RealtyTrac, one of the leading online marketplaces for foreclosure properties released its first U.S. Foreclosure Sales Report, which shows that foreclosure homes accounted for 31% of all residential sales in the first quarter of 2010, and that the average sales price of properties that sold while in some stage of foreclosure was nearly 27% below the average sales price of properties not in the foreclosure process.
Foreclosure sales accounted for 64% of all sales in Nevada in the first quarter, the highest percentage of any state. California posted the second highest percentage, with foreclosure sales accounting for 51% of all sales there in the first quarter Other states where foreclosure sales accounted for at least one-third of all sales were Massachusetts, Rhode Island, Florida, Michigan, Georgia, Illinois, Idaho and Oregon.
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Posts Tagged ‘homes’
Foreclosure Sales Report
5 Reasons Why Electronic Lockboxes Make Sense Today
5 reasons why electronic lockboxes make sense in today’s market:
1. An electronic lockbox system provides an essential part of the marketing strategy to gain feedback and generate showings into offers.
2. Secure controlled access management of property keys. Agents no longer have to worry about who has access to listing keys. Electronic lockboxes strictly limit access to other agents or approved visitors who have gotten a lockbox key/card from the local Association or Board of Realtors. The keys/cards require a code or PIN be entered by the owner in order to access the lockbox.
3. It’s no longer necessary to drive around town to real estate offices picking up and dropping off keys to properties. That time can be better invested gaining more “face time” with clients–or potential clients. With easy access to the keys, you don’t have to arrange time to pick up the keys, or wait for the listing agent to be available to let you into the property. Fewer showings will occur while waiting for the availability of the keys. Having the keys readily accessible at the property saves time for all involved parties.
4. Showing notifications and automated feedback for each property access. The great thing about electronic lockboxes is that they have the ability to record and hold data and every single access is recorded. Not only that, but some systems allow for notifications to be sent to notify the listing agent of an access to their lockbox. Add in the ability of some systems to automatically send an email asking for feedback, and you have a very powerful system working for you.
5. Detailed access reporting. In today’s market, sellers are becoming more intimately involved with the selling process of their home. In addition to having the ability to record entries, electronic lockbox systems also allow for detailed access reporting to clients. You can now give a client data showing how often their house is being shown.
Thanks to our friends at Ris Media for great information.
Family Reunions are Taking on a New Meaning
Ris Media had an interesting article that is an interesting perspective on Family reunions. Family reunions are taking on a new meaning in the real estate market. According to a recent survey, 37% of sales professionals surveyed noted an increase in home buyers looking to purchase homes to accommodate more than one generation of their family. In addition, many sales agents believe that economic conditions may cause greater demand for multi-generational homes in their market during the next year.
Financial drivers as the No. 1 reason why home buyers or sellers are moving into a house with other generations of their family (39%). Twenty-nine percent said that health care issues are the primary reason, and 6% cited a strong family bond as the main factor.
While saving money is certainly an incentive for buying a home that accommodates multiple generations, the benefits go beyond just financial reasons. With two or three generations living under one roof, families often experience more flexible schedules, quality time with one another and can better juggle childcare and eldercare.
It is important to determine how comfortable the family members are about sharing bathrooms, office space or common areas. These topics are incredibly important in finding the right kind of home to fit the family.
Helpful Hints:
-Sellers with “mother in-law suites” or additional spaces that could accommodate a family interested in a multi-generational living arrangement should highlight this aspect of the home. Whether it’s a garage apartment or refurbished basement, this separate space can help one home stand apart from the others on its block.
-Buyers must be clear about their exact needs. Some families may just want an extra bedroom or two for family members, while others require areas with a separate kitchen, entrance, handicap accessibility or even a larger garage for additional cars. Desired location may also be influenced by proximity to local hospitals, senior centers or other important activities to family members.
-Extended families purchasing a home together should consider signing a written contract outlining everything from finances to chores and childcare. Each family should assess their situation individually and find a plan that works best for them.
FHA Changes you should know about
1. The upfront mortgage insurance premium (UFMIP) will increase to 2.25 % up from 1.75% and FHA will continue to allow the financing of the UFMIP.
2. Borrowers with a credit score below 580 will be required to have at least 10% down payment. Borrowers with credit scores over 580 will remain at 3.5%. FHA will seek legislative authority to increase the annual premium which is now capped at .55 percent. If FHA can increase the annual premium, it may be able to reduce the up-front premium.
3. Seller concessions will be reduced to 3% from 6%.
FHA will make the following lender enforcement changes:
1. FHA will implement credit watch terminations at lender underwriting.
2. A public reporting of a lender’s performance using a scorecard system will be implemented.
3. FHA will implement, using notices and comments, indemnification against lenders. Indemnification will be expanded beyond fraud and misrepresentation.
4. FHA will seek legislative authority to enforce indemnifications against direct endorsed (DE) lenders.
5. FHA will seek legislative authority to sanction lenders nationwide based on performance of local branch.
The FHA is an integral part in continued recovery of the real estate industry and the overall economy. The National Association of Realtors will continue to work with FHA, the current administration and the Congress to ensure the FHA can fulfill its mission while providing for the safety and soundness of the insurance fund. It will be important to balance risk management while creating homeownership opportunities across the US.
Sellers-Keep your homes on the market!
Sellers-the amount of buyer traffic right now through homes is the most I have seen in 23 years. The buyers are determining that now is the right time to buy. When you look at the combination of rock-bottom prices and historically low interest rates, the buyers are recognizing this opportunity is short-lived. Food for thought for both buyers and sellers, Do you think the interest rates we are now enjoying are true rates or incentive rates? They are incentive rates to encourage the purchase of homes. The prediction is Mortgage rates will rise in the first quarter of 2010, because of the weak dollar. It is the old saying “you know what you have, but you don’t know what you’ll get.” Keep your home on the market.
A new type of foreclosure
I was having a conversation with a client recently to whom I have sold two homes. His current home, his primary residence is now way under water. The purchase price of the home was in the mid $800,000 range. Today the home is valued at around $500,000.
It would be important to note this client is a very conservative man, married with a couple of children. He is not impulsive. He is very analytical, extremely conservative and successful, and has an excellent job plus lots of savings.
For him, buying a home is a very arduous task, as he constantly questions himself about making the right decision. That is where I come in, providing him with enough information, market statistics and emotional support (hand holding) to make a decision.
Recently I called to tell him that I thought we should, in earnest, find him the move-up home he and his wife have coveted for so long. I told him the combination of today’s interest rates and low prices will not last. He agreed and thus began the portion of the eye-opening conversation I am sharing with you here.
I asked him, if he was planning on selling the current residence or would it become a rental property? With almost no hesitation, he told me he would just let the home “GO”. “Go,” I said. This was a radical answer coming from this gentleman. It must be a joke, I thought. I needed to probe further. “Let the home go,” I said, “as in let the bank foreclose on the home?” “Yes,” he replied. “It doesn’t make good business sense to keep it. If you look at the loss on the house in this current market and figure a modest gain going forward, it will take years for the home to reach the same market value as when I purchased it. At that point I would have zero return on my investment. Keeping it would be a very bad business decision.”
I must admit that what he was saying was true. Being analytical, he had looked at the numbers and arrived at his conclusion. He is right. It will take a long time to rebound to its original market value, but let it go…..I couldn’t believe he was actually serious. He was and is dead serious. From his point of view he is looking at the purchase of his current home NOW as a business deal gone bad. He sees no purpose in throwing “good money after bad”, so he wants to purchase his move-up home while he still has stellar credit, verifiable income and strong cash assets. Once he owns the new home, he will let the current residence go. He figures he is better off washing his hands of his bad investment and focusing his attention on building his cash reserves and making other investments that will give him a positive return on his investment. “After all,” he said, “I need to think of my growing family. If I keep the house, it will take years just to see the house reach its original value and I will still be behind the eight ball with no return on my investment at that point. It doesn’t make sense to keep it.”
Suddenly I realized I was staring in the face of a “new” type of foreclosure……….not one out of financial desperation, but one out of financial “choice.” How many others will be making this type of decision and what will it do to an already unstable marketplace?
Barbara Amstadter
Named 2009 "Realtor of the
Year", Barbara
Amstadter is a name well recognized in the local community. She served as a co-founder of the "Committee of 4000", representing the owners of 4000 leasehold parcels in a legal fight for "leaseholder" rights. She helped negotiate the final monetary settlement, the largest in US history at the time.
Susi Scholl
Susi brings extensive
backgrounds in escrow
and new home sales to the 22 year successful partnership of Barbara and Susi. She is, also, a recipient of the 15 year "Legend" award (bestowed on only 3 agents out of 66,000 worldwide at the time). Susi and Barbara have been ranked in the top 1% of realtors internationally year in and year out.
