| For the first time in 18 months, home prices increased year-over-year in February, a turnaround that RE/MAX said signifies a "very active selling season." A RE/MAX housing survey released Wednesday shows national home prices in February rose 1.1% from a year earlier and 1.4% from January to $171,881. Of the 53 metro areas included in the survey, 24 experienced price increases from February 2011, including: Miami (20.5%), Orlando, Fla. (15.8%), Phoenix (12.5%), Tampa, Fla. (11.1%), St. Louis (9.8%) and Detroit (8.9%). Home sales in February rose 8.7% from a year earlier, continuing a trend of eight straight months above the previous year's total. February home sales climbed 8.1% above sales in January. Of the metros, 45 saw increases over February 2011, with 26 jumping double digits, including: Albuquerque, N.M. (46.6%), Providence, R.I. (36.7%), Raleigh, N.C. (33.8%), Boston (30.5%) and Chicago (27.5%). “All the data is pointing to a very active spring and summer selling season this year, which is great news for a recovering housing market,” RE/MAX Chief Executive Margaret Kelly said. “As sales numbers have trended higher for several months, we have been anticipating a turnaround in home prices, and it looks like it’s finally starting.” Analysts at Barclays Capital on Monday said the homebuilder spring selling season has "arrived strongly enough to kick-start a positive feedback loop in housing for the first time since 2005." Properties sold in February stood on the market for an average of 103 days, the same as in January and a year earlier, according to RE/MAX findings. In the last 12 months, the average fell below 90 in only two months — 88 in both July and September.  |
Tuesday, March 20, 2012
Home Prices Rise
Monday, March 19, 2012
Real Estate Buyers Tips
If you're looking for ways to ensure your buyer offers get accepted the first time, every time then keep reading.
Here I share these 20 tips for turning offers into closed deals:
1. Offer above list price.2. Have the buyer write an emotional letter stating why they want the property.3. Ask the listing agent what they want to see in an acceptable offer.4. Don’t bug the listing agent by calling hourly.5. Offer to pay cash, and submit a verification of funds.6. Offer substantial earnest monies.7. Make the earnest money nonrefundable.8. Shorten inspection periods.9. Offer to buy the property "as-is."10. Waive the appraisal contingency.11. Offer to pay any HOA transfer fees.12. Waive any qualifying contingencies.13. Use the listing agent’s title company.14. Have the buyer pay for the home warranty.15. Don’t ask the seller for any buyer closing costs.16. Offer to help the seller move.17. Be present when the offer is presented to the seller.18. Use an escalation clause that outbids other offers. Cap the increase and ceiling amounts, and ask for a copy of the best offer.19. Ask the listing agent what other offers have been received and when will they be presented.20. Be 25 percent more assertive than usual.
Monday, February 6, 2012
REO'S and Foreclosures vs Rental Market
After an extended period of talking about selling off their massive inventory of foreclosed properties (Real Estate Owned properties, or REOs), the Federal Housing Finance Agency today announced the kickoff to their initiative to sell their inventory to investors in an effort to turn them into rental properties to serve the new generation of renters, many of whom are former homeowners. The vision is to reduce the number of vacant homes and increase the availability of rental units as the market shifts.
The initiative is aimed at the areas hit hardest by foreclosures, where entire streets are sitting vacant as the virus of foreclosures has hit – with one house getting foreclosed upon then becoming vacant, pulling the values of surrounding homes down as it sits on the market at a slashed rate, then another home is foreclosed upon and goes vacant, pulling values down even more, and so on and so forth. These undesirable areas could theoretically be improved as they are bought by investors through the government.
FHFA is now allowing interested investors to pre-qualify for the program and ultimately, investors will be able to invest in pools of foreclosed properties, with the agreement that they will turn the properties into listings for a predetermined number of years.
The FHFA said in a statement, “This rental period could provide relief for local housing markets that continue to be depressed by the volume of foreclosed properties, and provide additional rental options to certain markets. Pre-qualification ensures investors will have the financial capacity and operational expertise to manage properties in a way that is conducive to the stabilization of communities hard hit by the housing downturn.”
FHFA Acting Director Edward J. DeMarco said, “This is an important step toward increasing private investment in foreclosed properties to maximize value and stabilize communities. I am grateful for the collaborative effort by the many stakeholders including investors, nonprofit organizations, and state and local government officials, who have worked together on this Initiative.”
The initiative is aimed at the areas hit hardest by foreclosures, where entire streets are sitting vacant as the virus of foreclosures has hit – with one house getting foreclosed upon then becoming vacant, pulling the values of surrounding homes down as it sits on the market at a slashed rate, then another home is foreclosed upon and goes vacant, pulling values down even more, and so on and so forth. These undesirable areas could theoretically be improved as they are bought by investors through the government.
FHFA is now allowing interested investors to pre-qualify for the program and ultimately, investors will be able to invest in pools of foreclosed properties, with the agreement that they will turn the properties into listings for a predetermined number of years.
The FHFA said in a statement, “This rental period could provide relief for local housing markets that continue to be depressed by the volume of foreclosed properties, and provide additional rental options to certain markets. Pre-qualification ensures investors will have the financial capacity and operational expertise to manage properties in a way that is conducive to the stabilization of communities hard hit by the housing downturn.”
FHFA Acting Director Edward J. DeMarco said, “This is an important step toward increasing private investment in foreclosed properties to maximize value and stabilize communities. I am grateful for the collaborative effort by the many stakeholders including investors, nonprofit organizations, and state and local government officials, who have worked together on this Initiative.”
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