Delaware Homes For Sale:FREE SEARCH! Tom's Blog

Q. What can you tell me about buying a foreclosure?

A. Buying a foreclosure can be a very good way to get a home for as little as 70%-80% of its market value. But there are many potential pitfalls to be aware of.

When a homeowner defaults on their payments, usually after 90 days, the lender will send them a notice of foreclosure. The case will then proceed through the courts and, if there is no resolution with the homeowner, a final judgment will be issued and the home will be sold at a Delaware public auction.

The idea is to buy one of these homes before it goes to auction because very savvy buyers attend these auctions and, because you have to pay in full with a cashier's check, you better know what you're doing. It's a good idea to attend a few of these auctions, just as an observer.

The best way to buy one of these homes is to contact the owner before things go too far. You can get a list of impending foreclosures from the county courthouse. The potential problem here is that, once the homeowner is committed to the foreclosure process, they'll usually try to stay in the home as long as possible because they are not paying. If you intend to finance the purchase you may not be left with much time to arrange a loan before it goes to auction.

There is much to know when buying foreclosures and there are many companies that will gladly sell you their "secrets" to buying them. Most of them are pie-in-the-sky schemes. If you're seriously diligent, you can learn all you need to know through public sources.

I'd be delighted to discuss this further. (302)398-3757 Please give me a call and I'll be glad to help in any way I can.  Also Feel Free To Visit The Tom Davis Realtor Website to search homes for sale at: www.freehomesearch.dreamstation.com I can help you find some Delaware Home Deals!

Q. Which is a better investment, the stock market or real estate?

A. "Better" is a relative term. What is better for one person may not be for another.

Investing in the stock market is much more a passive investment than investing in real estate. You buy a stock and then wait to see which direction it goes, up or down. Your potential gain is determined by many factors, most of which you cannot control. If you make the right buying decisions you can make a lot of money, sometimes in a very short period of time. The reverse can also happen.

Delaware People who favor real estate as an investment are usually people who do not have the temperament for the level of anxiety that can be involved in stock investing and wish to put their money into something they can see and feel. Their feelings are "The stock market can go up and down in a matter of hours, but my house will always be there".

One important thing to remember about a real estate investment is that you can exert an influence over the investment. You can improve a house through repairs and additions and, in so doing, increase its market value. This can also be an enjoyable process for those who want "hands-on" involvement.

In addition, you can live in it and make it an integral part of your life. From raising kids to holiday functions, a home becomes a part of life that cannot be duplicated in a stock investment.

The bottom line is that there is no right or wrong answer. Historically you can't go wrong either way. Stocks and real estate have performed well over the years. It's just a matter of what your personal taste is.

 If you would like more information on Delaware Homes for sale please check my site: www.Freehomesearch.dreamstation.com Also I am available by phone at: (302)398-3757 and would be delighted to speak to you!  Thank-You for your interest in Delaware Real Estate.

My home has been on the market for months, why hasn't it sold?

Answe: Without a doubt the number one reason people can't sell their home fast is the price is too high.

In order to price your home to sell you need to know the true market value. Everyone claims their home is worth more than it really is worth. The truth is that your home is only worth what someone is willing to pay for it. Knowing this, it is important to find out what people are paying for homes that are comparable to yours. There are several methods of getting good home values and the list follows:

There are several websites that offer free home appraisals and most use public records to determine your home value. Basically the websites use local home sales to give you an idea of what your home is worth. It is important to only pay attention to the price that has been paid for a home that has been sold. Prices being asked for homes currently for sale are only fantasy until someone steps up and makes an offer.

Hire a professional appraiser and you will get the true value of your home. The price of a professional appraisal is around four hundred dollars here in Delaware.

There is another good reason to get a professional appraisal and that is credibility. Appraisers are licensed professionals and may only use sold data to determine value. Presenting an appraisal to a prospective buyer indicates authenticity and is rarely questioned by a buyer.

Have an experienced real estate agent like Tom Davis go ahead and pull the comparables for your home. This is an art and you need someone with experience to do this.

Fact is you can't sell your home if it is not priced right. Make sure you get a good estimate of what your home is worth and then price your home for slightly less to make it a competitive home for sale.

I'd be delighted to discuss this further. Please give me, Tom Davis a call at (302)398-3757 and I'll be glad to help in any way I can.  Also if you wish to see other homes in your area for sale please visit: www.FreeHomeSearch.dreamstation.com

Is it wise to use a flat-fee realtor to list my home for sale?

A. Many people believe that using a flat-fee realtor is a way to get their home listed in the multiple listing service (MLS) and still save a lot of money on the commission.
A flat-fee realtor charges a fee to place the home in the MLS and does little, if anything, else. That can be a false economy for a couple of important reasons.

First, it's not enough to just place the house in the MLS. It is desirable to offer a commission to any broker who brings you a buyer.

Second, MLS of Delaware Home printouts show the origin of the listing. If any Delaware agents see that the listing was placed by a flat-fee broker. Delaware Agents know that most people who sell by owner do not have the experience and expertise to understand all the potential liabilities that are part of buying and selling a home.

Many of my customers also come from all of my Delaware Marketing efforts not only online but in person with meet and greet of potential customers from various events.  Home searches find plenty of Delaware home deals by going to my website at: www.freehomesearch.dreamstation.com

Real estate transactions involve a lot of money and various DE legal contracts, Delaware state and federal laws, disclosure issues, fair housing regulations, and all manner of other things that can create big and costly problems for those who do not thoroughly understand the process. All customers are to be given the new CIS Information paperwork when they first meet with a Realtor in Delaware.  Realtors take on-going education to fully help consumers through a real estate transaction. 

The last thing real estate agents want in a transaction is the potential for problems that could involve them. They would much rather deal with other DE licensed realty professionals who know what they're doing.

If you do decide to use a flat-fee broker, and you don't have a thorough understanding of the process, you better make sure you hire enough professional help in every area  to guide you through the transaction. That could end up costing you a lot more than the commission you save by not hiring a full-service agent.

If there is anything that I can do to help you, don't hesitate to ask. Just give me a call at my Dover Office at: (302)398-3757 Just ask for Tom Davis and I'll be glad to help in any way I can. 

QUESTIONS From My Delaware Buyer: We're hearing a lot about "sub-prime" loans. What are they?

A. Sub-prime lending, is the practice of making loans to borrowers who do not qualify for the best market interest rates because of their deficient credit history. Most borrowers of this type have a credit score of less than 620.

Sub-prime lending is risky for both Delaware lenders and borrowers due to the combination of high interest rates, poor credit history, and adverse financial situations usually associated with sub-prime applicants. A sub-prime loan is offered at a rate higher than A-paper loans due to the increased risk.

Sub-prime lending is highly controversial. Opponents have alleged that the sub-prime lending companies engage in predatory lending practices such as deliberately lending to borrowers who could never meet the terms of their loans, thus leading to default, seizure of collateral, and foreclosure.

There have also been charges of DE mortgage discrimination on the basis of race. Proponents of the sub-prime lending maintain that the practice extends credit to people who would otherwise not have access to the credit market.

The controversy surrounding sub-prime lending has expanded as the result of an ongoing lending and credit crisis both in the sub-prime industry, and in the greater financial markets which began in the United States. In addition, many sub-prime mortgages have been made to borrowers who lack legal immigration status in the United States.

This phenomenon has been described as a financial contagion which has led to a restriction on the availability of credit in world financial markets. Hundreds of thousands of borrowers have been forced to default and several major American sub-prime lenders have filed for bankruptcy.

If there is anything that I can do to help you, don't hesitate to ask. Just give me a call at (302) 398-3757 and I'll be glad to help in any way I can. Also I update daily on my Dover Real Estate Website: www.TomSellsDover.Com To Search Homes Simply Click on the icon that says Search All Delaware Homes On My Site.  I look forward to helping you which remains my motto! 

QUESTION From a Delaware Real Estate Buyer.  Is this the best time to buy a new home or a used home?

A. With all the problems in the real estate industry, this may be the best time to get a good deal on a new home rather than an existing one.

In some cases, builders of new homes have trimmed prices to such an extent in the second half of 2007 that buyers in many markets are actually paying less per square foot on average for new homes than used homes. The median price per square foot for new homes nationally has dropped in 2007 while the median price per square foot for existing homes has actually risen.

People who have had an existing home on the market and can avoid having to sell (for job transfers, bankruptcies, and other life changes) will take the home off the market and sit tight rather than take a hit to equity.

Builders in Delaware, however, need cash to pay subcontractors and suppliers, to continue development, and pay their debts and cannot afford to sit on unsold homes. In many circumstances, builders would rather take a loss to get rid of inventory.

Builders now have to work hard to attract the Delaware buyers and are not only willing to negotiate on price, but will often throw in extras such as granite countertops, upgraded flooring, and subsidized loans to close a deal. And they're not only offering incentives to buyers, they're offering agents incentives such as special bonuses and free vacations for bringing in buyers.

Especially hard hit are individual developers who have purchased a piece of land and built a single "spec" house hoping to make a timely sale for a profit. These people are far less able to weather a downturn in the economy than large corporate builders and may be even more amenable to making a deal just to get out from under their financial burden.

If you want more information on this or any other real estate question, call and I'll be glad to help in any way I can. Call me Tom Davis your local Delaware Realtor at (302)398-3757 If your seeking property information please visit me online at: www.Freehomesearch.dreamstation.com  All property that i send is updated daily right from our local MLS.  My real estate office at Harrington ERA is located in Dover.

Realty Question: We have a lot of equity in our Dover home and we've been thinking of selling. Will we have to pay a lot of taxes after the sale?

    A. Every situation can be different and the laws in every state differ, so you should talk to your tax professional. But if you've lived in the home for 2 of the last 5 years, you could qualify for a tax exemption on capital gains of $500,000 (if filing jointly) or $250,000 (if filing singly). The Taxpayer Relief Act of 1997 allows for this if a variety of requirements are met. Because the savings can be huge, it pays to thoroughly investigate this possibility.

    There are many other factors that can come into play such as how the home was bought, how it was used. Was it a rental? What kind of improvements did you make? Did you inherit the home or was it gifted to you? These are all factors to discuss with your tax preparer.

    If you are thinking of selling or buying, I would be glad to help you in any way I can. You'll get competent and caring representation with absolutely no hassles or obligation because my business is built on lasting relationships.

Fee Free To Contact Me As Your Needs Arrive: Tom Davis Local Dover Agent. (302)398-3757

Question # 2 :  Where Can I find a home in Dover , Delaware?

I have many home buyers seeking information on homes for sale in Dover.  Some wish to retire soon, others need a vacation hotspot and some just want to move from New Jersey because their Taxes Are Just Way Too High for them.  Whatever the reason is for your next move consider going to my website to get Free Updates Daily on homes that meet your requirements.  Again the service is Absolutely Free and you are under no obligation to make a purchase.  If this sounds like something that would interest you please visit our home search website at: www.freehomesearch.dreamstation.com  I look forward to helping you find that perfect home in Delaware!

 Thank-You for visiting the Real Estate Site For Delaware!