Tag Archives: Foreclosure

Coldwell Banker Realty Check — April 2012

SAChomeshortage

After several years of an oversupply of homes on the market and an undersupply of qualified buyers, the tables have turned for the Sacramento and North Lake Tahoe housing markets. It may be hard for some consumers to believe, but our local real estate market has bounced back in a big way over the past year. Eager buyers are once again out in force ready to purchase their next home. But ironically, the only thing stopping them is a serious shortage of homes for sale!

We’ve come a long ways from the recessionary days when homes sat on the market for many months or even a year or longer waiting for a buyer. Today, properties are once again being snapped up quickly, often with multiple offers due to the shortage of inventory. While this imbalance is frustrating some would-be buyers, it is also creating a great opportunity for savvy homeowners who have gotten the message that now may be the best time in many years to sell their home.

In the Lake Tahoe market, listing inventory for is down 25 percent from last year at this time. In parts of the greater Sacramento area, homes for sale are down even more – as much as 50 percent in some communities. This comes as the economy gains momentum and the job market and the financial markets improve – all providing more ready cash and incentives for buyers to purchase. The result is that there are more offers for good homes for sale. Sellers are getting higher prices and properties are moving faster than they have in years.

As a result of this shortage of homes for sale in Northern California, we are back to seeing offers with no contingencies in some cases, and buyers making offers on several properties before they actually get into contract on one. Multiple offers over the asking price by 10 percent or more is not unusual in some prime neighborhoods. In one extreme example, there were 62 offers on one property in Sacramento recently.

The Sacramento and Tahoe areas aren’t alone. According to the California Association of Realtors, the state’s overall housing inventory declined in February, with the unsold inventory index for existing, single-family detached homes decreasing to 5.3 months, down from a revised 5.7 months in January and down from the 7.5-month supply in February 2011. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

Adding to the strong buyer demand are record-low interest rates. Interest rates fell to historic lows again in April. Thirty-year fixed-rate mortgages averaged 3.87 percent, down more than 1 percent from a year ago, according to Bankrate.com. Fifteen year fixed rates dropped to 3.11 percent and adjustable-mortgage interest rates were 2.73 percent in April.

To be sure, the housing market is once again coming alive. Real estate agents are seeing 80-100 visitors at some open houses, multiple offers are no longer exception, but the rule in many communities, and buyers are showing a sense of urgency perhaps out of concern that record low interest rates could be heading higher before long. Some recent comments from our local managers:

  • One Elk Grove home received 33 offers while another had 20 offers after just one three-hour showing on a Saturday afternoon.
  • A home in El Dorado Hills listed at market value attracted 12 offers, some all cash. It sold for nearly 10 percent over the asking price and closed in 19 days.
  • Another home in Placerville, listed for more than what the agents thought market value to be, received seven offers, one all cash, and went pending for 10 percent over the list price.
  • The Tahoe market is beginning to experience multiple offers on properties that are appropriately priced for the market and typically for homes that are priced below $500,000.
  • Said one manager: “It doesn’t seem to matter if the price range is $250,000 or $750,000. A good house that can sell and close will get multiple offers.”

Sellers need to sense the same pent up demand, excitement and urgency in the market that buyers have sensed for the past year. They need to take the long postponed leap to list their homes for sale now.

Simply put, there just aren’t enough homes on the market to meet the tremendous demand from buyers. And this is true in all price segments, from small starter homes and condos right up to multi-million-dollar Previews properties.

The days of buyers being only interested in distressed properties at bargain basement prices are over. Homebuyers are pounding the pavement looking for good, well-maintained properties at fair prices in every segment of the housing market.

The real estate market has always come down to two simple factors: the law of supply and demand, and consumer confidence. Right now, both of those are creating a sellers’ market in the Sacramento and Tahoe area. Consumers are feeling more confident as the economy picks up steam and the stock market turns in strong gains in 2012. Clearly, the scales of supply and demand are tipping heavily in favor of sellers today.

Smart, strategic homeowners understand all this, and they’re making their moves right now – not six months or a year from now. They’re the ones getting multiple offers for their home because there just isn’t a lot of competition for buyers’ attention. They’re out there now, before everyone else joins the “house party” and tips the scales back in favor of buyers once again.

If you’ve been thinking about selling your home, now is the time. I’m happy to answer any questions you may have – and to help you get the very best possible price for your home while demand is so strong.

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow homeowners!
Be sure to follow us on Facebook at www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete blurb with it: Jack & Tracey Edwards, your real estate advocates, specialize in helping buyers and sellers in Elk Grove, CA,  and the greater Sacramento area.   Get information about available homes online at:  www.ElkGroveRealEstate.comOur mobile clients can find us at Mobile.ElkGroveRealEstate.com

 

Coldwell Banker Realty Check — March 2012

SFSellingTodaysMarket

As the Sacramento area’s housing market continues to bounce back from the recession, more and more buyers have decided they can’t wait any longer – now is the time to get back into the market to find their next home.

While the real estate market still has its challenges, things are very different today than they were in 2009, 2010 and even early last year. Buyers are generally more optimistic about the future, ready to purchase, much better qualified for a loan and, in many cases, are paying big down payments or even all cash for their next home.

Indeed, the scales of supply and demand are once again moving back in the direction of home sellers after being out of balance for several years. While countless buyers are out there pounding the pavement for a home, the problem now is that there just aren’t enough sellers to meet the demand in many communities.

As the economy continues to improve and with a shortage of attractive properties in good neighborhoods, buyers are once again paying good prices for properties rather than simply looking for distressed homes at bargain basement prices. And in some cases, properties are even getting multiple offers, driving up the sale price above the asking price.

So if you’ve been thinking about selling your home, now may be an ideal time to do so while buyers are eager, interest rates are still low and there isn’t as much competition from other sellers as there usually is this time of year. Here are several suggestions on how to get started and the best way to get top dollar for your home in today’s market.

  • Pick the best agent for the job. Selling a home is never easy, but in today’s complex real estate market it’s particularly challenging. So it’s more important than ever to find an experienced professional Realtor to help you get the job done. This is no time for amateurs. Start by interviewing several agents to see who has a proven track record of successfully marketing properties in your area. Ask them about their marketing plan, including print media, social media and online marketing via major real estate websites. Find out how well networked they and their brokerage are to other agents with potential buyers. Do they have offices beyond your city limits and even outside the state? Today’s buyers are just as likely to be relocating from across the country as they are from across town.
  • Go online and be visual. Remember the days of sticking a sign in the front lawn and taking out an ad in the local paper? Those days are long gone. Nearly 90 percent of buyers start their search for a home online, according to the National Association of Realtors. So you must be there in a big way to compete for the attention of buyers. Work with your agent to put up lots of high-resolution photos and as much information as possible. Make sure to show photos of all the major areas of your home and yard to give buyers as much of a sense of being there as possible. If not, buyers may wonder what you’re hiding. And strongly consider using video and virtual tours. Such marketing tools are no longer just for luxury homes.
  • Price your home competitively for today’s market. Just because a house comparable to yours sold for a certain price before the recession doesn’t mean you will be able to get the same price today. A lot has changed since then. And while prices are firming up, it’s still important to realize the new realities of today’s market. Talk with your Realtor to determine the appropriate, competitive listing price for your home based on current market conditions. You may even choose to have an appraisal done in advance of setting the price. Remember that in this market, homes that are priced aggressively attract the most buyers and – in some cases – multiple offers that push your final sale price even higher.
  • De-clutter and de-personalize. De-personalizing and de-cluttering a home before putting it on the market can help make it easier for buyers to imagine themselves living there – a crucial step in the selling process. Take down family portraits, personal collections and knickknacks. Homebuyers are looking for a home they can picture their family living in, not yours. Removing these items will also eliminate clutter and ensure that people are looking at the house itself, not at the photos from your last family vacation.
  • Update, freshen up. Keeping in mind that some buyers take move-in condition to be important, put your home in its best light. Possibilities include replacing outdated kitchen and bathroom fixtures, applying a fresh coat of paint and/or refinishing the kitchen cabinets. Replace worn carpet or fix broken tiles. Many cosmetic touches are surprisingly affordable but may yield much higher sale prices. The less work buyers have to do when they move in, the faster they may be willing to make an offer.
  • Conduct a full home inspection. If a professional home inspector determines that there are negative issues with the home, consider repairing the problems before buyers show up at your door. Potential buyers will cast an extremely critical eye over your home if it needs too many repairs – especially if they are trying to decide between your home and another one without problems. Be sure to have the home inspection report available for prospective buyers along with an itemizing all of the repairs that have been made and the associated cost for each to demonstrate the investment you’ve made in your home.
  • Make your home and yard picture perfect. As the old saying goes, you only get one chance to make a good first impression. When a buyer sees your house for the first time, a positive impression can make or break the sale. You can maximize curb appeal by trimming trees, planting flowers and even rolling out a new lawn if needed. A fresh exterior coat of paint might also prove valuable. And consider having a professional “stage” your home to make it even more attractive for buyers by rearranging what you have and/or bringing in other furnishings and accessories.
  • Be patient and flexible. You’ve done all the right things to put your home in the best position to sell. But there will undoubtedly be bumps along the way. A buyer may have difficultly securing financing. The appraisal may come in lower than expected. The escrow period could drag on longer than you thought before the deal closes. It’s not unusual to have occasional issues pop up. After all, buying a home is the single biggest financial transaction most of us will ever make in our lives. Through it all, remember that your Realtor is there by your side. He or she will be there with you every step along the way, managing the tough issues so you don’t have to and helping you achieve all of your home selling goals in today’s market.

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow homeowners!
Be sure to follow us on Facebook at www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete blurb with it: Jack & Tracey Edwards, your real estate advocates, specialize in helping buyers and sellers in Elk Grove, CA,  and the greater Sacramento area.   Get information about available homes online at:  www.ElkGroveRealEstate.comOur mobile clients can find us at Mobile.ElkGroveRealEstate.com

 

What is SB 458 And How Does It Affect Me?

Earlier this year, the state legislature passed a bill, SB 458, that states that a lender cannot “require” the seller/debtor to make any contribution towards a second mortgage in order to do a short sale.  The reason behind this legislation was to protect the consumer from the lender.  Unfortunately, one of the possible ramifications of this legislation is that many of the second mortgage holders may not settle for what the first mortgage holder is providing from the proceeds of the sale and the second mortgage holder may stop the short sale from happening.

What is the short sell homeowner to do if they are faced with this problem?  Nothing says that the seller cannot “volunteer” a contribution to satisfy the second mortgate holder so that they can get the deal done.  For example, if the first mortgage holder says that the second mortgage holder will only receive $5,000, and the second mortgage holder responding to a short sale offer with a requirement that they receive $X more.  They don’t say where this money is to come from because they cannot require the seller to pay it.

In fact, this money may come from anyone, including the seller.

Just keep in mind that what ever is done, it must be fully disclosed to all parties and must be reflected on the HUD statement.

For more great information on legal issues, check out Steve Beede’s blog at sjbeede@bpelaw.com 

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.

How Long Do I Have To Wait To Buy A Home After Short Sale, Foreclosure or Bankruptcy?

Almost every agent has been asked the question:  How Long Do I Have To Wait To Buy A Home After Short Sale, Foreclosure or Bankruptcy?

The answer is…”It Depends”.

That’s because it varies with the type of loan you are trying to obtain, the factors leading up to the short sale, foreclosure or bankruptcy, and what has happened since the big event.  And, if that is not complicated enough as it is, the rules change all the time as lenders review and update their criteria, so talk with your favorite lender or one of my favorite lenders noted below.

Currently, you can expect the following time tables for obtaining an FHA loan:

Chapter 7 Bankruptcy 

  • At least 2 years from discharge date.

Foreclosure. 

  • At least 3 years from completion date.

Short Sale 

  • There are no time restrictions if the borrower was current at the time of the short sale and all mortgage  and installment payments were made within month due for the previous 12 month period prior to application date, and the proceeds from the short sale serve as payment in full.
  • 3 years from completion date if in default at time of short sale. Keep this in mind if your lender is telling you to stop paying so that you may qualify to get a loan modification.  You probably won’t get the loan modification after all the hassle and now you will have to wait 3 years to qualify to buy a house.

I always suggest that you should talk with your lender at least a year or so before you are thinking about buying so that you have time to work on re-establishing your credit as well as working on improving your credit score so that you will qualify for the loan.  Additionally, you should start saving for the down payment and closing costs.  Plan on saving up about $5,000 plus a minimum of 3.5% of the purchase price of the home you want to buy.  That should be enough to get you into an FHA loan.

If you don’t already have a preferred lender, I suggest that you talk to at least two lenders to get a feel for which one you are comfortable working with.  Here are three suggestions to consider:

Frank Monaco at Guaranteed Rate Affinity. 916-478-9586 Frank.Monaco@Grarate.com
Laura Churchill at Guaranteed Rate.  916-549-6776  laura.churchill@@Grarate.com
Steve Germoles at Comstock Mortgage.  916-977-1232  sgermoles@comstockmortgage.com
Chris Opfer at EstaRMortgage.  916-709-3257 Chris.Opfer@EstaRM.info

Here are some things that you should know and consider:

1.  In bankruptcy, the timelines start from “discharge” date NOT filing date.  Short Sale and Foreclosure timelines start from the completion date.

2.  Buyers should start the process of re-establishing credit and make sure their credit lines after the bankruptcy are current and any credit lines do not exceed 50% of the available credit being used.  You may want to talk with  Blue Water Credit for help with re-establishing your credit.

3.  Buyers should also consider practicing being homebuyers.  Work with your REALTOR and your lender and estimate what your monthly expenses will be with the purchase of a home.  Next, place the difference between your current rent payment and the anticipated monthly cost of your home payment, taxes and insurance into a saving account.  Do this  for the year that you are already saving up for your down payment.  If you pass this test, then you are truly ready to buy your next home.

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!

Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to share this article with your friends on Facebook by clicking on the word “Share” at the top of the article.