Archive for the 'Home Sellers' Category
Avoiding Foreclosure
March 17th, 2008 categories: Home Sellers, Prescott Real Estate Trends
Many people these days are dealing with the harsh reality of property foreclosure. This is a painful and embarrassing situation, but one that needs to be dealt with. Simply walking away is never the right option. The hit to your credit takes years to correct, not to mention the humiliation it puts your family through. Hanging in there and fighting you way through is tough, but worth it in the long run.
There are options; I’ve helped clients through “short sales“. A short sale is when the lender takes less than what is owed on the property. It is an involved process of negotiating with the bank and lots of paperwork, but a far better option than foreclosure. If you are behind on your payments, or receiving late notices from your lender, take action now. Don’t wait until you are months behind in payments. The further behind you get the harder it is to recover. Your lender does not want you to lose your house. Foreclosures are expensive for you and the bank. It is far beneficial for both parties to work things out.
If you are behind on your mortgage payments, get involved now! Here are some helpful links: HUD, Housing and Urban Development. Hope Now; a non profit organization offering credit counseling.
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Is The Real Estate Market Showing Signs Of LIfe?
March 14th, 2008 categories: Home Buyers, Home Sellers
The Real Estate slide may be slowing down. Although the news media bombards us with negative numbers every time we turn around, there are some positive signs out there.
As of today, March 13th, new mortgage applications nationwide jumped last week for the first time in more than a month. This is a very important indicator of home buying in upcoming months.
Pending home sales nationally did not decline last month as expected, they were “flat”. We’ll take flat! This is a good sign that after two years of negative numbers, maybe we’re beginning to bottom out.
I feel confident that the Federal Reserve will continue to lower short term interest rates giving our economy a much needed kick in the pants. The cost of money is a very important part of home buying and I know that these aggressive steps will pay off in the long run.
These may be small glimmers of hope, but they are positive signs. Everyday we are a little closer to the Real Estate market turning itself around. Although our sales statistics in Prescott are still in negative territory, home are selling. As interest rates continue to go down, consumers will realize that there are some great deals out there!
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What The Heck is a 1031 Tax Deferred Exchange?
March 6th, 2008 categories: Home Buyers, Home Sellers, Prescott Homeowners, Real Estate News
For more information on 1031 Tax deferred exchanges click on the following link; tax exchange
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Prescott Real Estate; a year in review
February 19th, 2008 categories: Home Buyers, Home Sellers, Prescott Homeowners, Prescott Real Estate Trends, Real Estate News
2007 Prescott Real Estate. A year in review:
Wow! What a transition… To say that Prescott experienced some major Real Estate adjustments in 2007 is an understatement. We enjoyed double digit appreciation for several years, and came to expect it as normal. Although the trend started to slow toward the end of 05, many home sellers, and Realtors didn’t start to feel the burn until 07. In 2007, average home prices adjusted downward in almost all neighborhoods. Days on market adjusted upward along with interest rates. The interest rate increases kept many first time home buyers out of the market all together, or afraid to take the plunge. Buyers looking to up size could no longer afford the larger home and were forced to stay put.
A large listing inventory, and fewer buyers made 07 an especially challenging year for home sellers. 50% of the listing inventory sold, which was down from 79% in previous years. Only 13% of the vacant land on the market sold. Days on market widened to 158 days which was quite a switch from the ” good old days” when homes sold before they hit the MLS. Not to mention the foreclosure market and sub prime lending disaster which we may not see the bottom of until 2009.
2007 brought many changes to our local Real Estate companies. There was simply not enough business to support the growing number of Licensed Realtors in the area. Currently there are 1,643 Licensed Real Estate agents belonging to PAAR (Prescott Area Association of Realtors) that number is down from well over 1,700 in 2005. I predict that in 2008-2009 more of our local Realtors will be forced to leave the Real Estate business. Mortgage companies and well as Escrow companies have seen their share of cut backs, consolidations and lay offs.
Eventhough lost sleep and my graying hair was a big part of 2007, I am always the optimist and hope that 2008 brings sunnier condition to our Prescott Real Estate market. The sooner we all accept “what is” in the Real Estate market, the brighter the sun will shine for all of us. Here’s to a great 2008!
Here are some sales statistics comparing 2006 to 2007.
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The Telephone Line; Here are some important phone numbers
February 19th, 2008 categories: Home Buyers, Home Sellers
Moving into or out of a home is a stressful process. Turning utilities on or off, cable TV or Satellite, where do I get trash cans, who is a good veterinarian? Here are some important phone numbers you’ll need to get started.
Home Utilities
APS Electric - (928) 776-3636
City of Prescott Water, Sewer, Trash (928) 771-1291
Unisourse Natural Gas (928) 445-2211
Cable One, Cable TV Service (928) 445-4511
Dish Network, Satellite TV Service (928) 443-9797
Qwest Telephone (800) 244-1111
Ferrell Propane Gas (928) 445-3940
Flame Propane Gas (928) 445-3191
Emergency Services
Prescott Police Department (928) 778-1444 or for emergency call 911
Prescott Fire Department (928) 445-5555 or for emergency call 911
Life Line Ambulance Service (928) 445-3811
AAA Advanced Air Ambulance (800) 633-3590
Transportation Services
Shuttle U (928) 442-1000 To and from Sky Harbor Airport
Van Go (928) 717-8264 Door to door shuttle to Sky Harbor Airport
Executive Transport (928) 445-LIMO (5466)
Pet Care
Mile High Animal Hospital (928) 445-4581 (Highly Recommended)
Thumb Butte Animal Hospital (928) 445-2331
Hassayampa Canine Spa and Resort (928) 776-0932 (Highly Recommended)
(As a dog owner, this is the only boarding facility I recommend. It’s a wonderful facility and very affordable)
Yvonne’s Pet Grooming (928) 445-7244 (Highly recommended)
Financial Services
Grand Canyon Financial Services (928) 443-8583
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Existing Home Sales To Hold Steady In Early 2008
February 19th, 2008 categories: Home Buyers, Home Sellers, Prescott Real Estate Trends
Here is an atricle that I thought was interesting and was published in the Arizona Realtor magazine, Feb. 2008 issue.
Over the next few months, existing home sales are expected to hold fairly steady as indicated by pending sales activity, and then rise later in the year and continue to improve in 2009, according to the latest forecast by the National Association of Realtors.
Lawrence Yun, NAR Chief econimist, says there is a pull and tug exerting itself on the market. “One one hand, we have pent up demand from the four million jobs added to our economy of the past two years of sales decline”. On the other hand, consumers continue to wait for additional signs of market stabilization. There are more people with financial capacity now than in 2005, but many are trying to market time their purchase. As a result, the exact timing and the strenght of a home sales recovery is a bit uncertain. A meaningful recovery in existing homes could occur as early as this spring, or further delayed toward late 2008.
The pending homes sales index, a forwared looking indicator based on contract signed in November fell 2.6 percent to a reading of 87.6 from a strong upward revision of 89.9 inOctober, but remains above the August and September readings and indicated a broad stabilization. The index was 19.2 % below the November 2006 level of 108.4. “Although there could be some minor slippage in the first quarter, existing home sales should hold up in a narrow range before trending up”, Yun says.
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When is a “Short Sale” the right exit strategy?
February 19th, 2008 categories: Home Buyers, Home Sellers, Real Estate News
When is a short Sale the right exit strategy?
There are several ways to lose a home but signing away ownership in a manner that destroys your credit score, embarrasses the family and strips an owner of dignity is one of the most painful. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a “short sale.”
When lenders agree to do a short sale, it means the lender is accepting less than what is owed on the property. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose. However, foreclosures are expensive to the mortgage company and in a declining market, taking a lesser payoff and getting the property off the books may be in everyone’s best interest.
If you are considering buying a short sale, there could be drawbacks. For your protection, I suggest that all borrowers and home sellers:
- Obtain legal advice from a competent real estate lawyer
- Call an accountant to discuss short sale tax ramifications.
As a real estate agent, I am not licensed or qualified to give advise on legal or tax consequences. Except for certain conditions pursuant to the Mortgage Forgiveness Debt Relief Act of 2007, be aware the I.R.S. will consider debt forgiveness as income, and there is no guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid. In some states, this amount is known as a deficiency. Speak with an attourney to determine whether your loan qualifies for a deficiency judgment or claim.
Although all lenders have varying requirements and may demand that a borrower submit a wide array of documentation, the following steps will give you a pretty good idea of what to expect.
Call Your Mortgage Lender
You may need to make a half dozen phone calls before you find the person responsible for handling short sales. Ask to speak with a manager; someone who is capable of making decisions and moving your case forward.
Lenders typically do not want to disclose any of your personal information without written authorization to do so. If you are working with a real estate agent, closing agent, title company or lawyer, you will receive better cooperation if you write a letter to the lender giving the lender permission to talk with those specific interested parties about your loan. The letter should include the following:
- Property Address
- Loan Reference Number
- Your Name
- The Date
- Your Agent’s Name & Contact Information
Preliminary Net Sheet
This is an estimated closing statement that shows the sales price you expect to receive and all the costs of sale, unpaid loan balances, outstanding payments due and late fees, including real estate commissions, if any. Your closing agent or lawyer should be able to prepare this for you, if you do not know how to calculate any of these fees. If the bottom line shows cash to the seller, you will probably not need a short sale.
Hardship Letter
The sadder, the better. This statement of facts describes how you got into this financial bind and makes a plea to the lender to accept less than full payment. Lenders are not inhumane and can understand if you lost your job, were hospitalized or a truck ran over your entire family, but lenders are not particularly empathetic to situations involving dishonesty or criminal behavior.
Income and Asset Statements
It is best to be truthful and honest about your financial situation and disclose assets. Lenders will want to know if you have savings accounts, money market accounts, stocks or bonds, negotiable instruments, cash or other real estate or anything of tangible value. Lenders are not in the charity business and often require assurance that the debtor cannot pay back any of the debt that it is forgiving.
Comparative Market Analysis
Sometimes markets decline and property values fall. If this is part of the reason that you cannot sell your home for enough to pay off the lender, this fact should be substantiated for the lender through a comparative market analysis (CMA). Your real estate agent can prepare a CMA for you, which will show prices of similar homes:
- Active on the market
- Pending sales
- Homes that have sold in the past six months.
Purchase Agreement & Listing Agreement
When you reach an agreement to sell with a prospective purchaser, the lender will want a copy of the offer, along with a copy of your listing agreement. Be prepared for the lender to renegotiate commissions and to refuse to allow payment of certain items such as home warranty plans or termite inspections.
The Sweeky Wheel Gets The Oil
Stay in close touch with your short sale case manager. Call them daily for updates and progress reports. If everything goes well, the lender will approve your short sale within a few weeks.
We have successfully sold and closed short sales. When working through a short sale, you are faced with bureaucracy, lots of phone calls, and dealing with a mortgage company representatives that may not be that nice to work with. But for a home seller that is behind on payments and no way out, a short sale may be daunting, but a better alternative to foreclosure.
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The Magic of Pricing Your Home Right From the Start will ensure a timely sale in 2008
February 19th, 2008 categories: Home Sellers, Prescott Real Estate Trends
Selling your home in this market takes more than the wave of a magic wand, it takes experience. Don’t make the #1 mistake that sellers make!
Pricing your home slightly below current market value can produce great results right from the start. In a market saturated with listings, many of them over priced, an appropriately priced home is what buyers and Realtors alike are waiting for. As listing agents, we love to be the third Realtor to have listed the property, after the Seller has made all of the major mistakes.
We Want More Money When The Home Sells in this Prescott market
It’s easy to get caught up in choosing a sales price. The higher the price, the more financial opportunities we have when the home sells. We can pay off all of our credit cards, take a vacation, send the kids to college, buy a more expensive home and so on. Many times, the uninformed sellers will choose the Agent who suggests the highest listing price. This is without question the worst mistake a seller can make.
In Prescott’s Real Estate market it’s imparivite to establish an accurate market value
Many sellers choose a list price based on how much they need to net when the sale is complete, unfortunately that strategy can prove to be a costly mistake. Pricing your home involves several steps. Comparing similar properties, making adjustments for the differences, tracking market movement, and evaluating the competition. As listing agents, we consider all of the facts, and suggest the most realistic price. Some sellers are concerned about setting the price of their home too low. If a home is priced too low, it will generate more activity and chances are the seller will receive multiple offers driving the price back up to the market value. In a buyers market, the danger does not lie in pricing your home too low, it is in pricing it too high. The buyers will ultimately set the price of your home. Their opinion is really the only opinion that matters.
Keep More Money in Your Pocket
How much is it costing to keep you home every month? Sellers often feel that their home is worth more that what we recommend. They couldn’t possibly list their home for $300,000 because they feel it’s worth considerably more. They make payments for an additional year and then sell it for $250,000. Not to mention the hassle of keeping the home in spotless condition while buyers and their agents are in and out of the house. Price your home right from the start, don’t be an expired listing over and over. It will only cost you money.
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2008 Prescott Real Estate Market Forecast..!!
February 19th, 2008 categories: Home Buyers, Home Sellers, Real Estate News
Who remembers the psychic Jeanne Dixon? We could use someone like her on our team! She could answer the most FAQ 
“what’s the Real Estate market going to do this year?” “Are things going to improve?”, “is my homes value ever going to come back up?”
These are great questions I wish I had answers for. Here are some of my thoughts for the 2008 Real Estate market.
- In 2008, I don’t think that home prices will increase in Prescott, they may even dip a little further. Home prices will not start to stabilize until the back log of homes absorbs and sells. That is a huge ingredient to recovery in the housing market. Foreclosures hitting the market will also effect home prices. Bank owned re-sales are of no value to bank unless they sell. Banks are motivated sellers and often offer homes at reduced prices, putting the squeeze on private home sellers.
- I can say with certainly that the number of Licensed Realtors Will continue to decline. Currently there is not enough business to support the number of licensed Realtors in the Prescott area.
- Interest rates will remain steady, or even drop a little further.
- Buyers are looking for the bottom. When you really look at what is going on in the market, this could be a great opportunity to buy. Interest rates are low, inventory is high, sellers are motivated. Although property values may be flat for another couple of years, your home is an investment you can enjoy for a lifetime. You may not see much appreciation over the next year or so, but you will in the future. In all likelihood, buyers that purchase homes in 2008 will make money in the long run.
- Home Sellers need to except the truth about home values. Many home sellers are still dwelling in 04 and 05 market. Those days are long gone. I know it’s painful to hear that your property is worth considerably less that it was a few years ago, and unfortunately, these market conditions will be with us for a while. So, if you need to sell, bite the bullet and price your home right from the start. If you don’t need to sell, stay put and enjoy yourself until things turn around.
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