HOME UPDATES THAT ADD VALUE

Sellers are not happy campers. The market is still slow and the values have declined. Once under contract, deals fall through because of inspections or appraisals. Being one who sees the glass as half full, I thought maybe I would share some thoughts on what to do to make your home more valuable. The first thing to do is to DeClutter. We all have too much junk in our homes and buyers expect to see pristine spaces like in a model home. Rent a storage space or fill up your garage even. Recycling is IN! Next change fixtures and hardware. I need to do this as my home is 14 years old and the hardware yells Old! Old! Upgrading sinks, shower heads and faucets with water conservation models has double value. Then replace your appliances. White is out; red washer and dryers are in; brushed stainless steel is definitely popular. With energy efficient models you get a tax writeoff and add instant value. Then spiff up the landscaping. Are those landscape rocks full off debris? Are the plants woody and overgrown. Take them out! Shrink your lawn and there you have another cost savings on water. I just did mine and love it. Clean it inside and outside. Many forget to dust or touch-up the eaves, clean windows, or reseal windows for more energy efficiency. Might as well invest in adding value and saving money while you wait for this market to pick up. Call me for a free valuation. Lots of people spend too much and do the wrong things in getting a house ready. Put me to work!

JULY HOME SALES LIKELY UP

While I haven't seen any statistics, it sure feels like there is alot of activity in the resale home market this month. July will be one of my biggest months for sales and for new listings. The first time homebuyers seem to have disappeared from the market and the buyers are looking in the $250,000 plus range. I even closed a million dollar listing this month albeit just below that mark after negotiations et al. Buyers are still going for the steal, but Sellers are definitely pushing back when they feel like their value is good. As prices begin to nudge up the appraisals are issues because the appraisers have to use recent comparable sales, so if those are low it is difficult to get a higher sale price. One wonders if they aren't going to keep values at the low end while they figure out how to reflect "willing buyer and willing sellers" at higher prices. No one wins when they keep prices unfairly low.

GREAT TIME TO BUY A HOME!

Now is the best time to buy in the last thirty years!!! And we are seeing more buyers. For one, the interest rates are in the mid-4% which is unheard of. The jumbo loans are back and even some equity lines to avoid the need to come up with 20% down. Secondly, there are some great houses at good prices. The Sellers who still have homes on the market have to sell so as we say are "motivated" to provide Buyers with good value. Those Sellers who don't have to sell are able to negotiate. And there are still some good Short Sales and Foreclosures for the Buyer who is not in a rush since those deals may take up to six months to close.
We are seeing more Buyer activity in all price ranges. ABQ and Rio Rancho's economic situation has stabilized and has even had some new job development which is raising everyone's confidence. Personally, I think the worst is over. We have hit bottom, are showing slight increases from that 50% drop in sales last year, and may even begin to see small appreciation on some homes. Life is good.

STRATEGIC FORECLOSURES ON RISE

"Strategic" mortgage defaults (people who "walk away" from a mortgage they can afford to pay) are on the rise.This week FOX News did an interview with the CEO of HomeFlux and 1-800-CashOffer on the rise of strategic defaults, and how many of the people we talk to each month are considering it as an option. Most people doing "strategic" defaults would be much better off selling their home via a short sale through an experienced real estate agent. The banks are in much better position to expedite and approve short sales now. We haven't lost one approval! They would rather take a loss on your mortgage than to incur the expense of foreclosing and then selling it again. Give me a call if you are thinking of a strategic default or short sale.