Mortage rates fell below the the five percent mark after rising for the past three weeks. The expectation is that rates will rise above six percent in the near future. So the current drop is seen as a window of opportunity for buyers who want to lock in a rate at near record lows. The likelihood of rates continuing their fall is very slim given the recovering economy.

Ki Gray blogs about mortgage rates falling below five percent:

“After rising steadily for the last three weeks, mortgage rates fell back down. The 30-year rate fell from 5.03 to 4.98. The 15-year rate fell from 4.46 to 4.40. The 5- and 1-year arm fell from 4.42 to 4.35 and 4.57 to 4.47 respectively. This looks like more of a hiccup as mortgage rates steadily start there rise.

At this point, the overwhelming consensus is that mortgage rates are going to rise in the next six months. But the lowered rates do provide an opportunity for potential homeowners to lock in rates at sub 5.00 rates.”

Potential buyers who have been waiting to apply for a mortgage should not wait any longer. Not only are rates primed to rise but, as Gray points out, lending guidlines have created a lot of issues with getting a loan. Get in the door before rates rise and prices start to stabilize.

Click through to read Ki Gray’s full post.

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How long does escrow usually take when paying cash on an empty property?

–Lynn

In a cash transaction, an escrow can close in as few as 15-20 days. It’s preferably a little longer, though, to make sure there is time to do any inspections you would like to have done.

Occasionally, such inspections result in additional negotiating that needs to be done.

Bob Phillips is a REALTOR® for Realty Executives in the South Orange County, CA area.

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Real estate is unique in its ability to recover the money you put into it. Adding upgrades to a car can make it more attractive to sellers, but only with a house does the investment help pay for itself. This is especially important in today’s market where inventory is high and homes are aggressively priced.

Maria Ashby blogs about whether to sell “as is” or upgrade a home before putting it on the market:

“As to the question of whether to renovate and repair or sell ‘as is,’the answer in my opinion all depends on the situation of the seller. If the seller is looking for and has the ability to wait out a buyer who is willing to pay top dollar, then making judicious improvements is an excellent idea. A home with the most looked for improvements certainly sells faster and for more money.

Those improvements would include newer appliances, newer bathroom fixtures, counter tops, cabinets, solid surface counters in the kitchen as well as nice cabinetry, and is well maintained inside and out. Any homeowner who can afford to do repairs is advised to always do so. Buyers of all price ranges want to see homes for the most part that do not need a lot of repair issues.”

Sellers with a home on the market for several months are likely to start dropping the price to stay competitive and attract buyers. But with prices so low already, it’s likely that buyers are looking for a home that has the upgrades they want for the right price. Ashby’s advice to spiff up a house and price aggressively is a combination that will surely attract buyers.

Click through to read Maria Ashby’s full post.

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We made an offer on a foreclosure home, and our offer was accepted . We signed the contract for sale of the house and went ahead with the inspection within the period that was specified by the bank. The option period almost up and now we are told that the title is not clear because the prior owners have a federal tax lien and therefore have 120 days right of redemption, hence the property cannot be sold to us. Now we have spent money on the inspection, have taken out time of our busy schedules for all the formalities that are involved during buying the house and also the $8,000  tax credit, which would have been applicable to us as first-time home buyers. It seems like we are in a losing position at all fronts. Please advice as to who is liable for our loss and how do we recover our inspection costs and from whom?

 -Ameeta

 I am sorry to hear of your situation. As an agent who primarily lists and sells bank-owned properties, I appreciate your frustration. Unfortunately, I am unable to give you legal advice. However, I would suggest that the first person you contact is the listing agent and ask them about billing the bank (seller) for the inspection. It seems to me that the bank should have done at least preliminary title work and discovered the lien. Perhaps a better solution would be to contact an attorney.

Please don’t let this one bad experience keep you from purchasing a home. This is a great market for buyers right now and we just can’t say when it will be like this again.

Bob Stahl is a REALTOR® at Keller Williams Arizona Realty in Phoenix, Az.

The $8,000 home buyer tax credit has kept potential buyers on the edge of their seats all week as it passed through the Senate on Monday, then the House on Wednesday. It has been officially extended and expanded, as President Obama has now signed it into law. The extension is only until April of 2010 but that’s still enough time for first-time buyers to close on their dream home. The expanded tax credit also includes current homeowners as well.

Jim Starwalt blogs about the extended tax credit:

“November 6, 2009: President Obama has signed into law today the bill that has extended and expanded the home buyer tax credit.Congress passed a bipartisan measure this week extending the $8,000 home buyer tax credit to April 30, 2010.

Additionally, more buyers are now eligible to take advantage of the home buyer tax credit, which includes a $6,500 tax credit for buyers who are current home owners and have lived in their home for five of the past eight years.”

The tax credit has helped give the economy a boost by raising home sales. The hope is that this year’s sales momentum will continue into next year. With the extension and expansion finally a reality, all of the would-be buyers who thought they had missed their opportunity to get a great deal in real estate can get back to their home searches.

Click through toread Jim Stalwart’s full post.

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Should a buyer deal directly with the seller’s agent or is it in the best interest of the buyer to use a MLS listing agent in the same area? Will the seller’s agent be helpful or hinder you from a great sale price?

–Judy

I would say that it is probably in your best interest to use a buyer’s agent, or as you put it, another listing agent in the same area.

As REALTORS®, we are held to a standard that says our fiduciary duties to buyers include loyalty, obedience, disclosure, confidentiality and accounting. The problem is that the same requirements face a Realtor who is representing a seller. So by using your new home’s selling agent to represent both you and the seller, there is an inherent conflict of interest.

In fact in my business, I prefer NOT to represent both sides just for this reason. Now, many others in my industry will say I am foolish because of the amount of money I could make on a transaction. But for me, it is really about the client and making sure that client gets the best deal possible. In this case, your best deal probably comes from using an agent who only represents you and not someone who is also representing the seller.

Bob Stahl is a REALTOR® at Keller Williams Arizona Realty in Phoenix, Az.

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The REALTOR.com® Blogs team is proud to present our first Facebook application: dreamhomes by REALTOR.com®. We hope you will enjoy it as much as we do.

We also rolled out our official Realtor.com fan page on Facebook this week and look forward to connecting with you on Facebook.  The Real Estate Trends section of the fan page provides fun information such as the top 10 most expensive homes, the most searched listings, and the most popular cities on Realtor.com.

The dreamhomes application will provide fans with entertaining lifestyle themes and allow you to choose and share your favorite homes in categories such as celebrity listings, mountain/ski homes, beach homes and more.    

Thank you in advance for using and sharing the new application.  We look forward to seeing your top five dream homes! Feedback and suggestions can be sent to facebook@realtor.com.

–Audie Chamberlain, REALTOR.com®

The popularity of foreclosures and short sales has demanded that REALTORS® learn how to work with banks to close on a home. Some Realtors are having success with the banks after learning how the system works and making contacts. But most are finding the lengthy  foreclosure process to be frustrating due to the mishandling of paperwork by unqualified bank representatives. Thankfully, one of the biggest holders of foreclosure properties has decided to update their foreclosure filing process.

Scott Carrier posts an article from ReoTrans.com that talk about the new process:

“I received this article today from ReoTrans.com concerning B of A finding a way to process short sales quicker! Foreclosures are processed through sites like ReoTrans.com to speed things along. Hopefully it will do the same for short sales.

A representative from B of A recently told the paper that they were using the Equator platform to manage the short sale process. ‘This is the first time that short sales have been handled through an electronic platform,’ said Equator CEO Chris Saitta. ‘With our new system, everyone works together in real time, dramatically improving communication and approval timelines for our client, its borrowers, vendors, and real estate agents.’”

For Realtors who are tired of sending and resending documents only to find out they were lost or never filed, an electronic system that updates in real time is like a dream come true. With a new, streamlined system, hopefully more Realtors can get into the foreclosure market.

Click through to read Scott Carrier’s full post.

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The popularity of foreclosures and short sales has demanded that REALTORS® learn how to work with banks to close on a home. Some Realtors are having success with the banks after learning how the system works and making contacts. But most are finding the lengthy  foreclosure process to be frustrating due to the mishandling of paperwork by unqualified bank representatives. Thankfully, one of the biggest holders of foreclosure properties has decided to update their foreclosure filing process.

Scott Carrier posts an article from ReoTrans.com that talk about the new process:

“I received this article today from ReoTrans.com concerning B of A finding a way to process short sales quicker! Foreclosures are processed through sites like ReoTrans.com to speed things along. Hopefully it will do the same for short sales.

A representative from B of A recently told the paper that they were using the Equator platform to manage the short sale process. ‘This is the first time that short sales have been handled through an electronic platform,’ said Equator CEO Chris Saitta. ‘With our new system, everyone works together in real time, dramatically improving communication and approval timelines for our client, its borrowers, vendors, and real estate agents.’”

For Realtors who are tired of sending and resending documents only to find out they were lost or never filed, an electronic system that updates in real time is like a dream come true. With a new, streamlined system, hopefully more Realtors can get into the foreclosure market.

Click through to read Scott Carrier’s full post.

Sign up for a free Featured Blog on Realtor.com today.

We currently have our home listed for sale. Is it reasonable to expect our listing agent to actually market the home? He placed a sign out front. The house is listed on appropriate web pages. There was a broker’s open house two months ago which the listing agent did not attend, nor did his wife whose name is on the sign. Understanding that it is a buyer’s market and that our home is in the upper end of the local market, is the situation actually so hopeless that it is worth no effort?

Since I am not privy to what you and your agent discussed and what specifically he promised to do, all I can do is tell you what I would do for my clients, regardless of the market, the price of their home or whether it’s a buyer’s or seller’s market.

All of my sellers receive the following from me:

• I take the maximum allowed photos to be used on my local MLS website and then take even more for all other websites that I use to market my listings. What your agent may consider appropriate websites is not what I may consider appropriate. I propagate my listings to over 40 websites where potential home buyers may be looking.
• Every listing I have is a Featured Listing at REALTOR.com®.
• I also offer clients the option of having a video tour, a visual tour (slide show with music) and I do interactive floor plans.
• I do an open house every other weekend for the first 90 days and then more as needed – each listing is different
• I do a regular Marketing Activity Report which details what I am doing to market the listing, review of showings, a general overview of the market and suggestions for the upcoming weeks to improve chances of success.
• I do custom DVDs, flyers, etc. so that the potential buyer has something to take away from the house that will promote all of its best features.
• I use text messaging and FM broadcasts at the curb to make sure the potential buyer driving by the listing can get information even if the flyer box is empty.

I could go on and on with the things I do to insure that my listings have the best chance for a quick sale at the best price possible. It’s not always easy and sometimes it takes way longer than a seller would like for it to. But without all of the things that I and other Realtors do to promote our listings, we would be in a bad position due to this being a buyer’s market. With so much competition and the pressure to do a deal below the asking price, I want to make sure I’ve positioned/marketed my listings in such a way that they will be seen by as many potential buyers as possible and that they will compare very well against their competition.

It sounds like you need a new agent. Look at the websites of ones you might consider. See what tools they use to market their listings. How well do they communicate with their clients? That’s key.

Tim McBrayer is a licensed Realtor in the Triangle specializing in North Raleigh, North Carolina Real Estate. He is an Eco Broker and serves on the Green Builders of the Triangle education committee.

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