Sunday, October 30, 2011
Where Short Sales Stumble
"Jenny, what is the difference between a Short Sale and A Foreclosure?" This is a question I hear often. A Short Sale is a sale where the owner owes more than the house is worth, so they are coming up "short". The owner still owns the home. In a Foreclosure, the Bank has taken back possession of the home. If you are a buyer, BEWARE OF THE SHORT SALE. In order for a Short Sale to sell, the bank must APPROVE the (huge) loss of money. So, if someone purchased a home with 100% financing in the hay-day at $450,000 and today it's only worth $250,000 (yes, this is a real life example), they put it on the market as a short sale and pray. They pray that the bank will accept the, in this case, $200,000 loss. Most of the time, they do not. It's further complicated when the buyers took out an 80/10/10 loan, or an 80/20 (remember those??) and there is more than one "trust", or lien-holder. Basically, if you make an offer on a short sale, be prepared to wait months or even years for an answer. Even then, what I see is that the home goes into Foreclosure before the short sale can be approved. And, often times, it comes on the market at a lower price than the short sale was. So, all in all, my advice is to stay as far away from Short Sales as you possibly can!!
Saturday, July 16, 2011
Washington DC Housing Prices Still Rising
Real estate data tracking firm Clear Capital says average prices nationally last quarter fell 1.3 percent from the previous quarter. Regionally, prices fell 4.3 percent in the west, but were largely unchanged in the rest of the nation.
Among metropolitan areas, Washington again ranked as one of the healthiest. Clear Capital says prices here were up 1.5 percent last quarter and up 8 percent from a year ago.
"The latest data through March supports our view that many markets are continuing to see relief from the significant price declines we observed through January," said Clear Capital research director Dr. Alex Villacorta. “While some markets are already in double dip territory, specifically in the West, widespread fear of a collective fall in market prices is overstated."
Foreclosures are putting less pressure on sales prices in Washington than in many markets. Clear Capital says 15 percent of houses for sale in Washington last quarter were bank owned, compared to half of the houses on the market in cities like Las Vegas, Detroit and Fresno, Calif.
Among cities, Detroit had the biggest quarterly price decline, down 18.9 percent. Bridgeport, Conn. had the best quarterly gain, with prices up 9.4 percent from the final quarter of 2010.
Copied from Washington Business Journal, July 7, 2011
Among metropolitan areas, Washington again ranked as one of the healthiest. Clear Capital says prices here were up 1.5 percent last quarter and up 8 percent from a year ago.
"The latest data through March supports our view that many markets are continuing to see relief from the significant price declines we observed through January," said Clear Capital research director Dr. Alex Villacorta. “While some markets are already in double dip territory, specifically in the West, widespread fear of a collective fall in market prices is overstated."
Foreclosures are putting less pressure on sales prices in Washington than in many markets. Clear Capital says 15 percent of houses for sale in Washington last quarter were bank owned, compared to half of the houses on the market in cities like Las Vegas, Detroit and Fresno, Calif.
Among cities, Detroit had the biggest quarterly price decline, down 18.9 percent. Bridgeport, Conn. had the best quarterly gain, with prices up 9.4 percent from the final quarter of 2010.
Copied from Washington Business Journal, July 7, 2011
Friday, July 15, 2011
Because and Why
Welcome to Home Sweet Home, Jenny's journal of daily life as a Real Estate Professional. My plan for this weblog is to provide you with helpful information, insider tips of the trade, and personal stories of the sometimes-crazy-and-always-interesting day in the life of a Realtor. I began in Real Estate in 2001, just after the attacks of 9/11 stunned our Nation and changed our way of life forever. Helping others buy and sell their homes is a tremendously rewarding career. I am one of the lucky ones who actually enjoy their career (gasp! It exists!) and working alongside my mother is a blessing (yes, a blessing). People often ask me why I became a Realtor. My answer is simple. When I moved into my first house (the home I still live in), I was living the single life and felt a huge sense of accomplishment having done it on my own. Over the next 7 years, I met Mr. Right, got married and had my first child. My tres chic sofa was removed so my husband could keep his (ugh) recliner that he so loves. My sitting room became a nursery, my comfy reading chair given up to make room for a changing table. The walls of my home have seen unsurpassed joy and at times, tears; hosted many happy reunions, dinners, happy hours and celebrations; comforted me when I needed it and sheltered me from the elements. My home is so much more than just four walls and a roof and seeing a house become a home is why I became a Realtor...I get to witness this every, single day.
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