Archive for April, 2009

President Obama:7-9 Million Homeowners should take advantage of Low rates

President Obama speaks to the nation on today’s low Mortgage Rates. Check it out here: http://www.msnbc.msn.com/id/30135793/

The rates on mortgages have been all over the board but they have remained low. If you have not talked to your mortgage professional about your loan you may be missing the boat. Don’t wait for the perfect moment because it does not exist. The math will tell the truth.

Consult your Mortgage Professional Now!

As Always thank you for Reading,

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10 Benefits a Great Realtor will add to your Purchase Experience!

Congratulations! You have decided to take the steps to become a homeowner in today’s market. This is no small task and it can be overwhelming. Many new buyers start there search online on their own. In fact 82% of buyers start their search online. I understand that you do not want to be sold or bound to a Real Estate agent. I get it but you have to do your due diligence and hire a professional. Here are 10 benefites a great Realtor will add to your purchase experience:

1) Professional Advice – Real Estate agents are trained in the very thing you are looking to accomplish, Finding the right home. They can offer professional advice on Style, Location, and Price. They also have knowledge or professional contacts to make sure the structure, floor plan, area are all up to your standards. There is no substitute to Professional Advice.

2) No Cost to You – As a buyer you do not pay the commission of your selling agent. They are paid by the seller for finding you and selling the sellers home to you. It does not cost you anything. Their time they spend with you, the advice they give you, and all the additional benefits come at no expense to you until they find you the right home and you agree to buy it.

3) Negotiation – Realtors are skilled negotiators. A large portion of the job that they do is negotiating the right price and terms of your purchase. This can be the difference and to me very well could be the number one benefit.

4) Expanded Search – Agents not only have access to the local MLS but they also have access to a network of other agents that have inside knowledge on upcoming properties. This extends in most cases above and beyond their own company. Overtime Real Estate agents build strong relationships with colleagues. It is like water cooler talk. In the end you may be the beneficiary.

5) Knowledge of the Area – You may be familiar with the area that you are buying in and you may not. Agents are generally connected with the chamber of commerce, local churches, school associations and restaurants through their farm. Many agents concentrate on specific areas and know everything there is to know about that area.

6) Determine overall value to insure appropriate price –  Agents have knowledge of values and sale prices that are accurate in your market. It is their job to stay current with market values and sales in today’s market. There are two markets going on today: The normal market and the distressed REO market. Realtors can help you navigate the two markets and help you to determine the appropriate value or price you may offer.

7) Limit Liability – An agent can limit your liability and make sure that you are protected as a buyer. There are time frames, contingency periods that a buyer must meet and there are contractual obligations to meet. Your agent will guide you through this process and help you to make educated decisions regarding your liability.

8) Emotion Manager – The market today can be very stressful for a buyer. It is essential to control your emotions. You cannot get attached to a property. If you write an offer on a short sale it is essential to understand that you may be waiting for a long period of time and your agent will help set that expectation keeping your emotions in check.

9) Simple Explanations to Complex Issues – Your agent will break down complex situations so that you can understand them fully. It can be very overwhelming upfront but your agent will break down a complex process and help you to understand the little pieces. This will be a major life-changing event and the Real Estate agent will help simplify it.

10) Experience only time and transactions can provide – Your agent has seen nearly all the situations that you may encounter during your purchase. From uncovering a hidden defect, loan issues, property not appraising, title defects, zoning, septic, well, inappropriate disclosure, and many more. They are there to help you understand the concerns that may arise and help work through any situation they may not have experienced.

If you are in the Sacramento  Area or Sonoma County Area I recommend the following Real Estate Agents. I have worked with each and everyone of them at some point. In my opinion each of them comprises everyone of these benefits described above. Please contact me for their contact information as out of respect for them I will not post it.

Sacramento Area – Dayna Neuse Remax Gold Roseville , Peter Bond Remax GoldRoseville, Karen Wallace Lyon Real EstateRoseville, Robert Wallace Lyon Real EstateRoseville, Kevin Nakano Nakano Realty Elk Grove, Bryan Hill Pacific Coast RealtyRoseville, Nathan Novelo Connect Realty Antelope, George Snyder Lyon Real Estate Roseville and many others. I am sorry if I missed you here are there are too many of you too mention.

Sonoma County – Brook Terhune Platinum Real Estate Santa Rosa, Delia Nieto Coldwell Banker Santa Rosa, Larry Mitchell CPS Real Estate Santa Rosa.

In summary, it is imperative that you use the services of a qualified Real Estate agent. It is up to you to interview each and every Real Estate agent that you may want to work with. Determine who is a good fit for you. Communication is the key to every relationship and it is a two way street. Qualified Real Estate agents will help you have a successful buying experience.

Don’t pick up pennies while dollar bills fly over your head!

Recently Market Watch published a statement that read: Freddie Mac: Fixed mortgage rates hit another low (Marketwatch Bulletin Published 7:29 am Thursday). At this point we are generally begging borrowers to take the lowest rates that we have seen. The paper is yesterday’s news people so when you call the following day as they publish the good rates they are gone.

Many times I cannot get a borrower to lock their rate because the media makes it appear that rates will continue to go lower. If not the media the government makes it seem that they will continue to slide. At this time I had mid to high 4’s available. Fast Forward to Friday at 3pm. The rates were low to mid 5’s. A movement of .5% in less than 36 hours.

The Moral to the story is simple: Lock Profit. If your mortgage professional says I can save you $319 don’t try to get to $350. Walk away from the table sir/mam. Don’t bend over picking up pennies while dollar bills fly over your head!

I am sorry to be out of character and rant for a moment but I cannot understand why we choose not to lock in savings and say in the same sentence that money is tight.

As always thank you for reading,

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House Hunting Frustration Setting In! Solutions to help your cause!

Are you searching for a home in Roseville, California? Are you searching for a home in Sacramento, California? Are you searching for a home in Placer county? If so this is for you.

Buying your new dream home is absolutely a process. This process can take time. It can also be a numbers game. What I mean by that is you may have to write an offer on several homes before one sticks. I work buyers in the greater Sacramento and Sonoma county areas. Some of my buyers have been approved for a home loan for 6 months or more. What are they waiting for? They are waiting to find a home that fits. Price, Location, and style matches are important to every consumer.

Naturally I wanted to take a look at the statistics in February 2009 to see the trends of the market and why finding the right home may be so difficult. When doing the search I found the following statistics to answer a few of my questions:

Stat: 54.91% of the homes that were sold were sold in the first 60 days – Homes are moving and they are moving fast. If you are a buyer in the market you have to be willing to act fast.

Solution – As a consumer you have to know what all of your numbers are. You have to be aware of your max. You have to have a list of the must haves, wants, and not needed in your home. Know the Maximum you are willing to spend, the minimum credits you may need, have your down-payment lined up, and get approved with cushion in your rate to cover the volatility of the market.

Stat: 59% of the homes that were sold were bought with Conventional Financing – This was a surprising statistic for me at first and then I reviewed my closings 6 and realized that I was exactly 50% conventional and 50% FHA.

Solution: Conventional financing requires a minimum 5% down which is difficult to do most realistically 10% down. Mortgage insurance requirements are tightening greatly. FHA minimum down payment is 3.5%. They also allow a 6% seller credit while conventional allows for 3% unless you put 20% down or more.

Stat: 63% of the homes that sold were between 200K-400K – There is a lot of competition in certain price points. The inventory is not as think as it was because the moratorium on new bank owned properties. What this means to you is that if you are approved for 225K you should start your search at 200K. This would allow you to remain in the hunt if there are multiple offers. This will save you time in the long run. I have found that if you search at your max range and the counter for highest and best you are out. This is a contributing factor to the frustration.

Summary: Know your stats and your price range. Be prepared to fight the fight. If you want a home bad enough you will make sure that you are prepared. As professionals we are going to help you do this. Be prepared to have the talk about expectations and the list that you have of must haves. Are they really a necessity if so awesome let’s look but it could be a while. There are three main categories when looking for a home and those are:

Location – This is very important. Children’s schools, proximity to work, and of course the Local restaurants of the area. This is one that you you generally do not want to sacrifice on.

Price – You are approved for what you are approved for. That is why I recommend starting your search under your max and working your way up. It gives you the flexibility to compete.

Style – This is the layout and the number of baths, garages etc. This is the one that generally ends up being sacrificed. The reason is that the other two are real difficult to give up. This is why I think that it is imperative to have you lists of must haves and wants.

Many times you will sacrifice in a category. Have a plan for this as well. Widen your search and locations.

As Always thank you for Reading,

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