Yuba-Sutter Grapevine | helping You bring Your dreams to Life ©

Who Sold What … for How Much?

Posted on 16. March 2011 by Michael McFarlane

The Real Estate Activity Report was just released for the Yuba Sutter area. Grab your FREE copy now! Click on over to Over the Back Fence for yours.

Questions about YOUR best action? Contact us today for your free, no obligation consultation.

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 Over the Back Fence

Home Rescue Group Free Home Market Analysis

Yuba-Sutter Real Estate Today

How to Choose a Realtor®

Posted on 16. March 2011 by Michael McFarlane

We all prefer to do business with someone we like. It helps take some of the stress out of the equation. And if you like someone, you usually trust them. So wouldn’t it be great if your friend was a licensed and knowledgeably Realtor®? Someone who has the experience, connections, and resources to get the job done for you?

Most of us know someone who dabbles in real estate. Is this the person you want to handle your transaction? What do you believe is their competency level? Were they able to provide you with the information you needed? Were they honest enough to say “I don’t know but I will find out” when needed; and then follow through on that promise?

Everyone makes mistakes! The difference is what happens afterwards. Is the mistake acknowledged? Is it then corrected? That is how we grow, how we learn. And that is the secret: to LEARN. That brings us back to the question: How do you choose YOUR Realtor®?

Buying a home usually requires time to research, look, and compare. Who provided you with the information you used most? During the course of your research have you found this person’s attitudes to be compatible with yours? If so, you are probably comfortable working along side this person. This doesn’t mean you are pals, just that there is a mutual trust and comfort level that is needed (if not required) to make it through a real estate transaction today.

Big company or small or independent isn’t what matters most. It is the individual you are working with. Do they appear competent? Are they trustworthy? Of course we know you have verified that they are legal, licensed, and knowledgeable of the area you are interested in. Do you feel that they are putting YOUR INTERESTS ahead of any other in your transaction? If so, you have found your Realtor®!

Questions about YOUR best action? Contact us today for your free, no obligation consultation.

Subscribe to Listings Updates Free Home Warranty

Search the MLS Over the Back Fence

Home Rescue Group Free Home Market Analysis

Yuba-Sutter Real Estate Today

Is Your Credit Score Knowledge Lacking?

Posted on 12. March 2011 by Michael McFarlane

Do you know what those numbers mean? Do you understand how to go about changing them, to the positive? Do you know what a difference of only one point can cost?

A recent survey by Opinion Research asked 22 credit score related questions to consumers. The average was only 60% right. Many did not understand the financial cost of a low score. For instance, a $20,000 car can cost $5,000 or more in extra interest because of a lower score. That lower score could cost $100,000 on a $200,000 home, or prevent one from purchasing a home at all.

Many consumers did not know how to increase their score according to the survey. Some believe paying cash is the best, or that having more than one credit card would lower their score. In fact, using credit responsibly is THE way to boost your score. It is not the amount of credit you have, but the relationship of available credit to income. It isn’t how much credit you have but how you use it that counts.

The recent banking meltdown and following recession has lowered scores nationwide. The lack of available jobs, or hours for those still working also contributes to this lower overall score. Today nearly one quarter of consumers have a “poor” rating; a score at or below 599.

$ Source: Detroit Free Press ð

Our take on what it means to YOU? Did you know that a low credit score could even prevent you from getting a job? Or that it could cause you to loose the job you have? How much does it effect you? Call us today to find out. 530 315-2808

Questions about YOUR best action? Contact us today for your free analysis.

Subscribe to Listings Updates Free Home Warranty

Search the MLS Over the Back Fence

Home Rescue Group Free Home Market Analysis

Yuba-Sutter Real Estate Today

New Rules for First-Time Home Buyers

Posted on 10. March 2011 by Michael McFarlane

Not having a home to sell has actually been a plus for those looking to purchase a home recently. That meant the first time home buyer had the advantage. That may be changing with the new rules and fees going into place. First time buyers are down to 29% of the market from 40% just recently. And that number is expected to drop even more.

Increased fees for low down payments and increasing interest rates constitute part of that. Higher down payments are also being expected. These are in response to the recent mortgage melt-down. Banks and lenders are trying to recover the money they lost to bad loans. In addition, they will likely be required to buy back many bad loans sold to Freddie Mac & Fannie Mae.

Put more money down. Not because you have to but because it makes economic sense. You can still get the .5 to 5 per cent down loans, but why pay that mortgage insurance and interest premium if you don’t need to? For instance, paying 3.5% down will now cost you $30,000 more than last September on a $300,000 mortgage. A larger down payment can eliminate this.

Plan to live there longer, a decade or more. Gone are the days of day-trading home shopping. Real estate is an investment that usually requires time to pay off. Those days have returned. Even today, after the big “crash”, homes are worth more than they sold for ten years ago. Actually, this is a good thing. This is sustainable growth.

Prepare for competition in purchasing your home. The days of free-falling prices are behind us. Programs to help the borderline homeowners are beginning to be put into place. Downsizing retirees and empty-nesters are looking at these homes also, and many of them have sizable down payments available.

$ Source: The Wall Street Jounal ð

Our take on what it means to YOU? If you are thinking about buying in the very near future, this is your get moving call! This increase will not only cost more money, this increase could increase your DTI to the point that you will have to let go of your dream house and settle for something lower in price. How much does it effect you? Call us today to find out. 530 315-2808

Questions about YOUR best action? Contact us today for your free analysis.

Subscribe to Listings Updates Free Home Warranty

Search the MLS Over the Back Fence

Home Rescue Group Free Home Market Analysis

Yuba-Sutter Real Estate Today

FHA Rates Going Up!

Posted on 1. March 2011 by Michael McFarlane

Federal Housing Administration (FHA) mortgages are set to increase by .25% this April. This follows an increase last November from .50% on 30 year fixed rate loans to .85%. For 15 year fixed rate loans those figures were from .55% to to .9%. That brings the new rates to 1.1% for 30 year fixed rate loans and 1.15% for 15 year fixed rate loans.

Although this is not an interest increase, it’s effect is virtually the same. For a home costing $157.000 (the average FHA purchase loan) the monthly payment will increase by $33. While this does not sound like an insurmountable increase, it will put buyers into a higher DTI (Debt to Income) bracket. This is one of the most important numbers in loan qualification. This increase could put some buyers out of the market.

FHA loans are generally used by those unable to qualify for conventional loans or make the down payment required by them. FHA allows a down payment of only 3.5% while Fannie Mae requires 5 to 15% on the typical loan. FHA also allows for lower credit scores: a minimum of 500 vs. 580 minimum for Freddie Mac and Fannie Mae loans. The banks and conventional lending are often looking for a minimum of 680-720.

The effect of the increase has is amplified because of the typical borrower using the loans. Those that can more easily absorb the increase are getting their loans elsewhere. In today’s market more and more buyers are using the FHA backed loans, so the impact of the increase will be greater than past instances.

$ Source: the New York Times ð

Our take on what it means to YOU? If you are thinking about buying in the very near future, this is your get moving call! Remember, it’s not just the extra $33 a month you will be paying for the same thing (although that is pretty good incentive to most of us), this increase could increase your DTI to the point that you will have to let go of your dream house and settle for something lower in price. How much does it effect you? Call us today to find out. 530 315-2808

Questions about YOUR best action? Contact us today for your free analysis.

Subscribe to Listings Updates Free Home Warranty

Search the MLS Over the Back Fence

Home Rescue Group Free Home Market Analysis

Yuba-Sutter Real Estate Today

New Foreclosure Records—HIGH & LOW!

Posted on 22. February 2011 by Michael McFarlane

Does that sound a bit confusing? Stated in that simple form, it is. The reality is that it is an indication that our economy is healing. The High is the number of homes in the process of foreclosure, while the Low is the number of homes in default and being filed upon.

The HIGH At the end of 2010 about 4.63% of homes were in the process of being foreclosed upon, up from the 4.39 percent the previous quarter. However, some of these were the result of the temporary halt to foreclosures that occurred while the lenders reviewed their processes (either voluntarily of by mandate). Property seizures dropped 32$, leaving many “in the process” of foreclosure.

The good news in this is that the increase was caused largely by that process interruption. New foreclosure action filings have dropped to 1.27% for the 4th quarter of last year. And the percentage of mortgages with overdue payments dropped to 8.22, down from the previous 9.13%.

$ Source: San Francisco Chronicle ð

The LOW As mentioned above, the number of mortgages in default has dropped significantly. Also, the number of foreclosure procedures starting has dropped. Both of these are signs that things are getting better.

These numbers are the lowest seen in the last 2 years! That is really great news. Unemployment is still high, the number of home loans in default are still high, and consumer confidence is still low, but these things are improving. That is good. In order for a recovery to last, it must be paced.

$ Source: Inman News ð

Our take on what it means to YOU? Like any set of statistics, these are general indicators. We do know that the positive indicators stimulate more positive growth. And that is a good thing for us all.

Questions about YOUR best action? Contact us today for your free analysis.

Subscribe to Listings Updates Free Home Warranty

Search the MLS Over the Back Fence

Home Rescue Group Free Home Market Analysis

Yuba-Sutter Real Estate Today

ARMs (Adjustable Rate Mortgages) are Back

Posted on 17. February 2011 by Michael McFarlane

Negative Press aside, ARMs can be a great benefit to the economy. While they received their fair share of criticism and blame in the recent market collapse, they are not a negative thing in themselves. They are a tool. Like any tool, used incorrectly they can (and did) have disastrous results.

For the investor an ARM gives greater leveraging power. They are betting that the price will increase quickly allowing them to sell before the interest rate raises. This is a gamble of course, and like most things a higher pay-off is usually balanced with a higher risk.

For the frequent mover an ARM can give them higher buying power. They know they will be selling before the rate goes up so the monthly payment is lower during the time they live there. The risk is that if the market drops they may not be able to sell quickly (sound familiar?).

For the buyers that KNOWS their income will increase in the near future the ARM can allow them to purchase that dream home rather than passing on it and waiting until the money comes in. The least risky group here is someone who’s income is temporarily reduced rather than one betting on a raise.

According to CNN Money during the boom ARMs were used in nearly 70% of the mortgages written. During the bust their usage dropped to less than 3%. Today they are back up to 5% and climbing, with 10% expected by year’s end according to Freddie Mac.

$ Source: CNNMoney ð

Our take on what it means to YOU? Like any tool, misuse can create problems. We do think the ARM is a great tool if use properly, if one understands the risks involved AND is able to absorb the loss if the gamble fails. The use of ARMs can speed the rate of recovery for our market, and therefore the economy in general. AND that benefits us all!

Questions about YOUR best action? Contact us today for your free analysis.

Subscribe to Listings Updates Free Home Warranty

Search the MLS Over the Back Fence

Home Rescue Group Free Home Market Analysis

Yuba-Sutter Real Estate Today

Interest Rates Continuing to Climb

Posted on 15. February 2011 by Michael McFarlane

Interest rates have inched up to over 5%. That’s higher than they have been since May 2010, nearly one year ago. For the week ending 11 Feb the average was 5.05% with the 0.8 average buy-down rate included. Loans not backed by Fannie Mae or Freddie Mac were even higher with a spike of 5.25% last week.

For buyers this increase is not overwhelming. Most can easily absorb the increase of $20-$35 in monthly payments created by it. The listing prices tend to decrease slightly to compensate for MINOR increases, lowering the down payment slightly.

For sellers however, this is not good news. As mentioned, selling prices tend to drop slightly to compensate for the interest increase. In a neighborhood with many homes for sale this slight drop can lower ALL home values in the area, which drops the price slightly more! This will drop the amount the banks are willing to lend. And for the buyer that was borderline, well, your home just may be out of their price range now.

This increase is compounded by the uncertainty of the government’s role (via Freddie Mac & Fannie Mae) which is being questioned. What will be the result on the housing recovery?

$ Source: CNNMoney ð

Our take on what it means to YOU?
…If you are thinking about buying, the stable lending environment of today probably outweighs any minor gain by price reductions in the near future. And we expect interest rates to continue to climb slowly.
…If you are thinking of selling any time soon, stable prices and raising interest rates make this the ideal time. We don’t expect prices to rise significantly until the foreclosure mess is cleaned up, and that won’t be for another year or so in our opinion. If you are waiting for the high selling prices of 2005, well, studies we have seen expect that to happen around 2035!

Questions about YOUR best action? Contact us today for your free analysis.

Subscribe to Listings Updates Free Home Warranty

Search the MLS Over the Back Fence

Home Rescue Group Free Home Market Analysis

Yuba-Sutter Real Estate Today

10 Common Tax Filing Errors Home Owners Make

Posted on 12. February 2011 by Michael McFarlane

#1 Deducting porperty taxes for the wrong year Often, your tax bill will not be dated from January to January the next year. To the IRS, this is irrelevant. Enter the amount of money you actually paid during the current year.

#2 Confusing the escrow amount with the tax amount If your mortgage has funds escrowed for taxes, insurance may be included also. Even if it is not, the escrow amount may be adjusted periodically to increase or decrease reserves to pay the taxes when actually due. The IRS only wants the amount PAID to taxes for the filing year.

#3 Deducting points on a refinance You can deduct points on the original purchase loan up front, but not on a refinance. Here they must be spread over the life of the loan.

#4 NOT deducting PMI (Private Mortgage Insurance) This one is not the same for everyone. If included in your mortgage, it usually begins to phase out as your adjusted gross income climbs above $100,000, disappearing as your AGI exceeds $109,000.

#5 Misjudging the Home Office Deduction This one requires some careful calculations. It may not be so great in the long run.

#6 Missing the First Time Home Buyer’s Credit If you qualify, use it. Refer back to our post on 07 January for more on this one.

#7 Failure to track home maintenance costs If you own a home, you ARE going to have maintenance involved. Know how to track what can save you here. Good records and filing are essential.

#8 Capital Gains are taxed differently than regular income. Know the difference and keep them separate

#9 Incorrectly Filing for Energy Credits Our last posting will cover this for you. Take a look.

#10 Claiming too much Mortgage Interest Deduction You usually are not allowed to deduct mortgage interest over $1,000,000. While home prices were at their peak this was a lot easier than it might sound.

$ Source: HouseLogic.com ð

Read more at the link above. As always, we can speak in general terns only. We do hope that these guidelines help get you going in the right direction. Every situation is different, and you should consult your tax advisor to answer your specific questions.

Subscribe to Listings Updates Free Home Warranty

Search the MLS Over the Back Fence

Home Rescue Group Free Home Market Analysis

Yuba-Sutter Real Estate Today

Filing Tips for 2010 Energy Tax Credits

Posted on 11. February 2011 by Michael McFarlane

Like so many things tax related, form 5695 may seem overly complicated to many. We have located some helpful information and sources for those doing it themselves. Even if your accountant does your taxes, you have to know what they need to get the most you are entitled to.

First of all, make sure you are filling out the right part of the form.

What type of system did you install? If its one of the following, complete Part 1 for Non-business Energy Tax Credits.

Biomass stoves

Insulation

HVAC systems

Roofs

Non-solar water heaters

Windows, doors, skylights

Storm windows and doors

Max credit: 30% of the cost of the improvement, up to $1,500.

If you installed one of these souped-up systems, complete Part 2 for Residential Energy Efficient Property Credit.

Geothermal heat pumps

Residential wind turbines

Solar energy systems

Fuel cells

Max credit: 30% of the cost, with no limit except for a kilowatt limit on fuel cells.

Like other major expenses, keep your receipts. For these tax credits, you also need to separate the labor from the materials costs, as the labor is not deductible here. Manufacturers certifications should be kept on file also. You don’t need to send them in with your return however.

Coordinate with Form 1040 and other forms Part 12 is pretty simple. Just enter the total (line 11) on form 1040 line 52. Part 2 gets a bit more tricky. Other credits claimed on other form can affect the deduction here.

$ Source: HouseLogic.com ð

Subscribe to Listings Updates Free Home Warranty

Search the MLS Discussions & News

Home Rescue Group Free Home Market Analysis

Yuba-Sutter Real Estate Today