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.

Selling in Today's Market

As with many businesses, the world of real estate is often driven and operated quite differently than the general public views it.  For example,  a misconception that many  sellers have is that once they attract and secure a buyer with a signed contract,  the hard part is over.

The truth is that the real work and required skills emerge after the initial negotiations and the escrow is started.   Even with a cash buyer, there are steps that need to be handled properly and skillfully to bring the escrow to a successful close.  If the buyer is obtaining financing, the amount of steps that need to be navigated through increase significantly.

One mistake that a seller should avoid is accepting the highest offer without any consideration to the contractual terms of the agreement.  Another mistake  is not handling a multiple offer situation correctly.  This is when more than one buyer, sometimes several buyers, make an offer on the property at the same time.  While this can be an exciting process, it needs to be handled correctly so that the best offer is secured and  the seller does not leave themselves in a legally liable situation with the competing buyers.

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!