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Random thoughts as the 2009 Real Estate Market comes to an end…

November 22nd, 2009 10:53 AM

Random thoughts as the 2009 Real Estate Market comes to an end…

As 2009 is coming to an end we have experienced many changes in the market. The beginning of the year my clients had plenty of bank owned foreclosures to choose from. We would put an offer in less than asking price and in a few days we were in escrow. These homes were perfect for the first time home buyer who wanted to close escrow in 30 days and take advantage of the $8000 tax credit.

By late spring or early summer the foreclosure market had dried up. Lenders were foreclosing on homeowners at a much slower pace because of new government regulations and because by flooding the market with to many foreclosures the housing prices were dropping. Foreclosures now seem to be coming on the market drop by drop instead of in a flood. Home prices appear to be flattening out or at least dropping at a much slower pace.

First time homebuyers flooded the market this year because of the low price of homes combined with the $8000 tax credit. The credit was set to expire at the end of November but congress extended it to April 2010, and also opened up a $6500 tax credit for existing homeowners.

Investors also have come back into the market. The investors are buying houses at auction, buying in large pools of homes from HUD and other entities, as well as competing directly with first time home buyers and offering cash.

As the year ends the market appears to be one primarily made up of first time home buyers and investors competing to purchase short sales (homes the lender allows the owner to sell for less that they owe on it). There is a significant supply of short sale homes on the market and if you have the time and patience you can get a good price on one of these homes. It usually takes 2-3 months for a lender to approve an offer on a short sale. Almost every listing I have received the past 6 months was from homeowners who were upside down and wanted me to short sale their home. I am happy to say that we have had a great deal of success selling these homes.

I guess the bottom line as the year comes to an end is that there are a lot of opportunities in the market for first time home buyers, investors, or anyone who is willing to take the time to see what options are available to them.

Jim

Posted by Jim Amen on November 22nd, 2009 10:53 AMPost a Comment (1)

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Short Sale answers from a Real Estate Broker

July 16th, 2009 2:29 PM

With the economic and real estate environment we currently are living in I have received a lot of questions lately from friends and clients about what to do with their houses when they are significantly upside down (30% or more). I can not tell anyone exactly what to do but depending on the situation I have been able to at least walk them through their options. Most people would prefer to avoid a foreclosure if at possible but they either can not afford their current home payment or are concerned it will take them forever to not be upside down again.

This conversation usually leads to a discussion about doing a short sale. A short sale is a process where a realtor/real estate broker like myself lists your house for sale and negotiates with your lender to allow you to sell your house for fair market value and they forgive the difference of the loan. This solution is not perfect but it allows you to get out of the home without foreclosing, and it allows you to do it in a manner where you are in control of the process.

Here are some basic answers to a few short sale questions I have ben asked:

- Will my credit score be hurt? Yes your score will be lowered but you can minimize the amount by continuing to make payments throughout the process.

- Can I buy a house again? Yes usually after 18-24 months you can buy another house.

- Are there tax consequences? Talk to an accountant about this but the laws have temporarily changed so that most owner occupied homes can be short saled without tax consequences.

- How long is the process? The banks are improving with this process but the normal timeframe is 3-4 months after we submit an offer to the bank.

- Who talks to my bank? Every realtor handles this differently. I use a professional negotiating company to work with your bank and I give them a percentage of my commission so it does not cost you any money.

- What does it cost me to do a short sale? It does not cost you any money.

- Should I do a short sale? This is a personal choice and only you can make it but you may want to at least consider this and gather additional information so you can make the best choice for you and your family.

If you have more questions please drop me an email (jim@amenrealestate.com). I hope this blog has been helpful as I know this is a difficult time for everyone right now.

Jim

Posted by Jim Amen on July 16th, 2009 2:29 PMPost a Comment (0)

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