Time Can Cost You

Click on the title to link. This is an interesting article about the potential money lost if you wait for the market to "bottom" before buying. The money lost here would be in the form of a higher down payment because of an increased home price. The bottom line (no pun intended) is don't get greedy. The market is so down that now is the time to buy a house. And with rates as low as they are, it is the perfect storm (as we have said before).

If you need a Realtor then you need to call us first. Do not use somebody unless they are referred by someone you trust.

How Realtors Sell Their Own Homes

Click on the title to link. This is an interesting article about whether Realtors sell their own homes for more than their clients, and, if so, what they do to do so.

The article says:

Most people have heard of the well-publicized statistical evidence that that when real estate agents sell their own homes, they tend to keep them on the market longer (by about 10 days) and get a higher sale price (by about 3%) than when they sell homes for their clients.

The article does point out the fact that the folks who wrote a book about this conclude that it must be greed on the Realtors part (in essence) because the additional commission is so little that they figure why bother getting a little higher price for a client. That's quite the leap, don't you think? That reminds me of this time I saw an elephant at the zoo, and, of all things, a pink crayon on the ground by their cage. I naturally concluded that there must be pink elephants then. Oh, wait...

That's the same stupid logic that the author of the book has taken. Let's take the facts instead of jumping to ridiculous conclusions.

1. Whose the seller the Realtor is dealing with when they sell their own house? That's right, themselves. I think they now best their own tolerance for risk, and what they will or will not take. When dealing with clients, all you can do is present the facts and let the sellers make an educated decision. One of those facts will be that they could turn down offer X in the hopes for another 3% (let's just use the same percentage the book says Realtors make more of when selling their home). I don't know many people who would jump at that offer unless they were hell bent on a certain price.

2. With knowledge comes power (or so they say). The job our any Realtor (or lender, for that matter) is to educate people so they can make the best possible decision for them. However, that is not always easy. People hear what they want to hear. So I could tell you that you should probably reject this offer and wait for a better one. But that does not mean you are going to listen to me.

Anyways, there are more that we could go on with. The bottom line is this...I have no doubt that Realtors make more on their homes than their clients when they sell. But that because they know the seller better than anybody else (themselves), and they know exactly what to do because they do it for a living (hence the fact that their homes are also on the market 10 days longer; they trust what they know). I'm not saying you need a Realtor to sell your home. But if you use one, then make sure you work with one you trust 100%. Get referrals, do not work with those you run into at an open house.

We work with phenomenal Realtors. If you need their services than the place to start is here with us so we can get you with one that we know will treat you like you should be treated. So give us a call.

10 Ways to Boost Your Homes Sales Price by Spring

Click on the title to link. For any of you thinking about selling this spring, this has some great ideas to help you boost the sales price of your home. We are always here to answer any questions for you regarding the process. If you need a referral to a good Realtor then we have those also.

Hidden Victims of the Mortgage Mess

Click on the title to link. I am not sure how "hidden" these folks are, but the article is referencing those who are underwater on their house and are not in foreclosure. This certainly is a huge problem since it may take years for those homes to get back to what they were (depending on many things).

Will Listing Your Home Disqualify You From A Refi

Click on the title link. The short answer to the title of this post is, "Maybe." Many lenders will now accept a refinance where the home has been on the market. It must be off the market for at least one day. But there are two very important things about this:

1. The home absolutely must be off the market. People often execute a listing cancellation with their Realtor, but the Realtor drags their feet with actually taking it out of MLS. The lender will absolutely check this, and if it is listed in MLS then your loan is toast.

2. You have to convince the lender that you really are staying in the home with a good letter of explanation. It is up to the lender whether they believe you, or like your reasoning. They can deny the loan because your letter is not convincing enough. You are at their mercy on this.

Bottom line is it is doable, but not guaranteed by any stretch of the imagination. You have to jump through the "lender hoops", but it is often worth it.

Dream of Home Ownership Fading?

Click on the title to link. Here is a sad article about how many folks are thinking they will never be able to own a house. We think most of this is because people do not understand their options. When you here nothing but bad news about real estate in the news then it is going to ware on you. However, many of those who think it is unreachable just do not understand the process and what they can do.

If you are in that boat, or know somebody who is, then let us know because we can sit down and at least show you options. You have to window shop before you can buy. The first step to that is to see what stores are even open for your business. Make sense? We are here for you and anybody you may know.

New Home Sales Slide Further

Click on the title to link. The housing market news just keeps gettin' worse. Now new home sales hit an all time low. More signs of our fledgling economy.

Home Sales Sink

Click on the title to link. Just a little something to keep you in the loop. This is no surprise to any of you reading this blog. It is going to get worse before it gets better, especially with the spending policies of the current administration. You cannot spend like this without serious consequence (many of which are yet to come).

The Depressed Real Estate Market

Click on the title to link. This is a good article about how the real estate market is not budging despite the fact that rates are at 50 years low. This is not surprising since we saw that the last round of first time buyer incentives really did not do a whole lot to stimulate the market. The fact that rates this low is not moving the market is not a good sign. It shows that people are sitting back and waiting to see what happens, mainly because of our current Administrations fiscal policies (in our opinion). We have been saying that reports of recovery have been grossly overstated; this is a great example of why.

Want to Sell? Slash The Price

Click on the title to link. This is one of those subjects that nobody wants to hear, but you need to if you are in this boat. Selling your house can be a very emotional experience. Forgive us for this statement...get over it!

You have heard "it is what it is"? Well, it is what it is, and what it is right now is a really horrible market to sell. You will not get out of your house what you think it is worth right now. Buyers are all about feeling like they got a screaming deal. They are not looking for fair, they smell blood and they are going in for the kill. Sound too harsh? Trust us, we see it all the time.

You have two choices when you list your house:
1. List it for what feels good and you think it is worth, and then let it sit there for a log time.
2. List it for what the market will bare, and actually sell it.

Reality is a bitter pill to swallow. Just take your medicine and remember that you are probably going to be on the flip side next when you go buy a house. And this is what we remind people of; it works both ways. So, hopefully, your net out is the same as it would have been. You get less for your house, but you pay less for the next. It does not always work like that (of course), but that is the hope.

Is There A Housing Shortgage Looming?

Click on the title to link. This is an interesting article about how there may actually be a housing shortage in the "nearer" future for some markets. What's interesting is they put New Mexico in that category because they say we are one of the more stable and "recovered" markets. Although we do not fully agree or see that (see yesterday's posts), New Mexico is a very desirable state for folks to live in and we could foresee a future shortgage due to the fact that new construction is so very low right now. But we are not close to that being the case, in our opinion. Still an interesting article, however, that is not far fetched.

The 6 Phases of Foreclosure

Click on the title to link. Hopefully none of you actually need this, but this is a good summary of the foreclosure process.

The Psycho(logy) (of) Pricing Your Home

Click on the title to link. Probably the single biggest thing we hear and see as to why homes are not selling (besides the fact that buyers are buying) is that people are psycho about what they want to sell their home for. We know, we know, you have put blah, blah, blah into the house, and it has to be worth X. Well, that just aint how it works.

This is a good article regarding the psychology behind pricing your home. Read through it and let us know what you think. What questions does it raise in your mind? Remember this, reality is a bitter pill to swallow. You cannot price your home on what you wish it was worth, what you need for it, or what you would like to get out of it (unless of course you want it to sit there for sale). If you want to sell your home then it will get what the market will bare, and what comps dictate it is worth. Right now, it's just may make you psycho.

7 Fixes to Boost Your Home's Value

Click on the title to link. These are some easy, relatively speaking, things you could do that could help improve the value of your home. If nothing else, they certainly will not hurt the value of your home. If you are selling your home right now they can, literally, be what makes or breaks it for a buyer.

Social Media To Sell Your Home

Click on the title to link. This is a good article about using social media sites like Facebook to sell your house. This is the wave of the future and we very much encourage to embrace this direction. We use these type of things in our business and would be happy to help you out.

Fannie Mae's (the US Government's) New Rule

We just learned that, effective June 1 (thanks for all the warning, huh), any loan done as a Fannie Mae loan (which is most of them) will require a second credit report be pulled just before the loan funds. Which means that they are going to pull another report after your loan actually closes, but before they release the money to the title company.

They are doing this to ensure that you have not acquired any more debt since the process started. Seems fair, right? Well, as with almost anything the government touches, it is poorly thought through.

When your credit is pulled again you are going to get dinged, again, for the inquiry. What if your score was borderline for you getting a program and/or rate betterment, and your score now drops below the acceptable level for that? Does your rate now change? What if you don't qualify for the program now? Do we have to start all over? Or, worse yet, do you lose the loan? We are not sure how they are going to handle these situations, but they are going to have to be addressed. Stand by...

Should You Take A Lowball Offer?

Click on the title to link. The simple answer to this articles question is, "It depends." There are many factors that will ultimately help you decide if you should take a lowball offer. You have to examine every aspect. If you are in this situation, we would be happy to chat with you about some of these factors and help you reach a logical conclusion.

The Home Seller's Cheat Sheet

Click on the title to link. This is a great article giving you, as a seller, a checklist of important things you may or may not know about selling your house.

10 Things That Will Kill Your Home Loan

Click on the title to link.

Is Housing Doomed?

Click on the title to link to this article. We have said many times before...unless the housing market is stable then we cannot claim we are out of this recession. This article is a great summary as to why we are not even close to a housing recovery and, thus, why we will not be out of this recession anytime soon (despite what the "experts" say).