Yes, you heard me right, bidding wars for homes.  Could that actually be happening again?  In some cities across the country it definitely is.  So does this mean that you can go out and list your home for any price and get multiple offers?  The answer to that question is the same as it has been since the bubble burst, NO!  With that said, many desirable neighborhoods, especially those with exceptional public schools are seeing multiple offers on homes.  But it is not just the nice neighborhood, good schools, or great amenities that creates a multiple-offer bidding situation, it is and always has been the Listing Price.

If you are considering listing your home, talk with your real estate agent and discuss your goals, how soon do you want to move, how much do you want to make or (loose) on the sale of your home, but most important listen to your agent.  Real Estate Agents are professionals and know and understand the local market they work in.  If you want to sell your home quick and receive multiple offers make sure your home is priced right.  In many neighborhoods there are many homes for sale, if you want yours to sell first, then price it to sell first!  It is better to get your home sold faster now then to let your home sit on the market for 6-12 months before it sells.

The good news is that in some states real estate values have started to increase and are up year over year.  According to Zillow and their real estate market reports, they are showing 6 states with rising real estate values.  Keep in mind there are many cities in every state that have seen growth and an increase in home values, but Zillow takes into account all the data from all the cities in each state.  The following states are have seen increases in home values, Arkansas with a year over year increase of 0.1%, Kentucky with 0.3%, Nebraska with 1.4%, Oklahoma with 6.7%, Washington D.C. with 3.6% and West Virginia with a 2.7% increase.  Not bad for a US housing economy that experienced a financial collapse.  Many cities across the country are seeing month over month and quarter over quarter increases.

Some of the cities with the largest quarter over quarter gains in home values include Phoenix with a 3.5% increase and Miami with a 2.7% increase.  Both of these cities were hit very hard with the burst of the housing bubble.  Lately many investors have seen opportunities to purchase homes and flip or rent them for a profit.

Even with these gains in local markets it is hard to say whether or not this will continue.  There are still thousands of foreclosures that have not hit the market yet, and with the robo signing lawsuit over, we can expect to see an increase of Bank REO properties hit the market in the coming months.

Have you ever put an offer in on a Short Sale Property and waited months for a response?  You are not alone.  There have been millions of Shorts Sales across the US, many that sold and many that ended up going to foreclosure.  Banks have a lot of experience with short sales, so why do they take so long?  In defense of the banks, they have a lot of volume they are dealing with, and when they are loosing money on a property they probably want to make sure it is in their best interetes.  But even with that wouldn’t you think that the process should be more refined, and should not take months to complete?

Finally there may be an answer.  Fannie Mae and Freddie Mac have just set timeline requirements.  Any short sale property that is backed by Fannie or Freddie should expect to receive a decision on their offer within 30-60 days.  These new guidelines issued last Tuesday by GSE’s (Government-Sponsored Enterprises), are meant to bring a better understanding of the short sale process and help the banks expedite their decisions on their short sale properties.  The guidelines require mortgage servicing companies to make a decision within 30 days of receiving an offer on a short sale property.  If for some reason more than 30 days are needed to make a decision the mortgage servicer must provide the borrower with weekly updates and they are required to come to a conclusion with 60 days.

Since Fannie and Freddie have committed to respond quicker they are also requiring the client that submitted the offer to also respond quicker.  Often times the bank will counteroffer.  If this happens the potential homeowner is required to respond to the counteroffer within 5 business days.  The nice thing is that if the borrower responds with another offer or an acceptance that will not start over the 30 days.  The bank is then required to respond within 10 business days.

Any GSE servicers are required to comply with these new timeframes and guidelines by June 15, 2012.  Although hopefully many of them will start following the new timeframes immediately.

This new policy could really help a lot of homeowners get out of their home quicker, and also help to reduce the massive inventory of homes on the market.  A short sale is a great way for a homeowner to avoid foreclosure and also allows homes to continue to be occupied which helps to stabilize communities and local markets.

Last year between Fannie Mae and Freddie Mac they completed 125,423 short sales which are almost double of what they did the year prior.  Hopefully with this new policy, and all GSE mortgage servicing companies complying with this new policy more people will be able to realize their dreams of home ownership, or avoid a foreclosure and save their credit.

For those close to foreclosure or in foreclosure this is a legitimate question.  Could your mortgage lender that you make your mortgage payments to now, become your landlord that you would start paying rent to?  For some homeowners this could start happening very soon.

In the past renting used to be cheaper than buying a home, but in many places around the country that is no longer the case.  Home prices are continuing to be stagnate and rents continue to rise.  According to Trulia homes across the county have seen a 0.7% decline in value while rents have risen 5%.  Jed Kolko, chief economist for Trulia said “Buying a home is more affordable than renting now in almost every part of the United States.”   According to Trulia the largest increase in rents was in Sarasota Florida where the average rents jumped 12.9% from the previous year, Miami and San Francisco also saw big increases in the average rents at 12.1% and 11.1%.

Could the increase in rental rates explain why your mortgage lender is considering renting homes, or maybe they have finally decided to start helping out many Americans that are in a financial crisis.

Bank of America is one of the nations largest mortgage lenders and also a pioneer in this program.  They recently announced a program that will allow homeowners facing foreclosure to stay in their homes as renters.  They call this the “Mortgage to Lease” program.  As of now this is just a pilot program and only 1,000 homeowners are allowed to participate.  Before you rush to Bank of America and volunteer yourself, the 1,000 homeowners will be selected by the bank and will be in the Arizona, Nevada and New York areas.

According to Bank of America, in order to be selected for this program a homeowner must be more than 60 days delinquent on their home loan(s), have a mortgage balance higher than the current value, the homeowner cannot have any other liens on the property, and the homeowner(s) must be able to afford the rent.  If selected for this program the homeowner must transfer title of their home to Bank of America and in exchange Bank of America will forgive their outstanding mortgage balance and rent the home back the the homeowners for up to three years.  The rental rate will be determined by the bank but will be at or below your current market rental rates.

For many homeowners this could be a great way out from your mortgage while allowing you to not be kicked out of your home.  With this type of program the Federal Reserve has laid out rules for banks that want to start renting out their REO properties instead of selling them.

The Federal Reserve has stated “The general policy for the Federal Reserve is that banking organizations should make good-faith efforts to dispose of REO properties at the earliest practicable date”.   Maybe banks have so many REO properties on their books they don’t know what to do with them.  This will allow the banks to make a little money to start to cover the deficiencies on the loans until the REO’s are sold.

The Federal Reserve has also stated “Consistent with this policy, in light of the extraordinary market conditions that currently prevail, banking organizations may rent residential REO properties (within statutory and regulatory holding period limits) without having to demonstrate continuous active marketing of the property, provided that suitable policies and procedures are followed.”   These banks will be required to set up systems to track all their rental properties.

“Policies and procedures should clearly describe how the banking organization will comply with all applicable laws and regulations.”  ”Policies and procedures should include processes for determining whether the properties meet local building code requirements and are otherwise habitable, and whether improvements to the properties are needed in order to make them for rent.”

It will be interesting to see how this program works and whether or not this will help the millions of homeowners that are currently in default on their mortgage or may default on their mortgage soon.  Just like many other programs meant to help homeowners only time will tell if this will really work.

Buying your first home can be one of the most exciting and stressful things you will do in your life. But with interest rates and home prices as low as they are, going from renting to buying could be a great move for you. Many new buyers jump into looking at homes with a real estate agent before they complete a few necessary steps. Below are the steps you should take, and a few things that you should take into consideration when buying your first home.

1. Pre-Qualify.  Once you decide to purchase don’t just call your local real estate agent and start looking at homes, unless you are buying in cash.  First you need to find a qualified mortgage company and start working with an experienced loan officer.  They will take a look at your credit, income, expenses, debt ratios and help you determine the monthly payment that you can comfortably afford.  With this information you will be able to determine the sales price of your new home.  With interest rates at record low levels, if you can qualify for a mortgage you should think about buying.  Especially when you can purchase a home twice the size as your apartment for the same monthly payment or possibly less then your current rent.
2. Must Haves.  Now that you know what you can afford, start talking with your real estate agent.  You will first need to determine what you are looking for in a home. How many bedrooms do you want, bathrooms, how big of a home do you need, are you looking for single family home, townhome, rambler etc.  Remember no home will be absolutely perfect, but you will find something that has almost everything you and your family needs.
3. Location, Location, Location.  This is very important.  When searching for a new home think about your life now and how it might change in the future.  Are you looking for a young hip neighborhood, but will that neighborhood be good if you decide to start having kids?   When you first pull into a neighborhood, stop take a breath and look around.  How do the neighbor’s homes look, are the yards kept up, do the homes look clean and taken care of?  Maybe even knock a few doors in the area and ask the neighbor’s some questions, believe me you will be glad you did.  It is amazing what the neighbors will know about homes for sale in the area.
4. Schools.  Next, are schools important to you in your search?  If so it would be a good idea to research the local and private schools in the area.  No public school is the same as the next; unfortunately many schools are overcrowded, not properly funded and understaffed.  It might be a good idea to contact the school and find out about the student success rates, class sizes, and extracurricular activities.  You can go online and read reviews from parents about the schools you are interested in.  A great website to find this information is greatschools.org.
5. Amenities.  Finally, determine what activities and amenities are important to you and if they are around the areas you are looking at.  It would be a good idea to find out how far your nearest grocery store, park, recreation center, hospital, religious center, or child care centers are from the home.  Skipping this step could cause long drives and delays in the future when you need to get necessary items.

So before you become a homeowner for the first time, the items above are some really good things to think about.  Taking the necessary steps when purchasing your first home or you fifth home can really help reduce the time and stress involved in the home buying process.

Good luck, and may you find the home of your dreams.

Deciding whether or not to use a real estate agent when you buy or sell your next home is a question that you might have asked yourself in the past.  If you are not sure if it would be beneficial to use a Real Estate Agent, maybe this article can help.

The 2011 profile of homebuyers and sellers created and distributed by the National Association of Realtors shows that For Sale By Owners (FSBO’s) accounted for only 10% of home sales.  Also the average FSBO listing sold for $150,000 while the average real estate agent assisted home sold for $215,000.  While many people think that they can save time and money by selling the home on their own, this is often not the case.  They also usually don’t always understand the trials that come along with selling their home FSBO.   The Profile of Homebuyers and Sellers show the hardest tasks for a FSBO are:

• Understanding the housing market and listing their home at the right price.
• Understanding the paperwork involved and correctly filling everything out.
• Having enough time to devote to all aspects of the sale.  This would be marketing the home, showing the home, responding to phone calls and emails about the home, etc.
• Determining whether or not they should spend extra money to prepare or fix up the home.
• Selling the home within a certain time frame.

Purchasing or selling a home is typically the largest investment most people will make in their lives. Whether you’re buying a new home or selling your existing home, a real estate agent can help protect your interests and potentially save you a substantial amount of money.  We have compiled a list of benefits for both the homebuyer and seller.

Reasons To Use A Real Estate Agent When Buying A Home

1. A home buyer is usually not required to pay the real estate agent.  When a real estate agent represents a home buyer on a purchase of a home, the commission earned by that agent is paid for by the seller of the home.  The commission is taken out of the sales price.
2. Real estate agents have access to the Multiple Listing Service (MLS).  The MLS is a serviced provide to real estate agent that gives them the most up today information on homes that are for sale in your area.  This service is not available to the general public.  With the MLS an agent can find out information about the home like, taxes, how long it has been listed, price changes, special features on the home etc.
3. Agents have knowledge about the area.  A real estate agent should be able to tell you about the neighborhood, schools, activities, recreational areas, etc. that are available in the areas that you are looking to purchase.
4. Agents know how to negotiate with the seller on your behalf.  Negotiating the price of a home can often get very difficult.  In today’s market it is not uncommon to ask for closing costs to be paid, repairs to be completed, home warranties, or inspections.  Often real estate agents are able to negotiate items in the home like washers/dryers, refrigerators, or furniture into the sale of the property.  Your real estate agents job is to make sure you get the best deal.
5. Agents keep the deal going.  Once your offer has been accepted you will have a lot of tasks that need to be completed in a short amount of time.  Your agent can help you keep track and orchestrate all the tasks required in the buying process.

Reasons To Use A Real Estate Agent When Selling A Home

1. A real estate agent is worth the commission.  Once you actually consider all the things your agent will do for you from the time they list the home to the time it sells, the commission paid to that agent is usually money well spent.  Often times an agent will be able to help you get your home sold much faster and for more money than you could have on your own.
2. Agents understand the current housing market.  Choose an agent that lives in your area.  This agent will understand the neighborhood, home values, benefits of the area, and the local competition.
3. Agents know how to sell your home.  This is their job, and just like any other job if they don’t do a good job they get fired.  A real estate agent is a professional and should know what they are doing.  It is often a good idea to get an agents track record prior to letting them sell your home.   Selling any home takes experience, dedication and knowledge in this market.  Their job is to attract buyers and sell the home.
4. Agents know what will make houses sell.  Your agent will be able to give you advice on what could be done to the home to get it sold quicker.  Anything from staging the home to making minor repairs or upgrades.
5. Agents will put your home on the MLS.  A real estate agent has access to the Multiple Listing Service (MLS).  This tool is only available to real estate agents and allows them to get your home in front of thousands of other agents and buyers.
6. Agents know how to market your home.  Your agent will know what to do to market your home for sale, whether that is an open house, internet exposure, flyers, caravans, etc.
7. Agents represent you to the end.  Your agent will represent you from the time the home is listed to the time is closes escrow.  An agent’s job is to make sure your interests are protected in the sale of the home and every thing negotiated in the contract is fulfilled.  If a problem arises at or after closing your agent is there to help resolve any issues.

While the $26 Billion settlement gets underway, this step towards the right direction may not be big enough.  This settlement will help thousands of homeowners get back on their feet and also help the economy recover from this financial crisis.  But unfortunately there are some states that were hit so hard, this settlement may only create a small amount of relief.

The foreclosure filings in some states over the last year have actually improved, while other still continue to be hit really hard.  Florida and Nevada for example are two states that have the highest foreclosure rates.  Over the past 5 years home values have decreased almost 50%, and in some locations within the states possibly more.  Unfortunately in these states prices continue to drop.

The foreclosure process can take anywhere from 140 days to 445 days.  Below is a list of the top five states with the highest foreclosures.

5. New York
2011 Foreclosure Rate: 4.6%
From 2006 to 2011 New York has seen the values of their home decline by 13.6%, and their average processing time for a foreclosure is 445 days.  This is longest time in the nation.

4. Nevada
2011 Foreclosure Rate 5.3%
From 2006 to 2011 Nevada has seen the values of their home decline by 59.3%, and their average processing time for a foreclosure is 116 days.  Nevada’s decline in home values is the largest across the nation.

3. Illinois
2011 Foreclosure Rate 5.4%
From 2006 to 2011 Illinois has seen the values of their home decline by 29%, and their average processing time for a foreclosure is 300 days.

2. New Jersey
2011 Foreclosure Rate 6.4%
From 2006 to 2011 New Jersey has seen the values of their home decline by 22.6%, and their average processing time for a foreclosure is 270 days.

1. Florida
2011 Foreclosure Rate 11.9%
From 2006 to 2011 Nevada has seen the values of their home decline by 49%, and their average processing time for a foreclosure is 135 days.  Florida decline in home values is the  3 largest across the nation.

Information about the the foreclosure rates, decline of home values, and processing times was based on Corelogic’s national foreclosure report and 24/7 Wall St. identified the states with the highest foreclosure rates.

Have you been looking for a luxurious Mega Mansion but have just not been able to find “The One?”  You are in luck.  Nesteled in one of America’s best ski towns lies the Huntsman Estate.  The home sits on 63 acres at Deer Valley ski resort in Park City Utah.

Deer Valley is home to some of the top restaurants, spas, resorts, and skiing in the country.  For five years in a row Deer Valley has been named the #1 ski resort in North America by the readers of Ski Magazine.  Having 63 private ski-in, ski-out acres is very rare in Deer Valley and so are the level of luxury and amenities available in this wonderful estate

The asking price for the 22,000 square foot, 63 acre Huntsman Estate is $49,500,000.  The home comes elegantly furnished w/12 bedrooms, 2 bunk bedrooms (20 mattresses), 16 bathrooms, large great rooms, a dining room that seats 20, indoor pool, fitness center, library, children’s playrooms, and a 22 car garage.  This is a great estate for any family or corporate retreat.  And just in case the 63 acres is a little too much for you, 19.53 acres can be subdivided into 16 ski lots and sold.

For more information about this home and to request a private tour contact us through this website.

Jennifer Aniston and boyfriend are said to have just purchased a new home in Bel Air California.  The 8,500 sq. foot home was listed for $24.9 million.  At this time the amount Aniston and Theroux paid for the home has not been disclosed although it has been reported that the couple spent around $22 million for the property.  The home sits on over 3 acres, with views of the ocean.  The home is decked out and has 4 bedrooms and 6 1/2 bathrooms.  Of course the home wouldn’t be complete without a guesthouse, pool and vineyards.

The home was owned by Robert Maguire III when she purchased it.  The home, originally built in 1965 and designed by Quincy Jones was recently restored by Robert Maquire.

The latest news in the Real Estate Industry is the $26 Billion Mortgage Settlement.  But will this increase or decrease the amount of foreclosures in 2012?  Experts are saying that all the foreclosures that were on hold during the settlement negotiations are now going to be released.  During the settlement negotiations (which went on for a long time) some Banks were holding back a portion of their foreclosures that should have been released last year or earlier.  Many Banks have been sitting on a backlog of troubled loans, delinquent homeowners, and vacant homes.  Now that the settlement has been reached experts feel that the banks will start releasing their foreclosed homes in the market at a record pace.

Daren Blomquist, vice president of RealtyTrac, an online marketer of foreclosed properties estimates that new foreclosure filings will increase from 1.9 million in 2011 to somewhere between 2.2 million and 2.5 million this year.  Blomquist stated “We think what we saw in 2011 was artificially low foreclosure numbers.”  In 2011 many banks took longer to file the foreclosure notices and complete the foreclosure process.

At this point what will most likely happen is Banks will start to contact all the delinquent homeowners and bad loans that they have been sitting on and try to work out some sort of solution with the $26 Billion settlement that was just put into place.  Unfortunately the settlement was not intended to rescue homeowners that are already a candidate for foreclosure it was intended to help prevent homeowners from falling into foreclosure.  Since the banks have been sitting on so many bad loans it is likely we will see more foreclosures hit the market than in years past.

An increase in foreclosed homes on the market will most likely continue the downward trend of home prices, but cleaning out the inventory of foreclosed homes is a necessary step in our housing recovery.  It is not all bad news, an increase in foreclosed homes will likely mean an increase in business for real estate agents.

One year ago the average interest rate for a 30 year fixed mortgage was 5.05%.  Today the  average interest rate for a 30 year fixed mortgage is 3.87%.  Having a lower interest rate will allow a lot of homeowners to qualify for a higher loan amount, possibly helping them get into a home they never thought they could get into.

It is not only the 30 year mortgage rates that have hit all time lows – the 15 year fixed rate is at an average of 3.16%.  A year ago this rate was at 4.29%!

It is possible that interest rates could still drop some, but in my opinion I think we are seeing rates close to the bottom.  These are great interest rates and if you have ever thought about buying a home, now is the time.  Historically low interest rates and unheard of home prices make buying a home in this market a great decision.  Especially when you can own a home for the same price you are paying in rent!