1) We currently are experiencing the lowest home prices we've seen in a decade.
2) Interest rates are at historic lows.
3) With all the forelcosures, short sales and even "regular" sales currently available, there's LOTS to choose from. Small homes, big homes, old homes, new homes, inexpensive homes, and even more inexpensive homes.

I'm not sure how it could be any better.

Yes, it's very possible home prices could drop even more in the next year or two. But, if you plan to live in your home for a few years or more, then so what? Even if prices drop a bit more, you'll still have the tax advantages of owning your own home. You'll still have the pride of owning your own home - you can paint it whatever color you want, you can remodel, change or improve whatever you want... it's YOUR home. And, of course, you're not paying rent... your payments are working for YOU... not some landlord.

Not convinced? Call me and let's discuss your situation. I'm at (916) 241-8000 or (530) 677-1332.

We're all heard how powerful first impressions can be, and that's especially important when selling. We know that "curb appeal" - that first impression of the home when a buyer first drives up - is vitally important to catch the buyer's interest... even before they walk inside.

Here are a few things to consider when putting your home on the market:

- Clean the oil stains off the driveway
- Put the garbage cans behind the gate or in the garage
- Park your cars in the garage or away from the house
- Mow the lawn and trim the bushes and other landscaping
- Plant some colorful flowers around the walkway and on the porch
- Put the toys and other "stuff" in the backyard

Of course, there are many other things to consider when selling your home.

For more information on the "secrets" to selling, call our office at (916) 241-8000 or (530) 677-1332.

PITI is the acronym used to indicate what is included in a mortgage payment.  It means "Principal, Interest, Taxes, and Insurance", all paid as part of that monthly payment. If you have an "impounded" loan (also known as an impound account), then your monthly payment to the lender includes all of these and may even include mortgage insurance, too.

If your payment just includes PI (principal and interest only), then you'd pay for your insurance and property taxes separately, outside of your monthly mortgage payment.

A contingency is a provision or condition in a real estate contract that specifies the contract could be cancelled if that contingency/condition is not met or does not occur.

For example, if a contract has a contingency that requires that the buyer be able to obtain a mortgage loan at 4.5% or lower, but rates increase above that percentage, then the buyer has the option of cancelling the contract based on that contingency not being met.

Another contingency that is often in real estate contracts is the requirement that the buyer be able to obtain a satisfactory home inspection.  If the results of an inspection are not acceptable to the buyer, then they are likely able to cancel that contract. 

If you want to know how much your home is worth in this crazy market then visit www.HomeValuePro.com.

Of course, if you have questions about market values or selling in today's market, give us a call at (916) 241-8000 or (530) 677-1332.

When someone does owe more than their property is worth, and they can no longer afford to make their payments, there are two options to consider in order to avoid a foreclosure - a short sale and a deed-in-lieu of foreclosure:

SHORT SALE:  The home owner lists their home for sale and attempts to sell it.  Since the mortgage (possibly multiple loans) exceed(s) the value of the home, the idea of a short sale is to negotiate with the bank to "settle" for LESS than is owed.  For example, if the outstanding loan balance is $300,000 and the property is only worth $200,000, the goal is to get the bank to take a $100,000 loss and accept $200,000 as "payment in full."  Of course, I'm just using round numbers here to illustrate how a short sale would work. Now, you ask... why in the world would a bank agree to this and take a $100,000 loss.  Well... it's really very simple... the bank, facing a possible foreclosure on the property, and additional value loss, would likely "come out ahead" by taking just a $100,000 loss in a short sale... rather than a possible, say, $150,000 loss down the road once the property goes to foreclosure.  So, it's often a better business decision for a bank/lender to agree to a short sale than allow the property to go to foreclosure.

DEED-IN-LIEU:  With a Deed-in-Lieu of Foreclosure (DIL), the home owner transfers the ownership of the property back to the owner of the mortgage in exchange for a release from the loan and all payments.  Some people consider this option if they've been unable to successfully sell their home via short sale or do not want to go the short sale route.

Of course, there are additional things to consider in both of the above options. Both require some sort of "qualification" process and steps to take to complete either a short sale of DIL. 

Most people struggling to make their payments attempt to do a short sale instead of a DIL... or at least they may try a short sale before they consider a DIL.

For more information, visit the Fannie Mae website www.KnowYourOptions.com

1. Prices are LOW:  Home prices are down by 50% or more in many areas, especially here in the Sacramento area.  El Dorado and Placer county values have dropped significantly, too, within the past five years.  Think of it this way:  Homes are ON SALE... up to 50% OFF and MORE!
2. Interest Rates are LOW:  Interest rates are the lowest we've seen them in decades.  They can't get much lower.  Those buyers who wait for lower real estate prices, may possibly pay less in price but, when interest rates go up, that savings on price may be lost by the interest rate increase.
3. LOTS of homes to choose from:  We're seeing available home inventories at some of the highest levels in many years.  There are LOTS of choices... regular sales (those with equity), short sales (those where the current owners owe more than the homes are worth), and REOs/foreclosures (those owned by the banks following a foreclosure).

So... as you can see, now may be the BEST TIME to buy.  Remember... the greatest opportunities are often had within the worst of times.  Those who succeed greatly often do it when others run for the hills. 

Call me and we can discuss the potential opportunties available for you.

When a seller lists a home for sale and asks a certain price for the property, that property (and it's asking price) must be "sold" three times:

• First, it must be "sold" to the buyer's Realtor. Remember, the Realtors are working with the buyers that the seller wants to attract. If the price is too high, the Realtor won't think it's a reasonable price and may not even show the buyer the property. There are way too many properties on the market right now for the agents to waste their buyer's time looking at overpriced properties.


• Second, it must be "sold" to the buyer. In other words, if the Realtor thinks the price is reasonable and brings a buyer to the property, then the buyer must think the price is fair, too. Yes, the buyer can always offer less, but if the price is too high in the buyer's eyes, they may not even bother to make an offer and eliminate the property from consideration.


• Third, and often overlooked by sellers, the property must be "sold" to the appraiser. This can be a showstopper even if the property was already "sold" to the Realtor and to the buyer. If the Realtor brings the buyer and the buyer writes an offer and the seller accepts that offer, all is good, right? Well, maybe... but maybe not. If the property was priced too high for the market, even if the Realtor thought is was reasonable, and the buyer and seller agree on a price, if the appraiser (who is hired by the buyer's lender to ensure the property is worth the price) says the property isn't worth the price, the deal can "fall apart" and not complete. The appraiser has the final word as to whether or not the price was right in the current marketplace.

So, when pricing your property, make sure you consult with your Realtor to ensure you're pricing right for the current market. It's not uncommon for the buyers and their agent to think a price is reasonable and then for the appraiser to say otherwise. If that happens, the deal may not happen and you've lost critical time in the marketplace, and you'll probably end up getting much less for the property than you would have had it been priced right from the start. So... price it right!

Other pricing articles:

• Comparing a Home's Value to a Stock's Value
• When It Comes to Pricing, The Market is Always Right
• Price High, Lose Money
• Pricing: If You Miss the Mark, the Market Will Tell You