Real Estate Information

If you are a first-time home buyer, you might be anxious to get in on a good deal for a Wilmington or Newark home. Prices are reasonable, mortgage rates are low, and the homes you see on the market today could be sold tomorrow. Naturally, there is some sense of urgency. You have competition from investors and other home buyers. You might find yourself tempted to limit, or even omit, contingencies from your purchase offer, in the hopes of getting it accepted by the seller. 

The danger in this notion is the fact that a purchase offer is a legal contract. Your contingencies allow you to cancel the offer if certain stipulations are not met. Without contingencies, you have no legal escape from the deal. You could end up on the hook for failing to go through with the purchase, even if the circumstances were beyond your control. It pays to understand contingencies!

Here are the most common home buyer contingencies included in a purchase offer:

1. Financing contingencies. This states that your purchase is conditional upon obtaining a mortgage at suitable terms. You can be specific and identify the mortgage terms that you need. Even if you are pre-approved for your mortgage, it's wise to have a financing contingency, in case something falls through for an unforseen reason prior to closing.

2. Appraisal contingencies. Your mortgage lender will require that the home has sufficient collateral value to cover the mortgage in case of default. If the appraisal falls short of the sale price, your contingency allows you to exit the deal. Otherwise, you could be expected to cover the difference, in cash, between what the bank is willing to lend you, and the sale price of the home.

3. Home inspection contingencies. This allows you to have a third party inspect the home and check for any signs of obvious defects. While sellers are expected to disclose any known issues with the home, there are things that may escape their notice, or their memory. If any significant, undisclosed issues are found by the inspection, the contingency allows you to cancel the deal, or at least negotiate the needed repairs with the seller.

These are very basic examples, and there are a host of contingencies you may wish to use depending on the situation. You may have a contingency that says the deal is subject to the approval of your financial planner, or your attorney. You could have a contingency that is subject to the homeowner association allowing you to have an above-ground pool. Or a contingency subject to the town allowing you to operate a business out of the home. You don't want to go bananas with contingecies, but any key points affecting your ability and desire to purchase the home should be covered.

As your Wilmington and Newark real estate expert, I will guide you through using contingencies and help you write an offer that protects your interests!

There is a lot to know when it comes to home buying! Fortunately, good information is available, and it's free! Attend a free home-buying seminar and learn about home buying in a pressure-free environment. The next one is in Newark on May 11! See the Registration Page for a list of upcoming dates and locations.

Contact me for friendly, knowledgeable help with your home buying questions!

 Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
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New Castle County Active Listings: For the first quarter 2013, there was a total of 2,128 properties actively on the market.

Absorption Rate/Supply: The current month supply of homes on the market is defined as the ratio of the current inventory of active listings compared to sales.  In other words, given recent sales activity, one can estimate how long it would take for the entire inventory of active listings to sell, assuming no new listings were to appear on the market.  At the present time it will take about four and a half months to sell all of the current active listings, without adding any new homes for sale.  

Contact me for expert help with your home buying questions!

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
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According to the National Association of Realtors, 2013 could be the best real estate market for home sellers that we've seen in years. Home buyer demand is outpacing the supply of homes for sale in many areas of the country. Great news if you're a home seller - not so much, if you're a home buyer!

Here in Wilmington, we still have a good amount of home inventory, but prices have been increasing. Median home prices during the first quarter 2013 were 21.3% higher than the same period last year. There may be plenty of homes on the market, but as prices rise, fewer of them may be in your price range. And because real estate investors target lower-priced homes that would make profitable rentals, you can find yourself competing with cash buyers in addition to traditional home buyers.

This means that you need to be ready to compete for the home you want to buy. One way to accomplish this is to know what makes a purchase offer appealing to a home seller. I have a few strategies to help you!

1. Have a mortgage approval letter in hand, ready to submit with your purchase offer. An approval letter from your lender declares that your loan application has been processed, verified and approved by mortgage underwriting. It is more binding than a pre-approval or pre-qualification. It's about as close as you can get to being a cash buyer without having your own cash.

One piece of red tape: the home must meet the appraisal guidelines to support the loan. Fortunately, with home prices on the rise, this isn't as daunting as it used to be.

2. Be aware of current market conditions and make your best offer first. If you are up against another buyer for the same home, you may not get a chance to offer more in a second round of negotiation. This doesn't mean you should overpay, however. I can help you determine if the asking price on a home is fair.

3. Keep your contingencies to a minimum. You need to have the right contingencies to protect yourself, but going overboard can cause your offer to appear to be more hassle than it's worth. Make it easy for the home seller to say "yes" to your offer.

4. Be open to the home seller's requests. Sometimes you have to give a little to get a little!

5. Work with an experienced real estate professional who will walk you through the fine points of contingencies and negotiations, and who will put you in a good light with home sellers and their agents.

Buying a home in Newark or Wilmington doesn't have to be stressful! If you are a first-time home buyer, I strongly encourage you to attend a free home-buying seminar so you can immerse yourself in good information. The next one is coming up in Newark on April 20! See the Registration Page for a list of upcoming dates and locations.

Contact me for expert help with your home buying questions!

 Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
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There is good news for Delaware home sellers - more home buyers will be coming to the market during the next few years. But if you're a first-time home buyer in Delaware, you need to be prepared for competition!

For starters, we are now seeing more first-time home buyers enter the market, after hitting a 4-year slump only a few months ago. Nationally, first-time buyers accounted for 34.5% of all home purchases during February 2013. The "early spring" of the housing market in 2013 was at least partially fueled by first-time buyers looking to get a jump on the market.

They were not alone. Real estate investors, still hungry for aquisitions, claimed an equal share of all home purchases in February - another 34.5%. Investors can be the bane of a first-time home buyer, since investors are usually looking for lower-priced homes, and paying cash.

But the 900-lb gorilla among buyers is perhaps the least expected group - the "boomerang buyers." These buyers are former homeowners who experienced a short sale or a foreclosure during the housing downturn. Many of them have now completed the minimum waiting period and are looking to buy a home again.

To give you some idea of the numbers, USA Today reported that just under 5 million people lost their homes during the housing crisis - and an amazing 70% of them will buy another home as they become eligibile to do so. Based on the timelines of the era against the mortgage waiting period, this translates into 500,000 boomerang buyers becoming eligible for home ownership each year for the next several years.

Why would these former homeowners want to return to home ownership after having a negative experience? Speaking bluntly, renting is no picnic, and home ownership at today's prices and interest rates is a much better deal. USA Today reports that boomerang buyers are anxious to return to the market at the earliest opportunity, while the economics work in their favor.

If you are a first-time home buyer in Delaware, you need to be well-equipped to handle the competition! Find out how to get approved for a mortgage, and learn about the buying process at our FREE first-time home buyer seminars! The next one is in Newark on April 20, 2013! Register here to save your seat!

Always feel welcome to contact me for more information about homes for sale in Wilmington and Newark! I am here to help you with your home ownership goals!

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
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Most Delaware home buyers are familiar with FICO - the traditional credit scoring model that is used by lenders to determine borrowing risk. FICO has dominated the credit scoring market for the past 20 years, but the new VantageScore system is gaining ground!

Per a recent CNN Money article, VantageScore is now used by 4 of the 5 top mortgage lenders in the country. VantageScore is also used by:

7 of the top 10 financial institutions
6 of the top 10 credit card issuers
4 of the top 10 car loan companies

VantageScores have been around awhile, but have been confusing because the scoring range was different than FICO. The latest version of VantageScore solves this.

Going forward, VantageScore and FICO will have a credit score range of 300 to 850, with 300 as the lowest score and 850 as the best possible score.

There are some differences in the scoring models that could benefit Delaware home buyers. VantageScores will count rent payments, utility bill payments and public records in their computations. This will provide credit scores for consumers with little or no borrowing history, who usually fall through the cracks with FICO.

Another big plus of VantageScore: collection accounts will not hurt your score if the balances are zero.

In other respects, the two scoring models are very similar - and neither one is going to tell you exactly how they come up with your score. Nor is your lender likely to tell you in advance which credit score company they will use in their lending decision. Lenders may use both FICO and VantageScore for a more complete picture of credit risk.

No matter what type of score is used by your lender, paying your obligations on time, and keeping your credit use to a minimum, will strengthen your score!

Understanding how credit scores work can help you get approved for a mortgage, and potentially save you thousands of dollars in mortgage interest. For a complete overview of the home buying process, including how to qualify for a mortgage, join us at our FREE first-time home buyer seminars! The next one is in Newark on April 20, 2013! Register here to save your seat!

Always feel welcome to contact me for more information about homes for sale in Wilmington and Newark! I am here to help you with your home ownership goals!

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
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A recent article in Real Estate Economy Watch poses a popular question: just how good of a deal is a foreclosed home, anyway?

It depends on the condition of the home, and the bank’s motivation, and the home location. The strength of the local economy also plays a role. The amount of discount can also be influenced by the supply of foreclosed homes on the books, and the price that investors are willing to offer on them.

How cheap can a foreclosure get? The amount of reported discount varies by source. Per a national appraiser, the average foreclosure discount was 12.2% off of fair market value at the end of 2012. During 2011, the average foreclosure discount was 13.4%.

But according to the National Association of Realtors, the January 2013 discount levels are about 20% below market value. They estimate that discounts averaged 25% or more during the peak of the foreclosure crisis.

Foreclosures that require repair have seen greater discounts in recent months. According to HousingPulse, the average price for a damaged foreclosure in January 2013 fell to $88,100. This is 17.1% below the average price recorded a year ago, and also the lowest average price for this kind of property in the past four years.

As home inventory narrows, one might expect foreclosure discounts to soften, but in parts of the Midwest and Northeast, we are seeing the opposite trend. One reason is that investors are dominating the foreclosure market, with fewer buyer-occupants entering the fray. It is difficult for a home buyer who needs a mortgage to complete with a cash buyer who can close tomorrow.

When you look at foreclosure discounts city by city, the degree of price discount can be vastly different from the national averages. Here is a sample of where foreclosure discounts stood in major markets at the end of 2012:

• Baltimore, MD 29.6%
• Pittsburgh, PA 30.2%
• Philadelphia, PA 33.3%
• Boston, MA 33.0%
• New York, NY 28.2%

Thankfully for homeowners, we are seeing fewer foreclosures and a higher ratio of short sales in the market. But it’s clear that the foreclosures coming to market are being priced aggressively. For this reason, home values in Wilmington and Newark will continue to be impacted by foreclosure discounts. How much of an impact depends on how many foreclosures we have vs. market value sales.

As your professional Wilmington and Newark, DE real estate agent, I have the experience in short sales and foreclosures to help you buy or sell distressed properties successfully! Please contact me today with any questions you may have!

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
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A recent article by Inman News predicts that short sales will be more numerous this year, due to streamlined rules and a recovering economy. This means lenders will be busy and organized short sale applications will have the best chance of success.

If you are a Wilmington or Newark homeowner who lacks equity and needs to sell, these short sale tips will help you get started! Also, please see my prior blog posts on September 6 and January 24 for more information!

1. Ask your mortgage lender about their short sale requirements. They will send you the paperwork to get started. Please remember that it isn’t enough to be underwater in home value; you must also have a qualifying hardship.

2. Your mortgage lender may ask for copies of your recent bank statements, paycheck stubs, tax returns and a list of your household expenses. Be cooperative and send in the requested documentation asap.

3. If you have other liens against the property, from a second mortgage, or an unpaid debt or tax obligation, let your mortgage lender know. 

4.  If the ownership of the home had any changes since your original purchase, as the result of a divorce or other situation, declare this up front. Lien and title issues can be time-consuming to resolve.

5. Work with a Certified Distressed Property Expert who has the professional experience to help you!

6. Share information about your home’s condition with me. Honestly is the best policy. Also, if you have made repairs or upgrades that should be considered, share that too!

7. Stay in contact so the process keeps moving. I will do everything possible to help you, and I will follow up with your lender regarding the short sale process. But there may be times when your lender needs additional documentation from you, or needs to ask you a question. Make sure your lender has your current phone number and mailing address, and pay attention to everything they send to you.

Short sales can be a good solution to a difficult problem. As your professional Wilmington and Newark, DE real estate agent, I understand that selling your home can be an emotional decision, especially when your life has been disrupted by other events. This is why I provide professional guidance with compassion, so that you can make the best choices.

If you owe more on your home than what it is worth, my experience in short sales and foreclosures can help you! It's never too early to talk to me, so please contact me today with any questions you may have!

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
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Have you been waiting to buy a home in Wilmington or Newark? If you have been waiting to see if home prices will come down, or you are waiting for spring, you could be missing a golden opportunity to buy a Delaware home! Here are 5 reasons why right now could be the best time to buy!

1. Home prices are moving higher. According to Trulia, Wilmington home prices between Nov 2012 and Jan 2013 were 7.2% higher than a year ago. Nationally, economists expect home prices to continue to gradually appreciate.

2. Mortgage interests rates are rising. The Mortgage Bankers Association predicts that rates will trend higher throughout 2013.

3. Rents are expected to go up. Nationally, rents averaged a 4% increase during 2012. As the economy continues to improve, monthly rents are expected to follow suit.

4. Mortgage rules are changing. New guidelines exist for FHA loans. Meanwhile, the Consumer Protection Act may influence the type of mortgage products that are available in the future. Another new rule, called the Qualified Residential Mortgage, could change the requirements for credit scores and down payment amounts.

5. Closings are faster off-season. Real estate sales have lower volumes this time of year, meaning there are few backlogs in mortgage underwriting, appraisals, and home inspections.

6. Sellers are motivated. New listings are coming on the market in February! There are homes on the market today that must be sold; there are banks waiting to approve short sales, but they need offers!

Your ideal home could be on the market right now! Why not take a look at the Wilmington and Delaware homes for sale?

First-time buyers should give themselves an advantage by attending a free home buying seminar! Be prepared for the opportunities in Delaware real estate by attending one of the upcoming seminars below. Just register for the date and time that work best for you!

Join one of the TOP REAL ESTATE TEAMS in Wilmington!

We are looking for enthusiastic, dedicated associates for the following positions at The Wilmington Homes Group of Keller Williams:

Buyer's Agent: If you don’t have more leads than you can handle, let’s talk!

Do you have patience, perseverance, and people skills? Do you enjoy helping first-time home buyers and trade-up buyers accomplish their goals? In this position, I need a champion who can charge into the field on behalf of our buyer clients. You need to be a good listener and have excellent follow-up skills on buyer leads. Your mission is to convert leads to appointments, appointments to buyer agreements, and buyer agreements to home purchase contracts. 

This year is going to be HUGE for Delaware home buyers and I need a pro that doesn’t let go! Buyer Agent experience preferred, but top performers who truly care about delivering excellent service will be considered. You will also get the benefit of high-caliber KW training and have an unlimited earning potential.

Distressed Property /REO Specialist: 

Do you have excellent organizational skills and like detail? Do you work well with structure, tasks and deadlines? Experience with using programs like Equator or RES.NET are a plus! In this position, you will be responsible for processing and managing Bank Owned, foreclosures as well as communicating with various Asset Managers on a regular basis.  Only those with a strong work ethic and a high degree of integrity should apply. Experience in REO sales preferred, and you are more than welcome to transfer your current properties into our system. Bring your best efforts to the table and I’ll show you unlimited income potential in Delaware’s distressed property market!

For All Positions, You Need the Following:

• Delaware real estate license 
• Thorough understanding of contracts and negotiable elements 
• Knowledge of mortgage types and loss mitigation practices (REO Agent)
• Knowledge of mortgage types and qualifying basics (Buyer Agent)
• Excellent written and verbal communication
• Positive, can-do attitude
• Results driven
• Genuine concern for clients
• Organizational and time-management skills
• Personal motivation for success
• Professional behavior and attire 
• Reliable transportation
• Local knowledge of schools, community resources, quality of life

What You Can Expect in Return:

• Best training and coaching in the industry through KW systems
• Six-figure income potential plus bonuses
• Residual income potential 
• Personal mentoring
• Qualified leads through our systems
• Opportunity to lead as your business grows
• Administrative support / access to specialized virtual assistant team 
• Access to professional network of attorneys, lenders, title companies, etc.
• Positive, encouraging environment 

Click Either Image Below to Read More About Our J.D. Power and Associates
or Our Top 10 Best Places to Work Awards!
 

10 Compelling Reasons to Become a Keller Williams Associate!

Do you want to take your real estate career to a higher level? Would you like the opportunity to be a business partner in the #1 real estate company in the United States? Here are 10 compelling reasons to become a Keller Williams Associate!

1. Keller Williams offers the best compensation structure in the industry, giving you the opportunity to keep 100% of your commissions!

2. Keller Williams offers Profit Share and Growth Share programs that enable you to create a passive income stream for life!

3. Keller Williams associates are treated as business partners – not employees!

4. Keller Williams provides unsurpassed training, education, and coaching, with resources available on demand!

5. Keller Williams is “agent-centric” – meaning that the company puts the best interests of its agents at the forefront of company decisions.

6. Keller Williams created eEdge, the industry’s first comprehensive lead-to-close system, for the exclusive use of its agents.

7. In 2012, Keller Williams was ranked #1 in customer satisfaction by home buyers for the third consecutive year. Keller Williams was also ranked #1 by home sellers during 2012, for the second consecutive year.

8. Keller Williams fosters a “Culture of Caring” by giving back to local communities during the annual “RED Day” event. There is also a Keller Williams charity to aid associates and their families during times of unexpected and extreme hardships.

9. Keller Williams is a global company in the midst of expansion! Lines of business include Keller Williams Realty, Luxury Homes by Keller Williams, and KW Commercial.

10. As your Keller Williams recruiter for Delaware, I will help you succeed!

Ready to apply? Visit http://tinyurl.com/KWRealEstateCareer

Have a few more questions? Contact me! I’ll be happy to tell you more about my own career with Keller Williams Realty, and why I’m convinced they are the best real estate company for professional real estate agents, home buyers, and home sellers!

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty

Careers@WilmingtonHomes360.com
Wilmington Real Estate
Wilmington Homes for Sale
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You may recall from a prior blog post that short sale changes were in the works for mortgage loans backed by Freddie Mac and Fannie Mae. Those rule changes became effective November 1, 2012, and Freddie Mac is calling the new short sale process a success!

While it hasn't been quite three months since the new processes became official, Freddie claims that short sale timelines are now faster by 50 to 75%!

This has many positive implications for Delaware real estate. A faster, more effective short sale process means that more deals will be successfully completed, instead of falling through due to delays. As a result, we will see fewer homes entering foreclosure, which is good news for property values.

Since the Mortgage Debt Relief Act has been extended, there is good incentive for distressed homeowners in Wilmington and Newark to pursue a short sale. All together, this news brightens the picture for Delaware home sales in 2013!

Here are highlights of the new short sale process for loans backed by Fannie and Freddie:

1. Homeowners who successfully complete a short sale can get up to $3,000 in relocation assistance.

2. The mortgage servicer on the "front lines" - namely the company that collects your mortgage payments - is authorized to approve short sales for qualifying situations. No more second-level reviews by Fannie/Freddie.

3. The mortgage servicer must acknowledge receipt of a short sale request within 3 days of its arrival.

4. If your home does not have any additional mortgages or liens that require third-party approval, the mortgage servicer needs to either approve or deny your short sale request within 30 days. If they need more time to make a decision for any reason, weekly status updates must be issued to the homeowner.

5. The short sale process should not exceed 60 days, even if another lien holder is involved.

There's just one catch to all this: in order for the above rules to apply, you must have a mortgage loan that is backed by Fannie Mae or Freddie Mac. You can use the loan look-up tool on their websites to determine this; just click on the links above.

If you are a homeowner in Wilmington or Newark with a personal hardship, and you want to sell your home but you have negative equity - let me help! I have extensive experience in short sales and foreclosures, and I can guide you through the options that are available. I also have tips on avoiding foreclosure on my website.

First-time buyers who may be interested in purchasing a home through a short sale should attend a free home buying seminar! Be prepared for the opportunities in Delaware real estate by attending one of the upcoming seminars below. Just register for the date and time that work best for you!