What’s The Big Hold-Up In the Real Estate Market? – Read On


What’s The Big Hold-Up In the Real Estate Market? – Read On

You cannot pick up a paper or turn on the news without hearing something about the real estate market.  If the market so much as hiccups – “The Market Has Plummeted” the next day “The Market Has Soared.”  But the truth of the matter is that there has been fantastic head way in the real estate market for the last year or two, depending on where you live.

 up and down

The number of short sales and foreclosures has dropped dramatically; mortgage interest rates remain very low; mortgages are easier to obtain and more homes are coming on the market for sale.

But there are two areas that still remain a problem.  The first is the amount of debt that many buyers, especially first time home buyers have, and the second issue is that there are not enough homes on the market, especially in some geographical areas.

As more and more buyers come into the market, sellers are often times winding up with asking price or bidding wars.  This will encourage more potential sellers to place their home on the market.

But there are four reasons why many people who may want to sell, may not.

  1. Low Equity: Approximate 19% of the homes on the market have low equity established. A home owner who wants to list his house because that is what they owe, rather than the market price is wasting their time. These homes will undoubtedly stay off the market or will not sell for quite some time.
  2. Low Mortgage Rate: Homes owners that may want to sell, but have a very low interest rate may be reluctant to sell their home only to pay a higher interest on the next home they buy.
  3. Purchased or refinanced in the past seven years: A recent study showed that 14% of the homes were purchased or refinanced in the past seven years giving the home owners a reduced interest rate. Couple that with the idea that home owners are not moving every few years as in times past, and many of these homes will remain off the market.
  4. Company or investor owned: Approximate 3% of the homes are owned by a company or an investor. With home prices dropping so dramatically in the last few years and interest rates so low, many companies and investors swooped up properties. With home prices rising somewhat, but interest rates still low, and rental rates increasing, many of these homes will stay off the market for the foreseeable future.

Whether you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland

Advertisements

Real Estate Market Now Rated as Strong


Real Estate Market Now Rated as Strong

As with any market trend, there are bumps in the road – ups and downs all along the way. But recent analysis indicates that the real estate market has moved to the strong category.

Real Estate Market Trend is Strong
Real Estate Market Trend is Strong

Robert Shiller, Nobel Prize-winning economist recently stated during an interview that “There is a certain, substantial amount of momentum in the housing market – much more so than the stock market.”

Robert Shiller is a professor of economics at Yale University and stated that the trends that we have seen since the spring of 2012 clearly indicate the upward trend of the real estate market. Professor Shiller went on to say that economic indicators predict that home values will increase by 25% by the year 2018. That is good news for home owners, but will mean that home buyers will be paying substantially more for their homes in the next few years coupled with the fact that mortgage interest rates will undoubtedly climb during that same time period.

If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision. If you are thinking of buying a home, whether you are a first time home buyer, or this is your tenth home, the sooner you begin working with a REALTOR the better.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615-417-8128 or email me at RolandLow1@gmail.com.

Roland

 

Ways Buyers and Sellers Can Irritate Each Other


 

One of the most difficult aspects of being a REALTOR is bringing, or rather keeping, the buyers and sellers moving towards an agreement and closing. Often times emotions kick in and one side or the other can feel slighted and the battle starts.

Not a good way to negotiate!
Not a good way to negotiate!

I had a transaction a few months ago that the buyers came in with a low ball offer – a very low ball offer – and made the sellers mad. They were so mad that they did not respond to the initial offer until 15 minutes before the offer expired. They could have rejected the offer but decided to counter. Too make matters worse; the counter offer was $100 off their original list price and a whole lot more than what the buyer’s offer was.

The counter-counter offer from the buyers came back late at night, again just before the expiration of the offer and came up $100. The battle began.

It wasn’t just the price, it was the closing date; it was the number of visits; it was everything that either side could fight about. By the time we came to the closing, which miraculously we did, the buyer’s agent and I were in agreement that the closing office could not schedule them at the same time.

Believe it or not, the sellers are nice, normal people and have never displayed this type of behavior. The buyer’s agent said the same about the buyers. But this was a prime example of what can happen when emotions kick in to high gear at a time when emotions are running high already.

Here are a few tips that buyers and sellers can be mindful of during the selling – and buying – process.

  • Remember that this is an emotionally charged time for both buyers and sellers. This can help to keep things in perspective.
  • Buyers should be respectful of the seller’s home while they are visiting. I have had buyers come into a home that I listed and moved things around, left the door open to the unheated garage and turned off all the lights when the seller’s asked them to leave the lights on. There were additional showings after theirs and they did not want perspective buyers walking into a dark house.
  • Sellers should never, ever leave animals in the house that is being shown. You don’t know how the animals will react to strangers. Not only that I had a cat scoot out of a house that I was showing and it took me over a half hour to get the cat back in the house. I like cats, but I was ready to leave that one outside.
  • Buyers should try to give sellers as much notice as possible when they want to see a property. It is a lot of work keeping your house as presentable as possible – especially if you have children- and sellers would appreciate the adequate time. Nevertheless, sellers need to understand that buyers need to move on a property quickly to reduce the chance of another buying making the first move.
  • As buyers, if you make an appointment for 2:00 PM to 3:00 PM, don’t show up at 2:59 and feel that you have an hour to browse the house. I had sellers one time that almost rejected an offer from a buyer because they showed up late for the showing and stayed way beyond the allotted time. Again, the emotions kicked it making it hard to deal with.
  • Once an offer is made and the buyers have done the home inspection, be reasonable with what is placed on the to-do list. These inspectors are trained to find minute items that are many times for informational purposes and can be taken care of as part of routine maintenance. They do not need to be included on the to-do list.
  • On occasion, buyers will use the list of items identified by the home inspection as a means of renegotiating the price of the home. Too be sure, there are times that may be necessary, but it should not be a routine approach to buying a home.
  • Be reasonable with the closing date. This applies to both sellers and buyers. The whole process should be a win-win for both parties, but remember, both sides are coming at it from different perspectives.

Buying a home and selling a home is hard work and can be very demanding for both parties. Agents can go a long way in helping to minimize the challenges, but often times buyers and sellers can do a lot to help cool heads – and hearts – to prevail.

If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615-417-8128 or email me at RolandLow1@gmail.com.

Roland

And The Survey Says: Consumer Confidence in Housing is Hot!


A recent survey across the country indicates that the confidence in the housing market is showing strong gains, and not just in one or two categories, but across the board.

Now is the time to buy or sell!
Now is the time to buy or sell!

A year ago only 26 percent said it was a good time to sell a house – now 38 percent believe it’s a good time to sell. To complement the selling aspect; a year ago 52 percent said it was a good time to buy a house – today 69% say it’s a good time to buy.

A majority of those surveyed also stated that it is easier to obtain a mortgage today than it was a year ago. The fact of the matter is that the housing market and mortgage markets are coming together. Requirements for loans have eased considerably and yet the mortgage interest rates are holding steady at around 4.5%. There are programs in Tennessee with little or nothing down.

If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please don’t hesitate to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com

Roland

 

Source: Daily Real Estate News / Tuesday, April 8, 2014

Home Prices Pick Up at Fastest Pace in 7 Years


Buying a home is easier than you may think!
Buying a home is easier than you may think!

Home prices nationwide, which include distressed sales, soared 10.2 percent year-over-year, according to CoreLogic’s February report. It’s the largest year-over-year increase in home prices since March 2006. It also marks the twelfth consecutive monthly increase in national home prices, according to CoreLogic’s report.

When excluding distressed sales, home prices rose 10.1 percent year-over-year in February, according to CoreLogic.

“Nationally, home prices improved at the best rate since mid-2006, marking a full year of annual increases and underscoring the ongoing strengthening of market fundamentals,” says Anand Nallathambi, president and CEO of CoreLogic.

CoreLogic predicts that home prices — excluding distressed sales — will likely rise 11.4 percent year-over-year from March 2012.

“The rebound in prices is heavily driven by western states,” says Mark Fleming, CoreLogic’s chief economist. “Eight of the top ten highest appreciating large markets are in California, with Phoenix and Las Vegas rounding out the list.”

The five states with the highest price appreciation as of February 2013, according to CoreLogic, were:

  • Nevada (+19.3%)
  • Arizona (+18.6%)
  • California (+15.3%)
  • Hawaii (+14.6%)
  • Idaho (+13.5%)

If you are thinking of buying or selling talk to a REALTOR who can give you the information you need to make an informed decision. You can also visit http://www.rolandlow.com.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland

Source: Daily Real Estate News | Thursday, April 04, 2013

 

 

Mortgage Interest Rates


 

The real estate market continues to rebound throughout most of the country.  Some areas, especially those that were hit hard in the recession are showing large rebounds.

Below is a chart of the mortgage interest rates as of April 4, 2014 in the Nashville, Tennessee market.

Mortgage Interest Rates April 4 2014

If you are thinking of buying or selling, talk to a REALTOR who can give you the answers you need to make an informed decision.  One of the most crucial factors you can do when buying is to select a REALTOR and mortgage officer who can work together to make it happen.

For mortgage information call John Phillips, FirstBank, at 615 309-1515.

For all real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland

 

Thinking Of Selling Your Home: Read This!


 

The real estate market has been on a steady upward trend for the last year or so and is expected to continue in the foreseeable future. Remember that real estate is a very local matter and the media loves to focus on the downward trends, but the general pattern is up.

With that in mind, if you are even thinking of selling your home in the near future, I urge you to take a few minutes to read these few comments. Here are five steps that every seller needs to take seriously when they want to sell their home.

  1. Find a REALTOR. You can save yourself a lot of headaches if you spend a few minutes to find a REALTOR right off the bat that you are comfortable with. It goes with the saying from Abraham Lincoln, “If I am given six hours to cut down a tree, I am going to spend the first four sharpening my axe.” Honest Abe may not have been a real estate agent, but certainly good advice.

Selecting an agent is as varied as there are people. Many people will tell you to select someone who has had years and years of experience. Others suggest that you pick a younger person who is hungry for the sale. I have seen good new agents and bad experienced agents.

My advice, other than to call me, is to find someone who has the business approach to real estate. You may like to hear an agent say how beautiful you home is and how quickly it will sell, but it is about the numbers. I recently received a mailing from a real estate agent who had numerous homes in his ad as though they were his listings. When I checked the MLS I learned that they were not his listings. Don’t get me wrong, there is nothing wrong with what he did, but don’t fall just for the advertising.

The single most important thing you can do when selling your house is too find an agent that is professional, communicates well and has a plan of how they are going to market your property. If you do not feel comfortable calling your agent with what you may think is a minor question – find another agent.

2. Select the proper listing (selling) price for your home. The best thing to remember about selecting the listing price is that the seller determines the listing price, but the buyer determines the buying price. A good agent will provide you with a CMA (comparative market analysis) which will detail a range of the selling price of your home. As part of the CMA they should also provide you with “comps” or homes that were similar to your home that helped determine the price of your home. No two homes are exactly alike, but a good agent will be able to get to a very close selling price. Remember, the closer the comps are to your home in style etc, and location the more effect it should have determining the listing price. Also, a home that sold two years ago, will have little bearing on the market today.

The best advice I can give on the price of your home is to never, never, ever overprice it. A good agent will walk away from a potential client who insists on over pricing their home. I am not talking about wiggle room in the price, I am talking about overpricing it.

A home that is overpriced will most likely stay on the market longer than the average selling time for that area. Overpricing a home can be the kiss of death in real estate.

3. Curb appeal cannot be over stated. I probably don’t even need to say that you only get one chance to make a first good impression. Often times the curb appeal of your home looks ok because you are used to seeing it that way. Over grown shrubs and trees tell the prospective buyer right away that the inside of the house is not well maintained either. If you are not the type to maintain your property very neat, I strongly suggest that you contract with a landscaping company to get it in shape and maintain it. New mulch and some flowers can do wonders to a yard.

4. Clean and de-clutter. Selling your house is hard work, especially if you have children and need to keep it neat for the inevitable last minute showing. When I show prospective buyers a house I will always ask them what they liked and didn’t like about a house. All too often they will refer to the house by something that will make them remember it. If I ask them what they thought about the last house we looked at, they may respond “oh, the house that had the dirty dishes in the sink.” Those are the kind of “memories” you need to make sure don’t happen.

5. Pre-inspect. What I mean by pre-inspect is to take an honest look at your home and property and try to see it through the eyes of a buyer. Your agent should be able to help you with this, but don’t get mad at the agent when they point out things. Owning a home is hard work and a never ending battle. Many times those little things will get away from you and after a while they appear normal. On occasion I have suggested that a seller have a home inspection done ahead of time and aggressively fix all the things that the home inspector identifies. This can go a long way in preventing surprises down the road. But two things to remember, home inspector will not identify the areas that I would call “fluff.” Suggesting a lighter color to open up a room may be a good idea, but not what a home inspector will do. The second thing that is more important is that if the home inspector identifies a specific issue, the seller is now obligated to disclose that on the property disclosure. Something to think about.

 

If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please don’t hesitate to text or call me at 615 417-8182 or email me at RolandLow1@gmail.

Roland