Prices to bottom : 10 Things to Know About Real Estate in 2010 - US News

Prices to bottom : 10 Things to Know About Real Estate in 2010 - US News & World Report

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Foreclosures trend down for fourth straight month - Austin Business Journal:

Foreclosures trend down for fourth straight month - Austin Business Journal:

Mortgage rates inch up in U.S., TX - Austin Business Journal:

Mortgage rates inch up in U.S., TX - Austin Business Journal:

Will Bank Execs Repay Favor to American Taxpayers?

Obama Presses Bank Chiefs to Lend More
The heads of the largest U.S. banks will meet with President Obama on Dec. 14 to discuss the decline in lending over the past five quarters and the need for financial reform legislation.

Obama has called the top bankers to the White House because he wants the banking industry, which has lobbied heavily against more oversight, to lend more.

The administration says banking executives should show proper gratitude for its efforts to help rescue the industry, which has tapped public aid to return to profitability.

Source: Washington Post, Binyamin Appelbaum (12/14/09)

Washington Report: FHA Condo Rules

The Federal Housing Administration puts its long-awaited new financing rules for condominium units into operation last week -- immediately affecting sales in hundreds of condo projects across the country. Among the key make-or-break rules that condo marketers, buyers, lender and realty agents now need to know about are the following: FHA won't insure mortgages in buildings or complexes where less than 30 percent of the units haven't already been sold. At least 50 percent of the units in a project must be owner-occupied or sold to purchasers who intend to occupy them. No individual owner or investor can hold title to more than 10 percent of the units in the entire project. No more than 25 percent of the square footage of a condo project can be non-residential -- in other words, used for commercial purposes. No more than 50 percent of the units can have FHA insured financing on them. FHA doesn't want to “concentrate its risk” in any single project. No more than 15 percent of the units in a project can be 30 days or more delinquent on their monthly payments to the condo association. Although some developers and in urban areas welcomed the new rules, industry critics say they will actually curtail the availability of low-downpayment FHA financing for many individual buyers. Others say some of the percentage thresholds are off the mark. For example, Phil Sutcliffe, a national condo financing expert based outside Philadelphia, says he recently had to turn down two condo projects that sought FHA financing - even though both were more than 50 percent owner occupied and pre-sold. The reason: The developers had chosen to rent out more than 10 percent of the unsold units to generate cash flow. But by doing so, Sutcliffe said, they crossed the “single owner” maximum, thereby denying future FHA financing to all remaining units in the building. “It just makes no sense in this situation,” he said. With no FHA loans available to potential purchasers, “the owners may have to hand back the keys to the bank.” Andrew Fortin, vice president for government affairs at the Community Associations Institute, which represents condominium, cooperative and planned unit developments across the country, told Realty Times that the 25 percent commercial-use cutoff is “problematic” because many projects have been designed for “mixed use” in urban areas. Fortin's group also is critical of the new 15 percent delinquency ratio on association dues. Not only is a 30-day delinquency measure “a very arbitrary standard,” he said, but it's also not a good indicator of the association's underlying financial health. Source: RealtyTimes; by Kenneth R. Harney

Tips for Selling a Home in Austin

Selling your home can be a huge undertaking, especially if it is your first time. A REALTOR® will help you through the process of putting your property on the market and finding the best buyer. REALTORS® provide guidance and advice on how to sell your home quickly and for a great price. If you are ready to sell, the following tips will start you in the right direction. Take off your rose-colored glasses If you have lived in your home for several years, it may be difficult to look at the property with an objective eye. Your REALTOR® can suggest upgrades to increase the value of your Austin real estate and make it appealing to the widest range buyers. For simple ways to increase the value of your home, click here. The “three golden rules” of real estate Homes that sell quickly at or above their market value usually have three things in common: great location, great condition and a great price. Keep reading to learn more about what buyers evaluate when they consider homes in Austin. Location - Buyers look for homes in locations that best suit their lifestyles. They may consider how many parks or schools are located near your property, or they may ask about the history, population and demographics of your neighborhood. A REALTOR® can answer these questions easily and inform buyers or buyers’ agents of all location details. Condition - Your REALTOR® can form a plan to improve your home’s condition, which will attract more buyers and allow you to sell your home for a higher price. Such a plan may include making repairs and changing the functionality of some rooms to make your home more appealing to buyers. It is wise to make the renovations recommended by your REALTOR® before putting your Austin home on the market. Failing to make these upgrades or waiting too long to make changes means you could miss out on potential buyers. If you cannot afford everything your REALTOR® suggests, ask him or her to recommend ways to get your home buyer-ready without blowing your budget. Price - Sellers who put their homes on the market without a REALTOR®’S guidance typically price their property unrealistically and have difficulty making the sale. Be sure to work with a REALTOR® who understands the current state of the Austin real estate market and is aware of prices for homes of similar value. Pricing a home correctly at the start eliminates the need for you to reduce your asking price and increases the likelihood that your home will be sold. Make a great first impression From the moment potential buyers arrive at your home, they are evaluating everything from sights to smells to sounds. It is usually small details like a recently vacuumed floor, clean windows and the scent of fresh flowers that really impress buyers. Some REALTORS® may work with home stagers to present your house in the best light, while others may help by creating a list of reminders for you to check off daily to ensure your home is clean and comfortable when buyers walk through the door. Communication is key Be open with your REALTOR®. The more information he or she has regarding your needs and goals during the selling process, the better he or she can serve you. Tell your REALTOR® your motivation for selling and what your ideal time frame is for moving out. Ask him or her what options there are for preparing your home for show, and be honest about what you are willing to do. It is also a good idea for you and your REALTOR® to write down your selling strategy to avoid confusion. source: Austin Board of Realtors