January 2010 Archives - HomeVocal Real Estate Network

How To Make An Offer On A House and Competition

January 29, 2010 By admin Leave a Comment

: Image by Oberazzi via Flickr

Question For Ben Janke: “Ben, We made an offer on a house this past weekend during an open house. We wrote the offer up with our real estate agent and put in our earnest money. We haven’t heard back yet on the offer. Can someone still come in and make another offer on the house? If they do, can we match their offer if they are higher than us in their offer?

Thanks. Jennifer

Answer: Jennifer. Thanks for the questions. When you make an offer, you have a time limit for response put in the offer. One of the advantages of giving the seller a short time to respond is to help prevent competing offers from coming in. At the same time, you want to give them enough time to responds as not to aggravate them.

If someone makes another offer on the home before your offer is signed and accepted, the sellers have the option of taking the other offer, taking your offer, sending a multiple counter offer to both buyers, or rejecting both offers. Will you get a chance to match their offer? Not always. It is up to the seller how they would like to proceed in this instance. If the other offer is at their asking price and terms, and yours is not, you might end up losing the house.

If you know that someone else has made an offer, you can always submit an addendum right away to change any of your terms in hopes that the seller will take your offer. Good luck and I hope you get it!

The Basics of Making an Offer in #Realestate (visionaryrealtynews.com)
Does Your Real Estate Offer have a Deadline? (dougfrancis.com)
NAR Buyer/Seller Profile 2009 – Buyer Satisfaction (realestate.about.com)
What’s Going On With Over-Priced Offers? (heidiwhite.com)

Filed Under: For Buyers, Idaho

China Real Estate Market Moving Bubble

January 20, 2010 By admin Leave a Comment

We all know that China’s economy is moving quick. Take a look at China’s real estate market and see if this looks familiar. There has to be a top and bottom to every real estate market. The US market busted, Dubai busted, and now China will probably have a big bust.

Filed Under: Featured

Millionaires Default On Their Mortgages More

January 20, 2010 By admin Leave a Comment

luxury-homes-image Even millionaires these days are having a hard time getting their hands on money.

Even if those millionaires want to refinance their home to put their money elsewhere they are having a hard time finding a lender that will loan out that money even if they have some equity. Even if they have six-figure incomes, exceptional credit scores, and tons of assets, they are still getting turned down for loans.

“It’s amazing really,” said Susan Bruno, a financial planner with Beacon Wealth Consulting in Rowayton, Conn., “but it makes sense when you think about it.”

One reason is that many people considered “rich” have fallen behind on their loans. Over 12% of mortgages in the United States over the $1 million loan amount were actually late during this past fall. This 12% is twice the rate of loans that are under $250,000 and almost triple the number of mortgages in the million-dollar range from only 12 months ago. So, even the rich are having a hard time making their mortgage payments.

I think we are running into one of those scenarios where homes over $1 million have depreciated at a much higher percentage rate than starter homes. How would you like it if your home was once worth $2 million, and now is worth $1 million? That’s a big chunk of change that most likely makes people in that scenario not want to make their mortgage payments even though they may have enough money to make the payments.

Not to mention, that jumbo loans are harder to qualify for and obtain financing for than traditional conventional or FHA loans. When you throw the default rates into the mix, you can see why lenders are a little bit apprehensive about making these large loans.

Filed Under: Featured, Idaho

Sellers Homes Sell In Buyers Market: 5 Tips

January 19, 2010 By admin Leave a Comment

selling-buyers-market-image Well, homes are definitely not selling like they were in 2004, and that is no secret. After real estate appreciated in huge amounts during 2000 – 2005, home prices and the number of homes sold has dramatically dropped in the past months and years starting in about 2006. If you’re trying to sell your home, this does not mean that your home won’t sell, but these strategies and tactics have definitely changed.

Here are some very important factors that you need to take care of when you’re looking to sell your home.

Number one: Complete All Repairs.
When the market is hot, almost any home will sell regardless of its curb appeal and the way it looks inside. Now, in order to sell your home you really need to do a lot of the things that you didn’t used to have to do. These would include: leaky roofs, torn up carpet, stained carpet, and overall external and internal looks of the property.

Number two: Pricing with the Market
Obviously, prices have dropped all over the country. The sellers that I run into seem to understand that, but rarely realize how far the market has actually dropped. It is important to strictly look at the numbers of the soul the homes in the area to identify a asking price. Still, some sellers seem to overprice their homes which makes it very hard to sell the home in a reasonable amount of time. Rather than pricing higher than dropping to market value or below market value, price it correctly up front and you will always end up with more it in your pocket at closing.

Number three: Know Your Agent Stats
With the downturn in the real estate market, many agents have taken on second jobs and or rarely complete any real estate transactions. As a seller, you want someone on your team who is going to be working full-time to get your home sold. This will make a huge difference in how long it takes to sell your home and at what price your home sells.

Number four: Be Flexible
When you get that first off run your home, usually this is going to be the best buyer for you to work with. Statistics show that your first offer or your first offerer is typically going to get you the best price. If you turn down the first four or five buyers and don’t negotiate correctly, you can end up losing thousands or tens of thousands of dollars at closing. So, when you get that first offer make sure that you try to make it work.

Number five: Get the Showings
The more people that take a look at your home, the more offers you going to get, and the higher price you going to net. You really need to make sure that your home is accessible to potential buyers. The most common way to do this is make sure that there is a lockbox on the home, and that the agents can call your phone number, leave a message, and go ahead and show the home may be with an hours notice or so. If you make your home available for appointment only, you can be guaranteed to get way less buyers to your home.

So, your home will sell, but you need to make the critical adjustments in your approach to match up with the current buyers market.

Filed Under: For Sellers, Idaho

Banks Break RESPA Laws During Short Sale Process

January 19, 2010 By admin Leave a Comment

Citi Mortgage, Chase, and Bank of America have been found recently to be violating RESPA laws by demanding payment of a portion of their loan payoffs be made outside of closing statements. When you close a home, every part and payment being made or distributed to any party in the transaction must be disclosed.

These banks, along with others have been noted to requesting outside payment from either the buyer, or even the real estate agent to satisfy the lein that they hold. This is in clear violation of RESPA laws. Short sales are hard enough to deal with for sellers, buyers, and real estate agents without banks trying to make it even more difficult.

Watch this video to see what has been happening and why many real estate agents, and buyers are just fed up with the short sell process altogether.

Comment and let me know what you think.

Filed Under: Featured, Idaho

FHA Suspends 90 Day Rule For Flippers

January 18, 2010 By admin Leave a Comment

fha-90-day-flippers-image FHA has a long-standing rule that after you purchase the property using an FHA loan, you must wait 90 days to resell or “flip” a property. This is been a long-standing rules since being implemented in 2003 and was designed to protect the FHA’s mortgage insurance program from any over purchasing during the times when people were purchasing and flipping homes.

Starting February 1, 2010, the FHA regulators will suspend that 90 day waiting period for the next year. In 2008, FHA did change the 90 day regulation on all bank owned properties that were being sold. Now they are suspending the entire program for one year.

Because home flippers are trending towards getting their homes back on the market in their new state in less than 90 days, the Department of housing and urban development or HUD made the case to change the rule. They wanted to help homes sell as quickly as possible and help stabilize the housing market even more.

FHA is becoming more and more popular as that income ratios change, the amount of money people can put down change, and credit scores change. FHA is the most popular loan type in a most banks and brokerages across the US.

We need anything and everything that can help stabilize the market at this point.

Filed Under: Featured

First Time Home Buyer Tax Credit and Filing Your Taxes

January 18, 2010 By admin Leave a Comment

$8000-tax-credit-taxes-image I’m getting tons of questions about the first-time home buyer tax credit and its rules regulations. Rather than answer the questions over and over again, I thought I would get a quick post with some of the rules that you need to pay attention to before you make a move in the real estate market regarding the $8000 tax credit.

The $8000 tax credit for first time homebuyers only. The IRS to find a first-time home buyer as someone who has not owned a principal residence during the past three years.

You don’t have to repay the tax credit unless you sell the home within three years or move out of the home and turn the home into a rental.

Most people I talk to think that everyone gets $8000, but the tax credit only allows for 10% of the homes purchase price with a maximum amount of $8000. The tax credit only is allowed for homes under $800,000 in value.

The deadline for the tax credit is for purchases that were completed on or after January first, 2009 and you must have also completed the transaction on or before November 6, 2009. If you purchase during this timeframe, the income limits for the tax credit are $75,000 for single filers, and $150,000 if you’re filing jointly or married.

They did make an extension to the tax credit and also enhanced it for those who purchase a property after November 6, 2009 and before the end date of April 30, 2010. If you purchase during this time the tax credit limits for income are $125,000 for single, and $225,000 for married couples.

Also, keep in mind that you cannot each file your taxes if you’re claiming the tax credit. The reason this is is because the IRS is so backed up with fraudulent claims that they can’t keep up with all the filings, and they are also requiring that you send in a picture ID, and other mortgage documents with your taxes to ensure that you actually qualify for the tax credit. There’s been something like 75,000 fraudulent claims as far the first-time home buyer tax credit.

Filed Under: For Buyers

Claming Your HomeBuyer Tax Credit

January 15, 2010 By admin Leave a Comment

Home buyers that purchased a house after November 6th, 2009 can now claim their $8,000 first time home buyer tax refund. The IRS had a bit of a glitch on getting out the proper form 5405 that allows for the refund. The bad news is that you can’t use the e-file system to if you want the cash, and there are some pretty long delays in acutlaly getting the money back.

Sources state that the IRS is estimating a 4 month time frame to have the refunds sent out to recipients. Some tax payers did already receive their up to $8,000 credit back, but some of the fraud that has gone along with the program has caused some large delays. For instance, Otto Price III was recently convicted of filing the tax credit falsely for 15 of his accounting clients.

Because of the fraud, you are really going to have to provide your information with your claim. This includes, a proof of residency, a signed mortgage statement, and a copy of your drivers license. This should help cut down on some of the tax credit fraud, but there already has been so much fraud already perpetrated.

“Because of the scams, the IRS started sending back the amended returns and asking for proof,” said Mary Mellem of David & Mary Mellem, EAs & Ashwaubenon Tax Professionals. “The system has no way of sending along the documents they’re requiring. Taxpayers must file a paper return instead.”

Filed Under: For Buyers

$299,900 :: 7 Pumphouse Road, Garden Valley ID, 83622

January 5, 2010 By admin Leave a Comment

$299,900 :: 7 Pumphouse Road, Garden Valley ID, 83622
See All 10 Photos at garden valley idaho real estate

3 beds, 2 baths
Size: 3,000 sq ft
Lot Size: 27,442 sq ft
Added: 01/05/10, Last Updated: 01/05/10
Property Type: Residential
MLS Number: 98423818
Community: Garden Valley
Tract: Pine Tree Ranch

PC3350 Custom log cabin! Great home/vacation property. Big kitchen w/huge breakfast bar & large walk-in pantry. Central vac, cathedral ceilings, river rock fireplace, tile. HUGE loft w/bonus room AND game room. Can sleep & entertain 10+ easy.River Rock fireplace & wood stove + central heat. Close to swimming pool/golf.Road is plowed all winter! 2 car garage & carport. Bring the toys & play YEAR ROUND! Owner says SELL IT!

Listed with Coldwell Banker Tomlinson -Eme

Brought to you by Ben Janke, Vizions Real Estate. Call me today at 208-860-0957, or visit my website at www.VizionsRealEstate.com!

Search the entire MLS at garden valley idaho homes

Filed Under: Featured, Idaho

NAR Pending Home Numbers Down 16%

January 5, 2010 By admin Leave a Comment

It was actually expected that the pending home numbers would be down in November of 2009, but the actual numbers exceeded the predictions. It was predicted that pending home numbers would be down 14%, but actually declined 16%. This is according to the NAR pending home sales index.

This is attributed to the fact that the numbers usually fall in the winter time with the holidays like Thanksgiving, Christmas, and New Years taking people’s time. Also, it can be linked to the the fact that the First Time Home Buyer Tax Credit was originally slated to end December 1st, 2009 but was extended into 2010. This most likely made some buyers wait until they were ready to make the move instead of rushing to hit ahead of the deadline.

We’ll have to wait and see what the numbers look like for January 2010.