Let me begin by saying that I am a pet lover having had many over my lifetime & enjoying those of friends & family. Unfortunately, there are many people out there that are not pet lovers or at least not of many breeds.
Most of us would not think that this is a problem. But, there are many people that will not go into a home with pets that are 'on the loose.' Additionally, there are many people that will spend less time in a home that has pets that are not of their liking. Too many of us this is surprising and may even sound bizarre, but when you put it into perspective it is quite understandable.
So, therefore, we need to take many things into consideration when selling a home with a pet(s). Now, again as I've said, I love most pets. I will usually play with the pet & keep him/her occupied while my clients are viewing the home. This usually works for the pet as well as the prospective buyers. A lot of times, you will find buyers that have no issue with the pets. And, yes, we all know about those loveable, cute pets that just pull at your heartstrings just by looking at you. They can almost sell the home themselves.
But here are some things to possibly remember & some tips for all of us.
1. If it smells... That in itself is probably enough to be said. Sorry, but I've had cats & very rarely did my litter box smell. Guess what? I don't want to smell yours. Neither does anyone else. Clean that litter box & keep it clean or put it out of the way. But those are not the only smells. Most odors come from dander. You need to deodorize your home often & keep your pet bathed and groomed.
2. Stains. Clean them, there are many good products on the market for 'pet stains.' Clean that carpet before listing your home, or if it is that bad, then consider replacing them. Sorry, but smells, stains, etc. are not going to get you top dollar for your home, nevermind, the length of time on the market needed to sell a home in that condition especially when there are so many other available homes to purchase.
3. Keep Pets from Showings. If it is at all possible, take the pet for a walk while your home is being shown. It will make it a much more pleasant experience for the prospective buyer. Loud barking dogs are not always a pleasing sound & may actually scare potential buyers. This only limits your potential pool of buyers. As your realtor, we are constantly trying to increase this pool for you.
4. First Impressions. The old adage is so very true - First Impressions are Lasting Impressions. This not only includes smells & carpet stains, but also possible gnawed moldings, scratches doors & door jambs, holes in the backyard, poop in the backyard, etc. You obviously get the picture & so will the potential buyer that viewed a home like this. I don't care how pretty the home may be otherwise, it is the total picture that has to be taken into consideration. And, yes, first impressions do last & will most likely have the prospective buyer out of your house quickly if care is not taken to these details.
5. It's all about perception! If someone enters a home & it smells & there are stains on the flooring & scratched door jambs, etc. They should also wonder what else this home holds for them. I'm sorry if this seems harsh, but if I enter a home and see this, I do have to wonder what else hasn't been taken care of & kept up. This is only being realistic & I'm not being mean.
We love our pets & there is no reason that they should hinder a sale. Nor do they have to be responsible for lowering a realistic price on a home. It is our responsibility & this can be taken care of without a great deal of inconvenience to all.
Best Wishes & until next time... Marc It Sold!
Thursday, December 28, 2006
Sunday, December 17, 2006
A Little of This - A Little of That!
Housing costs have risen substantially within the last couple of years. Have wages increased as much? We know the answer there. Now, I'm not going to get on my soapbox. But, we continually each day lock more and more people out of the housing market. Condos are costing in the 100K's; a nice relatively reasonable 3/2 single-family home will run approximately the mid 200's. Enough of that, but it is something that we do have to keep in mind. We should never forget, because that only leads to possibly losing the lesson.
Real Estate has returned to what it was normally. The market is very healthy. We are very lucky in the Greater Orlando area, because we are a destination city. We are also the #2 city in the nation for Conventions, even knocking Chicago out of that position. But, there is a lot of competition out there. There are over 21,000 MLS listings available.
This is going to be a difficult time for For Sale By Owners, unless they are willing to wait, what I would think would be, quite a while. I've even noticed what seems to be more homes going into pre-foreclosure. The summer of '05 is no longer. I'm not saying this for doom & gloom. But this is reality.
In regard to pre-foreclosures, people should speak to their lenders before it is way too late. And by too late, I mean, when they are already starting the papers. It takes several months before a homeowner is served with a pre-foreclosure notice. If you are late, there are some lenders that will allow you to tack on those payments to the end of your loan period. Granted, this will definitely cost you, but what will losing your home cost you? There are also other ways, but you must speak with your lender. You have to understand that the lender does not really wish to own your property. They are not making money on it. They make money from the payments that you send in each month.
Anyway, enough for now. Call me & I'll be more than happy to discuss this and any other topics with you.
Until next time....Marc It Sold!
Real Estate has returned to what it was normally. The market is very healthy. We are very lucky in the Greater Orlando area, because we are a destination city. We are also the #2 city in the nation for Conventions, even knocking Chicago out of that position. But, there is a lot of competition out there. There are over 21,000 MLS listings available.
This is going to be a difficult time for For Sale By Owners, unless they are willing to wait, what I would think would be, quite a while. I've even noticed what seems to be more homes going into pre-foreclosure. The summer of '05 is no longer. I'm not saying this for doom & gloom. But this is reality.
In regard to pre-foreclosures, people should speak to their lenders before it is way too late. And by too late, I mean, when they are already starting the papers. It takes several months before a homeowner is served with a pre-foreclosure notice. If you are late, there are some lenders that will allow you to tack on those payments to the end of your loan period. Granted, this will definitely cost you, but what will losing your home cost you? There are also other ways, but you must speak with your lender. You have to understand that the lender does not really wish to own your property. They are not making money on it. They make money from the payments that you send in each month.
Anyway, enough for now. Call me & I'll be more than happy to discuss this and any other topics with you.
Until next time....Marc It Sold!
Wednesday, November 1, 2006
Tax measure goes easy on the rich
In 1992 in Florida, a property tax break measure entitled, "Save Our Homes," was passed. What this does is take the Tax Assessed Value of your home at the time of purchase and limit this from being increased more than 3% per year for the current owner until the home is sold. The intention of this was to be of assistance mainly to the elderly from being taxed out of their homes. Unfortunately, the wealthy have received a proportionately greater property tax benefits than those intended. Read the complete article at http://www.orlandosentinel.com/orl-sohday206oct30,0,6678504.story
Until Next Time - MARC IT SOLD!
Until Next Time - MARC IT SOLD!
Monday, October 30, 2006
Deducting Interest When You Are Not on Title
The following is an interesting article entitled, "Housing Counsel: Deducting Interest When You Are Not on Title," written by Benny L. Kass & published on Realty Times. I did not know that it was possible to deduct the interest on your taxes if you were not on the title. But read the follow case in point to understand the parameters of which this may occur.
Question: I want to buy a condominium unit for my son. Although he makes a decent living, his credit is not good. Accordingly, the lender has advised that title must be in my name only. My son will live in the property and make all of the mortgage payments.
Can he deduct the mortgage interest on his tax returns?
Answer: The answer is a qualified yes. There are certain rules which you must follow since if the IRS ever challenges the deduction, the burden will be on your son to prove that he is eligible to take the deductions.
We must first look to the regulations which have been promulgated by the IRS.
Regulation 1.163-1(b) reads as follows:
Interest paid by the taxpayer on a mortgage upon real estate of which he is the legal or equitable owner, even though the taxpayer is not directly liable upon the bond or note secured by such mortgage, may be deducted as interest on his indebtedness.
In August of 2003, the United States Tax Court addressed this situation and denied the interest deduction. The petitioner bought a house for his mother and although the mortgage loan was not in his name, he made the monthly loan payments. He argued to the Tax Court that he was obligated to repay his mother and “that his failure to repay would result, upon his mother’s death, in a corresponding reduction in his testamentary share of his mother’s estate.”
But the tax court rejected this argument. Based on the facts which were presented in evidence, the Court determined that the petitioner was neither “directly liable on the note securing the mortgage on his mother’s house, nor (was) he a legal or equitable owner of the property.” (Montoya v IRS, decided August 5, 2003.)
What exactly is required to be an “equitable owner”? Our legal dictionaries define this as ownership by one who does not have legal title.
Let’s look at this example. I own property A; I am the legal title holder to the property. I enter into a contract to sell the property to you. Based on that contract, even though you have not yet taken title, you have certain rights. These rights are based on the legal principles called “equity” -- namely that the courts will do what is fair under the circumstances, rather than strictly interpreting the letter of the law.
Obviously, each case has to be decided on the specific facts presented to the Court. In the Montoya case, the Tax Court determined that the son just did not have enough evidence to prove that he had some kind of ownership in his mother’s property.
Several years earlier, this same Tax Court did allow a couple to deduct the mortgage interest even though they were not on title to the property. In Uslu v IRS, the following facts were presented to the Court.
Uslu had filed for Chapter 7 Bankruptcy relief and was not eligible to obtain a mortgage loan. His brother bought the house, in which the only occupants were Uslu and his wife. The loan was in the brother’s name only, but Uslu made all of the mortgage payments. He also made all of the repairs and improvements to the property. The brother signed a Quit Claim Deed conveying the property to Uslu, although this Deed was never recorded on the land records.
The Tax Court found that Uslu’s mortgage payments “constituted payments on an indebtedness” and thus could be deducted for income tax purposes.
According to the Court:
The Court is satisfied, from all of the evidence presented, that petitioners (Uslu) have continuously treated the ... property as if they were the owners, and that they exclusively, held the benefits and burdens of ownership thereof. On this record, the Court holds that petitioners established equitable and beneficial ownership of the (property), and they were liable to (the brother) in respect of the mortgage indebtedness.
How do you meet the burden? Here are some suggestions:
1. Your son must continuously live in the property. To prove this, his driver’s license, voter registration and utility bills should be in his name at the property address;
2. You and your son should enter into a written agreement, spelling out that he is fully obligated to make the mortgage payments on a timely basis, and that you reserve the right to evict him should be go into default; the agreement should specifically state that you recognize that your son has an equitable interest in the property;
3. Your son must be responsible for all maintenance and upkeep of the property, and
4. You should prepare and sign a Quit Claim Deed, in recordable form, conveying the property to your son. This will not be recorded, but will be further evidence of your decision that this property is, in reality if not legally, owned by your son.
There obviously are no guarantees, but if you follow the guidelines spelled out in the Uslu case, you have a good chance of prevailing should the IRS challenge your son’s deductions.
Until next time - MARC IT SOLD!
Question: I want to buy a condominium unit for my son. Although he makes a decent living, his credit is not good. Accordingly, the lender has advised that title must be in my name only. My son will live in the property and make all of the mortgage payments.
Can he deduct the mortgage interest on his tax returns?
Answer: The answer is a qualified yes. There are certain rules which you must follow since if the IRS ever challenges the deduction, the burden will be on your son to prove that he is eligible to take the deductions.
We must first look to the regulations which have been promulgated by the IRS.
Regulation 1.163-1(b) reads as follows:
Interest paid by the taxpayer on a mortgage upon real estate of which he is the legal or equitable owner, even though the taxpayer is not directly liable upon the bond or note secured by such mortgage, may be deducted as interest on his indebtedness.
In August of 2003, the United States Tax Court addressed this situation and denied the interest deduction. The petitioner bought a house for his mother and although the mortgage loan was not in his name, he made the monthly loan payments. He argued to the Tax Court that he was obligated to repay his mother and “that his failure to repay would result, upon his mother’s death, in a corresponding reduction in his testamentary share of his mother’s estate.”
But the tax court rejected this argument. Based on the facts which were presented in evidence, the Court determined that the petitioner was neither “directly liable on the note securing the mortgage on his mother’s house, nor (was) he a legal or equitable owner of the property.” (Montoya v IRS, decided August 5, 2003.)
What exactly is required to be an “equitable owner”? Our legal dictionaries define this as ownership by one who does not have legal title.
Let’s look at this example. I own property A; I am the legal title holder to the property. I enter into a contract to sell the property to you. Based on that contract, even though you have not yet taken title, you have certain rights. These rights are based on the legal principles called “equity” -- namely that the courts will do what is fair under the circumstances, rather than strictly interpreting the letter of the law.
Obviously, each case has to be decided on the specific facts presented to the Court. In the Montoya case, the Tax Court determined that the son just did not have enough evidence to prove that he had some kind of ownership in his mother’s property.
Several years earlier, this same Tax Court did allow a couple to deduct the mortgage interest even though they were not on title to the property. In Uslu v IRS, the following facts were presented to the Court.
Uslu had filed for Chapter 7 Bankruptcy relief and was not eligible to obtain a mortgage loan. His brother bought the house, in which the only occupants were Uslu and his wife. The loan was in the brother’s name only, but Uslu made all of the mortgage payments. He also made all of the repairs and improvements to the property. The brother signed a Quit Claim Deed conveying the property to Uslu, although this Deed was never recorded on the land records.
The Tax Court found that Uslu’s mortgage payments “constituted payments on an indebtedness” and thus could be deducted for income tax purposes.
According to the Court:
The Court is satisfied, from all of the evidence presented, that petitioners (Uslu) have continuously treated the ... property as if they were the owners, and that they exclusively, held the benefits and burdens of ownership thereof. On this record, the Court holds that petitioners established equitable and beneficial ownership of the (property), and they were liable to (the brother) in respect of the mortgage indebtedness.
How do you meet the burden? Here are some suggestions:
1. Your son must continuously live in the property. To prove this, his driver’s license, voter registration and utility bills should be in his name at the property address;
2. You and your son should enter into a written agreement, spelling out that he is fully obligated to make the mortgage payments on a timely basis, and that you reserve the right to evict him should be go into default; the agreement should specifically state that you recognize that your son has an equitable interest in the property;
3. Your son must be responsible for all maintenance and upkeep of the property, and
4. You should prepare and sign a Quit Claim Deed, in recordable form, conveying the property to your son. This will not be recorded, but will be further evidence of your decision that this property is, in reality if not legally, owned by your son.
There obviously are no guarantees, but if you follow the guidelines spelled out in the Uslu case, you have a good chance of prevailing should the IRS challenge your son’s deductions.
Until next time - MARC IT SOLD!
Saturday, October 21, 2006
Supply of homes on market takes dip?!?
That was one of the font page headlines in today’s, 10/21/6, Orlando Sentinel (http://www.orlandosentinel.com/news/local/state/orl-homes2106oct21,0,349657.story?coll=orl-home-headlines). While this may be so, as reported by ORRA (the Orlando Regional Realtor® Association), I find that it is at the same time somewhat incorrect in that there is a better defining picture of this situation.
Statistics are great. They are the numbers – the so to speak ‘black & white’ of the situation. But at the same time they can be manipulated. That is one basic reason that I do not believe in the CMA (Comparative Market Analysis), because I can take those numbers and manipulate them to my needs. At one time, & I apologize for the digression here, an appraisal was as good as the bible when it came to real estate valuation. But this has drastically changed over the years. Lately, I’ve seen appraisals that were so wholly undervalued & then another appraiser might come in with a greatly different value. The reason that I mention this here is that as good as numbers are, then can be greatly manipulated.
Back to the article in question. While a good article, it states in the second paragraph that the supply of homes in the Greater Orlando market has dipped. And this is true. But in the fourth paragraph, the article mentions the sales drop "in the Realtors' core Orlando market (mainly Orange and Seminole counties)."
Why I say that this is conflicting is because for the past 10 months I have weekly gathered the data on inventory of single-family homes, condos & townhomes that are listed available for sale in the MLS in just Orange & Seminole counties. While I’ve seen a couple of weeks here & there where there has been a drop in inventory, the overall data suggests differently.
Proof in point:As of 10/17 the total inventory, as specified above, is 16,045. On 9/20, this figure was 15,828; and, on 8/22, 15,479. I utilized these dates because they are approximately 1 month apart. This shows you that even though there was a week 9/28-10/4 where there was a drop in available home of 93 units, that we have had a consistent rise in inventory in the core Orlando market.
I am not saying your story is erroneous, but I think that this shows a better picture of what is really going on in the Greater Orlando Real Estate Market, especially in the counties of Orange & Seminole.
Until next time – MARC IT SOLD!
Statistics are great. They are the numbers – the so to speak ‘black & white’ of the situation. But at the same time they can be manipulated. That is one basic reason that I do not believe in the CMA (Comparative Market Analysis), because I can take those numbers and manipulate them to my needs. At one time, & I apologize for the digression here, an appraisal was as good as the bible when it came to real estate valuation. But this has drastically changed over the years. Lately, I’ve seen appraisals that were so wholly undervalued & then another appraiser might come in with a greatly different value. The reason that I mention this here is that as good as numbers are, then can be greatly manipulated.
Back to the article in question. While a good article, it states in the second paragraph that the supply of homes in the Greater Orlando market has dipped. And this is true. But in the fourth paragraph, the article mentions the sales drop "in the Realtors' core Orlando market (mainly Orange and Seminole counties)."
Why I say that this is conflicting is because for the past 10 months I have weekly gathered the data on inventory of single-family homes, condos & townhomes that are listed available for sale in the MLS in just Orange & Seminole counties. While I’ve seen a couple of weeks here & there where there has been a drop in inventory, the overall data suggests differently.
Proof in point:As of 10/17 the total inventory, as specified above, is 16,045. On 9/20, this figure was 15,828; and, on 8/22, 15,479. I utilized these dates because they are approximately 1 month apart. This shows you that even though there was a week 9/28-10/4 where there was a drop in available home of 93 units, that we have had a consistent rise in inventory in the core Orlando market.
I am not saying your story is erroneous, but I think that this shows a better picture of what is really going on in the Greater Orlando Real Estate Market, especially in the counties of Orange & Seminole.
Until next time – MARC IT SOLD!
Friday, October 20, 2006
FSBO’s – Where are They Now?
Last year, 13% of all homes sold went the For Sale By Owner (FSBO) route, according to the National Association of Realtor’s 2005 Profile of Home Buyers and Sellers (www.realtor.org/Research.nsf/files/2005HBSonlineHighlights.pdf/$FILE/2005HBSonlineHighlights.pdf) That figure will show a drastic decline when the 2006 figures are published. FSBO’s work great when we are in a seller’s market – but that was so last year.
Most FSBO’s go that route because they wish to save on the commission (nowadays I require a 7% commission). But I must admit that my marketing, as a realtor®, has also had to be altered. I have to offer a lot more to my clients. But that is for another story.
Studies have shown that you can get more in less time utilizing a Realtor®. A recent NAR Profile of Home Buyers & Sellers study showed that a realtor® can get 16% more for a typical For Sale By Owner home. Everything else being equal & you just do the math, why would anyone want to go the FSBO route, if you figure that they will average at least 9% (16 – 7) more utilizing a realtor®? I just don’t understand the logic; but then again, I think that too many people do not look at the whole picture & just one little aspect of it. So, who’s kidding whom?
Last year, you could put a sign in your yard & your home would sell within a reasonable amount of time. Nowadays, you need a proven marketing plan. And, utilizing a discount realtor®, who will typically just charge you a fee for putting your home in the local MLS (Multiple Listing Service) is not considered a ‘proven marketing plan’, nor should you expect your home to sell too quickly.
Presently in the Greater Orlando area, there are over 16K homes for sale and that’s just in two counties – Orange & Seminole. How can someone think that by just putting a sign in their yard that they are going to garner the attention necessary to sell their home with that much competition? And that does not even include a lot of the homes offered by new home builders that are not listed in the MLS.
A good marketing plan has many different aspects to it & includes advertising in different media. Even a realtor® who just puts a sign in the yard & places the listing in the MLS is not doing enough. You need to show Price & Value to sell a home these days. It’s not difficult, but you have to prove it & not just once. Because for a home to sell, it must first be sold to the selling realtor® before it can be sold to the buyer.
Leaving this all aside, there are still many reasons not to go the FSBO route.
Pricing your property to sell involves more than just comparing it with other houses that have recently sold. The uniqueness of each property and its own values are based on location, condition, financing, amenities and other market factors.¨
Advertising can be very expensive, especially if you continue for a sustained period of time. Additionally, your Realtor can market your home utilizing avenues that are not available to you; including, but not limited to, the Multiple Listing Service.
When prospects inquire about your property and you are tempted to enter into a purchase agreement, how can you protect yourself from non-productive involvement? A Realtor should pre-qualify prospects bringing you Qualified Buyers.
Are you willing to admit Strangers to your home? Accepting unescorted strangers can play havoc with your family life. A Realtor using an Electronic Lockbox can identify the realtor who brought prospects into your home and when.
Selling your home can be a time-consuming assignment. You are literally married to the property and the inconvenience can be overwhelming. You have stay close to the property or you may miss the one buyer you’re seeking.
Financing is very frequently the key to a successful housing transaction. Buyers without the right advice and information may not see their way clear to buy your home. Your Realtor is able to help your buyer structure the right financing to meet his objective and yours.
How do you solve prospect problems? Your best buyer may well be someone who already owns a home, and whose decision to buy another property is premised on selling their present one. Your Realtor can sometimes arrange interim financing or a guaranteed sales agreement executed on the existing property.
It is difficult to Negotiate your own position. A Realtor should be prepared to counsel both yourself and the potential buyer, so the differences can be bridged and a transaction successfully consummated.
Once you’ve agreed to sell, there’s the matter of clearing title, obtaining financing, arranging insurance, working with lawyers and other agencies. You can avoid costly mistakes by relying on professionals who control and safeguard your housing investment. Use a Realtor®.
Most FSBO’s go that route because they wish to save on the commission (nowadays I require a 7% commission). But I must admit that my marketing, as a realtor®, has also had to be altered. I have to offer a lot more to my clients. But that is for another story.
Studies have shown that you can get more in less time utilizing a Realtor®. A recent NAR Profile of Home Buyers & Sellers study showed that a realtor® can get 16% more for a typical For Sale By Owner home. Everything else being equal & you just do the math, why would anyone want to go the FSBO route, if you figure that they will average at least 9% (16 – 7) more utilizing a realtor®? I just don’t understand the logic; but then again, I think that too many people do not look at the whole picture & just one little aspect of it. So, who’s kidding whom?
Last year, you could put a sign in your yard & your home would sell within a reasonable amount of time. Nowadays, you need a proven marketing plan. And, utilizing a discount realtor®, who will typically just charge you a fee for putting your home in the local MLS (Multiple Listing Service) is not considered a ‘proven marketing plan’, nor should you expect your home to sell too quickly.
Presently in the Greater Orlando area, there are over 16K homes for sale and that’s just in two counties – Orange & Seminole. How can someone think that by just putting a sign in their yard that they are going to garner the attention necessary to sell their home with that much competition? And that does not even include a lot of the homes offered by new home builders that are not listed in the MLS.
A good marketing plan has many different aspects to it & includes advertising in different media. Even a realtor® who just puts a sign in the yard & places the listing in the MLS is not doing enough. You need to show Price & Value to sell a home these days. It’s not difficult, but you have to prove it & not just once. Because for a home to sell, it must first be sold to the selling realtor® before it can be sold to the buyer.
Leaving this all aside, there are still many reasons not to go the FSBO route.
Pricing your property to sell involves more than just comparing it with other houses that have recently sold. The uniqueness of each property and its own values are based on location, condition, financing, amenities and other market factors.¨
Advertising can be very expensive, especially if you continue for a sustained period of time. Additionally, your Realtor can market your home utilizing avenues that are not available to you; including, but not limited to, the Multiple Listing Service.
When prospects inquire about your property and you are tempted to enter into a purchase agreement, how can you protect yourself from non-productive involvement? A Realtor should pre-qualify prospects bringing you Qualified Buyers.
Are you willing to admit Strangers to your home? Accepting unescorted strangers can play havoc with your family life. A Realtor using an Electronic Lockbox can identify the realtor who brought prospects into your home and when.
Selling your home can be a time-consuming assignment. You are literally married to the property and the inconvenience can be overwhelming. You have stay close to the property or you may miss the one buyer you’re seeking.
Financing is very frequently the key to a successful housing transaction. Buyers without the right advice and information may not see their way clear to buy your home. Your Realtor is able to help your buyer structure the right financing to meet his objective and yours.
How do you solve prospect problems? Your best buyer may well be someone who already owns a home, and whose decision to buy another property is premised on selling their present one. Your Realtor can sometimes arrange interim financing or a guaranteed sales agreement executed on the existing property.
It is difficult to Negotiate your own position. A Realtor should be prepared to counsel both yourself and the potential buyer, so the differences can be bridged and a transaction successfully consummated.
Once you’ve agreed to sell, there’s the matter of clearing title, obtaining financing, arranging insurance, working with lawyers and other agencies. You can avoid costly mistakes by relying on professionals who control and safeguard your housing investment. Use a Realtor®.
Thursday, October 19, 2006
Prices are going to drop $50K!
I don’t think so, but a dear friend of mine who is also a realtor heard this from her client. I, myself, also heard someone say that they will not buy in this market because they expect prices to drop $25-35K. This is absolutely ridiculous!! But, unfortunately, people believe this because of what they’ve read in the media.
There was a great article in this Sunday’s Orlando Sentinel (10/15/6), “Signs point to a healthier-than-expected real estate market,” (pg H-51). I’ve been professing this since the beginning of this year.
We are basically in a normal market & that we’ve been going through a market correction. I just didn’t expect mortgage rates to remain this low. I really thought that they would inch up to the 7% range by years end. It looked like we were going there, but they have retreated to the approximately 6% level. That is absolutely fantastic! What that really translates to is market affordability for many that might have been locked out with higher interest rates.
What we are seeing now is a “correction” to a previously overheated market leading us toward “normal” market conditions. I do not foresee a “crash” that so many have been professing and many fear. Prices need to adjust. It comes down to the basics, that we learn in Economics 101, of supply & demand. With an oversupply (10 months at present for the Greater Orlando area) you need to market your home accordingly. Too many home sellers think that this is the summer of 2005 & won’t adjust to this reality, at least in their mindset.
I still see homes being placed on the market that are wholly overpriced. This is just ridiculous. This home will just sit & then the realtor needs to ask the home seller for a price reduction. Many in the industry are calling this a “price improvement,” but let’s get realistic, we all know what it is. I, as a realtor, cannot see why some people wish to take overpriced listings. OK, so you will have your name on a sign rider in front of this home, but that will stay there for quite a while. As a consumer, people have to wonder when they see a home sit on the market for such a long time. The homeowner may wish to price it high, but the realtor at the same time needs to take the blame as well. This is just poor marketing.
According to the article author, Kenneth Harney of the Washington Post Writers Group & Doug Duncan, chief economist of the Mortgage Bankers Association, “Not only to the doom reports ignore the positives in the marketplace – mortgage rates in particular – but the rhetoric is just way overwrought.”
Until next time – MARC IT SOLD!
There was a great article in this Sunday’s Orlando Sentinel (10/15/6), “Signs point to a healthier-than-expected real estate market,” (pg H-51). I’ve been professing this since the beginning of this year.
We are basically in a normal market & that we’ve been going through a market correction. I just didn’t expect mortgage rates to remain this low. I really thought that they would inch up to the 7% range by years end. It looked like we were going there, but they have retreated to the approximately 6% level. That is absolutely fantastic! What that really translates to is market affordability for many that might have been locked out with higher interest rates.
What we are seeing now is a “correction” to a previously overheated market leading us toward “normal” market conditions. I do not foresee a “crash” that so many have been professing and many fear. Prices need to adjust. It comes down to the basics, that we learn in Economics 101, of supply & demand. With an oversupply (10 months at present for the Greater Orlando area) you need to market your home accordingly. Too many home sellers think that this is the summer of 2005 & won’t adjust to this reality, at least in their mindset.
I still see homes being placed on the market that are wholly overpriced. This is just ridiculous. This home will just sit & then the realtor needs to ask the home seller for a price reduction. Many in the industry are calling this a “price improvement,” but let’s get realistic, we all know what it is. I, as a realtor, cannot see why some people wish to take overpriced listings. OK, so you will have your name on a sign rider in front of this home, but that will stay there for quite a while. As a consumer, people have to wonder when they see a home sit on the market for such a long time. The homeowner may wish to price it high, but the realtor at the same time needs to take the blame as well. This is just poor marketing.
According to the article author, Kenneth Harney of the Washington Post Writers Group & Doug Duncan, chief economist of the Mortgage Bankers Association, “Not only to the doom reports ignore the positives in the marketplace – mortgage rates in particular – but the rhetoric is just way overwrought.”
Until next time – MARC IT SOLD!
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