TOPIC: REAL ESTATE MARKET UPDATE, 2010
Brought to you by Pam Dickman, Remax Universal Real Estate
Spring is on its way and the Real Estate market is expected to soon begin its very welcome return -~ along with lower prices, and more opportunities for home buyers. Low Interests Rates and the expanded First-Time Homebuyer Credit for 2009/10 with a maximum credit to $8,000 for purchases made through April 30th which does not have to be repaid unless the home is disposed of or ceases to be the taxpayer’s principal residence within 3 years of purchase makes NOW perhaps the best time in history to buy a home! The $8,000 credit was scheduled to lapse on Dec.12009 but nowwill be in effect throughthe end of June 2010. Homebuyers must sign a contract before April 30th and close by Jue 30th. The income limits were also raised: Single buyerscannow earn up to $125,000 and still getthefull creditwhile a married couple can earn $225,000.
The bill also made more homeowners eligible to claim the credit on their taxes. First-time buyers -- those who have not owned a home in the past three years -- still qualify for an $8,000 rebate. But now people who want to trade up can also qualify. Those who have owned and occupied a residence for at least five years out of the past eight can claim a $6,500 tax credit if they close on a purchase by the end of June.
According to forecasters at Moody’s Economy.com home prices will bottom out at the end of 2009 and median prices perhaps could fall an additional 10% since their 2006 peak. That assumes that President Obama’s various recovery efforts will have some effect. If not, we might be looking as late as to the end of 2011 in some areas.
After home prices hit their lows, they will most probably stay there for a few years while the economy gets back on its feet and prices aren’t expected to reach 2006 levels again for another decade. What is happening now is both inevitable and necessary.
In light of all this, if you are looking to BUY your first home, now is a great time. If you wait another year for prices to “bottom out” then you will miss the tax incentive and low interest rates. This is probably not the greatest idea.
If you are thinking about SELLING your home, you will have to make a tough decision. Depending on your situation there are only two ways you can go. You can either stay put and wait another 10 years or so until the market rebounds to 2006 highs, or sell NOW for the new realistic market value of today before prices drop any further.
2010 holds a great opportunity for sellers because of buyer incentives which is bringing more buyers to the arena. This might all change in mid 2010 when these incentives are gone.
If you decide to sell this year, marketing your home realistically and competitively is the key to putting more money in your pocket. It is taking more time for banks to give loan commitments, and there are some not so qualified buyers out there, so expect that you will need more time than in the past to close on your home and make your move.
Listing your home with a Realtor who’s been in the business for years and has a lot of experience will help smooth out the details for you and get you happily moved in a shorter period of time, getting you more $$ in your pocket.
Now, more than ever, you will need to work with a great Realtor to get the job done without any “glitches”.
This is not the time to go it alone!
OUR MISSION
In Today’s Real Estate Market, you need to work with a company you can trust that has professionals you can rely on. Whether you are buying or selling your primary residence, a second home, or relocating to a new neighborhood,
PAM DICKMAN and Re/Max Universal Real Estate can help sell your home quickly and for top dollar or make your homeownership dreams come true.
Focusing on excellent customer service has inspired our company to build an effective combination of results oriented professionals, superior technology and high ethical standards ~ all working to provide our clients with the most positive Real Estate experience possible!
A TOUGH MARKET NEEDS A TOUGH REALTOR!
SHOPPING FOR A REALTOR®? Don’t delay!
CALL PAM DICKMAN TODAY FOR A FREE, NO OBLIGATION ACCURATE APPRAISAL OF YOUR HOME AND START PACKING!
PAM DICKMAN, RE/MAX UNIVERSAL REAL ESTATE
Associate Broker, Realtor®, SRES(Seniors Real Estate Specialist)
CALL: 718.445.1212 direct or 917.301.1212 cell
Click: info@forsalebypam.com
Or visit: 218-14 Northern Blvd. Bayside
~CONNECTING BUYERS & SELLERS FOR OVER 22 YEARS!~
The American Dream is still going strong…
By Pam Dickman Spring, 2008
Don’t allow negative reports about the housing market dampen your enthusiasm for achieving the American Dream…
“The fallout from the housing slump and the so called “credit crunch” will prove less severe than many fear”, said Wells Fargo senior economists during the company’s annual economic forecast teleconference.
Real Estate is a long term investment for most families. Regardless of where we are in a cycle there are always many people ready to buy and sell, and existing home sales surpassed those of 2002 which was a record breaking year as reported by the National Association of Realtors®. In today’s market, buyers have lots of choices and favorable interest rates.
Economic factors are positive and in addition to low interest rates most areas of the country experience employment gains, and inflation is under control. These factors point to healthy housing sales this year.
The foreclosure rate is only 0.6%. The problem is predominantly with sub-prime loans which are held by less than 10% of homeowners. Most of these loans will never go into foreclosure.
Lawrence Yun, NAR chief economist said the worst part of the credit crunch has already worked its way through the data. “The unusual mortgage disruptions that peaked in August were clearly seen in lower home sales that were finalized in September, October and November, so the market was underperforming,” he said. “Now that mortgage conditions have improved, some postponed activity should turn up in existing home sales over the next several months and, and I expect sales at fairly stable to slightly higher levels.”
As reported by the National Association of Realtors® “the forecast for existing home sales and prices is to stabilize in the second quarter and rise throughout the second half of 2008, equaling the forecast for 2007. The median national price for existing homes is expected to level off, ending a 1.7% decline in 2007.”
Even though many of you have heard a great deal of negativity in the news lately, you need to be further educated and study both sides of the coin. Some buyers are hearing in the media that prices are declining and so will wait to buy. Some sellers feel that the offers or sales prices aren’t high enough and so will decide to wait or not to sell at all. This is a huge mistake.
The truth is… home sales are still strong in our areas. There is a demand for homes. Buyers are buying and sellers are selling.
However, when buying or selling a home, being realistic is of utmost importance. Working with a Realtor® who can help educate you about current market conditions and keep you up to date will get you the maximum amount of money in today’s changing market when you walk away from the closing table, and will help buyers give realistic offers to obtain their dream homes.
If you look at our statistics you can see that our local market is still going strong at Re/max Universal! Our numbers speak for Itself. 553 Homes SOLD in 2007!
If you’re thinking of selling or buying a home, it’s important to start NOW! Our Listings that are properly priced and marketed well are getting top dollar in relatively short amounts of time and are in demand. The sooner the better should be your goal!
If You’re Shopping for a Realtor®,
Call PAM DICKMAN TODAY
And Start Packing!
718-445-1212 direct
917-304-1212 cell
BRINGING BUYERS AND SELLERS
TOGETHER FOR OVER 21 YEARS!
THE MARKET IS NEVER SLOW AT RE/MAX UNIVERSAL!
When the market slows down, hire a Realtor® who doesn’t.
Hiring the RIGHT Realtor®…PRICELESS
NOW IS A GREAT TIME TO BUY OR SELL A HOME!
WHEN YOU ARE LOOKING TO BUY OR SELL, CHOOSE A REALTOR® WHO KEEPS YOU IN TOUCH WITH THE MARKET!
PAM DICKMAN, Associate Broker/Realtor®/SRES
RE/MAX UNIVERSAL 718.445.1212/917.304.1212/info@forsalebypam.comwww.pamdickman.com
FOUR REASONS THE HOLIDAYS ARE A PRIME TIME TO SELL A HOME
Brought to you by Pam Dickman December '07
RISMEDIA, Dec. 19, 2007-Serious home buyers are always ready to make a purchase when they find the right home at a good price. That’s why the holiday season is just as a good a time as any to sell a home-in fact, it can be a great time.
“Timing is everything when it comes to selling a home,” said Diane Turton, broker of record at Diane Turton, Realtors. “We explain to our customers that the process is simple - the right home buyer comes along, sees your house, says ‘I love the home’ and makes an immediate offer.”
Home sellers need to seize the opportunity by preparing their home, so that it is ready to show a buyer at anytime. Here are four good reasons to either put a home on the market right now during the holiday or keep it on the market if it already is listed with a real estate firm.
1. Homes look their best during the holidays - Right now, many homes look more inviting than at any other time of the year. Holiday decorations and the clean look of homes, without clutter, make properties look more inviting inside and out. Live evergreens and scents of the season remind buyers of the warmth they are looking for in their new home.
2. Less competition - Most home sellers believe the holidays are too distracting to sell or buy or home so they take their house off the market. Less competition, in fact, makes it a good idea to do just the opposite because your home is more likely to be seen.
3. More serious buyers - Buyers shopping for a new home at this time of year are ready to act, and these are the kinds of buyers a seller truly wants to attract. Like everyone else, homebuyers have a long list of things to do during the holidays. If they are making time to visit homes in December and early January, it is quite clear they are ready to make an offer.
4. Strong connection between home and holidays - There’s no better time for buyers to see themselves in a new home. It’s the holidays and for many homebuyers the season inspires images of friends, family and home. According to Turton, the reality is that people buy homes in December and even during the week between Christmas and New Year’s Day.
Dealing with the Mortgage Meltdown….What to do?
The Simple Facts
By Pam Dickman Nov 2007
The market is holding on despite temporary mortgage disruptions
Tighter lending standards have put many home sellers, owners and buyers in a bind. As reported in Money magazine, “whether you’re a home seller, owner or buyer, by this point you’ve got to be feeling a little rattled; sales of existing homes are off 11% from this time last year. At that rate it will take at least nine months to work off the inventory of unsold homes and median home prices in September have dropped for the 12th month in a row”.
Lawrence Yun, NAR senior economist isn’t surprised. “We’ve been anticipating slower home sales because many sub prime loan products are no longer available”. Fortunately, a wide availability of conventional mortgage products will help to stabilize the market going forward. Although some buyers have a wait and see attitude regarding home prices, low mortgage interest rates continue to support the housing market and buyers should take into consideration that if there are rising interest rates later this year, it could offset a lower sales price when figuring the monthly payments. If you are a buyer, this market may prove to be the opportunity of a lifetime.
The good news for sellers is that more than half of the major housing markets in the country have not seen price drops..Our neighborhoods have been experiencing some reduced pricing over the past year and a half, although not drastic, and there is a large unsold inventory of homes sitting on the market for months or even a year. This is due to many factors ranging from unrealistic pricing to improper marketing or mismanaged broker representation.
A homeowner who is not planning on moving in the near future should not have anything to worry about. However if you need or want to sell anytime soon and the market is somewhat depressed there are steps to take to minimize the loss.
- Get Realistic! Sellers must get realistic about the asking price when they first put their homes on the market. If the initial price is too high, buyers may leave and not come back, even if you eventually lower the price. After all, in this market there are plenty of other homes to choose from.
- Carefully Compare! Make sure that you compare your home to homes that have been recently sold in the past 2-3 months instead of using comparable homes that are currently on the market. Then price your home slightly below the lowest comp. This will encourage more buyers to look, show interest, and make an offer on your home first.
- Clean and Repair! Use cosmetics such as a new paint job, removing worn carpets, roof repairs/replacements, boiler maintenance, clearing of all clutter and making the house look neat and clean inside and out. Remember that curb appeal is very important – lawn neatly mowed, shrubs trimmed, no peeling pain or loose shingles.
- Staging! Start staging your home properly with professional photos and advertising both print and internet. You want to make a good first impression.
- Pre-Sale Inspections! It’s a good idea to have a home inspection done before listing or showing the property so you can find and repair any major or minor existing problems before a buyer objects. A termite inspection and treatment if needed can be a major deal breaker if not tended to. This should be taken care of promptly.
- Incentives! As an incentive for the buyer, consider buying down the mortgage rate. Your picking up an origination fee (or point of 1%) at the closing could reduce the buyers interest rate by about 0.25% depending on the type of mortgage. On a $200,000 loan it will cost you $2,000, but it could save the buyer nearly $12,000 over the term of the loan!
- Take care of paperwork! So that you won’t have a problem at closing, make sure all your paperwork is in order, including obtaining certificates of occupancy when needed, dismissing violations, and make sure to have disclosures to the buyer filled out and signed.
- Accessibility! Make sure you are always available at a moments notice to welcome prospective buyers.
- Make your deal! Remember, prices may continue to fall for another year or two so it’s important to make your deal early on, otherwise buyers may walk away. In this market there are many other homes still available for buyers.
- Make sure your buyer is pre-approved! Your buyer should be able to present you with a pre-approval letter from his bank or mortgage broker so that you know he is 100% qualified to get a loan.
- Consider Hiring a Realtor®! The key to getting your home sold for more money, in a shorter time with less hassles is to use a Realtor®! But not just any Realtor…choose a Realtor who has years of experience, and has a track record of success. An experienced neighborhood Realtor will know how to set the asking price and market your home effectively in order to maximize the amount of money you will walk away with at the closing table.
If you’re thinking of selling a home, it’s important to start NOW, before the holidays arrive. Our Listings that are properly priced and marketed well are still getting top dollar in relatively short amounts of time. The sooner the better should be your goal!
If You’re Shopping for a Realtor, Call PAM DICKMAN
Today and Start Packing!
718-445-1212 direct
917-304-1212 cell
BRINGING BUYERS & SELLERS TOGETHER
FOR OVER 21 YEARS!
REALISTIC PRICING IS THE KEY TO SELLING YOUR HOUSE IN THIS COOLING MARKET
By Pam Dickman
The days of listing your home for sale at a ridiculously high price and waiting for multiple offers in a matter of days is gone. Sales fell by the largest amount in the Northeast, a drop of 4.2%. David Lereah, chief economist for the National Association of Realtors said he expected sales to fall by 6.8% this year from last year’s all time high; sales had surged to record levels for five consecutive years as buyers responded to the lowest mortgage rates in four decades.
The market has cooled and owners have to work at selling their properties. The key to selling your home in this market is definitely the price. Buyers are taking their time trying to figure out what the right price should be. Sellers are reluctant to reduce their asking price and that translates into less sales and homes sitting on the market for long periods of time. Pricing your house too high at the beginning is a huge mistake. The greatest opportunity for selling your house is immediately after it goes on the market, when most of the serious buyers are anxious to see a new listing. Pricing it right at the beginning will lead to more buyers at your door which leads to offers. Keeping it on the market too long with a high price will bring buyer suspicion that there may be something wrong with the house.
“Don’t be greedy when it comes to money,” warns Ilyce Glink, syndicated real estate columnist and author. Deciding to buy a house is easy when you know the value of the property. When buyers sense that the price is right or even a bit below market value, Glink says, “they’re going to jump all over it.” Additionally Glink recommends that you list your home at or below the competitive market price. If similar homes are priced at $300,000, list yours for $295,000 to generate an extra level of interest. “I guarantee you’re going to get a stream of people through the door,” she says “and you may even end up with more money because you’ll get into a competitive bidding situation.”
Additionally, looks are a major concern to buyers in this market.
Giving your home a little face lift, a coat of paint, making needed repairs, reducing the clutter and making the house neat and clean will make a big difference when buyers come through your home. Remember, buyers can afford to be pickier when there are so many more homes to choose from.
Consider having a Pre-Inspection on your home by a qualified, Licensed Home Inspector. This will tell you if there are any repairs needed before the buyer objects and asks for the agreed on price to be reduced by an unrealistic number.
Follow these simple rules to sell your home for the most money in the shortest time with the least amount of hassles. Fix up, Clean up, and be Realistic.
Is the thought of selling your home making you anxious? Selling your home is no easy task! Pam has been selling real estate in Queens for the past 20 years and has the prescription for success!
Call PAM now for a free, accurate consultation on the sale of your home in today’s market!
PAM DICKMAN, Realtor
Licensed Associate Broker
DIRECT: 718-445-1212/CELL: 917-304-1212
www.FORSALEBYPAM.com
