What is a Buyer's Market Anyway?

Now is a great time to buy real estate. I was quoted 3.75% on a 7/1 ARM today (great if you are putting a lot down and plan to move in 5 years or less), and 30 year fixed are getting deliciously close to 5%. The high inventory and low prices are all in the buyer's favor. I see homes off 25-30% from their peak in some very nice areas, and even more in some parts. Sellers want to make a deal too, and I am seeing them do things they never would have done even 2 years ago: include furniture, help with closing costs, eating the difference in low appraisals, and even agree to significant repairs. All this points to a strong buyer's market. 

Yet some buyers are frustrated. Why? Because all this talk in the media has them thinking that if they offer $400,000 on a gorgeous $500,000 home in a prime location that the seller will fall down and kiss their feet! Worse, when someone outbids them for that gorgeous, well appointed home in a prime location they are perplexed! Prices are down 50% in Shamokin! I should be able to get something in White Plains or Scarsdale for 25% off! Isn't a buyer's market a license to steal?

Of course it isn't. A buyer's market isn't a flea market. That $500,000 house was selling for $650,000 4 years ago. That's your discount. If I am your buyer agent, you might get it for $460,000 or $475,000. And the seller may throw in the deck furniture, the snow blower and the breakfront you liked. But a market, by its very definition, is not where theft occurs. It is only a good deal if the seller goes for it. And until we are able to hypnotize the seller, their agent, their lawyer and Uncle Vinny, you aren't gonna raid the neighborhood like an invading Visigoth. 

Moreover, in those perplexing cases where you are outbid, you have to understand that if you adore a fantastic place that is aggressively priced, then someone else will probably love it too! Hot properties still have a larger audience. So happy househunting for you brave, smart people out there actually looking in earnest, and do remember that a buyer's market is distinct from a hold up.  

 

J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. Reach Phil at (914) 723-8900. Search the MLS like an agent here. Read my short sale bog here. J. Philip Serves Briarcliff Manor, Ossining, the River Towns, Westchester County, and the bedroom counties of New York City. 

 

Flyers or No Flyers?

Years ago I decided to try taking off all my tubes and flyers off my yard arm signs on my listings to see if I could get more calls. I decided that since I wasn't getting many calls that I'd try it. I had about 20 listings at the time and it was a chore refilling all the tubes but more than that it was about the lack of calls. I had a feeling that it might be because of the flyers. Was I giving them too much information?

At first, I thought I'd just take out some pertinant information, like the price. The phones were ringing much more when I did that but the buyers generally were upset that there was no price on there. I realized it was probably better to have no flyer at all then to have one with limited information that only made buyers mad. I certainly couldn't get too many appointments with buyers who were angry.

So I decided to remove all the tube flyers and the phones rang like crazy. The buyers had no information so they had to call. I got many more appointments and many more sales.

Occasionally, I'll have a seller who insists on a flyer tube on the sign and of course I get no calls on their listing. I tell them about my personal flyer tube survey but some sellers think they know more, even though you're the expert?

I think that if you give them all the info they won't call. I believe that the home buying process is done by process of elimination. If they stop and grab your flyer, they read it and see that it's a 3 bedroom. They want 4 so they keep driving until they call on a sign with no flyer and the agent gets them an appointment to show them other listings. I've been selling residential real estate full time in my area of Orlando, Florida for 17 years. I think that I can say that I believe in my little survey because I could see the difference in the amount of calls and ultimately the increased amount of appointments and sales for me.

Does anyone agree with me on this, or do you have a different opinion if so, tell me why.

Be Careful What You Write ~ Social Networking Is Becoming A Ripe Plum For Lawsuits !

 

The Internet and social networking concept is constantly changing.  Various venues like Twitter, Facebook, MySpace and Active Rain have grown in leaps and bounds.  Hundreds of thousands of users posting millions and millions of words a day. 

Some are humorous.  Some are trivial.  Some are damaging and in some instances are intended to do harm to an individual or business.

The issue of Freedom of Speech is often bandied about and used as justification for saying the most uncomplimentary things.  The First Amendment does not protect tabloids when they write scathing stories about public figures.  Why would an individual believe they are insulated when the press is not?

People feel that they are stealth and protected behind their keyboards.  They post things that are libelous, defaming and potentially destructive to ones livelihood. 

They post under the assumption that they are immune to any prosecution or responsibility for their words.  They feel because they are not "in a public setting" no one can make them accountable for their words.

Recently two lawsuits have set a precedence which should be reviewed by anyone who is tempted to write a negative review of a person or business.

Horizon Realty Group in Chicago, Ill sued a former tenant for $50,000.00 over her comments on Twitter concerning mold in her apt.

"According to the complaint filed in Cook County court today, Bonnen "maliciously and wrongfully published the false and defamatory Tweet on Twitter, thereby allowing the Tweet to be distributed throughout the world." (source)


Courtney Love was recently sued by a fashion designer for her outrageous rants made on Twitter and My Space.

"According to a libel claim filed by Simorangkir in Los Angeles Superior Court March 26, Love used Twitter to disseminate "an obsessive and delusional crusade" of malicious libel against her. Simorangkir, who's based in Austin, Texas, also claims Love slandered her on MySpace." (source)

Lawsuits resulting from social networking are the new frontier for lawyers.  Surely more and more of these suits will crop up when social networking sites are misused by members who lash out provocatively. 

When a business or profession is involved, those who can allege potential damage can win hefty awards.  Individuals who deliberately attempt to adversely impact another persons professional or personal reputation will find the folly may cost them much more than they bargained for.

 

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Bonnie and Jayne Vaughan - Driven and Dedicated Realtors 

                A Real Estate partnership dedicated to our clients ~ driven by their desires

Lackawanna County and surrounding areas -

Scranton and Clarks Summit, Pennsylvania

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Seven Ways to Use a Home Inspection Report

In random order, I present to you seven different ways in which a home inspection report can be used by parties to a real estate transaction for advantage and benefit.

1.  Buyers can consider the reported conditions of the home's systems to determine their ability to afford to maintain the property.  A home with a 12 year old water heater, an 18 year old furnace and a 25 year old composite shingled roof is going to need some costly investments in the near future.

2.  Buyers can sometimes use information regarding undisclosed defects to negotiate the seller's action to repair the defect(s) or adjust the asking price for the home.

3.  Sellers can obtain a home inspection and use the report to disclose known defects to potential buyers.

4.  Sellers can obtain a home inspection and use the report to identify and correct significant defects that could interfere with a buyer's desire to submit a contract to buy the property.

5.  Buyers can use the inspection report as a "punch list" or "to do list" for maintaining the property after purchase.

6.  Buyers/Sellers can use the report to communicate to contractors the nature of the defect(s) to obtain estimates for repair or to arrange for repairs or replacements.

7.  Buyers can sometimes use the inspection report as a means to withdraw from the contracted agreement to purchase the home when certain types of undisclosed defects are reported.

Buyers and sellers should consider obtaining inspection reports only from professional full-time home inspectors.  Inspection reports generated by builders or contractors are often used by them as marketing tools and a means to generate business for maintenance and repairs and do not always represent the actual conditions of the property.

 

 

Live like you are dying and list like you're bank owned.

Live like you are dying, the lyrics of this Tim McGraw song speaks volumes to many different people.

As I listened to what this song is advocating, It occurred to me many sellers should heed this lesson. They put a price on a property that they think "someday" it may sell for. If moving on with your life requires the sale of a property you own...there is not an infinite amount of time to accomplish this sale. Life is Short.

What got me thinking about this, is I have several short sales a bank owned sale and a probate property that are pending. With these sales the process to close will be longer (in some cases much longer) than the time it took to find a buyer. The price was right, the buyers where motivated and the sellers showed their willingness to sell, by pricing the property to sell.

List like the market is dying. Life is Short.

#1 If you are going to buy after this sale...the sooner you sell the sooner you are in the buyers shoes (you are merely trading equity...if you buy a replacement property).

#2 Moving on is far less painful than hanging on (how many months of mortgages, taxes, insurance utilities will be spend holding...after you admit you want to sell).

#3 You may be better off renting for a time (dropping the major maintenance costs and healing your credit may put you in a better place in the long run than draining your savings, while waiting to score on unrealistic re-sales).

My Bucket list doesn't include living in a home I can't afford...and waiting for someone to over pay me for the same privileges. Life is Short.

 

 

 

                                                                                                                      Steve Loynd, White Mountain New Hampshire real Estate Expert

   steve@alpinelakes.com toll free 800-926-5653 /cell 603-381-7898

    MLS search and Realtor web site: www.alpinelakes.com

    My outside Blog: www.steveswhitemountainblog.com

   Lincoln NH &  Local interest site: www.localism.com/nh/lincoln

 

9424 Shepparton Dr, Huntersville, NC - Melbourne - Huntersville Home For Sale

Mooresville NC Duplex For Sale - 140-42 Double Eagle Dr.

10 Commandments Home Buyers Must Follow

These 10 Commandments home buyers must follow may seem like common sense to many. Buyers, however, can sometimes forget with all the excitement surrounding the buying of their new home. In the past couple of weeks, I have heard of two separate buyers who saw their home loan turned down, and their dream shattered, a few days before closing because they had bought furniture for their new home before it actually became their home. Both of them now have beautiful furniture with no home to put them in.

These two buyers were not my clients but it always hurts when I hear of transactions falling apart for reasons that could have been avoided. These 10 commandments are part of the buyer packet I give all my clients when we first meet and I always stress that once they get pre-approved and the process is started, they can't do anything that might affect their credit.

1. Thou shalt not change jobs, become self-employed or quit your job.

2. Thou shalt not buy a car, truck or van (or you may be living in it)!

3. Thou shalt not use credit cards excessively or let your accounts fall behind.

4. Thou shalt not spend money you have set aside for closing.

5. Thou shalt not omit debts or liabilities from your loan application.

6. Thou shalt not buy furniture.

7. Thou shalt not originate any inquiries into your credit.

8. Thou shalt not make large deposits without first checking with your loan officer.

9. Thou shalt not change bank accounts.

10. Thou shalt not co-sign a loan for anyone.

If you are in the process of buying a home, remember that your credit must not change or be affected in any way until you actually sign the paperwork and get possession of your new home. Lenders will not only look into your credit when you first get pre-approved, they will check it again (and sometimes again and again) before they let you sign the mortgage. If you want to buy new furniture for your home or change jobs, just be patient. There will always be time to do it after the closing.

SPOT ~ A Cool Gadget For Agents & People Out of Range of Cell Service!