Archive for Real Estate
Successful Short Sales
By · May 17, 2012 · CommentsIf you need to short sale your home there are a few things you need to be aware of:
1. Bank of America has recently changed their policies regarding short sales and are more user friendly.
2. Wells Fargo has streamlined their process and combined their many short sale departments. They are also performing up front appraisals so a short sale can be pre-approved before a seller finds a buyer.
Most importantly, the Mortgage Debt Relief Act is due to expire 12/31/12. This is huge. It means if you are thinking of short selling your home you must be closed no later than 12/31/12 otherwise you may potentially be liable for taxes on the debt relief you receive from the bank. You may want to chat with our accountant to find out what that means to you. This will expire unless the government votes to extend it.
Get in touch with your Realtor or contact me sooner rather than later for important help in navigating through this process and preserving your credit as best as possible.
Real Estate Market Improved
By · May 14, 2012 · CommentsReal estate in the greater Sacramento area is on the move. Many homes in all price ranges are getting multiple offers, many at or above the asking price. Inventory is very low so buyers are finding if there is a home they like they need to make a decision quickly and make their offer as attractive as possible. For sellers it still means you need to have your home in “show ready” condition because the buyers while they want to buy, they are still very cautious and want to make sure they purchase a quality property.
As the prices increase the appraisals will catch up with the new pricing. If you are looking to purchase or sell you may not want to wait too long. While the market is good it changed so quickly it could just as easily go the other direction again. Short sales are still out there and there is still “shadow” inventory the banks haven’t released as of yet. However, banks have realized they get approximately 20% more money by completing a short sale versus a foreclosure. That is good news for all.
Be sure to contact your Realtor for details. Of course, I always stand ready to be of assistance if needed.
To Buy or Sell Now?
By · March 22, 2012 · CommentsTo buy or sell now – that is the question. While many buyers know it is a good time to buy because interest rates are favorable and prices are low they still hesitate because they worry the prices may fall more. On the other hand, sellers are not likely to sell now because the prices are depressed and they don’t want to sell at the current value for their home.
Neither is right or wrong. It all comes back to what is best for you personally. The cost of a home isn’t just the price – you need to factor in interest rates, tax benefits and the benefits of owning – being able to paint a room if you choose. Owning a home gives one stability and creates a calming affect even if one isn’t conscious of it.
For the sellers they must analyze why they are selling – is it to move closer to grandchildren, downsize to a more manageable property or to simplify their life? Also, if a seller is selling and repurchasing the perceived loss on the home they are selling needs to be compared to the gain on the buying side due to prices. The differential is what really needs to be considered.
Buyers and sellers are not currently on the same page. 80% of buyers think it is a great time to buy but inventory is low so they have fewer choices. Only 7% of sellers feel it is a good time to sell.
In a nutshell, education as to what buying and selling really means to you personally should be the ultimate deciding factor in how to proceed.
Ask a seller
By · March 6, 2012 · CommentsAsk any seller if now is a good time to sell and you will get all sorts of different answers. Some will say they have lost too much money to sell, others will say it doesn’t matter because they need to sell because of health or job reasons while others will sell and upgrade or downsize to another home that fits their needs better.
The correct answer is for the seller to do what is right for their particular situation. If you are worried about the the bottom line if you sell ask your Realtor to give you an estimated statement of what the proceeds will be. That will give you a visual picture of what the scenario will look like. If the sale is because of job or health issues sometimes the seller doesn’t have a choice and feels as if they are a victim of the economy. That could be entirely true but doesn’t change the value of the home at that time.
If selling due upgrading or downsizing the seller is currently getting the advantage of depressed prices in both circumstances. On the selling end the seller may receive less than they wanted but the difference in the “phantom” loss of money needs to be compared to the amount of “discount” being received on the buying end.
Hope that helps! As always, make sure you consult with a Realtor that has your best interest in mind.
National Housing Trends
By · March 2, 2012 · CommentsI compile information from National Assn. of Realtors, Move, Inc., various articles from the Wall Street Journal, CNN Money and Bank of America Mortgage Index study and submit the following for you to think about:
1. 70% of Americans still believe owning a home is part of the American Dream while 62% of those think buying now will be a good investment over the next 10 years.
2. Median home price rose from $170,000 to $190,000 over the previous year (prices may be stabilizing and even rising depending upon your neighborhood).
3. 37% of buyers are first-time buyers; 64% of all buyers are married couples.
4. 66% of sellers were first-time sellers (perhaps moving to a larger home) and 39% of sellers never reduced their price.
Hopefully some of these facts are something you will think about if you are thinking of buying or selling your home. Interest rates still remain historically low and inventory in many areas has been greatly reduced. So, while it is a buyer’s market from an interest rate perspective it may become a seller’s market for home prices if inventory remains the same. As always, the picture varies depending on where you live and what you are looking to buy or sell but housing remains a key dream in people’s goals.
