Real Estate What I know for Sure – Investors, Forbearance Agreements
The statistics in this short video are from 2021. The market has continued to grow in median price since then. The message about late payments and what Forbearances are is still pertinent today.
I would like to share a brief message about the real estate market today. For my statistics I am using single family homes, town homes and condo’s because that is what I mainly help people with.
The median sold price for Wasatch Front home sales combined counties in Feb 2021 was approximately $437,000. The median means half the homes sold for more half the homes sold for less.
In Salt lake County the median Sale price in Feb 2021 was $415,000 with the median list price of $400,000. This shows that overall the homes are selling for more than they are listed for. It is still a multiple offer situation most of the time.
In this video I talk about our market still being a sellers market. Many first time buyers are almost completely priced out of the market. Sometimes they have to team up with family members or friends to get into a home. I also talk about some junk texts that I recieved from investors and people trying to sell me services.
Texts and Mail from Real Estate Investors: It is ok to consider offers from investors that want to save thousands in real estate fees….just make sure that is really true. Ask for a written offer-a complete contract for you to review. Many times these offers do not pan out to the original price you thought you were getting after all the waivers, exclusions and hoops you have to jump through to get the contract completed. Usually price reductions happen. The main thing is-Do Not Let Fear Take Over. Maybe you don’t want to do anything to sell your house. No fix up, clean up etc. Keep in mind in this market you don’t have to do much to sell your. I should say get an offer! Right now most houses are selling without doing anything extra if that stresses you out. Consider this-If more people know about your home it creates more competition and a better price for you. Using a realtor most often nets you more money in your pocket even after the commissions and closing costs involved with selling.
I got a text selling training services about Covid 19 and Forbearance Agreements. Industry experts are predicting there will be a fall out of people that have entered into Forbearance agreements with there lenders during the corona virus pandemic. The thought is that eventually many of these people will end up in default because they have not been able to keep up their payments/ agreements, or have not been able to get accepted into a Forbearance agreement. In these agreements they put the payments and fees on the back end of the loan and determine what you can pay now. It is different for all banks/entities. basically foreclosure is suspended. This text was assuming we will revert to a buyers market. Again if that did happen or you are in a situation where you are having trouble due to not being able to make your payments Do Not Let Fear Set In. You may not have to sell your house. Talk to your mortgage lender and ask about Forbearance programs. They do work for some.
As for now in our area we have a very, very low rate of actual defaults. We have the prices of residential real estate continuing to go up.
by Teresa Larson Village Real Estate
Utah Real Estate Associate Broker
30+ year’s real estate experience
March 20, 2020
©Teresa O Larson PC, March 20, 2021