Recent conversations we’ve had with several homeowners about selling their homes remind me of a fact I consider important to remember:

We may be in the age of unprecedented access to information, but there’s still a lot of misinformation out there.

Cases in point are Sellers we’ve talked with in Alabaster and Hoover.

Both have tried to sell their homes, both properties are in popular neighborhoods, but neither home sold; in fact, neither couple even got an Offer. One of the homes has been on the market twice.

Why?

According to both Sellers, the reason is pretty obvious. “Everybody knows nothing is selling,” one said, while the other told me,
“There just aren’t any Buyers.” To back that up, one of the Sellers points to a home directly across the street from hers that has
been on the market since November, 2008. Within only a few blocks of this setting are at least four more homes that never sold,
either.

I have to admit that I can’t blame these folks for thinking there are no Buyers out there. After all, the sight of real estate signs swinging in the breeze for long periods of time is pretty convincing visual proof for them.

But when you watch the market day in and day out, a different picture emerges.

With almost 1200 homes having sold across Shelby Co. since April, it’s a bit of a stretch to say there are simply no Buyers. The truth is that those Buyers are going after the best deals they find.

The real reason most homes fail to sell is because they’re overpriced. We see proof of this all the time, both in properties that draw little interest from Buyers, and others that draw almost immediate interest after going on the market.

Generally speaking, the current market is not one for putting your home up for sale to simply test the waters or “just see if it will sell.” Sellers with this perspective face slim chances at best of even getting an Offer.

The homeowner who is motivated to sell, and who is willing to meet Buyers on their price terms is the Seller who is far more likely to be successful.

David

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

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?

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

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:

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Tom Horn Interview Part 2:

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…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

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:

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

I asked a group of Realtors who sell homes in the Birmingham and Shelby Co. area recently what their thoughts are of 2009, now that it’s ‘in the rear view mirror.’

While a few Agents reported a strong year last year, most told me they weren’t sad to see ‘09 become history.

We hear conflicting information in the media a lot these days about home sales, and this can even happen when you’re looking at sales in a small, targeted area.

Here are a few statistics from the Birmingham MLS that show trends in 2009, compared to 2007 and 2008. Clearly, the local market was a difficult one for many:

Here’s a look at average sold prices for homes in the area:

And, finally, how long did it take to get a home sold? Here’s a look at that:

While these numbers show a challenging market, people with a lot of years in the real estate business under their belt continue to believe that the market will undergo a gradual change, back to more balanced conditions.

No one knows exactly when that will happen, or how quickly it will occur, but most are confident it will. Some think it’s already starting.

Perhaps 2010 will be the year…

David

Here are a few news tidbits involving home sales:

…Sales in the Birmingham area shot up 46% in November, marking the second straight month of increases over the previous year, according to the Birmingham Association of Realtors. In November, 879 homes sold, compared to 603 in November, 2008;

…November sales of previously occupied homes surged to their highest point nationwide in nearly three years, according to the National Association of Realtors;

…Lawrence Yun, NAR’s Chief economist, sees continued progress in 2010, even as some of the government’s efforts to stimulate the housing market ease. “We expect a temporary sales drop [before] another surge in the spring when buyers take advantage of the expanded tax credit,” Yun said. That “hopefully will take us into a self-sustaining market in the second half of 2010.”

…Roughly 2 million homebuyers have taken advantage of the $8,000 First Time Buyer’s Tax Credit, according to NAR estimates;

…Sales of new homes, however, dropped 11% in November, their lowest level since April (new home sales represent a dwindling share of the market). Bottom line: If you’re looking for a new home, chances are you’ll find builders extremely anxious to work a deal;

Overall, analysts feel the housing market continues to recover from its recent downturn, with the government’s assistance programs getting much of the credit.

If you’re thinking of buying a home in the Birmingham and Shelby Co. area, the market remains very much in your favor, thanks to a large selection of homes to choose from, motivated Sellers, and a continuation of some of the lowest ever interest rates on loans.

Last, but certainly not least, keep in mind that the First Time Buyer’s Tax Credit, originally set to expire November 30, 2009, has been extended to April 30, 2010. The government has also expanded the program to provide incentives for current homeowners who relocate — click here for details.

David

My hat’s off to folks who actually look for work instead of groan about having no money coming in. That’s where Wyatt Trader, Brent Childree and Haden Bethea come in to the picture:

These young gentlemen, who live nearby, spent the day in our neighborhood Saturday walking from house to house, offering to do odd jobs like washing cars, raking leaves and general clean-up. When they got to our place, they scored two cars to wash:

A mutually beneficial arrangement for all involved: Cash for some young people needing it, and clean cars for us!

David

Congress has taken a step many people were watching for, and has extended the $8,000 tax credit for people buying a home for the first time. But the extension also carries a big change that could affect you if you own a home right now and want to buy again.

The credit, which was originally set to expire November 30th, now applies to Sales Contracts in place by April 30th, 2010. Homeowners have an additional 60 days beyond then to actually close the sale.

If you currently own your home and have lived in it for five consecutive years, the extension provides for a $6,500 credit if you buy another property by the new deadline. In the current market where so many homes have lost value, this may help Sellers frustrated over not being able to get an Offer for as much as they’ve wanted.

So … either way, the extension is intended to make buying a home more enticing to a larger group of people. That’s exactly why Congress passed the bill, in a continuing desire to stimulate the housing market.

Another point many buyers are not aware of is the fact that you can still qualify for the credit even if you owned a home previously. The government defines a first time buyer as someone who has not owned a home during the previous three years. So, if you owned a home in, say, 2004, but have not owned your residence since then, you would qualify for the first time buyer’s credit.

The tax credit’s extension and expansion, coupled with such affordable deals and financing on homes in the Birmingham and Shelby Co. area really do suggest that—unless you plan to move again soon—you’re much better off owning, rather than renting, and—if you qualify as an existing owner and have been wanting to move—now’s the time.

David