I just got done negotiating on a short sale listing. The listing agent offered the home for 35% LESS than the average home had sold for in that neighborhood in the past 90 days. It was over 40% LESS than the asking prices of the comparable homes in the area. So, the next questions is how much work did it need? NONE.
In today's market short sale and bank owned homes have become more prevalent than ever before in this country. So, what as agents are we doing to separate our homes form the competition? I have noticed a trend since the tax credit expired at the end of April. Less people are out looking at homes than before. This means we have fewer people competing for the same number of homes right now.
Banks can decide how much they want to sell a home for and lower their prices accordingly. When you look at a home listed for sale that si bank owned you can rest assured if you offer them that price and you are the only person with an offer at that time you will get an acceptance on your offer.
On the other hand, when you negotiate on a short sale the game is completely different. The sale price si decided upon by the listing agent and the seller. In most cases the asking price is fair market value for the home based on the condition of the home. However; what if there are no offers on the home? What if the seller is in danger of losing the home to foreclosure?
Then the listing agent will generally lower the price down significant enough to drive traffic to the home and get an offer on the home. But will the bank accept the offer? Depends on the price and the fair market value of the home. Each bank has their guidelines they use to determine what is an acceptable price to accept on a particular home.
Today, i have noticed many homes that are now priced as much as 40% BELOW market value. Knowing that the bank will probably not accept that number; the buyer still wants to put an offer in on the home. Then wait three weeks or longer (depending on the bank) to receive an answer back as to whewther they will accept the offer or not.
You could wait a month or longer to find out the bank wants substantially more than you originally offered for the home and are back to square one. Today, unfortunately it is becoming more the norm for homes to be priced low to attract an offer rather than get the home sold.
My advice is have your agent check the comparable in the neighborhood. See what they are asking for the home in comparison to what has sold. If it is too good to be true then chances are it is.... You now have lost a month or so from the market and your dream home may have come and gone in that time frame.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Friday, June 4, 2010
Thursday, June 3, 2010
Brightmmor matthews, NC. Market Trends June 2010
Brightmoor offers families a great community at an affordable price. Located just outside of downtown Matthews; it's convenience to shopping and major highways makes it an attractive location for families.
The market has seen an upswing in the last few months and closings are expected to rise through June as buyers rushed to take advantage of the expiring tax credit. So, some of the numbers may reflect that rise in buyers moving quicker rather than waiting.
However; the trends are showing a gradual and steady increase in the neighborhood. We probably will not get back to pre mortgage crisis sale price numbers but at least the market is starting to show signs of stabilizing.
The trends over the past three years have shown an average of one home a month selling in the subdivision. Three years ago 14 homes sold there. Two years ago it was also 14 homes and last year ending on June 1, 2010 there were 13 sales in brightmoor.
The pricing trends have stabilizied in the past year. The average sale price in Brightmoor for the past 12 months has been $203,569.00 based on 13 sales with the average home on the market for 89 days.
Some things to take iinto account is that there were some foreclosures that sold. In fact, there were 2 that sold in the past 3 months that have driven the average price down. They sold for an average of $142,500.00.
To be fair it was nto like people were getting that great of a deal on the homes. Neither home qualified for financing with teh FHA. In fact, one home was sold for cash only because of the extent of work that the home needed. Factoring in the repairs needed to bring the homes up to standards and average home prices have been pretty stable for the past 18 months.
Currently, there are 12 properties listed for sale in Brightmoor with an average sale price of $220,933.00. Taking out the two homes that needed work the asking prices were an average of 4% greater than the average sale price.
David diCecco
Realtor/Broker
www.davedicecco.com
The market has seen an upswing in the last few months and closings are expected to rise through June as buyers rushed to take advantage of the expiring tax credit. So, some of the numbers may reflect that rise in buyers moving quicker rather than waiting.
However; the trends are showing a gradual and steady increase in the neighborhood. We probably will not get back to pre mortgage crisis sale price numbers but at least the market is starting to show signs of stabilizing.
The trends over the past three years have shown an average of one home a month selling in the subdivision. Three years ago 14 homes sold there. Two years ago it was also 14 homes and last year ending on June 1, 2010 there were 13 sales in brightmoor.
The pricing trends have stabilizied in the past year. The average sale price in Brightmoor for the past 12 months has been $203,569.00 based on 13 sales with the average home on the market for 89 days.
Some things to take iinto account is that there were some foreclosures that sold. In fact, there were 2 that sold in the past 3 months that have driven the average price down. They sold for an average of $142,500.00.
To be fair it was nto like people were getting that great of a deal on the homes. Neither home qualified for financing with teh FHA. In fact, one home was sold for cash only because of the extent of work that the home needed. Factoring in the repairs needed to bring the homes up to standards and average home prices have been pretty stable for the past 18 months.
Currently, there are 12 properties listed for sale in Brightmoor with an average sale price of $220,933.00. Taking out the two homes that needed work the asking prices were an average of 4% greater than the average sale price.
David diCecco
Realtor/Broker
www.davedicecco.com
Wednesday, June 2, 2010
Appraisers Affecting Home Prices Charlotte, NC.
I recently read a blog from a fellow agent in another state. He was talking about appraisals and how to fight against the low number you receive when the number is unjustified. It made me think of the last few transactions I was a part of recently. In four of the last five transactions that have closed or are scheudled to close the appraiser number was lower than the agreed upon sale price.
It made me think are the appraisers affecting the home values and helping or hindering the market today? One can make an argumeent that they go to school and become liscenced in their practice. I am fine with the schooling and most times the comparables they utliize to justify the price of the home.
When I read the previous agents blog and talked to fellow agents i have had transactiosn with and in my office I got an overwhelming response of the same issues I am facing on a daily basis. The appraisers get a copy of the offer to purchase in NC before they go out and appraise the home. So, they know what the sale price is up front instead of giving an appraisal on the home for what it is worth. And most of the agents all had the same comment to make; "if it is not a foreclosure we are sweating out the appraisal for the purchase price of the home." I know from personal experince that 60% of my deals this year the appraisal either came in lower than the agreed upon sale price.
Where it gets tricky and very subjective is when the appraiser needs to make an adjustment to the comparable home. Ideally you want the fewest adjustments possible on the comparable homes. With that you are getting a true reading of the value of the home. I have gone over appraisals with and noticed comparable properties that were almost an exact match that were not used. The difference in that can make a deal stay together or could hurt your deal if you do not know your market.
I have had some moderate success in getting appraisals adjusted... I am not Houdini and sometimes I make mistakes when I am figuring out comparables (though rarely). I believe if you are justified in your approach and the appraiser sees the value in the comparable you have you can get it adjusted accordingly.
Where I have an issue and have not been able to get anywhere with an appraiser si when they check the box that says this home is located in a neighborhood that is decreasing in value. Thus they throughout the 90 day comps and adjust the price LOWER for the market conditions.
Hello. Did you just wake up and realize that we have been in a housing bust for almost two years now? The worst part about it is when I argued in writing about this on one of my homes; I got it removed. I was able to show a trend for the past year where in actuality the housing prices had gone up.granted not much, only 1% to 2%. But taking out the "depreciating neighborhood factor" put the appraisal in line with what we were selling the home for.
The biggest factor is making sure the Realtor knows the market they are selling in or their buyer is purchasing in. Otherwise the deal could not materialize...
Dave diCecco
Realtor/Broker
www.davedicecco.com
It made me think are the appraisers affecting the home values and helping or hindering the market today? One can make an argumeent that they go to school and become liscenced in their practice. I am fine with the schooling and most times the comparables they utliize to justify the price of the home.
When I read the previous agents blog and talked to fellow agents i have had transactiosn with and in my office I got an overwhelming response of the same issues I am facing on a daily basis. The appraisers get a copy of the offer to purchase in NC before they go out and appraise the home. So, they know what the sale price is up front instead of giving an appraisal on the home for what it is worth. And most of the agents all had the same comment to make; "if it is not a foreclosure we are sweating out the appraisal for the purchase price of the home." I know from personal experince that 60% of my deals this year the appraisal either came in lower than the agreed upon sale price.
Where it gets tricky and very subjective is when the appraiser needs to make an adjustment to the comparable home. Ideally you want the fewest adjustments possible on the comparable homes. With that you are getting a true reading of the value of the home. I have gone over appraisals with and noticed comparable properties that were almost an exact match that were not used. The difference in that can make a deal stay together or could hurt your deal if you do not know your market.
I have had some moderate success in getting appraisals adjusted... I am not Houdini and sometimes I make mistakes when I am figuring out comparables (though rarely). I believe if you are justified in your approach and the appraiser sees the value in the comparable you have you can get it adjusted accordingly.
Where I have an issue and have not been able to get anywhere with an appraiser si when they check the box that says this home is located in a neighborhood that is decreasing in value. Thus they throughout the 90 day comps and adjust the price LOWER for the market conditions.
Hello. Did you just wake up and realize that we have been in a housing bust for almost two years now? The worst part about it is when I argued in writing about this on one of my homes; I got it removed. I was able to show a trend for the past year where in actuality the housing prices had gone up.granted not much, only 1% to 2%. But taking out the "depreciating neighborhood factor" put the appraisal in line with what we were selling the home for.
The biggest factor is making sure the Realtor knows the market they are selling in or their buyer is purchasing in. Otherwise the deal could not materialize...
Dave diCecco
Realtor/Broker
www.davedicecco.com
Monday, May 31, 2010
Memorial Day Thank You
Today we celebrate Memorial day. A day we honor our fallen soldiers who have died for us. A day we remember all the brave men and women who are fighting for us or have fought for us over the years. Today for me marks a day of remembrance...one of which I am thankful for.
I was going to write about some local events going on or a topic in selling homes. However; I am reminded as I sit here and type that today is a day we need to reflect on the people who serving our country and the ones who have.... Being a veteran of the army and serving during the Persian Gulf War..I have an understanding of what our young men and women are going through.
I cannot pass by an American Flag and not get emotional when I see it proudly displayed...For me it is a sign that people understand what we went through and are going through today. Freedom is a word that we take for advantage sometimes; but one on today we understand and reflect more than any other day.
Today i will remember my fellow brethren that have fallen to preserve my freedom and the ones serving to keep that freedom alive...And i will say THANK YOU......
Dave diCecco
Realtor/Broker
www.davedicecco.com
I was going to write about some local events going on or a topic in selling homes. However; I am reminded as I sit here and type that today is a day we need to reflect on the people who serving our country and the ones who have.... Being a veteran of the army and serving during the Persian Gulf War..I have an understanding of what our young men and women are going through.
I cannot pass by an American Flag and not get emotional when I see it proudly displayed...For me it is a sign that people understand what we went through and are going through today. Freedom is a word that we take for advantage sometimes; but one on today we understand and reflect more than any other day.
Today i will remember my fellow brethren that have fallen to preserve my freedom and the ones serving to keep that freedom alive...And i will say THANK YOU......
Dave diCecco
Realtor/Broker
www.davedicecco.com
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