In today's Rreal Estate market many people are considering short sale for a variety of reasons. Realtors are taking listings and trying to get banks to approve short sale transactions. But what are the ramifications to doing a short sale? No Realtor is an expert on what the ramifications can be in regards to a short sale.
By definition a short sale si when the home oneer sells the home for less than they owe on the house. The banks are requiring quite a bit of information in order to process and decide whether they will accept a short sale.
I go one quite a bit of short sale presentations lately. In this market it seems almost half of the homes on the market are short sale listings. But what are the ramifications if the seller accepts a short sale and the bank approves it. There can be numerous liabilities attached to that transaction for the seller. Their obligation and ramifications may not be over when they sign the deed over to the new home owner.
I have made it a policy to NOT accept any short sale listing without the seller first consulting an attorney and a tax accountant about the possible ramifications of a short sale. It has cost me some listings on a short sale but I feel the home owner is making a more educated decision in regards to what the effects can be.
The premise that a lot of home sellers seem to be under si that if they short sale their liability is gone. that may not necesary be true. The bank can request the seller to take a promissory note for the dfiffeence of sale price and the mortgage balance.
Other possibility I have seen is the bank will issue a 1099 at the end of the year claiming the short sale deficiency as income to the seller. Thus the seller has to pay taxes on that amount.
There are other ramifcations as well. I am by no means an expert in the psosible consequences. These seem to be the two most common misconceptions that a seller is unaware of when considering a short sale.
So, please if you are considering short sale on your home consult a tax accountant and an attorney before signing any papers on proceeding with a short sale.
Dave diCecco
Realtor/Agent
www.davedicecco.com
Friday, March 26, 2010
Thursday, March 25, 2010
Charlotte Market Conditions Still Favor Buyers
I recently was reading an article on-line about the housing market. We have all heard about the short sales and foreclosures. As well as the limited success of the Obama Administration to help home owners out in regards to a mortgage modification. However; the question still looms; has home prices hit bottom yet? Are we going to see home prices drop more? These are questions that are purely speculative. For everyone that writes that the economy and housing market is going to get worse there is someone who is saying it is going to be better and is stabilizing. So who do we believe?
Well I decided to pull the statistics off a variety of different sources and and see how the trends were matching up. This is by no indication an definitve report but one based on home price trends for the past year and statistics.
I first looked at home sale prices. I thought of list price but those numbers are subjective with people putting in low numbers to attract offers on short sale homes. As compared to February 2009 to February 2010 the average sale price in the Charlotte area was up 4.6% on average (The price people paid for a house). Now with the prices taking a nose dive of almost 40% it still has not stabilized to a point yet where we are at a balance. We have a long way to go to get there.
Then I decided to look at homes under contract and see how they have compared to a year ago. A good indication if people are out looking at homes and buying right now. As compared to February 2009 homes that offers were placed on and accepted by the seller were up 14%.
Last, I looked at how many homes closed. Some will fall out do to appraisals, home inspections or financing to name a few. From the same periods homes that closed were up 3.6%.
The numbers show a trend in homes that are closing and the price people are paying for them has increased from last year. Does it mean we are out of the woods with falling home prices? Maybe we might be. Nothing is for certain. But one thing I do know is the statistics are showing the Charlotte area market is slowly creeping back up.
I believe we have seen the worse in the home price drop. I do believe the statistics show we are starting to see a stabilization in home prices. Will we see prices as high as they were a few years ago? Probably not but the market is beginning to show signs of stabilization.
Dave diCecco
Realtor/Agent
www.davedicecco.com
Well I decided to pull the statistics off a variety of different sources and and see how the trends were matching up. This is by no indication an definitve report but one based on home price trends for the past year and statistics.
I first looked at home sale prices. I thought of list price but those numbers are subjective with people putting in low numbers to attract offers on short sale homes. As compared to February 2009 to February 2010 the average sale price in the Charlotte area was up 4.6% on average (The price people paid for a house). Now with the prices taking a nose dive of almost 40% it still has not stabilized to a point yet where we are at a balance. We have a long way to go to get there.
Then I decided to look at homes under contract and see how they have compared to a year ago. A good indication if people are out looking at homes and buying right now. As compared to February 2009 homes that offers were placed on and accepted by the seller were up 14%.
Last, I looked at how many homes closed. Some will fall out do to appraisals, home inspections or financing to name a few. From the same periods homes that closed were up 3.6%.
The numbers show a trend in homes that are closing and the price people are paying for them has increased from last year. Does it mean we are out of the woods with falling home prices? Maybe we might be. Nothing is for certain. But one thing I do know is the statistics are showing the Charlotte area market is slowly creeping back up.
I believe we have seen the worse in the home price drop. I do believe the statistics show we are starting to see a stabilization in home prices. Will we see prices as high as they were a few years ago? Probably not but the market is beginning to show signs of stabilization.
Dave diCecco
Realtor/Agent
www.davedicecco.com
Wednesday, March 24, 2010
Crestdale Crossing Matthews, North Carolina---Children Friendly Community
I am often asked by first time buyers that they want a neighborhood that is safe for the children to play. Though I cannot steer anyone to any particular neighborhood or area; if they are considering the Matthews area I recommend they look in Crestdale Crossing.
In addition to the affordable pricing that it offers, Crestdale crossing offers what I felt was a great value for my wife and four kids. A safe child friendly neighborhood. With only one road into the complex and every road ending in a cul-de-sac traffic is light. It is not used a cut through and people are very conscious of the children out playing.
I have no fear letting my kids ride their bikes on the cul-de-sacs or going to the playground and playing on the swings or slide. Or even letting them enjoy the vast open field that is there for their enjoyment. In fact, I encourage it.
The way they positioned the subdivision the playground and the field is in the middle of the complex. Surrounded by homes on all sides. If you did not know it was there you would never know or see any of the many kids playing nerf gun wars, football, baseball or a variety of other outdoor activities.
I recently was showing a home to someone in the neighborhood and they asked where the playground and field was. They had seen a picture of it but when they did a drive through they could not find it. I said that is the beauty of it. Based on it's location in the middle it is centered to all the homes and yet tucked away so people cannot see it. Thus making it safe for the kids to play in.
A day does ntto go by now that spring is upon us that there are not at least 15 to 20 kids playing a variety of sports, games, or enjoying the playground out there.
With it's limited traffic in and out of the complex and the vast amount of young and teenage children it makes Crestdale crossing a very children friendly neighborhood.
We probably all remeber the days when we were growing up (dating myself here) when we would be outside playing kickball, baseball, swinging on the swings, bike riding or a variety of other things...and our parents would be sitting outside talking with other parents or telling us to be home before dark. This little 150+ community offers much of that same old fashioned traits that we grew up with.
So, if you are looking in Matthews for affordable housing and a neighborhood that offers some of the most children friendly amenities around consider Crestdale Crossing in Matthews North Carolina.
Dave diCecco
Realtor/Agent
www.davedicecco.com
In addition to the affordable pricing that it offers, Crestdale crossing offers what I felt was a great value for my wife and four kids. A safe child friendly neighborhood. With only one road into the complex and every road ending in a cul-de-sac traffic is light. It is not used a cut through and people are very conscious of the children out playing.
I have no fear letting my kids ride their bikes on the cul-de-sacs or going to the playground and playing on the swings or slide. Or even letting them enjoy the vast open field that is there for their enjoyment. In fact, I encourage it.
The way they positioned the subdivision the playground and the field is in the middle of the complex. Surrounded by homes on all sides. If you did not know it was there you would never know or see any of the many kids playing nerf gun wars, football, baseball or a variety of other outdoor activities.
I recently was showing a home to someone in the neighborhood and they asked where the playground and field was. They had seen a picture of it but when they did a drive through they could not find it. I said that is the beauty of it. Based on it's location in the middle it is centered to all the homes and yet tucked away so people cannot see it. Thus making it safe for the kids to play in.
A day does ntto go by now that spring is upon us that there are not at least 15 to 20 kids playing a variety of sports, games, or enjoying the playground out there.
With it's limited traffic in and out of the complex and the vast amount of young and teenage children it makes Crestdale crossing a very children friendly neighborhood.
We probably all remeber the days when we were growing up (dating myself here) when we would be outside playing kickball, baseball, swinging on the swings, bike riding or a variety of other things...and our parents would be sitting outside talking with other parents or telling us to be home before dark. This little 150+ community offers much of that same old fashioned traits that we grew up with.
So, if you are looking in Matthews for affordable housing and a neighborhood that offers some of the most children friendly amenities around consider Crestdale Crossing in Matthews North Carolina.
Dave diCecco
Realtor/Agent
www.davedicecco.com
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