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Category Archives: MORTGAGE

HOME OWNERSHIP RATES: ARE THEY CRASHING?

“You can make all the excuses you want, but if you are not mentally tough, and you’re not prepared to play every night, you’re not going to win. “ ~ Larry Bird

 

Homeownership Rates: Are They Crashing? | Keeping Current Matters

The Census recently released their 2014 Home ownership Statistics, and many began to worry that Americans have taken a step back from the notion of home ownership.

Easy… Chicken Little

The national homeownership rate peaked in 2004, representing a 69.2% of Americans who bought vs. rented their primary residence. Many have noticed a decline in rates since then and taken that as a bad sign.

However, if you look at the national rate over the last 30 years (1984-2014), you can see that the current homeownership rate has returned closer to the historic norm. 2014 ended the year with a rate of 64% just under the rate in 1985 and 1995.

Homeownership Rates Historically | Keeping Current Matters

Bottom Line

With interest rates and prices still below where experts predict, evaluate your ability to purchase a home with a local real estate professional.

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REAL ESTATE HEADING IN THE “RIGHT DIRECTION”

“If you view all the things that happen to you, both good and bad, as opportunities, then you operate out of a higher level of consciousness.” ~ Les Brown

Real Estate Heading in the “Right Direction” | Keeping Current Matters

The housing market has taken a great turn toward recovery over the last few years. The opinions of the American public toward real estate took longer to recover, until recently.

For the first time since 2006, Americans have an overall positive view of real estate, giving the industry a 12% positive ranking in a Gallup poll.

Americans were asked to rate 24 different business sectors and industries on a five-point scale ranging from “very positive” to “very negative.” The poll was first conducted in 2001, and has been used as an indicator of “Americans’ overall attitudes toward each industry”.

America's View on Real Estate | Keeping Current Matters

Americans’ view of the real estate industry worsened from 2003 to the -40% plummet of 2008.  Gallup offers some insight into the reason for decline:

Prices Dropped

“In late 2006, real estate prices in the U.S. began falling rapidly, and continued to drop. Many homeowners saw their home values plummet, likely contributing to real estate’s image taking a hard hit.”

Housing Bubble

“The large drops in the positive images of banking and real estate in 2008 and 2009 reflect both industries’ close ties to the recession, which was precipitated in large part because of the mortgage-related housing bubble.”

Bottom Line

“Although the image of real estate remains below the average of 24 industries Gallup has tracked, the sharp recovery from previous extreme low points suggests it is heading in the right direction.”

If the news of recovery has you considering homeownership, meet with a local real estate professional to discuss the opportunities that exist in today’s market.

FIELDING A LOW BALL OFFER ON YOUR HOME

“Success is not final, failure is not fatal: it is the courage to continue that counts.” ~ Winston Churchill

pitcher

Consider before you ignore or outright refuse a very low purchase offer for your home. A counter offer and negotiation could turn that low purchase offer into a sale.

You just received a purchase offer from someone who wants to buy your home. You’re excited and relieved, until you realize the purchase offer is much lower than your asking price. How should you respond? Set aside your emotions, focus on the facts, and prepare a counter offer that keeps the buyers involved in the deal.

Check your emotions.

A purchase offer, even a very low one, means someone wants to purchase your home. Unless the offer is laughably low, it deserves a cordial response, whether that’s a counter offer or an outright rejection. Remain calm and discuss with your real estate agent the many ways you can respond to a lowball purchase offer.

Counter the purchase offer.

Unless you’ve received multiple purchase offers, the best response is to counter the low offer with a price and terms you’re willing to accept. Some buyers make a low offer because they think that’s customary, they’re afraid they’ll overpay, or they want to test your limits.

A counter offer signals that you’re willing to negotiate. One strategy for your counter offer is to lower your price, but remove any concessions such as seller assistance with closing costs, or features such as kitchen appliances that you’d like to take with you.

Consider the terms.

Price is paramount for most buyers and sellers, but it’s not the only deal point. A low purchase offer might make sense if the contingencies are reasonable, the closing date meets your needs, and the buyer is pre-approved for a mortgage. Consider what terms you might change in a counteroffer to make the deal work.
Review your comps.

Ask your REALTOR® whether any homes that are comparable to yours (known as “comps”) have been sold or put on the market since your home was listed for sale. If those new comps are at lower prices, you might have to lower your price to match them if you want to sell.

Consider the buyer’s comps.

Buyers sometimes attach comps to a low offer to try to convince the seller to accept a lower purchase offer. Take a look at those comps. Are the homes similar to yours? If so, your asking price might be unrealistic. If not, you might want to include in your counter-offer information about those homes and your own comps that justify your asking price.

If the buyers don’t include comps to justify their low purchase offer, have your real estate agent ask the buyers’ agent for those comps.

Get the agents together.

If the purchase offer is too low to counter, but you don’t have a better option, ask your real estate agent to call the buyer’s agent and try to narrow the price gap so that a counter-offer would make sense. Also, ask your real estate agent whether the buyer (or buyer’s agent) has a reputation for lowball purchase offers. If that’s the case, you might feel freer to reject the offer.

Don’t signal desperation.

Buyers are sensitive to signs that a seller may be receptive to a low purchase offer. If your home is vacant or your home’s listing describes you as a “motivated” seller, you’re signaling you’re open to a low offer.

If you can remedy the situation, maybe by renting furniture or asking your agent not to mention in your home listing that you’re motivated, the next purchase offer you get might be more to your liking.

By: Marcie Geffner

Marcie Geffner is a freelance reporter who has been writing about real estate, home ownership and mortgages for 20 years. She owns a ranch-style house built in 1941 and updated in the 1990s, in Los Angeles.

SHOULD I OR SHOULDN’T I – THAT IS THE QUESTION!

home for sale

 

There are many people out there who debated purchasing a home over the  course of the last year, but ultimately did not. Whatever their reasons were for  delaying, let’s look at whether the decision to wait to buy made sense.  To read  the rest of this article, please click the following link: http://goo.gl/tWiZ78

XERISCAPING – A FUNNY WORD!

XERISCAPING – A FUNNY WORD!
“Forget not that the earth delights to feel your bare feet and the winds long to play with your hair.”  – Khalil Gibran

According to Wikipedia, Xeriscaping “refers to landscaping and gardening in ways that reduce or eliminate the need for supplemental water from irrigation. It is promoted in regions that do not have easily accessible, plentiful, or reliable supplies of fresh water, and is gaining acceptance in other areas as climate patterns shift.”

Xeri, comes from the Greek “xeros,” meaning dry, and “scape,”  is a kind of view or scene. When you put the two words together you have a  landscape with slow-growing, drought-tolerant plants to conserve water and establish a waste-efficient landscape.  Xeriscaping will also reduce the high cost of your water bills and comes in very handy during the drought periods we sometimes have in Florida.

For an in-depth explanation with lots of suggestions for choosing plants please click on the following link – xeriscaping. This link will bring you to the IFAS website, which looks like a newsletter.  There is a plethora of helpful information other than gardening and landscaping.  For example, you can find helpful information on energy, water conservation, waste management, wildlife, natural history, food and other local information.

There is a home on NW 8th Avenue in Gainesville that makes use of one aspect of xeriscaping.  All the plants have been strategically planted so that the water runoff on the property goes to these plants. It is truly a zero maintenance yard in spite of the variety of plants growing there.This home sits next to Rattlesnake creek and boasts a magnificent variety of trees such as:

  • Japanese persimmon
  • grapefruit
  • Orange
  • Satsuma tangerine
  • an avocado tree from Mexico and
  • Three varieties of olive trees
    1. green olive
    2. black olive
    3. brown olive
  • a Hong Kong Orchid tree and/or Mountain Ebony
  • camellias
  • two kinds of Bougainville’s
  • Paw Paw trees, and of course
  • Saw Palmettos

If having all this fruit isn’t enough, the home itself is an architects’ delight with  2 story soaring windows in the family room, an updated kitchen, a mother-in-law suite, a loft overlooking the pool area and a free form salt water pool.

There is a ravine along the back portion of the property, where rattlesnake creek runs, which has a cross-country trail system running through it.   This ravine sustains the life of, and breeding habits of, 60 of the 65 varieties of dragon flies found in Florida.

This home has over 3000 square feet of heated and cooled living space and is located only 8 blocks from the University of Florida in Gainesville. This is not only a great home, but you can purchase it at the great price of only $219,000.00.  This is a pre-approved short sale and the home will not last long on the market. For more information about this great home, please click on the following link: MLS# 329532.

Regarding the slide show below, the smaller pictures are of the home cleaned up when someone who cared about the property was living there.  The larger pictures are of the home in its current condition.  It can very easily be restored to the way it used to look – all it needs is some elbow grease and trimming of the yard. If you would like to take a tour of this property, please call for an appointment at the numbers below.

Jocelyne Grandjean-Brown

CDPE Trained

RE/MAX Professionals

Gainesville, FL 32606

Office: 352-375-1002

Cell: 352-870-9929

This slideshow requires JavaScript.

IT’S ALL IN PERSPECTIVE

IT’S ALL IN PERSPECTIVE

“A budget tells us what we can’t afford, but it doesn’t keep us from buying it.” – William Feather

When it comes to selling you home, everyone has a different perspective on what the price should be.  This is a big problem, especially for Realtors who have studied the market and different subdivisions, and are knowledgeable on the value of a home.  Sometimes there is a wide difference of opinion in pricing the home to sell, between the Realtor and the seller.  I have also found the lender, appraiser and tax assessor also have their opinions.  Following is a pictorial description of the discrepancy of these opinions.  I hope this helps eliminate any confusion current sellers may have.

YOUR HOME AS VIEWED BY….

YOURSELF, THE SELLER

YOUR LENDER

YOUR BUYER

YOUR APPRAISER

YOUR TAX ASSESSOR….

DON’T WAIT UNTIL IT’S TOO LATE!

“For most folks, no news is good news; for the press, good news is not news.”  – Gloria Borger

You hear the bad news everywhere you turn. It’s on the television, the Internet, the radio and in print headlines. A lot of negative coverage has been devoted to today’s housing market.  What you don’t hear is the good news about the real estate market and the many reasons why the current real estate market may be beneficial to you.

Bad news sells newspapers and gets high television ratings; therefore, the media has no reason to report the upside of today’s real estate market to the average American. This is where I come in. For example, did you know that approximately 30 percent of homeowners own their home free and clear?

The current market also affords some great opportunities for those looking to purchase a home. First-time homeowners, move-up buyers and investors can all benefit from low home prices, and historically low-interest rates, making now a great time to lock in a long-term mortgage. Also, the large selection of homes and low sales prices make it a great buyer’s market. And did you know that if you buy in a rural area –Alachua, High Springs and Newberry qualify as rural areas –  you may qualify for a USDA loan, which is a 100% loan – a “no money down” loan.

Ultimately, though, these favorable conditions will go away. As inflation rises, so do interest rates. If you are looking to become a homeowner, you need to strike while the iron is hot!

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