Sussex County Real Estate Matters – Affecting Seaford, Georgetown, Lauel, Milton, Delmar, Bridgevil
The Mid-Atlantic Sea Glass & Coastal Arts Festival to be held at The Lewes Historical Society June 25 and 26, 2011 will have advance gate passes available for sale at Sand n Stones at 112 Front Street in Lewes and the Ryves Holt House Museum Shop at Second & Mulberry Streets beginning Memorial Day 2011. Passes are $5 and are good for both days of the show.
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.
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.
The Ferry has been outfitted with new thrusters and might be in service soon. We have heard that before. This million dollar boat just has not cut the mustard, it has been out of service more than in.
The villain was fishing line caught in the thrusters. Let’s hope they put screens on the intake side of the thrusters. There is no way to get all of the fishing line out of the Nanticoke River.
This is one telephone number that should be in every household. Please keep it close to your phone. 1-800-222-1222.
The economy seems to be in slow motion. Everyone is watching Washington to see the outcome of the debt ceiling debate. This is the first time in my memory that this debate is not just a footnote on page 10 of the newspaper.
How many water tight compartments were compromised before the unsinkable Titanic was doomed. An iceberg does not have the smarts to avoid a collision. The question is do our elective officials have the smarts to avoid the racing Titanic or do we go down with the ship?
Delaware HP Bill 55 is an attempt to replace the Electoral College with the popular vote. This bill would require that Delaware’s 3 Electoral Votes be given to the winner of the national popular vote and not the winner of state popular vote.
Our founding fathers developed the Electoral College to keep smaller states and regional voices heard, not just the large metropolitan areas. This should not a partisan issue. True the Democrats control the urban vote today, however, no one know who will control that vote 100 years from now.
The weather is either glorious or scorching, go figure. The economy seems to be doing the same. I just wish that the government would learn Webster’s first definition of that word: economy “a thrifty use of material resources : frugality in expenditures”
After several years of pain, the latest statistics from the Mortgage Bankers Association point to a housing market on the mend.
HOUSING CRISIS: A SIGN THAT THE WORST IS OVER
After several years of pain, the latest statistics from the Mortgage Bankers Association point to a housing market on the mend.NEW YORK (CNNMoney) — The mortgage delinquency picture is getting brighter, according to an industry report released Thursday, with falling delinquency rates indicating the housing crisis may be at the beginning of its end.
A quarterly release from the Mortgage Bankers Association revealed that mortgage payment problems eased during the first three months of 2011 for every category of default.
“These numbers point to a mortgage market on the mend,” said Jay Brinkmann, MBA’s chief economist. “Foreclosure starts are at the lowest level since the end of 2008 and had the second largest drop ever. The percentage of loans somewhere in foreclosure is down from last quarter’s record high and also had one of the largest drops we have ever seen.”
He noted the improved performance of loans issued during the years 2005 through 2007, many of which were of the toxic, subprime variety. Those were the mortgages that, he said, “drove the market collapse.” They still accounted for 65% of all delinquencies last quarter, even though they represent just 31% of loans outstanding.
Those loans are performing better now, mostly because many of the worst loans have already been purged from the system through foreclosure, and the remaining ones are now past the age when mortgages usually default.
That, combined with the much stricter underwriting standards for newer mortgages, has improved overall credit quality, and delinquencies should continue to drop.
Even in their improved numbers, the delinquency statistics may be overstating the problem, according to Brinkmann.
He said massive problems in local markets may dominate national data, obscuring the positive trends happening elsewhere. Florida, for example, accounted for nearly a quarter of all homes in foreclosure during the quarter and 23% of loans there are in some stage of delinquency.
“The state has more homes in foreclosure than 22 states have loans,” said Brinkmann. “That’s why I don’t put too much stock in the national numbers. The problem states have too much impact on them.”
The overall national decline comes despite continuing delays in processing foreclosures stemming from the “robo-signing” scandal in which banks were accused of mishandling legal paperwork.
As a result, foreclosures take longer to work through the system, so they show up in delinquency rates quarter after quarter. In New York, for example, the average length of time between a first missed payment and the final bank repossession is now more than two years.
In Florida, according to Brinkmann, many attorneys no longer handle foreclosure cases; the banks are having trouble finding attorneys to foreclose. If they can work through this problem, delinquency rates could decline faster.
Meanwhile, the nation’s continued, albeit slow-motion, economic recovery is also providing some relief. There’s a close correlation between unemployment and mortgage payment problems. Not only are people with jobs more able to make their mortgage payments than unemployed borrowers, but hiring itself boosts consumer confidence and, ultimately, housing markets.
“People with jobs feel they’re less likely to lose them [when they see other people being hired],” said Brinkmann.
That makes them more likely to form new households and buy homes. Some of those homes they buy are in foreclosure, which clears those properties out of delinquency reports such as this one.
The light at the end of the foreclosure crisis tunnel may still be some distance off, but at least it’s visible again after years of doom and gloom.
Lennar has a new program called “Everything’s Included Homes” – Energy Star Certified Appliances, Home Automation and many Luxury Features are included in the price.
Yesterday afternoon, I attended a REALTOR open house at The Plantation Lakes Community- a golf course community in Millsboro, DE. Lennar was introducing some of their new townhome and single family floor plans. There were 4 models to tour, and I’m telling you they are fantastic homes at unbelievable prices. Lennar has a new program called “Everything’s Included Homes” – Energy Star Certified Appliances, Home Automation and many Luxury Features are included in the price. Just to give you an example, take a look at what they are offering in The Bellhaven townhome, starting at just $119,990. Give me a call to discuss the other fine products that are available – Connie Cooper 302 841-4185.
THE BELLHAVEN
Priced New from $119,990
1,246 Sq.Ft., 2 Bedrooms, 2.5 Bathrooms, 1 Car Garage, 3 Stories,
Included Features:
All homes will now come with our HOME AUTOMATION PACKAGE this includes:
FOR A LIMITED TIME: 1 extra wireless camera, 2 additional light models, and another 24 months of monitoring FREE
Now included at NO EXTRA COST our Designer Kitchen Package (a $1,500 value) this package includes:
Kitchen
Bathroom
Interior Features
Exterior Features
Little League in Greenwood, Delaware.
I’m telling my age, but how many of you remember the days and evenings at
the ball park? Dinner at the park was a hotdog and fries. Now I’m
spending two night a week at my granddaughters softball games in Greenwood, DE.
She plays for the Woodbridge Little League.
What’s hard is not howling out instructions to her while she’s on the field, like I did
my own boys when they played. She did good last night she was 1 for 2 and
her team won 2 to 1.. Her name is Emily, and I told her I was going to
make her famous, so if you see her say “Hi”!!!
Thanks,
Steve Taylor
Sussex County Facts
1) At 938 Square Miles Sussex is the largest county east of the Mississippi River
2) Sussex County’s population is over 197,000.
3) More than 8 million visitors hit the beaches annually
4) The Delmarva Peninsula (Sussex County) is the third most difficult area to evacuate in an emergency, first is New York City and second is New Orleans. It is estimated that 4 days would be needed to evacuate the peninsula at the height of the season.
For home buyers who need to finance their purchase using a mortgage, a cash buyer can be their worst enemy.
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.
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.
Statistics confirm that a property for sale receives most of it’s activity within the first 30 days of being placed on the market and if priced properly will receive offers shortly thereafter, if not sooner.
The smartest homebuyers look to their lives, not just the market, for signals about when the time is right to buy
Time to Buy
Your income and career are stable for the foreseeable future. The smartest homebuyers look to their lives, not just the market, for signals about when the time is right to buy. Homebuying is a long, long-term endeavor these days. The goal is to be able to commit to staying in the same place, geographically-speaking, for 7 to 10 years before you buy (more in a foreclosure-riddled market, less in an area that has been more recession-resistant). Most lenders will require that you’ve been at your job – or in the same general field of work – for at least two years before you buy. But that’s the bare minimum – beyond that, you don’t want to be barely beginning a career in which you think you may need to move sooner than that, nor do you want to buy when you’re advanced in your career, but in an industry which is dying or downsizing the workforce in your region (unless you have a strong Plan B).
When you get to the spot in your career where you can realistically project a stable income 7 to 10 years out, life might be giving you a green light to move forward on your homebuying dreams.
Tomorrow’s post will wrap up this 4 part series. Don’t miss it!!
Author~Connie Cooper
It is a good thing that our CIA observered Osama bin Laden in line at the McDonalds waiting for his Happy Meal, otherwise the Pakistani Secret Police would still be looking for him at Berger King.
Truth is stranger than fiction.
Fred Sponseller
Rising rents at a time when the prices of homes for sale are low and, in some places, falling?
Rents are going up. Rental rates in many areas are also on the rise – in fact, the foreclosure crisis has created additional demand on many markets’ rental housing inventory in several different ways. First, former homeowners who lost homes to foreclosure now need to rent; as well, buyers in foreclosure hot spots have been hesitant to buy, many electing to stay renters far beyond when they would have otherwise. On top of all that, super-tight lending guidelines have stopped even some who would like to buy homes from doing so. As a result, rental homes are in high demand – and rents are rising.
Rising rents at a time when the prices of homes for sale are low and, in some places, falling? One more signal that now might just be the time to buy. (Of course, where foreclosures are high, the chances of continued depreciation are, too – to offset this risk, have a long-term plan, to minimize the possibility that you’ll owe more than your home is worth when you need to sell)
Tomorrow, you’ll see how to plan for the long term and minimize your homebuying risk.
CHECK IN TOMORROW FOR SIGNAL #3
Author~Connie Cooper
To rent or to buy?: what used to be a given – that you would buy a home as soon as you could afford to – has become an agonizing conundrum for many a would-be homebuyer, in the face of the housing market’s big bust and super-slow recovery.
To rent or to buy?: what used to be a given – that you would buy a home as soon as you could afford to – has become an agonizing conundrum for many a would-be homebuyer, in the face of the housing market’s big bust and super-slow recovery. Low prices seem to create a wide-open window of opportunity, but they also create the concern that prices will keep falling after closing. And that Catch-22 has hundreds of thousands of buyers-to-be stuck on the fence.
Fortunately, there are handfuls of life, mortgage and local market signals which indicate that the time *might* be right to hop – scratch that – leap off the fence and into homeownership:
Signal #1 – Mortgage rates are going up. Home prices have been low for the last several years, and in fact are currently looking like they’re heading back down to the same levels they were at the depths of the real estate recession. During this same time frame, interest rates have also been low – this one-two punch has created record-high affordability for the last four years running, causing buyers to believe that this window of opportunity won’t be closing anytime soon.
While prices don’t look like they’ll be skyrocketing anytime soon, interest rates are another story. Rates have been on a rollercoaster over the past few months, and with inflation and Fed rates set to spike later this year, today’s low interest rates might be as good as they’re going to get for a long time to come. And I mean a very long time – in the next few years, governmental intervention in the mortgage markets is likely to wind down, and that means higher mortgage interest rates are not only inevitable, they’ll probably be here for a long, long time.
Mortgage rates on the rise are one signal that now might be the peak of home affordability, and the peak of the opportunity to buy.
CHECK IN TOMORROW FOR SIGNAL #2!
Author~ Connie Cooper
Divorce is tough, this can help!
Tommy Cooper, President of Cooper Realty Associates, has been selected to represent the “Divorce Shield Advocate Network”.
As such, if you are facing a possible divorce situation on the horizon, Divorce Shield can help. Download your FREE INFORMATION PACKET which will help you gain clarity, control, and confidence. After that, view MY PROFESSIONAL PROFILE which describes how I can help you through this difficult situation.
Author~ Tommy Cooper
This sure was a cold winter on Delmarva this year!
It’s Howdy Doody Time!
This sure was a cold winter on Delmarva this year! Now, it is time to get out and say “Howdy” to all your neighbors! Spring is here and I’m sure everyone is working in the yard. Just look at all the flowers in the neighborhood. The trees are full of blooms and the lilacs smell so good. If your yard is anything like mine, it could use more perennials. We went to Jeff’s Nursery in Laurel, DE this weekend, but Lowe’s in Seaford, DE or Lewes, DE will have an array of choices too. Jeff’s Nursery has been around for a long time and offers plants, shrubs and advice you may not find other places. It’s a friendly time of the year so put on your smile and wave to your neighbors with a friendly “Howdy”!
Author~Carol Johansen
Adrenalin Rush? Bucket List? need for speed? Only you can answer this mystery.
