USDA Funding Update - October 20, 2011

USDA (GRH) FUNDING UPDATE

Why Tons of Buyers Are Screwing Up

Price and Terms. 

Price. Terms. 

I will bet you a 6-pack of Old Milwaukee that if you ask first-time buyers what the term "terms" is that a bunch of them would screw it up, maybe because their buyer agent is a glorified door unlocker who is a payment behind on his car. But that's another post. 

Right now, thousands of buyers across our great land are poisoning their prospective home purchase over an appliance, a repair to an electrical panel, or less than 1% of the price of the home. Because, after all, it is a buyer's market.  What is a buyer's market? Well, to a carrier pigeon buyer agent who won't properly advise their client out of fear of losing them, it is whatever the buyer wants. And typically, the uninitiated buyer will subjugate the seller to their will to get a great deal. And why shouldn't they? Sellers were making buyers waive inspections, come up with extra cash with under appraised homes and equally insane things 5 short years ago. Point conceded. And if buying a home is a tit-for-tat event for you, read no further. But if you want to buy intelligently, read on. 

We got off track in the earlier part of this decade by calling homes great investments. Everyone bought that. Later in the decade, homes became bad investments, and almost nobody bought. So I don't begrudge anyone for taking a wait and see attitude. Yet homes are like insurance. They can behave like investments, but they serve a greater utility- while you hope to never actually use life insurance, you do use your home as a place to live. It isn't a cold asset. You derive utility from it. Live within your means and you are OK, as many prior generations will attest.  

Any honest perusal of my blog will attest to the fact that I have never had a mantra of "Now is the time to buy!" I am rethinking that. 

About a year ago, some guy was featured on Active Rain advising people not to buy a short sale because they were going to miss some narrow window of opportunity for historically low rates. Those rates were higher than they are today. With current rates so low they are starting to resemble Mariano Rivera's earned run average, too many people are missing the train because they want a window seat. They have to dominate the seller or no deal. And that's a shame. Right now, the monthly payment on a 15 year mortgage is just a tad higher than the payment on a 30-year mortgage 3 short years ago. If you throw an extra payment or two in annually, you could pay your house off in 10 years. 

I have witnessed buyers lose fantastic deals on homes that have everything they wanted over a $5000 difference on a $600,000 home. The seller had the temerity to attempt to negotiate. Bad seller. No sweat off my back; I have a home and if my company were going to go under it would have a long time ago. There is no one buyer I need. But these people need a home. They can't justify the move until they have subjugated the seller to their absolute will, and if the seller won't submit, they are banished. The buyer keeps hunting. Here's why that's crazy: the town crier won't announce when the market bottoms out. Nor will he let us know when rates will rise again. 

A 3/8 percent rise in rate over the period of the loan will dwarf that $5000 buyers still want from the seller after rounds of offers and counter offers. The riding mower or the chandelier won't pay that extra money, but many of today's buyers aren't thinking of that- they feel a societal-driven compulsion to chew sellers down ever more. I don't blame them for being this way. I blame their agents for not educating them about local conditions. I blame the NAR for running bland commercials that sound like 1970's era Amway commercials that build trademark recognition and little else. It is only a good deal if the seller actually agrees. If you are making offers on your 3rd or 4th house, wake up- if your agent won't say it, I will. Sellers have never been this motivated. They just dislike being your gimp. Smart business people don't have their trading partner humiliated. Magnanimity is not weakness. 

I would advise buyers to get on the train. With the terms available now, you are in the best position any of us have ever seen. Be happy you have a job and a down payment, don't kvetch about not riding in the conductor's car, and rejoice that you are one of the fortunate few when you arrive.  

   

• We Are Westchester County & Hudson Valley NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. Vice President, Empire Access Multiple Listing Service. 
• I am one of New York's premier short sale REALTORS, serving Westchester & the Hudson Valley. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. We offer outstanding support, marketing resources, and pasta. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

How can I get the most money for my house?

I was recently asked, "How can I get the most money for my house?"   Now, this is not a new question for REALTORS® and frankly, the answer is not a new one either.  "Curb Appeal, Staging and PRICING IT RIGHT!"   Not the "magic potion" this Seller was hoping for.  Seems Sellers want to do less work and still over-price their homes.  Not sure why anyone thinks this will work in today's market, but the truth is, I hope they like living in that home.  Because if they don't get smart about today's market and what they need to do to sell their home, they're going to be living in it for a long time!

Here's the truth:

• Buyers today are going to start their look online.  You need to have pictures which show your home in it's best light.  We're not talking Glamour Shots here, the pictures should be representative of your home.  This means you need to get the exterior and interior in top shape before you put it on the market.
• If you don't capture a buyer's attention the minute they pull up to your house, forget it.  They're looking to be wowed, you have to do anything in your power to make that happen.
• You MUST be priced right!  Reasonably priced listings are more likely to get reasonable offers from reasonable buyers.
• The longer your house is on the market, the more money you're losing every month. Your property becomes stagnant and by the time you finally decide to lower your price, it's not being shown.  This is not the time to "test" the market!
• Overpriced listings do not get as many showings. Fewer showings = fewer offers.  Buyers are more educated about real estate than ever, they know if you're overpriced, and are probably going to wait until you"get real" about the pricing.  Why give them a reason to wait?  PRICE IT RIGHT, and you'll be moving in no time!

Nothing screams desperation quite like, price reduction!  Let's just avoid looking like the wallflower, and be the belle of the ball!  Let's get that yard looking spiffy, clean up the porches, paint the trim, de-clutter the interior (don't forget the garage!), set the home up to show off it's best features and PRICE IT RIGHT!  You'll have buyers begging to get their names on your dance card. 

When you're ready to sell your Wrightsville Beach, NC home, give me a call.  I've got the resources we need to get your home at the forefront of the local market.

***********************************

Tish Lloyd, REALTOR®

Broker Associate

NC Real Estate Lic. 269076

Prudential Laney Real Estate

527 Causeway Drive

Wrightsville Beach, NC  28480

910.547.1446

Search Local Listings

Sharing Our Bounty  

 Everything's better at the beach . . .

                                                                                

Fiscal Year 2011 Funding for the USDA Guaranteed Rural Housing Program

Why Do I Need A Realtor

Real estate is not rocket science, in fact in some respects selling real estate is simple. There is however a big difference between simple and easy. Someone once told me many years ago that bull riding is simple. You keep the bull between you and the ground. It is simple, but it is not easy. Ultimately, a good Realtor's® greatest value comes from being able to guide you safely through the sale or purchase process. The average home owner may only purchase and sell three or four houses in a lifetime. In the 13 years I have been in real estate, I have personally sold around 300 homes representing buyers and sellers. Every sale has held valuable lessons that I use to help guide my home owners and home buyers.

David Gallup, a very well respected Realtor® at Remax 200 Realty compares our job to that of an airline pilot. Our job is to get you where you want to be safely. It is not always a smooth flight, but an experienced pilot knows how to chart a safe course and when to turn on the fasten safety belts sign. Today's real estate market has a lot of turbulence, whether you are selling or buying. For homeowners who need to sell, your Realtor® can help you understand values in your area, and can offer marketing suggestions to make your home stand out in a crowded market. We are still in a very strong buyers market in many segments, but that does not mean there are not pitfalls. A good Realtor® can help home buyers and investors get the most for their money.

You would never think to try and pilot the jet on your next trip, because there is too much at risk if you make a mistake. The pilot has logged hundreds or even thousands of hours in the cockpit and probably made the same trip many times before. Selling or buying, you should have a Realtor® that you have confidence in representing you and your interests. There is too much at risk, not to.

David Welch Real Estate Optimist, Orlando Real Estate

David W. Welch, MBA
REALTOR
Remax 200 Realty
www.DavidWelch.com
www.RealEstateOptimist.com
@RealtyOptimist

    

Georgia USDA Rural Development Funding Restored

More Ways to Save a Little Green by Going "Green" . . .

I thought you might enjoy some more ways to save money by going green that I have come across (these are good anywhere--not just Connecticut!):

15 Green Projects for Under $500 - I have already insullated my hot water pipes (years ago); now I had better run down and clean my refrigerator coils!

10 Ways to Shrink Your Energy Bills - Although I have done most of these items personally, I would have to say that #5 on this list was probably one of the biggest returns on the dollar - "make your attic more cush."  I simply purchased rolls of insullation at my "local home-improvement store," rolled them in the opposite direction of the existing insulation in the attic, and watched the savings mount up over the past nine years!  One way that you can tell who has really good insulation in their attic is to look at roofs after a snowstorm.  If the snow melts off quickly, it is because of heat loss. 

How Eight Homeowners Saved Over $12,275 on Energy - The first story here is about homeowners who installed a pellet stove.  I did this about five years ago, so I can tell you first hand, Storing all those pellets someplace dry can be a challenge!  I have three cars parked in my two-car garage, plus currently four pallets of pellets.  When fuel was at its highest a few years ago, I actually had 14 pallets stored around the house (yes, I was able to keep them dry). 

Funding Restored for the USDA Guaranteed Rural Development Program

A Very Sad Last Tweet

If you are a news scanner, like I am, you probably saw that Dr. Frank Ryan (Plastic Surgeon to the stars) was killed on Monday, August 16, 2010 when his car drove over a cliff near his home in Los Angeles. At the time of the first report, the article I read said that Dr. Ryan did not drink or use drugs.  It turns out now, however, that he was Tweeting about his dog at the time of the crash (Heidi Montag Plastic Surgeon Frank Ryan Texting Before Fatal Crash).

It is really hard to know what will get people to change this behavior. While it is very sad that this man died while texting/Tweeting, I hope that the cause of his death will get a lot of publicity. Especially for teens, and even busy executives, who are tied to their Blackberries, iPhones and Droids, the need to be in constant contact is virtually addictive.

The lure of the vibrating phone is one that is hard for all of us to turn away from, but it is critical that we continue to talk about the threat to personal and public safety caused by texting, emailing and tweeting while driving.

As the new school year begins, make a vow (if you haven't already done so) to put down the phone when you drive. If you don't have the will power to at least wait until the next stop light to check it, put it somewhere beyond your reach and make it impossible to check while driving. 

This sad story shows that a person can make other wise health choices and still end up dead because the lure of the instant communication is too great.

Please remember this story the next time you  'just want to see who that email is from.'

Holly Weatherwax, Associate Broker

EcoBroker,Graduate of Realtors Institute,Accredited Buyers Representative,e-pro

If I can assist you with the purchase or sale of property in Northern Virginia, please visit my website: www.greatexperience.net , my blog Real Estate and Reston or email me at hollyweatherwax@mris.com. My direct number is 571-643-4902.

I believe buying or selling real estate should be a GREAT EXPERIENCE!