What’s In Store for Real Estate in 2012?

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It has definitely been a rollercoaster ride – one that seems to keep going up in some areas and down in others as we continue to rifle through the aftermath of the big mortgage meltdown of 2007.  But as 2011 comes to an end and we have a new, refreshing start ahead of us – what can we expect to happen in our real estate market?

We examined some of the numbers of the past and projected some foreseen market performance in the future and here is what we have come up with:

Buyers Will See More Competition

Though the market will remain heavily leaning toward the buyer’s side, there will be far more competition on the table when it comes to deals they are trying to close.  Homeowners will receive multiple offers, meaning that the edge buyers had recently will begin to soften.  What this means is that buyers will have to be seriously ready to compete against other serious contenders for the property of choice – a situation that has not been as prevalent in 2011.  Nonetheless, interest rates continue to be at all time industry lows and the low housing prices reflected in the most recent housing index report will provide buyers continued fantastic opportunities and renewed excitement to get in on the house of their dreams for the price of a lifetime!

Sellers Will Enjoy Stabilizing Prices

For the first time that we have seen in three or four years, sellers will finally enjoy prices that will be stabilizing again.  After months and months of uncertainty, sellers will be able to sell more confidently – especially beneficial given the state of our economy as it remains today.  In some pockets, we will see housing values increasing.  Our prediction is that in 2012 housing values will come up as much as five to eight percent from their current levels in those areas.  When you consider that in 2006 prices had dropped as much as 26%, the news of a projected incline in home values is fantastic news!  The coming year will be the best time to sell for many sellers in a long time – and finally – we are going to see happy sellers at the table in addition to the myriad happy buyers out there.

What You Can Expect From Us in 2012

As we strive to continue to provide our esteemed and valued clients with useful and valuable information that can be implemented with our without our help, we promise to bring you more exciting topics, great ideas and insightful information that will help making homeownership or potential homeownership a wonderful endeavor for you and your family.

From our family to yours, we wish you a very Happy Holiday Season and a Happy New Year!

Ten AWESOME Reasons Why You Should List Your Home During the Holidays

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Traditional school of thought dictates that selling a home during the holidays is a bad idea.  People are busy celebrating with their families and will hardly go shopping for a home, right?  Not so!  There are numerous advantages to listing a home during this season and below are ten great reasons to put a home on the market now. 

More serious buyers – Less time wasted

These are people who are interested in buying so there is a far greater chance of actually selling the property.  Nothing is more promising to a seller than a motivated and qualified buyer that knows what they want and is actively seeking to get it.

Fewer Homes On the Market

The less competition there is, the higher the chance there is for homes on the market to sell. Where during the peak season sellers might be dealing with some interest from buyers on their home, nonetheless there is more selection for buyers to choose from and they can stray to another property.

In January Inventory Increases – Chances of Selling Decreases

With so many homeowners assuming the holidays is a taboo time to sell there is a plethora of new listings in January, resulting in a diminished chance of your home selling.  Also, there is a risk that the price you may receive on the home can be less.

Decked Halls Look Great!

Homes are very appealing to prospective buyers when they are decorated for the holidays.  With all the festive décor, lights, greenery and added beauty of the season – the home shows very well and attracts buyers faster than if shown during other times of the year.

More Time To Browse Homes

Buyers have extra time off from work and are on vacation, which translates to a more aggressive buying pattern and more chances of your home being viewed.

Tax Advantages That Benefit the Buyer

Some buyers need to buy a property before the year ends so that they are able to claim a particular credit or exemption on their tax return.  The biggest tax benefit is filing for homestead. This requirement means that they are going to seek out a home and definitely purchase it prior to the New Year. 

Show The Home With Flexibility

Sellers that have their home listed prior to the holidays have the added advantage to be able to “pause” the process so they can celebrate the holidays, essentially not showing the home during a period of time during the break.  When the festivities die down, things can pick up again and the seller has not only managed to save potentially lost time but can also jump right back into the market.

Sell Now For More Money Then Delay Closing

Extended occupancy can be negotiated, leaving both parties the leniency to get through the holiday season and past the New Year so that all sides can rest assured the deal is done but it can follow through at a more convenient time.  For sellers this option is great because they are able to secure a higher selling price on the property before the market is inundated with new listings come January when the selling values drop.

Enjoy Non-Contingent Buyer Freedom

With the home sold, sellers can enjoy non-contingent buyer status during the rest of the slow season and take advantage of the market when there is a flood of new listings upon the New Year. 

Fewer Foreclosures On the Market

Many banks will suspend foreclosure listing during this time of year, especially on properties where there are still families occupying the home.  As a result of this, some of the competition that arises for sellers from low-priced foreclosures can be avoided during the holidays.
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Keep in mind that the idea of your home’s value increasing significantly over the next several months is a myth.  The truth is that housing values likely only go up when consumer income rises.  Pay rates increase at a rate of three to five percent each year and that is about the maximum yearly increase we can expect to see in a home as well.  So if you are wondering whether or not to put your home on the selling market now, or to wait – one important factor is that waiting will not provide much benefit.

You Can REALLY Learn Some Important Things Just By Doing Your Homework About Interest Rates

Like anything else that consumers tend to buy, a home is available under a variety of different plans and packages – only in this case it’s usually packaged in the form of mortgage rates instead. With choices there will be decisions and before you can make a sound decision regarding the purchase of your new home, you need to be armed with as much knowledge as possible. Knowing what to look for in this scenario is key and we’ve put together some important tips that will help you move forward.

Look Beyond the Interest Rates

From the moment you decide you want to purchase a home, the excitement mounts. You’ll start asking and telling your friends, family and colleagues. You’ll begin looking at houses everywhere you go and think about the house from an entirely different perspective now – a buyer’s perspective. And you’ll be thinking about dollar signs. How much will it cost? Will I be able to afford the monthly payments? What all is entailed in the home buying process?

When you do start answering those questions, remember that what’s usually the first thing to consider, interest rates, is not necessarily the most important. Even though you may be able to come away with the “lowest mortgage rates of the season” if you’re not careful, you could also suffer the “highest fees” too. Depending on the entire package, a low interest rate package may not be all that it’s cracked up to be, so it’s important to be full aware of all the facts.

All Lenders Are Not Created Equal

When you are new to the industry, you may not realize the plethora of choices available, including when choosing a lender. Depending on your specific needs, your qualifications and expectations, you can tap into several avenues when considering financing for your home.

BANKS AND MAJOR LENDING INSTITUTIONS
Borrowing from regular to large lending institutions has its advantages but can bog you down too. Not particularly known for their flexibility, it can become difficult when trying to accomplish smaller, more specialized services that may be possible through smaller institutions. Further, there is additional overhead that is rolled into the end figure, something passed on directly to you.

CREDIT UNIONS
This is a favorite option for many prospective homebuyers since credit unions offer excellent values and top-notch service to go along with the regular transactions you would experience anywhere else. The downside, however, is that credit unions only serve their members – and obviously not anyone else.

MORTGAGE BROKERS
By opting to go through a broker, homebuyers can avail any number of rates and products but the cost ends up being higher since the middleman nature of a broker results in additional costs incurred after having to deal with several lenders to get that variety of rates and products. The other ‘ding’ is that brokers earn from selling higher interest rates to the end-consumer.

When in Doubt, Check the GFE Out

Lenders are required to provide home buyers with a Good Faith Estimate, completely outlining important aspects of the sale and pending transaction. With key information about costs, from expenses to closing and other fees – as well as an idea of your expected average monthly payment, the document is a good source of preparation for you. It’s important to study the contents carefully and if possible have a lawyer review it for any glitches or hidden clauses that may hurt you in the long run. The opportunity to thoroughly question anything that doesn’t seem right is there and should be availed if you’re unsure of anything like how certain fees are structured, for instance.

Negotiate Your Way To More House for Less

First-time home buyers often do not realize the potential for successfully negotiating lower interest rates, among other things. Large financial lending institutions with their long processes and industry jargon tend to be intimidating, but at the end of the day the transaction boils down to the purchase of an item, through funds obtained as a loan. While the paperwork can seem daunting, as long as you keep your eye on the bigger picture and keep in mind the simplicity of the transaction, you should be able to negotiate a better deal than the one that is offered originally. Using the services of an experienced industry regular, like your Realtor, is very useful during times likes these, when banks can be intimidating.
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With a little bit of industry savvy, coupled with the knowledge of where to look for the information that will help you, your home buying process and the bottom line can be exactly what you want it to be. With interest rates as historically low as they are these days, by playing your cards right you can easily get into a home that just six months ago would have valued at as much as $40,000 less! With things changing on a daily basis, it’s important to have all your information lined up and ready.

And if you’re a seller, the super low interest rates work in your favor because that means more buyers can potentially qualify for your home.

Everybody wins!