Foreclosures on the Rise. The rate at which borrowers are foreclosing on their mortgages has doubled since last year, as high-risk financing has become the norm for home buyers in San Diego County. Local experts wonder whether the recent spike in foreclosures is a harbinger of horrors to come or of the much-hyped "soft landing" for the local real estate market. Click here to read more.
Real Estate Tips: If you're staying put, keep an eye on your mortgage...and keep your cool. Just because you aim to watch the next real estate cycle from the comfort of your living room doesn't mean you don't need a plan. Here are three things to keep in mind as mortgage rates rise and markets soften. Keep an eye on your mortgage, don't bank on your house to fund your retirement, and keep your cool. Click here to read more.
Real Estate Tips: If you're a buyer, take your time...and don't forget to ask for goodies. True, home prices still are exorbitant by most historical standards. But the market is moving in buyers' favor - here's how to capitalize on that shift. Don't let the asking price be your guide. Many sellers are clinging to bloated pricetags that are based on what homes were fetching at the peak rather than what's realistic today. Take your time. In the heat of the boom, home shoppers committed to properties within minutes of touring them. Although sellers still have the upper hand in some markets, in most, time is on your side. Some of the things you can use the extra time to delve into more deeply: the school system; zoning issues that could change the value of homes in the coming years; the job picture; and recent property tax increases, as well as the outlook for more. Once you're ready to make an offer, again, don't be hasty. Hire a professional to conduct a careful inspection, and follow up by getting estimates for dealing with any problems he uncovers - repairing a leaky roof or replacing an old furnace. All this is part of the cost of carrying a house, and you need to factor it into your budget before you know what you can really afford to pay. Ask for goodies. Sellers who won't budge on the asking price may be willing to make other concessions. This is especially true when you're buying from homebuilding companies, which need to keep prices stable to avoid angering recent purchasers. To move product these days, they're throwing in all sorts of upgrades. Click here to read more.
Real Estate Tips: If you're a seller or speculator, price it right, and don't be afraid of agents. Plus: a word of caution for flippers out there. Each day brings fresh evidence of peaking home prices. But, with the right strategies, sellers can still command top dollar. Price it right. The worst mistake a seller can make in a softening market is to overprice a home. Even putting a high price on your home to "test the market" for a few weeks (with the notion that you can always lower it later) is a bad idea. Set the stage. In a faltering market you need to stand out. That's where something called staging comes in - that is, sprucing up your home in a way that encourages prospective buyers to envision themselves living there. The first step is to rent a storage locker and fill it with all that clutter from the attic, basement, and garage. Also remove any furniture that makes your home look overcrowded. And you may want to sweep your house clean of such personal items as wedding photos, framed diplomas, or children's fingerpaintings - it's difficult for prospective buyers to see your home as their castle if your family's signature is all over it. Tone down unique decor. That nude oil painting hanging in the foyer may turn off buyers. Rooms painted in unusual colors should be redone in neutral tones. Hire an agent. You may hate the idea of parting with 6 percent of your home's value, especially when you're facing the prospect of getting less than you dreamed of. And with the Internet making do-it-yourself sales easier than ever, you may be tempted to dispense with an agent. But in a tougher environment, marketing is everything, and an experienced agent--that is, one who didn't recently jump into the real estate gold rush - can be invaluable in helping you price your home correctly and in getting it noticed by prospective buyers. An agent can also steer you through the tortuous sales process and keep a deal on track when the inevitable glitches crop up. If you're a speculator ... get out now. In 2005, investors accounted for 28 percent of the housing market, up from 23 percent in 2004, according to the National Association of Realtors. But the game of buying a home - or two or three or 17 - holding it for a bit, and then flipping it for a handsome profit has pretty much played itself out. "Get out as fast as possible," says Mark Zandi, chief economist with Moody's Economy.com. "The market is moving away from the investor, and even when it stabilizes, I don't think it's going to come back anytime soon." So don't repeat the mistake that tech investors made during the dot-com bubble. As stocks spiraled downward, they held on, thinking that the market would bounce back quickly. Just accept that you're going to lose money on that Miami deal. Click here to read more.
~Tina Jan~
Coldwell Banker Kivett-Teeters
1655 E. Sixth St.
Beaumont, CA 92223
Work: 951-845-5520 Ext. 105
Fax: 951-845-4916
Cell: 909-446-2666
Toll-Free: 1-877-TINAJAN
tina.jan@coldwellbanker.com
www.tinajan.com
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