Gifts we Found in Real Estate News for 2012

Santa will be here in less than a week, but according to National statistics the Real Estate Market has a few gifts to share now!

• The housing recovery is nearly halfway complete, according to Trulia’s Housing Barometer, which in October posted its largest increase since it began tracking recovery 18 months ago. Trulia monitors delinquency and foreclosure rates, existing home sales, and construction starts and compares them with their worst points during the housing crisis and their normal pre-bubble levels. All three indicators showed improvement in October. 
• Housing recovery is the real deal - U.S. builders started construction last month on the most homes and apartments since July 2008, more evidence that the housing recovery is gaining momentum. 
• Housing in recovery, will boost GDP - Housing data released over the past few months clearly shows a market in recovery, according to the MarketPulse report released last month by CoreLogic Inc. CoreLogic estimates housing recovery could boost GDP a quarter-percent in 2012 and a half-percent in 2013. 
• Consumer confidence holds at five-year high - Consumer confidence held at 82.7 in November, marking a five-year high based on the widely followed survey by Thomson Reuters/University of Michigan. 
• Existing home sales jumped 25% in October in Florida. 
• Pending sales, those expected to close within 90 days, but not yet completed shot up 56.7 in October from a year ago. 
• The median sales price increased year to year by 9% to $145K.  
• Florida’s unemployment rate fell to 8.5% reaching the lowest point in nearly four years. 
• Sales of homes priced at 500K and above have jumped more than 40% in the past year.

With all this good news it looks like 2013 is

shaping up to be a very Happy New Year for all!

11 Reasons to List During the Hollidays

1. People who look for a home during the holidays are more serious buyers.

2. Serious buyers have few houses to choose from during the holidays; less competition means more money for you.

3. You may receive more money for your home now, because you have less competition.

4. Throughout the holiday season, you may restrict showings during your personal family events.

5. Houses show better when decorated for the holidays.

6. Buyers have more time to look for a home during the holidays especially during vacations.

7. January is traditionally the biggest transfer month – and you must be on the market to capture those buyers since transferees cannot wait until Spring to buy.

8. By selling now you can have a delayed closing or extended occupancy until the beginning of the following year if you want it.

9. When you sell during the winter you have an opportunity to buy during the spring, when many homes are on the market.

10. You may have fewer actual showings but more qualified and motivated prospects.

11. Some people must buy before the end of the year for tax reasons.

 Hillsborough County Market Trend for October 8, 2012

• Decrease in total active listing inventory with pending sales and sold listings increasing this week in Hillsborough County.
• Days on the Market for pending sales remained steady while Days on the Market decreased slightly for sold listings.
• Total number of Bank Owned, Short Sale and Traditional transactions remained the same from week to week.

Trends indicate a need for more active listings as pending sales and sales remain active in Hillsborough County.

 Sellers: Showings may increase as active inventory declines. 

Buyers: Selection remains limited which could result in competing offers for the same home.

 

 

 

Pasco County Market Trend for October 8, 2012

• Decrease in total active listing inventory with pending sales and sold listings increasing this week in Pasco County.
• Days on the Market for pending sales remained steady while Days on the Market decreased slightly for sold listings.
• Total number of Bank Owned, Short Sale and Traditional transactions remained the same from week to week.

Trends indicate a slowing in active listings but sales remain active in Pasco County.
Sellers: Showings may increase as active inventory declines.
Buyers: Selection remains limited which could result in competing offers for the same home.

 

 

 Pinellas County Market Trend for October 8, 2012

• Current trend indicates a increase in total active listing inventory and sold listings, but a descrease for pending sales in Pinellas County.
• Days on the Market for pending sales increased slightly, but remained the same for sold listings.
• Distribution of Sale Types remained unchanged.

 

Trends indicate no significant change as inventory increased while demand (pending sales) decreased in Pinellas County.

Sellers: Showing activity and offers may remain about the same this week as last.

Buyers: Selection remains limited which could result in competing offers for the same home.

 

 

 

 

 

 

Top Ten Things You Need to Know About the 3.8% Tax

You may have heard rumors about a 3.8% tax on Real Estate. Below is a list of facts provided by the National Association of Realtors pertaining to this tax.

1. When you add up all of your income from every possible source, and that total is less than $200,000 ($250,000 on a joint tax return), you will NOT be subject to this tax.
2. The 3.8% tax will NEVER be collected as a transfer tax on real estate of any type, so you’ll NEVER pay this tax at the time that you purchase a home or other investment property.
3. You’ll NEVER pay this tax at settlement when you sell your home or investment property. Any capital gain you realize at settlement is just one component of that year’s gross income.
4. If you sell your principal residence, you will still receive the full benefit of the $250,000 (single tax return)/$500,000 (married filing joint tax return) exclusion on the sale of that home. If your capital gain is greater than these amounts, then you will include any gain above these amounts as income on your Form 1040 tax return. Even then, if your total income (including this taxable portion of gain on your residence) is less than the $200,000/$250,000 amounts, you will NOT pay this tax. If your total income is more than these amounts, a formula will protect some portion of your investment.
5. The tax applies to other types of investment income, not just real estate. If your income is more than the $200,000/$250,000 amount, then the tax formula will be applied to capital gains, interest income, dividend income and net rents (i.e., rents after expenses).
6. The tax goes into effect in 2013. If you have investment income in 2013, you won’t pay the 3.8% tax until you file your 2013 Form 1040 tax return in 2014. The 3.8% tax for any later year will be paid in the following calendar year when the tax returns are filed.
7. In any particular year, if you have NO income from capital gains, rents, interest or dividends, you’ll NEVER pay this tax, even if you have millions of dollars of other types of income.
8. The formula that determines the amount of 3.8% tax due will ALWAYS protect $200,000 ($250,000 on a joint return) of your income from any burden of the 3.8% tax. For example, if you are single and have a total of $201,000 income, the 3.8% tax would NEVER be imposed on more than $1000.
9. It’s true that investment income from rents on an investment property could be subject to the 3.8% tax. BUT: The only rental income that would be included in your gross income and therefore possibly subject to the tax is net rental income: gross rents minus expenses like depreciation, interest, property tax, maintenance and utilities.
10. The tax was enacted along with the health care legislation in 2010. It was added to the package just hours before the final vote and without review. NAR strongly opposed the tax at the time, and remains hopeful that it will not go into effect. The tax will no doubt be debated during the upcoming tax reform debates in 2013.

 Source: National Association of Realtors  - www.realtor.org



Tampa Bay Area Market Report for October 1, 2012

Hillsborough County Market Trend for October 1, 2012

 

• Current trend indicates a decrease in total active listing inventory, pending sales and sold listings in Hillsborough County.
• Days on the Market for pending sales remained steady while Days on the Market decreased slightly for sold listings.
• Total number of Bank Owned, Short Sale and Traditional transactions remained the same from week to week.

Trends indicate an overall slowing in all areas of Real Estate transactions as we move toward the holiday season in Hillsborough County.

Sellers: Showings may begin to decline, but active buyers will be more serious and may need to act quickly.

Buyers: Selection remains limited which could result in competing offers for the same home.

 Pasco County Market Trend for October 1, 2012

• Current trend indicates a decrease in total active listing inventory, pending sales and sold listings in Pasco County.
• Days on the Market for pending sales decreased slightly while Days on the Market for Solds remained steady. 
• Distribution of Sale Types remained unchanged.

 Trends indicate an overall slowing in all areas of Real Estate transactions as we move toward the holiday season in Pasco County.

Sellers: Showings may begin to decline, but active buyers will be more serious and may need to act quickly.

Buyers: Selection of available homes may be more limited.

 

 Pinellas County Market Trend for October 1, 2012

  

• Current trend indicates a decrease in total active listing inventory, pending sales and sold listings in Pinellas County
• Days on the Market for pending sales and sold listings decreased slightly.
• Distribution of Sale Types remained unchanged.

Trends indicate an overall slowing in all areas of Real Estate transactions as we move toward the holiday season in Pinellas County.

Sellers: Showings may begin to decline, but active buyers will be more serious and may need to act quickly.


Buyers: Selection remains limited which could result in competing offers for the same home.

Tampa Bay Area Market Report for Sept. 24, 2012

Hillsborough County Market Trend for September 24, 2012

• Current trend again indicates a decrease in total active listing inventory in Hillsborough County with pending sales and sold listings continuing to increase.
• Days on the Market for pending sales increased slightly to previous weeks level.
• Total number of Short Sales decreased by 1% while Traditional Sales increased by 1%.

 Trends still indicate a need for additional inventory and show continued demand for homes in Hillsborough County.

Sellers: Less Competition and home may sell more quickly.

Buyers: Less selection available which could result in competing offers for the same home.

 

 

 

Pasco County Market Trend for September 24, 2012

 

• Current trend indicates a decrease in total active listing inventory in Pasco County with pending sales effectively remaining unchanged.
• Sold listings decreased slightly. Days on the Market for pending sales decreased slightly.
• Distribution of Sale Types remained unchanged.

Trends may indicate the start of a change in inventory levels as Active listings and Days on Market decreased in Pasco County.

Sellers: Competition is still high and home may sell more slowly, but improvement may be on the way.

Buyers: More selection available which could result in opportunities for better sales price.

 

Pinellas County Market Trend for September 24, 2012

 

• Current trend indicates an increase in total active listing inventory in Pinellas County with pending sales decreasing, and sold listings increasing accordingly.
• Days on the Market for pending sales and sold listings decreased slightly.
• Distribution of Sale Types remained unchanged.

Trends still indicate a need for additional inventory and show continued demand for homes in Pinellas County as changes in inventory are not statistically significant.

Sellers: Less Competition and home may sell more quickly.

Buyers: Less selection available which could result in competing offers for the same home.

5 Reasons to Use a Real Estate Agent

Working with a true real estate professional comes with a lot of advantages over trying to go it alone. By working with a pro you'll get:

• Someone with Market Knowledge who can help you navigate existing inventory and get you a good deal
• Someone with the industry contacts to help you through a pain free transaction
• To save time! Avoid common newbie mistakes. Plus you'll be able to quickly focus in on properties fitting your unique criteria
• A 3rd Party Buffer when it comes time to negotiate. You won't want too many emotions involved here – having a buffer could make you lots of $$$

Tampa Bay Area Market Report for Sept. 17, 2012

Hillsborough County Market Trend for September 17, 2012

• Current trend indicates a decrease in total active listing inventory in Hillsborough County with pending sales and sold listings continuing to increase.
• Days on the Market for pending sales decreased slightly.
• Distribution of Sale Types remained unchanged.

Trends indicate a need for additional inventory and show continued demand for homes in Hillsborough County.

Sellers: Less Competition and home may sell more quickly.

Buyers: Less selection available which could result in competing offers for the same home.

 

 

Pasco County Market Trend for September 17, 2012

•  Current trend indicates an increase in total active listing inventory in Pasco County with pending sales effectively remaining unchanged. Sold listings decreased slightly.
• Days on the Market for pending sales decreased slightly.
• Distribution of Sale Types remained unchanged.

Trends indicate little change in inventory levels as listings increased but solds decreased in Pasco County.

Sellers: More competition and home may sell more slowly.

Buyers: More selection available which could result in opportunities for better sales price.

 

 

 

Pinellas County Market Trend for September 17, 2012

• Current trend indicates a decrease in total active listing inventory in Pinellas County with pending sales increasing, but sold listings decreasing.
• Days on the Market for pending sales and sold listings increased slightly.
• Distribution of Sale Types remained unchanged.

Trends indicate a need for additional inventory and show continued demand for homes in Pinellas County.
Sellers: Less Competition and home may sell more quickly.
Buyers: Less selection available which could result in competing offers for the same home.

 

Secrets to Selling Your Home for Top Dollar

Today’s buyers have more information available at their fingertips (literally) than ever before. They are more discriminating, sophisticated and skeptical. So what are the secrets to selling your home for top dollar in today’s market?

Get the Facts – Get a Market Overview

It is important to understand what is happening to the Real Estate market on a national level, because this is primarily the information the public hears on a daily basis. This is what your buyers (and most sellers) believe is happening in Real Estate today and you need to understand their perspective.

Next, evaluate the overall picture of your local market (city or town) and how your community compares. While sale prices of homes in your community are most important, you also need to understand your competition and that will include other areas of your local market.

Finally, narrow down the statistics in your neighborhood. This can be critical as appraisers as well as savvy buyer’s agents will use this information when determining value. If there are a high number of distressed sales (bank-owned or short sales) in your community they will most likely be used as comparable sales.

Be sure to use actual facts and statistics from reliable sources. Take into consideration whether home prices and time on the market are going up or down and by how much, as all will be important when pricing your home.

Start at the RIGHT Price

Every seller wants to realize as much money as possible when selling their home and their first inclination is to price their home high, thinking they can always come down in price later.

Statistics show that a listing price that is too high frequently nets the seller LESS money. Buyers are looking for the best price and many have access to view homes in the multiple listing service. They are comparing home prices online and they can see all your competition. They may even come to see your home with the idea of using it to justify the purchase price of a competing home.
 

NAR Profile of Buyers and Sellers 2011

 Since most homes are sold by other agents, you need to attract agent interest. Good agents know their local market and may not show your home if they feel it is priced too high. They may believe you won’t accept a lower offer. Agents only get paid when they close a sale and will try to use their time as efficiently as possible.

The same reasons that make a home sell fast make a home sell for the most money. Your home attracts the most interest from buyers and agents during the first four weeks on the market and then interest begins to wane. Eventually, you will lower your price. When you do get an offer it will most likely be below your current asking price.

Appraisals can also be a consideration so price your home on value, not cost. Keep in mind that it is unlikely you will get a dollar for dollar return on home improvements. What you would like to net from the sale is not a consideration to the appraiser. If your home is under contract and it doesn’t appraise, you and the buyer may have to renegotiate the sales price in order to close on the home. This can be extremely stressful for all parties.

The REAL value of your home is what a buyer is willing to pay for it, and what you will accept. Also keep in mind that if interest rates rise by a point, people who could otherwise afford your home may no longer be qualified.

Maximum Exposure Marketing

Almost 90% of buyers begin their search for a home online. Buyers will spend three months or more searching online before contacting an agent. To get top dollar for your home, you need top notch ONLINE MARKETING.

All homes that are listed in local multiple listing services will show online at Realtor.com. That means all agents can say that they will list your home online. It is the details that count. Ask specifically what type of online marketing your agent will use.

Photos, Virtual Tours and maximum exposure is what will get your home noticed. When interviewing agents ask how many photos will they post, how many sites will show your home, will they use Facebook, Twitter, LinkedIn and Craig’s List to showcase your home? How large is their database? Ask to see samples of listing descriptions, photos and virtual tours. Marketing is the primary job of your listing agent so be sure you are getting cutting edge marketing!

 

Prepare Your Home to Show and Sell 



Clean and Uncluttered



First impressions are everything. With online marketing, buyers are not only getting to see the curb appeal of your home before they decide to see your home, they should be getting the full tour online.

 

Before listing your home, try looking at your home through the eyes of a buyer. How does the home present from the street? What about when you walk up to the home? Does the yard look neat and tidy? Does the paint look fresh? Once inside the home, how does the home smell? Does it look clean and uncluttered?

The Way You Live In A Home, And The Way You SELL A Home

Are TWO Very Different Things!

When you’re showcasing your home for sale, it should look very different from the way it looks when you’re living there. Here are a few suggestions for preparing your home for sale and showings:

Pack as much as you can now -  Get rid of excess furniture, put away unused items and make your home neat and orderly. If you’ve ever visited a model home, you’ll notice it’s clean and uncluttered. Packing early not only helps the buyer visualize themselves living in the home but also helps you emotionally prepare to move out. Less clutter and furniture also makes the home show larger.

Consider having your home professionally cleaned - Cleaning and cosmetic repairs, especially in well used areas (kitchen and baths) can yield you extra dollars. Professional window cleaning is one of the most overlooked items that can really make your home shine during showings especially if you have exceptional views.

Check for odors - A time tested smell that is helpful when selling a home is the smell of fresh baked bread or cookies. A plate of cookies with a note to buyers to indulge is a nice touch used by some sellers. While there are many commercial home scent products, some buyers may have allergies that can be bothered by strong smells.

Pets should be out of sight (and smell!) - Some people are uneasy around pets. Pets and/or their odor may distract attention from the features of your home.

Pay attention to lighting - Leave all lights on for showings and during the day, open all your blinds and curtains. The few pennies it will cost you per day to leave the lights on will be worth a quick sale at a higher price.

Turn off distractions during showings - When showing your home, turn off all appliances, television, radio and anything that will distract attention from your home. Some agents recommend leaving soft music playing during showings, but be cautious of radio stations where the programming might change unexpectedly.

Make your home an easy show - Try to be as accommodating as possible with showings. You will get “poptarts” (short notice showing requests), late comers and no shows from time to time. All the more reason to sell your home quickly and be done with showings!

Use the “basket” trick - A great tip for quick pick-up, for short notice showings, is to keep an old laundry basket in the hall closet. When you receive a call for a showing, grab the basket walk through your home tossing any items that you need to get out of the way quickly into the basket. You can even make this into a game for your kids!

Don’t show your home - As much as you might like to do otherwise, please don’t stay in the home for showings and especially don’t follow people around when they are looking at your home. This makes buyers very uncomfortable and they will get out as fast as possible. If you can’t leave the home sitting outside or taking the kids/dog for a walk is a great option.

Negotiate the Best Deal

In today’s market some buyers are still making ridiculously low offers so I tell sellers to expect them. I ask them to remember not to consider a low offer an insult, but to think of it as a starting point for negotiations.

Let your Realtor help guide you. They should explain the positives and negatives of an offer and help you set the emotion aside in order to make an informed decision. You should review the sold comparables to see if the offer is reasonable and to help justify a counter offer.

In most cases the less motivated party will get the better deal. You need a Realtor who knows how to negotiate and will not disclose your motivation to the buyer’s agent without your permission. You also want an agent who will try to get the most information about the buyer’s motivation. You and the buyer will be emotionally attached to the outcome, but the agent’s job is to take the emotion out and help facilitate a price that is acceptable to you both.

 

Use a Great Closing Agent

Once you’ve contracted for the sale of your home there will still be obstacles along the way. The home inspection and appraisal can be challenging, but a great Realtor will help make the process as pain-free as possible. The final phase will be the actual closing of the sale.

In Florida most closings are handled by title companies. Your agent should have title companies they can recommend. If you do call around and find lower fees, I recommend going back to the title companies your agent recommended, discuss the fees you found and ask them to match them. If your Realtor has recommended them, they have probably worked with them in the past and are confident in their abilities. In-house title services are great for you and your agent as they can easily get status of your file at any time.

I hope you found these secrets to selling your home for top dollar helpful and that they

will help you sell your home quickly and with as little stress as possible! Happy Selling!

Top Three Factors When Selling Your Home

There are many factors that impact how long it takes to sell your home, but in my opinion the top three are: Condition, Price and Marketing.

CONDITION

Which Would You Choose?
Before Yard Clean-Up

In today’s market, condition and presentation greatly impact how long it will take to sell your home. The fact is Buyers want the best value for their dollar. Today with almost 90% of Buyers starting their search online it is easier than ever for them to compare your home to other homes without ever getting in a car. Before Buyers began using the internet they had to depend on their agent’s recommendation and curb appeal to decide whether to see your home. Now they will decide while sitting in their pajamas in the comfort of their home.



Which Would You Choose?
After Yard Clean-Up

If you home looks clean and uncluttered in the online photos you have a much better chance of your home being shown. Even if your home has dated kitchen and baths, removing wallpaper and painting with neutral colors can make a huge difference!

Be sure your agent reviews his online photos and description with you and that they present your home in the best light possible (Please make sure there are no bathroom photos of just the toilet with the seat up! Really, we see these photos every day!).

I’ve seen beautiful homes with terrible online photos and ugly homes that look great online. Good online marketing will help get you more showings and a faster offer.

PRICE

Given the ups and downs of the market in the last few years price seems to be everyone’s primary concern. Buyers are afraid they are paying too much and that the market may begin another decline and Sellers are worried they are giving their home away and that the market might return to previous levels. I’ve been known to bring out a crystal ball on listing appointments when asked where the market is heading! The real answer is we just don’t know. As professionals, we can predict based on current market statistics and trends and offer our best advice.

Pricing at or just below market value can result in a quick offer and might even result in multiple offers. If multiple offers are received, a good strategy is to inform all buyers that you have received multiple offers and ask everyone to present their highest and best offer. I have used this strategy to get offers above asking price and to insure my seller received top dollar for their home.

MARKETING

Sellers control Condition and Price, but Marketing is the primary job of your agent. Your agent should provide you with their marketing plan when you meet to discuss listing the home. Because almost 90% of homebuyers begin their search online, it is important to use an agent who focuses on online marketing. The minimum any agent can do to market your home is to list the home in the multiple listing service (MLS) with the one required photo and place a for sale sign in the front yard. I can’t stress enough how important it is to be sure your agent provides you with a copy of your listing from MLS for your review. Review the description and photos and request a virtual tour as these are what online buyers will use to decide whether to come see your home. You shouldn’t need to ask, but don’t hesitate as this is the service you deserve!

There are many other factors involved in selling your home, but if condition, price and marketing are done correctly you should be well on your way to a quick home sale!



How to Sell Your Home Fast!

Selling your home fast doesn’t have to be an impossible endeavor. In fact, even in today’s market you can still command a very reasonable price on your home within 90 days or less. And if you follow some proven steps that we’ll outline below, your turn around time could be much faster than expected. There may be various reasons that you want to get your home off the market as quickly as possible, but these principles we offer here can work in nearly every situation. So let’s dive in on some basic strategies that you can implement today to gain the most favorable results:

Stage Your Home Properly

This is one area where it may make sense to hire professional help. Regardless, do your homework and take the time to find out exactly what can be done to make your property more marketable. For example, be sure to strip away any of that stuff on the walls or being used as decorations that is personal. Also, place something of interest in each room that draws buyers in. Additionally, people want to be able to picture themselves living in your space and visualizing where their own possessions will go. So you need to clear out space and remove clutter, especially from public areas and closet spaces. In fact, it is said that at least a 1/3 of your own items should be placed somewhere else other then the home you are trying to sell. Finally, maximize the use of lighting and make sure the house is spotless. Most importantly, this goes for the kitchen and bathroom spaces which tend to endure a lot of wear and tear. Patch any areas that need touch ups with some spackle, paint and caulk.

Cut That Price

If you’re in a situation where you are moving for example, and want to be rid of your property ASAP, then consider starting your listing price at about 10% below its estimated value. It’s better to start a little lower up front if you want to attract the attention of buyers and get quick offers. This can also work much more effectively then dropping the price incrementally overtime. In fact, the latter can even be harmful, because it may create the perception that nobody wants your property. So make your listing competitive and be ready to entertain some early offers.

Do Your Research

People like things in writing. Therefore, spend a little extra money to get an appraisal and inspection ahead of time, which you can offer at each showing. This will build confidence with your buyers, since you will be providing the hard facts up front and you will show there is nothing to hide. If you want to go the extra mile, you can even include receipts and/or documentation of repairs done on the home, as well as any new appliances that may have been purchased. Your agent may also want to include information and statistics on the neighborhood as well.

Hire A Real Estate Agent With Proven Results

Did you know that about the top 10% of agents produce 90% of the results? Therefore, why hire a Realtor that can’t follow through on their commitment to sell, especially when time matters most? You need a team to work on your side that knows your market and can command the best price for your home in a short period. Also, it is vital that your agent has expertise in marketing your home both with traditional methods and using online strategies for maximum exposure. Because information travels so quickly on the internet, it is crucial that you have property tours, videos, listing information, etc. submitted to all the top traffic producing sites. This will attract a high amount of responses and will help the word to travel quickly. Thus, allow us to prove our ability to help you sell within the next 90 days or less by calling us today. During our private consultation, we will show you quantifiable results along with a comprehensive marketing process that has helped other homeowners just like you get the results they desired. We look forward to earning your business!

What Do Low Mortgage Rates Mean to Sellers?

We often hear about low mortgage rates, but what does that really mean to you? If you are not in the market for buying a home you probably don't think twice about rates. If you are a seller mortgage rates can be as important to you as they are to a buyer.

Freddie Mac's weekly Mortgage Market Survey reported the following averages last week: 

• 30-year fixed-rate mortgages: averaged 3.55 percent, with an average 0.7 point, dropping from last week’s 3.59 percent average. A year ago at this time, 30-year rates averaged 4.12 percent.
• 15-year fixed-rate mortgages: averaged 2.86 percent, with an average 0.6 point, holding steady from last week’s average. A year ago, 15-year rates averaged 3.33 percent.
• 5-year adjustable-rate mortgages: averaged 2.75 percent, with an average 0.7 point, dropping from last week’s 2.78 percent average. Last year at this time, 5-year ARMs averaged 2.96 percent.
• 1-year ARMs: averaged 2.61 percent, with an average 0.4 point, falling from last week’s 2.63 percent average. A year ago, 1-year ARMs averaged 2.84 percent.

When a buyer starts the home buying process the first thing they do is get pre-qualified for a mortgage. The difference in monthly principal and interest on a 30 year mortgage between a 3.55% rate and a 5.55% rate is approximately $238.00 per month. That means a buyer that was pre-qualifed to buy a home for $200,000 at 3.55% can now only buy a home valued at about $158,000 at a rate of 5.55%.

The advantages for a buyer are obvious, but for a seller higher rates can mean a lower number of qualified buyers for your home. Less buyers can mean less competition, a lower sales price and longer days on market.

Low interest rates aren't just great for buyers, they increase opporunities for sellers too! 

Are Tampa Homes Selling Faster?

According to a recent survey by The National Association of Realtors, national home sales are quickening and we are moving more toward a balanced market. Realtors consider a balanced market one in which we have a 5-6 month supply of inventory of homes for sale.

According to statistics pulled from the Multiple Listing Service (MLS) this morning the Tampa Bay areas is not a balanced market. We have a 3.08 month supply in Hillsborough County and Pasco and Pinellas Counties are at a 4.6 and 4.1 supply of homes respectively.

This short supply of homes for sale indicates a seller’s market. Usually a seller’s market includes rising sale prices due to competition for homes that are in short supply. While prices are moving up, it’s not yet the rapid pace we’ve seen in the past. New listings that are in good condition and are priced right are selling very quickly, many times with multiple offers.

I recently re-listed a bank approved short sale (typically slower to contract, but this one was in GREAT condition) at $190,000. After three days, we had three offers, all above asking price.

If your home is listed for sale and your home has not gone under contract within 2-3 months, there are only three reasons why your home has not sold; Marketing, Price and Condition.

If you have not seen a copy of how your home is listed in MLS, request a copy. Be sure there is a great description of the features of your home, 12 photos (max allowed) and a virtual tour. Check your home at Realtor.com and be sure the description, photos and tour are showing up there as well. This is the primary job of your listing agent!

Price and Condition are in your control. If you are unable to clean and repair your home, understand that your offer prices will be lower than average. Price overcomes all obstacles, so if your home is in great condition and marketed well, price needs to be adjusted. Ask your agent to pull sold comparables and review them with you to help you determine the price that is right for your home. Previewing other homes listed in the area can help too.

The Days on Market for Solds as compared to Pending Sales in all three counties has descreased which is also an indication that homes are selling more quickly.

The statistics show that Homes in the Tampa Bay area are selling fast if Marketing, Price and Condition are right!

Is the Housing Market Improving?

According to the infographic below, both new home sales and resales are

 improving nationwide and the improvement is predicted to continue!

That is great news for many homeowners who have been waiting for the market to improve.

Only time will tell!