Charlottesville Real Estate Auctions vs. Traditional Sales? .1
May 14, 2009
This is a great topic for home sellers as they do not really understand the auction method of sale as it pertains to real estate. So, is selling your home at auction a better way to go rather then listing it with a traditional real estate agent?
The answer is an emphatic yes.
The auction method of sale gives consumers many more options when it comes to selling their home. But before I speak to the advantages let’s clear up some of the misconceptions. The word auction does not always mean foreclosure or short-sale. The auction method of sale is absolutely not always for distressed situations. This method of sale and the psychology behind it generates a tremendous amount of curiosity and interest for home buyers. Just seeing the word Auction on a real estate sign or in the MLS get buyer’s energized. If the auction is marketed correctly and administered ethically by an Auctioneer, the community will recognize this means of sale as a positive and not a negative. Buyers will always want to preview auction properties before traditional real estate listings.
The auction buzz
So now you have the energy and a buzz around your property that is being sold at auction. What are the advantages? The first advantage is flexibility. If you list your home with an auction firm, make sure they are also licensed to carry out traditional real estate sales, too. If the home does not sell at auction then it can immediately come on the market in the traditional sense. This will give you a competitive advantage with respect to a sales strategy. Yes a sales strategy, more tools that can bring an actual signed sales contract in less than 30 days. By coupling the auction method to traditional real estate sales you have created the perfect situation to sell your home.
PART 2 - CLICK HERE
New Conforming Loan Limit Increase Has Too Many Strings
March 18, 2008
After reviewing Fannie Mae’s and Freddie Mac’s Jumbo Conforming loan guides, it appears that they have come up with an extremely cautious plan to administer the new Jumbo Conforming limit increase. Let’s be clear, this is not what Americans thought it was going to be. (Fannie Mae Guides & Freddie Mac Guides)
The GSE’s have created a new hybrid program for consumers. It is not a Conforming loan. This new program is purely and simply all but a symbolic gesture of help. It is tailored to dissuade refinances through ultra-tight underwriting guidelines while being some-what attractive to new home buyers, assuming you have perfect credit and a 10-25 percent down payment.
Unfortunately, many of the loan origination calls coming into lenders for this new loan product are for refinances. These consumers just cannot qualify. Of course you would assume they do not qualify because of income or debt ratios, but loan originators do not even need to get that far into the loan application process to decline these borrowers. In most cases their first mortgage exceeds 75% of the value of the home. The deal is immediately dead.
As far as rates are concerned, the rates follow closely to the normal conforming products. So a relative thumbs up with respect to rates. The new Jumbo Conforming product is about .125%-.375% higher in rate compared to the old standard conforming loan across different lenders. Below is a quick rate comparison based on today’s rates.
Conforming 30YR Fixed
5.75% / 0 points
Jumbo Conforming 30YR Fixed
6% / 0 points
So if you were applauding this portion of the stimulus package, I would not applaud quite yet. This new hybrid, conforming product may not have the impact on the economy lawmakers may have suggested. Not surprising as we have seen this occur on some of the initial consumer foreclosure bailout policies rolled out early in the credit crunch.
One quick side note: I do want to applaud Freddie Mac for at least offering a refinance cash-out option as Fannie Mae did not. Although the guidelines are tight, they did put it in the guides.
Please feel free to put your loan scenarios in the comments so we can illustrate some of the challenges loan originators face with the new Jumbo Conforming product.
Calculate your new mortgage loan limit by Zip Code. Click Here
Charlottesville Foreclosure and Bank Owned Real Estate Auctions
March 11, 2008
Thought I would address this topic in the Charlottesville real estate market, as the question comes up quite often. The general public is extremely curious about this topic. An auction if executed correctly and ethically is the best way to buy and sell a home in any market. Moreover, the auction method of sale is not only for foreclosures and distressed situations. This is important to know because auctions styles and protocols for consumers are very different depending Read more
Charlottesville real estate - Mortgage Servicing Loss Mitigation Contacts
February 1, 2008
With more than 50% of foreclosures being prevented, the first step a homeowner can take is to call their Mortgage Company and ask to speak to someone in the “ Loss Mitigation Department. ” If your lender is not listed below, Read more
NAR Stimulus Package.. A Wishlist?
January 22, 2008
National Association of Realtors began asserting itself in Washington this last week as it began urging President George Bush and other law makers to push harder to get Government Sponsored Enterprises, Read more
Charlottesville Real Estate Foreclosure Market and Traditional Buyers
January 21, 2008
This is in interesting subject for all you in the Charlottesville real estate market!! I cannot tell you how many buyers and mortgage clients have approached me through the years looking for the ultimate score in the foreclosure market. This article is intended to shed light on what the term Read more
-
Advanced Real Estate Search
Mortgage Rates
US AverageMortgage Rates30 Year Fixed loading... 15 Year Fixed loading... 5/1 ARM loading... 
View Trend 
