Three Housing Trends for 2013

Based on a variety of surveys, here are three trends in the housing market to look for this coming year:


Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

images

Based on a variety of surveys, here are three trends in the housing market to look for this coming year:

1.  Rising home prices.  Five years after the housing market bottomed out, home prices started rising toward the end of 2012 in many markets, and seem on track to continue in that direction, with the National Association of Realtors (NAR) forecasting that home prices will rise 5-6% in the coming year.

2.  More short sales.  As of November 1st, the Federal Housing Finance Agency (FHFA) issued new rules on short sales, making short sales more accessible to both buyers and sellers.  That’s not to say that short sales will become significantly easier, but they should be more plentiful in 2013.

3.  Fewer foreclosures.  As short sales rise this year, you can expect to see foreclosures, especially at bargain prices to fall.  The FHFA and banks are selling off distressed home loans through other methods so you can expect to find less foreclosures flooding the market.

Thinking of buying or selling a home in Sussex County?  Give us a call at Cooper Realty Associates and put us to work for you – 302-856-6434.

Add to Del.cio.us RSS Feed Add to Technorati Favorites Stumble It! Digg It!
    www.sajithmr.com

HURRY, SELLERS! DON’T LET THE WINDOW CLOSE ON YOU!!

To make it even more complicated, there is a flood of distressed properties (short sales/foreclosures) entering the market, and they are having a negative effect on property values, as they sell for a greatly discounted price.


Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

 

When I go out on listing appointments, part of the process is determining a price at which the property will sell within a satisfactory time period.  This part of the process is usually a very difficult one.  Obviously, the sellers want to get the most money as possible.   At the same time, the property needs to be priced in line with the competition.  To make it even more complicated, there is a flood of distressed properties (short sales/foreclosures) entering the market, and they are having a negative effect on property values, as they sell for a greatly discounted price.  Therefore, anyone needing to sell their home needs to do it NOW and price it in such a way that compels a buyer to buy it NOW!!!

I recently read an article that explains this very well.  Click HERE to see what the experts are saying, and then call us to help you sell your home, TODAY!!  We have a secret weapon that will help you save money!!  Call Cooper Realty to find out what we will do for you!!

Lewes:  302 644-2266   Seaford:  302 629-6693    Georgetown:  302 856-6434

Author ~ Connie Cooper- Cooper Realty Associates

Add to Del.cio.us RSS Feed Add to Technorati Favorites Stumble It! Digg It!
    www.sajithmr.com

WHAT IS THE DIFFERENCE BETWEEN A SHORT SALE AND A FORECLOSURE?

Whether you are a buyer or a seller, Cooper Realty has the knowledge and experience to take you through the process involved in purchasing or selling a short sale/foreclosure. Give us a call, so that we can go to work for you!


Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

 

Over the past few years, I have been approached with many questions about short sales and foreclosures.   People are seeking to understand the difference between these two unfortunate scenarios.  I have always explained that the short sale approach is far better than a foreclosure.  I recently read an article that explains the difference very well (click the link below to read the article).

I have been involved in both types of transactions and have a lot of experience in working with both buyers and sellers in getting the sale to the table.

Whether you are a buyer or a seller, Cooper Realty has the knowledge and experience to take you through the process involved in purchasing or selling a short sale/foreclosure.  Give us a call, so that we can go to work for you!

Seaford:  302 629-6693  Lewes:  302 644-2266  Georgetown:  302 856-6434

AUTHOR ~ CONNIE COOPER/COOPER REALTY ASSOCIATES

CLICK HERE TO READ ARTICLE

Add to Del.cio.us RSS Feed Add to Technorati Favorites Stumble It! Digg It!
    www.sajithmr.com

SHOULD I STAGE MY HOME?

We are still in a buyer’s market with more short sales and foreclosures coming on the market this quarter than we have seen in two years.


Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

 DO YOU NEED TO STAGE YOUR HOME IN ORDER TO SELL IT?


To stage or not to stage? When selling your home, home staging can help but it may not always be necessary. Realtor® Karen McKnight of Kirkland, WA says that staging a property can help it sell, but that a seller shouldn’t spend money staging if they need to make a choice between a price reduction or paying for staging:

The biggest issue in selling your home is being priced well for the market. If your house is clean and meticulously maintained, you may not need to spend the extra money on staging. I have been in the business since a friend of mine started the concept of staging, which was originally a lot simpler than what has evolved through the 2000s. We are still in a buyer’s market with more short sales and foreclosures coming on the market this quarter than we have seen in two years. What this means for you is that you (under the guidance of your agent) need to be watching the activity very carefully and making decisions based on your number of showings and whether or not buyers are coming back twice. If you have been at your price 30 days with no offer you are probably still too high. Short Sales and foreclosures sell at a 10% to 20% discount so that has the effect of lowering prices. You want to stay ahead of your competition. Make sure you are the best active listing on the market in the area, and that includes competition in nearby neighborhoods, because buyers usually look within a number of neighborhoods based on their commuting and pricing criteria.

Add to Del.cio.us RSS Feed Add to Technorati Favorites Stumble It! Digg It!
    www.sajithmr.com

For home buyers who need to finance their purchase using a mortgage, a cash buyer can be their worst enemy.


Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23

Notice: Undefined offset: 0 in /home/coopcorp/public_html/wordpress/wp-content/plugins/embed-it/embed-it.php on line 23
CASH IS KING!!

 

CASH IS KING IN REAL ESTATE

For home buyers who need to finance their purchase using a mortgage, a cash buyer can be their worst enemy.

That’s because when a buyer makes a cash offer, the seller knows it’s a solid deal – and that financing hiccups won’t delay a closing. Sometimes, that’s enough for the seller to accept a lower bid for a cash deal instead of a higher bid from a financing buyer.  It happened to a client of Dan Quinn, a real estate agent who works for Prudential Carruthers Realtors in Silver Spring, Md. Against a cash buyer, the financing borrower just couldn’t compete, Quinn said.

Short sales repay buyers

Lori Purcell was sick of being a landlady and wanted to unload her two-family house in Garfield, N.J. But she knew it would never sell for the $325,440 she had paid in 2004.

“We were wringing our hands over this because the offer that came in on this property was cash, and we were quite a bit higher than the offer,” Quinn said. The winning bid was for $370,000; his client’s offer was $395,000, he said.

It’s a scenario that is becoming more common with the number of cash buyers on the rise, swooping in for deals onlow-priced properties. Yet while cash is king, there are some things financing buyers can do to better their chances of having an offer accepted.

Perhaps the most important tip: “The smartest thing they can do is make sure they talk to a competent mortgage banker … to preapprove them ahead of time,” said Mike Litzner, broker and owner of Century 21 American Homes, which has locations in Long Island, Queens, Nassau and Suffolk counties in New York.

Also, remember that the more cash you’re willing to put down, the more secure your job and the better your credit, the better off you will be in getting the seller to accept your bid, he said.

In February, all-cash deals made up 33 percent of all home sales – a record high, according to the National Association of Realtors. In 2010, 59 percent of those who bought a home as an investment paid cash for the home, the group found.

People are plunking down cash on properties for a variety of reasons. One popular one: With low housing prices, some people are pulling their money out of the stock market and investing in rental properties, with a plan to own them long term, Quinn said.

That way, their money “is being put to work in what seems to be a bottoming housing market,” he said. “You can buy these things cheap enough and with a small amount of renovation … the rents pay the mortgage,” Quinn said.

Some parents may be providing the cash to help their children buy homes, at a time when financing can be out of reach for young adults, Quinn said.

Instead of applying for a loan from a bank, the kids make their payments to the Bank of Mom and Dad. Meanwhile, the parents can charge 5 percent to 6 percent interest on the loan – earning them more than they’d get on a safe investment such as a certificate of deposit.

Cash offers often win out when the bank is the seller. Those are most likely foreclosures now back on the lender’s books.

When dealing with a bank, remember that lenders are typically more analytical than a homeowner seller, Litzner said. And for an institution, they’re more apt to go with the safest bet.

“Time is money, and taxes are ticking away on [the house]. They want to get the bad loan off their books quicker and the money on their ledgers,” Litzner said.

Someone with cash on hand theoretically could close immediately, while a buyer who needs a mortgage typically drafts a contract contingent on the financing going through.

A typical home seller with equity is less likely to be motivated by a cash buyer, said Donne Knudsen, a mortgage loan originator with Cobalt Financial Corp., serving Los Angeles and Ventura counties.

“When you have an equity seller, they don’t have to take a lowball cash offer,” she said. Instead, they’ll most likely opt for the best and highest offer, since they may not be as motivated by time, she added.

To compete with a cash buyer, you’ll need a bit of strategy.

First, get prequalified – or better yet, preapproved – for a mortgage, Quinn said. Along with a high down payment, preparing to put down a high deposit could also up your chances of beating out a buyer who is bidding with all cash, he said.

Another tip: To beat the deep pockets, you might have to act quickly.

“What I found out is with these cash buyers, they act quickly. To compete, you have to act quickly. A lot of times, these are investors and they have a relationship with these listing agents,” Quinn said. It’s a good idea for the buyer’s agent – or the buyer if he’s representing himself – to develop a rapport with the listing real estate agent, too.  Before writing the offer, your agent – or you, if you’re representing yourself – should do some sleuthing: If possible, figure out what the seller needs, including shorter or longer settlement time. In some cases, your flexibility will be a bonus for the seller, Quinn said.  It’s also important to ask if there are other offers and if any of them are cash, Quinn said. In his experience, a well-prepared contract that is typed out, plus a cover page summary of the contract details, is another way to show you’re serious, he said.

Finally, have patience. If you’re interested in bidding on bargain homes including foreclosures, you might end up looking at 40 different properties and make seven or eight offers before you get one accepted, Knudsen said. “You have to be willing to do whatever it takes,” she said.

And remember, cash deals can fall apart, too, Quinn said.

“Is it $300,000 in green cash in someone’s bank account? Or are they tapping into their 401(k), are they going to be cashing in CDs, are they going to take cash out of another property?” Quinn said.

If investments need to be liquidated for the purchase, that can also put the deal at risk. Sometimes, “cash isn’t really cash,” he said.

Add to Del.cio.us RSS Feed Add to Technorati Favorites Stumble It! Digg It!
    www.sajithmr.com