Dec. 16, 2015

Des Moines Foreclosures? Still A Good Deal?

 

I still get asked about foreclosures all the time. Are there still great deals to be had when buying Des Moines foreclosures? Well sometimes I guess. You are going to have to work a little harder to find them that's for sure. Most I see anymore are over priced and need more work than most are willing to do. Again you might find that diamond in the rough if you willing to put in the time. There are not many option right now but the few that are out there can be found at http://www.movingiowa.com/search/foreclosure_search/

Contact Des Moines Foreclosure Expert

JC Walker
Realtor
RE/MAX Precision
(515)707-8487

Posted in Moving Iowa Blog
Nov. 17, 2015

Are Low Ball Offers Working In Des Moines

 

We get that sometimes it's fun to play the role of the buyer and roll the dice and hope for the best. However rolling the dice could mean upsetting that person who holds the key to your future. Oh & those house key's you won't get if you get too crazy.

Sometimes it's not a bad idea to take your Realtor's advice and write an offer that's close to the asking price or maybe even full price if you know there are other interested parties. As much as I love my job it can still be frustrating watching future home owners tap dance on their own dreams by not being wise when it comes to the initial offer. All I'm saying is there is nothing wrong with paying what someone is asking for their home. In many cases they have it priced right and maybe even under market value to get it sold.

Below you will find stats telling you what many central Iowa homes sold for vs what they were asking by percent. So basically the close price to list price ratio. These are from sales since the beginning of October of this year.

 

Des Moines MLS Stats

Des Moines MLS Stats

If you look at the numbers they tell you one thing. An average 98.5% Close To List Price Ratio is pretty good. Maybe your Realtor wasn't blowing smoke after all and had your back the whole time. So don't mess around and take a chance losing that home you love because you wanted to squeeze a few more bucks out that seller. 

JC Walker
Realtor
RE/MAX Precision
(515)707-8487

 

 

 

Posted in Moving Iowa Blog
Nov. 16, 2015

Des Moines Snow Removal

Not sure I'm ready for the white stuff to start flying. Just noticed snow is in the forecast for the first time. I can tell you my friends over at Caligiuri Enterprises are ready for the snow. They are looking to add new accounts for snow removal for Des Moines & surrounding areas. No job is too big and they know it's a 24/7 job that needs to be done as fast as possible. Eric & his crew have been handling snow removal for many clients for a number of years. So if you are looking for a change or a company that get get it done right call the folks at Caligiuri Enterprises.

Des Moines Snow Removal

Posted in
Sept. 25, 2015

Produce More Wealth Buying Not Renting

 

Buying A Des Moines Home Is Better Way to Produce Wealth Than Renting | Simplifying The Market

Buying that Des Moines home will produce more wealth than renting it!

According to the latest Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index homeownership is a better way to produce greater wealth, on average, than renting.

The BH&J Index is a quarterly report that attempts to answer the question:

Is it better to rent or buy a home in today’s housing market?

 

The index examines that entire US housing market and then isolates 23 major markets for comparison. The researchers at use a “’horse race’ comparison between an individual that is buying a home and an individual that rents a similar quality home and reinvests all monies otherwise invested in homeownership.”

Ken Johnson, Real Estate Economist & Professor at Florida Atlantic University, and one of the index’s authors states: "The U.S. as a whole is still in clear buy territory. The cities of Cincinnati, Chicago, Cleveland, and New York City are deep into buy territory."

Miami and Portland had been inching closer toward renting being the better option but have "pulled back from the edge." Johnson goes on to say, “that's a good sign for home pricing as it suggests prices are going to level off in these metro areas."

Bottom Line

Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, so lock in your housing cost with a mortgage payment now. Search for Homes For Sale In Des Moines Iowa


JC Walker
Realtor
RE/MAX Precision
(515)707-8487

Posted in Moving Iowa Blog
Sept. 3, 2015

What you Really Need to Qualify for a Mortgage?

What Do You Really Need to Qualify for a Mortgage? | Simplifying The Market

 

A recent survey by Ipsos found that the American public is still somewhat confused about what is actually necessary to qualify for a home mortgage loan in today’s housing market. The study pointed out two major misconceptions that we want to address today.

1. Down Payment

The survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 36% think a 20% down payment is always required. In actuality, there are many loans written with a down payment of 3% or less.

Here are the results from a Digital Risk survey done on Millennials:

Millennials & Down Payments | Keeping Current Matters

2. FICO Scores

The Ipsos survey also reported that two-thirds of the respondents believe they need a very good credit score to buy a home, with 45 percent thinking a “good credit score” is over 780. In actuality, the average FICO scores of approved conventional and FHA mortgages are much lower.

Here are the numbers from a recent Ellie Mae report:

FICO Score | Simplifying The Market

Bottom Line

If you are a prospective purchaser who is ‘ready’ and ‘willing’ to buy but not sure if you are also ‘able’, let's get together to discuss your true options.

 

JC Walker
Realtor
RE/MAX Precision
(515)707-8487


Posted in Moving Iowa Blog
Aug. 23, 2015

When Is It A Good Time To Rent?

Homes For Sale In Des Moines Iowa

People often ask whether or not now is a good time to buy a home. No one ever asks when a good time to rent is. However, we want to make certain that everyone understands that today is NOT a good time to rent.

The Census Bureau just released their second quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:

 

Homes For Sale In Des Moines Iowa

At the same time, a report by Axiometrics revealed:

“The national apartment market’s annual effective rent growth rate of 5.1% in June 2015 represented a 47-month high, and continued a streak of 5.0%-plus rent growth that is now the longest in at least six years, according to apartment market research. The effective rent growth in June 2014 was 3.7%, putting June 2015’s exceptional performance into perspective.

This is the highest rate since the 5.3% of July 2011. The metric has reached at least 5.0% for five straight months, the longest such streak since Axiometrics started monthly reporting of annual apartment data in April 2009.”

Where will rents be headed in the future?

Stephanie McCleskey, Axiometrics vice president of research, commented on the above report in an article by Real Estate Economy Watch:

“Rent growth is just shy of the post-recession peak, and the June metrics reflect the continued strength of the apartment market. The demand for apartments is still strong, despite the record number of new units being delivered this year. Tight occupancy is why landlords can push rents higher.”

Bottom Line

If you are ready, willing and of course able to buy, now may make sense. 

Search Homes For Sale In Des Moines Iowa


JC Walker
RE/MAX Precsion
(515)707-8487


Posted in Moving Iowa Blog
Aug. 12, 2015

Don't Wait To Move Up!

Don’t Wait to Move Up to Your Dream Home! | Simplifying The Market

Don’t Wait to Move Up to Your Dream Home!

Now that the housing market has stabilized, more and more homeowners are considering moving up to their dream home. With interest rates still near 4% and home values on the rise, now may be a great time to make a move.

Sellers should realize that waiting while mortgage rates are increasing probably doesn’t make sense. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain budget for your monthly housing costs.

Here is a chart detailing this point:

Buyer's Purchasing Power | Simplifying The Market

With each quarter percent increase in interest rate, the value of the home you can afford decreases by 2.5%, (in this example, $10,000). Experts predict that mortgage rates will be closer to 5% by this time next year.

Act now to get the most house for your hard earned money.

 

Posted in Moving Iowa Blog
Aug. 7, 2015

Selling Your Des Moines Home?

 

Selling Your Des Moines Home

In today’s market, where demand is outpacing supply in many regions of the country, pricing a house is one of the biggest challenges real estate professionals face. Sellers often want to price their home higher than recommended, and many agents go along with the idea to keep their clients happy. However, the best agents realize that telling the homeowner the truth is more important than getting the seller to like them.

There is no “later.”

Sellers sometimes think, “If the home doesn’t sell for this price, I can always lower it later.” However, research proves that homes that experience a listing price reduction sit on the market longer, ultimately selling for less than similar homes.

John Knight, recipient of the University Distinguished Faculty Award from the Eberhardt School of Business at the University of the Pacific, actually did research on the cost (in both time and money) to a seller who priced high at the beginning and then lowered the their price. In his article, Listing Price, Time on Market and Ultimate Selling Price published in Real Estate Economics revealed:

“Des Moines Homes that underwent a price revision sold for less, and the greater the revision, the lower the selling price. Also, the longer the home remains on the market, the lower its ultimate selling price.”

Additionally, the “I’ll lower the price later” approach can paint a negative image in buyers’ minds. Each time a price reduction occurs, buyers can naturally think, “Something must be wrong with that house.” Then when a buyer does make an offer, they low-ball the price because they see the seller as “highly motivated.” Pricing it right from the start eliminates these challenges.

Don’t build “negotiation room” into the price.

Many sellers say that they want to price their home high in order to have “negotiation room.” But, what this actually does is lower the number of potential buyers that see the house. And we know that limiting demand like this will negatively impact the sales price of the house.

Not sure about this? Think of it this way: when a buyer is looking for a home online (as they are doing more and more often), they put in their desired price range. If your seller is looking to sell their house for $400,000, but lists it at $425,000 to build in “negotiation room,” any potential buyers that search in the $350k-$400k range won’t even know your listing is available, let alone come see it!

One great way to see this is with the chart below. The higher you price your home over its market value, the less potential buyers will actually see your home when searching.

Des Moines Real Estate

A better strategy would be to price it properly from the beginning and bring in multiple offers. This forces these buyers to compete against each other for the “right” to purchase your house.

Look at it this way: if you only receive one offer, you are set up in an adversarial position against the prospective buyer. If, however, you have multiple offers, you have two or more buyers fighting to please you. Which will result in a better selling situation?

The Price is Right

Great pricing comes down to truly understanding the real estate dynamics in your neighborhood. Look for an agent that will take the time to simply and effectively explain what is happening in the housing market and how it applies to your home.

You need an agent that will tell you what you need to know rather than what you want to hear. This will put you in the best possible position.

Call Des Moines real estate agent JC Walker to find out what your home is worth.

JC Walker
RE/MAX Precision
(515)707-8487


Homes For Sale Des Moines IA

Posted in Moving Iowa Blog
July 28, 2015

5 Reasons You Should Sell Now

5 Reasons You Should Sell Now! | Simplifying The Market

5 Reasons You Should Sell Now!

As the temperature continues to rise, buyers are coming out ready to purchase their dream home. Here are five reasons that you should list your house for sale now.

 

1. Strong Buyer Demand

Foot traffic refers to the number of people out actually physically looking at homes right now. The latest foot traffic numbers show that there are significantly more prospective purchasers currently looking at homes than at any point in the last two years!

These buyers are ready, willing and able to purchase… and are in the market right now! Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

The National Association of Realtors reported last week that housing supply has slipped to a 5.0-month supply. This is still under the 6-month supply that is needed for a normal housing market.

This means, in most areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices.

There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market in the near future.

The choices buyers have will continue to increase. Don’t wait until all this other inventory of homes comes to market before you sell.

3. Home Prices Are Skyrocketing

Daren Blomquist, President of RealtyTrac, recently shared insights into why “2015 is a Great Year to Sell” by saying:

"So far in 2015, [sellers] are realizing the biggest gains in home price appreciation since 2007. In June, sellers sold for above estimated market value on average for the first time in nearly two years."

One major factor driving prices up is the lack of inventory available for the amount of buyers in the market. Often buyers, who find a home that they would like to make an offer on, are met with the reality that they aren’t the only ones interested.

4. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now.

Prices are projected to appreciate by over 19.4% from now to 2019. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30-year housing expense with an interest rate near 4% right now.

Rates are projected to increase by a full percentage point over the next year according to Freddie Mac.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market. Perhaps, the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

Contact Des Moines Real Estate agent JC Walker (515)707-8487


Posted in Moving Iowa Blog
July 21, 2015

Think You Should FSBO? This Des Moines Realtor Says Think Again!

Think You Should FSBO? Think Again! [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

According to NAR's Profile of Home Buyers & Sellers:

  • 88% of buyers look for their new home online
  • Using a real estate agent can net you 13% more than FSBO'ing
  • There is a long list of people that you will have to negotiate with when you decide to sell your home, using an experienced professional can help ease the process.
JC Walker
RE/MAX Precision
(515)707-8487
Posted in Moving Iowa Blog