Open House Sunday February 20, 2011 from 2p.m. to 4 p.m. Come see this magnificent four bedroom two and half bath home. Located in the autumnwood subdivison of Charlotte; this home offers many of the attributes and features a home buyer is looking for today. All the bedrooms are spacious, kitchen features and eat in area and the family room offers a wood burning fireplace. With an open floor plan and large windows this home gives you the feeling of openess. The large flat back yard is great for kids or entertaining.

Come see why many families have called autumnwood home and stay for many years....

To view a virtual tour of this home click on the link: http://circlepix.com/home/U6HBQ5

Dave diCecco
Realtor/Broker
www.davedicecco.com

What Are Home Buyers Looking For Today?

As we enter the spring selling season (generally the busiest time of the year) for home purchases sellers are asking what do I need to do to get my home sold. Well as always price matters. If you are over priced for your neighborhood or comparables out there you are not going to generate an offer; let alone any showings. However; in a newsletter sent out to Coldwell Banker Agents there were some interesting things that came up in a recent survey.

Coldwell Banker surveyed people who purchased a home in the past 12 months. They asked what was important to them and why they chose the home they did. I will admit the number one reason was a little suprising to me. The survey was conducted to home buyers who had purchased their first home. Considering they make up over half of all sales right now; it made sense.

Well, everyone reads from the news that people want foreclosures. They do not mind doing the work to fix a home or make it their own. Well according to the survey 87% of first time buyers want a home that is move in ready. Now, move in ready means different things to different people. The genral thing is you do not mind changing the color of paint on the walls, or doing a little cleaning. However; they do not want to undertake a list of repairs to a home or updating. They want it done before they move in.

In addition the other items that rated imprtant to first time home buyers were: 78% wanted it close to shopping and services. 75% said it was important to be close to where they worked. 67% said it was important to be near highly rated schools.

While those other items would be on just about every Realtor's list of what home buyers want, the first one probably would not have been on many people's list. Considering the average home buyer now looks at an average of 11 homes before making a descision. That s a lot of homes to look at. You need to make sure your home stands out from the rest. And apparantly condition does matter now over price.

Dave diCecco
Realtor/Broker
www.davedicecco.com

Are Short Sale Prices Affecting Your Home's Perceived Value?

In this economy short sales have become as popular, if not more so than foreclosures. But one trend that seems to be hindering the home sale process is the pricing of a short sale. Just becuase a house has a price posted on the Multiple listing service and the internet does not necessarily mean that the bank is going to accept that number or price.

A common perception among home buyers when they start viewing properties online is that the asking price is close to what the bank will accept for that house in a short sale. The longer it stays on the market the increase in likelihood they will accept less also plays into account.

However; that is not alwys the case. In fact, most times the asking price may be even less than an acceptable number the bank will accept on the house. Unless I see approved short sale...price set by bank or some variation letting me know that the bank informed the listing agent this is the acceptable price they are willing to accept; I do not know for sure if they will accept that number or not.

When we list short sales on the market we are basing it on what we beleive the bank will accept. If a time passes and we are not getting any showings or offers we will lower the price accordingly. Our responsbilty as a listing agent is for our sellers. We are trying to get thier home sold to avoid the foreclosure. And we keep lowering the price until we solicit an offer on the house. Then we present the offer to the bank and they tell us yes or no. If they say no; they will counter back with their bottom line acceptable offer on the house. Then we tend to adjust the sale price to that number if the buyer elects not to accept that price.

But, when people are looking to buy a home or sell a home these perceived values affect the pricing of the homes in the neghborhood. A perfect case is 2 homes next door to one another that I just went through this with. One, a short sale and the other a resale. The short sale was priced $30,000 less than the resale. However; the bank came back at $18,000 HIGHER than the price the listing agent had it listed for. The buyer apparently walked away from that offer and the listing agent adjusted the price accordng to what the bank would accept. That put it inline with the other house. But the other house was not getting any showings or offers on it until the other agent increased their sale price to reflect what the bank would accept for the house. That process can take months before the bank responds back. It ths affects the seller trying to sell their house and the potential buyers who think that the house is substantially over priced (but really s not).

The point here is that when you are looking to buy a home or sell a home; you need to factor in what is selling or sold in your neighborhood. That s a gauge of how the market is trending. Be careful of homes on the market that are listed as short sales that are not priced by the bank. Becuase as the od adage goes "if it is to good to be true it probably is".

Dave diCecco
Realtor/Broker
www.davedicecco.com

FHA To Increase Mortgage Insurance Premium

In one of the first moves by the federal government to help stabilize the finacial end of the housing market, it was announced today that they are going to raise the amount they charge for insurance on a FHA loan by .25 basis points. This change will affect all FHA lonas that are written on or after April 18, 2011. The amount may not seem like a lot of money; however, it can affect the financing ability of potential homeowners.

Currenlty the FHA is the largest single source for home loans in America today. With there requirements of only 3.5% down payment of the sale price; it makes them desireable in these economic times and with rates so low advantegous for borrowers.

The FHA average loan amount is $157,000. Based on that sale price for a home; the monthly mortgage payment will increase by $33.00 a month under the new guidelines.

For home buyers the FHA charges an insurance premium to homeowwers in order to back the loan. This is there way of insure them against the loans that do not get paid. Due to the limited down payment required to do a FHA loan the federal governement wants a security blanket (so to speak) to protect their interest in the loan.

Dave diCecco
Realtor/Broker
www.davedicecco.com

How Rising Mortgage Rates Can Affect Your Purchasing Power

This past week in the news we have heard a lot being said about the Obama administration trying to change the way Freddie Mac and Fannie Mae are controlled. The government is trying to step out; so to speak of the mortgage business. Now, while I agree with the concept of less involvement of the government; what impact will that have on mortgage rates and consumer buying power?

The propsals presented all have the government eihter taking a more limited role or removing their role completely. This is not necessarily a bad thing. Since these two compnaies are owned by the tax payers and are losing money daily. If we had a business losing money we would close it up. However; the greater impact this is having is what it has done for short term interest rates currently.

Though interest rates are relatively low right now; they are starting the creep upwards. It is getting harder to find the low 4% rate we were getting a few months ago with good credit. That rate has increased about a half to three quarter a point. In the grand scheme of things it may not seem like a large increase. But, it has a factor in the buying power of a potential homeowner.

A half point increase in the interest rate affects your monthly mortgage paymnet about $30.00 a month. This basically averages out to be every half point the interest rate increases menas your income needs to be 3% more to offset the increase in payment. That is assuming you are at or close to the maximum ratio for debt to income.

So, the increase in interest rates can have a trickle affect on the buying power you have or what you are looking at to buy. You may have talked wth a mortgage professional that told you a couple months ago that you could afford up to X amount of dollars and now that has lowered. For every half point the interest rate rises it lowers your purchasing power by $6,000 per every $100,000.

A lot of people write that it is a good time to buy. Maybe. But one thing is for certain. Interest rates are starting to climb as unemployment is decreasing and the economy is shaking itself out of the recession. The longer you wait could dramatically alter the amount of home you can afford to buy.

Dave diCecco
Realtor/Broker
www.davedicecco.com