August was HOT!

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Though this years temperatures in August were not so hot the real estate market was. I dont remember when I have seen a more active August. Buyers were still out in droves with multiple offers on the best properties determined by both price and condition.   Only now are there signs that the Fall fall is about to begin. Over priced listings are falling in price and buyers thin out and the selling season slowly wanes like the sunlight through the trees.

From what I saw this year I expect our winter will be more active then last year as well.  Fall and Winter is a great time to buy a home. Home prices are lower and the number of buyers out there looking are much fewer making the home search and offering process less hectic and far more enjoyable.

Take a walk with me this fall in search of your dream home. Among the golden leaves and autumn harvest we will find you the home you will treasure.

Today’s Real Estate Rant

 

House-with-cash

Ok, I have to get this off my chest as it drives me crazy and costs home sellers thousands of dollars when they sell their property and that is what really makes me mad!  My beef? Agents who cant price property and list it too low!!!!!

Yes there is an issue that is far worse then listing your property too high on the market and that is when an agent lists property too low and costs the sellers tens of thousands of dollars. For instance, I have a listing and we went pending, two weeks later a home owner in the same court listed their home with another agent (using a naked sign post!) lower then my listing and it is in great shape, remodeled, and has a built in pool! The comparable sale for the same square footage with a pool was $298,000! They are at $285,000.  Talk about giving the pool away.

I see this all the time.  Agents who dont know how to read the comparable sales, and either refer to Zillow or Realtor.com’s pricing algorithm (notorious for being way too low) or use a crystal ball or Ouija board to figure out what the list price should be.

Another example, The buyer’s agent for my listing in Meadowview told me he looked at the comps and thought the house was only worth $199,000. . I listed it for $245,000 they offered full price anyway. What did the FHA appraiser appraise it for? $245,000!  God forbid that he ever listed a property in the area he would devastate the seller, but his case is not unique. During the same time period remodeled houses in the area were going for an average of $230,000 for a 3 bedroom 2 bath between 1,000 to 1,200 sq feet.  Two listing agents snuck in took listings and put them on the market for $199,000 to $200,000. Both were remodeled and they went pending at list price. Both agents cost their sellers $30,000 in lost equity.

Who you list with does matter and this problem is rampant even among the Big Name Real Estate brokerages. Don’t rely on the online valuation tools from the Real Estate web sites and do not rely on just one real estate agents Comparative Market Analysis.  Get more then one CMA, your wallet will thank you in the long run.

 

Single Story For Sale in North Sacramento, Sacramento

Photo Link
For sale with Lot next door

•  1,006 sq. ft., 1 bath, 3 bdrm single story$110,000. Reduced
MLS® #16047394  

– 3 bedroom 1 bath 1006 sq ft home sits on a large 6,534 sq foot lot, to be sold with the attached 6,512 sq ft lot 2488 empress Street that has the 2 car garage on it. Combined the lots have over 13,000 sq feet. Lots of room to grow. Combined price for both is $135,000. Please do not disturb tenants.

Property information

Does Anyone Remember the 2-1 Buydown Mortgage?

temporary 2-1 buy down

 

I had a buyer’s agent call me on my Rosemont listing, buyer’s just loved the house but they had a personal budget and desire for a monthly payment based on a $275,000 sales price. They could do the $288,500 but it would stretch them a bit much.  I have to say this, am I the only Realtor out there who remembers innovative financing that helps the buyer’s get the home of their dreams without the insecurity of an adjustable rate mortgage?

When I was a loan officer first in my career I did many 2-1 buydowns for buyers who wanted the safety of a lower payment at the beginning to their mortgage with the added security of a 30 year fixed rate loan.  This mortgage was a perfect fit.  How does it work?

Let us say that the note rate on a 30 year fixed rate is at 4.0%. A 2-1 buy down buys down the interest rate for a period of time that is lower than the 4.0% note rate. On a 2-1 Buydown the starting rate would be 2.0%.  The buyer would pay the lower payment based on this lower interest rate for the first 12 months of their loan. Beginning in the second year, month 13, the rate would go up 1.0% or to 3.0% in this case. The buyer would then pay the lower payment based on this rate for one more year.  In month 25 of the beginning of the third year the payment would be based on the 4.0% note rate and stay there for the remaining 28 years.   With a 2-1 Buy Down you have the lower interest rate like an adjustable rate mortgage combined with the security of a 30 year fixed rate loan.

It is truly a win-win situation as you help buyer’s get the home they love while having the lower payments they desire in order to help them ease into home ownership.  Today’s new crop of lenders and agents have not yet been though the need for innovative financing so their tool belts are not yet full.

So Buyers, if you see a home you absolutely love, but it might be a tad more then you were thinking to buy, yet you qualify for the home loan, the 2-1 Buydown may be the perfect mortgage product to help you buy the home of your dreams

 

Copyright © 2016 Craig J. Townsend