Real Estate Tidbits

Foreclosure Flood or a Trickle?

For months now, we've been hearing that another wave (flood) of foreclosures was on the way. We keep hearing it, but it has yet to materialize. With everything going on with the economy and with the banks, nobody seems to be able to answer the question as to when, if at all, the foreclosure flood will come.

What we have been seeing over the past few months has been more of a trickle (drip, drip, drip) of new foreclosures coming on the market. Many believe the banks have a backlog of foreclosures they're "holding" and will release them over the next many months. As to whether it will be a "flood" or a "trickle" still remains to be seen.

As of right now, however, it appears to be a trickle... which is probably better, overall, for home values. If we get a large number of foreclosures hitting the market at the same time, that will create more competition and will put additional downward pressure on property prices.

The trickle we've seen lately, and maybe for months to come, seems to be a more "controlled" release of foreclosure inventory and will create less downward pressure on real estate values. However, the trend could change at any time, so we all need to be prepared.

One thing is for sure is that it is truly a great time to buy real estate. Prices haven't been this low in a long time, there's a lot of available inventory, and interest rates are great.

Stay tuned...

Buying Up in a Down Market: A Prudent Move for Many

Many would-be sellers are wondering if now is a good time to sell their current home and buy their next. Of course, while everyone's situation is different, if sellers are looking to "buy up" - buy a more expensive home than the one they are selling - then now may be the BEST TIME in which do to that.  Whatever a seller may "lose" by selling their current home, they may more than make up for when they buy their next... especially if it's a more expensive home.

I refer you to my blog post Sell Now, Buy Up, Increase Equity, You Win, which has been one of the most popular posts on this blog for an explanation of why now may be the best time to buy up.

While many sellers continue to hesitate to make a move, savvy sellers realize that if you plan to buy a more expensive home, then a down market is the best market in which to do it.

Read Sell Now, Buy Up, Increase Equity, You Win.

Feel free to call us if you have additional questions or would like to discuss your specific situation.

And visit our primary website at www .RingTheRinkers.com for even more buying and selling info.

Sacramento County Real Estate Statistics

For those of you out there who love numbers and stats, this blog post is for you. I thought it might be interesting ro provide some current stats on the current real estate market for single-family homes in Sacramento County.

As of today, there are 5,621 homes on the market. 715 of those, 12.7%, are bank owned properties (foreclosures).  And, 3226, 57.3%, of those homes are short sales.

That means that about 30% are "regular" sales. in other words, there are almost 1,700 homes currently on the market for sale that aren't owned by banks and don't require "lender approval" (for short sales).

As for homes that have sold, we had 1,630 sell in Sacramento County in April of this year. We had 1,514 sell in April of 2008 and 891 sell in April of 2007.  So, April's sales in 2009 we're almost double what they were just two years ago. The buyers are back.

As for home prices, the median price in Sacramento County in April was $165,000.  In April of 2008, it was $235,935, and in April of 2007, it was $350,000.  The median price, by the way, is the price at which half of the homes sold above that price and half sold below that price. It is not an "average."

Source: Sacramento MetrolistMLS. Deemed reliable but not guaranteed.

Buyers Need a Strong Pre-Approval in Today's Market

In today's real estate marketplace, bank's and other lenders have tightened their lending standards and made it more difficult to qualify for real estate loans. This makes it more challenging for buyers when competing against multiple offers as we see so often these days.

Buyers can greatly enhance their odds for acceptance and a successful purchase by getting "pre-approved" with a lender as early on in the process as possible - ideally BEFORE even starting the home search process. In addition, many sellers are more impressed when the pre-approval comes from a direct lender - like a major bank, for instance - than when it comes from a smaller, lesser-known company. This is not to say that loan brokers and smaller lenders are not good to work with; all I'm suggesting is that a buyer can appear "better qualified" by working with a well-known lender AND by getting a "pre-approval" (not just a pre-qualification) in advance.

In fact, most sellers won't even consider an offer if a buyer hasn't already been working with a lender. Again, however, a pre-APPROVAL is much better.

Of course, consult with your Realtor on your specific situation, and ask your Realtor to refer you to a strong and reputable lender.

Wall Street Journal: Sacramento Housing Market May Be One of First to Recover

Check out this post from a Wall Street Journal blog regarding Sacramento's housing market being one of the areas around the country that may be one of the first to recover.

Click here for the article.

And here's another interesting article from the Wall Street Journal. More Homes in California are Selling.

Maybe there's light at the end of the tunnel.

Real Estate "Myth-Understanding" #3: Buyers Should Wait for the "Bottom"

In our third real estate myth-understanding, we discuss another popular concern potential home buyers have in this market.

Myth-Understanding: Buyers should wait for the market to "hit the bottom" before they buy so they pay the absolute lowest price for a home.

Truth: The only way to truly "know" when a market (real estate market, stock market, etc.) has hit bottom is when it actually starts heading "up" again.  And, by the time that happens, most of the greatest opportunities have already been lost. Savvy buyers realize the many great opportunities available right now, in the current market, and don't try to "time the market" for the absolute best time. Even the "experts" can't predict the market bottoms with absolute certainty.

If you've been considering buying a home, either to live in, or for investment, now may be the best time for you. If you're not sure, give us a call and let's discuss your goals and your options to see how you may be able to take advantage of the many great opportunities available in today's market.

By the way, current home sales are about DOUBLE what they were last year at this time. So, someone must think this is a good time to buy. Could you be missing one of the best opportunities we've seen in a decade?

Your Piece of California

Here's a great website created by the California Association of Realtors. It's beneficial of both buyers and seller and is a great resource for powerful tips, tricks & techniques for buying and selling in the current real estate marketplace.

Check it out at: www.yourpieceofcalifornia.com.

Selling in Today's Market? Don't Forget the "Curb Appeal"

In today's challenging real estate market, sellers must focus on "standing out" from the crowd. They are competing with short sales, foreclosures and other low-priced properties and must set themselves apart from the competition.

One of the first things to consider when marketing your home is the "curb appeal" - the exterior - how the home looks to prospective buyers when they first drive up. It is said that buyers often make the decision to buy when they first drive up and go inside to validate their decision. While this is not always the case, it illustrates the importance of that critical first impression.

Some things to consider:

- Clean the oil stains off the driveway
- Put the garbage cans behind the fence
- Park the cars in the garage or away from the house
- Mow the lawn and trim the bushes
- Plant some colorful flowers around the walkway
- Put the toys in the backyard

For more powerful tips, tricks & techniques, review the following articles:

Focus on the Exterior, Create "Curb Appeal"

Buyers Decide When They First Drive Up

Flowers Make an Impact

 

#1 Team in Northern California & Hawaii

This blog is all about buying and selling real estate. So, while I was reluctant to write this blog post, I felt compelled to communicate to you something exciting that recently happened to us.

Our real estate team, The Rinker Group at Keller Williams Realty, recently won an award as the #1 real estate team in our region for Keller Williams Realty for 2008. Our region includes all of Northern California & Hawaii.

This award for the top team was for selling over 100 homes last year. We did this despite the real estate market being one of the toughest is history.

Of course, while we are very proud to win this award, we are even more excited that the way this happened was that we were to able to help over 100 buyers & sellers in 2008.

This year, too, is off to a great start. We just closed our 59th property sale as of today.

Real Estate "Myth-Understanding" #2: Can't Afford Payment? Foreclosure is Best Option

Before we get into this myth-understanding, a quick "bottom line" update on the current market: Sales are UP!  Over the past couple months, we've seen roughly DOUBLE the number of home sales in the Sacramento area as compared to the same period a year ago. Buyers are definitely out in force and taking advantage of the amazing opportunities in the current market. If you've been waiting to jump in to the market, NOW may be the time you've been waiting for.  There's lots to choose from and prices are low!

OK, it's time for the second myth-understanding I hear quite often in today's market.

Myth-Understanding: Homeowners who owe more than their home is worth, and can no longer afford their mortgage payment, have only foreclosure as an option.

Truth: Homeowners who owe too much on their homes, but need to sell or otherwise "get out" of their payment, may certainly have other options such as a loan modification, deed in lieu of foreclosure, selling and paying the difference to the bank, short sale, etc.  Foreclosure is definitely not the only option. One of the more common things we're seeing these days is people selling their home "short" - it's called doing a short sale. A short sale is where you sell your home for less than is owed and negotiate with the bank to accept LESS than what is owed on the loan(s).  Will they really do that?  Well... they may or may not.  But short sales are happening every day and can be a possible option for many people.  Click here for more information on short sales.

If you or someone you know is struggling with their mortgage and doesn't know what do do, please call our office and let's discuss the options.

$8000 Tax Credit for First-Time Buyers

As you may have heard, Congress has recently enacted an $8000 tax credit for qualified first-time home buyers purchasing a principal residence between January 1, 2009 and December 1, 2009.

Unlike the tax credit implemented last year, this new credit does not have to be repaid.

Click here for info:    http://www.federalhousingtaxcredit.com

Other helpful links:    The Tax Credit "At a Glance"
                                Tax Credit Frequently-Asked Questions
                                The Law's Other Provisions
                                Video & Buyer Resources

Real Estate "Myth-Understanding" #1: It's a Bad Time to Buy

Over the next several weeks, I will be discussing various misunderstandings and "myths" of today's real estate market. The founder of our Keller Williams Realty, Gary Keller, uses the term "myth-understanding", so that's what I'll use to discuss the issues many buyers and sellers seem to be concerned with in today's market.

Today, I'll reveal one of the most common myth-understandings I hear from potential buyers and discuss the real truth about this issue:

Myth-Understanding: "It's a bad time to buy real estate."

Truth:  Savvy buyers know that is always a good time to buy "good" real estate... especially if you're planning to hold on to it for a few years or longer. And, for investors, it's an amazing time to buy (homes or multi-family properties). Think of it this way: compared to prices a few years ago, real estate is "ON SALE" - up to 50% OFF or more! The seeds of great wealth are often planted during during down markets, so buyers who continue to sit on the sidelines may be missing out on tremendous opportunitites.

If you've been considering buying, but are hesitant due to all that's going on in the real estate market and economy, then give us a call and let's discuss the possibilities available to you.

Is Sacramento Real Estate Picking Up?

Despite all that's going on in today's economy, the Sacramento real estate market (and surrounding areas) may be seeing some exciting signs. Of course, it's too early to say for sure, but could the market be starting to "recover?"

Here are some interesting statistics for Sacramento County from the Sacramento Metrolist MLS:

In February 2008, only 808 homes sold in Sacramento County.  In February 2009, 1577 homes sold. Almost twice as many sold last month as sold the same month last year.

The average days a home sat on the market in February 2008 was 67 days. Last month, February 2009, it was only 52 days. On average, homes sold about 2 weeks faster than the same month the year before.

These are just two of the many statistics the experts use to "measure" the market and by no means can predict for sure what will happen in the future. Prices are still dropping and we still have many homes on the market. So, there is still room for concern, especially for sellers.

However, these statistics do show that homes ARE selling and buyers ARE buying. It's truly a great time to buy, so if you're considering making a move, now may be the best time.

Mortgage Interest Rates Dip to an All-Time Low!

As I have been stating for many months, it is certainly an amazing time to buy a home. Not only is there more inventory on the market than we have seen in many, many years, and not only are prices down to levels they were over 5+ years ago, but interest rates are the lowest they've ever been.

Check out this recent article from cnnmoney.com. 

Some Think It's a "Fence-Sitter's Market" and Not a "Buyer's Market"

Happy New year!!!  It's hard to believe it's already 2009.  It seems like only yesterday we were concerned with Y2K and now it's nine years later. How time flies...

So, as you may have noticed, the time between my blog postings has been greater over the past few months than previously. That's because my team and I have been so busy. Yes, busy. Despite all the doom and gloom that the media tried to portray about today's real estate market, we've had our best year ever.

Of course, the current economy and real estate market are not without their challenges - huge challenges - they also present tremendous opportunity. While I am not an economic expert, I do know something about the real estate market... and this market has absolutely amazing opportunities.

As you can see from many of my blog posts over the past few months, I talk a lot about the current "buyer's market." It is truly a great time to buy. While it's certainly not a great time to sell, and many would-be sellers are discovering that they just can't sell now, it truly is a great time to be a buyer.

There are three big reasons it's a great time to buy in this market: 1) Home inventory levels are the highest we've been in many years, especially with all the foreclosures on the market. A buyer can be like a kid in a candy store with all the choices currently available.  2) Prices are low. In most areas, home prices are as low as they were in the early part of this decade. We've finally reached levels of affordability that allow many first-time buyers to buy a home. And prices for move-up buyers are back to affordable levels, too.  3) Interest rates have recently reached record-low levels.

So, as I mentioned, sellers are certainly not happy right now. Many people have lost significant equity in their homes, myself included.  Yes, even Realtors are not immune to the market happenings. With that said, however, if you are thinking of selling, then now may be the best time than it will be in the next couple years.  As I have said before, if you don't need to sell, then stay put.  If you need to sell, or want to move up to a larger, more expensive home, then NOW is certainly the best time to do it.

If you're a buyer and you're still waiting for the perfect time to jump into the market, then remember this: it's not called a "buyer's market" for nothing.  It's not a fence-sitting, wait for a better time, sit around and think about buying, wait for even lower prices, postponing, faltering, hesitating, procrastinating market.  It's a BUYER'S MARKET.

Buyers Jumping Back In To Market with Lowering Interest Rates

With all the uncertainty in the economy over the past few months and with the real estate market plunging over the past three years, buyers have been fearful to getting back into the market and buying real estate.

Of course, many have realized that now IS a phenomenal time to buy and many others who have been wanting to sell and buy UP, also realize that a down market is certainly the best time in which to do just that.

On the other hand, however, all the uncertainty has kept a lot of people on the sidelines. But now, albeit slowly, buyers are coming back... and the lowering interest rates are definitely a contributing factor.

Click here for a recent Sacramento Bee article discussing the how interest rates are getting buyers to look up and take notice.

If you'd like to discuss your current situation and see how now may be the right time for you to make a move - either buying or selling - then give us a call at one of the numbers on the left. We can discuss your options and, if nothing else, provide some guidance on how best to navigate these troubled waters.

And you can always visit our website for access to ALL current properties on the market and for tons of tips, tricks, and techniques on buying and selling real estate.

Some Buyers Fear a "Buyer's Market"

Being in real estate during these challenging financial times, I get asked often if this is a good time to "get into the market" and buy real estate. Many potential buyers are fearful of making a move right now fearing that prices will continue to drop.

While this is certainly an uncertain time in the financial and real estate markets, I remind them what I've learned over the years and that is this: "It's always a good time to buy good real estate." In other words, if you're buying the real estate for the "right reasons," and doing it the "right way", then, even now is a good time to buy.

Remember... it's called a "buyer's market" for a reason. Yet it's ironic how many people - buyers - fear this type of market.

Also remember, fortunes are often made in tough economic times. "When the going gets tough, the touch get going."

Am I saying that it's a GREAT time for EVERYONE to get into the market and buy real estate? Absolutely not! Please don't misunderstand me. There are certain people who SHOULD WAIT until the time is right and their situation is better. There are others who should jump in with both feet!

What I AM saying is that if you've been thinking about buying a home, either to live in for a while, or to invest in long term, then this may be one of the BEST times to buy that we've seen in the last 10 years.

So... if you're not sure what you should do, then give me a call. Let's discuss it and see what makes sense in your situation. And just because my business is selling real estate, it doesn't mean that I'll talk you into buying. In fact, you'd be amazed how many people - both buyers and sellers - to whom I've suggested that way wait.

My message here is simple... it is a "buyer's market," and for certain buyers and investors, this market can be an absolutely PHENOMENAL opportunity for you. If you'd like to discuss the possibilities available to you right now, then give me a call at (916) 241-8000 or (530) 677-1332.

Savvy Buyers are Jumping In!

WOW!!!  What a time to buy real estate! You should be excited about this market!

If you are still "on the fence" about buying real estate, then you're "missing the boat!"  My clients have always appreciated my honesty and candor when it comes to real estate. So, I'm going to be brutally honest with you in this post... if yo've been waiting for the "right time" to buy real estate, and you're STILL WAITING for the "perfect time," then you might need your head examined.  I say that only half kidding.

Here's the scoop: interest rates are back down below 6%, prices are at the lowest we've seen in years, and... there is LOTS of inventory... in other words... money is CHEAP, prices are LOW, and the choices are MANY!

The savvy buyers know this is the time to buy and they're taking advantage of the amazing opporunities currently available. Are you taking advantage of the opportunities? If not, why now?  If you've been considering buying... either to live in... or to invest... then NOW IS THE TIME!

Selling? How About "Green" Remodeling?

I recently ran across this from The Daily Green and thought it might be of interest. Of course, these tips can help even if you're not looking to sell.

1. Replace as many light bulbs as you can with CFLs (compact fluorescents). CFLs use a quarter of the electricity as regular bulbs, and lighting accounts for 20% of home energy use.                     
2. Upgrade any old or questionable appliances with new Energy Star-certified models. The EPA's blue and white label indicates models must be 10% to 50% more efficient than standard offerings.
3. Install a programmable thermostat.                               
4. Make sure cracks are tightly caulked and leaks are sealed. Just doing that can drop your annual heating bill by $100, according to Department of Energy figures. Also consider if your insulation might need beefing up.   
5. Putting on a fresh coat of the new and now-widely available low volatile organic compounds(VOCs) paints can go a long way toward attracting buyers.  It gives Realtors something to market," she says.
6. Old carpets can be a real turnoff, and can emit allergens and toxins. Exposing any hardwood floors is a good way to bring out a home's beauty and value, but if you don't have that option consider new, eco-friendly carpeting.

Click the link for the entire article How Green Remodeling Can Help Sell Your House.

Today's Market is GREAT for "Move-Up" Buyers

Recently, I have had conversations with homeowners who've been thinking about selling and buying another home. They hesitate to sell, of course, because of the current declining market. I ask them if they're "buying up."  In other words, "are they selling their home to buy a more expensive one?" When they tell me, yes, I remind them that this is the BEST MARKET in which to sell and BUY UP.

I wrote a blog article back in December discussing this exact topic and it applies today just like it did then. In fact, the idea of "buying up in a down market" has ALWAYS been a great idea (in ANY declining or down market), but few people really take the time to consider it and really understand it.

Here's the blog article: Sell Now, Buy Up, Increase Equity, You Win! 

If you'd like to discuss your specific situation and your options, please call us at (916) 241-8000 or (530) 677-1332.

Today's Sellers MUST Focus on Price

We've all heard about the three most important factors in real estate: location, location, location; right?. Well, while location is certainly important, in today's challenging market, the three most factors are: price, price price.

Yes... it's all about price. Even a home in a rotten location will sell if it's priced right. This is probably the biggest challenge sellers face in today's market. Most homes are simply priced too high for the market. "Regular" sellers (those who aren't in foreclosure or trying to do a short sale) are competing with the bank-owned (foreclosure) properties and short sales - combined are considered "distressed properties."

Of course, along with price, there are a few more critical factors that sellers need to keep in mind when selling:

• Price (as we've already discussed)
• Location (always important)
• Condition (the property must be in the best condition possible)
• Exposure (the exposure it gets in the marketplace - this is why a seller needs a great Realtor who is an expert at marketing the property to buyers and their agents)

Keep in mind, however, that while all four of the above are important, price wins every time. Price can overcome any or all of the others. Although, if there's little or no "exposure" (marketing), then even price may not be the solution. That's why you need a Realtor with a proven track record of results.

So, what's the bottom line? Those who are considering selling in the current market, must price aggressively to complete. Consult a good Realtor who can advise you on how best to "position" your property to sell quickly at the best price.

Other posts you might find helpful:

Location, Location, Location or Price, Price, Price?

Property Not Selling? Here's Why.

Sell Now or Wait for the Market to Improve? 

When Should a Seller Lower Their Asking Price? 

Today's Buyers Want a Great Value 

Lenders Tightening Standards on Multiple Rental Properties

As we've seen over the past couple years during the "housing challenges" we've experienced, lenders have been changing and "tightening" their standards and guidelines for making loans. They are trying to correct the "mistakes" that were made a few years ago - mistakes that some say have created the "mortgage meltdown" the country has experienced since the end of 2005.

While there have been many changes, a recent "guideline" that seems to be changing is that many banks and mortgage organizations are limiting the number of financed rental properties any one person can have. And that limit seems to be four in most situations.

Of course, the mortgage industry's guidelines and lending requirements have been changing almost weekly, so ensure you stay in touch with a trusted, experienced and knowledgeable lender when buying investment properties.

And, as with everything else in real estate and mortgage, it could change again tomorrow.

If you need to talk to someone about your specific situation, either with buying investment properties, or just buying your first home, or anything else for that matter, give us a call at (916) 241-8000 or (530) 677-1332.

Why Do Buyers Ask for a 3% Closing Cost Credit When Making an Offer?

I was speaking with one of my sellers the other day about an offer we had received on his property. In the offer, the buyer asked for a 3% credit towards the buyer's closing costs. This means, in effect, that the buyer is asking the seller to pay 3% of the buyer's closing costs.

The seller was wondering if the buyer was even qualified to buy the house since they didn't have enough money for closing costs. This is a common misconception about closing cost credits. In many cases, buyers asking for closing cost credits has nothing to do with their inability to pay them or their qualification for the loan. In this case, the buyer is paying a down payment of $80,000. So, asking for a closing cost credit was more of a "cash preservation" strategy and this is a strategy that many savvy buyers utilize to preserve their cash.

In today's market, many buyers ask the sellers to credit (pay for) their closing costs. In some cases, it is because the buyers don't have enough cash and they need the "help." In other cases, it's just smart buying.�For sellers, they really shouldn't care about these kinds of credits, which are often around 3%, and sometimes as high as 6% depending on the buyer's loan program. All a seller really cares about is their "net" - how much they put in their pocket at the end of the transaction.

Before I got into real estate, I was confused about closing cost credits and actually argued with my agent when selling my first house. The buyer asked for a 3% closing cost credit and I refused to allow it. My agent tried to educate me, but I struggled to understand.

Once I "got it", it made perfect sense. So, if you're a buyer or seller in today's market, and this topic comes up - and it probably will - ask your agent to explain it and how it will affect your transaction.

Reflecting on Today's Real Estate Market

As I do my usual Sunday preparation for the week ahead, I was reflecting on how well the real estate market is doing right now as it pertains to BUYING real estate. Yes, as we all know and as I have discussed before, it's a challenge for sellers, but it's a great time for buyers.

Sellers can certainly sell in today's market; it's just that they have to be very realistic with their price and willingness to negotiate.

Some say this is a bad market. I'm not sure I agree. Bad for whom? Yes, it's certainly not good for sellers... but it is good for buyers. So, is it a "bad market?" How might a buyer or investor answer that question? Many buyers I know think this is a great market.

So, let's flip the equation. In 2004, was it a good market or a bad market? Most would say it was a great market. But, great for whom? Yes, it was great for sellers, but how about for buyers? Most buyers were very frustrated with that market. High prices, getting outbid on homes, having to pay more than asking price to ensure they got the property... those were just a few things that made that market a "bad" market for many buyers.

So, remember... the market is always good for some and bad for others. Then, when the market changes, and it always does, it becomes bad for some and good for others. It just depends on which side of the equation you're on.

There is one thing for sure... it's always a great time to buy good real estate for a good price.

FHA Loans Make a Strong "Comeback"

The current real estate market is bringing back the FHA loan. While it really never left, it was largely unnecessary during the hot sellers market of a few years ago. But now, FHA loans make up a large percentage of today's home purchases.

Here's an article from yesterday's Sacramento Bee: FHA mortgage loans 'only game in town'

Curious about your options and if you can qualify to buy in the current market? Give us a call at (916) 241-8000 or (530) 677-1332 and let's talk. Or visit www.CanIQualifyNow.com.

Also read:

Real Estate is "ON SALE"

What is a "Buyer's Market"?

The 3 Most Important Steps on the Path to Buying a Home 

The Buyers are Coming, The Buyers are Coming!

Well, there's no doubt about it... the buyers are coming (and they have been for a while now)... and there are a lot of them out there. And foreclosures seem to be their product of choice right now. Yes, other types of properties are selling, but foreclosures are where the bargains are.

Heidi and I, for the past few months, have been doing a lot of work with banks helping them sell the foreclosed properties that recently acquired. We've been so busy, Heidi and I have had to "build a team." We're brought on two very talented and experienced Buyer Specialists - Realtors who work solely with home buyers - and an Administrative Assistant to help us with all the other "stuff" that goes along with selling real estate.

So, if you've been waiting to get back into the real estate market to buy property, either to live in, for investment, or to "flip" and make a quick buck (when flipping, of course, you need to know what you're doing and be very careful), then this is the market for you.

For sellers, don't worry... all hope is not lost. There are plenty of non-foreclosure homes selling. It's just that sellers have to be very realistic when pricing their homes. And, as I've been saying for the last year or so, if you don't have to sell, then don't... wait it out, but plan to wait at least four of five years. Once the market "bottoms" out, it'll take a few years to "come back up."  However, if you need to sell within the next year or two, then sell now since you'll probably make more now than you will it you wait a year or two.

If you've been thinking about buying or selling, but aren't sure if this is the right time for you, give us a call at (916) 241-8000 or (530) 677-1332 and let's discuss your situation and your options. It may or may not be the right time for you, but let's discuss it.

Looking for Even More Real Estate Tips, Tricks & Techniques?

Many Foreclosures Can't Be Prevented

Despite what some lenders and consumer groups are trying to do to help troubled borrowers, many foreclosures just can't be prevented. I came across this article on MSNBC.com yesterday and thought it may be of interest.

Click here to read the article

If you or someone you know in Sacramento, El Dorado, or Placer county is afraid foreclosure is inevitable, please give us a call and let's talk. You may not have to be one of those who end up in foreclosure. There may be options for you, but time is not on your side, so call us today at (916) 241-8000 or (530) 677-1332. We may be able to help.

Clear the Cobwebs

Being a Realtor, I see many, many homes each week.  I see small ones and I see large ones.  I see old ones and I see new ones. I see beautiful ones and I see ugly ones. One thing I often see, no matter what type or kind of home, is cobwebs (spider webs).

When selling a home, it's vitally important that the property be in the absolute best condition possible.  Even a "fixer" can look good if it's neat and clean (as neat and clean as a fixer can be, of course).

Sellers must remember to ensure, along with all the cleaning and preparation they do for their home to get ready to sell it, that they clear all the cobwebs, too.

Although cobwebs can show up almost anywhere, I see them most often in:

• Entryways
• The corners of walls... especially where the corners meet ceilings
• Window frames and window blinds (especially in the corners and upper parts)
• Under decks (just clean where you can reach)
• Garages
• Sheds

Of course, spiders can go just about anywhere, so take a walk around your home and look everywhere. Use a long broom or a duster with an extension.

Some other articles on preparing your home to sell:

• Kitchens Sell Houses
• Sellers... Don't Forget the Kids' Rooms
• Sellers Need to Keep It Clean, Clean, Clean
• When Selling a Home, Consider the "Pet Factor"
• Sellers, Focus on the Exterior... Create "Curb Appeal"
• Home Selling Tip: Clutter Be Gone!

If you're thinking of selling, or would just like to discuss your options, feel free to call our office at 916-241-8000 or 530-677-1332. Let's talk... no cost... no obligation.

Home Sales Up Again But Prices Down

An article in today's Sacramento Bee discusses how home sales for the past two months have been up, year-over-year, as prices continue to drop. Bank-owned properties - foreclosures - continue to put downward pressure on home values allowing bargain hunters, investors and first-time buyers to "get off the fence" and into the market.

Click here to read the article.

If you'd like to discuss the opportunities that may be available to you in today's market, as a buyer or seller, feel free to call us at (916) 241-8000 or (530) 677-1332 or click here.

Foreclosures Fell 12% in May

In my ongoing efforts to scan local and national media to bring current and relevent information to you, my readers, I came across this short article in the latest online version of the Sacramento Business Journal. New forclosure filings and the number of those people who lost their homes to foreclosure dropped for the second month in a row nationally.

Click here for article.

Home Warranties are the Cheapest Insurance a Seller Can Provide

Sellers sometimes ask why THEY, the sellers, have to pay for the BUYER'S home warranty. I tell them they don't "have" to, but they sure should. Why? Because, if something "breaks" or goes wrong in the house during the first year after the sale, the buyer's have "protection" in the form of the home warranty.

While the home warranty doesn't cover everything, it covers many of the most commonly-affected items that "could" experience a problem. So, if there is a problem, instead of thinking the seller may share some liability in the problem, the buyer can simply contact the home warranty company, pay a small deductible, and have the problem resolved.

Of course, the home warranty does have exclusions and limitations but, for less than $500, the seller can provide the buyer with some "insurance" on the home's major systems and some peace of mind.

As always, I recommend both the sellers and buyers consult with their Realtor for the best guidance as it relates to home warranties.

Also, refer to Home Selling Tip: Provide the Buyer a Home Warranty.

Foreclosure Buyers Frustrated in Today's Market

In my previous article about home sellers struggling to compete against all the foreclosure properties, I spoke about how difficult it can be for "regular" sellers to sell with all the competition from low-priced, bargain-basement bank-owned properties.

This post discusses the other side of the "challenge" - buyers struggling to successfully purchase a foreclosure when competing against other buyers wanting the same property.

Now that prices are back down to more affordable levels, and interest rates are hovering at or below 6%, buyers are coming back into the marketplace. And they're in tough competition against each other when it comes to buying foreclosures.

Many of the "best deals" out there are bank-owned (foreclosure) properties, especially those under $300,000. When a new foreclosure is listed by an agent, if it's in decent shape (and many are in great shape) and if it's in the under-$300k price range (the lower, the better), the buyers and their agents are flocking to these properties in record numbers. In fact, I recently listed a bank-owned fixer-upper property in Citrus Heights that had major problems and need a lot of work, but it had over 45 buyer showings in just three days and sold for $3000 above asking price.

Buyers must accept the fact that buying a foreclosure can be a frustrating and challenging task. Their agents, too, are frustrated with all the other offers that compete with their buyer's offer. Many buyers are offering above asking price just to ensure they can effectively compete against the other buyers who also desire the same property.

Some tips on "winning the battle" and coming out successful on buying a foreclosure that might appeal to other buyers as well:

• Of course, consult your Realtor for advice (he/she knows your situation best)
• Consider offering a price above the asking price
• Consider more appealing terms that the bank might prefer such as not asking for a pest report, offering a shorter escrow, making a larger deposit, offering all cash (if you can)
• Offer to pay some of the seller's closing costs

Again, your agent can best guide you. Good luck!

Other articles to review:

• Foreclosure Properties Often Get Multiple Offers
• First-Time Buyers See the Opportunities
• Buyers Often Miss "Great" Deals for "Better" Deals

Are you Looking for Even More Real Estate Tips, Tricks & Techniques?

"Regular" Sellers Struggle to Compete

In the current market, where bank-owned (foreclosure) properties and short sales are a major portion of the homes for sale, "regular" sellers (non-foreclosure and non-short sale) struggle to compete.

Many of the foreclosures and short sale properties are priced extremely low to sell fast. Regular sellers must also price aggressively to effectively compete against those "bargain" properties. Many sellers I speak to tell me what they think their homes are "worth," but what they "think" or "want" or "need" doesn't matter in today's market. The market determines value... period.

The best way to determine value in any real estate market is by what other comparable homes are selling for. And, in today's market, homes have been coming down in value. To be able to sell, regular sellers must be aggressive and ruthless in their pricing. If they're not, they won't sell; they'll need to wait until a market recovery for their homes to sell for a higher price. It's not good news, but it's reality.

My message to today's sellers: Don't sell if you don't have to. Otherwise, if you must sell now, hire a Realtor with a solid track record in the current market and who uses aggressive pricing and marketing strategies to get your home sold fast. The longer a home is on the market, the less it typically sells for.

Other articles that may be of interest:

• When It Comes to Pricing, The Market is Always Right
• A Home's Value Has Nothing to Do With What is Owed on It
• "Lower My Price?!? Do I Really Have To?"
• Today's Buyers Want a Great Value

Buyers Can Ask... But Sellers Aren't Obligated...

When a buyer and seller enter into a contract, the buyer typically has 17 days (based on the standard California contract) to conduct any inspections (usually at the buyer's expense). At minimum, the buyer usually has a "whole house" inspection performed, although they can have almost any inspection done that they wish... roof, pool, HVAC, etc..

Once the inspection(s) is/are complete, then the buyer has the right to request that the seller repair any significant defects or problems with the property. Notice I said that the buyer has the "right to request" repairs or corrections be made by the seller. Even though the buyer has the right to request that repairs be made, the seller is NOT OBLIGATED to make any of those repairs.

Of course, this is an area of negotiations. The buyer and seller, through their respective agents, negotiate which, if any, repairs the seller will make. Often, sellers will address electrical and plumbing issues and anything related to health and safety, however, it's all negotiable. Sometimes a seller will even offer money in lieu of repairs. Whatever is asked for or offered by either party, as long as it's agreed-upon, should be OK.

However, if the seller and buyer cannot come to a mutually-acceptable negotiation about repairs, then the buyer may have the right to rescind the contract and receive the deposit back. This usually doesn't happen (although it certainly can... and does) since both parties want to make the transaction work - the seller wants to sell and the buyer wants to buy. And, of course, all of these conditions and options should be spelled out in detail in the purchase contract.

The Realtors for each party, buyer and seller, will coordinate all of this and advise their respective clients as what may be most appropriate. It's important that the buyer and seller work closely with their agents to ensure everything is handled professionally and appropriately for a win-win transaction.

Real Estate is "ON SALE"

A few months ago, I wrote an article about homes being "on sale." In other words, prices are so low and inventories are so high, it's an excellent time to buy. And... homes are still "ON SALE".

We are starting to see multiple offers on many homes, specifically, foreclosure properties - many of these properties are great bargains and buyers and investors are starting to realize the opportunities available in today's market.

If you've been "on the fence" thinking you'll wait for the market to "bottom out", then you may be missing the boat. While the market may drop more, if you're looking to buy for the long term - either investing or buying to live in - then the short term price drops won't have much of an effect on you.

Savvy buyers realize that NOW is truly a great time to buy. Those who wait and wait and wait, as always, will probably miss the best opportunities. Remember... homes are ON SALE.

If you'd like to discuss the opportunities available, or if you have any questions, please call us at (916) 241-8000 or (530) 677-1332.  Or, to search for homes, click here.

Some other posts to review:

• 3 Reasons It's a Great Time to Buy a Home
• Homes are on "Sale"
• What is a "Buyer's Market"?
• First-Time Buyers See the Opportunities
• Buyers Often Miss "Great" Deals for "Better" Deals