Short Sales In Albuquerque and Rio Rancho Take a Turn for the Better

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Even though they have been around for a long time, short sales did not really become a household term until relatively recently. In 2007, when all things in the housing market came crashing down, many of us saw the worst our real estate market had ever been. That was when countless homeowners found themselves in the impossible situation of owing more on their home than the property was worth.

You and I both know that no matter what a market might predict is the value of a home – sometimes life does not give us choices where we need them most. So for people that were equally as hard hit by the corresponding economic strife faced by the country at that time, there were almost no options.

Short sales were back then and remain till today, one of the best options for homeowners that have underwater mortgages. Alternatives to foreclosures, short sales allow homeowners to walk away from their mortgages, having paid the bank at least the fair market value on the property. Since it is a matter of the bank needing to accept a lesser amount than what is owed, the process is usually very lengthy and involves several steps and lots of people.

Though a short sale is never a good experience, it is definitely better than having to endure foreclosure. There are some credit ramifications of dealing with an underwater mortgage in this manner but they are not nearly as damaging as a foreclosure because it demonstrates the homeowners’ attempt to make good on the debt. Usually, most homeowners can purchase another home about two years from the time they did a short sale on their property whereas a foreclosure has lasting negative impact on a borrower.

Short Sale Activity Changing in the Albuquerque and Rio Rancho Markets

Locally, we have seen some changing trends in the short sale market. Three years ago there were 355 short sale closings in the area. One year later, the number was approximately 600 and this past year we saw an increase in the number of homes sold by short sale to about 855. What this means is that more banks are willing to process this alternative for struggling homeowners and the process is becoming more streamlined. In fact, some banks are realizing that the cost to litigate foreclosed properties is not worth the loss many short sale properties would help to avoid.

Here in our area, the actual number of short sale listings is going down – indicating less distress in the area and fewer homeowners with underwater mortgages. At a time when the nation’s economic outlook is still suffering and with the impending uncertainty that comes with an election year plus the shaky European economy, we are grateful for smoother short sales.

If you are dealing with this or other situations of distress concerning your property and are considering the alternatives – contact us today so we can go through your situation together and come up with a plan!  We’d love the opportunity to serve you!

Albuquerque Journal Shares New Insight About Real Estate

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What can be better than knowledge?  And in the world of real estate, this couldn’t be truer. In fact, since the advent of technology the real estate world has changed immensely. Consider that you are reading my real estate video blog that I established so that I could reach my valued community of clients, friends, family, coworkers and peers. Gone are the days of simple telephone only communication.  Now we have email, instant chat, social media, blogs and video to name a few.

In an effort to utilize these technologies that we have available to us today, protect our resources and also to maximize exposure to the happenings in Albuquerque, the Albuquerque Journal’s newspaper Sage recently changed to an online format. As part of the change, new and exciting additions were made to the magazine.  I was asked to take part in a panel of columnists to share expert opinions of their respective areas of expertise.

Very gratefully, I now have yet another forum through which to share the news, views, tips and tricks of an industry I am proud to be associated with. Today, I invite you to come visit the website and browse through the valuable information you will find. And while you’re at it, please stop by and read the most recent blog post about moving up or downsizing property. I hope you enjoy my online column and leave a comment!  I would love to hear more about what you would like to read about. Whether it is information on the latest market statistics, news about up and coming new developments, buyer or seller trends – whatever it is you want to read about, let me know.

I hope to see you there!

May 2012 Real Estate Market Update for Albuquerque

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I know that our office has been very busy with all the activity on our real estate market lately.  So much so, that there are so many days when we are working late into the evening.  Recently when I was in a meeting with the title company closing on a property for one of our clients, I learned that this phenomenon spreads far and wide into all facets of the real estate community.

With all this activity in our marketplace, I thought it would be a good idea to share with you what we have to look forward to this year and what, if anything, our clients should look out for in the process.

Interest Rates Still At All Time Lows

We have been watching interest rates dive during the past couple years and we can honestly say that this is quite possibly the best opportunity that will ever be presenting to potential buyers, homeowners and investors.  Whether you are considering buying your first home, trading up into something bigger and better or taking the opportunity to own an investment property – now is the time to do it.  Warren Buffett recently said that if it were practical, he would buy up “a couple hundred thousand single-family homes” as an excellent investment.  Especially for property owners willing to hold onto their home for at least 7 to 8 years and the low price of homes these days, the return on investment is expected to be a significant one.

Sellers Enjoying Multiple Offer Situations

As inventory continues to dwindle with the number of sales on the books, coupled with savvy buyers wanting to seize the low interest rate opportunity before they jump back up, it is no surprise that some sellers are seeing multiple offers. If the home is priced well, in great condition, located in a desirable location and has features that are on most buyers’ wish list, chances are the home will receive multiple offers.  Not only that, many homeowners are receiving top dollar on their homes – when bidding wars come into play and the sellers get at or near asking price.

Great Time to Refinance For Lower Monthly Payment

The extremely low cost of borrowing money these days provides an unprecedented opportunity for homeowners with an existing mortgage to pare down their monthly payment.  Another alternative is to switch to a 15-year fixed mortgage and get the home paid off much sooner. President Obama recently brought into fruition some programs that make homes affordable for mortgage holders by offering lower initial fees on qualified refinances as well as lower PMI rates.
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If you would like to explore the current market, take advantage and get into your dream home for pennies on the dollar of what you might have paid just a few short years ago, contact us today.  If you have been eyeing your dream home and did not think it was possible – think again!  It might just be within reach to buy now with today’s incredible rates.  Before the market hits bottom – as many are saying it already has – jump on the bandwagon and get your dream home today.  We are here to help you and look forward to making your dream a reality!