Sacramento Real Estate Explained: Home Buying Process

Hi, I'm Doug Reynolds.
I'm a Realtor in the Greater Sacramento Area and have been a full time agent since 2006.

In This Video, i talk about all the steps in the home buying process.  This is a very quick overview but it can give you some knowledge and direction if you are just starting to think about buying a home.  Ultimately, you want to find a great Real Estate Agent that is experienced and can walk you through this entire process from start to finish.

So, take a look at the video to understand the overall process of purchasing a home.


This video should provide great info if you are getting close to buying or selling and want to educate yourself.

Connect with Doug Reynolds Real Estate via Facebook, YouTube, and Follow his Blog.

clear skies,

Doug Reynolds

Realtor

916-494-8441

         

www.RealEstateWithDoug.com

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

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-Glen Real Estate Update Q1 2012 - Sacramento, Ca - College Greens, Glenbrook

Real Estate Agent, Doug Reynolds, is a resident and specialist of the College Greens/Glenbrook neighborhood in Sacramento, Ca.  This video details the 2012 first Quarter Real Estate statistics in the neighborhood.  He also shows a comparison to last quarter and the quarter from one year ago.  In 2012 Q1, the neighborhood saw an unusual spike in distressed bank owned properties.  These poor condition sales drove down the median price.  But don't be fooled, the neighborhood is currently experiencing a Seller's Market.  The homes that show well, are marketed well and priced right are getting multiple offers, over list price in just a few days.  A good quality 3 or 4 bedroom house in the neighborhood is now selling between $230,000 and $250,000.  And there appears to be some appreciation still to come as well look into Q2.

Call or email Doug Reynolds if you have any Real Estate needs in the College Greens/Glenbrook neighborhood. www.CollegeGlenRealEstate.com 

clear skies,

Doug Reynolds

 

www.BHGshortsales.com

Answers for First-Time Buyers

March 2, 2012| by Sarah Stelmok, ABR, GRI, e-Pro

Many people in the market today are first-time home buyers who would not have been able to buy when home prices were higher. Enticed both by lower prices and bank promotions, these eager hopefuls are have taken the signs of deals as the best chance to make their first real estate move  .

While all home buyers need help with the short sale process, it’s especially challenging to address the needs and concerns of a first-time home buyer who has decided a short sale is the home for them. Here’s how to get answers to first-time home buyers’ top three questions about short sales.

1. How long does it take for a bank to approve a short sale?

This is the million-dollar question. While it takes an average of three to six months, the timeline – and the process – vary quite a bit from one bank to another.

Short sale approval timelines depend on the bank (some just take longer than others). While each bank has different short sale guidelines, the short sale has to make sense to the bank. The more sense the short sale offer makes to the bank, the faster the approval process.

Here are some things that slow down the process by several weeks or more – these usually involve more people or more factors:

·         Multiple liens on the property

·         A third party negotiating the short sale on behalf of a seller. Some states allow third parties to do this, for a fee; some states, like Virginia, limit this to real estate licensees, attorneys, and employees of attorneys.  

·         Private Mortgage Insurance (PMI) on the property

·         Additional investors

Action: To make an accurate prediction about the short sale timeline for a particular property, research the bank’s general timelines, the property’s liens, and whether there is PMI before writing the offer.

2. Will the bank make repairs to the property?

The short answer is, probably not.

Here’s why:

·         The bank does not have possession of the property and has no authority to make repairs on behalf of the seller.

·         Many short-sale sellers do not have the financial means to make repairs.

·         Many banks require the short sale to be sold strictly “as-is” and do not allow the seller to pay for any repairs.

Why wouldn’t a bank allow the seller to make repairs? your buyer may ask. A short sale is a sticky situation for a bank, and that the bank wants to avoid potential liability. For example, if the bank allowed the seller to make repairs and the repairs proved to be faulty, the buyer might potentially hold the bank liable, since the seller doesn’t have money (which is how the short-sale situation came about in the first place).

Action: Find out how the bank and the seller feel about making possible repairs. A short-sale buyer needs to understand that the home will most likely be sold strictly “as-is” and all repairs will be at their expense.

3. How do other types of debt affect the short sale outcome?

Many short-sale sellers are more than just “house-poor.” Many have additional debts that place a cloud on title. These include tax liens – income and property, medical liens, mechanic’s liens, and child support judgments.

Depending on your state, some creditors can try to collect debt by going to civil court and getting a judgment lien placed on the property against the homeowner. These liens must be cleared before the short sale transaction can be closed.

·         Surprisingly, tax liens are probably the easiest to clear off the title. The IRS has several avenues to collect back taxes, and doesn’t want to become a real estate holding company. Removing a tax lien can take up to 120 days, so it is imperative that this process is started well in advance of the short sale.

·         Medical liens can usually be negotiated and a payment plan worked out. However, this is a time-consuming process and needs to be started as soon as possible.

·         Mechanic’s liens are a little harder to get removed. There is not much recourse for tradespeople and bad debts.

·         Child support judgments are also difficult to remove because they usually involve government agencies.

In short, additional debts can tie up the short sale process.

Action: Make sure to ask the listing agent if a preliminary title search has been performed on the property so you can know about possible obstacles.

clear skies,

Doug Reynolds

 

www.BHGshortsales.com

Don’t Forget To Save Money On Your Taxes This Year

Homeowners should be aware of these tax breaks that they may be eligible to receive. Consult a Certified and licensed Tax Professional.

• Mortgage interest: Homeowners are generally entitled to reduce their taxable income by the amount of mortgage interest they pay, as long as they itemize deductions on their tax returns. 
• Private mortgage insurance: Homeowners who are paying PMI likely will be able to fully deduct the amount, as long as their adjusted gross income is $100,000 or less ($50,000 for married taxpayers filing separately).  Borrowers with incomes above $100,000 may qualify for a partial deduction.
• Energy-efficient home improvements: If windows, doors, or skylights that meet the requirements of the federal Energy Star program were installed in 2011, homeowners can get a tax credit equal to 10 percent of the product’s costs.
• Points: The charges a borrower paid in points to get a mortgage are generally deductible if it was a first mortgage on the property.  In the case of a refinance loan, all or some of the point charges might be deductible, but it gets complicated.

·         Property taxes: The amount paid in property taxes is deductible as long as it is based on the assessed value of the property.  If the mortgage company collects money for property taxes, the amount actually paid should be on the 1098 form lenders send out each January.

clear skies,
Doug Reynolds
 
www.BHGshortsales.com

 

Sacramento County Housing Statistics for February 2012

Median Sales price Rises!

The law of supply and demand are beginning to take effect in the Sacramento Area Real Estate Market.  For months and months I’ve been sharing how there is extremely low inventory and huge buyer demand, multiple offers and bidding wars on well-priced houses.  February 2012 is showing that in the numbers now.  The median sales price increase by 1.9% from January to a new median of $163,000.  For over a year, the median price has been in the 160 range, showing a sign of flattening/bottoming in our area.  The inventory is at its lowest level in the history of Sacramento Real Estate.  1.6 months is considered a sellers’ market as 6 months is the bench mark for a “Balanced Market.”  I am continuing to call it a “Price sensitive seller’s market.”  If a home is priced right, shows well and is marketed well then it is selling with multiple offers in a few days and in most cases for above the listing price. 

The amount of sales for February 2012 are 8.1% higher than January and 16.1% higher than one year ago.  The balance of types of sales continues at 33%.  1/3 bank owned sales, 1/3 short sales and 1/3 equity sales.  I expect the trend of low inventory, high sales and a flattened sales price to continue through the year as the median price starts to climb its way back up a little bit by the end of the year.

clear skies,

Doug Reynolds

 

www.BHGshortsales.com

First Time Home Buyer Thoughts

• Home buying doesn’t begin with home searching; it begins with a mortgage pre-approval.  Often, first-time home buyers fear getting pre-approved because they’re afraid the lender may tell them they do not qualify for a mortgage or they qualify for a loan smaller than expected.  However, by getting preapproved, buyers will make a financial decision rather than an emotion one.
• Another mistake first-time home buyers make is not thinking of a house as a long-term commitment.  If a buyer may have to switch jobs in a year or two and may have to move for the job, they should think twice about buying a house.  Ideally, buyers should picture themselves living in the house for five to seven years.
• Some first-time buyers make the mistake of spending all of their savings on the down payment, closing costs, and coming up with a 20 percent down payment to avoid paying for mortgage insurance.  However, most real estate experts advise against this because the borrower will be left with no savings at all for home repairs and other unexpected expenses.

clear skies,

Doug Reynolds

 

www.BHGshortsales.com

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

There were 5 homes sold in Sierra Oaks, Wilhaggin, Del Dayo and Shelfield in the month of February 2012 .  This is a increase from the 3 sold in January  2011.  Here are the addresses and specific details:

Currently there are: 39 active listings, 4 active short sale listings, 13 contingent short sale listings, and 12 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 February 2012

There were 5 homes sold in Arden Park and Arden Oaks in February 2012.  That is slight decrease from the 6 sold in the month of January 2012.  Here are the addresses and specific information:

There are currently: 18 active listings, 3 active short sale listings, 6 contingent short sale listings, and 9 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
 
www.BHGshortsales.com

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

There were 10 homes sold in Elmhurst and Tahoe Park in the month of February 2012.  That is a decrease from the 11 homes sold in the area in the month of January 2012.  Here are the addresses and specific information.

Currently there are: 10 active listings, 7 active short sales, 17 contingent short sales, 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 Tahoe Park / Elmhurst area.

 

clear skies,
Doug Reynolds
 
www.BHGshortsales.com

Rosemont Sales in February 2012 (Sacramento, Ca)

There were 20homes sold in Rosemont in the month of February, 2012.  That is slight increase from the 17 that sold in January .  Here are the addresses and specific information.

Currently there are: 17 Active listings, 9 Active short sale listings, 31Contingent Short Sales  and 29Pending 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

Pay Off Mortgage Early To Save Money

By Marcie Geffner, Associated Press

Paying off your mortgage might sound like an ambitious plan, especially if you have recently refinanced into a 30-year term. But it's still smart for homeowners to give some serious thought as to how they'll pay off their home loan; if not in 2012, then sometime.

An early mortgage payoff can net substantial interest savings compared to making scheduled payments for 15 or 30 years.

Paying more quickly reduces your housing cost, freeing up that money, says Ronit Rogoszinski, a wealth adviser at Arch Financial Group in Garden City, N.Y. You'll still be responsible for property taxes, homeowners insurance, and home maintenance and repairs.

Some might argue for allocating more cash to investments instead of eliminating low-cost debt, says Alfred McIntosh, principal of McIntosh Capital Advisors. But he encourages homeowners near retirement age to be mortgage-free.

To pay off your mortgage early:

- Add an extra amount, say $50 to $500, to each monthly payment, Rogoszinski says. Don't sacrifice necessities, such as sustenance or medical care.

Some homeowners add enough to their monthly payment to make one extra payment each year. McIntosh explains the math: Divide one payment by 12 or multiply one payment by 10 percent, and add that to the amount each month. Make sure the extra money is applied to principal, not interest or your escrow account.

One way to make that extra payment less painful is to make payments every two weeks instead of every month. The result is 26 half-payments instead of 12 full payments. McIntosh says biweekly payments can knock approximately six years off a 30-year term.

clear skies,

Doug Reynolds

 

www.BHGshortsales.com

History of Mortgage Interest Rates

By Marcie Geffner • Bankrate.com

Mortgage interest rates have been pretty attractive for a long stretch of time. So long, in fact, that many homebuyers and homeowners might not realize that rates haven't always been this low. Mortgage interest rates in the 4-percent range were unheard of until 2010, and rates in the 5-percent range were unknown prior to 2003, according to Bankrate.com surveys through the years and a chart of monthly average mortgage interest rates tracked by the Federal Reserve since 1971.

Prior to 2003, higher mortgage interest rates were the norm. In the early 1970s, rates hovered in the 7-percent range and spiked up above 9 percent in late 1975, late 1976 and most of 1978. At the end of the decade and throughout the 1980s, mortgage interest rates rarely dipped lower than 10 percent.

In the early 1980s, mortgage interest rates brushed the stratospheric highs of 18 percent and even 19 percent. Imagine trying to get a home loan with an interest rate of 18 percent. At that rate, the mortgage interest deduction would be a very lucrative income tax perk, but the monthly payment on a loan would be far more painful than a typical mortgage today.

During the 1990s, mortgage interest rates ranged from around 7 percent to roughly 9 percent for many years. It was only in 2000 that rates began to fall to earth. They held at less than 9 percent in 2000, less than 8 percent in 2001 and less than 7 percent in 2003.

Mortgage interest rates are an important factor in many major financial decisions. When rates are low, it can be a good time to buy a home or refinance an existing mortgage. When rates are high, it can be smart to pay off your mortgage. Rates should also be considered when deciding whether to refinance from a fixed rate to an adjustable-rate mortgage, take out a second loan or tap a home equity line of credit.

clear skies,
Doug Reynolds
 
www.BHGshortsales.com

Pick A Realtor You Trust And Then Let Them Do Their Job.

Doug Reynolds, a Sacramento Area Realtor, gives advise and opinion for buyers that are in the hunt for a home.  Buyers need to carefully select the Realtor they want to work with, discuss their wants and needs and then hand over their trust to the agent they picked.  A lot of times buyers can end up being their own worst enemies in this current market of low inventory, bank owns, foreclosures, short sales and auctions.  The most important thing for buyers in this market is taking the time to find the right match with an agent.

clear skies,
Doug Reynolds
 
www.BHGshortsales.com