There is little competition from other buyers. Motivated sellers are setting realistic asking prices. In other words, it’s a more normal home sale market as compared to the record-breaking volume of the last few years.

But there’s another reason to buy a resale house now. Anxious sellers are offering sales incentives. A few offer vacation trips, higher sales commissions to buyer’s agents, and even automobiles as inducements to realty agents and their buyers.  I think the best incentive is a mortage buy down.  This means the seller will contribute up to 6% of the purchase price to buy down the buyer’s mortgage rate of a fixed loan for the first, second, and third year and then on the fourth year the rate is fixed.  This is a great savings each month.  It is a much better incentive for a buyer than a price reduction!

THE EASIEST, LEAST EXPENSIVE WAY TO FINANCE A HOME PURCHASE. Especially if you are a “cash challenged” or “credit challenged” home buyer, you will love this finance source. Not every resale home can be financed using this source, but all you need is one.

This under-used home mortgage finance source is the home seller.

With more than 50 percent of U.S. homes owned free and clear with no mortgage, those homes are the best candidates for seller financing.  As your Realtor, Courtney Silverman search the local MLS (multiple listing service) listings for homes listed with no existing mortgage. Those sellers are the best prospects for seller carryback mortgage financing.

Instead of sellers taking an all-cash sale and parking the cash in a bank or mutual fund earning around 5 percent interest, suggest the seller of a free-and-clear home carry back the mortgage at 6 percent. That’s a “good deal” for both seller and buyer.

Whenever possible, Courtney Silverman will arange a meeting with the home seller to establish credibility before presenting a purchase offer asking for a seller financed mortgage.

FIVE ADVANTAGES FOR HOME SELLERS OF SELLER FINANCING. In addition to earning a high above-market interest rate, there are many additional seller advantages of financing the home sale that include:

1. Easy quick sale for top dollar. As every merchant and car dealer knows, sales are easiest when the merchandise seller offers easy financing. The same principle applies to home sales where sellers offer easy financing. Price often becomes a non-issue.

2. Vacant houses can be risky for home sellers. If the seller has moved out of the house, this is usually a sign of a very anxious and worried seller, especially if the house has been listed for sale several months. Most sellers of vacant houses will listen to reasonable purchase offers, including seller carryback mortgage terms. 

If the seller wants a shorter term than a 20-year seller carryback mortgage, I reply, “Well, let’s amortize the mortgage over 20 years but include an option for you to call the loan due in 10 years.” After 10 years of on-time mortgage payments, sellers rarely exercise that option.

3. Safety of a mortgage or deed of trust on property the seller understands. The major reason home sellers hesitate to carry back a mortgage for their buyer is they fear the buyer will default and not make the monthly payments.

I emphasize this often-unstated fear and explain when a buyer defaults, the seller then can foreclose and either get paid off at the foreclosure sale by a cash bidder or get the home back to resell for a second profit.

4. Installment-sale tax benefits are another seller advantage, especially when the taxable profit exceeds the seller’s $250,000 or $500,000 principal residence sale tax exemption of Internal Revenue Code 121. If the property was not the seller’s principal residence, spreading out the capital gains tax over the years of receiving buyer payments is usually far better than paying a large capital gain tax in the year of the sale.

5. Down-payment cash to pay the home sales expenses. In a typical home seller financing, the buyer makes a cash down payment of 10 percent to 20 percent of the sales price. This down payment is usually sufficient to pay all the sales expenses, including the realty agents’ sales commission.

HOW TO CONVINCE HOME SELLERS TO FINANCE YOUR PURCHASE. Even after explaining all the seller benefits of financing the home sale, some unmotivated sellers are hesitant to carry back a mortgage on the house they are selling.

Methods to Convince are:

(1) offering to prepay six to 12 months of mortgage payments at the closing (instead of a large down payment);

(2) providing a year’s post-dated checks so the seller can deposit a check on the first day of each month; and/or

(3) giving the seller a copy of the buyer’s credit reports and FICO (Fair Isaac Corp.) score obtained at www.myfico.com.

SUMMARY: Especially in the current buyer’s market for homes in most cities, seller mortgage financing is the easiest way to pay for a house or condo purchase with no institutional loan application hassles.

Click here for a glossary of mortgage terms.

Immaculate Home with Remodeled Kitchen and Beautiful Wood Floors. Well Maintained and In Move in Condition. Screened Patio, Chlorine Free Pool Has Sun All Day, But Lots of Shade to Enjoy the Patio and Fenced Yard.

For more information on properties available for sale in Bonaventure Lakes, Contact:

Courtney Silverman
954-292-0743
Relocation Expertise Working For You

Hawthorn Village Is Maintenance Free Living At Its Best! Spacious 2-Bedroom 2-Bath Home Set At Plantation Preserve Golf Course. This home has a split floor plan, plenty of closet space, conveniently close to the Village Clubhouse and Pool. Formal Living and Dining Rooms, an Open Kitchen with a pass-thru to the Family Room. Mature Trees Shade the Home, yet Plenty of light. Circular Driveway, Garage on Side of Home. Extra Parking in Cul-de-Sac. Ideal for On-The-Go Singles-Families-Retirees.

For more information on properties in Hawthorn Village in Plantation FL, Contact:

Courtney Silverman
954-292-0743
Relocation Expertise Working For You

Welcome to “the Village”. 2-Bedroom 2-Bath Split Floor Plan Home. Real Hardwood Floors and Mexican Tile in the Enclosed Florida Room. Nice Open Floor Plan. A Turnkey Property with Accordion Shutters, Maintenance Free Exterior. Ideal for On-The-Go Singles,Families or Retirees. Newer Kenmore Elite Appliances, Large Air Conditioned Pantry & Laundry Room. Steps From Plantation Preserve Golf Course, Playground, Shopping, yet a quiet Cul-de-Sac.

For more information on this properties available in Hawthorne Village and in Plantation FL, Contact:

Courtney Silverman
954-292-0743
Relocation Expertise Working For You 

Luxury Estate Home  located in Upscale Lakes Estates at Rolling Hills. 3 year new 5-bedroom 4-bath home with 4-way split floor plan. Beautiful home. Master Bedroom Suite. Large kitchen with center island, breakfast bar, large pantry, bar area. 3-hole Executive Golf Course Within Neighborhood.  Next to the Prestigious Grande Oaks Golf Club, Surrounded by Mature Historic Live Oak Trees. Close to Educational Campuses, Parks, Country Clubs & Miami Dolphins Training Facility.

For more information on properties in Lake Estates at Rolling Hills in Davie FL, Contact:

Courtney Silverman
954-292-0743
Relocation Expertise Working For You 

Attention Bargain Hunters: Least expensive 4-bedroom 2-story home in Weston. Immaculate - Move-in Condition. Master BR Suite downstairs 3 large bedrooms upstairs. Large Kitchen. New wood floors-1st floor. Screened covered porch, fenced yard, mature trees, clean established neighborhood. All upstairs windows have accordian shutters. 1-yr repair/replacement warranty-all appliances. Walk your Kids to Elementary School. Community pool is next to Eagle Point Park (playground, athletic fields & walking path).

For More Information on properties in North Lakes and in Weston FL, Contact:

Courtney Silverman
954-292-0743
Relocation Expertise Working For You

VERY SPACIOUS 2-BEDROOM 2-BATH FIRST FLOOR HOME. SCREENED PORCH HAS LAKE VIEW, EASY ACCORDIAN HURRICANE SHUTTERS. NEW CARPETS, PASS-THROUGH KITCHEN TO DINING ROOM. DID I TELL YOU ABOUT ALL OF THE CLOSET SPACE & STORAGE? LARGE LAUNDRY ROOM WITH FULL SIZE WASHER/DRYER. 24-HR MANNED GUARDGATE. RESIDENT BUS SERVICE. BEACH, SHOPPING, EZ ACCESS. NEW RESIDENTS ARE 55+. CLUBHOUSE HAS MANY AMENITIES WITH TOTAL RENOVATION END OF NOV.

For more information on this property and others, Contact:

Courtney Silverman
954-292-0743
Relocation Expertise Working For You

Decor To Perfection - Just Bring A Toothbrush. Castle Gardens is well located in Lauderhill. Club House offers a Magnificent Theatre, His & Her Gym, Lakefront Swimming Pool, Billiards, Bowling, Card Rooms, Shuttle Bus, Etc. 24-Hr Security Patrol Plus A Secured Entry Bldg. Close To Medical Facilities, Public Library & Shopping.

For more information on this property and others, Contact:

Courtney Silverman
954-292-0743
Relocation Expertise Working For You

HOW TO SELL YOUR HOME FOR TOP DOLLAR. If you are thinking about selling your house or condo, this is the best time of year to do so. However, a successful home sale requires preparation and planning.
 
 The first step is to get your residence into near “model home” condition. That means cleaning, repairing and painting. But don’t go overboard with renovations. Let your buyers remodel to their taste. Most home improvements rarely bring in as much in additional sales price as they cost.
 
 However, modest-cost cosmetic improvements usually pay off. Profitable examples include fresh paint inside and outside (paint is the most profitable dollar-for-dollar improvement you can make), new light fixtures, new floor coverings (if needed) such as wall-to-wall carpets, and outdoor landscaping spruce-up.
 
 THE BEST WAYS TO DETERMINE YOUR HOME’S MARKET VALUE. Home sales prices depend on recent sales prices of nearby comparable residences within the last few months. A good place to start is on the Internet to determine your home’s approximate market value.
 
 A brand-new Internet Web site that provides free “guesstimates” of home values is www.Zillow.com. When I checked my home, I was amazed to see an aerial photo of my house, including the lot boundaries. The Zillow estimate of my home’s market value was remarkably accurate. However, this remarkable new Web site doesn’t yet cover the entire nation.Another free Internet home-value-estimate Web sites include www.REALTOR.com  This Web site will often refer you to a local realty agent.
 
 After you have had fun with the Internet estimates of your home’s market value, if you are a serious home seller, the best way to obtain a more accurate market value estimate is to interview at least three successful local real estate sales agents.
 
 Even if you are thinking about selling your home alone (known as “FSBO - For Sale By Owner” or “fizzbo”) the agents you interview won’t mind giving you their listing presentations. The reason is they know most “for sale by owners” give up and list with a professional agent within 30 to 60 days.
 
 KEY QUESTIONS TO THE LISTING AGENT YOU INTERVIEW. The reason it is so important to interview your local agents is to understand their sales ability and their CMAs (comparative market analysis) of your home’s market value.
 
 The interview, including the agent’s inspection of your home, should take about an hour. This will be time well spent.
 
 The reason is that the agent should prepare a written CMA showing the agent’s estimate of your home’s market value. The CMA will include recent sales prices of comparable nearby homes, the asking prices of neighborhood homes now listed for sale (your competition), a list of recently expired nearby listings which didn’t sell, and the agent’s estimate of your home’s market value.
 
 In addition to receiving each interviewed agent’s CMA, here is a list of key questions to ask each agent (the best agents anticipate these questions as part of their listing presentations):
 
 1.) What are the names, addresses, and phones of your five most recent home sales listings?
 Before you decide to list with one of the agents interviewed, be sure to phone those recent sellers to ask, “Were you in any way unhappy with your listing agent?” and, “Would you list another home for sale with the same agent?”
 
 2.) How long have you been selling homes in this area? Do you sell real estate full-time? What professional courses and designations have you completed?
 
 Some agents will resent these questions, realizing you are a well-educated home seller. But the best agents will have anticipated these important questions.
 
 Occasionally, you will find a successful part-time agent who comes highly recommended by recent home sellers. Or you might encounter a promising new licensee who has lots of time to devote to selling your home listing.
 
 3.) What is your marketing plan for my home? The best agents will have anticipated this question by providing a written marketing plan as part of their listing presentation.
 
 Each written marketing plan should include at a minimum a) a weekday open house tour for all MLS (multiple listing service) member local agents, b) Internet promotion on the agent’s personal Web site and at www.REALTOR.com  (where 76 percent of today’s home buyers begin their search), c) brochures (ask to see samples of the agent’s past brochures for other listings).
 
 4.) How many listings do you have now? What are their addresses? Do you have an office assistant? What percentage of your listings didn’t sell last year? What day of the week do you take off and who covers for you when you are gone? Are you planning any vacations during the next three months?
 
 If the agent you are considering has too many listings, he or she might not be able to devote enough time to your home sale. Watch out for “numbers agents” who take many listings, have several assistants, but sell a low percentage of their listings. However, consider it a bonus if two agents work as a “team” to handle a large percentage of their listings.
 
 Having an office assistant is another bonus to free the agent’s time for sales while the assistant handles the details such as arranging inspections, appraisals, and sales closings.
 
 5.) What sales commission do you charge for a home like mine?
 
 If the listing commission is competitive, this is not the time to cut the agent’s commission and incentive to get your home sold. Presuming the agent’s references and success record are satisfactory, a sales commission up to 8 percent could be acceptable.
 
 The most important part of the sales commission is the portion that will go to the buyer’s agent. To illustrate, if your home sale listing offers only a 2.5 percent commission to the buyer’s agent, but other local listings offer a 3.5 percent commission, agents representing buyers are likely to show those homes before yours.
 
 Courtney Silverman advertises her listings extensively on http://www.realtor.com/ .  This allows for maximum exposure of your property to the the buyer population. Contact Courtney Silverman with The Keyes Company / Realtors for to understand how she works to get your property sold.
 
 

Second Consecutive Rise Points to Limited Fallout From Market Slump in 2007
By CHRISTOPHER CONKEY, WSJ.com
WASHINGTON — Sales of existing homes rose for the second consecutive month in November, a sign of rebounding demand that suggests the economic fallout from the housing market’s slump will be limited next year.  The National Association of Realtors said sales of existing homes last month increased 0.6% from October to an annual rate of 6.28 million units, down 10.7% from a year earlier. Spurred by lower interest rates and home prices, sales have now increased in back-to-back months for the first time in more than a year. 

Together with a recent upturn in the rate of new-home sales, the modest rise in existing-home sales indicates that home-buying activity may be stabilizing after a yearlong downturn. ”The change was small, but the results were encouraging nonetheless because they suggested activity is beginning to form a bottom” said Michael Moran, chief economist at Daiwa Securities America Inc.

If the housing slump is indeed bottoming out and starts to reverse itself in the months ahead, it would gradually lift a great weight off the broader economy. Housing-related industries have been shedding thousands of jobs in recent months, and builders have been forced to scale back construction to match waning demand. That has been a major factor behind the slowing economy this year, and many economists say growth — now running at an inflation-adjusted annual rate of about 2.0% — won’t fully bounce back until the housing correction has run its course.

Of course, it is far from certain that the housing slump is over. Inventories of unsold homes remained large in November, with a 7.3-month supply on the market at current sales rates, according to NAR data, up from a five-month supply a year earlier. That suggests builders will continue to cut production until supply is better aligned with demand. In the meantime, large inventories will continue to put downward pressure on prices.

Last month’s median home price — the price at which half of homes sold for more and half sold for less — was down 3.1% from a year earlier. November was the fourth month in a row that median home prices were down from a year earlier. NAR President Pat Vredevoogd Combs described current conditions as a “window for buyers” to re-enter the market.  Go to Courtney Silverman’s website to look at local inventories in Broward County, Florida.

  Additional support for a rebound is coming from the competitive labor market, which is producing solid wage gains and lifting consumer sentiment. As with the recent data on housing, which generated more relief than enthusiasm among economists, the improved sentiment reading was due more to a moderation in pessimism than any surge in optimism. More than anything, the data suggest the nation’s economy will be able to maintain its current pace of slow-to-moderate growth as the housing imbalance is corrected. “There’s nothing signaling a severe downturn or a severe upturn,” said Lynn Franco, who oversees the Conference Board survey.