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HomeRun Homes is a centralized marketplace which helps people Find or Sell a Rent to Own Home, both Nationwide and Globally to the thriving Rent to Own Market. http://www.lease2buy.com
Showing posts with label realtor. Show all posts
Showing posts with label realtor. Show all posts

September 5, 2013

Big Market Players Focus on Filling Homes with Renters

Hi folks,
   I like to consider my readers as quite familiar with the way the Real Estate market works, namely, the ebb-and-flow of buying properties and selling properties. With that being said, you know that Investors make up an important chunk of overall home purchases. However, per data from the National Association of Realtors (NAR), in early 2009, 25% of homebuyers were investors. Earlier this year (in February), they made up 22% of home buyers, but then, in July, that figured dropped to 16% Nationally.

   "Housing has morphed from a form of shelter to one of the most popular tradable assets, thanks to a huge influx of institutional investors in a mammoth, albeit decreasing, supply of distressed properties", writes CNBC Real Estate Reporter Diana Olick. Olick adds that this is why, "...it should come as no surprise the housing market is now nearly as volatile as the stock market". Indeed, it is volatile, but what happened to all of these investors?

   Not too long ago, large investors like funds Blackstone and Waypoint were buying properties by the bushel, and pushing up home prices. But now? Well, with all of the homes under management, they are working on filling the homes with renters, as Olick wrote in her article, "As investors shift, housing is the new stock market", now investors are focusing on filling those houses with renters.

   With the slowdown in investor purchases, Olick say that there could be a consolidation of investor firms (larger firms buying up smaller players). But the volatility remains. A contributor for Olick's story was Glenn Kelman, CEO of Redfin (an online real estate sales company), who said that, "We've seen more volatility in real estate in the past five years than we have in the past 500".

   Stay strong and Stay tuned!



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Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes - Rent to Own Homes, since 2002
"Located at the Corner of Technology and Real Estate"
Rent to Own Homes and Real Estate Blog for HomeRun Homes: http://blogging.lease2buy.com

HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com



TAGS: #RealEstateinvestor #buyingproperties #sellingproperties #homepurchase #Realtor #NAR #distressed #housingmarket #sales



August 15, 2012

The Unwritten Rules Of Internet Real Estate Websites

Hi Folks,
   Once in a while, there is information that I like to share with you, however, I like to try not to cross over the line of impartial (not by too much, at least) to "Sales Pitch". Today is one of those such days!

   As anyone in the Real Estate industry will tell you, with a few clicks of the mouse, you can have a seemingly infinite amount of resources to help you decide to buy or sell a property. Data on past sales, photos, floor plans, etc, can all be located on the Internet, and can speed up the entire process.

   However, "not all websites are created equal, and not every participant knows how to properly harness the opportunities offered by the Web", says David Bediz, principal of the Dwight and David Group, LLC of Coldwell Banker Dupont, in a story titled, "Real Estate in the Internet age", on the website, WashingtonBlade.com. Bediz points to some agents that are still relying on "blurry cell-phone-camera photographs to help them sell their listings". Bediz says that sellers need to monitor their listings for mistakes and to be more vigilant. As for the other side of the closing table, Bediz say that Buyers have a "responsibility to themselves to learn the differences in online information sources"

   When we talk about Real Estate data websites, quite often, Trulia and Zillow are quoted by major media outlets, but as Bediz says, "the truth is that most of their listings contain inaccuracies.", and he says that most notably, "Trulia and Zillow are notorious for posting listings as “Active” that have long since sold.", and says that they "rarely post listings at the moment they are listed. This prevents a serious homebuyer from learning about a new home listing quickly enough to act on it, especially in a situation where there could be multiple offers."

   Why do these "big fish" websites have these deficiencies?

   Bediz says that it, in a way, "it’s because of their sheer size", and adds that since they are nationwide sources of data, and "to collect data from every corner of the country, they cannot possibly rely on a direct connection to each online database (Multiple Listing Service, or MLS) for each area. This is especially true when some areas are served by several MLS’s, and also when many of these services charge upwards of tens of thousands of dollars for direct access to their services." The way they go about it, as Bediz describes, is that they rely on "relationships with the major brokerages that exist nationwide to feed information to them directly, and they also have built-in programs to scour the web for additional listing and sale data." For any properties listed by a smaller brokerage, those listings may never show up on these two major sites (since they wouldn't have a "direct method for feeding listing data to those websites").

   So how can a buyer ensure that they are seeing current (as well as accurate) listings, and how can a seller ensure their listings are seen everywhere (including Trulia and Zillow)?

   Bediz suggests that buyers should visit "REALTOR.com or, locally, HomesDatabase.com, which is the public side of the only MLS that serves Washington, D.C. and surrounding areas.". He also suggests checking out "Other individual and broker websites" (including his website, www.DwightandDavid.com), which he says has, "direct connections to the MLS". For Rent to Own Homes websites, such as our site (Lease2Buy.com and HomeRunHomes.com), there is no direct connection to Trulia and Zillow, however, we do Feed our listings to them, and they get picked up as for Sale, with the keywords of your descriptions absorbed within the listing on other major Nationwide Real Estate Data and Listing websites. This certainly boosts traffic to your Ad.

   Bediz suggests that you ask an agent that might list your home if "their brokerage has a direct feed to Trulia and Zillow.", and if the agent pays to "advertise on those sites, or pays to increase the visibility of their listings there.".

   What has your experience been with Trulia, Zillow, and other major Real Estate data websites?


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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
Rent to Own Homes and Real Estate Blog for HomeRun Homes: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com


TAGS: #RealEstateWebsite #Trulia #Zillow #MultipleListingService #MLS #brokerage #realtor #renttoown #listings #offers #pastsales #floorplans #homebuyer #feeds

July 5, 2012

Developers Say, "If You Build Them, They Will Rent Them"

Hi Folks,
   Hope you had a great July 4th, and if you were lucky enough to snare a 5-day weekend, then good for you !

   It always amazes me to see the things people do to adapt to the financial environment, but when you start looking at what large companies do to adapt, you quite often will see a slower response, as the inner mechanics all need to line up, however, that is not always true!

   With the bump in May building permits spanning both single and multi-family (apartment), this indicator of future construction made it to the best levels seen in about 4 years. With this market direction, a large number of Developers are building single family homes as rentals, per a recent article on CNBC.com, titled, "More Builders Are Turning to New Market: Rentals".

   The interesting point, the article says, is that, "Historically, builders did this largely in low-income, government-subsidized housing projects", but goes on to say that the "market is quite different today." One such developer mentioned was Joe Petersen of Insight Real Estate Strategies in Texas, who said that "there are so many people with mortgage issues … and just recognizing these issues will not go away soon, we felt like how could we deliver high quality rental housing in a product that single family homeowners would appreciate?”. The answer: high-end homes built specifically as rentals, which takes all of the variables into account (mortgage industry, economy, etc).

   Petersen is clearing land and raising money to build single family homes just outside Ft. Worth, and does mention that a lot will be different in this type of construction, including the maintenance and business plan, but he "believes demand is strong enough for him to be able to charge premium rents"

   Petersen is banking on the fact that since rent homes are typically "not the nicest homes", that he will be able to offer people something different, "having a professional staff on site, maintaining and managing it", in which they can "offer a lifestyle very different from a part-time Realtor or a homeowner who’s renting it because he can’t sell".

   Now, back to those "rent homes". Per the CNBC.com article, Beazer Homes recently launched a “pre-owned” business, “for the purpose of acquiring, improving, renting and ultimately reselling previously owned homes within select communities and markets which we operate,” according to its recent 10-Q.

   Taking this a step further, Beazer is "buying foreclosed homes", "rehabbing them, then renting them with the intention to ultimately sell.", so in other words, Rent to Own. Petersen is also keen on the Rent-to-Own option. He intends to build up to 300 homes, and will use the rent-to-own option just as other builders have; "to alleviate a backlog of unsold homes and reduce carrying costs."

   What are your thoughts on this strategy?

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Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #realestate #developer #buildingpermits #futureconstruction #builders #rentalhousing #renttoown #rent-to-own #foreclosedhomes #rehabbing #realtor #homeowner

March 9, 2012

Current Real Estate Scams

Hi Folks,
   Hope all is well, and glad to have you with me.

   As we always like to do our fair share of Public Service, this installment serves as a Scam Advisory notice for the general home owning public, as well as a different kind of Scam involving Realtor-on-Realtor crime.

   If you receive calls from someone claiming that they can help you receive a piece of the $25 billion national mortgage settlement (between Government housing agencies and the nation’s top banks), you could be getting duped by "phone solicitations from scam artists who offer to get them assistance", writes Leslie Berkman in her article, "Attorney General warns of mortgage settlement scams".

   Berkman, in discussing the warning put forth by California Attorney General Kamala D. Harris, warns homeowners to be "skeptical of third party phone solicitations and do not give your personal financial information to a solicitor such as your bank account number, social security number or even the name of the bank that is servicing your mortgage", and that "only the financial institution servicing your mortgage can help you get mortgage relief available from the settlement agreement". AG Harris also reminded the public that it is illegal to charge an up-front fee for mortgage modifications services in the state of California, and that this should raise a red flag if someone asks you for money upfront (Harris said these cases should be reported to the California Department of Justice).

   In another strange case, and perhaps a sign of the fierce competition amongst Real Estate Agents, a broker in Florida was caught with a trunk full of Realtor signs. However, "The problem was they weren't his", says Michael Pollick in his story about this incident ("Real estate broker accused of stealing competitor signs"), and he writes that the broker had 37 of his competitors' signs in his trunk. The result, of course, was the arrest of the broker.

   Now, I'm sure there have been other odd things happening in our vast Real Estate industry. We'd love you to share some of these odd things with us!


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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
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TAGS: #RealEstate #scam #realtor #mortgagesettlement #homeowners #mortgagerelief #California #AttorneyGeneral #Florida

November 4, 2011

Short Sale Caveats for Realtors

Hi Folks,
   Welcome to your weekend !

   The "Wild West". This conjures up thoughts of lawless times and renegades going from town to town and old fashioned "Shoot-em ups". When using the terms "Wild West" to describe Short Sales, this should indicate that dangers abound, and everyone, including Realtors, must be wary.

   Sarah Stelmok writes on Truliablog.com that listing a short sale is a "little like venturing into the wild, wild west", and says that there's only "a little order, lots of imposters, and laws are broken without much penalty."

   Stelmok outlines 3 primary things agents should know about Short Sales in her story, titled, "3 Things Agents Should Know About Short Sales":

1. "Market Value Matters" - Short sales sell for market value, says Stelmok, and adds that a bank will "typically agree to a short sale if the numbers make sense".

2. "Only Real Hardships Get the Help" - "Strategic default is never a good idea", Stelmok says, and adds that banks actually analyze hardships that are reported by a seller, and ones that are acceptable are financial/economic issues, "medical issues, divorce, disability, significant loss of income, death, unemployment, and relocation."

3. "Laws are local" - Since there are currently no national short sale laws, Stelmok says that it's important to "know your state’s foreclosure laws",

   As Stelmok summarizes, "This type of transaction is constantly evolving; however there are a few things that remain the same, and that every agent needs to know when working with short sales."

   What's your experience with Short Sales? Do you have any tips from the trenches (or should I say, from the Wild West?)?

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Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #shortsales #foreclosure #realtor #strategicdefault #marketvalue #agent #laws #hardship

October 20, 2011

Snapshot of September New Construction and Existing Home Sales

Hi Everyone,
   Welcome back to a beautiful Fall day with the potential for a substantial amount of pumpkin picking in the forecast.

   The September figures for both New Residential Construction and Existing Home Sales were released this week, and aside from fluctuations over the past few months, things look solid when compared side-by-side with the same time 12-months ago.

   New Residential Construction, as you might be aware, is broken down into 3 parts; Building Permits, Housing Starts, and Housing Completions. Housing Starts (Privately-owned housing starts), were up 15% from August, and 10.2% Above September 2010. This is very encouraging, especially for the Western Region of the U.S., which had figures that were substantially higher than the average (over both the 1-month and the 12-month periods). Building Permits and Housing Completions were also up over the longer-term, but not at the elevated levels as were the Housing Starts.

   Existing-Home Sales, which includes completed transactions for single-family, townhomes, condominiums and co-ops, dropped 3% from August, but are up over 11% from September 2010, per the National Association of Realtors® (NAR). In terms of regional variations, the long-haul big winner was the Midwest, checking in with in excess of a 17% jump in Existing Home Sales from September 2010 through September 2011.

   The chief economist for the NAR, Lawrence Yun, said that, “Existing-home sales have bounced around this year, staying relatively close to the current level in most months”, and he calls it "Irony" that the "affordability conditions have improved to historic highs and more creditworthy borrowers are trying to purchase homes", but, "the share of contract failures is double the level of September 2010", and he interpreted this as pointing to "an unfulfilled demand". Contract failures, incidentally, can result from a declined mortgage application, appraisal values below the negotiated price, issues resulting from the home inspection report, job loss, etc.

   In sum, Housing Starts up 10.2% from a year ago, coupled with a 11% increase in Existing-Home Sales from a year ago, would tend to point to improving market conditions. Do you agree? Do you disagree? Please explain - we'd love to hear your angle on these figures.

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Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #NewConstruction #ExistingHomeSales #Residential #Housing #Building #Permits #singlefamily #cancellations #townhome #condo #Realtor #appraisal #NAR

September 21, 2011

Buy it, Build it, or None of the Above?

Hi Everyone,

   Hope you are all doing well.

   Today, I'd like to shift gears and try to make sense of the most recent releases of both the New Residential Construction figures for August, along with the NAR Existing Home Sales figures for August. Just as the title asks - "Buy it, Build it, or None of the Above?". Let's see if we can gain a clear response to this question.

   Our first stop - New Residential Construction for August. Building Permits were up this past month and over the past 12 months, Housing Starts were down from July and also down from last August, and Housing Completions were down since July, but were up 2.6% from August of 2010.

   Our next stop - Existing Home Sales for August. Where do we begin? In sum, Existing Home Sales were up 7.7% from July to August, and more than 18.5% since August of 2010. These figures were released by the National Association of Realtors, or "NAR", and the chief economist for NAR, Lawrence Yun, said that "favorable affordability conditions and rising rents are underlying motivations", despite disruptions from Hurricane Irene, which pounded the Northeast at the end of August and took a toll on the Regional figures for the Northeast. However, despite that major storm, the numbers were promising.

   In comments from Ron Phipps, NAR President and broker-president of Phipps Realty in Warwick, R.I., he called the market "remarkably affordable" , but he named some large factors holding home sales back, such as mortgages being denied to creditworthy buyers, and "appraised valuations below the negotiated price." These low appraised valuations are a major contributing factor to contract failures/cancellations, and have increased since July and have soared since last August.

   Now, as if you did not already have a sense of the "winner" between New Residential Construction and Existing Home Sales, here are some more key points: Existing Home Sales in the West soared over 18% from July to August, and over the longer-term (since last August), the big winner was the Midwest, with almost a 27% jump in prices. Additionally, the Existing Home Sales release showed that Investors accounted for 22% percent of August Purchases vs. just 18% in July.

   The word on the Street is "Buy it". When both "Build it" and "Buy it" are hot, we will be making big tracks in our Recovery. What do you think?

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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #ResidentialConstruction #ExistingHomeSales #Realtor #NAR #lowappraisal #risingrent

August 29, 2011

Rent, Own, or the Hybrid of Rent to Own?

Hi Folks,
   Welcome back, and I hope all of you made it safely through Hurricane Irene, and ironically, this weekend was the 6-Year anniversary of Hurricane Katrina. I am still without power, as I post this from a laptop with draining power and through my wireless Droid hotspot. But...the show must go on...

   Oftentimes, when people are renting a home, they get to a point where they realize that they are paying their landlord's mortgage, putting the landlord's kids through college, or any of a million other ways to spin it. But with the complete change in the "norm" that has taken place over the last few years, these thoughts need to be seriously weighed in light of many other factors.

   David Getson, a Realtor with Coldwell Banker Residential in the District of Columbia, was recently quoted in a story by Michele Lerner ("Rent-vs.-own equation changing"), and said that the decision to buy a home vs. rent a home is, “Usually this is an emotional decision rather than a financial one, based on their desire for a dog, to start a family, to put down roots or just to have the ability to paint their walls whatever color they want.”

   Lerner writes that the decision to move from renter to homeowner was "simpler in 2005 for two reasons", which she points to as the "trajectory" of real estate prices that made buyers "comfortable that the property purchase would be a good investment", coupled with the fact that mortgage lenders "made it easy for buyers to qualify, even if they lacked cash and had yet to demonstrate a pattern of creditworthiness." However, she writes, the decision nowadays required "more measured thinking about the emotional impact and the financial implications of purchasing a home."

   Getson advises that potential buyers must look at their lifestyle today and the lifestyle they expect to have in 5+ years. In the same story, Bennett Whitlock, a financial adviser and managing director of Whitlock and Associates in Lake Ridge, Va., said, "becoming a homeowner should be part of an overall financial plan rather than a simple rent-versus-own decision."

   Lerner says that instead of contacting a Realtor as a first step (as most potential buyers do), they really should visit a lender and estimate how much they can borrow. Mark Goldstein, president of Capitol Funding in Rockville, adds that some important factors are Job Security, the amount of time the buyers plan to stay in the home, and suggests that buyers should assume 5+ years in the home to recoup costs and see appreciation (similar to the comments of Getson).

   Financially, Getson says that buyers today, "seem to recognize that their comfort level with the monthly payment is more important than borrowing as much as they are approved for". With that in mind, Whitlock suggests to avoid spending more than 33% of your gross monthly income on housing costs. As for a security cushion to cover home maintenance and repairs, Goldstein recommends that you keep some cash reserves on hand.

   Goldstein suggests that one way he advises buyers to prepare for homeownership is to, "take the difference between their current rent and their prospective mortgage payment and put that money in a savings account each month”, and adds that this helps the prospective buyer "get used to the monthly payment and make sure they are comfortable with it, rather than finding out six months after they bought a house that they are paying too much for their mortgage". Definitely a fantastic idea!

   Rent or Own? Decisions, Decisions...! How about the best of both worlds...Rent to Own? Great idea? Yes, I know...shameful promotion time...Rent to Own Homes via our website (HomeRun Homes). OK, sometimes we plug the site...the idea is not to abuse it !

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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
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TAGS: #landlord #mortgage #realtor #renter #homeowner #lender #renttoown


August 24, 2011

Young Inventory Translates To Quick Markets

Good Morning Folks,

   As we all know, there are a wide variety of measures and indices that gauge the health of the Real Estate market. One of the most important of there are the New Residential Sales figures, which incidentally, were up 6.8% from July 2010 to July of this year.

   Another such measure, and quite an interesting one, is one that was recently discussed in an article on Inman News ("11 fastest-moving real estate markets in July"). As described in the article, "Realtor.com released a list of metros with the lowest median age of inventory at the site -- a measurement of how long a property from a given metro area typically spends on the site". Essentially, the logic is that if homes are not sitting in inventory for too long while waiting to be sold, this indicates quick turnover, and thus, a fast-moving market.

   The biggest winner in this category, per the Realtor.com site, was Denver (median age of inventory was 32 days, which was the lowest among the Metros). Additionally, 6 California metros appeared in the list, and Detroit made the list, which is a good sign for their struggling Housing Market.

   Now, the converse of this measure would be the Metros with the highest median age of inventory, thus, slow-moving markets. The slowest one? Naples, Florida, with the highest median age of 153 days. Naples was not lonely in the list, as 7 of the 10 Metros tagged as the slowest-moving markets were in Florida.

   Inventory data is definitely not a new concept, but when it is examined from this perspective, it certainly paints a picture of the markets that are moving, shaking, and in some cases, sleeping.

   What are your thoughts/comments on this?

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Rob Eisenstein
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TAGS: #RealEstate #NewResidentialSales #inventory #Realtor #California #Detroit #Florida

July 28, 2011

Lengthy Short Sale Process a Painful Reality

Hi Folks,
   How is everyone today?

   The National Association of Realtors (NAR) just released their "Pending Home Sales Index" (PHSI) for June, which reflects "When the contract has been signed", but, "the transaction has not closed". The figures came in at 2.4% above May, and 19.8% above June 2010, with the biggest increases from May to June were in the South and the West,

   Now, if you were not aware, the PHSI is a "forward-looking indicator", which assumes about 2 months between the contract signing and the closing. The question this raises in my mind is the following; what about the lead time for short sales from contract to closing? These have been trending longer, and according to a recent story, "Short sales are among the most arduous real estate transactions, often taking six months or more to close -- if they get done at all".

   In the story written by Greta Guest for the Detroit Free Press, and titled, "Shortsales, longwaits: Buyers and sellers find process frustrating", Guest cites an agent in Oxford, Michigan, who worked on a short sale that stretched eight months. Michelle Chappell, an agent with Real Living John Burt Realty in Oxford, said that after the process which she called "heart-wrenching" for her buyers, she said, "This was the last one I sold. I said no more. I won't do it.". Chappell reflects a growing number of Realtors that are avoiding short sales because they can be so difficult, writes Guest (she aptly uses the term, "Short sale shy")

   Why such a long process?

   "Homes with more than one mortgage and mortgage insurance tend to take the longest", said Ellen Mahoney, president of Complete Title Services' loss mitigation division in Birmingham, Mich, writes Guest. She adds that a "growing reason short sale deals fall through or take longer" is because of mortgage insurance" purchased after the homeowner closes on the deal and the loan is later sold to other lenders and investors.".

   Other factors also contribute to the lengthy process, but ultimately, as Guest writes, "These kinds of delays mean buyers walk away because of the time and frustration involved."

   What do you think would trim down the time? Perhaps a standardized process (like the one the Government has tried to implement without success to this point, yet)?

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Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #shortsales #lossmitigation #mortgageinsurance #realtor

June 21, 2011

Realtors And Existing Homes...What It All Means

Hi Everyone,

   I might be shot on the spot for this, but perhaps I won't be...when we think of Realtors, we often think of the Realtors that sell Existing homes...in other words...ones that are already built and are not new construction. If we go with that thought, seeing the clout that Realtors have in the Housing market, we realize how important an indicator the "Existing Homes Sales" figures are (released by the National Association of Realtors®, or "NAR").

   The figures for May were just released, and sales dropped 3.8% from April, but 15.3% from a year ago (when the tax credit deadline was approaching). The figures are the "completed transactions that include single-family, townhomes, condominiums and co-ops", per the NAR.

   "There is still lots of pain in many US markets. Foreclosures and short sales, declining prices and tougher lending standards are prohibiting new buyers from getting in the market", says Barak Dunayer, founder of Barak Realty in New York City. He points to some bright spots, such as properties priced below $100,000, along with some "deeply discounted properties" scooped up by investors. He does offer some hope in his local market, and says that in some areas, as in the case of NY City, "the sales of certain properties in specific submarkets have been robust and even back to 2006-2007 levels.", and reminds us of a very valuable lesson: "As real estate is a local market NOT a national market, one must look closely at local market conditions prior to making sound buying and selling decisions."

   This is some sound advice. On Wednesday, the FHFA Monthly House Price Index will be released, followed by the New Residential Sales figures for May on Thursday. What do you think will be the result of those two releases? We'd love to hear your opinion.

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

TAGS: #Realtor #housingmarket #existinghomes

June 12, 2011

Caveats For First Time Homebuyers

Good Morning,

   Hope you had a nice weekend, and enthralled to have you back with me again today!

   "First Time Homebuyers can be the most fun to work with of any client.", says Realtor Dawn Ohnstad, a Realtor with Coldwell Banker Burnet in Wayzata MN, who says that first time homebuyers are, "excited, they want to learn, they ask great questions and once they have selected an agent, they operate as a team member. It makes our job fun!". David Mawyer of the CSSNMawyer Realty Group, says that first time home buyers want to be, "treated with honesty and respect. Regardless of the down payment amount or the price of the home, they are making a significant investment and want to insure that it is a good one."

   This brings us to our topic, of course, which is regarding some Caveats, or tips/warnings, from some Real Estate Professionals.

   Kris Bickell of the Website of Housebuying-tips.com, says that the best advice for new homebuyers is to get, "a good realtor, good mortgage broker, and good home inspector.". Ohnstad suggests that one of the first things they should do is to identify an experienced, reputable loan officer who will, "take the time to meet with them face to face, educate them about their various loan product options and provide a letter of pre-approval." Mawyer also concurs that the it is very important to select the Right Realtor and Lender, who will, "put the buyer’s interest ahead of their own interest". Mawyer says that this will require some homework/research by the potential buyer (asking for references, ask questions about honesty, integrity, and consistency, etc.). He warns that buyers should look out for pressure, as this should be viewed as a “red flag”."

   Mawyer says that it is important to, "Be honest about your requirements", and to assess what is important in the decision (size of the home? location? features? price?), and adds that the buyer should feel free to ask questions.

   Bickell says that she had an unfortunate incident when buying her home since her Realtors ended up being "lazy", since they, "don't make nearly as much money from home buyers". Ohnstad says that it is important to caution them about going to open houses and talking with lots of listing agents. She says that if they happen to find the house that is right for them, "that listing agent will be doing all they can in the interest of the seller.", and says, "This happens quite often, and I wish I could let them all know, that we Realtors prefer to be brought into the equation to represent a buyer sooner, not later." Ohnstad adds that, "Our negotiation power on behalf of our buyer is diminished significantly when all the cards have already been shown to the other side. Any questions they may have, can be answered by their own Buyers' Representative and since the commission is already being paid by the seller, there is simply no down side to getting a pro on their team early." Ohnstad also cautions that First Time Buyers think that good Realtors who have been in the business a long time, "do not want to work on the small transactions.", but she says this is not true, and that, "A good agent wants to work with any qualified buyer who has been pre- approved by a lender and is ready to begin the process."

   When it comes to the home inspector, Bickell says that hers was, "referred by the Realtors, and really didn't do a good job.", but, "Not just because he was referred, but because he missed a lot.". Ultimately, Bickell says that they ended up having to sue him later because he missed a big electrical problem. Due to the issues she experienced during the process, Bickell started her website, "to share the lessons I learned the hard way."

   Onto another caveat; Mawyer suggest that you choose the right search engine, and says that, "If the first time buyer wants to find a home on the Internet, make sure that the search engine being used provides “real time” access to the live database", since, "finding homes that are no longer available for sale can be a major frustration for the first time home buyer." Seems like a great time to plug my website? (Yes - HomeRun Homes, the Classified Ads/Search Engine for Rent to Own Homes.

   These Pros have provided some fantastic tips. Is there anything that should be added to this? We would love to hear from you!

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

TAGS: #firsttimehomebuyer #realtor #mortgagebroker #openhouse #homeinspector

June 2, 2011

Current Building and Construction Trends

Hi Folks,

   Another week in the books, and a hot/humid one it was, at least here in New York.

   On the topic of Building and Construction Trends, the market has changed for sure! Jim Rasche, owner of a Contracting/Construction Management Company, says that for over 43 years, he has seen it all, and in terms of the housing/building/construction market, he reflects on just a few years back when, "the money was flowing", and, "the market for all types of construction investment knew no bounds". As we all know, that has ended. Melanie Taylor of Melanie Taylor Architecture, says that Condo conversions have halted - places converted in 2007 are still on the market. So, with the "Good Old Days" behinds us, today we'll be looking at some of the latest building and construction trends.

   Lydia Player of Virginia Cook Realtors, says that the homes that are, "successfully being built and sold are smaller. No one wants a home over 6,000 square feet." Player says that she sees this trend as, "a function of downsizing and simplifying."

   Rasche adds that the money for new projects was "dried up" for several years, but he says that there are signs of loosening up, "as evidenced by the sporadic requests for proposals I am getting from private entities." He says, however, that these projects are primarily, "renovations and restorations of existing as commercial building owners attempt to update their facilities without incurring long term permit processes and expensive ground up development."

   Jeanette Chasworth, A Certified Interior Designer, says that people doing more remodeling, and she says that one of the key areas is, "Aging in Place". Homes that are being built are more, "accessibility oriented" and many of the new retirement communities are using this as a key feature in their designs. Chasworth says that many homeowners are making their current homes, "more accessible so that they can stay in them longer and avoid the high cost of assisted living."

   Rasche concurs, and says that there are more and more owners making do with what they have and updating facilities (both commercial and retail) to, "maintain user interest in their facilities". He says that the public sector, however, "is going strong as new projects for heavy and highway and buildings are going out for proposals daily. The ARRA has funded many of these projects and they are now becoming reality." Rasche points to a very interesting morsel of information: "In 2006, there were at least 60 tower cranes on the skyline of downtown Miami. Today you would be hard pressed to find just one! Construction unemployment is listed as being around 20% but I know for a fact that the unemployment among construction management staff is at least 40 to 50% in this area."

   In line with some of the trends discussed above, Cas Mollien CIO of Foram Group, says that you need to, "differentiate from competitors and bring something new and exciting to the market place.", and he provides the example of one of his properties that they redesigned. As Mollien describes it, "We decided to design the new property in a way that we would like real estate to be constructed for current day businesses, with full business continuity in mind. The conclusion of our ideas is a building with unsurpassed business as well as environmental benefits."

   Mollien hit upon a very important trend; Environmentally Conscious, or, "Green". Kevin Costenaro of The Augusta Group, says that the, "most glaring trend we are seeing is that of going "green.". He says that nearly every one of his clients for the past 2-3 years has at least, "inquired about the use of alternative heating & electrical systems, if not actually had them installed.", and that, "We have installed a combination of geothermal systems, wind power systems, solar PV systems, and/or solar thermal systems on 50% of our projects." Interestingly, Costenaro says he, "does not see any evidence that these trends are due to economic reasons but rather a feeling of wanting to be better stewards of the environment."

   One other feature that Cas Mollien mentioned is that they decided to, "approach network connectivity as a fourth utility", by offering, "massive amounts of scalable and redundant bandwidth directly to one of the nation's largest Internet Exchange Points (IXP's).", which, he says, "provides an unsurpassed experience to our tenants, allowing them to use the latest in Cloud and mobile technologies, as well as an unrivalled choice in carriers, service providers and connectivity options." This sounds like a trend that could possibly build up more steam over time.

   What are your thoughts? What kind of trends are you seeing?

Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com


TAGS: #Construction #CommercialBuilding #RealEstate #Green

May 29, 2011

Thanks To Our Armed Forces For Their Major Sacrifices


Hi Everyone,

   As Today is Memorial Day, some folks look at it as a day off to spend in the sun, but on this very day (and always), let's remember the men and women in uniform that are on the front lines protecting us, and sometimes, they pay the price with the "ultimate sacrifice", thus, it is "Memorial Day". It is a day of remembrance, where you should definitely spend time with family and friends, and at the same time, keep our forces in your thoughts and be thankful for what they do for us.

   On a side note, the Pending Home Sales Index for April was released late last week by the National Association of Realtors (NAR), and the result (which is a forward-looking indicator based on contract signings) showed a decrease. More specifically, an overall drop of more than 11.5% from last month and almost 27% from April 2010. Lawrence Yun, NAR chief economist said that, "tight credit is the primary long-term factor holding back the market."

   In closing, have a great day, enjoy the Holiday, and remember our heroes !!

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

TAGS: #armedforces #homesales #NAR #realtor

May 5, 2011

Explosion in Number of New U.S. Households

Hi All,

   Welcome back, and TGIF.

   Some time ago, we mentioned the rapid increase in new U.S. Households, and recently, there was a great article on the Realtor.org website that discussed this topic, titled, "Big Jump Expected in New U.S. Households".

   "Millions of young adults are beginning to move out of their parents’ homes and create new households at the fastest rate since 2007", says the article, with additional sources within the article stating that, "In 2011, between 750,000 and 1 million new households are expected to be created". Bloomberg News calls this a, "Major jump to U.S. housing starts possibly by more than 50 percent".

   What was the cause of this "explosion"? The article says that a lot of people had to move in with their parents due to the economy, but as the economy gains momentum, these same people will be looking for their own residence, and thus, the new households. This, in turn, will also stoke Housing Starts (from the demand). The article cites the demographic component of housing as "strong", but limited by current economic and psychological components.

   What does this mean for the Rent to Own Market? Well, if demand is increasing, but people still have blemished credit as a result of the economy, the demand for Rent to own should surge in tandem with this explosion.

   Slap on a helmet and fasten your safety buckle...it's going to be a fun ride !

   Questions? Comments?

Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

TAGS: #renttoown #realtor #housingstarts

May 3, 2011

Common Code Violations Found By Home Inspectors

Hi Folks,

   Glad to have you back here with me today.

   Let's face it, Home Inspectors do not have an easy job. They often enter homes of people that they have never even met before, and in some cases, are even met with a hostile welcome. Additionally, they need to be well-versed in all local codes, running the gamut of Electrical, Plumbing, Building/Structural, and more

   With that being said, today we will be taking a look at some of the most common code violations that Home Inspectors see on a consistent basis, which falls into 3 popular categories: Electrical, Plumbing, and Building/Structural.

   Chantay Bridges, of LA Real Estate Now, says that some of the electrical hazards that are most common usually occurs when there are, "too many wires plugged into one outlet or switch that can cause a fire." Sam DeBord, a Managing Broker and a Realtor, adds that a, "Lack of GFCI outlets in bathrooms and kitchens and other minor electrical issues like reverse-polarity on outlets." is quite common, and that this is, "an inexpensive repair that most home sellers would benefit from repairing for selling their home."

   Plumbing issues are also very common, and as Bridges says, they encompass, "dripping faucets, loose toilets, improper drainage and so forth." Sasha Tsakh, VP Sales and Marketing for a licensed plumbing company, mentions the, "Illegal plumbing work" that he finds, and says that, "It appears that many home owners are not aware that you need to have licensed contractors performing work. They have illegal gas lines and missing safety features. It's really sad to see how they've been taken advantage of, especially since there is no way to find these people once they've performed illegal work."

   The third issue is related to Building Code (including Structural Code). Bridges points to, "Illegal additions to properties", and she cites the following examples; "Someone added a room, altered the garage, etc. without a permit.". Paul S. Gilbertson, a former General Contractor, adds some issues that he has seen in regards to steps and railings, as well as handicapped ramps and landings. Additionally, Bridges also mentions that roofs tend to, "constantly make the list due to aging, rotting, wear and tear.", as well as, "Leaks" with improper ground drainage, ceiling stains from previous leakage, and rotted, molded, exposed untreated wood surfaces. Finally, she mentions some other issues, such as bars on windows without proper escape or emergency mechanisms, inoperable smoke detectors" (or smoke detectors that are not installed at all).

   Indeed, as mentioned at the start, being a Home Inspector is not easy. Hopefully some of these tips will help you prepare for any future home inspections, and save you time, money, and aggravation. Any comments? Did we miss any common issues?

Have a Great Day, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

March 28, 2011

How Can You Prepare Your Home to Sell?

Hi Folks,

   Thanks for joining us for another day of news and information on the Real Estate and Rent to Own Market. Today, as always, it's my goal to provide you solid news and information that will help you in all of your real estate endeavors.

   The topic for today covers some tips on preparing your home for sale (or even for Rent to Own). John Ruzicka, a person that has worked as a buyer's agent in California since 2004, and has heard a lot of feedback from potential buyers, tells us that there are three top things a seller can do to prepare their home for a quick sale, which he says are, "Remove clutter - box it up and put it away! You're moving anyway, so why not get a jump on the packing?", "Mow the yard - clean the clutter outside, mow the yard (and keep it mowed), consider planting some seasonal flowers to add some color", and "Make a good first impression - what's the first thing that buyers see when they walk in the door? Is that going to make a favorable impression? If not, consider making a change, which could be as simple as having carpets cleaned, re-painting a single wall, or leaving drapes open to let in natural light."

   In keeping with the idea of first impressions, Joyce O'Haus, of LaTorraca Realtors, suggests to Remove any old carpet ("this takes odors out and makes such a better first impression"). She also suggests that you, "Tie back all curtains to let in light - make sure windows are clean". Additionally, she says you should remove, "half of your furniture, make all rooms appear as large as possible.", and says, "please please please, no pet odors allowed."

   Jewell Staley, a self-described expert at helping sellers prepare their homes for sale, makes some additional suggestions, the first of which is to consider, "re-glazing the tile in a neutral color (have your contractor scrape the grout and re-grout after glazing). Another option is to add wainscotting over the tile." Staley says that, "An outdated kitchen can be easily updated with a few changes", of which she gives the following examples: "a) update kitchen knobs b) replace an old Formica counter top with at least a pre-cut laminate counter top in a stone pattern or tile the counter top with bright white tiles c) purchase replacement knobs and drip pans for old appliances."

   Staley says that you should update outdated fixtures – lights, bath, and kitchen, replace old outlet covers with new covers which can cost as little as 25 cents a piece, and says that if you haven't painted your house in the, "last 10 years, it’s time for a fresh coat." She highly suggests Earth tones.

   Jacob J. Gabrie, CEO of Town Center Realty Group in El Dorado Hills, California, says that, "It's ok to ask questions. Ask many questions of your agent, their broker and others in the industry even...you may be surprised by how much you can learn simply by asking questions." Gabrie also suggests that you follow up with your agent, and, "If the agent is not returning your calls or emails, it may be that they are not returning the prospect calls either. Keep tabs on the agent and voice your concerns if they don't follow up." Finally, Gabrie suggests that you do inquire, "regarding the marketing of the home; specifically asking the agent what they are doing to market the home on a regular basis. There are many ways today to market a home besides the newspaper and open houses. Ask for "copy" of the marketing that is published and the links to the on-line marketing."

   Joan Gale Frank, a real estate investor, a home seller, an author, has made some great "out of the box" suggestions, such as to, "Install a brass or polished metal kick plate to your front door to make a home look richer (as you'll often see on the doors of expensive financial advisor or lawyer's offices.)", to, "Change the elevation of your furniture in a room to include highs and lows, so house hunter's eyes are delighted by seeing something usual, rather than having all of the furniture fall within the typical range of 1 1/2 feet to 3 feet off the ground. (Leaving the top half of the room looking empty.), and says that she does not, "I don't advocate dropping money into major repairs, but some inexpensive updates to lighting, bath and kitchen fixtures and small items such as door pulls, new light switch plates and throw rugs can make a home much more memorable. Of course coming up with a price that attract home buyers is also a critical aspect of attracting buyers."

   Have you recently prepared a home for sale? What did you do that we could all learn from?

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

February 25, 2011

A Look at Current Home Prices and Home Sales

Hi Folks,

   Hope you've had a great week!

   A few key Housing numbers were released this week, and I'd like to review them with you here today since they deal with two very important factors; Home Prices and Home Sales.

   In terms of Home Prices, both the S&P/Case-Shiller Home Price Indices and the FHFA Monthly House Price Index were released this week. The S&P Indices, which provided data through December 2010, showed that the, "U.S. National Home Price Index declined by 3.9% during the fourth quarter of 2010.", and that the, "National Index is down 4.1% versus the fourth quarter of 2009, which is the lowest annual growth rate since the third quarter of 2009, when prices were falling at an 8.6% annual rate." The FHFA Index didn't fare well, either, with a 0.8 Percent drop in the Fourth Quarter of 2010, as well as a drop of 3.9 percent from the fourth quarter of 2009 to the fourth quarter of 2010.

   Chris "CD" Dowell of RE/MAX Best Associates, says that, "A high percentage of home buyer are investors. They're not worried about list price when making offers. They're looking at market value." Similarly, Paul Gabrail from Select Investment Group, says that many thought that, "because we saw short term leveling of prices a few months ago that the problems were over. Yet, we still have 9%+ unemployment, over leveraged borrowers, and banks are still increasing their foreclosure filings, which lead to lower prices because of oversupply."

   In terms of Home Sales, Existing-Home Sales Rose Again in January, as per the National Association of REALTORS®. Existing-home sales figures, which marks, "the third consecutive month with a pace that is now above year-ago levels". New Residential Sales in January 2011 were 12.6 percent below the revised December rate, and 18.6 percent below the January 2010 estimate.

   In summary, as Gabrail says, "some of these hotter markets are even worse - 13%+ unemployment, one in 10 houses behind on their mortgage and houses sitting empty and on market for over 1 year. It's all supply and demand and there is no demand when unemployment is 9%, so we have both extremes: Low demand and over supply."

   Do you have any comments on the Housing numbers release this past week? We'd love to hear from you.

Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

February 23, 2011

Guidelines For Earnest Money and Down Payments, Part 2 of 2

Hi Folks,

   Welcome back here on this last day of the week.

   In part 1 of this 2-part series, we defined and discussed "Earnest Money", and today, we will do the same thing with "Down Payments".

   A Down Payment, as most of you know, is an amount that is "put down" towards the total purchase price of a home. This amount can vary by state, type of loan program, and the type of deal. We'll look at some real-word examples of this today.

   Joetta Talford, a Realtor with Keller Williams Realty in Fort Mill, South Carolina, suggests that you, "Make sure you figure out how much your closing costs will be and if you either have enough for your closing costs or the down payment.", and that, "If you don't have enough for both (i.e. Other house on the market, ask for help with closing costs), Be honest with your agent and they can really try to get it worked out on your behalf." Adam Cowgill, A Sales Associate/Realtor, says that any down payment today, "should be a minimum of 20%; sellers are aware of the present lending crunch and the likelihood that you will get a higher LTV than 80% is gone like the boom of yesterday."

   Jeff Tufford, a Mortgage Consultant, says that down payment amounts will be, "program driven". Most folks put the least amount down allowed, whether that is $0 or 20% for an investment property."

   Down-payments depend on, "whether the deal is lender-financed, or seller-financed", says Patrick E. Hudson, a Commercial Real Estate Attorney in Texas.

   Hudson says that in a lender-financed deal, "the buyer needs just enough of a down payment to persuade the lender to make the kind of loan the buyer desires. My advice is for a buyer is to determine what kind of loan they want, and will be able to get, before they shop for homes, and let that determine the down payment amount. The seller should not care about the down payment amount, as they get paid the same regardless of the source of funds." In a seller-financed deal, "it is essential to get enough money up front to (a) weed out deadbeats; (b) cover the costs of foreclosure; and (c) cover damages that may be caused by a defaulting buyer. This defensive position ensures that if everything goes wrong, the seller has enough money to get the house back and restore it to a good condition."

   In terms of down payment amounts in regards to home home builders, Talford says, "There are certain national residential builders that ask for 3.5% down or more before they begin the process of construction.", and that, "A custom home builder will ask for 10% down before they build. But everything in real estate is negotiable, especially if you have a home to sell or need to pay more for closing costs."

Have a Great Day, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

February 21, 2011

Guidelines For Earnest Money and Down Payments, Part 1 of 2

Hi Folks,

   Happy Monday to you, and a Happy President's Day, as well !

   We are starting a 2-part series covering some basic guidelines on both Earnest Money for Real Estate Deals, as well as Down Payment Money for purchasing a home. For today's installment, we will be examining Earnest Money, what it is, and what the right amount should be based upon.

   As Earnest Money is described on About.com, "It's a good faith deposit but not to be confused with a down payment. When buyers execute a purchase contract, the contract specifies how much money the buyer is initially putting up to secure the contract, to show "good faith," and how much money all together will be deposited as a down payment. The balance is generally financed as a mortgage or a combination of mortgages. An earnest money deposit says to the seller: "Yes, I am serious enough about buying your house that I'm willing to put my money where my mouth is."

   "After 12 years in the Real Estate industry my advice in this economy is this", says Adam Cowgill, A Sales Associate/Realtor; "you should still offer a deposit that is the maximum amount of money you are able to offer in exchange for asking the seller to remove their home from the market while you satisfy your contingencies". Marc Bulandr of Foreclosure and Short Sale Experts Reoassets, Inc., says that, if a buyer wishes to purchase a property, "the more the earnest money, the more favorable the offer will be viewed by the seller."

   Jeff Tufford, a Mortgage Consultant, says that Earnest Money should be, "market driven", and that in his market in Mid-Michigan, "the going amount is typically $500-1000", and the average home price, he says, is $75,000 to $100,000. Joetta Talford, a Realtor with Keller Williams Realty in Fort Mill, South Carolina, agrees that the amount of Earnest Money, depends on the market and the demand for the property". Talford says that typically, "most buyers purchasing a property for $100k or less can offer $500 in earnest monies", and "anything over $100-150k, the buyer should probably offer at least $1,000". Further, Talford says that, "If it is over $200k, the buyer can expect the seller to ask for 1% of the purchase price during negotiations on a resale. If it is a bank owned, HUD or VA property, expect to pay $1000 to 1% in earnest monies no matter what the price." The maximum amount, Talford says, "depends on the bank or government program and what their specific guidelines are.", and says, "HUD and VA have the guidelines for each of their programs on line. Banks do not and each bank is different."

   Kelsey Lane of The Look Team Realtors in Silicon Valley, says that in their area, "the standard earnest money or good faith deposit is 3%. Almost all contracts we write has this amount.", however, Lanes says that, "the exception to this" was as little as $1000 earnest money., and says that, "It was in 2006. On properties that have been on the market for awhile, or in lower income areas, we see a lower percentage. However, in the in-demand areas, we still have multiple offers and if a buyer doesn't have 3% for their deposit, they aren't considered to be competitive or serious."

   Patrick E. Hudson, a Commercial Real Estate Attorney in Texas, says that, "The guideline on earnest money that I constantly see is 1% of the total purchase price. I see 1% in so many contracts that it must be the norm in our residential market." Interestingly, Hudson also mentions, "option periods" or "free look periods", where he says that the buyer, "can walk the deal and be refunded their full earnest money are typically $10 a day (usually, a 10 day option period for $100)." That sounds like a great option for anyone truly looking for the try-then-buy factor. "I've been a broker focused solely on the sale of foreclosure and short sale properties", says Bulandr, who says that the Earnest Money guidelines are, "fairly rigid on cash offers for foreclosure properties. It's generally 10% (or higher) of the purchase price."

   As for the Earnest Money physical funds, Bulandr says that, "If a contract is being properly represented by the buyer's attorney, earnest money will be protected.", and that, "In most states, earnest money is held in a trust account that can only be released after agreement is reached by both parties. Thus, if in a non-financing situation, I would suggest as much earnest money as down payment, with a minimum of 10%." He says that, "Again, depending on the state, you can stipulate that Earnest Money can be held in an interest bearing account if its a significant amount. As for financed situations, he suggests, "less than $1,000, but frankly, depositing Earnest Money up to the amount of the down payment is suggested."

   As you can see, there are many determining factors for Earnest Money. In part 2, we will be discussing some basic guidelines and rules for down payments. Thoughts? Questions?

Have a Great Day, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

TAGS: #earnestmoney #realestate #foreclosure #shortsales