Selling a house quickly in the present real estate market has become a very difficult task for home sellers. It is very common now for homes listed for sale to stay on the market for 90 days or more, even after the seller lowers the asking price.
The sub-prime and adjustable rate market has created a domino effect within the housing industry. More homes are being flooded into the pool of available housing inventory with declining values. This gives any prospective home buyer more options to pick and choose what they will buy and more negotiation power to deal with sellers who may not be in the best position to hold out for the price wanted for the house due to an inability to continue to make payments that have adjusted too high or they are in the midst of a foreclosure.
It’s a buyer’s market and any seller wanting to quickly sell a home cannot just rely on the old traditional methods of listing a home for sale and having an open house and buyers then line up to purchase.
So what can a seller do to ensure the best and quickest chance to sell a home and get the best price? Below are some untraditional methods that should be considered and that have been bringing quick results. Note the emphasis is on non-traditional methods of sale. Sellers must get outside the box and do things differently if they want better results. Remember Albert Einstein’s definition of insanity “doing the same thing over and over again and expecting a different result”.
Stage the property. When a home looks like it is occupied and set up with appropriate furniture and etc., it makes the home much more appealing and motivates the prospective buyer to envision how the home would look if they lived there. This makes the setting seem as if they are already in the home. It also encourages an offer. If you can’t stage it yourself there are professional stagers that are readily available and can help you get the most out of the staging experience. The writer of this article has used stagers to assist in selling homes he purchased and sold. The most recent home stager helped him realize a profit of $61,000. Stagers in your area can be found by going to www.stagedhomes.com.
Offer real estate sales agents a commission of 7% if they bring a qualified buyer ready and able to purchase the property at the asking price within a 30 day period. Seven percent may sound like a lot but, if your home moves within 30 days, the commission is more than worth it in this market. The intent is to create motivation for buyer traffic. If an offer comes in less than the asking price you can always negotiate the price as well as the commission since your terms were not met initially. The point is to get offers moving on your property.
Offer seller financing. If your property has substantial equity and you can afford to carry a mortgage on a portion of the property, then assist the buyer to buy the home with seller financing. This can be especially beneficial if, as the seller, you don’t need all the money right now. In addition, it can help with any taxes that would have been paid had you received the money in a lump sum. This can also create an income stream for the in the future. By offering seller financing it expands the buying pool of possible buyers and can move the house much quicker. Of course, one must take precautions to ensure that the buyer is qualified and will be able to make the monthly payments as they come due.
Use government money to sell your home. There is an abundance of free money available for first time home buyers through several federal, state and local government entities for down payment assistance. Check with your city’s local housing administration office. They often have a list or know of a list of buyers who have already been provided with down payment assistance certificates with values up to $50,000 or more. These are used in conjunction with local lenders who provide loans to these home buyers. If you are willing work with the agencies they can provide you with a quick method of possibly selling your home.
Down payment assistance programs can be the only medium needed to sell a home quickly if the seller is willing to cooperate with the government agency or non-profit program providing service. Click www.housingamericans.com/firsttimebuyer for full details.
Roy Landers is real estate attorney and broker with more than twenty years experience. He can be reached at roylanders@housingamericans.com or call 619-296-1393
Wednesday, January 23, 2008
Tuesday, January 22, 2008
Myths About First Time Home Buying
Rumors, rumors and myths about the current real estate market being a bad time for home buyers are just that. Rumors and myths. If you listen to the media and those who make their money hawking the doom and destruction of the economy based, in large part based on the subprime and adjustable rate failures, you will buy into the opinions that "right now" is a very bad time to buy real estate.
Nothing could be further from the truth. Its a bad time to buy real estate any time if you aren't careful and don't understand the market and don't have a game plan when you buy. If you understand a few things about the market and the psychology of the people who make the real estate market tick - buyers and sellers- you can just about predict and do whatever you want to individually. You do have to know reality from the myths.
Right now is a good time to buy real estate if you are in the market for a single family home. Why? Well lets look at the realities.
Nothing could be further from the truth. Its a bad time to buy real estate any time if you aren't careful and don't understand the market and don't have a game plan when you buy. If you understand a few things about the market and the psychology of the people who make the real estate market tick - buyers and sellers- you can just about predict and do whatever you want to individually. You do have to know reality from the myths.
Right now is a good time to buy real estate if you are in the market for a single family home. Why? Well lets look at the realities.
- Foreclosures are increasing day by day, thus filling the market with an inventory of homes that have declined in value and is forcing banks to sell those properties for pennies on a dollar.
- Several thousand more homes with adjustable rate loans are scheduled to adjust upwards within the next two years flooding the market with even more homes that home owners can't afford to pay the mortgage on and at values less than the money owed on them.
- Large investors that bought hugh mortgage portfolios of subprime loans are losing their shirts, so to speak, and this has an adverse affect on the stock market as well.
Given these facts and others that are too numerous to include in this blog, there is a glut and will be a greater glut of homes on the market for sale. That means more supply. When there is more supply the demanders (home buyers) have more choices about what they are buying and can negotiate for a better deal. What it all boils down to is home buyers are now in control. They can call the shots. That is if they can look beyond the myths that keep so many deserving home buyers from branching out to stick their feet in the waters of the real estate market.
What are these myths?
1. You have to have 15-20% down payment in order to get a home in this market. The truth is there are several options that first time home buyers have that allows them to get into a home with no money down or very little money down - as low as 3% down and that can be gifted from a family member or some other source. There are numerous programs offered through the federal goverment's FHA programs that provide for no down and low down payments and below market interest rates. These can be found at http://www.efanniemae.com/.
2. Without credit you can't buy a home. Of course credit is very important but there are ways to buy a home even without credit. Once again the federal government provides a way if one really wants to buy a home, especially for the first timer. FHA's MyCommunityMortgage provides for 30-40 year fixed rate loans with credit flexibility with up to 100% financing.
3. Down payment help sources are only for low income earners. One more myth. There are several down payment assistance programs that help with down payments for home buyers regardless of their income level. In fact many of these programs don't even require that the home buyer be a first time home buyer (defined as a home buyer who hasn't purchased a home within the last three years). Some non-profit agencies have hundreds of thousands of dollars that they are providing to home buyers to assist them with down payment money. Nonprofit agencies such as the Nehemiah Corporation provide $25,000 or more down payment assistance for home buyers needing assistance. Check them out at http://www.nehemiahcorporation.org/.
Don't let the myths about home buying in the present market discourage you from taking advantage of what in truth is a real estate boom for the home buying market.
Contact us for more information about down payment assistance for the home buyer at http://www.housingamericans.com/ or email roylanders@housingamericans.com with any questions.
Tuesday, January 8, 2008
The Importance of having the right team for the First Time Home Buyer
To all potential home buyers:
This step in our continued series of helping to educate and assist you in your home buying process, suggests the team you should have working for you when getting seriously involved in the home buying process.
Every real estate transaction is like a journey. It starts from where you begin the destination of becoming a homeowner and stops when you have found your dream home and closed the deal and are finally in your own home enjoying the many, many pleasures and benefits that home ownership provides.
Why should you have a team?
It is the best way to ensure that you have covered all steps and have provided the maximum amount of protection for your home ownership investment process. You can certainly do all things yourself to acquire your home but it often adds more stress than is necessary and since the team is working for you at little or no cost it just doesn’t make sense to go it alone.
There are several members that should be on your home buying team. Certainly, you as the buyer is a given. Maybe, should the circumstances warrant, a Realtor will act as sort of a tour guide, the lender in a sense holds the map, and there are others who will represent landmarks along the way.
It is important that you know the basics of what your team should consist of and their duties and responsibilities along the road to home ownership.
Without question the team members should consist of people who are qualified to assist you and offer the proper leadership when necessary.
Here are the basic team members you should have…………….
A Buyer’s Agent - This person is a real estate agent who specializes in just representing buyers. This agent will be your guide toward each step in finding the kind of home that meets your predetermined guidelines for what you want in a home.
A buyer's agent concentrates on the needs of the buyer only and therefore should never be distracted with attempting to represent a buyer and a seller at the same time. Such team members loyalty and devotion is solely to you the buyer.
A lender/mortgage broker – The lender plays a key role in getting to the final destination of walking into the doorway of your home. There are many trails to choose from here as well. A good lender will shop your loan needs to find the very best financing for you, including making sure that you are not surprised later with uninformed increases in rates of interest and monthly payments. The bottom line is your lender or mortgage broker should only recommend a loan commitment that is right for your needs, not their own motivations for commissions or a sale.
Your Inspectors – A licensed inspector will help the team know what obstacles to overcome near the top. Choosing the right property inspector is very important and helps the rest of your team make good informed decisions to guide you along the way. For instance, if there are repairs that need to be done prior to closing your real estate transaction there may be a need for further negotiation with the seller to make concessions on the purchase price to pay for the repairs directly or other changes.
In some circumstances, an inspection may suggest that you not continue down the road to purchase at all and just not buy the property. Under these circumstances head in another direction and find another property that more aptly fits your needs. This is especially true in situations where the inspector has found things like mold or other serious problems with the prospective property.
Your Title Company- The Title Company plays a vital role in the home buying transaction. The Title Company’s responsibility is to be sure that you are getting what you bargained for – a home that will be free and clear of title problems and can be recorded in your name without any claim against it later from somebody else. The Title Company will run title searches to be sure that all is clear. If there are liens on the property such as IRS taxes, unpaid property taxes or judgments, this will be found by the title company. You need to know these things in order to make a decision whether to continue with the purchase.
Also without a title report clearing the way for you to purchase the property free from other claims, you cannot get clear title and the title company will not issue a title insurance policy to protect you. You never want to purchase real property without a title insurance policy covering your purchase.
Your Homeowner’s Insurance Company – All of your homeowner’s insurance needs must be planned prior to closing the real estate transaction. This policy should insure your home against fire and other hazards and be in place before the closing of escrow on the property.
Some other things that should be covered in the process…….
Home Warranty Policy – A home warranty should be part of the real estate purchase process. A warranty will generally provide coverage for at least the first year after purchasing a home and will cover such things as plumbing, electrical and major appliances such as dishwashers already installed in the home. These warranties are usually provided by the seller as part of the selling process.
Pest Control Inspection – The major pest that should be looked out for when buying a home is termites. Termites are generally present in every wood structure. The question is how bad are they? Always have a pest inspection by a licensed pest control person or company.
Buying your first home should be a joyful experience. However, without the right team on your side it can be a nightmare.
Take your time, get the facts and be sure you ask questions and get straight answers. Its too late after escrow has closed. If you'd like more information about the first time home buyer experience hop on over to our website at http://www.housingamericans.com/.
Check our blog regularly for all your home buying information needs.
Roy
This step in our continued series of helping to educate and assist you in your home buying process, suggests the team you should have working for you when getting seriously involved in the home buying process.
Every real estate transaction is like a journey. It starts from where you begin the destination of becoming a homeowner and stops when you have found your dream home and closed the deal and are finally in your own home enjoying the many, many pleasures and benefits that home ownership provides.
Why should you have a team?
It is the best way to ensure that you have covered all steps and have provided the maximum amount of protection for your home ownership investment process. You can certainly do all things yourself to acquire your home but it often adds more stress than is necessary and since the team is working for you at little or no cost it just doesn’t make sense to go it alone.
There are several members that should be on your home buying team. Certainly, you as the buyer is a given. Maybe, should the circumstances warrant, a Realtor will act as sort of a tour guide, the lender in a sense holds the map, and there are others who will represent landmarks along the way.
It is important that you know the basics of what your team should consist of and their duties and responsibilities along the road to home ownership.
Without question the team members should consist of people who are qualified to assist you and offer the proper leadership when necessary.
Here are the basic team members you should have…………….
A Buyer’s Agent - This person is a real estate agent who specializes in just representing buyers. This agent will be your guide toward each step in finding the kind of home that meets your predetermined guidelines for what you want in a home.
A buyer's agent concentrates on the needs of the buyer only and therefore should never be distracted with attempting to represent a buyer and a seller at the same time. Such team members loyalty and devotion is solely to you the buyer.
A lender/mortgage broker – The lender plays a key role in getting to the final destination of walking into the doorway of your home. There are many trails to choose from here as well. A good lender will shop your loan needs to find the very best financing for you, including making sure that you are not surprised later with uninformed increases in rates of interest and monthly payments. The bottom line is your lender or mortgage broker should only recommend a loan commitment that is right for your needs, not their own motivations for commissions or a sale.
Your Inspectors – A licensed inspector will help the team know what obstacles to overcome near the top. Choosing the right property inspector is very important and helps the rest of your team make good informed decisions to guide you along the way. For instance, if there are repairs that need to be done prior to closing your real estate transaction there may be a need for further negotiation with the seller to make concessions on the purchase price to pay for the repairs directly or other changes.
In some circumstances, an inspection may suggest that you not continue down the road to purchase at all and just not buy the property. Under these circumstances head in another direction and find another property that more aptly fits your needs. This is especially true in situations where the inspector has found things like mold or other serious problems with the prospective property.
Your Title Company- The Title Company plays a vital role in the home buying transaction. The Title Company’s responsibility is to be sure that you are getting what you bargained for – a home that will be free and clear of title problems and can be recorded in your name without any claim against it later from somebody else. The Title Company will run title searches to be sure that all is clear. If there are liens on the property such as IRS taxes, unpaid property taxes or judgments, this will be found by the title company. You need to know these things in order to make a decision whether to continue with the purchase.
Also without a title report clearing the way for you to purchase the property free from other claims, you cannot get clear title and the title company will not issue a title insurance policy to protect you. You never want to purchase real property without a title insurance policy covering your purchase.
Your Homeowner’s Insurance Company – All of your homeowner’s insurance needs must be planned prior to closing the real estate transaction. This policy should insure your home against fire and other hazards and be in place before the closing of escrow on the property.
Some other things that should be covered in the process…….
Home Warranty Policy – A home warranty should be part of the real estate purchase process. A warranty will generally provide coverage for at least the first year after purchasing a home and will cover such things as plumbing, electrical and major appliances such as dishwashers already installed in the home. These warranties are usually provided by the seller as part of the selling process.
Pest Control Inspection – The major pest that should be looked out for when buying a home is termites. Termites are generally present in every wood structure. The question is how bad are they? Always have a pest inspection by a licensed pest control person or company.
Buying your first home should be a joyful experience. However, without the right team on your side it can be a nightmare.
Take your time, get the facts and be sure you ask questions and get straight answers. Its too late after escrow has closed. If you'd like more information about the first time home buyer experience hop on over to our website at http://www.housingamericans.com/.
Check our blog regularly for all your home buying information needs.
Roy
Monday, December 31, 2007
IT'S A BUYERS HOME MARKET IN 2008
Due to the sub-prime melt down in in the real estate market, record foreclosures are being filed and hundreds of homes are flooding the market. Prices of homes have plunged and are still descending. Home builders , failing to foresee the coming imploding of the housing market, overbuilt and now they can't unload their inventories without making huge concessions on price and offering big dollar incentives to anyone remotely interested in buying one of their homes.
What does this all add up to? A BOOMING BUYERS MARKET IN 2008. Real estate is at bargain rates right now. Despite the doom and gloom that the media portrays, there is "real gold" in the mountains of real estatedom. You just need to know where to dig so to speak.
Real estate is in a discount mode throughout America. It hasn't been this way in a very long time. What this all adds up to is "a great deal in a great time" for first time home buyers or those who have been out of the market for a time and want to get back in.
It's as simply as supply and demand. There is a huge supply of residential real estate on hand and no body's buying like they use to. This creates three factors that work in favor of prospective home buyers.
What does this all add up to? A BOOMING BUYERS MARKET IN 2008. Real estate is at bargain rates right now. Despite the doom and gloom that the media portrays, there is "real gold" in the mountains of real estatedom. You just need to know where to dig so to speak.
Real estate is in a discount mode throughout America. It hasn't been this way in a very long time. What this all adds up to is "a great deal in a great time" for first time home buyers or those who have been out of the market for a time and want to get back in.
It's as simply as supply and demand. There is a huge supply of residential real estate on hand and no body's buying like they use to. This creates three factors that work in favor of prospective home buyers.
- Very motivated sellers greatly outnumber willing buyers in just about every corner of the United States.
- Mortgage rates are still reasonably low.
- There is a huge amount of down payment assistance for first time home buyers and others who have been out of the housing market for at least three years.
These three factors make for a very strong residential buyers market in 2008. Now is not the time to wait. It is the time to buy. It is the time to make your dreams of home ownership come true. It is a proven historical fact that the best time to make a move and acquire good assets, like houses, is when others are holding back.
Home ownership will help you increase your estate and you can stop making your landlord rich paying his/her mortgage and start to build a nest egg for yourself.
Even the down payment, normally the largest obstacle for most first time home buyers to overcome, has been removed. Up to $50,000 or more of FREE down payment assistance is now available to any first time home buyer (classified as one who has not owned an interest in real estate in the last three years). Wherever you live there is a down payment assistance program that likely exists that you can tap into and get started on the road to home ownership.
Generally you will need to obtain an approval certificate from a local government or housing agency that administers these funds. Once you've applied and been approved you will be given a certificate indicating the amount of down payment assistance you will be given. Once this occurs a bank, depending on your ability to show that you can afford the monthly payment, will gladly provide a low interest loan for you. There are several banks already working with local government and community agencies in connection with these loans.
THINK THESE PROGRAMS ARE ONLY FOR LOW INCOME PERSONS?
Think again. Many of the down payment assistance programs have no income restrictions whatsoever. You just need to take massive action and take advantage of the market. Its in your favor as a first time home buyer. Don't be left out. Make your dream of home ownership come true.
For additional details contact roylanders@housingamericans.com www.housingamericans.com
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