This Month in Real Estate September 2010

This Month in Real Estate September 2010 is here early!

September’s video discusses foreclosures, and how California, Florida, and Arizona topped the list in most foreclosures per state.

Maryland foreclosures too are at an all time high, as I discussed in both July & August, up 56.2% in the first half of 2010, and 10th worst in the US.

What the high foreclosure rate is doing is allowing buyers to take advantage of the market. In 2009, 1 of every 4 second home purchases was a foreclosure. This is partially due to the areas hardest hit being in vacation areas, but also due to the possibility of foreclosures being up to a 20% discount over neighborhood market values.

Byron Ellington discussed tips for buying foreclosures. These are great tips for buying a Maryland foreclosure:

1) Expect a little more time to hear back from your offer than you would from a general seller. Banks have a process that can take 12 days or more to respond back to an offer.

2) Understand that most banks sell their foreclosed homes AS-IS, meaning they won’t make repairs on the house for inspections or other purposes. This is especially important to understand if you are using an FHA insured loan, because often there are repairs required by the FHA appraiser — that the seller (the bank) would not agree to fix. If you are planning to use FHA for your mortgage, make sure to speak with your mortgage professional prior to even looking at foreclosed properties to understand your options and obligations.

3) Each bank has their own policies and procedures, so even if your friend or acquaintance has gone through the process, yours may be extremely different, because each bank if very different.

4) Having a real estate professional on your side is very important to help you navigate the waters.

Contact me for more information about buying a Baltimore foreclosure.

This Month in Real Estate August 2010

This Month in Real Estate August 2010 has been released.

As I mentioned in my July 15 post, “Mortgage Rates at Lowest Point in Five Decades,” mortgage interest rates have dropped to their lowest level in the past 50 years. On July 29th, that number was 4.54%! Freddie Mac’s current average interest rate is at a historic low of 4.6% — right at the lowest since it began recording in 1971 (but up from Thursday!).

While it is tempting to wait for a price for a home to drop, what tends to happen is that when prices drop, interest rates rise. Therefore, your payment, even if the price of the house is lower, may be the same or higher than it would be right now!

Contact me more information on buying a Baltimore home using historically low interest rates!

This Month in Real Estate July 2010

This Month in Real Estate July 2010 is here!

May’s sales across the United States were down 2.2% from April, but May closings were up 19.2% from May 2009. I am certain much of this is due to the extended homebuyer tax credit and buyers working to ensure they close long before the settlement deadline of June 30.

Though the tax credit is gone, interest rates are low, and housing prices are also low. Buyers can take advantage of these lows and possibly use an FHA to buy a home — and some may be eligible to have most of their closing costs paid for by the seller if they are able, or have some of their costs rolled into the loan, so those lucky buyers may only need about 3.5% (the downpayment minimum) out of pocket to get into a new home.

There are other FHA loans available as well, including some to get your home more energy efficient, FHA203K rehab loans to rebuild a fixer upper, and other FHA loan programs to assist in better homeownership.

For more information about Baltimore FHA home financing, please contact me today.

This Month in Real Estate June 2010

This Month in Real Estate June 2010 is here!

The number of foreclosures was down last month, with the thought that sellers are looking to short sales to prevent foreclosure.

Buyers are seeing short sales as a way to buy a house at a less expensive price — and enjoy the low interest rates at the same time.

The short sale process is explained very well, detailing that on average it takes 62 days for a bank to RESPOND to a buyer’s offer on a short sale, and an average of another 67 days to close.

A timeline of one of the houses used in the study is used to demonstrate the short sale process.

Day 1: Seller misses payment.
Day 7: Real Estate Agent is called in to help determine if seller may qualify for a short sale.
Day 13: Seller signs listing agreement to sell the house.
Day 25: Buyer’s offer is accepted by seller. Agent submits short sale documents including offer to the lender.
Day 35: Lender creates a short sale file for the property.
Day 50: Lender assigns property to an independent appraiser or agent to determine estimate of value (through what is called a BPO — Broker’s Price Opinion).
Day 65: Lender reviews property value estimation. If there is a gap, then this can take more time. Agent & owner can appeal valuation, but this is a process.
Day 90: Agent received letter of approval of short sale.
Day 110: Short Sale is closed, property is settled and transferred to buyer.

Remember, this is just an average. Many can take more time, some may take less. Many times it depends on the number of lien holders involved in the transaction. The more lien holders, the longer it may take, or the less likely it may close.

Contact me more information on selling a Baltimore home.

This Month in Real Estate May 2010

This Month in Real Estate May 2010 is here!

April 30, 2010 marked the end of the Homebuyer Tax Credit. Though there was an small uptick in sales from qualified homebuyers, this does not truly mean the end of the spring market for sellers who are currently on the market or getting ready to go on the market.

Three tips are given in the video for homesellers to make their house ready for sale and more marketability.

1) Price it right. Be ahead of the curve and price more aggressively than the ones recently sold in your neighborhood.
2) Get a pre-sale home inspection. Then you can fix things up front and have your house ready for buyers without worrying about what may pop up during an inspection and cause re-negotiations.
3) Consider all offers. Notice they say “consider”. Sometimes a lower offer than you wanted or expected may have better terms and conditions than one later on. Keep in mind that an offer with a lot of contingencies or conditions has a more likelihood of something not going correctly than one that has less.
Finally, contact a local real estate professional.

For Towson real estate professional advice, contact me today.