VR SAM Short Notes for 2010
Nationally, 2010 promises continued opportunity for buyers and a far improved year for sellers. Buyers will continue to see very favorable home prices, historically low interest rates, and the extended tax credit for first time buyers, and many repeat buyers.
And for sellers, although we are still years from a full recovery of prices, inventory has declined with the increased buyer activity, which clearly stabilizes home prices and in some cases, resulted in appreciation. This reduced inventory also means a more balanced negotiations on the prices as well. In many areas, there are still a considerable number of future foreclosures that will slow recovery, but it should be better than 2008 and 2009.
But...the Fed has announced the end to it's Debt Purchase Program on April 1, 2010 with a prediction that interest rates will jump by 3/4%!
HEADS UP! This may sound like a real snoozer, but both buyers and sellers need to be very aware of changes in the "Real Estate Procedures and Settlement Act," (RESPA) that could impact your settlement date. Taking effect on Jan 1, 2010, certain changes in the "Good Faith Estimate or GFE," could trigger a mandatory, non-waiverable three day disclosure period. If this occurs one week prior to settlement, it could possibly delay your settlement date, which could be very ugly with the movers sitting in the driveway of your new home. From the seller perspective, a delayed settlement could result in a delay in receiving the proceeds from the sale on time, which in turn could delay settlement on a new home. While the new RESPA rules will provide more clarift and transparency in the loan process, we expect the learning curve and variations in interpretation by settlement companies and lenders to initially cause disruption in the process.
VR SAM® strongly encourages buyers in the first half of 2010 to plan their household goods shipment / move in for several days after settlement. Hey, it will give you time to paint! Likewise, we strongly encourage sellers to plan a subsequent settlement on their new home for several days after the settlement date on their existing home to allow for unanticipated glitches and settlement delays in the new process.
The new HUD Settlement Cost Booklet (link below) has an excellent explanation for new GFE's and HUD 1settlement documents, both changed as of 2010. We strongly endorse it for use by first time and repeat homeowners.
Speaking of First Time and Repeat Homeowners, here's a reminder that to qualify for the $8000 / $6500 (first time / repeat) homeowners credit, you must be under ratified contract by April 30th and settled by June 30th, 2010 to qualify. Be certain that this will create a backlog for both lenders and settlement companies as these dates approach, so the old early bird approach may benefit your bank account!
Veteran Realty Serving America’s Military, Inc., VR SAM®, is a partnership of retired Military Officers and Spouses, all Military Realtors, serving Military Families purchasing or selling homes in the Northern Virginia region including Fairfax County, Prince William County, Loudoun County, Fauquier County, Stafford County, Arlington, and Alexandria, Many of our purchaser clients are PCSing to the Pentagon, NRO, Fort Belvoir, Fort Meyer, Anacostia, Bolling AFB, Andrews AFB, Navy Yard, Quantico, Coast Guard Headquarters, and other NOVA military installations. VR SAM also serves a large number of defense contractor employees and Federal Employees from the FBI, NCIS, CIA and other agencies. Call VR SAM today to learn about our industry leading purchaser client credit and competitive listing programs and rates.
VR SAM is affiliated with Jobin Realty Manassas, 9327 Main Street, Manassas, VA 20110. 703 365-9090
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