Michelle Graves's Blog

Appraised Value Appreciation - Seriously? In THIS Market?

Michelle Graves (Keller Williams Realty) — Fri, 12 Mar 2010 14:22:28 -0800

Without getting into too much detail, I recently had a short-sale property on the market, listed UNDER $100,000. We had an offer 6 months ago, but like many short-sales, the bank took so long to respond that the buyers walked. However I did manage to find out where the appraisal came in before it all fell apart.

Long story short, I submitted a more recent offer to the (same) bank on the (same) house. Since the last appraisal was 6 months prior, they required a new one be done.

Here's the kicker... the appraised value of this home APPRECIATED $23,000 in just 6 MONTHS time!!! That is very nearly 1/3 of the listed price in appreciated value in 6 MONTHS!!! Is it just me or is that an INSANE RATE OF APPRECIATION???

Based on my understanding, the first appraisal must have allowed short-sales and foreclosures as comps. Six months later, the (same) bank required the second appraiser to EXCLUDE all short-sales and foreclosures in determining "Fair" Market Value.

My question is this... Shouldn't banks have the same requirements for ALL appraisals on a specific property, or none at all?

Also... Is it "Fair" to exclude short-sales as comps when the subject property is a short sale?

I would love to hear YOUR THOUGHTS on this matter!

For More Real Estate Information Visit My Website

Spring Has Sprung In Our Local Real Estate Market!!

Michelle Graves (Keller Williams Realty) — Fri, 12 Mar 2010 12:30:14 -0800

A big part of real estate is anticipating what the market is going to do. Well, I'm here to tell you that the weather is warming up and so is our local real estate market. Now is the time to make your move!

Buyers: Home showings are up, which means that a great many buyers are already out there actively looking. With the Home Buyer Tax Credit set to expire at the end of April, most of those buyers are on deadline, hoping to take advantage of the Tax Credit before that expiration date. Mortgage rates are also predicted to rise every quarter for the next two years. Bear in mind, a rise in the rate equals a rise in the monthly payment, at any price. Don't wait too long and let all the "buyer competition" take the best deals and reap the benefits of the tax credit while you are still trying to decide what to do. Make the call, get pre-approved and make the most of this buyer's market while its here and mortgage rates are still low.

Sellers: Every year about this time, the buyers come out of hibernation and activity in our market really picks up. And, as you may know, the number of homes for sale on the market are also expected to rise with the temperatures. So list your home now, ahead of the competition and make sure you have it looking its best. Your goal as a seller is to outshine the competition and impress all those buyers! Gary Keller (as in THE Keller of Keller Williams Realty) gave an interview on Good Morning America recently, and offered some great tips on how to sell your home in the current market, including:

1. Price your home BELOW the prices of similar homes. Pricing right gets you showings.

2. Fix EVERYTHING! It is a buyers market and they expect the very best for their money. With an excess of inventory on the market, they wont put in an offer on your house when they can find a similar home nearby that they wont have to fix things on.

3. DECLUTTER! Clear that clutter away, it makes your space appear smaller and makes it more difficult for buyers to picture their things in the home. So take down that wall of family photos and get all those magnets off the fridge, etc.

4. STAGING!! Look at your home objectively and stage it with potential buyers in mind. Good pictures and staging are what bring in the offer!

For More Real Estate Information, Visit My Website!

We Are Still In A Buyer's Market, But For How Long?

Michelle Graves (Keller Williams Realty) — Thu, 25 Feb 2010 11:09:29 -0800

We all wish we had a crystal ball to predict when the real estate market will recover. Unfortunately no one knows exactly when that will happen, but there is plenty of speculation to go around.

"If it is just speculation, why is it so important that I buy now?" you may ask. There are many good reasons to buy sooner rather than later. Not only are interest rates the lowest they have ever been in recorded history, but they are predicted to rise, it is only a matter of time. Home prices are still low, especially compared to the "peak" of the market. However, every "nth" of a point the interest rates go up, the monthly payment will also rise. This means that to have the same monthly payment purchasing year from now as you could have purchasing today, you will have to spend less on the sales price of a home.

Other good reasons to buy now are the Home-buyer Tax Credit, which is set to expire on April 30, 2010, USDA is still offering 100% financing on qualifying properties, the NC Housing Finance Agency is offering $14,900 in downpayment assistance on qualifying properties and there are many other programs designed to stimulate the real estate market out there for buyers as well.

Also, lending practices and credit standards are continuing to "tighten up". This means that more and more buyers will be shut out of the market as they become ineligable due to stricter lending guidelines.

-Mortgage Rates: The rate on a 30-year mortgage averaged 5% last week, according to Freddie Mac. Rates are low in part because the Federal Reserve has been buying up about $3 trillion in mortgage-backed securities and mortgage agency debt. The aim is to hold down interest rates and keep mortgages available. But the Fed has no plans to buy any more past March 30, 2010. The likely result is an uptick in rates. Economists at the Mortgage Bankers Association expect to see a 6.1% rate by year end. Such a rise would add about $104 to the monthly payment on a $150,000 mortgage.

-Home Buyer Tax Credit: The home buyer tax credit expires on April 30, 2010 and no one knows if Congress will renew it a second time. To qualify for the credit, you must sign a purchase contract by April 30, 2010 and close by July 1, 2010. First-time buyers get up to $8,000. "First-time" is defined as someone who hasn't owned a home in three years. Move-up buyers get up to $6,500 when they purchase a new primary residence. To get the credit, you have to have lived in the old home for at least five out of the last eight years. The credits start phasing out at $125,000 in adjusted gross income for singles and $225,000 for joint filers.

- Credit Standards: Mortgage lenders have been tightening credit standards, which means fewer eligible buyers. Lenders are insisting on credit scores of 640 to 660 for loans sold to Fannie Mae, Freddie Mac and 620 for FHA guaranteed loans. Those standards are higher than the federal agencies themselves insist on. FHA-which guarantees loans for people with low down-payments-has been raising its own insurance charges to borrowers and demanding higher premiums from people with poor credit scores."

Visit my website for more information about the local Charlotte, NC Metropolitan Area real estate market!

First-time Home Buyer Tax Credit Extended To Become: The Worker, Homeownership and Business Assistance Act of 2009

Michelle Graves (Keller Williams Realty) — Tue, 17 Nov 2009 09:31:04 -0800

As you may have heard, the extension on the first time home buyers tax credit was signed into law on November 6th, 2009. A few points:

The bill extends the $8,000 first-time home buyers' tax credit that was set to expire at the end of November. The credit will apply to all house contracts entered into before April 30, 2010 and closed by June 30, 2010.
It also creates a NEW $6,500 credit for existing property owners looking to sell their home and buy another during the same period of time. This is available to those who have been in their current residence for a consecutive five-year period.
The new rule also raises the qualifying income limits to $125,000 for single taxpayers and $225,000 for joint taxpayers, from the current $75,000 and $150,000.
The maximum allowed home purchase price is $800,000. Military personnel, deployed overseas for a minimum of 90 days in 2008 or 2009, would have until April 30, 2011 to claim the tax credit.

To register to receive more detailed information, visit my website at www.YourNewCarolinaHome.com.

Difference between a short sale, foreclosures, and REO's

Michelle Graves (Keller Williams Realty) — Mon, 27 Oct 2008 20:43:08 -0700

What is a Short Sale?

A short sale occurs when a lender agrees to take less than the full loan payoff for a an owner's property. In most cases, the owner is in default and is not making their payments for whatever reason.

Short sales, usually, are the first step to avoid foreclosure. Although the lender(s) will recover less than the total loan amount in a short sale, they may prefer this in the event of a possible foreclosure. The costs of foreclosing on a property may be more than the bank's loss by taking a short sale. Also, the property may not sell at auction and then the bank would be forced to take it back as an REO (Real Estate Owned) property, which then they would have to maintain, list and sell themselves. Short sales are very complicated and the outcome is not guaranteed. There are so many variables that I can not even cover everything in a couple paragraphs. The bank (lender) is not obligated to take a short sale and in most cases the process to get one approved is cumbersome and frustrating for the Buyer, Seller and the Realtors. Many times these requests are not approved by the bank and the property ends up going to foreclosure anyway. Banks are overwhelmed with short sale requests and the approval process can take months. Each bank evaluates each individual request on a case by case basis. Many times there is more than one lender involved. Not only do the banks consider the borrower's personal and financial situation, but they also consider an appraisal of the property, market conditions, the banks financial situation, their current portfolio and in many cases have to consult with an outside investor who purchased the loan at some point. Given all of these varying curcumstances, you can imagine why this process takes so long. Most buyers do not want to wait out this long process and deal with the uncertainty. If a short sale is approved, it can be below market (depending on the bank appraisal), but by the time it's approved the market may have further declined and it may not be a great deal after all. If you are considering selling your home as a short sale, please consult with a CPA and an Attorney first! Realtors ARE NOT qualified to give you the type of information you need to decide if a short sale is right for you. Depending on the types of loan(s) you have and your financial situation, it may or may not be the best option for you.

What is a pre-Foreclosure?

A pre-foreclosure is basically a short sale or the sale of a home in which a Notice of Default (NOD) has been filed.

The owners of the home are in default of the loan and are trying to sell the home before it is taken through foreclosure. It's just a marketing term to attract attention to the property as being a distressed sale. Realtors use this term to create interest in possibly purchasing a home below market value. This may or may not be the case. Further research needs to be done on each home to determine the value. If you are an Investor who will not be occupying the property, there has been an NOD filed, AND the owners still reside in the property as their primary residence - a Realtor, by law, CAN NOT represent you as the Buyer. You must handle the transaction on your own. A Realtor can only represent the Seller in this case.

What is a Foreclosure?

Foreclosure is the process whereby the lender takes possession of the property.

When a home owner fails to make the payments on his/her mortgage, the lender can begin foreclosure proceedings. This is a very specific legal process with set timelines and outcomes. In a Short Sale situation, the home owner's name is still on title of the property and they are the official owners who are trying to sell the property. In a foreclosure, the lender takes possession of the house and as a result, the homeowner is no longer a party in the sale. Foreclosures are NOT sold by Realtors. Foreclosure properties are auctioned at a Trustee Sale at the Court House in the County where the property resides. Foreclosure properties must be paid for in full, with a cashiers check at the time of the auction. Only seasoned investors should consider this option. When you purchase a home at a Trustee Sale, you could be at risk of various problems that are normally investigated by Realtors and Title Professionals in normal sales transactions. These problems are serious!!!! Problems such as: Title problems, Superior loan pay offs, IRS liens, tenants or owners still occupying the property, and/or structural problems. The price may seem good at auction (priced well below other houses in the neighborhood), but your costs and risks may come after you try to take title. Properties that are a good investment are purchased by seasoned investors who find a way to get them before anyone else. Unless you really know what you are doing, this is the most risky way to purchase property!

What is an REO?

REO is a abbreviation for Real Estate Owned properties.

If no one purchases the property at the Trustee Sale, then the home becomes an REO property, owned by the bank. The main reason homes don't sell in a Trustee Sale is because it doesn't work out to be a good investment for a potential real estate investor. A home that has been "foreclosed" and has become a bank owned property can then be listed by a Realtor who is hired by the bank to market and sell the property. To sell the house as quickly as possible the lender will remove any liens on title, and clear any other issues that may slow down the sale of the property. Generally, lenders are very motivated to sell these prperties, as they are in the business of lending money, not owning real estate. REOs tie up their capital reserves and hamper their ability to lend money. Also, the management of these properties can become very costly. This is the best opportunity to find a good deal. Note: there are many homes out there for sale that are not distressed properties. The owners have a lot of equity, are motivated to sell and have priced their homes to move quickly. Distressed properties are not always the best way to find a great deal.

Tips and Tricks maybe you dident know about with Microsoft Word

Michelle Graves (Keller Williams Realty) — Mon, 27 Oct 2008 16:12:54 -0700

Okay so anyone in the workforce that uses a computer on a day to day basis knows what microsoft word is... but do you know what it can do?

here are a couple of tricks and tips you can use while typing a Word document.

(ill go over these later but these are just listed for an outline)

zoom in and out of a document
the active painter feature
shift key features
Autocorrect
keyboard shortcuts
Using the work menu
Open the Last-Opened Document
Paste Special
Rearrange Paragraphs

- zoom feature

if you hold ctrl and use your mouse wheel you can zoom in and out of the document quickly to search for certain text or a certain part of your document.

- the active painter feature

the active painter feature should by deafult be located on your toolbar via the little paintbrush icon. if its not you can go into Tools - Commands - Format and drag the icon over.

active painter works like copy & paste. the difference is that it does not only copy text it copies format as well. if you select an entire paragraph or cell format then it will copy that entire cell format exactly like it was before.

- Shift Key Features

If you hold shift while clicking on file at the top your options to close and save will change a bit. if you have multiple documents open it will ask you to close - all or save - all. its very beneficial if you are a multi-tasker and usually have multiple documents open at once.

ever use bullets? im sure you have... and if you have you know what a pain it is to try and continue to the next line without using a bullet. this can be accomplished by pressing shift - enter. this will allow you to continue to the next line without creating another bullet.

- Autocorrect

autocorrect is a cool feature but you can also use autocorrect to add symbols.

(r) will do this: ®

(tm) will do this: ™

==> will do this: Ë

<== will do this: Á

--> will do this: →

<-- will do this: ←

- Keyboard Shortcuts

Ctrl-C: Copy selection.

Ctrl-X: Cut selection.

Ctrl-V: Paste copied selection.

Ctrl-Shift->: Increase font size.

Ctrl-Shift-<: Decrease font size.

Ctrl-P: Print

- Fast Access to Recently-Opened Docs

You can keep frequently used documents readily available on Word's menu bar so you don't have to use the File menu and search through files and folders to find them. You do this by adding a Work menu to Word's menu bar. Simply go to View | Toolbars | Customize, choose the Commands tab, and select Built-in Menus from the list of categories. Then choose Work from the list of commands and drag it to where you want it on the top-line menu. From your new menu, choose Add to work menu to attach a filename to the menu. To remove a filename, press Ctrl-Alt-Minus and click on the item you want to remove.

-Open the Last-Opened Document

You can create an icon on your desktop that will launch Word and automatically open the document you last opened. Either locate the file Winword .exe in Windows Explorer (for Office 2003, this is typically in C:\Program Files\Microsoft Office\OFFICE11) or find it with the Search item on the Start menu (in the Search tool, you'll probably need to turn on More advanced options, then add checkmarks next to Search system folders and Search subfolders). Once you find Winword .exe, right-click on the file icon and drag it to your desktop, and then select Create Shortcuts Here. Right-click on the new shortcut icon, choose Properties, and go to the Shortcut tab. In the Target field, after the existing file path, add a space and then /mFile1. You can also assign a shortcut key if you want to launch the file with a keystroke combination. When you're done, click on Apply. In the General tab, give the shortcut a descriptive name and click on OK.

- Paste Special

Ever try and copy paste from another source and the font, color, size, shape, and EVERYTHING is different? thats is why Paste special exists.

When you copy text from the Web or another document into a Word file, Word will reproduce the typeface, color, and font size displayed in the original page. If you want the pasted text to match the formatting in the destination document, use Edit | Paste Special, and choose Unformatted Text.

- Rearrange Paragraphs

Do you need to swap the second and third paragraphs in the document you're working on? Don't waste time dragging text around within your document using the mouse. Just click on the paragraph you'd like to move, hold down Shift-Alt, and move the paragraph up or down using the arrow keys. Each press of the arrow key causes the selected paragraph to jump over one adjacent paragraph.

Networking Groups Really Do Work!!

Michelle Graves (Keller Williams Realty) — Fri, 26 Oct 2007 06:06:58 -0700

I know sometimes networking can really be hit or miss and I too can be discouraged with it at times however, my confidence has once again been restored.

After attending local chamber networking functions with little success, I recently joined a new networking group and so far, so good. One of my new associates has given me two referrals this week. I am looking forward to repaying the favor and am thrilled about this new relationship! I found myself attending another function last night to try it out as well.

Many possibilities out there :-) Make it a great day and happy networking!