Monday, September 29, 2008
Thursday, September 25, 2008
The Million Dollar Question!
Timing the Market
I hear many buyers say, "I want to wait until the market hits bottom before I buy." My question is, "At what point do you know exactly when a market has hit bottom?" When it starts to go back UP is the answer. That's the mistake most uneducated buyers make for any market - housing, stocks, etc. Most uneducated stock buyers who want to be investors try this strategy. They wait to buy until it "bottoms out" and as the stock is dropping suddenly it turns and starts to go up again - they panic and buy. Then they want to wait until it "peaks" to sell. They watch and watch, up and down. Then down, then down some more, then the thought "Ok I think it peaked - I'll sell." Don't make much money that way.
The only way to know a market has bottomed out is when it starts to rise again over a sustained amount of time. Given the slowness of real estate vs. stocks it's much more dangerous to try this game in real estate. The reports you'll see about the real estate market for September 2008 will be out around October 15th. Those reports are based on closings in August, which are based on contracts written in June or July, which are based on buyers looking at houses in May or June, which were priced based on houses sold between December 07 and May 08. Can you see where I'm going with this? By the time your newspaper tells you the market has started to increase, it will have really started 3-5 months ago and you still need 1-2 months of looking and escrow. That's if you first catch the article then jump in with your agent and start right away. You'll have missed the best price.
You can't time a housing market. It isn't possible or smart. Real estate is the best long term investment in the history of our country. If you buy and stay (without refinancing) for a minimum of 7-10 years history shows you will always sell for higher than you bought so don't worry and go get a great deal out there.
I hear many buyers say, "I want to wait until the market hits bottom before I buy." My question is, "At what point do you know exactly when a market has hit bottom?" When it starts to go back UP is the answer. That's the mistake most uneducated buyers make for any market - housing, stocks, etc. Most uneducated stock buyers who want to be investors try this strategy. They wait to buy until it "bottoms out" and as the stock is dropping suddenly it turns and starts to go up again - they panic and buy. Then they want to wait until it "peaks" to sell. They watch and watch, up and down. Then down, then down some more, then the thought "Ok I think it peaked - I'll sell." Don't make much money that way.
The only way to know a market has bottomed out is when it starts to rise again over a sustained amount of time. Given the slowness of real estate vs. stocks it's much more dangerous to try this game in real estate. The reports you'll see about the real estate market for September 2008 will be out around October 15th. Those reports are based on closings in August, which are based on contracts written in June or July, which are based on buyers looking at houses in May or June, which were priced based on houses sold between December 07 and May 08. Can you see where I'm going with this? By the time your newspaper tells you the market has started to increase, it will have really started 3-5 months ago and you still need 1-2 months of looking and escrow. That's if you first catch the article then jump in with your agent and start right away. You'll have missed the best price.
You can't time a housing market. It isn't possible or smart. Real estate is the best long term investment in the history of our country. If you buy and stay (without refinancing) for a minimum of 7-10 years history shows you will always sell for higher than you bought so don't worry and go get a great deal out there.
10 Good Reasons To Buy A Home
10 Good Reasons To Buy A Home
1. Quality of Life
2. Pride of Home Ownership
3. Tax Deductibility of Mortgage Interest
4. Tax Deductibility of Property Taxes
5. Appreciation Potential
6. Deferred Gain and Capital Gain Treatment
7. Once in a Lifetime Exclusion
8.Principal Accumulation
9.Leverage: Where else can you buy an investment of this size with 5-10 percent down?
10.The Real Cost of Renting: At $700 per month, with a 6 percent rental increase per year, you will pay $110,719 over a 10-year period and have no ownership of the property.
1. Quality of Life
2. Pride of Home Ownership
3. Tax Deductibility of Mortgage Interest
4. Tax Deductibility of Property Taxes
5. Appreciation Potential
6. Deferred Gain and Capital Gain Treatment
7. Once in a Lifetime Exclusion
8.Principal Accumulation
9.Leverage: Where else can you buy an investment of this size with 5-10 percent down?
10.The Real Cost of Renting: At $700 per month, with a 6 percent rental increase per year, you will pay $110,719 over a 10-year period and have no ownership of the property.
Tuesday, September 23, 2008
Open House - Single Family
Join us on Sunday from 12-2 at 43 Pleasant Street, Grafton.
For more details please vist www.SandiandMichelle.com
Open House - Condo
Join us from 1-3 at 21 Azalea Lane, Grafton.
For more details visit www.SandiandMichelle.com
Thursday, September 11, 2008
September Special from Wells Fargo
We are offering a FREE 1 year buydown on 30 year fixed rate mortgages !
So for example, if the today's mortgage rate is 5.875%, with the free buydown the customers 1st year mortgage rate is 4.875 %, and then after 1 year it reverts back to 5.875% for the next 29 years. This savings can be enough to pay for the customers closing costs !!! On a $500,000 mortgage that's a savings of $311 per month or $3732 for the year !!
So what are the parameters ?
Mortgage amount between $417,000 and $523,000
20 % down
Primary Home
Purchase or rate and term refinance
Fred
Frederick A. Paine
Mortgage Consultant
Alliance Home Mortgage, LLC
An Affiliate Of Wells Fargo Home Mortgage
MAC M3738-011
77 Main Street
Hopkinton, MA 01748
Work - (508)435-3046
FAX - 774-759-3008
Cell - 617-899-7747
fred.paine@alliancehm.net
www.fredpaine.com
So for example, if the today's mortgage rate is 5.875%, with the free buydown the customers 1st year mortgage rate is 4.875 %, and then after 1 year it reverts back to 5.875% for the next 29 years. This savings can be enough to pay for the customers closing costs !!! On a $500,000 mortgage that's a savings of $311 per month or $3732 for the year !!
So what are the parameters ?
Mortgage amount between $417,000 and $523,000
20 % down
Primary Home
Purchase or rate and term refinance
Fred
Frederick A. Paine
Mortgage Consultant
Alliance Home Mortgage, LLC
An Affiliate Of Wells Fargo Home Mortgage
MAC M3738-011
77 Main Street
Hopkinton, MA 01748
Work - (508)435-3046
FAX - 774-759-3008
Cell - 617-899-7747
fred.paine@alliancehm.net
www.fredpaine.com
Tuesday, September 9, 2008
Rates are coming down!
Even better today from Wells Fargo:
30 year fixed , 30 day close, with 720 credit 25% down is 5.75% !!!!!
30 year fixed 60 day close, with 720 credit and 20 % down is 5.875% !!!!
It's time to get off the fence and buy. Yes, you may not get as much as you would like for your current home but you will more than make it up on the buying side. It is a buyer's market right now, so you can negotiate and get a great rate on a 30 year fixed at the same time. These rates are historic, don't let your dream home be too.
30 year fixed , 30 day close, with 720 credit 25% down is 5.75% !!!!!
30 year fixed 60 day close, with 720 credit and 20 % down is 5.875% !!!!
It's time to get off the fence and buy. Yes, you may not get as much as you would like for your current home but you will more than make it up on the buying side. It is a buyer's market right now, so you can negotiate and get a great rate on a 30 year fixed at the same time. These rates are historic, don't let your dream home be too.
Monday, September 8, 2008
Great Rates!
Rates are really great !
30 year fixed , 30 day close, with 720 credit 25% down is 5.875% !!!!!
30 year fixed 60 day close, with 720 credit and 20 % down is 6% !!!!
30 year fixed , 30 day close, with 720 credit 25% down is 5.875% !!!!!
30 year fixed 60 day close, with 720 credit and 20 % down is 6% !!!!
It's All About Price
Wow! It happened again today. We received 3 offers, all over asking on a home that we had listed. What’s the secret? It was priced where the data told us it should be priced and the seller listened to the facts. Of course it would be easy if that was the end of the story but its not.
Did you know we're really in the middle of two different markets? One that you hear about in the news - slow, declining, too many houses on the market, buyers waiting to decide, etc. The other (that you don't hear about) where homes sell in one week with multiple offers, and over listing price. You see, there are actually quite a few buyers out there in the market. They are just waiting for a great deal. Then as soon as one comes they all pounce on it! Everyone wants a deal! Buyer agents keep a list of Tier 1 properties that will sell this week (super fabulous deals), and Tier 2 properties that will sell in the next month. Everything else will be there for a long time so no urgency to see those. The Tier 1 properties are amazing. 10+ showings a day. It's two extremes. Think of it on a converging graph. When great condition meets below market price, you will sell for over asking. The poorer condition, the more below market you need to be. If condition is great, but you go to market value it might sell, but below asking and be ready to wait 6-9 months.
This part is really important! If your home is worth $320,000 and you list it for $325,000 you won't sell. If you list for $320,000, you have 14 days. If no offers in 14 days, be ready to sit a few months and guess what - it's not worth $320,000 by the end of that month. If you list for $305,000, you have 30 days and then same as above. You'll probably get offers for $295,000.If you list for $299,900, pack your bags, enjoy all the offers, sorry for so many showings all day, congratulations on selling for $305,000! Of course if you listed it for $305,000 you wouldn't have gotten it.
It may sound strange but it's supply and demand and it's happening right now every day. Supply something rare (a great condition home for an amazing price) and you will receive a huge demand.
Did you know we're really in the middle of two different markets? One that you hear about in the news - slow, declining, too many houses on the market, buyers waiting to decide, etc. The other (that you don't hear about) where homes sell in one week with multiple offers, and over listing price. You see, there are actually quite a few buyers out there in the market. They are just waiting for a great deal. Then as soon as one comes they all pounce on it! Everyone wants a deal! Buyer agents keep a list of Tier 1 properties that will sell this week (super fabulous deals), and Tier 2 properties that will sell in the next month. Everything else will be there for a long time so no urgency to see those. The Tier 1 properties are amazing. 10+ showings a day. It's two extremes. Think of it on a converging graph. When great condition meets below market price, you will sell for over asking. The poorer condition, the more below market you need to be. If condition is great, but you go to market value it might sell, but below asking and be ready to wait 6-9 months.
This part is really important! If your home is worth $320,000 and you list it for $325,000 you won't sell. If you list for $320,000, you have 14 days. If no offers in 14 days, be ready to sit a few months and guess what - it's not worth $320,000 by the end of that month. If you list for $305,000, you have 30 days and then same as above. You'll probably get offers for $295,000.If you list for $299,900, pack your bags, enjoy all the offers, sorry for so many showings all day, congratulations on selling for $305,000! Of course if you listed it for $305,000 you wouldn't have gotten it.
It may sound strange but it's supply and demand and it's happening right now every day. Supply something rare (a great condition home for an amazing price) and you will receive a huge demand.
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