Mark Clemens Help for Home Sellers and Buyers MN / WI

When will it become a sellers market again?

Without needing a downpayment, with stated income programs and with post depression era interest rates many people have been able to buy homes that they could only have dreamt of. But, with the tightening up of the banking industry, this has become less feasible in the last few months. That means there are even less potential buyers for a given property than there were before. That leads most people to believe that a loosening up of the bank's underwriting parameters will allow more people to buy. But I think that an increase in rents will be the next major catalyst. This will happen because of the recent foreclosure surge alongside of a growing shortage of rental units

What kind of an offer is likely if our house is pretty much like all of the other comps in the MLS?

One that is 10 % below offering. Think of this as the price you pay for selling a nice home that is perceived as "nothing extra special". That will of course increase to 20% if there is obvious updating that needs to be done. In the case of a 500K propoerty, we are talking about alot of money. HINT: its way cheaper to do the fix ups (renos as they're called nowadays) and stage it. Then you might just get some people starting at full price as the compete!

If Im a first time homebuyer, should I think about building?

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Do first time homebuyers ever build their own home? I don't think I know of one that has, but there may be some one somewhere. Generally one does not visualize a person under the age of thirty buyng a lot, deciding on a floor plan, thinking about upgrades etc. But this certainly could happen. There is an apriori sense about everything even choice of residence. In other words you just might know enough about home ownership without ever having experienced it.

Should I trust my listing agent's ability to stage?

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There probably are a few good real estate agents that are also good at staging. But there aren't many. Real estate agents sell houses; acrredited stagers get them ready for the sale. it takes alot of thought and preparation to get a house to a point where an agent can do an effective job of selling it. It also takes alot of sometinmes brutal honesty to point out what needs to be done so that it becomes open house perfect. Telling you that and then doing is therefore a job better left to a stager (even in the unlikely happenstance that your lister was once an interior designer).

Will the subrime mortgage fiasco affect my ability to sell?

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Yes but it depends on the type of home that you are selling. If it is the type which would normally appeals to first time home buyers, it will be harder. The stated income income programs of the past are becoming more scarce and actual downpayments are becoming more universally necessary. But harder is not the same as impossible. People adapt and companies will continue to find ways around the problem.Some of these are  alluded to in my mortgage section.

If no one is buying, maybe that means its a bad time to buy?

There is no such thing as a bad or a good time to buy. There is such a thing as a decison to make a life style change. This reflects a deep urge to express a more authentic self or a need to decrease current obligations so that more time is available for more important things. Those are 2 of the best reasons to buy, regardles of what everyone else is doing.

If the purchase agreement is for under apprasied value can I use the appraised value to determine the loan amount?

No. Banks use the lesser of the apprasied value or the aggreed upon purchase price. Thus if the appraisal were for 400K and the price was 350K, they would use the 350K.

The queestion is born out of a creative way to circumvent having to have a downpayment. In the recent past this was taken care of by the 20% second from the same bank offering to do the first. Sadly, these are allegedly the cheif cause of the high foreclosure rate today.

Does a vacant house say "move into me now" to most buyers?

No. It generally says "What happened" meaning death or divorce. This suggests "bad karma" as they say nowadays. You don't want to send that message. It attracts lower offers after longer periods of time--sometimes very long. The national average is double the time that it takes to amrket a similar home in a comparable market.

Is there no 100% financing for anyone?

I will not tell you that I am the only one that can get it for you. But it is harder to get than it has been for the last two years. It is better to tell you that it might make some sense to stay with mom and dad for a while before you start looking. That's because even 5% can be alot of money nowadays, 10K on a 200K house. Nevertheless those with excellent credit can still qualify for 100% financing. Those with scores under 620 probably not, especially if your income is not W-2.

What is the best way to find the home that I am looking for?

The best way to find the home that you are looking for is to start with what you are able to afford. That may be a lot less than you had been expecting if you feel safest with a 30yr fixed requiring 20% down. Or it may be a lot more if you are able to qualify for 100% financing, stating your income. While these programs are more rare today than they were 6 months ago, they do exist. But your credit score must be especially high. If you know what you can afford it is then a realatively simply task to sift through the options within your desired area.