Real Estate Information Archive

The Current Market Is Fragile

I just read an article that talked about the current state of the real estate market.  It appears the experts believe we have hit the bottom of the market crash and home prices have shown to be increasing.  The mortgage rates are still at historic lows and the tax credit for first time home buyers appears to be doing it’s job. 

There are still many waiting and hoping that the tax credit will be extended and maybe even increased.  Others are hoping that the tax credit will be offered to all home buyers and not just ‘first time’ home buyers.  The wait to see which bills pass congress will be filled with anxiety. 

There is also the matter of the ARMS loans coming due and the foreclosures that may follow.  The increase in foreclosures could potentially cause home prices to fall again. 

Become informed of the current market and contact a professional before making any real estate decisions.  With the fragility of the market...timing is everything.

Brought To You By Randy Charlton Of Century 21 Home Realtors.

Current Mortgage Rates As Of Today: 30 Year Fixed Rate Is 5.00%. 

Brought To You By Randy Charlton Of Century 21 Home Realtors

Confusing prequalification with preapproval can mean disappointment for both a home seller and a buyer. Real estate experts say it's smart to urge buyers to become preapproved by their lender – not just prequalified.

For buyers to obtain a bona fide preapproval, they must submit a loan application with the necessary documentation and fee. After the lender verifies and analyzes the application, it will notify the applicant of how much money he can afford to borrow. Armed with that information, the buyer can confidently go home shopping.

Prequalifications are simply an estimate of what a buyer can afford. A buyer who assumes that this estimate is accurate and chooses a home based on the information may, in fact, be denied a loan when he actually applies. That results in a situation that wastes his time and can put a seller in an a bad position if they've already turned away a qualified buyer. And, of course, it wastes the real estate practitioner's time as well.

Source: Kiplinger’s Personal Finance Magazine (08/01/07)

Brought to you by Randy Charlton of Century 21 Home Realtors.

One question on every home sellers mind is ... How can I attract buyers to my home? ... That is a great question especially in today's real estate market.  In some areas of the Inland Empire the competition is great - so what can you do to set your self apart and make your home a little more attractive to that home buyer?  Below are 6 incentives home sellers may consider.

1. Reduce the price. "The price is something that is a common currency — it appeals to everybody," says Gene Rivers, who owns four Keller Williams offices in Florida.

2. Pay points. One point is 1 percent of the loan amount, charged as prepaid interest. Sellers can pay these points on behalf of the buyer, so for the first year or two, the buyer has a lower mortgage payment.

3. Assist with the down payment. First-time buyers without enough money for a down payment appreciate this kind of assistance.

4. Pay closing costs. Closing costs generally add up to somewhere between 2 percent and 7 percent of the loan value, according to Freddie Mac. Buyers who are stretching to make a down payment will be attracted to this type of help.

5. Add a home warranty. A residential service contract is some insurance that the buyer won’t encounter high repair costs in the first year or two of home ownership.

6. Pay home owner association fees or pool maintenance. Paying these kinds of predictable maintenance costs at the beginning can be a nice welcome to the buyer when money undoubtedly will be tight for them.

Brought to you by Randy Charlton of Century 21 Home Realtors.