First Time Buyer’s Closing Deadline Extended

dbinbama — Thu, 01 Jul 2010 17:07:16 +0000

Here’s some great news if you’re one of the folks who’ve been trying to buy a home under the First Time Buyer’s Tax Credit that expired April 30th.

Congress has passed a bill extending the June 30th closing deadline to September 30, 2010. This extension applies for Sales Contracts that were in place as of April 30th, but that had not yet closed. This has affected a lot of people trying to buy, especially folks involved in Short Sales (which take longer, since Lender approval is required).

So, perhaps being patient and waiting for your sale to go through will pay off, after all!

David

Birmingham Loan Rates Drop From Previous Week

dbinbama — Mon, 10 May 2010 18:38:26 +0000

Unless you have enough cash in pocket to buy a home outright, you’re probably going to be looking to get a loan when the time comes.

And here’s some good news from the mortgage industry:

Interest rates for the Shelby Co. and Birmingham area have dropped, compared to a week ago.

Rates for 30-year fixed loans have dropped to around 4.8%, down from around 5.0% at this time last week.

Rates for 15-year fixed loans have also slipped from last week’s 4.3% range to the current 4.2%.

So, what does this mean if you’re thinking of buying a home? Simple: The cost of getting a loan is still extremely attractive.

If you’re considering buying a home in the Birmingham/Shelby Co. area and want to get the purchase financed, your best bet—even before starting to look at homes—is to start talking with a Lender. That way, you’ll be well on your way to having your financing already lined up when you find the home of your dreams!

David

Interest Rates Heading Back Up!

dbinbama — Sun, 11 Apr 2010 15:38:33 +0000

Yet another indicator that the super low interest rates Buyers have been enjoying in the Shelby Co. and Birmingham real estate market may be coming to an end:

Click here to see an article in the 4/11/10 New York Times advising that rising interest rates are inevitable.

If you’ve been considering buying a home and have been waiting for the perfect time, it looks more and more as if the perfect time is about to pass you by.

It’s all the more reason to get serious, and soon!

David

A Good Black List To Join

dbinbama — Thu, 08 Apr 2010 02:13:03 +0000

You may not think of being on someone’s black list as a very desirable situation, but here’s proof that it can be good. Yep, you can be on someone’s black list, and, most likely, benefit from it.

This all started earlier a little over a month ago. That’s when Colleen and I saw an excellent opportunity pop up on the MLS. A Foreclosure, consisting of a house and about five acres of property in a desirable area of Shelby county had gone up for sale. Asking price: $109,900.

We thought it was such an enticing offer that we immediately sent e-mails to a number of people we thought might be interested. Would anyone respond? We had no idea.

We got our answer. Lots of folks, it turned out, wanted to know more, and several visited the property.

The inquiries continued. In less than five days, the property had multiple offers and sold. Needless to say, being able to capitalize on a great opportunity requires quick response. Speed is definitely the issue. Or, as some say, if you snooze, you lose.

Given the response we received, we knew it was time to let technology help people know quickly when a good real estate opportunity arises.

And so, The Black List was born.

The Black List is our quick notification e-mail list you can join to get periodic updates about attractive chances to own property in the Shelby Co. and Birmingham area.

When we see what we consider an especially juicy real estate opportunity, we’ll let you know via The Black List. Needless to say, if you’re on the list, you’ll be among the first to learn about it. And that will automatically put you in a position to capitalize on the chance, if you wish to pursue it.

The properties you read about might be Foreclosures, or they might be regular sales or Short Sales. They might be large homes or small homes. They might be in the city, or maybe in the country. They might need work, or might be move-in ready. They might be our Listings, or they might be those of another Agent. The point is to let you know quickly when a good deal pops up.

You can sign up by clicking here and entering your e-mail address in the sign-up box at the top of our website’s main page.

We’ll operate this e-mail list the way we think e-mail lists should be run: We won’t share your information, and we won’t constantly blast you with e-mails. You can unsubscribe at any time, with no questions asked.

Here’s hoping The Black List will help you with being able to take advantage of some of the great opportunities we’re seeing more and more in the Shelby Co. and Birmingham areas!

David

Alabaster, Helena Home Sales Up In March

dbinbama — Thu, 01 Apr 2010 17:17:16 +0000

More folks want homes!

The number of properties sold in Alabaster and Helena rose sharply in March, compared to February, according to the Birmingham Multiple Listing System. In Helena, March sales were double those for February:

Meanwhile, home sales in the Alabaster, Maylene and Saginaw areas were up sharply during March, as well.

Why the big rise in sales?

Buyers are realizing that very little time remains before the end of the First Time Buyer’s Tax Credit (Contracts must be signed no later than April 30th);

Loan rates continue to be extremely attractive; and

A large inventory of homes remains available in Shelby County, with Sellers motivated to sell

Last but certainly not least, the return of spring has no doubt been a welcome change from the extended bitterly cold winter Alabamians had to endure. Most people found going out looking for homes—only to be blasted in the face by freezing wind—to be less than fun.

For more reasons than one, we’re glad Spring is here!

David

USDA Loans: End Of An Era For Home Buyers?

dbinbama — Wed, 17 Mar 2010 15:47:50 +0000

If you’ve been thinking of buying a home in the Birmingham/Shelby Co. area using the popular USDA loan program which allows you to buy with no down payment, you may be fast running out of luck.

USDA says the program is projected to run out of money by the end of April, and no new funding is currently anticipated.

In Shelby County, USDA loans have been responsible for many people buying homes in areas like Calera and Montevallo, as well as across many other parts of Alabama.

Because USDA loans are so attractive to many buyers—mortgage insurance isn’t required, either—they have often meant the difference between whether a Buyer is able to purchase property.

Carmell Cantrell is a Loan Officer with First Federal Mortgage in Birmingham, and has been following what may be the demise of the program she and other Lenders have worked with extensively over the years.

USDA loans could be revived if Congress acts, but whether that will happen remains unknown. If the program does, in fact, end, it will stand as a major point in real estate sales history, signaling the end of the so-called easy credit era.

Click the player below to listen to our interview with Carmell now…

…or click here if you’d like to download and listen on your personal listening device.

So … what to do if you’ve been thinking of buying a home using USDA loan program?

Experts have two words to suggest: Start saving.

David

Appraiser Tom Horn: Birmingham Prices Down, But May Be Recovering

dbinbama — Mon, 08 Mar 2010 02:43:44 +0000

If Sellers sometimes have an unrealistic idea of what a Buyer is willing to pay, Tom Horn brings them back to reality.

Tom is an appraiser in the Birmingham and Shelby Co. area, and owns appraisal-source.com, a company Lenders and homeowners trying to sell on their own rely upon for accurate residential market appraisals.

Colleen and I caught up with Tom and got his analysis of what’s happening with home values in the Shelby Co. and Birmingham areas. We found out pretty quickly that talking with Tom is very interesting!

From everything we learned about home price trends in the area, as well as the negative effects on home sales prices caused by government-mandated changes in the way appraisers are selected, we knew we needed Tom to share his expertise with us.

We’ve divided our interview with Tom into two segments. Click the players just below to listen to Parts 1 and 2.

Tom Horn Interview Part 1:

Price trends overall from 2006 are down, but may be slowly recovering

New homes are competing heavily with owners trying to sell existing homes

Foreclosures are now “making” the market

Increasingly, Foreclosures are higher end properties

What banks are doing that hurts Sellers and the community

Tom Horn Interview Part 2:

How Sellers can try to keep their home’s value at its highest

How the Government’s plan to manage appraisals is causing complications and affecting values

How Appraisers are being paid less while Homeowners are being charged more

How to sell sooner, rather than later: The value of getting a pre-appraisal

…or, if you’d like to listen by downloading to your portable device:

Click here to download Part 1 (10 Mb).

Click here to download Part 2 (7 Mb).

Links to Thomas Horn’s websites:

Click for Appraisal-source website

Click for Tom’s Appraisal Blog

We hope you enjoy … and thanks, Tom, for the great information!

David Black

Thing of Buying? Better Get Crackin’!

dbinbama — Fri, 26 Feb 2010 16:34:59 +0000

If you’ve been thinking about buying a home in the Birmingham or Shelby county area, be aware: the clock is ticking…

The government’s Tax Credit for first time (and many existing) Buyers ends April 30th.

Under current rules, that’s the last day you can have a Contract to buy a home in place and still be eligible for the credit.

Have you been ‘on the fence’ about buying?

Here are some of the reasons proving why buying now is such a good idea:

Inventory is high…fancy lingo for: “There are lots of homes to choose from!”

Sellers are motivated…fancy lingo for: “Many Sellers want to sell and will work with you!”

Financing is affordable…fancy lingo for: “Loan rates remain in the 5% range; try to beat that with a stick!”

If you’re a qualified Buyer under the Tax Credit, you’ll be getting up to $8,000 back…fancy lingo for “What are you waiting for?”

Whether you’re buying an existing home or want to buy a brand new home, we are seeing some excellent opportunities to own a home in just about all areas in Shelby County.

In a number of cases, we are seeing such attractive pricing that—provided you meet certain Lender qualifications—you could own your own home, instead of paying rent.

So, if you’re planning on staying awhile, it doesn’t make sense to rent when you could own your own home.

Since buying a home can easily take 30 to 45 days or longer, and since the Tax Credit is set to expire in about two months, it’s time to jump off the fence!

Colleen and I are always available to help with your search and with any questions you have…

David

Birmingham January Home Sales Drop

dbinbama — Thu, 04 Feb 2010 22:37:01 +0000

After taking a look at new numbers from the Birmingham MLS, it’s clear that Buyers have the upper hand when it comes to purchasing a home in the area.

Almost all across the board in the areas we checked, sales in January were down, and in some cases, half of what they were four months ago:

The message for now is clear: Buyers call the shots.

If you’re looking to buy, all sorts of factors are on your side at the moment. First, there are lots of homes available (482 in Helena and Pelham, 350 in Alabaster and 684 across the North Shelby Co. area at the moment!). Second, smart Sellers know they have competition and will do whatever they can to ‘work a deal.’

Third, interest rates are, in two words, still great. One of the Lenders we work with reports 30-year fixed rates remain below five percent, while 15-year rates (which were around 4.375% last week) have dropped a bit more.

So, if you’re a Seller, the message here is that you absolutely must meet Buyer’s expectations in terms of how nicely your home shows, and price. Fail to meet either of those requirements, and your home won’t sell.

And if you’re a Buyer, with such a good market for buying a home, one question comes to mind:

What are you waiting for?

David

Selling Your Home Without A Crystal Ball

dbinbama — Tue, 26 Jan 2010 22:02:16 +0000

Ever wished for a crystal ball so you’d know what’s ahead? That might, or might not, be a good thing, depending on what you want to know…!

On the one hand, having a crystal ball to look into the real estate market could sure help ease concerns for some folks here in the Birmingham and Shelby county areas. Or would it?

Suppose you’re thinking of selling your home. Would you be more inclined to sell sooner, if, say, the ball suggested values would continue to slide in 2010? What if the ball suggested you’d get more if you wait?

I don’t think we really need a crystal ball to know that home values will rise. Nearly every expert out there predicts they will, at some point.

It’s those last three words that are the kicker: At some point.

Hmm. Does that mean in the next three months? Ten months? Two years? This is where having a crystal ball would be pretty handy.

However, crystal balls are about as plentiful as bumper stickers in Alabama supporting the Texas Longhorns. People ask us questions frequently that would pretty much need a crystal ball to answer accurately. “What is my home going to be worth in a year?” would be one such question.

“What will my home sell for if I list it right now?”

Ahh. There’s a question that doesn’t need a crystal ball as badly to answer. We have good resources we can draw upon to come up with a figure that—more times than not—winds up being very close to actual selling price.

The fact is that if your home ’shows nicely’ as Agents like to say, and is priced where we know Buyers will bite, your odds of selling are promising. And, yes, that’s true even in the tough market affecting so many neighborhoods in the Birmingham and Shelby Co. areas as we plow into 2010.

This might sound ridiculously obvious to some, but the ’shows nicely, priced right’ concept is one we’ve seen trip up a lot of people trying to sell their homes. So, not everyone really understands how important this really is. Or put another way, not everyone really ‘gets it.’

During 2009, we represented Sellers who agreed to price their homes where we suggested. Granted, they weren’t always thrilled with the price we recommended. But they swallowed hard and said, ‘okay.’ Why? Because they needed to sell. Helping ease this frustration was their knowledge that—when they turned around to buy another home—they’d be enjoying the opposite side of the tough selling market, getting a very good deal on the home they’re buying.

We also dealt with Sellers in 2009 who disagreed with us. They felt they had a better idea than we did of what their home would would sell for. And guess what happened with their efforts to sell? Nothing. Zilch. Their homes didn’t sell, despite being on the market plenty long enough to sell. I remember several cases where other homes in the same neighborhood as our Clients’ house sold, and in the general price range we had recommended.

There were some cases where our Client’s home never even got an Offer. We always talk about how important it is to listen to what the market is telling us. Let me assure you of one thing: If a home for sale doesn’t even get an Offer, that’s the market talking. It may even be shouting.

I know one thing for sure about trying to get a home sold in this market. You either have to ‘get it,’ or you have to trust your Agent’s advice. Otherwise, your home is probably not destined to sell.

I think the real question that emerges is: How badly do you want, or need, to sell?

Clearly, there are many situations for folks where—regardless of how the market may be performing at the moment—it’s important to sell sooner, rather than later. Some Sellers who contact us tell us they need to sell as fast as possible, and are waiting for us to tell them what to do to make it so.

These are the people we feel confident we can help.

And no, we don’t have a crystal ball to predict the outcome.

But listening to the market and to your Agent go a long way right now, and will most likely mean you can start packing sooner, rather than later.

David