Monday, December 14, 2009

The Busiest December that I can Remember


My little boy asked me why I am always rushing the other day. While its an indictment on our society these days, its also representative of how busy this December has been for me with real estate. Last year was busy with closings, but this year I've had 4 closings, 4 ratified contracts, 2 additional purchase offers, showings with 2-3 clients a day, several listing appointments, and 6 Broker Price Opinions (pricing foreclosures for the banks), not to mention my normal prospecting activities.

Don't get me wrong, I'm happy (thrilled really) for the business, but I must admit its a bit shocking for this time of year. I think its mostly a result of the tax credit (and recent extension), but its also some pent-up demand for sellers to get back in the market, as well as indicative of a barrage of foreclosures about to hit the market in January and February of 2010.

All of this activity causes me to take this time to pause and reflect on the present and enjoy my family and working in a career that I am truly passionate about. Thank goodness for the internet helping out with the holiday shopping!

One can only hope that 2010 brings as much good fortune as I've experienced in 2009, but I do need to remember every once in a while to take it all in and "smell the coffee!"

Thursday, December 10, 2009

The Joy and Pride of Home Ownership


Say what you will about the financial benefits of owning a home, there is something so much more powerful about the emotion and feeling of owning your own home. This picture to the left if of a Chicago man at age 80 standing in front of his home that he bought in 1964 for $19,000 - how happy is he (and how much has that beautiful home appreciated)?

I came to this topic as a result of a closing that I had yesterday in Mechanicsville for a single first time home buyer (and local firefighter) and unlike most closings that are held in a title or lawyers office, this closing was held in the home that was being purchased. This young man entered the home hand-in-hand with his girlfriend and was all smiles the entire time. He signed the papers and then ushered the notary and myself out of his new home with happy holiday well wishes, smiling from ear to ear. The home he bought was a beat-up foreclosure which inherits about $25,000 in equity, but it really represents stability and creativity. He will have the opportunity to totally shape how this house looks and feels, thus making it his slice of heaven in this ever-changing difficult world that we live in.

It is for this reason, more than any other that owning your own home is still the American Dream. Seeing those smiles and heartfelt pride is largely why I became a Realtor in the first place and why I feel so passionately for my profession to help others feel what I've felt, what this young man felt, and what this elder in Chicago still feels today!

Sunday, December 6, 2009

What's the right time to buy or sell?


Many sellers nationally and locally, here in Richmond, have been sitting on the sidelines for the greater part of 2 years. Additionally, a lot of buyers have been hesitant to buy for fear that the market prices will continue to fall. So, my thought is that the time to buy or sell is NOW and here's why:
1. The tax credit, especially the $6500 for trade-up buyers who've owned their home for 5 years (and have equity), will bring new buyers for sellers and be a short-term incentive that for many will provide the impetus to act now.
2. The post-holiday is a big season for home buyers many of whom are off from work with time to kill and they're spending that time reviewing real estate websites and thinking strategy for the new year, while also reflecting on their goals for the next year. Therefore, the best time to list your home might just be immediately prior to Christmas or right after (like December 26th).
3. Home prices have started to stabilize while still falling in some areas, but rising in others. No one can really call the market bottom until after the fact, but if we haven't already seen it, then we're pretty close. If you continue to wait, then you just might miss the lowest prices.
4. Interest rates are still really low. You can still find rates in the 4's in many cases, and rates are artificially low right now based on the government buying so many bonds and T-bills. Thus, this situation can not last forever and when rates change (likely in 2nd half of next year if not sooner), then they could change very quickly and very dramatically. Earlier this year (or was it last year) rates went from the 4's to the mid 6's very quickly and luckily we recovered - we may not be so lucky next time.
5. Besides the tax credit, many of the same tax benefits of home ownership that have always existed remain. Most notably is the potential tax write-off of mortgage interest, as well as the potential for future price appreciation. Please check with your accountant or tax professional for details here.
6. There is a ton of "shadow inventory" foreclosures that are and will be hitting the market in the first quarter of 2010. This will provide many great deals that haven't been there. Most housing experts are predicting that this is the last great hurrah of foreclosures. We can only hope that they are right. An example of this is how many HUD homes are currently available - normally there are only about 2-4 in Chesterfield, but right now there are about 10. Multiply that out for all types of foreclosures and you can see how quickly those numbers get really big.

So, if you've been thinking about buying or selling, especially selling, then the time to act is now. Don't miss this artificial bubble of buyers that may be there only until April 30th.

Wednesday, December 2, 2009

Don't sleep on the 203k (Renovation Loan).. Its time is now!


Want to get that amazing deal on a short sale, foreclosure, or whole-sale property, but not have to live with the "icky" feeling that most of them have when you're walking through them?

Well, you're best bet might be a 203k loan, commonly called the renovation loan, where you can get both the funds to purchase the house and the money to fix it up. To do this, you'll need potential walk-in equity, but that's certainly able to be found in this market and often is most easily ascertained from list price versus tax assessment.

Not every loan officer knows how to do this type of loan, but for those that do, this may help you to make your dreams come true. You'll need to hire contractors to do the work as it'll need to pass FHA inspections after the completion of the work and they can't build new outdoor pools, spas, or outdoor kitchens, but anything else can be rebuilt or completely renovated. The only main down-side is that this is strictly for owner-occupants (sorry investors), but you do NOT have to be a first time home buyer. You can actually do these up to about $535,000!!

Contact me for details if you're interested in learning more or going through this process!