Buyers, What surprises do you most fear?

I’ve long believed that the number one source of stress experienced by home buyers is all the unpredictability that lies along the home buying timeline: the prospect of unpleasant surprises that seems to lurk around every corner. Fact is, there are some commonly arising surprises that foul up buyers’ plans and expectations, killing deals and leaving expectations dashed and emotions frayed in their wake. These days, that list includes everything from homes turning out to cost more than the buyer expected to appraisals coming in below the agreed-upon purchase price.

Here’s some good news: there are steps you can take to manage the risks of being taken by surprise while you’re in the process of buying a home. As I see it, they fall into a handful of buckets. Here are the five big categories of actions you can take right now to minimize your chances of having an unpleasant home buying surprise:

1. Study up. As a smart manager of your life and your finances, it’s your duty to get as detailed a primer on the ins and outs of home buying as you need to feel comfortable and confident as you move forward with the process: what lenders require, the nuts and bolts of a purchase transaction, that sort of thing. But when you’re specifically seeking to minimize the risk of unpleasant surprises, you’ve got to take your real estate education to the next level, and study up on some very specific subject matter: your local market, in real-time.

What I mean is that markets vary a lot from place to place, and individual real estate markets change very quickly. If you’re the sort of savvy buyer that’s been stockpiling your cash for a year or more in preparation for buying, it’s entirely possible that the market dynamics you’ll face when you get out there will be very different from those dynamics which inspired you to buy in the first place. It’s a pretty unpleasant surprise to expect to have your pick of the market, then lose out on the first few ‘dream houses’ you find to other offers.

Studying up on your local market empowers you to rejigger your search and offer strategies to be successful without having to first experience these sorts of traumas and dramas. It may also allow you to explore new alternatives for achieving the results you want, like buying via an online auction or

Neighborhoods where homes lagged for months on end a couple of years ago are starting to seem some new life this spring, as buyers like you who have been waiting and saving have begun to sense the bottom of the market might actually have passed. Anecdotally, I’m hearing many more local agents across the country reporting receiving 2 or 3 offers on homes they couldn’t sell at all 18 months ago, and many more buyers reporting that the ‘good’ homes come on and off the market much more quickly than anytime in recent years.

But, again - this stuff is hyperlocal. So ask your agent to help you understand the actual data of the housing market in the neighborhood(s) you’ll be hunting in. Specifically, look at how the number of days a home stays on the market (DOM), inventory levels and the list price to sale price ratio have been trending over the last 6 months to 1 year.

2. Team up. It never ceases to amaze me the amount of expertise and plain old help that goes untapped - and the avoidable stress and expense that are incurred - because buyers don’t even think to express certain concerns to their real estate and mortgage pros. If there are particular potential surprises or other issues that keep you up at night, you should clearly express those to your team of real estate and mortgage professionals, and enlist their help in keeping them at bay.

Obviously, not all surprises are within your agent or mortgage broker’s power to prevent; and many of the risks that you worry about are things they’re surely already making their best efforts to manage. But if your team knows that your closing cost cash is to-the-penny tight, or that your move-in timeline is hair-trigger touchy, that knowledge might inspire them to call in favors like a free rate-lock extension from their rep at your lender, or to set up a strategic solution, like negotiating your ability to move in a few days before closing.

This knowledge also gives them the signal to educate you about what factors will impact the particular surprises you most dread. And that, in turn, allows you to go from wondering in the wilderness of unknown fear factors, to being able to help them smartly spot issues before they snowball into badness.

For example, the date on which you close your transaction during the month has an impact on how much cash you’ll need to bring to the closing table. Generally, the amount of prepaid interest you have to pay if your escrow closes the fourth week of the month is much less than what you’d have to pay if it closed, say, the second week of the month. But think about that: if you’re aiming to close at month’s end to keep your closing costs low, and escrow closes even 10 days late (not at all uncommon, these days) you could end up with a big spike in the cash you’re required to bring in to close.

Letting your team know that this would break your heart - and your bank - can help them quickly act and react to either keep closing on track or, if that’s not possible, pushing it out to avoid jacking up your closing costs.

3. Keep up. Like this closing date/closing costs debacle-in-the-making, there are a number of critical dates and deadlines in a home buying transaction by which decisions and deliverables and course-corrections must be made or the seeds for a scary surprise take root. And only some of the time are you, buyer, in control of making sure those timelines stay on track; many other times, loan underwriters, appraisers, inspectors and lenders are responsible for achieving these important must-meet dates. What you can control is your own awareness of all these calendar points, so that you can make more or less urgent nudges and check-ins, as needed, in order to ensure that things either (a) stay on track, or (b) don’t take you by surprise, if they get off track.

Ask your agent and mortgage broker to help you create and stay on top of an escrow calendar containing all the major and minor deadlines and tipping points of your transaction, as well as to leverage this tool to avoid surprises throughout the transaction.

4. Fess up. It’s one thing to be surprised by something you have no control over. But imagine how you’d feel if your deal was killed by a surprise that you (and only you) could easily have avoided! I’ve personally seen this happen a number of times. One buyer I know ended up losing her dream home - and her deposit money - due to false information on her loan application. She’d apparently gotten away with it on a number of credit applications, but a mortgage is an entirely different animal.

Another nearly had the same tragic outcome as a result of telling her team that she was divorced when, in fact, the divorce was not final. (The bank then wanted to vet her soon-to-be ex-husband’s qualifications for the loan. And his credit was really, really bad. Really.)

When you are in the loan application process, keep in mind that it in the world of lending, technicalities matter - a lot. This is not just a conversation with friends; rather, it’s about as official as you get. So, the things you normally say and do to describe your life, the things that make up your aspirations and plans, the way you see things turning out in the near future - none of these things count as fodder for your loan application. What does count? The hard cold facts of your status quo situation - right now. So, be brutally honest about the state of your life and your finances, warts and all. This might creates obstacles you’ll have to workaround up front, but I assure you that is preferable to getting caught in a falsehood - intentional or otherwise - and having to scramble to try to salvage a deal days before closing.

5. Fluff up. Your cash and time cushions, that is. The reason home buying surprises are so stressful is that they threaten to do one of two things: (a) screw up our timelines for moving, or (b) force us to come up with more cash than we have at hand to close the deal. If you get just a few days away from closing, bags and boxes packed, and are told you need to bring in just an extra few thousand dollars to close the deal, it can feel like your home - actually, your life! - is being held hostage for extra cash, on the one transaction you’ve already spent years saving up for.

The least stressed-out buyers are those who have built in time and cash cushions to their home buying and moving plans. Give yourself the gift of a few weeks of planned overlap in your ability to occupy your last home and your future one; even if that means you wait to give your landlord notice until you’re well into escrow, it empowers you to avoid looking for hotel rooms and being distressed by the very predictable, very common occurrence of a late escrow closing. Similarly, if your home buying-related financial plans involve maintaining a nice, fluffy cushion of so-called emergency cash even after your planned down payment and closing costs, you’ll be less likely to go off the deep end if the lender requires you to drop $500 on repairs to get the deal closed.





Gary Tippner is Short Sale and Foreclosure Resource Certified.

Call 1-877-311-GARY
"Eight Seven Seven Three Eleven... Gary"
http://www.callgarytoday.com

5 DIY Projects to Increase Sales Value by More Than $10,000

5 DIY Projects to Increase Sales Value by More Than $10,000


 It doesn't have to cost a fortune to improve a home and make it more sellable, according to HomeGain’s 2012 National Home Improvement Survey.

HomeGain surveyed nearly 500 real estate professionals nationwide to determine the top do-it-yourself home improvement projects that offers some of the biggest bang for your buck when selling a home.

“In a buyer’s market, sellers need to dress their homes for success before putting them on the market,” says Louis Cammarosano, HomeGain’s general manager. The survey shows “that do-it-yourself home improvements like cleaning and de-cluttering and lightening and brightening your home are cost-effective ways of increasing your chances of selling faster and closing closer to the asking price than homes rushed to the market with no improvements.”

Here are the top five projects that real estate professional recommend to their clients–projects that have the potential to offer some of the highest returns on investment at resale, according to the 2012 HomeGain survey:





1. Clean and declutter

What to do: “Removing personal items; wash and clean all areas of inside and outside of house; freshen air; remove ALL clutter from furniture, counters, and all areas of the home; organize closets; polish woodwork and mirrors.”

Estimated cost: $402

Potential ROI: 403% or $2,024 to the home’s sale price

2. Lighten and brighten

What to do: “Open windows; clean windows and skylights inside and outside; replace old curtains or removing curtains; remove other obstacles from windows blocking light; repair lighting fixtures; make sure window open easily.”

Estimated cost: $424

Potential ROI: 299% or $1,690

3. Repair electrical and plumbing

What to do: “Update leaky or old faucet spouts and handles; repair leaks under bathroom or kitchen sinks; laundry room pipes; toilets should be in good working condition; remove mildew stains.

“Update electrical with new wiring for modern appliances and/or Internet and other audio/visual equipment requested in homes today; door bell should work; service sprinkler systems; fix lights and outlets that do not turn on; replace old plug points with new safety fixtures.”

Estimated cost: $808

Potential ROI: 293% or $3,175

4. Landscaping

What to do: “Front and back yards; add bark mulch; rake and remove leaves, branches and debris; plant bushes and flowers; add planters and hanging plants; mow grass; water lawn and plants; remove weeds and dead plants; manicure existing plants; any yardwork that improves the curb appeal of a home.”

Estimated cost: $564

ROI: 215% or $1,777

5. Staging

What to do: “Add fresh flowers; removing personal items; reduce clutter; rearrange furniture; add new props or furniture to enhance room/s; play soft music; hang artwork in walls.”

Estimated cost: $724

ROI: 196% or $2,145

However, the survey finds that the home improvement projects that offer the highest potential price increase to a home’s resale value continues to be updating the kitchen and bathroom. Home sellers could potentially see a $3,255 price increase to their home at resale by tackling kitchen and bathroom projects, according to the HomeGain survey. But those projects aren’t usually cheap to do.

Gary Tippner is Short Sale and Foreclosure Resource Certified.

Call 1-877-311-GARY

"Eight Seven Seven Three Eleven... Gary"

http://www.callgarytoday.com

Types of 1031 Exchanges Investor Update

I have good news for you if you are a real estate investor; rents are going up across the nation. In Philadelphia, rents are up 15% compared to last year, Chicago saw median rents rise 8.6% in the past 12 months and Minneapolis was up 10%.  In San Francisco the rental market is on a tear with crowds of potential tenants lining up to pay 15% more to rent this year versus last.  


Rising rents mean more attractive returns which is leading more  investors to the real estate market. In Southern CA, absentee buyers, investors and second home purchasers accounted for 28% of all home purchases last month.  The historical avearage is 19.2%. 


If you are a new real estate investor or a seasoned veteran, one thing for certain is that when it comes time to sell, you better have a firm understanding of how to protect your hard earned dollars from the tax man. 



  Types of 1031 Exchanges 


Real estate investors looking to 1031 Exchange have some flexibility in how they structure their transaction.  The Internal Revenue Code allows for the following four types of 1031 Exchanges:


Simultaneous Exchange
In a simultaneous exchange, the relinquished property is sold and the replacement property acquired on the same day, with concurrent closings. The simultaneous exchange is rare and investors should still use an Exchange Accommodator when doing a simultaneous exchange.


Delayed Exchange
The most common method of exchanging, the delayed exchange, allows investors to sell a property and then acquire replacement property within 180 days.


Reverse Exchange
The reverse exchange allows investors to acquire replacement property prior to selling.  The reverse exchange can be more complicated however, as investors cannot own both the new replacement property and (soon to be) relinquished property at the same time. An asset exchange company, as an Exchange Accommodating Titleholder will need to go on title to one of the two properties involved in the exchange. Investors considering a reverse exchange should contact Asset Exchange Company well in advance of closing on the replacement property.


Construction/Improvement Exchange
The construction exchange allows investors to use exchange proceeds to build on land or improve an existing property. The construction/improvement exchange is often used to acquire a 'fixer' and do improvements on the existing structure. The pitfall with a construction/improvement exchange lies in the fact that all exchange funds need to be spent on or before the 180th day of the exchange.


  




 1031 Exchange Language


When doing a 1031 Exchange, the law does not require that you insert specific 1031 Exchange language into the Purchase and Sale contract.  However, it is good business practice to do so. Below is a sample of the language that may be included in a sales contract:


Sale of Relinquished Property
"Buyer is aware that Seller intends to perform an IRC §1031 tax deferred exchange. Seller requests Buyer's cooperation in such an exchange and agrees to hold Buyer harmless from any and all claims, liabilities, costs, or delays in time resulting from such an exchange. Buyer agrees to an assignment of this contract to  asset exchange company  by the Seller."


Purchase of Replacement Property
"Seller is aware that Buyer intends to perform an IRC §1031 tax deferred exchange. Buyer requests Seller's cooperation in such an exchange, and agrees to hold Seller harmless from any and all claims, liabilities, costs, or delays in time resulting from such an exchange. Seller agrees to an assignment of this contract to an asset exchange company by the Buyer."


The law does require, however, that both parties to the contract must agree to an assignment of contract rights from the exchanging party to the Qualified Intermediary.  This is typically done with a written "Notice of Assignement" document signed by all parties. 





Gary Tippner is Short Sale and Foreclosure Resource Certified.


Call 1-877-311-GARY
"Eight Seven Seven Three Eleven... Gary"
http://www.callgarytoday.com

New Grass Valley Short Sale Information

Did you know that nationally less than 50% of all short sales are approved? 


Did you know that despite what the government has tried to legislate, the average approval time for a short sale is 92 days and it is usually the agent / homeowner not the servicer who causes the delay with incomplete or poorly updated documentation? 


Did you know that 7 out of 10 homeowners who lost their homes to foreclosure NEVER sought advice or assistance?





In today’s market it is a fact that we have many agents involved in short sales who really should not be. 


Now, we have addressed the first two statements through training and education but the third – 70% of distressed homeowners not seeking advice – we need your help on that one.





Rather than lose their home and dignity, call us. You will be glad you did.


Gary Tippner is Short Sale and Foreclosure Resource Certified.


Call 1-877-311-GARY
"Eight Seven Seven Three Eleven... Gary"
http://www.callgarytoday.com


Nevada, Placer, Sacramento,  and Olympia and Thurston Counties.

Home Prices Rise in Half of U.S. Cities as Markets Stabilize

Home Prices Rise in Half of U.S. Cities as Markets Stabilize








Prices for single-family homes climbed in half of U.S. cities in the first quarter as real estate markets stabilized. 


The median sales price increased from a year earlier in 74 of 146 metropolitan areas measured, the National Association of Realtors said in a report today. In the fourth quarter, only 29 areas had gains. 


The U.S. housing market is showing signs of bottoming as improving employment and record-low mortgage rates boost demand while inventories of available properties tighten. At the end of March, 2.37 million previously owned homes were available for sale, 22 percent fewer than a year earlier, the Realtors said. 




The national median existing single-family home price was $158,100 in the first quarter, down 0.4 percent from the first three months of 2011, according to the Realtors group. 


The best-performing metro area was Cape Coral, Florida, where prices increased 28.1 percent from a year earlier. Prices rose 19 percent in Grand Rapids, Michigan; 16.9 percent in Palm Bay, Florida; and 16.6 percent in Erie, Pennsylvania. 


Biggest Declines 


Kingston, New York, had the biggest decline, with the median selling price tumbling 22 percent in the quarter. It was followed by Stamford, Connecticut, with an 18 percent decline; Mobile, Alabama, at 14.7 percent; and Atlanta at 12 percent. 


The median selling price is influenced by the mix of homes on the market and probably was boosted by a smaller share of transactions involving distressed properties. Those homes, which sell at discounts, accounted for 32 percent of first-quarter sales, down from 38 percent a year earlier. 


Prices are more volatile than normal because they are affected by the prevalence of distressed sales and “sudden upswings” in buyer interest in some areas, said Lawrence Yun, the group’s chief economist. 


‘Broad Shortages’ 


“We have broad shortages of lower-priced homes in much of the country, with very tight supply in Western states for homes through the middle price ranges,” Yun said in the report. “This is good news for many sellers who wish to list now, or for those waiting for prices to improve.” 


Sales of previously owned homes rose 5.3 percent in the first quarter from a year earlier, according to the report. Purchases climbed 11.7 percent in the Midwest, 6.6 percent in the Northeast, 4.1 percent in the South, and 1.4 percent in the West. 


Fannie Mae, the nation’s biggest mortgage-finance company, today reported a $2.7 billion first-quarter profit after a $6.5 billion loss a year earlier, citing smaller declines in home prices as one of the reasons for improvement. The Washington- based company said that it won’t need Treasury Department aid to balance its books for the first time since it was seized by federal regulators in 2008. 

Buying a home may never get any cheaper than this

Buying a home may never get any cheaper than this. Many housing experts are predicting that this year will be the last chance for bargain hunters to cash in on the best deals of the weak housing market.

With home prices down 34% nationally since 2006 and mortgage rates at historic lows, homes have never been more affordable -- but it won't stay this way for much longer.

Stuart Hoffman, chief economist for PNC Financial Services, said he expects home prices to flatten out by the third quarter and start climbing by next year.

A number of factors will help bolster the housing market, he said, including a decline in the number of foreclosures and continued job growth. In addition, homebuyers will have better access to mortgages as they get their finances in order and improve their credit scores.

"This is a strong indicator that we will start seeing home price indexes, like the S&P/Case-Shiller, start to report home price increases this summer," he said.

Guides to Short Sale your Home

Chances are, among your family, friends, past clients and sphere, you know a homeowner or two who is having trouble keeping up with mortgage payments.  Current estimates are that 6.3 million homeowners in this country are currently in some stage of foreclosure.


With more than 25 percent of homeowners owing more on their mortgage than they could net for their home in today’s market, the solutions are complicated and far beyond the scope of the curriculum that we studied to obtain our real estate license. Short Sales can be complicated and are constantly changing. I invite you to contact me concerning you or anyone you care about who needs help getting out from under a burdensome mortgage.


As a  Short Sale and Foreclosure Resource Certified  Expert (SFR), I am tapped into major lenders and have the most up-to-date knowledge and know-how in negotiating short sales. You can count on me to keep you in the loop throughout the transaction  while providing the highest level of service and support every step of the way.


I look forward to the opportunity to work with you and would be happy to answer any questions that you may have. 




Gary Tippner is Short Sale and Foreclosure Resource Certified.


Call 1-877-311-GARY
"One Eight Seven Seven Three Eleven... Gary"
http://www.callgarytoday.com

Homeowners Bullish on Home Prices?

Homeowners Bullish on Home Prices?






The U.S housing market had already received some good news this week, as Transunion reported that the U.S. residential home mortgage delinquency rate (defined as the number of home mortgages more than 60 days past due) fell for the first quarter of 2012 to 5.78%.

The two previous quarters had seen a rise in such delinquencies, but the good news in the first quarter leaves mortgage delinquencies at their lowest levels since the first quarter of 2009, when the U.S. economy was mired in a deep recession.

TransUnion also sees a "modest" improvement in home prices, an estimate shared by U.S. homeowners themselves these days.





In a separate study by Fannie Mae -- its most recent National Housing Survey -- homeowner sentiment on home prices, and their ability to sell their homes, are both on an upward path.

"Overall, consumer views of housing market conditions have become more supportive of home purchases, and sustained healthy hiring is required to help realize these improved expectations," he adds. "Friday's report of a second consecutive setback in job creation supports the view that the housing recovery will remain uneven this year."

Even so, Fannie Mae reports that Americans expect residential home prices to rise by 1.3% over the next year, as confidence in the economy rose to 37%, according to the survey, up from 35% in April. Consumers also reported "higher incomes" and more say that it's a "good time" to sell a home.

Some other highlights from the study include: 


12% told Fannie Mae their personal financial situation will worsen in the next 12 months, consistent with February and March as the lowest value in more than a year.

23% of respondents expect an increase in their personal income from 12 months ago, a 2% increase from March and the highest level recorded during the past year.

32% of respondents expect home prices to increase over the next 12 months.

Existing home sales fall 2.6 percent in March

Home resales fell in March but the supply of properties on the market tightened and prices inched higher, giving mixed signals about the pace of recovery in the still-struggling housing sector.

The National Association of Realtors said on Thursday that existing home sales slipped 2.6 percent to an annual rate of 4.48 million units last month.

However, February's sales pace was revised slightly higher to 4.60 million units from the previously reported 4.59 million units. Economists polled by Reuters had expected sales at a 4.62 million-unit sales pace last month.

The NAR said even with March's decline, the pace of sales in the first three months of the year marked the strongest first quarter since 2007.

An improving labor market has realtors upbeat about sales prospects for the rest of the year.

"This appears to be very sustainable," said NAR economist Lawrence Yun, referring to the pace of sales during the first quarter.

And in a sign that the nation's glut of unsold homes was easing, inventories fell to 2.37 million. Realtors in some markets have reported shortages of housing stock, Yun said.

Nationwide, the median price for a home resale rose to $163,800 in March, up 2.5 percent from a year earlier.

Distressed sales accounted for 29 percent of resales, down from 34 percent in February, the NAR said.

Residential Real Estate Is Ready to Recover?

The housing market's shadow inventory of unsold homes is starting to clear, certain areas of the country are experiencing signs of more robust activity, and, despite low levels of new-home production (based on historical data), homebuilders are even regaining pricing power in several geographic regions.

Stated simply, the U.S. residential real estate market is about to launch a broad and sustainable multiyear recovery. And, from my perch, the share price strength in housing-related equities is telling the real story of an improving and self-sustaining home market that could continue through the balance of this decade.

As proof of my emerging optimism, I would suggest listening to Toll Brothers' (TOL_) last two earnings conference call presentations and the recent observations made by CEO Doug Yearley in the media.
 


■Spring selling season is strong. Over the past five years, Toll's early-spring selling season had sputtered out in late February/early March. In 2012, however, its sales activity is getting stronger as the year progresses.
 
■Homebuilder pricing power is returning. In fact, Toll Brothers is having its best selling season since 2007. Orders are up "significantly" and nearly 30% of the company's communities have increased home prices. (A year ago, none had pricing power.)
 
■The sun shines in Florida. Miami, Florida, one of the epicenters of home speculation in the last cycle, which had been previously inundated with foreclosures two to three years ago, has turned around meaningfully, thanks to an inflow of South American and Northeast U.S. buyers. This turnaround has been in place for nine to 12 months.
 
■Shadow inventory is clearing. Surprisingly, even some areas of the country that have been adversely impacted by the weight of a large shadow inventory of foreclosed or soon-to-be-foreclosed homes, have improved measurably and are turning the corner. A good example is Phoenix, Arizona, which had over 15 months of supply for sale 12 months ago but now has a developing shortage of inventory (under three months of supply).
 
■West Coast land prices are soaring. In certain areas of northern and southern California, the raw land market is regaining a speculative tone as prices have risen dramatically. The strength of land prices, while well ahead of the health of the home price market, is typically a leading indicator of industry pricing and activity.


It is my expectation that both new- and existing-home prices, which suffered price declines of close to 34% from 2007 to 2011, face a better year ahead in 2012 and over the balance of the decade.

While the housing recovery of 2012 to 2020 will likely start out slowly, owing to the large inventory of unsold homes, still-restricted mortgage credit and the current preference for renting, there is now ample evidence that residential real estate markets have already turned in a national market that has grown bifurcated. Areas of the country that are unencumbered by a large supply of foreclosed properties -- for instance, the Washington, D.C.-to-Boston corridor -- are doing better. Cancellation rates are down dramatically, and some pricing power is returning for the homebuilders. By contrast, areas such as inland California (valleys), Nevada and the like continue to suffer in price and in sluggish transaction activity as a result of the indigestion of the last cycle.

In other words, the weaker regions are masking a developing national recovery in housing that has the potential to be more durable and healthier than the past cycle. (The Case-Shiller index results this week belie the improvement because it is an index of all home prices, not a regional study.)

With a hat tip to Jim Paulsen at Wells Capital Management for providing some charts as evidence, here are the seven main reasons why (in conjunction with the Toll Brothers comments) I expect a durable recovery (in demand, activity/transactions and in prices) in the U.S. housing market:

1. Housing affordability is at a multi-decade high.


2. Reflecting normal U.S. demographic trends (household formations of 1 million-plus per year) and a low level of 2008-2012 new-home production, there is plenty of pent-up demand ready to be unleashed.

3. As rental prices have risen and as home prices have fallen, the economics of home ownership has improved.

4. We have seen improvement in the jobs market data


5. Mortgage rates are at historic lows.


6. Housing surveys have turned positive.


7. Confidence is improving.

So, start thinking about planning what you want to do. Buy, Sell, rent your place out, buy investment rental homes, get some land.


Call 1-877-311-GARY
"Eight Seven Seven Three Eleven... Gary"
http://www.callgarytoday.com

How to Make House Hunting Easier

People approach the task of finding the next house in different ways. Some grab the classified ads and begin calling real estate offices. Others jump in the car and drive neighborhoods looking at "for sale" signs.

If you are in the market for a home, here are some ideas that might be helpful:

Find The Right Agent For You

Because we are all different people, you should select a real estate agent who has the right credentials and suits your personality. Don't work with more than one agent when house hunting. You may feel that two or more agents could help you find more homes more quickly. It usually doesn't work that way. Because Realtors¨ are paid on a commission basis, an agent who knows that he or she has your exclusive loyalty will be more motivated to stick with the job until you are satisfied.

Qualifying For Affordability

One of the most painful experiences for a potential home buyer is to look at homes that are out of the buyer's price range. You may fall in love with a certain home only to discover that you are not financially able to complete the purchase. When you do begin inspecting homes you can afford, they never seem as nice as the more expensive models. Ask your agent to look at your finances and help you decide upon a price range that suits your budget before beginning your house hunting. This all-important first step will allow you to get your home search off on the right foot.

Qualifying For Needs And Tastes

Many buyers visit too many homes before their final selection is made. This is caused by a communication gap between the buyer and the agent. It is difficult for an agent to get an appreciation of your tastes and the type of home you want when you only rely on verbal communication. The best way to help your agent understand your needs is to invite him or her to see your existing home. Point out the features you like in your present home that you want duplicated in the next house. Show your agent the features you dislike about this home so they can be avoided in the next one. Let him or her see the size and style of your furniture so that room sizes can be considered when selecting homes for future showings.

Don't rent when you can buy for the same monthy payment in many cases. A 3 bedroom rental around here averages $1300 per month. Which goes toward nothing but your landlords pockets. You have heard this a thousand times before but since rates are practically nothing these days, this can greatly increase your buying power. But they won't stay at this historic low. You have no more than a year I would guess. And there are tons of homes to choose from right now. Sure, prices might change up or down a little in the next year, but long term with a look back perspective, you know we are coasting on bottom of market. It's only up from here. A slow up, but up.  Rent your place if you are that uncomfortable selling it. At least that will pay your new homes payment in part or all. Rents are high due to demand. But if you need it for a down payment we should discuss all the reasons why you should consider just selling now. Putting the most down you are comfortable with will get you many times even better rates and loan fees and will lower your monthly payment. It will be a quite long time before you get your price you think you want for your home. Sadly, a normal or even subnormal appreciation on your homes value is not in the near future. We know this deep down, but no matter who is running the show, our economy is going to take a while to fix itself. So why not move on and move up while you can and stop thinking about you should do and just clean up the place, fix what you can, and contact me.

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What is the MLS

Highlights

• The Multiple Listing Service has a long history of working with real estate professionals.
• The MLS is an independent advertising and marketing company providing data bases, software and standards to regional, board-maintained, member groups.
• In Nevada County, The Nevada County Association of Realtors Multiple Listing Service, Inc. represents its dues-paying Realtors and associated professionals, offering buyers & sellers free access to all members' listings.
• Buyers and sellers benefit from using RMLS online searches and tools.
• Nevada County's Alternative-Realtors like Gary Tippner offer a powerful, easy-to-navigate website with a variety of search advantages, including their newest "Map" search.

What is the Multiple Listing Service, aka MLS?

The Multiple Listing Service was founded over 100 years ago when regional groups of real estate brokers began meeting to share their listings for the benefit of each other. They quickly discovered it would become necessary to adopt a means for compensatating one another when sales were shared.

Today, the MLS is an independent advertising and marketing company, operating for the benefit of member professionals engaged in real estate sales in local areas across America. It provides the means for listing real estate by way of an electronic database. Each region is responsible for maintaining a board, and individual members pay dues to their local Service for the use of MLS sales tools. Beside sharing information, the MLS maintains standards for providing monetary compensation between sellers and buyers.

By way of specially created data bases and software, brokers are able to list their clients' properties online, and view other members' listed properties for sale in their area. Additionally, mortgage and insurance co. members have access to the information when they put together paperwork associated with a property sale.

Nevada County MLS properties for sale 

As a potential buyer or seller, you are able to view homes and lands for sale in our area listed online on RMLS websites. This is a free service to you. We invite you to explore our Nevada County MLS properties for sale website to experience the ways you (as a buyer or seller) can benefit from using a Realtor with a powerful online presence.

The MLS does not work directly with buyers or sellers. When you, as a buyer, find properties that interest you, contact a Realtor, like us, to learn even more about each listing. We will set up an online portal for you that provides access to homes that meet your specifics of price, size and other amenities. You will also receive an email when a new home is listed in the MLS. As you narrow your search to specific online properties that you wish to visit, we, as your MLS member Realtor will accompany you to the listing. As MLS members, we have the authority to enter all MLS-listed homes via electronic access.

As a seller, our MLS's electronic access offers security and information about who has visited your property. Each Realtor who enters the home is recorded and asked to offer buyer feedback to the seller's agent. This information is passed on to you, the seller, by us and thus, provides an understanding of a buyer's likes or dislikes. For example, if you receive several comments about your garage ("Client doesn't know if their cars will fit") you'll know why it's time to de-clutter.

Many Realtors, including Nevada County MLS properties for sale  Alternative-Realtor Gary Tippner, create unique websites that allow visitors to search for properties in several ways. You'll find a "Quick Search" on our home page that lets you type basic information (price, bedrooms & size) into boxes and begin searching for MLS-listed homes for sale in the Eugene area. However, for the serious buyer, a click on "Search" (top left, Home page) offers searches by address, MLS #, land, farm, single or multiple family, commercial and, our newest search: Map based MLS search. We want your search to be quick and easy so we let you choose how you want to use our website to find your perfect Eugene home.

Search the MLS in Nevada County, Placer County, Thurston County, Ventura County, The Bay Area, actually any county in the U.S. with my data access setup. Other agents do not pay for this.

Click here for home search to try out our online search abilities. We think you'll be impressed with our many options and ease of navigation our website offers.



Gary Tippner is Short Sale and Foreclosure Resource Certified.


Call 1-877-311-GARY
"Eight Seven Seven Three Eleven... Gary"
http://www.callgarytoday.com

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Loan Process Overview

Overview of the Loan Process

You have decided on the house to buy, now what? The following explanation will tell you what to expect from loan application to loan closing.

Loan Application

You will meet with a representative of the mortgage company or bank to complete an application.

Loan Processing

Starting with the information from the loan application, the loan processor puts together a picture showing your ability to qualify for the loan. This picture includes a credit report, verifications of employment and deposit and a property appraisal. Loan processing is usually the most time-consuming part of getting a home loan taking form one to three weeks. There are also reduced documentation programs available for qualified applicants.

Loan Submission And Approval

Once the loan processor has put the picture together, your loan package is submitted to an underwriter. The underwriter's job is to review your file to be sure it meets criteria for granting the loan. If everything is in order, the underwriter will issue a loan approval. Occasionally, the underwriter will require additional information from you before or at closing. Underwriting usually is a twenty-four to seventy-two hour process.

Loan Closing

After the mortgage company has received the loan approval, you and the seller can decide on when you would like to close or to finalize the sale. The mortgage company or bank will probably need at least twenty-four to forty-eight hours notice in order to prepare the closing documents. At closing, the seller will convey the property to you, and you will sign final documentation at the title company.



Please visit http://www.callgarytoday.com and see why Gary Tippner is different.

How Much Should You Offer?

When you find the house you want, it is time to act. How do you know how much to offer the seller? Although everyone likes to get a bargain, every transaction is unique and there are certain factors to consider in each potential purchase.

Here are some things to consider:

Recent Comparable Sales

What price has this type of property sold for in the recent past? Can you see a trend in the local area that would justify an offer in a certain amount? Remember that the seller will be going to the same sales data in order to evaluate your offer. If your offering amount can be backed up by solid market data, you will have a better chance of having your offer accepted.

Demand For This House

Some properties have no one else interested at the time you make your offer. This situation is to your advantage because the seller doesn't know when or if another offer will come along. If the house you want is in great demand, however, you could be involved in a bidding war regardless of what the market value may be. Your best strategy may be to offer more than the seller is asking. This will often get the house when competing against someone else who thinks a full-price offer is sufficient to win the house from you. Offering a high earnest-money deposit also helps strengthen your position. Another good strategy is to obtain a pre-approval from a mortgage lender prior to making the offer so the seller is assured in advance that you will be able to qualify for the loan amount you will need to complete the purchase.




ADVICE: The purchase of real estate is a major financial decision for all of us. Use the services of a Realtor when you are buying real estate. Realtors know the present market and the past sales history of similar homes. They can give you the facts.

Please visit http://www.callgarytoday.com/ and see why Gary Tippner is different.

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Who pays what Fees - Confused?

Confused by Who Pays What Fees?

The SELLER can generally be expected to pay for: Real Estate Commission Document preparation fee for Deed ½ Escrow fee Payoff of all loans in seller's name (or existing loan balance if being assumed by buyer) Interest accrued to lender being paid off, Statement Fees, Reconveyance Fees and any Prepayment Penalties Termite inspection (according to contract) Termite work (according to contract) Home warranty (according to contract) Any judgments, tax liens, etc., against the seller Recording charges to clear all documents of record against seller Tax pro-ration (for any taxes unpaid at time of transfer of title) Any unpaid homeowner's dues Any and all delinquent taxes

The BUYER can generally be expected to pay for: Title insurance premiums ½ Escrow fee Document preparation (if applicable) Recording charges for all documents in buyer's names Termite inspection (according to contract) Tax pro-ration (from date of acquisition) All new loan charges (except those required by lender for seller to pay) Interest on new loan from date of funding to 30 days prior to first payment date Assumption/change of records fees for takeover of existing loan Beneficiary statement fee for assumption of existing loan Inspection fees (roofing, property inspection, geological, etc.) Home warranty (according to contract) Fire insurance premium for first year

Please visit http://www.callgarytoday.com/ and see why Gary Tippner is different.

How to Look at a House Critically with a Trained Eye

How to Look at a House

Each time you look at a property, compare that property against your search parameters. If a specific home falls short of your desires, consider if you can alter the home to make it acceptable to you.

Features

Certain features of a home are virtually impossible to change (e.g. location, ceiling height, or lack of nearby transportation). But, many features of a building which may be perceived as a drawback to you may be easily remedied. If the street noise bothers you, consider installing double pane windows. If the heating system is inadequate, you may be able to install additional heaters or central heating. Building closets may solve inadequate storage issues. Or adding crown moldings and new baseboard trim may address a lack of architectural detail.

Important Questions to Ask

When you see a house that meets most of your criteria and that house appears to be a likely prospect for further consideration, you will want to ask certain vital questions or inspect certain aspects of the home more thoroughly. Some frequently asked questions are: 

1. Are there any recent inspection reports? In some situations, a seller may have obtained a recent pest control or general contractor inspection. This information should be reviewed before submitting an offer.
2. In what condition are the systems (heating, plumbing, electrical, and the roof)? For example, if a roof is very old, it may need to be replaced soon. The cost of this type of work should be considered in the terms and conditions of your offer.
3. What items of personal property are included in the sale? Appliances which are not built-in, such as stoves, refrigerators, and washers/dryers, may not be part of the sale. Get that information before writing an offer.
4. When were improvements made and were they done with permits? If the seller provides evidence that building permits were issued for additions or other major improvements, chances increase that these improvements comply with local building and zoning codes. Many properties in the Nevada County area have improvements completed without the benefit of permits. What does this mean to you? I can help answer this question.  
5. Are there any signs of dampness or poor drainage? These conditions are often difficult and expensive to correct.

This is why you need an agent who can coach you on what to look for and for good recommendations on home inspectors. I can help you find information that is public data that most people don't know how to find.

Please visit http://www.callgarytoday.com/ and see why Gary Tippner is different.

Home Buyers Simple Guide to The Process of Buying without Stress

Step-by-Step Guide to Buying

1. Select a Realtor & establish a relationship:
We are full time, professional Realtors with extensive market knowledge. We will work closely together to find the right home.

2. Have an initial consultation to evaluate your needs and resourcesOnce we establish your needs, we will provide guidance to financial institutions where you can obtain information in order to get the best financing available. We will meet to discuss your needs and analyze your resources.

3. Identify property to buy:
We will show you homes based on the criteria that we establish. The more precise and direct you are with me, the more successful your search will be.

4. Determine seller's motivation:
Once you have found the home that you wish to purchase, we will do all the necessary research to help you structure an effective offer.

5. Write offer to purchase:
We will draft the Purchase Agreement for you, advising you on protective contingencies, customary practices, and local regulations. At this time you will need to provide an "earnest money" deposit, you will be credited this earnest money deposit at close of escrow. (This deposit will be held in escrow after your offer has been accepted by the seller.)

6. Present the offer:We will present your offer to the seller and the seller's agent. The seller has three options: they can accept your offer, counter your offer, or reject your offer. Our personal knowledge of your needs and qualifications will enable us to represent you in the best way possible.

7. Review seller's response:
We will review the seller's response with you. Our negotiating skills and knowledge will benefit you in reaching a final agreement.

8. Open escrow:
When the Purchase Agreement is accepted and signed by all parties, we will open escrow for you. At this time your earnest money will be deposited. The escrow, or title company will receive, hold, and disburse all funds associated with your transaction.

9. Review contingency period:
This is the time allowed per your Purchase Agreement to obtain financing, perform inspections, and satisfy any other contingencies to which your purchase is subject.
Typical contingencies include:

• Approval of the seller's Property Disclosure Statement
• Approval of the Preliminary Title Report
• Loan approval, including an appraisal of the property
• Whole house inspection
• Pest inspection and certification
• Septic & Well if private well and septic system
• Any other requested inspections

10. Coordinate homeowner's Insurance:
I can help coordinate between your Insurance Agent and the Title Officer to make sure your policy is in effect at close of escrow.

11. Pay down payment funds:You will need a Cashier's Check or money transfer several days prior to the closing date of escrow.

12. Close Escrow:
When all of the conditions of the Purchase Agreement have been met, you will sign your loan documents and closing papers. You will deposit the balance of your down payment and closing costs to escrow and your lender will deposit the balance of the purchase price. The Deed will then be recorded at the County Recorder's office and you will take ownership of your home.

YAY! Done.

Please visit http://www.callgarytoday.com/ and see why Gary Tippner is different.



Gary Tippner is Short Sale and Foreclosure Resource Certified.


Call 1-877-311-GARY
"Eight Seven Seven Three Eleven... Gary"
http://www.callgarytoday.com

Listing Contract Basics

Details of a Listing Contract

Obviously the name of the seller and the property address will be included in the listing contract. There are many other things that are included, too, and you should be aware of them.

Price and Terms of Sale

When setting the terms of sale, the main thing you are concerned with is the price. You should have a basic idea of what your home is worth by keeping track of other sales in the neighborhood. Plus, you have probably interviewed at least two real estate agents and they have given you their own ideas. Exercise great care in determining your asking price, making sure not to set it too high or too low. In addition to the price, you will disclose what personal property, if any, goes with the house when you sell it. Personal property is anything that is not attached or fixed to the home, such as washers, dryers, refrigerators, and so on. There may be some item that is considered "real property" that you do not intend to include in the sale. Real property is anything that is attached to the home. For example, you may have a chandelier that has been in your family for generations and you take it from home to home when you move. Since the chandelier is attached to the house, it is considered "real property" and a reasonable buyer would normally expect it to go with the house. The listing contract should make clear that it does not, and your agent should also enter this information with the Multiple Listing Service.

Real Estate Commission

In most areas there is a "customary" percentage that real estate agents expect to earn as a commission. Usually, it is six percent of the sales price. In some areas it can be as high as seven percent. However, just like anything else in real estate, this amount is negotiable. When completing the listing agreement, you and your agent will agree on the amount of the real estate commission. The listing contract also specifies when the commission is earned. If a buyer presents an offer that meets your listing price and terms, the agent has effectively earned the commission. If a buyer presents an offer and you reach agreement on price and terms through counter-offers, the agent has also earned his or her commission.

Multiple Listing Service

Your listing contract should specify whether or not the house will be listed with the local MLS (multiple listing service). It is definitely in your interest to have the house listed. This is because your sales force is automatically multiplied by however many agents are members of the local MLS. If your house is not listed, then you only have one agent working for you instead of many.

Agency Duties of a Listing Agent

The listing contract will specify that your agent is acting as a "seller's agent." This means that, in the sale of your house, they are working for you and only you. However, there may be times when your listing agent has a client who wants to buy your home. For that reason, there is a little "wiggle room" in the listing contract. If your agent also represents the buyer, the listing contract should specify that they provide an additional disclosure that details their duties as a dual agent. The contract also provides permission for your listing agent to act as an agent for others on other transactions. They can continue to list other properties, and represent buyers looking at other homes.

Lockbox

A lockbox is a basically a padlock with a cavity inside where a key to your home can be placed. Only someone with an electronic key or the combination can get into the lockbox and access the key. Having a lockbox available at your house makes it easy for other agents to get access to your house. Without the lockbox, agents representing buyers would have to set appointments to meet you or your agent at the house so they could gain access and view the home. This would be inconvenient. Since almost every other house does have a lockbox available, if you do not allow one most agents will simply not show your property. You will miss out on lots of potential buyers.
The listing contract specifies whether you allow a lockbox or not. It is locked into place, usually on the front door and cannot be removed. Only other agents can access the key that is located within the lockbox.

Resolution of Disputes

There are times when you and your agent have a disagreement that you cannot resolve by yourselves. Maybe the agent did a poor job or misrepresented something. Maybe your agent was really doing their job correctly, but you did not understand. Perhaps the agent will have a dispute with you.  The listing contract specifies what methods will be used to settle such disputes. You can choose to accept binding arbitration, which is usually a lot cheaper than hiring a lawyer and going to court. Usually, matters that can be dealt with in a small claims court are excluded from having to go to binding arbitration.
 You are not required to sign or initial the binding arbitration clause. This would leave you free to hire an (expensive) attorney and pursue disputes in civil court instead of binding arbitration. However, we are not recommending one choice or the other, as giving legal advice is not part of the services we offer.

Please visit http://www.callgarytoday.com/ and see why Gary Tippner is different.

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Listing Commission Issues

Listing Commissions and Related Issues

Are Commissions Negotiable?

In most areas there is a "customary" percentage that real estate agents expect to earn as a commission. Usually, it is six percent of the sales price. In some areas it can be as high as seven percent. However, just like anything else in real estate, this amount is negotiable. When completing the listing agreement, you and your agent will agree on the amount of the real estate commission.

Cut-Rate Listing Commissions

With the advent of the web, a lot of agents are offering "cut-rate" commissions. Most of the time, lower commissions are tied to a lower level of service. If all you want is to be listed with the Multiple Listing Service and a sign in the front yard, then a cut-rate commission may be right for you. If you want an agent who will actively promote your property to other agents and spend money on advertising, then you probably are not going to get that level of service with a reduced commission. At other times, the lower commissions are offered when you agree to tie in to other services offered by the broker, such as agreeing to use a specific lender, escrow, settlement, or title company. The broker (not the agent) will probably have some type of ownership or profit participation in those businesses. The problem with agreeing to tie in to these other companies is that they do not have to be as competitive in pricing their products or services.
Another common practice when you see an ad for a reduced commission is that the compensation is lowered when you agree to buy your next home through the same agent or broker. Usually, the reduced commission is not really being offered on the sale of your existing home but on the purchase of your next one. The ads are usually unclear on this.
As a result, when you see an offer for a lower commission, you should analyze what you are giving up by accepting such an offer. It probably will not be readily apparent in the advertisement. Be sure to ask lots of questions.

How and When Listing Commissions are Earned

Your listing contract specifies a listing price. Your agent's job is to bring a "ready, willing and able" buyer to present an offer. If you reach agreement with the buyer, then the agent has done his job and earned the commission. Once the sale has closed, the real estate broker gets paid from the proceeds of the sale. If the buyer proves unable or unwilling to conclude the sale, the house is placed back on the market and the agent has to begin earning his or her commission all over again.

However, if the seller backs out or does not accept an offer that meets the price and terms of the listing agreement, the listing broker has still earned the commission. They may want to be paid, even though you did not actually sell your home. Therefore, it is very important to carefully consider every detail when completing your listing contract and accepting an offer to buy your property.

Please visit http://www.callgarytoday.com/

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Want to set your home price yourself?

When Your Selling Price is too High, Beware!

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Meeting With Realtors

So you've decided to sell your home and have a fairly good idea of what you think it is worth. Being a sensible home seller, you schedule appointments with three local listing agents who've been hanging stuff on your front doorknob for years. Each Realtor comes prepared with a "Competitive Market Analysis" on fancy paper and they each recommend a specific sales price. Amazingly, a couple of the Realtors have come up with prices that are lower than you expected. Although they back up their recommendations with recent sales data of similar homes, you remain convinced your house is worth more. When you interview the third agent's figures, they are much more in line with your own anticipated value, or maybe even higher. Suddenly, you are a happy and excited home seller, already counting the money.

But which Realtor do you choose?

If you're like many people, you pick Realtor number three. This is an agent who seems willing to listen to your input and work with you. This is an agent that cares about putting the most money in your pocket. This is an agent that is willing to start out at your price and if you need to drop the price later, you can do that easily, right? After all, everyone else does it! The truth is that you may have just met an agent engaging in a questionable sales practice called "buying a listing." He "bought" the listing by suggesting you might be able to get a higher sales price than the other agents recommended. Most likely, he is quite doubtful that your home will actually sell at that price. The intention from the beginning is to eventually talk you into lowering the price.
Why do agents "buy" listings? There are basically two reasons. A well-meaning and hard working agent can feel pressure from a homeowner who has an inflated perception of his home's value. On the other hand, there are some agents who engage in this sales practice routinely.

Behind the Scenes

Whichever the case, if you start out with too high a price on your home, you may have just added to your stress level, and selling a home is stressful enough. There will be a lot of "behind the scenes" action taking place that you don't know about. Contrary to popular opinion, the listing agent does not usually attempt to sell your home to a homebuyer. That isn't very efficient. Listing agents market and promote your home to the hordes of other local agents who do work with homebuyers, dramatically increasing your personal sales force. During the first couple of weeks your home should be a flurry of activity with buyer's agents coming to preview your home so they can sell it to their clients.
If the price is right.
If you and your agent have overpriced, fewer agents will preview your home. After all, they are Realtors, and it is their job to know local market conditions and home values. If your house is dramatically above market, why waste time? Their time is better spent previewing homes that are priced realistically.

Dropping Your Price...Too Late

Later, when you drop your price, your house is "old news." You will never be able to recapture that flurry of initial activity you would have had with a realistic price. Your house could take longer to sell. Even if you do successfully sell at an above market price, your buyer will need a mortgage. The mortgage lender requires an appraisal. If comparable sales for the last six months and current market conditions do not support your sales price, the house won't appraise. You deal falls apart. Of course, you can always attempt to renegotiate the price, but only if the buyer is willing to listen. Your house could go "back on the market."
Once your home has fallen out of escrow or sits on the market awhile, it is harder to get a good offer. Potential buyers will think you might be getting desperate, so they will make lower offers. By overpricing your home in the beginning, you could actually end up settling for a lower price than you would have normally received.

Realtors Talk to Each Other

Plus, remember those two conscientious agents who got aced out of the listing? If your listing agent routinely engages in "buying" listings, he has probably aced out scores of other agents in the same way. Being human, Realtors talk to each other. If they don't like your listing agent, not as many of them will be showing your home. In short, you may have ended up with an agent who was good at selling you, but not good at selling your house. And you're going to pay them a commission for it.
It is human nature for you to want the highest price for your home. However, when you choose the agent who promises what you want to hear, it often leads to stress and frustration. Most of the time, it will take you longer to sell your home. Possibly, you will end up selling at a lower price instead because of the time on market and the factors listed above.
Or maybe as a result of reading this article, you will choose one of the "good" Realtors in the first place. They are out there, you know.

Hi, I am Gary Tippner. I am an out of the box thinker. Just think of me as "Comfort Food" delivered fast. I am not like most other agents. I am easy going, and not aggressive in the way that turns people off. I am more of a diplomat that can also offer safe haven and shelter from 'the natives' that are not always friendly. Visit http://www.callgarytoday.com/


Gary Tippner is Short Sale and Foreclosure Resource Certified.


Call 1-877-311-GARY
"Eight Seven Seven Three Eleven... Gary"
http://www.callgarytoday.com