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  • Top 5 Real Estate Headlines in the 1st Half of 2011

    12:44 pm on July 5, 2011 | Comments:0
    Tags: , , , , sellers   Filed under: Buyer Info, Federal Goverment, Foreclosure, mortgage, Seller Info

    by The KCM Crew on July 5, 2011

    We have reached the midway point of the year. Today, we want to look back over the first six months and give you what we believe were the five items that have had the biggest impact on the real estate industry so far this year.

    The Government Wants Out of the Mortgage Business

    From the original outline of the Dodd-Frank regulations to the talk of closing Fannie Mae and Freddie Mac to the proposed Quality Residential Mortgage (QRM) guidelines, the government has made it very clear that they want to dramatically limit their involvement in the mortgage industry. What will come of this? Will private industry step up and fill the void created? What will be the increased cost to the consumer? Only time will tell.

    Despite Early Headlines, Sales are Increasing

    Headlines earlier in the year announced the total collapse of the housing market. To those in the know, it was obvious that comparing sales numbers in the first four months of this year to the same period last year made absolutely no sense. The largest tax credit ever given to home buyers expired on April 30, 2010. Large numbers of transactions were dragged forward last year so buyers could take advantage of the credit. Pending home sales (transactions going into contract) on the other hand have done quite nicely and many institutions (ex. Fannie Mae, Freddie Mac, NAR and Moody’s Analytics) are projecting good sales numbers throughout the rest of the year.

    Amid Warnings of a ‘Double-Dip’, Prices Began to Stabilize

    Prices continued to retreat for the first few months of the year and brought the bears out. Some called for another major fall in prices (15-20%) and almost all recalculated their projections to show continued depreciation. Just as these new projections were made available, some pricing indices announced that values actually increased (though by a rather minimal percentage). Again, those with the best understanding of the market were quick to explain…

    Foreclosures Were Delayed Longer Than Originally Projected

    Distressed properties (foreclosures and short sales) have a major impact on the values of all properties in an area. Because of paperwork challenges, the flow of these properties to the market was virtually shut off. At the beginning of the year, most experts believed the banks would correct these challenges by the end of the first quarter. That didn’t happen and therefore many of these properties were delayed coming to the market. This is a major reason why prices seemed to recover: there were fewer discounted properties available for sale. Most now believe that the banks are within 60-90 days of releasing this inventory and that prices will again begin to soften.

    Main Stream Media Begins to Announce “Now Is the Time to Buy!”

    With prices and interest rates at historic lows and the chance that mortgages will become more costly as the private sector steps in, many in the main stream media are announcing that buying a home now makes sense. In the last 45 days, the Wall Street Journal, Forbes Magazine, National Public Radio (NPR) and CBS Money Watch have all ran articles calling for the readership to consider buying now!

    Tomorrow, we will share what we believe will be the top 5 stories in the second half of 2011.


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  • A Window of Opportunity for House Sellers

    1:38 pm on June 21, 2011 | Comments:0
    Tags: , , sellers   Filed under: Foreclosure, pricing, Seller Info

    by The KCM Crew on June 21, 2011

    There has been much confusion as to where housing prices are headed. We have actually blogged on the issue recently. Today, we want to give our opinion on this subject for the short term. We believe sellers have a window of opportunity for the next 90-120 days in which to sell their homes for maximum price. We believe there will be increased downward pressure on home prices later this year and the first half of 2012.

    Why renewed downward pressure?

    Any item’s price is determined by ‘supply and demand’. In many parts of the country existing housing inventory is already high and actually increasing. In addition, an inventory of distressed properties (foreclosures and short sales) will be coming to market later this year. This inventory has been delayed for the last several months because of faulty paperwork by the banks when they originally attempted foreclosure proceedings on these homes.

    Celia Chen, of Moody’s Analytics explains:

    “Foreclosures are weighing on the outlook for U.S. house prices, and the slow resolution of issues surrounding the so-called robo-signing scandal is keeping distressed homes off the market”.

    The New York Times also recently reported on this issue. They looked at the delays in certain states. As an example, this is what they found in New York:

    “Last September, before the documentation crisis, nearly 1,500 New Yorkers lost their houses as a result of foreclosure, according to LPS. The average over the last six months: 286. That is far lower than at any point since the recession began.”

    Banks are now correcting these errors.

    There is evidence that the banks are getting their documentation in order and about to again increase their foreclosure repossessions. Housing Wirereported:

    “Since major lenders delayed foreclosures to fix a broken process late last year, the amount of filings declined, but in May signs emerged the effect might be wearing off.”

    They went on to quote RealtyTrac CEO James Saccacio:

    “…lenders are somewhat unevenly pushing batches of bad loans through foreclosure as they overhaul their paperwork and documentation procedures and as they determine that some local markets are able to absorb more foreclosure inventory…Foreclosure processing delays continue to mask the true face of the foreclosure situation, although there were some clues in the May numbers of what lies behind that mask.”

    What will this mean to home prices?

    As this inventory comes to market, it will impact prices in two ways:

    1. It will provide discounted competition for buyers
    2. It will impact the appraisal values of all homes in the area

    Again, we quote Celia Chen:

    “It is quite possible that house prices will pick up slightly in the second or third quarter of this year, as foreclosure sales remain depressed while nondistress sales pick up…By the fourth quarter of this year, however, the distress share will rise, sending the house price index back down…

    House prices will founder until early next year and start rising in earnest at the end of 2012.”

    Bottom Line

    There is a window of opportunity currently which sellers should take advantage of. Waiting until later this year or until next year will not guarantee a higher sales price. If anything, it probably guarantees the exact opposite.

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  • Your Retirement Home: Is Now the Time to Buy?

    11:03 am on April 25, 2011 | Comments:0
    Tags: , , , , sellers   Filed under: Buyer Info, Consumer news and advice, Foreclosure, Retirement, Seller Info, Supply and Demand, The Housing Market

    by The KCM Crew on April 25, 2011

    The last several years have wreaked havoc on many people’s plans for retirement. They have seen their nest egg dwindle and in some cases disappear. Many have pushed back the date they will stop working and some have stopped even thinking about what part of the country to which they plan to relocate. For some however, this may be the time to again begin putting their retirement plan together.

    There is a tremendous opportunity right now to buy a home at a sensational price in certain traditional retirement destinations. Couple that with the fact that in other parts of the country the housing market is still experiencing falling prices and we may be looking at a perfect window of opportunity to buy your retirement home. (More …)

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  • Florida’s Existing Home, Condo Sales Up in March 2011

    9:50 am on April 21, 2011 | Comments:0
    Tags: , Existing homes sales March 2011, , , , sellers,   Filed under: Agent information, Buyer Info, Consumer news and advice, FHA, Florida Association of Realtors, Seller Info, Statistics, The Housing Market

    ORLANDO, Fla., April 20, 2011 – Florida’s existing home and existing condo sales rose in March, according to the latest housing data released by Florida Realtors®. Existing home sales increased 12 percent last month with a total of 18,522 homes sold statewide compared to 16,540 homes sold in March 2010, according to Florida Realtors. Statewide sales of existing condos last month rose 24 percent compared to the year-ago sales figure.

    Seventeen of Florida’s metropolitan statistical areas (MSAs) reported higher existing home and existing condo sales in March; 17 MSAs also had higher condo sales. It’s the fourth consecutive month that Florida Realtors has reported higher year-over-year existing home and existing condo sales statewide. (More …)

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  • National Association of Realtors® Profile of Home Buyers and Sellers 2010

    12:40 pm on April 5, 2011 | Comments:0
    Tags: , , , Profile, sellers,   Filed under: Agent information, Buyer Info, Consumer news and advice, NAR, National Association of Realtors, Seller Info

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  • If Your Goal Is to Buy Low, Buy Now!

    8:48 am on March 1, 2011 | Comments:0
    Tags: , , sellers   Filed under: Buyer Info, pricing, Seller Info

    by The KCM Crew on March 1, 2011

    There is a very famous saying which asserts “Sell High, Buy Low”. It is obviously great advice no matter what the investment. Below is a graph showing the cycle of investments. It shows the points of maximum risk and maximum opportunity when purchasing. We want to sell high (point of maximum risk) and buy low (point of maximum opportunity).

    The challenge is how to determine when we have hit bottom if you are a purchaser. The only time you can guarantee a bottom is after you pass it. (More …)

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  • Weak Home Sales Numbers Don’t Tell Whole Story, Real Estate Center Economist Says

    9:06 am on August 26, 2010 | Comments:0
    Tags: , , , , , , , sellers, ,   Filed under: Agent information, Credit, economy, Seller Info, The Economy

    RISMEDIA, August 26, 2010—Home sales statistics are likely to paint a picture of a weakening market through the end of 2010 and the first half of 2011. While it’s tempting to attribute the bleak numbers to a deteriorating housing market, an economist with the Real Estate Center at Texas A&M University said that doesn’t tell the whole story.

    “The year-over-year decline in existing home sales will be the result of comparing months when there was no tax credit with those from a year earlier, when the tax credit was artificially increasing sales,” said Dr. Mark Dotzour, the Center’s chief economist. (More …)

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  • U.S. Quarter-Over-Quarter Home Price Gains Reach 7.9%, According to Clear Capital

    12:32 pm on August 12, 2010 | Comments:0
    Tags: , , sellers,   Filed under: Buyer Info, Consumer news and advice, Seller Info, Statistics

    RISMEDIA, August 12, 2010—Clear Capital, a premium provider of data and solutions for real estate asset valuation, investment and risk assessment released its Home Data Index (HDI) Market Report. Patent pending rolling quarter technology significantly reduces the multi-month lag time associated with other indices to help investors, loan servicers and individual buyers and sellers make more informed, timely and profitable decisions.

    “Home prices continue to show positive growth from the first quarter of the year,” said Dr. Alex Villacorta, senior statistician, Clear Capital. “This trend indicates that the initial upward momentum created by the tax credit expiration is being sustained.” (More …)

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  • Supply Goes Up, Prices Come Down. It’s that Simple

    8:50 am on August 5, 2010 | Comments:0
    Tags: , , , , sellers   Filed under: Buyer Info, Consumer news and advice, pricing, Seller Info, The Housing Market

    by The KCM Crew on August 3, 2010

    The big question in real estate is what will happen with home prices over the next few months. The experts have already weighed-in predicting prices will probably take another dip down. The reasoning? Put simply, the inventory of homes on the market is greater than the demand for housing.

    Demand will remain stable at best. No study or report is predicting a dramatic increase in demand over previous estimates. PMI, Inc. is actually cutting their forecast back. In their most recent issue of The Home and Mortgage Market Review they announced:

    “We have lowered our projection of home sales for 2010 in response to the larger-than-expected decline in sales in May.” (More …)

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  • Real Estate Incentives Out of Style among Price-Focused Shoppers

    8:51 am on August 3, 2010 | Comments:0
    Tags: , , , , sellers, sellers information   Filed under: Agent advice, Best Practices, pricing, Seller Info

    By Jim Buchtaic

    RISMEDIA, July 30, 2010—(MCT)—Government cash didn’t help John Foley and Cindy Case sell their Minneapolis house before the federal home buyer’s tax credit expired at the end of April, so the couple decided to take matters into their own hands.

    Sales without incentives:
    In lieu of attention-grabbing incentives, here’s what works best today:
    -Price it right. Buyers have access to lots of data, and they’ll know if your house is too expensive.
    -Offer to pay some of the buyer’s closing costs.
    -Maximize exposure. Saturate the Internet and all forms of social media with your listing.
    -Use great photos, not good ones. Make sure your house makes a great first impression.
    -Make it sing. Listing information must be complete and well-written. (More …)

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