Tell me what you know about the housing market…are things getting better? Worse? The same?  If you don’t know, who does? 

We read about Fannie and Freddie coming to the rescue but we’re still rescuing both of them…with Freddie asking for another $10.6 billion the other day.  Sure Freddie, no problem, where should we send the check…and…let us know when you need some more.  We’ll be sending a check to Fannie too.

Perhaps you’ve read some of what I’ve been reading lately…that over 4.6 million homeowners are more than 60 days behind on their mtges.  Oh no, wait, another source says the number is over 6 million.  Maybe it’s worse than we’ve been told…think?  Most of these mortgages are backed by these two giant bunglers…what does that mean…we’ll need to write more checks?  But hey, I’m running short myself…are you?

And get this, in July, a new program will be kicked off by these two - to help homeowners who have to give up their homes in a short-sale, come back to the table in two years and buy again.  Huh…What?  Is anyone checking the checkbook?

Funny story in MoneyNews.com…a big guy at JP Morgan Chase, David Lowman, when at a congressional hearing not long ago, says to the question - who could mortgage borrowers turn to if they felt his bank’s employees were not helping them hold on to their homes - “Come to me!”  Well, 50 borrowers came forward from the audience, at this invitation, presenting him with a document alleging his bank reneged on a pledge to help struggling homeowners.  So what did our hero do?  “He ran like a dog with its tail between its legs,” said Bruce Marks of the Neighborhood Assistance Corporation of America (NACA), which helps homeowners avoid foreclosure.  Didja know about this organization?  I didn’t.  If you know someone who should know about them, please pass this along!

Not all banks are equal though and some are loosening up on the lending side.  The majority are still pretty tight though.  The Fed Reserve’s senior loan officer survey recently showed most banks kept credit tight in the first quarter and residential mortgages saw continued tightening in terms.  This according to an article by Sudeep Reddy in the WSJ.

Now you need a minimum credit score of 640 and 5% down for conventional or 3.5% down for FHA mortgage qualification.  Terms are getting tougher so if you’re in the market to buy a home, get busy before terms get even tougher and rates (rates that are still terrific today) go up.  You do know that rates will definitely go up…?

Where the short-sales and foreclosures will take home prices is still a guess but if you’re putting money on it, I’d go with continued price drops and amazing deals for the next 18 months or so.  If you can buy…buy now!

If you need cash to fix up a short-sale or foreclosure purchase, we have sources and programs that you can use to get it done…roofing, siding, windows, floors, even new appliances!  So call us today and we’ll fill you in.  Take advantage of the greatest buyer’s market in the history of Real Estate!

The amount of inventory leading to outstanding deals is enormous. 

We’ll e-mail a list to you today.  Just tell us where and what you’re looking for.

If you need help selling or buying, call us for more info today!

Can’t hurt to talk ‘eh?

Ed

http://www.dailywealth.com/1338/Another-Way-to-Profit-from-the-Coming-Plague-of-Busted-Banks

Have you ever seen ads for pricing your home…”Free service, just sign up and receive your free home analysis.”  Did you wonder what the catch was…whether you’d really get the free analysis?

Well, most of these sites direct your inquiry to an agent who has purchased a zip code, city or county, as an ‘exclusive’ arrangement for obtaining leads.  That’s right - the e-mail or call you’ll get will be from the agent who made this deal with the site owner.  No problem…if you’re OK with that but if you thought you we’re not going to be on an agent’s radar, not so good?

Most any Broker will give you a “CMA,” (comparative market analysis) for your home.  Some will require you let them visit your home and they’ll come armed with their ’sign here’ listing agreement.  Others will e-mail it to you and follow up to try to get your listing.  Hardly ever will you get an e-mail with the info you requested and no strings attached.  Now the home visit is important as whatever amenities you might have could add to the value…things like granite counter tops, ceramic baths, new appliances, etc.

I remember years ago, working with one of these sites, and the surprise and alarm the homeowners displayed when I called. (A very watered-down description of their reaction.)  I cancelled the service as I felt it violated the homeowner’s goals.

Many of these sites host tutoring seminars aimed at teaching the agents how to sneak up on these unaware home owners.  Clever stuff, this?

Here’s what we do here but before I get to that, here’s what you should know about this game:  Realtors don’t get paid to do these evaluations…unless you’re willing to pay them?  Realtors often do a lot of work for nothing and they, much like yourself, don’t like to work for nothing…right?  Realtors are concerned that they’ll do this work for you and find you’re really not ready to sell but were just curious about what your home might sell for…if you were going to sell it.  Or, they’re concerned that they will give you the data you need and you’ll then call some other Realtor to sell your home.  Could happen, right?  So, what’s the answer, how do you get what you want without paying for it or being hassled to list your home with a Realtor you don’t even know?

Simple solution, call us…no obligation on your part…straight forward honest ‘CMA’ will be done for you.  And, when we visit your home, we do not have anything for you to sign.  You’ll get the info you asked for within 24 hours.  We feel that if we treat people with dignity and respect, providing this service without a ‘hitch,’ when they’re ready to sell they’ll get back to us.  So, fear not, no funny stuff, just good and accurate service you can depend on!

So if you’re considering the sale of your home, check it out ASAP…most industry sources feel that a lot more foreclosures will come in the next few months, putting  additional downward pressure on home prices.  Also, in this part of the country, home sales are the highest between now and July.  Again, check it out…can’t hurt to be informed?

Buyers have only two weeks to identify the home they want and get a purchase offer in place, in order to get the govt. tax break.  Why pass on a $6,500 (buyers who have not bought a home in the last five years) to $8,000 check or tax credit from the govt.?  This is big…get your share.  You have to have a signed deal before the end of this month and a close date by the end of June.  The clock is ticking and we know we can find the home you want within the next two weeks.  Give us a call and take advantage of our ‘cooperative search’ process, whereby you also get extra cash when you close on your new home.

Any stories you care to share with our readers?  We’d love to hear from you.  Just click on the title of this post and a comment box will open.

Ed (651-770-5000)

Picture this…main watering hole for the agents of  a large Brokerage office…”Happy Hour!”   The agents are having a drink and sharing their weekly  war stories.  Let’s listen in:

“So Freddie, didn’t I hear you nailed a ‘hogger’ this week?”  “Yeah baby, you heard right…I’m at the house, a $475,000 listing, putting up a rider on the sign that says ‘Great N’Hood,’ and a couple drives up and wants to see it.  Ms. Homeowner was just leaving to get groceries and told me to go ahead and show it, so I did.  They liked it and said to write up an offer.  I showed the offer to the sellers and they went with it.  So…I didn’t have to split the commission with another agent…got the whole 6%, $28,500 for myself…hogged that one!”

See, in a normal situation, the listing agent lists the house at 6% and when a different agent brings a buyer, the selling agent gets 2.7% ($12,825) and the listing agent gets 3.3% ($15,675). The listing agent is the one that covers the marketing expense of the house.  Only makes sense the listing agent should get more…to offset expenses , right? 

 The listing agent probably took pictures (no cost?), made brochures ($15. ?), provided copies of the disclosure document ($5.?), had a yard sign installed ($40.?), spent a couple hours working with the home sellers, before the listing was secured, showed the home a few times (4 more hours?), took calls from other agents who showed the home (two more total hours?), wrote the offer (another hour and a half?), and will attend the closing (another 2 hours?).  So, a total of 11.5 hours.  But I usually find an agent will spend about 20 hours per deal.  So lets say the agent worked 20 man hours and had total expenses of $60.  Landing the hogger means he made $28,500 - $60 = $28,440 divided by 20 man hours = $1,422 per hour.  Yeah baby, hog it up!

Most buyers don’t understand this whole process.  They’ll sometimes be working with their agent but attend an open house or call to see one from the info on a sign and the listing agent shows them the house, writes the deal and gets a “hogger” on it.  The agent the buyers has been working with, sometimes for months, gets absolutely nothing and the agent that wrote the deal…spent maybe, a couple hours with the buyers, gets the big reward.  Bad deal, this?

Agents are supposed to not only ask a potential buyer if they have an agent, they’re suipposed to defer to the other agent, if there is one.  Then, if there is no other agent, the listing agent is required to disclose to the potential buyers, on an “Agency” document, how the process works…and…have the buyers sign it.  But do they?  The Hoggers are in waiting…c’mon uninformed buyers…line up!

When you start working with an agent, if you’re happy with them, have them set up all showings and situations for you.  That’s the only way they can get paid.  Don’t hand over the pay to some agent you don’t even know, who hasn’t done a thing for you.  And, if you do look at a home while in the search process, if the showing agent does not ask you if you are represented by another agent, let your agent know about it…the showing agent is either derelict in their procedure or unethical or plain stupid?  Would you want to reward someone like that?

One more thing (I’ll bet many readers are wondering about this), If a listing agent was happy with the normal way home sales pay out…and…an unrepresented buyer comes along…and…the offer is less than the sellers want…why wouldn’t the listing agent offer up all or part of the 2.7% he wouldn’t have to pay out to another agent, to help his sellers?  We do here…we do even more…check us out?

Beware…the “Hogger” may come your way?

Next: How to get the best deal when qualifying for a mortgage!

Ed