EXISTING HOME SALES ON THE RISE

According to a National Association of Realtors report released today, after many stops and starts in February, sales of existing homes rose 3.7 percent in March from the month before, while
settled property volume of existing single-family homes, townhomes, condominiums and co-ops declined 6.3 percent compared to March 2010.

Lawrence Yun, NAR's chief economist believes "With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain -- primarily because some buyers are finding it too difficult to obtain a mortgage."

He said the upward trending in monthly existing-home sales suggests the real estate market is "clearly on a recovery path."

The median price for existing homes nationwide fell 5.9 percent year-over-year in March, to $159,600. Foreclosure or distressed properties, usually sold at well below the average market price, made up 40 percent of sales last month, compared with 35 percent in March 2010.

Its still a great time to consider purchasing a home with interest rates still very very low and inventory is still very very high AND with motivated sellers.

Real Estate Pricing Trends - Helpful Or Harmful To The Sale Of Your Home?

Buying or Selling Because of Published Real Estate Trends

If you are considering buying or selling, you are probably noticing price fluctuations in your area. The question is how important a role these movements should play in your decision to buy or sell.
The first rule of real estate is, of course, location, location and location. The second rule many believe has to do with getting the pricing right. Specifically, is the real estate market trending upwards or downwards? Considering pricing trends is a smart move, but using them soley to price out your home is not.

Why are real estate pricing trends so big a deal to some? Well, it all has to do with getting the best possible deal. For buyers, the goal is to buy property at the bottom of the market. The buyer can then rely on at least SOME kind of appreciation when the prices eventually start rising again. Likewise, sellers are looking to sell when property prices are at at their highest, which maximizes the profit in the property being sold.

While pricing trends are important in some respects, they are not nearly as critical as people think. First off, it is important that you focus on the correct trend. National price trends up or down are not all that important. The local price trend may differ. If prices are dropping 10 percent on average across the country, it doesn't really matter to you if prices are up 5 percent in your area for the same period. Think locally, not globally in this respect.

As a home seller, trying to outsmart the real estate market can be a catch-22. Yes, you want to sell at the optimal time to maximize your profit, but there is often a problem with this way of thinking. Once you sell, you are probably going to want to buy another home to live in immediately. If you sell at the top of the market, you are also going to buy at the top of the market. In short, it tends to be wash transaction. You could rent for a bit until prices go down, but most people move home to home as quickly as possible. This makes pricing trends pretty irrelevant.

When all is said and done, trying to time the real estate market can be a futile gesture. You can do so in a general way, but you will never buy at the absolute bottom of the market or sell at the absolute top. Real estate has always appreciated over time, so focus on location and try not to get too caught up in the hype of pricing trends.

Author: The Frani Morrione Group at Keller Williams 215-646-2088

Reasons to NOT Purchase A Home Without A REALTOR

This article has some great information and advice for buyers considering purchasing a home on their own, without the expertise of a local REALTOR. "Buyer Beware", indeed!

Unrepresented Home Buying? Buyer Beware

By: David Bouthot

"When most homeowners wish to sell their property, one of the first things they do is to secure a real estate agent. However, when many people who set out to purchase a home often start to do so by themselves, without representation. Many buyers go online to look for great deals, or visit open houses themselves, without applying for a buyer’s agent first. Unfortunately, this approach can cost home buyers a great deal of money and can lead to house buying disasters that take buyers years to recover from -- both financially and emotionally.

It is true that buyers are becoming more Internet savvy and more money smart. Many get estimate values of homes from web sites such as Zillow, or spend their time looking at County Assessor websites to find the assessed value of properties, as determined by the local taxing authority. However, this information, while valuable, will often not provide a buyer with the information they need to make a truly smart purchase. Many buyers, for example, do not realize the high rate of errors and mistakes that occur on these web sites, as well as the generality with which the values are often displayed.

Many buyers assume that they can save 3% immediately by negotiating the 5% to 7% selling commission that is often built into the list price of a property. However, many buyers quickly realize that developers will often not negotiate much with an unrepresented buyer, even if they had actually planned on paying additional money for a commission. The same is true of many sellers -- they are not always willing to negotiate with a buyer who is unrepresented, even if they were planning on negotiating with a buyer's agent. In many cases, where a homebuyer is using an agent in order to sell the property, that agent may accept a lower commission than was originally agreed upon. In this case, the unrepresented buyer does not get any sort of discount. The seller simply pays less commission to the listing agent, and the price remains the same. 

For all these reasons, getting a buyer's agent is simply a necessity in today's real estate market. A good buyer’s agent can have access to accurate and detailed information about the market value of the property. A good buyer’s agent will also have the well-developed negotiation skills that can get a buyer an actual discount on a property. This negotiating skill alone is often enough to pay for the price of a buyer's agent in the first place. A buyer's agent is also often able to complete extensive research on the MLS. For example, a good buyer’s agent will use this database to compare recently sold properties with the property that a buyer is interested in buying. This can help the agent determine whether the price compares favorably to current market conditions. More importantly, an experienced buyer’s agent is also invaluable in helping a buyer negotiate the entire buying process. From helping to locate a good lender, to helping in the inspection and assessment process, to helping the buyer determine what their needs are, a buyer's agent can take a buyer from initial desire to buy a home right down to negotiating the contract. Simply put, having a professional, experienced buyer’s agent on your side ensures a good house buying experience."

Article Source: http://www.real-estate-article-directory.com

5 Things You Should Know About Your Credit Score

5 Things a Home Buyer Should Know About Credit Scores

Go online and start researching the topic of credit scores, and you will quickly be overwhelmed with information and analysis. But in truth, there are only a few important concepts that you, as a first-time home buyer, should know about credit scores.

Here are five of the most important things to keep in mind when you start shopping for a mortgage loan — an even long before that.

1. Mortgage lenders will check your score.

When you apply for a home loan, you can be certain that the mortgage lender will review your credit score — among other financial factors. It’s not the only thing that will determine their decision, but it is one of the top factors of the mortgage-approval process.
If your score is low, you won’t even get your foot in the door. You will be rejected right from the start, or you’ll have a much harder time finding a willing lender. If your score is high, you will have more options and better interest rates available to you.

2. Your score partly determines the interest rate.

The interest rate is one of the components that will make up your monthly mortgage payment. Obviously, the principal amount you borrow is the largest factor that determines your monthly payment. But the interest rate plays a major role as well.
If you have a high credit score, you are more likely to get a low rate on your home loan. This in turn will reduce the amount you have to pay each month toward the mortgage. On the contrary, a bad score generally means a higher interest rate — and therefore a higher monthly payment as well. How much higher, you ask? That’s our next point.

3. A good score can save you thousands of dollars.

The difference between a good and bad credit score can greatly affect the interest rate you receive from the lender. It could be the difference, for example, between a rate of 5.5% and 7.2%. These may seem like small numbers on the surface, but when you apply them to something as large as a mortgage loan, we are talking about thousands of dollars over the life of the loan.

4. Your score comes from your own actions.

Credit scores are not arbitrarily assigned to consumers. Your score comes from the information contained within your credit reports. You have three of these reports by the way — one for each of the consumer credit-reporting bureaus.
So where does the information within your credit reports come from? It comes from your own personal actions, your financial history, and your previous use of credit. In other words, it’s a snapshot of how well (or how poorly) you have managed your credit in the past. Good behavior creates a good score, and bad behavior has the reverse effect. It doesn’t come out of thin air — it comes from your own actions.

5. There are no mysteries to improving a credit score.

There are a lot of companies out there who would like you to think that it takes some kind of special knowledge to improve a credit score. These companies make money from people who don’t realize they can handle it for themselves. So let’s set the record straight right here and now. You are the only person who can improve your credit score, and you can do it without paying any other company for assistance.
Pay all of your bills on time, maintain low balances on your credit card accounts, and use credit sparingly. These three things alone can help you earn and sustain a good score for years to come. And there’s no certainly mystery in that!

Citation Note: The original version of this article was written by Brandon Cornett. Brandon is the publisher of the Home Buying Institute, which includes one of the largest libraries of credit advice for home buyers.

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For more information on purchasing a home, contact The Frani Morrione Group of Keller Williams Real Estate, Blue Bell - The #1 Selling Office In Montgomery County! 215-646-2088 http://www.franimorrione.com