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Pennsylvania Home Sellers Question: Do I list with a Realtor or sell to a cash home buyer?

Below is an example of a recent home seller’s situation where a cash home buyer’s offer (our offer) was better than a Realtor’s higher listing price.

To view pictures, click this link kitchen & bath

The dated property: Kitchen updated in the 1980s and bathroom in the 1990s

Houses in the neighborhood that were in new, modern, and excellent condition were selling for $300,000.  The condition of the subject property we went to see was dated. What dated means is imaging going back into a time machine and going back to 1980s and 1990s because that was the houses style.  The kitchen and bathrooms were update in the late-1980/early-1990s.  The house colors were not what the $300,000 house colors had, it had carpet throughout the entire house and not hardwood flooring anywhere, etc.  Now the house was clean, but it was dated.

Using actual home sales data of houses similar to the subject property, the dated houses were selling for $180,000 to 220,000.

Our offer was $190,000 cash with a settlement date of 30 days.   The home owner’s were also thinking of using a Realtor and the Realtor wanted to list the property for $230,000.  The home owners decided to go with the Realtor and this is how it played out.

No B.S. Home Selling Process vs. List with a Realtor No B.S. Home Selling Process  Realtor
Our Cash Offer: 190,000
Realtor listed property at: n/a 230,000
It took 7 months to get house under contract at $220,000: n/a 220,000
It tooks another 2 months to go to settlement, so 9 months of paying mortgage principle & interest, real estate taxes, and home insurance ($1,920 * 9 months): n/a 17,280
9 months of paying utilities: water, electric, gas, lawn service: n/a 2,725
Realtor commission is 7% of $220,000: n/a 15,400
Net Amount of Money to home seller: 190,000 184,595

 

Our offer of $190,000 cash today was the right decision.  Don’t make the same mistake these home sellers made. 

WOW!  The home sellers went with the Realtor at a higher listing amount BUT waited 9 months until they sold the house and walked away with less money in their bank account.  That is 9 months of living in a house you no longer want to live in thinking you are walking away with more money, but no one ever explains to you all the costs during that time.

I will gladly walk you through all of these options with you so that you can make the best decision for you.  Fill out a home sellers form at http://www.cmtrealestate.net.

August 9, 2014 Posted by | Uncategorized | Leave a comment

US Rents Hit Record Highs As Homeownership Plunges To 18 Year Lows

The percentage of Americans who own a house is 65.1%: the lowest since 1995.
Chart of US homeowner %

Homeownership Rate_0

Rent are on the rise

Avg Rental Price_0

To read more…

 

 

July 30, 2013 Posted by | Uncategorized | , | Leave a comment

HAMP: Audit Reveals More than a Quarter of the Borrowers have Re-Defaulted

Home Affordable Modification Program (HAMP) may lower your monthly mortgage payments in order to make them more affordable and sustainable for the long-term.  Well a recent audit shows more than a quarter of the borrowers in this federal mortgage workout program have re-defaulted, costing taxpayers at least $815 million.  The audit found that struggling borrowers who entered the program in 2009 and 2010, who make up more than half of all HAMP participants, had re-default rates of 46 percent and 38 percent, respectively.

to read more…

 

 

July 24, 2013 Posted by | Uncategorized | , , | Leave a comment

June existing home sales miss. Are Investors are moving out of housing?

CNBC’s Diana Olick reports that sales of existing homes were down 1.2 percent in June. They had been up 3.4 percent in May. Inventories were up, too, though they were lower year-over-year.  http://www.cnbc.com/id/100903814

 

June existing home sales miss.  Are Investors are moving out of housing?

July 23, 2013 Posted by | Uncategorized | , , , , | Leave a comment

The Vacant Property Issue in Lower North Philadelphia

Lower North Philadelphia on some street blocks have more vancant houses/lots than people (home owners / tenants).  Philadelphia City Planners have begun work on the blue print of the future of Lower North Philadelphia.  Take a look at the map below of all the vacant houses and lots in this area.

lower-north-Philly vacancy

Overall the population in this area (excluding Temple U) has significantly decreased since the 1950s.  Income levels in the area are low and a the poverty level in this are is high.  With the lack of demand with regards to re-development in most of these area what can the city of Philadelphia do about it?  To read more…

July 19, 2013 Posted by | Uncategorized | , , | Leave a comment

The Oval — Philadelphia Parks and Recreation brings the beach to Philadelphia

Philadelphia Parks and Recreation brings the beach to Philadelphia on the Benjamin Franklin Parkway., which is call The Oval (I dont think this was Ron Swanson’s idea).  Below is a picture of The Oval.

the oval

So what does this  $180,000 project provide the citizens of Philadelphia.

  • The “beach” is painted to resemble sand and will offer two 16-foot square boxes filled with the real sand
  • mock lifeguard stations and several spray misters
  • the “blanket” will include painted chess, checker, and Twister boards laid upon bright stripes
  • the ”boardwalk” will play host to a revolving group of local food trucks, accompanied by generous cafe tables and chairs.
  • 40 Adirondack chairs
  • iniature golf course and bocce, volleyball, and badminton courts

To read more…

 

July 13, 2013 Posted by | Uncategorized | , , | Leave a comment

The Market has Seen Rising Rates Before BUT Never so Far so Fast

Dire Predictions For Philadelphia Housing Recovery

  • The market has seen rising rates before, but never so far so fast
  • Short Term impact in sales:  The spike is causing a sense of urgency now, a rush to buy before rates go higher
  • Home sales and home prices will both come down if rates don’t return to their lows, and the expectation is that they will not
  • When the $8,000 credit went away:  New home sales fell 25 percent year-over-year, and existing home sales fell 24 percent year-over year
  • Increased contract cancellation for buyer’s that did not lock in thier rate
  • Mortgage applications have been falling for the past month
  • Applications to purchase a home are down 28 percent in the past month and up only 4.5 percent from a year ago. They should be up far higher, given that prices and demand are rising so fast
  • Mortgage rates going from 3.5 to 5 percent is roughly a 15 to 20 percent decrease in what the average buyer can afford
  • Rising rates are the number one worry for the majority of buyers right now

But to keep in prespective interest rates are still near historic lows. Unless employment and incomes increase it will be harder to keep a strong demand in housing purchases if interest rates continue to rise.

July 10, 2013 Posted by | Uncategorized | , , , , , | Leave a comment

Vacant Baseball Factory in Fishtown Converting to 30-unit Apartment

A vacant Baseball Factory in Fishtown section of Philadelphia, PA is converting to 30-unit apartment building.  The plan is to have one and two bedroom apartments.  The only is lack of parkling.  To read more

We Buy Apartments

We Buy Apartments

 

 

July 9, 2013 Posted by | Uncategorized | Leave a comment

Wall Street is Buying Houses in Certain Areas of the US

Wall Street is becoming the new landlord in certain areas of the US, that saw price stock rocket and then plumet (Vegas & Phoenix).  Large investment firms have spent billions of dollars over the last year buying homes in some of the US’s most depressed markets.

At the rate these firms are buying homes in those areas prices are increasing quickly.  Is this a short term spike?  Will prices level out?  Will they decrease again in these areas once Wall Street firms stop buying?

To read more…

June 4, 2013 Posted by | Uncategorized | , , , | Leave a comment

Mortgage Rates at Highest Level in a Year

Mortgage Rates at Highest Level in a Year

US Mortgage Rates

However, we are still historically low.

June 3, 2013 Posted by | Uncategorized | Leave a comment