Foreclosure sales made up 26% of 2010 home sales

February 24, 2011 By Doug Leave a Comment

Foreclosure sales made up 26% of all home sales last year, down from 29% in 2009, but still higher than 2008 levels when foreclosures accounted for roughly 23% of all home sales.

Buyers who acquired foreclosures in 2010 also benefited from a steep discount, with foreclosed homes selling 28% below the average price of non-distressed properties. Foreclosure sales a year earlier were selling 27% below the average sales price.

At the same time, the actual sales volume of properties not in distress declined 19% between 2009 and 2010 and 27% from 2008.

Foreclosure sales are expected to pick up in 2011 — a blessing and a curse for the housing market.

The catch-22 for 2011 is that while accelerating foreclosure sales will help clear the oversupply of distressed properties and return balance to the market in the long run, in the short term a high percentage of foreclosure sales will continue to weigh down home prices.

Filed Under: Blog, Buyers, Featured Main Page, For Buyers Tagged With: affordable housing, Bank Owned, El Dorado Hills, Elk Grove, first time home buyer, Foreclosure, home buying, homes for sale, Real Estate, Real Estate Investors, REO, Sacramento

Short sales to ramp up with HAFA changes

February 24, 2011 By Doug Leave a Comment

Mortgage servicers are moving toward a proactive approach in pursuing short sales as an alternative to foreclosure, a Mortgage Bankers Association panel said Wednesday.

Experts are predicting that short sales could increase 50% industrywide this year. The projected increase is due largely to changes in the Obama administration’s Home Affordable Foreclosure Alternatives, or HAFA, program that opens up eligibility to a larger group of homeowners. AMS has determined through analysis of its 2010 short sale metrics that as many as 91% of previously ineligible borrowers might now be eligible for the HAFA short sale program.

In the past, servicers were more reactive than proactive when it came to short sales, looking at potential short sales that were brought to them, but not pursuing them ahead of time. But that is changing, said panelists who discussed trends in short sales.

The Treasury Department took action in December eliminating some rules it said have held back short sales through the HAFA program. HAFA no longer asks for income verification, unless the borrower is less than 60 days overdue on the mortgage. This means that borrowers who previously were deemed ineligible because their income was too high, may now qualify for a HAFA short sale.

Changes to the program are seen as positive by servicers. It works best, when used pro-actively, by helping the borrower market the property instead of having the borrower come to the servicer with a buyer in hand.

HAFA was launched in April 2010 to provide an incentive to servicers and investors for pursuing short sales and deeds-in-lieu of foreclosure. The program was designed for homeowners who fell out of the Treasury’s Home Affordable Modification Program, or HAMP.

Servicers on the panel said they expect the changes in HAFA to encourage more participation in the program. Many borrowers, however, are still in a retention mindset when it comes to their home. If they are not eligible for foreclosure mitigation then we should focus on a “door-knocking” campaign to encourage a short sale.

Filed Under: Blog, For Sellers Tagged With: Elk Grove, HAFA, Sacramento, short sale

Learn why your home isn’t selling

October 7, 2010 By Doug 1 Comment

I have never even seen your house, its upgrades, curb appeal or that new air conditioner installed not too long ago. But trust me when I tell you that I know why your home isn’t selling. Whether acting alone, or in combination with each other, there are eight factors that scare away Buyers.

The Price is Wrong

This factor sits at number one for a very good reason. Pricing a home above its true market value in a tough market can cause irreparable damage to your probability of success. Pick an agent that a) doesn’t just pretend but truly knows the market and its intricacies and b) you trust (vital!). Use up all your skepticism in scrutinizing agents but once you decide, listen to their pricing advice and price it right or watch it sit.

Denied Access

How would you feel if you called a retail store or grocery store for an appointment and they told you to come by their place on Saturday between 1:30 and 2:15 because that’s when it would be convenient? Same concept applies to showing your home. All the marketing efforts creating awareness for your house are going to get Buyers very interested in looking at your home, but until they get to see it, there’s no hope for an offer. Lose lengthy prior notice requests, restricting showings to weekends only etc. Make your home as accessible as possible and maximize your chances.

Dressed for Failure

If the packaging on the candy is sloppy and uninviting, it is less likely to be picked up. The way your home is presented to prospective buyers is crucial in getting that signature on the dotted line. Lose the clutter, give every room a purpose and arrange the furniture to allow your home to show and shine. Or you can enlist a staging pro and have them do it for you, just like new home builders do. Staged homes sell faster and for more money. Presentation is all about giving Buyers a glimpse of what their life in the home might be like. What glimpse is yours giving?

Dysfunctional Changes

One of the beauties of home ownership is that one can customize the property to fit their lifestyle. But sometimes, irreversibly changing the structure of a property to fit one’s needs may impair its ability to sell fast. Probably the most common dysfunctional change Sellers make is converting the garage into living space. Another is to join two spaces and reduce the room count.

Lack of marketing

A well priced home with great access might not get a chance to sell if Buyers don’t know that it’s there. Especially in a market with fewer Buyers (lower demand) and plenty of other options (higher supply), marketing has to be world class. And no, putting it on MLS and putting a yardsign will not do the trick. An agent worth their salt will put the latest technology to work to take pro quality Wide Angle photos then weave them into virtual home tours, dedicated single property websites and property profiles that rock. Then they distribute them into portals where buyers are looking and uses their social media leverage on Facebook, Twitter etc. to get the word out. If your home is not getting this type of “spa treatment” you may have a marketing deficiency that a great agent can fill.

Not Ready for Showtime

Living in the property while trying to sell has its advantages and disadvantages. On the one hand, occupied listings tend to show better since the Seller’s furniture can help define the space. On the other, keeping a property ready for showtime can be challenging especially after a few months on the market. But I can’t stress enough how important it is for the property to show well in each and every showing. Remember, real estate is an all or nothing business: it feels like you have achieved nothing until you get an offer and it makes it ALL right.

Unreal Expectations

The Seller, the Agent and Reality all have to be on the same page for things to work out. Just like an agent that wants the seller to give the property away is out of line, so is a Seller that digs in their heels waiting for that Buyer and offer that’s not coming. If 99.8% of homes sold in your subdivision did so at a discount, chances are you’ll have to follow suit. You don’t have to trust your agent on this – just trust the market data he provides. Numbers never lie.

Deferred Maintenance

Unfinished projects, Necessary repairs and perpetually deferred maintenance can all be compensated by a reduction in price, but you will pay much more that way than it costs to actually do the work. Besides, the impression of a well maintained property is the ultimate sales pitch to most picky Buyers. So hire a handyman or DIY, but take care of those items and allow your home to sell.

So, there you have it: 8 Factors that keep homes from selling.  Your thoughts?

Filed Under: Blog, For Sellers Tagged With: affordable housing, Carmichael, homes for sale, House, sell my home

Buyers – Why Use a Realtor?

July 27, 2010 By Jennifer Leave a Comment

With the information at your fingertips, it may seem like you buy a house all by yourself. I mean, how hard could it be, right? Find a house, buy a house! You may have even found the perfect house yourself – you went to open houses to see all the houses you were interested in…no need to have an agent take you around to show you any more houses. Maybe, you think, “I don’t need an agent at all!” Well, you do, and you deserve one.

The first hurdle becomes, how do you submit an offer? Some people may want to call up the agent who is selling the house and tell them to write up an offer, or to show you the house. But then that agent begins working for you, the seller and also for the buyer. Whose interests is that Realtor looking out for? As a Realtor representing both parties – the buyers and the sellers, it is the duty of the agent to be a fiduciary to both parties. But that is a difficult task to be a fiduciary to both sides. Not impossible, but sometimes difficult.

The truth is, you want an agent working for you. While it is not the Buyer who traditionally pay the agents for their expertise, the Buyers are still entitled to expert representation. The Sellers are willing to pay 2 agents to represent themselves and the Buyers. Agents work for you to provide you information, provide guidance, to walk you through the whole home buying process, fill out the paper work and negotiate with the Listing Agent.

Hiring an agent saves you a lot of time and stress. Your agent will:
• Show you houses of interest
• Submit offers for you
• Fill Out All Paper Work
• Deliver all Contracts, Addendums and Disclosures
• Ensure all Disclosures are Signed and Delivered
• Negotiate with the Listing Agent/Sellers
• Answer all questions about your transactions
• Work together with your lender to keep your home purchase on track
• Work with the Title Company to make sure the transaction moves along
• Be at the closing if you need them

Keep in mind, when you go to an open house without having already hired an agent, the agent at the open house will want you to become their client. This is how many homeowners first meet their agents. If you have a friend who is an agent that you plan on working with, or someone you have met before that you plan on using, be honest with the agent at the open house and tell them you are already working with an agent. They will still be happy to sell you the house.

Filed Under: Blog, Buyers, California, Featured Main Page Tagged With: agent, broker, first time home buyer, Foreclosure, home buyer, home buying, home warranty, loan contingency, pre approval, prequalified

I Didn’t Ask For You To “Show Me The Money”, I Said “Show Me You Can Get The Money!!”

July 23, 2010 By Doug Leave a Comment

As I was reading blogs this morning there was one in particular that stood out and has stuck with me. It is a very common challenge that the buyer and the agent  needs to address in the early conversations they are having before seeing the home of their dreams.

We get calls from buyers all the time wanting us to show them houses.  The sellers want to make sure their homes are being shown to qualified buyers especially if it is owner occupied.

It is our jobs as professionals to make sure a buyer has taken the time to get pre-qualified so we are showing homes to them they can afford and for what they are qualified to purchase given the current lending environment.  The ability to obtain a loan is not simple anymore. There are a lot of hoops to jump through.

Getting pre-qualified will save time and frustration for all parties:  The Sellers in getting their homes ready for a showing, an agent in time, gas, energy and a buyer potentially having their level of expectation of finding their dream home and being disappointed that it could not become a reality!  Make it easy on yourself: make sure you can get the loan.  Show me you can get the money!!

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Filed Under: Blog, California, For Buyers, For Sellers, Sacramento Tagged With: affordable housing, Bank Owned, buy a house, closing costs, contingency, down payment, down payment assistance, El Dorado Hills, Elk Grove, FHA, financing, first time home buyer, Foreclosure, home buyer, home buying, home finance, homes for sale, House, lenders, loan, Lodi, Modesto, mortgage, pre approval, pre approved, Preforeclosure, prequalified, qualified, Rancho Cordova, Real Estate, real estate loan, REO, Rocklin, Roseville, Sacramento, sell a house, Stockton, West Sacramento