"Correction Curve"

The housing market is going to experience what I am calling the "Correction Curve", think about it, what the bank will finance is really what the market will bear, unless we have a frenzy market again and CASH buyers inflating the market (that is a whole other subject coming soon), if the a property is being purchased with a mortgage, then the bank requires an appraisal. An appraisal is really only ones opinion with a calculation of other factors. These main factors are other sales with in the market area and homes that are close in comparison to square footage and actual year built.

Right now in this market there are foreclosures closing, investors getting out of a bad investment at any cost to save their credit, short sales and true sales at true market value. Once these properties close and is recorded these are then used in the calculation process of an appraisal for a loan. Even if a purchase for contract has been accepted by buyer and seller at a price higher than the appraisal the buyer has a "loop hole" out of the contract in the financing clause. Property must appraise at mortgaged value, so make sure when writing an offer on a property to consult with a professional Realtor on how to get you out of the contract if it does not appraise at full purchase price (again another subject for another time, coming soon).

Once several properties have closed at lower than market value the values in general decline and in an inflated market this will create a correction of price therefore "Correction Curve." What this can mean to you as a seller, you should absolutely consult with a professional in your market place and get a fair market value. If you really want to sell, I am finding there are buyers at the right price, but if your intention is to "test the market" or "fish for a buyer" than now is not the time to put your home on the market (unless of course it is priced at fair market value). Marketing your home with a professional is only to your advantage. Use their expertise and also, it literally cost you nothing unless the home is sold.

Now for the buyers, I have mentioned this before, never has there been a better time to buy (of course except to prior to 2003), buyers are getting great interest rates, a huge inventory to pick from, and now the "Correction Curve" price is all in your favor of being able to buy a home at a better than fair market price. So.. if your looking to buy or even do I dare say INVEST, go for it. Get with a Realtor and start looking at the market and making offers, you never know what might be accepted.

Purchasing Real Estate: 101

At some point and time everyone hopefully will make that decision in ones life to purchase the American Dream. A HOME! When you have decided to do so, the very first thing you should do is speak with a qualified Mortgage Professional, again if you do not know of any, ask a friend, relative or co-worker. If you do not have one of those, then go to your bank and see if someone there can help you. When decide to purchase a home, running out and looking at property is NOT the way to go, you make be looking below your means or worse yet, fall in love with the perfect property and then find out you can not afford it. So, as I like to say, "Shopping within your means" is the best way to go, and to find that out you need to see a Mortgage Broker, Banker or financial institute. Once you find out what you can afford monthly, then look at what you have to put down on a home. You need money for closing cost, insurance, appraisals, surveys, home inspections, pest inspections, and utilities, so just the home price is not the only costs to be considering. And then there is the "down payment" that you should have, 3% is FHA requirements. So this is the least amount. Preferably 20%, but in most cases this is not attainable. There are ways to find other programs to help you.

Now that you have figured out where you need to be money wise, price wise etc... now you must find a Realtor you can relate to. Riding around and calling every real estate company sign in front of the homes that appeal to you is a huge waste of time, gas and energy. You should try to find a Realtor, either ask a friend, relative or co-worker, and remember all of us Realtors have the same information on all listings in the area. Once you find a Realtor you feel comfortable with make an appointment to view the homes that fit your search criteria and price points. Remember also, when choosing a Realtor find one that is not afraid to negotiate a price for you, so if you say your price range is highest of $120,000, your Realtor should at least pull up listings in the $135,000 range, unless the listing has already been drastically reduced. The Realtor should really interview you, that is what I do, sometimes we even go look at a property or 2 and then I can get a better idea of what the buyer's needs are and take it from there. Once you decided to go look at property the rule of thumb is to keep it a short list, 4 to 9 listings at the most. Take notes on every property, unless you know for sure it is not the one for you. Remember you will be looking at many properties so taking notes on the good and also the bad things about each property while you are in the property is very important. The hardest part in purchasing real estate I have found to be, is picking the property. Once you have picked the property, you should have the Realtor contact the Mortgage Broker and have them prepare a Pre-Qualified or better yet a Pre-Approval letter, that states you are already in the process of obtaining financing. At this point all of us Realtors have our personal ways of writing, submitting and presenting offers. Make sure you are involved and informed of this entire process. It is very important and as my Dad, the KING OF REAL ESTATE, always tells me, "Time is of the essences".

Once everyone agrees to everything on the contract, then you have what is called a "bi-lateral"contract (between 2 people), the Realtor, Mortgage Broker and Title Company or Attorney then take everything over and process this file as needed. The Mortgage Broker will be working very closely with you and getting the remaining documentation to the underwriters for their approval. Once all is approved, this not only includes your financial status but also the home must approve too, then you are well on your way to purchasing a home. It basically is only a matter of time for the title work and mortgage note to be prepared before you sign on the dotted line and are granted the keys to your new home.

Hope this information was helpful, I know most of my clients are not experienced home buyers and definitely benefit from my knowledge. So interview your Realtor, because you will be very closely involved with them for at least 30 days or more. You can reach me directly at 863-381-0400,
I am in Sebring, FL, and my name is Dawn Dell.

Dell Realty
"Where we treat you like family"

Feds Reduced Rates

Feds reduced to the rate ½ percent, that is a whole 50 points। WOW! Just be careful when talking with a qualified mortgage broker, ask what their rates were just prior to the rate decrease, make sure basically that they are not “padding” the interest rate and you are getting the best they have to offer. Remember this could equate to literally thousands (tens of thousands) at the end of the day. So be smart and educate yourself, use someone that is recommended to you, that way you know that person had a personal experience and it must have been good for them to recommend them.

With the rate being reduced Wall Street of course reacted, positively I might add. We as Americans need to gain control of our own economy. The press is ruining our confidence. We should not allow them to continue to feed us with negative press, and if it has not happened then they continue to report on it basically until it does happen. For instance, you hear a song on the radio, do not really like it but the DJ continues to play the song, finally it sounds familiar and then next thing you know your humming with it and know the words and then you even want to hear it when you turn on the radio. This is how they “brain wash” us. If it is not bad news basically it is no news. Now the flip side to this, since I am the forever optimist, once they (the press at large) conquer whatever their AGENDA may hold, (and you can bet there is an agenda) they quickly move on to another “problem” we may have, or “need” to have??? When the market was GREAT, remember they kept telling us the BUBBLE was going to burst, now 2 ½ years later, it burst, but that is not enough, now it has to “HIT BOTTOM”. These are the new “trigger” words I am hearing out there. But.. Sellers are getting smarter and reducing their prices, if they want to sell. Buyers have the best of all the worlds, sellers reducing prices, interest rates dropping and a few dozen or so homes that would perfectly fit their needs, just location should be the issue, as it use to be in the old days of real estate, location, location, location. So if you are in the market NOW IS THE TIME TO BUY!!!

Next up picking a Realtor। And remember to “Buy or Sell… Call Dawn Dell”

Dawn Dell

Dell Realty, Broker/Owner

2006 REALTOR OF THE YEAR

863-385-8822

www.dellrealty.net