BUYING VS. RENTING

Almost $1M Homes Return to Positive Equity

During the first quarter of 2013, approximately 850,000 more homes have regained positive equity according to Core Logic.  This is exciting news for homeowners across the country and an incentive to buyers who have been waiting to purchase.

 

Reportedly, we now have 39 million homes with positive equity and the negative equity burden is continuing to recede across the country due to rising home prices.  

 

Before we get too excited, we need to understand that the housing recovery is still far below when home prices peaked, but tight housing supply in many areas coupled with continued demand for single family homes should help close the gap.

 

Meanwhile nearly 97 million or about 20% of homes with mortgages were still reported with negative equity.  This figure is drastically down, however, and borrowers have good reason to feel hopeful that their equity will return before too long.

 

Nevada shows the highest percentage of mortgaged properties with negative equity at 45.4%, followed closely by Florida and Michigan.

 

Home prices in our area on the Central Coast of California are moderately rising resulting in some bidding wars on the most competitively priced properties.  

 

The cost of renting vs. buying now is about the same which is fueling an enormous increase of activity in the lower price levels.

 

Nancy Puder is a Real Estate Broker in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 She always enjoys hearing from you!

Home Warranties Benefit Buyers and Sellers

Whether you're buying or selling a home, a home warranty is an excellent investment. If you're selling a home, the last thing you want to do is spend a lot of money, if a system or appliance stops working. And if you're buying a home or you already own your home, it's nice to know that you are protected from expensive repair and replacement costs.

 

Whether you are a buyer or seller you'll appreciate the numerous benefits and conveniences that you get from a home warranty.

 

Benefits for Sellers

• Most buyers will ask for a warranty anyway.  Most sellers aren't aware that they can include seller coverage during the listing period also and is often free.

• Attract more first-time home buyers. Provide peace of mind for buyers who might be intimidated by the high cost of repairing or replacing systems or appliances.

• No after-sale worries. If a breakdown happens after closing, the buyer will turn to the warranty for help in most cases.

 

Benefits for Buyers

• Save money and protect your budget. Rather than paying hundreds or thousands of dollars to repair or replace an appliance or home system, you'll pay a standard deductible per service call, per trade, on covered components.

• Most warranty companies will repair or replace covered systems and appliances no matter the age, make or model. Plus, there are no home square footage restrictions and no inspection required.

• Most warranties are renewable and for a few hundred dollars per year, you can continue your coverage.

 

Nancy Puder is a well-known real estate broker in Arroyo Grande.  You may contact her at Nancy@NancyPuder.com or call (805)710-2415.  She always enjoys hearing from you!

 

 

Top 10 Reasons to be Optimistic About Real Estate...

There are many indicators that the housing market is well on the road to recovery.  Here are 10 top reasons to be optimistic!

 

1. Home prices are going up

 

2. More new households are being formed

 

3. Foreclosures are way down

 

4. Interest rates are predicted to remain low

 

5. Demands for home loans are increasing

 

6. More Americans agree that this is a good time to sell

 

7. The number of improving housing markets is going up

 

8. Builder confidence is up resulting in more housing starts

 

9. As housing prices go up, people are getting their equity back and so fewer people are "underwater" with their mortgages

 

10. Real Estate is contributing to the overall economic recovery

 

If I can help you sort through your individual situation, please let me know.  I always enjoy hearing from you! 

 

Nancy Puder is the owner and broker of Signature Properties located in Arroyo Grande, CA. You may reach her at (805)710-2415 or nancy@nancypuder.com

Landscaping Affects Value

Most appraisers agree that if a home has nice landscaping, it can often enhance the value and reduce a home’s time on the market.  If landscaping is not kept up or is deteriorating,  it can often lower the value and lengthen the time a home remains for sale. 

 

Curb appeal is essential when selling a home.  This is the homeowner’s chance to make a great first impression. A home with boring landscape or in need of an exterior paint job will be unappealing to prospective buyers and they will factor these issues into their offering price if they make an offer at all.

 

Since landscaping improvements could make an impact on the resale value, homeowners should consider how long they plan to be in the home and whether to make short-term updates or plan for several years.

 

Here are some tips for homeowners to retain or improve their curb appeal

• Keep your landscape design in line with comparable properties in the area.  You don't want to copy your neighbor's design, but be sure that you complement each other's homes.

 

• Imagine yourself as a buyer and driving up to your home for the first time.  Does it make you feel excited about going inside?

 

• Don't overdo it!  Landscaping that requires little or no water to maintain can be quite desirable depending on where you live.  Don't be extreme in either direction.

 

• Remove weak, old or damaged trees planted too close to a home or building that could provide a danger to the home.  Homeowners should also be sure that mulching or beds don’t get too close to wood around foundations to avoid wood-destroying organisms.

In many cases, it is not necessary to spend a lot to give your home curb appeal.  A little creativity can go a long way with landscaping.  If you are not naturally talented in this area, professional help with design will often pay for itself in the end.

 

Nancy Puder is a real estate broker in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415. She always enjoys hearing from you!


 

 

Hot Market Some Homes Selling Slow

Sellers should understand that even if houses are selling fast in your area it doesn't mean that yours will. 

Some reasons why your home may not sell is that it is priced too high, there are excessive restrictions on access to buyers and agents, there is a failure to clean or make repairs and, of course, there could also be a variety of other marketing reasons.

With a sellers' markets underway in dozens of metropolitan areas around the country, new research has found that curious statistical patterns are emerging: Even in cities where listings get multiple offers within days or hours, significant numbers of homes are sitting on the market for six months, 12 months or more with no takers.

 

Despite roaring sales paces all around them, for one reason or another these houses aren't selling.   Everyone is talking about "low inventory" right now but little is being said about this fairly common situation in all areas including the Central Coast of CA

Nationally, according to new data from the National Association of Realtors, 44% of all new listings take 90 days or more to sell, 22% take six to 12 months and 9% take more than a year.

 

When agents discuss among themselves the reasons that certain homes aren't selling, the most often phrase used is "self-sabotage".   Although sellers don't intentionally self-sabotage their own sale, their need to make unrealistic demands often brings them no sale at all.  Once it is known that the seller has rejected reasonable offers and refused to negotiate, buyers and agents begin to avoid their property.  Often, once the seller decides to be realistic, they have already created a negative impression and end up taking less than if they had been reasonable in the first place.

Restrictions on when and by whom the house can be shown is another big reason homes don't sell. For example, sellers who will only allow showings between 10 a.m. and noon on Saturdays, or who require a 24-hour advance notice before appointments to show during the week, or who won't let anyone in unless they or the listing agent are present, inevitably delay offers and sales.

Other reasons homes don't sell:

•Poorly cleaned, messy houses with obvious deferred maintenance.

•Sellers who insist on being present (or hover nearby) when shoppers visit so they can point out every feature they improved or like. Better for sellers to be out of the house or out of sight.

•Smells inside the house that are either bad (especially from dogs, cats and other pets) or come across as contrived, such as scented candles, potpourri plug-ins, etc. When buyers encounter obviously artificial smells they wonder: What are the owners covering up?

 

You've got to think of it as a product you're marketing, not just as your home. Get it in shape to sell. Price it realistically. Be flexible and cooperative on showings and negotiations. Unless it has grossly off-putting features (costly physical defects, ugly design, bad location, bad schools) your property should sell.

 

Nancy Puder is the broker and owner of Signature Properties, a real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415. She always enjoys hearing from you!

Buying a Home?

You've decided to buy a home and now you want to look at properties.  Stop!  The best way to start is to get a referral to a mortgage lender and get pre-qualified.  The fact is that most sellers won't even look at your offer without a pre-qualification or pre-approval letter unless, of course your plan is to pay all cash.  If you are planning to pay cash, any savy seller will require documentation that you have the funds available in your account.  A common response from a potential buyer when asked if they have been pre-qualified  is "I will get the pre-qualification letter if I find something I like". 

 

The problem with this attitude is that if the perfect house comes up, you probably won't get it.  Most listings that are priced right and show well in a desirable neighborhood are not only selling quickly but are also receiving multiple offers.  No rational seller is going to make an already pre-qualified buyer wait while you go out and get your loan approval.  

 

Most good Realtors will actually require that a buyer get pre-qualified before taking them out and showing them houses.  That is only fair since Realtors only get paid if they sell something.  Why should a Realtor spend countless hours with a buyer unless they are willing to show that they are able to perform? If you do manage to convince a good Realtor to take you out anyway, they probably won't call you first about the best deals that come up.  They will naturally call the other buyers they are working with who have taken this important first step. 

 

With loans as complicated as they are these days, I see the most problems with the high income earners who think they are just fine.  Trust me, an hour spent with a lender, will save you countless hours of hassle and sometimes thousands of dollars as you move forward toward a purchase!

 

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!