Archive for April, 2013

Housing supply vs demand update

Monday, April 22nd, 2013

April news is a continuation of recent reports with short supply of properties for sale, actual sales increasing and sale prices improving. Currently 1.93 million homes for sale, average time on the market of 4.7 months, and average increase in sale price of up 11% from a year ago. FSBO.com keeps getting reports of ‘Under Contract’ in less then 14 days. Buyers are driving around areas looking for new ‘for sale’ signs. Don’t use an agent right away when your buyer is waiting for you. If you need a little help, go the Flat Fee MLS route first. Save thousands of dollars and keep control of your situation.

Distressed properties are selling fast and now represent the smallest percent of properties for sale in the past five years. Big buyers continue to jump on anything HUD, FNMA, or banks put on the market. An example of some of the big buyers are: Goldman, Sachs, with over $1 billion to spend and already purchase 2,500 homes to rent out. They plan to raise another $1 billion and keep buying until 2016. Blackstone Group has $2.5 billion and has been buying for the past year with still more to go. In local markets many smaller investors continue to buy.

Mortgage rates still below 4% and owner occupied buyers need to lock in these rates and buy before the big boys push up prices even higher.

Under contract in 24 hours

Thursday, April 18th, 2013

We know sales are increasing and prices are moving up. Here is another example. FSBO.com/161264. This property was freshly painted and had new carpet installed. Asking price higher then any sales from this large subdivision in the past three years. Written offer came in within 24 hours of posting on the Internet and was accepted. Another offer came in 48 hours later. While prices in this area were higher seven years ago, but nothing has sold this high in the past four years. Prices are rising and buyers are out there just waiting for new listings. The lesson here is:

1. have your property in move in condition

2. if using Flat Fee MLS don’t pay over 2.5% commission

3. use professional signage, brochures, QR code

4. answer your phone and email quickly

5. be flexible with showing times

6. have a mortgage company, title company, closing attorney, contracts ready to go

Under Contract FSBO

Government is encouraging you to own

Monday, April 15th, 2013

Here are a few things the Federal Government is doing to help you own a home:

1. HARP program extended for two years until Dec 31, 2015. This Fannie Mae & Freddie Mac program is for ‘underwater’ homeowners with a high interest rate mortgage. Instead of letting your property go into foreclosure, you can refinance and have a much lower monthly payment.

2. Federal Reserve has been buying 85 Billion dollars of debt instruments per month, which increases the liquidity of banks and keeps interest rates low. They have said they will continue until the end of 2015

3. HUD and Fannie Mae have houses for sale at prices way below others in the same neighborhood. They will only allow ‘owner occupied’ buyers, so you do not have to compete against big money investors when purchasing.

4. Congress had a chance to remove the ‘mortgage interest’ deduction, but they did not. Any talk now about this only involves people making over $250,000 per year.

5.Congress also had a chance to change the taxation on the profit when selling, but they did nothing. So,  no tax on the profit when you sell your home if it is under $250,000 gain. Married couples have the first $500,000 gain exempt from taxation.

Only one way to get your house sold?

Wednesday, April 3rd, 2013

and if I knew that one way I would immediately share it with you. Unfortunately, with each home sale, the buyer found your property in a different way. Some found your property on the Internet, others found it from a friend or neighbor and other buyers found your property from an Open House, flyer, yard sign, an agent, a mortgage broker, newspaper ad, direct mail, etc. There is no one way, that is why you need maximum exposure along with a professional presentation. Painting ‘for sale’ on a piece of wood and nailing it to a tree may work in very rural areas, but most homes are not in a rural area. Most homes are in densely populated areas and you have a lot of competition. After 15 years of helping sellers with Internet and other marketing ideas, FSBO.com offers almost everything you need. Coordinated and professional looking yard sign with QR code, directional arrows and Open House signs. Professional website and individual link to your property, as an example: www.FSBO.com/160655.

FSBO QR Code

Open House dates and unlimited photos. If you need help with Home Evaluations, Legal Documents or mortgage companies, they also can be found at FSBO.com. Not only is Internet advertising important, you need to know how many people have actually looked at your property, simply log into your account to see the numbers. Once logged in you can also add/delete photos plus edit your property information. It is obvious, the first place to start is at www.FSBO.com