We need to move some inventory! Out of an "average" search of homes for sale in Snohomish County, 80% or more of listed homes are either bank owned or short sales. Only 20% and less are "normal" homes for sale. It puts "Normal" Sellers in an awkward situation of having to price their homes in competition with houses listed at "sale" prices. You'll not find this "perfect storm" situation again for years ... and maybe never in my lifetime.
Yes, real estate is cyclical, but this is a really strange cycle. You have houses at unbelievably low prices PLUS interest rates for loans at an all time low. Yes, you have to have some money to put some "skin in the game". But you can still ask Sellers (banks and short sales included) for at least the closing costs in your offer. And, FHA and VA Financing (minimum down loans) are welcome ... especially on homes that have been on the market for a long time. There are even "0" down loans out there from various government entities when you buy in geographical areas and meet their qualification requirements.
We had some agents attend the auction at the Snohomish County Courthouse last Friday and they reported back that there were lots of people there and bidding was very active. A few years ago, I attended one just to check things out and there was hardly anyone there bidding on anything. So, yes, investors are in the game and are figuring out that NOW is the time to buy. You'll be noticing lots of houses that have been vacant or neglected for a long time now being remodeled and going back on the market. I've been out showing and we've seen some really cute homes that have been updated and remodeled, and their prices are still in the reasonable price range.
So the message to Buyers is Now is the Time to Buy. Dust off that 401k and take a little money out, see if Mom and Dad can't help with some gift funds, find a way to get your own piece of the real estate pie. Prices will go up, depend on it! It may take a little while, but you can bank on it. Call your Real Estate Agent today ... or give us a call and we'd love to help.
Showing posts with label Home Sellers. Show all posts
Showing posts with label Home Sellers. Show all posts
Tuesday, July 27, 2010
Friday, June 11, 2010
Word for the Day ... Frustration!
I know, I know, I know ... optimism is the key word in real estate. The market is always great to buy and sell real estate; but, when dealing with banks on short sales, frustration is what happens.
The largest problem every real estate agent encounters in their day to day business is the lack of control we have over all the factors and people involved in a transaction. If it's a local escrow company or mortgage company that you work with on a regular basis and you know they do their job ... and they occasionally mess up, you can yell and scream and remind them of how much work you send their way, and they'll promise to never do it again and everyone's happy. (Or at least you're happier that you were allowed to vent your frustration.)
Now comes the wonderful world of short sales and, when we thought we had a least a little control, we now have none, zip, zilch, nada. I've had short sales in contract for six months or more, and still no decisions from the underlying lenders. They have so many people and systems in the loop, I've lost track. First you submit it, it gets logged in and you wait for it to be assigned to a negotiator. That can take weeks. Then you finally get your negotiator and they have to have you update all the paperwork because by now everything is months old. So you do all that and, should they forget to mention one item they need or you didn't quite fill something out correctly ... do they call you to tell you? NO! You call them weekly to start, (it becomes daily toward the end) leave a message and wait for a return call. Or you e-mail them weekly to start and get a reply? Not very often. And, when you finally get in touch it's, oh, so sorry, we need another bank statement or hardship letter or HUD statement. Aaarrrrggggghhhh.
Now you finally get a "preliminary" approval ... if your Seller will pay a little money or if your Buyer will raise the price, etc., etc. because another agent or appraiser went out and gave them a Broker Price Opinion or appraisal that doesn't match the numbers. So, it's back to the Buyers and Sellers to see if we can meet their requirements ... more addendums to a contract that is probably so out of date now it's growing whiskers. And, now that you return the addendums to the bank, you get to stand in line again so the "Investor" can review the contract and decide if it's up to their standards.
And, what about the Buyers who have been hanging in there prior to the April 30th deadline to close by June 30th so they can get their tax credit? If you don't have Final Approval from the bank by now and already ordered an appraisal, they are no doubt out of luck. Unless, by some miracle, congress decides to take pity on the poor home buyers who are stuck in this goo and extend the closing deadline.
My heart bleeds for the Buyers and Sellers stuck in this mess. It seems to me, if the banks would streamline their approval process and make decisions sooner, maybe they wouldn't be so backed up that they can't get on top of their paperwork. Just an opinion from a lowly old Real Estate Broker that's been around a long, long, long, long time.
The largest problem every real estate agent encounters in their day to day business is the lack of control we have over all the factors and people involved in a transaction. If it's a local escrow company or mortgage company that you work with on a regular basis and you know they do their job ... and they occasionally mess up, you can yell and scream and remind them of how much work you send their way, and they'll promise to never do it again and everyone's happy. (Or at least you're happier that you were allowed to vent your frustration.)
Now comes the wonderful world of short sales and, when we thought we had a least a little control, we now have none, zip, zilch, nada. I've had short sales in contract for six months or more, and still no decisions from the underlying lenders. They have so many people and systems in the loop, I've lost track. First you submit it, it gets logged in and you wait for it to be assigned to a negotiator. That can take weeks. Then you finally get your negotiator and they have to have you update all the paperwork because by now everything is months old. So you do all that and, should they forget to mention one item they need or you didn't quite fill something out correctly ... do they call you to tell you? NO! You call them weekly to start, (it becomes daily toward the end) leave a message and wait for a return call. Or you e-mail them weekly to start and get a reply? Not very often. And, when you finally get in touch it's, oh, so sorry, we need another bank statement or hardship letter or HUD statement. Aaarrrrggggghhhh.
Now you finally get a "preliminary" approval ... if your Seller will pay a little money or if your Buyer will raise the price, etc., etc. because another agent or appraiser went out and gave them a Broker Price Opinion or appraisal that doesn't match the numbers. So, it's back to the Buyers and Sellers to see if we can meet their requirements ... more addendums to a contract that is probably so out of date now it's growing whiskers. And, now that you return the addendums to the bank, you get to stand in line again so the "Investor" can review the contract and decide if it's up to their standards.
And, what about the Buyers who have been hanging in there prior to the April 30th deadline to close by June 30th so they can get their tax credit? If you don't have Final Approval from the bank by now and already ordered an appraisal, they are no doubt out of luck. Unless, by some miracle, congress decides to take pity on the poor home buyers who are stuck in this goo and extend the closing deadline.
My heart bleeds for the Buyers and Sellers stuck in this mess. It seems to me, if the banks would streamline their approval process and make decisions sooner, maybe they wouldn't be so backed up that they can't get on top of their paperwork. Just an opinion from a lowly old Real Estate Broker that's been around a long, long, long, long time.
Tuesday, March 30, 2010
CENTURY 21 is giving away Twenty One $8.000 Cash Prizes
And you could be a winner! The Connect 2 the 1 Campaign runs from April 1, 2010 through June 30, 2010, and it allows you to enter your name in a drawing to win one $8,000 prize. One winning name will be drawn each month for 3 months in each of the 7 zones of the country designated by CENTURY 21: Desert West, Pacific West, Midwest, Northeast, Mid-Atlantic, Southeast and South Central. (Kansas, Missouri, New Jersey, Oklahoma and Rhode Island are not able to participate due to State Regulations). Drawings will be held on or about the 20th of May, June and July and winners will be notified by mail, e-mail or phone.
So, how do you enter? You can enter by 3 simple ways: 1) List your home for sale by your CENTURY 21 Professional during the campaign period. 2) Ask your CENTURY 21 Professional for an entry form, fill it out and give it back to them to send in for you. 3) Write your name, complete address including zip code, phone number, e-mail address and age (must be 21 to enter contest) on a 3x5 piece of paper and mail it to: "$8,000 List Your Home Sweepstakes", c/o ePrize, LLC, PO Box 5046, Kalamazoo, MI, 49003-5046. Only one entry per person during the campaign and non-winners for the month will be added to the drawing the next month.
No purchase is necessary to enter; complete rules and regulations can be obtained from your local CENTURY 21 Professional or on line at CENTURY21.com on the Connect 2 the 1 icon starting April 1st.
So double up those chances ... be sure to have your Purchase and Sale Offer written and accepted by April 30, 2010, and close by June 30, 2010, to receive your tax credit from Uncle Sam; then be sure to enter our CENTURY 21 Connect 2 the 1 Campaign for a chance at more money! Talk to your CENTURY 21 Professional today; and, as always, we're here to answer any questions for you, so give us a call!
So, how do you enter? You can enter by 3 simple ways: 1) List your home for sale by your CENTURY 21 Professional during the campaign period. 2) Ask your CENTURY 21 Professional for an entry form, fill it out and give it back to them to send in for you. 3) Write your name, complete address including zip code, phone number, e-mail address and age (must be 21 to enter contest) on a 3x5 piece of paper and mail it to: "$8,000 List Your Home Sweepstakes", c/o ePrize, LLC, PO Box 5046, Kalamazoo, MI, 49003-5046. Only one entry per person during the campaign and non-winners for the month will be added to the drawing the next month.
No purchase is necessary to enter; complete rules and regulations can be obtained from your local CENTURY 21 Professional or on line at CENTURY21.com on the Connect 2 the 1 icon starting April 1st.
So double up those chances ... be sure to have your Purchase and Sale Offer written and accepted by April 30, 2010, and close by June 30, 2010, to receive your tax credit from Uncle Sam; then be sure to enter our CENTURY 21 Connect 2 the 1 Campaign for a chance at more money! Talk to your CENTURY 21 Professional today; and, as always, we're here to answer any questions for you, so give us a call!
Wednesday, November 11, 2009
Whew! 1st Time Home Buyer Credit Extended
It was almost like standing in line for the restroom at the packed stadium ... standing on one foot and then the other just praying that the line moves quickly ... so that our Buyers can close those short sales in time to get their $8,000 first time Buyer Credit. With banks and lenders moving glacially slow to approve short sales, and banks demanding more and more information and requirements from Buyers, it was looking very "iffy" for the deadline. However, on Friday the 6th, all that was averted when President Obama signed the bill extending the tax credits to contracts signed by April 30, 2010, and closing by June 30th. Thank you! Thank you!
Also included in the bill was a broadening of the requirements. Now the income limits have been increased to $125,000 per year for individuals and $225,000 for couples. It has still remained at a 10% of the purchase price, however, so it's only an $8,000 tax credit for anyone purchasing a home at a price of $80,000 or more. Some of the mobile homes in parks will only get a 10% credit, depending on their purchase price. The credit, however, also extends to Buyers who purchase an RV as their living quarters ... at 10% of the purchase price.
Additionally, written into the bill is now a $6,500 tax credit for Buyers who've owned their current home at least five of the last eight years. So, we can now include move-up or down-sizing Buyers, too. Now is a great time to buy a house, and with the government allowing us more time to get the transactions closed, it takes the pressure cooker lid off the process. Call anytime for further details.
Also included in the bill was a broadening of the requirements. Now the income limits have been increased to $125,000 per year for individuals and $225,000 for couples. It has still remained at a 10% of the purchase price, however, so it's only an $8,000 tax credit for anyone purchasing a home at a price of $80,000 or more. Some of the mobile homes in parks will only get a 10% credit, depending on their purchase price. The credit, however, also extends to Buyers who purchase an RV as their living quarters ... at 10% of the purchase price.
Additionally, written into the bill is now a $6,500 tax credit for Buyers who've owned their current home at least five of the last eight years. So, we can now include move-up or down-sizing Buyers, too. Now is a great time to buy a house, and with the government allowing us more time to get the transactions closed, it takes the pressure cooker lid off the process. Call anytime for further details.
Friday, May 8, 2009
The Numbers are Showing Good News for the Market
The Northwest Multiple Listing Service released their latest numbers and it looks like great news for the area. The reported pending sales for April was up 11.4% compared to 12 months ago and rose 21.3% over March. Brokers reported 5,372 pending sales for King, Snohomish, Pierce and Kitsap Counties which is the first time the number cracked the 5,000 level since August of 2007.
So, what do the numbers mean? Basically it looks like the inventory is shrinking ... good news ... and Buyers are finally getting off the fence because of the $8,000 First Time Buyer incentive from the Government, extremely low interest rates and bottom line prices on homes. So, if you are a Buyer waiting for the "bottom" ... the time is now to dive into the pool before the water in the pool gets shallower.
And, do you qualify for the first time Home Buyer Credit? IF you have not owned a primary residence or purchased a primary residence within the last 3 years and IF your net adjusted income is $75,000 or less ($150,000 for a couple), you may be eligible. Check with your Lenders now and it's always a good idea to check with your tax expert, too.
Average prices for a single family residence in King County is now $417,500 and in Snohomish County at $316,271 according to the NWMLS. And, the FHA insured loan limits are now at $719,000 so there's plenty of inventory for a 3.5% down payment through an FHA loan. The Feds may be taking a look at this number shortly, so get your oar in the water now.
As always, if you need a referral to a good Lender or want more information, please give us a call.
So, what do the numbers mean? Basically it looks like the inventory is shrinking ... good news ... and Buyers are finally getting off the fence because of the $8,000 First Time Buyer incentive from the Government, extremely low interest rates and bottom line prices on homes. So, if you are a Buyer waiting for the "bottom" ... the time is now to dive into the pool before the water in the pool gets shallower.
And, do you qualify for the first time Home Buyer Credit? IF you have not owned a primary residence or purchased a primary residence within the last 3 years and IF your net adjusted income is $75,000 or less ($150,000 for a couple), you may be eligible. Check with your Lenders now and it's always a good idea to check with your tax expert, too.
Average prices for a single family residence in King County is now $417,500 and in Snohomish County at $316,271 according to the NWMLS. And, the FHA insured loan limits are now at $719,000 so there's plenty of inventory for a 3.5% down payment through an FHA loan. The Feds may be taking a look at this number shortly, so get your oar in the water now.
As always, if you need a referral to a good Lender or want more information, please give us a call.
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