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Monday, April 30, 2012

Buy, Fix and Hold. An investment strategy in 2012 Sacramento Real Estate




Doug Reynolds, a Sacramento Area Realtor, discuss an investor strategy that will be prevalent in the 2012 Sacramento Real Estate Market.  It's called: Buy, Fix and Hold.  Now that the market has bottomed out in the area, investors who have been sitting on large amounts of cash are now picking up real estate investments.  They are purchasing homes that are in poor or fair condition, fixing them up to be in average to good condition and then renting them out to be held for 5 to 15 years.  This is one of the reasons for very high buyer demand in the Sacramento area for 2012 and why the market is now a sellers market with very little inventory.
clear skies,
Doug Reynolds
 

Wednesday, April 25, 2012

Changes in F.H.A. Fees


As the cost of FHA financing continues to go up, Conventional financing is gaining more and more traction with First Time home Buyers.  I have an excellent loan officer that offers 5% conventional financing that ends up being a better loan product in most cases than FHA.



FEES charged on mortgages backed by the Federal Housing Administration are set to change this spring; they’ll go up for some and down for others.

In a nutshell, here is what’s happening: Fees for refinancing will fall sharply, as the upfront mortgage insurance decreases to 0.01 percent of the base loan amount, from 1 percent, starting on June 11. For buyers, the upfront mortgage insurance premium will increase to 1.7 percent of the loan amount, from 1 percent, effective April 9, and annual insurance costs, paid monthly, will rise 0.10 percentage points. Those with so-called jumbo loans, those above $625,500, will see a 0.35-percentage-point jump in the annual insurance premium, effective June 1.
The F.H.A. announced these changes over the last several weeks; they reflect an Obama administration initiative to make refinancing easier and more affordable for the three million or so homeowners with F.H.A. mortgages. The reduction in refinancing fees applies to those borrowers who are current on payments.
clear skies,
Doug Reynolds
 
www.BHGshortsales.com

Tuesday, April 24, 2012

Getting your Short Sale offer accepted in a Sacramento Sellers Market




Doug Reynolds, a Sacramento Area Realtor, discusses the best ways to write an offer in this 2012 Sacramento Sellers Market.  There is low inventory and high demand, so buyers need to write their offers "clean" on short sales to have a chance at getting accepted by the seller and approved by the short sale lender.  Short sale sellers should also be looking for these items in their received offers.
clear skies,
Doug Reynolds
 
www.BHGshortsales.com

Thursday, April 19, 2012

Get Your House Ready To Sell



Failure to Prepare Your Home’s Appearance for the Buying Eye
When buyers look at a property, they are looking for a home, NOT a house. Impressions and emotions are vital to a buyer’s decision-making process. They are seeking a certain feeling, a place in which they’d be comfortable living. So if you want to sell your home, give the buyer that feeling that they are “home.”

Let’s examine the emotional factors influencing the choices made by the buyer. Emotions are one of, if not the most important factor for swaying a buyer’s opinion for or against a property. It is the emotional response that decides whether the logic should start to function. Remember, buyers will be looking at many homes, often professionally decorated homes. So it’s critical to make your home compete, to make the best impression possible.

Key Tip: It’s a well-known fact that women buy and men sell. The buying experience is usually an emotional one, and by nature, women experience a lot more emotion than men. So, first appeal to the woman’s emotions…and then to the man’s logic. If she is emotional enough about the home, he will justify it and make it happen!

A Home for Living and a Home for Selling
Are Completely Different Environments


To sell your home, it must look very different from the way it looks when you are living there. Think about it; when you watch your favorite sitcom, the
family’s house doesn’t look like yours, but you automatically believe that it functions that way. It has been specifically designed to make your eye see it as a regular, every day, livable home. What makes your job a bit more challenging than the sitcom set designers is that you have three other senses to appeal to. Don’t worry though; it’s easier than you think! Here are a few tried and true tips for showcasing your home for sale:

  • The first impression is the decision maker for a buyer. The first impression is the one that will last, and it cannot be made twice. Make sure you know what a buyer is looking for. Put yourself in the buyer’s shoes before the buyer ever takes a step inside. Get into your car go for a quick drive and then return to your home as if you were coming to see it for the first time. Take a good look at the house and the property. How does it look? Is the landscaping neat? Are there stains in the driveway? Does it look cluttered? Remember, the buyer is seeking the appearance of a well-maintained property. Give it to them!
  • Look at the outside of your home. How is the paint, the trim, even the color - is it chipping, fading, out of style for two decades? Does the roof look healthy? What is the first thing you notice as you approach your home?
  • Tour your own home. Concentrate on the impression of your senses: smell, touch, sight, and hearing. Walk through each and every room while focusing on these senses. Be sure to keep an eye and nose ready for flooring and carpet stains and odors.
  • De-Clutter.  If it’s not essential, put it away. Pack up any extra furniture,
appliances, dishes and knick-knacks. Your home should appear neat, fresh, orderly and be easy for the buyer to imagine moving their belongings into. The buyer will expect the garage to be full of storage, but it will only pass the test if it is also clean and neat.
  • Hire a professional cleaning company to clean your home. For the difference it makes in rooms, especially the kitchen, the bathrooms and the bedrooms, you’ll be assured a faster sale, and a better selling price for your home.
  • Pets can often be the anti-sale. Make sure that they cannot be seen or smelled by the buyer. Take the pet out of the house when the buyer is there, and take extra care to remove the pet’s odor. Remember, you’re accustomed to it, but it is very present to the buyer who is nitpicking for their future home.
  • A bright and well-lit room is a must for buyers. Before the buyer gets there, open all blinds and curtains and turn on all lights. Note: at night, do the same thing, but keep the blinds and curtains closed in front for privacy while keeping them open to the pretty parts of the yard, thus making your living space look larger.
  • Turn off all appliances and noise-makers such as the television, the radio, and anything that will distract the buyer’s attention from your  home.
clear skies,
Doug Reynolds
 

Wednesday, April 18, 2012

Sacramento County Real Estate Video Update April - May 2012


Doug Reynolds, a Sacramento Area Realtor, discusses the latest real estate data for March 2012 in Sacramento County Real Estate. Due to low inventory and high buyer demand, the market has shifted to a sellers market where properties are selling quickly with multiple offers.  The median sales prices has now increased for two straight months, indicating the bottom of the market has passed.  Also discussed, is the "Perfect Storm" currently going on in the Sacramento area.  It's both a great time to sell and also a great time buy due to low prices and low interest rates (it's just tough to get an accepted offer right now due to the buyer competition.)

clear skies,
Doug Reynolds
 

Monday, April 16, 2012

Talking Points



  • On closing day, most home buyers are excited about the prospect of moving into their new home.  One important final step must be accomplished before settlement: A final walk-through.
  • While plenty of buyers whip through each room with a glance, eager to unpack, real estate experts suggest home buyers are better served by a slow and careful inspection.
  • While some REALTORS® recommend conducting the final walkthrough hours before closing, others advise doing the walkthrough the day prior.  However, if a significant weather event has occurred between the last time the buyer saw the house and settlement day, like a windstorm, heavy rain, or snowfall, buyers should visit the home again to check on the condition just before settlement.  Once the settlement papers are signed, the seller has no obligation to fix anything anymore.
clear skies,
Doug Reynolds
 
www.BHGshortsales.com

Thursday, April 12, 2012

Sacramento County Housing Statistics for March 2012




Prices Rise for Second Straight Month – Bottom of the Market has Passed
In the Sacramento Area, the median sales price of single family homes has rose for the second straight month.  The median price for March 2012 was $165,900.  Up from $160,000 in January 2012.  The increase in price is due to the economics of Supply and Demand.
Low Supply: Currently, the amount of homes for sale on the market (inventory) is at 1.1 months.  That means at the current rate of sales, if no new homes came on the market, we would sell out of homes in only 1.1 months.  That is lowest amount of inventory EVER on record in the Sacramento Area.  A “normal” or “balanced” market is considered to be around 5 months of inventory.  The peak of the inventory was in September 2007 with 14.2 months of inventory.  Since then, the banks have been more cautious about putting too many homes on the market at one time, short sales have been succeeding at a higher rate, many investors began purchasing properties at auction before they had a chance to come on the market and now some banks are even beginning to rent properties out and also sale in bulk to large investors where 500 homes are purchased at one time and never make it to the open market.
High Demand: Many investors and potential buyers have been sitting on the sidelines while prices where in a free fall a few years ago.  Once interest rates reached the 4% range, many first time buyers got into the game and began purchasing.  The investors saw the activity increasing and realized the bottom of the market was coming and are now writing all cash offers on many properties to either flip or hold and rent as investments for the long term.  Currently, due to the low supply and high demand, most homes that hit the market are receiving multiple offers, all cash offers and offers above the list price.  The demand has not been this high for the past 7 years.  Because of that, many sellers are choosing now as a great time to put there house on the market as the Sacramento Market has shifted to a “Seller’s Market.”




clear skies,
Doug Reynolds
 

Wednesday, April 11, 2012

FHA Mortgages Are Poised to Get More Expensive



As the cost of FHA financing continues to go up, Conventional financing is gaining more and more traction with First Time home Buyers.  I have an excellent loan officer that offers 5% conventional financing that ends up being a better loan product in most cases than FHA.

The Federal Housing Administration (FHA) plans to impose significant restrictions on the amount of money that sellers can contribute at closing in the near future.  The FHA also will be raising its mortgage insurance premiums during the coming weeks, increasing charges for new purchases across the board.
Making sense of the story
  • One reason for the increase in fees is that over the last six years, the number of FHA loans used by buyers has increased significantly.  The housing program is financing 40 percent or more of all new-home purchases in some areas and is a crucial resource for first-time buyers and moderate-income families.  This is especially because of the low 3.5 percent down payment required for most FHA loans.
  • During this span of rapid growth, the FHA’s insurance fund capital reserves have steadily deteriorated – far below congressionally mandated levels.  And delinquencies have been increasing.  As a result, the FHA is under the gun to get its own house in order, cut insurance claims, and rebuild its reserves. 
  • Under the changes, the FHA will lower its seller concession cap to 3 percent of the home price or $6,000, whichever is greater.  Currently, the FHA allows up to 6 percent of the price of the house to go toward buyers’ closing costs.
  • Beyond that change, the FHA also plans significant increases in insurance premiums – upfront premiums will rise to 1.75 percent from 1 percent, effective April 1, and annual premiums will increase by 0.1 percent on all loans under $625,000 and 0.35 percent on mortgage amounts above that, effective June 1.
clear skies,
Doug Reynolds
 

Tuesday, April 10, 2012

3 Steps to Getting Your House Sold



Doug Reynolds, a Sacramento Area Realtor, gives the three most important steps for a seller to ensure their homes get sold fast and for the highest amount of money: 1) Make sure the home shows well. Clear clutter, no odors, no personal photos/items, lights on and great curb appeal. 2) Make sure you pick a Realtor that Markets the home well. Many good quality photos, virtual tour, and the property should be on all of the major real estate websites to reach as many consumers as possible. 3) Price the home Right.  create competition between buyers to have a choice of the best offer so you can get it sold for the highest price.


clear skies,
Doug Reynolds
 
www.BHGshortsales.com
 

Monday, April 9, 2012

Sierra Oaks, Wilhaggin, Del Dayo and Shelfield - Sales Data for March 2012


There were 12 homes sold in Sierra Oaks, Wilhaggin, Del Dayo and Shelfield in the month of March 2012 . This is a increase from the 5 sold in  February 2011.  Here are the addresses and specific details:



 

Currently there are: 38 active listings, 3 active short sale listings, 13 contingent short sale listings, and 14 pending sales.

If you would like more information (pictures, listing history, what type of sales they were, etc.) feel free to call or email and I’d be happy to provide that for you.  Call or email me if you are looking to buy or sell in the Sierra Oaks, Wilhaggin, Del Dayo and Shelfield areas.

clear skies,
Doug Reynolds
 
www.BHGshortsales.com

Arden Park and Arden Oaks - Sales Data for March 2012


There were 8 homes sold in Arden Park and Arden Oaks in March 2012.  That is slight increase from the 5 sold in the month of  February  2012.  Here are the addresses and specific information:


 



There are currently: 23 active listings, 3 active short sale listings, 4 contingent short sale listings, and 5 pending sales.

If you would like more information (pictures, listing history, what type of sales they were, etc.) feel free to call or email and I’d be happy to provide that for you.  Call or email me if you are looking to buy or sell in the Arden Park or Arden Oaks area.

clear skies,
Doug Reynolds
 

Elmhurst and Tahoe Park Sales Data - March 2012 (Sacramento, Ca)


There were 9 homes sold in Elmhurst and Tahoe Park in the month of March 2012.  That is a slight decrease from the 10 homes sold in the area in the month of  February 2012.  Here are the addresses and specific information.





Currently there are: 17 active listings, 5 active short sales, 15 contingent short sales, and 16 pending sales.
If you would like more information (pictures, listing history, what type of sales they were, etc.) feel free to call or email and I’d be happy to provide that for you.  Call or email me if you are looking to buy or sell in the Tahoe Park / Elmhurst area.
 
clear skies,
Doug Reynolds
 
www.BHGshortsales.com

Land Park and Curtis Park Sales Data - March 2012 (Sacramento, Ca)



There were 17  homes sold in Land Park and Curtis Park in the month of March 2012 .  That is a slight decrease from the 18  homes sold in the month of  February 2012.  Here are the addresses and specific information.








 Currently there are: 33 Active listings, 3 Active short sale listings, 0 Contingent short sale listings, and 13 Pending sales.

If you would like more information (pictures, listing history, what type of sales they were, etc.) feel free to call or email and I’d be happy to provide that for you.  Call or email me if you are looking to buy or sell in the Land Park or Curtis Park area.


clear skies,
Doug Reynolds
 
www.BHGshortsales.com
 

East Sacramento: McKinley Park, Fab 40's, River Park, East Sac, East Portal Park - Sales Data for March 2012


There were 27 homes sold in East Sacramento in the month of March , 2012.  That is a slight increase from the 26 homes sold in the area in the month of  February  2012 .  Here are the addresses and specific information.







Currently there are: 43 Active listings, 5 Active short sale listings, 12 Contingent short sale listings, and 26 Pending Sales.
If you would like more information (pictures, listing history, what type of sales they were, etc.) feel free to call or email and I’d be happy to provide that for you.  Call or email me if you are looking to buy or sell in the East Sacramento area.
clear skies,
Doug Reynolds
 
www.BHGshortsales.com

Thursday, April 5, 2012

Rosemont Sales in March 2012 (Sacramento, Ca)


There were 29 homes sold in Rosemont in the month of March, 2012.  That is a large increase from the 17 that sold in February.  Here are the addresses and specific information.

 
 

Currently there are: 13 Active listings, 10 Active short sale listings, 27 Contingent Short Sales  and 28Pending Sales

If you would like more information (pictures, listing history, what type of sales they were, etc.) feel free to call or email and I’d be happy to provide that for you.  Call or email me if you are looking to buy or sell in the 95826 zip code.  Check back each month for the updated statistics, as I keep a close eye on the 95826 zip code, where I live and own rental property.  Let me know if there are any particular properties you have questions about. 


clear skies,
Doug Reynolds
 
www.BHGshortsales.com

College Greens / Glenbrook Sales in March 2012 (Sacramento, Ca)


There were 18 homes sold in College Greens / Glenbrook for the month of March, 2011.  That is an increase from the 12 sold in February.  Here are the addresses and specific information.











Currently there are: 12 Active listings, 3 Active short sale listings, 24 Contingent Short Sales  and 19 Pending Sales

If you would like more information (pictures, listing history, what type of sales they were, etc.) feel free to call or email and I’d be happy to provide that for you.  Call or email me if you are looking to buy or sell in the 95826 zip code.  Check back each month for the updated statistics, as I keep a close eye on the 95826 zip code, where I live and own rental property.  Let me know if there are any particular properties you have questions about. 

clear skies,
Doug Reynolds
 
www.BHGshortsales.com