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Buyers Market for Condos
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No Doc Mortgage Refinancing
No doc mortgages are ideal for self employed homeowners that have trouble documenting their income or even those that value their financial privacy. These mortgages are called stated income mortgages and require very little documentation for approval. Here are the basics of no doc mortgage refinancing to help you decide if a stated income mortgage is right for you.
Many self employed ho... Read mortgage refinance article
How to Stop Your Foreclosure
Statistics show that national foreclosure filings were up 72% in the first quarter of 2006. Clearly more and more homeowners are facing the possibility of losing their house as they struggle to stay current on their payments. Being in foreclosure is a scary situation - but with a little knowledge and a willingness to deal with the problem, you can stop your foreclosure.
The first thing ... Read mortgage refinance article
Buyers Market for Condos
According to the National Association of Realtors, the flourishing condominium market is no longer an advantage for sellers. It has become a buyer's market across the United States amidst declining sales and median prices. By year end June 2006, realtors have seen the supply of existing condos for sale increasing by almost two-thirds and sales falling by almost 15 percent across the nation. With investors making up about a third of condo ownership, it is expected that more condominiums will be put up for sale this year. According to the National Association of Home Builders, realtors also can expect an influx of new condo development over the next two years and increasing conversions of rental apartments to condos, adding to the over-availability in the condominium markets.
During the past real estate bubble, condos have appreciated at a faster rate than single-family homes, especially in high-cost metro markets with rapidly rising prices. Even last year ending June 2006, the national median price rose by nearly 14 percent. Realtors only expect an increase of three-to-four percent this year, as compared to six percent for single-family homes.
Currently, the national median price for a condo is $226,900, as compared to a single-family home at $231,500. This makes buying a condominium much more attractive, especially for empty nesters and young families. The realtor outlook for condo prices does vary by region. The Midwest is the best location with only a one-percent sales drop last year and a third of a percent drop in prices - this is within the Chicago and Minneapolis/St. Paul markets. Realtors would expect smaller Midwestern cities to be even better.
Realtors in the western part of the U.S. saw the biggest hit in the condominium market. Sales there last year were down by 21 percent, and there was an 11 percent drop in prices.
For August in the San Diego, Carlsbad and San Marcos area, the median condo price was $373,800, as compared to last year's price during August of $387,100. Realtors saw August sales decrease by 3.4 percent, as compared to an increase of 5.5 percent last year at this time.
With the onslaught of retiring baby-boomers, the condo market may see an upswing during the next five-to-ten years. The downside for some markets is that the increasing amount of natural disasters, such as hurricanes, may change the migratory pattern towards safer weather states.
Sellers
A declining condo market does not mean an owner cannot sell at this time. Realtors advise sellers to price the unit appropriately - more affordable condos still are selling well. Make it stand out over your competition by removing clutter and staging it well. Some sellers are throwing in amenities, such flat-screen televisions and state-of-the-art audio systems. Some are offering bonuses as incentives to the realtors who make the sales, motivating an increase in the number of showings. Realtors advise sellers to be prepared to negotiate with buyers and not to automatically turn down reasonable offers.
Buyers
Realtors see this as a good time to buy if you plan to own the property for at least three-to-five years. Realtors do advise that you look for condos that will hold their value over time for a better resale value. Look for units with a great view; close to downtown or shopping areas for lower gas usage; easy access to parking, public transportation, necessities and amenities; an elevator and spacious floor plans; garage parking in cold climates; and a doorman or concierge if in a luxury market. Realtors also advise that you take your time shopping for the right condominium. Visit the units you like more than once and drive a hard bargain.
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Home for Sale Offer Contingent Upon a CLUE Report
In most states, you purchase title insurance to ensure you are not also buying the responsibility for earlier liens against the property. In a finite few states, you pay to have an abstract search to do the same. The one thing most buyers of homes for sale never think of or do is to check the insurance claims history of potential homes for sale. This could be a crucial mistake.
Insurance companies share information with each other. They use the Comprehensive Loss Underwriting Exchange (CLUE), which is a huge database of information. CLUE holds the dates, type of loss, and amount paid on claims to previous owners of your potential homes for sale for the past five years. Information contained in CLUE could very well mean higher homeowners insurance premiums or no coverage at all for particular homes for sale.
For example, previous homes for sale water damage claims are red lights for insurers, because such problems eventually may lead to expensive claims of toxic mold. In California, alone, there have been substantial toxic mold claims over the past ten years. Some fairly new homes had to be completely demolished - very costly to those insurers. Historically, insurance companies have found that toxic mold damage is generally caused by previous water damage that was not adequately repaired. Therefore, when insurers see a previous water damage claim, they are apt to not decline coverage or cancel your policy within the first 60 days grace period for the insurer - even though the claims happened before you owned the homes for sale.
Water damage is only one of many damage claims insurers look for when underwriting your potential homes for sale. They will evaluate all of the homes for sale claims history to determine if the potential homes for sale is a disaster just waiting to happen.
Since current homeowners have a motive to present their homes for sale as perfect, it will not do much good to directly ask them about previous claims. Also, they may not know the history of the homes for sale before they purchased it. Unfortunately, only a homeowner may order a report from CLUE, called the Home Seller's Disclosure Report. An insurer will not order information from CLUE until you sign an insurance contract and it goes into underwriting, which you cannot do until you have signed a purchase contract for the homes for sale. You can, however, have your realtor put a contingency clause in any homes for sale offer you make that stipulates the sale may be cancelled if a negative CLUE report is received.
If you are a seller of a home for sale, getting a CLUE report before putting the property on the market is a good idea. As in any report, errors can be made (just think about all of the errors people find in their credit reports). Ordering a report early means you can catch any errors and get them corrected. A CLUE report can be ordered from ChoiceTrust.com, which also tells you how to correct report errors. Also, locate all of the receipts for repairs from all insurance claims you made, proving to the buyer's insurer that the problems no longer exist. For previous claims such as water damage, you may even pay for a pre-inspection to ensure the problem was adequately repaired and no future claim will result.
Finally, buyers should begin shopping for homeowners insurance immediately after signing the purchase contract. Not only is it required to be in place at closing by homes for sale lenders, but also there always is the chance you may be rejected by the first chosen insurer and will need time to find another insurer.
So, discuss with your realtor a contingency clause in any offer you make for a homes for sale before he/she begins showing you homes, and plan to begin looking for an insurer immediately after signing the purchase contract.
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Buyers Market for Condos
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