Should I buy a Foreclosure, Short Sale or Wait for a good deal?

Frisco currently has 948 homes for sale in Frisco in both the Denton County and Collin County.  There are 31 homes for sale in Frisco that came on the market for sale yesterday, some of which are a great deal.  These Frisco Homes are Foreclosures, Short Sales and Privately owned homes.  Some are good deals and some are not. 

If you are a buyer looking for a good deal then you should be patient but be able to act quickly.  For example 12235 Red Hawk DR in Grayhawk is priced at $161K and is 2100 square feet and 10465 Hay Meadow DR in Meadow Hill Estates is 3390 square feet and is prices at $241K both are good deals for Frisco.  But because they are good deals they won’t last long.  Another example of a good deal is 11857 Stephenville in Panther Creek of Frisco this home is a Short Sale.

Buyers should use a website to search for properties that updates daily and also don’t have homes that have already sold on them; www.teamdecell.com is a great site for that.  You need a website that updates daily because as I mentioned on good deals the buyer will need to act quickly, and if a website doesn’t update daily then when you finally see the home it may be a week old and have multiple contracts on it.

In shopping for Foreclosures Homes, also know as Bank Owned properties, Short Sales and the other homes in Frisco that are good deals, something else to consider is your real estate agent.  Does your agent have a strategy when it comes to submitting an offer on Foreclosures, Short Sale or a good deal?  There are a number of things your agent can do to help insure that your offer is the accepted offer. Talk with them and find out what and how they plan on ensuring your offer doesn’t get beat out by another offer.

Short Sale properties are in a class of their own.  They are not short in regards to duration but they are short because the sale price will be short of the payoff or loan amount.  Here again make sure your agent has a lot of experience in selling and listing short sales.  If your agent has list numerous short sales then he will know what goes on behind the scenes with the bank approval process and will be able to guide you properly.  Many real estate agents that only represent buyers don’t fully understand the process and how it works; this lack of knowledge will be to your detriment and a large waste of time.  As I mentioned 11857 Stephenville in Panther Creek of Frisco is a short sale that just came on the market.  The Listing agents’ goal is to get an offer as quick as possible to stop any Foreclosure preceding that might have started.  But many agents don’t realize that the offer submitted is a fully executed offer to purchase the property and that the listing agent can only accept one fully executed contract on the property.  You can have a back up contract but your agent will let you know that and you will sign a form saying that you acknowledge that this is a back up contract.  So all that to say if your not the execute contract you may be just another contract in a pile of other contracts that the listing agent has on his desk.  TEAM DECELL has a great deal of experience in short sales both on the listing side and the buyer’s side. 

This article is not meant to say that TEAM DECELL are the only capable realtors in the market place, because that is not true.  We have worked a lot of great agents over the years.  This article is meant to give you knowledge so that you can make a qualified decision regarding the realtor that you do use.  Make sure they are experienced in all aspects of the real estate industry, make sure they are full time agents, you don’t want to work with someone that only works the business for play money or because they are bored.  Full time agents are dedicated to their business because it’s their livelihood.  They want to earn your future business and the business of your friends and family, so they will want to do a great job for you.

If you would like additional information about what we have talked about in this article contact TEAM DECELL at our website or call 214-975-3210.  We are a team of 5 agents with an assistant.  We will make your next buying or selling experience a pleasant one. 

Well, you may not be stupid. Maybe you already have a house and you don’t want to move. Or maybe you’re a Trappist monk and have forsworn all earthly possessions. Or whatever. But if you want to buy a house, now is the time, and if you don’t act soon, you will regret it. Here’s why: historically low interest rates.

As of today, the average 30-year fixed-rate loan with no points or fees is around 5%. That, as graphs on Mortgage-X.com—shows, is the lowest the rate has been in nearly 40 years.

In fact, rates are so well below historic averages that it should make all current and prospective homeowners take notice of this once-in-a-lifetime opportunity.

And it is exactly that, based on what the graph shows us. Let’s look at the point on the far left.

In 1970 the rate was approximately 7.25%. After hovering there for a couple of years, it began a trend upward, landing near 10% in late 1973. It settled at 8.5% to 9% from 1974 to the end of 1976. After the rise to 10%, that probably seemed O.K. to most home buyers.

But they weren’t happy soon thereafter. From 1977 to 1981, a period of only 60 months, the 30-year fixed rate climbed to 18%. As I mentioned in one of my previous articles, my dad was one of those unluckily stuck needing a loan at that time.

Interest Rate Lessons

And when rates started to decline after that, they took a long time to recede to previous levels. They hit 9% for a brief time in 1986 and bounced around 10% to 11% until 1990. For the next 11 years through 2001, the rates slowly ebbed and flowed downward, ranging from 7% to 9%. We’ve since spent the last nine years, until very recently, at 6% to 7%. So you can see why 5% is so remarkable.

So, what can we learn from the historical trends and numbers?

First, rates have far further to move upward than downward; for more than 30 years, 7% was the low and 18% the high. The norm was 9% in the 1970s, 10% in the mid-1980s through the early 1990s, 7% to 8% for much of the 1990s, and 6% only over the last handful of years.

Second, the last time the long-term trends reversed from low to high, it took more than 20 years (1970 to 1992) for the rate to get back to where it was, and 30 years to actually start trending below the 1970 low.

Finally, the most important lesson is to understand the actual financial impact the rate has on the cost of purchasing and paying off a home.

Every quarter-point change in interest rates is equivalent to approximately $6,000 for every $100,000 borrowed over the course of a 30-year fixed. While different in each region, for the sake of simplicity, let’s assume that the average person is putting $40,000 down and borrowing $200,000 to pay the price of a typical home nationwide. Thus, over the course of the life of the loan, each quarter-point move up in interest rates will cost that buyer $12,000.

Loan Costs

Stay with me now. We are at 5%. As you can see by the graph above, as the economy stabilizes, it is reasonable for us to see 30-year fixed rates climb to 6% within the foreseeable future and probably to a range of 7% to 8% when the economy is humming again. If every quarter of a point is worth $12,000 per $200,000 borrowed, then each point is worth almost $50,000.

Let’s put that into perspective. You have a good stable job (yes, unemployment is at 10%, but another way of looking at that figure is that most of us have good stable jobs). You would like to own a $240,000 home. However, even though home prices have steadied, you may be thinking you can get another $5,000 or $10,000 discount if you wait (never mind the $8,500 or $6,500 tax credit due to run out next spring). Or you may be waiting for the news to tell you the economy is “more stable” and it’s safe to get back in the pool. In exchange for what you may think is prudence, you will risk paying $50,000 more per point in interest rate changes between now and the time you decide you are ready to buy. And you are ignoring the fact that according to the Case-Shiller index, home prices in most regions have been trending back up for the last several months.

If you are someone who is looking to buy or upgrade in the $350,000-to-$800,000 home price range, and many people out there are, then you’re borrowing $300,000 to $600,000. At 7%, the $300,000 loan will cost just under $150,000 more over the lifetime, and the $600,000 loan an additional $300,000, if rates move up just 2% before you pull the trigger.

What I’m trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.

If you are interested in talking to someone about your options please call us or if you are interested in Homes for Sale in Plano, Frisco, McKinney, Allen and the surrounding area TEAMDECELL is who you need to call.  We also assist with New Construction, Pre-Owned homes , Foreclosures and Short Sales.  We are your home town experts and offer excellent customer service.  214-975-3210

8650 Hidden Spring Dr in Stonebrook of Frisco is a great floor plan on a corner lot with a large stained concrete patio & landscaped backyard. The master Bedroom is located on the first floor, with a living area and fireplace. Updates include wood floor in entry, new carpet & baseboards in 2008, corian counter tops & sink and stainless appliances in 2005. The updates include master bath, and a new roof in 2004, new A/C in 2006 and ceramic tile in kitchen, master bath & hallway. Fence re-stained in July 09. $20K spent in updates in the last 5 years.

Frisco ISD’s award winning Bright Elementary, Staley Middle and Frisco High School are the schools for this Frisco Home.

If you are interested in talking to someone about your options please call us.  If you are interested in homes for sale in Frisco,  Plano,  Allen and  in McKinney area TEAMDECELL is who you need to call.  We also assist our clients with New Construction as well.  We are your home town experts and offer excellent customer service.  214-975-3210

1946 Countryside Dr in Lake Hill Village of Frisco is newly updated with 5′ hardwood floors, decorative light fixtures, Paint. Combined formals, granite counters, and walking distance to elementary school. Incredible community amenities: 3 pools including waterslide, Gym, Party room, lakes, creeks and park.  This is a 3900 square foot home for only $299,000.  Call now while this brand new home for sale is still available.

Frisco ISD’s award winning Bledsoe Elementary, Pioneer Middle and Frisco High School are the schools for this Frisco Home.

If you are interested in talking to someone about your options please call us.  Or if you are interested in homes for sale in Frisco,  Plano,  Allen and  in McKinney area TEAMDECELL is who you need to call.  We also assist our clients with New Construction as well.  We are your home town experts and offer excellent customer service.  214-975-3210

11497 Yoakum Dr of Panther Creek Estates in Frisco is a gorgeous 4 bedroom, 2.5 bath home with vaulted ceilings, arches, plant ledges & art niches. Huge kitchen with loads of cabinets, walk-in pantry & island open to casual living area with corner fireplace & ceiling fan. Large Master Bedroom & Bathroom with walk in closet. Upstairs is an extra large game room & computer room with 3 generous sized bedrooms & full bath. Upgraded carpet & pad. Walk to Exemplary Sem Elementary.

Frisco ISD’s award winning Sem Elementary, Roach Middle and Wakeland High School are the schools for this Frisco Home. 

If you are interested in talking to someone about your options please call us.  If you are interested in homes for sale in Frisco, homes for sale in Plano, homes for sale in Allen and homes for sale in McKinney area TEAMDECELL is who you need to call.  TEAMDECELL sells homes in the Frisco, Plano, Allen and McKinney Area primarily.  They are your home town experts and offer excellent customer service.  214-975-3210

3630 Lincoln Dr of Heritage Lakes in Frisco is a place where friends and relatives will try to keep up with you as the owner of this beautiful 4 bedroom 2.5 bath family home in Heritage Lakes. 24 hour gated community & resort style amenities. The home features a spacious 2794 square feet flowing floor plan, Master suite down & 3 rooms up.  Formal living & dining room. Spacious kitchen, Corian countertops, black appliances & Chefs Island. Don’t miss the Pergola over the back porch! Don’t tell them you only paid $249,000. 

If you are interested in talking to someone about your options please call us.  If you are interested in homes for sale in Frisco, homes for sale in Plano, homes for sale in Allen and homes for sale in McKinney area TEAMDECELL is who you need to call.  TEAMDECELL sells homes in the Frisco, Plano, Allen and McKinney Area primarily.  They are your home town experts and offer excellent customer service.  214-975-3210

WASHINGTON (Reuters) reported that  – Sales of previously owned U.S. homes rose in October at a faster-than-expected pace to the highest in more than 2-1/2 years as home buyers rushed to take advantage of a popular tax credit, a survey showed on Monday.

The National Association of Realtors said sales surged a record 10.1 percent month-over-month to an annual rate of 6.10 million units, the highest since February 2007, from a downwardly revised 5.54 million-unit pace in September.

Analysts polled by Reuters had expected October home sales to jump to a 5.70 million-unit pace from the previously reported 5.57 million units in September. Compared to October last year, home sales were up by a record 23.5 percent.

U.S. stock indexes extended gains on the data, while Treasury debt prices were little changed.

“Many first time home buyers have been rushing to beat the deadline for first-time buyer credit that was scheduled to expire at the end of this month, and similarly robust sales may be occurring in November,” said Lawrence Yun, NAR’s chief economist.

Distressed transactions accounted for 30 percent of sales last month and continued to weigh on house prices. First-time buyers made up a third of home sales in October.

The national median home price fell 7.1 percent from October last year, the smallest decline in over a year, to $173,100. Homes in foreclosure typically sell for 15 to 20 percent less than traditional homes for sale.

“Existing home sales have already bottomed. Home prices are almost there. We are seeing a less of a decline in house values,” said Yun.

The housing market is slowly mending after a three-year decline, which contributed to tipping the U.S. economy into its worst recession in seven decades. Housing construction contributed to economic growth in the third quarter for the first time since 2005.

Recovery is being supported by the $8,000 tax credit for first-time buyers, low mortgage rates and falling house prices. The government this month extended the incentive into next year and added a $6,500 credit for home owners buying a new residence. It had been due to expire on November 30.

“The tax benefits going into the housing market are working, and that’s a relief,” said William Larkin, portfolio manager at Cabot Money Management in Boston. “Everything is about housing and jobs right now.”

The improvement in October sales was broad-based, with sales of single-family homes, the biggest segment of the market, rising 9.7 percent to an annual rate of 5.33 million units, while condominium and co-ops increased 13.2 percent to a 770,000-unit rate.

Sales were up in all four regions of the country. Prices rose 1.1 percent in the Midwest, which didn’t see the same boom as the rest of the country, while declining in the other three. The rise in the Midwest was the first price increase in any region since November 2008.

Analysts are cautiously hoping a sustained housing market recovery will help to improve the psychology of households, which has been shaken by rising unemployment.

The inventory of existing homes for sale in October fell 3.7 percent to 3.57 million units from the previous month, NAR said. At October’s sales pace, that represented a supply of 7.0 months, the lowest in 2-1/2 years, from September’s revised 8.0 months.

12029 Mordor Lane in the Village at Panther Creek of Frisco is an exquisite home completed remodeled with granite, hardwood, carpet, tile and marble and so much more. Locate in the prestigious subdivision of the Villages of Panther Creek this home is a must see.  2400 Square feet and it’s entirely on one floor.  This home has vaulted ceilings, and a nice large kitchen with an island and Bar area for sitting.

Frisco ISD’s award winning Tadlock Elementary, Roach Middle and Wakeland High School are the schools for this Frisco Home. 

If you are interested in homes for sale in Frisco, homes for sale in Plano, homes for sale in Allen and homes for sale in McKinney area TEAMDECELL is who you need to call.  They are your home town experts and offer excellent customer service.  214-975-3210

Thursday the Wall Street Journal reported Q3 home sales at an annual rate of 5.3 million units. That was an 11.4% gain over Q2’s 4.76 million units. Experts put much of the rising sales to the tax credit of up to $8,000 for first-time homebuyers. A week ago Friday, the President signed a bill extending that tax credit well into next year and expanding it to first-time buyers with higher incomes as well as to existing homeowners, with a $6,500 limit. National Association of Realtors chief economist Lawrence Yun feels “rising sales from the expanded tax credit should stabilize home prices by next spring.”

That same tax credit bill also created a new tax break for businesses. The bill lets large firms claim cash refunds on taxes they paid going back five years, to offset current losses. The carry-back period had previously been just two years. Experts estimate this could improve the cash positions of big home builders by hundreds of millions of dollars to further help the recovery. Luxury home builder Toll Brothers is doing just fine already. Tuesday they announced their fiscal Q4 had a 42% jump in contracts over last year. And the value of those contracts was 62% higher than a year ago.

For assistance with all your real estate needs contact TEAM DECELL 214-975-3210.  TEAM DECELL can consult with you on homes for sale in North DFW area.

The National Association of Realtors reported that the median price for an existing home was up 6.4% in the third quarter from the previous quarter but that prices remained 11.2% lower on a year ago basis. This was the first quarterly gain since early 2007 indicating some stabilization in pricing is occurring. Sales volumes have also improved. Sales price gains could be short-lived though depending on the number of distressed homes that hit the market in coming months.

For questions or information regarding all your Real Estate needs contact TEAM DECELL.