October 2007 Newsletter Suggested Reading

Markets Adjust Nationally

The National Association of REALTORS® (NAR) reported in late September that existing homes sales fell in August, caused in large part by recent adjustments within the mortgage industry. The overall national market for existing homes slowed 4.3 percent in August. NAR still anticipates close to 5.5 million units to be sold in 2007, which is 12.8 percent below last year's pace for existing home sales.

Avoid Foreclosure - Short Sale Questions Answered!

The increasing number of foreclosures in Colorado and across the US has created a change in real estate markets, lending industry offerings, Wall Street practices and has been headline news for weeks now.  Foreclosure is a not a positive situation for any party involved, or even those not involved directly.  When a person or family can no long pay their mortgage or mortgages, typically because of some other financial hardship (medical problems, lose of job, debt from other sources, etc.), they not only lose their home, but the foreclosure hits their credit report in addition.  Banks, financial institutions, and Wall Street buyers in the secondary market suffer huge financial losses.  Sellers, not directly involved in the foreclosure, suffer as under-valued inventory floods the market at prices most sellers can't compete with.  Short sales are one alternative solution to foreclosure, becoming more popular daily. To read further on foreclosures and their impact on real estate markets visit http://www.movinginboulder.com/links.asp and check out some of the News Source links like Inman News, RIS Media, or Realty Times.

A short sale is often a better option for a homeowner that is behind on their payments, in pre-foreclosure, or even feeling like they may become behind on their payments.  Here are some facts about short sales.

What is a short sale?  A short sale is an agreement from the lender to accept less than the full amount owed on the property.

Why would a lender be willing to accept less than the full amount that is due on the home?  A short sale is better than the foreclosure process in many ways and is seen as the lesser of two evils in the lenders mind because a short sale is a shorter, less costly process than foreclosure.

Which markets have short sales?  ALL markets can be affected by short sales.

What are some of the contributing factors and reasons we are currently experiencing such high levels of mortgage default?  Some contributing factors include: 1. Lowest consumer savings rates since the Great Depression, 2. aggressive lending practices including interest only loans, 100% financing, 125% financing, ARMs, and sub prime lending, and 3. area economics like the declining real estate markets.

Short sales take persistence, patience, and the knowledge and expertise of a licensed Realtor.  If you or someone you know is in default on their mortgage, behind on their payments, or just concerned they will fall behind on payments, read further by visiting http://www.movinginboulder.com/sellers.asp and clicking on "Avoid Foreclosure - Short Sale Questions Answered! (Part 2)" or call Rachel at 303.442.4882 or email Rachel@MovingInBoulder.com 

Advice for Home Sellers!

Competition for qualified buyers is greater than it has been in years past, but there are still buyers out there who are willing, able, and interested in purchasing your home! If you are realistic about what it takes to sell in a buyers market — and you are willing to meet the buyer in today's market — then success can be yours! Here are a few tips to make your home stand out from the crowd:

Pricing - Price your home realistically.  Remember, buyers are comparing your home against all others and are looking to stretch their dollar. By pricing your home to sell, you end up saving time and money in the long run by keeping your home from being shop-worn and overlooked.

Home Inspection - How does your home stack-up against new construction?  Pre-existing homes often require more effort to maintain.  By ordering a home inspection and fixing any known defects, buyers can be confident in what they're buying. To view my list of Certified Home Inspectors, visit http://www.movinginboulder.com/links_partners.asp

Incentives - Buyers love incentives. With larger housing inventories, incentives can be the deciding factor between your home and the competition.  Consider offering a free home warranty, a carpet allowance, or assistance with closing costs.  Incentives don't have to cost a lot to be attractive.

For more FREE tips and seller reports, visit the seller resources page on my web site at http://www.movinginboulder.com/sellers_tips.asp

By offering value, you attract buyers and enhance your property's desirability.  If you are thinking of selling your home, please contact Rachel for a comparative market analysis and marketing consultation.  There is no obligation for these services.

Thanks for reading my eNewsletter for October 2007!  If you have real estate related questions, please feel free to call or submit online at http://www.movinginboulder.com/sellers_questions.asp