FSBO BLOG

The National Association of Realtors today, June 2nd, reported its seasonally adjusted index of sales contracts signed in April surged 6.7 percent to 90.3. It was the biggest monthly jump since October 2001. The mortgage markets are starting to see pressure to raise interest rates mainly because of the massive Federal Goverment borrowing. Banks are in better financial shape and are reluctant to lower the price of their REO properties. You better hurry if you plan to take advantage of low interest rates and low house prices. Remember what I wrote on March 12th, 2009: “FSBO.com predicts the bottom in housing sales will be in the 4th quarter, 2009, as last minute buyers take advantage of the 1.tax credit expiring 12/31/09  2.low interest rates  3.depressed housing prices” 

THE GOOD NEWS: The inventory of previously owned homes on the market dropped to 3.7 million in March from 3.8 million a month earlier and this is down from 4.6 million in the middle of 2008.

THE BAD NEWS: U.S. banks held $26.6 billion of repossessed real estate at the end of 2008, more than doubling from a year earlier, according to the Federal Deposit Insurance Corp. in Washington. The banking industry lost $26.2 billion in the fourth quarter, the largest loss in FDIC records.

Until the banks sell off this massive inventory, real estate sales will continue on the pace seen in the past six months.  Instead of giving the banks loans at less than 1% to prop them up, the Federal Government should offer to buyers of bank owned property mortgages at 1% through FNMA or FHA. Taking this property off the market will increase the value of properties owned by the general public and improve the balance sheets of the banks. It’s a ‘win win’ situation.

FSBO.com has been getting a lot of calls this week on the $8,000 First-time Home Buyer tax credit being offered by the federal government through The American Recovery and Reinvestment Act of 2009.  Glad potential home buyers are taking notice to this awesome incentive!  Here are the most frequent questions being asked…

If I already filed my taxes for 2008, yet bought my home in 2009 when should I claim my credit?  You have two options if you have already filed your 2008 taxes.  From the IRS website…

Do I qualify for the tax credit if I buy the home from a relative?  From IRS Form 5405…”You cannot claim the credit if the following apply - You acquired your home by gift or inheritance or You acquired your home from a related person.  A related person includes: Your spouse, ancestors (parents, grandparents, etc.), or lineal descendants (children, grandchildren, etc); A corporation in which you directly or indirectly own more than 50% in value of the ourstanding stock of the corporation; A partnership in which you directly or indirectly own more than 50% of the capital interest or profits interest.”

I am buying the property with a person who is not a first-time home buyer nor is my spouse, but I am a first-time home buyer.  Am I still eligible for the tax credit?  Yes, you may depending on your specific situation. This notice from the IRS gives several good examples and further explanation.

Please visit the FSBO.com Tax Credit page for more information and links to other resources.  We recommend you consult a tax professional for more specific information that may pertain to you, as several states also have local policies. 

Thursday, March 12, 2009 AP Report: The average rate on a 30-year fixed mortgage slipped to $5.03 percent this week from 5.15 percent last week. A year ago, the 30-year fixed-rate mortgage averaged 6.13 percent.  “Mortgage rates had room to ease this week following news of a weaker jobs market, which may slow consumer spending and keep inflation at bay,” said Frank Nothaft, Freddie Mac’s chief economist.

FSBO.com predicts the bottom in housing sales will be in the 4th quarter, 2009, as last minute buyers take advantage of the    1.tax credit expiring 12/31/09  2.low interest rates  3.depressed housing prices

2010 will see a return of 6% mortgage rates, higher home prices and reduced inventory.   

2 out of 3 cities in the US are seeing their revenue in decline according to a recent survey  by U.S. League of Cities. Cities and towns need to raise rates after their main sources of income — sales, income and property taxes — declined together in 2008 for the first time in 12 years, the League of Cities survey said. Assessed value you pay your taxes on went up while market value went down is a growing problem for homeowners. It’s time to contact your local assessors office to review your value. Who’s done this? We know many investors owning several properties, that use FSBO.com to sell & rent their property, have quickly complained and requested a new assessment. Don’t delay!

Who’s done this?

Home prices are falling for many reasons. One reason, is the increasing number of Bank owned real estate (REO properties) on the market for sale at low prices and getting reduced even lower. In an attempt to slow down the number of new foreclosed properties coming into the market for sale, the Federal Government has a new program as part of the ‘Financial Stability Plan’.  7 to 9 million homeowners may benefit from the Making Home Affordable program.

Click here for the ‘Government website’

Click here for the ‘Government Announcement’

Click here for the ‘Guidelines’

FSBO.com wants to know if you or someone you know will take advantage of this program and if you think this will help the current real estate environment?

Video is becoming more and more popular these days.  According to a recent article in the Atlanta Business Chronicles, 77 percent of the total U.S. Internet audience viewed online video in October 2008.  Adding a video to your online real estate listing is quick and easy. Most digital cameras these days are capable of taking a short video.  FSBO.com can accept most video file formats, and there is no additional charge to add a video to your listing. 

For additional statistics on why it is so important to add a video to your Internet Listing, please view the following article online:  http://atlanta.bizjournals.com/atlanta/stories/2008/12/08/daily40.html?ana=e_duThe FSBO.com Photo department is more than willing to help you get your video posted online.  If you have any questions, please do not hesitate to email us at photos@fsbo.com. 

FSBO.com just wanted to clear up any confusion that there may be about a recent press release from yesterday claiming YOU can list a property on Realtor.com without an agent.  One of the most popular questions www.FSBO.com receives is “Can I list my property on Realtor.com without using an agent and listing in the MLS?”.  The answer has always been, and still is “NO”!

There is absolutely no way to list your property on Realtor.com without first having it listed in the MLS.  There is absolutely no way to list your property in the MLS without using a licensed Realtor.  The only thing you can control is the actual amount that you pay to have your property listed on the MLS and Realtor.com. 

FSBO.com and similar companies have services that allow you to do this for a flat fee as opposed to a commission.  Any company claiming to be the only, or first to offer this type of service has been mistaken.

Third quarter results are in for the FSBO.com Home Index.  Here is a brief summary of what our survey found…

Regional Results…

View more information on FSBO.com - http://www.fsbo.com/press-room-51/

What do you think?  Are these results consistent with what you are seeing in your area?

HGTV is currently looking for First-time Home Sellers to be part of their new show “My First Sale”.

Here is a brief description of the show and what they are looking for…

“MY FIRST SALE, a brand new show on HGTV, is kicking off its first season and looking for first-time home sellers in the Denver/Metro area.

Taping is getting underway this month. Ideal candidates will be interesting, energetic, financially open (people who don’t mind sharing frankly on camera about the experience and the purchase details.)”

If you are interested in participating, please leave a comment with your FSBO.com ID #.

Hopefully this will turn in to some NATIONAL media exposure for your property!