Real Estate Information Archive

Everybody want to know how is the real estate market.  There are a lot of real estate agents (or ex real estate agents) that will tell you flat out "The Market Sucks!"  Others will say: "well, that really depends on how you fit into the market.  Are you a buyer, seller or investor?  In most cases, that is a correct way to respond to the "so, how is the market" question.

I think the real answer to that question is "How Motivated are YOU Right NOW, to either buy, sell, invest or rent?"

You see, not everyone will be able to buy right now.  The mortgage markets have taken a strict stance on who can qualify for a mortgage.  For the sake of this article, lets say you can get approved.  If you need help buying or want to see what homes are for sale right now: www.mydelawarehomesearch.com

When it comes to sellers, not everyone can sell their home for what the market is saying it is worth.  Basically, they owe more than the home is worth.  The (not so) SHORT sale is another topic.  There is help out there for those that just can not keep up with their mortgage, anymore.  If you are wondering if you can sell right now: www.sellmydelwarehome.com or if you just want to see the most recent market data on your specific area, we can create a FREE custom report and email it to you, it is called a market snapshot: http://www.teamsordelet.com/Market-Snapshot

The investor: Cash is King.  If you own more than four properties and you do not have a commercial line: forget about it!

This article is focused more on those that can get approved for a mortgage and those that really want to sell -or- really have to sell.  There are also some aggressive, outside the box, approaches to investors right now as well.

Take a look at this chart.  I have used the first edition of this chart since the end of 2006.  Robert J. Shiller has studied the real estate market in this county as far back as 1890.  He demonstrates in this chart the "ups & downs" of our countries real estate market.  The chart is broken down into today's dollars and since the 50's shows us about where our values have been.  The exploding real estate market of 2000 to 2006 is demonstrated on this chart.  It is a wonder why no one in our government, the banks or somebody did not stand up and yell(or scream) that we were about to be driven into some terrible times.

http://i672.photobucket.com/albums/vv84/dsordelet/case-shiller%20report/saupload_case_shiller_chart_updated.png

THE BOTTOM LINE IS THIS:

BUYERS:  Interest rates are low.  Interest rates will soon rise because the government is about to stop buying down the interest rate with mortgage backed securities.  Even though home prices may still fall, rising interest rates will off set any monthly savings that you would have realized with falling home prices.  On top of that, FHA is working on tougher qualification standards.  There is even talk that they will want a full 5% down. (the buyer will need 5% of their own money in the mix) and reduce the amount of seller help that a seller can give to a buyer.  On top of that, why would any first time home buyer not take advantage of the $8,000 first time home buyer tax credit and any repeat/move-up buyer not take their share of the $6,500 credit.  YOU HAVE TO BE UNDE CONTRACT BY APRIL 30, 2010 and you have to close (completed the purchase) by June 30, 2010.  Need to buy in the next 24 months?  NOW IS THE TIME!

SELLERS:  The low interest rates are keeping your home values from falling even quicker.  The government has slowed down the natural progression of the market to correct itself, by buying down the interest rates and offering the first time and repeat buyer tax credit.  Your homes value will continue to decrease.  How much is unknown by this writer.  (IF I Only Had A Crystal Ball)  If Shiller is correct, we will see declining home values into 2013.  Many experts also predict that the days of 10%, 15% & 18% appreciation are long gone.  We will be back to a modest 1% to 2% (across the country).  I believe that here in New Castle County Delaware, we will start off with slow or low appreciation on home values and will increase to a modest 4% - 5%.  What does all that mean?  If you are sitting there thinking that you are going to wait until next year to sell your home, YOU ARE WRONG!!!! if you think the values of 2006 are going to return or even the values of 2008.  If that is what you are waiting for, you may just be sitting there with your calculator on December 31, 2018 thinking, I should have listened to The Team Sordelet Realty Group.  I should have given them a call at 302-476-2057 or checked out their web site www.teamsordelet.com

We can help you get the job done and done right!

Better late than never.  Attached you will find the 3rd quarter market stats for the New Castle County, Delaware market.  At The Team Sordelet Realty Group, we understand that everyone is hearing different data reports.

For the most part, we are in a buyers market, but I guess that you were kind of thinking that.  That is not all doom and gloom for sellers!  If you are a seller or are thinking of selling your home, LETS GET GOING!  Interest rates are low, the tax credit has been extended, buyers are looking.  Not that every house is going to sell.  You are not going to get 2006 prices for your home.  (Average Sales Price Has Even Declined From The Second Quarter of 2009 to the Close of Quarter 3). 

Things could be worse.....There could be no tax credit for first time and move up buyers!  Interest rates could be at 6.5%, FHA could make it harder to qualify for financing!  Oh, WAIT A MINUTE.  The tax credit expires at the end of April 2010. (you have to be under contract by April 30, 2010 and closed by June 30, 2010).  There are many experts predicting that interest rates will top or exceed 6.5% by the third quarter of 2010, some are saying higher.  FHA is in the process of imposing stricter guidelines on mortgages and the government is posed to stop purchasing mortgage backed securities.

So, IF you are a buyer or seller!!! now is the time.  Take a look at our web site www.teamsordelet.com if you have any questions, you can email us at WeSell@teamsordelet.com or you can call our office 302-476-2057.

We covered that the average sales price has decreased and it was also expected to decrease in the 4th quarter.  The number of homes increased in the third quarter of 2009 and the number of homes sold rose but that number is forecast to have decreased the fourth quarter as the average days on market.

Take a look at the charts below.  It is broken down by zip code.

So, you are thinking about buying a home?  The home buying process should be a very fun and exciting time.  Of course, it is an emotional time as well.  In Delaware, we require the sellers to provide a Property Disclosure, or a Disclosure of Real Property.

There are very few exemptions to this requirement.  (estate sale & bank owned are two examples) 

When you finally decide to look at homes, the listing agent should have a disclosure in the home, many times the potential buyer can take a copy, or if you have further interest in the property your agent should be able to pull one from the MLS (multi list).

Remember, once the seller has disclosed a defect, the disclosed item may not be brought back up for further consideration based on the home inspection.  The bottom line:  If you see something disclosed that you want repaired or addressed prior to you taking ownership - ask for it to be fixed when presenting an offer to purchase.  The seller is not obligated to do anything if it was disclosed and you did not care at time of contract but your home inspector made an issue and now you want it fixed.....SORRY!

Delaware real estate laws are different from many other states and each state may or may not have its own laws regarding disclosure. 

As a home seller, it is always better to disclose than not to disclose.  Sellers should disclose and leave it up to the home buyer to decided if it is something that they would like addressed.

For more information on property disclosure and Delaware real estate, contact the Team Sordelet Realty Group.  Visit us online at www.teamsordelet.com

Attached, you will find an article that can be found in the Wall Street Journal. http://online.wsj.com/article/SB10001424052748703535104574646600132632292.html?mod=WSJ_hpp_sections_realestate

Let us know what you think!

Happy New Year!

Have you been thinking about buying or selling a home in 2010?  If you are a seller, are you concerned that your home's value has fallen?  Thinking of buying?  Are you trying to time the market, in order to get the best deal?

Well we are glad you asked.

If you are a buyer or seller, there has never been a better time to get your home on the market or get yourself out there looking and planning to make that purchase.

As a home seller, we do not know how long the interest rates will be this low.  They are low, buyers are spoiled with this.  Any increase in rate, as little as 1%, may shut down this buyers market-until prices fall again!  OUCH!  So if you have been thinking about selling, you should consider getting your home on the market now.

Buying a home, pretty much of the same advice as we just gave to the sellers.  As soon as interest rates increase, your buying power will decrease!  On top of that, you need to be under contract by April 30 to take advantage of the "HOME BUYER TAX CREDIT"

So if you find yourself with the thought of buying or selling a home in 2010, you need to get on board right now!

For more information about buying or selling a home in Delaware, contact the Team Sordelet Realty Group.  www.teamsordelet.com or 302-476-2057.

We don't know what 2010 will bring us.  What we can say is that all the signs are pointing to an increase in mortgage rates!  An increase in mortgage rates will do no favors for either the buyer or the seller. 

Don't wait until it is too late!  Act today!  Get in touch with David Sordelet or Iris Sordelet today!

WE WISH YOU A MERRY CHRISTMAS AND A HAPPY NEW YEAR!

http://www.teamsordelet.com/

WE NOW OFFER A FREE i-pod/i-phone app.  FREE APP ALLOWS YOU TO SEARCH THE MLS... when you want and wherever you are!

click on the link and follow the instructions http://www.teamsordelet.com/

Santa coming to town tonight and New Years Eve a week away, did you accomplish everything that you wanted to accomplish in 2009.

Did you set a goal to buy or sell a home in 2009 and decided against it for some reason or other?

Here are some reasons on why it is a great time to buy or sell a home:

• Buyers: Interest rates are at an all time low!
• Sellers: The tax credit has been expanded and you may also qualify for a refund/credit on a new purchase for yourself!
• Buyers: Must be under contract by April 30, 2010 and closed by June 30, 2010!
• Sellers: The low interest rates are keeping the current value of your home stable!
• Buyers: Within reason, there are great deals to be had when deciding on a home to purchase.

What will higher interest rates do to the home seller and the home buyer?  First of all, the low interest rates are providing buyers with great buying power.  At today's rates you may be a $300,000 buyer.  If the rate increases by 2 points, your payment will increase by $336.00.  For most buyers, that is a substantial increase in payment and will stop you from purchasing that great $300,000 home.  In fact, at today's prices and keeping the same payment, you will be forced to purchase a home priced at $250,000 and still have a payment that is $21.00 higher than the lower rate of 5% and a purchase price of $300,000.  The next drop in housing prices will not gain you a thing.  You will have the same or higher payment and you will miss out on the Federal Tax Credit of $8,000.  What is out there right now that meets your needs?  By clicking on the following link, you will be provided with access to every listing, everything that is for sale, just like what the real estate agents have access to.....IT IS FREE!  http://www.teamsordelet.idxco.com/idx/4618/basicSearch.php

Sellers be aware!  Higher interest rates are going to knock out many more buyers from this already fragile market.  When this happens, you will be in a situation where the saleable home market will shrink!  What does that mean?  Well, being in a buyers market means that we have shifted into a market that will only allow homes that are the best priced and in the best condition to sell, unless you are selling well below market value.  A decrease in buyers will make the "buyers market" even more powerful.  If you really need to sell in this market you will most definitely have to be THE BEST PRICED HOME out of ALL your Competition and THE BEST OF THE BEST!  So you think the market is tough now, wait and see.  Thinking of selling, now is the time!  Find out what homes in your area are selling for.  Here is a gift for you.  It is FREEand by clicking on this link you will be provided with a free report that will outline to you, your local market activity, Active Listings, Pending Listings and Sold Listings! http://www.teamsordelet.com/Market-Snapshot 

We hope that you had a great 2009 and are planning on an AWESOME 2010!

If you ever have any questions about buying or selling real estate, we would appreciate the opportunity to help you!  You can always reach us by email: wesell@teamsordelet.com or by phone: 302-476-2057

Buyers and Sellers, DO NOT WAIT UNTIL IT IS TOO LATE!  The first quarter of 2010 may be the best quarter of the entire 2010 to buy or sell a home.  Don't get left in the cold, dark corner. 

www.sellmydelawarehome.com

I guess the answer to that question (Should I wait to sell my house) depends on your current situation.  Here are some of the questions that you should be asking yourself:

• How much is my home worth today?
• How much will my home be worth in 6 months?
• How much do I owe on my home?
• Is my rate getting ready to adjust? up or down?
• If I did sell, where would I go?
• How soon would I like to be in a different home?
• If I owe more than my home is worth, do I have extra money to come to the closing table with?

I would say that the answer to the question would be a FLAT OUT "NO"  would be if you really want to move, and:

• Have a great job?
• Not having any problems making your mortgage?
• You owe more on your home than it is worth and you do not have the extra money to bring to closing?
• You are not planning on moving out of town?
• You will not HAVE to move any time with in the next 10 years?

If you can not answer yes to every one of the above questions, then maybe you need to think about speaking with a real estate professional. 

Right now is a great time to sell, especially if you are not a short sale.  There are so many short sales and bank owned properties on the market and the buyers have to wait forever to find out if their offer was accepted.  In most cases the short sale and REO homes need a lot of work.

Contrary to what many people will say (experts) our market here is not getting any better.  If you, as a home owner, are thinking that you will wait until April to put your home on the market, you should really think again.  I mean, REALLY think that over again! 

www.sellmydelawarehome.com

Look what could change over the next 6 months in our market and across the country:

• Interest rate increase
• 15% un-employment
• tax increases
• double digit inflation
• stock market crash
• any number of BAD things

So, if you could sell your home today, for a price that is fair-in today's market, buy something else and Get A Great Deal On It - - WHAT ARE YOU WAITING FOR?  www.sellmydelawarehome.com

There are plenty of first time home buyers who want to take advantage of the tax credit and the time is running out.  With so many short sales, it is a virtual crap shoot on being able to close by the November 30, 2009 deadline.

If you home is not a short sale and you have been thinking about making a move, NOW IS THE TIME!!  I Kid You Not!!  www.sellmydelawarehome.com

I have attached two links to articles that I found very interesting.

"4 Signs Your Home Is About to Lose Value"

"No Quick Recovery for Home Prices"

www.sellmydelwarehome.com

Of course, I do not have a crystal ball.  I have spent many hours studying our current market and as a real estate professional I feel that I should be well learned in our market.

THE ANSWER TO YOUR QUESTION: YES YOU SHOULD GET YOUR HOUSE ON THE MARKET-RIGHT NOW!  www.sellmydelwarehome.com