1) We need to sell at this price because we need the money.
2) I thought we priced it correctly to begin with.
3) We can always reduce the price later on.
4) Any prospective buyer can just make an offer.
5) Can we just try this price for the first couple of weeks?
When you hear this from someone who wants to sell their home, they don't understand the market and their agent may not be presenting the facts to them on the current market conditions. Also, this seller may only "want" to sell their home. You might even rethink it before you take on a listing and spend your time and efforts marketing an overpriced home in this market.
On the other hand, if someone "needs" to sell their home and they are provided with the current sales information on homes comparable to their own home, and with professional advice, are more likely to price their home to sell in this market.
Harold Crye is right....You must win the Price Contest and the Beauty Contest in order to sell your home today. If you lose in either category, then you will be waiting and waiting to sell your Memphis area Home.
Monday, December 22, 2008
Mortgage Rates Now at 1960's Level
Available mortgage rates are now as low as they were in the early 1960's. Holy cow! What a deal! Even if you are not ready to purchase a home, it may be time to consider refinancing for sure. Be careful when refinancing to make certain that your new rate and payment are beneficial to you and your family.
If you are in the position to purchase a Memphis area home though, now is surely the time. Inventories are still relatively high and sellers are straining to sell. The biggest difference today is that you must have good credit to get a loan.....no exceptions...and also will need funds for a down payment. But if all those things are in place, man is it time to get a fantastic deal on a home. Don't miss out on this prime time to purchase. If the market is not at the bottom..then it is at an all time best time to purchase a new Memphis home for your family.
If you are in the position to purchase a Memphis area home though, now is surely the time. Inventories are still relatively high and sellers are straining to sell. The biggest difference today is that you must have good credit to get a loan.....no exceptions...and also will need funds for a down payment. But if all those things are in place, man is it time to get a fantastic deal on a home. Don't miss out on this prime time to purchase. If the market is not at the bottom..then it is at an all time best time to purchase a new Memphis home for your family.
Thursday, December 18, 2008
Limted Loan Choices for Memphis Home Purchases
In the not so distant past, getting a loan for a mortgage on Memphis Homes, was as easy as opening a bank account, just about anyone could do it! Those days are long gone; there are only two types of mortgage loans left; the loans that are for the people with impeccable credit scores and can afford a large down payment, and the loans that are backed by the Federal Housing Administration (FHA). The FHA loans haven't been the most popular loans in the not to distant past; however, nowadays they are necessary. The FHA loans are now easily one third of all processed loans.
The FHA will insure the mortgage loans owned by the bank with an upfront fee and a monthly premium, however, your credit does not have to be shiny and the down payment can be as low as 3%. The down payment amount is due to increase to 3.5% at the first of 2009. The low down payment is the attraction to this type of loan, which is why many are calling the FHA loans the new Subprime Mortgage. Unlike the subprime market, however, employment and income will be verified to ensure that the mortgage can be covered.
The FHA will insure the mortgage loans owned by the bank with an upfront fee and a monthly premium, however, your credit does not have to be shiny and the down payment can be as low as 3%. The down payment amount is due to increase to 3.5% at the first of 2009. The low down payment is the attraction to this type of loan, which is why many are calling the FHA loans the new Subprime Mortgage. Unlike the subprime market, however, employment and income will be verified to ensure that the mortgage can be covered.
Tuesday, December 09, 2008
Improved Good Faith Estimate will help Memphis Home Buyers
echeouablordFor the first time in more than 30 years, the U.S. Department of Housing and Urban Development has issued long-anticipated mortgage reforms that will help all home buyers to shop for the lowest cost mortgage and avoid costly and potentially harmful loan offers. HUD will require, for the first time ever, that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. HUD estimates its new regulation will save consumers nearly $700 at the closing table.
In announcing HUD's final changes to the regulatory requirements of the Real Estate Settlement Procedures Act (RESPA), HUD Secretary Steve Preston said that changes in the housing market and increases in home foreclosures demands action. "It has been a long road but today we can finally announce a better way to buy homes in America," said Preston. "Consumers need and deserve to know what they're getting themselves into before they sign on the dotted line. After carefully considering the concerns of consumers and the different businesses in the housing sector, we have developed an approach that empowers the average family to shop for the most appropriate loan to meet their needs."Last March, HUD proposed reforms to the longstanding regulatory requirements of the Real Estate Settlement Procedures Act (RESPA) by improving disclosure of the loan terms and closing costs consumers pay when they buy or refinance their home. Last May, HUD extended the rule's comment period to June 12th to allow for more opportunity for comment on the Department's proposed GFE form.Brian Montgomery, HUD's Assistant Secretary of Housing, Federal Housing Commissioner, said, "We have carefully considered the concerns expressed from every corner of the mortgage market in developing this rule. I am convinced that we successfully balanced the needs of consumers with those in the business of homeownership. None of us can lose sight of the fact that millions of Americans simply don't understand all the fine print of their mortgages and this, in many respects, is at the heart of today's mortgage crisis."Since 1974, little has changed about the process Americans endure when they buy and refinance their homes. Now, HUD's final reform will improve disclosure of the key loan terms and closing costs consumers pay when they buy or refinance their home.
HUD received approximately 12,000 comment letters following the proposal of its new RESPA rule. In considering those comments, the Department made considerable modifications to its proposal. For example, HUD originally proposed that settlement agents read a closing script at the closing table and that a copy be provided to borrowers. HUD ultimately discarded the script in favor of a new page on the HUD-1 Settlement Statement that allows consumers to easily compare their final loan terms and closing costs with those listed on their Good Faith Estimate. HUD has shortened the GFE form to three pages including an instructional page to help borrowers understand their loan offer. HUD continues to believe that consumers need to be aware of the key aspects of their loan as well as associated settlement costs.HUD agreed with many commenters’s who suggested the new GFE allow consumers to compare their estimated closing costs with the actual costs included on their HUD-1 Settlement Statement.
HUD's standard Good Faith Estimate
HUD-1 Settlement Statement
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at http://www.hud.gov/ and http://www.espanol.hud.gov/ . For more information about FHA products, please visit http://www.fha.gov/ .
Fact Sheet on HUD's final RESPA Rule
For the first time ever, HUD will require mortgage lenders and brokers to provide borrowers with an easy-to-read standard Good Faith Estimate (GFE) that will clearly answer the key questions they have when applying for a mortgage including:
What's the term of the loan?
Is the interest rate fixed or can it change?
Is there a pre-payment penalty should the borrower choose to refinance at a later date?
Is there a balloon payment?
What are total closing costs?
HUD estimates that by improving upfront disclosures on the GFE, and limiting the amount estimated charges can change, consumers will save nearly $700 in total closing costs.
HUD will now offer a new page on the HUD-1 Settlement Statement that allows consumers to easily compare their final closing costs and loan terms with those listed on the GFE.
HUD's new Good Faith Estimate has been reduced from four to three pages; including an instructional page to help borrowers better understand their loan offer. In addition, the GFE will consolidate closing costs into major categories to prevent junk fees and display total estimated settlement charges prominently on the first page so the consumer can easily compare loan offers. HUD will specify the closing costs that can and cannot change at settlement. If a fee changes, HUD will limit the amount it can change.
To help borrowers compare their Good Faith Estimate with their HUD-1 Settlement Statement, each designated line on the final HUD-1 will now include a reference to the relevant line from the GFE. Borrowers will now be able to easily compare their estimated and actual cost.
.
HUD will require lender payments to mortgage brokers (often called Yield Spread Premiums) to be disclosed in a more meaningful way. These payments are directly dependent on the interest rates that consumers agree to. To ensure that HUD's new requirement will not create a consumer bias against brokers, the Department did rigorous consumer testing and found the new Good Faith Estimate helped consumers to select the lowest cost loan nine-out-of-10 times, regardless of whether the loan was originated by a lender or a broker.
Loan originators will be required to provide borrowers their Good Faith Estimate three days after the loan originator's receipt of all necessary information. To facilitate shopping, loan originators could not require verification of GFE information (tax returns etc.) until after the applicant makes the decision to proceed.
HUD will allow lenders and settlement service providers to correct potential violations of RESPA's new disclosure and tolerance requirements. Lenders and settlement service providers will now have 30 days from the date of closing to correct errors or violations and repay consumers any overcharges.
The new, standardized GFE and revised HUD-1 will not be required until January 1, 2010
In announcing HUD's final changes to the regulatory requirements of the Real Estate Settlement Procedures Act (RESPA), HUD Secretary Steve Preston said that changes in the housing market and increases in home foreclosures demands action. "It has been a long road but today we can finally announce a better way to buy homes in America," said Preston. "Consumers need and deserve to know what they're getting themselves into before they sign on the dotted line. After carefully considering the concerns of consumers and the different businesses in the housing sector, we have developed an approach that empowers the average family to shop for the most appropriate loan to meet their needs."Last March, HUD proposed reforms to the longstanding regulatory requirements of the Real Estate Settlement Procedures Act (RESPA) by improving disclosure of the loan terms and closing costs consumers pay when they buy or refinance their home. Last May, HUD extended the rule's comment period to June 12th to allow for more opportunity for comment on the Department's proposed GFE form.Brian Montgomery, HUD's Assistant Secretary of Housing, Federal Housing Commissioner, said, "We have carefully considered the concerns expressed from every corner of the mortgage market in developing this rule. I am convinced that we successfully balanced the needs of consumers with those in the business of homeownership. None of us can lose sight of the fact that millions of Americans simply don't understand all the fine print of their mortgages and this, in many respects, is at the heart of today's mortgage crisis."Since 1974, little has changed about the process Americans endure when they buy and refinance their homes. Now, HUD's final reform will improve disclosure of the key loan terms and closing costs consumers pay when they buy or refinance their home.
HUD received approximately 12,000 comment letters following the proposal of its new RESPA rule. In considering those comments, the Department made considerable modifications to its proposal. For example, HUD originally proposed that settlement agents read a closing script at the closing table and that a copy be provided to borrowers. HUD ultimately discarded the script in favor of a new page on the HUD-1 Settlement Statement that allows consumers to easily compare their final loan terms and closing costs with those listed on their Good Faith Estimate. HUD has shortened the GFE form to three pages including an instructional page to help borrowers understand their loan offer. HUD continues to believe that consumers need to be aware of the key aspects of their loan as well as associated settlement costs.HUD agreed with many commenters’s who suggested the new GFE allow consumers to compare their estimated closing costs with the actual costs included on their HUD-1 Settlement Statement.
HUD's standard Good Faith Estimate
HUD-1 Settlement Statement
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at http://www.hud.gov/ and http://www.espanol.hud.gov/ . For more information about FHA products, please visit http://www.fha.gov/ .
Fact Sheet on HUD's final RESPA Rule
For the first time ever, HUD will require mortgage lenders and brokers to provide borrowers with an easy-to-read standard Good Faith Estimate (GFE) that will clearly answer the key questions they have when applying for a mortgage including:
What's the term of the loan?
Is the interest rate fixed or can it change?
Is there a pre-payment penalty should the borrower choose to refinance at a later date?
Is there a balloon payment?
What are total closing costs?
HUD estimates that by improving upfront disclosures on the GFE, and limiting the amount estimated charges can change, consumers will save nearly $700 in total closing costs.
HUD will now offer a new page on the HUD-1 Settlement Statement that allows consumers to easily compare their final closing costs and loan terms with those listed on the GFE.
HUD's new Good Faith Estimate has been reduced from four to three pages; including an instructional page to help borrowers better understand their loan offer. In addition, the GFE will consolidate closing costs into major categories to prevent junk fees and display total estimated settlement charges prominently on the first page so the consumer can easily compare loan offers. HUD will specify the closing costs that can and cannot change at settlement. If a fee changes, HUD will limit the amount it can change.
To help borrowers compare their Good Faith Estimate with their HUD-1 Settlement Statement, each designated line on the final HUD-1 will now include a reference to the relevant line from the GFE. Borrowers will now be able to easily compare their estimated and actual cost.
.
HUD will require lender payments to mortgage brokers (often called Yield Spread Premiums) to be disclosed in a more meaningful way. These payments are directly dependent on the interest rates that consumers agree to. To ensure that HUD's new requirement will not create a consumer bias against brokers, the Department did rigorous consumer testing and found the new Good Faith Estimate helped consumers to select the lowest cost loan nine-out-of-10 times, regardless of whether the loan was originated by a lender or a broker.
Loan originators will be required to provide borrowers their Good Faith Estimate three days after the loan originator's receipt of all necessary information. To facilitate shopping, loan originators could not require verification of GFE information (tax returns etc.) until after the applicant makes the decision to proceed.
HUD will allow lenders and settlement service providers to correct potential violations of RESPA's new disclosure and tolerance requirements. Lenders and settlement service providers will now have 30 days from the date of closing to correct errors or violations and repay consumers any overcharges.
The new, standardized GFE and revised HUD-1 will not be required until January 1, 2010
Saturday, November 15, 2008
Memphis...One of the South's largest Healthcare Cities
Did you know that Memphis was one of the south's largest health care and medical products cities? One in nine jobs in the area is health care related bringing a $10.4 billion annual economic impact along with it. There are 2400 companies with nearly a $2 billion annual payroll.
Memphis is the second largest U.S. medical device manufacturing center.
St. Jude Children's Research Hospital is located here with $1.2 billion expansion in the last 5 years. St Jude is a renowned Nobel prize-winning institution adding over 1200 scientists to it's staff.
University of Tennessee Medical School is also located in Memphis.
Let's not forget to mention 19 area hospitals with over 4100 beds.
The Southern college of Optometry is also located in Memphis.
The Shea Ear Clinic, also world renowned, is located here as well.
So now you can see that along with the other major companies with headquarters or distribution centers located here, where all the Memphis real estate is selling.
Memphis is the second largest U.S. medical device manufacturing center.
St. Jude Children's Research Hospital is located here with $1.2 billion expansion in the last 5 years. St Jude is a renowned Nobel prize-winning institution adding over 1200 scientists to it's staff.
University of Tennessee Medical School is also located in Memphis.
Let's not forget to mention 19 area hospitals with over 4100 beds.
The Southern college of Optometry is also located in Memphis.
The Shea Ear Clinic, also world renowned, is located here as well.
So now you can see that along with the other major companies with headquarters or distribution centers located here, where all the Memphis real estate is selling.
Thursday, November 13, 2008
Memphis...North America's Distribution Center
Did you know this about Memphis...?
Memphis International Airport
____#1 busiest cargo airport in the WORLD...handling 2.5 million metric tons of cargo
____ Economic impact statewide of $20.7 billion annually...largest in the state
____ Local distribution centers account for 1 in 4 jobs in the Memphis area
Memphis a leading intermodal Logistics Center
____#1 in percent of logistics workforce
____#1 busiest cargo airport in the world
____#3 in Class 1 railroad service in the U.S.
____#4 U.S. inland port
____#3 trucking corridor in the U.S.
FedX World Headquarters and World Hub
____ $1 billion expansion in the last 7 years
____30,000 local employees
____Location of FedX World Technology Center
____Flying the largest cargo airplanes in the world..nightly..each able to handle loads
of 30 tractor trailers
Memphis is also a major UPS hub
Source Memphis Regional Chamber of Commerce
Memphis International Airport
____#1 busiest cargo airport in the WORLD...handling 2.5 million metric tons of cargo
____ Economic impact statewide of $20.7 billion annually...largest in the state
____ Local distribution centers account for 1 in 4 jobs in the Memphis area
Memphis a leading intermodal Logistics Center
____#1 in percent of logistics workforce
____#1 busiest cargo airport in the world
____#3 in Class 1 railroad service in the U.S.
____#4 U.S. inland port
____#3 trucking corridor in the U.S.
FedX World Headquarters and World Hub
____ $1 billion expansion in the last 7 years
____30,000 local employees
____Location of FedX World Technology Center
____Flying the largest cargo airplanes in the world..nightly..each able to handle loads
of 30 tractor trailers
Memphis is also a major UPS hub
Source Memphis Regional Chamber of Commerce
Sunday, November 09, 2008
Memphis Area Real Estate Home Sales
Memphis Area Real Estate Sales
Sales for the Memphis area picked up in September and then slowed down a bit in October. But that did not stop the lookers and those testing the waters. Interest in the Memphis real estate market is one of the fastest growing in the nation, according to Realtor.com.
During September, search activity for real estate listings in the Memphis MSA rose 17.5 percent compared to September 2007, which makes Memphis “one of the nation’s markets where search activity by potential homebuyers has grown the fastest,” according to the official Web site of the National Association of Realtors.
These searches were a combination of investors, local buyers and sellers, and out of the area buyers who are hoping to sell their homes soon. The election is over now. Banks have capitol provided by the bailout package. Let’s hope they start using those funds provided by this package to begin funding loans for home buyers. No one wants any more bad loans…but it’s time to loosen up and get this market started again. Any questions?
Sales for the Memphis area picked up in September and then slowed down a bit in October. But that did not stop the lookers and those testing the waters. Interest in the Memphis real estate market is one of the fastest growing in the nation, according to Realtor.com.
During September, search activity for real estate listings in the Memphis MSA rose 17.5 percent compared to September 2007, which makes Memphis “one of the nation’s markets where search activity by potential homebuyers has grown the fastest,” according to the official Web site of the National Association of Realtors.
These searches were a combination of investors, local buyers and sellers, and out of the area buyers who are hoping to sell their homes soon. The election is over now. Banks have capitol provided by the bailout package. Let’s hope they start using those funds provided by this package to begin funding loans for home buyers. No one wants any more bad loans…but it’s time to loosen up and get this market started again. Any questions?
Tuesday, October 28, 2008
Memphis Home Sales still lagging behind National Sales
The National Association of Realtors annouced a 5.5% increase in existing home sales nationally during September. This is a glimmer of hope that we have hit bottom and may see a light at the end of the tunnel.
Since it did take some time before the Memphis Homes market was effected by the national epidemic of foreclosures and bubbles bursting, it will also take some time before Memphis home sales will feel any effect from a turnaround in the national market. It's kind of like a trickling down effect. The downturn in housing nationally started in 2005, but the Memphis market did not really start downturning until the middle of 2006. The reason is that our market here is normally much more stable and has no skyrocketing home values that will burst as do other markets around the country. Once sales pick up in other markets, our home sales will pick up some steam as well.
Times and conditions seem to be working towards a recovery of some type. A mix of low rates, lower home prices, and tax credits makes a perfect opportunity for first time home buyers and investors to jump into the home buying market. The biggest home discounts are of course foreclosures and distress sales. Other homes on the market may only have 5% to 10% decreases as these are sellers who are selling due to normal life events and not due to distress. Home inventory is till higher than normal, but latest figures show that listed homes are now down by 25% from their highs just a few months back.
The market appears to be headed for better times, but we may not see the best results until after the elections and after the holidays.
Since it did take some time before the Memphis Homes market was effected by the national epidemic of foreclosures and bubbles bursting, it will also take some time before Memphis home sales will feel any effect from a turnaround in the national market. It's kind of like a trickling down effect. The downturn in housing nationally started in 2005, but the Memphis market did not really start downturning until the middle of 2006. The reason is that our market here is normally much more stable and has no skyrocketing home values that will burst as do other markets around the country. Once sales pick up in other markets, our home sales will pick up some steam as well.
Times and conditions seem to be working towards a recovery of some type. A mix of low rates, lower home prices, and tax credits makes a perfect opportunity for first time home buyers and investors to jump into the home buying market. The biggest home discounts are of course foreclosures and distress sales. Other homes on the market may only have 5% to 10% decreases as these are sellers who are selling due to normal life events and not due to distress. Home inventory is till higher than normal, but latest figures show that listed homes are now down by 25% from their highs just a few months back.
The market appears to be headed for better times, but we may not see the best results until after the elections and after the holidays.
Thursday, October 23, 2008
My Memphis Home Needs to be More Appealing to Snag a Home Buyer
The combination of a high-rate of foreclosures, qualified buyers being farer and few in between, and with record amounts of homes inventory to compete with; sellers must up the ante to convince potential homebuyers that their property offers what many want most: Top value for dollar and move in ready. If your Memphis Home needs some help, then read on.
Here are some fast inexpensive fixes that will help your home standout with homebuyers. In the past 8+ years, most new homes in our area have included items that use to be considered upgrades. Granite or hard surface counter tops, stainless steel appliances, tile, wood flooring, hand textured & finished walls, crown molding, the list goes on. For those of us selling our homes built before these construction trends, and whose homes may have Formica counter tops, painted appliances, worn carpeting, some tile, wallpaper, and other dated items, then you may need to invest some time, and possibly money to compete with homes selling with these and more upgrades.
Buff up curb appeal. You’ve heard it before, but it’s critical to get buyers to want to look on the inside. Be objective. View your home from the street. Check the condition of the landscaping, paint, roof, shutters, front door, windows, and even how window treatments look from the outside. Clean your windows inside and out, it’s well worth the time & effort. The home’s first impression is on the photo seen in the MLS and then when walking up to your front door. Knock down the cob webs and hose it down to clean it up.
Paint is cheap and an easy way to update. Don’t get too avant-garde with jarring pinks, oranges, and purples. Recommend soft colors that say welcome, and lead the eye from room to room, with flatter and neutral tones. Remove dated wallpaper that you are use to and freshen up each room.
Upgrade the kitchen and bathroom. These make-or-break rooms can spur a sale. Make each of these rooms squeaky clean and clutter-free. Update the drawer pulls, sinks, and faucets. Besides the living space and floor plan, these two rooms absolutely must stand out.
Buyers favor wood over carpet. Consider installing a wood veneer or laminate, as these are popular and less costly than more expensive styles of hardwood flooring. Replace worn vinyl kitchen floors with new updated vinyl squares or better yet, tile.
Clean out and organize closets. Start sorting and organize your piles. Donate old clothing to charity or have a yard sale. Closets must be only half-full so buyers can visualize fitting their stuff in.
Update window treatments. Buyers want light and views, not dated, fancy-schmancy drapes that darken. To diffuse light and add privacy, consider energy-efficient shades and blinds.
Hire a home inspector.
Do a preemptive strike, since busy homeowners seek maintenance-free living. Fix problems before you list the home and then display receipts and wait for buyers to offer kudos to sellers for being so responsible. It’s also a nice perk to a buyer as you may have just saved them the cost of a home inspector.
Here are some fast inexpensive fixes that will help your home standout with homebuyers. In the past 8+ years, most new homes in our area have included items that use to be considered upgrades. Granite or hard surface counter tops, stainless steel appliances, tile, wood flooring, hand textured & finished walls, crown molding, the list goes on. For those of us selling our homes built before these construction trends, and whose homes may have Formica counter tops, painted appliances, worn carpeting, some tile, wallpaper, and other dated items, then you may need to invest some time, and possibly money to compete with homes selling with these and more upgrades.
Buff up curb appeal. You’ve heard it before, but it’s critical to get buyers to want to look on the inside. Be objective. View your home from the street. Check the condition of the landscaping, paint, roof, shutters, front door, windows, and even how window treatments look from the outside. Clean your windows inside and out, it’s well worth the time & effort. The home’s first impression is on the photo seen in the MLS and then when walking up to your front door. Knock down the cob webs and hose it down to clean it up.
Paint is cheap and an easy way to update. Don’t get too avant-garde with jarring pinks, oranges, and purples. Recommend soft colors that say welcome, and lead the eye from room to room, with flatter and neutral tones. Remove dated wallpaper that you are use to and freshen up each room.
Upgrade the kitchen and bathroom. These make-or-break rooms can spur a sale. Make each of these rooms squeaky clean and clutter-free. Update the drawer pulls, sinks, and faucets. Besides the living space and floor plan, these two rooms absolutely must stand out.
Buyers favor wood over carpet. Consider installing a wood veneer or laminate, as these are popular and less costly than more expensive styles of hardwood flooring. Replace worn vinyl kitchen floors with new updated vinyl squares or better yet, tile.
Clean out and organize closets. Start sorting and organize your piles. Donate old clothing to charity or have a yard sale. Closets must be only half-full so buyers can visualize fitting their stuff in.
Update window treatments. Buyers want light and views, not dated, fancy-schmancy drapes that darken. To diffuse light and add privacy, consider energy-efficient shades and blinds.
Hire a home inspector.
Do a preemptive strike, since busy homeowners seek maintenance-free living. Fix problems before you list the home and then display receipts and wait for buyers to offer kudos to sellers for being so responsible. It’s also a nice perk to a buyer as you may have just saved them the cost of a home inspector.
Tuesday, October 14, 2008
Memphis Real Estate Market Trends
Where is the Memphis real estate market headed? With all the foreclosures and roller coaster ride on Wall Street, many home buyers and home sellers need to keep up with what they should expect from today's real estate market.
Urban areas are making a comeback, along with smaller homes. Many areas of downtown Memphis, midtown and East Memphis are still very popular. Shorter commutes give you more family time and cut down on the gas bill. Smaller homes offer lower utilities which have also recently increased in price.
Flipping properties is almost at a stand still, but that has not stopped investors from making timely and smart purchases while prices are low and sellers are anxious. So the strategy is buy and hold until the market picks up.
Many homeowners are going green by adding energy efficient bulbs, more insulation in attics, and on-demand hot water with the new tankless systems. Even builders have picked up on adding these green features to help sell their inventories.
We can all hope that the Feds have picked the right path to help straighten out the mess that they got us all into in the first place.
Urban areas are making a comeback, along with smaller homes. Many areas of downtown Memphis, midtown and East Memphis are still very popular. Shorter commutes give you more family time and cut down on the gas bill. Smaller homes offer lower utilities which have also recently increased in price.
Flipping properties is almost at a stand still, but that has not stopped investors from making timely and smart purchases while prices are low and sellers are anxious. So the strategy is buy and hold until the market picks up.
Many homeowners are going green by adding energy efficient bulbs, more insulation in attics, and on-demand hot water with the new tankless systems. Even builders have picked up on adding these green features to help sell their inventories.
We can all hope that the Feds have picked the right path to help straighten out the mess that they got us all into in the first place.
Sunday, September 21, 2008
Icing on the Financial Cake..Memphis Viewpoint
A serious faced President Bush acknowledged risks to all taxpayers in what will be the most sweeping government intervention in the rescue of failing financial institutions since the 1929 stock market crash. Bush declared though "The risk of not acting would be far higher."
The jaw dropping price tag of over half a trillion dollars is the projected cost to taxpayers to stave off financial catastrophe and takeover the bad debt created by worthless mortgages now held by numerous financial institutions. Relieved investors sent stocks soaring on Wall Street and around the globe when the news of the bailout was made public by the federal government.
The Feds stepped in to help save Bear Stearns from total collapse just last Spring and backstopped the purchase of Bear by JP Morgan. Then, in just the last month, the Feds took control of Fannie Mae and Freddie Mac, both reeling from bad loans and then of course they also saved the world's largest insurance company, AIG, from going under. The current move this week hopefully will prop up the economy from further collapse, as loans had been created and issued to current homeowners who had no way to pay their mortgages....even from the beginning...they had no way to pay. But greed had stepped in and the issuing mortgage companies really did not care if the loans could be paid as they knew they would be selling the loans off in packaged form, to Wall Street, thus passing the time bomb along to others to contend with down the road. Here we are now....down the road...and greed did in fact destroy the confidence and backbone of our economy. Any questions?
Other major steps being taken by the Feds include giving money market funds the same federal protection, at least temporarily, that now applies to savings and checking accounts and certificates of deposit at banks. Also, the securities and exchange commission acted separately to block short-selling of stocks in financial securities. This type of investing has been blamed for accelerating the plunge in stock prices of banks and other financial institutions. So again, you see, that investors are partially controlling both the markets ups, like oil prices, and downs, like stock prices. Greed has really sparked the flames that is taking our economy to its knees.
It looks like there will be allot of crawling before we can get up and walk again.
The jaw dropping price tag of over half a trillion dollars is the projected cost to taxpayers to stave off financial catastrophe and takeover the bad debt created by worthless mortgages now held by numerous financial institutions. Relieved investors sent stocks soaring on Wall Street and around the globe when the news of the bailout was made public by the federal government.
The Feds stepped in to help save Bear Stearns from total collapse just last Spring and backstopped the purchase of Bear by JP Morgan. Then, in just the last month, the Feds took control of Fannie Mae and Freddie Mac, both reeling from bad loans and then of course they also saved the world's largest insurance company, AIG, from going under. The current move this week hopefully will prop up the economy from further collapse, as loans had been created and issued to current homeowners who had no way to pay their mortgages....even from the beginning...they had no way to pay. But greed had stepped in and the issuing mortgage companies really did not care if the loans could be paid as they knew they would be selling the loans off in packaged form, to Wall Street, thus passing the time bomb along to others to contend with down the road. Here we are now....down the road...and greed did in fact destroy the confidence and backbone of our economy. Any questions?
Other major steps being taken by the Feds include giving money market funds the same federal protection, at least temporarily, that now applies to savings and checking accounts and certificates of deposit at banks. Also, the securities and exchange commission acted separately to block short-selling of stocks in financial securities. This type of investing has been blamed for accelerating the plunge in stock prices of banks and other financial institutions. So again, you see, that investors are partially controlling both the markets ups, like oil prices, and downs, like stock prices. Greed has really sparked the flames that is taking our economy to its knees.
It looks like there will be allot of crawling before we can get up and walk again.
Saturday, August 23, 2008
Memphis Home Purchase - Down Payment Assistance
There has been much concern as of late, among both buyers and sellers, with regards to the changes produced by the new Housing Bill that has passed in Congress and will go into effect in October of this year. This bill, intending to help the current real estate market conditions, may do just as much harm, by not allowing seller participation in down payment assistance and virtually eliminating government down payment assistance programs.
Apparently, someone in Congress has realized this glitch, which could cause more harm than the bill may repair in the market.
There may be hope on the horizon though, as Nehemiah has announced a new bill. This bill was introduced on July 31st of this year; The FHA Seller-Financial Down payment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694). If this bill is passed and signed into law, it would allow down payment assistance to continue indefinitely.
Home buyers and sellers should contact their representatives to voice their desire to have this bill passed.
Apparently, someone in Congress has realized this glitch, which could cause more harm than the bill may repair in the market.
There may be hope on the horizon though, as Nehemiah has announced a new bill. This bill was introduced on July 31st of this year; The FHA Seller-Financial Down payment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694). If this bill is passed and signed into law, it would allow down payment assistance to continue indefinitely.
Home buyers and sellers should contact their representatives to voice their desire to have this bill passed.
Monday, July 28, 2008
Memphis Home Loan Rates
In today’s real estate market, when you find advertised loan rates on the Internet or any advertised home loan rate, they may not be specific to YOUR loan. Unlike years past, your rate will be specific to your situation. Lenders haven't always relied on your situation to determine your rate because it was always assumed that home values continue to go up in value. Well, of course that has changed, which is why we also now see changes in the way rates are figured. There are more defaults/foreclosures on loans around the country and investors are now looking at every angle to get a little higher return on their money to offset this risk.
In today’s marketplace, the lender will need to know your credit score, loan amount/loan to value, down payment amount, property type (primary, investment property, second home), income verification, debt ratio, employment verification, and more just to give you a proper rate quote. If anyone gives you a quote and has not had an in-depth conversation with you about your situation and your needs, most likely it will be inaccurate. Even if your current credit scores reflect some minimal flaws in your record, you might have a slightly higher rate because of it. Make sure you are dealing with a reputable lender and ask someone you know and trust to refer you to someone who they know to be an ethical loan originator. You need a mortgage advisor who understands the process and can see your loan through to closing with no surprises.If you follow this process and then get a rate that you like…lock it in!! There have been up to 4 rate changes per day and new rates come out every morning. Most lenders will do this for you with a verbal commitment. The markets are as volatile as ever, so take out the risk of higher payments and lock it in! Today’s rates are still some of the best in recent history.
In today’s marketplace, the lender will need to know your credit score, loan amount/loan to value, down payment amount, property type (primary, investment property, second home), income verification, debt ratio, employment verification, and more just to give you a proper rate quote. If anyone gives you a quote and has not had an in-depth conversation with you about your situation and your needs, most likely it will be inaccurate. Even if your current credit scores reflect some minimal flaws in your record, you might have a slightly higher rate because of it. Make sure you are dealing with a reputable lender and ask someone you know and trust to refer you to someone who they know to be an ethical loan originator. You need a mortgage advisor who understands the process and can see your loan through to closing with no surprises.If you follow this process and then get a rate that you like…lock it in!! There have been up to 4 rate changes per day and new rates come out every morning. Most lenders will do this for you with a verbal commitment. The markets are as volatile as ever, so take out the risk of higher payments and lock it in! Today’s rates are still some of the best in recent history.
Tuesday, July 08, 2008
OTHER RESULTS OF A SLOWED REAL ESTATE MARKET
The Memphis real estate market has slid into the biggest buyer’s market in years, and shows no sign of a recovery in the short term. By recovery, I mean, a more stable market where sellers can anticipate a better return on their home investment. The Memphis home market has “dominoed” into this state because of the national real estate market. If misery loves company, then scoot over. The world real estate market is also faltering as many of the investors in defaulted home loans span the globe and are not contained to the local USA.
Here is an example of that:
New figures from the Real Estate Institute of New Zealand (Reinz) released recently, show the number of real estate agents, salespeople, licensees and branch managers in Canterbury-Westland fell 8 per cent in the first half of this year. Nationally, the 19,059 people working in the industry in December 2007 fell to 17,453 at the end of June. The 2201 people left working in the Canterbury-Westland district shared 619 sales in May less than half of the 1276 sold in May 2007.
This market has become devastating to families around the world in free markets where real estate sales have blossomed over the last decade.
There is not a doubt that many Memphis real estate agents have also left the industry. This may help in the long run, as many agents were either part time and did not offer full service to clients, or they really had just started in the last year or two and were lucky enough to “ride the wave” of the home-selling market. Now that this is over, these agents don’t know how to sell or prospect and eventually throw in the towel. In the long run, this is a good thing for the consumer home-buyer.
Here is an example of that:
New figures from the Real Estate Institute of New Zealand (Reinz) released recently, show the number of real estate agents, salespeople, licensees and branch managers in Canterbury-Westland fell 8 per cent in the first half of this year. Nationally, the 19,059 people working in the industry in December 2007 fell to 17,453 at the end of June. The 2201 people left working in the Canterbury-Westland district shared 619 sales in May less than half of the 1276 sold in May 2007.
This market has become devastating to families around the world in free markets where real estate sales have blossomed over the last decade.
There is not a doubt that many Memphis real estate agents have also left the industry. This may help in the long run, as many agents were either part time and did not offer full service to clients, or they really had just started in the last year or two and were lucky enough to “ride the wave” of the home-selling market. Now that this is over, these agents don’t know how to sell or prospect and eventually throw in the towel. In the long run, this is a good thing for the consumer home-buyer.
Friday, June 20, 2008
LOWERING LISTING PRICE OF MEMPHIS REAL ESTATE
Many Memphis home sellers are wondering when and how much to lower their listing prices in order to sell their homes. Memphis is not a market where home values shot upwards each year, which is why the seller's dollar goes so far in purchasing Memphis real estate.
It may be time to "get real" about pricing to sell, because it seems like buyers are shopping less with emotions and more "looking for the best deal" in mind. For that reason, it may be time for a seller's reality check before their home sits on the market for too long. The following may be signs of being overpriced for the current market:
1) Very few or no showings. The first couple of weeks on the market is the best time to be priced right along with having your home in order.
2) Some showings..but no offers.
3)Similar homes in the area selling for less. The median home selling price must be continually monitored and your home's asking price must be in line with current home selling prices.
4)Repeated negative feedback. In this case, the seller either needs to correct issues causing the negative feedback, or if not correctable, the change the asking price accordingly.
In this market, it is easy to "blow it" by overpricing.
It may be time to "get real" about pricing to sell, because it seems like buyers are shopping less with emotions and more "looking for the best deal" in mind. For that reason, it may be time for a seller's reality check before their home sits on the market for too long. The following may be signs of being overpriced for the current market:
1) Very few or no showings. The first couple of weeks on the market is the best time to be priced right along with having your home in order.
2) Some showings..but no offers.
3)Similar homes in the area selling for less. The median home selling price must be continually monitored and your home's asking price must be in line with current home selling prices.
4)Repeated negative feedback. In this case, the seller either needs to correct issues causing the negative feedback, or if not correctable, the change the asking price accordingly.
In this market, it is easy to "blow it" by overpricing.
Thursday, June 19, 2008
FOUR GREAT REASONS TO PURCHASE A MEMPHIS HOME NOW!!
The National Association of Realtors and of course the Memphis Area Association of Realtors, are doing their best to help stimulate the home buying and selling market. Each organization has programs in place to keep the market alive and well no matter how much bad press it gets. As a matter of fact, much of the bad press simply makes recovery of our market even harder.
At any rate, there are good reasons to buy a home in the Memphis real estate market and here they are.
1) Mortgage rates are still hovering around 40 year lows. Today, rates are around the 6% mark as they were 45 years ago!
2) Inventory is at a 15 year high, with over 12000 homes for sale in the Memphis real estate market. Normally, there are around 7 to 8 thousand homes on the market. This gives more choices to find the right home for your family.
3) FHA is just now announcing higher low amounts available in our area for individual mortgages, allowing higher dollar purchases for those who qualify.
4) If you have been renting while waiting to purchase, you are losing out on the two best tax deductions of mortgage interest and property taxes. Both of those make home ownership a much better financial position rather than paying the mortgage on rental property for someone else while your funds give you no return when they are used for rent rather than a mortgage payement.
So there you are….four good reasons to Hop the Fence and find the home that will suit you and your family.
At any rate, there are good reasons to buy a home in the Memphis real estate market and here they are.
1) Mortgage rates are still hovering around 40 year lows. Today, rates are around the 6% mark as they were 45 years ago!
2) Inventory is at a 15 year high, with over 12000 homes for sale in the Memphis real estate market. Normally, there are around 7 to 8 thousand homes on the market. This gives more choices to find the right home for your family.
3) FHA is just now announcing higher low amounts available in our area for individual mortgages, allowing higher dollar purchases for those who qualify.
4) If you have been renting while waiting to purchase, you are losing out on the two best tax deductions of mortgage interest and property taxes. Both of those make home ownership a much better financial position rather than paying the mortgage on rental property for someone else while your funds give you no return when they are used for rent rather than a mortgage payement.
So there you are….four good reasons to Hop the Fence and find the home that will suit you and your family.
Wednesday, June 18, 2008
More Memphis Foreclosures
I wanted to follow up on my list post. Some clients have found a web site while they are looking to find a foreclosure windfall to purchase. This web site is Realty Trac. This web site gives limited information regarding foreclosed properties, in an effort to get individuals to pay them the membership fee to join their web site. Once you join, you are able to get all the information about the properties they have on their site.
Now let's talk about those properties on their site. Several of the homes our clients found, did have enough information, that I could find them in the local MLS. They were listed for anywhere between 45k to 80k more than the price mentioned in Realty Trac. Today, they emailed a home showing 94k as a price. The footnote on this property states that :
This property is a Notice of Default. This is the initial document filed by an attorney or trustee on behalf of the foreclosing lender that starts the foreclosure process.
So basically, they are reporting the loan balance and not the asking price for the property once it is listed. This can be deceiving to individuals who don't understand that this web site survives on the membership fees and any information (or lack of information) they can provide to induce you to pay this fee is to their benefit. Thus, they are preying on people, who as mentioned in my last post, are looking for a financial windfall by purchasing a home for pennies on the dollar. This just feeds the notion that most home buyers today can find and purchase homes for half price. Perhaps this is possible in areas of the country where home prices skyrocketed due to loaning practices, but that did not take place in the Memphis area. This is why we were not "on the bubble" as many parts of the country were, and also why our real estate values are pretty solid in fact. That's not to say that we too are not suffering from the "value bubbles" that were in place in different parts of the country. Home buyers that do want to purchase a home in our area, and they are moving from those "bubble affected" areas, find that they can not sell their homes to easily and therefore can not purchase a home here in our area...the bad domino effect.
Now let's talk about those properties on their site. Several of the homes our clients found, did have enough information, that I could find them in the local MLS. They were listed for anywhere between 45k to 80k more than the price mentioned in Realty Trac. Today, they emailed a home showing 94k as a price. The footnote on this property states that :
This property is a Notice of Default. This is the initial document filed by an attorney or trustee on behalf of the foreclosing lender that starts the foreclosure process.
So basically, they are reporting the loan balance and not the asking price for the property once it is listed. This can be deceiving to individuals who don't understand that this web site survives on the membership fees and any information (or lack of information) they can provide to induce you to pay this fee is to their benefit. Thus, they are preying on people, who as mentioned in my last post, are looking for a financial windfall by purchasing a home for pennies on the dollar. This just feeds the notion that most home buyers today can find and purchase homes for half price. Perhaps this is possible in areas of the country where home prices skyrocketed due to loaning practices, but that did not take place in the Memphis area. This is why we were not "on the bubble" as many parts of the country were, and also why our real estate values are pretty solid in fact. That's not to say that we too are not suffering from the "value bubbles" that were in place in different parts of the country. Home buyers that do want to purchase a home in our area, and they are moving from those "bubble affected" areas, find that they can not sell their homes to easily and therefore can not purchase a home here in our area...the bad domino effect.
Friday, June 06, 2008
MEMPHIS REAL ESTATE FORECLOSURES
Memphis homes in foreclosure, like most city’s real estate markets today, are easy to find but not always so easy to purchase. Consumers receive the message from media hype, that they can find real bargains or even achieve wealth by purchasing bank-owned homes. In rare cases, a buyer may find a foreclosed home that is in fair conditon. Unfortunately, this is the exception and not the rule. Most foreclosures, even those advertised as needing some “TLC”, are usually in need of major work. Many have been stripped of light fixtures and appliances, and have been treated unkindly, to say the least, most likely by the owner that was foreclosed on or the tenant that was forced to move out.
Real estate agents are bombarded with information on how to get rich selling foreclosures and emailed offers to teach Realtors on how to become an expert at marketing this type of property. Opportunities do exist for investors and agents who want to run a high-volume, low-commission business, but the homes and the opportunities are not as wonderful as the marketing leads us to believe.
Foreclosures are a growing part of the inventory and Realtors work with them because we have buyers who say they want to find a “deal” on a foreclosure. The process of buying a home from a bank is different than buying it from a private party—it is slower, and there is more paperwork and it always seems as if the bank is in no hurry whatsoever to close one of these transactions. Not to mention the very poor condition that most of these homes are in, leaving a Realtor chasing a turkey… for a buyer looking for the golden goose.
Buyer’s may wait a week or so to get a response from an offer on a foreclosed property, and the answer may be a counter offer or a rejection rather than an acceptance. Banks would like to get as much as they can for these homes to cut their losses, so they are in no hurry to take the first offer or a lowball offer.
Unless a buyer has years of experience in buying this type of property, they will have no idea what they may be in for after a purchase. It’s not the easy to see repairs that are the costly repairs, but the “hidden” repairs and “surprise repairs” that take the value added profit or added equity away from the investor. If a buyer ends up with so much invested in repairs that the homes value is worth less than or the same as the amount invested, then they now own a home where they are waiting for equity to buiid, not much different than if they had just purchased a home in good conditon that was not a foreclosure.About 25 to 30 percent of the inventory of available homes are foreclosures in our area and that number is growing. It will be interesting to see how this shakes out in a few years. The number of foreclosures locally and nationwide have a measurable impact on the fabric of our neighborhoods and on our economy. Although someone always figures out a way to make money off of this scenario, it is not evident who will be the winners and who will be the losers. One thing is for sure, this entire market shakeup will have to work itself out, or the spiral will grow stronger and pull our entire economy to it’s knees. Lets hope this does not happen.
Real estate agents are bombarded with information on how to get rich selling foreclosures and emailed offers to teach Realtors on how to become an expert at marketing this type of property. Opportunities do exist for investors and agents who want to run a high-volume, low-commission business, but the homes and the opportunities are not as wonderful as the marketing leads us to believe.
Foreclosures are a growing part of the inventory and Realtors work with them because we have buyers who say they want to find a “deal” on a foreclosure. The process of buying a home from a bank is different than buying it from a private party—it is slower, and there is more paperwork and it always seems as if the bank is in no hurry whatsoever to close one of these transactions. Not to mention the very poor condition that most of these homes are in, leaving a Realtor chasing a turkey… for a buyer looking for the golden goose.
Buyer’s may wait a week or so to get a response from an offer on a foreclosed property, and the answer may be a counter offer or a rejection rather than an acceptance. Banks would like to get as much as they can for these homes to cut their losses, so they are in no hurry to take the first offer or a lowball offer.
Unless a buyer has years of experience in buying this type of property, they will have no idea what they may be in for after a purchase. It’s not the easy to see repairs that are the costly repairs, but the “hidden” repairs and “surprise repairs” that take the value added profit or added equity away from the investor. If a buyer ends up with so much invested in repairs that the homes value is worth less than or the same as the amount invested, then they now own a home where they are waiting for equity to buiid, not much different than if they had just purchased a home in good conditon that was not a foreclosure.About 25 to 30 percent of the inventory of available homes are foreclosures in our area and that number is growing. It will be interesting to see how this shakes out in a few years. The number of foreclosures locally and nationwide have a measurable impact on the fabric of our neighborhoods and on our economy. Although someone always figures out a way to make money off of this scenario, it is not evident who will be the winners and who will be the losers. One thing is for sure, this entire market shakeup will have to work itself out, or the spiral will grow stronger and pull our entire economy to it’s knees. Lets hope this does not happen.
Monday, May 26, 2008
MEMPHIS HOMES - RENT vs PURCHASE
I'm moving to Memphis and not sure if I should rent or purchase a Memphis Home, as I only plan to be there for about three years. We hear this allot from our clients. We usually give them some rental leads and information to help them make a good decision for their family. Of course the answer is to purchase, but that is a decision they will have to weigh out in their own minds.
The person that benefits from the rental is the landlord...that is why they purchased property as an investment in the first place. Renters never see their rent money again, while homeowners, in worst case scenario may break even in three years. Additionally, renters can not use their rent payments as a tax deduction, and if you ask, you would find out that the mortgage interest tax deduction is one of the very best deductions that exists for homeowners. This deduction is also the single best financial argument for buying rather than renting. Check out this example..:
If you can afford a mortgage or rental for $1200 a month (this would be principle and interest only for a homeowner), then if your credit is in proper order, you can purchase a home valued at up to $200,000 and put down 10% on a 30 year mortgage at a rate of 7% (current rates are as much as one percent less that this). In the first twelve months of a fiscal year starting in January, you would have paid in approximately $11,300 in interest which is entirely deductable for tax purposes. If you are in the 27.5% tax bracket, then you would save $3107 in taxes, or $259 per month. Effectively, this would make your monthly payment actually equal to $941 per month. Additonal expenses on your note would be property taxes....and guess what....they are tax deductable as well.
So the question is not "Can a renter afford to purchase?" The question is can a renter afford NOT to Purchase.
For answers to more questions, please visit http://www.BluffCityRealEstate.com .
The person that benefits from the rental is the landlord...that is why they purchased property as an investment in the first place. Renters never see their rent money again, while homeowners, in worst case scenario may break even in three years. Additionally, renters can not use their rent payments as a tax deduction, and if you ask, you would find out that the mortgage interest tax deduction is one of the very best deductions that exists for homeowners. This deduction is also the single best financial argument for buying rather than renting. Check out this example..:
If you can afford a mortgage or rental for $1200 a month (this would be principle and interest only for a homeowner), then if your credit is in proper order, you can purchase a home valued at up to $200,000 and put down 10% on a 30 year mortgage at a rate of 7% (current rates are as much as one percent less that this). In the first twelve months of a fiscal year starting in January, you would have paid in approximately $11,300 in interest which is entirely deductable for tax purposes. If you are in the 27.5% tax bracket, then you would save $3107 in taxes, or $259 per month. Effectively, this would make your monthly payment actually equal to $941 per month. Additonal expenses on your note would be property taxes....and guess what....they are tax deductable as well.
So the question is not "Can a renter afford to purchase?" The question is can a renter afford NOT to Purchase.
For answers to more questions, please visit http://www.BluffCityRealEstate.com .
Friday, May 23, 2008
MEMPHIS MEMORIAL DAY 2008
It's already close to 90 degrees in Memphis. Yes, summertime is almost here and things are heating up. This is Memorial Day Weekend and along with BBQ and Swimming pools, you will find American Flags everywhere. We are a patriotic group here in Memphis and proud to be Free in our glorious country today. Enjoy your holiday weekend and BBQ if you are lucky enough to be having the ribs or pork shoulder and during all the festivities of welcoming summer, Don't forget our troops who are fighting for our freedom and the American Way of Life. Also, our Veterans, who are home....go out of your way to say thank you and if they are in need...invite them into your Memphis homes to enjoy part of your celebration for Memorial Day in Memphis 2008.
Wednesday, May 21, 2008
REAL ESTATE FOR SALE IN MEMPHIS TENNESSEE
One of the most beautiful areas with Homes for Sale in Memphis is "old" East Memphis. Here you can find wonderful homes..some of which have already been renovated and some homes ready for someone to come take care of renovation to their particular needs. One such home located at 1340 Pebble Creek, situated on a half acre corner lot, is waiting for the buyer who wants the prestige of this fabulous home and location. To learn more about this opportunity, please visit our featured listings page today.
Monday, May 19, 2008
HOMES FOR SALE IN MEMPHIS TENNESSEE
Homes for sale in Memphis Tennessee are in abundance now and rates are low. There is no doubt that it is a buyer's market. Negotiating is tougher on the sellers and Memphis homes for sale need to be in tip top condition so as to beat their competition in getting sold.
Here is an example of tip top condition....1352 Winfield, Memphis, 38116. This 3 bedroom ..one and a half bath...home is ready to move in........ includes...range, dishwasher, refridgerater. New carpets, new vinyl floor in kitchen, newly refinished kitchen cabinets. Security doors, storm windows, fenced yard, private patio.....
Visit our featured listings page to learn more.
Here is an example of tip top condition....1352 Winfield, Memphis, 38116. This 3 bedroom ..one and a half bath...home is ready to move in........ includes...range, dishwasher, refridgerater. New carpets, new vinyl floor in kitchen, newly refinished kitchen cabinets. Security doors, storm windows, fenced yard, private patio.....
Visit our featured listings page to learn more.
Sunday, May 18, 2008
BARTLETT TN HOME FOR SALE
Bartlett Home for Sale and ready to move in...already inspected and all repairs completed. This home has a great location for schools and commuting to Memphis or NAS. For additional information about this great home, please visit our featured listings page.
Saturday, May 17, 2008
ARLINGTON TENNESSEE REAL ESTATE FOR SALE
Arlington Tennessee home for sale in excellent move-in condition. Corner lot with private fenced yard. Professional landscaping with expanded patio. Upgraded light fixtures and counter tops, tile flooring, pergo in den. Bonus room finished upstairs. Learn more about this home on our featured listings page.
Friday, May 16, 2008
HOMES IN COLLIERVILLE TENNESSEE
Homes in Collierville Tennessee available immediately. Elegant zero-lot home in Historic Collierville Tennessee. Enjoy a wrap around porch, granite and stainless steel appliances. Professionally landscaped and much much more. Learn more about this home, visit our Featured Listings page.
HOUSES FOR SALE IN MEMPHIS
Houses for sale in Memphis are in great abundance creating a "buyer's market". The home at 1195 Wellsville is a great buy and includes all the appliances; washer, dryer, dishwasher, refrigerator, gas stove, and microwave. This house for sale in Memphis also has fresh interior paint. For more details, visit our featured listings page.
Thursday, May 15, 2008
MEMPHIS AREA REAL ESTATE FOR SALE
Memphis area real estate and homes for sale. Now available at a reduced price is this fine home on Stable Run Drive just on the outskirts of the city limits of Memphis TN. Please visit our featured listings on our web site to learn all about this home. The owners have been transferred and will miss this move-in ready home in the Memphis area.
Sunday, April 27, 2008
EVERY MEMPHIS HOME BUYER SHOULD HAVE A BUYER'S AGENT
Every Memphis Home Buyer Should have a Buyer’s Agent
Most everyone is really in the dark as to what role an agent plays in a real estate transaction. I know, I know…it’s not like people are buying houses every other day, and they tend to forget how their last buying (or selling) experience went. They may remember more about it if it was a disaster rather then if it was a smooth easy ride. In any case, having an agent to represent you to help you find and negotiate for your property is a very good idea. Although the listing agent in Tennessee can also represent the buyer and facilitate the transaction for both buyer and seller, they still have their loyalties tied to the seller since their listing agreement came first.
Now trust me, I would much rather sell my own listing. If no other agent is involved, there is no commission splitting. I would of course perform all my duties for both the buying and selling side in a diligent and professional manner and be much happier with my commissions.
But you should know that everyone should have their OWN representation to look out for their interests. There is not a charge to the buyer to have this representation and hopefully you will have picked out a knowledgeable agent to help you with each and every step in the transaction process in a professional and respectful manner. Your buyer’s agent is paid from brokerage fees that are charged to the seller.
If you do decide to have your own agent, and then if you should find any homes that may interest you while either out looking on your own or looking through a homes magazine or in an open house, please show YOUR agent the courtesy to phone him or her and let them find out any information you need about those properties. Once you go around your own agent and contact the listing agent of a property, those listing agents begin to feel like they “own” you as their client. If you must or have to contact another agent either by phone or at an open house, you should tell them right at the beginning that you are working with an agent to help you purchase. That way, they know where they stand and may not pester you as much as well.
Once you have found the home that will work for you, putting in an offer with your own agent makes much more sense. That agent can help you as if he were the captain of YOUR team and try to score big for you. If you decide to put an offer in with the listing agent, they already have an impression from the seller as to just how low they might go in price or what they will or will not fix in the house…. but that may be a false impression put in their minds by the seller…and unless an offer is put in and fashioned after YOUR interests, then how would you ever find out just what is the best price on that home? So it may not be that the listing agent would intentionally deceive, but only lead you down the wrong path because they too were told only what the seller wanted them to hear. If you have “neutral” representation or someone on YOUR side, (Not the seller’s side) then you may have a better chance of attaining the best transaction price and extras that is possible.
Remember, purchasing and owning a home may the one of if not the biggest investment you will have for you and your family. You deserve the best representation you can get….and if it’s free…why not have it?If you would like professional buyer representation for your next purchase, why not contact Connie Chambers or Don DeBaer. Visit their web site here http://www.bluffcityrealestate.com/ for complete information about their services.
Most everyone is really in the dark as to what role an agent plays in a real estate transaction. I know, I know…it’s not like people are buying houses every other day, and they tend to forget how their last buying (or selling) experience went. They may remember more about it if it was a disaster rather then if it was a smooth easy ride. In any case, having an agent to represent you to help you find and negotiate for your property is a very good idea. Although the listing agent in Tennessee can also represent the buyer and facilitate the transaction for both buyer and seller, they still have their loyalties tied to the seller since their listing agreement came first.
Now trust me, I would much rather sell my own listing. If no other agent is involved, there is no commission splitting. I would of course perform all my duties for both the buying and selling side in a diligent and professional manner and be much happier with my commissions.
But you should know that everyone should have their OWN representation to look out for their interests. There is not a charge to the buyer to have this representation and hopefully you will have picked out a knowledgeable agent to help you with each and every step in the transaction process in a professional and respectful manner. Your buyer’s agent is paid from brokerage fees that are charged to the seller.
If you do decide to have your own agent, and then if you should find any homes that may interest you while either out looking on your own or looking through a homes magazine or in an open house, please show YOUR agent the courtesy to phone him or her and let them find out any information you need about those properties. Once you go around your own agent and contact the listing agent of a property, those listing agents begin to feel like they “own” you as their client. If you must or have to contact another agent either by phone or at an open house, you should tell them right at the beginning that you are working with an agent to help you purchase. That way, they know where they stand and may not pester you as much as well.
Once you have found the home that will work for you, putting in an offer with your own agent makes much more sense. That agent can help you as if he were the captain of YOUR team and try to score big for you. If you decide to put an offer in with the listing agent, they already have an impression from the seller as to just how low they might go in price or what they will or will not fix in the house…. but that may be a false impression put in their minds by the seller…and unless an offer is put in and fashioned after YOUR interests, then how would you ever find out just what is the best price on that home? So it may not be that the listing agent would intentionally deceive, but only lead you down the wrong path because they too were told only what the seller wanted them to hear. If you have “neutral” representation or someone on YOUR side, (Not the seller’s side) then you may have a better chance of attaining the best transaction price and extras that is possible.
Remember, purchasing and owning a home may the one of if not the biggest investment you will have for you and your family. You deserve the best representation you can get….and if it’s free…why not have it?If you would like professional buyer representation for your next purchase, why not contact Connie Chambers or Don DeBaer. Visit their web site here http://www.bluffcityrealestate.com/ for complete information about their services.
Friday, April 04, 2008
The Most House for the Least Money
The Most House for the Least Money
Our real estate work places us with many out of town buyers and we take pride in helping those individuals or families to find the neighborhoods, school systems, and homes that fit their wants and desires. Many preconceived ideas come along with those buyers…one of the biggest is that we only want to sell homes listed by our company. This is furthest from fact. Our job is to show any home and every home available that meets the needs of our clients making no difference as to the listing company; and this is exactly what we accomplish. We have met many clients who tell us that they have had experiences with Realtors who do just that, but our goal is to find a home that suits your needs, no matter what company has the listing.
The next biggest idea of course is a normal one and that is, how much house can I get for my dollar. This will always be true and especially in our market where it is very well known that you get much more house for your dollar in our area anyway. Of course, the home selling price range will also depend on what size home and location of that home the buyer is requesting. Now that the market has turned into a buyers market, the buyer’s are on the hunt for the elusive “bargain” home. Many people come here not understanding that our market did not go through years of tremendous property value growth as did many areas of the country and that our home values may have risen, but have done so slowly and gradually; which of course is why we have such a stable market where you do in fact get more home for your money. But if you move here from a market where home prices have skyrocketed over the last ten years, and you have seen home prices drop by 25%, 30%, or more; well that just has not happened much here because we never had that huge appreciation in home value in the first place. This becomes even a larger hurdle when those buyers had to, in fact, drastically reduce their own homes where they moved from, in order to sell. This may also cause additional frustration when they feel they could in fact purchase a home in the area where they moved from for tens of thousands of dollars less than the asking prices-- but not so much here.
When I have asked buyers what they mean by finding a “bargain” home, even they are not too certain. If they are still looking for great school zones and good resale somewhere down the road, then they need to look at neighborhoods and suburbs that offer those perks first, and then decide to look at available homes located there. Obviously, this puts location, location, and location as number one as it has always been. Even in these areas, you may find foreclosures, but those homes are ones that may have been on the market for a while, no one else wanted to purchase them, and now a bank owns it. The bank may be willing to sell it at a deflated price, but for some reason or reasons, no one else wanted to buy it before it was foreclosed on, so it may be in need of repairs and fixing up or worse. This may be exactly what some buyers want…but in my experience, many buyers still want a move-in ready house at these low low prices; and this does not really happen too much in our market. In other words, if a really great property went into foreclosure, it most likely would not last too very long on the market, as someone at the bank or someone who knows someone at the bank or some realtor would have bought it already.
So now we are back to looking for a “bargain” house. I guess it will always depend on what some buyer considers to be a bargain, but if you are looking for homes that are neat and clean and move-in ready, you can still get a bargain, but not a giveaway. If a home is selling for a giveaway price, it would be wise to do some due diligence regarding everything about that home; especially location but also and mainly the general condition of that home.There are many great deals to be found in our market. It is the perception of what a “great deal” happens to be that has the biggest variety of conclusions. Buyers need to understand the things that add value to property and of course we are back to location as number one. Next would be cost of ownership, then quality of construction, and the laws of supply and demand. As native Memphians with years of real estate experience, Connie and I offer the expertise of knowing neighborhoods, builders, demographics and other data at our fingertips that can help you to make those choices best for your family. If you start by finding the neighborhood you want and then purchase a home from a motivated seller in that area, that one day, you will feel like you did find your “bargain” home.
Our real estate work places us with many out of town buyers and we take pride in helping those individuals or families to find the neighborhoods, school systems, and homes that fit their wants and desires. Many preconceived ideas come along with those buyers…one of the biggest is that we only want to sell homes listed by our company. This is furthest from fact. Our job is to show any home and every home available that meets the needs of our clients making no difference as to the listing company; and this is exactly what we accomplish. We have met many clients who tell us that they have had experiences with Realtors who do just that, but our goal is to find a home that suits your needs, no matter what company has the listing.
The next biggest idea of course is a normal one and that is, how much house can I get for my dollar. This will always be true and especially in our market where it is very well known that you get much more house for your dollar in our area anyway. Of course, the home selling price range will also depend on what size home and location of that home the buyer is requesting. Now that the market has turned into a buyers market, the buyer’s are on the hunt for the elusive “bargain” home. Many people come here not understanding that our market did not go through years of tremendous property value growth as did many areas of the country and that our home values may have risen, but have done so slowly and gradually; which of course is why we have such a stable market where you do in fact get more home for your money. But if you move here from a market where home prices have skyrocketed over the last ten years, and you have seen home prices drop by 25%, 30%, or more; well that just has not happened much here because we never had that huge appreciation in home value in the first place. This becomes even a larger hurdle when those buyers had to, in fact, drastically reduce their own homes where they moved from, in order to sell. This may also cause additional frustration when they feel they could in fact purchase a home in the area where they moved from for tens of thousands of dollars less than the asking prices-- but not so much here.
When I have asked buyers what they mean by finding a “bargain” home, even they are not too certain. If they are still looking for great school zones and good resale somewhere down the road, then they need to look at neighborhoods and suburbs that offer those perks first, and then decide to look at available homes located there. Obviously, this puts location, location, and location as number one as it has always been. Even in these areas, you may find foreclosures, but those homes are ones that may have been on the market for a while, no one else wanted to purchase them, and now a bank owns it. The bank may be willing to sell it at a deflated price, but for some reason or reasons, no one else wanted to buy it before it was foreclosed on, so it may be in need of repairs and fixing up or worse. This may be exactly what some buyers want…but in my experience, many buyers still want a move-in ready house at these low low prices; and this does not really happen too much in our market. In other words, if a really great property went into foreclosure, it most likely would not last too very long on the market, as someone at the bank or someone who knows someone at the bank or some realtor would have bought it already.
So now we are back to looking for a “bargain” house. I guess it will always depend on what some buyer considers to be a bargain, but if you are looking for homes that are neat and clean and move-in ready, you can still get a bargain, but not a giveaway. If a home is selling for a giveaway price, it would be wise to do some due diligence regarding everything about that home; especially location but also and mainly the general condition of that home.There are many great deals to be found in our market. It is the perception of what a “great deal” happens to be that has the biggest variety of conclusions. Buyers need to understand the things that add value to property and of course we are back to location as number one. Next would be cost of ownership, then quality of construction, and the laws of supply and demand. As native Memphians with years of real estate experience, Connie and I offer the expertise of knowing neighborhoods, builders, demographics and other data at our fingertips that can help you to make those choices best for your family. If you start by finding the neighborhood you want and then purchase a home from a motivated seller in that area, that one day, you will feel like you did find your “bargain” home.
Monday, March 31, 2008
Memphis Real Estate Market amoung "Least Risky"
Home Buyers Find Memphis Market among “Least Risky”
The risk involved in home buying among buyers, sellers, and lenders, is seen nationwide as being the least risky in the top five “least risky” home markets of San Antonio, Cincinnati, Indianapolis, Pittsburgh, and Memphis real estate Markets.
This coming from BizJournal.com and also reporting the largest increases in risk were in the cities of Minneapolis, Virginia Beach, Baltimore, Newark, New York, and Washington DC.
Home appreciation is almost at a stand still, compared to just over a year ago, while the most drastic changes being in the once hot markets such as Las Vegas and San Diego. Phoenix, on the other hand, saw the greatest home appreciation with home values rising in some cases as much as 33.4 percent.
The same study found the 48 of the country’s 50 largest metropolitan statistical areas face increased risk of declining home prices this quarter. However, PMI Mortgage Insurance Co. predicts that the housing market will “cool gradually” due to the strength of the national and local economies.
PMI’s study also concluded that owning a home in one of the top 50 largest MSAs for 10 years or more resulted in a positive return in 100 percent of the cases and although this drops to 95% at 7 years and 92% at 5 years, the return was still seemed as impressive as expressed in the results of this study.
Again, Memphis and it’s suburbs were included in the top five places to be able to purchase in a more stable market.
The risk involved in home buying among buyers, sellers, and lenders, is seen nationwide as being the least risky in the top five “least risky” home markets of San Antonio, Cincinnati, Indianapolis, Pittsburgh, and Memphis real estate Markets.
This coming from BizJournal.com and also reporting the largest increases in risk were in the cities of Minneapolis, Virginia Beach, Baltimore, Newark, New York, and Washington DC.
Home appreciation is almost at a stand still, compared to just over a year ago, while the most drastic changes being in the once hot markets such as Las Vegas and San Diego. Phoenix, on the other hand, saw the greatest home appreciation with home values rising in some cases as much as 33.4 percent.
The same study found the 48 of the country’s 50 largest metropolitan statistical areas face increased risk of declining home prices this quarter. However, PMI Mortgage Insurance Co. predicts that the housing market will “cool gradually” due to the strength of the national and local economies.
PMI’s study also concluded that owning a home in one of the top 50 largest MSAs for 10 years or more resulted in a positive return in 100 percent of the cases and although this drops to 95% at 7 years and 92% at 5 years, the return was still seemed as impressive as expressed in the results of this study.
Again, Memphis and it’s suburbs were included in the top five places to be able to purchase in a more stable market.
Wednesday, January 02, 2008
Memphis Real Estate offers Buyer's Market
It’s A Buyer’s Market
The Best Reasons to Buy Right Now!!
1. Selection. Selection…Selection. There are over 12000 Memphis area homes on the market now…normally there are around 8000. This gives buyers more selection in every price range and every suburb around Memphis Tennessee. Existing home sellers are more willing to negotiate price and terms and builders of Memphis Real Estate are offering more incentives and upgrades. Some homebuilders will also negotiate to take your current home as a “trade-in”; which allows you the benefit of getting the home you want and moving NOW.
2. Less competition for negotiations. In other words…ten months ago, the nicest homes had more than one buyer trying to purchase that home. Today, there are fewer buyers so you may not have to compete with another buyer for the same property.
3. More room to negotiate an offer. If you are a qualified buyer, you can make an offer for much less than you may have had to offer less than a year ago. Sellers are getting frustrated as their homes sit and are more likely to take less for their homes giving you the opportunity to make lower offers or ask for more funds towards your closing costs.
4. More time and more patience. Less than a year ago, in a hot seller’s market, everything was more rushed to get the property you wanted before another buyer could make an acceptable offer. Today, a buyer can take more time to look at more Memphis real estate, take more time to think about your initial offer and any counter offers.
5. In this buyer’s market, more due diligence is suggested on home inspections and even negotiations after the inspection if needed. No need to waive any inspections or repairs as some buyers had to do in the recent seller’s market.
6. There are more new construction spec homes to choose from today. Builders have to continue to build homes in the Memphis area including Fayette and Tipton Counties, to keep their business from folding. They may build slower, but they still have more finished product to sell and are anxious to do so.
7. There are fewer investors purchasing Memphis Real Estate right now. In 2005, it is estimated that one third of all home sales were to investors. Since this part of the buyer market has slowed down, it adds to today’s buyer advantages not to have to compete with investors.
8. Location, Location, Location. Since there are so many additional Memphis area listings on the market, it makes sense that buyers can find more homes to chose from that would be convenient for either their work or for their children’s schools.
9. Mortgage rates are still very low and qualified buyers can lock in some terrific rates. FHA has increased their home value for their loans and has also decreased the amount of down payment required. There are also first time homebuyer programs still available as well.
Are these enough reasons?? Why not also go for top professional services by using our team? Connie Chambers and Don DeBaer offer their
“Promise of Unsurpassed Service” to meet your real estate needs.Visit http://www.bluffcityrealestate.com/ to learn more about us and all about the Memphis Tennessee and surrounding suburbs and communities.
The Best Reasons to Buy Right Now!!
1. Selection. Selection…Selection. There are over 12000 Memphis area homes on the market now…normally there are around 8000. This gives buyers more selection in every price range and every suburb around Memphis Tennessee. Existing home sellers are more willing to negotiate price and terms and builders of Memphis Real Estate are offering more incentives and upgrades. Some homebuilders will also negotiate to take your current home as a “trade-in”; which allows you the benefit of getting the home you want and moving NOW.
2. Less competition for negotiations. In other words…ten months ago, the nicest homes had more than one buyer trying to purchase that home. Today, there are fewer buyers so you may not have to compete with another buyer for the same property.
3. More room to negotiate an offer. If you are a qualified buyer, you can make an offer for much less than you may have had to offer less than a year ago. Sellers are getting frustrated as their homes sit and are more likely to take less for their homes giving you the opportunity to make lower offers or ask for more funds towards your closing costs.
4. More time and more patience. Less than a year ago, in a hot seller’s market, everything was more rushed to get the property you wanted before another buyer could make an acceptable offer. Today, a buyer can take more time to look at more Memphis real estate, take more time to think about your initial offer and any counter offers.
5. In this buyer’s market, more due diligence is suggested on home inspections and even negotiations after the inspection if needed. No need to waive any inspections or repairs as some buyers had to do in the recent seller’s market.
6. There are more new construction spec homes to choose from today. Builders have to continue to build homes in the Memphis area including Fayette and Tipton Counties, to keep their business from folding. They may build slower, but they still have more finished product to sell and are anxious to do so.
7. There are fewer investors purchasing Memphis Real Estate right now. In 2005, it is estimated that one third of all home sales were to investors. Since this part of the buyer market has slowed down, it adds to today’s buyer advantages not to have to compete with investors.
8. Location, Location, Location. Since there are so many additional Memphis area listings on the market, it makes sense that buyers can find more homes to chose from that would be convenient for either their work or for their children’s schools.
9. Mortgage rates are still very low and qualified buyers can lock in some terrific rates. FHA has increased their home value for their loans and has also decreased the amount of down payment required. There are also first time homebuyer programs still available as well.
Are these enough reasons?? Why not also go for top professional services by using our team? Connie Chambers and Don DeBaer offer their
“Promise of Unsurpassed Service” to meet your real estate needs.Visit http://www.bluffcityrealestate.com/ to learn more about us and all about the Memphis Tennessee and surrounding suburbs and communities.
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