Flat Fee MLS Blog

What are the Average Number of Days a Home is on the Market in Your Town or City?   Just released numbers for October 2008 are below. 
CITY                   DOM

OAKLAND, CA 113
NEW ORLEANS, LA 157
DALLAS, TX 165
CINCINNATI, OH 192
CHARLOTTE, NC 70
HOLLYWOOD, CA 80
PHILADELPHIA, PA 76
LOS ANGELES, CA 84
PHOENIX, AZ 155
HOUSTON, TX 83
CHICAGO, IL 162
SAN DIEGO, CA 65
SAN JOSE, CA 92
DETROIT, MI 175
JACKSONVILLE, FL 197
MEMPHIS, TN 110
BALTIMORE, MD 115
BOSTON, MA 64
SEATTLE, WA 76
WASHINGTON DC 74
LAS VEGAS, NV 97
PORTLAND, ME 64
LOUISVILLE, KY 85
ATLANTA, GA 127
ALBUQUERQUE, NM 32  72
FRESNO, CA 111
NORFOLK/VA BEACH, VA 35
ASHEVILLE, NC 142
BELLEVUE, WA 123
VENTURA, CA 20
LAKE KEOWEE, SC 186
PORTLAND, ME 72
PANAMA CITY, FL 206
PHILADELPHIA, PA 102
LOUISA CO., VA 124
BULLHEAD CITY, AZ 126
WOODLANDS, TX 80
ASHLAND, MA 109
AUSTIN, TX 68
TWIN CITIES, MN 104
DES MOINES, IA 99
ST LOUIS, MO 102
NEW YORK CITY, NY 198
LOWER EAST SIDE 175
UPPER WEST SIDE 146
UPPER EAST SIDE 175
WEST VILLAGE 250

Are you patient or unrealistic?  If your home has been on the market for a lot longer than the average, is it your price, location, or market program?

Home Seller Tip:  Boost buyer traffic to your home for sale listing by 8 million shoppers a month with an MLS listing.   

Freebie of the Day:  Increase your odds of finding that buyer for FREE with a home for sale listing on InfoTube.net.   What’s the risk?  You have to lose but time and money?

Why do some sellers choose to sell their home “As Is”?

An “as is” real estate sale means that the seller will not pay for any property repairs, but must disclose all known defects to the buyer.

Typically, foreclosures, bank-owned real estate and tax-forced sales of property are sold “As Is”.   Also, individual home owners may choose to sell “as is” for a variety of reasons, such as, (a) they don’t want to be inconvenienced or live a long distance from the property, (b) they feel the typical buyer for their home will want to tear it down or remodel to their own liking, (c) they simply can not afford to make the repairs.

“As Is” properties are generally priced below the market because they are in need of a lot of work.   Sellers of “as is” houses should be aware that it is a “red flag” warning buyers that the property is distressed.   Buyers expect to obtain a bargain price and their offer will generally be lower than the full market value of the property.   The seller should note that the buyer will also make their offer contingent upon a satisfactory inspection report.

Conclusion:  If you intend on selling property ”As Is”, disclose all known defects;  Expect low ball offers;  Discount the property to compensate for its condition.

Thanks for visiting Why6percent.com and happy home selling and buying.

                                                                                           According to expert Barry Ritholtz, author of the forthcoming book, “Bailout Nation,” today’s news shouldn’t directly impact anyone who has a mortgage and is paying it on time. But if you are unable to pay your mortgage or are looking to refinance your mortgage, the most recent developments in the credit crisis could have repercussions.

If you are facing foreclosure banks are likely to be much more open to discussing a way to avert foreclosure than they were even a few months ago-because banks are already dealing with a glut of foreclosed homes.

People who are looking to refinance or access a new loan may find that stricter lending requirements make it more difficult or maybe impossible, even though mortgage rates are very low.

Experts do expect more banks to fail as the current credit crisis continues to pay out, although they think most banks will stay solvent. And as the saying goes, time will tell.

In the event of a disaster, it pays to take a few simple steps to ensure that your money is safe. When you are marketing your home on the MLS or FSBO, this is good info for buyers and sellers.

Here are a couple of tips for you:

1. Make sure that your money is with an institution that is FDIC-insured-this means that the government will back your account if the bank fails.

2. FDIC will cover you up to $100, 000. per individual account, or $200,000. per joint account. So make sure that your accounts at each of your banks fall below that limit.

3. If you have large cash holdings, it makes sense to stash your cash in several banks.

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                                                                                     The Environmental Protection Agency offers the following tips for those who want to conserve energy and water inside the home:

•  Visit energystar.gov to find energy efficient appliances that can save money and reduce greenhouse gas emissions.
• Turn off appliances and lights when you leave the room.
• Use the microwave to cook small meals. (It uses less power than an oven)
• Have leaky air-conditioning and refrigeration systems repaired.
• Cut back on air conditioning and heating use if you can.
• Insulate your home, water heater and pipes.
• Don’t let the water run while shaving or brushing teeth.
• Take short showers instead of tub baths.
• Keep drinking water in the refrigerator instead of letting the faucet run until the water is cool.
• Scrape, rather than rinse, dishes before loading into the dishwasher, wash only full loads.
• Wash only full loads of laundry, or use the appropriate water level or load size selection on the washing machine.
• Buy high-efficient plumbing fixtures and appliances.
• Repair all leaks (a leaky toilet can waste 200 gallons of water a day)
• Water the lawn or garden during the coolest part of the day (early morning is best)

It’s easy to be green while you are marketing your home and communicating with first time homebuyers who need to know these talking points.

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                                                                         What do “points” mean? Quite simply, they are fees and they came by this name because they equal one percentage point of the loan amount. For example, for each point that you agree to pay at closing, the lender agrees to reduce the interest rate on your loan by a set amount, (generally an eighth to a quarter of a percent), this is why paying points is often referred to as a “buydown.” You are simply purchasing a lower interest rate.

Points are similiar to another fee you’ll see on your closing statement, the loan origination fee. Sometimes it is called an origination point because it is also expressed as a percentage of the total loan amount. An origination point on a $200,000 loan is also $2000, but it has a different purpose; it covers some of the lending institution’s cost in preparing the loan application process, including paying office personnel.

Another important difference between origination points and discount points: discount points on new mortgage loans are usually tax-deductible, depending on your particular tax situation, while origination points are not tax-deductible. So, if your closing statement shows an origination point, you may want to ask that a discount point be substituted instead. Ask your accountant for advice on this.

Should you pay discount points? Points are for long -term gain. Here are some tips on whether you should pay them:

1. If you are cash-strapped at closing, paying points may not be worth saving a small bundle in interest over many years.

2. If you’re not planning to live in your home very long, skip the points. You will never realize the savings.

3. Use a mortgage calculator to gauge for yourself whether points are a good idea and to see how long it takes to break even.

Whether you are a buying a home or selling a home, this is a good reference to point out.

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 This could be the opportunity of a lifetime for first-time buyers. For aspiring home owners who find their goal stubbornly elusive, newly enacted legislation providing a tax credit of as much as $7,500 for first-time buyers might just be the break they need. 

Here’s the scoop on the first-time home buyer tax credit:

• The tax credit is available for first-time home buyers only
• The maximum credit amount is $7,500
• The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit
• Only homes purchased on or after April 9, 2008 and before July 1, 2009 are eligible. Visit the Federal Housing Tax Credit website to learn more about the tax credit.

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The “green” mortgage was born in 1979, when President Jimmy Carter signed an executive order directing federally sponsored secondary market institutions to offer consumers incentives for energy-efficient homes.

Green mortgages, or energy-efficient mortgages, allow homeowners to use their commitment to the environment to leverage bigger loans. The concept is based on the premise that a more energy-efficient home will have lower utility bills. That savings can be considered income, allowing a homebuyer to qualify for a bigger loan.

You have to provide a Home Energy Rating System report in order to apply for a green mortgage. HERS reports indicate that your house meets all engergy-efficiency guidelines. The builder can provide proof for a new home.

If you are a homeowner looking to upgrade your home’s energy-efficiency, you can commission a trained Energy Rater to issue a HERS report suggesting efficiency improvements. The Energy Rater can estimate the cost of those improvements, as well as the savings. Cost for the report is usually a few hundred dollars.

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                                                                                                            If you really want to sell your home, you need to expand your pool of buyers to include those people who want to buy a home but can’t qualify for a standard mortgage at this time. This pool is actually much, much larger than the pool of buyers who can get a mortgage right now according to real estate expert Wendy Patton.

If you’re ready to get creative about financing to entice buyers, here are three major options:

1. See if your lender will allow a mortgage assumption.

2. Help a buyer build a down payment through a lease-to-own deal.

3. If you’ve got the equity, offer financing yourself.

If stressed-out sellers and hard-to-qualify buyers could just join forces they could both achieve their goals. The answer may lie in “creative financing.”

Here are 10 Unique Selling Tactics:

1. Hold an open house party

2. Take home staging to the extreme

3. Help serious buyers with financing

4. Have a little faith

5. Throw in some extravagant extras

6. Make your home a grand prize

7. Get Web savvy

8. Let your house do the talking

9. Put your house on the auction block

10. Let buyers sleep on it

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                                                                                                           If you are selling your home FSBO or listing on the MLS, you are likely to have some close encounters with first-time homebuyers while marketing your home. There are a number of terms that are unfamiliar to first-time homebuyers and the more informed and knowledgeable you are as a seller, the more helpful you are to your buyer.

Here are some terms that both buyers and sellers should be familiar with:

Closing costs: The expenses that buyers and sellers normally incur in a real estate transaction. Closing costs are in addition to the price of the house and usually add up to between 5% and 6% of the mortgage amount.

Conventional Loan: A mortgage that is not insured by the Federal Housing Administration or guaranteed by Veteran Affairs.

Origination Fee: The fee charged by a lender to prepare all documents associated with your mortgage.

Escrow: A special third-party account that is set up by the lender until all conditions of the purchase contract have been met.

Title Search: An examiniation of public records to ensure that you are purchasing the property from its legal owner and that there are no liens, overdue assessments or other claims that would affect the value or marketability of the property.

Deed: A legal document by which the ownership of property is transferred from one owner to another.

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       If you’re currently renting, consider the tax advantages of homeownership. Know what expenses you can deduct, and understand how new laws affect you.

Here are the top 10 tax tips for homeowners:

1. Deduct mortgage interest and real estate taxes-interest paid on home loans is deductible up to $1 million for a principal residence plus a second home. Property taxes on all real estate are fully deductible.

2. You can deduct any money paid toward points or origination fees if you bought a home this year. Closing costs are not deductible. Points paid on a new mortgage loan for the purchase or improvement of a principal residence are deductible for the year in which they were paid.

3. If you refinanced your mortgage this year or took out a loan to buy a second home or investment property, you can deduct any points you paid equally over the life of the loan.

4. Deduct private mortgage insurance (PMI)-taxpayers with adjusted gross income of $100,000 or less can fully deduct premiums for PMI. The deduction is allowable only for insurance on loans that were originated after 12/31/06 and before 01/01/11.

5. Deduct moving expenses if you moved 50 miles or more for a new job. If you relocated for a new full-time job at least 50 miles away from your previous home, you can deduct the cost of packing, transporting or storing your household goods.

6. If you sold your house this year, see if you’re subject to a capital gains tax-if the profit you received from the sale of your house is under $500,000 for married couples or $250,000 for single owners, you are exempt from the capital gains tax.

7. Home improvements and mortgage closing costs are not tax deductible, but when you sell your house, they can be used to offset your capital gains tax burden should you have one.

8. If you did a short sale this year, the debt forgiven by your lender can be excluded from your taxable income. Thanks to a new law, you can exclude debt up to $2 million if it was discharged by the lender in 2007, 2008 or 2009.

9. Take advantage of energy efficiency tax credits-going green is good for the environment and your wallet. You can quality for a tax credit with documentation of energy efficient updates to your home.

10. If your home was damaged from a sudden, unexpected event, such as a natural disaster, fire, vandalism or theft, deduct some of the loss. You may deduct all expenses not covered by your homeowner’s insurance, minus a $100. deductible and 10 percent of your adjusted gross income.

Some of the best perks of owning a home are the tax breaks. This may be the time to buy a home. Remember to consult your tax advisor.

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