In glomming on to positive news don’t forget to remember your basic math. Median prices have been going up in some areas, down in others. The median is the value that occurs in the middle of everything that has sold. For example, if seven apples have sold for $1, $1.25, $1.5, $1.5, $1.5, $1.75 and $2. The median price would be $1.5. The median value is the middle price, it does not represent the size, quality or type of apple.

In real estate it is important to remember that the median sales price represents the average price of what homes are selling for in a given area. It is not representing the size, condition or value of a home. The median sales price can be offset by foreclosure property that is selling in an area as well as by luxury property that is selling in an area.

The best way to determine the value of your real estate is to get it analyzed by and experienced real estate professional. There are many factors in determining real estate values today and picking an average out of the air could hinder the sale of your home. In today’s real estate market it is more important than ever to price your home appropriately.

Thats right, Cindy, Bruce, Geri, Michael and I have taken the training necessary to become CDPE’s – Certified Distressed Property Experts. This means we have become well versed in short sales – or selling a home for less than what is owed to the bank – as this has become more and more commonplace in today’s market. In fact, on a national level some 51% of all sales in September were distressed sales, and in badly hurt markets such as Florida, Nevada and Arizona its as much as 90%.  I felt we needed to become very knowledgeable about such sales and we now have the proven skillset to ensure these sales go through with the least hassles possible to all parties involved. There are very few agents in Phoenixwho have taken this voluntary extra training, and I am proud of us doing so. If you know of anyone in trouble with their house, please have them contact me. Did you know over 50% of all foreclosures have no visible means of intervention? A persons credit can be saved with a short sale vs. a foreclosure and you would be able to buy another house in as little as two years vs. five plus with a foreclosure.

WE CAN HELP !

It's a great time to invest in luxury real estate

The news is more and more positive across the Country, home prices have risen for three straight months and the number of sales have increased for four straight months.  Great news?  Any positive news is great after the real estate market our Nation has been weathering.  However, real estate values are hardly skyrocketing and, while increasing, sales volume is hardly knocking homes off the shelf.

It is a buyers’ market, there is no doubt about it and the buyers getting the best deal are those buying luxury real estate.  Luxury homes have had the biggest drops in pricing and for those with deep pockets the savings can be tremendous.

A recent article in the Wall Street Journal points out the significant drop in price among luxury real estate.  Data is showing that while mainstream home prices are stabilizing, luxury real estate, homes selling for $2 million or more, are dropping their asking prices an average of 14%.  The article states, “Bottom line: At the high end, it’s a good time to be shopping for that dream home.”

If you have been dreaming of luxury real estate and have the money, this could be the time to make your dream come true.
Click here to visit the Wall Street Journal article “Seeking Real Estate Bargains? Try Looking at the High End”.

If you decide to purchase a home by December 1, 2009, you will be entitled to an $8,000 tax credit. This amendment to the economic stimulus bill will be available to if you purchase your first home between 1/1/2009 and 12/1/2009. Home buyers will be entitled to claim a total tax credit of $8,000 or 10% of the purchase price, whichever is less.  To avoid possible abuse of this credit, it is only allowed for your primary residence and will only have to be re-paid if said house is sold within two years of purchase. Keep in mind that you must close on or before December 1, 2009 to be eligible for the credit. Most closings take about sixty days, so with that in mind you must go under contract by October 2nd, 2009 – this gives you seventy-three days from today to find your first home. If you manage to meet these deadlines, all you have to do to claim your credit is fill out I.R.S. Form 5405.

For more information about this credit go to the IRS website.

Home prices rose in 18 of the 20 cities that are part of Standard & Poor’s Case-Shiller Index. It was the first quarterly increase in three years, providing a glimmer of hope that the housing market is beginning to make a recovery.

After three years of declines, home prices rose 2.9 percent in the quarter ended June 30, according to the report.

Las Vegas and Detroit, hit hard by the housing crisis and high unemployment, were the only two cities where prices continued to fall.

Cleveland, with a 4.2 percent gain in home prices between May and June, and San Francisco, with a 3.8 percent gain, were among those cities to realize the most gain.

Prices in the Miami metropolitan area rose 0.5 percent between May and June, improved from a 0.8 percent drop between April and May. However, year-over-year prices in the Miami area were down 23.4 percent.

“For the second month in a row, we’re seeing some positive signs,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s, in a news release.

As of the second quarter, average home prices across the U.S. are at similar levels to what they were in early 2003. However, from the peak in the second quarter of 2006, average home prices are down 30.2 percent.    

http://bit.ly/kI9an

Real Estate values and sales seem to be on the rise

The Clear Capital Report sees home prices rise across the country when analyzing quarterly results.  The report sees home value gains in all regions of the country, averaging out to 5%, with the Midwest gaining the most at 11.2%.  The real estate improvements are linked with summer being a buying season, increased investment opportunity and the previous large drop in home values.

The second quarter of 2009 followed a period of extremely low real estate activity, couple that with tax incentives, low mortgage rates and reduced home values, and the evidence of a true buyer’s market became omnipresent.  Acquiring a mortgage is probably still the most difficult part of the home buying process but money is strating to loosen.  Increased sales volume indicates an improvement in the real estate sector, a welcome sign for a beleaguered economy.

For a complete look at the Clear Capital report click here.

There is no doubt that the first time home buyer tax credit is a great thing but there are a few things to know before you assume that you qualify for the full $8,000.  The tax credit breaks down as follows:
Who qualifies? First time home buyers and people (or spouses) who have not owned a home for the previous 3 years.  You must purchase your home between January 1, 2009 and December 1, 2009.

• What qualifies for the first time home buyer’s tax credit? Only a primary house qualifies.  It does not matter if it is a single family home, duplex, townhome, condo, apartment or co-op, if it is a primary residence it will apply.

• What is the amount of the first time home buyer’s tax credit? $8,000 is the maximum amount of the credit.  There are 2 factors at play when it comes to getting the credit: The cost of the home and the income of the person or married couple purchasing the home.  The credit can be 10% of the closing price up to $8,000 or a person making $75,000 or less or a married couple making $150,000 or less are eligible for the full $8,000.

• Do you qualify for the first time home buyer’s tax credit if your income is higher? Yes and no.  If you make more than the $75,000/$150,000 limit you get less of a credit.  The maximum income is $95,000 for singles or $170,000 for couples.  If you make more than the maximum income you are not eligible for the tax credit.

The tax credit is a real boon for first time home buyers and does not have to be repaid.  If you qualify for the tax credit and have been considering purchasing a new home there could not be a better time.  Low interest rates, low home values and the first time home buyer tax credit all add up to the right time to call an experienced local Realtor.

Resource and for more information: Realtor.org

If you currently are in a situation where you must sell your home and you owe more on your home than what it is worth to sell, a short sale can be a very good solution to your problem. Many myths have evolved over time, but understanding the reality is a way to help yourself. Seven short sale myths are:

1. Short sales are impossible and never get approved. It is true that short sales are more difficult but they are not impossible. A Certified Distressed Property Expert has extensive training to help homeowners in distress.
2. Banks Don’t Accept Short Sales. In reality, banks are doing whatever they can to avoid a foreclosure.
3. You must be behind on your mortgage to negotiate a short sale. Many lenders today focus on verifiable hardship, monthly cash flow shortfall and insolvency – not just people in default.
4. Buyers Avoid Short Sales. Many agents report that buyers call them looking for short sales. Short sales are becoming synonymous with a “good deal”, specifically with international buyers.
5. Listing your home as a short sale is embarrassing. Recent estimates state that 1 out of 5 homeowners in the U.S. is in this situation. You are not alone!
6. Banks prefer to foreclose. Banks do NOT want to foreclose. Banks, investors and the federal government have all publicly stated that if a person qualifies for a short sale, then the deal needs to be considered.
7. There is not enough time to negotiate a short sale before my foreclosure. Many lenders today will stall a foreclosure up to the final day of the process, with a legitimate contract.

For more information about short sales go to About website.

Blend of information and member services provide marked improvements in short sale transactions.

AUSTIN, TEXAS – June 16, 2009 – Certified Distressed Property Experts (CDPEs) have reported a 49 percent decrease in the average time to complete a short sale after achieving the CDPE Designation, according to a new survey from the Distressed Property Institute. Before becoming a CDPE, the average time for these agents to close a short sale was 53.01 days, compared to 27.26 days after becoming a CDPE.

“No other real estate designation in the country can claim these results,” said Alex Charfen, co-founder and CEO of the Institute. “CDPEs are making a clear and definable difference in the real estate market by assisting distressed homeowners to stay in their homes or, when this is not possible, by helping them sell through a short sale.”

A short sale occurs when the lender accepts the selling price of the home, even if that is less than the mortgage balance. Recently announced program extensions of the government’s Making Home Affordable Program have supported short sales as an option to be considered for distressed homeowners.

“Long timeframes and the lack of success in closing deals are the top complaints among all parties involved in short sales,” Charfen said. “We’ve now shown that our systems and processes for real estate agents are proven to close these transactions more rapidly and help solve this issue.”

“This shortened timeframe will increase the amount of properties that sell, therefore decreasing the amount of homes being lost to foreclosure,” Charfen continued.

The survey also found that CDPEs have been able to keep distressed homeowners in their homes more than twice as often as lose a property to foreclosure. Among respondents, the average number of clients they had helped to keep their homes was 1.84, as opposed to 0.82 being lost to foreclosure.

“In these instances, there is no promise of income to the agent,” Charfen said. “This statistic shows how CDPEs are living the message of putting homeowners first, and creating success while doing it.”

Other key survey findings among CDPE-designated agents include:
• 40 percent of their active listings are distressed properties.
• Distressed properties comprised 41 percent of their sell-side transactions completed over the past 12 months. When looking at 2009, this percentage increases to 46 percent.
• For their buyer-side transactions over the past 12 months, 42 percent were distressed properties. In 2009, this percentage jumps to 56 percent.
• Over time, as part of the CDPE membership organization, CDPEs have continued success closing short sales. Agents who have been CDPEs for 11 or more months have closed an average of 10.72 short sale transactions.

“As banks and the Obama administration continue their efforts to solve the foreclosure crisis in America, CDPEs are on the ground, working with these new plans and regulations, striving to make a real difference to distressed homeowners nationwide,” Charfen said.

The Distressed Property Institute conducted the National CDPE Member Survey between June 3 and 12, 2009. Of the 7,972 members polled, 876 responded representing an 11 percent response rate.
About the Distressed Property Institute, LLC
The Distressed Property Institute trains real estate professionals to engage with and assist homeowners facing hardships. The Institute has developed a curriculum to provide the tools and knowledge to handle distressed properties, including short sales, deeds-in-lieu, mortgage modifications, forbearance, refinances, reinstatements and, if that fails, how to help homeowners through the foreclosure process. After completing a comprehensive on-site or online course, graduates are awarded the Certified Distressed Property Expert® (CDPE) Designation.

About the CDPE Designation
The CDPE Designation provides real estate industry professionals with detailed information on how to engage with and assist homeowners in distress. With more than 7,500 professionals trained across the United States, the CDPE is one of the fastest growing designations in real estate industry history. The CDPE designation has been endorsed by RE/MAX International and other major U.S. brokerages and industry icons, including: Dave Liniger, chairman and co-founder of RE/MAX; Howard Brinton, founder of STAR POWER® Systems; Bob Corcoran, founder of Corcoran Coaching and Consulting; Brian Buffini, founder of Buffini and Company; and David Knox, founder of Knox Productions.

For more information about The Distressed Property Institute and the CDPE Designation, visit www.cdpe.com.

Media:
Adam Pedowitz
512.745.4971
adam@cdpe.com 

Jennifer Wezensky
269.274.4071
jennifer@jwpublicrelations.com

Highest Crime Cities…is there a Correlation to Real Estate?<O</O

The Congressional Quarterly Press just put out its “most dangerous cities” list for the past year. <ST1New Orleans</ST1 is in the number one spot. In 2007, Detroit had the lead, but now we’ve noticed some competition from <ST1New Orleans</ST1 Misfortune begets crime. We’ve seen a marked increase in crime in our foreclosure hotspots. I mention this list after learning that there is a statistical increase in crime of over 2% that comes with each 1% increase in foreclosures in a neighborhood. Is anyone paying attention to this correlation? With such a wave of distressed housing across the <ST1US</ST1, what will happen to our crime rates, and do you expect to see any new names on this list next year?

Top 10 Most Dangerous Cities in America 2008

1. <ST1New Orleans
   
2. <ST1Camden
   
3. Detroit
   
4. </ST1<ST1St. Louis</ST1
   
5. <ST1Oakland
   
6. </ST1<ST1Flint, Mich.</ST1
   
7. <ST1Gary, Ind.</ST1
   
8. <ST1Birmingham, Ala.</ST1
   
9. <ST1Richmond, Calif.
   
10. </ST1<ST1North Charleston