The Reality of Listing Real Estate

There is plenty of inventory in the market for buyers, thus creating a buyers market. Good for the buyer but what about the seller? Well, reality can be harsh sometimes and for the seller today, many times there not hearing what they want to hear. When you decide to sell your home, for whatever reason, the value is determined by a realtor, based on what similar homes in a close proximity of yours sold for recently as a major factor. Many other things factor is as well, the year of your home, condition, location and desirability to name a few. What can happen in any market is happening now it seems more than ever. Sellers are asking for at least two realtor's to come to their home and do a CMA (Comparative Market Analysis) which is by far, the most in depth way to determine the actual value of your home. There will likely be a minor difference in opinion between realtor's, however, it should be pretty close if done correctly and by competent realtor's.

Herein lies the problem, based on a lot of listings we're seeing and from our own experiences. Let's simplify the issue. Realtor one comes out and and generally asks in the first few minutes what you think you'd like to sell your home for. You've got a number in mind and discuss it with the realtor. OK, now the realtor will let you know if your in the ball park based on their personal opinion and takes the information they need to do a full CMA and after a couple of days and hours of in depth analysis, comes up with a value of $215,900. The realtor can provide you with the tools used to determine the value and discusses the information they used regarding the determination of value and you can decide to list the home with them or have a second or even third realtor provide you with a CMA (we recommend a 2nd opinion for your personal concern) and decide who you feel will do the best job in your interests. For our scenario, we'll consider only a second realtor. The process is the same, however, when you get your CMA from realtor #2, the value is significantly higher. For our scenario, we'll say 15K higher. This should be a matter of concern for you immediately. Keep in mind, the realtor's are competing for your business and a difference of 15K is something you need to consider. But who's closer to the right number?

To determine that, it's time for you to do some homework. Compare the CMA's and think back to your original number you discussed to sell with both realtor's. Is one value exactly or close to what you wanted originally? Are the CMA's both done professionally and using a majority of the same information in determining value? Look on the internet for homes similar to yours and see what they're listed for currently. Many times but certainly not always, it might seem the lower number is the reality of the situation and the higher number has some major differences in what homes were used for comparison.

Now, you need to make a decision. List at the higher price and hope someone pays the price? List at the lower price and enhance your opportunity for a quicker sale? This decision lies with you alone. Keep in mind the old saying that "If it seems to good to be true, it probably is". Look around and consider the reasonability of both or more numbers if you have them. We're not insinuating that the lower number is always the correct number, what we're asking you to do is take a common sense approach to listing your home and consider what's important to you. You may have all the time in the world and want to list at the higher price to see if someone bites at it. That again is completely up to you. You also need to consider the market and the inventory available. Is your home going to be passed by strictly because it's priced over market value and there are many others to choose from. The short answer is yes. When it comes down to it, you need to pick the realtor you feel comfortable with and not the one who told you what you wanted to hear. You control the situation but keep in mind, you are signing into a business relationship with a realtor and signing a binding contract for typically at least 6 months. Who do you want to be in business with? That, my friends, is completely up to you. Good luck!

Why a buyers agent is more important than ever!!!

Wow, it's been a while but we've been so busy trying to deal with all the changes in both the real estate and mortgage market, frankly we've been consumed. However, we feel confident that we've ironed out the wrinkles through trial and tribulation and it's time to get back to what we're here for, informing you and giving you sound advice to decide what's the best route for you to go regarding buying a new home. We'd like to start by letting you know now more than ever, if you decide to go out and start the process, the most important thing you can do is find a respectable buyers agent to protect you. Now, there's something you need to be aware of in doing this. Buyers agent's consider you one of two things. You're either a "customer" or a "client". The difference? Well, that is subject to opinion as far as we're concerned at The Total Team. If you have what we would consider a top shelf buyers agent, they wouldn't ask you to consider the client option until you find a home you'd like to make an offer on. The reasoning behind this is best quoted from one of the best buyers agents I've had the pleasure of doing business with in 11 years of being a mortgage officer. Marilou Strickland, Owner/Broker of Lamprey River Real Estate in Raymond N.H. explains it like this..."it's like buying a car, let's try it out and see how you like it". It can't be put any more simply than that. If you sign a contract up front and find the realtor doesn't meet your expectations, you may have difficulty moving on for a limited amount of time. That is if you've signed a contract to become a client as opposed to being a customer where no contract is signed. The way Marilou looks at it is that you're a client regardless of a contract and treats you as such. The realtors obligation to you differs between client and customer to the extent of them acting as your sole partner and making sure you have all the information required as a new home buyer where if you're a customer, there only real obligation is honesty. Wouldn't you expect that regardless? Of course you would and should. Once you've found the home, sign the contract as a matter of standard business practice with your realtor. If you've gotten to that point and have a home in mind, you really should know all you need to about the realtor and be more than comfortable doing so. That's what we've got for you today so think about the great deals that are available both with mortgage's and real estate today. It's most certainly a buyers market and quite possibly, time for you to own your own home. Please call Scott @ 603-396-1841 or Rob @603-370-0711 if you have questions or would like a free consult regarding either mortgages or real estate. If you'd like to speak with our good friend Mary who I mentioned above, call her at 603-759-3931 and let her prove to you why she's one of the best in N.H. Have a great Thanksgiving and we'll be back in a few days with more info on navigating the everchanging market and any changes you need to be aware of. Thanks for stopping by our little slice of the web!

Financing and Lending Turmoil

It's been almost a full month since we've updated you and mainly, there just hasn't been much news to inform you with so we've laid low. However, there is a trend we're seeing that is making things difficult to finalize the purchase of your new home and we'd be remiss not to tell you about it, our job from the beginning is to guide and protect you from the pitfalls of any market and this needs to be mentioned. The guidelines we have used for years regarding pre-approving customers are changing sometimes daily and I mean this in a literal sense. What this forces us to do is consider every conceivable issue that could come up in the process to assure you don't get to your commitment date and find out the approval doesn't stand any longer. This is much easier said than done. The examples are many but allow me to give you just one. A borrower comes to me as a trusted friend and associate and would like to take advantage of the current market. Being that I feel very confident in what I do, I move ahead and get all the information needed and turn in the loan for the pre-approval. The information is run through the FHA decision engine and comes back approved. I confidently send my client out to find there new home and they did, quickly. We get the remainder of information that is pertinent and chose an investor with the premium rate available that day. To my surprise, the loan is denied in a few days due to credit score. Keep in mind the FHA decision engine approved this loan knowing the scores but obviously found merit in the rest of the findings. The reason for the denial? The lender has adopted their own set of rules and DO NOT have to use FHA guidelines. They can stipulate anything they want above and beyond the FHA guide and there's not a thing that I or anyone else can do it. Unfortunately, when these changes are made, nearly every other lender out there follows suit. What this does is leave my borrower in a position either with a deposit or the loss of a home they desperately want, not to mention the fact that my credibility is quickly brought into question. This blog is not to scare you from attempting a home purchase, it's only intention is to let you know to be very cautious of a pre-approval you get from someone asking if your credit is good and just faxing you over a letter saying your all set. There are many things to be considered and questioned so that you know what is solid and what is not. Even then, there's no way to determine the fact that a rule change may hit while you are in process to purchase and be an issue. Scott and I are taking every possible measure to see this doesn't happen in the future and will keep you updated as things ease up. Until then, call or e-mail and ask us any questions or voice any concerns you have regardless of who you are working with and we'll take all the time you need to get a better understanding of your personal situation.

Should I wait???

Ok, this market has been difficult enough to navigate with all the propaganda you've heard and seen whithin numerous media outlets. Now, with the $8000 tax credit and the possibility of being able to use it for down payment, it would seem that the longer you wait to buy your new home, the better it will be for you. The one thing that no one tells you is this, just because the government comes up with a program to aid the housing market, the unfortunate reality is that they cannot force lenders and investors to make them available. For instance, in 2008 the "Hope for Homeowners" program came into effect on late November and was designed to help homeowners who were in danger of foreclosure. Great idea, the problem being, none of the lenders or investors wanted to hold any of the notes on these loans and ultimately, we never heard a thing more about it. We forget quickly but are some of you remembering hearing of the program right now? So, why am I trying to bring you down? Actually, it's quite the opposite. The thought here is that over time, every product or service has promised to get better than worse. The fact is, now is the best time to buy a house bar none in at least 15 years. Don't be the "what if" customer, trust me. I've heard so many people (including myself) say "what if I would have bought then?" or "what would my payment be now if I'd financed my house when the rates were that low"? You can go on and on thinking what if and woulda, shoulda, coulda for the rest of your life. I'm not trying to be harsh, I'm trying to help you from making the same mistake me and many of my friends and fellow proffessionals made. It's time to look around and see if there's something you like out there. Remember, a buyers agent is essential to you and more so in this market. Don't go out there with no one looking out for you. Enjoy the sun and the heat!!! It's gonna be an awesome day!!!

Buyers Market??? Split Market???

Wow, it's been a crazy month and I haven't really had anything much to offer so forgive me for being a while with updates. Today though, I have some information that will suprise some of you. We're seeing a trend lately in this "buyers market". Let me give you an example, there are several clients we personally know have who are making offers on homes in the $100 to $200K range as of late. The homes generally are bank owned and in need of some in need of repair. Price range is great though and prompting buyers to make their move. The thing is, offers are being made and we're commonly being told that someone already came in at the asking price, so, if we'd like to make an offer over that, please do! What I'm saying in a nutshell is that the "buyers market" in this price range isn't so much today. At least not in this part of the state. This means we're seeing something I don't recall in my time in real estate and mortgages. We're actually seeing a split market! 200 to 300K is not moving as quickly as the under 200k market, but we're seeing movement there too, offers are being made and often accepted but at full price. The real "buyers market" is in the price range over 300K. Those properties just don't seem to be moving or if so very little. Don't let this opportunity pass you buy folks, the trend is slowly starting to change, but it could flip completely very quickly. Go ahead and find your house now, wouldn't it be nice to buy your home now and have it DOUBLE in value over the next 5-10 years. Show us a stock that can near promise that kind of return and we'll buy it!!!

Reality hits the Real Estate Market...

Well, Spring has finally arrived and it's about time! If you've been house shopping recently, you may have found a trend a bit different than you expected. I personally have buyers out shopping who are finding the same thing. The trend is something we've not been used to and seems to be increasingly more common. Houses are selling! Forgive me if I sound sarcastic, in all reality this is what is happening over the last 30-60 days and the proof is everywhere.

What we're finding is that banks are listing foreclosed and short sale homes aggressively and holding to that number. There may be some wiggle room for assistance with closing cost's or reasonable offers excepted, but many buyers are finding that when they go back to make that second offer that the home is sold already. The fact is, two counties in N.H. have sold more homes than have been listed in the last two months. It's been a while since we've seen that. So, if you've been waiting for the market to bottom out and getting ready to start your search for a home...get moving. It's going to be a busy Spring and realtor's are aware of it. Mortgage companies are gearing up for it as well. Lending practices have changed dramatically and realtor's phones are starting to ring, so while you are out looking at homes, here are some things to keep in mind.

1. Bank owned and foreclosed properties are almost always going to be a lengthy transaction. In some cases I've heard, as long as 3 months until the buyer was able to move in. Plan on this and be happy with the deal you get, your investment is sure to pay off over the next 5-7 years. Which, statistically is the length of time first time buyers are in their first home.

2. Don't expect to "steal" the home of your dreams. You've found the house you want and due to the state of the market you ask your realtor to offer $20,000.00 less than the listed price. You may not even get a response on an offer like that although your realtor is required to make it, you may in fact, just insult the selling party and they can chose not to deal with you at all. This is not to be taken lightly, I'm absolutely telling you the truth. The seller can chose simply not to deal with you and that's that.

3. Don't even attempt to make an offer without a strong pre-approval from a mortgage officer/company you feel comfortable with. In fact, go one step further and ask for a pre-commitment from your lender and realize that it's worth it's wait in gold in this market. With good reason too, a pre-approval means someone looked at your credit and got some income figures from you to base their personal decision on whether or not they can get you a loan. It's become much more difficult to gain a mortgage approval than many of us were used to. I personally prefer to get all the information from my customers as if they have found a home and run the loan through the program I think will work for them to actually get an approval. It's like having cash in your pocket and can often mean your offer is accepted over the person with the "pre-approval" only, in some cases, even if your offer is slightly less.

So, I've provided you with a bunch of information today and as always, this blog is based on our opinion and what we're seeing daily in the market. Make your offer when you find the home you love, because while your thinking it over, someone else has likely made their offer and it's being accepted and written up. This is where we're heading and though the increase in homes may not be much, it's our opinion, based on what research we've done, home prices will be going up slightly over the next year. $5,000 may not seem like much when you're considering spending $150,000 on a home, but ask yourself this, is that $5000 better in your pocket or someone else's? As always, our contact info is listed above, don't hesitate to get in touch. Stay well, soon enough we'll see tree's budding and green grass ;)

How low can it go??? For how long???

At the risk of being repetitious, I've had one lingering thought since my last blog that has been keeping me awake at night (literally some nights) regarding you and the refinance or home buying market today. I'm not going to bore you with what the Fed. is doing and how mortgage backed securities just recently became a lucrative investment for investors and blah, blah, blah....here's the reality of all that you're hearing and reading on the news and in print. The housing market is starting (albeit extremely slowly) to come back around whether or not there is a Republican or Democratic President, the sun is shining, it's finally spring or whatever excuse you hear from the talking heads. One thing for us to consider is that (the following is fact), N.H. was really one of the least affected area's in the U.S. by this housing crunch by far...don't think it's true? Look on the Internet anywhere in FLA. to see what you can buy housing for down there. Again, as I often mention, this is our opinion on the market and based on the current trends we're actually dealing with from day to day in real time. The American people have only so much patience and if you ask me, it's us who will end the recession, not a government backed stimulus package or who the Secretary of Treasury is...no to offend again, our thoughts only. But, if we're right...here's the deal. We are consumers at heart and it's very likely we've all cut back in one way or another for at least a year or two at this point. Some of us have lost jobs, homes and far more in some cases. What's happens in our opinion is this, say what you like about the state of this country or the economy but one thing historically remains true. We are, at the very least, resilient. We can only take things for so long before we say "enough"! We're heading in that direction folks. Where does this all come together? We're getting tired of it all and I hear it everyday. People have started to find ways to overcome whatever their personal situation and moving on with their lives. We're tired of waiting. If you think the investors and lenders don't pay millions of dollars to watch what we do and when we do it, think again. They check our tolerance in different ways in different markets and in mortgage and real estate by adjusting rates to see how we react. The price of real estate follows the trend and before you know it, the home you've been watching just went up 5K instead of down. Tough way to find out the market has bottomed out huh? We're getting ready to say enough and that means sellers as well. Many have reached their threshold and will now hold firmly on price (including bank owned properties) because of this reason alone. We're stubborn and when we say enough is enough, we mean it. Take this into consideration while your waiting for the rate that's being promised to you on the radio or go on the web to find the home you've been eyeing is currently listed as sold all of the sudden. Think of it this way as I leave you on this sunny (but chilly) day of Spring...take a situation in your life in which you have been challenged, how far could you be pushed before you pushed back or halted the situation by whatever means it took. We've all been there...how much more can we as a country take? I have a feeling we're at the breaking point, follow your heart folks,but, don't let it cost you 5 grand or more. It can't pay you back ;) Enjoy your day and as always, contact info is at the top of the page, let us know of any specific questions we can help with, we're not attorney's so all advice is free!!!