"Grants for Grads" Loan Program
There is a new grant available to help get Ohio residents to move back to Ohio after graduating college . This will give graduates a 2.5% down payment grant toward the purchase of their first home. That means only a 1% down payment for the buyer. To qualify you would have had to graduate from an Ohio high school and obtained some type of degree in the last 18 months (from any state). Let me know if you think you may qualify and I can put you in touch with a loan officer.
Tuesday, October 9, 2012
Tuesday, September 25, 2012
Monday, September 24, 2012
Home sales are up! Average prices are up! Rates are low! It is time to buy a house!
Home Sales Are UP UP UP
Home Sales Are UP UP UP
Friday, July 27, 2012
Foreclosures
If you want a list of foreclosure/bank owned houses just ask your Realtor. NEVER sign up on a web site that asks you for money in return for a list of foreclosures! This information is FREE and those sites are a scam.
Saturday, July 7, 2012
Harrison
Business is booming is booming in Harrison! There are a lot of buyers in the $100,000 - $200,000 price range. It is a great time to try and sell!
Monday, July 2, 2012
Tuesday, March 20, 2012
Who Represents You?
Sponsored By
John Adams
One of the topics perennially facing the world of real estate is the issue of agency. Some would have you believe that it really doesn't affect you, the buyer, and that nothing much has changed. But they are wrong.
The topic of agency is important to you because it answers the most basic and fundamental question that can be asked of any real estate professional: Who do you represent in this transaction?
Until that question is answered, you may be left with the impression that all agents who work with buyers actually represent those buyers, and that you have somebody going to bat for you in this transaction. Well, the issue of agency is important because without it, we can never be sure who represents who.
Here's the scenario:
You meet a really nice agent at an open house named Bonnie. Even though Bonnie's house is not right for you, she tells you she has others to show you that fit your needs exactly. You spend an hour or so with Bonnie looking at a half dozen homes and talking about your needs and your wants. During the course of the conversation, you volunteer that you have $100,000 cash to spend and that you will not go over $100,000 purchase price no matter what. Then you find the perfect house. Asking price is $100,000 but you decide to offer $92,500 based on recent sales in the area. During negotiations, the seller asks Bonnie directly how much cash you have and how high will you go? What does Bonnie say?
Here's the answer: Unless you have signed a "Buyer Agency Agreement" with Bonnie making her your buyer agent, she is most likely acting as a sub-agent to the listing broker who represents the seller. If that is the case, she has a fiduciary obligation to the seller to disclose to him any information she has that might "promote or protect his interest" in the transaction. Guess what? Bonnie has that information.
The Seller, now having knowledge of your financial position, counters at a full $100,000. He knows you can afford it and that this price falls within your desired range. He also knows that you have seen a number of other homes and that his is the one you want.
Regardless of what eventually happens in this scenario, it can hardly be called an even playing field. So, how can you protect yourself from a possible disclosure required of a seller's agent?
1. Make sure that the agent you are working with has agreed, in writing, to represent you as a "Buyer's Agent." This will mean signing a buyer brokerage agreement in which you promise to work only with that particular agent for a specific period of time, often 90 days. It also means that you promise not to buy from anybody else, even FSBOs, without involving your buyer's agent. In almost every case, the commission will still come from the seller, but your agent must present the offer.
2. Never say anything to anybody unless you would be willing to have that information repeated into a seller's ear. Assume that everybody, and I mean everybody, is working for a seller unless you have specifically hired them to work for you. And even then, be discreet. During the second world war, the military promoted a phrase designed to stop idle gossip: Loose lips sink ships! You would do well to adopt that philosophy in your home-buying as well.
Copyright © by Move, Inc.
Sponsored By
John Adams
One of the topics perennially facing the world of real estate is the issue of agency. Some would have you believe that it really doesn't affect you, the buyer, and that nothing much has changed. But they are wrong.
The topic of agency is important to you because it answers the most basic and fundamental question that can be asked of any real estate professional: Who do you represent in this transaction?
Until that question is answered, you may be left with the impression that all agents who work with buyers actually represent those buyers, and that you have somebody going to bat for you in this transaction. Well, the issue of agency is important because without it, we can never be sure who represents who.
Here's the scenario:
You meet a really nice agent at an open house named Bonnie. Even though Bonnie's house is not right for you, she tells you she has others to show you that fit your needs exactly. You spend an hour or so with Bonnie looking at a half dozen homes and talking about your needs and your wants. During the course of the conversation, you volunteer that you have $100,000 cash to spend and that you will not go over $100,000 purchase price no matter what. Then you find the perfect house. Asking price is $100,000 but you decide to offer $92,500 based on recent sales in the area. During negotiations, the seller asks Bonnie directly how much cash you have and how high will you go? What does Bonnie say?
Here's the answer: Unless you have signed a "Buyer Agency Agreement" with Bonnie making her your buyer agent, she is most likely acting as a sub-agent to the listing broker who represents the seller. If that is the case, she has a fiduciary obligation to the seller to disclose to him any information she has that might "promote or protect his interest" in the transaction. Guess what? Bonnie has that information.
The Seller, now having knowledge of your financial position, counters at a full $100,000. He knows you can afford it and that this price falls within your desired range. He also knows that you have seen a number of other homes and that his is the one you want.
Regardless of what eventually happens in this scenario, it can hardly be called an even playing field. So, how can you protect yourself from a possible disclosure required of a seller's agent?
1. Make sure that the agent you are working with has agreed, in writing, to represent you as a "Buyer's Agent." This will mean signing a buyer brokerage agreement in which you promise to work only with that particular agent for a specific period of time, often 90 days. It also means that you promise not to buy from anybody else, even FSBOs, without involving your buyer's agent. In almost every case, the commission will still come from the seller, but your agent must present the offer.
2. Never say anything to anybody unless you would be willing to have that information repeated into a seller's ear. Assume that everybody, and I mean everybody, is working for a seller unless you have specifically hired them to work for you. And even then, be discreet. During the second world war, the military promoted a phrase designed to stop idle gossip: Loose lips sink ships! You would do well to adopt that philosophy in your home-buying as well.
Copyright © by Move, Inc.
Friday, March 9, 2012
Moving Checklist
from Martha Stewart :)
http://www.marthastewart.com/274838/moving-checklists/@center/276998/organizing-checklists
from Martha Stewart :)
http://www.marthastewart.com/274838/moving-checklists/@center/276998/organizing-checklists
Wednesday, January 18, 2012
FSBO Woes: Why It's So Hard to Sell Your Own Home
For most people, a for-sale-by-owner transaction simply isn't in the cards
By Marcie Geffner
Granted, some people are able to sell their own homes without the services of a real estate agent. Some of these successful do-it-yourselfers are very experienced home sellers. Others are transferring ownership of their home to a child, a coworker or a tenant who's already living in the home. These circumstances are the exception, not the norm, however. For most people, a for-sale-by-owner (FSBO) transaction simply isn't in the cards. Here are five reasons why.
1. FSBOs can't list their home in the MLS. FSBOs aren't permitted to put their home in the multiple listing service (MLS) because these industry membership organizations are open only to licensed real estate brokers and agents. FSBOs are also locked out of many home search engines and Web sites, including the gigantic Realtor.com. Sure, a determined FSBO can put a for-sale sign in his or her front yard and run a tiny advertisement in the local newspaper, but the home won't receive nearly as much exposure as it would through the MLS.
2. Agents won't show FSBO homes. In a typical home sale, the buyer's agent receives a percentage of the commission that the seller pays the listing agent. Without a listing agreement, there's no guarantee that the buyer's agent will be compensated for his or her services, unless the buyer has signed a buyer's brokerage agreement that specifically provides for such compensation. Even if a FSBO offers to pay the buyer's side of the commission, most agents won't want to go through a transaction with an unsophisticated self-represented seller across the table. That means the pool of potential buyers for FSBO homes is limited primarily to unrepresented and probably unqualified prospects.
3. FSBOs usually overprice their home. Like most homeowners, most FSBOs honestly believe their own home is worth more than comparable homes in the same neighborhood. Usually, they're wrong. A real estate agent can provide an update on market conditions, an assessment of the likely selling price of the home and tips for improving the home's buyer appeal. Overpricing a for-sale home is a sure way to deter potential buyers.
4. Buyers will feel intimidated. Potential buyers will spend less time in a for-sale home if the owner is present during the showing, and they'll be shy about discussing its pluses and minuses with their own agent if the owner is within earshot. Buyers will also be less inclined to make an offer if they know they'll be negotiating directly with the seller. Having an agent on each side creates an effective emotional buffer between the seller and buyer.
5. FSBOs are likely to stumble into legal trouble. Real estate transactions are fraught with potential liability for unwary sellers, particularly in states that have extensive disclosure requirements (such as California). A FSBO who overlooks even one required form or legally mandated disclosure could face a protracted and expensive buyer lawsuit after the transaction closes.
© 2000 by Marcie Geffner. Reprinted by permission.
For most people, a for-sale-by-owner transaction simply isn't in the cards
By Marcie Geffner
Granted, some people are able to sell their own homes without the services of a real estate agent. Some of these successful do-it-yourselfers are very experienced home sellers. Others are transferring ownership of their home to a child, a coworker or a tenant who's already living in the home. These circumstances are the exception, not the norm, however. For most people, a for-sale-by-owner (FSBO) transaction simply isn't in the cards. Here are five reasons why.
1. FSBOs can't list their home in the MLS. FSBOs aren't permitted to put their home in the multiple listing service (MLS) because these industry membership organizations are open only to licensed real estate brokers and agents. FSBOs are also locked out of many home search engines and Web sites, including the gigantic Realtor.com. Sure, a determined FSBO can put a for-sale sign in his or her front yard and run a tiny advertisement in the local newspaper, but the home won't receive nearly as much exposure as it would through the MLS.
2. Agents won't show FSBO homes. In a typical home sale, the buyer's agent receives a percentage of the commission that the seller pays the listing agent. Without a listing agreement, there's no guarantee that the buyer's agent will be compensated for his or her services, unless the buyer has signed a buyer's brokerage agreement that specifically provides for such compensation. Even if a FSBO offers to pay the buyer's side of the commission, most agents won't want to go through a transaction with an unsophisticated self-represented seller across the table. That means the pool of potential buyers for FSBO homes is limited primarily to unrepresented and probably unqualified prospects.
3. FSBOs usually overprice their home. Like most homeowners, most FSBOs honestly believe their own home is worth more than comparable homes in the same neighborhood. Usually, they're wrong. A real estate agent can provide an update on market conditions, an assessment of the likely selling price of the home and tips for improving the home's buyer appeal. Overpricing a for-sale home is a sure way to deter potential buyers.
4. Buyers will feel intimidated. Potential buyers will spend less time in a for-sale home if the owner is present during the showing, and they'll be shy about discussing its pluses and minuses with their own agent if the owner is within earshot. Buyers will also be less inclined to make an offer if they know they'll be negotiating directly with the seller. Having an agent on each side creates an effective emotional buffer between the seller and buyer.
5. FSBOs are likely to stumble into legal trouble. Real estate transactions are fraught with potential liability for unwary sellers, particularly in states that have extensive disclosure requirements (such as California). A FSBO who overlooks even one required form or legally mandated disclosure could face a protracted and expensive buyer lawsuit after the transaction closes.
© 2000 by Marcie Geffner. Reprinted by permission.
Friday, December 2, 2011
We Need More Inventory!
Number of homes for sale at 4-year low
http://realestate.msn.com/blogs/listedblogpost.aspx?post=8d636bc9-b8b0-4136-b40b-37f5b2e2470e
http://realestate.msn.com/blogs/listedblogpost.aspx?post=8d636bc9-b8b0-4136-b40b-37f5b2e2470e
Thursday, November 3, 2011
Monday, June 20, 2011
Monday, April 25, 2011
Finishing Touches
Check out this artilcle detailing many projects that you can do for free or a very low cost to help get your home ready to the market!
http://www.realtor.org/wps/wcm/connect/rmo-content/rmo/RMOhome_and_design/Articles/2011/1102_houseandhome_finishingtouches
http://www.realtor.org/wps/wcm/connect/rmo-content/rmo/RMOhome_and_design/Articles/2011/1102_houseandhome_finishingtouches
*For tip-filled articles, blogs, and multimedia presentationsthat can boost your real estate career,visit REALTOR® Magazine Online.
Find us at:http://www.realtor.org/realtormag
Monday, March 21, 2011
Press Release
Cincinnati Area Board of Realtors®
March 21, 2011
Home Sales Up 1.90% in February;
Year-to-Date Sales Up 2.82%
Local home sales in February – for the second consecutive month – improved over a year ago. Sales last month totaled 963 compared to 945 in February from a year ago, for a 1.9% improvement.
In addition, the February 2011 sales figure is 7.6% ahead of January sales (963 vs.895)
Sales Jan. Feb.
2011 895 963
2010 862 945
Year-to-date home sales (counting January and February) are up 2.82% over the similar 2-monthperiod a year ago (1,858 vs. 1,807).
The Cincinnati-area housing market, with a gain in sales, was one of the top metro areas in the state last month. The Cleveland/Akron, Columbus and Toledo markets saw a decrease in sales. “Real estate is always a local issue, and the fact that Cincinnati posted gains for the month shows the relative health of our region,” said Pete Kopf, president of the Cincinnati Area Board of Realtors.
Kopf cited three primary reasons why sales, in general, are on the upswing:
1) Buyers’ concerns that if home mortgage rates increase later in 2011, it is smarter to lock in attractive rates now instead of waiting for higher costs as the year progresses. A 30-year fixed rate loan slipped to 4.85% last week, but that isn’t expected to last through the summer.
2) Rent increases currently going on are making renters realize the tax benefits they could receivewith home ownership compared to no tax benefits in renting. [Mortgage interest costs andproperty taxes are deductible on federal income tax returns for home owners.]
3) There currently is an ample inventory of homes to choose from, which offers attractive buying opportunities at all price levels.
February Home Sales
“More home showings are happening early this year,” said Kopf. “That’s a positive sign the housing market has stabilized and the pent-up demand for homes is being handled successfully.”
Cincinnati Area Board of Realtors®
March 21, 2011
Home Sales Up 1.90% in February;
Year-to-Date Sales Up 2.82%
Local home sales in February – for the second consecutive month – improved over a year ago. Sales last month totaled 963 compared to 945 in February from a year ago, for a 1.9% improvement.
In addition, the February 2011 sales figure is 7.6% ahead of January sales (963 vs.895)
Sales Jan. Feb.
2011 895 963
2010 862 945
Year-to-date home sales (counting January and February) are up 2.82% over the similar 2-monthperiod a year ago (1,858 vs. 1,807).
The Cincinnati-area housing market, with a gain in sales, was one of the top metro areas in the state last month. The Cleveland/Akron, Columbus and Toledo markets saw a decrease in sales. “Real estate is always a local issue, and the fact that Cincinnati posted gains for the month shows the relative health of our region,” said Pete Kopf, president of the Cincinnati Area Board of Realtors.
Kopf cited three primary reasons why sales, in general, are on the upswing:
1) Buyers’ concerns that if home mortgage rates increase later in 2011, it is smarter to lock in attractive rates now instead of waiting for higher costs as the year progresses. A 30-year fixed rate loan slipped to 4.85% last week, but that isn’t expected to last through the summer.
2) Rent increases currently going on are making renters realize the tax benefits they could receivewith home ownership compared to no tax benefits in renting. [Mortgage interest costs andproperty taxes are deductible on federal income tax returns for home owners.]
3) There currently is an ample inventory of homes to choose from, which offers attractive buying opportunities at all price levels.
February Home Sales
“More home showings are happening early this year,” said Kopf. “That’s a positive sign the housing market has stabilized and the pent-up demand for homes is being handled successfully.”
Monday, February 28, 2011
Check out this link for information on foreclosure prevention in the Cincinnati area!
http://www.hometoday.cc/foreclosurePrevention.html
http://www.hometoday.cc/foreclosurePrevention.html
Wednesday, January 19, 2011
Most Americans Say It Is a Good Time to Buy a Home
by The KCM Crew on January 19, 2011 ·
We have been making two major points for several months. If you are selling a house, you must do it now AND if you are buying one, you must also do it now. This sounds crazy – but it is true. PRICE is the most important thing to a seller. With prices projected to fall through the first half of 2011, if you want to sell, do it now. The alternative might be to wait over a year just for prices to recover to current values.
The second point revolves around the fact that buyers are more concerned about COST (price AND interest rate). Fannie Mae, the National Association of Realtors, the Mortgage Bankers Association and the PMI Company are all projecting interest rates to rise this year. If you want to buy, your best time to purchase could be right now.
We have had people question us on the second point. We truly believe it is a good time to buy however. And a new survey says that the majority of Americans agree with us. Gallup just released a poll showing that 67% of Americans think this is a good time to purchase a home. The interesting thing is that the same poll showed that more people believed that prices would decrease (27%) than increase (21%). Most people realize that this is a opportune time to purchase even if prices continue to soften.
Even the Gallup people weighed in on the subject:
Overall, there is good reason for most Americans to think now is a good time to buy a house. Interest rates remain near historic lows. Home prices are down sharply, providing many incredible buys.
Bottom Line
There may be people advising you to use caution before buying a home right now. That is probably good advice. However, there is a difference between caution and fear. Fear could paralyze you and prevent you from making a good decision. Caution will make sure you make the right decision. And remember: if you do think it makes sense to buy your home today, 2 out of 3 people agree with you.
by The KCM Crew on January 19, 2011 ·
We have been making two major points for several months. If you are selling a house, you must do it now AND if you are buying one, you must also do it now. This sounds crazy – but it is true. PRICE is the most important thing to a seller. With prices projected to fall through the first half of 2011, if you want to sell, do it now. The alternative might be to wait over a year just for prices to recover to current values.
The second point revolves around the fact that buyers are more concerned about COST (price AND interest rate). Fannie Mae, the National Association of Realtors, the Mortgage Bankers Association and the PMI Company are all projecting interest rates to rise this year. If you want to buy, your best time to purchase could be right now.
We have had people question us on the second point. We truly believe it is a good time to buy however. And a new survey says that the majority of Americans agree with us. Gallup just released a poll showing that 67% of Americans think this is a good time to purchase a home. The interesting thing is that the same poll showed that more people believed that prices would decrease (27%) than increase (21%). Most people realize that this is a opportune time to purchase even if prices continue to soften.
Even the Gallup people weighed in on the subject:
Overall, there is good reason for most Americans to think now is a good time to buy a house. Interest rates remain near historic lows. Home prices are down sharply, providing many incredible buys.
Bottom Line
There may be people advising you to use caution before buying a home right now. That is probably good advice. However, there is a difference between caution and fear. Fear could paralyze you and prevent you from making a good decision. Caution will make sure you make the right decision. And remember: if you do think it makes sense to buy your home today, 2 out of 3 people agree with you.
Monday, December 6, 2010
Cold Weather Strategies to Attract Buyers
History tells us that the spring and summer months are the best times to sell, but many homeowners are finding success listing their properties in the winter. While the changing weather can take a toll on a home sale, savvy buyers are on the lookout for the right home year round.“Chances are, buyers looking for a home during the winter holiday season are serious about buying and not simply shopping around,” said Joe King, president and COO of Coldwell Banker West Shell. “Showing off some of the home’s finer features isn’t easy covered in a blanket of snow, but there are a number of things sellers can do to attract buyers.” • Less competition. In the winter season, there are fewer homes on the market, so your home will have less competition. Encourage buyers not to wait by offering attractive pricing and incentives. • Interior focus. Providing photographs from the summer months is important, but now is the time to highlight the inside of your home. Furnished homes and those that are organized have more appeal, so make sure the beds are made, the furniture is well placed, and the counter tops and closets are clear of any clutter.• Exterior demands. Snow can alter the look of the overall property. Shovel and de-ice all paths and doorways. The driveway should be plowed, along with the sidewalks. Make sure that all outside lights and doorbells work. Consider more lights that could be installed to effectively highlight the best areas of the house. • Winter warmth. The holiday season is a time for being at home and enjoying family. You can stage your home to showcase winter warmth with such sights and smells as crackling fires, scented candles and holiday wreaths to appeal to buyers and make them feel like your home could be their own.
Thursday, August 26, 2010
6 Reasons it Pays to Shop Around Before Choosing a Mortgage
By Paige Tepping
RISMEDIA, August 26, 2010--You wouldn’t buy a house without shopping around first, right? Then why would you commit to the loan you use to buy that house without making sure you’re getting the best deal possible? From the experts at LendingTree, here are six reasons why it’s essential to take a few minutes to browse before you borrow:
1. To get the best interest rate possible
Over the life of a $200,000, 30-year fixed rate loan, a one-tenth of a point difference in interest rate could save or cost you thousands of dollars.
2. To pay lower loan fees
Once your loan application is accepted, the lender will get back to you with a good-faith estimate (GFE), including an itemized list of all the costs associated with the loan. If there are any parts of the GFE that you don’t understand, don’t be afraid to ask the lender to explain each fee that is listed.
3. To avoid a prepayment penalty
In these transient times, it seems no one stays in their home long enough to pay down their mortgage the old fashioned way: in monthly increments over a period of decades. So you’ll want to be clear on whether the terms of your loan include a penalty if you pay off your mortgage early—either because you move or refinance.
4. To find a lender you feel comfortable with
You don’t want any surprises popping up at closing time. Get a lender who is responsive to your questions and is willing to give you the details in writing.
5. To find a lender that specializes in your situation
Recent volatility in the mortgage markets means that people with bad credit or little money for a down payment might have to look a little harder to find a lender.
6. To get the rate lock period you want
Once you’ve found the lender offering the best mortgage rate and terms, you’ll want to get a written commitment, known as a “lock” that puts in writing that the lender will make the loan to you at that the specified interest rate. The length of the lock can vary from 30-90 days, but many lenders will charge a fee for a rate commitment of longer than a month. Negotiate the lock period that is right for you, depending on when you plan to close on your new home and if interest rates are expected to creep higher during that time.
RISMEDIA, August 26, 2010--You wouldn’t buy a house without shopping around first, right? Then why would you commit to the loan you use to buy that house without making sure you’re getting the best deal possible? From the experts at LendingTree, here are six reasons why it’s essential to take a few minutes to browse before you borrow:
1. To get the best interest rate possible
Over the life of a $200,000, 30-year fixed rate loan, a one-tenth of a point difference in interest rate could save or cost you thousands of dollars.
2. To pay lower loan fees
Once your loan application is accepted, the lender will get back to you with a good-faith estimate (GFE), including an itemized list of all the costs associated with the loan. If there are any parts of the GFE that you don’t understand, don’t be afraid to ask the lender to explain each fee that is listed.
3. To avoid a prepayment penalty
In these transient times, it seems no one stays in their home long enough to pay down their mortgage the old fashioned way: in monthly increments over a period of decades. So you’ll want to be clear on whether the terms of your loan include a penalty if you pay off your mortgage early—either because you move or refinance.
4. To find a lender you feel comfortable with
You don’t want any surprises popping up at closing time. Get a lender who is responsive to your questions and is willing to give you the details in writing.
5. To find a lender that specializes in your situation
Recent volatility in the mortgage markets means that people with bad credit or little money for a down payment might have to look a little harder to find a lender.
6. To get the rate lock period you want
Once you’ve found the lender offering the best mortgage rate and terms, you’ll want to get a written commitment, known as a “lock” that puts in writing that the lender will make the loan to you at that the specified interest rate. The length of the lock can vary from 30-90 days, but many lenders will charge a fee for a rate commitment of longer than a month. Negotiate the lock period that is right for you, depending on when you plan to close on your new home and if interest rates are expected to creep higher during that time.
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Tuesday, August 3, 2010
Housing Market Sees Widespread Price-Cutting
By Janet Morrissey
In a sign that the housing market has taken another turn for the worse, a new report shows almost a quarter of all home listings in the U.S. had at least one price reduction in June.
The price cutting is widespread too. The report, released Wednesday by residential real estate tracking firm Trulia, shows 21 of the country's 50 largest markets cut prices on at least 30% of their listings, up from 10 markets in May. (See pictures of Americans in their homes.)
Minneapolis led the way, with 40% of its listings registering at least one price reduction. This was followed by Milwaukee, Dallas, Boston, Baltimore, Phoenix and Memphis, which all slashed prices on more than 32% of their listings.
"Sellers are feeling the heat this summer as the economic recovery simmers down and home inventory levels climb," said Pete Flint, co-founder and chief executive of Trulia, in a statement. "We're seeing more sellers reduce their home listing prices to attract potential buyers." Housing inventory rose 5% between April and July.(Comment on this story.)
Moreover, waning consumer confidence, continued high unemployment, fears about a double-dip recession and a volatile stock market are all shaking buyer confidence in a possible housing-market recovery. "It's the perfect storm for creating less demand," says Ken Shuman, a spokesman for Trulia. "People are nervous." Recent housing data, including sharp drops in pending home sales, housing starts and mortgage applications for new home purchases, have all served to fan those fears. (See a PDF of housing price reductions.)
Probably the biggest factor influencing sales recently has been the federal homebuyer tax credit. The credit was particularly effective in bringing first-time homebuyers into the market. But now that it's over, move-up buyers are having a tougher time selling their existing homes, since the entry-level buyers have all but disappeared, says Alex Barron, founder and senior research analyst at Housing Research Center LLC. Under the federal tax-credit program, a home had to be purchased by April 30 in order to close by the June 30 deadline. "The whole market has slowed down anywhere from 30% to 40% across the country," says Barron. "When supply exceeds demand, you have to lower the prices."
Although the average price cut, according to the Trulia report, was 10%, some markets saw significantly bigger reductions: Detroit slashed prices by 26% on average, Las Vegas dropped prices by 15%, and both Miami and Phoenix saw average cuts of 13%. The total dollar amount slashed from home prices in June was $27.3 billion, the report said. (See high-end homes that won't sell.)
Home sellers are under the gun to cut prices as they try to compete with foreclosed properties and short sales, which continue to climb. "If your home has been on the market for four months and it hasn't sold, you have to adjust your price," says Shuman.
Raylene Lewis, a realtor at Century 21 in College Station, Texas, says she urges today's sellers to look at the prices of comparable homes sold recently, rather than the listing prices, when setting the sale price. "I definitely think we have more inventory," she says. "But everything will always sell for a price."
Another change in the market, Lewis says, is that she now must qualify the seller in addition to the buyer to make sure the seller will have the cash needed to pay off the mortgage and cover legal, realtor and other fees when the home is sold. She recalls how one seller in College Station recently didn't show up at closing because he didn't have the cash to cover the closing costs.
With so many dark clouds hanging over the housing market, experts recommend homeowners hold off putting their homes on the block unless they absolutely have to sell now. "If you are trying to be an opportunistic seller and you don't have to sell, there's no reason to have it on the market right now." says Shuman. "The demand is not there."
http://www.time.com/time/printout/0,8816,2003578,00.html
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