The State of the Market

Real estate prices in our area continue to remain steady. After the tax credits for home buyers expired last May, there was concern that the market could tank. Yet, existing home sales have stabilized over the past year. Lawrence Yun, Chief Economist for the National Association of Realtors, reports that the housing market continues to recover on its own power without the homebuyer tax credit. The NAR reported in September that existing-home sales rose by 7.6% in August following a big correction in July.

I think people are beginning to hedge their bets. Prices haven’t been this good for a long time. Sellers are serious. The rate for a 30-year conventional fixed-rate mortgage fell to a record low of 4.43 in August according to Freddie Mac. Note that the rate was 5.19 percent in August 2009.

So what is holding back more buyers? The main reason given is a lack of confidence in our national economy. Many believe that the November elections will create a new direction and confidence will grow. If that is so, then buying now will be seen as the smart move.

I am going to be talking about understanding the value of having a comparative market analysis below. Knowing the local market and seeing the trends in our area is what I do best for you. Let me know if you have specific questions and we can meet at your convenience.


JUST ASK


Q: What is a CMA?

A: A Comparative Market Analysis, or CMA, is an in-depth analysis of the home’s worth in today’s market. If you are thinking about selling your home, then we need to determine the fair market value first. There are online sites as well as newspaper listings that will give valuations. But each house is different and most sales are not posted publicly for months. It takes an expert who has walked through the recent homes for sale, knows the streets of the neighborhood, and knows the trends of real estate transactions to best assess which properties to compare to yours in order to create a realistic CMA.

To create a CMA, first I will walk through your home. At this point, I may recommend some improvements that would increase your home’s value. Then I will check all sales, pending sales, expired listings and active listings in our area that relate to your home. Once we have the analysis, together we will determine an asking price.

Depending on the strength of the market when we list your home, you can expect a range of offers. My goal then is to aggressively market your home so that you get the most exposure from qualified buyers. In the end, you and the buyer determine the final selling price.


MY TOWN

Any parent knows the value of good schools for their children. But the value of good schools doesn’t only affect children and their families, it also impacts neighborhoods and the property values of your home. Even if you don’t have school-age children, knowing the ratings of schools in your current home or prospective new homes will affect your pocketbook in the long run.

The Internet offers some free, comprehensive resources to find school ratings. While ratings don’t cover all of the facets of a school’s value, they give a quick data point to know how well children are learning at any given school. Academic Performance Index (API) score, state rank, parent education and more can be found on www.school-ratings.com. Check out www.greatschools.org for comprehensive school data nationwide. Peruse the website to find the top schools in small, medium, or large US cities (click Find a School tab, then Choose the Right School, then Moving with Kids). Or search for a specific city to review the API results.

As an agent, it is my job to know the local schools not just by test results, but through people and real stories. If you would like more information on your local schools, or the schools in a different neighborhood, just call or email me. Either I’ll help or I’ll connect you with someone who can.


FYI

With a large amount of bank-owned properties on the market, it's a great time for homebuyers looking for good deals. But bidding on bank-owned homes also means the homebuyer has to compete with investors bringing cash offers.

Fannie Mae's got a new program for their Real Estate Owned (REO) properties. For homeowners, this is a way to buy properties that have reduced prices BEFORE investors can buy them. After the property hits the market, you've got fifteen days to look at the property.

Qualified homebuyers must be owner-occupants and can receive up to 3.5% of the final sales price, which can be used toward closing cost assistance including a home warranty, if desired and available. Eligible offers must be submitted on or after Sept. 23, 2010, and must close by Dec. 31, 2010. The sale must close within 60 days of the offer being accepted.

Let me know if you are interested in this program. It is being offered through real estate professionals to give their clients the heads-up. Properties available under this program can be viewed on the REO Web site www.HomePath.com.