New Canaan Real Estate | JAN 2-8 MARKET REPORT | 4 Real Estate Resolutions for 2012

New Canaan Real Estate Market Activity • Week of January 1

NEW SINGLE FAMILY RESIDENTIAL LISTINGS - photos, addresses & pricing displayed above

ACTIVE SINGLE FAMILY RESIDENTIAL LISTINGS

SINGLE FAMILY RESIDENTIAL LISTINGS UNDER CONTRACT

SINGLE FAMILY RESIDENTIAL LISTINGS CLOSED

3 Single-Family Residential Property Transfers • Week of January 1

List $774,000 / SOLD $774,000 . 39 Myanos Road . Taber to Fundaro

List $1,949,000 / SOLD $1,720,000 . 92 Turtleback Road S . Cardasis to Imbruce

List $2,595,000 / SOLD $2,250,000 . 655 Weed Street . Willis to DeMuth

Source: FLEX New Canaan Multiple Listing Service.

2012 Real Estate Resolutions … for New Canaan Buyers, Sellers, Homeowners & Renters Alike !

 If you are anything like the typical, average New Year’s ‘Resolution-setter’ (I am :), you’ve probably already declared that 2012 will be your year (I have :). But of course that means different things to different people. It might be the year you pay off your credit cards (done! :))), fit back into your ‘skinny’ clothes (what I would not give - lol) or finally take that vacation you’ve been dreaming of (ahhh, those tropical breezes ...).

Given the volatility of the real estate market over the last few years, perhaps more than a few of you are also considering including real estate resolutions on the short list of things you want to take care of over the next 12 months.

Whether your stage of life renders you more interested in buying, selling, getting right side up - consider adding one of these real estate resolutions to your list ...

RESOLUTION #1

Buyers, fix up your financials and buy a home . It’s no secret that today’s mortgage lending world is difficult (to say the least). But don’t let that stop you from buying a home in 2012. The name of the game is to prepare, prepare, prepare. In particular,

• pull your papers together. Spend January gathering up your past two years’ federal tax returns and W-2s; your last two months’ pay stubs; and statements from bank and other asset accounts, like retirement accounts and investment accounts. You might also find it handy to have marriage and divorce certificates on hand, as well as the statements from any credit, auto or student loan accounts you hold.
• start a running file to collect and keep handy, new stubs and statements going forward throughout the year. That way, when you find your dream home and your lender asks you to refresh your application with the latest versions, you will not have to go through an arduous and time-consuming hunt ‘n peck session.
• compile cash to close. If you are serious about buying a home this year, you’ve probably already started saving, or at least know where and how you plan to access your down payment funds. Early this year, meet up with your real estate and mortgage brokers and do a double-check on how much cash you’ll need for your down payment and closing costs to buy the sort of home you’re looking for, in a location you’d like.
• resolve timing matters regarding gift money or money from your own retirement accounts that you plan to use toward your purchase. You might need some lead time in order to draw your own funds, specific documentation of where the monies came from, or a couple of months for the money to sit and ‘season’ in your own accounts before the lender will greenlight your mortgage; the best practice is to make yourself aware of any such requirements as soon as possible.
• have your mortgage pro run your credit report. Again, if you’re planning to buy this year, chances are you have already pulled your own reports from the three bureaus. But as you move down the home buying timeline, it’s imperative to get your mortgage broker or banker to pull their versions of your reports, as those reports are what the lender will use. This is another task you should check off your to-do list sooner rather than later. If by chance an error or issue does arise, you’ll need some time to remediate your report, whether by paying off that mystery collection, disputing an erroneous ding on your own or obtaining a Rapid Rescore.

RESOLUTION #2

Sellers, price it, spruce it and sell it . Overpricing is a certain way to ensure that your home lags on the market, causing you more anxiety and costing you more money as the days turn into weeks, months or even longer. Rather than testing the market, the end result of overpricing is usually that you end up receiving no or lowball offers, or even resigning yourself to lowering the price below what you could have originally gotten.

Resolve to price your home correctly before it goes on the Multiple Listing Service. Study our local market here in New Canaan, visit Public Open Houses similar to yours, look at as many recent comparable sales as possible, and be sure to talk to your agent in earnest. In fact, you might consider talking to several local realtors before settling on your home’s list price. I really think that 2012 is going to be a good year for real estate here in town, but perhaps a rather competitive year for sellers, so it is important that your home best the competition. Manage your own urge to overprice so that your property is well positioned.

RESOLUTION #3

Homeowners, get right-side up . Over 25 percent of Americans who have a mortgage owe more than their home is currently worth. While getting right-side up, so to speak, is certainly easier said than done, it’s not impossible (especially if you include getting your payments lowered in your definition of right-side up). 2012 might be your year to

• take advantage of newly expanded federal underwater refinance programs like the Home Affordable Refinance Program (HARP 2).
• get assertive about getting a loan modification – even if you’ve been rejected before, and even if you have to get help from a non-profit credit counseling organization or a program like NACA’s Home Save Program.
• put your home on the market, listing it as a short sale.
• keep in mind that the federal income tax exemption on mortgage debt that is forgiven through a foreclosure or short sale is currently set to expire on December 31st of this year, but banks are taking around 2 years after the first missed payment, on average, to foreclose on homes. If you list your home as a short sale with an experienced realtor, you have a better chance of avoiding the potentially massive income tax implications of offloading your upside down home than you do if you just stop making the payments and walk away from it!  

RESOLUTION #4

Renters, make the rent vs. buy decision and start saving . At times, and in certain situations, it might be, and often is, actually cheaper to own a home than to rent it! Mortgage rates hit record lows last month. It continues to be a strong buyer’s market and if you think you might be ready to commit to homeownership, this is exactly the right time to start getting serious about proceeding down the path to home ownership.

It can take years to save enough cash to buy a home, not to mention the many moons it takes today’s buyers to find and buy a home. So, if you do decide to buy, you’d be wise to start saving up for a down payment now, in order to maximize your chances of getting into the market while home prices are still relatively low (even if that is a year or more down the road).

In the same vein, look for spending cuts you can make that will enable you to save as much as possible each month until you reach your goal. Take on extra work, if you can, to stash more cash in your savings account. And consider setting up a separate savings account called “Home” where you can watch it grow and stay inspired to keep moving toward your goal.

Source: brokerbeat edited & reblogged Trulia

Thank you for taking the time to read my column in Patch, new posts of brokerbeat on Patch publish weekly on Friday mornings.

NEXT WEEK . Find Your Perfect New Canaan Home !

May this be your year, with my best always ... Regina

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