http://www.boston.com/realestate/news/articles/2008/04/20/market_drags/?p1=email_to_a_friend
This link to percentages of distressed properties in the Boston area is pretty interesting. Go to boston.com for the complete article. The news isn't getting any better! It's difficult to remain confident when the news covers only the negative aspect of the market. Currently, there are 36 properties under contract in Beverly. That says Buyers are confident and feel they're getting value! That's GOOD news! When and where do we see those figures reported?
Thursday, April 24, 2008
Wednesday, April 23, 2008
New foreclosure rules as of 4/30/08
We just got word that the market will tighten a little more...not surprising in this "pendulum financing" reactionary market!
According to American Banker, as of the end of April Fannie Mae will adopt higher minimum down payments and credit scores for borrowers with a past foreclosure. They've already changed the minimum time period from four to five years for borrowers to re-establish their creditworthiness for those who have had a foreclosure. Some exceptions may be made for hardship, but don't count on leniency from the government. They're are hard-pressed as the rest of us. They're stretched to the limit...and beyond!
The plan is to be to treat those who "walked away" from their homes differently than those who have the ability to meet their obligations. The government wants to make it more difficult for those borrowers who made no attempt to meet their financial obligations. Not a bad idea!
The other change in the works is tightening the ability to transform primary residences into rentals and then purchasing new homes. I want to know more about that proposal.
I say if you don't HAVE to sell a home, don't. The government can't stop you from owning as many homes as you want. The problem is in the financing disclosures. Those who buy under the pretense of owner occupancy and subsequently treat it as an investment are circumventing the system. That will require additional documentation and possibly regulation.
Let's be careful and not fix this one with a sledge hammer....we're already seeing that pendulum regulation isn't good for anyone!
According to American Banker, as of the end of April Fannie Mae will adopt higher minimum down payments and credit scores for borrowers with a past foreclosure. They've already changed the minimum time period from four to five years for borrowers to re-establish their creditworthiness for those who have had a foreclosure. Some exceptions may be made for hardship, but don't count on leniency from the government. They're are hard-pressed as the rest of us. They're stretched to the limit...and beyond!
The plan is to be to treat those who "walked away" from their homes differently than those who have the ability to meet their obligations. The government wants to make it more difficult for those borrowers who made no attempt to meet their financial obligations. Not a bad idea!
The other change in the works is tightening the ability to transform primary residences into rentals and then purchasing new homes. I want to know more about that proposal.
I say if you don't HAVE to sell a home, don't. The government can't stop you from owning as many homes as you want. The problem is in the financing disclosures. Those who buy under the pretense of owner occupancy and subsequently treat it as an investment are circumventing the system. That will require additional documentation and possibly regulation.
Let's be careful and not fix this one with a sledge hammer....we're already seeing that pendulum regulation isn't good for anyone!
Thursday, April 17, 2008
Appraisals, assessments, market analysis???
I was not surprised to see a number of questions on the chat room about establishing the value of a home. One of the most common points of discussion between owners and REALTORS is the concept of value-pricing v worth-pricing.
Sellers often equate worth and value as being the same. They're not! Worth is a very personal and internally driven number that often tends to be fixed in the mind of the owner. Value, on the other hand, is based on some measure of objective data and, therefore, externally driven.
Getting to the point where you can recognize the difference is a huge step in the right direction if you're thinking of selling your home.
I often get questions about appraisals and assessments, and how they could differ from a recommended list pricing strategy as a result of a Market Analysis.
An appraisal is a formal written report by a licensed appraiser. It can serve any number of purposes such as for estate planning purposes, or refinancing.
An assessment is generally the basis for any community's determination of what revenue they need to generate community service levels and is usually set every three years.
A Market Analysis is an estimation of value based on comparable sold data over a period of time, usually the last six months.
Each may be a separate number! The important thing to remember is that ANY number is not a specific target, but a best guess as to what the value of that property is at that time and for what purpose. Markets change.
Listen carefully to your local real estate professional! They'll guide you through the maze.
Sellers often equate worth and value as being the same. They're not! Worth is a very personal and internally driven number that often tends to be fixed in the mind of the owner. Value, on the other hand, is based on some measure of objective data and, therefore, externally driven.
Getting to the point where you can recognize the difference is a huge step in the right direction if you're thinking of selling your home.
I often get questions about appraisals and assessments, and how they could differ from a recommended list pricing strategy as a result of a Market Analysis.
An appraisal is a formal written report by a licensed appraiser. It can serve any number of purposes such as for estate planning purposes, or refinancing.
An assessment is generally the basis for any community's determination of what revenue they need to generate community service levels and is usually set every three years.
A Market Analysis is an estimation of value based on comparable sold data over a period of time, usually the last six months.
Each may be a separate number! The important thing to remember is that ANY number is not a specific target, but a best guess as to what the value of that property is at that time and for what purpose. Markets change.
Listen carefully to your local real estate professional! They'll guide you through the maze.
Seller Prep Seminar
Thanks to all of you who participated in the Big Move chat room about preparing your home for sale. I really enjoyed your questions and wished I could have gotten to all of them. I was amazed at how many of you wrote in and the range of questions you provided. Feel free to contact me with additional questions. I would be happy to try to answer them if I can. Many of you had asked for the link to the chat, here it is: http://www.boston.com/realestate/bigmove/chats/oconnor_transcript
The Four Points Seminar sponsored by Boston.com, the Boston Globe, and the Greater Boston Association of REALTORS, was a great success and I enjoyed participating in it.
The Four Points Seminar sponsored by Boston.com, the Boston Globe, and the Greater Boston Association of REALTORS, was a great success and I enjoyed participating in it.
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