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Is 80-10-10 financing dead?

By Dian Hymer, Monday, January 12, 2009.

One of the few certainties in the real estate business is that it's always changing. At this point, the financing end of the business changes daily. A lender may approve a loan one day and decide just before closing that it no longer offers that type of financing. Then, weeks later, they are back in the game. more...

Think twice before buying REO, short sale

By Dian Hymer, Tuesday, January 6, 2009.

Buyers want bargains. Some even limit their search to REOs and short-sale listings.

REO, or real estate-owned, refers to a property that a mortgage lender acquired through a foreclosure. It's owned by the bank. A short sale refers to a situation where the sellers still own the property but they can't sell for enough to pay off the mortgage(s) and costs of sale.

There are pros and cons to buying distressed sale properties. They often sell below market price. However with REOs, there is usually very little information about the property and no seller disclosures. more...

Multiple offers making a comeback

By Dian Hymer, Monday, December 29, 2008.

In the current home sale market, it might seem ludicrous to make an offer on a listing if it means competing with another buyer. However, multiple offers are on the rise in some markets. But, it doesn't always mean that you need to pay a lot more than the asking price.

Sellers are ever hopeful of receiving multiple offers. These days, this is usually an unrealistic expectation. That is, unless the listing is a prime property in a high-demand neighborhood where few homes are being offered for sale. more...

Top reasons home won't sell

By Dian Hymer, Monday, December 22, 2008.

It's a challenging home sale market for sellers in many areas around the country. Sellers who are having difficulty selling have several options.

The first goal is to find out why your home isn't selling. Ask your listing agent for information about listings similar to yours in your neighborhood that sold within the last three to six weeks.

You need to know the facts about listings that have sold and closed and those that went pending during this period. A pending sale is one where the sellers have accepted an offer, but the sale has not yet closed. more...

Buy now, sell later? Think contingency

By Dian Hymer, Monday, December 15, 2008.

Most homeowners who sell one home to buy another want to secure the replacement home before they sell. But many of these buy-first sellers may find it difficult, if not impossible, to do this due to recent tightening of mortgage lender requirements. more...

Credit crisis puts pressure on appraisals

By Dian Hymer, Monday, December 8, 2008.

The credit crisis profoundly affected the home loan business. Lenders' underwriters now scrutinize every aspect of the mortgage approval process, including the property appraisal.

Most lenders now require that buyers make a down payment to ensure they have an equity stake in the property. Lenders are also concerned about declining property values.

Freddie Mac and Fannie Mae guidelines, which set the standard for the appraisal industry, require that an appraiser use comparable sales that closed within the last six months. more...

Credit crisis delaying home purchases

By Dian Hymer, Monday, December 1, 2008.

Changes in the housing market can change the nature of home-sale transactions. For instance, before the boom in the home-sale market that began in the second half of the 1990s, the California Association of Realtors (CAR) purchase agreement used by most California Realtors included a clause in which the seller warranted the condition of the property.

The boom market changed that. The version of the CAR purchase contract most widely used during the fast-paced market that subsided in 2006 did not include a seller warranty. Instead, the buyer agreed to purchase the property in its present condition subject to the buyer's inspection rights. Market conditions changed the home-sale transaction in a very significant way. more...

Online home listings don't tell whole story

By Dian Hymer, Monday, November 24, 2008.

The Internet has changed the way we buy and sell houses. Most listings of homes for sale can be found on the Internet. Realtor.com, the world's largest real estate database of homes for sale, carries information on more than 3 million listings.

According to the 2007 National Association Profile of Home Buyers and Sellers, 84 percent of home buyers used the Internet for information at some point during their home search. This is up from 37 percent in 1999. more...

Should I work with more than one agent?

By Dian Hymer, Monday, November 17, 2008.

Finding a good agent or agents to help you buy or sell a home can vastly improve the quality of your experience. Ideally, you want someone who is professional, trustworthy and diligent.

It's impossible to predict at the outset exactly how a purchase or sale transaction will play out. But, invariably there are bumps along the road. Good rapport and mutual respect make it easier to work through problems should they arise. more...

Buyers, get into negotiating position

By Dian Hymer, Monday, November 10, 2008.

Bridging the price gap between home buyers and sellers can be a challenge in today's market. Sellers, many of whom have a hard time accepting that their home has lost value, often expect to sell for more than buyers are willing to pay.

Buyers, on the other hand, are concerned that home prices could drop further. So, they're making sure that they don't overpay. more...

Staging tips that sell

By Dian Hymer, Monday, November 3, 2008.

Home prices have fallen and many homeowners are mortgaged to the hilt. This makes it difficult for some sellers to justify spending a penny to get their home ready for the market.

However, the home-sale market is also very competitive in areas that are still bloated with inventory of unsold homes. When buyers have a choice, they pick the best. They want a home at a good price, in a good location, and one that they can move right into without having to do any work. more...

The art of counteroffers

By Dian Hymer, Sunday, October 26, 2008.

Negotiation is back in style. It's not uncommon for buyers and sellers to have many rounds of counteroffering back and forth before they arrive at a contract that is completely agreeable to all involved. When this is accomplished, the contract is ratified.

However, there is another important element involved in ratifying a contract. Until a residential purchase contract is completely signed, and the final signed documents are delivered back to the other party or that party's agent, the listing is not sold. more...

Buy now, sell later?

By Dian Hymer, Sunday, October 19, 2008.

Plan for the worst and hope for the best. This is a reasonable course of action if you're planning to sell your current home and buy another one in the current market.

There are good reasons to do so for some homeowners whose homes no longer work for them. Interest rates are lower than they were a year ago (hovering around 6 percent at the beginning of September 2008) and home prices have dropped in many places. more...

Mortgage approval is no easy task

By Dian Hymer, Sunday, October 12, 2008.

It wasn't too long ago that home buyers made offers without financing contingencies and closed the deal in as short as 14 days following acceptance. Quick closes are virtually impossible today if you're buying a home with the aid of a mortgage. And, it's highly recommended to include loan and appraisal contingencies in your offer. more...

Buying fixer-upper? Don't expect goldmine

By Dian Hymer, Sunday, October 5, 2008.

Fixer-upper properties come in many varieties. Cosmetic fixers usually offer the biggest return on your investment. And, they tend to be a lot less costly than homes that require major renovation.

An ideal cosmetic fixer would be a house that had been somewhat neglected, but that has no serious structural problems. It could be passed over by other buyers because it needs an exterior paint job, new landscaping, new kitchen appliances, floor coverings, updated lighting fixtures and interior paint. more...

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