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 have been thinking about buying a home.  You have looked on line and probably stopped by new construction-most home buyers have.

Have you noticed any changes?  What is on your must have list?

Well, according to the NAHB, National Association of Home Builders, the average size of new construction homes have decreased for the first time since 1982.

The Wall Street Journal www.wsj.com has just published an article that addresses these very same issues.  Check out the link: http://online.wsj.com/article/SB10001424052748704509704575019462787197650.html?mod=WSJ_hpp_sections_realestate

It seems that the leaner and meaner buyer of today is interested in a slightly smaller home that offers more energy efficiency as well as Nine foot ceiling on the first floor and a nice walk in closet in the master bedroom.

Of course, the builders, may also be downsizing to save on cost.  I have notices that some of the builders in the Delaware Real Estate Market have stopped using the fancy crown moldings and even wood trim around the windows.

So, if you were going to buy today, what would you be looking for in a home.  We always welcome your comments and would appreciate for you to visit our web site.  www.teamsordelet.com  You can also email David Sordelet or Iris Sordelet at any time.  Our phone number is 302-476-2057

what homes are selling for in your immediate area.exactly Realty Group offers a free Market Snapshot.  Yours for the asking.  It is a custom prepared report that will outline and show you SordeletIf you are thinking of selling, this may help you better understand what today's buyers are looking for.  Of course you are not going to turn an 8 foot ceiling into a 9 foot ceiling.  On the flip side, maybe the builders are dictating what they are willing to sell, so they can save construction costs and make more profit.  Need help deciding what your home may be worth.  The Team

So, you’re ready to sell your home.  In fact, mentally you have already moved out and are enjoying your new place.

Wait just a minute….You Have A Lot of Work to Do!

We are in a challenging market, but homes are selling every day!  There are buyers out there, ON THE HUNT, ready to make that purchase.

What are today’s buyers looking for?  How can we get them to like your home enough to make an offer?

• You need to achieve a sense of order by packing up photos to eliminate clutter and minimize the amount of furniture in each room.
• Keep in mind that most buyers can not see beyond the clutter.  So, even if you think it is not cluttered or looks great to you, get a second opinion.
• There are many ways to get an honest opinion about what needs changing in your home.  You can invite straightforward, (straight talk, don’t care if you hurt your feelings) friends-your real agent (most may have a hard time being honest)-hire a professional stager.
• If you are on a limited budget, you can concentrate on: Cleaning up!  A spotless, odorless, light-filled home sells faster and doesn’t cost much to create.  Changing hardware-is another inexpensive way to update.
• You should paint!  What color(s) should you use:  Soft, neutral colors create a sense of warmth.  White evokes coldness.  Many people usually like earth tones.  Just don’t use a different color in every room.
• A stage home COULD get you tens of thousands of dollars more from your buyers.  Even if staging a home does not get you an extra 10 or 20 thousand dollars, It will help you sell it faster.  There are so many homes that have not properly been cared for, in our current market.  Agents love to show staged homes, this increases your chance of a sale.
• Show off that fireplace and those wood floors.  Both are very desirable and should be highlighted.  Put a nice stack of logs inside the fireplace and candles on the mantel.  Show off those wood floors by picking up rugs, which can also make a space feel cluttered and small.
• When it comes to furniture as few pieces as necessary goes a long way.  Do not push all the furniture against the walls.  In larger spaces, floating the furniture in the center, makes a space look larger.
• One of the most important, if not the MOST IMPORTANT is curb appeal.  I have pulled up to many a listing with a buyer and because it has looked so bad (not appealing) the buyer just said, “Lets Go”.  From a well manicured lawn, nice landscaping, no stray bicycles or lawn tools-this is very important, because it’s the first thing people see.  A clean kitchen and clean bathrooms go a long way.  Many buyers will judge the house on how clean the floors are.  We want the buyer to enjoy their experience in your home.
• After curb appeal, the first room that the buyers walk into, when entering your home, is probably the most important.  Make sure it’s an attractive, clean, clutter-free space, even if its just a hallway!

Now that you have all of that down, the next most important thing is to hire a real estate professional.  That is right, a professional.  Not a weekend warrior!  Not someone who dabbles in the business.  A professional is one who works in the business full time, takes time to stay educated on the hottest trends.  One who is up on the latest and greatest technology.  One that understands and uses multiple internet marketing portals.  Maxes the web sites out with pictures, pictures and more pictures.  Buyers are spending more time on the internet than ever before.  We need to capture them and keep them interested enough to schedule an appointment.

For more information on how to get your home sold:  www.teamsordelet.com  302-476-2057, ask for David or Iris Sordelet. 

The sun, moon and stars are lining up for all of you buyers or want-to-be buyers. 

The numbers for New Castle County Delaware are showing that days on market (DOM) has dropped.  That means that homes are starting to sell a little bit quicker.  Why?  The sellers are finally getting it!  If they want to sell and sell now, they are being more price realistic, with the times.  Also, buyers are seeing that todays prices are more realistic and the homes that are listed are looking like a great buy.  (At least some of them) www.mydelawarehomesearch.com

What does that mean for all of you Want-to-be home buyers?  Prices are low, at least they are looking like a great deal for most buyers in todays market.  Interest rates are low, at least for now.  For you FIRST timers out there, we still have that tax rebate, ($8,000).  This ends on November 20, 2009.

Check out the Market Watch video below.  It will shed some lite on why it is a great time to purchase a home.

http://online.wsj.com/video/buying-real-estate-at-the-bottom/3888988F-8F10-4E9B-8F12-73D29CChttp://online.wsj.com/video/buying-real-estate-at-the-bottom/3888988F-8F10-4E9B-8F12-73D29CC6E3FE.html6E3FE.html

Thanks again for letting me take up some of your time.  If you would like to search for homes, try our free no obligation search site, www.mydelawarehomesearch.com

Interested in seeing how much your home is worth? www.sellmydelawarehome.com

We would love to hear any comments that you may have.  You can also check us out at www.teamsordelet.com

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