Thursday, the last remaining states Attorney's General jumped on board the bandwagon and announced that Alabama would indeed join into the Bi partisan probe to see if mortgage companies have been following procedure on their foreclosures. It is alleged that bank employees have not been reviewing the documents and have been doing what has now been coined as "robo-signing". It is estimated that the average foreclosure package is in the hands of these employees for an average of 1.5 minutes. Definitely not enough time for a thorough review. But so what?
Now don't get me wrong, I'm just playing Devil's advocate here. If you didn't pay your mortgage for 8 months, isn't it a reasonable expectation that the bank should get the property back? Even in this age of entitlement, I think most of us would agree, if you wanna play, you gotta pay.
In watching the reaction from different people, entities, etc, it is very clear to me that there are different opinions about all of this. And I can see that the implications are going to reach far and wide.
First, the opinions. Banks are saying so what if they rubber stamped documents to speed things up. If the homeowner didn't pay, they were within their right to foreclose. But here's where it gets interesting, if somewhere in that package, the bank didn't follow the procedure, say for example they missed a posting in the local paper, then technically they can't foreclose until they fix the mistake. That's just one example.This is where consumers and advocacy groups are chiming in. They want the banks to stop deflecting and fix this mess.
Second, the implications. While some of the larger banks have halted foreclosures for now, others have not. Those that have maintain that they haven't done anything wrong, but they want to check and be sure. It appears that title companies are threatening to not insure properties sold by the banks after foreclosure, because now their may be questions of "does the bank really own the home"? Wall Street is seeing bank stock prices head down at a time when the market overall is finally starting to rise again. And then there's just the basic law of supply and demand. Right now, a potential home buyer has increased buying power due to the historically low interest rates. Rates that are hovering right around the 4% range. But in my mind, if the supply of bank owned properties starts to "dry up", then isn't it logical that the homes that "regular" sellers have up for sale should go up in price due to more demand and less supply?
There's a lot of variables that figure in to all of this, so I think that this is one where truly only time will tell the whole story.
Thursday, October 14, 2010
Thursday, December 10, 2009
Choosing a Realtor
When the time comes to sell their home (quite possibly the largest financial investment a person might ever make) the homeowner could benefit from acting like the process is a business transaction, because it is! This is one very good reason that people should hire a Realtor. The Realtor will take the emotion out of the transaction and stick to the “Business” of selling the home.
But how do you pick that one special person? Stick with a business plan of sorts. There are many places to find the names of Realtors, such as the phone book, real estate publications, etc. But would you pick your doctor that way? Probably not. Word of mouth is a very powerful tool. Ask friends and co workers for the name of someone they have done business within the past. And ask them if they would use them again. While the Realtor may have successfully closed the deal, were the buyer/seller they represented happy with things overall?
I’d recommend getting two or three names, and then sitting down with each and interview them. Yes, I said interview them. You are hiring them to do a job. Here is a list of some questions that I’d recommend asking, and explanations as to why.
1. How long have they been in the real estate business? A newer Realtor might have more time to dedicate to selling your home, but an experienced one will know the ins and outs and will have a streamlined process.
2. Do they work full time as a Realtor? In this tough economy, many Realtors that may have had marginal track records are finding that they need to hold a “steady day job” to survive. If they have to commit to someone else, where does that leave you?
3. Do they work nights and weekends? Buyers typically want to look at homes at night and weekends, when they don’t have to work. So it is important for a Realtor to be available then. One of the things that a lot of Realtors enjoy is the flexibility of the job. Doing an open house on a Sunday is offset by free time later in the week. Or showing a house at night allows time to get the kids off to school in the mornings.
4. What education, training, and certificates do they hold? Accreditations such as ABR, CRS, or GRI show that the Realtor is committed to learning all they can about the profession they have chosen AND that they desire to stay up to date with their industry.
5. Do they specialize in a particular type of real estate? I can tell you right now, someone that does commercial properties is not going to be the best choice for selling a residential property.
6. Do they have a list of vendors they work with? Sometimes when a home is under contract, a repair item comes up that a home owner isn’t prepared for, knows nothing about, and would like some guidance. Most Realtors I have dealt with have a list of companies they have done business with and are happy with the service they received. Sometimes, these companies will even provide a discount to homeowners because the referring party has sent a substantial amount of business their way. Keep in mind though, the final decision on who does what is always up to the homeowner.
This is part 1 of 3 for this series. Next week I’ll continue on with the list.
But how do you pick that one special person? Stick with a business plan of sorts. There are many places to find the names of Realtors, such as the phone book, real estate publications, etc. But would you pick your doctor that way? Probably not. Word of mouth is a very powerful tool. Ask friends and co workers for the name of someone they have done business within the past. And ask them if they would use them again. While the Realtor may have successfully closed the deal, were the buyer/seller they represented happy with things overall?
I’d recommend getting two or three names, and then sitting down with each and interview them. Yes, I said interview them. You are hiring them to do a job. Here is a list of some questions that I’d recommend asking, and explanations as to why.
1. How long have they been in the real estate business? A newer Realtor might have more time to dedicate to selling your home, but an experienced one will know the ins and outs and will have a streamlined process.
2. Do they work full time as a Realtor? In this tough economy, many Realtors that may have had marginal track records are finding that they need to hold a “steady day job” to survive. If they have to commit to someone else, where does that leave you?
3. Do they work nights and weekends? Buyers typically want to look at homes at night and weekends, when they don’t have to work. So it is important for a Realtor to be available then. One of the things that a lot of Realtors enjoy is the flexibility of the job. Doing an open house on a Sunday is offset by free time later in the week. Or showing a house at night allows time to get the kids off to school in the mornings.
4. What education, training, and certificates do they hold? Accreditations such as ABR, CRS, or GRI show that the Realtor is committed to learning all they can about the profession they have chosen AND that they desire to stay up to date with their industry.
5. Do they specialize in a particular type of real estate? I can tell you right now, someone that does commercial properties is not going to be the best choice for selling a residential property.
6. Do they have a list of vendors they work with? Sometimes when a home is under contract, a repair item comes up that a home owner isn’t prepared for, knows nothing about, and would like some guidance. Most Realtors I have dealt with have a list of companies they have done business with and are happy with the service they received. Sometimes, these companies will even provide a discount to homeowners because the referring party has sent a substantial amount of business their way. Keep in mind though, the final decision on who does what is always up to the homeowner.
This is part 1 of 3 for this series. Next week I’ll continue on with the list.
Tuesday, November 3, 2009
Extending the first time home buyer tax credit in Anchorage, Alaska
Wow, What an exciting time in the Anchorage Real Estate Market this last week.
At the top of the list in my opinion is the looming extension AND expansion of the tax credit for homeowners. Originally, the program was set to expire at the end of November. Senators have now proposed extending that eligibilty to buyer's who purchase by April 30 and close by July 1, 2010.
As a Realtor in Anchorage, I have seen the positive effects that this program has had. It has increased sales in our local market and the national one too. The National Association of Realtors is reporting that home sales are up for several months in a row, before dropping slightly. This drop can more than likely be attributed to the upcoming expiration date of the program.
A first time homebuyer is eligible for an up to $8,000 tax credit. That's a lot of money. And for clarification, a first time home buyer isn't just someone buying for the first time. It is also someone who has not owned a primary residence for the last 3 years. That opens up the market to even more home buyers.
Now, please notice that I included mentioned an expansion of the credit. Senate negotiators were able to include in the revised program a credit for up to $6,500 for homeowners who have been in their home for 5 of the last 8 years. Another nice chunk of money for homeowners.
The debate goes on about the merits of this program (as well as the rest of the Obama Stimulus Package) but consider this. The package consists of $787 Billion. Thats a lot of zeros. Of all that money,less than 1.5% is set aside for the homebuyer tax credits. A small drop in the bucket, until you are the guy who's thirsty(for that credit).
Click on the following link to the IRS website to see a list of the FAQ about the program, eligibility requirements, etc.
http://www.irs.gov/newsroom/article/0,,id=206291,00.html
At the top of the list in my opinion is the looming extension AND expansion of the tax credit for homeowners. Originally, the program was set to expire at the end of November. Senators have now proposed extending that eligibilty to buyer's who purchase by April 30 and close by July 1, 2010.
As a Realtor in Anchorage, I have seen the positive effects that this program has had. It has increased sales in our local market and the national one too. The National Association of Realtors is reporting that home sales are up for several months in a row, before dropping slightly. This drop can more than likely be attributed to the upcoming expiration date of the program.
A first time homebuyer is eligible for an up to $8,000 tax credit. That's a lot of money. And for clarification, a first time home buyer isn't just someone buying for the first time. It is also someone who has not owned a primary residence for the last 3 years. That opens up the market to even more home buyers.
Now, please notice that I included mentioned an expansion of the credit. Senate negotiators were able to include in the revised program a credit for up to $6,500 for homeowners who have been in their home for 5 of the last 8 years. Another nice chunk of money for homeowners.
The debate goes on about the merits of this program (as well as the rest of the Obama Stimulus Package) but consider this. The package consists of $787 Billion. Thats a lot of zeros. Of all that money,less than 1.5% is set aside for the homebuyer tax credits. A small drop in the bucket, until you are the guy who's thirsty(for that credit).
Click on the following link to the IRS website to see a list of the FAQ about the program, eligibility requirements, etc.
http://www.irs.gov/newsroom/article/0,,id=206291,00.html
Friday, October 16, 2009
Wednesday, September 16, 2009
A busy week in Anchorage Real Estate
It's been a busy week in Anchorage real estate.I personally listed 3 properties and within 5 days one of them had pended. A look at the local MLS confirms that things are still movin'.
A quick look at Realtytrac- one of the nations top foreclosure tracking company's / website shows that Alaska is ranked number 34 with regards to number of foreclosures for Aug 2009. 17 other states had less than us (DC is included, and they had a lot more). We were down 33% from the month before.
And the most alarming fact that shows Alaska is still a great palce to live- 6 states account for 62% of all foreclosures in the US.
The Title 21 re-write is almost done, and they are proposing putting it to work spring 2010. A local architect told a group of real estate professional on tuesday that with the new changes comes an expected increase in workload during the planning phase of a project. This means it's going to cost more to even get a project off the ground.
A quick look at Realtytrac- one of the nations top foreclosure tracking company's / website shows that Alaska is ranked number 34 with regards to number of foreclosures for Aug 2009. 17 other states had less than us (DC is included, and they had a lot more). We were down 33% from the month before.
And the most alarming fact that shows Alaska is still a great palce to live- 6 states account for 62% of all foreclosures in the US.
The Title 21 re-write is almost done, and they are proposing putting it to work spring 2010. A local architect told a group of real estate professional on tuesday that with the new changes comes an expected increase in workload during the planning phase of a project. This means it's going to cost more to even get a project off the ground.
Thursday, September 3, 2009
Starting September with some stats
A quick glance at the latest MLS statistics for Anchorage show that YTD most homes being listed with A brokerage are selling in the 98 percentile of their asking price with the average marketing time being well over two months and in some areas over 3. Of course, keep in mind these are average satistics and no 2 transactions are alike. But these are pretty encouraging.
As a side note, according to the National Association of Realtors, the number of homes being sold by unrepresented sellers is going down, as people are finding the home selling arena to be more competetive. The typical unrepresented seller (commonly called the FSBO) according to NAR sells their home for as much as 26% less than if a Realtor had represented them. The list is long as to the reasons why.
As a side note, according to the National Association of Realtors, the number of homes being sold by unrepresented sellers is going down, as people are finding the home selling arena to be more competetive. The typical unrepresented seller (commonly called the FSBO) according to NAR sells their home for as much as 26% less than if a Realtor had represented them. The list is long as to the reasons why.
Tuesday, September 1, 2009
Have we hit bottom in Anchorage, Ak?
It's a question that people ask often. In addition, it is normally followed by, "if not, when will we"?
Consider this- no one will know when we have hit bottom until we are moving back upward. You must follow the trend to see what is happening.
Something homebuyers should consider though, is the fact that interest rates are still historically low.
Prices in Anchorage for the most part are stable. We are not seeing huge decreases in property values like a lot of cities.
So, if you are waiting for the big price drop on that dream house, it could be offset by rising interest rates. A good rule of thumb is each 1% of interest rate is good for about $10,000 of the homes value. Interest rates are more likely to go up before you'll see that huge price drop. Again, that's a rule of thumb and each transaction has many variables to consider.
Consider this- no one will know when we have hit bottom until we are moving back upward. You must follow the trend to see what is happening.
Something homebuyers should consider though, is the fact that interest rates are still historically low.
Prices in Anchorage for the most part are stable. We are not seeing huge decreases in property values like a lot of cities.
So, if you are waiting for the big price drop on that dream house, it could be offset by rising interest rates. A good rule of thumb is each 1% of interest rate is good for about $10,000 of the homes value. Interest rates are more likely to go up before you'll see that huge price drop. Again, that's a rule of thumb and each transaction has many variables to consider.
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