CNN offers another informative article! If you're thinking of buying Real Estate, take a look at these tips:
5 new rules for home buyers
There's no guarantee that prices have hit bottom yet - but that doesn't mean that you can't get a great deal now.
By Amanda Gengler, Money Magazine
Last Updated: May 12, 2008: 1:06 PM EDT
(Money Magazine) -- There's no telling how long the housing crisis will drag on. Here's what you need to know before you start shopping in a rocky market.
Rule 1: You can't time the bottom
Face it: The house you buy today will more than likely be worth less next year. That could get you thinking about trying to time the bottom. Resist. It's harder to do than you think, and this is the best buyers have had it in two decades, with inventories up and mortgage rates low.
Pace yourself, find the perfect place and drive a hard bargain: Ignore the seller's asking price and bid 10% below what comparable homes are selling for. If the seller balks, move on. Remember that if you're trading up, your home could sit. So sell before you buy.
Rule 2: One reason to buy now - mortgage rates
Homes are plentiful and will remain so, but financing will be getting more expensive. True, the Federal Reserve has slashed interest rates, but fixed mortgages don't directly follow the Fed. They reflect the bond market's expectations about inflation, which remains a concern. The 30-year, now at 6.1%, will likely reach mid-6% by December and 7% in 2009, says Celia Chen of Moody's Economy.com.
That means there could be a penalty for waiting to buy even if prices fall more. Today a $250,000 loan would set you back $1,500 a month. At 7%, a $1,500 payment gets you only a $225,000 mortgage. As for variable-rate loans, the spread between conforming ARMs and fixed loans is too narrow to do you much good.
Rule 3: Another reason to buy - rates on big mortgages
Mortgages in amounts greater than $417,000 - the limit for buying by federally sponsored mortgage agencies - usually run a fifth of a percentage point above conventional products. But investors are shunning jumbos, which now average 7.2% and are unlikely to drop much this year, according to HSH Associates.
Certain jumbo borrowers could get relief, however. A new law allows Freddie Mac and Fannie Mae to buy loans as large as $729,750 in 71 high-priced areas. So far "jumbo conforming" loans average 6.6%. The program has gotten off to a slow start; you'll need to shop around. And unless Congress acts, this bargain will disappear at year-end.
Rule 4: Don't buy cheap; buy good schools
By now you've heard from somebody who knows somebody who got a great deal on a foreclosed property. But when you buy a house, you're also buying into a neighborhood. And foreclosures tend to be bunched in areas where residents and speculators alike took out exotic mortgages to get into homes they subsequently found they couldn't afford. That's not a recipe for stability. Prices and quality of life could both decline further.
Similarly, avoid developments that popped up in the past few years. They too likely have a lot of owners with risky loans and little equity, says Mike Larson of Weiss Research. Instead, go for areas with highly rated schools. They generally fare better during downturns, and that pattern is holding today, according to a recent study by real estate site Trulia.com.
Rule 5: Make sure your agent has your interest at heart
The real estate game has a built-in conflict of interest, since the listing agent and your agent both get paid by the seller. And these days more sellers are offering extra cash to buyer's agents.
So make sure you're not being steered to a house that's better for your agent than for you. Agree up front on his commission (typically 3%) and that any extra payments will go to you, says Jon Boyd, past president of a buyer's agent trade group.
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First Published: May 12, 2008: 5:41 AM EDT
Find mortgage rates in your area
As a Buyer's Specialist, I'd be happy to help find the perfect home for you. Feel free to call, email, or visit my website for more information.
Best Regards,
Patricc Petti, Realtor
Keller Williams Realty
813-293-9996
Patricc@kw.com
www.tampaluxuryhomespecialist.com
Tuesday, May 27, 2008
How to Sell Fast!
CNN posted a great article for Home Sellers (see below).
5 new rules for home sellers
Whether you're buying or selling, the real estate game has changed. To win, you've got to learn a new playbook.
By Amanda Gengler, Money Magazine
Last Updated: May 12, 2008: 12:39 PM EDT
(Money Magazine) -- Selling a home is a lot trickier than it used to be - here's how to be smart about pricing, presentation and incentives.
Rule 1: Get real about price
Too many sellers set their price based on yesterday's market. Big mistake. "The first buyers in tend to pay the best price, so you need to price it right at the start," says Pamela Liebman, CEO of the Corcoran Group brokerage.
Have three area brokers prepare what's called a comparable market analysis. It will list asking and selling prices of similar homes, as well as amenities and sizes. If there's little inventory in your price range, list for what others are asking. If a lot of homes like yours are on the market, then look to generate buzz, says Liebman.
Set an asking price 10% below what homes like yours have been selling for. That raises the odds of your getting multiple offers. If your market is really frozen and you need to drop the price, make one large cut. No baby steps.
Rule 2: Vet your agent - especially if it's you
Selling on your own in an unprecedented slowdown means you'll have to work awfully hard marketing your home. If you aren't prepared for that, hire a broker. Avoid newbies. You want an agent who has been through good times and bad and who has a track record that you can verify with clients.
Rule 3: Pimp your house - hire a home stager
To sell today, you've got to glam up your home. A stager will help get rid of clutter (especially clutter you don't see); rearrange furniture to create attractive focal points; repurpose underused rooms, turning, say, that makeshift bedroom in the basement into a rec room; and pick paint and curtains that make rooms appear spacious. A consultation may run $200. Completing the plan could cost $1,000 or more. It's worth it.
Rule 4: Cash will make your home look even better
Given the number of listings out there, you want to throw in a little something extra to make your house catch the eye of buyers and their agents. Rather than hand out a cruise or a car - skeptics might wonder why you're so desperate -offer something that will make your home more affordable, such as paying part of the buyer's closing costs.
In the multiple-listing service description of your house that agents can see, let them know you're offering a $1,000 bounty or a 4% commission to the one who brings in the purchaser. It will mean more knocks on your door.
Rule 5: Underwater? Learn to swim
If you're a recent buyer, your mortgage may well top what your home would go for today. About a third of those who bought last year or in 2006 now have negative equity, according to Zillow.com. If a job or family issue compels you to move, your options aren't great, but you have a few.
First, you may be able to persuade your new employer to make you whole on the loan. Second, if the rental market in your area is strong (as is the case in many spots that were healthy but not overly bubbly during the boom), you can become a landlord and wait out the slump. Third, of course, is to sell for as much as you can (see Rule No. 1) and raid your savings for the difference.
Short sales, in which the bank agrees to take less than it's owed and release you from your debt, get a lot of media attention. That doesn't mean they're easy to come by. A bank usually will consider one only if you're at risk for foreclosure. Even then it may say, "No, thanks."
SEND FEEDBACK TO MONEY MAGAZINE
First Published: May 12, 2008: 5:39 AM EDT
Find mortgage rates in your area
If you'd like more information on selling your home, feel free to contact me or search my website for more assistance, www.tampaluxuryhomespecialist.com.
Patricc Petti, Realtor
Keller Williams Realty
813-293-9996
5 new rules for home sellers
Whether you're buying or selling, the real estate game has changed. To win, you've got to learn a new playbook.
By Amanda Gengler, Money Magazine
Last Updated: May 12, 2008: 12:39 PM EDT
(Money Magazine) -- Selling a home is a lot trickier than it used to be - here's how to be smart about pricing, presentation and incentives.
Rule 1: Get real about price
Too many sellers set their price based on yesterday's market. Big mistake. "The first buyers in tend to pay the best price, so you need to price it right at the start," says Pamela Liebman, CEO of the Corcoran Group brokerage.
Have three area brokers prepare what's called a comparable market analysis. It will list asking and selling prices of similar homes, as well as amenities and sizes. If there's little inventory in your price range, list for what others are asking. If a lot of homes like yours are on the market, then look to generate buzz, says Liebman.
Set an asking price 10% below what homes like yours have been selling for. That raises the odds of your getting multiple offers. If your market is really frozen and you need to drop the price, make one large cut. No baby steps.
Rule 2: Vet your agent - especially if it's you
Selling on your own in an unprecedented slowdown means you'll have to work awfully hard marketing your home. If you aren't prepared for that, hire a broker. Avoid newbies. You want an agent who has been through good times and bad and who has a track record that you can verify with clients.
Rule 3: Pimp your house - hire a home stager
To sell today, you've got to glam up your home. A stager will help get rid of clutter (especially clutter you don't see); rearrange furniture to create attractive focal points; repurpose underused rooms, turning, say, that makeshift bedroom in the basement into a rec room; and pick paint and curtains that make rooms appear spacious. A consultation may run $200. Completing the plan could cost $1,000 or more. It's worth it.
Rule 4: Cash will make your home look even better
Given the number of listings out there, you want to throw in a little something extra to make your house catch the eye of buyers and their agents. Rather than hand out a cruise or a car - skeptics might wonder why you're so desperate -offer something that will make your home more affordable, such as paying part of the buyer's closing costs.
In the multiple-listing service description of your house that agents can see, let them know you're offering a $1,000 bounty or a 4% commission to the one who brings in the purchaser. It will mean more knocks on your door.
Rule 5: Underwater? Learn to swim
If you're a recent buyer, your mortgage may well top what your home would go for today. About a third of those who bought last year or in 2006 now have negative equity, according to Zillow.com. If a job or family issue compels you to move, your options aren't great, but you have a few.
First, you may be able to persuade your new employer to make you whole on the loan. Second, if the rental market in your area is strong (as is the case in many spots that were healthy but not overly bubbly during the boom), you can become a landlord and wait out the slump. Third, of course, is to sell for as much as you can (see Rule No. 1) and raid your savings for the difference.
Short sales, in which the bank agrees to take less than it's owed and release you from your debt, get a lot of media attention. That doesn't mean they're easy to come by. A bank usually will consider one only if you're at risk for foreclosure. Even then it may say, "No, thanks."
SEND FEEDBACK TO MONEY MAGAZINE
First Published: May 12, 2008: 5:39 AM EDT
Find mortgage rates in your area
If you'd like more information on selling your home, feel free to contact me or search my website for more assistance, www.tampaluxuryhomespecialist.com.
Patricc Petti, Realtor
Keller Williams Realty
813-293-9996
Wednesday, May 21, 2008
MLS Statistics for Tampa
The Broker of Keller Williams Realty Tampa Central, Chris McLaughlin and Patricc Petti, Sales Associate would like to share the following information regarding Tampa's Real Estate Market:
Well, the April numbers are here, and they continue to show signs of a strengthening real estate market!
The MidFlorida MLS reports that the Greater Tampa Association of Realtors closed 1,235 homes in April, which is up from 1,162 homes in March and well north of the 791 homes sold in January. What truly shows that we've reached a bottom is the comparison over April 2007 numbers -- when we sold 1,249. So in essence we almost sold the same amount of homes that we did a year ago. IMPORTANT: This past April was the highest sales for GTAR since the mortgage crisis began in August of 2007, when we closed 1,384. Ever since August we have consistently closed under 1,235 -- this is important as it represents a "bottom" that has formed for our market, just as last month also did.
There are now 20,117 active GTAR listings, which is down from 20,141 last month and down from our height of 20,942 in October 2007. Our months of inventory dropped to 16.29 from 17.33 in March, but we are still very much in a buyers market. In addition, the average list price dropped to $237,227 from $244,670 last month and the average sales price declined to $222,254 from $230,204 last month. Finally, the percentage difference between sell/list dropped to 93.69% from 94.09% last month and the average days on market increased to 123 from 122 earlier.
What price categories sold last month? 188 of the 1235 homes sold in the $200,000-$249,999 price range, making up for 15.22% of the saleable market. This range made up 14.89% of last month's sales. Another range that is moving, which represented 10.20 of all sales, is the $140,000-$159,999 range, where 126 homes sold. There was also a nice increase in the $250,000-$299,999 range, where last month 110 homes sold versus 76 homes in March.
The $1,000,000 and up range continues to hold its own, with 11 closings last month, which was up from 10 in March. Its a very positive sign for our luxury market, over 70 homes sold for over $500,000 last month.
Foreclosures continued their onslaught. Hillsborough County had 1,549 foreclosures, which is up from 1,419 in March and 1,371 in February. There were 593 foreclosures in Pasco County, which is up from 581 foreclosures in March and 652 in February.
These statistics will be posted onmy website within the next day or two.
-Patricc
Well, the April numbers are here, and they continue to show signs of a strengthening real estate market!
The MidFlorida MLS reports that the Greater Tampa Association of Realtors closed 1,235 homes in April, which is up from 1,162 homes in March and well north of the 791 homes sold in January. What truly shows that we've reached a bottom is the comparison over April 2007 numbers -- when we sold 1,249. So in essence we almost sold the same amount of homes that we did a year ago. IMPORTANT: This past April was the highest sales for GTAR since the mortgage crisis began in August of 2007, when we closed 1,384. Ever since August we have consistently closed under 1,235 -- this is important as it represents a "bottom" that has formed for our market, just as last month also did.
There are now 20,117 active GTAR listings, which is down from 20,141 last month and down from our height of 20,942 in October 2007. Our months of inventory dropped to 16.29 from 17.33 in March, but we are still very much in a buyers market. In addition, the average list price dropped to $237,227 from $244,670 last month and the average sales price declined to $222,254 from $230,204 last month. Finally, the percentage difference between sell/list dropped to 93.69% from 94.09% last month and the average days on market increased to 123 from 122 earlier.
What price categories sold last month? 188 of the 1235 homes sold in the $200,000-$249,999 price range, making up for 15.22% of the saleable market. This range made up 14.89% of last month's sales. Another range that is moving, which represented 10.20 of all sales, is the $140,000-$159,999 range, where 126 homes sold. There was also a nice increase in the $250,000-$299,999 range, where last month 110 homes sold versus 76 homes in March.
The $1,000,000 and up range continues to hold its own, with 11 closings last month, which was up from 10 in March. Its a very positive sign for our luxury market, over 70 homes sold for over $500,000 last month.
Foreclosures continued their onslaught. Hillsborough County had 1,549 foreclosures, which is up from 1,419 in March and 1,371 in February. There were 593 foreclosures in Pasco County, which is up from 581 foreclosures in March and 652 in February.
These statistics will be posted on
-Patricc
Welcome to My Blog!
Welcome to my blog! I’m a Top Realtor in Tampa Bay covering such areas as Davis Island, Harbour Island, Gulf Coast Beach Homes & Condos, South Tampa, Hyde Park, Palma Ceia, and Channelside.
I've lived in Tampa for 35 years. I've resided in Old Hyde Park, Palma Ceia, Boca Grande, and Channelside. I started my sales career in Telecommunications with GTE and transitioned to Real Estate full time 7 years ago. Completing over 150 transactions, I have an in depth knowledge of financing, contracts, inspections, marketing, negotiating, and closing the deal. I’m also a Certified Luxury Home Specialist.
On my blog, I will share useful information about Real Estate and Tampa in general. Feel free to leave your comments or ask questions. Also, check out my website for even more tidbits!
I've lived in Tampa for 35 years. I've resided in Old Hyde Park, Palma Ceia, Boca Grande, and Channelside. I started my sales career in Telecommunications with GTE and transitioned to Real Estate full time 7 years ago. Completing over 150 transactions, I have an in depth knowledge of financing, contracts, inspections, marketing, negotiating, and closing the deal. I’m also a Certified Luxury Home Specialist.
On my blog, I will share useful information about Real Estate and Tampa in general. Feel free to leave your comments or ask questions. Also, check out my website for even more tidbits!
Stay tuned!
Best Regards,
Patricc Petti - Realtor
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