Thursday, February 25, 2010
Wednesday, February 24, 2010
Tuesday, February 23, 2010
Foreclosure Bargains Getting Harder to Find
Home buyers hoping to snag a really good deal on a foreclosed home are finding it increasingly difficult because supply is shrinking.
The number of foreclosures that are available for sale nationwide fell to 617,000 in December, down from 845,000 in November 2008, reports Barclays Capital.
Not only have attractive homes in popular neighborhoods already been snapped up, but also government help for distressed buyers is delaying more foreclosures.
Demand is driving up prices. Investors say typical prices have climbed from 75 percent of appraised value to 85 percent or higher when there are bidding wars.
Source: The Wall Street Journal, James R. Hagerty (02/23/2010)
The number of foreclosures that are available for sale nationwide fell to 617,000 in December, down from 845,000 in November 2008, reports Barclays Capital.
Not only have attractive homes in popular neighborhoods already been snapped up, but also government help for distressed buyers is delaying more foreclosures.
Demand is driving up prices. Investors say typical prices have climbed from 75 percent of appraised value to 85 percent or higher when there are bidding wars.
Source: The Wall Street Journal, James R. Hagerty (02/23/2010)
Saturday, February 20, 2010
Tips for Buyers
Things Your Realtor Should Do for You
When Negotiating the Sale!
It's no secret that listings are up and homes are taking longer to sell. It's a buyers market again, and that's good news for home buyers. The single most important reason to hire a professional realtor is to get the best deal possible in negotiating the sale. But without training and experience in contract negotiations, how do you know if your realtor is really working for you?
First and foremost, whether you hire a buyers representative or not, your realtor should be ready, willing and able to guarantee that they represent only you-the "buyer" during the real estate transaction and in Oklahoma State, that means they are a "single party" transactional broker. Unless your realtor signs a Single Party Agreement or an Exclusive Buyer Agency Agreement, you can assume they are working for the seller to close the sale for the highest price possible.
It might pay to also remember that even with an agreement your realtor may not be on your side. It's just a fact, realtors make their income off the homes' selling price, and the higher the price the better the commission, which is why some realtors won't even bother to negotiate insisting that their clients only offer the asking price to the seller.
An offer to purchase is essentially a legal agreement between the buyer and seller as to the price, terms, and conditions of the sale that will be written into the final agreement which is presented to the lender and signed at closing. So here is a list of things your realtor should include in the offer to purchase:
Tip #1: Never, never ever offer full asking price even when you are willing to pay it. Anyone can pay full price but you can never pay too little. Make your first offer the lowest realistic price you can. A good realtor will suggest offering from 5 to 15% bellow the seller's asking price, while taking into consideration all of the concessions you want the seller to make.
Tip #2: Ask the seller to pay some or all of your closing costs and pre-paids which are multiple fees involved in the real estate transaction. Examples of these are title fees, discount points paid on your loan, origination fees, taxes, and insurance. As a rule of thumb, in Oklahoma you can request the seller to pay up to 6 percent of the sales price toward "any and all allowable costs to close".
Tip #3: On existing homes, ask the seller for an allowance or credit to help with improvements such as new carpeting, updating appliances, painting, landscaping or other major repairs the house might need but remember to check with your lender because they may have strict requirements on the wording and handling of allowances during the sale.
Tip #4: Always ask for a home service warranty on existing homes older than 3 years. Even if the seller has done recent updating on appliances or mechanical systems such as heating and air conditioning you can never have enough protection when buying an older home.
Tip #5: Request Contingencies. Make sure your realtor includes basic contingencies for appraisal value vs. offer on price. If the home fails to appraise at the purchase price or greater the seller has to lower his price. Also, set a repair contingency to cover most of the expected repairs that the seller must make up to a certain dollar amount. I always suggest my clients ask for repair amounts to be set at $5,000 in the initial offer. Of course, this usually gets negotiated down to about half.
Tip #6: Extra Perks. Keep in mind, everything is negotiable in real estate. Don't be afraid to ask for more but be flexible enough to relinquish on items that are not very important. In other words, don't sweat the small stuff.
One final note, most deals fall apart after three rounds of offer and counter-offers. If there is "no meeting of the minds" be prepared to walk away.
2007©
When Negotiating the Sale!
It's no secret that listings are up and homes are taking longer to sell. It's a buyers market again, and that's good news for home buyers. The single most important reason to hire a professional realtor is to get the best deal possible in negotiating the sale. But without training and experience in contract negotiations, how do you know if your realtor is really working for you?
First and foremost, whether you hire a buyers representative or not, your realtor should be ready, willing and able to guarantee that they represent only you-the "buyer" during the real estate transaction and in Oklahoma State, that means they are a "single party" transactional broker. Unless your realtor signs a Single Party Agreement or an Exclusive Buyer Agency Agreement, you can assume they are working for the seller to close the sale for the highest price possible.
It might pay to also remember that even with an agreement your realtor may not be on your side. It's just a fact, realtors make their income off the homes' selling price, and the higher the price the better the commission, which is why some realtors won't even bother to negotiate insisting that their clients only offer the asking price to the seller.
An offer to purchase is essentially a legal agreement between the buyer and seller as to the price, terms, and conditions of the sale that will be written into the final agreement which is presented to the lender and signed at closing. So here is a list of things your realtor should include in the offer to purchase:
Tip #1: Never, never ever offer full asking price even when you are willing to pay it. Anyone can pay full price but you can never pay too little. Make your first offer the lowest realistic price you can. A good realtor will suggest offering from 5 to 15% bellow the seller's asking price, while taking into consideration all of the concessions you want the seller to make.
Tip #2: Ask the seller to pay some or all of your closing costs and pre-paids which are multiple fees involved in the real estate transaction. Examples of these are title fees, discount points paid on your loan, origination fees, taxes, and insurance. As a rule of thumb, in Oklahoma you can request the seller to pay up to 6 percent of the sales price toward "any and all allowable costs to close".
Tip #3: On existing homes, ask the seller for an allowance or credit to help with improvements such as new carpeting, updating appliances, painting, landscaping or other major repairs the house might need but remember to check with your lender because they may have strict requirements on the wording and handling of allowances during the sale.
Tip #4: Always ask for a home service warranty on existing homes older than 3 years. Even if the seller has done recent updating on appliances or mechanical systems such as heating and air conditioning you can never have enough protection when buying an older home.
Tip #5: Request Contingencies. Make sure your realtor includes basic contingencies for appraisal value vs. offer on price. If the home fails to appraise at the purchase price or greater the seller has to lower his price. Also, set a repair contingency to cover most of the expected repairs that the seller must make up to a certain dollar amount. I always suggest my clients ask for repair amounts to be set at $5,000 in the initial offer. Of course, this usually gets negotiated down to about half.
Tip #6: Extra Perks. Keep in mind, everything is negotiable in real estate. Don't be afraid to ask for more but be flexible enough to relinquish on items that are not very important. In other words, don't sweat the small stuff.
One final note, most deals fall apart after three rounds of offer and counter-offers. If there is "no meeting of the minds" be prepared to walk away.
2007©
Friday, June 6, 2008
How to Hold a Successful Garage Sale
Garage sales can be a great way to get rid of clutter — and earn a little extra cash — before you sell your home. But make sure the timing is right. Garage sales can take on a life of their own, and it might not be the best use of your energy right before putting your home on the market. Follow these tips for a successful sale.
1. Don’t wait until the last minute. You don’t want to be scrambling to hold a garage sale the week before an open house. Depending on how long you’ve lived in the home and how much stuff you have to sell, planning a garage sale can demand a lot of time and energy.
2. Get a permit. Most municipalities will require you to obtain a special permit or license in order to hold a garage sale. The permits are often free or very inexpensive, but still require you to register with the city.
3. See if neighbors want to join in. You can turn your garage sale into a block-wide event and lure more shoppers if you team up with neighbors. However, a permit may be necessary for each home owner, even if it’s a group event.
4. Schedule the sale. Sales on Saturdays and Sundays will generate the most traffic, especially if the weather cooperates. Start the sale early, 8 a.m. or 9 a.m. is best, and be prepared for early birds.
5. Advertise. Place an ad in free classified papers and Web sites, and in your local newspapers. Include the dates, time, and address. Let the public know if certain types of items will be sold, such as baby clothes, furniture, or weightlifting equipment. On the day of the sale, balloons and signs with prominent arrows will help to grab the attention of passersby.
6. Price your goods. Lay out everything that you plan to sell, and attach prices with removable stickers. Remember, garage sales are supposed to be bargains, so try to be objective as you set prices. Assign simple prices to your goods: 50 cents, 3 for $1, $5, $10, etc.
7. If it’s really junk, don’t sell it. Decide what’s worth selling and what’s not. If it’s really garbage, then throw it away. Broken appliances, for example, should be tossed. (Know where a nearby electrical outlet is, in case a customer wants to make sure something works.)
8. Check for mistakes. Make sure that items you want to keep don’t accidentally end up in the garage sale pile.
9. Create an organized display. Lay out your items by category, and display neatly so customers don’t have to dig through boxes.
10. Stock up on bags and newspapers. People who buy many small items will appreciate a bag to carry their goods. Newspapers are handy for wrapping fragile items.
11. Manage your money. Make a trip to the bank to get ample change for your cashbox. Throughout the sale, keep a close eye on your cash; never leave the cashbox unattended. It’s smart to have one person who manages the money throughout the day, keeping a tally of what was purchased and for how much. Keep a calculator nearby.
12. Prepare for your home sale. Donate the remaining stuff or sell it to a resale shop. Now that all of your clutter is cleared out, it’s time to focus on preparing your house for a successful sale!
Reprint with permission from Realtor.Org
1. Don’t wait until the last minute. You don’t want to be scrambling to hold a garage sale the week before an open house. Depending on how long you’ve lived in the home and how much stuff you have to sell, planning a garage sale can demand a lot of time and energy.
2. Get a permit. Most municipalities will require you to obtain a special permit or license in order to hold a garage sale. The permits are often free or very inexpensive, but still require you to register with the city.
3. See if neighbors want to join in. You can turn your garage sale into a block-wide event and lure more shoppers if you team up with neighbors. However, a permit may be necessary for each home owner, even if it’s a group event.
4. Schedule the sale. Sales on Saturdays and Sundays will generate the most traffic, especially if the weather cooperates. Start the sale early, 8 a.m. or 9 a.m. is best, and be prepared for early birds.
5. Advertise. Place an ad in free classified papers and Web sites, and in your local newspapers. Include the dates, time, and address. Let the public know if certain types of items will be sold, such as baby clothes, furniture, or weightlifting equipment. On the day of the sale, balloons and signs with prominent arrows will help to grab the attention of passersby.
6. Price your goods. Lay out everything that you plan to sell, and attach prices with removable stickers. Remember, garage sales are supposed to be bargains, so try to be objective as you set prices. Assign simple prices to your goods: 50 cents, 3 for $1, $5, $10, etc.
7. If it’s really junk, don’t sell it. Decide what’s worth selling and what’s not. If it’s really garbage, then throw it away. Broken appliances, for example, should be tossed. (Know where a nearby electrical outlet is, in case a customer wants to make sure something works.)
8. Check for mistakes. Make sure that items you want to keep don’t accidentally end up in the garage sale pile.
9. Create an organized display. Lay out your items by category, and display neatly so customers don’t have to dig through boxes.
10. Stock up on bags and newspapers. People who buy many small items will appreciate a bag to carry their goods. Newspapers are handy for wrapping fragile items.
11. Manage your money. Make a trip to the bank to get ample change for your cashbox. Throughout the sale, keep a close eye on your cash; never leave the cashbox unattended. It’s smart to have one person who manages the money throughout the day, keeping a tally of what was purchased and for how much. Keep a calculator nearby.
12. Prepare for your home sale. Donate the remaining stuff or sell it to a resale shop. Now that all of your clutter is cleared out, it’s time to focus on preparing your house for a successful sale!
Reprint with permission from Realtor.Org
Thursday, June 5, 2008
Foreclosures hit a record high — and more coming
The Mortgage Bankers Association on Thursday released their quarterly report which said that "1 percent, or roughly 447,723 loans, fell into foreclosure during the January-to-March period that surpassed the previous high of 0.83 percent over the last three months in 2007."
The report also found that more homeowners slipped behind on their monthly payments. The delinquency rate jumped to 6.35 percent — or 2.87 million loans — compared with 5.82 percent for the previous three months. Payments are considered delinquent if they are 30 or more days past due.
The report also found that more homeowners slipped behind on their monthly payments. The delinquency rate jumped to 6.35 percent — or 2.87 million loans — compared with 5.82 percent for the previous three months. Payments are considered delinquent if they are 30 or more days past due.
Labels:
For Sellers,
Foreclosure,
Homes,
Market,
Mortgages
Sunday, May 25, 2008
More Seller Tips:
Creating Glass Front Cabinets from AskstheDecorator.Com
Labels:
Buyers,
Cabinets,
Home Improvement,
Home Staging,
Kitchen,
Sellers
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