http://www.realestateforum.com/blogs/johnny-brooks/ The National Real Estate Forum is a Real Estate Social Network to exchange ideas about the Real Estate Industry en Thu, 23 May 2013 18:31:34 GMT vBulletin 60 http://www.realestateforum.com/images/misc/rss.jpg http://www.realestateforum.com/blogs/johnny-brooks/ http://www.realestateforum.com/blogs/johnny-brooks/7332-selecting-right-realtor-can-make-difference.html Sun, 20 May 2012 01:04:12 GMT Selecting The Right Realtor Can Make A Difference

April 16, 2012 by Johnny Brooks | Edit

1

0

i

Rate This

Whether you’re buying a home or selling a property, choosing your realtor wisely can be the difference between success and failure. For consumers, it probably feels as if there are more realtors available than cars on the road. Just like cars on the road though, some agents run smoother than their competitors. Prospects should be as diligent in selecting the right realtor as they are in finding the right home. Everyone has their own personality and the endearing qualities that make a great realtor should be adaptable to the party they’re representing. First and foremost, the agent should be accessible. There’s nothing more frustrating than a voicemail that’s not returned for days or the loss of a home because your chosen realtor was not available to show the property. Buying or selling a property is not an undercover job and prospects are not looking for a secret agent.
Buyers Agent: Some realtors specialize in working with home buyers. Patience, fortitude and understanding are at the forefront of the characteristics that make a buyers agent. Open houses or word of mouth from a satisfied client are excellent avenues to find a realtor that works well with buyers. Buyers have no obligation to work with any individual realtor, but committing to just one will give you a better alliance than playing the field. Work exclusively with a local realtor that knows the market,is honest and conscious of your needs and desires. Combine those attributes with accessibility and you have a paradisiacal buyers agent.
Sellers Agent: Sellers have to make a contractual agreement with a real estate professional, unlike the buyer. This makes finding the right realtor even more essential. It’s difficult firing an agent that’s under contract, unless there’s an egregious mistake or an unkept promise. Choose this agent WISELY. This agent should be aggressive, honest, willing to go the extra mile and have a large Internet presence. An exceptional sellers agent stays in constant contact with their clients with updates and feedback. They also do the grunt work like encouraging the owners to make necessary price adjustments or home alterations. Passivity is not a good quality for a sellers agent.
Dual Agents: This is a buyers agent and sellers agent rolled up in one. This realtor is working with the seller and negotiating on behalf of the buyer. The dual agent has to mediate with caution and realize both parties have expectations that need to be met. If either party feels even a hint of neglect, then this agent can’t consider themselves a true dual agent. Some real estate offices are basically outlawing dual agency for fear of conflict of interest. It takes a special realtor to earn the title of dual agent. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home,scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities. ]]> Johnny Brooks http://www.realestateforum.com/blogs/johnny-brooks/7332-selecting-right-realtor-can-make-difference.html http://www.realestateforum.com/blogs/johnny-brooks/7331-importance-inspections-prior-marketing.html Sun, 20 May 2012 00:31:52 GMT The Importance Of Inspections Prior To Marketing

May 19, 2012 by Johnny Brooks | Edit

1

0

i

Rate This

Would it not be great as a homeowner to know how much leeway you have during negotiations with the home buyer. All sellers have a bottom line and the anxiety of not knowing what issues might arise during the buyers investigative period can be nerve-racking.There is a solution to this potential problem. For that peace-of-mind, perform inspections before you start marketing your home. This resolves two concerns right upfront, the first being the unknown that every owner will eventually have to face, what repairs are needed and how much will it cost. The other more important purpose is simply giving the owner a better idea on how much flexibility they have on negotiating the price when they receive an offer.
Homeowners in many cases are losing thousands of dollars by waiting to find a buyer and then keeping their fingers crossed that nothing comes up during the buyers inspections. Buyers would be more prone to migrate to properties that have all of the necessary inspections. You have two kinds of buyers on the market, some with a lot of money and most with little money. You attract more buyers and your home becomes more sellable using this approach. Here are a few inspections that make a difference.
Whole House Inspection This inspector goes through a property with a fine-tooth comb looking for any defects. This is the most vital inspection because they cover the entire home. These inspectors are a jack-of-all-trades, but a master of none. By that I mean, they can locate the problem but can’t diagnose the exact cause. An example, the air conditioner is not performing to the fullest capacity. Under those circumstances a local central heat & air specialist would be called for a thorough diagnoses. The cost for a whole house inspection ranges from $350 to $500.
Roof Inspection: Roofs are one of the biggest reasons why deals fail. If your roof is more than five years old, it’s strongly advised to have an inspection of the roof. Knowing that a roofer has certified that roof makes the buyer and buyers lender happy. Yes lenders are apprehensive about loaning money on a property with roof issues. The cost for inspection ranges from $120 to $175.
Heat And Air: Depending on the age of both units, the heater and air conditioner should be inspected. If they had been replaced in the last five years, but serviced on a yearly basis, you might be able to forego this inspection. The best analogy why these inspections are so important would be two similar properties are on the market at the same price. One’s had all of the inspections and the other has not. Which home do you think is more attractive to a buyer? Cost of inspection $100-$150
There are other inspections that are essential based on the community you live. For instance in Davis, California we have a city ordinance that requires an owner to have a city resale inspection. They are looking for any permit, code or safety violations. Other communities might have comparable obligations. The combined cost of these inspections are under $1,000. The money you might save in the long run could be much higher than that amount. Please visit my website at www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs and easy access to view local area homes in Davis, California and our surrounding neighbors. ]]> Johnny Brooks http://www.realestateforum.com/blogs/johnny-brooks/7331-importance-inspections-prior-marketing.html http://www.realestateforum.com/blogs/johnny-brooks/7316-motivated-seller-not.html Fri, 18 May 2012 15:42:47 GMT Motivated Seller Or Not?

May 17, 2012 by Johnny Brooks | Edit

1

0

i

Rate This

We’ve all seen those marketing headlines that say “motivated seller.” Then you scan over to the showing instructions that read “shown between 1-5 Monday thru Friday” or you contact the owner and they balk at showings today, but tomorrow might work. I don’t know about you, that’s not my definition of a motivated seller. The other frustrating scenario would be a seller that prices their property above fair market value and then proclaim themselves as motivated. Who’s actually writing these comments? It’s the realtor and they appear more ambitious than the seller. Those two words should never be used unless the seller is truly motivated in every way.When a homeowner chooses to sell their home, they have numerous decisions that need to be made. Pricing is the most important, but other factors rank highly. The ease in which to have your home shown, what amenities will convey with the property, how quickly can you vacate and the possibility of paying some of the buyers closing cost.
Competitive Price: You can’t be motivated and over price your property. Price it correctly from the get go. Motivated seller is a term that should not be used lightly. Don’t insult the intelligence of the buyer by overpricing the property and using motivated anywhere in the comment section. That’s deception and will turn off the buyer and any agent that wants to show the home.
Easily Shown: Home buyers want to view properties at their convenience, not the sellers. When a realtor calls to show, make every effort to accommodate their buyer. Some prospects are from out-of-town and only able to look at homes that day. If you want to get it sold, make it easy to see should be the motto.
Leave Amenities: Don’t lose a buyer over your unwillingness to leave appliances or those curtains in the living room. Buyers expect extras and owners should be amenable to those request.
Moving Quickly: There are more all cash buyers on the market now and they want possession sooner than later. Be prepared to swiftly vacate if you’re fortunate enough to get one of those buyers. You should be preparing to move as soon as the home hits the market. Do not procrastinate.
Closing Cost: it seems farfetched, but buyers will ask for some participation with closing cost. Splitting the title and escrow fees are very common in California. Know that buyers today could request some monetary concessions with other cost. It’s the nature of the beast. If you allow the realtor to use those two words “motivated seller”, make sure you are aware of the power and consequences they carry. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities. ]]> Johnny Brooks http://www.realestateforum.com/blogs/johnny-brooks/7316-motivated-seller-not.html http://www.realestateforum.com/blogs/johnny-brooks/7280-housing-recovery-full-bloom.html Wed, 16 May 2012 06:12:17 GMT Housing Recovery In Full Bloom

May 11, 2012 by Johnny Brooks | Edit

1

0

i

Rate This

Two different USA Today articles came out this week and confirmed what the real estate industry has been saying since the beginning of the year. The headings read “Forecast sees annual 4% rise in home prices” and the other stated “Mortgage rates sink to a new low”. Nationwide home prices are down by a third since 2006, but should rise by 4% a year for the next five years, this according to a new forecast by market watcher Fiserv. The positive signs in the housing market has gotten the attention of news outlets locally and nationwide. This is a complete reversal from the last few years where we had daily negative reports regarding the housing downturn.
Investors have been the driving force behind the resurgence. First-time and move-up buyers have decided to join in the brouhaha as mortgage rates have steadily dropped since the middle of 2011. Home affordability and declining inventory has also had a positive affect on the market. The areas hardest hit by foreclosures will experience the largest increase in appreciation. Six of the ten markets where prices are expected to increase most over the next five years are locations that have had at least 50% depreciation from their peaks. Areas like Phoenix, Arizona and Miami, Florida are two of the biggest beneficiaries with asking prices up by more than 20% and inventories are down by 40%.
Mortgage loan rates have plunged to new sixty year lows standing at 3.84% for the week of May 7th. Existing home sales were up 5.2% in March from a year ago. Healthy demand and tighter inventories sparked a 2% increase in home prices nationwide for the months of February through April. 92 of the top 100 largest metro areas showed increases during the three-month period. The three factors that have stimulated the market are the limited number of properties available, high demand from prospective home buyers and low mortgage rates.
Despite the latest drop in rates, Freddie Mac expects 30 year-fixed-rate loans to rise later this year to 4.25% or even 4.50%. That’s assuming the economy continues showing improvement. Guy Cecala from Inside Mortgage Finance stated “Consumers shouldn’t hold out for lower rates, we’re near the lowest you’ll ever see.” All of these positive signs will be predicated on what happens during the Spring and Summer months. Stay tuned. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities. ]]> Johnny Brooks http://www.realestateforum.com/blogs/johnny-brooks/7280-housing-recovery-full-bloom.html http://www.realestateforum.com/blogs/johnny-brooks/7279-what-expect-when-buying-fixer-upper.html Wed, 16 May 2012 05:35:47 GMT What To Expect When Buying A Fixer-Upper

May 16, 2012 by Johnny Brooks | Edit

1

0

i

Rate This

Those home buyers that love properties that need lots of tender loving care and have the time, money, emotional and physical makeup to take on such a project have the potential for instantaneous equity and the pleasure that they participated in the home makeover. If you don’t have all four of these attributes, then a fixer-upper is probably not for you. Buying these type of properties can be fraught with peril. So before you make that leap, make sure you have a sensible idea in what to expect. Most of these type of homes are in older neighborhoods where many properties have already been updated.
Most fixer uppers are being sold in “as is” condition and should be throughly inspected by competent inspectors. The known repairs are obvious, it’s the unknown that these inspections can uncover. Do the math and figure out what you should pay to buy a fixer. Add up the cost to renovate, include labor and materials in your calculations. Then add another ten percent to the equation for any extras or unforseen problems that could arise. Be leery of any property that requires any major overhauls such as structural deficiencies or plumbing/electrical systems that have little effect on raising the value of the property.
There are improvements that can give back more than dollar for dollar value. Using Homes in Davis, California as an example. Adding legitimate usable square footage can cost about $200 a square foot. After completing that addition, the value could be worth $250 a square foot or more. Weigh the cost to value ratio for that neighborhood before adding more space. If your home is one of the largest homes already, it does not make sense to increase the size. Only add the space if you can recoup the value in the future. If your handy with the tools, a lot of minor improvements like resurfacing cabinets or painting can minimize the overall cost.
If you’re hiring others to make improvements, take the time to interview at least three licensed contractors and get bids. remember this is a marathon not a sprint. The time spent upfront can save you money in the long run. Buying a fixer-upper is not for the faint hearted, but the end results could be pleasurable and profitable. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks at Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities. ]]> Johnny Brooks http://www.realestateforum.com/blogs/johnny-brooks/7279-what-expect-when-buying-fixer-upper.html http://www.realestateforum.com/blogs/johnny-brooks/7197-lowball-offer-worse-than-no-offer.html Wed, 09 May 2012 21:28:16 GMT Is A Lowball Offer Worse Than No Offer

April 18, 2012 by Johnny Brooks | Edit

1

0

i

Rate This

What could be worse than having a property on the market for months and not receiving even a nibble from a buyer. Possibly getting a humiliating lowball proposal might have equal footing. That’s the conundrum for a home buyer that finds a property, that’s been proven to be overpriced. Should they make an offer that’s more in tune with fair value or by-pass the home completely. On the other shoe, should sellers negotiate with a buyer that makes an offensive proposal or refuse to respond at all. Both of these scenarios are based on the circumstances of both parties.
Some of the factors that might provoke a lowball offer would be the length of time the property has been active, the longer, the more likely. Another determinant could be a less than motivated buyer or as was mentioned earlier, the home is just overpriced. Some buyers are blindly making multiple lowball offers, hoping one sticks. Then you have those well-informed prospects that are making fair offers, even though the price does not meet the sellers false impression of value. Even when sellers are prompted by their realtor to price their property correctly, sometimes it takes that reasonable offer to create a reality check. Is a lowball offer worse than no offer at all is in the eye of the beholder.
If sellers stonewall making necessary price adjustments, their home becomes inconsequential to buyers and realtors will use that home to sell other more attractively priced properties. Any proposal, no matter how crummy should always be acknowledged and countered. The chances are slim if both buyer and seller are not willing to negotiate and sellers will never know unless they reply. Even if buyers agree to overpay for a property, the buyers lender will not blindly orchestrate a loan for this overpriced home. There are too many well-priced properties for a buyer to aimlessly bid on a pricey house.
There will always be those ill-advised lowball offers, that tactic has been around as long as homes have been bought and sold. But a seller should not be alarmed with this maneuver, they should consider this an opportunity that did not exist prior to the lower than thrilling offer. You can’t win the Lottery unless you play and you can’t sell a home until you receive an offer. Maybe not the best comparison, but you get the point. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks at Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities. ]]> Johnny Brooks http://www.realestateforum.com/blogs/johnny-brooks/7197-lowball-offer-worse-than-no-offer.html http://www.realestateforum.com/blogs/johnny-brooks/7195-home-sellers-pinpointing-right-price.html Wed, 09 May 2012 20:09:08 GMT Home Sellers: Pinpointing The Right Price

April 24, 2012 by Johnny Brooks | Edit

With the flurry of real estate sales, many sellers are feeling brash when it comes to pricing their property. The disparity in home values from street to street can be significant. There’s not a scientific explanation why a buyer would pay thousands more for the identical home around the corner, every buyer has their own interpretation of value. The three major attributes location, condition and price have always been the factors that determine how successful a homeowner will be marketing their home. There’s not much a seller can do about location and in some cases condition is restricted, due to the sellers financial standing, but the price will influence whether a property actually sells or not. At the right price, there’s a buyer for every home.
An owner can hire an appraiser or have a local real estate professional give them a comprehensive market analysis to supply an estimate of value in hopes of pinpointing the right price. Sellers are taking a huge risk in not following the time-tested doctrine of properly pricing their property. it’s been proven over time that owners that price their home correctly upfront will garner more value than owners that stray from reality. A home is only worth what a buyer is willing to pay. Homeowners have to take into account the glut of foreclosures and short sales, because the buyers loan appraiser certainly will.
One action sellers can take that has become very popular is the auction or a date to review all bids. This maneuver can only work with distinct homes that have special qualities, like a great location. The other important considerations using this approach would be a competitive asking price and the market is currently depleted of anything similar to the home being auctioned. It’s difficult expecting bids on a home when there are four other comparable properties on the market. I recently used this technique on a home in Davis and received three bids at higher than asking price. The owner was obviously satisfied. No matter the direction a seller takes, price will always be the deciding factor in whether any home sells or sits. Buyers will continue buying fairly priced homes and rejecting those properties that have inflated prices. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities. ]]> Johnny Brooks http://www.realestateforum.com/blogs/johnny-brooks/7195-home-sellers-pinpointing-right-price.html http://www.realestateforum.com/blogs/johnny-brooks/7194-home-sellers-pinpointing-right-price.html Wed, 09 May 2012 20:07:56 GMT Home Sellers: Pinpointing The Right Price

April 24, 2012 by Johnny Brooks | Edit

1

0

i

Rate This

With the flurry of real estate sales, many sellers are feeling brash when it comes to pricing their property. The disparity in home values from street to street can be significant. There’s not a scientific explanation why a buyer would pay thousands more for the identical home around the corner, every buyer has their own interpretation of value. The three major attributes location, condition and price have always been the factors that determine how successful a homeowner will be marketing their home. There’s not much a seller can do about location and in some cases condition is restricted, due to the sellers financial standing, but the price will influence whether a property actually sells or not. At the right price, there’s a buyer for every home.
An owner can hire an appraiser or have a local real estate professional give them a comprehensive market analysis to supply an estimate of value in hopes of pinpointing the right price. Sellers are taking a huge risk in not following the time-tested doctrine of properly pricing their property. it’s been proven over time that owners that price their home correctly upfront will garner more value than owners that stray from reality. A home is only worth what a buyer is willing to pay. Homeowners have to take into account the glut of foreclosures and short sales, because the buyers loan appraiser certainly will.
One action sellers can take that has become very popular is the auction or a date to review all bids. This maneuver can only work with distinct homes that have special qualities, like a great location. The other important considerations using this approach would be a competitive asking price and the market is currently depleted of anything similar to the home being auctioned. It’s difficult expecting bids on a home when there are four other comparable properties on the market. I recently used this technique on a home in Davis and received three bids at higher than asking price. The owner was obviously satisfied. No matter the direction a seller takes, price will always be the deciding factor in whether any home sells or sits. Buyers will continue buying fairly priced homes and rejecting those properties that have inflated prices. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities. ]]> Johnny Brooks http://www.realestateforum.com/blogs/johnny-brooks/7194-home-sellers-pinpointing-right-price.html http://www.realestateforum.com/blogs/johnny-brooks/7186-making-offer-assures-acceptance.html Wed, 09 May 2012 03:06:37 GMT Making An Offer That Assures Acceptance

May 9, 2012 by Johnny Brooks | Edit

1

0

i

Rate This

There are stories in neighborhoods throughout the country of the same buyer making numerous offers on homes and losing out to a higher or more attractive bid. This buying frenzy varies depending on location. I just had a buyer make an offer on a studio in San Francisco and went 3% above asking price. There were an astounding 30 offers on this fixer-upper and we were nowhere in the ballpark. it’s all relative and most properties will not have this type of hysteria. Every buyer has to have some emotional attachment to a home before making an offer, but the logical side realizes there is a bottom line or limit on what they will pay for any home.
Every situation is different and home buyers have to be in tune with the flow of that particular housing market. Whether the market is depressed or properties are promptly moving, serious buyers have to be conscious of those conditions. If homes in specific neighborhoods are receiving multiple offers, then buyers have to grasp reality and understand that even a full price proposal might not produce results. If a home has been on the market for a prolonged period, prospects can make the assumption there might be some room to negotiate price and terms.
When many prospects are attracted to the same home, motivation will decide which buyer purchases that property. The majority of buyers will not blindly offer a price drastically above the sellers asking price. What strategies can work that favor the buyer in negotiations on a property with multiple offers involved? The buyers realtor should find out as much about the sellers wants and desires as possible. These answers will assist the buyer in making a proposal that is more seller friendly. The price is vital, but occasionally not the most important criteria.
Homeowners that are purchasing another property and needs a swift close, will consider that point above price. Buyers are rightly protected by a number of contingencies in the purchase contract. Prospects can remove some of those contingencies that would make their offer more appealing. Sometimes it’s the small issues that can make a difference, two identical proposals and one is offering a larger deposit might sway a seller. Making an offer that assures acceptance should be the goal of every buyer, especially in this climate with adjusted prices and bargain basement mortgage rates. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities. ]]> Johnny Brooks http://www.realestateforum.com/blogs/johnny-brooks/7186-making-offer-assures-acceptance.html http://www.realestateforum.com/blogs/johnny-brooks/7153-home-buyers-not-much-sale.html Sun, 06 May 2012 00:33:48 GMT Home Buyers: Not Much For Sale

April 28, 2012 by Johnny Brooks | Edit

1

0

i

Rate This

Most housing prognosticators have forecasted a semblance of normalcy for the overall recovery in 2012. As the glut of good news continues, home buyers are stepping up in an effort to take advantage of great home values, before they start ticking up. The lure of historical low-interest rates have kept buyers focused on buying sooner than later. In many cases, there’s one important missing ingredient, where’s the houses. The dilemma for many buyers today are the minuscule number of properties to choose from. With such a long loan commitment, who can blame a buyer for waiting for the right home and not just accepting an undesirable second chose.
The unfortunate aspect with limited inventory and gobs of buyers are many of these prospects are interested in the same property. This scenario has created multiple bids on a number of homes. The quantity of homes will pickup as we move into the Spring and Summer months. The supply of buyers will also increase during what is considered the buying season, assuming interest rates do not escalate. More than likely we will continue having many buyers with the same good taste bidding on the same property.
Some homeowners that have hesitated selling for various reasons have filtered back to the market, with the goal of down sizing or purchasing a more spacious home. These owners have gotten wind of the upsurge in buyer activity and are taking advantage of the situation, along with the ridiculously low mortgage rates. For the last five or six years, sellers had no ability to call their own shots, buyers were in complete control. Sellers now have some sense they are in control of their own destiny.
The foreclosures and short sales will plaque the market for the next few years and many owners either can’t or won’t compete against those market-busting properties. Those under valued homes will probably keep many traditional sellers on the sidelines for the time being. Some markets with fewer distressed homes or short sales, like Davis, California have stabilized more quickly than our neighboring communities that have a majority of properties under-water or bank-owned. Buyers will continue battling other buyers for the same well priced homes and those sellers will be gratified for the clout they now possess. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities. ]]> Johnny Brooks http://www.realestateforum.com/blogs/johnny-brooks/7153-home-buyers-not-much-sale.html http://www.realestateforum.com/blogs/johnny-brooks/7151-pending-home-sales-equals-housing-recovery.html Sat, 05 May 2012 22:49:41 GMT Pending Home Sales Equals Market Recovery

May 1, 2012 by Johnny Brooks | Edit

1

0

i

Rate This

Evaluating a complete housing recovery this early in the year would be akin to complimenting a chef before the meal is served. Sure the food might sound good on the menu, but the true evaluation won’t come until the product has been tested. The accolades should be suppressed until after the summer months, when a true barometer of the recovery can be gauged. Most neighborhoods throughout the country are experiencing a revival of sorts, but just like the chef comparison a lengthy sample is necessary before we proclaim a housing market comeback.
If the first three months of pending sales are an indication, then we have rebounded nicely from the doldrums that besieged the housing market over the last few years. This is assuming those homes now pending move into sold status and home buyers continue purchasing properties at a brisk pace throughout 2012. A few factors that should keep the market churning along are mortgage lenders being more flexible with the loan approval process, stability of mortgage rates and the seemingly leveling of housing prices.
Home sellers have a big say in whether we continue the turnaround or plunge back into the abyss. By pricing their home competitively from the start, will help keep buyers active and aggressive. The limited inventory has kept many prospective home buyers on the fence waiting for the right home. Communities with a high number of short sales and bank-owned homes have benefited most from the increased activity. Homeowners have to be cognizant of those properties when deciding on a price for their home. Buyers are still looking for good value.
Many owners breathe a sigh of relief when they have an accepted contract, but that’s putting the carriage before the horse, it’s not a time to celebrate. There are an enumerable amount of issues that can arise that might alter the agreement. An unknown defect found during the inspection phase, loan difficulties for the buyer, property appraisals are just a few problems that can emerge during the pending stage that can quickly dissolve the deal. That’s one of the major differences between this cycle and the boom years. The chances were slim to none back in those days for a buyer to cancel a contract, it’s become more common today when disputes can’t be resolved for a home to easily go from pending to back on the market. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities. ]]> Johnny Brooks http://www.realestateforum.com/blogs/johnny-brooks/7151-pending-home-sales-equals-housing-recovery.html http://www.realestateforum.com/blogs/johnny-brooks/7150-where-will-home-values-five-years.html Sat, 05 May 2012 21:52:49 GMT Where Will Home Values Be In Five Years

May 4, 2012 by Johnny Brooks | Edit

1

0

i

Rate This

It’s human nature to be curious with what the future holds. Most folks would like to gaze into their crystal ball and tell what’s forthcoming. One thing is for sure when it comes to forecasting the future of real estate, we do not want the next five years to be a repeat of the last five years. Just like most commodities, real estate is cyclical, the difference being housing has a longer infallible cycle. The last five years have seen depressed home prices, lost jobs, an endless supply of foreclosure properties and enumerable short sales. Just like a patient after surgery, we are now heading into a recovery phase.
There are many different elements that will determine how quickly we completely recover. The downturn did not happen overnight and neither will the recovery. Home buyers confidence level is certainly peaking, but that could change swiftly, if mortgage rates drastically increase. Jobs are vital to the housing recuperation and a man without a job is a man without a home. A full-fledge conversion won’t happen until the steady stream of foreclosures subside. Short sales has had a devastating effect on home prices. The majority of short sales are under-priced and would probably have more value if they were being sold under traditional circumstances.
With most communities now seeing some light at the end of the tunnel, the pendulum has swung back toward market stability. There are steps in place that will assure we never go back to those dark days that encompassed the real estate industry. Lenders have a more rigid protocol than in years past, appraisers are actually doing more than driving by a property and instantly accessing value. Buyers for the most part are willing to pay a fair price for a home, but not a penny more. Realtors are doing their part by educating homeowners on the adverse effects of over pricing their property and steering home buyers away from those market dragging over priced listings.
Based on the past and the present, the future looks favorable. We should start experiencing some appreciation in the next couple of years and in five years the overall housing recovery should be in full bloom. Ultimately the economy will decide how quickly the housing sector recovers. Please visit my website at www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities. ]]> Johnny Brooks http://www.realestateforum.com/blogs/johnny-brooks/7150-where-will-home-values-five-years.html http://www.realestateforum.com/blogs/johnny-brooks/6685-highest-offer-always-best-offer.html Wed, 21 Mar 2012 19:40:53 GMT Is The Highest Offer Always The Best Offer?

March 21, 2012 by Johnny Brooks | Edit

1

0

i

Rate This

It’s obvious in most circles, the highest bid reaps the rewards. There’s some ambiguity with that philosophy when it comes to selling a home. With many serious buyers now flooding the market, it’s inevitable that some buyers will be simultaneously bidding on the same home. In most cases, these offers will be very competitive with each other and no clear-cut winner among these proposals. There could be such a small separation between each respective offer, that the eventual decision made by the owner, might just be a gut feeling, that’s better than a coin flip. There are instances when the highest offer doesn’t match some of the perks from the lower bid. A home buyer with a home to sell has little leverage when competing with a no contingency buyer. That type of proposal would have to be significantly higher in price to even be considered as a viable offer.
Home sellers have to contemplate other aspects of a contract than just the price. A buyer willing to purchase a home in “as is” condition might be more appealing than a buyer that submits a higher bid that request repairs. An offer with fewer buyer contingencies could be more attractive than an elevated price. The natural inclination is for an owner to look at price first. if an owner only focuses on the bottom-line, they could be making a huge blunder by overlooking other features in the contract.that could make or break the deal. All of these examples would assume your home receives multiple offers. If you are not one of the fortunate owners that have multiple offers, then as a seller you’re working from some disadvantages during negotiations with the buyer and fastidious bargaining is required.
Let’s assume the homeowner has more than one offer and they have selected the proposal that best fits their terms, timelines and price. With the erratic market being what it is and buyers changing their minds more often than we prefer, it’s valuable to have another party in a backup position. Having a backup offer gives the seller more leverage during tough negotiations with the buyer. The purchase contracts have lots of consumer protection for both buyers and sellers, it’s recommended owners have their real estate representative preview those protections with them before receiving an offer. Knowledge is power and understanding the barriers that can derail the deal is vital. Sometimes the highest offer is not the best offer. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities. ]]> Johnny Brooks http://www.realestateforum.com/blogs/johnny-brooks/6685-highest-offer-always-best-offer.html http://www.realestateforum.com/blogs/johnny-brooks/6683-interest-homeownership-rebound.html Wed, 21 Mar 2012 18:18:50 GMT Interest In Homeownership On The Rebound

March 18, 2012 by Johnny Brooks | Edit

1

0

i

Rate This

There’s a new horizon with the housing sector and both buyers and sellers are taking advantage of their good fortune. What has led to the resurgence from home buyers and the actuality they are now putting pen to paper and buying homes? Will this increased interest continue? With fewer properties on the market and more consumers shifting from prospects to buyers, homeownership is on the rebound.. With an economy getting healthy, the obvious progression should be a housing market gaining strength with fewer bumps in the road than in years past.
Everything is not rosy though and we can’t overlook the fact a quarter of current homeowners are underwater and many of those properties will be foreclosed on, or sold short of full payment. Banks will soon start releasing a backlog of foreclosure properties they have held off the market. These disturbing points can’t be discounted as we move forward. With each negative, we can find a positive. With the surplus of bank-owned properties soon to be released, this creates an ample supply of homes for buyers to choose from.
Housing prices and mortgage rates have fallen so far the monthly cost of owning is now more affordable than at any point in the last 15 years and is less expensive than renting in a growing number of communities. First-time buyers and investors have taken advantage of the reduced prices and families that sold their property through the short sale process not long ago are now drifting back to the market. This demand will enhance our chances for an accelerated recovery. Pending home sales are up and is a leading indicator of the direction our economy is heading. Real estate experts agree price fluctuations of 3% or less generally indicate that a market is stabilizing. If a region hovers within that range for several quarters, it’s safe to say that market has found it’s bottom.
Housing prices in Davis, California has experienced less than a 2% fluctuation over the last three years. There’s too much conflicting evidence to say we are completely out of hot water, but most signs are suggesting we are slowly climbing out of the market downturn that has plagued most of the country for the last 5 years. By their recent activity, home buyers are implying complete recovery will be sooner than later. Interest in homeownership is definitely on the rebound. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and the surrounding communities. ]]> Johnny Brooks http://www.realestateforum.com/blogs/johnny-brooks/6683-interest-homeownership-rebound.html http://www.realestateforum.com/blogs/johnny-brooks/6582-buying-home-when-multiple-offers-involved.html Sun, 11 Mar 2012 17:42:50 GMT Buying A Property When Multiple Offers Are Involved

March 9, 2012 by Johnny Brooks | Edit

1

0

i

Rate This

Your family has viewed a number of homes and found one as close to perfect as possible and absolutely adore everything about this property. You inform the realtor of your intentions to mull things over and your plans of making a decision soon. The next morning you awake with nervous energy and inform the agent to write an offer. Unfortunately after contacting the listing agent, there are three other offers on the table. Congratulations, you have great taste in homes, three other families have confirmed this. What should a buyer do under these conditions? This is a predicament many buyers are now finding themselves. In this scenario, buyers have a number of options at their disposal. The decision a buyer makes depends on their motivation and desire of owning that particular home.This is an uncomfortable position for any buyer, knowing absolutely nothing about the other proposals.
The limited number of homes on the market has created a flurry of buying activity and made many prospects skeptical of what the media pundits are proclaiming, that we are in the thralls of a buyers market and a declining housing market. Go tell that to consumers that are competing with other buyers for properties. With multiple offers only the strong survive. Buyers have to make an expeditious decision. Sellers are in command and will normally make no concessions under these circumstances. Your real estate agent can offer his expert advice on how to maximize your opportunity by making a sound, seller friendly proposal.
The mystery with the multiple offers are that they can happen within days of a property coming on the market or months later, after the owner has made needed price adjustments. As a prospective buyer, you have to assume worse case, these offers are all full price or above. There’s no other interpretations that a buyer can make, if the goal is to acquire that home. Is this property at fair market value? Will bidding at a higher price, decrease the chances this property will actually appraise? Will the higher offer affect your loan qualifications of buying this home? These are just a few questions that have to be answered before making that splashy offer. Each buyer has to look out for their own financial well-being and realize there are limits on how far they can comfortably bid. Only one offer gets accepted. The best mind-set to have in these conditions, if it was meant to be, it will be. This is not the last home you’ll fall in love, so patience might be the best solution. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs and easy access to view local area homes for sale in Davis, California and the surrounding communities. ]]> Johnny Brooks http://www.realestateforum.com/blogs/johnny-brooks/6582-buying-home-when-multiple-offers-involved.html