Archive for October, 2008
Short Sighted Real Estate Practice Will Ruin This Market
October 14th, 2008 categories: opinion
Our local MLS (the online housing directory) is a service provided to Realtors and home buyers to help them see what homes are for sale and what homes are NOT for sale. When a home is no longer “for sale” yet still has an active status in front of it, this service is no longer a service but a hastle since you homes are not accurate in their description.
This is exactly what is taking place in our current real estate market and what is causing much of the housing issues. Homes classified as SHORT SALES are homes that a seller is seeking to sell for less than they owe the mortgage holder. To do this, they many times need a contract first to convince the mortgage holder to accept less than it’s value. The problem is that many Realtors are recieving offers on properties that home owner agrees to, yet leaves the MLS status as ACTIVE in the computer. Under a traditional sale the home would be considered UNDER CONTRACT so that potential buyers do not waste their time viewing the home while it is not available.
For example; Jan and Will have the money to purchase a home and want to be in to one in a couple months. They begin their home search online but find that many of the homes are under a SHORT SALE status but still appear available. They speak with their Realtor and plan a trip to visit 5 homes on a Saturday. After viewing the homes the come back and decide that they want to purchase home #3 which is a short sale. They send in a contract and begin the waiting process. They understand that the bank will take some time to respond so they hold their breath. After a month of waiting they get a call from their Realtor who tells them that their home has been beat out by another offer that came in. They wonder what happened only to find out that the listing agent never stopped marketing the property for sale and now they have wasted a month and only have 1 month left to find a home.
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Are We Headed Towards Another Depression ?!$?%?
October 10th, 2008 categories: opinion
What an incredible day we are living in…
Within minutes of the markets opening this morning we had already taken another 700 point hit! Inside we all wrestle with what to do and our hearts are filled with fear. To help with your perspective I wanted to share with you an article by a very smart guy who understands what is going on a little better than the rest. This article is from Dr. Richard Marston from the Wharton School of Business.
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Let History Not Repeat Itself
October 6th, 2008 categories: Real Estate News, opinion
This past week our country made history. We saw one the largest decreases in stock value we have in years and our government signed a 700 Billion Dollar Bailout plan to keep our economy from sinking any further.
I spoke to many lenders, Realtors, and spectators during this time and ultimately came to the conclusion that other than the government not too many people knew the implications of this bill. You begin to get the feeling that you are on a plane and hear a loud noise. Everyone knows that something bad is happening but all you are allowed to know is that you can’t leave your seat and the stewardess is going to bring you a complimentary Pepsi while acting like all will be fine.
To assist with all of this co-motion the elections are taking place with both sides magnifying the issues and acting as if these issue would have never happened under their guidance. The truth is, these issues are bigger than that last 8 years of George Bush. Don’t get me wrong, this current administration has way overspent. Nevertheless, it was the Clinton administration that re-emphasized the sub-prime lending market to get low income families in to homes they could not afford.
I remind us of this because the finger pointing is out of control. Both parties have created this issue and we as the American people have created this issue. WE HAVE OVERSPENT. Government doesn’t force us to run up credit card bills or buy homes. Our greed has gotten the best of us and now we need to fix it no matter who takes office. Remember, government if supposed to be FOR THE PEOPLE.
There have been steps in that direction this year. It is much tougher to get a loan now than it has been in the past. This makes my job more difficult but overall creates a stronger economy. This is a time for American maturity. This is a time to take responsibility for our debt. Maybe you don’t need a bigger home. If you can afford your mortgage payments- PAY THEM. Stop walking away and making everyone else clean up your mess. For those who walk away from mortgage payments they can afford, there should be steep penalties and restrictions on them purchasing again.
We can get out of this. The foundation of our economy is strong (no matter what they say), and the sky is not falling.
Stop living in fear of the market. And turn off the news! If more people do this, the market will change. I guarantee it.
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Appraisers Are Trump
October 2nd, 2008 categories: Real Estate News, opinion
The real estate game has changed.
- What you can get a buyer to pay for your home doesn’t matter.
- How much money you need to go to settlement with doesn’t matter.
- Many of your homes details don’t matter.
When selling your home, the price you can get should be based upon what YOU think it is worth. However, buyers will only pay what they feel THEY think it is worth. The delima is that the bank will only give a loan for what THE APPRAISER thinks it is worth.
The bank figures out how much it really is worth by having an appraisal done on the property. They view your homes size and features in comparison to comparable properties in the local area that have recently sold to try to figure out your homes value. This is becoming more of an issue in the current market conditions since prices have declined.
How will prices ever increase in value if appraisals come in a little higher than previous sales? What comparable properties are appraisers to use if the only homes that compare to your home are foreclosures and short sales?
These are some of the issues we are currently dealing with in our market. It is very important in this market to be aware of these issues when pricing your home. Features do matter, square footage and acreage matters, but most importantly not overpricing your home matters since you will not be getting rid of your home for more than the bank is willing to lend which depends on the appraisal value.
Photo from qui si at flickr.
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Brambleton and Broadlands Home Sales Stats
October 1st, 2008 categories: Market Statistics
Southern Ashburn, Brambleton and Broadlands, home sales stats also continued strong in September. It appears that October may be even stronger.
Ashburn Village, Farm, and Belmont Country Club Home Sale Stats
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Ashburn Village, Farm, and Belmont Country Club Home Sale Stats
October 1st, 2008 categories: Market Statistics
Home sales in 20147, northern Ashburn, continued strong through August.
We will continue to see how this plays out with the current situation with the economy, loans, etc…. Nevertheless, while things are good, it is still a great time to purchase.
Brambleton and Broadlands Home Sales Stats
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