being on the market (or looking for homes) and that sort of thing. As agents, we advise our clients as to alternatives and help them think through the consequences, but we don’t make the decisions for them. Your agent’s skill in negotiating is a very important aspect of their competence and their ability to represent you.
Best Buy or Best House?
Does it bother you to think of paying full price for a house? This is a hard concept in real estate, but let me elaborate. Asking prices on houses aren't a pin-the-tail-on-the-donkey kind of thing - that is, there is no exact price for real estate. Based on recent sales and on the supply and demand at the time that a house goes on the market, there usually is a sensible RANGE of value - one in which buyers will recognize a fair value and which banks will be able to support value on when the appraisal is done. Based on seller motivation, an asking price is established, usually within or just above that range. HOWEVER, and it's a BIG HOWEVER, sometimes sellers will set an unrealistically high asking price based on such things as "we NEED it" (to pay off the mortgage and perhaps a second mortgage, to get money out that was put in, to move to a higher priced area, and so on and so forth, with issues that don't really impress a buyer. This requires an agent to TAKE the listing at that price, and many will - in hopes that a buyer will pay it or that the seller will be convinced to reduce the price. So back to the title - there may be times that the best HOUSE is also extremely well priced and in order to get it, you'll pay full price - and occasionally, even OVER the ask price. On other occasions, you might get several thousand dollars off the asking price (because the seller needs to sell, the agent convinces them the price is right or the like) but it isn't really a great deal - even thought it's way off the ask price, it's just the right price. The best house for you may NOT be one that you can get for a bargain - so in markets like ours (fewer homes than buyers), you may have to decide whether you want the best house or the best buy.
The Perfect House
Many years ago, we learned to help prepare buyers for the fact that there IS no perfect house. Even those who build brand new homes often wish they'd made a different decision here and there - so we like to say that if you find a house in the location that is right for you, with a floor plan that works for you, and that is structurally sound - THAT is the perfect house. The idea that all colors would work for you is asking a little much - and those cosmetic things can be changed over time. The structurally sound part needs a little more detail though. Structural inspections are a fairly recent phenomenon in real estate sales. When I personally bought, most recent about 25 years ago (I know - people like me are bad for business :-) ) we didn't do structurals. And at first, structurals were just what they sound like - a look at the structure, to make sure that the house wasn't going to slide down a hill, fall in on itself, have the roof cave in, etc. Then structurals began to include mechanicals - plumbing, heating, electrical... and the idea was to make sure that there weren't unsafe features - furnaces leaking carbon monoxide, dangerous electrical features, etc. Now, frankly, I don't know how a house EVER passes the standards we're looking at now - if we applied the same thing to prospective marriage partners (PERFECTION), marriage would be a thing of the past! Buyers have gone beyond expecting defects to be fixed - now they often ask for NEW things even when they knew they were buying (and paying for) OLD things - furnaces and the like. Tree roots, sidewalks with bumps ?, and lots and lots of things that are really meant for future preventative maintenance vs defects... you name it, we've seen it, and we constantly see transactions fall apart because buyer and seller can't come to agreements on "structural" issues. Our advice? Of course, get a structural. But add in some reason - and keep in mind the litmus test of reason - would YOU do this for someone buying YOUR home? Remember, there IS no perfect house!
More on multiple offers
We got a call the other day from someone who was in a multiple offer situation with another company and wanted to check out some facts. And we recently had a local attorney who was interested in the changes in the Realtor Code of Ethics that took place a few years ago. One of the most misunderstood experiences in real estate and one that causes a lot of frustration IS the multiple offer situation. Some reminders: first doesn't mean anything. A seller decides whether or not to tell other prospective buyers (through their agents) that they have another offer. Sellers can accept, reject or counter offers, and if they receive multiple offers, they can work with any one of them - there is no requirement to go back to all with a "highest and best offer" response. Even if you are in negotiations with a seller, if another offer comes in and they like the terms better, they are free to accept it without giving you "a last chance." (There are some more specifics on this based on whether or not you or the seller made the last counter of course.) We share the NAR policies with our buyers and sellers, and we developed a form to have sellers sign to show that an offer was presented to them, to help buyers who don't "get the house" and who sometimes wonder if their offer was even presented. The whole multiple offer thing is VERY tricky and we have spent a lot of time in our company making sure that our agents really understand this. It doesn't guarantee buyers (ours, or buyers of our listings) are always HAPPY, but it does guarantee that they were treated as our Code of Ethics requires. I am happy to answer any specific questions on this subject - call me at either office, or e-me
at cbhorizonsc@stny.rr.com
Local Market Stats
First: hurray – we’re BAAACK to almost-normal! In the month of May, there were 113 and in April, 123 pendings in the areas that we continuously track; these figures are slightly off of last year’s: 119 in May of 08 and 137 in April of 08. But they are FAR better than March (105), Feb (65), Jan (65), Dec (56), November (45) and Oct (89) pending figures. To us, this represents a fair rise in consumer confidence as well as the fact that we are less impacted by all of the factors influencing housing and employment in other areas.
Our overall supply remains low: 538 homes on the market in Corning-Painted Post, Addison, Campbell, Elmira, Elmira Heights and Horseheads school districts. That’s about half of the inventory that we carried for many, many years. This causes there to be great interest as new listings come on the market, and buyers recognize a good value when they see it - thus, we have many multiple offer situations.
Financing issues have started to surprise us; we’ve been hearing about the difficulty in getting loans in other areas, and lately, we’ve had all sorts of appraisal and financing issues stalling our transactions as well. Buyers must have very good credit, some money of their own, steady employment – the “normal” basics of old, but all sorts of little known technicalities or changes in mortgage monies are cropping up, often at the last moment, and it’s complicating or stopping transactions close to closing. The pendulum often swings too far in response to problems like the mortgage industry has suffered, and we’re seeing more and more of that.
All in all, we remain very happy with our local market, recognizing that many areas have too many homes on the market, severe unemployment problems that keep demand low, and falling home prices as a result. We have escaped this predicament, and while our market is small, it is stable.
Learning every day
One thing real estate is NOT is BORING! This is a profession of constant learning, because things in our business change constantly. This week, we discussed such things as: water supply. Did you know that shared wells are perfectly OK for any bank financing as long as there's an agreement in the deed? HOWEVER if the loan is FHA, they require a FOUR HOUR flow test. Ohmygoodness! What a waste of water, AND possibility of trouble and running the well dry, not to mention that it is not at all how water is used by residents of a home - oh well, that's the rule! Also, private wells do not have to meet the rigorous standards of municipal wells, BUT if you do any testing, results have to be disclosed. On another note, and tied into the comments in the market stat section above... if a bank appraiser comments that house condition is fair or poor, at least one local bank will not finance it. So an older home with great bones, priced to reflect that, and being purchased by someone with enough money to make those required improvements, is impossible to sell in the traditional, conventional loan requirement. Makes it hard to keep our housing inventory moving! Interest rates - more learning - you may have heard that they are moving up. We don't get any advance notice on this, so if your affordability is greatly affected by the rate, don't sit on that fence - make a move. If you are also using the $8000 first home buyer credit, remember that you must close by November 30 and we expect there to be a "traffic jam" at the end of that month with banks and attorneys scrambling to get things done. Don't wait till the last minute - an unknown boundary line agreement or structural issue could keep you from being able to take advantage of this amazing offer! There's LOTS more, of course, that we learned in the course of the week - come back and read some more next week!
A new way to learn about houses
Do you know that more texts are sent from cellphones than CALLS made? It's a sign of the times, I guess. And now, on some of our signs, you can text a code and get not only the basic info on the house, but an actual picture slide show of the interior as well! It's pretty cool! Our agent, Dan Mower, did a lot of investigation into the 7 or 8 companies offering this type of service, and decided that this was the most user friendly. So watch for the signs with text-to-cell codes and give it a try. Want to try one now? In the TO field of your text message, put in 44133. For text, type in this number: 14152. The first text will give you the basics and in a minute, a second text will tell you that you can see interiors by sending the word TOUR back as a reply. (If you have a smart phone, there is also a link you can click on.) Just another way to get consumers what they want - info, quickly and easily!
Changes in the $8000 first home buyer tax credit!
HUD Secretary Announces Monetization of Tax Credit at NAR Real Estate Summit
WASHINGTON, May 12, 2009
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the
Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a down payment.
Donovan’s remarks came in an address to several thousand Realtors® gathered this morning at The Real Estate Summit: Advancing the U.S. Economy, a special daylong session at the Realtors® Midyear Legislative Meetings & Trade Expo here.
Secretary Donovan said that important changes, which the National Association of Realtors® has been calling for, will help consumers purchase a home. “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan said. According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
I haven't had a chance to check with our local lenders who offer FHA, so call first, but this could definitely open up the market to a bunch of additional people - if you're one, give us a call to get looking!
YIKES - update, Tuesday 5/19 - one of our agents learned that New York State is NOT participating in this program. HOWEVER, at least one local bank is looking at the concept to see if they might offer the same "bridge loan" to make this work. Stay tuned.
No news is good news, but no credit is NOT!
I guess it's been so long since I have heard of anyone without a credit history that I forgot it can happen. But recently one of our agents was working with a buyer who had actually saved money for down payment, had good employment history, BUT was missing one piece of the puzzle - a good credit history. They didn't have a BAD credit history... they had just chosen to do things the old fashioned way and save before buying, pay in cash, etc. And guess what? It will be months before they can buy a home due to the lack of credit! So if home buying is in your future, here's another thing to add to your to-do list. Check with a lender first to get the most up to date details, because things have changed drastically in the past couple of years and they continue to change, and then get started doing what they tell you to do to build your credit history!
HOW HORSEHEADS GOT ITS' NAME
Gen. John Sullivan left no intentional monuments behind him when his Continental Army ravaged the Indians of the Southern Tier in 1779 -- but he left one unintentional reminder of his passage. On Sept 24, 1779, Gen. Sullivan's army came down from the foot of Seneca Lake en route to a base camp near modern Elmira. They had to struggle through a vast swamp for hours and when they got to the site of present-day Horseheads, they had to kill several of their weary pack horses and leave their bones to bleach in the forest air. After they left, Indians set the skulls of the horses up along the side of the trail and from those bones left behind by his army; the community of Horseheads got its name.
FLATS HISTORY
A farmer moved his wife and seven children onto a plot of land claimed by the Indians in 1787 and the result was the modern Town of Big Flats. The town's first settler was Christian Myneer, also spelled Minier, and an ancestor of the family which today operates the hamlet's largest retail store, Minier's Market. (The store itself dates back to 1873, according to "Chemung County: it's History.")
The first school was built in Big Flats in 1814 --- a one-room log structure.
For many years, Big Flats was the center of the area's tobacco growing business. Tobacco seed was brought there in 1850 by Sanford Elmore, a Connecticut native. Tobacco flourished in the broad valley and at its peak, between 1908 and 1918, 2,000 acres were under cultivation.
But the rise of popularity of the cigarette after World War 1 doomed the tobacco business, oriented toward leaves used for cigars. The last tobacco was cultiivated there in 1957.
The world’s a stage.
Ah, technology. I happen to be 5 hours away from home right now, ready to watch my daughter on stage in a college play, but that’s not why I chose this title… It’s because we had a great discussion in our weekly meeting about STAGING and I thought I’d share some of that.
It began because of an exterior picture that one of our agents had taken, of a lovely home. But the picture had some “evidence of life” in it that in 3D, probably wasn’t a problem. In the one-dimensional picture, it looked BAD.
Here’s the upshot: a good real estate picture should have no toys in the yard, no cars in the driveway, no rugs or towels drying on the deck railings, etc. etc. etc. – it makes it look like a rummage sale is about to happen. And on the inside: the less stuff the better! Take the pictures off the fridge (I know, I know – everybody hates to hear this, but you’re going to do it when you move, so just do it now. It makes the kitchen look MUCH bigger.) Get stuff off counters. Get stuff off closet floors and shelves. Get stuff out, period. And THEN, the staging can begin. Everyone has seen the TV shows that demonstrate the effectiveness of staging, but it remains hard to get it done in our market. I don’t know why.
Many lovely homes with great furniture and décor STILL benefit from staging. One of our associates had a relative whose home was photographed for a national magazine because it was such a showplace; guess what they did? Came in and staged it BEFORE photographing! Imagine! One of our training phrases from about 20 years ago was “we prepare a home differently to show and to sell than to live in.”
So, please, talk with your agent about the value of staging, or if they bring it up, don’t think it’s an insult to your taste or your way of living. Making your home look almost unlived in and model perfect, removing personal stuff (STUFF IN GENERAL) and then arranging furniture so that rooms look their biggest and cheeriest is simply good advice that helps you achieve your goal of a good, quick, top-dollar sale!
Life is good – and so is the market!
On Thursday, I was talking to another Realtor after a board meeting. I learned that a well respected builder in our community had just died, at a too-young age, AND we were discussing the health problems of another well-respected Realtor. I think of myself as a basically cheerful and optimistic person, but after that conversation, I felt especially grateful for good health, a great family, a fine industry in which to make a living, and just the overall state of the world in MY little world. Life IS good.
Our talk then turned to the market. And now that it’s much improved, I’ll let you in on a little secret. Last November, the market was NOT so good. While rates were good (and still are), while there was a $7500 incentive for first home buyers to buy (now improved to an $8000 no-payback credit), and while our inventory remained low (unlike many areas in the country), the bottom just dropped out. I think it was the uncertainty over the election, then the collapse of several banks, the tanking of Wall St. – the number of sales in our local market dropped in HALF!
Sales were up (though not “normal,”) in December and remained at that pace in January and February. But in March, sales hit the level we were used to seeing – slightly over 100 for the month for all members of the Elmira-Corning Regional Board of Realtors.
While there are exceptions, our sales prices remain stable and have even appreciated a little, and most price ranges and areas remain in need of inventory. So, Life is Good. And so is the market. We invite you to spread the word – housing truly is at the heart of the economy, with a great number of additional purchases following the purchased of a home. We’re doing our best to let people know, but the negative media messages are SO overwhelming, we’d appreciate all the help we can get!
8 things to consider before refinancing
Ilyce Glink is a real estate consultant whom I had the pleasure to hear in person at a conference a few years ago. While much real estate info seems to go round and round on the net, this topic really was a first in recent history, so I’d like to give Ilyce Glink full credit for these points. The full article is at: realestate.yahoo.com
But here is a quick summary:
1 Check out the interest rate you have on your current loan; many people don’t know! You have to do the math to be sure it’s going to save you money!
2 Find out how much your home is worth. If you are in an area where values declined, you may not even be able to refinance, as you need to have equity in your home in order for this to work.
3 If you are really “underwater” with your loan, check the new requirements – you may be eligible for a loan modification
4 Get a copy of your credit history and your credit score. Requirements have changed dramatically in the last two years; there are people who got loans in the past who wouldn’t be able to get them now!
5 Start shopping and be sure to compare the expenses and costs of getting the loan as WELL as the interest rates offered!
6 If you have a second mortgage (often a homequity loan), find out if they will subordinate to the first lender; this allows you to leave the second in place and refinance the first mortgage at a better rate. If they don’t allow this, you may not be able to refinance at all.
7 Do the math now. If it takes $5000 in expenses to refinance and you save $50 a month, that’s 100 months or over 8 years. Will you be there that long? Is it worth it? Would you be better to just pay extra principal on your loan to pay it off faster?
8 Get your paperwork together; there are no “no doc” loans anymore. The whole process is much more stringent than it used to be, but refinancing can still make sense for some people; get your paperwork together and see!
Uncle Sam wants YOU to at least KNOW about the $8000 first home buyer tax credit!
I thought EVERYBODY knew about it - but just Friday night, at a Chamber of Commerce event, as I mentioned it to a young homeowner (as in - tell all of your friends), it was apparent that neither she nor the others in earshot were aware of it. So - here, again, is the "skinny" on the credit.
If you are a first home buyer (which is defined as not having had an ownership interest for 3 years at the time that you buy), and your income is within the program limits, you will receive UP TO 10% of the purchase price of your home.
Income limits are $75,000 for a single buyer, $150,000 for a couple for the basic program; prorated benefits apply up to $95,000 for a single person, $190,000 for a couple.
If you buy a $50,000 house, the credit would be $5000. If you buy an $80,000 house, the credit would be $8000. If you buy a $150,000 house, the credit would be $8000.
Unlike last year's credit, this is a true gift - there is no payback whatsover! If you close now, you can file an amendment to your taxes to get your money this year - otherwise, next year when you file, you would get $8000. If you owe the government $2000, you'd get a $6000 refund. If they owed you $2000, you'd get $10000.
It's really an incredible program and we don't know why EVERYONE doesn't know about it! Even if YOU cannot benefit from this program, won't you help spread the word? Having a strong market in the first home buyer price ranges makes the entire market move, and THAT is good for the economy! And with the $8000 credit, which is intended to stimulate the economy, buyers will no doubt go get new carpet, new furniture, new appliances, new STUFF - so it really, really, really is good for the economy!
More info is available on our coldwellbanker.com website - look under buyer resources. Or if you'd like us to send you a powerpoint and a FAQ, just request that from cbhorizonsc@stny.rr.com
And of course, for any other info on homeownership and how to make that happen, give Coldwell Banker Horizons Realty a call, visit or e-mail and we'll help you out!
Spring has sprung Well, at least it felt that way this past Thursday. (The weekend sounds like a WHOLE 'nother matter!) But, figuratively speaking, at least in the housing market, spring IS here. The number of pending sales - the number of houses that buyers made decisions on - during the month of March went up dramatically from the number that we as a Board had been selling during December, January, and February¡during each of those months, 65 houses went under contract and during March, 105! That's indicative of the normal "seasonality" in our housing market AND, I think, of the $8000 first home buyer credit. By the way, these figures represent all pendings in the Elmira, Elmira Heights, Horseheads, Corning, Addison and Campbell school districts and they are the total of all sales by all members of our Elmira-Corning Association of Realtors.
So what does it mean to you? Well, if you're selling, we suggest you spiff things up to make your first impression its best; we have some recommendations on that in our last newsletter, posted on this site under newsletters. AND there are great videos and recommendations on ColdwellBanker.com, PLUS our Concierge, Amy Woods, can help with an e-mailable list of spring recommendations and workers, should you need help.
If you're buying, we just think that it's good that you know the facts and know that we have a pretty strong market here¡ we STILL have fewer than 500 homes on the market in the market area named above, and if we continue to sell 100 a month and don't get a corresponding number coming on the market, well, we'll be out of homes in 5 months! Because of the national news and its constant negative slant (and summary of the national market as if there WERE such a thing - real estate is VERY local and just can't be grouped together that way), many buyers think that they are in the driver's seat in terms of negotiations with sellers. But what is happening frequently here is that we still see multiple offers, especially on homes that are new to the market, and therefore, we have a lot of disappointed buyers who don't get the home they want. This doesn't always happen of course, but just be aware, as a buyer, that you're not alone in the marketplace and if YOU think something is a good deal, probably others are looking at the house and thinking the same thing.
So spring has sprung, the market is pretty healthy here, it's a GREAT time to buy a house, with low interest rates and, if you fit the bill, the $8000 first home buyer credit, so have at it! And if we can help, give us a call or an e-mail!
Real estate agents and tires
I don't know how many tires I've bought for how many cars in my lifetime, but each time that they need replacement, I have to be re-educated, because they all look alike to me, and yet the price variation is GREAT. So, seeing the difference in price, I of course ask, WHAT'S THE DIFFERENCE? The same applies to purchases of DVRs, cars, and a multitude of other products and services. And yet, it has been my experience in 32 years of real estate, that consumers look at real estate agents as a commodity, like wheat or corn or blades of grass, instead of asking WHAT'S THE DIFFERENCE?
Do you know that 20% of the agents do 80% of the business, as is the case in so many walks of life? So, if experience is helpful in pricing, marketing, negotiating, and handling the sales process to get it from contract to closing, does it matter to you if your agent has had 1 transaction in the past year or 10? Does it matter if they are "supervised" by a broker who is not out selling and competing with that agent so that they're always available to help them (and never in a potential conflict of interest situation?) Is all marketing the same? Are all websites the same? Do all agents know how to negotiate for your best interests? (Oh, man, could I tell you some stories about THAT!) Does it help to be nationally known in real estate? Is it important to guarantee services? Do you make decisions based on who you know, who you like, and/or who can get the job (your sale or purchase) done?
We encourage you to compare; all real estate companies and real estate agents are not alike, and we'd love to show you more about what makes Coldwell Banker a leader in the marketplace, both nationally and locally. Remember, agents are like tires, and you need to ask, WHAT'S THE DIFFERENCE?
Foreclosure help
We have been blessed that we are not in an area that is high in foreclosures. Do we have them? Yes. Are they a huge percentage of our marketplace? No. And it's sad that there are any. If you are having difficulties making your mortgage payment and are looking for resources, let us provide a few. And remember, don't IGNORE the situation; talk to your bank and talk to a Realtor. Since our market didn't appreciate by leaps and bounds and then take a drop, we don't often have the "upside down" situation that you hear about in the news, and you may very well be able to sell your home, pay off your mortgage and not have to endure the foreclosure process. But here, as promised, are some real estate foreclosure resources for you to investigate:
www.freddiemac.com
www.realtor.org
nhl.gov
www.hud.gov
Each of these sites has numerous links and loads of information that we hope will be of help to you. Remember that there are unscrupulous people trying to "help" folks who are in danger of foreclosure; if you get an offer that seems too good to be true - well, you know how to finish that sentence. Work with legitimate helpers such as those on the sites above. And good luck to you!
Our house is for sale but we still have a life. Don't we?
It has been 20 plus years since I last had a home on the market, but I STILL remember it! Having your house on the market can be difficult. Right when you'd like to be home having dinner, someone wants to show. So you work around it. But then you get home, and the agent and buyers pull into your driveway at the same time YOU do - cause they are running behind schedule. So you go drive around some more even though the kids have homework to do and you had your plans too. Sometimes the agents don't even show up and you later get a call that "the buyers didn't like the outside (or the driveway or the distance from the city) so we didn't go in. Even when all goes as planned, you get a showing report the next day that says "didn't like. Or "too far from town." Or whatever. If you're a good housekeeper, perhaps that isn't the big issue that it was for me, but wow, if you're not, that adds to the stress exponentially! It can really feel like, already, you don't own your own home!
In addition, now that we're all up to speed on HGTV type staging, it can feel even MORE like you're not allowed to live in your own home when it's on the market. Stagers tell you remove your personal stuff, take appliances off the counters, pictures off the refrigerator (WHAT?!?!), pictures and personal "expressions" off the walls, and generally to make it look like no one lives in the house. Which is quite an issue when someone DOES live in the house!
We know what an imposition it is to have a house on the market, cause most of us have done it more than once (and many more have done it more recently than I have!) Our best advice: FOLLOW the advice you get about staging, cleaning out, fixing up etc so that when your house goes on the market, it is really THE best buy and most appealing home in the real estate market, so that it can sell QUICKLY and you can get out of this situation quickly! Be absolutely as flexible as you can with showings - people won't buy your house if they can't see it - and again, hopefully the inconvenience will be a short one! There are some really good videos on ColdwellBanker.com about preparing your home for a sale (or open house) that will give you some direction. We used to say, "We prepare a home differently to sell than to live in." Accept that, don't take recommendations personally, put the house on the market in good showing condition and at a market competitive price, and hopefully it won't be long before you feel like you live in your house again!
The fix that isn't working.
I attended a real estate meeting this past Wednesday, and heard some news that I wasn't aware of. Of the people who have thus far been offered some type of foreclosure help, 50% of them are already behind in their mortgages again, and of those, 50% haven't even bothered to make one payment. Doesn't that just give you a sinking feeling about the money being spent on this program? It did me! If you are in a position where you're worried about foreclosure, we have some great resources to share with you - hey, I'll put that in next week's online info! But in the meantime, let me share the opinions of some of the brightest minds in real estate (and the economy in general.) They have been recommending a $15000 buyer credit for ALL home buyers, not just first home buyers (but it has to be for a primary residence of course - this isn't for "flippers," if there are still any of those around.) AND they are lobbying for rates to be capped at 4.5% or 4% for mortgages. WOW - think THAT would make the market rebound?
Apparently back in 1974, a similar crisis was taking place in the real estate market, and the gov't offered at $2000 credit (which translates to $12,000 now) and I don't remember if they did a mortgage rate thing or not - but the market recovered BEAUTIFULLY in about 6 months. Having a credit that isn't offered in advance (for use for closing costs and such) keeps people who really can't afford a home from buying. But then, when you're handed $15000 after closing, it's likely that you'll go order that new carpet, buy that washer/dryer combo, add on that room, buy new furniture or that piano, and all of THOSE purchases really help the economy as well. Jim Gillespie, the CEO of Coldwell Banker, and several other brilliant money minds all agreed on the great potential of this plan on CNN last week - it was interesting and inspiring and who knows? It could be the answer that we as a country are looking for. Stay tuned; we'll check back on this in 6 months or a year!
"Lucy, you've got some 'splaining to do"
I've been spending 15 minutes twice a week looking through files. It hit me recently that I rarely opened some of my file cabinets, which probably means I don't need the stuff anymore, so I'm CLEANING! Once in a while, I run across something and wonder why/when we stopped using it. Like this "checklist" that we used, probably 8 years ago. I think we're going to revamp it and add some new stuff, but there really isn't much to take off - wow! Here's a checklist of what we wanted to be sure our agents covered with their sellers on a listing appointment...
1) agency law and disclosure
2) marketing plan
3) market analysis
4) seller information form
5) listing contract
6) permission for internet marketing
7) home warranty program
8) lead paint disclosure form
9) seller property condition disclosure
10) preparing the home for showings
11) how showing appointments get made
12) how showing reports work
13) office tour details
14) sign installation facts
15) lock boxes
16) the Multiple Listing Service
17) where buyers come from (a chart based on NAR and our local statistics)
18) open house discussion
19) purchase offer form - to help familiarize seller
20) financing details (concessions, FHA requirements, etc.)
21) buyer prequal/preapproval info
22) water and septic test requirements
23) home inspection contingency details
24) abstract and attorney issues
25) our contract to closing checklist
26) referral to another area requested?
27) our 22 Point Sellers Guarantee
OH MY GOSH! No wonder the NAR survey reports that 87% of home sellers enlist the help of an agent! It's a jungle out there!
50 Things I've Learned (During 50 years in real estate) by Joe Klock, Sr.
Joe Klock is an icon in real estate - and in the May/June 2004 (yes, 2004) issue of the Real Estate Professional, he shared materical culled from his book "Selling Real Estate in the Real World."
The newest part is here: Section C on Communications
18) Sound advice Never utter a sound unless you are certain in advance that the noise you are making is an improvement over the silence you destroy.
19) A salesperson's prayer - Grant me the sense that true eloquence will never come my way, and gran me the grace to shut my face when I've nothing more to say. (From the Dublin, Ireland "opinion."
20) Walk that talk! If you want to add some zip to your telephone conversations, try walking around, gesturing, flexing your knees and putting some "body English" behind your words. Joe says, "Trust me, it works."
21) Once upon a time - When you encounter obstacles (such as fear, doubt, reticence, or procrastination), it always helps to tell a story based on your experience that relates to their current situation. People like to knwo that their problems, while uncomfortable, are normal and survivable.
22) Talk is anything but cheap. Words spoken are like arrows shot from a bow; both are weapons that can maim and kill. Before firing either of them off: 1) Have a worthwhile reason for taking the shot. 2) Pre-select an appropriate tarte. 3) Aim with great care. 4) Be prepared to assume responsibility for the results. Unless all criteria are met, arrows should remain in teh quiver and words behind the tongue. A closed mouth gathers no feet!
23) Stop, listen and look! Listening skills are not entirely auditory and not limited to when the other party is yakking. While you "have the floor," keep your eyes on the alert for some sign that a word or phrase you've used has created an adverse reaction in the other party - or a positive one. When you suspect that either has occurred, stop talking at the earliest opportunity and probe for your listener's reaction. If you keep rattling on, you might be talking to someone who's tuned you out, or worse - ignoring an objection or missing the fact that you're on the same wavelength.
24) Simmer down! When an argument seems imminent, pause for a moment or two and breathe through your nose. It relaxes you and also keeps your mouth shut!
25) One size doesn't fit all. Good communication demands that you adjust the pace of your speech to match the comfort zone of your listeners. Your best clue is how rapidly or s-l-o-w-l-y they speak to you. If your "normal" rate of delivery is too fast, you'll confuse them... if it's too slow, you'll lose them or bore them to tears.
Here are the first 8 items, under Section A, Attitude, that are good for almost everyone, not just real estate salespeople!
1) Shame on whom? If someone insults you, angers you or otherwise upsets you, it is clearly their fault - for the first ten seconds or less. After that, it's yours!
2) Words to live by "Successful people are successful because they form the habit of doing things that failuers don't like to do." - Albert E. N. Gray
3) Be a booster! Being a team member carries with it the oblication to lend a helping hand to your colleagues. When they get better, everyone on the team benefits, including you. Instead of being critical of others' shortcomings, show them how they can improve. You can't light another person's path without brightening your own!
4) Winning isn't everything... nor is it the only thing. If you play only to win, you might lose, but if your goal is to give it your best shot, you'll never be a lower!
5) Watch that ego, amigo! A healthy self-image is good, so long as it is kept under control... and under wraps!
6) Winners vs. losers When winners make a mistake, they say, "I goofed someone; how can I avoid this problem in the future?" When losers screw up, they say, "It wasn't my fault; who can I blame?"
7) From the Good Book The Bible often says, "It came to pass." We know of no mention that anything "came to stay." This might be taken as a reminder than today's problems will be tomorrow's memories - if, indeed, they're remembered at all. Good point to ponder when the problem at hand seems to be getting out of hand!
8) More about winners and losers. Winners pray for a miracle after everything else has failed; losers pray for one before anything has been tried.
Section B: Work habits
9) Lifeline - Failure is following the line of least persistence!
10) Leave a paper trail - Sadly, we live in an increasingly litigious society, so it pays to maintain a "paper trail" of facts, observations, statments, agreements and opinions that might later have to be proven. Records are cheap, memories fallible... and the law is very costly!
11) Making it happen - Our worth is not measured by the knwoledge we HAVE, but by the knowledge we put to USE.
12) Too true to be good - There's no such thing as a missed opportunity; if you allow one to slip by, someone else will grab it every time!
13) On success... The Good Lord gave you two ends - one for sitting and one for thinking. Your success depends on which you use - heads you win, tails you lose.
14) About maturity - It has more to do with the number of experiences you've had and how you handled them than with how many candles there were on the your last birthday cake. Some people with twenty years of "experience" actually have on year of it... repeated twenty times!
15) Don't just do something - sit there! Allocate a portion of your daily routine to "think time: ... a period when you review the immediate past and contemplate the immmediate future, correcting the mistakes behind you and contemplating the opportunities that lie ahead. A few minutes of introspection now can save hours of remorse later.
16) The difference between time and money - you can save money by doing nothing with it, but the only way to save time is to spend it wisely!
17) - In defense of prudence... Many old sayings have an interesting flip side. For example: the early bird does, undoubtedly, get the worm... but it's the second mouse who gets the cheese!
Want to know more about Joe? See: joeklock.com
Are you a NORMAL buyer or seller OK. I confess. I have no way of knowing if you're normal! But if I'd called this the 2008 NAR survey, would you have read it? So here is a summary of some facts about buyers and sellers, and I leave it to you to decide if you are a normal buyer or seller! Released in November of 08, The National Association of Realtors' survey covered the period of time from July 07 to June 08, and uncovered interesting real estate facts like this:
The number of first home buyers rose to 41% and predictions are that it will continue to rise, given the first time buyer credit and improvements to the FHA loan program. Indeed, a more recent study by HouseHunt Inc indicated that 50% of homes purchased in the 3rd quarter of 2008 were by first home buyers! Median age of these first home buyers: 30, median income $60,600, typical purchase price $165,000 (NOT HERE IN KANSAS, DOROTHY!) and they plan to stay in that home for 10 years. Median downpayment was 4% - HOWEVER, it's safe to assume these numbers have shifted, since no downpayment loans all but disappeared around the close of the survey.
Other buyers? The typical repeat buyer was 47 years old, earned $88,200, purchased a home costing $236,000 and plans to stay for 10 years. Gas prices were high during this time, and 41% of respondents said commuting costs factored greatly in neighborhood selection, with another 39% saying costs were somewhat important.
61% of buyers are married couples 20% are single women, 10% are single men, 7% were unmarried couples. 78% purchased single family homes, 9% a condo, 8% a townhouse or rowhouse, 5% some other kind of housing. 55% of homes purchased were in a suburb or subdivision, 17% in an urgan area, 16% in a small town, 10% in a rural area and 2% in a resort of recreation area. The median distance from the previous residence was a surprising 12 miles!
How did buyers find out about the home they purchased? 34% from their agent, 32% from the internet, 15% from a yard sign, 7% from a friend, neighbor or relative, 7% from a builder, 3% from a print or newspaper ad, 2% directly from the seller and 1% from a home book or magazine. Writer's view: This part of the report is of the greatest importance to those of us who make the decisions about marketing dollars! For years, real estate companies have followed the crowd and advertised here or there because "everyone else does: or "they need to compete with so and so" or "the seller expects it" or ¡"the agents expect it" or because they simply don't know any better. Imagine spending 50% of the marketing dollars on a medium that brings a 3% return on investment - wow! No wonder so many real estate companies go out of business! That's crazy! Judging from the above, we'd do better to send checks to the neighbors of listed houses and tell them to tell all their friends - that's a better ROI than several of the other marketing avenues!
Stay tuned; the next installment will be about sellers and there's some interesting stuff there too! | |
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