All Short Sales Are Not Alike

 

The  real estate market is finally on an uptrend and buyers are enthusiastically back in the game. Many homeowners, though,  have mortgages that are still higher than the current value of the  home.  For those "underwater" homeowners who need to sell,  the short sale process is an option, but should be approached carefully.

 

If the mortgage is an FHA loan,  the  U.S. Dept. of Housing and Urban Development(HUD) requires a specific process be followed in order to be considered for a short sale.  The homeowner MUST be the one to  initiate the request.  The lender will then begin the process of "approval to proceed" with a short sale and this takes approximately 30-90 days.  During this period, the homeowner's situation is reviewed for other home retention options.

 

With FHA loans, you do not have to have an offer or a listing agreement to begin the process.  If  you are unsure if  you have an FHA loan,  simply call the customer service number on your most recent statement and they should be able to give you the information.  If you have decided to sell, let them know that you would like to begin the process of being accepted for a short sale.

 

The lender will then give you instructions on how to proceed.  In all short sale scenarios, a hardship letter will be required along with proof of income, recent bank statements and a list of expenses and other documentation that the lender will request.

 

It is important to work with a real estate agent who understands the short sale process and has successfully navigated sellers through the process of getting short sale approval.  Short sale approvals are NOT automatic and are sometimes denied.   The right Realtor can greatly increase your chances of getting your short sale approved.   In addition, the right Realtor can make all the difference in how much stress and time is involved on your part during this tedious process.

 

Nancy Puder is a Short Sale Expert and the broker and owner of Signature Properties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415.
Your calls are always welcome!

 

Act Now to Prevent Loss of Mortgage Deduction!

 

Whether you are a current homeowner or would like to be one soon,  you should know that Congress, as part of their negotiations on avoiding the "Fiscal Cliff," has made direct references to "closing loopholes" and "limiting deductions" as a way to raise revenues.  It is clear that the mortgage interest deduction (mid) is high on this list of revenue raisers.

 

It is important for the public to know that losing the mortgage interest deduction  (mid), would cost homeowners on the average, almost $4000 per year.  This disproportionately affects the middle class because a larger proportion of the middle class takes the deduction.  Almost 90% of homeowners who take this valuable deduction make less than $200,000 per year and are just an average middle class family.

 

In addition to taking away the biggest deduction that most homeowners have, I believe that it would also significantly stall the housing recovery.

 

We should all be concerned about losing this important tax deduction.  Please call (202) 224-3121 today and let Congress know that you do not want them to reduce or remove the mortgage interest deduction.  This should be done now and considered urgent.  You may also go to www.KeeptheMID.com for more information and to help get the word out.

 

Nancy Puder is the broker and owner of SignatureProperties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415. Your calls are always welcome!

 

 

 

 

Housing Expectations for 2013

 

With the new year approaching fast, many are wondering what to expect in the real estate market in 2013.  A long-awaited level of excitement has been building over the past several months and there is an undeniable renewed energy in the real estate market today.

 

Buyer confidence is definitely back and multiple offers are common on some of the most desireable properties.  Sellers are enjoying slight to moderate price increases and getting ready to put their homes on the market.

 

Mortgage rates remain extremely low and lenders have loosened some of the regulations on the "flipping" of homes which is great news for investors.

 

CoreLogic reported Monday that October prices increased  by 6.3 percent in October 2012, the biggest increase since June 2006 and the eighth consecutive increase in home prices.

 

All in all, I am expecting a great real estate market in 2013 with lots of new opportunities for buyers and sellers.  I'm not worried about what the government will decide about the "fiscal cliff" and I am quite optimistic about what 2013 will bring.  

 

If you are thinking of selling or buying,  it would be my pleasure to help you plan your stategy for a successful year in 2013. Just call or email me today.   I always enjoy hearing from you!

 

Nancy Puder is the broker and owner of SignatureProperties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!

 

 

 

2013 Law Helps Distressed Homeowners

A new law, effective January 1, 2013 will help to protect distressed homeowners from losing their homes.  The California Homeowner Bill of Rights is aiming to help avoid foreclosure wherever possible in an effort to stabilize California’s housing market.

 

Most of us have heard stories of a home being foreclosed upon while the homeowner was in the middle of a loan modification or short sale.  One of the reasons for this was that the bank representative and the foreclosure department were not communicating with each other at all.  The homeowner felt "safe" because they were communicating with the bank on a regular basis.  Unfortunately, because the different departments of the bank were not speaking to each other, the result was that the home foreclosed.

 

This  new law will generally prohibit lenders from engaging in this practice which is referred to as  dual tracking.  The best part of the new law, in my opinion, is that it provides for one single point of contact at the bank for borrowers seeking foreclosure prevention alternatives such as a loan modification, short sale or deed-in-lieu foreclosure. 

 

The new law generally pertains to owner-occupied properties with one-to-four residential units, with certain exceptions.  To view a more detailed discussion of the California Homeowner Bill of Rights, it is available at http://www.car.org/legal/miscellaneous-contacts/realegal-chart/2012-realegals/sept28revised/.

Assembly Bill 278 and Senate Bill 900 (codified as Cal. Civil Code §§ 2923.5 et seq.) (effective January 1, 2013).

 

Nancy Puder is the broker and owner of SignatureProperties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!

 

 

 

Nipomo Worth Checkin Out!

Voted best weather  in the entire country and still only 20 minutes from the beach,  buyers should check out Nipomo when searching  for their new home.

 

Located just south of Arroyo Grande,  Nipomo has grown considerably over the past several years with lovely new neighborhoods and a large shopping and business center.


One of our local builders, Bob Newdoll, has recently built 6 beautiful new homes in Nipomo.  These new homes range between $485,000 & $536,900.  Sizes range from 2178 - 3184 sq. ft.  All homes include 3-car garages, granite counters, tiled baths and open floor plans.  Most are single-level and one even has a mother-in-law suite that you may want to live in yourself!


Located only 10 miles south of Arroyo Grande and 10 miles north of Santa Maria, Nipomo residents say they love the small town feeling they have there and really enjoy the weather.  "Often,  I will leave my job in AG and drive home to Nipomo and within a  few minutes, I am out of the fog and chill and into a balmy 74 degrees." says one Nipomo resident.  I have the beach only a few miles away but don't have to be cold to enjoy it!"


Nancy Puder is the broker and owner of Signature Properties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!

  

 

                                                 

 

Why Use a Realtor?

Happy Thanksgiving everyone!

 

Why use a Realtor? With so much information available now with the click of a button, some may question the need for a Realtor at all.  Here are some reasons why Realtors still play a vital role in the process of buying or selling a home.

 

Many people do not realize that all real estate licensees are not the same. Only real estate licensees who are members of the National Association of Realtors (NAR)  can legally be called Realtors. Realtors are committed to treat all parties to a transaction honestly and are actually required to subscribe to a strict Code of Ethics.

 

Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would seem prudent to consider using a real estate professional.

 

Here are a few more reasons to use a Realtor..

 

      ·         Your Realtor can help you determine your buying power.

·         Your Realtor will direct you to the most accurate information available as opposed to many websites that post random and inaccurate information.

·         Your Realtor can assist you in the selection process by providing objective information about each property.

·         Your Realtor can help you negotiate.

·         Your Realtor provides due diligence during the evaluation of the property.

·         Your Realtor can help you in understanding different financing options and in identifying qualified lenders.

·         Your Realtor can guide you through the closing process and make sure everything flows together smoothly.

·         When selling your home, your Realtor can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.

·         Your Realtor markets your property to other real estate agents and the public.

·         Your Realtor will know when, where and how to advertise your property.

·         Your Realtor can help you objectively evaluate every buyer's proposal without compromising your marketing position.

·         Your Realtor can help close the sale of your home.

 

Now that you are convinced and ready to choose your Realtor, be sure to choose one that has an excellent reputation and successful in both a good and a challenging real estate market.

 

Nancy Puder is the broker and owner of Signature Properties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 To view more articles written by Nancy Puder go to www.NancyPuder.com/blog.asp.

 

 

 

 

 

 

 

 

Buying a Home Requires a Plan...

The dream of owning a home has become a reality for a lot of people over the last few years.   Because of reduced prices, many  buyers have jumped into the status of being a homeowner before they have addressed all aspects of this big decision.  If that is you, it is not too late to get a plan started now.

 

When purchasing a home, it is  important to have a plan so that you and your family will be secure for many years to come.  I can't emphasize enough how important it is to work with professionals who are willing to listen to your dreams and goals and to help you establish a personal path to get you where you want to go.

 

Buyers often think that finding a home they like, in the price range they can qualify for and getting a good interest rate is pretty much all they need to do.  Of course, these things are important, however, making a plan that includes all financial aspects will help you make the choice that is best for you.

 

Putting a financial plan together can sound overwhelming at first, but it is as easy as assembling a team of professionals who are genuinely intererested in seeing you achieve your long term goals.  Your team should consist of a mortgage lender, an accountant, a Realtor, a financial advisor, an insurance agent, an estate planner and, in some states, a real estate attorney.

 

Planning for your future and buying a home is a big step for most people.  Just the  process of finding a home and getting the loan can be overwhelming.  This is why choosing the right people to have on your team is important.  A good professional in any one of these areas should be able to refer you to another business person whom they know and trust in the appropriate field.

 

To begin, find a Realtor or mortgage lender that realizes the importance of having a team  in place to create solid financial plan.   If they are truly interested in helping you to achieve your goals and not simply making the sale, they will have other business people in mind that they will refer you to with confidence to assist in creating a great plan to secure your future.

 

Nancy Puder is the broker and owner of Signature Properties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!

 

 

 

 

6 Tax Facts Homeowners Should Know

This is the time to start thinking about how your 2012 is going to be presented to the IRS at tax time.  Here are 6 tax facts that all homeowners should know!

 

1.  If you have owned your home and lived in it 2 of the past 5 years prior to selling it, you can generally deduct up to $250,000 of the gain from your income ($500,000 if you are filing a joint return in most cases).

 

2. You are not eligible for this exclusion if you sold a principal residence within the past 2 years and excluded the allowable gain from your income.

 

3.  If you can exclude ALL of the gain from the sale of your principal residence, you do not have to report the sale on your income tax return.

 

4. If you have a sale on your principal residence that exceeds the allowable deduction, it is taxable.

 

5. You can't deduct a loss from the sale of your principal residence.

 

6. Special rules may apply when you sell a home which you received the "first time home buyer credit.  (See IRS publication 523, "Selling Your Home" for details)

 

Nancy Puder is the broker and owner of Signature Properties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!

 

 

 

Animal Costumes...Really?

Please don't get me wrong.  I love animals and have two myself, that I love and spare no expense if they are sick or just need some extra love.  There is no way, though, that I would dress them up in a Halloween costume!

 

I guess it takes all kinds to make the world go round but I just don't get it.  I was at the pet store buying some pet supplies because I thought that is what I would probably find there.   Thinking at first that I had walked into the wrong store, I saw halloween costumes everywhere!  Had I just walked into Ross or Marshall's in some kind of stupor?

 

No, I really was at the pet store!  I thought I had heard some murmerings about an animal costume contest this past week, but truly hadn't paid much attention to it.  I now find that I have been out of the loop.  Apparently, this is the latest rage and I am running behind on what is cool these days...

 

Of course, I am sure the dogs and cats are much more comfortable and feel quite dignified in the respective costumes that their owners have somehow squeezed their little legs and paws into, but I am still not getting it.

 

I guess I'm just a left-over from the seventies, where wearing less was more if you know what I mean.   Perhaps I should consider having one of these cute little puppies hold my next open house for me, or have my client hold them in the back seat while I am showing property?  I could dress them up like Realtors?

No?  Okay, I'm still trying to figure out how to work this new wave into my own life.

 

I hope you all know that I'm just kidding.  I hope everyone has a lot of fun this week.  Please send me picture of your favorite pet dressed up or not!

 

Nancy Puder is the broker and owner of Signature Properties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Housing Starts Blow Away Experts

 

Even the experts were surprised to find that more new residential units were started in September than any month since July  2008.

 

Single-family home construction starts were the largest of the increase,  showing that builders are feeling positive and more confident about the housing recovery.  This is good news because in spite of tight financing, builders are delving back in.

 

 Savvy buyers are scrambling to get into properties now as the housing market rebounds.  Low inventory is beginning to push prices up and sellers might want to consider putting their property on the market now instead of after the first of the year when everyone else has the same idea.

 

The National Association of Home Builders/Wells Fargo Housing Market Index showed that builder confidence in the market for new single-family homes rose for the sixth straight month to its highest level since mid-2006.

“It’s no longer a question of whether the industry is rebounding,” Larry Sorsby, chief financial officer of Red Bank, New Jersey-based Hovnanian Enterprises Inc. (HOV), the best-performing homebuilding stock this year, told Bloomberg News in a telephone interview. “There is clear evidence that we have bounced off the bottom and are in the midst of a recovery.”

 

Nancy Puder is the broker and owner of Signature Properties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!

Housing Expectations On The Rise

 

For the eleventh month in a row, consumers have reported that they still feel that this is a good time to buy and more sellers are agreeing that it is also a  good time to sell.

 

As home prices go up,  potential homebuyers realize that if they don't buy soon they will probably pay  more for the same property next year.  Sellers who have been on the fence about selling, are gearing up to move forward as the housing market continues to gain ground.

 

There are still a lot of cash buyers running around and many of those buyers are making offers close to or at listed price.  This is in sharp contrast to the low-ball offer that was typical of an all-cash buyer previously.  Buyers using financing to purchase a home should be aware that well-priced properties are in great demand and they should come in strong with their first offer.

 

Sellers still deciding whether to sell or not, should use this time to inspect their own home for needed maintenance and also consider making improvements so that when the time comes to sell, the property is in good condition and shows well.   This is a win-win situation for property owners because even if they decide not to sell, the repairs or improvements will enhance the enjoyment of the property for years to come.

 

Lastly, buyers and sellers should beware of taking the TV home shows too seriously.  Although they provide some great insights and tools for consumers, we need to remember that it is often staged and produced for a dramatic effect and they are designed for entertainment.  These shows should not take the place of the advice from an experienced professional.

 

Nancy Puder is the broker and owner of Signature Properties, a prestigious real estate sales and property management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!

 

 

 

 

 

 

 

 

 

 

 

Need a Competitive Edge to Buy or Sell

To have a competitive edge in today's market you simply must take some necessary steps to avoid disappointment when you go to buy or sell.  Although the real estate market is improving,  it can still be tricky to accomplish what you set out to do.

 

For buyers, this means that you simply must have a pre-approval letter from a sound and reputable lender if you want the seller to seriously consider your offer.  In some price ranges,  if a property is priced well, it will generate several offers within 1-3 days.  Being first, does not always mean that the seller will work with you. 

 

Not having your financing in place before you look at property, keeps you completely out of the game.  Be prepared to pay close to asking price or even higher unless you have all cash if the home you want is in one of those "hot spots".   Cash buyers should understand that even in certain hot spots, they may have to pay full price to get the property they want.

 

For sellers, it is critical that your home is priced right in the beginning.  Just because you may be hearing that prices are rising, this may not be true yet in your particular neighborhood.  Find a professional agent  who will be straightforward with you and tell you the truth, no matter what you want to get.  Hire one who has embraced the technology of marketing in today's world and who has survived the past few years and even  prospered.  That is the Realtor, who has learned how to make it happen regardless of what the economy is doing.

 

Nancy Puder is the broker and owner of Signature Properties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415. Your calls are always welcome!

 

 

 

 

 

 

 

 

 

Get Heaters & Roofs Checked Now

 

With the cold and rainy season rapidly approaching, now is the time to get your heaters and roofs inspected.   Inspections can usually be obtained  inexpensively and cost anywhere between $75-$150.   Planning in advance, can have benefits and give you  peace of mind once the change in weather occurs.

 

Most homeowners wait until they actually have a leaky roof or the heater stops working to call a professional.  Unfortunately,  what happens is that  many others are experiencing the same problem at the same time.  Vendors get overwhelmed with servie requests and the homeowner is forced to wait until someone is available to come out.  To complicate matters further, these things seem to always  occur on a Friday night or a holiday weekend from my experience

 

Living without a heater during a cold snap or a leaky roof during the rainy season can be quite unpleasant.  My advice is take a moment to have someone come out, do an inspection and perhaps a little maintenance to prevent future problems. The Gas Company will often come out and do a safety check completely free of charge. 

 

If you need a referral to some contactors, let me know. I would be happy to refer some good ones to you!

 

Nancy Puder is the broker and owner of Signature Properties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!

 

Rising Prices Driving Home Sales

With the gradual rise of home prices this year, Corelogic has reported that over 700,000 homeowners came out from being underwater on their mortgages during the first quarter of 2012.  With this information and other encouraging reports from across the country, it seems that we are  definitely moving in the right direction.

 

There are still many homeowners, though, who owe more than their property could sell for today.   That situation will probably continue to improve gradually but will take some time.  The percentage of foreclosed properties has dropped and short sales are definitey easier and faster to obtain this year.

 

I think it is important to take the time to recognize that things are getting better in the real estate market.  It seems that the majority of information that most of us receive is negative and that valid and good reports are often ignored. It is amazing that even when I speak to other professionals in the real estate world, many continue to shake their head and then proceed with a "yes but" and begin to quote what they have been hearing in the media.

 

The truth is that It has become rare these days to hear anything positive about what is going on in our world.   Unfortunately, we frequently do not get an accurate report or full picture of what is really going on in the real estate market through the media.

 

Let's take a moment to celebrate some good news for what it is worth.   It can't hurt anything, can it?    If you would like to receive accurate real estate information on a regular basis instead of relying on the "news", please let me know or check in weekly at www.NancyPuder.com/blog.  I always enjoy hearing from you!

 

Nancy Puder is the broker and owner of Signature Properties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!

 

 

 

 

Real Estate Market Improving on Central Coast!

 The good news is that we are  seeing significant mprovement in our real estate market on  the Central Coast of CA.  Sales are up, mortgage rates are low (and may go even lower), inventory is short and prices appear to be rising in certain "hot spots" due to buyer demand.

 

Although we should recognize that things are definitely better,  I predict that it will still be awhile before we see home values increase by any leaps or bounds.  I believe that home prices will continue to rise slowly but steadily over the next few years. 

 

Today's seller should review all of their options before making a decision to sell.  If you want to sell so that you can buy another home, keep in mind that the home you buy has also been deeply discounted.  When prices go up, so will the home that you are purchasing.  If the home you are purchasing costs more than the one you are selling, you will probably come out ahead in the end.

 

Another option to consider is a remodel.   Think about what you would want if you did purchase another home. If your present home could be expanded or remodeled to satisfy your family's needs, you may want to consider staying where you are for now.

 

If you need to sell and owe more on your mortgage than your home is worth, a short sale is definitely the way to go in most cases.  Short sales have become much easier over the past 2 years but be sure that you use an agent who has done a lot of these and can help to minimize the work necessary on your end!

 

Nancy Puder is the broker and owner of Signature Properties, a prestigious real estate Sales and Management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415  Your calls are always welcome!

 

 

 

 

 

 

 

 

 

Advantages to Buying New Home

No matter what the economic climate, buying a new home always has advantages.  Here are some reasons to consider buying  a new home.

**Ease of Maintenance

Because of vast improvements in efficiency and durability of building materials, new homes don't require as much upkeep as older homes.

**Customization

There is no substitute for living in a home that mirrors your preferences in color, fixtures, floor coverings, appliances and finishing touches.

**Floor Plan

Today's homes emphasize flexible space and flexible usage, which let the homeowners tailor the living area to their evolving needs.

**The Green Factor

The materials used in today's home are far more effective at reducing energy costs than those found in resale homes.

**Technology

It is much easier to add modern conveniences to a new home such as wiring, security systems, surround sound, wireless internet and additional outlets.

**Safety

A new home is subject to the current building codes that require more stringent safety requirements regarding materials and internal systems.

**Warranties & Customer Service

New homes will often come with a complete warranty that covers everything on the house, inside and out sometimes up to 10 years.  Warranties are available on resale homes but are typically for one year only

 

Nancy Puder is the broker and owner of SignatureProperties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!

Top Ten Legal Mistakes Buyers Make

1. Not realizing that if you don't make a strong offer the seller may reject or not respond at all

2. Not realizing that if you don't make a strong offer, you may lose to a more highly motivated buyer

3. Not realizing that the seller has no obligation to keep your offer confidential

4. Not understanding when a contract becomes legally binding

5. Entering into an agreement without checking title, liens etc. to make sure that seller can close the escrow as scheduled

6. Not understanding the legal implications of loan and inspection contingencies, and other contractual provisions

7. Not obtaining a seller's disclosures

8. Not conducting your own inspections and investigations as the buyer

9. Not fully understanding the legal, tax, credit and other ramifications of homeownership, especially co-ownership

10. Not properly handling a claim for property defects discovered after close of escrow

Nancy Puder is the broker and owner of SignatureProperties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!

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Embracing the New Normal in Real Estate

As we are cautiously engaging the new reality of our housing economy, we need to pause and ponder some of the lessons we have learned over the past ten years so that we do not repeat the same mistakes.    Following are 10 lessons to keep in mind.

1.  The economy cannot recover without housing.

2.  Everyone needs shelter, but not everyone needs to own their shelter.

3.  High homeownership rates are important but they must be sustainable.

4.  Home prices go up and go DOWN.

5.  The process of purchasing /financing a home is now more complicated.

6.  Sound underwriting of mortgages is critical.

7.  Home equity should not be used for ordinary living expenses.

8.  Financial reserves for family, companies, and countries are necessary.

9.  Homeowners confidence in the economy is directly related to the value of their own homes.

10. The economy is global.

What is important is that we remember what happened as we prepare to write the future.  Most importantly, we should also have a sense of accomplishment that we endured these life lessons.

There are seasons in the weather: spring, summer, fall and winter.  So there are in economic cycles.  It is great to be at the thaw of winter and the budding of spring.

Nancy Puder is the broker and owner of SignatureProperties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!

Finally, It's Time to Buy a House!

Warren Buffett once said: "Be fearful when others are greedy, be greedy when others are fearful."  If you're not instinctively scared of the housing market, then you probably aren't afraid of tidal waves, global warming and other "might be's".

The fact that everyone is scared to dabble in housing makes it a close-to-perfect investment based on Mr. Buffett's principle. But buying real estate is a good long-term investment for many more reasons, some of which have only become apparent in recent weeks.

The most striking: Housing prices rose sharply from April to May. The S&P/Case-Shiller Index rose 2.2% in 20 of the nation's big cities. Prices shot up more than 3% in Chicago, Atlanta, San Francisco and Minneapolis. Even Detroit's housing market scored a gain, inching up by 0.4%.

It is now officially cheaper to buy in 100 metropolitan cities than it is to rent! In other words, if you can buy a home today, you can save the difference it would cost you to rent even if you stay in the home just five years. If you can buy a property and rent it, it is almost certain that the rent will cover the cost of the financing—and the property will appreciate.

Here's where the fear comes in. From 30% to 50% of existing mortgages in the U.S. market are underwater, depending on the estimate. That means many borrowers are trapped in their homes and loans. They either can keep paying and hope prices will improve or walk away, putting downward pressure on home prices.  But if you aren't planning to move out anytime soon and have job security, what's the problem?  Even if prices fall again or don't rise significantly, you will still own your own home and eventually it will be paid off.  You get to pay less taxes and no one can tell you what you can do to your own home or ask you to leave!

While there is plenty to be afraid of when it comes to home buying,  in the current investing climate, housing presents an attractive long-term investment that should hold steady or even have upside surprise in the short term.

Mr. Buffett would remind us that investments of any kind are not without risk. Each should be considered with the investor's time horizon and appetites. But he also has acknowledged that real estate is especially attractive when financing is cheap, there is pent-up demand and prices have been driven down by a spooked market. Put another way, it's time to be greedy.