Technology has improved our lives over the last ten years, but it’s also caused some problems along the way for Nevada County real estate buyers.
As a buyer, you naturally want to take advantage of every tool and service available to make it easier to find the home of your dreams. However, the Internet, which is one of the most common places for people to shop for Nevada County real estate nowadays, has also become a place where the unscrupulous hang out. You can’t believe everything you read online, even when it comes to shopping for homes online.
If you’re trying to find a home, here are two things you need to be aware of:
Home Valuation Sites
Many potential buyers find an interesting home and then research the home value. This is commendable and just plain good sense. You want to make sure you’re not overpaying. Thanks to the Internet, we have sites like Zillow and Realtor.com that provide home valuations.
The problem is that these sites hardly ever agree on the home value. They can differ as much as 20% or more. While home valuation sites are an excellent place to get a ballpark estimate, you shouldn’t base your buying price on their information alone. Hire a reputable Nevada County real estate agent who knows the surrounding area and recent sale prices.
Dream Home or Nightmare
One of the best things to happen for real estate agents and sellers alike is the ability to post digital photos and walk-through videos of the homes they’re selling. This is also great for you, as the buyer, because you can view the homes without going anywhere.
Unfortunately, many buyers take those images and videos at face value. Thanks to some high-tech graphics programs, however, you can’t guarantee that what you see is what you get. Videos and images can both be manipulated to show you the best face of any piece of property.
Any time you see a home online that you’re interested in, it’s a good idea to check Google Maps and use the Street View option. At the very least, you can usually see the front and sides of the home. If you’re still interested, visit the home in person, or, if that’s not possible for some reason, ask your Nevada County real estate agent to visit the home and take pictures for you.
If you’re trying to find your dream home, I can help. Call me at 530-913-2019 or email me at teresaprock@hotmail.com for more information.
Wednesday, April 28, 2010
No More State Tax on Forgiven Debt
Distressed homeowners no longer have to pay California state income tax on debt forgiven in a short sale, foreclosure, or loan modification. Enacted into law yesterday, Senate Bill 401 generally aligns California's tax treatment of mortgage debt relief income with federal law. For debt forgiven on a loan secured by a "qualified principal residence," borrowers will now be exempt from both federal and state income tax consequences. The existing federal exemption is for indebtedness up to $2 million, whereas the new California exemption is for indebtedness up to $800,000 and forgiven debt up to $500,000.
"Qualified principal residence" indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence. It includes both first and second trust deeds. It also includes a refinance loan to the extent the funds were used to payoff a previous loan that would have qualified.
The tax breaks apply to debts discharged from 2009 through 2012. Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment. Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.
For more information about mortgage forgiveness tax consequences, go to California Franchise Tax Board's Mortgage Forgiveness Debt Relief Extended webpage and the Internal Revenue Service's Mortgage Forgiveness Debt Relief Act and Debt Cancellation webpage. The full text of Senate Bill 401 is available at http://www.leginfo.ca.gov/.
This article is compliments of the California Association of realtors.
"Qualified principal residence" indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence. It includes both first and second trust deeds. It also includes a refinance loan to the extent the funds were used to payoff a previous loan that would have qualified.
The tax breaks apply to debts discharged from 2009 through 2012. Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment. Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.
For more information about mortgage forgiveness tax consequences, go to California Franchise Tax Board's Mortgage Forgiveness Debt Relief Extended webpage and the Internal Revenue Service's Mortgage Forgiveness Debt Relief Act and Debt Cancellation webpage. The full text of Senate Bill 401 is available at http://www.leginfo.ca.gov/.
This article is compliments of the California Association of realtors.
Tuesday, April 27, 2010
Great Pictures Help Sale Nevada County Real Estate
“Use a picture. It’s worth a thousand words.” – Arthur Brisbane
One photograph can have a bigger impression on an individual than an entire essay. With the number of potential buyers searching for homes for sale online, vivid photographs have sprouted everywhere. In fact, good photography can make that slight difference between having your home passed over and selling it.
If you’re considering adding your home to the online list of homes for sale, you need to think about photos – and those photos need to be good. Just like the home itself, the photos need to stand out from the crowd. Here are a few tips:
Talk to your agent about what’s “hot” right now. Obviously, your strongest selling points are what buyers are looking for now. Two years ago, buyers were looking for fewer square feet, stepping away from the McMansions. Last year, it was decks and patios. This year, it could be your beautiful, 2-acre backyard with the play set. If you have a selling point, capitalize on it with fantastic photography.
Use the most favorable lighting. High noon sunlight is harsh and often highlights exterior problems that even you may not have noticed. When taking exterior pictures, choose lighting that draws attention to the positives. For instance, one of the most beautiful real estate images I’ve ever seen was a home with all the lights on. The sun was almost completely down and served to accentuate the beauty of the home.
Take as many pictures as you need to get the perfect shot. A shot that’s slightly twisted to the side may not seem like something to throw away, but it can distort the appealing lines of a home. Because photos are two dimensional and flat, even the slightest left or right slant can make the home look like it’s looming, falling in or disproportionate.
The ability to use photos to show off your home on the Internet has been a huge boon for those with Nevada County homes for sale. However, a poor photo can do more damage that having no photos at all. If you can’t seem to take a picture without the image blurring, slanting or looking distorted, hire a real estate agent who can get the job done for you.
Looking for a real estate agent who knows how to showcase your home in pictures? Give me a call today at 530-913-2019 or email me at Teresaprock@hotmail.com.
One photograph can have a bigger impression on an individual than an entire essay. With the number of potential buyers searching for homes for sale online, vivid photographs have sprouted everywhere. In fact, good photography can make that slight difference between having your home passed over and selling it.
If you’re considering adding your home to the online list of homes for sale, you need to think about photos – and those photos need to be good. Just like the home itself, the photos need to stand out from the crowd. Here are a few tips:
Talk to your agent about what’s “hot” right now. Obviously, your strongest selling points are what buyers are looking for now. Two years ago, buyers were looking for fewer square feet, stepping away from the McMansions. Last year, it was decks and patios. This year, it could be your beautiful, 2-acre backyard with the play set. If you have a selling point, capitalize on it with fantastic photography.
Use the most favorable lighting. High noon sunlight is harsh and often highlights exterior problems that even you may not have noticed. When taking exterior pictures, choose lighting that draws attention to the positives. For instance, one of the most beautiful real estate images I’ve ever seen was a home with all the lights on. The sun was almost completely down and served to accentuate the beauty of the home.
Take as many pictures as you need to get the perfect shot. A shot that’s slightly twisted to the side may not seem like something to throw away, but it can distort the appealing lines of a home. Because photos are two dimensional and flat, even the slightest left or right slant can make the home look like it’s looming, falling in or disproportionate.
The ability to use photos to show off your home on the Internet has been a huge boon for those with Nevada County homes for sale. However, a poor photo can do more damage that having no photos at all. If you can’t seem to take a picture without the image blurring, slanting or looking distorted, hire a real estate agent who can get the job done for you.
Looking for a real estate agent who knows how to showcase your home in pictures? Give me a call today at 530-913-2019 or email me at Teresaprock@hotmail.com.
Make the Yard of Your Nevada county Home a Bird Paradise
Do you enjoy watching birds? Would you like to attract more of them to the yard of your Nevada county home? Luckily, you can with the right setting. Here are 3 steps to transform your landscape into a bird’s paradise:
Step 1: Provide a food supply for your feathered friends.
One of the easiest ways to do so is through birdfeeders. To ensure a throng of birds inhabits your landscape throughout most of the year, place birdfeeders in areas all over your Nevada county home’s yard.
Step 2: Supply a source of water for birds to drink and bathe in.
Birdbaths are an easy solution and wide varieties are available. Shallow basins or troughs will also do the trick. However, since birds enjoy moving water, you may want to include a feature in your landscape that circulates water.
Step 3: Offer a safe shelter to perch and rest.
Birds want a place safe from the elements and predators. Evergreen trees like cedar, pine and spruce are a good choice, as they allow birds to crawl into them and keep predators out. Ornamental trees are another good choice that will not only provide shelter but perhaps even some food in the form of berries or insects. Trees that birds find attractive include crabapple trees, flowering dogwood trees and Japanese snowdrop trees.
In addition to trees, you may want to provide birdhouses. These also serve as shelter, as long as they are deep enough to protect the nest and have a small hole near the top and a cleanout panel. The size of the hole and orientation to your Nevada county home determine what birds inhabit it. To keep inhabitants comfortable and safe, place birdhouses in a quiet, shady spot and secure them firmly.
Turning your yard into a bird paradise takes some time and effort, but it’s all worth it when your landscape is flittering with feathered activity throughout most of the year.
Want to purchase a home with a yard that you can turn into a bird paradise? I can help. Call me now at 530-913-2019 or email me at Teresaprock@hotmail.com for more information
Step 1: Provide a food supply for your feathered friends.
One of the easiest ways to do so is through birdfeeders. To ensure a throng of birds inhabits your landscape throughout most of the year, place birdfeeders in areas all over your Nevada county home’s yard.
Step 2: Supply a source of water for birds to drink and bathe in.
Birdbaths are an easy solution and wide varieties are available. Shallow basins or troughs will also do the trick. However, since birds enjoy moving water, you may want to include a feature in your landscape that circulates water.
Step 3: Offer a safe shelter to perch and rest.
Birds want a place safe from the elements and predators. Evergreen trees like cedar, pine and spruce are a good choice, as they allow birds to crawl into them and keep predators out. Ornamental trees are another good choice that will not only provide shelter but perhaps even some food in the form of berries or insects. Trees that birds find attractive include crabapple trees, flowering dogwood trees and Japanese snowdrop trees.
In addition to trees, you may want to provide birdhouses. These also serve as shelter, as long as they are deep enough to protect the nest and have a small hole near the top and a cleanout panel. The size of the hole and orientation to your Nevada county home determine what birds inhabit it. To keep inhabitants comfortable and safe, place birdhouses in a quiet, shady spot and secure them firmly.
Turning your yard into a bird paradise takes some time and effort, but it’s all worth it when your landscape is flittering with feathered activity throughout most of the year.
Want to purchase a home with a yard that you can turn into a bird paradise? I can help. Call me now at 530-913-2019 or email me at Teresaprock@hotmail.com for more information
Monday, April 26, 2010
Life after Tax Credits – Nevada County Homes for Sale
The government’s first-time and repeat-buyer tax credits gave homeowners with homes for sale a lot of hope. The potential for getting their homes sold seemed infinitely higher. The credit expires at the end of this month though, and many homes are still on the market. If yours is one of them, what should you do?
Don’t Panic!
The first inclination for many homeowners with Nevada County homes for sale is to panic. Often, it’s during the hard periods of life that something miraculous happens. You find the job of your dreams after searching for two years for any kind of job at all. Your life has been plagued by bad relationships so often that you’ve quit looking and then – out of nowhere – your soul mate walks up. You need to sell your house, money is tight, you might have to walk away… and a buyer appears, ready to close immediately.
Don’t scoff; it happens. In fact, life is so full of “sudden happenings” that the miraculous becomes common. By allowing panic to get in the way, you may be locking the door that opportunity knocks on.
Look At Your Options
Sometimes, we’re so full of worry that we miss obvious possibilities. Now is a perfect time to take a deep breath, clear your mind of worry (as much as possible) and look at what you’ve done to sell your home. Once you’ve outlined what you’ve done, you’re then free to look at what you can still do. Here are a few things you might not have considered:
Research owner financing – Owner financing opens the door to many potential buyers, but it also provides benefits to you. For instance, if you have a lot of bills that need to be paid, the down payment from the buyer may be enough to take care of the important ones. Additionally, monthly payments from the buyer may be enough to keep you afloat while you’re looking for a job, trying to pay rent or feed your family.
Create a “honey do” list – If you’ve lived in a home for several years, you’ve probably become used to cracks in the walls, peeling paint or squeaky doors. Invite an honest friend or your real estate agent to look around for you and help you create a “honey do” list. If you’re handy, a lot can be fixed with very low cost. If you’re not, hiring a handyman may be something to consider.
Reassess your marketing – If your home hasn’t had a single view and has been on the market for quite a while, you may not have the marketing reach you think you do. If pictures of your home are on the Internet, make sure they show the home’s best features. Talk with your real estate agent about marketing techniques they recommend using.
It’s hard to blow off worry during times of high stress. However, if you can step away for just a minute to clear your head and think, you just might find your miraculous answer for taking your home off the list of Nevada County homes for sale.
If you’re ready to sell your home, I’m here to help. Turn the marketing of your home and worrying about it over to me. Call me today at 530-913-2019 or email me at teresaprock@hotmail.com for more information.
Don’t Panic!
The first inclination for many homeowners with Nevada County homes for sale is to panic. Often, it’s during the hard periods of life that something miraculous happens. You find the job of your dreams after searching for two years for any kind of job at all. Your life has been plagued by bad relationships so often that you’ve quit looking and then – out of nowhere – your soul mate walks up. You need to sell your house, money is tight, you might have to walk away… and a buyer appears, ready to close immediately.
Don’t scoff; it happens. In fact, life is so full of “sudden happenings” that the miraculous becomes common. By allowing panic to get in the way, you may be locking the door that opportunity knocks on.
Look At Your Options
Sometimes, we’re so full of worry that we miss obvious possibilities. Now is a perfect time to take a deep breath, clear your mind of worry (as much as possible) and look at what you’ve done to sell your home. Once you’ve outlined what you’ve done, you’re then free to look at what you can still do. Here are a few things you might not have considered:
Research owner financing – Owner financing opens the door to many potential buyers, but it also provides benefits to you. For instance, if you have a lot of bills that need to be paid, the down payment from the buyer may be enough to take care of the important ones. Additionally, monthly payments from the buyer may be enough to keep you afloat while you’re looking for a job, trying to pay rent or feed your family.
Create a “honey do” list – If you’ve lived in a home for several years, you’ve probably become used to cracks in the walls, peeling paint or squeaky doors. Invite an honest friend or your real estate agent to look around for you and help you create a “honey do” list. If you’re handy, a lot can be fixed with very low cost. If you’re not, hiring a handyman may be something to consider.
Reassess your marketing – If your home hasn’t had a single view and has been on the market for quite a while, you may not have the marketing reach you think you do. If pictures of your home are on the Internet, make sure they show the home’s best features. Talk with your real estate agent about marketing techniques they recommend using.
It’s hard to blow off worry during times of high stress. However, if you can step away for just a minute to clear your head and think, you just might find your miraculous answer for taking your home off the list of Nevada County homes for sale.
If you’re ready to sell your home, I’m here to help. Turn the marketing of your home and worrying about it over to me. Call me today at 530-913-2019 or email me at teresaprock@hotmail.com for more information.
Saturday, April 24, 2010
How to Make Sure You'll make it to Closing on Your New Nevada County Real Estate
You've gotten your financing, your offer has been accepted and you just have to wait the few weeks until your closing date and your new Nevada County real estate is all yours. Nothing can go wrong, right? Wrong!
Technically nothing is likely to go wrong in that period of time, when it comes to the actual process of the property transfer. However, people often make critical mistakes that cripple their deals in that tense time right before closing.
Things You Shouldn't Do Before Closing
Buy a new car: Don't buy a new car or any big ticket item that might flag your loan company. Your credit will be continuously under review and your Nevada County real estate loan can be turned down at any time up until closing, even after it was accepted. Keep that in mind when doing anything that will impact your debt-to-income ratio.
Quit or change jobs: This will also look suddenly troubling to your finance company. Don't give them any reason to change their minds. If you really need to switch jobs, hopefully it can wait a few weeks.
Move money around: Keep things as stable as possible during the weeks before closing. There are few things that can't wait. Even if you had planned to move to a new bank, or buy into stocks or IRAs, but were delaying it in order to get your loan in the first place, don't jump the gun now. Wait a few more weeks.
Take new credit card offers: No matter how attractive they are, don’t accept any new credit offers. In fact, you’ll probably get a glut of junk mail or email offers for new credit cards now that you have been approved for a big loan. Don't do it. Wait until after closing, if you have any desire to take them. Your loan company will get nervous if you suddenly have the opportunity to build a lot of debt.
If you’re thinking of buying or selling Nevada County real estate, give me a call today at 530-913-2019 or email me at Teresa rock@hotmail.com]. I’ll guide you step-by-step through the entire process including your successful closing.
Technically nothing is likely to go wrong in that period of time, when it comes to the actual process of the property transfer. However, people often make critical mistakes that cripple their deals in that tense time right before closing.
Things You Shouldn't Do Before Closing
Buy a new car: Don't buy a new car or any big ticket item that might flag your loan company. Your credit will be continuously under review and your Nevada County real estate loan can be turned down at any time up until closing, even after it was accepted. Keep that in mind when doing anything that will impact your debt-to-income ratio.
Quit or change jobs: This will also look suddenly troubling to your finance company. Don't give them any reason to change their minds. If you really need to switch jobs, hopefully it can wait a few weeks.
Move money around: Keep things as stable as possible during the weeks before closing. There are few things that can't wait. Even if you had planned to move to a new bank, or buy into stocks or IRAs, but were delaying it in order to get your loan in the first place, don't jump the gun now. Wait a few more weeks.
Take new credit card offers: No matter how attractive they are, don’t accept any new credit offers. In fact, you’ll probably get a glut of junk mail or email offers for new credit cards now that you have been approved for a big loan. Don't do it. Wait until after closing, if you have any desire to take them. Your loan company will get nervous if you suddenly have the opportunity to build a lot of debt.
If you’re thinking of buying or selling Nevada County real estate, give me a call today at 530-913-2019 or email me at Teresa rock@hotmail.com]. I’ll guide you step-by-step through the entire process including your successful closing.
Thursday, April 22, 2010
Getting Help for Moving Day after Buying Your Nevada County Home
Whew—you're finished! You've signed all the forms and the race is won, you think. Okay, go ahead and sigh that huge gasp of relief that your Nevada County home is finally yours.
That's enough. Now, get yourself up and realize the heavy work is about to start. Oh yeah, you have to move all that stuff you've managed to accumulate over the past however many years you've been alive. Stuff doesn't ever die; it just continues to follow you around. So, how do you get it to your new Nevada County home? Here are a few ideas to help:
Send out invitations: You would do it for any other big event in your life. Send out invitations to your family and friends and invite them to help you on your big day. Make it sound like fun by promising a picnic in your new backyard either the day of the move or soon after. It doesn't have to be a big complicated affair. Order some take-out fried chicken or pizza and have plenty of beverages for sweaty, tired helpers. Make it a real event that everyone can enjoy while laughing about the day's adventures.
Store it: If you're like most people, you have plenty of things you rarely use but can't bear to get rid of. Take advantage of the fact that you'll be packing all your things, and put those items you never use into boxes and tote them to a storage unit. You get to keep them, at least for now, but they won't be cluttering up your brand new Nevada County home. In six months, if you haven't missed the items, take the boxes (without opening them) to your favorite donation location.
Safeguard your pets: Moving day is hectic and can be frightening for your pets. Board your cats or dogs for the day. It will be worth the expense to make sure they don't escape through doors propped open for moving.
Still looking for your dream home? Give me a call today at 530-913-2019 or email me at Teresaprock@hotmail.com, and together we’ll find your dream home fast.
That's enough. Now, get yourself up and realize the heavy work is about to start. Oh yeah, you have to move all that stuff you've managed to accumulate over the past however many years you've been alive. Stuff doesn't ever die; it just continues to follow you around. So, how do you get it to your new Nevada County home? Here are a few ideas to help:
Send out invitations: You would do it for any other big event in your life. Send out invitations to your family and friends and invite them to help you on your big day. Make it sound like fun by promising a picnic in your new backyard either the day of the move or soon after. It doesn't have to be a big complicated affair. Order some take-out fried chicken or pizza and have plenty of beverages for sweaty, tired helpers. Make it a real event that everyone can enjoy while laughing about the day's adventures.
Store it: If you're like most people, you have plenty of things you rarely use but can't bear to get rid of. Take advantage of the fact that you'll be packing all your things, and put those items you never use into boxes and tote them to a storage unit. You get to keep them, at least for now, but they won't be cluttering up your brand new Nevada County home. In six months, if you haven't missed the items, take the boxes (without opening them) to your favorite donation location.
Safeguard your pets: Moving day is hectic and can be frightening for your pets. Board your cats or dogs for the day. It will be worth the expense to make sure they don't escape through doors propped open for moving.
Still looking for your dream home? Give me a call today at 530-913-2019 or email me at Teresaprock@hotmail.com, and together we’ll find your dream home fast.
Monday, April 19, 2010
First Impression May Be Your Last When Selling Nevada County Real Estate
When people meet you for the first time, their first impression is usually a lasting one. You also never get a second chance to make that first impression when you’re selling your Nevada County real estate. You need to present your home at its very best all the time.
Here are 3 things you can do to make a great first impression:
1. Clean up the yard: A messy yard is a distraction. It can be time consuming to keep up with general yard work, but it’s worth the effort. Overgrown shrubs, limp lawns, and general disarray can turn off a potential buyer. If you have to hire someone to come in and give your yard a quick pick me up, it’s worth the money.
2. Get Rid of Items You Don't Need: Be very strict about this and get rid of all but the bare necessities. You don't have to throw or give everything away. Find a storage unit and put the things in there you will be taking with you to your new home but do not need immediate access to for now.
3. Fix Up the Little Things: Little things count. If you have a leaky faucet, a broken tile in the floor or a crack on the wall, now is the time to fix it. Little flaws like this make potential buyers worry that there are bigger problems waiting to be found.
Selling Nevada County real estate is a lot of work. You can get it sold faster, easier and for the most money when you take the time to make a great first impression.
If you have any questions about what you can do to make your home sell faster, I can help. Call me today at 530-913-2019 or email me at teresaprock@hotmail.com.
Here are 3 things you can do to make a great first impression:
1. Clean up the yard: A messy yard is a distraction. It can be time consuming to keep up with general yard work, but it’s worth the effort. Overgrown shrubs, limp lawns, and general disarray can turn off a potential buyer. If you have to hire someone to come in and give your yard a quick pick me up, it’s worth the money.
2. Get Rid of Items You Don't Need: Be very strict about this and get rid of all but the bare necessities. You don't have to throw or give everything away. Find a storage unit and put the things in there you will be taking with you to your new home but do not need immediate access to for now.
3. Fix Up the Little Things: Little things count. If you have a leaky faucet, a broken tile in the floor or a crack on the wall, now is the time to fix it. Little flaws like this make potential buyers worry that there are bigger problems waiting to be found.
Selling Nevada County real estate is a lot of work. You can get it sold faster, easier and for the most money when you take the time to make a great first impression.
If you have any questions about what you can do to make your home sell faster, I can help. Call me today at 530-913-2019 or email me at teresaprock@hotmail.com.
Saturday, April 17, 2010
Economists Predict Second Quarter Woes Fading for National and Nevada County Real Estate
Government support in the national and Nevada County real estate sectors is slowly being pulled back. For instance, the federal homebuyer’s tax credit expires this month and the Fed stopped purchasing mortgage-backed securities in March. These two changes in financial backing for the housing market are causing worry because people fear the expiring tax credit will cause a dramatic drop in sales.
An important question right now is how much did the government support really help the national and Nevada County real estate markets and the economy?
The Economy
Dean Maki, chief U.S. economist for Barclays Capital (New York) and one of the most accurate economic forecasters for the past 20 years, says the U.S. economy is on the rise. Many economists share Maki’s view: We’re at the bottom and there’s no place left to go but up.
The Fed Stops Buying Mortgage-Backed Securities
The largest hurdle for the real estate market came at the end of March, as the Fed finished buying up $1.25 trillion worth of mortgage-backed securities and taking care of housing-agency debt to the tune of $175 billion. However, strategists and economists conclude that the change won’t have a lot of impact; the central bank will be replaced by private demand.
The Expiration of the Homebuyers Tax Credit
The second largest hurdle, the expiration of the homebuyers’ tax credit, might have a bigger impact if it had brought a huge sales increase. It didn’t, however, and the belief is that things will slowly improve with – or without – the credit. Although vacant housing rose to 2.09 million by the end of 2009 and foreclosures are expected to hit around 2.2 million this year, the number of new households may reach as high as 1.25 million.
The Good News
Of the potential 1.25 million new households, almost 1 million are currently living with family members. With home sales gradually improving, economists predict that even a slight improvement in the job market will bring those 1 million households out of the woodwork to find a home. When this happens, the excess housing supply will quickly disappear.
If you’ve been stuck, waiting to sell your Nevada County real estate, your home is part of the housing supply. With the housing market slowly improving, you may very well end up coming out on top within the next three to six months.
If you’d like to sell your home, or buy a new home, I can help. Call me at 530-913-2019 or email me at teresaprock@hotmail.com for more information.
An important question right now is how much did the government support really help the national and Nevada County real estate markets and the economy?
The Economy
Dean Maki, chief U.S. economist for Barclays Capital (New York) and one of the most accurate economic forecasters for the past 20 years, says the U.S. economy is on the rise. Many economists share Maki’s view: We’re at the bottom and there’s no place left to go but up.
The Fed Stops Buying Mortgage-Backed Securities
The largest hurdle for the real estate market came at the end of March, as the Fed finished buying up $1.25 trillion worth of mortgage-backed securities and taking care of housing-agency debt to the tune of $175 billion. However, strategists and economists conclude that the change won’t have a lot of impact; the central bank will be replaced by private demand.
The Expiration of the Homebuyers Tax Credit
The second largest hurdle, the expiration of the homebuyers’ tax credit, might have a bigger impact if it had brought a huge sales increase. It didn’t, however, and the belief is that things will slowly improve with – or without – the credit. Although vacant housing rose to 2.09 million by the end of 2009 and foreclosures are expected to hit around 2.2 million this year, the number of new households may reach as high as 1.25 million.
The Good News
Of the potential 1.25 million new households, almost 1 million are currently living with family members. With home sales gradually improving, economists predict that even a slight improvement in the job market will bring those 1 million households out of the woodwork to find a home. When this happens, the excess housing supply will quickly disappear.
If you’ve been stuck, waiting to sell your Nevada County real estate, your home is part of the housing supply. With the housing market slowly improving, you may very well end up coming out on top within the next three to six months.
If you’d like to sell your home, or buy a new home, I can help. Call me at 530-913-2019 or email me at teresaprock@hotmail.com for more information.
Friday, April 16, 2010
Consider the Investment Value of Nevada County Real Estate
If the Nevada County real estate you are looking to buy is going to be your primary residence, you probably know the features that are important to you. However, in today's economic environment, the resale, or investment value, of Nevada County real estate is as important as the practical value of the number of bedrooms or bathrooms and the size of the kitchen.
In the past, a home buyer rarely worried about the resale value of a property because homes were always considered good financial investments. With today’s fluctuating home prices, property values are as important for home buyers to understand as they are for real estate investors to understand.
Location and Property Values
Before the housing and mortgage crisis, even if the home that suited you was not in a prime location, it would likely increase in value over time. Now, you want to be sure you research a potential home before purchasing it to be sure:
1. The home is in a great neighborhood.
2. It’s at the lower end of the market value for that neighborhood.
If you buy a home in a neighborhood that is already considered a lower value area, it’s possible that those prices will not recover as quickly as better areas. Or worse, home values could decline more leaving you with a home worth less than what you paid for it.
Now more than ever, it’s important to work with a real estate agent who specializes in the neighborhood where you’d like to live. As a specialist in Nevada County real estate, I can give you the insider’s scoop on that neighborhood. Contact me today at 530-913-2019 or email me at Teresaprock@hotmail.com. Visit my web site Teresaprock.com for helpful tools and information regarding Nevada County real estate!
In the past, a home buyer rarely worried about the resale value of a property because homes were always considered good financial investments. With today’s fluctuating home prices, property values are as important for home buyers to understand as they are for real estate investors to understand.
Location and Property Values
Before the housing and mortgage crisis, even if the home that suited you was not in a prime location, it would likely increase in value over time. Now, you want to be sure you research a potential home before purchasing it to be sure:
1. The home is in a great neighborhood.
2. It’s at the lower end of the market value for that neighborhood.
If you buy a home in a neighborhood that is already considered a lower value area, it’s possible that those prices will not recover as quickly as better areas. Or worse, home values could decline more leaving you with a home worth less than what you paid for it.
Now more than ever, it’s important to work with a real estate agent who specializes in the neighborhood where you’d like to live. As a specialist in Nevada County real estate, I can give you the insider’s scoop on that neighborhood. Contact me today at 530-913-2019 or email me at Teresaprock@hotmail.com. Visit my web site Teresaprock.com for helpful tools and information regarding Nevada County real estate!
Thursday, April 15, 2010
Live Green and Save Cash on Appliances for Your Nevada County Home
If you’re in need of an appliance for your Nevada County home, you may want to buy now to save cash. The U.S. government is giving you good reasons to buy energy-efficient appliances through its Energy Star designation. Thirty-six states have launched programs to distribute almost $300 million in rebates to consumers who buy energy-efficient appliances.
The federally-funded programs are similar to the hotly debated cash-for-clunkers auto rebate program of 2009. Rebates differ by state and appliance but typically run between $50 to $75 on refrigerators, washers, dryers and freezers.
To qualify for rebates, consumers must buy Energy Star appliances, which meet or beat energy standards. These standards are set by the federal government and are up to 30 percent more efficient than non-Energy Star appliances.
Should you buy new appliances for your Nevada County home now? Say yes if:
· You need a new appliance anyway.
· You’re tired of throwing away money every time you operate inefficient appliances.
· You want a good deal on a new appliance.
· You want to help the environment by going green and saving energy.
You may even be able to trade in your old-but-still running refrigerator or dishwasher when you buy a new Energy Star model. For the specific rules and amount you’ll save, go to Energy Savers.
Want to save even more? You may also be eligible for rebates offered by manufacturers, local utilities and retailers. Home Depot, Lowe’s and Sears are all planning special promotions in certain states to coincide with the federal rebate program.
Research the stores’ promotions before you buy. To find a list of retailers of Energy Star qualified products in your area and the categories of products they carry, use the Energy Star Store Locator.
Since rebates for Energy Star qualified (or higher) appliances are generally being given on a first-come, first-served basis, and because funding is limited, you might want to act fast before the available cash is gone.
If you’d like to buy a new Nevada County home for your new appliances, I can help. Give me a call today at 530-913-2019 or email me at Teresaprock@hotmail.com.
The federally-funded programs are similar to the hotly debated cash-for-clunkers auto rebate program of 2009. Rebates differ by state and appliance but typically run between $50 to $75 on refrigerators, washers, dryers and freezers.
To qualify for rebates, consumers must buy Energy Star appliances, which meet or beat energy standards. These standards are set by the federal government and are up to 30 percent more efficient than non-Energy Star appliances.
Should you buy new appliances for your Nevada County home now? Say yes if:
· You need a new appliance anyway.
· You’re tired of throwing away money every time you operate inefficient appliances.
· You want a good deal on a new appliance.
· You want to help the environment by going green and saving energy.
You may even be able to trade in your old-but-still running refrigerator or dishwasher when you buy a new Energy Star model. For the specific rules and amount you’ll save, go to Energy Savers.
Want to save even more? You may also be eligible for rebates offered by manufacturers, local utilities and retailers. Home Depot, Lowe’s and Sears are all planning special promotions in certain states to coincide with the federal rebate program.
Research the stores’ promotions before you buy. To find a list of retailers of Energy Star qualified products in your area and the categories of products they carry, use the Energy Star Store Locator.
Since rebates for Energy Star qualified (or higher) appliances are generally being given on a first-come, first-served basis, and because funding is limited, you might want to act fast before the available cash is gone.
If you’d like to buy a new Nevada County home for your new appliances, I can help. Give me a call today at 530-913-2019 or email me at Teresaprock@hotmail.com.
Monday, April 12, 2010
Buying or Selling Green Nevada County Real Estate
“Going green” can mean something as simple as using recyclable paper bags from the grocery store to something as complex as buying green Nevada County real estate. A greener world is a dream for many people. Even without promotions pushing consumers towards healthier choices and better living, a shift in consumer minds has begun.
What does this have to do with Nevada County real estate? Simply this: If you’re a buyer trying to find a green or energy-efficient home, you may be surprised to learn that you could run into some difficulty. And, if you’re selling your green home, you may not get the results you expect.
The Problem with Green
Energy-efficient and green homes are still a fairly new market. In fact, it’s still considered a niche market. This not only affects prices; it also affects appraisals.
Green Sellers
If you own a green home and are now trying to sell it, you and the appraiser may have a fight on your hands. For example, new regulations passed down over the past year say that loan originators can’t ask for appraisers experienced in green building evaluation. What this means is that you may very well get an appraiser who knows nothing about the value of green homes or green home improvements.
As well, some appraisers base their evaluations on foreclosed homes in the area. Depending on how hard hit the area has been by defaults, this could severely affect your appraisal.
Even if the appraiser understands green building and wants to give a fair home appraisal, they may not be able to assign full value for the green enhancements, because the market won’t support it. In other words, you may not get back what you put into the home when you sell it.
Green Buyers
Somehow, buying a green home has become as difficult as selling one. Sometimes, the issues don’t make sense in light of the difficulties sellers may have. For instance, the seller may have to take a cut in price when they sell. However, strangely enough, the buyer may end up having to pay more for a green home.
Often (and, again, because many don’t appreciate the value of a green home) the appraisal will come in for less than the home is actually worth. This means that the bank, which has agreed to pay a certain percent for financing, will only cover the percentage based on the appraisal. This leaves the buyer having to make a larger down payment than they might otherwise.
If you’re looking for green Nevada County real estate or trying to sell your green home, have your real estate agent negotiate for you before throwing up your hands. Remember that buyers and sellers both have issues with green homes. Be willing to discuss and negotiate so everyone walks away happy.
If you’re trying to find an environmentally friendly home or have one you’d like to sell, I can help you avoid these problems. Call me at 530-913-2019 or email me at teresaprock@hotmail.com for more information.
What does this have to do with Nevada County real estate? Simply this: If you’re a buyer trying to find a green or energy-efficient home, you may be surprised to learn that you could run into some difficulty. And, if you’re selling your green home, you may not get the results you expect.
The Problem with Green
Energy-efficient and green homes are still a fairly new market. In fact, it’s still considered a niche market. This not only affects prices; it also affects appraisals.
Green Sellers
If you own a green home and are now trying to sell it, you and the appraiser may have a fight on your hands. For example, new regulations passed down over the past year say that loan originators can’t ask for appraisers experienced in green building evaluation. What this means is that you may very well get an appraiser who knows nothing about the value of green homes or green home improvements.
As well, some appraisers base their evaluations on foreclosed homes in the area. Depending on how hard hit the area has been by defaults, this could severely affect your appraisal.
Even if the appraiser understands green building and wants to give a fair home appraisal, they may not be able to assign full value for the green enhancements, because the market won’t support it. In other words, you may not get back what you put into the home when you sell it.
Green Buyers
Somehow, buying a green home has become as difficult as selling one. Sometimes, the issues don’t make sense in light of the difficulties sellers may have. For instance, the seller may have to take a cut in price when they sell. However, strangely enough, the buyer may end up having to pay more for a green home.
Often (and, again, because many don’t appreciate the value of a green home) the appraisal will come in for less than the home is actually worth. This means that the bank, which has agreed to pay a certain percent for financing, will only cover the percentage based on the appraisal. This leaves the buyer having to make a larger down payment than they might otherwise.
If you’re looking for green Nevada County real estate or trying to sell your green home, have your real estate agent negotiate for you before throwing up your hands. Remember that buyers and sellers both have issues with green homes. Be willing to discuss and negotiate so everyone walks away happy.
If you’re trying to find an environmentally friendly home or have one you’d like to sell, I can help you avoid these problems. Call me at 530-913-2019 or email me at teresaprock@hotmail.com for more information.
Sunday, April 11, 2010
2 Big Housing Trends That May Affect Your Home for Sale in Nevada County
The real estate market is shifting toward some definite trends that may affect your home for sale in Nevada County. Since 2006, the median cost of a home has dropped almost 30%. The good news, according Moody’s Economy.com, is that most of the nation’s metropolitan areas are expected to see less than a 5% drop in prices a year from now. Even better news, 10% are expected to see modest increases.
If you have a home for sale in Nevada County, keeping an eye on the trends can greatly increase your chances of selling, no matter what the area. Here are two of the biggest trends:
Trend #1: Home Prices Staying Down
Home inventories are slowly creeping back up, and another 3 million distressed homes are expected to be foreclosed on this year. As well, one-fourth of current homeowners are now underwater with their mortgages, and 18% of borrowers are choosing to walk away. In short, stressors on the current housing market may very well push national median prices down another 5%, as mentioned above.
How can I take advantage?
With the glut of foreclosed homes, they’re likely to be your highest competition. That means competing in price could be disastrous. Instead, play up the advantages of your home. For instance, foreclosed homes may need a lot of fixing up. To compete, make sure your home is inspected and fixed up before it’s listed. Once you know there aren’t a lot of problems add a one-year warranty for the buyer that covers fixes such as the furnace or water heater. It’s inexpensive and may very well make the difference in how quickly and at what price you sell your home.
Trend #2: Small Homes Selling Faster Than Large Homes
Larger, more expensive homes now have a 20-month backlog in inventory. They cost more and require a larger financial commitment. According to the National Association of Home Builders (NAHB), the median home size dropped from 2,300 to 2,100 square feet since 2007.
How can I take advantage?
If you have a large home, don’t wait until prices dip further; put it on the market now. The major key to getting it sold now is price. Keep the price competitive, and start out low enough so that you won’t have to drop the price more than once. This is a red flag for buyers.
If you have a smaller home for sale in Nevada County, you’re already set to take advantage. People also want to lower their energy bills, which usually happens with a smaller home. Market these advantages for a better chance of selling.
If you want to sell your home, it helps to keep up with the housing trends and look at each one to see how you can take advantage of it.
If you’re trying to sell your home, I can help. Call me at 530-913-2019 or email me at teresaprock@hotmail.com for more information.
If you have a home for sale in Nevada County, keeping an eye on the trends can greatly increase your chances of selling, no matter what the area. Here are two of the biggest trends:
Trend #1: Home Prices Staying Down
Home inventories are slowly creeping back up, and another 3 million distressed homes are expected to be foreclosed on this year. As well, one-fourth of current homeowners are now underwater with their mortgages, and 18% of borrowers are choosing to walk away. In short, stressors on the current housing market may very well push national median prices down another 5%, as mentioned above.
How can I take advantage?
With the glut of foreclosed homes, they’re likely to be your highest competition. That means competing in price could be disastrous. Instead, play up the advantages of your home. For instance, foreclosed homes may need a lot of fixing up. To compete, make sure your home is inspected and fixed up before it’s listed. Once you know there aren’t a lot of problems add a one-year warranty for the buyer that covers fixes such as the furnace or water heater. It’s inexpensive and may very well make the difference in how quickly and at what price you sell your home.
Trend #2: Small Homes Selling Faster Than Large Homes
Larger, more expensive homes now have a 20-month backlog in inventory. They cost more and require a larger financial commitment. According to the National Association of Home Builders (NAHB), the median home size dropped from 2,300 to 2,100 square feet since 2007.
How can I take advantage?
If you have a large home, don’t wait until prices dip further; put it on the market now. The major key to getting it sold now is price. Keep the price competitive, and start out low enough so that you won’t have to drop the price more than once. This is a red flag for buyers.
If you have a smaller home for sale in Nevada County, you’re already set to take advantage. People also want to lower their energy bills, which usually happens with a smaller home. Market these advantages for a better chance of selling.
If you want to sell your home, it helps to keep up with the housing trends and look at each one to see how you can take advantage of it.
If you’re trying to sell your home, I can help. Call me at 530-913-2019 or email me at teresaprock@hotmail.com for more information.
Friday, April 9, 2010
3 Tips for a Better Deal on Nevada County Real Estate
As a buyer in this buyers’ market, there are plenty of opportunities to get great Nevada County real estate at rock bottom prices. Because of the large amount of housing inventory throughout the nation, home sellers (those who recognize the level of competition, anyway) are much more willing to negotiate.
If you’re looking for the perfect piece of Nevada County real estate, here are a few tips to help you get a great price:
Stay Updated
Looking online is a great place to start. However, be aware that you have a large possibility of getting outdated information. You can find a beautiful dream home and contact the agent only to find that the listing has expired or the house has sold. Stay updated. Ask your Nevada County real estate agent to register your email address for daily MLS (multiple listing service) updates so you can get information as soon as it comes out.
Visit Homes with Reduced Pricing
Sometimes you may see a home that has more than one price reduction. For many, this is a sign that something is wrong with the house. Today, there’s a great possibility that there’s nothing wrong and the homeowner is simply trying to get the home sold in a competitive market. Tour the homes with recent price reductions as well as those on the market for more than 30 days. These home sellers may be more interested in selling for lower prices.
Look for Possible Negotiation Points
Even homes with higher prices may be worth looking at, due to the many ways you and your real estate agent might find to negotiate. For instance, it’s always wise to get a home inspection before signing the contract. Depending on what the home inspector finds, you may be able to negotiate for lower closing costs or a lower price.
Right now, it’s important to remember that just because a house is listed at a specific price doesn’t mean that price can’t change. If you’re a buyer interested in Nevada County real estate, whether as your personal residence or an investment, take a chance. Find out how low buyers will go!
If you’re looking for a great price on a great home, I can help. Call me at 530-913-2019 or email me at Teresaprock@hotmail.com for more information.
Links:
Large amount of housing inventory
http://www.upi.com/Real-Estate/2010/03/24/Inventory-Rose-in-February/3001269446591/
If you’re looking for the perfect piece of Nevada County real estate, here are a few tips to help you get a great price:
Stay Updated
Looking online is a great place to start. However, be aware that you have a large possibility of getting outdated information. You can find a beautiful dream home and contact the agent only to find that the listing has expired or the house has sold. Stay updated. Ask your Nevada County real estate agent to register your email address for daily MLS (multiple listing service) updates so you can get information as soon as it comes out.
Visit Homes with Reduced Pricing
Sometimes you may see a home that has more than one price reduction. For many, this is a sign that something is wrong with the house. Today, there’s a great possibility that there’s nothing wrong and the homeowner is simply trying to get the home sold in a competitive market. Tour the homes with recent price reductions as well as those on the market for more than 30 days. These home sellers may be more interested in selling for lower prices.
Look for Possible Negotiation Points
Even homes with higher prices may be worth looking at, due to the many ways you and your real estate agent might find to negotiate. For instance, it’s always wise to get a home inspection before signing the contract. Depending on what the home inspector finds, you may be able to negotiate for lower closing costs or a lower price.
Right now, it’s important to remember that just because a house is listed at a specific price doesn’t mean that price can’t change. If you’re a buyer interested in Nevada County real estate, whether as your personal residence or an investment, take a chance. Find out how low buyers will go!
If you’re looking for a great price on a great home, I can help. Call me at 530-913-2019 or email me at Teresaprock@hotmail.com for more information.
Links:
Large amount of housing inventory
http://www.upi.com/Real-Estate/2010/03/24/Inventory-Rose-in-February/3001269446591/
Bent Metal Winery Grand Opening!
Bent Metal Winery~ GRAND OPENING APRIL 2010
Outstanding Sierra Foothills wines produced from select Sierra Foothills vineyards.
Located four (4) short miles from historic downtown Grass Valley. Family owned and operated.
Stop by, relax and enjoy some of the best wine I have ever tasted! Live music from 1-5 by Ludi Hinrichs , and Chicken Bones. Check out their website for Wine Sales & Upcoming Events!
BENT METAL WINERY
14364 McCourtney Road
Grass Valley, California
530-559-9533
Website: www.BentMetalWinery.com
Email: getbent@bentmetalwinery.com
Outstanding Sierra Foothills wines produced from select Sierra Foothills vineyards.
Located four (4) short miles from historic downtown Grass Valley. Family owned and operated.
Stop by, relax and enjoy some of the best wine I have ever tasted! Live music from 1-5 by Ludi Hinrichs , and Chicken Bones. Check out their website for Wine Sales & Upcoming Events!
BENT METAL WINERY
14364 McCourtney Road
Grass Valley, California
530-559-9533
Website: www.BentMetalWinery.com
Email: getbent@bentmetalwinery.com
Wednesday, April 7, 2010
Nevada County Real Estate, Buyers and Technology
Technology has improved our lives over the last ten years, but it’s also caused some problems along the way for Nevada County real estate buyers.
As a buyer, you naturally want to take advantage of every tool and service available to make it easier to find the home of your dreams. However, the Internet, which is one of the most common places for people to shop for Nevada County real estate nowadays, has also become a place where the unscrupulous hang out. You can’t believe everything you read online, even when it comes to shopping for homes online.
If you’re trying to find a home, here are two things you need to be aware of:
Home Valuation Sites
Many potential buyers find an interesting home and then research the home value. This is commendable and just plain good sense. You want to make sure you’re not overpaying. Thanks to the Internet, we have sites like Zillow and Realtor.com that provide home valuations.
The problem is that these sites hardly ever agree on the home value. They can differ as much as 20% or more. While home valuation sites are an excellent place to get a ballpark estimate, you shouldn’t base your buying price on their information alone. Hire a reputable Nevada County real estate agent who knows the surrounding area and recent sale prices.
Dream Home or Nightmare
One of the best things to happen for real estate agents and sellers alike is the ability to post digital photos and walk-through videos of the homes they’re selling. This is also great for you, as the buyer, because you can view the homes without going anywhere.
Unfortunately, many buyers take those images and videos at face value. Thanks to some high-tech graphics programs, however, you can’t guarantee that what you see is what you get. Videos and images can both be manipulated to show you the best face of any piece of property.
Any time you see a home online that you’re interested in, it’s a good idea to check Google Maps and use the Street View option. At the very least, you can usually see the front and sides of the home. If you’re still interested, visit the home in person, or, if that’s not possible for some reason, ask your Nevada County real estate agent to visit the home and take pictures for you.
If you’re trying to find your dream home, I can help. Call me at 530-913-2019 or email me at Teresaprock@hotmail for more information.
Links:
Shopping for homes online
http://www.finweb.com/real-estate/how-to-shop-for-homes-online.html
Zillow
http://www.zillow.com/
Street View
http://maps.google.com/help/maps/streetview/
Searching for Homes
http://www.realestateinnevadacounty.com/index.html
As a buyer, you naturally want to take advantage of every tool and service available to make it easier to find the home of your dreams. However, the Internet, which is one of the most common places for people to shop for Nevada County real estate nowadays, has also become a place where the unscrupulous hang out. You can’t believe everything you read online, even when it comes to shopping for homes online.
If you’re trying to find a home, here are two things you need to be aware of:
Home Valuation Sites
Many potential buyers find an interesting home and then research the home value. This is commendable and just plain good sense. You want to make sure you’re not overpaying. Thanks to the Internet, we have sites like Zillow and Realtor.com that provide home valuations.
The problem is that these sites hardly ever agree on the home value. They can differ as much as 20% or more. While home valuation sites are an excellent place to get a ballpark estimate, you shouldn’t base your buying price on their information alone. Hire a reputable Nevada County real estate agent who knows the surrounding area and recent sale prices.
Dream Home or Nightmare
One of the best things to happen for real estate agents and sellers alike is the ability to post digital photos and walk-through videos of the homes they’re selling. This is also great for you, as the buyer, because you can view the homes without going anywhere.
Unfortunately, many buyers take those images and videos at face value. Thanks to some high-tech graphics programs, however, you can’t guarantee that what you see is what you get. Videos and images can both be manipulated to show you the best face of any piece of property.
Any time you see a home online that you’re interested in, it’s a good idea to check Google Maps and use the Street View option. At the very least, you can usually see the front and sides of the home. If you’re still interested, visit the home in person, or, if that’s not possible for some reason, ask your Nevada County real estate agent to visit the home and take pictures for you.
If you’re trying to find your dream home, I can help. Call me at 530-913-2019 or email me at Teresaprock@hotmail for more information.
Links:
Shopping for homes online
http://www.finweb.com/real-estate/how-to-shop-for-homes-online.html
Zillow
http://www.zillow.com/
Street View
http://maps.google.com/help/maps/streetview/
Searching for Homes
http://www.realestateinnevadacounty.com/index.html
Tuesday, April 6, 2010
April 15th ~ An Important Date for Nevada County Homes for Sale
April has a lot of important and semi-important dates in it. The tax deadline, Good Friday and Easter are just a few. What is April 5th, though, and what does it have to do with Nevada County homes for sale? Well, the biggest news is that the government has stepped into real estate and short sales.
Home sales are down nation-wide, despite the Obama administration’s efforts with the first-time buyer’s tax credit. Many homebuyers are waiting for a better interest rate or to see if home prices will drop more. Meanwhile, owners with Nevada County homes for sale are preparing for the spring selling season, without any idea whether they’ll actually be able to sell or not.
Part of the reason for this situation is because of the depreciated housing values. For instance, many potential buyers want to take advantage of the repeat buyer’s tax credit, but can’t. They currently own a home that’s facing foreclosure, are trying to sell that home, but can’t because it’s underwater. This puts a wrench in the whole market.
The government’s solution is short sale. There’s always been the option for those facing foreclosure to opt for short sale, but (thanks, in part, to the many scams out there) few choose this option. The Obama administration has decided that, if they can’t help with foreclosure, they’ll pay people to accept short sale.
Starting April 5, 2010, the government is encouraging delinquent borrowers who can’t be helped through loan modification programs to go through a streamlined short sale process. Many potential short sellers have gotten offers the lenders won’t agree to, which this program called HAFA (Home Affordable Foreclosure Alternatives), is geared towards fixing. Here’s how:
The servicing bank that allows the short sale gets $1,000.
The homeowner gets $1,000 to go towards a second loan.
The homeowner gets $1,500 in relocation assistance.
Even with this program, lenders are wary of short sales. Depending on the price of the short sale, there’s a possibility that lenders could lose a large amount of money. However, under the new program, real estate agents will be working with the lender to determine the value of the home and what the minimum price should be. If the short sale offer meets or exceeds that minimum, the lender has to accept it.
The hope is that this program will slow the tide of foreclosures, free homeowners up to become repeat buyers, sell more homes and, ultimately, improve the flow of the real estate market. The good news about all this is if the program does even a quarter of what the administration plans, there may not be enough Nevada County homes for sale to go around!
Home sales are down nation-wide, despite the Obama administration’s efforts with the first-time buyer’s tax credit. Many homebuyers are waiting for a better interest rate or to see if home prices will drop more. Meanwhile, owners with Nevada County homes for sale are preparing for the spring selling season, without any idea whether they’ll actually be able to sell or not.
Part of the reason for this situation is because of the depreciated housing values. For instance, many potential buyers want to take advantage of the repeat buyer’s tax credit, but can’t. They currently own a home that’s facing foreclosure, are trying to sell that home, but can’t because it’s underwater. This puts a wrench in the whole market.
The government’s solution is short sale. There’s always been the option for those facing foreclosure to opt for short sale, but (thanks, in part, to the many scams out there) few choose this option. The Obama administration has decided that, if they can’t help with foreclosure, they’ll pay people to accept short sale.
Starting April 5, 2010, the government is encouraging delinquent borrowers who can’t be helped through loan modification programs to go through a streamlined short sale process. Many potential short sellers have gotten offers the lenders won’t agree to, which this program called HAFA (Home Affordable Foreclosure Alternatives), is geared towards fixing. Here’s how:
The servicing bank that allows the short sale gets $1,000.
The homeowner gets $1,000 to go towards a second loan.
The homeowner gets $1,500 in relocation assistance.
Even with this program, lenders are wary of short sales. Depending on the price of the short sale, there’s a possibility that lenders could lose a large amount of money. However, under the new program, real estate agents will be working with the lender to determine the value of the home and what the minimum price should be. If the short sale offer meets or exceeds that minimum, the lender has to accept it.
The hope is that this program will slow the tide of foreclosures, free homeowners up to become repeat buyers, sell more homes and, ultimately, improve the flow of the real estate market. The good news about all this is if the program does even a quarter of what the administration plans, there may not be enough Nevada County homes for sale to go around!
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