Overpriced Homes-Sell Slower and For Less If there’s anything we can take away from the plethora of Bank Owned Foreclosures is they certainly know how to price a home to move!
I maintain that you almost always shoot yourself in the foot by overpricing your home. Your home will almost always sale at or above market value by pricing at or below market value.
So why is that? Well think back at when YOU were buying a home. Remember when a “great deal” came on the market and everybody and their agents were “swarming” to the open house? You placed your offer only to find out their were 10 other offers and they were going above the asking price? This “bargain price” created an auction affect and got people excited. THAT is how banks are pricing their homes and if you want your home to move quickly and for the most amount of money, this is a winning strategy.
So why don’t sellers do it? I think it’s because there’s a little voice inside of our head (and pocketbook) that says “what if”.
“What if”- I can get $50K over market value. (even if someone were excited enough about your home to pay $50K over appraised value, their lender won’t loan the money if the value isn’t there. No loan, no buyer)
“What if”- I don’t get multiple offers and I only get one offer (May be still overpriced!)
Often fear (and greed) hold us back from making smart choices! Don’t feel bad though, even Real Estate Agents are guilty of senselessly overpricing their homes. Somehow when it’s our turn to sell all of our “market knowledge” becomes goo and leaks out of our ears! It’s like the hairdresser with bad hair!
The bottom line is, almost always, an Over Priced House will sit on the market longer and sell for less than it should have had it been priced strategically from the beginning.
Copyright © 2010 By Stephen Munson,Munson RealtyPasadena|Overpriced Homes-Sell Slower and For Less*overpriced homes,overpriced house
Saturday, August 7, 2010
Friday, August 6, 2010
Mortgage Rate Falls Under 4.5%
Freddie Mac reports that long-term mortgage rates moved south again this week.
Interest on 30-year fixed loans hit a new low of 4.49 percent, compared to 4.54 percent last week and 5.22 percent a year ago; and the 15-year mortgage landed at 3.95 percent, down from 4 percent last week and 4.63 percent a year ago.
Five-year adjustable-rate mortgages reached a new low of 3.63 percent, down from 3.76 percent last week and 4.73 percent a year ago; while one-year ARMs fell to 3.55 percent from 3.64 percent last week and 4.78 percent a year ago.
Source: The Wall Street Journal, Amy Hoak and Nick Timiraos (08/06/10)
Interest on 30-year fixed loans hit a new low of 4.49 percent, compared to 4.54 percent last week and 5.22 percent a year ago; and the 15-year mortgage landed at 3.95 percent, down from 4 percent last week and 4.63 percent a year ago.
Five-year adjustable-rate mortgages reached a new low of 3.63 percent, down from 3.76 percent last week and 4.73 percent a year ago; while one-year ARMs fell to 3.55 percent from 3.64 percent last week and 4.78 percent a year ago.
Source: The Wall Street Journal, Amy Hoak and Nick Timiraos (08/06/10)
Monday, August 2, 2010
Prudential Real Estate Ranks Highest for Seller Satisfaction
J.D. Power and Associates announced July 28 that the Prudential Real Estate Network ranked “Highest Overall Satisfaction for Home Sellers among National Full Service Real Estate Firms” in J.D. Power and Associates' 2010 Home Buyer/Seller Study. This marks the second time in three years that the Network ranked highest in seller satisfaction.
The annual study measures customer satisfaction of home sellers and buyers with major national real estate companies. Overall satisfaction is determined by examining four factors for the home-selling experience: agent (44%); marketing (30%); office (15%); and services (11%). Among home sellers, Prudential Real Estate scored highest on a 1,000-point scale and received particularly high ratings from customers in the marketing and agent factors.
PRERS Chairman Jim Mallozzi said the award speaks for the quality and consistency of the Prudential Real Estate Network. “Affiliate to affiliate, our sales professionals are the local-market experts who market and price homes right, while providing attentive service,” Mallozzi said.
The annual study measures customer satisfaction of home sellers and buyers with major national real estate companies. Overall satisfaction is determined by examining four factors for the home-selling experience: agent (44%); marketing (30%); office (15%); and services (11%). Among home sellers, Prudential Real Estate scored highest on a 1,000-point scale and received particularly high ratings from customers in the marketing and agent factors.
PRERS Chairman Jim Mallozzi said the award speaks for the quality and consistency of the Prudential Real Estate Network. “Affiliate to affiliate, our sales professionals are the local-market experts who market and price homes right, while providing attentive service,” Mallozzi said.
Saturday, July 31, 2010
Finding a Realtor® by Accident
When someone decides it is time to sell their home, they interview several Realtors® from different companies to determine which one is best for them. They want someone who will represent them and someone they feel will do an effective job at marketing their home.
However, when someone decides to buy a home, they usually end up with their Realtor® through sheer accident. Why don't home buyers search for a Realtor® the same way that home sellers do?
Instead, homebuyers usually end up with a Realtor® as a result of answering an advertisement. The advertisement will give a brief summary of a home available for sale along with the price, but it says nothing at all about the Realtor.
So...
...does it really make a difference?
Listing Agents and Selling Agents
You see, there are two "sides" to every sale. The listing side and the selling side. Most deals have an agent representing each side, so there are generally two agents involved The seller's side is represented by the listing agent. The buyer's side is represented by the selling agent (also known as the buyer's agent).
Agents can deal with both buyers and sellers, but the majority tend to focus their efforts on one or the other. Some even exclusively handle either buyers or sellers.
So what should you do?
We simply recommend that you take as much care to hire a real estate agent as you would for any other professional. Ask questions. Ask about education, experience, and focus.
After all, buying your next house is probably the biggest purchase you've ever made in your life. Does it make more sense to find your agent by accident...or by design?
You can find me by Design. I'm Thomas J. Farris of theSDRealtor.com, Let me help you with any of your real estate needs. thomasjfarris@gmail.com
However, when someone decides to buy a home, they usually end up with their Realtor® through sheer accident. Why don't home buyers search for a Realtor® the same way that home sellers do?
Instead, homebuyers usually end up with a Realtor® as a result of answering an advertisement. The advertisement will give a brief summary of a home available for sale along with the price, but it says nothing at all about the Realtor.
So...
...does it really make a difference?
Listing Agents and Selling Agents
You see, there are two "sides" to every sale. The listing side and the selling side. Most deals have an agent representing each side, so there are generally two agents involved The seller's side is represented by the listing agent. The buyer's side is represented by the selling agent (also known as the buyer's agent).
Agents can deal with both buyers and sellers, but the majority tend to focus their efforts on one or the other. Some even exclusively handle either buyers or sellers.
So what should you do?
We simply recommend that you take as much care to hire a real estate agent as you would for any other professional. Ask questions. Ask about education, experience, and focus.
After all, buying your next house is probably the biggest purchase you've ever made in your life. Does it make more sense to find your agent by accident...or by design?
You can find me by Design. I'm Thomas J. Farris of theSDRealtor.com, Let me help you with any of your real estate needs. thomasjfarris@gmail.com
Friday, July 30, 2010
Record Lows Continue For Mortgage Rates
Record Lows Continue for Mortgage Rates
The 30-year fixed mortgage rate fell to a new low of 4.54 percent this week from 4.56 percent last week and an average of 5.25 percent a year ago.
The 15-year fixed loan rate also hit a record low of 4 percent, down from 4.03 percent a week ago and 4.69 percent last year. The five-year adjustable-rate mortgage averaged 3.76 percent, compared to 3.79 percent last week and 4.75 percent a year earlier; and one-year ARMs averaged 3.64 percent, down from 3.7 percent and 4.80 percent, respectively.
Source: The Wall Street Journal, Nathan Becker (07/30/10)
The 30-year fixed mortgage rate fell to a new low of 4.54 percent this week from 4.56 percent last week and an average of 5.25 percent a year ago.
The 15-year fixed loan rate also hit a record low of 4 percent, down from 4.03 percent a week ago and 4.69 percent last year. The five-year adjustable-rate mortgage averaged 3.76 percent, compared to 3.79 percent last week and 4.75 percent a year earlier; and one-year ARMs averaged 3.64 percent, down from 3.7 percent and 4.80 percent, respectively.
Source: The Wall Street Journal, Nathan Becker (07/30/10)
Thursday, July 29, 2010
Home Affordability the Best In Decades
There is mounting evidence that the residential real estate prices are picking up momentum, even though naysayers continue to suggest another sharp drop is just around the corner.
Tuesday's Case-Shiller home price index shows that San Diego has seen prices increase 12.4 percent in the past 12 months, second only to San Francisco among the top 20 metropolitan areas in the country.
So, set aside the real estate bulls and bears that have emotional opinions about where prices may be headed. Instead, what do portfolio managers who run real estate mutual funds think about the current market conditions?
Remember, these people can't just hope prices go up or down, they have to make investing decisions to protect their portfolios both when prices are rising or falling.
Daniel Kelley is the lead real estate analyst and portfolio manager of the Fidelity Select Construction and Housing Portfolio.
"Having just gone through a potentially once-in-a-lifetime down market, there is a bright light. Home affordability is the best in decades. In fact, on average, today's homebuyers have the lowest mortgage payments as a percentage of income in 30 years," wrote Kelley in a recent research report.
He also points out that inventories of homes for sale are at 40-year lows, meaning that homebuilders could be at a point where they could actually begin building homes again. The inventory of new homes for sale plunged last month from 9.6 months to just 7.6 months.
"I think well-capitalized public homebuilder companies are particularly well positioned to benefit from any demand improvement. These companies have had to survive through the worst market of our generation and many of the weaker firms went bankrupt," adds Kelley.
He adds that when sales ultimately pick up, new homeowners will be anxious to make their new abodes more livable, meaning trips to Home Depot and Lowe's.
"As the homebuilding rebound gains traction, companies in the building products group should benefit from improved capacity utilization rates. Homeowners looking to put their homes back on the market are frequenting home improvement retailers to make necessary repairs and updates in order to increase the sale price," said Kelley.
What about the commercial real estate situation? Kelley's colleague at Fidelity, Steve Buller, who manages the Real Estate Investment Portfolio, has a different opinion that most observers.
"While some commentators are calling commercial real estate the next shoe to drop, I don't believe it. In fact, you could argue that we've already seen the worst of the commercial real estate crisis.
Last year, commercial real estate prices had fallen roughly 40 percent from the peak. However, commercial real estate property prices have steadily risen, climbing 20 percent since their trough in May 2009," said Buller.
History says that real estate investment trusts -- and the stocks they own - have a tendency to rise months ahead of any actual turnaround in the markets.
When -- as always happens -- this recession comes to an end, many nonbelievers will find themselves left in the dust as markets move back into growth. The only problem, of course, is no one knows exactly when that will happen. - From George Chamberlin
Tuesday's Case-Shiller home price index shows that San Diego has seen prices increase 12.4 percent in the past 12 months, second only to San Francisco among the top 20 metropolitan areas in the country.
So, set aside the real estate bulls and bears that have emotional opinions about where prices may be headed. Instead, what do portfolio managers who run real estate mutual funds think about the current market conditions?
Remember, these people can't just hope prices go up or down, they have to make investing decisions to protect their portfolios both when prices are rising or falling.
Daniel Kelley is the lead real estate analyst and portfolio manager of the Fidelity Select Construction and Housing Portfolio.
"Having just gone through a potentially once-in-a-lifetime down market, there is a bright light. Home affordability is the best in decades. In fact, on average, today's homebuyers have the lowest mortgage payments as a percentage of income in 30 years," wrote Kelley in a recent research report.
He also points out that inventories of homes for sale are at 40-year lows, meaning that homebuilders could be at a point where they could actually begin building homes again. The inventory of new homes for sale plunged last month from 9.6 months to just 7.6 months.
"I think well-capitalized public homebuilder companies are particularly well positioned to benefit from any demand improvement. These companies have had to survive through the worst market of our generation and many of the weaker firms went bankrupt," adds Kelley.
He adds that when sales ultimately pick up, new homeowners will be anxious to make their new abodes more livable, meaning trips to Home Depot and Lowe's.
"As the homebuilding rebound gains traction, companies in the building products group should benefit from improved capacity utilization rates. Homeowners looking to put their homes back on the market are frequenting home improvement retailers to make necessary repairs and updates in order to increase the sale price," said Kelley.
What about the commercial real estate situation? Kelley's colleague at Fidelity, Steve Buller, who manages the Real Estate Investment Portfolio, has a different opinion that most observers.
"While some commentators are calling commercial real estate the next shoe to drop, I don't believe it. In fact, you could argue that we've already seen the worst of the commercial real estate crisis.
Last year, commercial real estate prices had fallen roughly 40 percent from the peak. However, commercial real estate property prices have steadily risen, climbing 20 percent since their trough in May 2009," said Buller.
History says that real estate investment trusts -- and the stocks they own - have a tendency to rise months ahead of any actual turnaround in the markets.
When -- as always happens -- this recession comes to an end, many nonbelievers will find themselves left in the dust as markets move back into growth. The only problem, of course, is no one knows exactly when that will happen. - From George Chamberlin
Wednesday, July 28, 2010
CalHFA loans???
In order to qualify for a CalHFA loan, certain requirements must be met. They are:
•Be a first-time homebuyer.
(CalHFA considers you a first-time homebuyer if you have not owned and occupied your own home during the last 3 years.).
(This requirement is not necessary if the property is located in a Federally designated "Targeted Area*”)
•Have an annual household/family income within CalHFA’s income limits for the family size and county in which the home is located.
•Purchase a home that is within CalHFA’s sales price limits for the family size and county in which the home is located.
•Live in the home you are purchasing for the entire term of the loan, or until the home is sold or refinanced.
•Meet credit, income and loan requirements of the CalHFA lender and the mortgage insurer.
•Be a citizen or other national of the United States or a qualified alien.
•All borrowers must have completed homebuyer education counseling and received a certificate of completion through an eligible homebuyer counseling organization.
◦CalHFA will accept a homebuyer’s education counseling certificate of completion issued through Fannie Mae or Freddie Mac identified counseling administration agencies, mortgage insurance companies, or HUD-approved homebuyer counselors. CalHFA accepts education completion via online, face-to-face, or phone.
■Fannie Mae Homebuyer Counseling Counselors/Administrators Search
■Freddie Mac Homebuyer Counseling Counselors/Administrators Search
■Genworth Homebuyer Counseling Online Option
■HUD-approved Housing Counselors
■U.S. Department of Housing and Urban Development
451 7th Street, S.W., Washington, DC 20410
Telephone: (202) 708-1112
Of course you can always contact me at thomasjfarris@gmail.com and I can help you with any of your Real Estate needs. :-D
•Be a first-time homebuyer.
(CalHFA considers you a first-time homebuyer if you have not owned and occupied your own home during the last 3 years.).
(This requirement is not necessary if the property is located in a Federally designated "Targeted Area*”)
•Have an annual household/family income within CalHFA’s income limits for the family size and county in which the home is located.
•Purchase a home that is within CalHFA’s sales price limits for the family size and county in which the home is located.
•Live in the home you are purchasing for the entire term of the loan, or until the home is sold or refinanced.
•Meet credit, income and loan requirements of the CalHFA lender and the mortgage insurer.
•Be a citizen or other national of the United States or a qualified alien.
•All borrowers must have completed homebuyer education counseling and received a certificate of completion through an eligible homebuyer counseling organization.
◦CalHFA will accept a homebuyer’s education counseling certificate of completion issued through Fannie Mae or Freddie Mac identified counseling administration agencies, mortgage insurance companies, or HUD-approved homebuyer counselors. CalHFA accepts education completion via online, face-to-face, or phone.
■Fannie Mae Homebuyer Counseling Counselors/Administrators Search
■Freddie Mac Homebuyer Counseling Counselors/Administrators Search
■Genworth Homebuyer Counseling Online Option
■HUD-approved Housing Counselors
■U.S. Department of Housing and Urban Development
451 7th Street, S.W., Washington, DC 20410
Telephone: (202) 708-1112
Of course you can always contact me at thomasjfarris@gmail.com and I can help you with any of your Real Estate needs. :-D
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