25. January 2012 by Michael McFarlane.

FHA loans have always been a great way for a young (just beginning) family to get into home ownership.  They require less down payments, have lower requirements for income and other qualifications.  They are generally guaranteed by the government.

However, the recent price downturn has caused some problems with them.  At a time when buying is at an all-time great, many are left out because they are unable to save enough to make the down payment (even though it is small) and pay all the closing costs.

A home seller might offer to pay some or many of those closing costs in order to get their home sold.  Makes sense, right?  That’s the normal way of doing business.  But, in an effort to prevent a repeat of the financial meltdown FHA has limited the amount that can be contributed by sellers. 

On the other end of the equation, in order to get our economy on the road to recovery (or moving faster) we need to get the foreclosures off the market (read sold).  Prices and interest rates are creating that perfect buying scenario for the beginning home owner, and they are a great source to clean up the REO market. 

This is the group of buyers willing to put in the work as required on some of these homes.  With sweat equity they then have more home than otherwise possible.  It just makes a great way to get started, and helps the market at the same time.  It cleans up our neighborhoods, stabilizes the market, puts more people to work…the list goes on.

Well, it looks like the FHA is NOT seeing this, and may lower the limits on seller contributions allowed.  This will make it harder, or impossible, for some to buy.  While we do not want a repeat of the meltdown, we do think the recovery needs a little help.

$ To read the full notice from CAR click HERE.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates         Free Home Warranty

   Search the MLS             Over the Back Fence

           Home Rescue Group        Free Home Market Analysis

                          Yuba-Sutter Real Estate Today

Posted in Buying a Home, Finance | No Comments »

10. December 2011 by Michael McFarlane.

Thank you for returning for part 2.  And for those of you that didn’t catch it, part 1 was posted last Wednesday and can be read below today’s post. 

Our last session ended with the questions about how this shadow inventory affects real estate and more specifically, how it concerns us locally. 

Well…our area has one of the highest foreclosure communities in the state (country?).  Yet we are still selling homes.  Not just REOs and short sales either.  Current inventory shows about 49% of our listings are Equity Listings.  This number has remained consistent for some time now.  For more stats click on over to Over the Back Fence.  

That shadow inventory; yes, we know there is some, maybe even a lot.  But we also think the banks will continue to control themselves and feed them into the market at a rate that helps sustain the market.  We see the prices remaining a bit low as the banks now dictate selling prices according to their inventory costs as opposed to the normal construction cost.  The Supply and Demand portion of the equation still applies. 

So why buy now?  Interest rates are fantastic!  Right now an investor can purchase a home in this area and have a 300% positive cash flow from month 1!  Or, if you are buying for yourself, you can quickly rebuild the cash reserve that you used for your down payment.  Want to help the kids get started on their own home?  Now is the time! 

And these interest rates will not remain at this super low percentage forever.  In fact, we believe that when the government stops pumping money into the system the banks will HAVE to RAISE their rates just to break even.

Questions about YOUR best action? Contact us today for your free, no obligation consultation. Call or text 530 315-2808. Email Taxes@EncoreRES.com (Encore Real Estate Services).

For ALL your real estate related needs and/or questions call or text ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.  

Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates                Free Home Warranty 

                    Search the MLS                                     Over the Back Fence

Home Rescue Group                      Free Home Market Analysis            

             Yuba-Sutter Real Estate Today

Posted in Buying a Home, Real Estate Market | No Comments »

24. May 2011 by Michael McFarlane.

A couple of posts back we discussed some of the changes technology has made in the real estate business.  The last article focused on how a potential home buyer finds their home.  Those very changes have also changed the way we do business.

On the buyer’s side, as a real estate agent, and more specifically a Realtor® (not all agents are!), our job still includes helping you find your home by pointing you to the right information and helping you make sense of all that information.  But that is just the beginning.

From the seller’s side, we are familiar with the market.  We know how to present your home so interested buyers will look at it.  We know how to protect your investment by protecting YOU!  We have the connections and experience to put together a transaction, and the ability to see it through to completion.

Although you should consult a lawyer for legal advise, or a financial professional for financial advise, we are very familiar with these fields with respect to real estate.  We can often point you in the right direction with the necessary questions to a situation; one that you may not even have known existed. 

Perhaps you have heard the term Real Estate BROKER?  It refers to the fact that we don’t make the deal, or even participate in it.  What we do is round up all the parts and help you tie it all together.  In today’s complex transactions that is a lot of parts; a lot of different specialists each needing to do their part in a timely manner. 

Did you know that most FSBO (For Sale by Owner) transactions FAIL?  The reason for that failure rate?  85% of failed FSBO transactions fail due to the high stress level created in trying to keep every aspect of the transaction on track.  The stress is so high that the interested parties end up at ends with each other, or are otherwise unable to things accomplished within the time frame required.

Questions about YOUR best action? Contact us today for your free, no obligation consultation.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below. Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty

          Search the MLS              Over the Back Fence

Home Rescue Group                                   Free Home Market Analysis

                     Yuba-Sutter Real Estate Today

Posted in Buying a Home, Selling Your Home | No Comments »

2. April 2011 by Michael McFarlane.

Over the last few weeks we have published articles on how to choose your Realtor® and why you would even want to.  Those articles focused mainly on the selling side of the transaction.

Buyers also need the expertise, skills, and connections of a Realtor® to accomplish their side of the transaction, and to increase the likely-hood of even completing the purchase.   Did you know that the number one cause of failed FSBO (For Sale By Owner) transactions is because the level of stress induced is so high that the two parties end up fighting instead of working together?

So, for one let’s get rid of the stress!  Hiring a competent Realtor® helps in multiple ways here. 

1. We know the legal issues involved, and how to avoid giving up your rights.
2.  We have the contracts available to make sure every important issue is in writing.
3. We know the sources to get answers that we don’t know ourselves.
4. We handle the negotiating for you, at your direction.

Realtors® are trained to understand the market, to know what is and what isn’t a reasonable offer.  We have the information that allows you to make an informed decision.  We are experienced, so when snags come up we know how to work through them. 

A buyer’s agent is paid for by the seller in many cases!  The cost is incorporated into the price of a home and negotiated at the time of the listing.  Whether you use what is paid for or not, that cost is going to be paid for by the current owners!

Questions about YOUR best action?  Contact us today for your free, no obligation consultation.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.  Please note: all visits to our sites are secure AND confidential.  We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty

                  Search the MLS                                     Over the Back Fence 

 Home Rescue Group               Free Home Market Analysis  

             Yuba-Sutter Real Estate Today

Posted in Buying a Home | No Comments »

22. March 2011 by Michael McFarlane.

That lack of an adequate down payment is the primary obstacle to many new or first time home buyers.  While most may have heard that assistance is available, many don’t know where to turn.

The mortgage industry has become very complicated.  Often a loan agent doesn’t know of programs outside of what their company offers.  They may be reluctant to steer someone outside their company if they do know.  Even your Realtor® may not know (while many have general mortgage awareness, most are not trained in loans).

A new resource (Down Payment Resource) has been created just for this reason.  If you are interested and can qualify, assistance comes in many forms.  Cash, deferred loans, grants, and other terms might be available.  There are city and county programs available in addition to the FHA terms usually bantered about. 

$ Source: Inman News™  ð

What it means for YOU?  Click the link above or contact Yuba Sutter Homes And Loans to see if you qualify.  Or maybe you are interested in selling your home: knowing what programs are available might make the difference to your potential buyer!  Call us today to find out. 530 315-2808

Questions about YOUR best action?  Contact us today for your free analysis.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.  Please note: all visits to our sites are secure AND confidential.  We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty

                  Search the MLS                                     Over the Back Fence 

 Home Rescue Group               Free Home Market Analysis  

             Yuba-Sutter Real Estate Today

Posted in Buying a Home, Finance | No Comments »

16. March 2011 by Michael McFarlane.

We all prefer to do business with someone we like.  It helps take some of the stress out of the equation.  And if you like someone, you usually trust them.  So wouldn’t it be great if your friend was a licensed and knowledgeably Realtor®?  Someone who has the experience, connections, and resources to get the job done for you?

Most of us know someone who dabbles in real estate.  Is this the person you want to handle your transaction?  What do you believe is their competency level?  Were they able to provide you with the information you needed?  Were they honest enough to say “I don’t know but I will find out” when needed; and then follow through on that promise?

Everyone makes mistakes!  The difference is what happens afterwards.  Is the mistake acknowledged?  Is it then corrected?  That is how we grow, how we learn.  And that is the secret: to LEARN.  That brings us back to the question: How do you choose YOUR Realtor®?

Buying a home usually requires time to research, look, and compare.  Who provided you with the information you used most?  During the course of your research have you found this person’s attitudes to be compatible with yours?  If so, you are probably comfortable working along side this person.  This doesn’t mean you are pals, just that there is a mutual trust and comfort level that is needed (if not required) to make it through a real estate transaction today.

Big company or small or independent isn’t what matters most.  It is the individual you are working with.  Do they appear competent?  Are they trustworthy?  Of course we know you have verified that they are legal, licensed, and knowledgeable of the area you are interested in.  Do you feel that they are putting YOUR INTERESTS ahead of any other in your transaction?  If so, you have found your Realtor®!

Questions about YOUR best action?  Contact us today for your free, no obligation consultation.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.  Please note: all visits to our sites are secure AND confidential.  We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty

                  Search the MLS                                     Over the Back Fence 

 Home Rescue Group               Free Home Market Analysis  

             Yuba-Sutter Real Estate Today

Posted in Buying a Home, Selling Your Home | 1 Comment »

12. March 2011 by Michael McFarlane.

Do you know what those numbers mean?  Do you understand how to go about changing them, to the positive?  Do you know what a difference of only one point can cost?

A recent survey by Opinion Research asked 22 credit score related questions to consumers.  The average was only 60% right.  Many did not understand the financial cost of a low score.  For instance, a $20,000 car can cost $5,000 or more in extra interest because of a lower score.  That lower score could cost $100,000 on a $200,000 home, or prevent one from purchasing a home at all.

Many consumers did not know how to increase their score according to the survey.  Some believe paying cash is the best, or that having more than one credit card would lower their score.  In fact, using credit responsibly is THE way to boost your score.  It is not the amount of credit you have, but the relationship of available credit to income.  It isn’t how much credit you have but how you use it that counts.

The recent banking meltdown and following recession has lowered scores nationwide.  The lack of available jobs, or hours for those still working also contributes to this lower overall score.  Today nearly one quarter of consumers have a “poor” rating; a score at or below 599.

$ Source: Detroit Free Press  ð

Our take on what it means to YOU?  Did you know that a low credit score could even prevent you from getting a job?  Or that it could cause you to loose the job you have?  How much does it effect you?  Call us today to find out. 530 315-2808

Questions about YOUR best action?  Contact us today for your free analysis.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.  Please note: all visits to our sites are secure AND confidential.  We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty

                  Search the MLS                                     Over the Back Fence 

 Home Rescue Group               Free Home Market Analysis  

             Yuba-Sutter Real Estate Today

Posted in Buying a Home, Finance | No Comments »

10. March 2011 by Michael McFarlane.

Not having a home to sell has actually been a plus for those looking to purchase a home recently.  That meant the first time home buyer had the advantage.  That may be changing with the new rules and fees going into place.  First time buyers are down to 29% of the market from 40% just recently.  And that number is expected to drop even more. 

Increased fees for low down payments and increasing interest rates constitute part of that.  Higher down payments are also being expected.  These are in response to the recent mortgage melt-down.  Banks and lenders are trying to recover the money they lost to bad loans.  In addition, they will likely be required to buy back many bad loans sold to Freddie Mac & Fannie Mae.

Put more money down.  Not because you have to but because it makes economic sense.  You can still get the .5 to 5 per cent down loans, but why pay that mortgage insurance and interest premium if you don’t need to?  For instance, paying 3.5% down will now cost you $30,000 more than last September on a $300,000 mortgage.  A larger down payment can eliminate this.

Plan to live there longer, a decade or more.  Gone are the days of day-trading home shopping.  Real estate is an investment that usually requires time to pay off.  Those days have returned.  Even today, after the big “crash”, homes are worth more than they sold for ten years ago.  Actually, this is a good thing.  This is sustainable growth.

Prepare for competition in purchasing your home.  The days of free-falling prices are behind us.  Programs to help the borderline homeowners are beginning to be put into place.  Downsizing retirees and empty-nesters are looking at these homes also, and many of them have sizable down payments available.

$ Source: The Wall Street Jounal  ð

Our take on what it means to YOU?  If you are thinking about buying in the very near future, this is your get moving call!  This increase will not only cost more money, this increase could increase your DTI to the point that you will have to let go of your dream house and settle for something lower in price.  How much does it effect you?  Call us today to find out. 530 315-2808

Questions about YOUR best action?  Contact us today for your free analysis.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.  Please note: all visits to our sites are secure AND confidential.  We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty

                  Search the MLS                                     Over the Back Fence 

 Home Rescue Group               Free Home Market Analysis  

             Yuba-Sutter Real Estate Today

Posted in Buying a Home | No Comments »

1. March 2011 by Michael McFarlane.

Federal Housing Administration (FHA) mortgages are set to increase by .25% this April.  This follows an increase last November from .50% on 30 year fixed rate loans to .85%.  For 15 year fixed rate loans those figures were from .55% to to .9%.  That brings the new rates to 1.1% for 30 year fixed rate loans and 1.15% for 15 year fixed rate loans.

Although this is not an interest increase, it’s effect is virtually the same.  For a home costing $157.000 (the average FHA purchase loan) the monthly payment will increase by $33.  While this does not sound like an insurmountable increase, it will put buyers into a higher DTI (Debt to Income) bracket.  This is one of the most important numbers in loan qualification.  This increase could put some buyers out of the market.

FHA loans are generally used by those unable to qualify for conventional loans or make the down payment required by them.  FHA allows a down payment of only 3.5% while Fannie Mae requires 5 to 15% on the typical loan.  FHA also allows for lower credit scores: a minimum of 500 vs. 580 minimum for Freddie Mac and Fannie Mae loans.  The banks and conventional lending are often looking for a minimum of 680-720.

The effect of the increase has is amplified because of the typical borrower using the loans.  Those that can more easily absorb the increase are getting their loans elsewhere.  In today’s market more and more buyers are using the FHA backed loans, so the impact of the increase will be greater than past instances.

$ Source: the New York Times ð

Our take on what it means to YOU?  If you are thinking about buying in the very near future, this is your get moving call!  Remember, it’s not just the extra $33 a month you will be paying for the same thing (although that is pretty good incentive to most of us), this increase could increase your DTI to the point that you will have to let go of your dream house and settle for something lower in price.  How much does it effect you?  Call us today to find out. 530 315-2808

Questions about YOUR best action?  Contact us today for your free analysis.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.  Please note: all visits to our sites are secure AND confidential.  We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty

                  Search the MLS                                     Over the Back Fence 

 Home Rescue Group               Free Home Market Analysis  

             Yuba-Sutter Real Estate Today

Posted in Buying a Home, Finance | No Comments »

15. February 2011 by Michael McFarlane.

Interest rates have inched up to over 5%.  That’s higher than they have been since May 2010, nearly one year ago.  For the week ending 11 Feb the average was 5.05% with the 0.8 average buy-down rate included.  Loans not backed by Fannie Mae or Freddie Mac were even higher with a spike of 5.25% last week.

For buyers this increase is not overwhelming.  Most can easily absorb the increase of $20-$35 in monthly payments created by it.  The listing prices tend to decrease slightly to compensate for MINOR increases, lowering the down payment slightly.

For sellers however, this is not good news.  As mentioned, selling prices tend to drop slightly to compensate for the interest increase.  In a neighborhood with many homes for sale this slight drop can lower ALL home values in the area, which drops the price slightly more!  This will drop the amount the banks are willing to lend.  And for the buyer that was borderline, well, your home just may be out of their price range now.

This increase is compounded by the uncertainty of the government’s role (via Freddie Mac & Fannie Mae) which is being questioned.  What will be the result on the housing recovery?

$ Source: CNNMoney ð

Our take on what it means to YOU? 
…If you are thinking about buying, the stable lending environment of today probably outweighs any minor gain by price reductions in the near future.  And we expect interest rates to continue to climb slowly.
…If you are thinking of selling any time soon, stable prices and raising interest rates make this the ideal time.  We don’t expect prices to rise significantly until the foreclosure mess is cleaned up, and that won’t be for another year or so in our opinion.  If you are waiting for the high selling prices of 2005, well, studies we have seen expect that to happen around 2035!

Questions about YOUR best action?  Contact us today for your free analysis.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.  Please note: all visits to our sites are secure AND confidential.  We do NOT track your activity!

Subscribe to Listings Updates           Free Home Warranty

                  Search the MLS                                     Over the Back Fence 

 Home Rescue Group               Free Home Market Analysis  

             Yuba-Sutter Real Estate Today

Posted in Buying a Home, Finance, Selling Your Home | No Comments »