Buyers and Sellers

REALTOR® News and Views                                      

The decision to sell your home is a big one, and hiring a REALTOR® to navigate the process is a step in the right direction and can save you both time and money. According to the National Association of REALTORS®, the median selling price of an open-market for-sale-by-owner home in 2012 was $191,600, while the median price for agent-assisted sales was $215,000*. Here are a few things you can expect from your REALTOR® as they work to expedite your sale: 

·         Market Analysis and pricing Proper pricing is key to selling your property in the fastest amount of time possible and for the highest dollar. REALTORS® know the local market and trends, and have access to the latest statistics and sales, which they will analyze to come up with a list price that will get your home sold.

·         Preparing your home for sale REALTORS® know what appeals to buyers, and can help guide you through the process to get your home in show condition and highlight the best features of your home –from rearranging rooms to paint color and curb appeal.

·         Marketing  In order to sell your home, you need to get buyers in the door, and a properly executed marketing plan is key. REALTORS® have access to the Multiple Listing System, as well as a multitude of other web sites that your listing will appear on. Be it an open house, internet or print advertising, MLS, or word of mouth, REALTORS® know how to expose your property to the broadest audience of buyers possible.

·         Showings Selling a home is a full-time job, and your REALTOR® will set up all showings and make sure buyers are qualified and evaluated before allowing them into your home.

·         Negotiating on your behalf Don’t underestimate the importance of having a strong negotiator on your side. Negotiating a contract is not all about price, and an experienced REALTOR® knows what to look for in an offer and what pitfalls to avoid.

·         Navigating the process Your REALTOR® will walk you through the steps from listing to closing, including the required disclosures, inspections, appraisals and title work, to ensure the process is smooth as possible getting to the closing table.

A lot of factors go into a successful home sale. Having a REALTOR® on your side can not only net more money, but can make the difference between a smooth deal and one that never gets to the closing table.

Brought to you by the Greater Portland Board of REALTORS®                                             Article submitted by Heather Horlor,REALTOR®      

* 2012 NAR Profile of Home Buyers and Sellers:                         

REALTOR® News & Views

 

Submitted by Marc Chadbourne, Broker OceanGate Realty 151 Newbury St.Portland, ME04101

 

 

Open House Tips

 

Are you planning to visit some Open Houses this weekend? Here are some tips from your local real estate professionals to help make the visit useful and comfortable.

 

Just walk in. You don't have to knock or ring the doorbell.

 

As a courtesy to the seller please sign in so they know how many attended the Open House.

 

If you are a serious buyer and already have an agent, tell the agent hosting the open house. In fact, when you sign in, write the name of your agent next to your name.

 

Don't apologize if you are not a serious buyer. It's okay to look and often times this is the early part of the process when deciding to buy or sell.

 

Wear shoes that can easily be removed and do so if the situation warrants.

 

Feel free to look in every nook, cranny and cupboard. Turn on faucets, open windows. But please return things just as you found them.

 

You don't have to like the house and constructive comments are welcomed but keep unkind comments to yourself. Sometimes the owner is in the house!

 

Bring a camera, chances are it is O.K. to take pictures but ask the listing agent for permission before you do.

 

Remember, you are not just buying a house you are buying into a neighborhood. Check out the surroundings. Ask yourself if the house — no matter how nice or great a price — is really in the area you want to live.

 

Ask away! Information concerning comparable home sales in the neighborhood, homeowner association dues, utility bills, the school district or anything else that is important to you. That is why we are here!

 

Brought to you by the Greater Portland Board of REALTORS®

Submitted by Marc Chadbourne, Broker Ocean Gate Realty 151 Newbury St. Portland, ME 04101

Affordability

Casey Hamlin
Reliant Mortgage Co
e-mail Casey


Affordability:  that you have the financial means for.

Even though home prices have been rising, the National Association of Realtors (NAR) said this past week that 2012 appears primed to set a record for housing affordability.  With 11 months of data in, NAR's Housing Affordability Index was at 198.2 in November, higher than in November 2011.  When December data is compiled, NAR projects that the housing affordability index for 2012 will be a record high 194, up from 186 from 2011, the previous record year. 

The index is based on the relationship between median home price, median family income, and average mortgage interest rate.  An index of 100 is the point where a household with a median income for the local area has exactly enough income to qualify for the purchase of a median-priced single family home in that area.  The assumptions are the buyer has a 20 percent down payment and that the resulting mortgage payment would not exceed 25 percent of gross income. The higher the index, the greater the household purchasing power and buyers with small down payments, typical of first-time buyers, would have relatively lower affordability levels than those with larger down payments. 

In computing the index NAR used a national median home price of $180,600 and median income of $61,758.  The principal and interest payment would be $649 which represents 12.6% of household income.  Now consider standard underwriting practices of the secondary market typically allow a buyer to pay up to 29% of the monthly gross income and you can see why home buying affordability is considered so high.

In the Northeast the median home price was $230,000 and income was $71,066 resulting in an index of 180.1, up from 178.4 in October.  The Midwest had the highest index at 250.7, up 0.5 from October, based on a home price of $143,100 and income of $61,732.  In the South the median home was priced at $161,300 and the income was $56,821 for an index of 204.8, down from 210.6.  The West had the lowest affordability index of all regions at 145.8, down from 147.2.  The median home price in the west was $251,200 and the median income was 63,527.

Lawrence Yun, NAR chief economist, said home buyers are able to stay well within their means by saying "although 2012 was highest on record, the excessively tight underwriting precluded many would-be homebuyers from locking-in generational low interest rates," he said.  "Rising home prices and a gradual uptrend in mortgage interest rates will offset improvements in family income, but 2013 likely will be the third best on record in terms of household buying power.  A window of opportunity remains open for buyers who can qualify for a mortgage." 

According to the national mortgage professional website, “For the entire 2012 calendar year, the 30-year fixed rate mortgage averaged 3.66 percent, the lowest annual average in at least 65 years.” Freddie Mac.com reported the difference between interest rates between 2012 and 2011 was around .79%.  Using the average price of $230,000 after putting down 20% the average buyer would be financing $184,000 making the average difference in payments $83/month translating into $996/year comparing 2011 to 2012 from an interest rate perspective.

 

NAR projects the housing affordability index to average 160 during 2013, which means on a national basis that a median-income family would have 160 percent of the income needed to purchase a median-priced existing single-family home. 

Association President Gary Thomas said the minor erosion in affordability conditions moving forward could be mitigated by bank and regulatory policies.  "Clearer rules from the government regarding future lawsuits and buybacks of Fannie and Freddie loans could encourage banks to use their massive cash holdings to originate more loans. A more sensible lending environment that makes it easier for other financially qualified buyers to get a mortgage would allow many more households to enter the market, boosting home sales as much as 10 to 15 percent," Thomas said.

Submitted by Casey Hamlin, Reliant Home Mortgage Company, LLC
Greater Portland Board Affiliate Member