An Improving Real Estate Market...Missing out???

The Market is improving!!!

              The Market is Improving!!!!

                           THE MARKET IS IMPROVING!!

The news continues to be very positive for the housing industry.  Though, not yet robust and completely healthy,

the Real Estate Market is on the uptick.

Lack of inventory in many markets is pressuring prices.  Jim notes below that it is due to investors snatching properties off to convert to rentals thus keeping homes off the market. It may also be due to sellers not yet knowing now is the time 

to act while the competition is low.  In Hampton Roads, we are roughly 30% lower in inventory than we were in 2011.

With buyer activity beginning to tick up(low low interest rates and pent up demand), we could see complaints about no inventory to meet demand.  As each Real Estate market is really a local market, this will vary throughout the country.

I know I have seen my homes selling in less than 30 days in the past three months or so.   Even homes in the higher price ranges are seeing improved activity...could see a couple of contract this week on these homes!!

Read below and consider...is it time for you to dive in???

It is an awesome time to buy or sell!!!

Keeping you updated on the market! For the week of  August 13, 2012 MARKET RECAP The foreclosure data continue to trend positively. RealtyTrac reports foreclosure filings declined 3 percent month-over-month in July and are down 10% year-over—year. We are not surprised by the downward trend in foreclosures; it's simply more remunerative for banks to seek other alternatives than taking back a house. RealtyTrac reports that short sales, on average, sell for $25,000 more than an REO property. Banks are no doubt being helped by the persistent uptrend in prices. On that front, CoreLogic reports national prices rose 2.5 percent year-over-year in June, and 6 percent in the second quarter of 2012 compared to the first quarter. Supply is a main price driver: there simply isn't enough supply to meet growing demand, particularly in the starter and low-price segments. Investor demand is impacting supply. Given the strong rental demand in many markets, investors are buying homes and turning them into rentals instead of flipping them; thus keeping the properties off the market. As for new-home supply, builders only recently began to ramp up construction. New-home inventory is at levels unseen in decades. (Keep in mind; decades ago there were also fewer people.) More demand and less supply can only lead to one outcome – higher prices. At the beginning of the year, few pundits were expecting prices to rise in 2012. Today, many have changed their tune. Zelman & Associates, a real estate research firm, for one, recently revised its forecast, predicting prices will rise 5 percent nationally in 2012. At the beginning of the year, Zelman's forecast a 1-percent decline. Negative equity remains a problem in many markets, and that's also helping to keep supply low. But as prices move higher, more of these properties will turn positive. An even stronger price trend will, in turn, draw more buyers and more sellers into the market. That means more overall transaction activity, which means rising mortgage purchase demand. As for rates on current mortgage demand, they moved up this past week. Most products saw a three or four basis-point increase. Given the trend in 10-year Treasury yields, we don't expect to see a pullback. Over the past two weeks, the yield on the 10-year Treasury note has increased nearly 30 basis points. This suggests that investors are becoming less risk averse, pulling money out of Treasuries and putting that money into riskier investments: Over the same two-week period, the S&P 500 stock index is up over 6 percent. Yes, the Federal Reserve has stated that it's determined to hold long-term lending rates low for the next two years, but don't assume the Fed can automatically achieve its goal. Markets are dynamic forces, and if more investors sell bonds in favor of other investments, yields on Treasury securities will continue to rise. That means mortgage lending rates will rise too. Economic Indicator Release Date and Time Consensus Estimate Analysis Producer Price Index (July) Tues., Aug. 14, 8:30 am, et All Goods: 0.2% (Increase) Core: 0.2% (Increase) Moderately Important. Lower energy prices are keeping producer price inflation in check. Mortgage Applications Wed., Aug. 15, 7:00 am, et None Important. Purchase activity remains flat, which points to flat home sales for the month. Home Builder Index (August) Wed., Aug. 15, 8:30 am, et 36 Index Important. Sentiment is approaching a five-year high, which bodes well for the sector's outlook. Housing Starts (July) Thurs., Aug 16, 8:30 am, et 765,000 (Annualized) Important. Rising residential construction is helping to stimulate economic growth. Don't Expect Perfection The problem with vetting national numbers is that local markets rarely reflect the national numbers. This causes problems, mostly due to false or unrealistic expectations if the local numbers don't gel with the national numbers. The fact is there is never a perfect time to buy or sell a home. Only in hindsight do we realize that our timing was good, or maybe not so good. That said, it's important not to be paralyzed by the fear of not selling at the top or buying at the bottom or financing at rock-bottom rates. There are still pundits (most notably Fiserv) who think falling home prices are in our future. Unfortunately, that expectation gets reported at the national level and is interpreted to mean prices in most markets will fall. This isn't the case, but it tends to attenuate activity through fear. We are keen to emphasize that markets are local. But even in local markets that are rising, there will always be concerns about prices backsliding or the economy tanking. The key is to always factor in where we are in a historical context. Looking at the big picture removes some of the worry and places a long-term investment like residential real estate in the proper perspective. It also increases the likelihood of making a profitable purchase or sale.

The Sky IS NOT FALLING

What to Do??? What to Do??? (edit/delete)

The question of the day!!  After two days of "smashing" Wall Street loses, I have heard questions from friends and clients alike about what to do now that the "world is collapsing".

Any one remember Moses' line in the movie "Ten Commandments" when he finds out that he is viewed different now that he has found that he is the son of a Hebrew slave.  He says, "Are these not the same arms, same hands that were mine a moment ago."

Basically, it is the same question we must answer now but with a different basis.  We are the same country with the same economic environment.   We have the same industries, the same 9.2% unemployment, the same 4 to 4.5% mortgage rates, the same declining foreclosure market and strengthening finance/bank environment.

For instance, last Friday's loss on Wall Street at 5% equated to $3 Trillion dollars.  Do you realize that means there is $600 Trillion of your and my money invested for future gain?????   Then imagine the Trillions invested between Commercial and Residential Real Estate. Not to speak of oil reserves, intellectual capital ect ect.

We must stay focused on the big picture and not the sound bites that the news media may use to alarm us as they focus on "the news of the moment".

So if you have investments don't run!

If you plan to buy a new home or business, move forward!!!  Interest rates and banks openness to lend is improving it seems daily.

The future is bright though a few clouds are on the horizon

Bryan Cerny, Associate Broker, GRI, ABR, SRES, SFR
Rose &Womble Realty, Chesapeake, VA
Licensed in VA & NC

 

Moving Forward...Always Forward

Moving Forward...Don't Look Back (edit/delete)

More often than not, we all love to play "Monday Morning Quarterback".  We love to rehash the plays that failed and those that were are highest moments of success.

And the Real Estate Market faces the same dilemna day in and day out.  When the market was crazy in 2004/2005, buyers and sellers saw the quick sales pace so differently.  The buyers moaned about the home they bought was there third or eighth offer and they finally got a house, wondering in the coming months if it was a good purchase or just bought because "it was the only one we could land".

The sellers estatic at their good fortune of a quick sale at a price they never thought they would get soon feel like they fumbled the ball.  Their old neighbor only three months time sells his home for $10,000 more!  "Oh, did we sell too quickly??  Did we leave money on the table?"  the seller might have wondered as he rehashed the events.

Neither party frequently retained the joy of the transaction by second guessing the result.  Not much is to be gained by this action but it continues.

Though interest rates are as low as they have been in 50 years, inventories lower than 2010 and market conditions in many areas of the country have improved, "Monday Morning Quarterbacks" abound.  Who hasn't heard some one moan about the impact of short sales and foreclosures on home values while buyers snap up these bargain(with the challenges involved) thus reducing the possible glut of depressed values!!!

Or the home owner with $50,000 equity wondering if just would have sold two years earlier when prices were "stronger" that doesn't realize he would have paid more for the house he purchased at that time.

Rather than looking in the rear view mirror, march ahead!!!   Realize in Real Estate as in life, the present reality is the "reality" we live in.  There is no such thing as the "New" Reality....it just  is.

If you are ready to move forward, knowing that is the only way to go, you are ready to take advantage of this market's current reality...the only one there is!!!

Bryan Cerny, Associate Broker, GRI, ABR, SRES, SFR
Rose &Womble Realty, Chesapeake, VA
Licensed in VA & NC

 

Regardless of the field of knowledge, we always look to an expert to provide us the advice and direction to be successful.  Just look at how many of us watch HGTV, Doctor Oz and go to Personal Trainers besides seeking the best lawyers, doctors and dentists that we can find.

In the same way, in buying or selling real estate, one needs the expertise of someone who can guide him/her through the intricacies and complications of a real state transation while have his/her very best interest in mind.

Yet....

                             How to Choose A Realtor???

Key Questions to ask is Selling Your Property:

1.      Are you a Realtor?  If so, tell me what value it brings to me.

2.      What percentage of your potential commission will go to advertising my property?   What sources of advertising do you use and why?

3.       Where does your company rank among the Real Estate Companies in

   Southside Hampton Roads?

4.      What services does your company provide that differentiates it from your competition?

5.      How many offices and agents are associated with your firm? What advantage is that to me?

6.      Describe your Buyer Pool?  How will that impact the sale of my house?

7.      What Relocation assistance can you provide?

8.      What assistance can you provide in me preparing my house to sell?

9.      What specific experience do you have selling in this neighborhood?

10.  How do you:

1)      Ensure I don’t move until I’m ready to move? 

2)      Ensure only qualified buyers see my house?

3)      Ensure the potential buyer has solid financing?

11.  How does the Standard Purchase Agreement work in my favor?

12.  Where do you rank in your company in sales and listings?  In Hampton Roads?

13.   How many years have you been a Realtor?  Number of Circle of Excellence Awards or other awards?

14.   Do you have letters of recommendation that you can provide?

Don't Be Scared...of Short Sales

The latest in horror shows....The Short Sale!

   If you were to read the press and speak to some real estate agents or buyers, you would hear exclamations of fear and trepidation.

What is a Short Sale?  

 The sale of a home by a party that needs to move that owes more on the home than the present market(buyers) will pay for the home

Yet, no home purchase or home sale needs to be a "fearful" venture.  Though no two home purchases/sales will ever be the same, it is true that a Short Sale brings extra wrinkles to the process.


The biggest wrinkle is that the Bank(s) holding the mortgage liens must approve the sale price and terms that the ready and able buyer and the ready and able seller agree upon.  A second wrinkle is the seller's lack of funds to do any repairs; home is sold "as is".  Typically, a home inspection is allowed but only as a "check point" for the buyer as no repairs will be completed.

Thus, a buyer or seller must be prepared for:


    A:  Probable slow response for the bank's approval of the contract
    B:  Additional forms or submissions of documents at the
             time a contract is ratified by the buyer and seller.
    C:  Conflict between 1st Lien Holder and 2nd Lien Holder(s)
    D:  Contract falling through due to home inspection noting
             major system faults in home or the buyers/sellers 
             unwillingness to accept bank's terms of sale.

Recognition of these factors plus proactive steps by a buyer or seller will relieve much of the stress and "pain" of the transaction.


Steps the Seller can take:
     1.   Contact Bank immediately for Short Sale package, gathering 
               all the information required.
     2.   List your home with an SFR(Short Sale and Foreclosure 
               Resource) certified Realtor. 
     3.   Be honest with Realtor regarding mortgage(s) owed so that
               a "possible short sale" can be recognized and addressed.
     4.   Contact and secure the services of a Real Estate Attorney
     5.   Consult with your accountant regarding the tax implications
     6.   Assist in all matters that any party requires in a timely
               manner.


Steps the Buyer can take:


     1.  Search for homes with an SFR Realtor.
     2.  Recognize that Short Sales will require a longer than
            normal closing time.
     3.  Recognize that Short Sale doesn't always equal "Bargain".
            It is not unusual to see a Short Sale priced higher than
             the market will bear.
     4.  Recognize the Seller may agree to a "low ball" offer but
            the Bank may reject the "net proceeds" it will receive.
     5.  Have Title Work completed prior to submitting an offer to
            verify the liens on the property(your Realtor can ask
            the Seller's Realtor but it is possible that Realtor doesn't
            have the whole story).
      6.  Read all of the Bank's addendums to the Sales Contract!!!
             Submit to your attorney anything you don't understand
              or can't believe you must adhere to.


So don't run "Scared"...... Be Prepared!!!


Questions???  


 Ever buy a short sale?? 
                                        WHAT DID YOU EXPERIENCE???
Did you ever need to sell short?


          

    

Prepared for the Millennials(Generation Y) Assault on Real Estate??

Perhaps you have heard of the Millennials(individuals born between '80 & '95).  Maybe you raised two or three of them!

Yet 74 million strong, they rival their Baby Boomer parents/grandparents as the largest home-buying consumer "class" of all time.  

If one of these 74 million Millennials is the buyer, how will they find your home?  I assure you it won't be in the paper!   But they are an inquistive bunch as they have found that they can "Google" anything and can "Facebook" to learn about anyone, so they will love to come to your open house.

Many of the Millennials will be your 1st Time Home Buyer or look to move up to their second home(Very Mobile!).

So be sure you have a Realtor who will reply to a text question or email(if they bother with it) quickly...or they will move on to the next house...instant answers and high service are required by these buyers!  But beware "assuming" one buyer of this age group is like another!!   You'll suffer for it if you do!

Ensure there are lots of photos and/or tour and/or video of the home. Seeing is believing...if I can't see it, I don't believe.

So be smart, list your house with a Realtor that is tech savvy...if he or she says they are it will be very apparent...just "Google" them today!
If he/she isn't there with their website or their listed homes don't come up immediately, you will know!

And yes, that is how this group of home buyers/sellers could find their Realtor to sell a home they now own..but they are onto Facebook, LinkedIn and beyond to get "comfortable" with who this Realtor is!!

They are a savvy group!!   A wonder and a pleasure to work with!!!!

Preparing to Sell A Home

With the market as it is today, Sellers must do the extras necessary to make their house standout. Buyers have a choice, and as noted in the news today, and is armed with knowledge that prices are flat in most markets.

So what can a Seller do to maximize their home's value?

The first and most important task is to take careful stock of the house's present condition.
Using a form such as that shown here can help!

Home Preparation Checklist

First impressions are often lasting ones. It is absolutely vital that prospective buyers form a good opinion of your home from the moment they drive up. Homes that convey pride of ownership often sell more quickly and frequently receive the best offers.

Landscaping
Lawn _______________________________________________
_______________________________________________
Hedges / Flowerbed _______________________________________________
Fences / Gates _______________________________________________
_______________________________________________
Walks / Driveway _______________________________________________
_______________________________________________
Exterior
Paint _______________________________________________
_______________________________________________
Porches / Decks _______________________________________________
_______________________________________________
Siding _______________________________________________
_______________________________________________
Front
Door _______________________________________________
_______________________________________________
Roof / Gutters _______________________________________________
_______________________________________________

Entry, Living Room, Dining Room
Floors / Carpeting _______________________________________________
_______________________________________________
Walls / Ceilings _______________________________________________
_______________________________________________
Fireplace _______________________________________________
_______________________________________________
Window
Coverings __________________________________________
_______________________________________________
Furniture
Arrangement _____________________________________________
_______________________________________________

Kitchen
Flooring _______________________________________________
_______________________________________________
Walls / Ceiling _______________________________________________
_______________________________________________
Cabinets _______________________________________________
_______________________________________________
Countertops ______________________________________________
_______________________________________________
Appliances _______________________________________________
_______________________________________________
Sink / Faucet _______________________________________________
_______________________________________________
Bathroom(s)
Floor / Carpeting _______________________________________________
_______________________________________________
Walls / Ceiling _______________________________________________
_______________________________________________
Window Coverings _______________________________________________
_______________________________________________
Closets _______________________________________________
_______________________________________________
Furniture Arrangement _______________________________________________
_______________________________________________

Basement
Stairway / Handrails _____________________________________________
_______________________________________________
Floors _______________________________________________
_______________________________________________
Storage Areas ___________________________________________
_______________________________________________
Finished Areas _____________________________________________
_______________________________________________
Garage
Door / Opener _____________________________________________
_______________________________________________
Storage _______________________________________________
_______________________________________________
Floor _______________________________________________
_______________________________________________
General
Windows _______________________________________________
_______________________________________________
Doors _______________________________________________
_______________________________________________
Lights _______________________________________________
_______________________________________________
Cleanliness _______________________________________________
_______________________________________________
Odors _______________________________________________
_______________________________________________
Access _______________________________________________
_______________________________________________

After conducting this exhaustive survey of the house, the home owners are ready to determine what work they can do and that which they will need to seek a professional's assistance with.
Frequently, at this juncture, homeowners contact their Realtor to attain his/her expert advice on the most necessary items to address.

Upon determining what they can do and what to pay for, the homeowners must get a strong reference from a trusted individual or get a minimum of three estimates. IF a homeowner is referred to a contractor, the homeowner must ask the following:

1. The frequency that the referring party has used the services of the contractor
2. The complaints lodged or short comings noted in past work
3. What assurance of "best price" for "best quality" can be provided
4. Is the contractor licensed and insured
5. What is contractor's familiarity with said repairs/work to be completed.

If you find any unsatisfactory answer to these questions, be sure to get multiple estimates and get the estimates in WRITING!!!!