Home Prices Fading in the Lone Star State
While homes in Austin, Texas are still relatively expensive compared to smaller Texas cities, prices slid by 3% recently, which was more than any other metro area. Price drops for housing are at their highest level in almost two years, with other popular Texas cities like Fort Worth and San Antonio also experiencing 1.2% declines.
- Nationwide, prices rose 4.4% year-over-year, but there are some indicators that this growth could lose its momentum soon. Over 6% of U.S. home sellers have recently reduced their asking prices.
- Active listings have been on the market for an average of 46 days, which is the biggest increase in nine months.
- Inventory is losing momentum, too, which is another reason sales are falling. New listings posted one of their smallest year-over-year increases (6.9%) since February, as many sellers are postponing sales in hopes of lower mortgage interest rates.
"There's no getting around the fact that it's expensive to buy a home right now, but some people are having luck negotiating with sellers," said a Cleveland, Ohio agent. "Other buyers are finding creative ways to afford a home, like buying a duplex, living in one unit and renting out the other."1
Is Your New Listing on Google Street View?
When preparing to market a new listing, there's a lot to do...but did you remember to check out the property on Google Maps' Street View?
While this may seem unimportant, some potential buyers may surf over for a look. So, it's important to know what they'll see, or if they can see it at all.
Some homeowners have contacted Google and asked that their homes be removed from Street View by having its photos blurred. Privacy is often the cause, as some people don't like the idea of having their home on view to millions of Google users. Perhaps it was being renovated when the last Street View car drove past.
Whatever the homeowner's reason for requesting removal from Google Maps, it's best to ask why. This will help you clarify the situation with prospective buyers who want to make 100% sure the home isn't infamous for any reason (the Albuquerque home featured in the series Breaking Bad is an example).
Chances are that the explanation for a blurred home photo will be privacy-related, but it's best to make 100% sure this is correct for transparency's sake.2
Wire Fraud Scams Are Still Alive and Well
While scams attempted by hackers posing as title companies are nothing new—cases have been reported for almost a decade—sophisticated criminals may still target clients preparing to close a home purchase.
Here's a quick run-through of this scam.
- Criminals hack into a title company's email accounts and steal information pertaining to future closings.
- Next, they will steal company letterhead, email addresses, and other materials to prepare a fake email to send to buyers.
- The buyer receives the fake email that contains a request for them to wire money to an account as part of closing the purchase.
There are several ways to educate your clients against these and similar scams. You can send an email that explains these wire frauds or call them to discuss. You may also visit the American Land Title Assocation's website and check out their title scam information pages.3
Got A Listing That's a Lemon?
While some listings won't be to most prospective buyers' taste, occasionally one will stagnate without an obvious cause. Here are some reasons why this happens, and how you can encourage more viewings.
An initial offer fell through. While there are endless reasons for this to happen, some prospective buyers will assume that the first buyer discovered problems with the house. No matter what happened, it's worth being up-front with any prospective buyer's agents you may meet.
Renovations would be pricey. One example was a home in a prestigious community with a grand staircase and sunken living room. The agent explained that, while viewers loved the location, "everyone who saw it wanted to do so much to it". Marketing this type of home to buyers who are ready to carry out major renovations can be helpful, although price reductions are equally important.
Renovations without permits. Depending on the type of renovation or add-on, this may be an easy fix. A city inspector could assist with finding a solution. However, building violations can do major damage, including making the home ineligible for financing. Property liens can also deter buyers and their lenders.
Renters in residence. While some buyers aren't deterred by viewing a listing that's still occupied, a tenant may not be happy with the prospect of moving and subtly sabotage viewings. If the listing's in a hot market, you may want to discuss postponing going live with the listing until tenants have moved out.4
VA Buyers Allowed to Pay RE Commissions
VA executives explained that the June 11 circular was issued to help ensure that veterans using the VA-guaranteed home loan remained competitive buyers.
Program analyst Valery Behr stated: "Specifically, eligible Veterans, active-duty service members, and surviving spouses who use their VA home loan benefits can pay for certain real estate buyer-broker fees when purchasing a home."
Click here to view the June 11 circular.5
Sources: 1redfin.com, 2theamericangenius.com, 3theamericangenius.com, 4realtor.com, 5housingwire.com
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