I was recently at a networking event where a veteran realtor gave a short, ten minute talk on the market to come and included some tips on selling a property in our current market. This particular realtor stated she had 25+ years of experience before jumping into her speech. I will gladly admit the realtor had some great tips for sellers and was surprisingly blunt when talking about seller’s expectations and the difficulties they are having with adjusting their frame of mind on the value of their home.
On the flip side, I was rather disappointed that this realtor was so eager to report that 2011 would be the start of the market's turning point for the better. It is very difficult for economists to predict the economy ahead and am surprised this agent was so quick to claim 2011 would be the year the housing market will begin turning for the better. I find myself curious as to what sources this realtor researched to come to this conclusion and most importantly, which of the top 5 REO Realtors did she interview? (An REO Realtor is one who markets and sells bank owned properties.) Citing your sources or quoting specific professionals for a 10 minute speech is not truly necessary for such an event. However, I found myself asking many questions while she was speaking. I instantly wondered if the majority of buyers or sellers have the background knowledge to tell that this agent’s statements were in fact accurate or if she was just misinformed? Was she merely projecting her personal optimism that most of us keep secret in our minds? How would the ‘average Joe’ know if her interpretation of the market was skewed due to her lack of research?
As an agent that works side by side with an REO Realtor, I've learned so much more than I would have had I started real estate solo in the 'traditional' real estate office. Not only have I learned firsthand how to approach a bank with an offer, but I’ve also seen what happens ‘behind the scenes’ in order to get a home ready for marketing. During my time spent working with this REO agent, I've seen the rise and fall of property assignments over the years sync up with the federally required foreclosure moratoriums and initiatives set up to try and keep homeowners in their homes.
Working closely with an REO Realtor has also given me insight on what is to come to our particular market, as well as around the US, and the potential issues that could and most likely will harm the real estate upswing. I've personally seen their inventories begin to rise in the last few months and find myself questioning this 'veteran' realtor's statement that 2011 is the year the market will begin it's slow, yet steady upswing.
I bring this to your attention for one reason and one reason only. In this day and age where information is readily available at your fingertips at any time of the day, it's imperative that you cross reference the information you've learned with multiple sources before making speeches or significant statements like this to any sized group of people. We all must do our own due diligent research on the information we read, see or hear before repeating it others at the time that we’re claiming our expertise in a particular subject area.
If you have any questions about this particular topic or any others I've not discussed, feel free to give me a call or send me a note!
Thursday, September 16, 2010
Monday, August 23, 2010
HAMP Trial Program Disappoints
A recent article in DS News reports that the government’s HAMP foreclosure prevention initiative stated that 616,839 HAMP trials were cancelled out of the 1,307,489 trials that were started when the program began.
This is definitely disappointing news considering the big push over the last year to keep homeowners in their homes in lieu of the foreclosure process. The article goes on to discuss some of the reasons for the cancellation of the trial programs and the different numbers in each group of reasons. The article can take you to the report that goes into great depth on the details of the program and what it has accomplished thus far. Some of the main reasons for falling out of a HAMP trial modification program can include insufficient documentation, trial plan payment default and borrowers who are ineligible as their income to debt ratio is well above the 31% guideline.
While there is no doubt that this is disappointing news, however the flip side of this is that short sales are becoming easier to process with the lenders. They are taking less time to review the offers, less time to obtain investor approval of the offers and in turn less time to approve the short sale offers.
Do not forget about my Foreclosure Prevention Seminar being held on August 31, 2010 at the Maplewood Community Center at 7:00pm. This is a great opportunity for one to come and learn about the different options available to homeowners that are currently struggling with their payments and want to plan ahead.
This is definitely disappointing news considering the big push over the last year to keep homeowners in their homes in lieu of the foreclosure process. The article goes on to discuss some of the reasons for the cancellation of the trial programs and the different numbers in each group of reasons. The article can take you to the report that goes into great depth on the details of the program and what it has accomplished thus far. Some of the main reasons for falling out of a HAMP trial modification program can include insufficient documentation, trial plan payment default and borrowers who are ineligible as their income to debt ratio is well above the 31% guideline.
While there is no doubt that this is disappointing news, however the flip side of this is that short sales are becoming easier to process with the lenders. They are taking less time to review the offers, less time to obtain investor approval of the offers and in turn less time to approve the short sale offers.
Do not forget about my Foreclosure Prevention Seminar being held on August 31, 2010 at the Maplewood Community Center at 7:00pm. This is a great opportunity for one to come and learn about the different options available to homeowners that are currently struggling with their payments and want to plan ahead.
Tuesday, August 17, 2010
Homeowner Foreclosure Prevention Seminar
Click below for details on my upcoming seminar.
August 31, 2010
Maplewood Community Center
2100 White Bear Ave
7:00 - 8:00 pm
Please RSVP Liz Novotny @ 651-203-1769 or liznovotny.com
Can't wait to see you there!
Tuesday, August 3, 2010
Online Help for Homeowners - Fannie Mae's New Website
Have you ever started on a web search, trying to find information on a particular subject, only to find that you have to read through multiple sites just to get one answer? Ask.com has certainly helped in this arena, but it doesn't quite solve the problem that Fannie Mae's website has figured out for homeowners that are struggling with their mortgage.
This new website goes into great detail about the different options available to a mortgagor based on your current financial situation. There is a woman that comes on to the page and immediately starts talking about the site, how to move through the different tabs, and some simple tips on what to do first. The site also has links to general forms a mortgage servicer may require when submitting information for a loan modification, pursuing a short sale, etc. After spending some time walking through all the different scenarios and I found the site easy to understand and navigate through along with a list of numbers to call if you want to speak to a live person about your situation and even a glossary explaining all the key terms used while working with your mortgage company on a solution.
I am very pleased to see a website that is clear and concise with its information and lists ALL options available to homeowners who are struggling with their payments. If you would like to speak with someone about your situation in particular, please give me a call or send me an email and I'd be happy to visit with you to find the best solution or help navigating the website.
This new website goes into great detail about the different options available to a mortgagor based on your current financial situation. There is a woman that comes on to the page and immediately starts talking about the site, how to move through the different tabs, and some simple tips on what to do first. The site also has links to general forms a mortgage servicer may require when submitting information for a loan modification, pursuing a short sale, etc. After spending some time walking through all the different scenarios and I found the site easy to understand and navigate through along with a list of numbers to call if you want to speak to a live person about your situation and even a glossary explaining all the key terms used while working with your mortgage company on a solution.
I am very pleased to see a website that is clear and concise with its information and lists ALL options available to homeowners who are struggling with their payments. If you would like to speak with someone about your situation in particular, please give me a call or send me an email and I'd be happy to visit with you to find the best solution or help navigating the website.
Tuesday, July 27, 2010
Save The Date - Foreclosure Prevention Seminar - August 31, 2010
I will begin teaching Foreclosure Prevention Seminars with my first one in August and will continue teaching these seminars until the interest runs out!
This seminar will go through the different options a homeowner has available to them while behind on their mortgage payments. My first seminar will be held at Maplewood's Community Center on August 31st from 7:00-8:00pm. Please pass along this information to anyone you may know that would like to learn about their options with my contact info to sign up.
Formal invitation to follow, can't wait to see you there!
This seminar will go through the different options a homeowner has available to them while behind on their mortgage payments. My first seminar will be held at Maplewood's Community Center on August 31st from 7:00-8:00pm. Please pass along this information to anyone you may know that would like to learn about their options with my contact info to sign up.
Formal invitation to follow, can't wait to see you there!
Thursday, July 15, 2010
Multiple Offers - What to do?
It seems we're now in a market where the best houses go quickly and the so-so ones sit at the same list price for months or one minor price reduction. With the houses that do go quickly, the majority of the time they end up with multiple offers. As a buyer, this can be frustrating when you finally find the house you like. Below are a few tips on how to work this type of situation.
Let’s start off with a situation where you presented your offer first. Likely you presented an offer that is lower than what you originally expected to pay for the home, testing the waters to see what the minimum that seller will accept. Within hours/days of submitting that offer, one or more offers are also submitted and in turn are asked to come back with your highest and best offer for the seller to review. You say you love the home and would be sad if the end result is someone else winning the bidding process. In this situation, I would suggest updating your offer so that the net will give the seller the closest dollar amount to the list price as possible. If you’re not approved to purchase at list price, make sure it is as close as possible. If you’re purchasing with cash, you might even be best served with an offer above list price. You could even consider offering $100 above the highest submitted offer, so long as it doesn’t exceed a pre-determined amount.
How about the flip side, where you submit your offer after someone else already has? This is a situation where you want to come in with your highest and best from the get go. Again, if you’re paying cash for the property and are comfortable submitting an offer over list price or one that would beat out the highest offer by $100, then by all means do so. With financed purchases, you would proceed the same way as described above when your offer was presented first. Write your offer to be as close to the list price as possible or slightly over list price.
With financed offers, you’ll want to be careful not to go over the list price too much as the home must appraise for your offer price or you could find yourself having to come up with cash for the difference. In multiple offer situations, you’ll want your purchase agreement to be as ‘seller friendly’ as possible. This could mean closing sooner (or later, depending on whether the seller’s readiness to close), writing cash in lieu of a financed offer, omitting the inspection and even buying the house with debris/trash left in. Reducing the amount of work needed to close can weigh just as heavy as a higher priced offer with lots of contingencies to a seller. Show the seller you want to close this transaction as soon as possible with as few potential problems capable of surfacing while in the process of closing. Another important factor is delivering your highest and best offer as quickly as possible, don’t waste precious time deliberating how you should proceed or trying to speculate what the other buyers are thinking.
If you have questions about multiple offers or other real estate topics, please call or send me an email and I’m happy to help!
Let’s start off with a situation where you presented your offer first. Likely you presented an offer that is lower than what you originally expected to pay for the home, testing the waters to see what the minimum that seller will accept. Within hours/days of submitting that offer, one or more offers are also submitted and in turn are asked to come back with your highest and best offer for the seller to review. You say you love the home and would be sad if the end result is someone else winning the bidding process. In this situation, I would suggest updating your offer so that the net will give the seller the closest dollar amount to the list price as possible. If you’re not approved to purchase at list price, make sure it is as close as possible. If you’re purchasing with cash, you might even be best served with an offer above list price. You could even consider offering $100 above the highest submitted offer, so long as it doesn’t exceed a pre-determined amount.
How about the flip side, where you submit your offer after someone else already has? This is a situation where you want to come in with your highest and best from the get go. Again, if you’re paying cash for the property and are comfortable submitting an offer over list price or one that would beat out the highest offer by $100, then by all means do so. With financed purchases, you would proceed the same way as described above when your offer was presented first. Write your offer to be as close to the list price as possible or slightly over list price.
With financed offers, you’ll want to be careful not to go over the list price too much as the home must appraise for your offer price or you could find yourself having to come up with cash for the difference. In multiple offer situations, you’ll want your purchase agreement to be as ‘seller friendly’ as possible. This could mean closing sooner (or later, depending on whether the seller’s readiness to close), writing cash in lieu of a financed offer, omitting the inspection and even buying the house with debris/trash left in. Reducing the amount of work needed to close can weigh just as heavy as a higher priced offer with lots of contingencies to a seller. Show the seller you want to close this transaction as soon as possible with as few potential problems capable of surfacing while in the process of closing. Another important factor is delivering your highest and best offer as quickly as possible, don’t waste precious time deliberating how you should proceed or trying to speculate what the other buyers are thinking.
If you have questions about multiple offers or other real estate topics, please call or send me an email and I’m happy to help!
Thursday, July 1, 2010
It's Official ~ Tax Credit Deadline Extended!
Congress officically passed the bill late yesterday to extend the closing deadline of the qualifying purchase transactions to September 30, 2010.
If you've got a contract ready and just haven't closed yet you are in good shape as you'll now have another 3 months to complete the transaction and earn the $8,000/$6,500 after all!
If you've got a contract ready and just haven't closed yet you are in good shape as you'll now have another 3 months to complete the transaction and earn the $8,000/$6,500 after all!
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