Do Homes Sell For More Than The List Price?

DSNews.com came out with a story yesterday about the top CBSAs. The article can be viewed here.

The article stats that the typical sale to list price ratio is between 92%-98%. The top markets are now seeing homes selling above that threshold and even above list. Reno came in at #4 in the country for markets with high sale to list price ratios.

So how high is the ratio? We’ll use our more recent full months of stats, April 2013.

• Homes under $500,000 sold for 99.83% of the list price.
• Homes under $250,000 sold for 100.59% of the list price.
• Homes under $150,000 sold for 101.09% of the list price.
• Homes under $100,000 sold for 102.08% of the list price.

What this data means is buyers need to have their game faces on when putting in an offer while sellers can expect multiple offers if their home is priced right.

For more information on selling or buying a home in Reno or Sparks contact Broker Ricky Beach at (775) 750-1437 or Ricky@Resnv.com

 

 

Old Southwest Reno Is Getting Really Expensive

A new listing came out this evening.

Heart of the Old Southwest for a cute little home around 1,300 sqft. No big deal until I looked at the price per sqft… $306.92 per sqft. There’s only been 4 homes in the past 4 years to sell over $300 per sqft (current property is on the list of 5 to the right).

You can view all the listings here. Click Here to View Listings

What do you think? Is $300+ per sqft. worth it for a non-luxury home in the Old Southwest?

 

The Logical Mortgage

McLean Mortage in Virginia has come out with an innovative way to give their buyers an edge in putting in offers.

The McLean “LoanFirst Program” will give a buyer a full pre-approval prior to putting in an offer. This pre-approval differs from a traditional pre-approval because they will put in the full loan application, process the credit and income verification, and fully underwrite the loan (subject to a ratified contract, clear title report, and appraisal) before you even put an offer in.

Though this may not help with the lengthy short sales it would most certainly improve a buyer’s position in front of a regular seller or asset manager and shorten the closing time that is traditionally required to go from contract to close.

Of course, there would be additional updated document requests but the major clog in the loan process would already be cleared.

Thanks to McLean Mortgage for logically thinking through how the purchase of real estate should go instead of sticking with industry norms.

For more information on selling or buying in Reno and Sparks, NV contact Broker Ricky Beach at (775) 750-1437 or Ricky@Resnv.com

 

Washoe County Foreclosure Statistics For March 2013

Ticor Title Company sent out the updated foreclosure stats for March 2013.

The full stats can be viewed by clicking the picture to the right.

• Notice of Defaults hit their highest point since September 2011 (start of AB 284)
• Notice of Sales (final recording before foreclosure) at their highest since February 2012
• Trustee’s Deeds were at their highest since July 2012 (small change)
• New REO listing have hit their lowest point (24) since Ticor began collecting the data

The increase of NODs and NOSs is a good sign for buyers though it’s going to take at least 9 months to get NODs into Trustee Deeds. Sellers may only have a limited time to name their price when selling their homes.

For more information on buying and selling in Reno or Sparks contact Broker Ricky Beach at (775) 750-1437 or Ricky@Resnv.com

 

Reno Real Estate Roundup 3/29/2013

 

FHA Loan Prices To Increase On April 1st- Renownhomes.com

If rates go up a refi may not work. You should look into a conventional with 5% down.

Fannie Mae Says Housing Return To Remain- Inman.com

It’s still about 70/30 that the market won’t depreciate in the near future.

Streamlined Loan Mods From Fannie and Freddie- RGJ.com

Hopefully, better than the original HAMP.

Rates Headed Up In The Short Term- Housingwire.com

Not good if prices are doing the same.

For more information on buying or selling in Reno contact Broker Ricky Beach at (775) 750-1437 or Ricky@Resnv.com

AB300 To The Rescue? Redefining AB284…

The legislature is in full swing and they will finally begin to tackle the AB284 language debacle.

For those of you that haven’t been following… AB284 made it tougher for a lien holder to foreclose due to the vague language of “personal knowledge” and other verbiage. Oh yeah… it’s also a felony if you mess it up.

The Assembly Judiciary Committee will be convening tomorrow, 3/27, at 8:00 am in order to review the provisions. (Vote yes on “business records”)

The bill text can be read by clicking on the picture to the right and you can watch the committee by clicking on the link below.

Nevada Legislature Streaming Video Schedule

Of course, there will be future posts if this bill ends up going through and relieving the lack of inventory burden carried in today’s Reno/Sparks real estate market.

For more information on buying or selling contact Broker Ricky Beach at (775) 750-1437 or Ricky@Resnv.com.

 

Just Listed: Regular Sale in Double Diamond Reno

Schedule a Showing/Request Info What is your home worth? 89521 Homes For Sale 89511 Homes For Sale Double Diamond Homes For Sale Damonte Ranch Homes For Sale Short Sale Homes For Sale Free List of Foreclosed Homes For Sale Search All Homes For Sale Ricky Beach Renown Real Estate Services 775-750-1437 Questions? Schedule a Showing! Information valid for the date of this posting only. Please contact us for the most current information and status of this property.

10600 Blue Moon Court Reno, NV Scan with your smartphone & take me with you. Description Photos Maps & Local Schools Virtual Tour Just Listed Regular Home Sale In Double Diamond $ Click for current price 3 BEDROOMS 3 BATHROOMS (3 full) 2567 Square Feet Regular sale in the Double Diamond area of South Meadows. Great room effect with easy flow from the kitchen to living room and patio. The master bedroom offers a full walk-in closet with spacious bathroom, double sinks, and jetted tub. Two additional bedrooms each have full baths in close proximity with one that was used as an in-law quarters. The fully landscaped back yard has a paver patio, water feature, and an additional enclosed patio. All within close distance to a green belt walking trail. L2L Property Websites WP

This information is deemed reliable, but not guaranteed.

What’s Up With Fannie Mae List Prices?

If you’ve been looking for houses the past 6-8 months you’ve noticed there isn’t much inventory and prices are going up. Well, Fannie Mae is onto this and has been trying to prop up the market even more.

Go ahead and search the Fannie Mae listings. Search Here

Now run search on closed and even active comparables around it.

Anything look funny?

Yeah, Fannie Mae is adding anywhere from 20-30% of market value to their listings. While the market is going up there is only a slight chance most of these will appraise.

Not only are they doing this with REOs but there are reports of this happening with short sale approval prices. View here, here, and here.

The Why And The How

• Fannie Mae holds the majority of serviced and delinquent homes (GSEs and HUD own or insure 90% of all loans). By holding most of the active and shadow inventory Fannie believes they can control the market. To an extent this is true.
• A slow leak of homes while jacking up prices will take less of a hit on their books.
• Nearly all of Fannie Mae properties may be purchased with the HomePath Mortgage. HomePath mortages don’t require an appraisal. The down is less than FHA and there isn’t any mortgage insurance. So a buyer sees an overpriced house that won’t appraise but knows they can get it by using a HomePath mortgage.

Buyers not using HomePath aren’t going to be too happy with these price increases but can you really blame Fannie Mae? They’re leveraging market conditions and inventory to their advantage. Would we berate a normal seller doing this or is it different because tax payer money is involved?

What do you think?

If you have questions about buying or selling a home in Reno or Sparks contact Broker Ricky Beach at (775) 750-1437 or Ricky@Resnv.com

 

 

Better Get Your FHA Loan By April 1st

On April 1st, 2013 FHA will be raising their mortgage insurance premium (MIP) by .1% and requiring it to be paid for the full term of the loan.

View the press release here.

An FHA loan created before April 1st will only require mortgage insurance until the loan is 78% of the original balance (around 7 years of payment).

Let’s see the difference between buying before and after the deadline.

$200,000 Home Before The Deadline

Monthly mortgage insurance: $201.04

7 years of mortgage insurance: ($201.04 x 12) x 7 years (average time)=? $16,887.36

$200,000 Home After The Deadline

Monthly mortgage insurance: $201.04 +.1% premium= $221.14 per month

Only $20 more per month but now let’s add in the full 30 years of payment.

30 years of mortgage insurance: (221.14 x 12) + 30 year payoff= $79,610.40

After deadline mortgage insurance $79,610.40 – Prior to deadline mortgage insurance $16,887.36 = $62,723.04 loss

So what can you do?

Either get your FHA case # prior to April 1st or look at using a 5% down conventional loan that begins with a lower mortgage insurance payment and will fall off after being paid down to 80%.

 

Have questions or want more information on buying or selling in Reno and Sparks contact Broker Ricky Beach at (775) 750-1437 or Ricky@Resnv.com

 

 

Nevada Face of Foreclosure Report For 2013

The Nevada Association of Realtors published the award winning 2013 Face of Foreclosure report for the State of Nevada.

The report provides foreclosure stats, correlating maps to the data, mortgage delinquency information, and resident opinions on the state of foreclosures in Nevada.

It’s a pretty great report except the data is put into congressional, senate, and assembly districts instead of county, city, etc.

I might break down some of the information in the future but there’s too much to dissect right now. To view the full report click on the picture to the right or the link below.

Face of Foreclosure Study

For questions or more information on the Reno housing market and buying or selling a home contact Broker Ricky Beach at (775) 750-1437 or Ricky@Resnv.com

 

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