If you have been wondering what the real value of your home in Sonoma County is, then I think we may have found a solution. Joe and I have just joined a new program that creates a full MLS Market Snapshot Report, based on your homes location. Not only will it map the homes in your area, it shows homes that are listed & sold within a 5-mile radius, as well as Community and school info. And this is a totally free service to you! If you want to check it out, visit http://www.santarosahomevalue.com/.
Wednesday, October 28, 2009
Looking for the Value of your Sonoma County Home?
If you have been wondering what the real value of your home in Sonoma County is, then I think we may have found a solution. Joe and I have just joined a new program that creates a full MLS Market Snapshot Report, based on your homes location. Not only will it map the homes in your area, it shows homes that are listed & sold within a 5-mile radius, as well as Community and school info. And this is a totally free service to you! If you want to check it out, visit http://www.santarosahomevalue.com/.
Thursday, October 22, 2009
September 2009 California Homes Sales Statistics
An estimated 40,216 new and resale houses and condos were sold statewide last month. That was up 1.0 percent from 39,811 in August, and down 0.3 percent from 40,317 for September 2008. California sales for the month of September have varied from a low of 24,460 in 2007 to a peak of 69,304 in 2003, the average is 44,816.
The median price paid for a home last month was $251,000, up 0.8 percent from $249,000 in August, and down 11.3 percent from $283,000 for September a year ago.
Of the existing homes sold last month, 41.9 percent were properties that had been foreclosed on during the past year. That is the lowest in more than a year. In September 2008 it was 50.9 percent, it reached 58.8 percent last February.
The typical mortgage payment that home buyers committed themselves to paying last month was $1,085. That was down from $1,093 in August, and down from $1,363 for September a year ago. Adjusted for inflation, last month's mortgage payment was 49.1 percent below the spring 1989 peak of the prior real estate cycle. It was 58.8 percent below the current cycle's peak in June 2006.
Indicators of market distress continue to move in different directions. Foreclosure activity remains high by historical standards. Financing with multiple mortgages is low, down payment sizes are stable, and non-owner occupied buying is above-average in some markets, MDA DataQuick reported.
The median price paid for a home last month was $251,000, up 0.8 percent from $249,000 in August, and down 11.3 percent from $283,000 for September a year ago.
Of the existing homes sold last month, 41.9 percent were properties that had been foreclosed on during the past year. That is the lowest in more than a year. In September 2008 it was 50.9 percent, it reached 58.8 percent last February.
The typical mortgage payment that home buyers committed themselves to paying last month was $1,085. That was down from $1,093 in August, and down from $1,363 for September a year ago. Adjusted for inflation, last month's mortgage payment was 49.1 percent below the spring 1989 peak of the prior real estate cycle. It was 58.8 percent below the current cycle's peak in June 2006.
Indicators of market distress continue to move in different directions. Foreclosure activity remains high by historical standards. Financing with multiple mortgages is low, down payment sizes are stable, and non-owner occupied buying is above-average in some markets, MDA DataQuick reported.
Sunday, October 18, 2009
Short Sale Information for California Home Buyers
A Short Sale occurs when a seller cannot sell their home for as much as they owe the bank.
Short Sales are different from bank owned homes, foreclosed homes and auction homes.
In a short sale the seller is usually still living in the home. Showings of the home and choosing which Realtor to list the home are still in the hands of the seller. However, the big difference is that when an offer is received all parties start to work with the bank to see if the offer is acceptable to them. What the seller wants for the property does not matter. Yes, they could refuse to sell the home, but they are usually not in a position to do that and have no choice but to try.
Benefits to the Buyer of a short sale.
Usually the main benefit is the price. You are getting a home at a substantial discount compared to similar homes in the area.
Unlike an auction or a foreclosure, the seller in a short sale has voluntarily listed their home and does want it to sell, so they are usually cooperative. You will be able to inspect the home and have time to decide if the home is right for you and in acceptable condition. Typically you will have a full 17 day (standard in CA) period to inspect the property after your offer is made.
In a short sale, Banks are usually willing to negotiate. If you are a strong qualified buyer or a cash buyer, you can usually get the banks to work with you. The banks negotiation may come in different form, sometimes the sale price, other times closings costs or even repair costs, if there is a defect with the property.
Negatives to the Buyer of a short sale
The time period for a bank to respond to a Short Sale is totally in the hands of the bank. In the past it would often take 60 days before you even hear back from the bank, but it could take much longer before any final decisions are made. However, January 1, 2010 in California. Governor Schwarzenegger has recently signed SB 306, which mandates lenders and loan servicing companies to respond in writing to short sale payoff requests within 21 days of receiving it. This law will be effective on January 1, 2010 in California.
Another problem is that Banks may continue their foreclosure action on a short sale property even though the home is being negotiated on. Once they reach the point of no return you could have the house pulled out from under you and it could go to full foreclosure.
Make sure you know if and when the seller received a Notice of Default. They only have 120 days (in California) from that point to sell the home. While it is possible that they have negotiated to delay that date, you as the buyer MUST know if the seller has received their Notice of Default.
Short Sales are different from bank owned homes, foreclosed homes and auction homes.
In a short sale the seller is usually still living in the home. Showings of the home and choosing which Realtor to list the home are still in the hands of the seller. However, the big difference is that when an offer is received all parties start to work with the bank to see if the offer is acceptable to them. What the seller wants for the property does not matter. Yes, they could refuse to sell the home, but they are usually not in a position to do that and have no choice but to try.
Benefits to the Buyer of a short sale.
Usually the main benefit is the price. You are getting a home at a substantial discount compared to similar homes in the area.
Unlike an auction or a foreclosure, the seller in a short sale has voluntarily listed their home and does want it to sell, so they are usually cooperative. You will be able to inspect the home and have time to decide if the home is right for you and in acceptable condition. Typically you will have a full 17 day (standard in CA) period to inspect the property after your offer is made.
In a short sale, Banks are usually willing to negotiate. If you are a strong qualified buyer or a cash buyer, you can usually get the banks to work with you. The banks negotiation may come in different form, sometimes the sale price, other times closings costs or even repair costs, if there is a defect with the property.
Negatives to the Buyer of a short sale
The time period for a bank to respond to a Short Sale is totally in the hands of the bank. In the past it would often take 60 days before you even hear back from the bank, but it could take much longer before any final decisions are made. However, January 1, 2010 in California. Governor Schwarzenegger has recently signed SB 306, which mandates lenders and loan servicing companies to respond in writing to short sale payoff requests within 21 days of receiving it. This law will be effective on January 1, 2010 in California.
Another problem is that Banks may continue their foreclosure action on a short sale property even though the home is being negotiated on. Once they reach the point of no return you could have the house pulled out from under you and it could go to full foreclosure.
Make sure you know if and when the seller received a Notice of Default. They only have 120 days (in California) from that point to sell the home. While it is possible that they have negotiated to delay that date, you as the buyer MUST know if the seller has received their Notice of Default.
Tuesday, October 13, 2009
Tips to Plan and Prepare You Home for Selling
Million of existing homes are sold each year, and while each transaction is different every owner wants the same thing -- the best possible deal with the least amount of hassle and aggravation.
Unfortunately, home selling has become a more complex business than it used to be. New seller disclosure statements, longer and more mysterious form agreements, and a range of environmental concerns have all emerged in the past decade.
More importantly, the home-selling process has changed. Buyer brokerage -- where REALTORS® represent homebuyers -- is now common nationwide, and good buyer-brokers want the best for their clients.
The result is that while hundreds of thousands of existing homes may be sold each week, the process is not as easy for sellers as it was five or 10 years ago. Surviving in today's real estate world requires experience and training in such fields as real estate marketing, financing, negotiation and closing -- the very expertise available from local REALTORS®.
Are you ready?
The home-selling process typically starts several months before a property is made available for sale. It's necessary to look at a home through the eyes of a prospective buyer and determine what needs to be cleaned, painted, repaired and tossed out.
Ask yourself: If you were buying this home what would you want to see? The goal is to show a home which looks good, maximizes space and attracts as many buyers -- and as much demand -- as possible.
While part of the "getting ready" phase relates to repairs, painting and other home improvements, this is also a good time to ask why you really want to sell.
Selling a home is an important matter and there should be a good reason to sell -- perhaps a job change to a new community or the need for more space. Your reason for selling can impact the negotiating process so it's important to discuss your needs and wants in private with the REALTOR® who lists your home.
When should you sell?
The marketplace tends to be more active in the summer because parents want to enroll children in classes at the beginning of the school year (usually August). The summer is also typically when most homes are likely to be available.
Generally speaking, markets tend to have some balance between buyers and sellers year-round. In a given community, for example, there may be fewer buyers in late December, but there are also likely to be fewer homes available for purchase. So, home prices tend to rise or fall because of general demand patterns rather than the time of the year.
Owners are encouraged to sell when the property is ready for sale, there is a need or desire to sell, and the services of a local REALTOR® have been retained.
How do you improve your home's value?
The general rule in real estate is that buyers seek the least expensive home in the best neighborhood they can afford. In terms of improvements, this means you want a home that fits in the neighborhood but is not over-improved. For example, if most homes in your neighborhood have three bedrooms, two baths and 2,500 sq. ft. of finished space, a property with five bedrooms, more baths and far more space would likely be priced much higher and likely be more difficult to sell.
Improvements should be made so that the property shows well, is consistent with the neighborhood and does not involve capital investments, the cost of which cannot be recovered from the sale. Furthermore, improvements should reflect community preferences.
Cosmetic improvements - paint, wallpaper and landscaping - help a home "show" better and often are good investments. Mechanical repairs - to ensure that all systems and appliances are in good working condition - are required to get a top price.
Ideally, you want to be sure that your property is competitive with other homes available in the community. REALTORS®, who see numerous homes, can provide suggestions that are consistent with your marketplace.
For more information on home selling tips, contact Erica Azimov at ericaa@kw.com or Joe Lilley at joelilley@kw.com.
Unfortunately, home selling has become a more complex business than it used to be. New seller disclosure statements, longer and more mysterious form agreements, and a range of environmental concerns have all emerged in the past decade.
More importantly, the home-selling process has changed. Buyer brokerage -- where REALTORS® represent homebuyers -- is now common nationwide, and good buyer-brokers want the best for their clients.
The result is that while hundreds of thousands of existing homes may be sold each week, the process is not as easy for sellers as it was five or 10 years ago. Surviving in today's real estate world requires experience and training in such fields as real estate marketing, financing, negotiation and closing -- the very expertise available from local REALTORS®.
Are you ready?
The home-selling process typically starts several months before a property is made available for sale. It's necessary to look at a home through the eyes of a prospective buyer and determine what needs to be cleaned, painted, repaired and tossed out.
Ask yourself: If you were buying this home what would you want to see? The goal is to show a home which looks good, maximizes space and attracts as many buyers -- and as much demand -- as possible.
While part of the "getting ready" phase relates to repairs, painting and other home improvements, this is also a good time to ask why you really want to sell.
Selling a home is an important matter and there should be a good reason to sell -- perhaps a job change to a new community or the need for more space. Your reason for selling can impact the negotiating process so it's important to discuss your needs and wants in private with the REALTOR® who lists your home.
When should you sell?
The marketplace tends to be more active in the summer because parents want to enroll children in classes at the beginning of the school year (usually August). The summer is also typically when most homes are likely to be available.
Generally speaking, markets tend to have some balance between buyers and sellers year-round. In a given community, for example, there may be fewer buyers in late December, but there are also likely to be fewer homes available for purchase. So, home prices tend to rise or fall because of general demand patterns rather than the time of the year.
Owners are encouraged to sell when the property is ready for sale, there is a need or desire to sell, and the services of a local REALTOR® have been retained.
How do you improve your home's value?
The general rule in real estate is that buyers seek the least expensive home in the best neighborhood they can afford. In terms of improvements, this means you want a home that fits in the neighborhood but is not over-improved. For example, if most homes in your neighborhood have three bedrooms, two baths and 2,500 sq. ft. of finished space, a property with five bedrooms, more baths and far more space would likely be priced much higher and likely be more difficult to sell.
Improvements should be made so that the property shows well, is consistent with the neighborhood and does not involve capital investments, the cost of which cannot be recovered from the sale. Furthermore, improvements should reflect community preferences.
Cosmetic improvements - paint, wallpaper and landscaping - help a home "show" better and often are good investments. Mechanical repairs - to ensure that all systems and appliances are in good working condition - are required to get a top price.
Ideally, you want to be sure that your property is competitive with other homes available in the community. REALTORS®, who see numerous homes, can provide suggestions that are consistent with your marketplace.
For more information on home selling tips, contact Erica Azimov at ericaa@kw.com or Joe Lilley at joelilley@kw.com.
Sunday, October 11, 2009
Step 8: Protect Your Investment
Whew. That was exhausting. But you're done! Well, sort of.You've closed and moved in, but now you'll need to protect your investment for years to come. And you can do so by performing routine maintenance on your home’s systems, depending on their age and condition. A good rule of thumb is to watch for signs of leaks, damage, and wear. If you fix small problems early, you will save yourself from having to spend big money later.
And remember that kind, real estate professional who assisted you throughout the process? Well, after closing your agent can still help you with such things as providing information for your tax returns, finding contractors and repair services, and even tracking your home’s current market value.
And remember that kind, real estate professional who assisted you throughout the process? Well, after closing your agent can still help you with such things as providing information for your tax returns, finding contractors and repair services, and even tracking your home’s current market value.
Wednesday, October 7, 2009
California Short Sale Law SB 306 Passed!
Just recently, Governor Arnold Schwarzenegger passed SB 306, the California Short Sale Law. And although it won't take affect until January 2010, it is good news for anyone who has been thinking about buying or selling a short sale property.
Here is what the new law will do:
- Once a short sale offer is submitted the lender would have 21 days to accept, reject or deny the offer. Understand, this means that the short sale package has to be submitted correctly…and completely.
- A Short Sale offer is submitted WITH a HUD the lenders/ servicers have 4 days to reply to the offer.
- The lender will have to submit all responses IN WRITING.
Bottom line, Short Sales (in California) are about to get much easier and close faster. So, if you or someone you know is facing foreclosure, please get off the fence. You will want to discuss your options with a qualified person. If you are able to refinance or modify your loan, great. However, most people -especially if they've fallen behind on their payments and are upside down- won't qualify.
To find out more about listing or buying a Short Sale in Sonoma County, please contact Joe Lilley at 707.206.4777 or Erica Azimov at 707.206.4778. Or visit our website at www.santarosahomesearch.com.
Tuesday, September 29, 2009
The Real Estate Industry Backs Extension of $8,000 Tax Credit
According to a survey from CAR (California Association of Realtors), nearly 40 percent of recent first-time homebuyers said they would not have purchased a home if the federal tax credit for first-time homebuyers was not offered, and 70 percent said it was either “very important” or “most important.”
The $8,000 credit is expiring Dec.1.
“It is clear that the federal tax credit for first-time homebuyers is working, as evidenced by the spike in home sales in recent months,” said CAR President James Liptak. “This tax credit is arguably the most successful strategy employed by the government’s efforts to stimulate the housing market.
“Because the tax credit has helped so many first-time buyers become homeowners, it is critical that Congress extends the credit beyond the Dec. 1 deadline and includes all buyers, not just first-timers,” he said.
“While affordability has improved in California over the past two years, it is still lower than affordability nationally. As a result, the tax credit is an even bigger factor in California compared with elsewhere in the country,” added Mr. Liptak. “Going forward, the credit will be even more important to the housing recovery.”
While the deadline is not until Dec. 1, buyers need to put in their offer by the end of September in order to qualify, according to the National Association of Realtors.
Sen. Johnny Isakson, R-Georgia, and Senate Majority Leader Harry Reid, D-Nevada, introduced Senate Bill 1678 extending credit to June 1, 2010.
Source: Jenna V. Loceff, Business Journal Staff Reporter
The $8,000 credit is expiring Dec.1.
“It is clear that the federal tax credit for first-time homebuyers is working, as evidenced by the spike in home sales in recent months,” said CAR President James Liptak. “This tax credit is arguably the most successful strategy employed by the government’s efforts to stimulate the housing market.
“Because the tax credit has helped so many first-time buyers become homeowners, it is critical that Congress extends the credit beyond the Dec. 1 deadline and includes all buyers, not just first-timers,” he said.
“While affordability has improved in California over the past two years, it is still lower than affordability nationally. As a result, the tax credit is an even bigger factor in California compared with elsewhere in the country,” added Mr. Liptak. “Going forward, the credit will be even more important to the housing recovery.”
While the deadline is not until Dec. 1, buyers need to put in their offer by the end of September in order to qualify, according to the National Association of Realtors.
Sen. Johnny Isakson, R-Georgia, and Senate Majority Leader Harry Reid, D-Nevada, introduced Senate Bill 1678 extending credit to June 1, 2010.
Source: Jenna V. Loceff, Business Journal Staff Reporter
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