Existing-home sales were down again, according to the latest report from the National Association of Realtors (NAR).
This is part of the "uneven recovery" that NAR chief economist Lawrence Yun reports. "Housing affordability conditions have been at record levels and the economy has been improving, but home sales are being constrained by the twin problems of unnecessarily tight credit, and a measurable level of contract cancellations from some appraisals not supporting prices negotiated between buyers and sellers." Tight credit has hit both sides of the real estate market, affecting both buyers and builders.
NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said buyers should look into loan availability as soon as they decide they want to buy. “Despite very affordable mortgage interest rates, credit remains a challenge – buyers should check their personal credit, and mortgage availability in their area,” he said.
“Realtors are an excellent resource to learn about all of the marketplace factors, but in this tight credit environment it’s important to learn up front what a lender might be willing to offer as well as specific programs that might be available in your location,” Phipps said.
There's other good news on the horizon, as well. The economy is recovering, albeit slowly.
Changing industry climate has brought about numerous changes this month and season. According to the NAR, first-time buyers now make up 34 percent of homes sold. This is up from January's rate of 29 percent. Just a year ago this rate was 42 percent, but was then fueled by the first-time buyer tax credit.
All-cash sales were a record 33 percent in February, up from 32 percent in January; they were 27 percent in February 2010. There is a "record level of all-cash purchases where buyers – largely investors – are snapping up homes at bargain prices,” Yun explained. “We’d be seeing greater numbers of traditional home buyers if mortgage credit conditions return to normal.”
And how much are people spending these days? The national median existing-home price for all housing types was $156,100 in February, down 5.2 percent from February 2010.
Distressed homes still accounted for a large percentage of total sales. Total distressed sales were 39 percent of the market.
And finally, total housing inventory at the end of February rose 3.5 percent and is now a 8.6-month supply.
Your Real Estate Agent
Tuesday, March 22, 2011
Wednesday, January 26, 2011
Top 5 Reasons a Home Buyer Needs There Own Agent
When Real Estate is listed for sale the listing contract calls for the seller to pay a set commission to the Realtor’s involved in the transaction regardless of whether that is one real estate agent or two. This means the seller has to pay the same real estate commission whether the property is sold directly through the listing agent or through a buyer’s agent. In Michigan, the standard real estate commission is 6% of the sales price and this is typically divided 3% to the Listing Agent and 3% to the selling Agent. In the event that the Listing Agent also sells the property to a buyer then the seller pays the whole 6% to the Listing Agent – known as a “double dip.”
As a home buyer you need to have your own representation – an agent specifically working on your behalf. Here are the top 5 reasons to have your own agent:
1) A professional working specifically in your interest and on your behalf to help you find the right home at the right price.
2) The Buyer’s Agent‘s fiduciary responsibility (their loyalty) is to his/her client (you). The Listing Agent has already signed a contract to represent the seller and their first loyalty is to the seller. How can they represent the seller and you at the same time and still get you the best price on the home?
3) A stronger negotiating position and better contract protection for you. You have a separate agent negotiating the price on your behalf with the seller. You also get an independent purchase agreement contract drawn up by your agent to protect you. Plus, your agent holds the earnest money deposit as opposed to the listing agent controlling your money.
4) More candid comparable sales and market transparency. You have your own agent showing you recent sales of similar homes so you can determine the correct offer price.
5) Having your own agent comes at no additional cost to you! The seller has to pay the real estate commission on the sale of real estate so it is costing the buyer nothing to retain the services of a professional realtor.
The bottom line is that it is foolish to not utilize the services of a trained professional Realtor to help you unlock the door to your new home. As a buyer, you have nothing to lose and everything to gain. So, if you’re in the market to buy a house the first step should be to find the right Realtor to work with!
As a home buyer you need to have your own representation – an agent specifically working on your behalf. Here are the top 5 reasons to have your own agent:
1) A professional working specifically in your interest and on your behalf to help you find the right home at the right price.
2) The Buyer’s Agent‘s fiduciary responsibility (their loyalty) is to his/her client (you). The Listing Agent has already signed a contract to represent the seller and their first loyalty is to the seller. How can they represent the seller and you at the same time and still get you the best price on the home?
3) A stronger negotiating position and better contract protection for you. You have a separate agent negotiating the price on your behalf with the seller. You also get an independent purchase agreement contract drawn up by your agent to protect you. Plus, your agent holds the earnest money deposit as opposed to the listing agent controlling your money.
4) More candid comparable sales and market transparency. You have your own agent showing you recent sales of similar homes so you can determine the correct offer price.
5) Having your own agent comes at no additional cost to you! The seller has to pay the real estate commission on the sale of real estate so it is costing the buyer nothing to retain the services of a professional realtor.
The bottom line is that it is foolish to not utilize the services of a trained professional Realtor to help you unlock the door to your new home. As a buyer, you have nothing to lose and everything to gain. So, if you’re in the market to buy a house the first step should be to find the right Realtor to work with!
Thursday, December 23, 2010
11 Reasons to List During the Holidays
1. People who look for a home during the Holidays are more serious buyers!
2. Serious buyers have fewer homes to choose from during the Holidays and less competition means more money for you!
3. Since the supply of listings will dramatically increase in January, there will be less demand for your particular home! Less demand means less money for you!
4. Houses show better when decorated for the holidays!
5. Buyers are more emotional during the Holidays, so they are more likely to pay your price!
6. Buyers have more time to look for a home during the Holidays than they do during the work week!
7. Some people must buy before the end of the year for tax reasons!
8. January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until Spring to buy, you must be on the Market now to capture that market!
9. You can still be on the market, but you have the option to restrict showings during the six or seven days during the Holidays!
10. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early in the year!
11. By selling now, you may have an opportunity to be a non-contingent buyer during the Spring, when may more houses are on the market for less money! This will allow you to sell high and buy low!
1. People who look for a home during the Holidays are more serious buyers!
2. Serious buyers have fewer homes to choose from during the Holidays and less competition means more money for you!
3. Since the supply of listings will dramatically increase in January, there will be less demand for your particular home! Less demand means less money for you!
4. Houses show better when decorated for the holidays!
5. Buyers are more emotional during the Holidays, so they are more likely to pay your price!
6. Buyers have more time to look for a home during the Holidays than they do during the work week!
7. Some people must buy before the end of the year for tax reasons!
8. January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until Spring to buy, you must be on the Market now to capture that market!
9. You can still be on the market, but you have the option to restrict showings during the six or seven days during the Holidays!
10. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early in the year!
11. By selling now, you may have an opportunity to be a non-contingent buyer during the Spring, when may more houses are on the market for less money! This will allow you to sell high and buy low!
Tuesday, July 20, 2010
You can be a Real Estate Investor!
There are many great opportunities for the novice investor to take advantage of the current real estate market. Many homes are selling for less than $2,000 in the Metro Detroit area! If you are not afraid of a little hard work and elbow grease you too can really profit from buying one of these homes and doing a lot of the work yourself to make these Diamonds in the Rough into a beautiful shining gem.
Detroiters are proud people who love their city and neighborhoods. You can be a contributor in bringing the city closer to the glory it once was... and I'll let you in on a little secret if you didn't already know. City planners and Mayor Dave Bing have plans already in the works to turn Detroit into a major Metropolis and destination city that invites tourism and commercial industry, the likes of which has not been recognized since the time of the Model-T. In doing this the property value will sky-rocket!
Own your piece of the American Dream, you won't be sorry!
Detroiters are proud people who love their city and neighborhoods. You can be a contributor in bringing the city closer to the glory it once was... and I'll let you in on a little secret if you didn't already know. City planners and Mayor Dave Bing have plans already in the works to turn Detroit into a major Metropolis and destination city that invites tourism and commercial industry, the likes of which has not been recognized since the time of the Model-T. In doing this the property value will sky-rocket!
Own your piece of the American Dream, you won't be sorry!
Monday, June 28, 2010
The market is improving!
Prices are stabilizing, homes are selling at all price points. Although homes aren't worth what they were three years ago, if you set your price right it will be sold relatively quickly. On the other hand if it does not sell and is not getting any action as far as, showings, offer, etc. then the truth is that the price may be too high.
I work for SKBK Sotheby's International Realty in Birmingham, MI and just last month our office has had over 32 million dollars in closed transactions. True 12 million of those dollars were on one transaction that was listed and sold by two agents getting our office in on both sides of the deal. Be encouraged and know that, yes this is a buyers market and there is no better time to move on which ever side of the deal you are on.
I work for SKBK Sotheby's International Realty in Birmingham, MI and just last month our office has had over 32 million dollars in closed transactions. True 12 million of those dollars were on one transaction that was listed and sold by two agents getting our office in on both sides of the deal. Be encouraged and know that, yes this is a buyers market and there is no better time to move on which ever side of the deal you are on.
Friday, June 25, 2010
The market today
People keep saying that the market is bad. Well, yes and no. Bad if you have a balloon payment on your mortgage due and you're unemployed and your house is under water and you're facing foreclosure. Yes the market seems bad to those unfortunates. The market is excellent if you are a first time home buyer with clean credit and the desire to buy now. It's excellent if you are investing and you can buy a home for $3,000-$10,000 cash
Speaking of buying now, I want to advise those buyers in the market right now, to please stop trying to low ball these sellers. In reality the prices are pretty much fair and already reflect the decline in property value. The unfortunate thing on top of the insult of the already reduced property value are these unsympathetic appraisers who makes everybody's job harder when they come back with an appraisal that is below what the buyer and seller is willing to make a deal on. When that happens the banks won't give a dime over the appraisal which makes everybody have to go back to the drawing board.
Speaking of buying now, I want to advise those buyers in the market right now, to please stop trying to low ball these sellers. In reality the prices are pretty much fair and already reflect the decline in property value. The unfortunate thing on top of the insult of the already reduced property value are these unsympathetic appraisers who makes everybody's job harder when they come back with an appraisal that is below what the buyer and seller is willing to make a deal on. When that happens the banks won't give a dime over the appraisal which makes everybody have to go back to the drawing board.
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