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Delaware and Pennslyvania Home Buyers, Sellers Anxious to Get Moving

Sunday, May 10, 2020
by Katina Geralis

The pandemic has changed the way Delaware and Pennsylvania real estate is being handled, but home buyers and home sellers can still prepare for the market! The first thing to keep in mind is that "essential business" definitions and restrictions vary by state.

Currently, Delaware real estate agents are permitted to work from home, but realty offices are not open to the public.

We can, however, perform in-person home showings for Delaware residents looking at Delaware homes. We can do necessary activities to complete transactions that were started before COVID-19 orders were enacted. We can also take new Delaware listings and market them for sale!

There are restrictions concerning working with out-of-state buyers. If you do not currently reside in Delaware, you can only view a Delaware home through a virtual tour or other online method. There are also restrictions for how home appraisals, home inspections and closings can be performed.

In short, real estate transactions in Delaware are carrying on, though the method of doing business has been adjusted. Restrictions are currently scheduled to stay in place until May 15, 2020, or until the State of Delaware declares them lifted. Contact us for more information!

In Pennsylvania, real estate has not been deemed an "essential business," and as such, only home sales that went under contact before March 18 could be completed. As of May 8, the Governor of Pennsylvania relaxed restrictions on 24 counties in the state, but this largely affects the northwest and north-central regions. Guidelines for real estate operations are an evolving topic. 

Home buyers and home sellers in Delaware and Pennsylvania should contact us for current information about their options! We can help you prepare for the market, and depending on the business rules for your area, we can help you get started with your real estate plans. 

Contact the Kat Geralis Home Team today!

 

Katina Geralis
DE and PA Real Estate Expert
eXp Realty
Homes for Sale
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How Much of a Price Discount is in a Delaware Foreclosure?

Monday, March 11, 2013
by Katina Geralis

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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4 FHA Rule Changes Affecting Wilmington Home Buyers in 2013

Thursday, December 27, 2012
by Katina Geralis

If you are a first-time home buyer, you may already be leaning towards an FHA-backed mortgage to finance your Wilmington or Newark home. Recently, the Federal Housing Administration announced changes to their mortgage guidelines, which are being made to stem the losses from sour loans.

In case you are not familiar with it, the FHA is a government entity that insures mortgage loans made by banks and other front-line lenders.

Without the FHA, home buying would be tough for buyers who cannot meet high down payment and credit score requirements. After the collapse of subprime lending and the tightening of credit, FHA-backed mortgages became the only game in town for many first-time home buyers.

FHA guidelines are also more forgiving when it comes to credit history, making it the only practical option for home buyers who had a prior bankruptcy, foreclosure, or short sale in the past few years. For these reasons it's a good idea to understand the FHA role in our housing market!

Here are the 4 FHA rule changes slated for 2013, and how they may affect you:

1. FHA loans require the borrowers to pay for mortgage insurance. This insurance protects the lender in the event you default on the loan. It used to be that you could get the monthly mortgage insurance premium waived after you achieved a certain amount of equity. This is no longer the case; effective in 2013, the mortgage premium will be on your mortgage payments for the life of the loan.

2. The cost of monthly mortgage premiums will go up by .10 basis points. This is a relatively small amount; it would add an extra $20 a month to a $200,000 mortgage. Keep in mind that this is only the increase effective in 2013, and not the entire premium.

3. For large mortgages, the FHA will require higher down payments beginning in 2013. The minimum down payment for a $625,500 mortgage will be 5%. This is an increase from the prior minimum of 3.5%.

4. Those who have credit scores in the 580-620 range will face stricter debt-to-income ratios in 2013. In other words, the less debt you have, the better.

The good news is, these changes shouldn't derail anyone's plans to buy a Delaware home. Even with the new changes in 2013, FHA-backed mortgages remain attractive.

Need more information about buying a Wilmington or Newark home? As your experienced real estate professional I'm here to help you! I can also refer you to FREE home buying seminars and help you find the best home for the right price.

Contact me for neighborhood price trends, recent sales, and expert guidance in our fast-changing real estate market.

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
Contact Me
Find me on Facebook
Follow me on Twitter

 

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