Surprise!!

Bidding Wars Catch Buyers Off-Guard Home buyers are unexpectedly finding more competition this spring in landing their dream home. Bidding wars are increasingly being reported in markets across the country, from California to Florida, The Wall Street Journal reports.

"It's a little surprising because we thought bidding wars were done with," Andy Aley, a home shopper in Seattle, told The Wall Street Journal. Aley says he was outbid on a home earlier this year, even though he offered to pay $23,000 above the listing price and also waive inspections and other closing conditions.

Home buyers are frustrated and caught off-guard about the bidding wars re-emerging, real estate professionals report.

"We're writing a record number of offers, but we're not seeing a record number of closings and that's because it's so competitive," Glenn Kelman, chief executive of Redfin Corp., told The Wall Street Journal.

Why are things getting so competitive? Many housing markets are seeing a drastic decrease in the number of homes listed for-sale, leaving home buyers with fewer options and more bidding on the same house. Housing analysts say the shortage in supply is from sellers unwilling to take much less for their home than what they originally paid for it and pulling their homes off the market. Also, a surge in investors has made the market more competitive, as investors snatch up homes in bulk in all-cash deals.

“The bidding wars caused by tight inventory provide the latest evidence that housing demand is starting to pick up after a six-year-long slump,” The Wall Street Journal reports.

Indeed, the National Association of REALOTRS® reported late last week that pending home sales in March reached their highest level in nearly two years and are up 12.8 percent from a year ago.

Source: “Stunned Home Buyers Find the Bidding Wars Are Back,” The Wall Street Journal (April 27, 2012)

Top 5 Things That Can Scare Buyers!

It is vital for sellers to make their home attractive to potential buyers.

When listing your property, consult with your meto determine an accurate and fair price.  If the local competition has a substantially lower listing price, your property will most likely remain on the market.

Curb appeal is crucial, so the facade of your home should be inviting, not alarming. Remove clutter from the yard, spruce up the landscaping and freshen up the entryway with new paint and exterior lighting. Make sure the walkway to the home is not hazardous; any cracks in the steps, pavement or concrete should be repaired.

Also, proper exterior lighting is essential, as some showings may be at night or dusk.

Don't let the odor of smoke or pets deter buyers. If necessary, hire professional carpet cleaners before your first open house and employ scented candles or air purifiers. Buyers will be anxious to exit, rather than stay and tour a home that has offensive odors.

As buyers explore your home they shouldn't have to visualize the space without clutter. Excess furniture, trinkets, family pictures, toys and other items tend to detract from the existing space and totally obscure any attributes of the home. Remember, everyone appreciates a clean house. Stains, fingerprints, dust and laundry will likely send buyers to the next house on their list.

New Listings VS Sold Listings

This chart is something I look at every day.  It’s been such a challenge to show properties to qualified buyers lately because the “New Listing” number has been LESS (sometimes significantly) than the “Changed to Sold” number.  Not only has the inventory of Active Listings been low, but dwindling because more have been selling than have been made available.  Only in the past week has the New Listing number been creeping past the Closed.  I take that as a healthy sign.  AND… I see wonderful opportunities for sellers to bring their properties to market NOW. 

Buyers?  Prices and interest rates are still low.  GET QUALIFIED and get out there shopping.  Good deals are still happening even as the market is making these changes.

How Can I Help You Today?  Call me for a free consultation.

Video full of current Real Estate GOOD news!

Market update from Century 21--Good News!

Burning Issues: high-end fireplaces, pellet stoves and outdoor hearths.

 

Whether you live in a chic modern residence or a rustic mountain retreat, a fireplace can truly make a statement. And the options are nearly limitless, from the fuel to the materials. Dan Cusack, President of Cusack Builders, Inc. and a New Jersey State Registered Home Builder, specializes in building custom homes. In his view, the sky is the limit when it comes to fireplaces. Dan advises, “The only right way to do a fireplace is to have a professional stonemason design it. Fireplaces have become functional works of art, resulting from a collaboration between the stonemason and the homeowner to reflect the owner’s personal taste and style.”

Once designed, material choices range from natural, hand-chiseled stone, to a timber wood slab that may need to be carved to the proper angles. Often, especially in outdoor spaces, material native to the area, such as local stone or wood, are popular. Whether placed inside or out, fireplaces should compliment the property and structure.

Pellet stoves, most popular in the Pacific Northwest and upper Midwest, can be purchased from authorized dealers and have a range of fuel options such as grain or wood. The trim ranges from antique copper to stainless steel. Important to note however, is that pellet stoves do need frequent monitoring to sustain the fuel source.

Whether you're looking for a grand statement, a cozy accent or strictly a reliable heat alternative, the possibilities are luxuriously infinite!

Shortage of Homes on the Market?

In the past few years, it's been more difficult to get home loans, distressed properties dominated the market, sellers had an unrealistic idea of property values, and so on.  The Real Estate Market has struggled to right itself amid those challenges and others.  Today, there good things happening in regards to loans in that it's a bit easier to acquire a mortgage loan, EVEN in some cases, 100% loans are available (for our Vets).  So... with new opportunities, come new challenges and now we're seeing a low inventory of homes on the market as the buyers are showing up again!  If you've been waiting for a good time to list your home, perhaps now is the time?  If you are shopping for a home, prices are still good, but expect to compete with other offers for the homes that ARE on the market. 

What are you waiting for?  Call me today for your own consultation!  Are you wanting to move-up, down-size, invest or rent?  :)  I can help you!

Getting a mortgage after foreclosure

Buying a home is a challenging goal for most hopeful homeowners. But for those who have experienced a bankruptcy, foreclosure or short sale, the hurdles are even higher.

Still, it's not impossible to buy a home after financial difficulties, says Dan Keller, a mortgage banker with Hometown Lending in Everett, Wash. In fact, Keller says, people who have cleaned up their credit and are otherwise qualified to get a mortgage can buy a home as soon as they have outlasted a prescribed waiting period after the bankruptcy, foreclosure or short sale.

Wait a whileThe waiting period can last one to seven years, says Kirk Chivas, chief operating officer at First Commerce Financial in Wixom, Mich. The one-year requirement applies to buyers who complete a Chapter 13 bankruptcy, have a spotless subsequent credit history and want to get a new loan insured by the Federal Housing Administration or guaranteed by the U.S. Department of Veterans Affairs. The seven-year requirement applies to buyers who experienced a foreclosure and want to get a new conventional loan that can be sold to Fannie Mae or Freddie Mac.

In between are a number of two-, three- and four-year timelines based on similar criteria and other factors such as whether the buyer's previous mortgage was current at the time of a short sale or the size of the buyer's new down payment as a percentage of the home's purchase price.

Generally speaking, the waiting periods after a bankruptcy tend to be more black and white while the waits after a foreclosure or short sale have more gray areas, Keller says. And in some cases, a waiting period can be waived or shortened if the buyer's bankruptcy, foreclosure or short sale was due to extenuating circumstances or a hardship beyond his control.
Technically, it is possible for a buyer whose prior loan wasn't in default at the time of a short sale to get a new FHA-insured loan with no waiting period, Chivas says. But he adds that he's never encountered anyone in that situation.

Clean credit
Buyers must have very clean or perfect credit histories before they can buy homes after bankruptcy, foreclosure or short sale. A slip-up as small as one late credit card payment could disqualify a post-bankruptcy buyer from some loan programs, even if the waiting period has been completed, Keller says.

"Bankruptcy is a serious word," he says. "If you do it, it's a get-out-jail-free card. But once you get out of bankruptcy, you need to be flawless in your credit. Don't even drop a gum wrapper."

Bing: Perfect credit scoreCredit dings can be difficult to sort out for buyers who experienced a loan modification or short sale, in part because, as Chivas says, there's "no consistency" in how lenders report those events to the credit bureaus. Buyers should review their credit reports and correct any errors or clarify the circumstances of adverse items.

Stable employment can be a plus, too, Keller says, noting that some loan programs are more lenient than others. "If there was a gap," he says, "it needs to be explained."

Consult a loan proGiven these complexities, buyers are advised to consult a loan officer or mortgage broker early on for advice that applies to their situation.

"They may think they're fine, but if they're not talking to a professional, their hopes can get dashed or crushed," Chivas says. "That's why you want to speak to someone as soon as you start dreaming it up in your head" that you want to buy a home after a bankruptcy, foreclosure or short sale.