Gene Perez Your Real Estate Consultant, Santa Maria Homes: January 2012

It’s not often that I am asked the question, “What is the real estate ‘absorption’ rate?”  But, occasionally the question will arise.   The question is one sometimes asked by folks interested in buying or selling real estate; or for those simply interested in current market condition.  The term, “real estate absorption rate” is used to help predict the housing market.

The general public sometimes hears the label used via the media, but they don’t often have the data to translate it into meaningful information.  The real estate absorption rate helps the public more accurately determine whether it is a buyer’s or seller’s housing market.   In a “Normal Market” the absorption rate is between 5 and 6 months.  In a “Buyers Market” the absorption rate is higher (7+ months).  But in a “Sellers Market” the absorption rate is lower (1-4 months).   A clearer definition of real estate absorption rate is to ascertain the number of months it will take to sell all homes currently on the market.  If the inventory of homes presently on the market is a 12 month supply, it would mean at the current rate of sales, the market would need 12 months to clear the inventory, IF no additional homes came on to the market.   Being aware of the real estate absorption rate assists in creating perspective for homebuyers and sellers.  It educates sellers so they can have realistic expectations about pricing their home for the market.  By being competitive in price, they improve their odds of having their home sell quickly.  Sometimes while making an offers on homes, buyers will use the absorption rate to obtain a lower price during negotiation.   It should be remembered however, that outside influences may dramatically affect the predictability of real estate absorption rate.  For example, government policies and programs can either stimulate or wither the marketplace.   An improved job market would have a significantly positive effect on the economy, which could spur buying and quickly clear out housing inventory and change the absorption rate picture.  It is important that serious homebuyers and sellers understand their local real estate market, and trends for their area, in order to make informed decisions regarding their real estate needs.

 

Real Living Great West Real Estate
(916) 635-0420
http://www.myrljeffcoat.com

 

 

How To Prepare for a Home Appraisal

You’ve just signed all of the paperwork for your refinance, handed the loan officer the check for the appraisal, and now you’re wondering what is going to happen next. Good news-the appraisal inspection is painless, and usually takes anywhere from 30-60 minutes to complete. However, there are a few things that you should do to help the process move along as smooth as possible.

Preparing for the appraisal inspection:

• Create a detailed list of the recent improvements, which should include the following: when completed, cost of the improvement, before and after pictures if available.
• Make sure each room is accessible; the appraiser is required to inspect each room.
• If there is a crawl space, this area will also have to be made accessible for inspection for an FHA appraisal.
• Give the appraiser room to do their job. Errors are more likely to occur when the appraiser isn’t able to concentrate on their inspection.

• Keep all pets restrained. I’ve been bitten twice by a dog, and once by a cat; the owners had assured me that their pets were friendly-not so much!
• If you live within a development that has a homeowners association, have the name and phone number of the contact person available, along with a fee statement.
• If the appraisal is for an FHA loan, then the area leading to the attic will have to be cleared and made accessible-the appraiser is required to make at least a head and shoulders inspection of the attic area.
• Walk through each room and straighten up as if you were getting ready for company to visit. Appraisers are objective and can look past many things, however, the underwriter reviewing the appraisal photos may feel differently.
• Complete any unfinished projects-most appraisals are done “as is”, and any projects that haven’t been completed, will have to be adjusted for within the appraisal report.
• A copy of any agreements regarding easements (shared driveways and/or garages,etc.) should be made available.

Concerns about value:

For years I’ve been a big proponent of developing a relationship with a Realtor. I’m not talking about a real estate agent who happens to be a relative that lives half way across the state. I’m talking about one that does a lot of work within your neighborhood.

By building a relationship with a professional Realtor (this is all they do and they do it well), they’ll be able to give you great insight as to what’s happening within your neighborhood, and they would be glad to let you know what similar homes are selling for.

 

Once the appraisal is complete:

You have a right to a copy of your appraisal, so ask for it. If you should find any errors or have any concerns, talk with your loan originator. This is hard for borrowers to understand, being that they paid for the appraisal, but the mortgage company is the appraiser’s client, and they can’t discuss the appraisal with anyone else unless given permission.

Trying to understand an appraisal can be like trying to read the “Dead Sea Scrolls,” so ask questions and get clarification when needed-you paid for it!

If you have any questions, or Minnesota real estate appraisal needs (divorce, bankruptcy, tax appeal, or estate planning) please contact Michael at 612.599-2581, or use the form on the contact page.

"An optimist stays up until midnight to see the new year in. A pessimist stays up to make sure the old year leaves."~ Bill Vaughan ~


Were you excited to see the old year end or were you excited to start the new? Which one are you, the pessimist or optimist?

Not everyone regards a new year as a new beginning. For some, it is just the continuation of time with the same habits and same day-to-day pattern. For others - me included - January 1st is always a fresh start. I don't toss everything aside and start over - that is not the point. It is, however, the chance to start with a blank page, to set new goals and to learn how to achieve them best!

January is just a great opportunity to reflect on the past. I am big on visualization and always write down my goals beginning of each year: personal and professional. I don't make promises I know I can't keep but I set realistic goals. Those don't need to be monstrous achievements - I don't say: I want to lose 50 lbs this year. Instead, I say I want to get into better shape and I'll accomplish this by working out twice a week and incorporate the little stuff on a daily basis, e.g. park further away from the store and walk, take the stairs instead of the elevator etc.. I don't say I want to eliminate all our debt (although that is a nice thought) but instead focus on not incurring new debt by paying off credit cards as soon as the bill hits my inbox.

Personally, I follow these 5 basic rules on goal-setting:

1. be realistic
2. write them down
3. revisit goals on regular basis and reassess
4. celebrate progress along the way
5. don't beat yourself up if you don't accomplish it all

Each rule carries the same importance, one without the others will make it harder to reach your goals. While I've always written down my goals, I had to work hard on the last one. I no longer obsess about the goals I did not accomplish one year but instead analyze what I missed and what I could do better and use that knowledge to fill my blank pages! My friend Mike Cooper wrote a great blog about that very thought: Turn Setbacks Into Springboards. It is a great read, very inspiring and motivational.

The start of a new year is always exciting to me! There is so much hope for a better tomorrow and the promise of new opportunities. I choose to be an optimist - I stayed up to see the new year in!


"We will open the book. Its pages are blank. We are going to put words on them ourselves. The book is called "Opportunity" and its first chapter is New Year's Day!"

~ Edith Lovejoy Pierce ~


Which one are you, the pessimist or optimist?

ANDREA BEDARD, M.A. ~ THOMPSON COMPANY, REALTORS ~ LIVING MARYLAND BLIPS

Thompson Company, Realtors 15711 New Hamphsire Ave Silver Spring, MD 20905 o: (301) 384-9177 c: (240)593-2860 andreabedard@mris.com Military Real Estate in MD Maryland Home Search Andrea is a proud military spouse, mom of two beautiful little girls, hobby decorator and a Realtor® based in Silver Spring, MD. Andrea focuses on Montgomery County and Howard County Real Estate, she enjoys everything beautiful in life and always answers the phone with a smile. All photographs are my own and I'd like to keep it that way. All information is deemed reliable but not guaranteed.