Thursday, October 17
According to the California Association of Realtors, there is a sharp decline in the house affordability in the state. Somewhat similar reports are confirmed by the National Association of Home Builders (NAHB) as well as Wells Fargo Bank at the National Level.
According to the Housing Opportunity Index (HOI) of Well Fargo and NAHB, 69.3 percentof house sales in the second quarter of 2013 were considered affordable for families with a median national income of $64,400. The affordability index was 73.7 percent during the first quarter of 2013 using the same national medium income. According to the records, this is the first time when the HOI index is less than 70 percent since 2008.
Housing Affordability Better in Some Parts of US
As mentioned in the reports, Ogden-Clearfield, Utah has been the most affordable county for the 4th consecutive quarter. The HOI for the county was 92.8 percent of families with an area median income of $70,800. However, there was a slight drop in the percentage as compared to the last quarter when the HOI was 93.4% for Ogden-Clearfield, Utah. Utica-Rome, New York came out to be the most affordable small market with an HOI of 97 percent of the families having the area median income of $63,800.
According to the chairman of NAHB, Rick Judson, lower house prices during the economic downfall and affordable mortgage rates have been the primary reason for the historically high affordability rate in the past few years. With a recovery in the national housing market, there has been an improvement in the prices of homes along with other factors such as building supplies, labor cost, and availability of developable spaces.Those getting priced out are searching for deals and fixer uppers through foreclosures and short sales.
David Crowe, the Chief Economist of NAHB, added that the increase in house prices signals the improvement of the housing industry with the median price of homes sold in the 2nd quarter at $202,000 as compared to $185,000 in the 2nd quarter of 2012. The improvement in house prices along with an increase in mortgage rates is the primary reason for lower affordability index. A lot will depend upon the current discussions over the secondary support offered by the Federal government in the secondary mortgage market and possible mortgage interest deduction in the near future.
Top affordability list for leading US housing markets
Top affordability list for small US housing markets
·Vineland-Millville-Bridgeton, New Jersey
These are some of the most affordable counties to purchase a new home. Let us have a look at the least affordable housing counties during the 2nd quarter of 2013.
Top least affordable counties in US housing market
·San Francisco-San Mateo
·Redwood City, California
·Los Angeles-Long Beach-Glendale
·New York-White Plains-Wayne
·New York and New Jersey
Do you think this is a good thing, or the sharp increases are pricing out too many Buyers that could help the housing market recover even more?
Saturday, August 17
For the full blog post please visit the blog post here.
Monday, July 08
In my career as an Arizona Short sale realtor, most home owners know they are upside down, but are unaware of the process of calculating the price of their home.
Are you planning to sell your property? Here is a short guide explaining the factors, which decide the price of a short sale listing.
How does Arizona short sale realtor determine list price of a short sale?
There is a significant difference between the listing price and the actual sales price of a house. Let us find out some important factors and steps involved in calculating the right price of the listing and what determines the sale price.
1. An Arizona short sale realtor will visit you with a Listing Agreement and a price will be negotiated according to the market conditions and other factors like condition. Your realtor will explain the important factors deciding the value of your home including condition of your home, comparative analysis of other properties, current inventory, and sales volume in your area.
2. Your realtor will include the Listing Agreement in the Short Sale Packet and send it to the lien holders on your property.
3. Your lender will send put BPO (Broker Price Opinion) or perform an appraisal to find out the current value of the property. Each lien holder will do their own separate evaluation, using a 3rd party company. They may, however, take the listing price into account.
4. In some cases, your lender may or may not open the price to your realtor. The negotiations usually begin with a certain percentage of the current value of the property.
5. If the value is far above the lender’s budget or the real market value of the house, a dispute may be raised. The short sale realtor can send in supporting information and comps to try to make the pricing more reasonable.
Get help from an expert Arizona Short Sale Realtor
Every lender will perform an evaluation check on your property. However, they are always very particular about the listing value of your house as listed by your realtor. It is always useful to have an experience Arizona short sale realtor in your team. An experienced listing agent will consider the market conditions and quote an appropriate price for your property. A price too low may attract many buyers, but delay the short sale process because the banks pricing is much higher. This may detract Buyers and the home may go to foreclosure. A price too high may detract buyers as well.
The experience of your agent can be a critical difference between your short sale Arizona getting done successfully and the home going to Trustee's sale (foreclosure).
Understanding the role of the seller in Arizona short sale
Does the opinion the seller matter at all? Do not get disappointed.. but the answer is no. Throughout the short sale process, seller is more often like a silent partner and have very little or no participation in the process.
Is there anything beneficial for a seller out of the short sale process? In addition to the end of negative equity, the seller might be paid by the bank.
The amount is not disclosed at the initial level, but the bank offers a minimum of $3,000 credited to the seller after completing an Arizona short sale.
Are you looking for an Arizona short sale realtor? If you are planning to sell your property through an Arizona short sale realtor, call us today at 602-741-1602 for your FREE consultation and home valuation! We are always happy to serve you!
Monday, July 01
Short Sale Arizona & Foreclosure Alternatives take to Radio
Arizona Short Sale Realtor & long-time investor Tracy Royce can attest that it's been quite the ride over the last 5 years to witness the aftermath of the worldwide financial crash. It seems like Phoenix has been just as much as an epicenter to the fallout as Wall Street. With that, every agent left standing was left trying to do short sales, with much bemoaning.
Now, the rising tide is washing out the number of agents willing to help underwater homeowners. Plenty of investors are donning their "We Buy Houses" cards, but either party may be unsure of multiple alternatives to foreclosure.
Royce's show, "Real Estate Rescue", hopes to bridge that gap by offering a one stop shop to homeowners that need to short sale Arizona or sell quickly to a cash buyer. Tracy has worked with homeowners since 2003 and is not only an Arizona Short Sale Realtor, but an experienced investor. She has rehabbed, managed, bought, sold, and been involved with hundreds of short sales, pre-foreclosures, and rentals.
To that effect, she's taking her knowledge to the air. Real Estate Rescue on 1510MoneyRadio is Arizona's only radio show solely dedicated to the Arizona distressed property market. Those needing to sell quickly, get a cash offer, or learn more about their options can listen in every week. An expert guest will be joining Tracy "Royce of Real Estate" to talk about topics such as getting a short sale removed from your credit, financing options after a foreclosure, ins and outs of short sales, and legal advice from an attorney.
And if you're not facing foreclosure? It's OK. "The show is meant to create an informed audience," says Royce, host of Real Estate Rescue. "There's still a lot of myths and confusion around these topics, and we provide a lifeline so if someone you know is facing foreclosure, they have a go-to source."
Real Estate Rescue will feature stories about rescued homes & how the Seller benefited, just like the TV "rescue" shows. Unlike the flipping shows though, quotes Royce "...it's about people, not profits".
To tune in, you can listen every Thursday from noon-1pm AZ time. For more information, visit http://www.moneyradio1510.com/node/486
If you or someone you know is facing foreclosure in Arizona, you can call the Rescue Hotline at 480-420-6240.
Monday, June 17
I wrote a blog on the BiggerPockets Blog last week about what sort of tech do RE investors really need when they get started. Since I got to check out a local investors online training program, I thought it fitting to write some personal thoughts here.
gotten questions from a lot of newbies regarding in-depth training, including
mentorships, online training, and the like. I got a chance to check out Phoenix
investor Cody Sperbers Fast Track Training Program recently and thought I’d
share what I thought. I actually found it to be packed with a lot of information I actually
use in my own business, well laid out, entertaining and engaging (which isn’t
easy to do with training videos!)
program covers A-Z from getting started, marketing, forms, rehab, deal
breakdown, and is easy to navigate through. If you don’t have a local investor
you can learn from side by side every day, the amount of modules provided can
help fill in the gaps. For people trying to learn more than they can through a
blog or book, programs like these can be helpful. Of course you will always
want to do your own due diligence and find mentors, courses, and training that
is right for you. If you can learn from someone that's had success in your own backyard, all the better!
I'll post more reviews as I check out other training programs, tech, and the like that is related to real estate investing.
Thursday, May 16
When it comes to Sellers who short sale Arizona, it is an entirely different scenario against when the Seller has equity. The offer is no longer just between the Seller and Buyer, and thus becomes more complicated.
The lender, investor, and any other lien holders all have to agree on pricing and terms. When the buyer wants to close may have no bearing on the actual closing date. Therefore, it's key to work with an Arizona short sale realtor who can set expectations and keep everyone coordinated.
Sometimes, it is best to educate your buyer’s agent about the Arizona short sale process. Not all Buyers agents are well informed on the short sale process, and in fact each sale and lender is different.
Buyers involvement with a Short Sale Arizona
Let us discuss some important points that a short sale Buyer and their agent need to know:
· The current trend among lenders is to place the house near its market value and there are very rare chances that you may get a steep discount. Especially in hot markets like phoenix, getting a bargain on a short sale Arizona
is becoming more rare.
· For the short sale properties available in “as is” condition, make sure to consider the cost of repairs, occupancy permits, and any similar repairs before making a final offer. Even though you may offer on price, the bank may not see eye to eye, so make sure they are aware of repairs
that need to be made.
· Another important factor in a short sale is that the will of the seller is not enough to close the deal. It is important the seller’s lender approves the price and terms proposed in the offer. Like any other offer, they can accept, reject, or counter the price and terms.
· After the offer has been approved and signed by the seller’s lender, they will expect buyers to close the deal within 30 days. This can be extended in some cases, but other lenders and/or servicers are very strict about it, especially if you are close to the foreclosure date.
· If you are purchasing a short sale arizona
, make sure to stay in the know about the occupancy status of the home. If there are tenants or owners still in the property, keep in touch with the Arizona short sale realtor to coordinate the move out and closing as close together as possible.
· The policies may differ from one lender to another, make sure to confirm the terms of the buyer regarding the closing date, closing terms, and restrictions. They need to be aware of the added disclosures and risks that may come from purchasing a short sale.
· If the buyer’s agent is required to take an emergency or planned vacation, ask them about the concerned party covering for them.
A short sale requires double the effort as compared to any other real estate transaction. In case you don’t have the sufficient time for the process, hire an Arizona short sale realtor who would work as per the situation demands.
At any time in a short sale Arizona, it is important to maintain healthy communication between concerned parties and keep them informed about the proceedings accordingly. This will help turn a normally frustrating process into a win-win-win sale.