When’s the best time to sell my house fast in Garland?

You might be considering selling your Garland house, especially with everything going on. And right now is an ideal time to sell your home. In this article, we’ll share some stats and tips to help you sell your Garland house quickly.

Should I fix my house up or sell it as is?

Many homeowners do not have adequate funds to fix up their house.  Therefore, they want to sell their house ‘as-is.’  Often, that could be a great decision.  You don’t have to worry about repairs and the person who buys your home gets to put their special touch on the home.

Think about this, what if you decide to tile your bathroom and color your walls red. Buyers come through and immediately see the color red, and it envokes a more angry tone, and then the bathroom isn’t an attractive bathroom tile….you have a loss of potential selling. This is why it is a good idea sometimes to sell your house “as-is.”

What about the money?  Well, honestly, if you sell to the right group of people, you can actually come out ahead.  They take on the TIME of the repairs.  Think about how many months it takes to repair all the little things in your house.  If you sell directly, like I Help People Real Estate, we can offer an all cash fair offer and close quickly.

If you sell as is, you have the opportunity to move on your time frame, without having an agent go back and forth telling you all the things the new owners want you to fix.  Ultimately, you speed up the process and when you take into consideration the fees involved with using an agent, and the time to sell, and the time to fix your house, you could come out way ahead in the long run.

 

Is 2020 a good time to sell my house?

With interest rates being at an all time low, this could be the ideal time to sell you house.  If you do not plan to sell you house, this may be the ideal time to refinance your house and use the extra money to invest in the new market that is being creative. (If you’d like to talk more about this, please contact one of our specialist and we will help you set a path for your success.)

Let’s take a moment and look at the stats about selling your Garland house in 2020.

According, Yahoo Finance, “2020 might be the best time to put your house on the market.” Analysts have been saying that anyone on the fence about selling should definitely look at the possibilities of selling your home and move into a house that fits your ideal situation.

Here’s a few reasons Yahoo Finance says you should sell your house in 2020: https://finance.yahoo.com/news/why-sell-home-2020-144908730.html

  • New buyers are still entering the market.
  • Interest rates are expected to remain low
  • The housing inventory is LOW in Garland.

If inventory is low, that means you have less competition and your house will likely sell faster.  If the interest rates are low, you can get into a new house with lower payments.  Especially if you have taken a forbearance because you will need to make additional payment soon, and if you can sell your current house, the payment will be taken care of by the buyer.

 

What is the best time to sell my house, specifically for Garland, Texas?

Look at this graph below from HomeLight.  You can quickly see that over time, the summer months tend to be a great time to sell your house.  That does not mean it will not sell at others times, you just need to be aware of these trends.  We may, however, find that 2020 shifts the whole dynamics.

Source: (https://www.homelight.com/best-time-to-sell-house/garland-tx)

One of the other things to note is the days on market.  Again, days on market are best between May and September (RIGHT NOW!).  In Garland for 2020, the housing market seems to be doing really well.  There are a lot of people selling and there are buyers waiting to buy.  Of course, you can contact us and you won’t have to deal with an agent and we will give you a fair offer, close quickly, and on your schedule.

If you are considering selling your house, don’t wait.  Now is the best time to sell your house. An old proverb says, “the best time to plant a tree is 20 years ago, the second best time is now.”  And, if you are reading this article, there is a good chance you are ready to sell your house fast, ‘as is.’

If you are asking, “Should I sell my house fast in Garland?” We’d love to talk to you about your situation and help you have a fast solution to sell your Garland home quickly.  Just give us a call 972-885-8435.

We buy houses in Garland in the following zipcodes: 75040, 75041, 75042, 75043, 75044, 75048, 75082, 75089

Call us for a fast quick cash offer at 972-885-8435.

Should I sell my Mesquite house in 2020?

Lot’s of people are wondering if they should sell their home in 2020 with all the crazy stuff going on.  If you are in Mesquite, TX, this may be one of the best times to sell your house fast.  In this article, we are going to share some tips and stats to help you make a wise decision to sell your house quickly.

Should I fix my house up or sell it as is?

Many homeowners do not have adequate funds to fix up their house.  Therefore, they want to sell their house ‘as-is.’  Often, that could be a great decision.  You don’t have to worry about repairs and the person who buys your home gets to put their special touch on the home.

Think about this, if you repaint your walls to be that special tan color you love, what if the next home owner used to live in Arizona and hates tan.  Maybe, they want blue walls, and immediately you’ve lost a great potential to sell your home.  Not to mention how much money you spent on repainting, and all the time, and hassle of having it done while you are trying to live in the house.

What about the money?  Well, honestly, if you sell to the right group of people, you can actually come out ahead.  They take on the TIME of the repairs.  Think about how many months it takes to repair all the little things in your house.  If you sell directly, like I Help People Real Estate, we can offer an all cash fair offer and close quickly.

If you sell as is, you have the opportunity to move on your time frame, without having an agent go back and forth telling you all the things the new owners want you to fix.  Ultimately, you speed up the process and when you take into consideration the fees involved with using an agent, and the time to sell, and the time to fix your house, you could come out way ahead in the long run.

 

Is 2020 a good time to sell my house?

With interest rates being at an all time low, this could be the ideal time to sell you house.  If you do not plan to sell you house, this may be the ideal time to refinance your house and use the extra money to invest in the new market that is being creative. (If you’d like to talk more about this, please contact one of our specialist and we will help you set a path for your success.)

Let’s take a moment and look at the stats about selling your Mesquite house in 2020.

According, Yahoo Finance, “2020 might be the best time to put your house on the market.” Analysts have been saying that anyone on the fence about selling should definitely look at the possibilities of selling your home and move into a house that fits your ideal situation.

Here’s a few reasons Yahoo Finance says you should sell your house in 2020: https://finance.yahoo.com/news/why-sell-home-2020-144908730.html

  • New buyers are still entering the market.
  • Interest rates are expected to remain low
  • The housing inventory is LOW in Mesquite.

If inventory is low, that means you have less competition and your house will likely sell faster.  If the interest rates are low, you can get into a new house with lower payments.  Especially if you have taken a forbearance because you will need to make additional payment soon, and if you can sell your current house, the payment will be taken care of by the buyer.

 

What is the best time to sell my house, specifically for Mesquite, Texas?

Look at this graph below from HomeLight.  You can quickly see that over time, the summer months tend to be a great time to sell your house.  That does not mean it will not sell at others times, you just need to be aware of these trends.  We may, however, find that 2020 shifts the whole dynamics.

Source: (https://www.homelight.com/best-time-to-sell-house/mesquite-tx)

One of the other things to note is the days on market.  Again, days on market are best between May and September (RIGHT NOW!).  In Mesquite for 2020, the housing market seems to be doing really well.  There are a lot of people selling and there are buyers waiting to buy.  Of course, you can contact us and you won’t have to deal with an agent and we will give you a fair offer, close quickly, and on your schedule.

If you are considering selling your house, don’t wait.  Now is the best time to sell your house. An old proverb says, “the best time to plant a tree is 20 years ago, the second best time is now.”  And, if you are reading this article, there is a good chance you are ready to sell your house fast, ‘as is.’

If you are asking, “Should I sell my house fast in Mesquite?” We’d love to talk to you about your situation and help you have a fast solution to sell your Mesquite home quickly.  Just give us a call 972-885-8435.

We buy houses in Mesquite in the following zipcodes: 75126, 75149, 75150, 75181, 75185, 75187, 75228

Call us for a fast quick cash offer at 972-885-8435.

The coronavirus pandemic is acting as a catalyst to a real estate market downturn; however, the underpinnings have been present for years. While no one can truly predict market cycles, historically speaking, roughly every 10 years we head into a recession phase. It’s now been over 12 years since the Great Recession, which lasted a staggering 18 months (the longest since the 1929 Great Depression) and was caused by a subprime mortgage crisis — banks bundling these mortgages together and selling them off as mortgage-backed securities.

 

This, however, is different. It’s truly unlike anything many of us — or perhaps the world — has ever seen. The causal factor is not related to our real estate system, or gross negligence as it relates to big banks, etc. Looking back to the Great Recession, it was more than a year until the collapse of big banks (for example, Lehman Brothers). Similarly, with the Great Recession, it took over two years to see roughly 50% of the stock market wiped out. In this instance, a severe impact on the stock market took less than one month and was truly unprecedented. Beyond the fact that the stock market sell-off is the highest any of us will most likely ever see in our lifetimes, home sellers are pulling out of the market at increasing rates as well.

 

It’s important to note that there isn’t always a correlation between a recession and a housing crisis, even though many of us who have lived through the previous Great Recession assume that today’s real estate market is going to hit rock bottom in a congruent fashion. Keep in mind that the housing market is strong and resilient. Everyone needs a place to live, and in previous recessions (other than that of 2008), housing prices have actually increased or remained steady. I predict the current climate could lead to a significant drop in real estate values in the short term, at least in markets that are overly inflated (South Florida and Las Vegas, for example).

 

However, when the market has low inventory (as caused thus far by the current crisis, with many sellers taking their properties off the market) combined with low interest rates, it still seems to be a highly competitive market, which should keep prices relatively stable once the threat of the virus passes. The flip side to this is lenders are financially strained by waiving mortgage payments, and this could translate to fewer loans being made to prospective homebuyers in the future, which could send prices lower.

 

Regardless, instead of fearing this market or what may transpire in the near future, I recommend using this time to acquire property. Mortgage rates are unbelievably low, and in the short term, there will certainly be deals in your local market. I personally have put multiple offers in on investment properties, some at 25% under list price. Many sellers are willing to negotiate with buyers and are eager to unload their inventory. Putting in offers during this period is certainly not a sure thing and carries an intrinsic risk, but in the long run, you’ll more than likely do well.

 

Written by Brian H. Robb. Original Article: https://www.forbes.com/sites/forbesrealestatecouncil/2020/04/27/why-now-might-be-the-perfect-time-to-acquire-real-estate/#584323227343

How the Rent and Mortgage Cancellation Act of 2020 Would impact Real Estate Investors

See how the proposed policy would have a huge impact on landlords and lenders.

 

In early April, Congress approved a $2 trillion stimulus package that provided homeowners, tenants, businesses, and certain industries much-needed funds to help supplement the loss of income many have faced since the coronavirus outbreak.

Talk over the second round of stimulus is underway with three proposed policies on the table at the present time, one of which would have a big impact on homeowners, tenants, landlords, and real estate investors everywhere: The Rent and Mortgage Cancellation Act of 2020.

This bill, sponsored by Representative Ilhan Omar, D-M.N., would eliminate rental and mortgage payments on any primary residence for the duration of the national emergency, allowing landlords and lenders to recoup losses by applying to a relief fund, but there are stipulations.

Let’s look at what the act proposes and how it would work and see how it would affect real estate investors.

 

What the bill proposes

In the Rent and Mortgage Cancellation Act of 2020, all rental and mortgage payments would be eliminated, retroactive from April 2020 for the remainder of the state of emergency declaration.

A fund established by the United States Department of Housing and Urban Development (HUD) would repay any rent or mortgage payments made in April 2020 to the tenant or mortgagor.

Landlords and lenders would be unable to pursue past due rent or mortgage arrears, charge late fees, or report any missed payments to credit bureaus.

Two separate relief funds sponsored by HUD would be created for both landlords and lenders that would cover the entire lost rent or mortgage payment as long as they agree to certain terms for a period of five years.

Any violation of this act by a lender or landlord could result in penalties ranging from $5,000 up to $50,000 and possible forfeiture of the property.

 

What the bill would require

The Landlord Relief Fund would require eligible landlords, which would include “small property owners, family investors, public housing authorities, non-profits, and cooperatives” to agree to the following terms for a period of five years:

  • The rental rate cannot be increased over the following five years.
  • Landlords can only evict for “just-cause” and must provide documentation with any just-cause eviction.
  • The landlord cannot discriminate against a tenant’s income source.
  • Landlords must coordinate with local housing authorities to make new vacancies eligible to Section 8 voucher holders.
  • A provision of 10 percent equity to tenants.
  • The sexual identity or orientation, gender identity or expression, conviction or arrest record, credit history, or immigration status of the tenant cannot be discriminated against.

It also states that the funds would be disbursed on a tiered basis, giving priority to not-for-profits, who likely have the least available capital or assets.

The Lender Relief Fund would require the following of lenders:

  • Yearly reporting of “detailed lending data delineated by race, ethnicity, zip code, age, credit score, interest rates, and other loan pricing features.”
  • Provide comprehensive data on the lender’s office location(s), outreach practices, and referral systems on an annual basis.
  • If at any time during this five-year period a landlord wants to sell a property, they must first offer the property for sale through the Affordable Housing Acquisition Fund, which is designed to help promote housing affordability, while offering tenants safe, habitable living conditions.

The Affordable Housing Acquisition Fund would require:

HUD to have the first right of purchase, providing them 60 days to find an eligible purchaser. If no such purchaser is found, the seller can proceed to a private sale.

Purchasers must:

  • Permanently “reserve a portion of rent-restricted units for lower-income households.”
  • Follow requirements 2 through 6 of the Landlord Relief Fund.
  • Agree to provide residents with free services such as access to “healthcare, employment or education assistance, childcare, financial literacy class, and other community-based support services.”

 

How this bill would affect real estate investors

While this proposal does offer relief for millions of Americans who are currently unemployed or have seen a significant decrease in income from the recession, it puts real estate investors, and particularly landlords, in a very tough position.

It forces the landlords to waive their right to annually adjust their rental rate to offset inflation, increased property taxes, or property insurance or to compensate for any other variable costs that rise with time in order to receive relief in the time being.

Additionally, it requires they essentially become participants in the Section 8 Housing program, restricting the pool of tenants they must first allow.

Lenders must agree to increased annual reporting requirements or suffer a loss of income for an indeterminate amount of time, which would equate to millions of dollars in lost funds.

This act also removes the free market, regulating who can purchase real estate and what they do with the real estate once purchased and caps the income potential for any participating property or asset in this plan.

 

How likely is the bill to pass?

This bill is aggressive. The limitation it poses to private property owners and lenders, in addition to the tremendous cost it would take to be able to pay all rent and mortgage payments for the entire country for an undetermined period of time, means it’s unlikely to gain traction in Congress.

However, we could see elements of this bill pushed forward in future bills that would offer some sort of relief to borrowers and tenants that could impose more restrictions on the private real estate market.

 

Written by Liz-Brumer Smith. Original Article: https://www.fool.com/millionacres/amp/real-estate-financing/articles/how-the-rent-and-mortgage-cancellation-act-of-2020-would-impact-real-estate-investors/

Americans are down on stocks after coronavirus sell-off, say real estate is the best investment

 

The coronavirus economic shock has left Americans downbeat about stock market investing, even after the major market rebound off March lows, according to a new survey from Gallup.

Only 21% of Americans think stocks or mutual funds are the best long-term investment — down six points from 2019 — which is the lowest percentage recorded by Gallup since 2012.

The drop occurred among both high-income and low-income Americans, with a decline of nine points each from last year’s survey, while the percentage of middle-income respondents who chose stocks or mutual funds did not change.

The results are from Gallup’s annual Economy and Finance survey, conducted April 1–14 among 1,017 U.S. adults.

Along with stocks and mutual funds, other options in the survey included real estate, bonds, gold and savings accounts or CDs, and real estate remains the most popular investment choice.

The stock market has rallied more than 25% since the March 23 low and was in rally mode during the survey period.

Thirty-five percent of Americans say real estate is the most favored long-term investment, which has been the case since 2013. Over one-third of Americans have named real estate as the top investment since 2016.

Ownership of stocks is stable, according to the survey, at 55% of Americans, which has been the case since 2018. But confidence among stock owners fell, with only 30% picking stocks and mutual funds as the best investment — down from 37% in 2019. And even after a decade of economic expansion and record stock market gains, the percentage of Americans that own stocks has not reached its 63% peak from before the Great Recession. A low was reached of 52% in 2013.

Despite the drop, stocks and mutual funds remain the second most preferred long-term investment. Savings accounts or CDs (17%) and gold (16%) followed. Bonds lagged at roughly 8%.

Gold was the highest-rated investment in 2011 and 2012 after the Great Recession shot down stock and housing markets.

In the survey, 65% of high-income households said investing $1,000 in the stock market is a good idea, but fewer middle-income households (47%) and low-income households (39%) agreed. Over half of stock owners believe the investment to be worthwhile, while the sentiment among non-investors hovered closer to a third.

Overall, Americans are as likely to say that stocks are a good (48%) or bad idea (49%), and that has not budged since  Gallup last asked this question in 2014. Gallup has returned periodically to this question over the past three decades and found that Americans were most negative about the investing outlook in 1990, but it reached a record level of 58% being positive on stocks in 1999.

Forecasts of the COVID-19 pandemic’s economic impact are growing worse even as businesses in some Southern states are allowed to open as early as Friday — which drew criticism from both businesses and government officials.

Unemployment claims reached nearly 26 million on Thursday, according to data released by the Labor Department. An April survey by YPO found that 11% of global CEOs fear their business won’t survive the pandemic, while roughly two-thirds expect revenue to still be lower a year from now and see a longer recovery period rather than sharp, quick economic rebound.

 

Written by Sully Barrett. Original Article: https://www.cnbc.com/amp/2020/04/24/americans-down-on-stocks-say-real-estate-is-best-investment-gallup.html

Real Estate Investors Eye Potential Bonanza in Distressed Sales

Coronavirus causes widespread stress in property assets

 

A growing number of property investors are preparing for what they believe could be a once-in-a generation opportunity to buy distressed real-estate assets at bargain prices.

Investment firms like Blackstone Group Inc., Brookfield Asset Management and Starwood Capital Group are sitting on billions of dollars in cash and capital commitments they have raised from pensions, sovereign-wealth funds and other big institutions in recent years.

Many of these firms are eyeing hotels, retail properties, mortgage-backed securities and other assets that have come under stress in recent weeks as the spread of the coronavirus pandemic has closed businesses across the country, leaving them unable to pay rent and their landlords unable to pay their mortgage bills.

Despite the continuing uncertainty and economic destruction, the current environment presents the sort of circumstances that risk-taking property investors say can make a career. And while investors are in it for the profit, they also say their investments may help the market bounce back and stabilize property prices.

“There are people that do have dry powder, like us, and that will recognize this as one of the greatest buying opportunities of the century,” said Daniel Lebensohn, co-founder of the investment firm BH3, which launched a $100 million distressed-debt fund in late 2018.

Commercial real-estate prices in the U.S. more than doubled over the past decade, according to Real Capital Analytics, leading many investors to conclude that the market had settled near a peak and so afforded few obvious buying opportunities. Now, many of these assets could soon hit the market as lenders and desperate landlords look to raise cash.

It has been mostly a trickle so far because property markets move slower than bond markets. Mortgage defaults have been few. Investors expect that to change over the coming weeks and months. Once a borrower defaults, the lender often chooses to sell the loan at a discount to avoid the hassle of a lengthy foreclosure lawsuit.

Some of the first distressed assets to hit the market have been mortgage-backed securities held by real-estate investment trusts, which are facing margin calls from their banks. The Royal Bank of Canada last month sought bids for $600 million in mortgage debt that it seized from clients. 

Distressed hotel debt and properties could be next, even though “there aren’t a lot of deals to talk about yet,” said Daniel Peek, president of the hotel group at brokerage Hodges Ward Elliott. He gets “20 calls a day” from firms looking to buy distressed hotels.

Many investors believed in 2008 that the fallout from the sudden collapse of Lehman Brothers Inc. would make for the best bargain hunting of their careers. Commercial property prices fell by 35% between August 2008 and June 2010, according to Real Capital Analytics, but recovered in the following years.

But some of the same investors expect a worse downturn now and more immediate distress. The previous crisis started in financial markets and gradually spread into the real economy. Property owners had trouble getting new loans from skittish banks, but most tenants still paid rent, meaning landlords were able to keep paying their mortgage bills.

This time, the sudden shutdown of vast parts of the U.S. economy is leaving landlords with less rental income, and many may well default on their mortgages this month.

Investors concede there is a risk, and they won’t be pouring all their money into distressed assets. Prices could remain depressed for a long time, and there is always the danger of buying too early, before the market bottoms out.

Still, there is plenty of money waiting to pounce. In December, private real-estate funds that focus on opportunistic and distressed-asset investments held $142 billion in dry powder, according to Preqin—up from $94 billion in December 2008.

Greystone & Co., a New York-based real-estate firm, is raising a fund with up to $400 million to buy distressed debt. “There’s not much liquidity in the market so prices are getting cheaper and cheaper,” said Greystone CEO Stephen Rosenberg.

Directed Capital, a St. Petersburg, Fla.-based investment firm, bought about 15 loans involving about a dozen different borrowers from a bank late last month. The loans had a face value of $10 million, but Directed Capital only paid about $7.4 million, according to CEO Chris Moench.

Other investors had already begun raising money, leaving them well positioned to bargain hunt now. Blackstone finished raising the largest commercial real-estate fund ever in September, with $20.5 billion in commitments. The company also has a $7.1 billion Asia-focused opportunistic real estate fund and is approaching the close of a $10 billion Europe-focused fund. Brookfield Asset Management raised $15 billion for a fund that closed last year.

Fortress Investment Group, whose real-estate funds have around $3 billion in cash or cash commitments, was already buying up defaulted mortgages before the virus spread, according to people familiar with the matter.

David Schechtman, a broker at Meridian Capital Group, predicts that bankruptcy auctions in the property market will become a regular occurrence. He said he is currently marketing a handful of distressed assets for sale, including an unfinished luxury condominium in Manhattan.

“Our thoughts and prayers are with all of our fellow Americans and nobody wants to capitalize on anybody’s misfortune,” Mr. Schechtman said. “But I will tell you, real-estate investors—when you take the emotion out of it—many of them have been waiting for this for a decade.”

 

Written by Konrad Putzier and Peter Grant. Original Article: https://www.wsj.com/amp/articles/real-estate-investors-eye-potential-bonanza-in-distressed-sales-11586260801

The COVID-19 pandemic has left no industry untouched. Many Americans and property owners didn’t have the cash to pay their rent this month. Which means some landlords are going to struggle with the mortgage, which means an opportunity for some property investors.

During the last financial crisis, there was a lot of distressed property to be had in South Florida.

Daniel Lebensohn, co-founder of the investment firm BH3, said buying that distressed debt built the foundation of his company. He said nobody feels good about taking advantage of misfortune, but firms will be looking at this pandemic in the same light.

“Now’s the time to innovate and go hunting because there will be opportunities,” Lebensohn said.

But KC Conway, chief economist at the CCIM Institute, thinks market changes will come in two phases.

“Phase one is really a repricing opportunity. And I think then the acquisition comes a little bit later, maybe six months down the road,” he said.

That’s because the real estate market moves slowly, and this pandemic is only a month old in the United States.

“It’s not as if anybody who owns anything is suddenly going to step up and say, ‘Oh, sure. A month ago, I could have sold this building for $400 a foot, but because I’m afraid of what’s happened in the market, you can buy for $200 per square foot,’” said Jim Costello, senior vice president at Real Capital Analytics.

He said it could get there at some point, it’s just not there yet.

And the hospitality sector is going to have an especially difficult time weathering this storm.

“Some of the areas like the hotels and the travel related … the restaurants, many of those are fairly tight on their cash flow and could actually be facing a situation where they need a buyer fairly soon,” said Calvin Schnure, senior economist at Nareit.

And retail office space, one part of the market that many viewed as fairly safe, could be compromised because so many people have learned to work from home.

Written by Andy Uhler. Original Article: https://www.marketplace.org/2020/04/07/pandemic-could-mean-opportunity-real-estate-investors/amp/

In the first two weeks of March, new listings were up 5% annually on average. By the second week of April, they were down 47%, according to realtor.com.

 

In early March, median list prices were up 4.4% annually on average. In the first half of April they were up just under 1%. That’s the slowest growth in seven years.

 

Both homebuyer and seller demand have weakened dramatically in the last month, as Americans hunker down to help stop the spread of the coronavirus.

 

While some are still shopping online, doing virtual tours, the spring season was essentially over before it started. Although sales are way down, home values may not suffer as much, except in certain markets.

 

Home prices were very hot at the beginning of this year and heading into the crisis, and the expectation is that while the gains in values will likely slow, prices will not fall nationally. That is because unlike during the subprime mortgage crisis, when there was a serous glut of homes for sale, there is now an increasingly severe shortage. Home values fell as much as 50% in some markets a decade ago, but market dynamics are far different now, and the supply-demand imbalance favors stronger prices.

 

In the first two weeks of March, new listings were up 5% annually on average. By the second week of April, they were down 47%, according to realtor.com. April is usually the strongest month for new listings.

 

“With affordable housing in extraordinarily short supply, the house price declines will be limited, and given the tight mortgage underwriting and plain vanilla fixed-rate mortgage loans originated since the crisis, so too will the foreclosures,” wrote Mark Zandi, chief economist at Moody’s Analytics.

 

There has also been a slowdown in asking prices. In early March, median list prices were up 4.4% annually on average. In the first half of April they were up just under 1%. That’s the slowest growth in seven years.

 

“Although prices are still rising compared to last year, slower gains are indicative of early market response to economic uncertainty and hurdles to completing a transaction, along with lower buyer and seller sentiment,” said Danielle Hale, chief economist at realtor.com. “While asking prices do not normally react so quickly to market conditions, Fannie Mae’s recent housing market sentiment survey showed a bigger potential seller response to COVID-19 than the potential buyer response, which could help explain why asking prices are reacting rapidly.”

 

All real estate is local, and prices will be under the most pressure in areas where the economies depend on leisure and hospitality, according to a new report from UBS. The report mentions Las Vegas, Miami and Orlando, Florida, which were some of the hardest-hit markets during the subprime crisis.

 

In addition, UBS lists Houston as high risk, because of its exposure to energy companies. Oil prices have plummeted amid infighting among OPEC nations and a sharp drop in gasoline usage as millions of people around the world shelter at home.

 

Markets where affordability was already stretched, like San Francisco, Los Angeles, San Diego and Seattle, are also at higher risk of price declines. In New York City, home prices had already been tanking, due to oversupply and changes to real estate tax laws that had benefited homeownership. Now the city is the epicenter of the nation’s coronavirus crisis, and values have nowhere to go but down.

 

While home sales are down dramatically, there are some transactions happening. People who have to buy or sell are still doing so, and some are out hunting for bargains, albeit hunting virtually. Realtor.com just added live open houses to its offerings, so people can talk to an agent in real time as the agent walks through the house. Other brokerages are doing the same.

 

There will of course be pent-up demand at the end of all of this, but consumer confidence in the economy will play an even bigger role than usual. That is why some disagree with the strength of home prices and see a potential for wide-scale price drops, at least temporarily.

 

“Uncertainty destroys value,” said Ken Johnson an economist at Florida Atlantic University. “The more uncertainty there is, the more a potential buyer will discount the value of the home.”

 

Written by Diana Olick. Original Article: https://www.cnbc.com/amp/2020/04/20/these-markets-could-see-the-sharpest-drop-in-home-prices-during-coronavirus-pandemic.html


 

Seven Habits Of Highly Effective Real Estate Investors

I first read The 7 Habits of Highly Effective Teens in high school after it was recommended by my librarian (thanks, Mrs. Webster!). Pretty soon after, I read The 7 Habits of Highly Effective People and many other similar business and self-help books. When I recently noticed how many other business tips really stem from the principles of Covey’s books, I decided to revisit the principles to see how they can be applied to real estate investing.

 

Habit 1: Be proactive.

Covey introduces the ideas of Circle of Influence and Circle of Concern in his book. Imagine two concentric circles. The bigger circle, the Circle of Concern, is all of the things you can worry about going wrong in real estate: contractors not showing up, water heater breaks, investors backing out of a commitment. Inside that circle is a slightly smaller one, the Circle of Influence, for items that you have control over.

 

Life is 10% what happens to you and 90% how you react. As investors, we must be proactive, control the controllable to expand our Circle of Influence. Accept responsibility for situations and take initiative to make things better. Waiting for problems to happen or taking a woe-is-me kind of attitude will get you nowhere.

 

Habit 2: Begin with the end in mind.

This goes far beyond envisioning how you want your fixer upper to look at the end of construction or the conclusion of an investor pitch meeting. You also have to have a picture in mind what you want your life to look like in the end and your relationships with the people who matter so you don’t end up working aimlessly. Lots of motivational gurus talk about your “why” or “finding your purpose” ad nauseam — and the reason they do it is because it’s important. What is your personal mission? Spread the gift you were put on this world to give.

 

Habit 3: Put first things first.

As real estate investors, you have a myriad of to do’s. Prioritizing is key. Break out everything you have to do into a two-by-two matrix, with one axis labeled important versus not important and the other axis labeled urgent versus not urgent. We don’t have any problems with quadrant one, the important and urgent tasks, and although it might take some discipline, for the most part, we know to tune out the not-important and not-urgent time wasters.

 

However, we often overspend our time in the not-important-but-urgent quadrant and under-invest in quadrant two, the important but not urgent items that will pay many more dividends down the road. We need to delegate or decline the busy work and focus on what will sustain our business in the long run, and that is building relationships with brokers, agents and various tradespeople.

 

Habit 4: Think win-win.

Most investors are deal junkies, but we must take the long view. Win-lose situations don’t build trust over time. You might want to ask the agent or broker to reduce their commissions, but you have to realize the pie is big enough for everybody. The reason it is hard is because it takes a tremendous amount of integrity, maturity and, most of all, empathy. When you are able to do that, you can bet you will get tons of repeat business in the future.

 

Habit 5: Seek first to understand, then to be understood.

Listen first. Ask questions. Too often are we ready to jump in to defend our position in negotiations or apply our own lens to the problems that we miss out on the opportunity to peel back the onion to get at the deeper-rooted issues. Per Aaron Burr’s advice in the musical Hamilton, “Talk less. Smile more.”

 

Habit 6: Synergize.

What if 1 + 1 = 3 or 30? Often, complicated deals require innovative solutions. Could you perhaps work out a seller financing option or installment sale? Would an option contract make more sense for both parties? It’s not about your way or my way or even a compromise; it is about finding our way.

 

Habit 7: Sharpen the saw.

We must remember there’s more to life than money. Money is just a funny way of keeping score. What is the point of working yourself to the bone? Take care of your body, heart, mind and spirit to periodically recharge and you’ll actually achieve your peak performance.

Written by Jason Hsiao. Original Article: https://www.forbes.com/sites/forbesrealestatecouncil/2020/04/20/seven-habits-of-highly-effective-real-estate-investors/

Mortgage Forbearance Is Not All It’s Cracked Up To Be

Here’s the Ugly Truth

When Nicholas Dahl, 36, called Chase Bank to find out about his options for mortgage forbearance at the end of March, an automated voice informed him the wait time would be 43 hours and 45 minutes. Dahl, who runs his family’s art transportation business, hasn’t been able to draw a paycheck since all nonessential businesses in Illinois were shuttered on March 21 due to the coronavirus pandemic. And he doesn’t know how much longer he and his wife will be able to keep making payments on the three-bedroom house in the Chicago suburbs where they’re raising their 8-year-old daughter.After three hours and 45 minutes on hold, and several times where he heard a woman saying “hello” before going back to the call music, he finally hung up. He emailed the bank for information instead.

Chase responded that he could receive mortgage for 90 days. During those three months, Dahl wouldn’t have to make his payments and wouldn’t incur late fees, get reported to credit agencies, or risk foreclosure. But once that period was over?  All of the missed payments would come due at once.

“I don’t really think it’s worth it,” says Dahl, who’s losing about $5,000 in income each month his business is closed. “I don’t really want to pay four mortgage payments in one.”

Dahl is one of many thousands of Americans who are having trouble making their monthly mortgage payments due to the coronavirus pandemic—or will soon, if the crisis drags on. In the past month, nearly 17 million Americans have filed for unemployment as shelter-in-place orders, social distancing measures, and nonessential business closures went into effect. Last week, economists estimated the unemployment rate was about 13%—worse than during the Great Recession. And those numbers don’t even include many out-of-work, self-employed, and gig workers along with those who’ve had trouble filing their claims because unemployment offices are overwhelmed.

The widespread misery spread by COVID-19 has left many homeowners scrambling to figure out how to pay their mortgages. Homeowners with government-backed loans—and even many without—are being offered up to 12 months of forbearance, doled out in 90-day chunks. But this temporary fix could result in another wave of foreclosures if additional assistance isn’t provided.

Many homeowners could be asked to pay back all of those missed mortgage bills in one lump sum at the end of the forbearance period, a near impossible feat for many who can’t afford their payments today and don’t know when the economy will recover.

Fannie Mae, Freddie Mac, and the Federal Housing Administration say their borrowers, who make up slightly more than half of all buyers, are never required to make lump-sum payments. They also offer various assistance plans, some more generous than others.

But even those homeowners will also eventually have to make good on what they owe, a hardship for those out of work. Those who can’t could eventually lose their homes.

“We are concerned about what’s going on right now, with many people going into these forbearance plans without a clear sense of what will happen at the end,” says Joseph Sant, deputy general counsel for the Center for New York City Neighborhoods. The nonprofit organization promotes and protects affordable homeownership.

“If we don’t see further action from Congress to fill this hole … we could see another foreclosure crisis when these forbearances end,” warns Sant.

Dahl’s uncertainty over what would happen at the end of his forbearance period prompted him to tap his savings and his wife’s ongoing salary as a dental assistant to make his $1,700 mortgage payment for their Rolling Meadows, IL, home. But the family can’t afford to do this indefinitely if he can’t get back to work. He’s already lost out on thousands of dollars of annual revenue, as many of the bigger art shows have been cancelled.

“I don’t like to leave things to chance, and I don’t want to lose my house because of something that is out of my control,” says Dahl. “Mortgage companies should be a lot more flexible. If they show flexibility, we will not have a repeat of ’08.”

The foreclosure crisis was in the rearview—until the coronavirus

Before the pandemic, the foreclosure crisis that followed the housing bust and lingered after the Great Recession had seemed firmly in the rearview.

In January, just 0.4% of mortgages were in some stage of foreclosure, according to the most recent data released by real estate data company CoreLogic. Meanwhile, only 3.5% of mortgages were delinquent, which means they were at least 30 days late.

But there are troubling signs those numbers could rise. About 3.74% of all mortgages were in forbearance in the week ending April 5, according to the Mortgage Bankers Association, a national trade group. That’s compared with just 0.25% of loans in forbearance in the week ending March 2.

The association expects the number of homeowners requesting forbearance to steadily increase.

About 15 million homeowners could rely on forbearance to get them through this crisis, or nearly a third of all single-family mortgages, predicts Mark Zandi, chief economist at Moody’s Analytics.

That could result in roughly 2 million foreclosures, says Zandi. To put that into perspective, there were around 7 million foreclosures as a result of the last housing bust.

“I don’t think a lump sum works, at least for most homeowners,” says Zandi. If there isn’t additional assistance offered, “there will be a lot of credit problems down the road, delinquencies, defaults, and foreclosures.”

Housing advocates are urging different kinds of assistance

Sant, with the Center for New York City Neighborhoods, is worried about the lack of uniformity among mortgage assistance programs, particularly between government-backed loans and non-government-backed loans. So available help can vary even though many mortgage companies and servicers follow the steps that Fannie and Freddie take.

Instead of forbearance, Sant would like to see the creation of a program to keep mortgage payments affordable, similar to the one the federal government created after the housing bust of more than a decade ago. It helped to save more than a million homes from the clutches of foreclosures and short sales. The program granted things like loan modifications, which could lower monthly payments, and , which tacked missed payments onto the ends of loans, thereby extending their duration. These actions helped homeowners remain in their properties.

Many of the government-backed loans offer similar options.

(However, the federal government’s Home Affordable Modification Program was widely criticized for not helping nearly enough homeowners. And about a third of the borrowers who participated in the program wound up falling behind on their mortgage payments again.)

“There tends to be this initial, naive hope [from government officials] that, let’s put the situation off, let’s pause for a few months and hopefully at the end of it, people will recover and they won’t need deeper relief,” says Sant. “But we need to be planning now to provide meaningful relief.”

Many homeowners seeking mortgage assistance are wary of forbearance

Since the crisis began, Seattle-area business owner and author Debrena Jackson Gandy’s income has dropped by about 30%. Her husband, an Uber driver, has seen his take-home pay fall by about 40%. And the couple were worried about paying both the first and second mortgages on their four-bedroom home in the Seattle suburb of Des Moines, WA.

So in late March, Jackson Gandy, 53, called her mortgage companies. The first one, where she has her primary mortgage, agreed to defer her April payment and add an extra payment onto the end of her loan. But her experience with Bank of America, where she has her smaller, second mortgage, didn’t go as smoothly.

The representative she spoke with offered her three months of forbearance instead. She could apply for a loan modification at the end of that period. There was no guarantee it would be granted.

“It was really shocking,” says Jackson Gandy. She runs Masterminds, a personal and organizational development company that hosts events, some of which have been moved online while others have been cancelled.

“If one month is a challenge, then how can I pay four months at once?” she asks.

(Bank of America offers deferments on its own loans, but it provides only forbearance, not deferments, on the government-backed loans it services. Jackson Gandy isn’t sure if she has a federal-backed mortgage.)

“If you can make the payment, make the payment now,” says Rocke Andrews, a mortgage broker at  Lending Arizona in Tucson. He’s also the president of the National Association of Mortgage Brokers, a trade group.

“Don’t take [forbearance] if you don’t absolutely need it. It all becomes due, and who knows what happens between now and then,” he advises.

 

Written by Clare Trapasso. Original Article: https://www.realtor.com/news/real-estate-news/mortgage-forbearance-is-not-all-its-cracked-up-to-be/