Frequently Asked questions about our local Real Estate market
As a local real estate expert I am asked questions regarding the market on a regular basis.
People are frequently surprised at the answer that I give them. Most of you are reading and listening to the news and don’t realize the information that they present is usually nationwide and is not necessarily what is happening in our local market.
How is the real estate market and are homes selling?
The real estate market locally is actually moving right along. Difficult weather conditions definitely played a role in flat sales this winter and even without the first time homebuyer incentive the winter market here is about the same as last year. Although those factors have made an impact on sales, we still showed a slight gain in sales from the same time in 2010. My prediction is that 2011 home sales will continue to show a rise in the numbers as there is pent up demand from buyers who are ready to jump into the marketplace.
Are the banks lending?
Yes, the banks are lending right now. As we climb out of the financial mess we have gone through, the banks are still asking for lots of documentation and a larger down payment. It is critical however to find the right mortgage broker or lenders. Some of them are easier to work with than others. I have asked Aimee Merritt from Wells Fargo home mortgages to offer her professional opinion with this question. She says that Wells Fargo is definitely lending and has lowered the bar on credit scores for FHA loans to 500.
(The down payment and debt ratio requirements will vary but, this is really great news to help more buyers get into more homes.)
-Credit Scores from 500-579 10% down of own funds.
-Credit scores from 580-600 5.00% down of own funds.
Credit scores 600 and above 3.50% down. Down payment can be a gift and the seller may contribute up to 6% towards closing costs and prepaids.
Wells Fargo is also offering better rates for purchases especially investment purchases to help increase housing sales! Rates are currently 4.75% for a 30 year fixed loan.
I believe this Spring and Summer will be very busy for housing sales with reduced housing prices coupled with low rates!
Are there a lot of foreclosures on the market?
There are not as many foreclosures on the market as everyone thinks. They are still out there, according to the Fairfield County Business Journal with towns like Bridgeport having more than others. The good news is they are not coming on the market as frequently as they were. Having said that we may see a new influx of foreclosures coming down the pike but we will have to wait and see which towns fair better then the others. This is one of the unknowns of the real estate market.
What about Short Sales?
At this time short sales are still cluttering up the market. People are over their heads with debt and no jobs which lead to this result. The banks would prefer to deal with homes in this situation with a short sale instead of a foreclosure. The reason why we see so many on the market is that it usually takes anywhere from six to eight months to close on a short sale.
Are prices still declining?
Yes and no. It actually depends on the price point of the home. Homes under $400,000 are selling and my prediction is that as we head on through the year, I expect the lower end of the price range to start heading up again, slowly. Homes in the mid and upper price range are holding steady at this time. The seller’s misconception is because we are in a normal slow winter season that they need to really slash the asking price of their home for it to sell. I have seen other surrounding towns hold out for a fair price initially saving the values of the rest of the neighborhood. My advice is to fairly price your home based on comparables in your neighborhood and you won’t have to continue to slash your asking price considerably in order to sell.
What do I need to do to prepare my home for selling?
Most homes can use a little sprucing up. My advice is set a budget for repairs, painting, and staging. If you can tackle some of these tasks yourself then you will save money. Most buyers want a clean well kept home that they can move right into. Remember a little elbow grease goes a long way with you getting more money for your home.
What do I look for when hiring a real estate agent?
The best advice is to look for someone who is a licensed Realtor. We go through extensive education, testing, training and experience in the field. You also want to hire a Realtor that has experience in the town or city that you are buying or selling in, if they live in the town that’s a good starting point. The reputation of a Realtor goes a long way, make sure they are honest. Ask for references. Small boutique realty companies can do a good job in helping you buy or sell a home. We take pride ourselves at Bondi Realty that we can offer you everything the large companies offer as well as incentives and marketing plans that we can custom create just for you!
Do I need to call the listing agent to see a home?
No, you don’t. You can work with any Realtor who is on the local multiple listing system. We pay a fee every year to be on the Consolidated Multiple Listing Service. This is our guide to what is available for sale in any given town.
Betty Bondi
Bondi Realty Group LLC
203-899-9990