Redding's Ups and Downs

Everyone seems to think that today’s real estate market makes it easy for home buyers to snag a deal. Sometimes that’s true, but more importantly, buyers must remember to stick to a well planned budget, or a good deal can turn your life sour.

Good accountants are good consultants. Good lawyers are good consultants. And good Realtors are good consultants. Don’t be afraid to contact a good realtor for advice. Agents love to work at finding the “right” house that encompasses the buyer’s desired amenities and yet still stays within their budget.

Buyers should be careful not to look at homes outside their comfort zone. Even though the economy is horrid, don’t think you can give a low ball offer on a 300K home when you can only afford a home for 210K. Not only are low-ball offers rejected day in and day out, but as a buyer, you suddenly fall in love with homes outside of your price range. Don’t be tempted to buy above your comfort zone. Stick to your budget. Stay focused,

Even though lenders are being fussier to whom they lend money, some are still lending higher amounts than buyer can comfortably afford. Always sit down and plan a yearly budget that includes not only normal bills such as mortgage payments, car payments, telephones, power bills., but also includes saving for car problems, health issues, education, home repairs, gas prices, vacations, etc. In almost all cases, your “comfort zone” will be much less than the amount a broker would actually lend you to buy your home.

Increasing the dollar amount of jumbo loans could help our economy. These loan amounts are set each January and have interest rates higher than a conforming conventional loan. Today the loan cap for jumbo loans is $417,000 dollars, with interest rates around 7 percent. Today, a conventional loan can be as low as 5.2 percent. What home buyer would be willing to buy a home at 7 percent when others that buy a home for less money could get a loan for around 5 percent? Jumbo loans are literally frozen in their tracks.

Shasta County does not have a huge amount of homes for sale over 417,000 thousand dollars. In fact, today, there are 380 homes out of 1524 for sale in Shasta County. But in other areas of California, such as the Bay area, most housing starts at over 417,000 dollars.

If our government would raise the limit on jumbo loans, it would help our economy. More buyers could take advantage of lower interest rates and more sellers would buy homes in Shasta County that want to retire here. Our economy needs all the help it can get and I believe this would at least be a small step toward improving the housing market.

On the radio yesterday, Barb Hilborn of Coldwell Banker, Minnesota heard a list of the top 10 professions in her area with the least amount of respect. She was shocked when it was reported real estate agents were at the top of the list!!!

Boy, that can really take the wind out of your sails.  We take the selling and buying of homes very seriously. Homes are most people’s biggest asset and it’s a huge responsibility to make sure buyers and sellers get the best deal possible and are protected. That’s our job.

Showing clients homes is the fun part of our job. Once we open escrow, the real work begins. Almost every escrow has huge challenges, not only in the currently tough industry but also when it’s a seller’s market.

One of our homes in escrow right now was supposed to close this week. But in the title search we learned it has a lien against it that should have been removed in the previous sale of the home. To make things worse, the former escrow company was Alliance Title who is now bankrupt, so we have no access to the previous records. We are protecting our client by pouring through paperwork to make sure they do not buy a house with a lien against it.  Right now every single one of our homes in escrow have issues that will take days, even weeks, to work through. 

I apologize for Inman News feed to suddenly ask for $$$ to enable you to continue reading their news stories.  Uh!!  I thought I had changed that on this web site weeks ago, even though I had no warning this was going to happen.   I'm not even sure if I sign up that you will be able to read the full articles. 

Actually, Inman News was a great source of real estate information and I really enjoyed their real estate news content better than other sources.    But I'm a bit, no, actually a lot, irritated because I received no warning.  Nothing. 

Let me know if you think we should look into paying the $$$ so you can continue reading Inman News.  Or, do you think Forbes News is okay?? 

Once again I apologize for the inconvenience and confusion.

Communication is the key ingredient between a homeowner and the Realtor they choose to sell their home. If an agent does not keep you informed, suggest a list price backed up with an up-to-date CMA, or does not make suggestions for “staging” a home such as reducing clutter, etc., then the Realtor may just plan to list it on the MLS without doing one more thing.  That's not enough!                                                            Make sure you're in the driver's seat.

Hire only full time agents and make sure your listing agreement with a broker allows you to back out of the contract if you’re not satisfied. If an agent does not return calls or starts by showing you only their listings, they do not have your best interest at heart. Fire them

If you don't have to sell your home right away, don’t. Wait for housing prices to go back up.

If you do have to sell, even in downward spiraling market, you can sell your home if you stage it and price it right. Motivated sellers need to pay close attention to the listing price the Realtor suggests... Price it right or prepare to just follow the market down with no offers.

Have home and pest inspections before listing your home. That way, you are aware upfront of any costs of repairs needed because most lenders will not loan on a house unless certain repairs are fixed. Homeowner can then decide whether they want to make the repairs themselves and possibly save money.

If a seller chooses not to make repairs before listing their home, at least the buyers have a list of what needs to be done when they make the offer and emotions are high. Buyers are more willing to give no regard to what repairs the lender does not require... If the buyer has to wait 17 days or more for perform their own inspections, and the emotional tides have waned, they’re liable to ask for the moon.