Heat melting your budget? A few tips. Start with the obvious: Homeowners can save about 10% or more on power bills simply by turning the thermostat setting up 4 degrees, from 78 to 82, for example, according to the Lawrence Berkeley National Lab at UC Berkeley. Homeowners can figure out their family's energy savings by logging on to the Berkeley lab's Home Energy Saver website, at hes.lbl.gov. Enter your ZIP Code and other household facts, and the site will calculate the energy savings and time period it will take to achieve it. Maintaining appliances, especially heating and air units, is one of the easiest and least expensive ways to cut costs. Changing filters regularly and wrapping the ducts in R-6 insulation help. Save another 7% by sealing air-conditioner ducts to reduce leakage and 5% by adding more ceiling insulation. "Night ventilation" saves energy and dollars too. Turn off the air conditioning in the early evening, when temperatures drop. Then turn on window fans to blow out the accumulating warmer air and draw in the cooler evening air. Keep the windows open until morning, then shut them again and turn on the air. Source.
Mixed picture for housing prices. Berson thinks the Federal Reserve "is not done tightening" the ratchet on interest rates, and will move up short-term rates again in August. After that, he says, rates are likely to stabilize, bringing at least a temporary cessation to rising home mortgage rates. He expects average home price appreciation, which had been running at a double-digit annual clip nationally for the last year, to drop to 3% or below by the end of the year. (On this point Berson is more bearish than most of his housing and mortgage industry colleagues, who project average appreciation in the 4% to 6% range.) If speculative investors dump rental houses and second homes purchased during the boom years onto the market later in larger than expected numbers, Berson believes price appreciation could drop to a 1% or 1.5% annual rate — a level not seen since the recession years of the early 1990s. For sellers, it means getting acquainted with the toolbox of techniques developed during the down periods of the 1970s, '80s and '90s to move houses. For example, seller financing, where you take back a second note on concessionary terms to push the sale, take back a first note if you can afford to, or "buy down" your purchaser's interest rate to lower monthly payments. Experienced real estate brokers can fill you in on these strategies, along with their pros and cons. They can also guide you on how to price a home realistically to sell now, not five months from now. For buyers, down markets often offer exceptional opportunities to acquire real estate at prices and on terms that were unthinkable just a few years before. Again, the message is: Don't go to sleep. To the contrary, get off your duff and scour the market for properties that may never be cheaper, or even available. Heads-up real estate is, as the industry adage goes, the art of the possible. You've simply got to adapt to the changed market conditions. And probably work a little harder. Source.
'What-if' tool lets you explore the credit score consequences. The computer programs don't repair a damaged score; they allow you to tinker with tactics and devise a plan. ScoreWizard, which also automatically scans credit files for opportunities to raise credit scores, is one of a number of powerful simulators that would-be borrowers can use to test various scenarios. Another is ScoreRight, which uses common assumptions to suggest ways to increase your score. A third system, CreditXpert, lets you use its predictive capabilities to test any combination of options. Unfortunately, you can't access these or other what-if calculators directly. Rather, you must go through a mortgage broker or loan officer to use the programs, which are marketed to industry professionals as tools to help them attract and keep clients. There's nothing wrong with that. After all, a broker or loan rep offering to help borrowers reach their target credit score quickly and effectively is a sign he or she has their best interests at heart. Source.
Seven Strategies for Successful Mixed-Income Properties. Successful mixed-income apartment housing initiatives have most of the seven key ingredients:
1. A realistic operating budget and adequate financing.
2. Neighborhoods aligned with target markets (properties should be built in neighborhoods that are accustomed to racial diversity and have amenities such as grocery stores, convenient transportation, and schools within walking distance).
3. Curb appeal higher than that of the market niche. Properties should be well-maintained and indistinguishable from those that rent at 100 percent market rate.
4. Property managers who are attentive and proactive.
5. Leasing practices that attract market rate renters.
6. Marketing strategies that are continually adjusted as the market evolves.
7. Amenities and services that match those desired by the community’s target markets.
Taking care of your budget, identifying your target market, aggressively marketing your product to potential customers and making course corrections when needed, are all that any business has to do to succeed. The research shows that it can’t be any different in the affordable housing sector. Source.
New Legislation Will Increase Access to FHA Loans. The U.S. House of Representatives passed "The Expanding American Homeownership Act,” which will increase homeownership opportunities for millions of Americans by modernizing the Federal Housing Administration (FHA) and returning it to its traditional role as an important financing option in today’s housing market. Source.
Commissions Significantly Decline. Agents openly compete for local listings from potential sellers and for potential buyers on the basis of reputation, level of service and price. On a national basis, average commissions have significantly declined since 1991. There are approximately 2.6 million real estate licensees in the United States. Nearly 1.3 million of these are Realtors®. All Realtors® are members of NAR and subscribe to a strict code of ethics. There are a large number of firms competing in every market, and a growing number of largely independent contractor agents ensuring that the real estate industry remains fiercely competitive. In the most recent NAR survey of homebuyers, 77 percent reported that they used the Internet to search for homes. The report also found that of those homebuyers who use the Internet to search for a home, 93 percent of them still use a real estate agent. Recent claims that NAR is limiting competition, protecting high commissions and limiting access to the listing information on the Internet are simply not true. A close look at the real estate industry shows that it is more competitive than ever, and access to information is at an all-time high. Realtors® add value to the transaction – not because we have any unfair advantages – but simply because our members share an unparalleled dedication and love for what they do. Source.
Be Wary of Signs and Ads Offering To Pay Cash for Your Home. Rule Number One for Evaluating Too-Good-To-Be-True-Sounding Deals: Don't think about what's in it for you. Think about what's in it for the other guy. In this case, why would someone offer fistfuls of moolah to a stranger, sight unseen, for a place that could be crawling with termites, dripping with mold, or overlooking the freeway? Would it make any sense at all unless the buyer could nab the house at a huge discount and flip it for a quick profit -- or find another way to take advantage of the seller's desperation? As a rule of thumb, Mr. Myers writes, skilled foreclosure investors buy properties at savings of 20% to 50% off retail value. Some may offer a slightly better deal, but only if the seller finances the cost of needed repairs. Compare that to the 5% to 10% deduction from asking prices that real-estate agents say buyers typically seek in a balanced market (that is, one that favors neither sellers nor buyers), and you can see that wholesale investors are really only a last-ditch alternative for most homeowners. While it may be tempting to take such an offer, know that you usually have other options. Even if you're far behind on your mortgage payments, most lenders are glad to work out a repayment schedule with you -- in fact, Fannie Mae and Freddie Mac actually require their lenders to pursue one. And if you plan to sell your house, they may even throw in a little extra money to help put it in saleable shape, especially if the upgrade will bring an outdated feature up to current building codes. Then, check out comparable homes that have recently sold, take a deep breath, and set your home's price a bit below market value. Experienced real-estate brokers say that doing so signals to buyers that your house is a bargain, and may spark a bidding war, even in a down market. Source.
Sold at First Sight. This shift in market psyche means that now more than ever home sellers and their brokers must make a good first impression by enhancing that all-important “curb appeal” — the comely front porch or neat rows of impatiens or hydrangeas that beckon buyers to take a look inside. Some people are getting help from landscapers, while others are turning to professional home stagers or stylists to conjure up that extra outdoor pizazz. Landscape architects and real estate brokers and appraisers agree that the exterior appearance and landscaping not only distinguish one house from another on the market but also enhance the resale value and, in many cases, seal a deal faster. "Good landscaping could add up to 15 to 20 percent to the value,” said Nancy C. Somerville, the executive vice president of the American Society of Landscape Architects, citing a number of studies over the last few years. “Conversely, if the landscape is poor, you could expect a sale price of 8 to 10 percent below comparable homes with good landscaping." Not all outside projects have the same potential payback. One of the more recent landscaping studies, conducted by Laval University in Quebec and published four years ago in The Journal of Real Estate Research, found that landscaped patios added 12.4 percent to the market value of a house, while hedges used as fences added just 3.6 percent. And different buyers want different things. The Quebec study found that retirees generally preferred yards with plenty of trees, which have the added value of helping to reduce energy bills by blocking summer sun and winter winds. Younger adults, it said, preferred more lawn. Source.
~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
Monday, July 31, 2006
Saturday, July 15, 2006
Probate Information from Bob Bruss.
Inman News Features: Probate properties offer profit potential. Lack of market exposure key to finding bargains.
Friday, July 14, 2006
Article by Bob Bruss.
Are you a real estate agent looking for listings with little or no competition? Are you a home buyer searching for a below-market-price residence few other buyers know about? Can you keep a secret?
If you answered "yes" to two out of those three key questions, keep reading.
I'm referring to the little-known "underground" real estate market of probate properties. Probate is the name given to the court procedure to distribute assets of a deceased person, whether that individual died with or without a written will.
Although there are several key methods to avoid probate costs and delays, such as use of a revocable living trust or holding title as joint tenants with right of survivorship, each year approximately six million new U.S. probate cases are filed. Not all these estates involve real estate, but several million do.
WHY CONSIDER PROBATE PROPERTIES? The obvious major reason is to acquire a property at a bargain below-market purchase price with little or no competition. If you are a licensed realty agent, and if you understand the local probate property procedures, you can obtain the listing from the estate executor or administrator with virtually no competition.
Unless there are probate problems, such as a will contest or unpaid creditor problems, most real estate left by a deceased owner can be sold by the estate representative without legal complications.
"Exposure to the real estate marketplace" is the enemy. That is the key message of the great book "Creating Wealth Through Probate" by James G. Banks (Dearborn-Kaplan Publishing Co., Chicago, 2005, $18.95, available in stock or by special order at local bookstores, public libraries and www.Amazon.com). Banks explains probate property secrecy usually results in a bargain sales price because there is little or no wide exposure for probate properties to the local real estate market.
FINDING PROBATE PROPERTIES ISN'T EASY. There are many reasons why properties owned by the estate of a deceased owner are sold. Reasons include the creditors must be paid, the heirs don't want the real estate they inherited, and estate taxes must be paid from the estate assets.
For example, several years ago my good friend David was named executor in the will of a deceased homeowner who left his house to relatives living in a distant city. The house of the deceased was in bad condition. David hired a local real estate broker, Mark, to market the house for sale to produce cash for the heirs. The broker arranged painting and cleaning the house at a cost of several thousand dollars. After the house was in marketable condition, Mark listed it for sale. It quickly sold at a slightly below-market price, which satisfied the heirs.
The result was the estate got rid of a less-than-perfect house, the heirs got cash from the sale of a house they didn't want, and the real estate agent earned a full sales commission.
To find potential probate property listings, real estate agents and investors need to be diligent. Sharp agents and investors clip the daily newspaper obituary notices, look for published legal notices to creditors and notices of petition to administer estates, check probate court public files to determine if the deceased left real estate to be probated, and check with estate executors and administrators to learn if real estate will be sold.
FOUR KEY PROBATE PROFIT OPPORTUNITIES. Whether you are a real estate agent looking for probate listings, an investor searching for a probate profit property, or a home buyer hoping for a bargain-price residence, there are four key profit opportunities:
1. BUY FROM THE ESTATE EXECUTOR AT A BIG DISCOUNT. Depending on the estate circumstances, such as whether the deceased left big debts to be paid from the sale of real estate, it may be necessary for the estate executor or administrator to sell the deceased's property. Most executors and administrators are "amateurs" so they usually want a quick, easy sale and are not motivated to get top dollar.
2. BUY FROM THE HEIRS AFTER THEY RECVEIVE PROPERTY TITLE. Another probate buying opportunity occurs after the title to the probate property is distributed to the heirs who often don't want to keep it.
For example, years ago I bought a house where the elderly owner died of natural causes. Many people don't want to buy such a property. But that didn't bother me. The house had been listed for sale many months with an excellent agent. Then I made my purchase offer of 10 percent cash down payment with a 90 percent mortgage to be carried back by the three heirs. Father Ward, priest at the local Catholic church and one of the heirs, liked my offer. He recommended his siblings accept it, which they did. The result was a satisfactory sale for all.
3. BUY AT A PUBLIC SALE OF THE PROBATE PROPERTY. If the deceased property owner left no will so a private real estate is usually not possible, the local Probate Court might order a public sale of the property. That often means the estate administrator will list the property for sale with a real estate agent, subject to confirmation by the Probate Court. Local procedures vary.
4. PUBLIC AUCTIONS BENEFIT SELLERS, NOT BUYERS. Farms and difficult-to-sell probate properties are frequently offered for sale at public auctions. Heavy bidding frequently results in sales prices at or above fair market value. If you want to purchase a bargain-price property, buying at an auction is usually not wise unless there are few other qualified bidders.
PROBATE PROPERTY PURCHASE PITFALLS. If you are interested in acquiring a probate property bargain, you need to know of several purchase pitfalls:
1. PROBATE SALES ARE "AS IS." Most probate property sales are "as is." That means the seller does not make any warranties or representations. The result is the seller has no duty to pay for any repairs due to defects. Because the estate seller usually is not familiar with the pros and cons of the property, the estate is in no position to disclose defects.
In other words, the probate property purchase rule is "caveat emptor" (let the buyer beware).
If the buyer wants to make the purchase offer conditional on a professional property inspection, a termite (pest control) report, or mortgage insurance contingency, such clauses must be specified in the purchase offer. Otherwise, the buyer has no recourse for undisclosed defects.
2. WORK WITH THE ESTATE EXECUTOR OR ADMINISTRATOR. These individuals usually want to get the estate closed as quickly as possible. If you express an interest in a specific property owned by the estate, chances are you can negotiate acquisition of the property if you adopt a cooperative and flexible attitude.
3. ASK IF THE ESTATE WILL FINANCE THE SALE. "It doesn't hurt to ask" is the rule if you want to buy a home or other probate property but financing is a bit difficult. In such a situation, don't hesitate to ask. Better yet, make your purchase offer with a clause providing the estate heirs shall carry back financing on the terms specified in terms you offer.
4. HAVE A PLAN FOR THE PROPERTY. To be a successful probate property purchaser, you need a plan. Maybe it is to live in the residence. Perhaps it is to fix it up and earn a huge resale profit for "flipping." Or perhaps you have grand ideas to develop the property for bigger and better uses.
SUMMARY: Most probate properties owned by a deceased property owner offer huge potential profit opportunities, whether you want to acquire that property for personal use or as a "quick flip" profitable property sale.
But it takes work and persistence. However, the rewards are extremely worthwhile, especially when repeated over and over. More details are in my special report, "Probate Property Profit Secrets Revealed," available for $5 from Robert Bruss, 251 Park Road, Burlingame, CA 94010 or by credit card at 1-736-1736 or instant Internet delivery at www.BobBruss.com.
(For more information on Bob Bruss publications, visit his
Real Estate Center). Source.
~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
Friday, July 14, 2006
Article by Bob Bruss.
Are you a real estate agent looking for listings with little or no competition? Are you a home buyer searching for a below-market-price residence few other buyers know about? Can you keep a secret?
If you answered "yes" to two out of those three key questions, keep reading.
I'm referring to the little-known "underground" real estate market of probate properties. Probate is the name given to the court procedure to distribute assets of a deceased person, whether that individual died with or without a written will.
Although there are several key methods to avoid probate costs and delays, such as use of a revocable living trust or holding title as joint tenants with right of survivorship, each year approximately six million new U.S. probate cases are filed. Not all these estates involve real estate, but several million do.
WHY CONSIDER PROBATE PROPERTIES? The obvious major reason is to acquire a property at a bargain below-market purchase price with little or no competition. If you are a licensed realty agent, and if you understand the local probate property procedures, you can obtain the listing from the estate executor or administrator with virtually no competition.
Unless there are probate problems, such as a will contest or unpaid creditor problems, most real estate left by a deceased owner can be sold by the estate representative without legal complications.
"Exposure to the real estate marketplace" is the enemy. That is the key message of the great book "Creating Wealth Through Probate" by James G. Banks (Dearborn-Kaplan Publishing Co., Chicago, 2005, $18.95, available in stock or by special order at local bookstores, public libraries and www.Amazon.com). Banks explains probate property secrecy usually results in a bargain sales price because there is little or no wide exposure for probate properties to the local real estate market.
FINDING PROBATE PROPERTIES ISN'T EASY. There are many reasons why properties owned by the estate of a deceased owner are sold. Reasons include the creditors must be paid, the heirs don't want the real estate they inherited, and estate taxes must be paid from the estate assets.
For example, several years ago my good friend David was named executor in the will of a deceased homeowner who left his house to relatives living in a distant city. The house of the deceased was in bad condition. David hired a local real estate broker, Mark, to market the house for sale to produce cash for the heirs. The broker arranged painting and cleaning the house at a cost of several thousand dollars. After the house was in marketable condition, Mark listed it for sale. It quickly sold at a slightly below-market price, which satisfied the heirs.
The result was the estate got rid of a less-than-perfect house, the heirs got cash from the sale of a house they didn't want, and the real estate agent earned a full sales commission.
To find potential probate property listings, real estate agents and investors need to be diligent. Sharp agents and investors clip the daily newspaper obituary notices, look for published legal notices to creditors and notices of petition to administer estates, check probate court public files to determine if the deceased left real estate to be probated, and check with estate executors and administrators to learn if real estate will be sold.
FOUR KEY PROBATE PROFIT OPPORTUNITIES. Whether you are a real estate agent looking for probate listings, an investor searching for a probate profit property, or a home buyer hoping for a bargain-price residence, there are four key profit opportunities:
1. BUY FROM THE ESTATE EXECUTOR AT A BIG DISCOUNT. Depending on the estate circumstances, such as whether the deceased left big debts to be paid from the sale of real estate, it may be necessary for the estate executor or administrator to sell the deceased's property. Most executors and administrators are "amateurs" so they usually want a quick, easy sale and are not motivated to get top dollar.
2. BUY FROM THE HEIRS AFTER THEY RECVEIVE PROPERTY TITLE. Another probate buying opportunity occurs after the title to the probate property is distributed to the heirs who often don't want to keep it.
For example, years ago I bought a house where the elderly owner died of natural causes. Many people don't want to buy such a property. But that didn't bother me. The house had been listed for sale many months with an excellent agent. Then I made my purchase offer of 10 percent cash down payment with a 90 percent mortgage to be carried back by the three heirs. Father Ward, priest at the local Catholic church and one of the heirs, liked my offer. He recommended his siblings accept it, which they did. The result was a satisfactory sale for all.
3. BUY AT A PUBLIC SALE OF THE PROBATE PROPERTY. If the deceased property owner left no will so a private real estate is usually not possible, the local Probate Court might order a public sale of the property. That often means the estate administrator will list the property for sale with a real estate agent, subject to confirmation by the Probate Court. Local procedures vary.
4. PUBLIC AUCTIONS BENEFIT SELLERS, NOT BUYERS. Farms and difficult-to-sell probate properties are frequently offered for sale at public auctions. Heavy bidding frequently results in sales prices at or above fair market value. If you want to purchase a bargain-price property, buying at an auction is usually not wise unless there are few other qualified bidders.
PROBATE PROPERTY PURCHASE PITFALLS. If you are interested in acquiring a probate property bargain, you need to know of several purchase pitfalls:
1. PROBATE SALES ARE "AS IS." Most probate property sales are "as is." That means the seller does not make any warranties or representations. The result is the seller has no duty to pay for any repairs due to defects. Because the estate seller usually is not familiar with the pros and cons of the property, the estate is in no position to disclose defects.
In other words, the probate property purchase rule is "caveat emptor" (let the buyer beware).
If the buyer wants to make the purchase offer conditional on a professional property inspection, a termite (pest control) report, or mortgage insurance contingency, such clauses must be specified in the purchase offer. Otherwise, the buyer has no recourse for undisclosed defects.
2. WORK WITH THE ESTATE EXECUTOR OR ADMINISTRATOR. These individuals usually want to get the estate closed as quickly as possible. If you express an interest in a specific property owned by the estate, chances are you can negotiate acquisition of the property if you adopt a cooperative and flexible attitude.
3. ASK IF THE ESTATE WILL FINANCE THE SALE. "It doesn't hurt to ask" is the rule if you want to buy a home or other probate property but financing is a bit difficult. In such a situation, don't hesitate to ask. Better yet, make your purchase offer with a clause providing the estate heirs shall carry back financing on the terms specified in terms you offer.
4. HAVE A PLAN FOR THE PROPERTY. To be a successful probate property purchaser, you need a plan. Maybe it is to live in the residence. Perhaps it is to fix it up and earn a huge resale profit for "flipping." Or perhaps you have grand ideas to develop the property for bigger and better uses.
SUMMARY: Most probate properties owned by a deceased property owner offer huge potential profit opportunities, whether you want to acquire that property for personal use or as a "quick flip" profitable property sale.
But it takes work and persistence. However, the rewards are extremely worthwhile, especially when repeated over and over. More details are in my special report, "Probate Property Profit Secrets Revealed," available for $5 from Robert Bruss, 251 Park Road, Burlingame, CA 94010 or by credit card at 1-736-1736 or instant Internet delivery at www.BobBruss.com.
(For more information on Bob Bruss publications, visit his
Real Estate Center). Source.
~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
Real Estate News for Saturday, July 15th, 2006
Real estate bargain bin. There are some deals to be had buying homes from the government. Plus: 8 on the market now. Who says there are no deals left in real estate? Government Web sites sell homes all over the country and many of them qualify as real bargains. The sites offer homes from Housing and Urban Development (HUD), the U.S. Department of Agriculture and the Veteran's Administration. These agencies take possession of foreclosed homes and return them to the market. Source.
The National Association of Home Builders this week released its latest economic forecast, and it is not the kind that will give you warm feelings. The builders noted downward pressure on home prices, sagging sales and an icy outlook for a number of once-torrid markets. By 2007, just six states will look hot from a home-building standpoint. North Carolina, South Carolina, Florida, Nevada, Idaho and Utah will be the only "red" states when it comes to new-home construction.
The cool-down in the housing market has been expected, and so far it has not raised any major alarms among economists. Mortgage rates may have hit a plateau and mortgage applications also seem to have stabilized. The job market, while not robust, is healthy enough that no repeats of the big employment-loss-driven housing downturns in Texas, New England and California in the 1980s and early 1990s appear in the offing. Source.
San Diego first to feel housing decline. The median price for a San Diego County home declined for the first time in a decade last month when compared to the same month a year earlier. Real estate professionals have been studying the San Diego housing market as the canary in the mine shaft for what might happen in the rest of Southern California as the housing boom ends. San Bernardino County prices will plateau and perhaps dip slightly late this year or early next year, Karevoll said. Nevertheless, the county's underlying economy remains strong, which will minimize the steepness of a future decline, said John Husing, a Redlands-based economist who studies the combined San Bernardino/Riverside county region. With San Bernardino/Riverside county unemployment levels at their lowest in the last 40 years, Husing said he sees no reason for real estate prices to decline significantly in San Bernardino County when this boom cycle ends. Source.
Probate properties offer profit potential. Lack of market exposure key to finding bargains. Probate is the name given to the court procedure to distribute assets of a deceased person, whether that individual died with or without a written will. Although there are several key methods to avoid probate costs and delays, such as use of a revocable living trust or holding title as joint tenants with right of survivorship, each year approximately six million new U.S. probate cases are filed. Not all these estates involve real estate, but several million do. Click here to read more. Source.
~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
The National Association of Home Builders this week released its latest economic forecast, and it is not the kind that will give you warm feelings. The builders noted downward pressure on home prices, sagging sales and an icy outlook for a number of once-torrid markets. By 2007, just six states will look hot from a home-building standpoint. North Carolina, South Carolina, Florida, Nevada, Idaho and Utah will be the only "red" states when it comes to new-home construction.
The cool-down in the housing market has been expected, and so far it has not raised any major alarms among economists. Mortgage rates may have hit a plateau and mortgage applications also seem to have stabilized. The job market, while not robust, is healthy enough that no repeats of the big employment-loss-driven housing downturns in Texas, New England and California in the 1980s and early 1990s appear in the offing. Source.
San Diego first to feel housing decline. The median price for a San Diego County home declined for the first time in a decade last month when compared to the same month a year earlier. Real estate professionals have been studying the San Diego housing market as the canary in the mine shaft for what might happen in the rest of Southern California as the housing boom ends. San Bernardino County prices will plateau and perhaps dip slightly late this year or early next year, Karevoll said. Nevertheless, the county's underlying economy remains strong, which will minimize the steepness of a future decline, said John Husing, a Redlands-based economist who studies the combined San Bernardino/Riverside county region. With San Bernardino/Riverside county unemployment levels at their lowest in the last 40 years, Husing said he sees no reason for real estate prices to decline significantly in San Bernardino County when this boom cycle ends. Source.
Probate properties offer profit potential. Lack of market exposure key to finding bargains. Probate is the name given to the court procedure to distribute assets of a deceased person, whether that individual died with or without a written will. Although there are several key methods to avoid probate costs and delays, such as use of a revocable living trust or holding title as joint tenants with right of survivorship, each year approximately six million new U.S. probate cases are filed. Not all these estates involve real estate, but several million do. Click here to read more. Source.
~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
Monday, July 03, 2006
Real Estate News for Monday, July 3rd, 2006
Buying a home. Realtors have extensive experience that will help. They have contacts with financial organizations, appraisers, home inspection companies, insurance brokers and more.Never underestimate the value of an experienced real estate professional. The second time you buy you will know more. Learning by trial and error is not a way to learn in buying real estate. The numbers are too large and the error factor can have enormous implications. Owning a home is nearly always a stretch for first-time buyers, but there are many creative ways to make it happen. Having good credit and a solid employment history will go a long way for initial buyers. Let the experts help you find a way. Click here to read more.
No panic greets housing slowdown. Conditions more likely for a rebound than in 1990s bust, experts say. After an even more remarkable seven-year housing boom, the slowdown is driving up resale inventory and triggering speculation about an uncertain future. But this sagging market isn't much like the 1990s version. Some analysts say the reasons help explain why the present downturn may be shorter and less severe. The differences between that market and this one? "We are having job growth. We are having population growth. We're still having in-migration from the Bay Area," said John Schleimer, a Roseville-based consultant for the home-building industry. But there's one big problem. "The prices got too high," he said. "When we cracked $500,000 for the median, we outstripped the ability of peoples' incomes to pay." Sacramento's 1990s real estate bust was marked not by impossible prices but by a lethal convergence of negatives: a statewide recession, local military base closings, job losses and higher costs of borrowing. Today's slowdown plays out amid mostly good news: a 4.2% unemployment rate in the capital region, a humming California economy and some of the lowest interest rates in a generation. Click here to read more.
Upwardly mobile. Priced out of the traditional housing market, some Orange County consumers are turning to more affordable manufactured homes. Bausch is one of many would-be Orange County homebuyers who have opted for more affordable mobile and manufactured housing rather than the steep down payments and burdensome mortgages of traditional real estate. Many of those buying manufactured homes say the stereotype of trailer parks has given way to clean, safe communities with pools, exercise rooms and community centers. And the homes have improved so much in recent years, buyers say, that they're indistinguishable from apartments, condos and, in some cases, single-family homes. Click here to read more.
In uncertain times, home sellers try new strategies. A year or two ago, pricing a house was simple. Sellers only had to look at what their neighbors were charging, add 10 percent and wait for the bidding wars to begin. Now that the market has grown uncertain, homeowners are at more of a loss when deciding what price tag to put on their property. So in an attempt to attract buyers, some sellers are experimenting with non-traditional strategies for setting prices. Approaches include starting high and cutting the figure every few weeks, dropping the price to a different bracket to attract new shoppers or giving a range of numbers rather than one set figure. A changing market can especially highlight the flaws of traditional pricing sources, including Web sites that list comparable home sales and estimates from real-estate agents. Agents may quote too-high prices to get listings, for one, and some Web sites have too few recent listings (within the last six months) to be useful. And while banks can access automated appraisal tools to determine prices, mostly used in calculating a home-equity line of credit or loan, consumers generally can't get those numbers. When times are slow, most agents recommend setting a price that's just at or 5 percent below the market. Yet not everyone takes that advice. Click here to read more.
Across California, buying a home remains illusory. Rents are soaring beyond the reach of many folk's incomes. According to a 2005 report from the National Low Income Housing Coalition, a minimum-wage earner must work 131 hours per week, 52 weeks per year, to afford the rent on a two-bedroom apartment. (In case you're not in the mood for math, that means 17-hour workdays, seven days a week.) The cost of homeownership is equally egregious. "We have the second-worst affordability rate in the nation," explained Janet Huston, director of communications for California's Department of Housing and Community Development, referring to the fact that only 11 percent of the state's residents can afford homes. "It's not going to improve." Of course, our beloved Bay Area boasts some of the least-affordable housing in the state. So despite the good news that the real estate market is softening, the bad news is that there's an underlying issue that's going to make housing unaffordable for years to come: California isn't building enough to meet the demand. Click here to read more.
Renters face tight apartment market. Easing real-estate market, condo conversions crimp apartment stock. The rental market is the complement to the housing market, Conway said. So when homeownership looks less attractive, renting looks more attractive. And buying a home is certainly looking less pretty these days for those on the fence between buying and leasing. Soaring appreciation rates in some markets have caused home prices to become less affordable; rising mortgage interest rates aren't helping either. 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
No panic greets housing slowdown. Conditions more likely for a rebound than in 1990s bust, experts say. After an even more remarkable seven-year housing boom, the slowdown is driving up resale inventory and triggering speculation about an uncertain future. But this sagging market isn't much like the 1990s version. Some analysts say the reasons help explain why the present downturn may be shorter and less severe. The differences between that market and this one? "We are having job growth. We are having population growth. We're still having in-migration from the Bay Area," said John Schleimer, a Roseville-based consultant for the home-building industry. But there's one big problem. "The prices got too high," he said. "When we cracked $500,000 for the median, we outstripped the ability of peoples' incomes to pay." Sacramento's 1990s real estate bust was marked not by impossible prices but by a lethal convergence of negatives: a statewide recession, local military base closings, job losses and higher costs of borrowing. Today's slowdown plays out amid mostly good news: a 4.2% unemployment rate in the capital region, a humming California economy and some of the lowest interest rates in a generation. Click here to read more.
Upwardly mobile. Priced out of the traditional housing market, some Orange County consumers are turning to more affordable manufactured homes. Bausch is one of many would-be Orange County homebuyers who have opted for more affordable mobile and manufactured housing rather than the steep down payments and burdensome mortgages of traditional real estate. Many of those buying manufactured homes say the stereotype of trailer parks has given way to clean, safe communities with pools, exercise rooms and community centers. And the homes have improved so much in recent years, buyers say, that they're indistinguishable from apartments, condos and, in some cases, single-family homes. Click here to read more.
In uncertain times, home sellers try new strategies. A year or two ago, pricing a house was simple. Sellers only had to look at what their neighbors were charging, add 10 percent and wait for the bidding wars to begin. Now that the market has grown uncertain, homeowners are at more of a loss when deciding what price tag to put on their property. So in an attempt to attract buyers, some sellers are experimenting with non-traditional strategies for setting prices. Approaches include starting high and cutting the figure every few weeks, dropping the price to a different bracket to attract new shoppers or giving a range of numbers rather than one set figure. A changing market can especially highlight the flaws of traditional pricing sources, including Web sites that list comparable home sales and estimates from real-estate agents. Agents may quote too-high prices to get listings, for one, and some Web sites have too few recent listings (within the last six months) to be useful. And while banks can access automated appraisal tools to determine prices, mostly used in calculating a home-equity line of credit or loan, consumers generally can't get those numbers. When times are slow, most agents recommend setting a price that's just at or 5 percent below the market. Yet not everyone takes that advice. Click here to read more.
Across California, buying a home remains illusory. Rents are soaring beyond the reach of many folk's incomes. According to a 2005 report from the National Low Income Housing Coalition, a minimum-wage earner must work 131 hours per week, 52 weeks per year, to afford the rent on a two-bedroom apartment. (In case you're not in the mood for math, that means 17-hour workdays, seven days a week.) The cost of homeownership is equally egregious. "We have the second-worst affordability rate in the nation," explained Janet Huston, director of communications for California's Department of Housing and Community Development, referring to the fact that only 11 percent of the state's residents can afford homes. "It's not going to improve." Of course, our beloved Bay Area boasts some of the least-affordable housing in the state. So despite the good news that the real estate market is softening, the bad news is that there's an underlying issue that's going to make housing unaffordable for years to come: California isn't building enough to meet the demand. Click here to read more.
Renters face tight apartment market. Easing real-estate market, condo conversions crimp apartment stock. The rental market is the complement to the housing market, Conway said. So when homeownership looks less attractive, renting looks more attractive. And buying a home is certainly looking less pretty these days for those on the fence between buying and leasing. Soaring appreciation rates in some markets have caused home prices to become less affordable; rising mortgage interest rates aren't helping either. 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
Subscribe to:
Posts (Atom)