List vs Sold Prices on Homes

If you want to know how to set the price of your home when it is listed, watch this video: http://www.youtube.com/watch?v=H6Y_efQlWc4

PICK OF THE WEEK - Nov 16, 2010

If you'd like to see the house that I think is unique and well priced for this week, click: http://www.youtube.com/watch?v=ZtQNyOECuZU

If you'd like a great MLS search tool for the Central Coast, use the search engine below. Click "search" in the bottom right corner to change the search criteria.

Market Trends

Mortgage rates are low, but are predicted to rise. Though rates remain low, many economists expect mortgage rates to rise, especially now that the Federal government has pulled out of the mortgage game. If you have been waiting to buy, now is the time! Even if prices continue to go down, which they are expected to do, you will save a ton of money over the life of your loan with these low interest rates. Factor that in when deciding when to buy!

Why buy now

Interest rates are at a record low. When you consider the impact of interests rates on a person's ability to purchase a property, it is astounding. For example, a 1/2 pt increase on a $400K loan, gives you $25K less purchasing power. A point increase is $500K less...2 pts is 100K less. And it IS expected that interests rates will go up in the future months...they are so low now that the only real direction they CAN go is up!

Tax Credit Extended!

Congress has passed a bill extending the Homebuyer Tax Credit closing deadline to September 30, 2010. This is a huge win for home buyers. The extension applies only to transactions that had ratified contracts in place as of April 30, 2010, and have not yet closed. There will be no gap between June 30 and the date the President signs the bill into law. So, hang in there if you got an offer accepted before April 30th but haven't been able to get it closed yet! You can still get the credit!

The Lending Environment

I often get asked whether people are getting loans these days. The answer is yes, and no. Certainly, there are qualified buyers who are getting approval and actually getting loans. But sadly, there are an equal number of buyers who are TOLD they are approved, and then later get turned away. This is a sad development, because the buyers get their hopes up and get psychologically invested in buying a property, and then their dreams are squashed. Apparently, many lenders want to "throw everything against the wall and see what sticks." This is a terrible way of doing business, and very unfortunate for the entire real estate community. Make sure if you are looking for a lender to get one that is referred to you by your agent, a friend/family, or your bank. There's no guarantee that that will save you from hassles, but it is more likely to work out better with the referral.