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Monday, 31 January 2011
First, complete a short sale application from your lender and get an idea of how much they may be willing to accept. Work with a real estate agent who has lots of experience with short sales to find that sweet spot between what the lender wants and what will excite buyers, and you may be lucky enough to receive multiple offers.
If you're not defaulting, but your home has lost significant value, you're still in a tough situation. If you bought during the peak years, you may have trouble salvaging your equity in today's market. While painful, the best pricing strategy in this case is to ask your agent for a Comparative Market Analysis (CMA) and price your home at fair market value or below. Again, if your price is right, you may encourage multiple offer, resulting in a higher sale price.
An article appeared recently in the New York Times that beautifully illustrates the opportunities today's real estate market offers. A mother working two jobs saved up for a down payment and managed to buy a large home for a price that was 20% lower than it's selling price just a few years before.
While sellers are still feeling pressure, buyers with stable incomes and good credit histories are beginning to spread a "feel good" vibe throughout the industry. Conditions have literally never been better for first-time buyers. Affordability has never been higher and interest rates are great. The selection of inventory is vast and most sellers have priced their homes reasonably.
As more buyers enter the marketplace, the ripple effect will be felt far and wide. When they purchase a highly affordable foreclosure or "short sale," they have removed a distressed property form the listings, improving the chances other homes in the area will also sell. When they buy a "traditional" listing, that in turn sets off a chain reaction whereby the sellers in turn will purchase another home, from sellers who will in turn buy another home, and so on and so on.
You probably get the picture now. As we approach some stability in real estate, all indications are that prices will begin rising again. As the market approaches recovery, don't miss your opportunity for the buy of a lifetime.
Tuesday, 25 January 2011
If you're looking for a bargain and considering purchasing a foreclosure, you'll first have to decide what kind of foreclosure property to pursue. The three categories are Pre-Foreclosure or Short Sale, Sheriff's Auction, and Bank Owned which are called REO for Real Estate Owned by the bank.
Short Sales are in the process, but have yet to be foreclosed on. Your offer will have to be negotiated with the lender as well as the owner, which makes the deal complicated and slow. Prices also tend to be highest in this category.
Next are properties that are being auctioned by the Sheriff. Inspections are usually unavailable for these homes, and the transaction can get very sticky. These foreclosures are often best left to contractors, investors and developers who are well versed in the challenges of properties with defects. Also, most of these are purchased by the banks that have the current loan on the property.
Finally, after the Sheriff's auction, it is offered as an REO property. These may list at a lower price than the auction price and you may not have the option of a home inspection and may find repair surprises. You should have a title search to insure you have clear title to the property. However, you should still purchase title insurance to protect yourself from title problems that could come up in the future.
Since homes in this stage are offered in "as is" condition, make sure you have the financial ability to make the repairs that may be needed. Many lenders will not lend on a foreclosure property, so always discuss this with your loan officer if you are considering this option.
Thursday, 20 January 2011
Deciding on an asking price for your home is challenging enough these days, but you need specific pricing strategies for particular scenarios, especially if you're under pressure to move quickly or your home isn't selling after being on the market for several months. Here are suggestions for both situations.
If your facing a deadline due to job relocation or other reasons, then you need to price competitively, even more competitively than expected in today's market. You'll need to list as significantly less than your competition. Think 15% less. That may seem tough to stomach, but it's better than continuing your monthly loan payments or the hassle of trying to find tenants to rent your home.
If your home has been listed for some time, but not generating offers, you'll need to adjust your price. Of the three elements that sell a home - price, location, and condition - price is the one you'll have the most control over.
When home values have declined in your area, the price you originally listed at a few months ago may now be too high and out of line with today's comparable listings. Now would be the time to have your real estate agent review the sale price of other homes that have sold and reevaluate your pricing strategy. If you've got to sell, and sell now, price it like you mean it!
Wednesday, 12 January 2011
Due to recent government incentives, short sales are becoming the darling of the distressed-property marketplace. A short sale keeps owners out of foreclosure, because the lenders allow the homeowners to sell their house for less than they owe.
Banks have really sped up the process, hiring large numbers to serve the short sale clients. In early 2010, one of the very largest banks had more than doubled the number of short sales it approved, sometimes as quickly as 30 days. Compare that to 2009, when short sales stalled indefinitely or took more than six months to complete.
The biggest road block to approval was often a second mortgage that had been taken out by the seller. Since the primary lender must be paid first, the second lien holder could be left with nothing, and they would basically kill the sale. But now the Home Affordable Foreclosure Alternatives (HAFA) program provides money to primary lenders who share the proceeds with the second lien holders. HAFA also provides up to $6,000 to those secondary lenders if they release their claim.
Short sales keep borrowers out of foreclosure and reduce the impact on their credit. While foreclosure can shave 200 points off your score, the penalty for a short sale may be only half of that. Hopefully, a boom in short sales will also bring us closer to ending the ongoing foreclosure crisis.
Tuesday, 04 January 2011
As a buyer, you want your offer to be accepted and your contract to close on schedule. However, in today's climate, you should expect some negotiation, and submit your offer with the following advice in mind.
The financing contingency in your offer will state your loan total and anticipated interest rate and approval date. Strongly consider locking in that rate with the lender, as rates are still very low, and you'll avoid any future fluctuations in the market.
Reserve funds now for your settlement costs at closing. Anticipate anywhere from 2% to 6% of the amount you're financing, plus your down payment less any earnest money you offered as a deposit, which may be required to be in the form of a certified check.
If your down payment funds are not in an immediately liquid account, keep things on track by moving the funds into your checking or savings account at least 10 days before closing, so you're sure that you'll be able to access the money in advance of the closing date.
Finally, try to avoid a closing date at the end of the month or the end of the year, as these are the busiest times for lenders and could cause undue delay in meeting your approval deadline for financing. Speak with your agent about other factors in crafting your offer and successfully closing on schedule.
Monday, 03 January 2011
Real estate for sale in Piqua area
Homes for sale in Piqua Ohio
501 Caldwell, Piqua, 4 bed, 2 bath $14,000
1526 Edge, Piqua 3 bed, 1.5 bath $56,000
321 Fallow Ct, Piqua, 3 bed, 2 bath, $125,000
708 Lambert, Piqua, 3 bed, 2 bath, $130,000
316 Blaine, Piqua, 3 bed, 1 bath, $48,000
539 Boone, Piqua, 3 bed, 2 bath, $58,000
1240 High, Piqua, 4 bed, 1 bath, $63,000
921 Wheeler, Troy, 3 bed, 2 bath, $64,900
For more information on these homes or any homes in Miami or Shelby Counties, please contact Kathy Henne at 937-778-3961 or Kathy@KathyHenneTeam.com
Monday, 03 January 2011
Recent Piqua Area Real Estate Sales
The local Multiple Listing Service lists these Piqua homes as sold with real estate agents.
901 Brice, Piqua, 3 bed, 1 bath, list price $54,900, sale price $54,900, 11 days on market
600 Westview, Piqua, 2 bed, 2 bath, list price $104,900, sale price $98,000, 71 days on market
802 Park, Piqua, 3 bed, 1 bath, original list price $59,900, list price at sale $49,900, sale price $40,000, 181 days on market
928 North, Piqua, 4 bed, 2 bath, list price $143,900, sale price $133,000, 183 days on market
1105 Maplewood, Piqua, 3 bed, 2 bath, original list price $169,900, list price at sale $142,000, sale price $132,000, 368 days on market
905 Nicklin, Piqua, 3 bed, 2 bath original list price $90,000, list price at sale $74,000, sale price $71,000, 411 days on market
808 Boone, Piqua, 3 bed, 1 bath, list price $42,000, sale price $39,500, 76 days on market
Keep in mind that the seller may have paid for the buyer's closing costs which reflect in the sales price. For more information on these Piqua homes or any homes in Miami or Shelby counties, please contact Kathy Henne at 937-778-3961 or Kathy@KathyHenneTeam.com
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