Ralf's Blog

Real Time Online MLS Data For Lansdale PA

Ralf Simon (Remax Central) — Mon, 17 Nov 2008 21:48:49 -0600

Market Snapshot

Would you like to know how many un-sold homes are presently in your neighborhood? How about knowing how many days a property was available for sale before it went under contract? Would you like to compare the price of a sold property with the list price of that property? The real estate market is constantly changing and so is the value of your home. Let me make you the expert in your neighborhood with this real time MLS market information.

Market Snapshot is a great up to-the-minute MLS graphical report that allows you to see what similar homes are selling for and at what price.

This report is absolutely FREE and will be sent to you on a monthly basis courtesy of Ralf Simon, Realtor at RE/MAX Central, 1110 N Broad St. Lansdale Pa. Ralf can be reached at 215-479-8067 or send an e-mail to ralf@comcast.net

Just enter your information below and with-in-minutes you will receive a FREE report on the current real estate snapshot in your neighborhood.

Defining Value in Real Estate

Ralf Simon (Remax Central) — Sat, 15 Nov 2008 15:29:10 -0600

Many Sellers today have a Perceived Value of what their property is worth. They will value their property based on a recent sale in the neighborhood or a past appraisal that was done when the seller refinanced. A seller will also justify a final value based on location, recent renovations, and additions done to the home.

Absolute Value is what a buyer is willing to pay for a home. A buyer will determine this value by asking a realtor about the sale price of comparable sold properties, as well as comparing the price of similar available properties. Buyers will determine if the home is in “move in” condition or in need of extra work. Buyers are also influenced by location and external factors such as power lines, proximity to other homes, yard size, traffic, and current market conditions.

An appraiser will determine the value of a property through a complex analysis of at least three or more comparable home sales, current available properties, recent renovations and additions, and current market conditions.

Lenders will lend money to a potential buyer based on the buyer’s credit score, financial position, and current employment. Lenders will also use an appraisal to determine the value of a property and will lend money based on a typical 80% loan to value ratio.

If the appraised value of a property is lower than the agreed upon price between the seller and buyer, the lender will ask the buyer for a higher down payment or the seller to reduce their asking price. Most buyers will buy based on their down payment and settlement limit.

As a Realtor, I advise sellers on Current Value based on a similar analysis done by an appraiser. This value will reflect a price that will attract buyers to view the home and result in a timely sale.

You the seller have the final say on what price to list your home. As a “hired” agent I will list your house accordingly. Be aware that pricing your home higher than my analysis can result in little or no showings and a lengthy amount of time on the market. A settlement can also “fall apart” due to a lower appraised value.

Also note, if a home has been on the market for a long length of time, buyers might wonder if something is wrong with the property.

In conclusion, the definition of value can vary. It’s the Absolute Value, or what a buyer is willing to pay that results in a SOLD situation!

Go to www.ralfsells fast.com for more information

Reviving the real estate market must be the focus of any future stimulus bill

Ralf Simon (Remax Central) — Thu, 13 Nov 2008 06:49:58 -0600

As a member of the National Association of Realtors (NAR) and a Realtor in the Lansdale PA area (Montgomery County). I believe that Congress should focus on a stimulus package that will directly reinvigorate the housing market. A large part of the economic crisis that we are currently experiencing is the result of a severe downturn in our country's housing markets. Any efforts to boost the economy must directly involve the real estate market.

NAR has proposed a 4-Point Housing Stimulus Plan that should be part of any new stimulus package. This plan would:

1. Make the $7500 first-time home buyer tax credit available to all buyers and eliminate repayment requirements. The credit's limited availability and repayment requirement severely limit the credit's use and effectiveness.

2. Make the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent. New rules for 2009 will reduce them. Now is not the time to limit mortgage affordability.

3. Get the Treasury relief program back on track and target more funds to mortgage relief. Create a federal mortgage interest buy-down program to make below-market rates available and stabilize home prices.

4, Permanently bar banks from engaging in real estate brokerage and management. Banks should concentrate their efforts in managing the loan process. Banks should not manage home sales and purchases.

Stimulating home purchases is a definite first step in helping to lift our economy out of the present economic downturn. We can help with an economic recovery by reviving the housing market now!