8. February 2011 by Michael McFarlane.

Tax Benefits  Just about everyone has heard that there are tax benefits to owning your own home.  Just what are these benefits?  Do they apply to everyone?  One of the major tax advantages of owning is the ability to write off the interest you pay on your mortgage.  In many cases, this number is amplified because this reduction will also drop one’s tax bracket to a lower percentage.  And yes, these tax deductions will apply to most if not all homeowners who are making mortgage payments.  For your specific case please consult your tax advisor or attorney.  Your Realtor® can help you get started.

Better neighborhoods  Records show that stable neighborhoods tend to have less crime and maintain their financial value better than areas with a high turnover.  Since renters tend to move more often than owners home ownership benefits all.

Better schools  We are not saying that one school is better than another, nor do we want to get into that discussion here.  We are saying that a school which has the ability to anticipate its student’s needs can better meet those needs.  Since renters move more frequently than home owners the school’s attendees will change as does the population, and therefore so do the teaching needs.

Greater  feeling of security  As the population of a neighborhood stabilizes neighbors have more of a tendency to get to know their neighbors.  Besides the friendliness issue, one might argue that security is actually increased because 1) since your neighbor knows you they will recognize a stranger poking around your property; and 2) since you and your neighbor have established a relationship you will naturally tend to look out for each other more, being more apt to call the police or get personally involved.  It is also easier on the mind to let the children play in an area where people watch out for each other.

Higher property values  All of these things (and more I’m sure you can think of) will increase the desirability of an area.  As the desirability increases naturally so the values also tend to increase.  To see actual numbers for YOUR scenario contact us today!

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.  Please note: all visits to our sites are secure AND confidential.  We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty

                  Search the MLS                                     Discussions & News 

 Home Rescue Group               Free Home Market Analysis  

             Yuba-Sutter Real Estate Today

Posted in Buying a Home, Real Estate Market | No Comments »

15. January 2011 by Michael McFarlane.

Shortening the Short Sale  In today’s market, bank owned and short sale properties are the norm rather than an exception.  Understanding them can do more than just make them more tolerable.  It can actually lead to a faster and more rewarding transaction.

The Short Sale is when a property is sold for less than what is owed against it.  A second part, called a short payoff is when the lenders involved agree to accept that sale and give clear title to the buyer.  Although these two are slightly different, in today’s market they are both generally referred to as a short sale.

Many recent mortgages were written with a second lender subsidising the down payment.  These seconds, as they are called, may also come into play for a refinance, an equity loan, or other reasons.  This second is often a different lender than the “first”.  This lender must also agree to the financial agreements in the short sale, often meaning they will get next to (or actually) nothing.

MI (Mortgage Insurance) in the Short Sale  can cause more delays.  MI is generally required when the down payment is less than 20% of the purchase price.  Sound familiar?  Since they are not required to pay any claims until clear title is demonstrated, every short sale must have an exclusion in order to complete.

These three things (and more) are IN ADDITION to the normal parties and conditions involved in the sale of property.  THEY WILL TAKE LONGER!  If you accept that things get better.  Does that mean there’s nothing you can do to speed things up?  NO!

As the Seller have you documents ready.  Answer the calls from your lender, and anyone you might have helping you with the process.  Be honest about why you are unable to afford the payments (ie. what has changed since you agreed to the mortgage terms).  Make sure you have an agent that knows what is required and does it.

As the Buyer accept the fact that multiple entities are involved and that it will take longer than an equity (normal) sale.  Make sure you are pre-qualified for the amount needed.  Keep your proof of income and bank statements ready and updated.  As with the seller, make sure you are working with an agent that understands the process, and acts when needed.

$ Read More ð

 For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.  Please note: all visits to our sites are secure AND confidential.  We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty

                  Search the MLS                                     Discussions & News 

 Home Rescue Group               Free Home Market Analysis  

             Yuba-Sutter Real Estate Today

Posted in Buying a Home, Selling Your Home | No Comments »

7. January 2011 by Michael McFarlane.

Many people became first time home-owners encouraged by the First Time Buyer’s Tax Credit.  That was great, for them and the market and economy in general.  Now tax time is here and they need to collect but unfortunately there is no tax instruction that went with the loan.

Realizing that some of our own clients were in the position of needing to figure out how to collect the credits due them, we went looking so they don’t have to.  If you purchased your home between 30 April 2010 (earliest date of contract) and 30 Sept 2010 (closing date) you may qualify, even if you did not apply earlier. 

For the tax credit First Time Home Buyeris defined as a buyer that has not owned a home as a principal place of residence during the last three years.  For married couples, this means either spouse.  That rule does not apply to unmarried partners (we don’t say it’s fair, just the rule).

If this sounds like something that will help you, read the article by Kelly Phillips Erb (link following).  It is reasonable devoid of legalese and pretty readable.  And you can always call Encore Real Estate Service at ( 530 315-2808 or email * us with questions.  While we are not CPAs or Tax Attorneys we can help with general questions.

$ Read more:  WalletPop ð

 For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.  Please note: all visits to our sites are secure AND confidential.  We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty

                  Search the MLS                                     Discussions & News 

 Home Rescue Group               Free Home Market Analysis  

             Yuba-Sutter Real Estate Today

Posted in Buying a Home, Finance | 1 Comment »

4. January 2011 by Michael McFarlane.

The real estate industry, in general, has been slow to accept change, especially in the large brokerages.  In fairness, large companies are generally less nimble than “the small guy”.  But in real estate the “way we’ve always done it” mentality seams to prevail. 

Is there a problem with that?  You bet!  It costs the client money!  Example:  Let’s say an office has 5 agents, each of whom close 1 transaction every other month (a pretty good average in these times) and let’s say the office space rents for $2,000 per month.  That means that each and every transaction will pay $600 to rent alone! 

That is $600 that could have gone to marketing the listed property, or helping a buyer get moved in and settled, or maybe help with closing costs.  Which would you rather have?  Don’t get us wrong.  There are some advantages to being part of a big company.  Things like marketing and other large scale items have their costs distributed over a greater number of agents.

But does marketing the brokerage’s name on national TV really help sell your home?  Does it help you find your new home?  Does their prettier web site really help you?  It might be “easier on the eyes”, but do they allow you to get the information you need with security and anonymity? 

If one of your New Year’s resolutions is to save money (usually meaning to get more for your money) then consider this: Real Estate really is personal and local.  Is your agent?  Does your agent’s company allow them to be?  Are they using your hard earned dollars to help you or their company?

Read more:  RISMedia  ð

How does this effect you?  At Encore Real Estate Services (http://encoreres.com), Yuba-Sutter Homes and Loans, and other People’s Choice Brokers companies we believe your money should benefit you.  Most work from home offices saving you thousands of dollars.  We are internet connected giving you the WORLD of information and marketing, not just our office or brokerage/company.

 For ALL your real estate related needs and/or questions call (530 315-2808) or visit us on line at EncoreRES.com or any of the links below.  Please note: all visits to our sites are secure AND confidential.  We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty

                  Search the MLS                                     Discussions & News 

 Home Rescue Group               Free Home Market Analysis  

             Yuba-Sutter Real Estate Today

Posted in Buying a Home, Selling Your Home, Real Estate Market | 1 Comment »

23. December 2010 by Michael McFarlane.

The new year is often a time when resolutions and predictions abound, an opportunity to reflect upon last year and investigate ways to make this year better.  Real Estate is no different.  Following are ten things real estate professionals see for the future.

1.  New Home Building:  After 3 years of almost no new homes being built, the trade is beginning to pick up speed again.

2.  Apartments continue to prosper:  The last few years have reminded some that renting does have some advantages, like more amenities for the money, more flexibility in housing commitments, and others.  It’s not for many but for some it just works.

3.  Existing homes and neighborhoods:  The trend of building new cities in the middle of nowhere will diminish.  Instead smaller communities in established areas will be returning as the norm, along with purchasing the resale home and remodeling and updating it.

4.  Modern design:  Transitional and warm-modern are expected to be the new “IN” styles this coming year.  Lower maintenance and more function for the dollar are cited as drivers to this style of building.

5.  Buying for the long term:  The last census showed that the average person moves about 11 times.  That number is expected to decrease as people get rid of the idea that a home is a short term money maker rather than a home primarily and an investment (long term) secondly.

to be continued:  click into our sister site at Yuba-Sutter Home Buys (news & discussions tab) tomorrow to read the rest of the predictions.

Source:  RISMedia  ð

For ALL your real estate related needs and/or questions call (530 315-2808) or visit us on line at EncoreRES.com or any of the links below.  Please note: all visits to our sites are secure AND confidential.  We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty 

                Search the MLS                                     Discussions & News 

Home Rescue Group               Free Home Market Analysis 

             Yuba-Sutter Real Estate Today

Posted in Buying a Home, Real Estate Market | 1 Comment »

21. December 2010 by Michael McFarlane.

Citing limited usage and rapidly increasing costs the Board of the California Public Retirement System (CalPERS) has approved the suspension of the program that offered mortgages to it’s members.  They say that over the last few years there has been little use of the program.

Once the suspension is fully implemented, the board will no longer accept mortgage applications, but those already in progress or completed will not be effected.  Since the program began 29 years ago, more than 136,000 loans have been approved totalling more than $22.7 Billion.  Although the program took a rather conservative approach to it’s lending policies (with mostly 15- & 30-year fixed rate loans) they have felt the impact of recent economic downturn and the finance world’s problems.

CalPERS is the largest public employees pension fund in the US with approximately $218 Billion in assets.  The MHLP (Member Home Loan Program) allowed members to borrow against their retirement fund to make the down payment required when purchasing a home.  With a membership of 1.6 Million the program wrote an average of only 1000 to 4,500 loans a year.

More on line: ð 

Our take?  While we don’t expect this to have any great impact on our local market as a whole, anything that removes a tool from the bag will hurt some people.  In this case however, for those that will be negatively impacted it should be minimal.  If your lender does not have the ability to match something else for you, contact us by phone (530 315-2808) or email.  There are other programs available that allow zero down payment and offer good interest rates.  We have answers to your questions, or we will get them.  We have set up a special hot line just for you at MortgageMaster@EncoreRES.com.  Find out if you qualify today!

For ALL your real estate related needs and/or questions call (530 315-2808) or visit us on line at EncoreRES.com or any of the links below.  Please note: all visits to our sites are secure AND confidential.  We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty 

                Search the MLS                                     Discussions & News 

Home Rescue Group               Free Home Market Analysis 

             Yuba-Sutter Real Estate Today

Posted in Buying a Home, Finance | No Comments »

30. November 2010 by Michael McFarlane.

Although still quite low, interest rates have climbed again.  Wednesday Freddie Mac put the 30 year fixed rate at 4.40%.  Last week they reported the rate at 4.39%, and two weeks ago at 4.17%.    While 4.40% is still an extremely attractive rate, we believe it shows a trend, one that will likely continue.

The 15 year fixed rate mortgage loan interest rate has also climbed; from 3.57%  a few weeks ago to 3.77% last week.  Again, although higher than recent rates, these are still VERY good interest rates; in fact they remain historically low since April this year.

Source: San Francisco Chronicle  read MORE

What is this in real world numbers?  For a home selling for $250,000 an increased interest rate from 4.17% to 4.40% could cost you an additional $12,144.86 in interest alone.  Other costs will likely increase also, costs such Mortgage Insurance are directly tied to the pay-back amount, not just the purchase price of your new home.  This scenario is an example only (but accurate).  Your savings and costs depend on many variables such as down payment, term on loan, late payments, impounds, etc. 

Like to know more? You are welcomed to use our mortgage calculators at Yuba Sutter Homes and Loans.com.  To find the numbers for your situation call (530 315-2808) or email us today.  We can figure in the variables that only an experienced professional can provide.

For ALL your real estate related needs and/or questions call (530 315-2808) or visit us on line at EncoreRES.com or any of the links below.  Please note: all visits to our sites are secure AND confidential.  We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty 

                Search the MLS                                     Discussions & News 

Home Rescue Group               Free Home Market Analysis 

             Yuba-Sutter Real Estate Today

Posted in Buying a Home, Finance | No Comments »

6. November 2010 by Michael McFarlane.

Interest rates have gone up for three weeks in a row now for the “normal” (the 30 year fixed rate) home loan.  This is not terrible news however.  This three week raise is from record (since 1971) lows of 4.19% on Freddie Mac

The average rate for a 15 year fixed loan dropped again, down to 3.66%.  Rates have been historically low since April, making investors nervous.  Since gains are directly linked to housing interest rates, investment returns have been low. 

While this may sound greatfor the housing industry, we believe it has shortcomings.  Recent history has shown us that interest rates alone aren’t enough to rebound the housing industry.  And lack of confidence by investors slows down the economic recovery.

Does this mean it’s too late to buy?  NO!  Interest rates are still fantastic.  Prices are below the sustainable market price.  Money is available.  Banks are still unloading their foreclosure inventory.  If you are a renter or a first time buyer this may be the best opportunity you will ever see to own your very own piece of the American Dream!

You can buy for less than you can rent!  It’s true.  If you would like to see how the two compare check our calculators out.  Or just email or call us (530 315-2808) for the most accurate and personalized information.

Subscribe to Listings Updates           Free Home Warranty                  

Search the MLS                                     Discussions & News 

Home Rescue Group               Free Home Market Analysis   

       Yuba-Sutter Real Estate Today

Posted in Buying a Home, Finance, Real Estate Market | No Comments »

30. October 2010 by Michael McFarlane.

That’s good news for everyone thinking about buying a foreclosed home.  And for those who recently did so.

Large titles companies (National Fidelity and First American among them) have decided that requiring banks to indemnify them against all errors in foreclosure proceedings for ALL loans was too much.  They did agree that some may still require such action.  It seems that neither the Title Companies or the Banks could agree that all such transactions warranted the maneuver.

“There was not enough consensus both within the lender community and title-insurer community to go [the way of total indemnification],” says Peter Sadowski, Fidelity’s chief legal officer.

Kurt Pfotenhauer, CEO of the trade organization American Land Title Association, says as long as title insurers continue to have confidence in traditional lender underwriting, indemnification won’t be necessary. But that could change if “there were further dramatic revelations of systemic problems,” he adds. 

Source: The Wall Street Journal, Nick Timiraos (10/29/2010); Realtor® Magazine by NAR

For a complimentary list of Foreclosed home in your area of interest please send your email address and area of interest to: f.list@YubaSutterHomesAndLoans.com.

Subscribe to Listings Updates           Free Home Warranty                  

Search the MLS                                     Discussions & News 

Home Rescue Group               Free Home Market Analysis   

       Yuba-Sutter Real Estate Today

Posted in Buying a Home, Finance, Real Estate Market | No Comments »

28. October 2010 by Michael McFarlane.

Existing-home sales rose again in September according to a recent report by NAR (National Association of Realtors®), affirming that the recovery is under way. 

Closed transactions of condos, single family homes, townhouses and co-ops rose 10% over last month, but remain below the figures for 2009.  There is speculation this figure might be skewed because of the introduction of the First-Time-Home-Buyer programs and tax credits that started during this period last year.

Lawrence Yun, NAR’s chief economist, was quoted as saying “A housing recovery is taking place but will be choppy at times depending on the duration and impact of a foreclosure moratorium.  But the overall recovery direction should be a gradual rising trend in home sales with buyers responding to historically low mortgage interest rates and very favorable affordability conditions.”. 

Freddie Mac puts the 30 year conventional loan commitment rate (new loans) below last month.

Good news for the Yuba Sutter area!  While the national median resale home price is 2.4% lower than this time last year with Distressed homes (short sales and foreclosures) accounting for about 35% of the sales, our prices have risen slightly.  Our REOs (bank owned sales) have been a bit higher, between 40% and 50% on the average.  To follow our area sales trends check out the Weekly Yuba-Sutter Real Estate Report published each Monday at http:YubaSutterHomeBuys.com and click the Discussions & News tab.  You can also find it by clicking the <Hot News> button at Yuba Sutter homes and Loans.

NAR President Vicki Cox Golder, like many of us, thinks that opportunities abound in today’s market.  Interest rates are about 1/2 what they were 10 years ago.  Home prices are about 22% lower than 5 years ago on the national level.  Our market is seeing prices closer to 30-35% lower than the unsustainable peak caused by the bidding wars of the 2005 era.

Monthly payments to own a home now are historically low.  Right now, a qualified family can own a 3 bedroom 1500 sq. foot home for less than $475.00 per month!  And that’s not a fixer-upper.  That is a nice $120,000 home.  Interested?  Contact us today to see if you qualify.

To follow this or other stories in greater detail and as developments unfold just click the RSS button below.

For more current and relevant real estate news for the Yuba Sutter area go to Yuba Sutter Homes and Loans -> Hot News or to Yuba Sutter Home Buys -> Discussions and News.

 Subscribe to Listings Updates           Free Home Warranty                

 Search the MLS                                     Discussions & News 

Home Rescue Group               Free Home Market Analysis

         Yuba-Sutter Real Estate Today

Posted in Buying a Home, Finance, Real Estate Market | No Comments »