Sellers Turn to Real Estate Pros

From the desk of Ruth Wilkey 

 Unrepresented sellers make up just 11 percent of the market, down from 13 percent in 2009, according to the 2010 National Association of REALTORS® Profile of Home Buyers and Sellers.

With today’s more complex transactions--such as with short sales and foreclosures and frequent changes in mortgage lending--more sellers are finding comfort in the help of real estate professionals to guide them through the process.

FSBOs once were lured to try to sell themselves because they thought they could save on commission fees, but now sellers are realizing that if they don’t use an agent, it’ll likely cost them more in the long run, experts say.

"Selling by owner does not guarantee the seller will put 5 [percent] to 6 percent more in his or her pocket in trade for doing all the work and taking on potentially costly liabilities,” Margaret Woda, associate broker with Long & Foster in Crofton, Md., told The Washington Times. “On the contrary, prospective FSBO buyers have their eyes on that 5 percent to 6 percent as well. It's more likely the buyer will win this negotiation in a buyer's market with a huge price reduction--probably even larger than the saved commission."

Some FSBO sellers also often make the mistake of listing their home at a higher price than the market warrants. But even if they do find a buyer for that price, unless it’s a cash purchase, the home has to be appraised and many deals can then fall apart
 
Give me a call and put me to work for you today! Buy now before Rates Go Up! Serving Utah!

Mortgage Rates Move Higher

From the desk of Ruth Wilkey...

Inflation concerns and a higher than expected January budget deficit caused mortgage rates to move a little higher during the week. Solid demand for this week's longer-term Treasury auctions helped prevent a larger increase in mortgage rates. Investors hoping for inflation relief from the Fed were disappointed. In testimony on Wednesday, Fed Chief Bernanke suggested that Fed officials view overall inflation levels as low and have no near-term plans to tighten monetary policy to fight rising inflation.


Over recent months, mortgage rates have moved higher due to investor concerns that future inflation will rise significantly. Inflation can come from different sources. A desirable source is inflation which results from stronger economic growth, which leads to more jobs and higher demand for goods. On the other hand, inflation which results from large budget deficits comes with very few benefits. Both are pressuring mortgage rates higher right now, but at least with an improving economy more people are able to buy homes.

On Friday, the Treasury released its recommendations for reforming Fannie Mae and Freddie Mac. According to Treasury Secretary Geithner, this report is a starting point for a national debate. The central question is what role the government should have in the mortgage market. Geithner stressed that changes will take place very gradually over a period of years to avoid disruptions to the housing market.

Give me a call and put me to work for you today! Buy now before Rates Go Up! Serving Utah!

Daily Real Estate News

January 31st, 2011

10 Cities Where Home Prices Will Rise in 2011

While home prices are expected to continue to fall in most metro areas, Clear Capital’s Home Data Index report says a few cities are already on the rebound and showing some gains in home values.

“There really is this segmentation of these markets occurring where the one-size-fits-all national level numbers to represent all numbers really isn’t valid anymore,” Alex Villacorta, senior statistician at Clear Capital, told MSNBC. “Overall we’re seeing prices start to stabilize going into 2011, but unfortunately some of those markets will stabilize in the downward direction where others will see a sustained recovery.”

Clear Capital takes into account unemployment rates, foreclosure rates, and real estate inventory in its index.

The following is a list of 10 cities that Clear Capital expects will rise in property value in 2011:

1. Washington, D.C.: 6.5 percent price increase
2. Houston: 3.6 percent price increase
3. Honolulu: 3.4 percent price increase
4. Memphis, Tenn.: 3.2 percent price increase
5. Columbus, Ohio: 2.1 percent price increase
6. Dallas: 1.4 percent price increase
7. New York: 1.3 percent price increase
8. Birmingham, Ala.: 0.9 percent price increase
9. Pittsburgh: 0.8 percent price increase
10. New Orleans: 0.5 percent price increase

Meanwhile, Clear Capital reports that real estate markets in Florida and the Western parts of the U.S.—such as cities in Arizona and “Breadbasket metros” like Oklahoma City, Okla., and Dayton, Ohio—likely will see the largest price drops in home values over the year. Virginia Beach, Va., is expected to have the highest drop in 2011, with a 12.8 percent price decrease, according to Clear Capital report.

From the desk of Ruth Wilkey RE: Attention Getting Topic Line
Give me a call and put me to work for you today! Buy now before Rates Go Up! Serving Utah!

Update From Ruth Wilkey - Utah Realtor

From the desk of Ruth Wilkey
RE: Timely Update!

Taking TARP funds a mistake
Ken Lewis, the CEO of Bank of America, says it was a mistake to take so much TARP money from the government and he wants to pay it back as fast as possible. Unfortunately, that will take a while. "It's going to be several quarters before we have the opportunity. If you had a window, you could pay some of it back, but not all of it back; we'd like to do that, at least." Bank of America, Citigroup, and JPMorgan Chase have all received federal loans through the Troubled Asset Relief Program but the funding came with government involvement (and a few good tar and featherings) that the banking community has later regretted. That has made repaying the government funds a priority for many in the banking sector.

Signature Bank of New York announced that it would return the $120 million it received from the government just three months ago.

Renters can now buy
The U.S. housing market is in the worst downturn since the Great Depression, putting affordability, at least by some measures, at a record high right now. In a survey of 76 metropolitan area markets across the United States, a whopping 50 percent show that a person can buy a house for less than renting when considering the after-tax cost of homeownership. The National Association of Realtors' housing affordability index surged 13.6 percentage points in January to 166.8, the highest since tracking began in 1970.

Foreclosures spike again in February
It was starting to look like the problem was easing before January, when foreclosure starts declined to 69,000 in November from 77,000 in October and then dropped again to 56,000 in December. But in January the number of started foreclosures jumped to 217,000, and now February's numbers have leaped up again to 243,000. 87,000 homes were repossessed (foreclosures completed) by banks during February, a 28% jump from the 68,000 foreclosures completed in January. Since the mortgage meltdown hit in July 2007, 1,395,044 homes have been lost. In February, nearly 250,000 homeowners received either mortgage modifications or repayment plans from their lenders, according to Hope Now, the coalition of lenders, investors, and community advocacy groups put together by the Obama administration's foreclosure prevention initiative.

Fannie and Freddie release the inventory
This is HUGE. Fannie and Freddie are about to finally let loose of their REO properties… Did you know that 50% of REO in the USA is owned by Fannie and Freddie?

Long and short… it’s a good time to buy.

Hope this was insightful – Keeping you informed!




Give me a call and put me to work for you today!

Buy now before Rates Go Up!

Serving Utah!

Take Advantage Of The New Tax Credit!

From the desk of Ruth Wilkey
RE: New tax credit!

Reality Check!!
Purchase a Home now and take advantage of the new tax credit of up to $8000 a benefit that makes your new home affordable.

A tax credit is now available for 1st time Home Buyers under the American Recovery and Reinvestment Act of 2009. If you buy a home between January 1,of 2009 thru November 30th Of 2009. You may be eligible to receive a tax credit for 10% of the purchase price of your home___up to $8000 program highlights include:

1. Any individual ( and if married, their spouse) who has no ownership interest in a home during the last 3 years is eligible.
2. Full credit for single taxpayers with incomes up to $75,000 ($150,00 on a joint return); partial credit for incomes up to $95,000 ($170,000 joint return).
3. Available only for the purchase of a single-family home that will be used as a principal residence.
4. Home Buyers can reduce ( or even eliminate ) their income tax liability for the year of purchase by claiming the credit on their tax return.
5. If the home is sold before three years, the first-time home buyer ( who is now the seller) must pay the IRS the entire amount of the tax credit at closing.

If you are a first time Home Buyer, now may be the ideal time to consider purchasing a home. Contact me today to learn more about the current state of the market , including detail on determining your purchasing power in today's Market.


Give me a call and put me to work for you today!

Buy now before Rates Go Up!

Serving Utah!