Selling your house in today’s market can be extremely difficult. It is for that reason that every seller should take advantage of each and every chance that appears. There is a fantastic opportunity available right now. Meet with your real estate agent and mortgage professional today and see whether it is the right time for you and your family to make a move.
Here are five reasons you should consider selling in the first 90 days of 2011.
1. Interest rates have spiked up.
Rates have jumped over 1/2 point in the last several weeks. The short term result of increasing rates is a surge of buyers jumping off the fence to purchase in fear that rates may continue climbing upward. This is a short window of opportunity. If rates fall again, buyers will jump back on the fence. If rates continue to rise, it limits the number of buyers who can qualify at each price point. Now is the best time to sell your house.
2. If you are moving up, you can save thousands.
If your family goal is to sell your current house and take advantage of the fabulous selection of properties currently available to buy the home of your dreams a at bargain basement price, DO IT NOW! Prices will continue to soften in most markets. However, if you are buying, COST should be more important than PRICE. Cost can be dramatically impacted by rising mortgage interest rates. Do the math and decide if now is the time.
3. During the winter months, the buyers are serious.
We all realize that buyers are not quick to pull the trigger on the purchase of a home today. There is no sense of urgency with the supply of eligible properties at all time highs. However, at this time of year, the ‘lookers’ are either staying warm (in the North) or just busy with other priorities. The home buyers left in the market are serious and are more apt to buy. Less showings – but to more motivated purchasers.
4. You beat the rush of inventory that is coming next year.
Every year there is an increase of inventory which comes to market from January through April as homeowners put their houses up for sale in preparation for the spring market. Here is the number of listings available for sale in 2010.
• January – 3,277,000
• February – 3,531,000
• March – 3,626,000
• April – 4,029,000
We believe there is a pent-up selling demand (homeowners who have held off selling over the last year) that will lead to an increase in these numbers this spring. You won’t have to worry about this increasing competition if you sell now.
5. You have less ‘discounted’ inventory with which to compete.
This year, sellers of non-distressed properties have been given an early holiday present. With banks trying to rectify their foreclosure procedures, there has been a large supply of discounted properties removed from competition. No one knows how long it will take banks to return to the normal flow of foreclosed properties to the market. However, until they do, every homeowner has a better chance of selling their property.
Bottom Line
If you are looking to sell in 2011, there may not be a more opportune time than this right now. Serious buyers, great move-up deals and less competition from super-motivated sellers and foreclosures creates the perfect selling situation. Don’t miss it! Wherever you are located, contact me at 770 377 1319. As a Member of Leading Real Estate Companies of The World I have access to the best and most professional agents in almost every city.
Wednesday, December 22, 2010
Uderwater borrowers have decreased
The number of homeowners in the U.S. who owe more on their properties than what those homes are worth has declined steadily for most of 2010, according to Santa Ana, Calif. research firm CoreLogic. But the drop in properties with negative equity has more to do with troubled borrowers losing their homes to foreclosure than an increase in prices. About 10.8 million, or 22.5% of residential properties with mortgages were in negative equity positions at the end of the third quarter. That is down from 11 million, or 23%, in the second quarter.
The number of underwater borrowers has declined by more than 500,000 during the first nine months of 2010, according to CoreLogic.
“Negative equity is a primary factor holding back the housing market and broader economy,” CoreLogic Chief Economist Mark Fleming said. “The good news is that negative equity is slowly declining, but the bad news is that price declines are accelerating, which may put a stop to or reverse the recent improvement.”
About 2.4 million borrowers had very little equity, less than 5%, at the end of the third quarter. Underwater and near-underwater loans accounted for 27.5% of all U.S. mortgages.
The states with the most underwater mortgages at the end of the third quarter were Nevada with 67%, Arizona with 49%, Florida 46%, Michigan 38% and California 32%.
(c) 2010, Los Angeles Times.
RISMEDIA, December 15, 2010—(MCT)—
Distributed by McClatchy-Tribune Information Services.
The number of underwater borrowers has declined by more than 500,000 during the first nine months of 2010, according to CoreLogic.
“Negative equity is a primary factor holding back the housing market and broader economy,” CoreLogic Chief Economist Mark Fleming said. “The good news is that negative equity is slowly declining, but the bad news is that price declines are accelerating, which may put a stop to or reverse the recent improvement.”
About 2.4 million borrowers had very little equity, less than 5%, at the end of the third quarter. Underwater and near-underwater loans accounted for 27.5% of all U.S. mortgages.
The states with the most underwater mortgages at the end of the third quarter were Nevada with 67%, Arizona with 49%, Florida 46%, Michigan 38% and California 32%.
(c) 2010, Los Angeles Times.
RISMEDIA, December 15, 2010—(MCT)—
Distributed by McClatchy-Tribune Information Services.
Tuesday, June 15, 2010
More than just real estate.
Locally there are many Atlanta Real Estate bargins to be had, some investors and home buyers choose get a bargain by offering to buy homes owned by banks after the conclusion of the foreclosure process. Unfortunately, many of those homes need a substantial amount of work before they can be occupied, and it may not be possible to obtain financing on such a property.
But there's another way to pick up a good deal on your next house. And it can be a win-win transaction for all parties to the deal. It's called a short sale, and here's how it works:
When a borrower decides that he can no longer make the required monthly payments, he may contact a real estate professional about obtaining help with selling his house rather than losing it to foreclosure. If the agent then determines that more is owed on the loan than the house is currently worth, she can call the lender's loss mitigation department.
If the agent can convince the lender that 1) a foreclosure is imminent and that 2) the lender is going to lose money on the eventual sale of the house, the bank may agree to accept less than the full balance of the loan as a payoff. They will only consent if they believe this course of action will result in less of a loss for the bank. And in today's Atlanta Real Estate market that's a fairly easy case to make.
One of the biggest hurdles to a successful short sale is getting the lender to make a decision on any "short sale" offer you might make. And because the process of getting to a closing can be an extremely difficult one, it pays to work with an agent who is a short sale specialist. While there is little anyone can do to move a bank forward in the process, a persistent agent can try to get all the required paperwork submitted in a timely manner. And yes, there is a remarkable amount of paperwork required. Remember, you are dealing with a bank.
Perhaps the biggest problem is that the bank will require that the homeowner (also the defaulting borrower) prove that he has no assets and no income, and that he has suffered some misfortune that prevents him from paying. Proving financial hardship is an art form all its own. In addition, the homeowner can not benefit financially from the sale of his home.
As a result, the homeowner has little incentive to participate in the short sale. And if the bank discovers that you have compensated the seller in any way, they will revoke their agreement to participate in the sale. This is where the patience and professionalism of the facilitating agent can make all the difference.
Finally, make sure you obtain solid legal advice during these transactions. Short sales are not your typical transaction.
Based on an article that appeared in the Atlanta Journal-Constitution
Locally there are many Atlanta Real Estate bargins to be had, some investors and home buyers choose get a bargain by offering to buy homes owned by banks after the conclusion of the foreclosure process. Unfortunately, many of those homes need a substantial amount of work before they can be occupied, and it may not be possible to obtain financing on such a property.
But there's another way to pick up a good deal on your next house. And it can be a win-win transaction for all parties to the deal. It's called a short sale, and here's how it works:
When a borrower decides that he can no longer make the required monthly payments, he may contact a real estate professional about obtaining help with selling his house rather than losing it to foreclosure. If the agent then determines that more is owed on the loan than the house is currently worth, she can call the lender's loss mitigation department.
If the agent can convince the lender that 1) a foreclosure is imminent and that 2) the lender is going to lose money on the eventual sale of the house, the bank may agree to accept less than the full balance of the loan as a payoff. They will only consent if they believe this course of action will result in less of a loss for the bank. And in today's Atlanta Real Estate market that's a fairly easy case to make.
One of the biggest hurdles to a successful short sale is getting the lender to make a decision on any "short sale" offer you might make. And because the process of getting to a closing can be an extremely difficult one, it pays to work with an agent who is a short sale specialist. While there is little anyone can do to move a bank forward in the process, a persistent agent can try to get all the required paperwork submitted in a timely manner. And yes, there is a remarkable amount of paperwork required. Remember, you are dealing with a bank.
Perhaps the biggest problem is that the bank will require that the homeowner (also the defaulting borrower) prove that he has no assets and no income, and that he has suffered some misfortune that prevents him from paying. Proving financial hardship is an art form all its own. In addition, the homeowner can not benefit financially from the sale of his home.
As a result, the homeowner has little incentive to participate in the short sale. And if the bank discovers that you have compensated the seller in any way, they will revoke their agreement to participate in the sale. This is where the patience and professionalism of the facilitating agent can make all the difference.
Finally, make sure you obtain solid legal advice during these transactions. Short sales are not your typical transaction.
Based on an article that appeared in the Atlanta Journal-Constitution
Tuesday, March 9, 2010
The YOUR HOME Credit Guide
Credit is one of the most important tools in the arsenal of your
financial health. Here’s how to keep it sharp.
As a homeowner, you already know the importance of good credit. But no matter how
hard you try, you may not be able to maintain perfect credit year after year. Your
circumstance may change, priorities could shift, and despite good intentions, you could
end up damaging your credit rating.
If you think this is happening to you, what should you do? First, understand that you
are not alone. Millions of Americans every year discover that their credit “score,” the
numerical calculation lenders use to gauge a borrower’s creditworthiness, has fallen.
Second, educate yourself. Though mysterious on the surface, the logic behind credit
scores—how they are determined, how they are used by lenders—is pretty simple, and
there are a few steps you can follow to improve your credit standing.
What’s in a Score?
The three main credit reporting agencies, Experian, Trans Union and Equifax, collect
data on consumers and their borrowing history and share this information with lenders
nationwide. A fourth company, Fair Isaac Company has designed a simple way of
interpreting this data, known as a credit score. Lenders use this score to make quick and fair decisions when offering credit.
Credit scores can range from 350 on the low end to 850 at the top, with the low 600s
representing the generally accepted cut-off for “good”credit. Lenders, such as your
mortgage company or auto dealer, often set numerical guidelines based on credit scores to help them determine whom to offer credit and on what terms. According to Costa Mesa, California-based Experian, the average nationwide credit score as of May 2007,was 692.
Your credit score isn’t the sole determinant of whether or not you are able to secure
credit—and at what interest rate—but it is a factor. Some lenders may set a floor (or
lowest acceptable credit score) beyond which they will not offer credit, while other
lenders may simply assign different interest rates or payment terms to borrowers with
lower scores.
Credit Culprit: Identity Theft
One of the biggest single threats to a homeowner’s credit today is identity theft.While you may not be responsible for the debt if fraud was proven to be the culprit, it could take months or even years to clean up the mess. And during that time, you may have trouble refinancing or getting other credit.
Tracking your credit use is the best method for detecting identity theft. Each of the three credit agencies provides a service (for about $50 annually) that will alert you to unauthorized use of your credit.
Certain financial institutions offer similar types of services, such as e-alerts, which will automatically notify you of any suspicious activity on your account. Many times these services are free.
The Right Mix
Credit scores are influenced by a number of factors, some of
which go beyond the simple standard of whether all your bills
have been paid on time. According to Fair Isaac, the weight of
any one factor depends on the overall information in your
credit report(s).
The biggest determinant (35 percent) of a credit score is your
payment history—how timely and fully you’ve made your
payments. In this regard, every additional month you fall
behind on a payment can lower your score further, while long
stretches of on-time payments are viewed favorably. The
second most important determinant (30 percent) is the total
outstanding amount that you owe, particularly in relation to
your income. Lenders perceive every additional line of credit
(from any source) as a potential barrier to your ability to pay
your bills on time, particularly if your yearly income remains
the same. As a rule, experts suggest carrying no more than 50
percent of your total available credit. In other words, if you
have $20,000 available on all of your credit cards, you should
try to restrict your amount owed to less than $10,000 at any
one time. A common misconception is that closing some
credit card accounts will boost your score. In reality, your
score will only rise if you’re paying down the outstanding debt
on those cards as you’re closing them.
Another factor is the amount of time you’ve had available
credit, particularly revolving credit lines like credit cards or
home equity loans. A credit report with mostly new accounts
is not as favorable as one with accounts that hold a long credit
history. It may be useful to consider any accounts under a year
old as “new.”The type of credit matters, too. A borrower who
has a mortgage, a home equity loan, credit cards and an
education loan, for example, has a healthier mix of credit
products than just holding credit cards. A final significant
factor in determining your credit score is the number
of “inquiries,” or times that a potential lender reviews your
credit report. Even though all credit inquiries received
within a 14-day period is seen as a single inquiry, shopping
for credit numerous times throughout the year can raise a
red flag. This doesn’t include the unsolicited, preapproved
credit card offers you receive in the mail.
Get a Better Score
So what do you do if you discover that your credit score is
lower than desired? Here are a few simple rules to follow
that can help boost your score.
• Pay down your revolving debt. Don’t move debt
around between credit cards.
• Get current on bills and stay current. If paying your
bills is an issue, consider using online bill paying or
other automatic ways to pay your bills. You’ll set it up
once and not only pay your bills but build your score
automatically
• Don’t open a lot of new accounts. Instead, hang onto
and maintain your older accounts.
• If you are having trouble making ends meet, contact
your creditors or see a legitimate, non-profit credit counselor.
Believe it or not, creditors (mortgage or otherwise)
would rather work out a payment schedule than see you
fall delinquent and not pay at all. Good credit can be a
homeowner’s most valuable possession. Use it wisely and
guard it well!
By Robert Irwin
More than just real estate.
Credit is one of the most important tools in the arsenal of your
financial health. Here’s how to keep it sharp.
As a homeowner, you already know the importance of good credit. But no matter how
hard you try, you may not be able to maintain perfect credit year after year. Your
circumstance may change, priorities could shift, and despite good intentions, you could
end up damaging your credit rating.
If you think this is happening to you, what should you do? First, understand that you
are not alone. Millions of Americans every year discover that their credit “score,” the
numerical calculation lenders use to gauge a borrower’s creditworthiness, has fallen.
Second, educate yourself. Though mysterious on the surface, the logic behind credit
scores—how they are determined, how they are used by lenders—is pretty simple, and
there are a few steps you can follow to improve your credit standing.
What’s in a Score?
The three main credit reporting agencies, Experian, Trans Union and Equifax, collect
data on consumers and their borrowing history and share this information with lenders
nationwide. A fourth company, Fair Isaac Company has designed a simple way of
interpreting this data, known as a credit score. Lenders use this score to make quick and fair decisions when offering credit.
Credit scores can range from 350 on the low end to 850 at the top, with the low 600s
representing the generally accepted cut-off for “good”credit. Lenders, such as your
mortgage company or auto dealer, often set numerical guidelines based on credit scores to help them determine whom to offer credit and on what terms. According to Costa Mesa, California-based Experian, the average nationwide credit score as of May 2007,was 692.
Your credit score isn’t the sole determinant of whether or not you are able to secure
credit—and at what interest rate—but it is a factor. Some lenders may set a floor (or
lowest acceptable credit score) beyond which they will not offer credit, while other
lenders may simply assign different interest rates or payment terms to borrowers with
lower scores.
Credit Culprit: Identity Theft
One of the biggest single threats to a homeowner’s credit today is identity theft.While you may not be responsible for the debt if fraud was proven to be the culprit, it could take months or even years to clean up the mess. And during that time, you may have trouble refinancing or getting other credit.
Tracking your credit use is the best method for detecting identity theft. Each of the three credit agencies provides a service (for about $50 annually) that will alert you to unauthorized use of your credit.
Certain financial institutions offer similar types of services, such as e-alerts, which will automatically notify you of any suspicious activity on your account. Many times these services are free.
The Right Mix
Credit scores are influenced by a number of factors, some of
which go beyond the simple standard of whether all your bills
have been paid on time. According to Fair Isaac, the weight of
any one factor depends on the overall information in your
credit report(s).
The biggest determinant (35 percent) of a credit score is your
payment history—how timely and fully you’ve made your
payments. In this regard, every additional month you fall
behind on a payment can lower your score further, while long
stretches of on-time payments are viewed favorably. The
second most important determinant (30 percent) is the total
outstanding amount that you owe, particularly in relation to
your income. Lenders perceive every additional line of credit
(from any source) as a potential barrier to your ability to pay
your bills on time, particularly if your yearly income remains
the same. As a rule, experts suggest carrying no more than 50
percent of your total available credit. In other words, if you
have $20,000 available on all of your credit cards, you should
try to restrict your amount owed to less than $10,000 at any
one time. A common misconception is that closing some
credit card accounts will boost your score. In reality, your
score will only rise if you’re paying down the outstanding debt
on those cards as you’re closing them.
Another factor is the amount of time you’ve had available
credit, particularly revolving credit lines like credit cards or
home equity loans. A credit report with mostly new accounts
is not as favorable as one with accounts that hold a long credit
history. It may be useful to consider any accounts under a year
old as “new.”The type of credit matters, too. A borrower who
has a mortgage, a home equity loan, credit cards and an
education loan, for example, has a healthier mix of credit
products than just holding credit cards. A final significant
factor in determining your credit score is the number
of “inquiries,” or times that a potential lender reviews your
credit report. Even though all credit inquiries received
within a 14-day period is seen as a single inquiry, shopping
for credit numerous times throughout the year can raise a
red flag. This doesn’t include the unsolicited, preapproved
credit card offers you receive in the mail.
Get a Better Score
So what do you do if you discover that your credit score is
lower than desired? Here are a few simple rules to follow
that can help boost your score.
• Pay down your revolving debt. Don’t move debt
around between credit cards.
• Get current on bills and stay current. If paying your
bills is an issue, consider using online bill paying or
other automatic ways to pay your bills. You’ll set it up
once and not only pay your bills but build your score
automatically
• Don’t open a lot of new accounts. Instead, hang onto
and maintain your older accounts.
• If you are having trouble making ends meet, contact
your creditors or see a legitimate, non-profit credit counselor.
Believe it or not, creditors (mortgage or otherwise)
would rather work out a payment schedule than see you
fall delinquent and not pay at all. Good credit can be a
homeowner’s most valuable possession. Use it wisely and
guard it well!
By Robert Irwin
More than just real estate.
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