Distressed Property Sales Up Over Prior Quarter

Posted on May 19, 2011 by admin

Distressed properties in the first quarter sold at a pace 8.3 percent higher than during the previous quarter.  A recent study by the National Association of Realtors reported that previously owned homes sold at the annual rate of 5.14 million units during the first quarter of 2011, an impressive 8.3 percent growth quarter-over-quarter.

Sales of distressed properties (REO and Short Sales) as a percentage of total market sales grew from 36 percent the prior year to 39 percent by quarter’s end.  The trend was recorded in 49 of 50 states and includes the District of Columbia.  The State of Vermont was the “outlier” with a reported 7.1 percent decline in sales of existing homes.

Average home prices declined from $166,400 in Q1 of 2010, to $158,700 in Q1 of 2011. The 4.6 percent price decline has sparked an uptick in sales.

The mix of home buyers included these categories:  repeat buyers, 47 percent; first-time home buyers, 32 percent; and investors, 21 percent.  The presence of “cash purchasers” grew from 27 percent to 33 percent quarter-over-quarter.

Check out these details and compare national trends to those in your marketplace.

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Fannie Mae’s Energy Improvement Program

Posted on May 11, 2011 by admin

While it’s no secret that gas prices have escalated, less has been said about escalating housing costs in the form of high utility bills.  If you have wished for a way to reduce monthly energy bills — a new Fannie Mae energy improvement mortgage add-on program may be the answer you’ve been looking for.

Fannie Mae’s new energy improvement feature can be used to make energy improvements to existing homes. For qualified applicants, instead of offering a separate loan/mortgage for energy upgrades or retrofits alone, Fannie Mae’s new program  feature allows the upgrade of an existing home through a purchase or re-finance mortgage at current interest rates. It alleviates the need for two separate mortgages/loans.  The principal can be repaid with the energy savings generated by the improvements.

It folds the cost of the improvements capped at up to 10 percent of the estimated market value of the home– following the energy efficiency enhancements—into the mortgage amount itself. The new program is available through participating lenders across the country.  The program requires an energy audit by a certified Home Energy Rating Systems (HERS) specialist.  The audit is to ensure that the proposed energy upgrades are legitimate and truly cost-justifiable.

The features of the new Fannie Mae product are:

The financing of energy improvements found by a RESNET Home Energy Rating to be cost-effective of up to 10% of the as-completed appraisal.  This amount is subject to standard Fannie Mae LTV, CLV and HCLTV ratios.

  • The cost of the home energy rating can be included as the cost of the energy improvements.
  • Appraisers will be responsible to determine the as-completed value of the home based upon the energy improvements that were made.
  • Appraisers will also be responsible for verification that the energy improvements being financed were completed.
  • Only single family homes qualify.
  • Manufactured houses and cooperative units are not eligible.

For complete details check out the links below:

Fannie Mae Energy Improvement Feature

Fannie Mae Adopts Energy Improvement Mortgage

Energy Codes

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The Most Affordable Homes in America: Top 10 Bargain Cities for Home Buyers

Posted on May 4, 2011 by admin

Click the picture for more information on our featured great value property!

You have no doubt heard it said that cities with the fastest price appreciation are now the cities with the greatest deflation in home prices.  This holds true for many of the cities in the list below.  For example, Atlanta, Ga., “led the nation in new construction during the 10- year run-up before the bubble burst;” according to a recently released report by Deutsche Bank.  Atlanta now has the “most affordable homes in America.”


Huge Advantage to Purchase vs. Rent

The study shows Atlantans who rent are now paying 151% more per month than they could be paying if they purchased the equivalent property.  The median home price in Atlanta declined by 33% during the 2006-2010 housing crisis.  February 2011 sales indicate an additional 14% price drop versus the previous year.

Top 10 Best Cities For Homebuyers

  1. Atlanta, GA
  2. Orlando, FL
  3. Rochester, NY
  4. Cleveland, OH
  5. Tampa-St. Petersburg, FL
  6. Las Vegas, NV
  7. Jacksonville, FL
  8. St. Louis, MO
  9. Buffalo, NY
  10. Memphis, TN

Quality Report

There are many “Top 10” reports that leave us scratching our heads, but this report provides thorough documentation regarding how each city earned its spot on the list.  It also assesses how much money is being “left on the table” by those who choose to ‘rent versus buy’ in each market.  This is a great time to ensure the rent-versus-buy statistics are part of our marketing efforts.

Click here for the details regarding the reason for each city’s inclusion.

Added Incentive

Brokers and owner occupant buyers should visit www.homepath.com for details on the 3.5% home buyer incentive from Fannie Mae.  It’s nationwide.  Check the details to see if your dream home purchase qualifies.

Visit our website for more information about buying and selling homes of every style, size and price range.

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Buyer Incentives for Fannie Mae Properties Nationwide!

Posted on April 27, 2011 by admin

‘Owner occupant’ buyers from coast to coast can earn an incentive on eligible Fannie Mae transactions which close on or before June 30, 2011.

This means that Brokers and Agents can accelerate the spring selling season by introducing prospective buyers to a spring buying advantage of up to 3.5% in closing cost assistance for eligible transactions.

The incentive applies to primary residences of “owner occupant” purchasers which meet specific criteria.  The incentive period applies to qualifying sales with offers submitted on or after April 11, 2011. All qualifying sales must close on or before June 30, 2011. (No exceptions)

Selling Agent SPECIAL INFO

If you are a Selling Agent who practices real estate in Arizona, California, Texas or Washington please immediately visit BidSelect.com and review the “disclaimers section” at the bottom of the property information page for properties in your state.

AFFORDABILITY BOOST

These new tools make properties even more affordable for qualifying buyers. Brokers now have more reasons to spring forward in “Getting America’s Homeownership Back on the Road”.

For full details on these exciting incentives, click here.

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HUD Launches National Fair Housing Month

Posted on April 21, 2011 by admin

The Housing Agency has announced National Fair Housing Month, a national media campaign with the theme of fair housing rights and responsibilities. Throughout the month of April the agency will engage in a series of community dialogues on a range of related topics.

Recently 108 nonprofits and fair housing agencies were awarded $41 million to educate the public and to work to prevent housing discrimination in mortgage lending, rental and sales practices. Many of the agencies will “test” real estate related professionals and/or landlords to insure that their business practices meet mandatory standards.  Others will investigate housing complaints and educate the public.

The education of immigrants and society in general is a major goal.  HUD conducted its first “Immigrant Housing Conference” in Omaha, Nebraska on April 14th.

The “Live Free” campaign will begin with print media. The goal of the campaign is to emphasize the importance of ensuring fair treatment of those in “protected classes.”  This year’s focus will be the prevention of discriminatory practices based on “national origin.”

Neighborhood listing brokers, this would be an excellent time for real estate professionals on your team to huddle to ensure that all team members are current and in compliance with  Fair Housing legislation as it relates to the practice of real estate. It’s central to best practices, it is good for business and it is the law.

Read more about grant awardees and their specialty functions and this month’s “Live Free” campaign.

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10 “Hot Markets” for Buying and Investing in 2011

Posted on April 15, 2011 by admin

There are ten hot markets for buying that might surprise you, and if you are thinking about buying, you should give these markets some serious consideration.

Inman News recently took a comprehensive look at market performance across the nation.  They worked with other research firms to compile a series of reports on residential real estate. One of the featured sections was a report—produced by RealtyTrac. It spotlighted their ‘picks’ for the “Top 10 U.S. Markets for Buying and Investing in 2011.”

The RealtyTrac methodology reviewed the nation’s largest 100 metropolitan statistical areas. Analysts filtered out the top 25 cities based on 10 key performance metrics.  The cities which showed up most frequently in multiple categories– made the final cut. The defining categories included foreclosure rates, unemployment rates, and average sales prices, among other variables.  For complete methodology details click on the link below.

According to the report, the “Top 10 markets for buying and investing in 2011” are:

  1. Akron, OH
  2. Rochester, NY
  3. Buffalo, NY
  4. Cleveland, OH
  5. Portland, ME
  6. Milwaukee, WI
  7. San Jose, CA
  8. Memphis, TN
  9. San Diego, CA
  10. Durham, NC

There are comparable “Top 10 reports” with different outcomes.  It’s important to review ranking criteria, methodology and timeframe when comparing lists. The Inman News compilation was posted Friday, March 11, 2011.  Consult with real estate professionals for answers that fit your objectives and your needs.

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House Sharing: The Next Golden Opportunity

Posted on April 8, 2011 by admin

There is a recent phenomenon in the real estate market known as house sharing or the “Real Life Golden Girls” trend.  Older men and women are choosing to make the most of their retirement by selling their individual properties by purchasing and living together in a common home.  This trend has gained a lot of recent attention on television and in print as sources such as The Early Show, the New York Times, and Smart Money have weighed in on the subject.

According to The Early Show reporter, Michelle Miller, there are now more than 1 million women who have chosen to share a home with non-relatives.  This marks a 15% jump in the last few years.  They are a part of the Baby Boom generation who has decided to re-define their “golden years.” They engage in things such as Tai Chi, Yoga, travel, and healthy cuisine.  They hire housekeepers and lawn maintenance staff to handle the chores, while they make it a point to enjoy life.

In October, the New York Times reported on a group of eight women in Saratoga Springs, New York that had sold their respective homes and purchased a home with enough space for each to have private space which includes a bedroom, study and a bathroom.  The living room, family room, kitchen and laundry are common spaces.  The common trend is for such groups to typically purchase large single story properties in stable neighborhoods with a sense of community.

On March 9th, Smart Money weighed in on the house sharing trend with an article entitled “The New Golden Girls.”  The article explains that the trend has ignited a “cottage industry” of specialists that cater to “golden girl or guy” housing preferences.  Economic and demographic pressures continue to fuel the phenomenon.  “Experts predict the ranks of older women living together will unquestionably multiply in years to come,” reports Ken Dychtwald, Gerontologist.

This concept creates a new house share market that demands to be noticed. How active is this trend in your market place? How will traditional Real Estate Brokerages add value to this growing segment?

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Thank You – You Voted and We Won

Posted on April 1, 2011 by admin

In mid-February, First Preston Management invited the public to help them decide how to give away $23,000 in honor of their 23rd birthday.

They chose three non-profit organizations and decided that the money would be distributed in accordance with the number of online votes placed for each institution.
We were just informed that Freedom from Hunger received 74% of the votes for First Preston Management’s donation challenge — which means that we won $17,020!

Thank you so much to everybody who voted! Your participation has helped us empower more women and families around the world.

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Vendor Opportunities with First Preston

Posted on March 18, 2011 by admin

We’re excited to announce that First Preston’s FSM property management teams are in full operation and have vendor opportunities in key states.

The regional team managing services on HUD’s inventory in Iowa, Minnesota, Montana, North Dakota, Nebraska, South Dakota, Wyoming and Wisconsin Idaho, Nevada and Arizona is seeking property management vendors interested in providing the following services.  Potential vendors click here to go to our “Property Management Opportunities” page for further details.

  • Home Inspections
  • Fence Repair
  • Debris Removal
  • Property Cleaning
  • Graffiti Removal
  • Septic/Well Inspections
  • Property Preservation
  • Interior/Exterior Painting
  • Roof Repair
  • Plumbing/Heating Repair
  • Window Replacement Repair
  • Drywall Repair
  • Paint Repair
  • Carpet Replacement
  • Counter Top Installation
  • Pest Control
  • Termite Inspection
  • Tree Removal
  • Snow Removal
  • Winterization
  • Electrical Repairs
  • Emergency Boarding
  • Environmental Testing
  • Environmental Remediation
  • Lawn Maintenance
  • Termite Treatment
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Broker Joe Ard Supports Homes For Our Troops

Posted on March 11, 2011 by admin

During our 23rd Birthday Celebration First Preston discovered a Neighborhood Listing Broker with a heart for ‘Homes for Our Troops’. Broker and Founder of Vestlet Realty, LLC, Joe Ard, is also a retired Lieutenant Colonel. Joe served 21 years in the U.S. Army before starting his real estate career. As a man of many interests, Joe has an undergraduate degree in Civil Engineering and a graduate degree in Software Design. Joe excelled in real estate sales.  In 2008 he founded Vestlet Realty. The rest as they say is history.

Joe not only voted to support the ‘Homes for Our Troops’ organization. He also made a generous contribution of $1,000 as a way of demonstrating his support for those injured on the field of service.

Joe’s ‘right arm’ in the business (pictured with red shirt in photo) is former Armor Officer, Rich Blenz, a graduate of the U.S. Military Academy at West Point. Rich was also Vestlet Realty’s Top Agent in 2008 and 2009.

In service and in business Vestlet Realty embraces the slogan, “Be All That You Can Be”. We are grateful to Joe for his service and for his support of the ‘Homes for Our Troops’ organization.

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