Nevada County Real Estate News

Fallen Foreclosures

Foreclosure filings have fallen dramatically in California from a year ago, but it's hard to say why, according to a new report from real estate information service MDA DataQuick.

Lenders filed 81,054 notices of default (NODs) during the first three months of the year, a 4.2 percent decline from the fourth quarter of 2009 and a 40.2 percent drop from the record level seen a year ago, DataQuick said.

It's unclear how much of the drop is due to shifts in market conditions and how much is because of changes in lenders' policies, DataQuick President John Walsh said in a company announcement.

"We are seeing signs that the worst may be over in the hard-hit entry-level markets, while problems are slowly spreading to more expensive neighborhoods," Walsh said. "We're also seeing some lenders become more accommodating to workouts or short sales, while others appear to be getting stricter about delinquencies. It's very noisy out there."

In ZIP codes where median home sale prices were below $500,000, mortgage-default filings fell 5.8 percent from the prior quarter and nearly 43 percent from a year earlier.

But in ZIP codes with median prices above $500,000, mortgage defaults were up 1.5 percent from quarter to quarter, and saw a less dramatic year-over-year decline of 19 percent.

Default rates remain much higher in ZIP codes with median prices below $500,000, however -- 10.5 NODs per 1,000 homes, compared with 4.5 NODs per 1,000 homes in areas with median prices above $500,000.

Mortgages were least likely to go into default in Marin, San Francisco and San Mateo counties, DataQuick said, and most likely to default in Merced, Stanislaus and San Joaquin counties.

It was taking an average of 7.5 months for homes to make their way through the foreclosure process, compared with 6.8 months a year ago. Lenders may be coping with backlogs, or taking extra time to pursue loan modifications and short sales, DataQuick said.

Not all homes that are foreclosed on complete the process. A total of 42,857 houses and condos were lost during the first quarter, according to DataQuick's count of the number of trustees deeds recorded.

That's a 16.1 percent decline from the fourth quarter of 2009, and a 46.1 percent drop from the record 79,511 trustee deeds recorded in the third quarter of 2008.

DataQuick estimated that foreclosure resales accounted for 42.6 percent of all California resale activity during the first quarter, up from 40.6 percent during the final three months of 2009 but down from a peak of 57.8 percent a year ago. The foreclosure share of resale activity ranged from from 13.8 percent in San Francisco to 67.7 percent in Merced County.

By Inman News, April 21, 2010.

Good Time to Buy?

Forbes.com - In their article, "Ten Things to Buy Before the Economy Improves," Forbes says, "At the top of the list: housing.  THis may be the best time in a generation to buy a home."

Kiplinger's Personal Finance - "It's a good time to snag a bargain if you're confident in your job prospects and you don't plan to sell for at least five years."

Overall the public is upbeat about buying a home in the current economic climate. 

Information provided by Jeff Kuns

1st Time Buyer Credit....Take Advantage!

How the First-time buyer credit works.

I have had several calls recently about the $8,000 First-time buyer tax credit.

But I didn't realize that if you normally get a tax refund, you can add the $8,000 to it.

Yes, in CASH!

CNN Money recently came out with some helpful clarification on this tax credit.

The article describes three scenarios:

Scenario 1: Your final tax liability is normally $6,000. You've had taxes withheld from every paycheck and at the end of the year you've paid Uncle Sam $6,000. Since you've already paid him all you owe, you get the entire $8,000 tax credit as a refund check.

Scenario 2: Your final tax liability is $6,000, but you've overpaid by $1,000 through your payroll withholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.

Scenario 3: Your final tax liability is $6,000, but you've underpaid through your payroll withholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.

That is big!

You can read the entire article here
http://money.cnn.com/2009/02/13/real_estate/homebuyer_tax_credit_finalized/index.htm

Remember, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009 in order to get the refund.

5 Fabulous Reasons to Buy Right NOW!

1.     Low Home Prices!  Prices are at the lowest they’ve been in years.  Those who buy now are likely to see the largest growth in their home’s equity.

2.     Large Selection of Inventory.  There is currently a large selection of inventory in most price ranges.  This is a good position for a buyer to be in…. you can get the best possible price on the property that is right for you. 

3.     Low Interest Rates!  In an effort to stimulate the market, the federal government has helped to keep the lending rates down. 

4.     Motivated Sellers!  Because of the current market conditions many home sellers are extremely motivated to sell their home. 

5.     Buyer’s Market.  This is one of the strongest Buyer’s market’s we’ve had in years!  With low home prices, low interest rates, motivated Sellers and a large selection of inventory….NOW Is The Time To Buy!

Don’t look back and say…. “I wish I had bought back in…”

Tips to be a Successful Seller

1.  Committ to selling.  In a buyer's market with inflated inventories, short sales, and repos, there is no place for sellers who want to 'test the waters'.  Money is only a secondary motivator to the serious seller.

2.  Price it Right! Ask a few agents for their opinion.  Consider an appraisal.  Focus on both current competition and current comps.

3.  Staging is a necessity.  Clutter eats equity.  Buyers 'horriblize' defects.  A faded front door suggests deferred maintenance.  A stucco crack may infer expansive soil.

4.  Consider a Keysafe and Sign.  Lock boxes are electronic and enable the listing agent to see who is showing the property.  Homes with easy access get more showings.  The people in your area  might even have a friend or relative who wants to be their new neighbor.

5.  Absorb all feedback.  If one buyer says something, others are thinking the same thing.  If several similar comments are made, do something about the problem. 

And Remember!  Time is of the essence.  This means sooner is better than later.  Do not underestimate the 1^st  Buyer.  They may be the best buyer!  They may be the only buyer for a long time.  A lower asking price may net a seller more money in the long run.

6 Biggest Real Estate Myths

1. Most Homes are Sold by the Largest Companies - False

2. My Agent is the One Who Will Sell my Home - False
       -Less than 1% actually find their own buyer

3. My House Will Sell Through an Open House - False
       -Less than 1% of homes sell this way

4. My House Will Sell Because of the Flyer - False
       -Less than 1% of homes sell this way

5. My House Will Sell Because of an ad - False
       -Less than 1% of homes sell this way

6. My House Will Sell Because of a Virtual Tour - False
       -Less than 1% of homes sell this way

6 Biggest Real Estate Truths

1. The Biggest Determining Factor for 95% of sales price  - TRUE!
2. Multiple Listing Service Provides all Exposure needed - TRUE!
3. My Agent is There To Protect my Interests! - TRUE!
4. My Agent is There To Assure Legal Procedure is Followed - TRUE!
5. My Agent is There To Provide Expertise - TRUE!
6. My Agent is There To Facilitate a Smooth Transactioin - TRUE!

Realtor V.S. Licensed Real Estate Agent

So, you’ve decided to sell or buy a home.  The first step is to decide on what real estate professional to guide you carefully through this important transaction.  According to the California Association of Realtors (CAR), last year more than 90% of California home buyers and sellers bought or sold their homes with the assistance of a real estate agent.  So what exactly differentiates a “Realtor®” from the rest of the real estate professionals?  And what does “Realtor” with the little “r” with a circle really mean?

First of all not all real estate professionals are Realtors®.  By definition a Realtor® is a real estate professional who is a member of the National Association of Realtors®, (NAR).  NAR holds us to a strict code of ethics, and requires a higher level of obligations and professional development, including additional, continuing education.  These obligations go over and above those mandated by law.  Under the code of ethics, Realtors® put the needs and well-being of their clients above anything else.  We are held to a strong commitment of fairness, integrity and moral conduct in business relations.  We are to avoid exaggeration, misrepresentation, or concealment of relevant facts relating to the property.  In addition, should a dispute arise between a home buyer or seller and their realtor®, members of the association agree to take part in arbitration.

On your checklist to qualify and choose a real estate professional, it may be a good idea to strongly consider using a Realtor® to get the most out of your transaction.

Credit Scores

Ever wonder how to improve your credit score?   How do inquiries really affect your credit score?   What is included in your credit score?   All of these questions can be answered by visiting www.myfico.com.  

In fact, recent legislation has mandated that the credit bureaus allow you to see your credit report for FREE!     

Once a year you can visit www.annualcreditreport.com and get a copy of your report from all three major credit bureaus.   You can even dispute any incorrect information right at the bureaus’ website.    For your FREE booklet on credit, call my office today!

Tips for Making Sure your Contractor Measures Up

Myths About Credit