Peter Lavelle

It is interesting to see the media, in its many forms, speculating about the real estate market, and in essence driving our economy. Well I stay informed about current events, the national market, and more especially in my community. However there is still buyer reluctance and I have often heard some say "I will wait until the market bottoms out."

If you are one of those buyers and can predict this, I want to retire early, so please give me the winning lottery numbers. Before anyone recognized the shift in the market it happened already, so when you feel as though it bottomed out, it will shift again. Many sellers are just now feeling and realizing what happened, the shift from the seller's market to buyer's market, and buyers traditionally are ahead of the game.

Let us also place this into a logical example. As we all know interest rates are very low, but are slowly increasing.
We will use an FHA style loan 3.5% down and a $1500 deposit. The seller agrees to 6% seller assist and the purchase price of $154,900 so the total mortgage will be $149,478.50 over 30 years.

At a fixed rate of 5.5% the monthly payment, principal, interest, tax, and insurance
$1,253.86.

Now you want to wait and the interest rate increased to 6%, that is only 1/2%, all being the same your payment is now $1,301.34.

Only an additional $47.48 per month x 12 months = $569.76 per year.
Now lets take that $47.48 over the course of the term of the mortgage: $47.48 x 360 = $17,092.80

What would you do with this additional money? Now what would happen when the market shifts again?
If you are on the fence and still waiting for the market to bottom out I hope you the best in predicting the future; but the figures are there and hopefully you will see the savings now.


Peter B. Lavelle
Citizens Premier Real Estate
(215) 396-0500 x 3440
http://www.peterblavelle.com
peter@peterblavelle.com

Information subject to errors and omissions.
Individual rates and circumstatnces vary.

It has been a while since I have posted or written a blog however this I must share;not only to real estate agents but also to those that feel compelled to sometimes feel obligated.

There is a property that is in need to be sold, brief scenario, parents have passed away and the property was willed to the family. For a while now the one brother has contacted me several times to sell this property, unfortunately he suffered some health complications but has bounced back. Due to him being several hundred miles away we decided on a fair market price; a difference of several thousands of dollars they thought they may sell the property for. Hint, hint, the need for a REALTOR.

He informed me that the other brother, the one that lives local to me, will contact me so we can get the property on the market. I received the call, set up the appointment, even called to confirm the evening and the morning of; no response. Although I did not receive a call back I still went to the place we were to meet, no one home. Ok I waited for a while, called, and then left. The appointment was set at 4 p.m. and I received a call back at 4:45 from the brother asking where I was. Uhhhhhh.....Hmmmmmmm.

By this time it was rush hour traffic and I was already stuck in it. "Yeah, well we can reschedule our appointment, what do you charge?" he stated and then asked. "I need to sell the house in 30 days and I am only going to pay xxxxx" he said. I let him talk and then responded, "Mr. xxxxx, the price of the properties in that neighborhood is selling for xxxxx, and due to that price my fee is xxxxx. The next available time I have is next Monday or Tuesday, are you available mornings or afternoon?" I was rather irritated that he did not respect my time, however I have been informed that I have the ability to hide my emotions well.

"You need to come back now and then we will discuss what 'I' am willing to pay you", he demanded. I took a deep breath in and informed him I was stuck in traffic and I was now heading home to have dinner with my family, we can reschedule for another day. "You need to come back now!" he demanded again. "Mr. xxxxx,"I stated "Thank you for the opportunity of considering me to sell your property, however I feel we will not be a good business team and I have to decline the offer." There was complete silence on the other end of the phone, and then "But you have to!" I replied and enforcing my decision, "Mr.xxxx I stand by my decision and the answer is no." He responded, " I'm gonna talk to my brother about this and we'll get back to you." The conversation ended and I thought to myself I will not hold my breath waiting for the call back.

Did I lose a listing? Yes. Did I keep my sanity? Yes. I took a stand that many will not, and stood by what I am worth and what is valuable to me. If I would have gone back, that would have been a long road of many headaches to come. There was no respect of time or value, and I know what my time is worth, and what value I have to offer.

Please keep this word in your mind's eye, NO! Always ask yourself is it worth it? If you have doubt and have to ask this question there is a high probability your answer will be no.

Current Residential Real Estate Activity February 13,2009

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