2011 North Andover SF market report

In 2011 the average days on the market was 94 days and the average sales price to listing price ratio was 97% while the average sales price to offer price was 93%.

The spring market in Andover started to gain momentum in March and peaked over the three following months April-June.  Sales agreement activity was it highest in June of last year leading to the peak in closings between June-August.  This is why pricing your home correctly will save you time and money.  The average home was visited 11 times before the sale was made and most of the activity on a new listing occured within the golden window of 10 days when it is fresh to the market.

Fannie first began piloting the program for online offers in 2010 in San Diego, Orlando, Fla., and Detroit. It now be accepting online offers for properties nationwide.

“Collecting offers online through HomePath.com will provide greater transparency for home buyers and their agents,” Jay Ryan, vice president for REO at Fannie Mae, said in a statement. “Our online platform will make it easier to sell properties to owner-occupants, which is a major factor in helping to stabilize communities across the nation.”

For more information on how the new program works, visit HomePath.com.

Source: Fannie Mae

Here are the triggers that may cause the most lender scrutiny of loan applications, according to a recent article at The New York Times:

Large deposits of money: Lenders are required to account for any cash gifts for down payments, such as from relatives. So if a borrower earns $5,000 a month and suddenly deposits an extra $10,000 beyond that, lenders may question where the money came from when applying for a loan.

The home’s new address: Buyers who are purchasing a primary home three hours from where they work may also draw increased scrutiny from lenders, according to The New York Times article. Borrowers may even need a letter from their employer stating that they work from home a few times a week. That’s because lenders may want to ensure the borrower plans to be an owner-occupant and not buying the property to rent or flip, which must be disclosed.

Signing up for new credit cards: Borrowers should avoid taking on extra debt when applying for a loan — so they may want to wait to buy all the new furniture. Extra debt can be a red flag to a lender and could even jeopardize closing on a new home if the debt pushes the borrower’s total debt levels beyond lender-accepted limits.

Source: “Mortgages: Triggers of Lender Scrutiny,” The New York Times (Nov. 3, 2011)

With more than 1 million U.S. homes in some phase of the foreclosure process, great deals abound — if you know how to separate the wheat from the chaff.
“The No. 1 reason to buy a foreclosure is the potential for a good bargain,” says Daren Blomquist of RealtyTrac.com, which follows the U.S. foreclosure market.
“Distressed properties have always come with a built-in discount — even before today’s foreclosure crisis.”
RealtyTrac figures show the average “short sale,” or distressed property, sold at a deep discount by a homeowner at risk of foreclosure fetched just $192,129 in the second quarter. That’s 20% less than the $241,715 the average nondistressed home sold for.
“Bank-owned” properties, or homes lenders have seized through foreclosure and have put up for resale, sold for even less. Also known as “real-estate-owned” properties (“REOs” for short), bank-owned homes went for only $145,211 on average during the second quarter — 40% below the average for all housing sales.
“Foreclosures might not be for every buyer, but we believe they represent a great opportunity for many buyers,” Blomquist says.
Still, he recommends would-be foreclosure buyers tread carefully.
After all, foreclosed homes are typically sold “as is,” even though many fell into disrepair as their former owners struggled with money troubles.
Some ex-homeowners also damage homes on their way out the door, while other properties sit vacant for months or years — attracting vandals or falling further into decay.
How can you tell the good from the bad and the ugly?

Here are five things Blomquist says smart foreclosure buyers should always do:
Tip No. 1: Focus on REOs if you’re a novice
Blomquist says inexperienced buyers should probably steer clear of foreclosure auctions and possibly even short sales, focusing instead on REOs.
After all, short sales can involve lengthy negotiations with lenders for approval, while foreclosure auctions require all-cash payments (you can’t take weeks to secure a mortgage). You also can’t inspect a home that’s facing foreclosure auction, as its current residents technically still own the property and don’t have to let you in.
By contrast, REO deals are very similar to traditional home sales.
Lenders typically hire real estate agents to show REO properties to would-be buyers, and also allow home inspections and the use of mortgages to finance purchases.
At the same time, REOs generally offer the lowest prices of any distressed properties.
Blomquist says that because they’re often in the poorest condition, while banks frequently heavily discount REOs to promote quick sales.
“A bank isn’t emotionally attached to a REO — it’s just looking to recoup as much of its losses as possible,” he says. “So the lender is often more willing to capitulate on price.”
Tip No. 2: Inspect properties carefully
Assuming you follow Tip No. 1, you’ll have a chance to have a home you’re looking at professionally inspected.
That’s key, because most short sales and REOs are sold “as is,” even though their financially strapped former homeowners rarely kept up with the maintenance.
Blomquist recommends having a good home inspector go carefully over any foreclosure you’re thinking about buying. Then present the seller with a list of all problems and estimates about how much they’ll cost to fix, using this rundown as a tool to negotiate a lower price.
Tip No. 3: Set up financing in advance
Blomquist says many short sales and REOs are actually attracting multiple offers these days, so you should set up mortgage financing in advance.
“Having your financing in order in advance is crucial,” he says.
He recommends getting pre-approved for a loan before looking at properties. You should also check your credit score, fix any credit problems and set aside enough cash for a down payment.

Tip No. 4: Hire a good buyer’s agent
“An experienced buyer’s agent — particularly one who’s familiar with foreclosures — can really help you navigate the process,” Blomquist says.
The National Association of Realtors offers a Short Sales & Foreclosure Resource certification to agents who take a special class on the subject. Similarly, the private Charfen Institute provides classwork leading to a Certified Distressed Property Expert designation.
The Charfen Institute and RealtyTrac also maintain online databases of buyer’s agents who specialize in distressed deals.
Tip No. 5: Research your market
Study your local foreclosure scene carefully and understand how much properties are selling for, how quickly they’re moving and how much a distressed home’s value will likely rise in the future.  “It’s important to not make the mistake of counting on any major price appreciation in the near term,” Blomquist notes. “We’re still in a depressed market, and we’re probably not going to see home prices appreciate much for quite some time.”