Friday, March 28, 2008

Real Estate Rates Increase Overnight

Long-term 30-year fixed mortgage rates rose Thursday to 5.75% and the 15-year fixed rate increased to 5.27 percent. This means Banks are not doing what the Feds had intended by lowering the federal reserve rates which was to pass the savings on to consumers by lower mortgage rates. The idea was that lower consumer rates would in turn help keep are ecomony floating above the recessionary line. However, banks have used the lower reserve rates to increase there liquidity and are not passing any discounts along to the consumers.

Tuesday, March 25, 2008

To Sell or Not To Sell

Tough times calls for tough choices. Hard nosed sellers don't want to hear the truth about pricing their homes correctly under the current market conditions. Instead, many will actively seek out real estate professionals that falsely promise to get the sellers their full asking price and that is assuming they don't over price the home from the beginning.

What surprises me is when these very same sellers become upset and frustrated when their home ends up sitting on the market for months after turning down realistic and reasonable offers.

The first thing a seller should do when setting the asking price is to ask themselves the question, "Do I really want to still own this house 6,7 or 9 months from now?" That is if they have the luxury to wait around for a buyer to offer that magic price regardless of how long it takes. However, some sellers may be relocating and need to free up their funds to purchase a new home while others may be facing foreclosure. In these tough economic times the age old saying holds true: a bird in the hand is worth more than two in the bush.

So, here is a bitter pill--If it don't appraise at that "magic price" or greater then the lenders won't lend the buyer any money to buy until the contract price is in line with the appraisal. In other words, save yourself some time and price it correctly.

Monday, March 24, 2008

Oklahoma City is On The List!


Oklahoma City ranked 4th on the list of best places to buy foreclosure. People all over the world are starting to take notice that one of america's best kept secrets is that Oklahoma City is a great place to shop for deals in this new ecomony. While Oklahoma's foreclosure rate is smaller than other states across America, we offer the greatest value for those homes found on the foreclosure lists.

How to Cash in on this trend?


There are 3 main ways to buy foreclosed properties here in Oklahoma City Metro. Pre-foreclosures better known as short sales. These are primiarly offered through local Relators and are generally listed on the MLS. Another lessor known method is to buy at the sheriffs sales which is the last step in the foreclosure process before banks reassign them to a listing broker as a REO property. Some pretty great bargins can be found at the sales but on the most desired properties it can be tough competition during the bidding. Depending on the balance owed at the time of foreclosure some properties may be sold at auction for as little as 80% of the appraised value. Fore more information on Sheriff's Sales visit: http://www.oklahomacounty.org/sheriff/SheriffSales/
This lovely 2,668 SF 3 bedroom/3 bath Edmond Home is up for Sheriff's Sale on 5/1/2008. This property has appraised at around $250,000.


The third method are the tax sales which are not as productive today as they were 15 or 20 years ago. But this is a great method employed by investors trying to pick up vacant land for development or "fixer-uppers" in urban neighborhoods where rentals are common. The Oklahoma County Tax Sale which serves all of the Okahoma City Metro area comes up once a year on the 2nd Monday in June. Additional information can be found of the Oklahoma Treasures site: http://www.oklahomacounty.org/treasurer/ResaleInstructions.htm


If you have any questions about buying foreclosures in Oklahoma City Metro Area or a real estate question in general please email me at okcrealty@msn.com.