I just opened this page to write this post when one of my team called me to see if there was anything that could be done to help in a specific situation. Her phone was not working correctly last night and she has apparently missed out on a potential sale. She was of course upset, but this is the way the real estate business works. When you can’t or don’t answer your phone it is likely that a prospect moves on.
My post today is about other opportunities in real estate which may require action to make the most of them, specifically, the tax credit. I know what you are thinking, I’m a real estate agent and of course I’m going to say you need to rush, and there may be some truth to that.
However, as a real estate agent, I also know what just happened in October, when people who had put off the decision to buy their first home, were writing competing offers, and sellers were holding fast to their price even when there were no other offers. Right now, we are in a buyers market in our area at all price ranges. The advantage a buyer has over a seller is small at the lowest price ranges, but still a buyer’s advantage.
In the month of October I believe we were, and again will be in March and April, in a seller’s market. There will be competing offers and sellers holding fast to prices, knowing the tax credit will be lost if you turn them down.
It’s your decision, but isn’t it worth $6,500 to $8,000 to do a little planning or will you miss out when opportunity calls?
Monday, November 16, 2009
Saturday, November 7, 2009
TIMING HOME PURCHASES
Much has been said today of the first time homebuyer tax credit extension and expansion to current home owners. For details, I suggest this as the most complete. NAR
Zip Realty TV
Aside from the money, what does the tax credit mean to you and why worry about it now? The expectation is to keep the housing market moving in the right direction. After all, doesn’t it make sense that if you might buy a home in the next 18 months or so, that you do it while you can get the gift of a tax credit? Why would you leave that money on the table?
However, keep in mind that that “right direction” is more of what we are seeing in the lower price ranges, with competing offers, and fewer concessions on homes that may be gone before you see them.
Here are some additional reasons to think about the tax credit now:
New construction
For anyone that wants to build a home, it is important to understand that the process from contract to closing often takes in excess of six months. The actual construction is only a part of the time that goes into the process, with permitting and county inspections absorbing up to two months while customized plans, selections and title work easily can absorb another.
Contracts for a home to be built in time to take advantage of the tax credit need to be in place before the end of the year. That means there are about 45 days to choose a community, builder, lot and plan.
Buyers that must sell a home
No one can say how much time it will take to sell your home. Each situation is a little different. It’s hard to say how long sold homes have been on the market. Through a quirk in our MLS system those numbers are hard to come by, because “days on market” refers to the current listing period only.
We do know that there was approximately an 8 1/2 month supply of homes on the market at the end of last month, assuming last months rate of sales would continue. Even in the faster moving under $200,000 market, there is approximately a 6 month supply.
Even if you don’t want to be on the market during the holidays, now is the time to sit down with your REALTOR® and put together a plan. Waiting may cost the $6,500 tax credit.
Homes that will be financed
Interest rates are near historic lows. How long that will last is anybody’s guess. If we are indeed in a recovery, as it appears, some inflation is to be expected and that means higher interest rates.
Higher interest rates translate into decreased buying power for purchasers. For sellers higher rates mean fewer people can actually afford the home.
Only you can decide what is best for you and your situation, but now would be an excellent time for you to sit down with a REALTOR® so that you have all of the information to make a good real estate decision.
Zip Realty TV
Aside from the money, what does the tax credit mean to you and why worry about it now? The expectation is to keep the housing market moving in the right direction. After all, doesn’t it make sense that if you might buy a home in the next 18 months or so, that you do it while you can get the gift of a tax credit? Why would you leave that money on the table?
However, keep in mind that that “right direction” is more of what we are seeing in the lower price ranges, with competing offers, and fewer concessions on homes that may be gone before you see them.
Here are some additional reasons to think about the tax credit now:
New construction
For anyone that wants to build a home, it is important to understand that the process from contract to closing often takes in excess of six months. The actual construction is only a part of the time that goes into the process, with permitting and county inspections absorbing up to two months while customized plans, selections and title work easily can absorb another.
Contracts for a home to be built in time to take advantage of the tax credit need to be in place before the end of the year. That means there are about 45 days to choose a community, builder, lot and plan.
Buyers that must sell a home
No one can say how much time it will take to sell your home. Each situation is a little different. It’s hard to say how long sold homes have been on the market. Through a quirk in our MLS system those numbers are hard to come by, because “days on market” refers to the current listing period only.
We do know that there was approximately an 8 1/2 month supply of homes on the market at the end of last month, assuming last months rate of sales would continue. Even in the faster moving under $200,000 market, there is approximately a 6 month supply.
Even if you don’t want to be on the market during the holidays, now is the time to sit down with your REALTOR® and put together a plan. Waiting may cost the $6,500 tax credit.
Homes that will be financed
Interest rates are near historic lows. How long that will last is anybody’s guess. If we are indeed in a recovery, as it appears, some inflation is to be expected and that means higher interest rates.
Higher interest rates translate into decreased buying power for purchasers. For sellers higher rates mean fewer people can actually afford the home.
Only you can decide what is best for you and your situation, but now would be an excellent time for you to sit down with a REALTOR® so that you have all of the information to make a good real estate decision.
Thursday, November 5, 2009
Market Stability?
Much has been made of some recent reports that show increased housing sales for 8 straight months. There will be another report in about a month that shows 9 straight months. After the October numbers, I'm not sure what we will see, but more than likely an increase over last year, and a seasonal (and end of initial tax credit rush) decline from the previous month.
Let's not forget that the market has two parts, with everyone focused on the demand side of the equation, the supply side is often forgotten. The pundits are saying that there are more foreclosures to come on the market and we can be confident that there are, even if we don't have a good picture of the numbers. I would balance this with the sort of pent up demand waiting for good economic news or a feeling that the housing market has bottomed.
In other words, supply and demand work together to give the market stability. So what is happening on the supply side? The inventory of available homes is shrinking, in some markets very significantly. So while we are not totally there, we seem to be headed towards some stability.
Comparison of the major markets covered by Zip Realty. Chart
Let's not forget that the market has two parts, with everyone focused on the demand side of the equation, the supply side is often forgotten. The pundits are saying that there are more foreclosures to come on the market and we can be confident that there are, even if we don't have a good picture of the numbers. I would balance this with the sort of pent up demand waiting for good economic news or a feeling that the housing market has bottomed.
In other words, supply and demand work together to give the market stability. So what is happening on the supply side? The inventory of available homes is shrinking, in some markets very significantly. So while we are not totally there, we seem to be headed towards some stability.
Comparison of the major markets covered by Zip Realty. Chart
Monday, November 2, 2009
A recipe for your new home
A question came up the other day concerning the practice of real estate agents sending out recipe post cards. I know the theory is to stay in touch and build a brand, but what is the brand? Why would you want to be in touch with someone who sends you recipes for things that you may never want to eat much less make. If you did decide to make something and had a problem, can that real estate agent help?
The real question should be how can this agent help you buy or sell a home? Have they shown that they are familiar with the market (real estate not food)? Are they in dozens of homes each month? Is there an indication that they are a professional? Can they negotiate? Can they discern your needs? Are they willing to work for you?
I’m sure you get all the unsolicited and irrelevant recipes you need from attorneys, bankers, accountants, doctors and dentists, so I’ll try to stick to information that impacts real estate.
The real question should be how can this agent help you buy or sell a home? Have they shown that they are familiar with the market (real estate not food)? Are they in dozens of homes each month? Is there an indication that they are a professional? Can they negotiate? Can they discern your needs? Are they willing to work for you?
I’m sure you get all the unsolicited and irrelevant recipes you need from attorneys, bankers, accountants, doctors and dentists, so I’ll try to stick to information that impacts real estate.
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