Posted by Kim Adamof on Fri, Oct 23, 2009 @ 11:37 AM
November 30, 2009 is coming up fast. That's the deadline for closing a home using the first-time home buyer tax credit. There isn't much time to find a house and close.
With housing prices the lowest they have been in a decade, now is a smart time to buy a home. Here are six reasons why home buyers are running out of time:
The economy is improving
The worst recession since the Great Depression may be winding down, said The Conference Board on August 20, 2009. The analysts found that leading economic indicators rose 0.6% in July, following a 0.8% rise in June. That's two consecutive months of improvement halting 8 months of declines.
While the indicators can certainly slide backward new data, serious first-time home buyers should realize the days of wholesale bargains may be numbered.
Banking issues
Since May, 2009, Federal Housing Finance Agency appraisal regulations have slowed home sales transactions to the point that major lenders are telling loan originators that closings could be delayed by as much as an extra 15 days. The National Association of REALTORS® has found that 76% of its members reported delays in closing.
As the first-time home buyer tax credit comes to a close, banks will be inundated with loan applications for an already narrow production pipeline. Home buyers should allow at least 45 days to close, and a few days extra in order to have time to correct errors or delays during the closing process.
That means with the pipeline full of mortgages being processed, now is the time to get in line and make the deadline of November 30, 2009.
Federal bailout fatigue
If the government concludes that additional stimulus is needed for the economy, it's likely that the first-time home buyer tax credit will be extended, but you're taking a chance to count on it.
From Cash for Clunkers to Making Home Affordable programs, and many more, the federal budget is at its limits. In total, the economic stimulus bill has added $787 billion to a federal budget already careening out of control.
The largest federal deficit ever reached $1.3 trillion in August 2009, says the Congressional Budget Office's monthly budget review. The deficit grew largely because of the Troubled Asset Relief Program (TARP) $169 billion, in which $83 billion went to support Fannie Mae and Freddie Mac. Expenditures from the American Recovery and Reinvestment Act of 2009 (ARRA) have totaled more than $125 billion.
Inventory is being absorbed
Nationally existing, or pre-owned home inventories are slowly being absorbed, and are at a 9.4-month supply in July, while standing builder inventories were at 8.8-months-on-hand in June 2009.
At their highest during the recession, new and existing home inventories hovered at 11 months on hand. A balanced market is approximately six months of inventory on hand. New home housing sales have improved three months in a row in June.
If the current rate of improvement in existing homes remains at a steady pace, (from 9.8 months on hand in June to 9.4 months on hand in July,) the existing housing market could be balanced (on a national basis) in approximately 8 months.
Seller's market for affordable homes
Existing home sales in July 2009 increased four months in a row, says the National Association of REALTORS®. The national median existing home price was $178,400, 15.1% lower than a year ago.
Pressuring prices and inventories are foreclosures, which contributed to a 7.3% rise in inventory, which the sales pace absorbed, keeping inventory on hand at 9.4 months on hand for two consecutive months. Lawrence Yun, chief economist for the NAR says that improved affordability has driven sales with first-time home buyers taking advantage of the tax credit. "The demand for foreclosed and lower priced homes has spiked, and a lack of inventory is becoming a common complaint," he said in a statement to the media.
One-third of homes sold in July were to first-time home buyers.
Interest rates are going down
The percentage of foreclosures in the second quarter 2009 were the highest ever recorded by the Mortgage Bankers Association, and the trade organization says that foreclosures will grow and peak at the end of 2010.
One-third of homes sold in July were short sales or in some stage of foreclosure.
What's disturbing is that one out of three homes in some stage of foreclosures are prime fixed rate mortgages, suggesting that joblessness is impacting borrowers ability to pay their mortgages.
First-time unemployment filings rose mid-August, which indicates that the recession isn't over yet, and that housing inventories will continue to rise.
If that's the case, the Fed will strive to keep mortgage interest rates as low as possible to continue the momentum in housing sales.
Your competition is other home buyers
The accumulative effect of all these market conditions - rising foreclosures, low interest rates, jobless claims, government incentives and more are that home buying is going to be at its most attractive level through the end of summer and into the fall and early winter.
In July, housing sales transactions jumped 7.2 % - the largest monthly sales gain since 1999. Price-to-income ratios have fallen below historical trends, says Yun.
That means that home buyers at all price levels may jump into the market, crowding lender pipelines even more.
If you want a smooth transaction, and to take advantage of the $8000 tax credit, the time to act is now. Contact one of our professional buyers agent for more details.
Posted by Kim Adamof on Wed, May 27, 2009 @ 08:58 AM
Cleveland Area (40/42) of Johnston County features this beautiful building called The Landmark.
This unincorporated area of Johnston County is just on the line of Johnston and Wake counties.
Great home prices, large lots, pool communities, brick homes, plus more.
Homes for sale in the Cleveland Area.
Posted by Kim Adamof on Tue, May 19, 2009 @ 02:01 PM
The Triangle Business Journal reported today, more Americans are finally coming to terms with how much their homes are really worth, but many home owners in the South are still unwilling to come to grips with reality, according to Zillow's first quarter Homeowner Confidence Survey.
The new survey reports that 60 percent of home owners nationwide believe their homes lost value in the last year, . That's up from 57 percent in February.
Now, the reality check: Eighty percent of homes actually were worth less than they were 12 months ago, up from 76 percent in February.
"While homeowners are now more realistic when looking backward, they are still pretty starry-eyed when looking forward with three out of four homeowners believing that their own homes' prices will increase or be flat over the next six months," said Stan Humphries, Zillow's VP of data and analytics, in a news release. "Unfortunately, there are few markets we expect to perform this well."
However, a higher percentage of those living in the South are refusing to concede that their homes are worth less.
Zillow found 49 percent of Southern home owners believe their homes have lost value over the past year. In reality, 70 percent of homes in the region are worth less.
Half of home owners in the South also believe that the next six months will bring stabilization of their home values, while 24 percent believe their home's value will increase, and 26 percent believe their home's value will decrease.
Nationwide, 74 percent believe their home will not decline in value in the coming six months, effectively calling a bottom to their own home's housing slide.
When asked about future plans to sell, 31 percent of homeowners said they would be at least "somewhat likely" to put their homes on the market in the next 12 months if they saw signs of a real estate market turnaround.
"With almost a third of homeowners poised to jump into the market at the first sign of stabilization, this could create a steady stream of new inventory adding to already record-high inventory levels, thus keeping downward pressure on home prices," Humphries noted.
The survey results come on the heels of a National Association of Realtors report that showed a year-over-year decline of nearly 14 percent in the median sale prices of single-family homes nationwide. The Raleigh-Cary and Durham areas posted slight drops and ranked among the 45 healthiest metros in the country.
Let us help you figure out your home's value.
Posted by Kim Adamof on Tue, Feb 03, 2009 @ 10:14 AM
Short sales are a buzz word in real estate right now. Lots of agents are taking classes to learn how to handle short sales.
If you want or need to sell your home, do you know how to figure out if you qualify for a short sale? Not every homeowner who potentially comes to the closing table with money is a candidate for a short sale.
The first thing to figure out is how much can you REALISTICALLY sell your home for. Then determine how much your mortgage payoff is for. With all the closing costs including your mortgage payoff, if you need to come to the table with money, then on to the next question.
Are you at least one month behind on your mortgage? If the answer is no, then you don't qualify.
The best advice is to contact your lender to see where you stand and what they'd be willing to accept. A qualified short sale agent with a track record of getting to the closing table can help you navigate.
I do offer a course for home sellers "How to Short Sale Your Home" on my website. Check it out and let me know what you think.
Posted by Kim Adamof on Mon, Jan 26, 2009 @ 01:43 PM
Consider these statistics. In the first year after a divorce, the women's standard of living often drops by 33%, while the husband's increases.
Another fact: the higher the income of the family, the wider the gap between partners.
The reason? Most couples still invest in the husband's career while the wife's job takes second place. Even though society is changing, this pattern still holds for most couples. And if the marriage lasted a long time, the wife has lost at least a decade of career growth.
The courts often ignore this crucial issue when dividing marital property. Typically, divorce settlements divide only the tangible marital assets - the house, the car, the furniture. For most divorcing couples, this marital estate is not very large, averaging less than $20,000.
On the other hand, many courts traditionally overlook one major asset of a marriage - the husband's career and career assets such as salary, retirement plan, stock options, seniority, and potential earning power.
Unfortunately, many courts don't recognize career assets as property. So, even when a wife has worked to put a husband through law school or sacrificed her interests - invested in her spouse's assets - she gets nothing in return.
At the same time, the courts expect equal independence from both partners. Sometimes the court will award rehabilitative maintenance to ease a spouse into the work force. But the courts base these settlements on the assumption -often false- that both spouses can be equally self-sufficient. Instead, women who have spent 20 or 30 years in traditional marriages find themselves out in the cold with no marketable skills and no real job prospects.
You can take action. With detailed financial planning, you can solve these and other problems. When you're trying to work out a fair settlement, remember that the court divides property only once, but career assets continue to produce income for years.
While you take that into account, your strategy should also include such factors as earnings, inflation, division of property, the amount and length of maintenance, and reduced standards of living. If it's clear that one person will have surplus dollars from earnings, make sure this is considered when the court is making property settlements and maintenance arrangements.
This is an exerpt from Carol Ann Wilson's The Survival Manual for Women in Divorce. I am a Certified Real Estate Divorce Specialist working with couples getting divorced and needing to deal with their real estate. My job is to help couples manage this process as a third party.
Posted by Kim Adamof on Mon, Jan 19, 2009 @ 03:33 PM
Is buying new construction different from buying a re-sale? Yes.
First of all, you're buying from the person who built it, not the person who called it home. Often, the property is just one of many they are trying to sell.
1. Hire an agent
One that specializes in buyer agency and isn't affiliated with the builder or listing agency associated with marketing the subdivision. Have your agent perform a Comparable Market Analysis. Don't trust the closing data on the MLS. Oftentimes they will hide large seller subsidies. Go to the tax records to see what units are closing for. The problem with tax records is you can't see the upgrades or closing costs paid by the seller. Buyers agents can be your advocate during the process and their services don't cost you anything, since the builder pays commission.
2. Be creative during negotiations
Builders don't like to drop their prices. Instead, ask them to cover closing costs or upgrade the kitchen for free. Make your offer SUPER aggressive on closing costs and seller subsidy. The subsidy won't show up on the tax records, so helps their re-sales.
3. Get it in writing
Don't sign until everything has been negotiated, agreed upon and written into the contract. A lot of builders require you to use their "standard" offer to purchase and not the North Carolina Offer to Purchase and Contract. If you decide to go with the builders rep to put in an offer, READ the contract carefully.
4. Be wary of upgrades
They're where builders make the most profit. Don't take upgrades you don't want or can't afford.
5. Research the builder
Visit other developments and talk to home-owners. Google the developer for reviews, testimonials and news. Ask what percentage of homes in the subdivision are currently closed/sold. And make sure that is CLOSED units. None of this "held back" trick.
6. Ask for a guarantee
You're often buying a home that is not completed. What guarantees do you have the home will be ready on time? Your Buyers Agent can be your go-between during the process. Its their job to follow up with builder, builders rep, etc. to make sure the closing takes place on time and that all parties are kept informed.
7. Get the home inspected
New homes have problems too. Hire an inspector to make sure everything is safe and up to code. I usually give the home inspection report to the builder and say "fix it". You can also hire the inspector to come back and re-inspect, of course for a fee.
8. Get your own appraiser. If you are getting a mortgage on the home, your lender will order an appraisal by an independent appraiser. If you are paying cash, make sure you choose the appraiser and not the builder. Also, if you are using the builder's "approved" lender in order to get some closing costs paid, you can ask for your own appraiser instead of the lender's. This way you'll know you are paying an acceptable price, not an inflated one.
9. Bumper-to-bumper coverage
New homes should come with a warranty from the builder. Know what is and isn't covered and for how long. Builders usually offer a 2-10 Structural Warranty. This covers the structural integrity of the home for 10 years. It's transferable to the next homeowner should you sell within 10 years. Ask for a one year builder warranty. This allows you to get everything covered for 1 year after moving in.
10. Look to the future
Check with the city to see what is planned for the surrounding area. If you have a view, will it still be there in 5 years? Your buyers agent can assist you with this so that you are informed when putting in an offer.
11. Find your own lender
Don't use the builder's lender. Shop around for the loan that is best for you, not them. A lot of times a builder will offer $3000 in closing costs if you use their lender and closing attorney. In my experience, I get the closing costs paid and still use the buyers own lender and closing attorney. Need another tip on how to do this? Let me know.
12. Watch out for Condo Fee hikes after you close. Don't think this doesn't happen. Sure the condo association is a bunch of owners, and they don't want the fees to go up, but the builders tend to make them artificially low to attract buyers. Expect the condo fees to take a 10-15% jump after you move in.
13. Place Earnest Money in a Trust Account. If possible, place builder deposits or earnest money in trust accounts, not the builder's general operating account.
Posted by Kim Adamof on Sun, Jan 18, 2009 @ 04:51 PM
There are currently 377 homes for sale listed at $1,000,000 in the Raleigh Durham Real Estate Market. They vary in size, age, and amenities.
Take a peak if you're curious.
But if you are serious about finding a home, please let me know your criteria and I'd be happy to adjust the search results just for you. My services as a Luxury Home Buyers Agent won't cost you anything because I get paid through the closing.
Posted by Kim Adamof on Wed, Jan 14, 2009 @ 08:00 AM
Selecting a Real Estate Consultant who will represent you in the marketing and sale of your home may be one of the most important decisions of your life. This selection process is just as important as selecting any other professional such as your family doctor, dentist or attorney. That individual selected should be working for you, keeping at all times your best interest in mind. That person will be directly involved in advising and counseling you with regard to a large portion of your personal assets.
First of all, that person must have your confidence and trust but also you should have specific criteria for choosing that special person. I suggest that you evaluate that person in all the following categories.
- Appearance and demeanor
- Energy level and attitude
- Integrity, including honesty and sincerity
- Home enhancement experience
- Pricing strategy
- Strength of marketing plan
- Knowledge of the local market
- Compatibility; you should enjoy working with your consultant
- Willingness to discuss brokerage investment and to cover all marketing expenses
- Commitment; willingness to work long, hard and smart for YOU
Click here see my professional credentials which I believe you will find valuable in your decision making process. I know I can provide you professional assistance with any of your real estate needs and help you make GOOD DECISIONS.
PS. Perhaps the most common mistake home sellers make in the selection of a Real Estate Consultant is to allow agents to "bid" on the listing. In other words, sellers have a tendency to hire the agent who presents them with highest estimated value for their home. I strongly recommend that home sellers choose their agent FIRST, based on their integrity, skill, and the strength of their marketing plan - NOT because he or she told you a PRICE you wanted to hear.