Diana Newkirk's Personal News
 
Date: August 2, 2006
Subject: Tax Benefits for Homeowners 55+
Many homeowners are unaware of the benefits afforded them through Prop 60. Be sure to read about how this valuable law protects citizens 55+ by clicking on the provided link to the right. I would be happy to speak to you personally to explain how this law can literally save you thousands per year on property taxes.
Date: August 1, 2006
Subject: Picking and Choosing the Next Real Estate Boom Area

by M. Anthony Carr
Everyone's looking for the next real estate rush -- the place where people will be able to buy at $100,000 and sell for $200,000 in six months. So I get emails about whether one town is a better place to buy over another. Is it time to buy or sell waterfront property? Is land the next boom market for real estate?
The answer, simply, to all the above is "yes." Yes, if all the parameters that support a growing economy are in place and about to move forward. Yes, if the investment meets your goals on your budget at this time. Yes, if you have the proper financing in place to create a positive cash flow or find a property that is moving up in value at a clip higher than inflation.
Real estate, unlike stocks or bonds, is a good investment any time … you just have to know where to buy. Like the old adage goes: location, location, location. The location is key and depends on the economic picture of that location at the time. Wouldn't you have loved to have bought a house in the D.C. market, for instance, seven years ago? Any property would have done you proud. The whole market grew at 153 percent in that period of time. Thus, location and timing were key, all based on the advent of the latest economic boom, coupled with an affordable, but low supply of adequate housing.
So where can you find that formula now? Start looking at smaller markets where federal spending or private investing is moving upward. For the start-up investor, look around your state first. And then use the following points as a guide on whether it's a good time to buy:
Low housing prices. Where do the prices stand as compared to the potential for rental income? If a rental unit can be purchased so that the monthly rent covers the mortgage and tax payments, then this makes for a good start on the investment road. While many would-be investors look at the asset growth of an investment, they should really be looking at the net rental income instead. If you can make 8 to 12 percent annual return on the value of a home in rental income, that is a good investment indeed.
To find housing prices, start with a web search such as, "springfield virginia housing prices," or whatever community you're researching.
Stable economy. What's happening on the state and local basis. Again, begin your search by finding the state/local economic development authority. You'll be looking for economic growth as compared to the U.S. economy and how it's headed as compared to the past few years. Look for economic forecasts, charts, employment/unemployment data, etc. Pour over these with a fine tooth comb to find out if the community where you want to invest is moving upward, headed down, etc.
New jobs/plants/federal spending planned. In the above searches for the current economic picture, look for what's happening as far as growth. Are new corporations moving in to the market? Are current companies expanding their facilities? Are there job cuts or job growth? If you see indications that growth is on the way, get your check book out and start looking for an investor mortgage. But make sure you check one more thing.
Rental vacancy rate. Okay, the housing prices are within your budget and the economy is stable; heck, it's even about to grow. Great. How's the rental inventory? Is there a lot of it? Is there too much of it? The vacancy rate let's you know how long your property will be on the market and how much rental income you'll be able to pull in each month. Will you have a positive or negative cash flow each month?
Once you have these points in your plan covered, you're now ready to start looking at property. Get together your real estate team (agent, lender, insurance agent, contractor, etc.) and hit the road to building wealth.
Date: April 26, 2005
Subject: Avoiding 7 Costly Mistakes of Selling Your Home

by M. Anthony Carr
There are always appropriate steps to investing in real estate and hopefully, you've garnered many of them right on these pages. However, there are also inappropriate steps sellers can walk down when it comes time to put their house on the market.
For instance, the seller in Virginia, who thought the half bath the builder had located at the front of the house would really be better situated toward the back of the main level (though all the other similar models had the powder room in the same place for the previous 20 years). He got hung up on this detail so much, that he just had to move it -- and did -- for thousands of dollars, just so he could get it on the market the "right way." His hang-up may have settled some deep-seated emotional need for him, but it didn't draw any more buyers, and it drained his bottom line. You might say, that was a costly mistake.
Real estate broker and author Sid Davis has identified in his book "A Survival Guide to Selling a Home," another seven costly mistakes that many sellers make when it comes time to put their home on the market. In my business, I've seen each one of these mistakes played out and it just makes me shake my head as to why, sellers forge ahead with unwise strategies, instead of listening to the voice of an experienced professional.
Mistake 1: Putting the home on the market before it's ready. Most times this happens because the seller gets impatient or is a procrastinator and has pushed himself up against a moving deadline without getting the pre-sale work done. So it comes on the market with the horrible carpet (that gets replaced during the marketing of the home); or they are painting it while it goes on the market. Presentation is everything -- so get the work done before marketing the property.
Mistake 2: Over improving the home for the neighborhood. This happens with additions, bump outs, and upgrades that make the home stick out from among its competitors so much that it's an anomaly, instead of a nice addition to the community.
Mistake 3: Pricing the home based on what the seller wants to net. This pricing strategy always ends in failure. Sellers can control the "asking" price, but they don't control the "sales" price. The market does. It doesn't matter what the seller wants, the price is determined by the black-and-white, matter-of-fact reality of the market.
Mistake 4: Hiring an agent based on non-business factors. Make sure you're hiring a professional with a proven track record. It might be nice to hand over your largest asset to your nephew who just got his license -- but make sure he has a mentor to keep your deal from going south.
Mistake 5: Getting emotionally involved in the sale of the home. This is one of the biggest challenges home sellers face when putting their house on the market. Once you decide to sell your house, it's no longer a home, but a commodity. It needs to be prepared as a commodity, marketed as a commodity, and priced as a commodity. It doesn't matter what you "want," only what the market can bear on pricing. People are going to come in to kick the tires, so to speak, and you can't get emotional about how they may or may not appreciate the nuances of your home of seven years.
Mistake 6: Trying to cover up problems, or not disclosing them. Most states have a property disclosure/disclaimer form -- use it wisely. Just because you disclaim doesn't mean you cannot be sued later for the leaky basement, or dilapidated heating/air system that's discovered 30 days after settlement.
Mistake 7: Not getting your ducks lined up before trying to sell. This would involve financing, reading the fine print on your current mortgage to ensure no pre-payment penalties, not listening to the particulars of your local market, etc. If your local market is dictating lower home prices, then lower it early, not later -- it will cost you more. If the local market dictates selling your home first, then buying second, do it in that order, or vice versa.
Avoiding these mistakes is not that difficult. There are plenty of resources (like this publication) and professionals, who are there to help you step over the pitfalls. Do the research early, and listen to that voice in your head (it's probably the whispers of the finance, real estate, insurance person who's warning you of a hole you're about to step into). Sell well.
Date: January 8, 2005
Subject: Budgeting For Household Expenses Means More Than Mortgage Payment
by M. Anthony Carr
The new year has begun, and this is a great time to look at the true cost of your housing to see where you may need to budget extra spending for upkeep or be able to slice your budget. When a buyer shops for a house, the lender generally will take into account 28 percent of income to be used for the mortgage payment. Some mortgage plans allow more. A mortgage program I used had only one ratio, 41 percent, meaning that all my debt -- including mortgage, credit cards, etc. -- could not exceed 41 percent of my gross income.
Well, looking at your mortgage ratio shouldn't be confused with planning for your overall housing ratio. There's a lot more to housing expenses than just the mortgage payment. Nevertheless, let's start with that monthly payment and see how you can chop it up to save you money.
PITI
The mortgage payment, for most people, is made up by the principal, interest, taxes and insurance, or PITI. As you plan for budgeting this year, first look to see how you can rearrange these numbers. Have you been watching rates? They are well under six percent again. If you missed the huge refinance boom of the last five years, it may have returned for those who need to lower their payment. Bankrate.com reports a 30-year fixed for as low as 5.204 with 2 points from one lender. (Keep in mind, a point equals one percent of the value of the mortgage, i.e., a point on $200,000 would be $2,000.)
If you're looking to remove your mortgage altogether, then don't overlook the 15-year mortgage rates which at this writing stand as low as 4.710 with 2 points. If you're looking to refinance, look at the bottom line as much as the interest rate. The fees for getting into a mortgage can outweigh the savings garnered from the low rate and corresponding low payment. If it would take you 10 years to get your money back from the low rate because of all the fees you paid up front, it may not be worth the refinance. Check the fine print and compare the fees as much as the interest rate.
Utilities
Here's another big part of your monthly household expenses that many homeowners don't really budget in the home expense category. Electricity, gas, water, cable/satellite, trash removal, even your phone expenses (wireless and land based) are all part of the utilities world now. How much are you spending? Is it within your means or are you overspending, taking away from being able to get out of debt. If your goal this year is to remove all debt, then start here -- economize the electricity, gas and water, cut the cable/satellite, and shop your waste removal vendors. I've seen some cable/satellite bills exceed $125 per month -- which could be used to hammer down credit card debt. The cell phone, as well, has become an expensive need/luxury for many families, when you consider that each kid has a phone with a $30 monthly bill attached to it.
Homeowners Insurance
Call your insurance company to find out if your coverage is up to date. You want to determine if you're carrying enough insurance to replace your home in case of an absolute loss. When you talk with a customer service rep, don't be surprised when the replacement cost figure they quote is less than the home value you ascertained from the appraiser. The insurance company is looking to only replace the house, not the land, thus the replacement cost will most likely come in under the market value. Shopping this policy could also save you a few hundred dollars per year.
Tax Bill
Are you being charged too much in property taxes? Tax offices across the country are moving their tax records online, making your search into your home's past a lot easier. Once you get to your record, investigate whether they have you listed for the proper number of bedrooms, baths, finished area, garage, etc. An improper designation on your record could mean you're paying way too much in taxes.
Maintenance Spending
This is a category we tend to forget to budget spending. Landscaping/lawn upkeep, paint, pest protection and weatherization can add up to hundreds of dollars per month. For some homeowners in larger properties, it may even be $1,000 per month.
Don't forget to include these expenses in your monthly spending plan:
Lawn/landscape care: Weed killer, seed, fertilizer, lime, mulch, perennials, annuals, fence repair, grass bags, tool maintenance (gas, oil, filing, replacement blades, etc.), equipment rental and anything else you may use to keep your curb appeal more appealing.
Irregular large expenses: Driveway repair, new gutters, roofing, window cleaning, deck/siding power wash, pest inspection and repair (termite, rodents, etc.), chimney sweep and other annual or biannual expenses.
Let this be the year you get a handle on your home care cost and control the spending so that you can begin investing.
Date: October 25, 2004
Subject: Greenspan: Housing Market Bubble Bursting 'Most Unlikely'

by Broderick Perkins
WASHINGTON, D.C. - Most homeowners -- 75 percent of them -- have a 20 percent or greater equity stake in their homes and that's plenty to cover a significant drop in home prices.

However, the vast majority of homeowners needn't fear big price drops because such an event will likely occur only locally. Economic diversity holds sway over statistical models that predict a nationwide home price drop.

That's according to Federal Reserve Chairman Alan Greenspan who in a recent speech repeated a refrain that punches holes in theories that the housing market is an overinflated bubble about to burst.

"These concerns cannot be readily dismissed. Debt leverage of all types is often troublesome when one judges the stability of the economy. Should home prices fall, we would have reason to be concerned about mortgage debt; but measures of household financial stress do not, at least to date, appear overly worrisome," he said in a speech before the America's Community Bankers Annual Convention this week.

Greenspan said 75 percent of all outstanding first mortgages were originated with a loan-to-value ratios of 80 percent or less and when all mortgages are considered the loan-to-value ratio is about 45 percent, giving the nation, as a whole, a 55 percent equity stake in residential real estate.

"It would take a large, and historically most unusual, fall in home prices to wipe out a significant part of home equity," he told conventioneers.

Greenspan said housing price bubble theories also assume there is too much speculation in the market and that home buyers are looking at homes as get-rich-quick investments, but in reality expensive buying and selling fees and the need to have a roof over one's head prevent such conditions.

He said investors accounted for only 11 percent of the total home mortgage originations in 2003 and represent a small fraction of the overall housing market.

"Overall, while local economies may experience significant speculative price imbalances, a national severe price distortion seems most unlikely in the United States, given its size and diversity," Greenspan said.

He did voice concerns about the rapid run up in household indebtedness which has outpaced income growth. And the chairman does agree that home price appreciation will slow down from its frenetic pace of recent years.

"Most analysts, even those who do not foresee a mounting bubble, anticipate a slowdown in both home sales and the rate of price increase...If house turnover and price increases both slow, and presumably mortgage debt extensions on new homes do as well, increases in home mortgage debt will slow. Outright declines in mortgage debt seem most unlikely. Home mortgage debt has increased every quarter since the end of World War II."

He also said:

One percent of the average annual growth of home mortgage debt comes from renters who have become homeowners since the early 1990s.

Information technology-driven lending improvements has enabled more underserved borrowers to buy homes without significantly increasing the number of households with over-extended indebtedness.

Recent higher debt-to-income ratios "some of which is more statistical than real" has only modestly increased the level of financial strain on households.

Persistently elevated levels of bankruptcy indicates pockets of distress in the household sector, but only to a minimum.

Most households are financially stable. The Federal Reserve's measures of financial stability, the debt-service ratio and the financial obligations ratio rose during the 1990s, but the debt-service ratio stabilized in the past three years and the financial obligations ratio has dropped since 2002. Much of that is due to low mortgage rates which allow homeowners with equity to buy more for less.
"Indeed, the surge in cash-out mortgage refinancings likely improved rather than worsened the financial condition of the average homeowner. Some of the equity extracted through mortgage refinancing was used to pay down more-expensive, non-tax-deductible consumer debt or to make purchases that would otherwise have been financed by more-expensive and less tax-favored credit," Greenspan said.

"In addition, a significant decline in consumer incomes or house prices could quickly alter the outlook; nonetheless, both scenarios appear unlikely in the quarters immediately ahead. If lenders, including community bankers, continue their prudent lending practices, household financial conditions should be all the more likely to weather future challenges," he concluded.
Date: October 1, 2004
Subject: Mortgage Market Meandering Makes Rate Locks More Meaningful
by Broderick Perkins

Mortgage rates aren't as low as they've been all year, but after four consecutive weekly decreases they do offer a new opportunity to lock in mortgage costs.
"Rates are not as low as they were in March, but if anyone missed that cycle they could refinance now or jump in (as a home buyer) and take advantage," said Warren Myer, CEO of Myers Internet Services, a San Jose, CA-based publisher of the LoanApp.com and BestRate.com consumer mortgage websites.
The average fixed interest rate on 30-year conforming mortgages stood at 5.81 percent on Aug. 19, after four straight weekly declines.
The Aug. 19 rate isn't as low as the March 19 average of 5.38 percent -- this year's low point -- but it is much lower than the 6.24 percent average during the same period last year and this year's high of 6.34 percent, according to Freddie Mac's weekly Primary Mortgage Market Survey.
Fixed interest rates in the Southeast were even better at 5.73 percent. In the West the average was 5.76 percent. Regional market conditions account for the differences, experts say.
"After earthquakes lenders think California is not the best place to do business, but right now because loan sizes are larger (than much of the rest of the nation) you can get better prices. There's not a huge difference, but lenders also see the West as much more competitive. People shop harder," said Myer who also studies consumer borrowing habits nationwide.
In any event, given this year's ups and downs in the mortgage interest rate market, an interest rate lock is a good way to secure a mortgage interest rate today for a loan that might not close weeks or even months down the road when rates could trend up.
"In the next 12 months, anticipate rates, including the cost of housing to continue to increase," said Andrea Caldwell, with Century 21-Alpha in San Jose, CA.
"This is a small window of opportunity that, over the long haul, will probably be slammed shut," she added.
A rate lock is a lender's guarantee that your mortgage will come with a specific interest rate, set points, and other fixed costs. The lock is also good for a specific period -- if you fail to complete your home purchase or refinance before the clock runs out, and interest rates rise, you'll pay the higher rate.
If interest rates fall during the lock period you may not be able to take advantage of them without paying additional rate lock costs -- unless the rate lock contract allows you to cash in on the lower rate.
Rate lock policies and costs vary widely.
Some lenders automatically extend the lock only for a set period even if your loan doesn't close on time. Other lenders will automatically extend the lock until the loan closes, perhaps with one free extension. Still others will charge a small fee to extend the lock.
Locks should be long enough, initially, to allow for settlements, contingencies, and other loan processing events. The average rate lock is for 30 to 45 days.
"If you cannot find a property in a week and if you lock in only for a week what good is the lock?" asked Jack Tereza, broker/owner of Brooktree Realty in San Jose, CA.
Rate lock costs are just as variable from lender to lender. Some charge up-front fees, others levy fees at settlement, still others add a fraction of a percentage point to the loan's rate. Cost can also vary based on the length of the lock period, any options you might choose and the mortgage program itself.
With so many variables, a written lock is mandatory. Oral agreements won't withstand legal scrutiny, should it come to that.
The written lock contract should lock in as many variables as possible -- the interest rate, points, initial lock date, lock period, lock cost, post-lock options, and all the other details.
Lock as soon as you see the desired rate -- "on application" -- otherwise you'll have to risk rates rising or falling. Locking on application is key if you barely qualify at today's rates and an increase in rates would make buying unaffordable.
In today's hot sellers' market, Tereza says the rate lock -- a lender's promise for a given interest rate and other loan costs -- goes hand-in-hand with a preapproval -- a lender's promise to loan you a given amount.
"My buyers have to be preapproved before I will present their offer. When you submit your offer if you aren't preapproved and there are two others who are preapproved you are dead," Tereza said.
Date: September 15, 2004
Subject: The Good And The Bad Of Multiple Offers

by M. Anthony Carr
A reader recently expressed that she felt there were no "rules" in the arena of entertaining multiple offers in a real estate transaction. What I have found in many instances, is that what is legal and acceptable practice isn't what many buyers want to hear.
"You should have told me you had multiple offers … that's not fair," is usually the first complaint filed from the party who loses out on a contract. Then they go looking for someone to file a complaint against or to sue. (We are, unfortunately, the most litigious country on the globe.)
On the other hand, I've heard some buyers complain that they believe the listing agent is lying and only trying to push up their offer when they are told there are multiple offers -- then they demand to see the other offer. They assume that the seller is simply trying to push up the price by claiming there are other offers when none actually exist.
Revealing the status of multiple offers is up to the seller. The cold hard facts are that the buyer has to sit and wait for a response from the seller (depending on whether or not he wrote in a deadline for responding). Nevertheless, the buyer has no "rights" to know if there are more offers.
The National Association of Realtors' Code of Ethics has several Standards of Practice (SOP) in dealing with multiple offers. First of all -- a Realtor "shall submit offers and counter-offers objectively and as quickly as possible."
In fact, all offers must be submitted until the seller has made a final decision. "When acting as listing brokers, REALTORS shall continue to submit to the seller/landlord all offers and counter-offers until closing or execution of a lease unless the seller/landlord has waived this obligation in writing. REALTORS shall not be obligated to continue to market the property after an offer has been accepted by the seller/landlord..."
As far as telling buyers about multiple offers, this situation apparently became so prevalent that about a year ago the NAR instituted the following instructions in its SOP: "REALTORS, in response to inquiries from buyers or cooperating brokers shall, with the sellers' approval, divulge the existence of offers on the property."
The key wording in this phrase is "in response to inquiries." It's a kind of "don't ask, don't tell" situation for the listing agent. She's not going to tell the buyer about multiple offers if the buyer doesn't ask -- however, reading the SOP further, you can see that the Realtor is not obligated to divulge the presence of multiple offers, either, without the sellers' approval.
In a seller's market, some agents will place a deadline on when all offers must be submitted. Once the offers are submitted, the agent then settles down with the seller for a marathon contract review. The real area of contention comes when offers float in one after the other over a few days. Thus, the usual practice of dealing with multiple offers would go something like this:
Each offer is presented to the seller for consideration.
The seller will hear all offers before making a decision.
A seller can accept or begin countering more than one offer at a time, however, s/he must set an order of precedence, i.e., primary offer, first backup contract, second backup contract, etc.
Be sure to get released from an offer before finalizing the selected offer, i.e., don't sell the house twice.
Multiple offers can be a good thing. In a fast-paced market, they are considered the norm and the presence of such inflates pricing. The buyer who works with an agent who understands the aggressive techniques needed to escalate their offer, will win. However, you can also have buyers pull contracts during multiple offer situations because they want to deal in a less competitive environment.
It's interesting to hear from buyers who are outbid in the selling process and start talking about "fairness" in a bidding war. There's this idea that just like kids lining up for a drink at the lemonade stand, that if they get there first, they get to drink the freshly made beverage at the price posted without any interference from the kid in the back of the line.
In real estate, the seller doesn't care when you got there -- he or she is looking at basically one thing -- what's the net dollar amount to the seller.
Date: August 29,2004
Subject: Mortgage Market Meandering Makes Rate Locks More Meaningful

by Broderick Perkins
Mortgage rates aren't as low as they've been all year, but after four consecutive weekly decreases they do offer a new opportunity to lock in mortgage costs.
"Rates are not as low as they were in March, but if anyone missed that cycle they could refinance now or jump in (as a home buyer) and take advantage," said Warren Myer, CEO of Myers Internet Services, a San Jose, CA-based publisher of the LoanApp.com and BestRate.com consumer mortgage websites.
The average fixed interest rate on 30-year conforming mortgages stood at 5.81 percent on Aug. 19, after four straight weekly declines.
The Aug. 19 rate isn't as low as the March 19 average of 5.38 percent -- this year's low point -- but it is much lower than the 6.24 percent average during the same period last year and this year's high of 6.34 percent, according to Freddie Mac's weekly Primary Mortgage Market Survey.
Fixed interest rates in the Southeast were even better at 5.73 percent. In the West the average was 5.76 percent. Regional market conditions account for the differences, experts say.
"After earthquakes lenders think California is not the best place to do business, but right now because loan sizes are larger (than much of the rest of the nation) you can get better prices. There's not a huge difference, but lenders also see the West as much more competitive. People shop harder," said Myer who also studies consumer borrowing habits nationwide.
In any event, given this year's ups and downs in the mortgage interest rate market, an interest rate lock is a good way to secure a mortgage interest rate today for a loan that might not close weeks or even months down the road when rates could trend up.
"In the next 12 months, anticipate rates, including the cost of housing to continue to increase," said Andrea Caldwell, with Century 21-Alpha in San Jose, CA.
"This is a small window of opportunity that, over the long haul, will probably be slammed shut," she added.
A rate lock is a lender's guarantee that your mortgage will come with a specific interest rate, set points, and other fixed costs. The lock is also good for a specific period -- if you fail to complete your home purchase or refinance before the clock runs out, and interest rates rise, you'll pay the higher rate.
If interest rates fall during the lock period you may not be able to take advantage of them without paying additional rate lock costs -- unless the rate lock contract allows you to cash in on the lower rate.
Rate lock policies and costs vary widely.
Some lenders automatically extend the lock only for a set period even if your loan doesn't close on time. Other lenders will automatically extend the lock until the loan closes, perhaps with one free extension. Still others will charge a small fee to extend the lock.
Locks should be long enough, initially, to allow for settlements, contingencies, and other loan processing events. The average rate lock is for 30 to 45 days.
"If you cannot find a property in a week and if you lock in only for a week what good is the lock?" asked Jack Tereza, broker/owner of Brooktree Realty in San Jose, CA.
Rate lock costs are just as variable from lender to lender. Some charge up-front fees, others levy fees at settlement, still others add a fraction of a percentage point to the loan's rate. Cost can also vary based on the length of the lock period, any options you might choose and the mortgage program itself.
With so many variables, a written lock is mandatory. Oral agreements won't withstand legal scrutiny, should it come to that.
The written lock contract should lock in as many variables as possible -- the interest rate, points, initial lock date, lock period, lock cost, post-lock options, and all the other details.
Lock as soon as you see the desired rate -- "on application" -- otherwise you'll have to risk rates rising or falling. Locking on application is key if you barely qualify at today's rates and an increase in rates would make buying unaffordable.
In today's hot sellers' market, Tereza says the rate lock -- a lender's promise for a given interest rate and other loan costs -- goes hand-in-hand with a preapproval -- a lender's promise to loan you a given amount.
"My buyers have to be preapproved before I will present their offer. When you submit your offer if you aren't preapproved and there are two others who are preapproved you are dead," Tereza said.
Date: August 18,2004
Subject: Home Sale Values: The Truth Is Out There

by M. Anthony Carr
I heard of a news story the other day on a local radio station that blew me away. Apparently, a local real estate agent has a condo listing that has lingered on the market for a while and called a reporter from this station to complain about it. The reporter quoted him and determined that the real estate market in Montgomery County, MD was, indeed, slowing down.
What’s so ludicrous about this is that the president of the Greater Capital Area Association of Realtors, James Kneussl Jr., had also been interviewed for the story, he says, and he shared with the reporter how all numbers were heading upward – except for one – the days on market. It was taking a shorter period of time for houses to sell in his county – namely, 18 on average. When he heard the story air, he expected to hear his quotes coming out to balance the nay-saying agent – but it didn’t happen. The reporter quoted the agent’s negative observation, instead of sticking to the local statistics which were shared with her and which were readily available online and through other sources.
This is a prime example of not believing everything you hear in the media and read in the newspapers (except here, of course).
Well, there’s a way to get to the bottom of any real estate market very quickly by looking up your local or state Realtor association and clicking on the link that leads to market statistics. Not all local associations carry statistics and in those cases the states do. Furthermore, in some localities, the statistical data may be hosted by the local multiple listing service, which may be owned by a separate entity.
In the Washington, DC suburban area, that web site is www.mris.com – the official web site for the Metropolitan Regional Information Systems, Inc. Here, you’ll find two monthly pull-down reports for MLS information for 56 counties and cities in the company’s coverage area from Pennsylvania to Virginia.
It’s a great tool to use to see where home price trends are headed. It’s not such a great tool to price your individual house, because it’s too broad to determine an individual home’s current value.
Nevertheless, if you want to know how your market is moving -- up or down -- finding the local jurisdiction’s web site is a very good start. To locate any local set of stats, simply click by www.Realtor.com, scroll down the page and click State & Local Associations, under “About the National Association of Realtors.” Then, just drill down to your local Realtor association from the state level.
You may find your local association, then determine that they don’t carry their local stats – click back to the state list and click the state’s web site, which usually carries all the numbers for the state, county by county.
Your best source of finding out the value of your home’s value is still by using your neighborhood real estate specialist or appraiser. The numbers you’ll find reported on an association’s site is a look at your community on a county or city level. To find out your home value, you need an analysis of homes that have sold in your neighborhood like your house and the local sales force or appraisal group’s are best equipped to determine that value.
Regardless of the fact if your market is hot or cold, if your home is lingering on the market, it doesn’t mean the whole market is falling – it may mean you simply have priced it too high or the condition of your property does not reflect your asking price. If that’s the case, review your pricing with your listing agent and discuss a price drop. Keep in mind, the “market” doesn’t care how much you put into the remodeling or how much money YOU think you can get out of it. The market reflects what the buyer is willing to pay and what sellers are willing to accept, period.

 

www.diananewkirk.com