All Posts Tagged With: "discount"
What To Do In A Falling Real Estate Market
The seller was at wit’s end, a not unreasonable location given that the asking price for her beloved abode had fallen by $100,000 and further reductions loomed ahead. The house in question is well-located and beautifully prepared, but the local marketplace has begun to ease. The vast and predictable price increases of the past few [...]
19Sep2008 | Peter G. Miller | 0 comments | Continued
Speculator Risk Soars With Home Builder Discounts
If the full-page ads in my local paper are to be believed, new home demand has begun to flag. The issue is not how many units will be sold, rather it’s the way they’ll be priced. Recent ads have offered new home discounts ranging from $70,000 to as much as $100,000. In many areas across [...]
17Sep2008 | Peter G. Miller | 0 comments | Continued
How To Cut Real Estate Closing Costs
It may well have been the most unusual stewardship seen by the Department of Housing and Urban Development in recent years. HUD Secretary Mel Martinez has both resigned and left behind an impressive record. What’s remarkable about Martinez — now a U.S. senator from Florida — is that during his time in Washington HUD operated [...]
13Sep2008 | Peter G. Miller | 0 comments | Continued
How do Federal Reserve decisions to raise or lower interest rates impact the mortgage market?
The Federal Reserve controls two important rates: First there is the “federal funds rate– — the interest level banks can charge each other for the use of money overnight. Second, there is the “discount– rate — that’s the cost banks pay to borrow directly from the Fed. In effect, the Fed does not control long-term [...]
9Sep2008 | Peter G. Miller | 0 comments | Continued
How Do I Bargain With A Builder?
Builders are merely sellers. Their prices and terms are negotiable to the extent that market forces favor negotiation. Thus, if a builder is having an easy time selling out a project the chance to negotiate (get better terms) is poor. If the builder is having problems, then price and terms are likely to be very [...]
30Aug2008 | Peter G. Miller | 0 comments | Continued
Does it make sense to buy foreclosures?
A given number of homes are foreclosed each year. Most homes are not actually sold at auction as the owner and lender work out a deal, the house is sold by the owner prior to the foreclosure action, or everything is on hold while the owner declares bankruptcy. Foreclosures are typically sold in “as-is” condition [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
Can I discount the sale price to create a down payment?
No. Lenders provide financing on the basis of the sale price or the appraised value, whichever is less. In the case of a “discounted” price, say selling a home worth $350,000 for $340,000, the sale price is $340,000. Lenders do not recognize a discount. A better approach is to pay full market value but to [...]
27Aug2008 | Peter G. Miller | 0 comments | Continued
What’s a title insurance “re-issue” rate?
It sometimes happens that a property is sold or refinanced more than once within a five- or ten-year period. In such instances, if title insurance is obtained from the same firm, it’s often possible to get a re-issue (discount) rate. The discount can represent a significant savings, thus it is worthwhile to ask if such [...]
26Aug2008 | Peter G. Miller | 0 comments | Continued
How Big Is The Foreclosure Discount?
Here’s a puzzle: If a lender sells a foreclosed home what kind of discount will be available to buyers? Is it possible that there will be no discount, some discount or a huge discount? These are tough questions because if local markets are strong enough, there’s no discount at all according to Christopher Cagan, Ph.D., [...]
24Aug2008 | Peter G. Miller | 0 comments | Continued
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