Wanda's Blog

To illustrate the recent heat up of the housing market in Cedar Rapids in reference to the previous post here are the statastics:

Sale Pendings total for 2010 so far: 527

Sale Pendings for the last 30 days: 332

63% of sale pendings have occurred in the last 30 days

Data obtained through the CRAAR MLS as of Monday, March 8, 2010. Data from most recent weekend activity may not be reflected in the current data. Only properties listed and sold through the MLS were tracked.

From Cold... to SOLD! By Angie Ungs

Every year, the housing market in the Corridor area experiences a major cool down during the winter months. From Thanksgiving through Spring Break there is a lull in activity, largely due to holiday festivities and the weather. After all, who really wants to trek through three feet of snow and brave sub zero temperatures to go house hunting? Well, as it turns out... serious and smart buyers do!

As soon as the first sign of spring appears, so do the SOLD signs. Homes that have been on the market for several months through the quiet winter market suddenly sport the big red S-O-L-D all at once. Over the course of the weekend I noticed five homes go sale pending along my regular driving route to school and daycare. Four of these homes have been listed all winter, and one was just on the market for three days.

 March is a magical month in the Midwest for real estate. Home buyers start to come out of hibernation in February, which leads to an increase in the number of properties that go sale pending in March. Savvy sellers with good agents put homes on the market before the big thaw to take advantage of the serious shoppers and beat the flood of homes that will hit the market when the weather turns warm.  

This spring will be particularly interesting as home buyers respond to the federal tax credit incentives which expire at the end of April. Current home owners who have lived in their home for five years are eligible for a $6,500 tax credit for the purchase of a new home. First time buyers receive $8,000 for qualifying purchases. Purchase contracts must be finalized by April 30, 2010, and the transaction must close by June 30, 2010, in order to qualify.

Being Trendy as a Buyer Is Not Always Best by Angie Ungs

Just like fashion, residential architecture is a constantly evolving trend. Think back to your home in the 60's and 70's; I am willing to put money on the fact that there was a split foyer home somewhere on memory lane. In the 80's, two-story homes lined the suburban subdivision streets, and with the 90's came the ranch style home still wildly popular today. But just like fashion, architectural trends repeat themselves and what was old is eventually new again.

When deciding on what style of home suits you best, an open mind is critical. Just because 90% of new construction homes today are a ranch style, does not mean a ranch will best suit every individual's lifestyle. There are advantages and drawbacks to every style of home, and it's important to prioritize current needs, as well as consider how those needs may change in the near future.

For example, the ranch offers an open floor plan with the possibility of vaulted ceilings and a ‘great room' feel. However, many buyers don't realize that the bedrooms are often so close to the main living area that it can make a family of five feel like they are constantly right on top of each other.  A month after moving in they may already be dreaming of adding on or moving out! It may make more sense to give up the vaulted ceilings for more separation of space made possible in a two-story. The kids can play or study upstairs while mom and dad unwind in the living room.

On the other hand, having a main floor master and secondary bedrooms on the second story may be scary for expectant parents shopping for a new home for their growing family. The thought of a staircase separating mom and baby is nerve-wracking! But with further consideration, they may come to the conclusion that within a year, when baby is sleeping through the night, those fears are obsolete.

A split level home can offer the best of both worlds by providing multiple levels of living space, separation of bedrooms, and the possibility of vaulted ceilings on the main level. Of course, for buyers who plan to retire in the home, having several staircases to maneuver is less than desirable. A slab ranch style home may be exactly what these buyers need!

 The bottom line is that lifestyle, not trends, should dictate the style of home a buyer ultimately purchases. A good agent will walk the buyers through every style of home while helping them identify the advantages and disadvantages of each, eventually coming to a decision that they can comfortably live with for years to come. Agents need to make buyers realize that finishings and décor can easily be updated to fit a buyer's taste and change to stay current with the trends... but the layout and functionality of a home is meant to be permanent and is very expensive to alter.

I couldn't help but notice this morning (along my regular route to and from school and daycare) the increasing number of homes for sale by owner. The sellers have employed a variety of signage ranging from pre-printed generic signs from the hardware store, to hand-written ones with an illegible phone number, to those of a popular fee-based FSBO website. So I wonder... What exactly is the motivation to sell by owner? And why are there more every day?

More and more sellers are choosing to go it alone. Logic tells me that in a market as complex, and challenging as the one we are currently experiencing, that now more than ever would be the time to rely on a professional. But when finances are stretched and times are tough most sellers focus solely on saving a commission. Unfortunately, in their desperation they are often missing the big picture.

 The reality is that even with paying a Realtor's commission sellers typically come out in much better standing than selling by owner. When you have so much at stake, why risk losing it all just for the illusion of saving a little money? Hiring a professional should be seen as an investment in your peace of mind, as well as the protection of your interests and equity.

 The economic climate and barrage of negative news on housing markets from national media outlets has jaded buyers. Buyers often make the mistake of misunderstanding the difference between local markets and the national market. Our local market in the Cedar Rapids area has remained steady. Home values have been maintained, and foreclosures and short sales do not make up the majority of our MLS. But because buyers have been convinced that all sellers are desperate and have over-priced homes, sellers are more vulnerable than ever to unscrupulous buyers looking for a deal.

 The best way to sell your home and prevent an infinite number of complications is to hire a trusted professional. We understand that times are tough for many people. And we want to HELP you! Greed has no place in today's economy. Any good Realtor will work with a seller who has financial restrictions to come to an agreement that will satisfy everyone. It is in our best interest to facilitate home sales and prevent short sales and foreclosures, as this is OUR community, too.

 Is it fair to say that for sale by owners are hurting the housing market? Quite possibly. There are a number of variables involved in a real estate transaction, and when too many mistakes are made, it can begin to affect the local market. Certainly there are successful home sales by owners who have the time necessary to market a home and the knowledge or resources to take care of all of the legalities. The hardest part of an unsuccessful for sale by owner may be knowing when to turn it over to a professional. Waiting too long can put home owners is desperate situations which can lead to less than desirable results.

Love it or hate it, Valentine's Day is quickly approaching. In fact, the bulk of the lovey-dovey festivities will likely take place tonight and tomorrow. So what are YOUR plans for the weekend? If a romantic dinner is in order, why not spread the love and dine at one of our fabulous, locally owned eateries? Cedar Rapids has some fantastic restaurants perfect for special occasions. Whether you are celebrating with your sweetie, or a group of friends, there is a perfect place for everyone! Reservations recommended for most places this weekend, but they always do their best to accommodate walk-ins.

• Vino's Italian Restaurant (and RG Books lounge) http://vinosristorante.com/
• Zin's http://www.zinsrestaurant.com/
• Vernon Inn (Greek Place) http://www.vernoninn.com/
• Lighthouse Inn 6905 Mount Vernon Rd SE, Cedar Rapids, IA (319) 362-3467
• Ced-Rel Supper Club http://cedrelsupperclub.com/
• Osaka Japenese Steakhouse http://osakascr.com/
• Fiesta Del Sol 4801 1st Ave SE, Cedar Rapids, IA (319) 373-2477
• Kaji Japanese Grill 1060 Old Marion Rd NE Ste D, Cedar Rapids, IA (319) 743-3473
• Jaimen Innovative Asian Cuisine http://jiamencuisine.com/
• Daniel Arthur's Fine Dining http://www.danielarthurs.net/

• Ting's Red Lantern  540 Boyson Rd NE Ste C, Cedar Rapids, IA(319) 294-8666

Not into going out? Watching your budget? Consider visiting one of the local specialty shops for a few gourmet items to spruce up a night at home. Splitting a lovely bottle of wine, some great cheese and a decadent dessert will please the sophisticated palate and the wallet. The owners would be delighted to assist you in making some selections for a special evening.

• Vineria Wine Shop www.vineriawineshop.com
• First Avenue Wine House http://www.firstavenuewinehouse.com/
• Benz Beverage Depot http://benzbeveragedepot.com/ 

And don't forget about your favorite Hy-Vee! Many of them feature an expanded liquor department with wines from around the world. Check out the delicious cheeses and cold meats in the specialty case, and grab a fresh bakery item. Talk about one stop shopping... they even have a floral department!

So remember, this Valentine's Day you can spread the love and make your dollar go even further by supporting our local businesses.

After yesterday's spectacular Super Bowl Victory, the city of New Orleans shone brighter than it has in years. The city's residents had a reason to celebrate, to believe in something larger than themselves, and to move out of the shadows of the tragedy that has darkened the streets of the city for nearly five years.

I can't help but be reminded of the classic work of literature by Charles Dickens, A Tale of Two Cities. In the opening passage it seems we have a perfect description of the city of New Orleans- on both it's darkest day and it's brightest. One place on earth that has seen the best of times, and the worst.

While the celebrations and parties continue now through the Mardi Gras season, don't be fooled. New Orleans is still struggling to recover from the hurricane, the gross mishandling of aid money and efforts, the desperate and violent acts of its victims, and the subsequent lost revenue from tourism.

Americans have a short attention span, but have proved numerous times that we also have the power to do tremendous good during that short time. What we need to work on as a nation is keeping our energy and efforts focused on seeing devastated communities through the entire recovery and rebuilding process. It is long, it is difficult, it is thankless at times, and it is critical.

Communities in our nation, and around the world, continue to struggle to rebuild and recover after various disasters. My own city of Cedar Rapids was devestated by a flood in June of 2008, and it only takes a five minute drive to the downtown area to get a rude awakening and reminder of the hardships many still endure.

A heartfelt congratulations to the Saints, and the people of New Orleans!

Unless you work in the real estate industry or have extensive experience buying and selling properties, it is likely that you don't understand exactly how real estate agents are paid. Where do all of the commissions go? Often times, people avoid contacting a real estate agent in an attempt to avoid paying a commission. This is due to an unfortunate misconception. While every situation is unique, the likelihood is that having an agent on your side will only benefit you and help save you money in the end.

For example, did you know that using a realtor as a buyer costs you nothing? That's right... our services are free to home buyers! In fact, being represented properly by a real estate professional can actually help you save money by negotiating the best deal on your behalf, and guiding you through the process to help avoid common pitfalls (that could end up costing you a lot of money). Your agent will be compensated by the seller only after you find a home, make an accepted offer, and close the transaction.

Home sellers contract a realtor to list their home for a pre-determined commission rate. Sellers pay nothing until they accept an offer on their home and close the transaction. The commission is then taken from the proceeds of their home's sale, and distributed accordingly. This means that if your home does not sell, or if you decided to take it off the market for any reason, you do not pay us anything. See below for a simple example of how a commission is split. We only get paid when we get the job done!

•·         Home sale price of $100,000 with a 6% commission rate = $6,000 total

•·         Selling agent commission 3%= $3,000 (agent brings qualified buyer to the home for sale, facilitates financing, inspections, etc)

•·         Listing agent 3%= $3,000 (markets home for sale through various print & internet media, holds open houses, distributes marketing materials, etc)

•·         Each agent then must split their earned commission with their broker. The broker keeps up to half of the earned commissions to pay for costs incurred during the transaction (all advertising expenses, office space, supplies and staff, etc). Therefore, the actual compensation for each agent is approximately $1,500 for all of the time and services provided during the transaction. A single transaction can last from 1-12 months depending on circumstances.

Because there is no salary, realtors depend on the loyalty of clients in order to be compensated for all of the time and work dedicated to serving them.

This Market Report is brought to you by Wanda Greif-Tharp with Coldwell Banker Hedges Realty. The report is for residential single family homes only and may not include all sales activity in the area. Figures for sold prices used are the GROSS sold price, price after seller concessions or down payment assistance were not included.  This report or any part of it may not be used without permission from Wanda Greif-Tharp.

Make your homeownership dreams come true...

Thanks to our friends in Washington, DC the Home Buyer Tax credit has been extended!  I personally am giving my thanks to the powers that be.  I hope this will continue to stimulate the housing market.  My brokerage had a record breaking October as a direct result of the $8,000 tax credit to first time home buyers.  The new legislation also expanded the credit to include repeat home buyers. That amount is up to $6500.00.  My hope is that this will stimulate the sale of homes over $200,000.

Here's the skinny, but please contact your tax professional for more details:

• First-time home buyers must have a purchase agreement written before April 30, 2009.
• Ditto for the current home owners.
• Current home owners must have lived in their sold home for five consecutive years within the last eight.
• First-time home buyers may not have owned a home three years prior to the purchase of the new home.
• The credit amount is determined by the price of the home and the buyer's income.
• Homes must be under $800,000.
• Single buyer income must be $125,000 and under to receive the maximum credit.
• Married buyers income must be $225,000 and under to receive the maximum credit.
• Home buyers receiving the credit must live in the home for three years or the full amount of the credit will be recouped on the sale.

This is a great time to buy.  There are nice properties for sale in the Cedar Rapids real estate market. 

This is also a great time to list.  I say this with the hope that extending a credit to existing home buyers will stimulate the market in our area.  My advice is not to wait until Spring to list.  List now and see what happens.  

Thank you for reading my blog and have a great day!

Wanda

Wanda Tharp, Realtor, Coldwell Banker Hedges Realty, Licensed to sell real estate in Iowa