Archive for October, 2012

overheard these at a bank executive meeting..

Tuesday, October 30th, 2012

- received bailout money so no hurry to close this short sale

- let’s rent out these foreclosed properties

- foreclosed golf course now making money, no need to sell it

- borrowing from Fed at .05% interest and loaning out at 4-8%

- paying saving/cd/checking accounts less then .05%, loans are higher

- bonuses this year with all the money made from Govt and savers

What you should be hearing is: ‘ASAP - let’s close these short sales, sell the foreclosed properties, plus with the money from the savers and government make more loans and let’s get the housing/economy moving forward’

Why are inventories so low?

Thursday, October 25th, 2012

The inventory of houses on the market for sale are at 20 year low. Where are the sellers? Here are some key reasons homeowners aren’t selling:

- Credit score - sellers are worried they will not be able to get a mortgage on their next house, so they are staying put

- Underwater - even with values improving, many home values are less then the amount owed

- Refinanced - sellers that refinanced at 4% or lower are quite happy with their payment and plan to stay

- Investors - large amounts of property is now owned by investors with a plan to rent out for several years and not sell any time soon

- Low Price - sellers are proud of their property and won’t sell for less then they paid for it

- Moving expense - face it, moving costs money and right now people would rather save then spend

- Bank owned - foreclosure properties are still a mess. Without absolute proof of ownership the banks are holding on to a lot of properties

Pop ups distract buyers looking at your home

Wednesday, October 24th, 2012

Pop up, flashing and scrolling advertisements on a web page are very distracting. You are trying to read about a property to buy and these ad’s just don’t stop. These advertisements are a form of revenue to the website owner, but in fact, deter and distract the customer from actually doing business. They are acts of desperation to keep revenues flowing. At www.FSBO.com you will not see pop up ad’s, scrolling or flashing ad’s. The priority is to the property owner and to the buyer trying to learn more about the property. Over the years I have found myself becoming a ’speed’ reader, just trying to read an article fast and move off of the website because of the annoying ad’s.

So you want to be a real estate investor…

Monday, October 22nd, 2012

here are a few things you should know (to simplify, mortgage company and government owners shall be referred to as ‘bank’):

- offering a ‘cash’ purchase means nothing to the ‘bank’

- the ‘bank’ really doesn’t like investors, they prefer to sell to ‘owner occupants’

- many lower end/high cash flow areas limit rentals to 25% of all properties and these areas are filled up

- you may have to wait for one to two weeks before you hear back on your offer to purchase

- short sales still take up nine months or longer to close

- renters rights are strong and getting stronger in most states

- renters will pay their car payment, cell phone and cable bill before they pay you the rent owed

- house prices and interest rates will be higher in the spring, so you better act quick

FSBO.com sellers exempt from paying 3.8% tax

Thursday, October 18th, 2012

FSBO sellers with adjusted gross income of less then $200,000 ($250,000 couples) will not be affected by the new law beginning January 1, 2013 which will tax 3.8% on the sale of real estate with investment income. Even if your income is above those limits, you are still entitled to $250,000/$500,000 gain exemption on your primary residence. This new tax raises $210 billion over 10 years and all proceeds will go into the ‘Medicare Trust Fund’. If you think you are above these limits and you are contemplating selling your real estate, you need to consult with you tax preparer for your individual situation. Here is just one of many articles on this subject: Washington Post

Homeless sellers increasing

Wednesday, October 17th, 2012

More and more I hear stories of sellers closing on their current property and the new home is not ready. Some have purchased a new home, but the closing is delayed. Or most likely they were surprised how quick their current property sold and were unprepared on where to move. The stories include moving all furniture into a storage unit, then either living in a motel or with relatives. Some quotes: ” I’m 60 years old and this is the first time in my life I am homeless” and “I’ve been homeless for six months now”  The days of sell first, then worry about the next home later is fast becoming a thing of the past. We’re seeing a normal market return and sellers asking the question: “do I sell first then buy or do I buy, then try to sell”

Is Sentiment Shifting?

Thursday, October 11th, 2012

Sentiment to buy real estate is shifting when someone tells you:

- after over two years on the market, their property has sold

- they can’t find a house to buy

- they had to offer more then the asking price

- the perfect house to buy had multiple offers and they didn’t buy it

- the quoted mortgage interest rate is higher when you close

- agents start having Open Houses on weekends

- Seller delayed responding to my offer

- winter is the slow time, but I still am having showings

More interest in FSBO properties

Thursday, October 4th, 2012

Buyers of ’short sale’ properties are finding it very difficult. With banks having the final say as to what price they will accept, once again they are delaying the closing. Banks are seeing real estate sales and prices move up and they are waiting and hoping to take smaller losses on the ’short sale’.  With these delays, buyers start to look at FSBO properties. A popular database can be found on www.FSBO.com

Interest in FSBO properties increasing

Wednesday, October 3rd, 2012

Buyers of bank owned properties are finding it very difficult. Here is a recent response to buy a bank owned property: “I am sending out notification to all 40 offers this morning that another offer has been accepted…” This highlights the increased competition for these properties. Reduced inventory and increasing prices have moved buyers to look at FSBO properties. A popular database can be found on www.FSBO.com