How does the foreclosure in your neighborhood effect you?

According to a recent article by the Associated Press in the spring, bank-owned homes sold for 40 percent less than the average price of other homes. Also homes going thru the process or a short sale sold for 21% less than the average home sold.

A big challenge in selling homes today is that appraisal standards are tighter and more difficult than ever before. A big part of your home sale is determined by the recent sales of comparable homes in your neighborhood. Typically “Comps” are used for recent sales going back 1 year. New standards often limit that 6 months.

The good news is that foreclosures are slowing down due to the fact that many banks had slowed their foreclosure processes while state and federal officials continued to investigate possible faulty practices.

So what is your home’s market value today? Contact a local Realtor and ask for a market analysis. This should be free of charge to you. If not call another Realtor who can help you determine a current market value.

Paul Bettencourt is a local realtor and can be reached at Woods Real Estate at (978) 262 9665, or you can find him at http://www.facebook.com/dracutrealestate.

The wild ride on Wall Street has turned into a great opportunity for potential home buyers, after the Federal Reserve locked in historically low interest rates.

This wild ride on Wall Street creates opportunity for home buyers, worried investors are headed for the safety of the bond market…increased demand for bonds leads to a lower yield and lower interest rates.

If you have been waiting for the bottom to buy a new home, my opinion is you have found it. If you or someone you know is renting, take the time to chat with a Realtor or mortgage broker to see how affordable owning is right now.

Until you have been turned down for a mortgage, don’t assume you don’t qualify. The banks have money to lend and they want to lend.

Homeowners can lock in a 30-year fixed mortgage at a rate of 4.25 percent, or a 15-year loan for 3.5 percent. This has many renters thinking about making a purchase.

With home prices and mortgage rates both at record low’s at the same time makes this is a no brainer. The same goes for current home owners looking to relocate, downsize or move up to their dream home. Yes, you are selling at the bottom, but you are also buying the new home at the bottom and getting a great mortgage. Don’t fall into the misbelief that you need to wait for prices to increase in order to sell. It will be a very long wait. While you’re waiting the interest rates will rise and so will the price of your next home.

So do your part to stimulate the economy and buy or sell a home today.

Paul Bettencourt is a local realtor and can be reached at Woods Real Estate at (978) 262 9665, or you can find him at http://www.facebook.com/dracutrealestate.