My New Blog

Sometimes writing a blog is so easy as I have so much to share in this ever changing industry. Today is one of those days as I had an experience with another agent that just proves that real estate agents are not all alike.

While attending a home inspection for one of my buyers, I struck up conversation with the listing agent of the property. We exchanged thoughts on the market and I explained that I have been very busy doing market analysis on homes, however, some sellers havent yet listed as they feel their home is worth more than what the facts state. Some, in fact, have listed with other agents at higher prices ( they are still all on the market at this writing, however)

The other agent said to me "take it anyway- you can always drop the price". Personally, I was floored! How does this bring expertise and service, to you, the seller?

Considering the first 3 weeks a home is on the market is its highest attention getting time, considering that coming back to you asking for a price reduction has wasted precious time in the market, not to mention, those buyers that would have bought, considering it's my reputation and your referall of me as to my services and knowledge; why throw all that away to have some "ego moment" of getting the listing?

I am here to deliver not disappoint. I work hard, do my homework up front, present the facts as they are and work with you to make the best decision. Let the other agents have EXPIRED all over their name. I want SOLD on mine as well as a list of happy customers!

Just what I expected would happen, those first timers looking to take advantage of the tax credit are still out buying homes. This made our January sales figures jump nicely! What was interesting to see is that the number of listings hitting the market is down and the median sales price is dropping at a lower rate.

With fewer homes and plenty of buyers, basic economics would dictate that home prices should stabilize.

Whats going to happen once the tax credit expires? My guess is that things will slow down as pent up demand will be exhausted. Perhaps in the fall once it will pick up again? I hope I am wrong and that sales continue strong through the summer but those lucky buyers with the $8,000 being given to them from Uncle Sam ( really you and me) are buying now or have already bought. Check out the video:

http://www.youtube.com/watch?v=vy2q5GQWr0Q

Call me with questions 518-366-2856

The Capital District Real Estate market is cooking right along with first time buyers taking advantage of the $8,000 credit that the government is handing out.

Once this credit expires, I am wondering what will happen to this frenzy in the marketplace? I am thinking a slow down will prevail this Spring/Summer. Add to this the suspected increase in mortgage rates AND the increase in FHA parameters; I am thinking if you are going to buy- buy now.

Take a look at this video which gives the "skinny" on the Capital District Market

http://www.youtube.com/watch?v=vy2q5GQWr0Q

Call me with any questions!
518-366-2856

I hear changes are coming from the FHA this spring with the goal to help solidify the finances of this benefical governmental program. But what are they going to do??

The FHA program is an alternative and widely accepted source of securing funds for a home purchase and  provides funding for homes for folks that may not otherwise be able to get the opportunity for home ownership. Here are a few changes that I have noted:

Credit Score and Minimum Down Payment- A credit score of 580 and above will still allow you to put down a minimum down payment of 3.5%. A score below that will require a 10% down payment.

Sellers Concessions- This is when you can roll in part of your closing costs into the purchase price to eliminate "out of pocket" expenses at the closing. Currently the guidelines allow for a 6% contribution, the requested changes will allow for only 3%. For example, if you were buying a home with an agreed upon sale price of $150,000. currently, you could roll in 6% ( or $9,000) into the price for a true purchase price of $159,000. Of course, the home would have to appraise out for this higher value. With the proposed changes, only $4,500 would be allowed. This means buyers will need to have more cash at the closing to pay for closing costs.

Upfront Mortgage Insurance Payments- Currently, the FHA tacks on 1.75% on top of the borrowed amount to fund the reserves to pay out when loans go bad. The new amount proposed is 2.25%.

What does all that mean to you? If you are not a candidate for conventional borrowing ( credit scores typically in the upper 700's, 5-10% down) then FHA is the way to go . With these changes, it will be more costly to use this program but considering the low interest rates, lower sales prices in the market these days and the governmental credits, its still the way to get the "American Dream" of owning your own home.

Again, these are proposed changes are not in effect at this time. Details and information subject to change.

For more information on the FHA program and for information about buying a home,  please call me at 518-366-2856.

I'll make a light posting this time and let you watch this short video. Call me with any questions!  518-366-2856

http://www.youtube.com/watch?v=vBvmzynbehQ

When selling or buying a home, everyone wants "the best". Why not? We all do and especially when someone is being trusted to handle one of the most important and financially sensitive purchases of your lifetime.

I often wonder what people use as a critiera to determine the best. Is it sales volume? I see that many agents group up as teams so the entire compilation of sales from all of the agents are grouped under one persons name. Or, perhaps, they are not on a team and they handle all of those transactions alone?  Does that make them the best? With 24 hours in a day and many transactions, how much personal  attention can one give a buyer/seller?

Is it "lowest commission?" I would hate to think that as selling a home can very expensive and cutting back on the brokers commission can further eliminate precious marketing activities and the "desire" of the salesperson to go the extra mile.

Honesty, trust, integrity? The Realtor profession is based on ethics and although not everyone is the same, we all say that we have this.

For me, in my purchases, its a compilation of items. One big one is being able to plan ahead and "think outside the box." Here's an example of what I have done recently for a buyer.

My buyer client and his wife were first time buyers. After meeting them at an open house and discussing how I work, they later contacted me and wanted me to be their buyer's agent. Being first timers, we were working with a very limited budget yet, the client wanted all of the "things" in a home that would have put the home in a much higher price bracket.

With the first time buyers credit out there, homes in their price bracket were all going multiple offer and, needless to say, they could not up the ante in order to outbid anyone. What to do?...We had been at this for about 4 months and all parties were getting weary.

In the mean time, I had them prequalified with a local bank so when the deal hit- we were ready!! After much disappointment I reaquainted myself with the definition of insane. Insane is "doing the same thing over and over again and expecting to get a different result."

I did something different.

I told my client, "I have to go find you a For Sale By Owner home. Something underneath the radar screen of Realtors." Finding one can be hard unless you happen to drive by one. I find that the FSBO websites are not up to date and often the homes are sold or are listed by the time you find one on the site.

So I started. Within 24 hours, I found the perfect home for them! All of the amenities, yard, condition- the works AND in their price range. The home was also about $10,000 under market value- YIPPEE!!

We placed an offer on the spot, started the process and were looking forward to closing day. THEN-- the bank decided not to give the mortgage due to some "technicality". We were devastated BUT- I ALWAYS HAVE A PLAN B. So I contacted PLAN B and within 48 hours, we had a mortgage commitment with a different lender for just about the same interest rate.  The client closed and took possession  with the originally scheduled closing date!

Price of the home: $119,000

It's great to have high volume, I suppose.  I am outproducing many agents out there. But- if the agent cannot be prepared, think outside the box" and have a list of "plan B's" in their back pocket- that has to take away from being the "best agent."

Take a look at my web site and read the section  "About Karen and TVH ".( Tech Valley Homes)  These facts plus my proven references may just make me the "best agent" for you.

Contact me and let me see how I can solve your problem.

As your local real estate expert, count on me to keep you posted on the latest happenings and trends in the market!

Announcing the "The Capital District Skinny" . This is a brief video summarizing what is going on in the past month. Click on the link and let me know what you think!

http://www.youtube.com/watch?v=l8uNFHbBdek

For more details on your particular town, call me and I can send you simple to read graphs and charts to assist you in making your real estate decisions.

Look for the "Capital District Skinny" button on the left side of my home page.

HAPPY HOLIDAYS

Its been approved- the House of Representatives has agreed to extend the first time home buyers credit until April 2010 with closings needing to happen by June 2010. The bill is on President Obama's desk now waiting for the final signature.

There is also an incentive  up to $6,500 for those with existing homes to purchase a new home. Here are all the details:

http://newsletter.rismedia.com/newsletters/preview/2023/59729/969871

With these low interest rates and this credit extension, if you EVER thought about buying a home, the time could not be better. PLUS, winter time is coming and alot of weary sellers have been reducing prices and are ready to sell. Strike while the iron is hot!

Call me for any real estate needs. 518-366-2856

Its still up in the air whether or not the $8,000 first time home buyer credit will be extended into next year.

There are proponents for it and those that are against it.

In any case, I think we are all against the "scammers" that are jeopardizing this credit by taking the credit when no home has even been purchased! Take a look at this article and see what John Q. Public has been up to. Sigh..........

http://www.dailyfinance.com/2009/10/23/first-time-homebuyers-tax-credit-should-congress-end-it-or-exte/