Friday, November 20, 2009

Are new home sales pulling market values down?

I have been working with a buyer this week, and after seeing all the resale inventory including short sales, and foreclosures they decided on a new build. What is amazing to me is that the deal they got with the local builder is BETTER than any of the comparable resales in that area.
A resale home that was essentially the same home as they purchased was an option, BUT it was 45,000 dollars more, and a SHORT SALE too. The new construction will take 8 months to close, but a short sale can take 90-180 days to close. Plus the new home has all the features and upgrades that they want.

This perplexed the buyers. The new home Should be More, but in a falling market, I explained, that Bank owned, and new builds pull the market down, since they HAVE to Sell.

A builder is not a builder if he is not building, so, he has to stay competitive in the market. Whether they are making 1% or 20% they have to continue to build or they have to close their doors, and find new work.

Bank owned properties have owners that want to get rid of them asap.

Short sales, and "regular" sales have a major disadvantage since they have to follow the market and are constrained to appraisal issues.

Friday, November 06, 2009

Obama signs home tax credit extension.

It's finally really here. Of course, this is a little old news, as people have been saying that the tax credit was approved fro the past week. Nothing is in stone until the President signs the bill into law.
It would have been nice if this could be extended to ALL home buyers. This would cause the investors back in the market in droves, and snapping up all the investment homes. Could you imagine buying a rental home for 50,000 and getting back 8,000 of your taxes?
Kind of like when everyone was driving HUMMERS because they could write off the full cost of the vehicle in the first year. I am happy with this extension because personally I have four contracts pending with First time home buyers that were probably not going to close by the deadline. It would have been ugly for all those that were counting on the credit if they couldn't get it.

Here are the highlights
  • The stimulus bill will extend the 8,000 dollar tax credit to First time home buyers from the current deadline of November 30. until May 1, 2010. If you are under contract by

  • April 30, then you will qualify as long as you close by July 1, 2010.
  • "MOVE UP" buyers can now qualify for up to a 6,500 dollar tax credit if they are buying a primary home, and have lived in their current home for at least 5 years. (This is really great, although it would be better if it was for all home-buyers regardless of purpose)
  • All U.S citizens that file taxes are eligible
  • The tax credit has no pay back provisions so that you don't pay anything back over time, and if your taxes are less than the credit you will get a refund back.

Here is the FINE PRINT
  • Home-buyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income is less than $125,000.
  • For married couples filing a joint return, the combined income limit is $225,000.
    Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
  • The credit is not available for single taxpayers whose income is greater than $145,000 and married couples with an income that exceeds $245,000.
  • The maximum price of the home can not exceed 800,000. Bummer..

    When you need a great Realtor in Manatee County please give me a call. I am ready to help.
    Short sale expert, REO-Bank owned, and investment properties

    Joe Murphy
    Coldwell Banker Residential Real Estate

Thursday, November 05, 2009

wells fargo short sale approved in 30 days! Sign of things to come?

This was a great day! I just had a short sale come back approved in less than 30 days pending!
I love Wells Fargo. I listed the home preparing the seller for a long painful process that would take 6 months to a year to complete. I advised her to call her lender to let them know she wanted to do a short sale.
The NEXT day, I get a call from the assigned negotiator. That same day, I get a call from the BPO agent! THIS WAS BEFORE I EVER HAD AN OFFER!
Within two weeks I get the unit under contract with a realistic buyer with a 90 day approval deadline.
The seller provids all required documents, and we sent in the contract.

(light at the end of the tunnel, and this was a short tunnel)

I get a call from the negotiator the next week with some questions, and some required changes for the HUD. No big deal.

Then, today, I get the call that the deal is approved, and the WRITTEN approval is on its way.
The only down side is that the deal has to close THIS MONTH. Wow, I called the buyer's agent who was in disbelief. They were expecting a close next year, and hopeful that we would get a response in 90 days.

This is how all short sales should go. Kudos to the Short sale dept at WELLS FARGO.
I hope this is a sign of things to come for 2010!

If you need help with selling a short sale in Manatee County Call me today.
Free advice, and no cost short sale assistance.
Helping buyers and sellers in Manatee county for the past 7 years.
Joe Murphy 941-780-3260
Your Realtor for Life.