The Truth About Appraisals

The appraisal process often confuses consumers. They may feel that their Grass Valley home or Nevada City home is worth a higher dollar amount, and so the appraised value doesn't always make sense to them. It is important to know that the appraiser is completely independent from lenders, buyers, sellers, and real estate agents, and that the guidelines to which they adhere are dictated by the Uniform Standards of Professional Appraisal Practice (USPAP) and Fannie Mae.

In essence, these important guidelines help appraisers put a fair market value on homes based on comparable sales in the same area, and the home must be bracketed in size and value.

For example, there is no set dollar figure associated with a great view, pool, spa, bathroom upgrades, etc. If a homeowner installs a custom pool that cost them $30,000, but the local marketplace supports the value of a pool at $15,000, then that item will be bracketed as [$15,000] on the appraisal.

On the other hand, the upgrading or remodeling of an older home is rarely reflected in full in the final appraisal. This is because typically 25-40% of the project involves demolition and the fixing of issues that aren't uncovered until the project has already begun, such as plumbing or wiring that may need updating or after the fact permits.

Ultimately, the value of the upgrades must be supported by comparable examples within the same marketplace. These comparisons must be drawn from current market activity within the last six months. This is a safeguard to prevent appraisers from attaching too high a value to the home in question, and opening up the appraisal for review. This guideline further states that appraisers can only base their opinion on the value of home sales that have actually closed. 

In short, a bank will only loan based on the appraisal value minus down payment, basically, in most cases.

I can refer you to a local appraiser to give you the best information and more detail. Contact me for Grass Valley and Nevada City market analysis and approximate home value.

Nevada City Fine Homes Luxury Homes

Here is a link to Nevada City Fine Homes for Sale Nevada County Real Estate

Please contact Gary Tippner for anything you see or any questions you have regarding this market.

Bulk Foreclosure Sales

Bulk Foreclosure Sales Could Cause Bigger Bank Write-Downs



 As government, federal regulators and big-money private investors try to figure out a plan for bulk sales of foreclosed properties, big banks are already making deals, but they are few and far between.






The trouble is, they are looking at even bigger write-downs than forecast if they sell these distressed properties in bulk.






One of the things that might be holding these bulk sales back is that the assets might not have been fully written down by the banks. The problem for the banks is that in that scenario, when they sell off these assets in bulk, they have to recognize pretty significant losses all at once, rather than spread those losses out over a longer period of time.








No details on the deal until it closes, but those deals are still rare, despite investor appetite, because the banks would have to take bigger write-downs on the value of those properties than originally thought.






Bank officials will tell you that the write-downs are taken when the properties are taken back as REO (real estate owned), that is, when they are officially repossessed by the lender. That value is based on the current market value of those properties. In some markets, the bank will be able to sell REOs at pretty close to the market value. But if they sell the properties in bulk to investors, they will have to offer deep bulk discounts, and that means additional write-downs.






The same could be true of any bulk program with the government, involving current and future REOs at Fannie Mae, Freddie Mac and the FHA.






Sources say there was a big meeting this week in Washington, DC about just that.






The players included Treasury and HUD officials, representatives of Fannie and Freddie and their conservator, the FHFA, along with private equity investors and housing non-profits.

NEW FIRE PREVENTION FEE

FIRE PREVENTION FEE







The Governor signed AB 29 of the First Extraordinary Session (ABX1 29) into law on July 7, 2011. ABX1 29 imposes a $150 annual wildfire protection fee per habitable structure for property owners in the State Responsibility Areas (SRA). SRA lands cover about 31 million acres in 56 counties, and include an estimated 1.1 million to 1.5 million individual parcels, and approximately 800,000 habitable structures. Public Resources Code Section 4210 provides a legislative finding and declaration that the presence of structures within the SRA can pose an increased risk of fire ignition and an increased potential for fire damage within the state's wildlands and watersheds and that the costs of fire prevention activities should be borne by the owners of these structures.






The State Board of Equalization (BOE) is required to annually assess and collect the fee from property owners on behalf of the California Department of Forestry and Fire Protection (CDF) in accordance with the Fee Collection Procedures Law. CDF is responsible for providing the BOE with a list of property owners who are liable for the fire prevention fee, and the amount to be assessed. However, the BOE is currently waiting to receive funding from the State of California in order to begin its collection duties, so the BOE has not yet finalized its method for the billing procedure of the Fire Prevention Fee.

Fed's Housing Fix?

Does Fed's Housing Fix Means Everyone Loses?

The Federal Reserve Chairman Ben Bernanke on Wednesday proposed policies that would force a recovery in housing, but cautioned that there was no single solution to the housing market's problems and that everyone from investors to taxpayers would need to feel the pain.
In a 26-page white paper, the Fed outlined ways to ease some of the pressures afflicting the housing market.


While some of the weakness was due to weak labor market conditions and poor demand, policies that would address the excess inventory of foreclosed homes, borrower access to mortgage credit and inefficient foreclosure procedures should be considered, the central bank said.


The large inventory of foreclosed or surrendered properties is contributing to excess supply in the for-sale market, placing downward pressure on house prices and exacerbating the loss in aggregate housing wealth. At the same time, rental markets are strengthening in some areas of the country, reflecting in part a decline in the homeownership rate," the paper noted.  
"Reducing some of the barriers to converting foreclosed properties to rental units will help redeploy the existing stock of houses in a more efficient way. Such conversions might also increase lenders' eventual recoveries on foreclosed and surrendered properties."


The regulator is considering issuing guidance to banking organizations and examiners to clarify supervisory expectations regarding rental of residential REO properties by such organizations while such circumstances continue (and within relevant federal and statutory and regulatory limits).


As of September 2011, U.S. commercial banks had $10 billion in residential REO properties on their balance sheets, while savings and loans had an additional $1.4 billion. But serviced-for-others REO portfolios managed by banking organizations are significantly larger than their owned portfolios.


The Fed also suggested that banks actively consider alternatives to foreclosures such as deeds-in-lieu of foreclosure or more and EASIER short sales, which can help reduce transaction costs and minimize negative effects on communities.  


The central bank warned that failure to take action would mean the adjustment process in the housing market will take longer adding to "deadweight" losses, pushing house prices lower and prolonging the downward pressure on the wealth of current homeowners and the resultant drag on the economy at large.

Government Foreclosure to Rental Plan Being Worked On

The White House is close to announcing a pilot program to sell government-owned foreclosures in bulk to investors as rentals.  


The Federal Reserve, Treasury, HUD, Fannie Mae and Freddie Mac are working out details of the plan, including what the pricing for such a sale would be, the government's role in the plan and identifying those with the operational experience to manage such properties, according to the report.  


The policy aims at reducing the foreclosure supply in the market.

Banks repossessed fewer homes in 2011, but much of the slowdown was because of foreclosure processing delays. The recent spike in "default filings" points to a fresh wave in foreclosures in 2012, which could hold prices down further. The number of properties in the foreclosure pipeline is more than four times the number of REO -- or real estate owned properties -- for which foreclosure processing has been completed, according to the Fed.

  
Families who have lost their homes to foreclosure also tend to move to single-family rentals, so a proposal to convert foreclosures to rentals will also make sense.



Investors have been snapping up foreclosed properties at bargain prices and converting them into rental units, but large-scale conversions have not taken place.


For one, investors are willing to buy bulk properties only at significant large discounts, partly because they are unable to get debt financing for such transactions. Mortgages are available for individual one-to-four family homes and multi-family units but not for a portfolio of single-family homes.


Bank Owners of foreclosed properties worry that selling in bulk will affect their recoveries.  
The Fed expects that providing investors with some sort of debt financing will improve the prices investors are willing to offer for the bulk properties and is debating whether such financing should be subsidized.
  
Banks are generally not allowed to engage in real estate property ownership or management and guidelines call for disposal of properties as soon as possible.


Still, recognizing the realities of the current market, banks have been allowed to rent properties directly or through third party vendors so long as they show good -faith efforts to sell the property. 

Finally, as the Fed itself acknowledges, not all foreclosed homes are suitable for rent because of their condition, their location or because rental cash flow might not provide adequate compensation for the cost of the property.


Still, compared to a tax credit, which has only a temporary impact, an REO-to-rental program might have a more "lasting effect" and could alleviate concerns about the effect of "shadow inventory" on the housing market over the next couple of years, the analysts said.




Could be helpful.... Or not.... depending on the buffoons implementing this..... IMHO

Bay Area, Silicon Valley, San Francisco, Real Estate, House Price, and Mortgage Blog - Burbed

Hilarious Real Estate Blog that shows how agents and homes are marketed. Poorly....


http://www.burbed.com/

Bay Area, Silicon Valley, San Francisco, Real Estate, House Price, and Mortgage Blog - Burbed

Simple Guide to Short Sales

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What is a Short Sale?

Recently, the "Short Sale" has become a mainstream way of buying and selling real estate throughout the Grass Valley area and beyond. Simply put, a Short Sale is a real estate transaction that is put together by the buyer and seller and presented, for approval, to the seller's mortgage holder. Due to financial hardship, the seller is unable to make payments to that lender. The lender is entitled to approve this type of sale since they may potentially suffer a financial loss.


Additionally, for a Short Sale to take place, the seller's primary residence must have fallen in value to less than the amount the seller currently owes to the lender. This is also referred to as being "upside down" on a mortgage. The negotiated selling price of the property will reflect that lower value.

How it Works

A Short Sale transaction is unique and involved in that the seller and buyer, with assistance from their brokers, actually collaborate on a Proposal that the buyer will present to the seller's financial institution. Generally, the lender is not contacted until the proposal is complete. Loss Mitigation and Resource Recovery Departments currently receive more proposals than they can handle. Those with insufficient information or inadequate offers are ignored. Here's where the knowledge of an experienced real estate broker becomes absolutely necessary.

Fair Market Value

The property can be a "bargain", and the proposal might request that the lender consider a price that's lower than what the seller originally paid. However, in order to satisfy the seller's lender, the current asking price should fall within the range of the property's "fair market value" . Fair Market Value is determined using several factors. Negotiating a property's current value can include comparable neighborhood sales, knowledge of the property's marketing history, appraised value, and thorough knowledge of any maintenance and/or structural issues.

As-Is Property

A Short Sale is an "as-is" purchase. This relieves the seller of any additional expense that could become apparent through inspections. If renovations or repairs are necessary they should be fully documented. A capable buyer may find these issues are beneficial in price negotiations with the seller's lender. A buyer who must depend on hired renovators should carefully consider the property's condition.

Is a Short Sale Right for You?

The experience of a broker comes into play in determining whether a particular Short Sale should be pursued. A seller who owns multiple properties may not be eligible for this type of sale. Buyers interested in a quick sale, may want to concentrate effort on "approved" (price is already set by the lender) Short Sales. A singly financed property will be more easily negotiated than one with multiple lien holders or equity lines of credit. A broker can also determine whether the amount of equity a seller has in the property will become fruitless or advantageous in working with the lender. Completing a thorough title search is necessary.

Lenders Make the Final Call

Every financial institution has an independent philosophy of what constitutes a reasonable Short Sale offer. Knowledgeable brokers will assist the seller and buyer in determining down payment, price, and whether a cash offer is beneficial to their proposal.
The buyer's broker will need to be especially attuned to the time restraints of arranging financing. Escrow closing dates, as short as 20 days, are determined by the lender, and are rarely extended. Because of this, all financing must be in place, early on, in negotiations. Both parties must be ready to move when the seller's lender approves the Short Sale.
Generally, the lender forgives the seller for the difference between the mortgage owed and the selling price, and assumes the loss. The advantage to the lender comes in recouping funds from that sale and thereby making them available for other lending opportunities. Also, the lender avoids Foreclosure and the subsequent responsibility for maintenance and sale of the property. But, it is the responsibility of the seller and buyer to convince the lender that their Short Sale Proposal is a win-win situation for all parties involved.
The seller should make sure their broker is familiar with the Mortgage Forgiveness Debt Relief Act of 2007 that will most likely relieve the seller from taxes due on the difference between a property's sold price and amount owed.

How Grass Valley's Alternative Realtor - Gary Tippner - Can Help You

A Short Sale, while do-able, is a complex real estate transaction. Gary Tippner is sensitive to the needs of sellers and buyers in this unpredictable, evolving real estate format. His team takes pride in having researched and educated ourselves so that we provide the best guidance and creative opportunities available to Short Sale home sellers and buyers in Sacramento County, Nevada County and Placer County.
We offer no-obligation, no-pressure advice. To speak with a broker about Short Sales, We invite you to schedule a consultation.

Request a Short Sale Consultation

email Gary Tippner at callgarytoday @  gmail.com

Should You Hire a Lawyer or Real Estate Agent

Although the commission is usually paid by the seller, the cost may be indirectly passed on to you. And real estate lawyers charge exorbitant hourly rates.


This raises the question -- do you need a real estate agent or attorney to help you buy a home?


What the Law Says
Every state has its own set of real estate laws. For the most part, a real estate agent's help is not legally required, though agents can help you with tasks that border on legal ones, such as preparing a home purchase contract. In some states, however, only a lawyer is allowed to prepare the home purchase documents, perform a title search, and close the deal.


Reasons to Hire an Agent
The process of buying a house is complex, and most people find it's easiest to get through with an agent by their side. Paperwork will be flying around like a small tornado, and it can be helpful to have someone familiar with the process to deal with it. Other parts of the transaction will be happening quickly too -- hiring inspectors, negotiating over who pays for needed repairs, keeping up good relations with the sellers (through their agent) and more. All of this is second nature to an experienced agent. What's more, experienced real estate agents usually have contacts with good inspectors, mortgage loan brokers, and others who can make your buying process easier. And they know what's considered appropriate behavior and practice in your geographical area.


Don't Use the Seller's Agent
One of the best reasons to hire a real estate agent is that the sellers are likely to use their own agent -- and you want to keep that agent from taking over the process. In fact, the seller's agent may pressure you to let him or her represent both of you, in a "dual agency" relationship that primarily benefits the seller. (The less scrupulous sellers' agents don't make it clear that they're working for both people, but if only one agent is involved in your transaction, it's fair to assume that the agent's loyalties are with the seller.) It's better to have your own agent than settle for dual agency.


Keep Control Over the Process
You're the only one who really knows what you want in a house. Even if your agent is scouting out homes for you, there's a lot to be said for scanning the listings and attending open houses yourself. You may find out that your agent doesn't understand your needs as well as you thought.


Educate Yourself
Even if you do use an agent (or a lawyer), it's wise to learn as much as you can about the home-buying process. For example, educating yourself about the market value of comparable homes in the area will protect you against over-aggressive agents who might urge you to bid high for a particular house. And you'll prevent misunderstandings and reduce the stress of being told to "sign here" if you study the contents of the various real estate documents in advance.


Reasons to Hire an Attorney
Except in states where it's mandated, an ordinary real estate transaction doesn't require an attorney's help. By now, real estate transactions are so standardized that most people in your state will use the exact same purchase contract, just filling in a few blanks.


However, if legal issues arise that your real estate agent can't answer, you'll need an attorney's help. Although good agents know a lot about the negotiating and contracting part of the process, they can't make ANY judgments on legal questions. For example, what if your prospective new home has an illegal in-law unit with an existing tenant whom you want to evict in order to rent the place to a friend? Only a lawyer can tell you with any certainty whether your plans are feasible. Or, if you're drafting any unusual language for the purchase contract, or are concerned about some language in your mortgage, you may want to have an attorney look the documents over.


Real estate agents normally work on commission, not salary. They receive their slice only after your home search is over, the contract negotiated, and the transaction complete. (In many cases, they end up doing a lot of work for nothing, perhaps because the buyers lost interest or can't close the deal.)
The seller typically pays the commission to both the seller's agent and your agent -- usually around 6% of the sales price, to be split between the two agents. This percentage isn't cast in stone, however. For example, the seller might negotiate the percentage down if the house is particularly expensive. (And in probate sales, the court sets the commission.) Some buyers' agents have even been known to offer the buyer a percentage of their commission at closing.


Agents paid on commission have a built-in conflict of interest
Even an agent who represents only you, and not the seller, has a financial interest in seeing the deal go through. While experienced, reputable agents won't let this interfere with their advice to you, it may cause less scrupulous agents to insist that you'll never get the house unless you bid high, to recommend home inspectors who make light of potential problems, or to otherwise compromise your interests.
I always tell it like it is.


How Attorneys Are Paid
Attorneys normally charge by the hour, at rates ranging from $150 to $350. You may also find attorneys who charge flat fees for specific services, such as preparing real estate closing documents. Although attorneys tend to prefer handling the entire case with a "blank check" from you regarding hours to be spent and tasks to be accomplished, you're hiring the attorney, and you can call the shots. If you prefer to hire an attorney for only a limited number of hours, or for specific tasks, such as answering a legal question or reviewing a document, you can negotiate this (and you should record your agreement in writing).


Please contact Gary Tippner for help at callgarytoday @ gmail.com

Housing's Huge Supply and Demand Imbalance

Housing's Huge Supply and Demand Imbalance

"Pent-up demand."

That is the rallying cry of the housing bulls, as they forecast the great recovery of 2012. So many potential buyers are doubled up with family, stuck in undesirable rentals or just plain afraid to put their current home on the market, but that's about to change, say these optimistic prognosticators.  

Pent-up demand exists, no question, but it has nowhere to go right now for the vast majority of organic home buyers. When I say organic, I'm excluding investors from the mix, because that demand is high and building up cash like mad. I mean regular lower to upper middle-class Americans still struggling in today's rough economy.

"There are relatively few borrowers that can qualify for a mortgage given today's tight lending standards,"  "Aside from FHA and VA mortgage, you need 20% down, and that's very, very difficult for most borrowers."

There is more distress in the housing market than some of the leading mortgage data providers portray. There might be eight to ten million more foreclosures over the next six years, because of borrowers currently in mortgage modifications.  


That includes borrowers who have never missed a payment before, but are deeply underwater and are apt to default because borrowers just like them are defaulting on a regular basis.


Plus household formation has been running very low of late, just 5-800,000 a year. A normal level is 1.1 to 1.2 million units a year.

The only way to re-balance supply and demand is to get investors into the market in force to buy up these properties and meet the huge rental demand that will continue for several years. Hedge funds are busy working on deals, but I think government needs to help guide if hedge funds are involved. Fannie Mae and Freddie Mac are currently sitting on a huge supply of foreclosed properties and facing even more down the pike.  

Will Low Mortgage Rates Stop Foreclosure Wave?

I don't think low mortgage Rates will stop the foreclosure wave. 

Mortgage rates remained amazingly low for 2011, but that won't stop a coming wave of foreclosures in 2012.

Mortgage rates finished near all-time historic lows in 2011. Freddie Mac on Thursday released the results of its Primary Mortgage Market Survey. The 30-year fixed rate mortgage rate ended 2011 with an average 3.95% for the week ending Dec.29, 2011, up from the previous week's rate of 3.91 % but significantly lower than the 4.86% averaged in the year-ago period.

The 15-year fixed-rate mortgage averaged 3.24%, up from 3.21%, but lower than the 4.20% averaged a year earlier.

 Looking ahead, Freddie Mac economists expects mortgage rates to remain very low at least through mid-2012, as the Federal Reserve has indicated that it will keep the federal funds rate near zero till as late as mid-2013.

 They do expect housing prices to bottom in the later part of 2012. Sales volume is still low, even given the strong current affordability of housing. And ample distressed sales and sluggish home-buying demand will continue to keep prices soft in many markets: Expect U.S. house-price indexes to move lower before bottoming out in 2012, with modest appreciation forestalled until 2013."

With rents climbing and housing affordability remaining at its best level in years, some economists are predicting that buyers who have stayed on the sidelines will return to the market in 2012. Hedge funds are beginning to bet on a recovery in the housing market, the Wall Street Journal reported on Thursday.

Meanwhile, pending home sales, a forward looking indicator of existing home-sales activity showed signs of improvement, increasing 7.3% on a monthly basis to 100.1 in November, its highest level in 19 months. But there also is a higher than normal amount of cancellations before escrow finalizes.

Still, the biggest overhang for the housing market remains the significant foreclosure inventory that is yet to be cleared from the market as well as "shadow" inventory- properties that will ultimately wind up in foreclosure.
One in every 579 housing units received a foreclosure filing in November 2011, according to RealtyTrac. Overall foreclosure activity dropped 3% in November from the previous month, but a new wave of foreclosures could be coming in 2012.

 Bank of America, JPMorgan Chase, and Wells Fargo together account for more than 60% of the first mortgages in the country.
The three are among the big mortgage servicers that have been in year-long negotiations with federal regulators and the state attorneys general to reach a settlement over alleged improper foreclosure practices including robo-signing.



The robo-signing controversy and the ongoing negotiations have stalled the foreclosure process for banks. However, analysts maintain that banks need to clear their foreclosure inventory soon for housing values to fully correct and then make a stable recovery.

Bank of America has the most troubled mortgage portfolio. Real estate owned and repossessed assets amounted to over $2.6 billion in the first 9 months of 2011.

Gary's Predictions for Real Estate in 2012

These are my opinions....  At least I don't sugar coat like others.  I am always upfront with people.
These are based on national data. Your location might do worse or better. I hope better. Nevada County, Placer County, CA and Olympia, WA are desirable areas.


Home prices will fall another 5% through Q2 before bottoming toward year's end.
Prices are already on a downward trajectory, as foreclosure inventories rise. Banks/mortgage servicers are finally working through a huge backlog of delinquent loans, and as those distressed properties come to market, they will consequently lower home prices. With lower conforming-loan levels, as well as a tight lending environment and the possibility of rising mortgage rates, prices will bottom out in the fall.

Foreclosure inventories will rise while new delinquencies remain elevated.
 Inventories will continue to rise, as around three million distressed properties progress to final bank repossession. Banks will likely ramp up the process following the usual holiday slowdown, especially given positive rulings on the MERS front (the auto recorder for so so so many loans for years), and judicial states lifting their moratoria. Foreclosures will come quickly through the winter and spring months then abate toward year's end. The downward pressure on overall home prices will put more borrowers underwater and in turn keep delinquencies elevated, although not much higher than now. 


Rents will rise, as will rental occupancy rates.
Until the employment market really starts cooking, young employees and potential first-time home buyers will remain on the sidelines, waiting for home prices to bottom. That means continued high demand for rental apartments, especially in higher-priced markets. The big question is: When do rents get too high vs. the cost of home ownership and push people back to buying?


Housing starts to be a tale of two markets.
Single-family home building will struggle to stay above a 600,000-unit annualized pace, as builders continue to compete with foreclosed properties. Slight improvement in demand will keep them going, but not by much. Meanwhile, the minimal supply of multi-family apartment buildings will keep investors pouring money into new construction. Builders will respond with increased multi-family starts, not just in trophy markets, but also mid-sized ones where inventories are lower.


Inventories of homes for sale hit a new high this spring.
 They did bounce way up, from a 7.5-month supply in January to a 9.5-month supply in July, but didn't hit a new record. We had no way of knowing the robo-signing foreclosure paperwork scandal would bring foreclosure numbers down so far for so long.




The office and apartment sectors will gain again.
 In office, occupied stock rose in every quarter through Q3, the vacancy rate declined and effective rent was all in positive gains. The apartment sector is on fire, with rents rising every quarter and vacancies falling to a 2006 low.


Spring will tell.
 The season was muted -- at best. Sales didn't surge, nor did they plummet. The robo-signing foreclosure issues really skewed the numbers, as well as damaged consumer sentiment. Home prices gained seasonally, slightly, but fell back again. The tight mortgage market, along with appraisal accuracy issues, plagued real growth.


Just the facts. What agent is going to tell you the real truth? I am one of the few. Other agents may find me negative but someone has to be looking at all the data and tell the truth to others and stop sugarcoating.
But what some find to be bad news may simply find relief in having less uncertainty. While others can gain from information because they will know what to do. And some will really gain because they see opportunity.
Wanna talk? Just email me right now at callgarytoday @  gmail.com

How to get your home ready to sell in 2012

Study the local market. The most successful home sales are the listings that are priced right from day one. Ask any agent: even in the toughest markets, there are listings that sell quickly, mostly because the one-two punch of the property itself and how its price looks to buyers like if it's a very strong value.

In order to position yourself and your property at the point of pricing nirvana, you’ll need to do some leg work. Stat. You don’t need to pick an exact price this moment, unless you’re planning to list your home super soon, but you can get started on what I like to think of as the ‘thinking seller’s’ three-pronged approach to pricing now, by:

visiting open houses,
studying nearby listings, and
talking with an agent.

Before the year is up, try to visit a handful of open houses in your neighborhood. This will help you get a sense of the types of homes that are on the market, what condition they’re in, and how they are priced. Keep in mind that no home is going to be exactly like yours, but if it’s similar in size, location and features, then buyers that see that property will probably be the same buyers that come to see yours - and they will be comparing list prices.

Another great prep tool in gearing up to sell your home in 2012 is to study similar homes for sale on Trulia or Zillow! Pay particular attention to what features they have, how they are described and priced, any incentives the sellers are offering (e.g., closing cost credits, etc.) and how long they’ve been on the market. (Hint: you might not want to price your home right in line with one that’s been on the market over a year. Obviously, that home is overpriced, and that is NOT a result you want to replicate!)

Finally, one of the most efficient and nuanced ways to get to know your local market is to begin speaking with an agent who sell homes in your area. Ask these pros for their opinion on what you should list your home for, what recent sales they think are the most comparable (and why), and how long they would expect your sale to take given their experience and current conditions.

Get a head start on your ‘home' work. How much prep work your home needs really depends on its current condition. A good starting point for many sellers is to order an inspection. Most buyers will get their own inspection before closing a deal if some time has passed, but getting ahead of them with your own will help you avoid any unwanted surprises later on in the transaction. An inspection will give you a reality check on your home’s condition, enabling you to decide upfront whether it’s worth it to fix something now or simply reduce the price in consideration thereof.


DO THIS:
(a) obtain any advance inspections your real estate agent recommends,
(b) have any reasonable repairs completed,
(c) pre-pack and declutter your place, and
(d) prettify your home’s curb appeal - painting the shutters and sprucing the landscaping goes a long way toward attracting buyers.




Please visit http://www.callgarytoday.com and contact Gary Tippner for help.

Homes Sales Data

Housing inventories fall to new four-year low in October
The number of homes listed for sale fell for the fifth straight month in October, hitting the lowest level in more than four years.


New-home sales edge higher nationwide
The Census Bureau reported an annual sales rate of 307,000 new homes last month, up 1.3 percent from a downwardly revised rate of 303,000 homes in September.

Second homes for retirement have pros and cons that need to be considered

If you have plans to buy a home at the beach, in the mountains or in the desert for your retirement years, you might be tempted to take the plunge and buy your future home now while interest rates and home prices are low.

Financial experts say buying your retirement home five to 10 years before you stop working could be beneficial. However, people in this age group should be aware of the risks of tying up money and perhaps losing flexibility with a second home purchase.

"While there's no denying that we have historically low interest rates and low home values right now, anyone considering buying a second home before they retire needs to run the numbers," says Kimberly Foss, president of Empyrion Wealth Management in Roseville, Calif. "People get stars in their eyes sometimes at the prospect of retirement, but the reality is that they may not be."

Foss says she recommends clients max out their 401(k)s and make sure they have adequately insured their future before thinking about buying retirement homes.

"I recommend that people have 12 months' (worth) of expenses in the bank as an emergency fund," Foss says. "If they choose to buy another property, they will need extra money to cover those expenses, too."

For 50- and 60-somethings with plenty of discretionary income, buying a home with cash is an option. Others need financing.

There are three basic options for financing a home, says Patrick Cunningham, vice president
of Home Savings and Trust Mortgage in Fairfax, Va. 


The home can be financed as an owner-occupied home if the buyer lives in it as a primary residence, as a second home or as an investment.

"Second-home financing means that you will need to qualify to pay the mortgage on both your current home and your second home," Cunningham says. "If you need some additional income to qualify for the loan, you can rent the property, and a lender will use some of your rental income for a loan approval."

Cunningham suggests that financing a property as a second home rather than as an investment property is the better option because interest rates, qualification guidelines and down payment requirements are generally more lenient on second homes than on investments. He says an investment loan always requires a down payment of at least 20 percent or 25 percent.

People getting ready to retire might want to consider the benefit of buying homes before they stop working because a mortgage approval could be more difficult to obtain without an income.

"Conventional loans are written off your income, and you have to prove you have the means to repay the loan," Cunningham says.

Foss says one of the primary benefits of buying a home before retiring can be the generation of rental income.

"Income from a rental property can act as a hedge against the low interest rate environment we are in and against future inflation because you can raise the rent to offset inflation when it hits," Foss says.

Foss says if you can handle the expense and hassle of a rental property, this could be a good way to use the property before it becomes your primary retirement residence.

Charles Duck, president of Charles Duck Real Estate in Phoenix, says the pre-retirement buyers he works with are looking for bargain-priced luxury homes because they offer more certainty of future appreciation.

"Some people are deciding to buy now and leave the property empty for a while or to use a place as an occasional vacation home," Duck says. "Others decide to rent the property until they are ready to use it."

When choosing a home a few years before retirement, Duck says the first consideration should be the location.

"Many retirees want an urban-suburban location where they can walk to amenities and restaurants," Duck says.

Duck says this cohort of buyers should consider looking for low-maintenance houses with all the living spaces on one floor, so the future retirees can avoid climbing stairs.

Foss says if you are 10 years or more away from retirement, you may want to opt to rent a vacation home for a month at a time to avoid getting stuck with a permanent decision about your retirement destination.

"People change a lot between age 50 and 90, Foss says, "so I like the idea of keeping your options open and allowing for flexibility."

Mortgage rates inched up this week as the stock market rallied, but they remain near record lows. 

Cascade Shores Real Estate, Nevada City - Cascade Shores Homes for Sale, MLS Listings

Cascade Shores Real Estate, Nevada City - Cascade Shores Homes for Sale, MLS Listings

House prices are finally nearing a bottom? What other data shows

House prices are finally nearing a bottom

After falling nearly 35 percent from their 2007 peak, nationwide house prices are finally approaching “normal” levels on two key valuation measures: The “price-to-rent ratio,” which measures house prices relative to what the houses might rent for, and the “price-to-income-ratio,” which measures house prices relative to average incomes.

Help with home down payments

Help with home down payments



With most lenders requiring borrowers to put down at least 20 percent as a down payment – unless using an FHA or VA loan, or purchasing mortgage insurance – the best holiday gift some people might receive would be help with a down payment on a house.

Making sense of the story
According to a survey by Trulia, the biggest barrier to buying a home these days is saving for the down payment. The survey, conducted over the summer, found that 51 percent of renters said coming up with money for the down payment was preventing them from buying, while 35 percent identified qualifying for a mortgage as the stumbling block.

Under federal tax law, each individual is permitted to give money or valuables worth up to $13,000 to a single recipient in a calendar year. A married couple could jointly bestow up to $26,000 a year per recipient.

According to one financial planner, there also is the option of lending a relative or close friend the money for the down payment, or the closing costs, then forgiving the loan in a future year. The recipient would have to pay interest on the loan until it was forgiven, at which point it would become a gift.

Another way to help with the down payment is to pay other expenses, such as tuition, thereby freeing up money to make a home purchase. Gifts for educational or medical expenses are not subject to taxes, as long as they are paid directly to the educational or medical institution.

However, prior to giving the money, gift-givers should consider their own financial picture, and they should make sure the recipient is responsible and not behind on other payments that could be subject to debt collection.

Market Will Take Five More Years to Adjust to Normal

Fannie Mae: Market Will Take Five More Years to Adjust

We are five years through a 10-year adjustment process, said Fannie Mae chief economist Doug Duncan at the Five Star MPact Mortgage Conference and Expo Tuesday morning.








so, does this mean we are at the bottom?

Another Real Estate Brokerage Gets Out of it

Prudential sells its real estate franchise business

Brookfield Residential Property Services -- the Canadian-based franchisor that provides services in the U.S. under the Real Living brand -- has acquired Prudential Real Estate and Relocation Services for $110 million, the companies said.

10 Low-Cost Tips to Improve Your Home's Appeal

10 Low-Cost Tips to Improve Your Home's Appeal

By P a i g e T e p p i n g

RISMEDIA, August 10, 2010--When selling your home, the goal is to sell it quickly for the highest price while investing as little as possible in renovations. With a limited budget and a little effort, you can greatly increase your home's appeal by focusing on what prospective buyers can see on their first visit. The experts at BuyOwner.com offer the following recommendations for preparing a house for sale and staging it for showings.

Tip #1: Refresh the exterior
First impressions count when it comes to selling a home. Most buyers won’t even leave their car if they don’t find the exterior appealing. The best ways to improve your home’s exterior include:
-Repairing and/or replacing trims, shutters, gutters, shingles, mailboxes, window screens, walkways and the driveway.
-Painting siding, trim and shutters and lamp and mailbox posts.
-Pressure washing vinyl siding, roofs, walkways and the driveway.
-Washing windows.

Tip #2: Spruce up the lawn and landscape
Home buyers associate the condition of your lawn and landscaping with the condition of your home’s interior. By improving the outside, you affect buyers’ impression of the entire property. The best ways to enhance the yard include:
-Mowing and edging the lawn.
-Seeding, fertilizing and weeding the lawn.
-Keeping up with regular lawn maintenance by frequent watering.
-Trimming and/or removing overgrown trees, shrubs and hedges.
-Weeding and mulching plant beds.
-Planting colorful seasonal flowers in existing plant beds.
-Removing trash, especially along fences and underneath hedges.
-Sweeping and weeding the street curb along your property.

Tip #3: Create an inviting entrance
The front door to your home should invite buyers to enter. The best ways to improve your entry include:
-Painting the front door in a glossy, cheerful color that complements the exterior.
-Cleaning, polishing and/or replacing the door knocker, locks and handles.
-Repairing and/or replacing the screen door, the doorbell, porch lights and house numbers.
-Placing a new welcome mat and a group of seasonal potted plants and flowers by the entry.

Tip #4: Reduce clutter and furniture
A buyer cannot envision living in your home without seeing it. A home filled with clutter or even too much furniture distracts buyers from seeing how they can utilize the space your home offers. If you have limited storage space, you may want to consider renting a temporary storage unit to place items you wish to keep. The best ways to declutter your home include:
-Holding a garage sale to prepare for your move, getting rid of unnecessary items.
-Removing clutter such as books, magazines, toys, tools, supplies and unused items from counter tops, open shelves, storage closets, the garage and basements.
-Storing out-of-season clothing and shoes out of sight to make bedroom closets seem roomier.
-Removing any visibly damaged furniture.
-Organizing bookshelves, closets, cabinets and pantries. Buyers will inspect everything.
-Putting away your personal photographs, unless they showcase the home. Let buyers see themselves in your home.
-De-personalize rooms as much as you can.

Tip #5: Clean, clean, clean
The cleanliness of your home also influences a buyer's perception of its condition. The appearance of the kitchen and bathrooms will play a considerable role in a buyer's decision process, so pay particular attention to these areas. The best ways to improve these areas include:
-Cleaning windows, fixtures, hardware, ceiling fans, vent covers and appliances.
-Cleaning carpets, area rugs and draperies.
-Cleaning inside the refrigerator, the stove and all cabinets.
-Removing stains from carpets, floors, counters, sinks, baths, tile, walls and grout.
-Eliminating house odors, especially if you have pets.
-Considering air fresheners or potpourri.

Tip #6: Make minor repairs
The small stuff does count, especially with first-time home buyers. Without dismissing the importance of repairing major items such as a leaky roof or plumbing, you do not need to spend money on replacing these items. Instead, focus on the minor repairs that will make your home visually appealing. The best ways to improve your home include:
-Repairing ceilings and wall cracks.
-Repairing faucets, banisters, handrails, cabinets, drawers, doors, floors and tile.
-Caulking and grouting tubs, showers, sinks and tile.
-Adding fresh paint to ceilings, walls, trim, doors and cabinets.
-Tightening door handles, drawer pulls, light switches and electrical plates.
-Lubricating door hinges and locks.

Tip #7: Showcase the kitchen
The heart of any home is the kitchen. If you are going to spend any money on renovations, this is the one area where you will see the greatest return. Even with a modest budget, focusing on a few key areas can make a great difference in getting the asking price for your property. The best ways to showcase the kitchen include:
-Replacing cabinet doors and hardware.
-Installing under-cabinet lighting.
-Replacing light fixtures.
-Replacing outdated shelving with pantry and cabinet organizers to maximize space.
-Baking cookies or cupcakes for a showing, to create a homey smell.

Tip #8: Stage furniture
Furniture placement can enhance the space of your home while giving buyers an idea of how to best utilize the space with their own belongings. Take some time to rethink how different areas in your house could be used. Some ideas to think about include:
-Moving couches and chairs away from walls in your sitting and family rooms to create cozy conversational groups.
-Creating a reading corner in the master bedroom.
-Clearing an empty room to set up a reading space.
-Turning an awkward space into a home office.
-Setting the dining room table with your best china.
-Set wine glasses in front of the fireplace or next to a Jacuzzi tub.

Tip #9: Light up the house
Create a sense of openness and cheerfulness in your home through its lighting. To improve the lighting try:
-Opening shades and drapes to let the sunshine warm and brighten rooms.
-Installing brighter light bulbs in rooms that tend to be dark.
-Adding additional lamps for ambient lighting.
-Turning on all the lights for a showing.

Tip #10: Add fresh touches
You can easily add color and style to your home by adding fresh touches throughout. Some ideas to consider include:
-Placing fresh floral arrangements in the entry and master bedroom.
-Placing bowls of bright-colored fruit in the family room and the kitchen.
-Filling an empty corner with a potted leafy plant.
-Setting new hand soap in the bathrooms.
-Displaying fresh towels near sinks.