Wednesday, June 29, 2011

The Better Bargain: Foreclosure or Short Sale?

Repost from: Daily Real Estate News | June 28, 2011 |

Short sales and foreclosures have flooded the housing market in recent years, and buyers are often drawn to the bargain prices but may be hesitant to jump into what usually is a difficult transaction and a long process.

Bankrate.com recently tackled the question of “Which to Buy: Short Sale or Foreclosure?” in an article that helps buyers weigh the pros and cons of a distressed property. Experts note that the question largely depends on buyers' situations, how quickly they need a home, and their tolerance for fixer-uppers.

Foreclosure Pros and Cons
Buying a foreclosure is often faster than purchasing a short sale. Plus, buyers often can negotiate closing costs and price in foreclosure sales, Elaine Zimmermann, a real estate investor in Memphis, Tenn., told Bankrate.com.

However, abandoned homes in foreclosure can deteriorate very quickly so the buyer may need to weigh the condition of the home and whether they want a fixer upper. Scarred walls and carpets and appliances that were damaged by the former owner are not uncommon in a foreclosure, says David Richardson, an inspector in the Detroit area who's certified by the American Society of Home Inspectors.

Short Sales Pros and Cons
A short-sale home is still owned by the occupant, so it tends to be in better condition than a foreclosure, experts say.

"The short sale is, in my opinion, far better than buying a foreclosure because the home is generally in better condition because it's been occupied," says Gwen Daubenmeyer, a certified distressed property expert with RE/MAX in Detroit. "The utilities have been maintained, usually the lawn is maintained, those kinds of things."

But short sales often can take a longer time than a foreclosure to close. However, the federal Home Affordable Foreclosure Alternatives program, or HAFA, may be able to help speed up the short-sale process since it has created a timeline to hold mortgage lenders accountable, but still “it’s not perfect by any means,” Daubenmeyer says.

From the desk of Dan Basil, The Basil Group:

Let's face it, it's been a tough economy this past few years and things happen to good people. We're hear to help with resources for you to make a wise decision when wading the unknown waters of what to do with your home when you're facing a financial struggle.

The Basil Group has resources that are at no cost to you to help determine your options if you owe more than your home is worth and need to sell your home. We have had success with working with many lenders and a lawfirm partner to help our clients shortsale their home. Call today for a private, no obligation consultation. (612) 280-5046

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Monday, June 06, 2011

Two Consecutive Weeks of Increased Sales in the Minneapolis St Paul Real Estate Market

Weekly Market Activity Report

Buyer activity in the Twin Cities metro area increased a colossal 59.2 percent over last year, the strongest year-over-year gain since the week ending October 3, 2009. That's a win any way you look at it, especially after 52 of the past 53 weeks showed year-over-year declines in buyer activity.

The post-tax credit drop-off seen at this time last year is driving this shift while current purchase levels have been on a modest but steady seasonal uptick. So far, sales levels are on track with 2007 and 2008 trends.

The change at this time last year is also showing up on the seller's side, where 1,523 new homes were introduced, or 3.3 percent more than the same week in 2010.

Overall, we've seen four consecutive weeks of gains in seller activity and three consecutive weeks of gains in buyer activity.

Inventory levels are preparing to round off their seasonal peaks. The 23,920 Active Listings for Sale are currently 10.6 percent below year-ago levels. That marks the 17th consecutive week of declines, a phenomenon not seen since spring 2010.

If you're not working with a Realtor, contact The Basil Group at info@thebasilgroup.com or call 763 550 3888 . We'll provide extraordinary real estate service with respect for you, unmatched knowledge and expertise. In many cases, we will save you money, time and headaches with your real estate purchase or sale.

Wednesday, June 01, 2011

Inventory Supply Behind Increased Sales in the Twin Cities Minnapolis St Paul Housing Market

The 889 purchase agreements signed in the Twin Cities for the week ending May 21 were 40.2 percent higher than the same week in 2010. That's a big number, and it's certainly good news, but let's break it down.

Three short weeks ago, current sales activity was 37.4 percent below last year's levels. The truth is current sales levels have been slowly but steadily increasing all year. The sudden change from negative to positive year-over-year Pending Sales comparisons reflects sharply declining 2010 post-tax credit activity rather than skyrocketing 2011 activity. Even so, double-digit year-over-year gains are a welcome sight.

The change in seller activity was less dramatic. New Listings were up 7.9 percent with 1,706 new homes introduced to the market. This is the third consecutive week of year-over-year gains in listings, yet the three-month average shows a 19.7 percent decline compared to last year.

At 23,767, Active Listings for Sale are 10.0 percent lower than last year at this time.

We all know the laws of supply and demand. As the ratio between sales exceeds the the replenishment of inventory, prices begin to stabilize and the tides change between those selling their home and those who wish to buy those homes.

What should you do? If you're thinking of selling, strike while the iron is hot. Get your home on the market while there is less competition. If you're buying, buy now before the market realizes the change and before the current inventory of premium listings gets picked over.