Realty World Tri-Shasta

Distressed properties are foreclosed homes or homes in a Short Sale situation. We have both available in the Shasta County real estate market. Here are some tips to help buyers who are looking to purchase a distressed property.

1. Have the money before you shop.
2. Be mentally prepared for delays, aggravations, and red tape.
3. No contingencies.
4. Flexibility as to the condition of the property.
5. Be prepared to make an offer.
6. Motivation rules the day.
7. Buy at the bottom of the market.
8. Quick settlement.
9. Inspections.
10. Examination of title.

House hunting can be a very stressful task, especially if you are unsure of what you are looking for. The first step is to figure out what you qualify for (if you are not planning on paying cash for the transaction), the second step is to simply shop around.

To gain a better understanding of what you are looking for view as many homes as possible within your price range. There are many great homes out there for a great price, especially here in Shasta County. Have your agent show you homes or check your local newspaper for open houses and attend those on your own. By viewing homes you will gain a better understanding of what you are looking for.

When viewing homes bring along paper and pen. While walking through the homes take notes on what you like the most about that home, what was simply ok but livable, and what you disliked. Later on when you go over those notes you will start to get the picture of the certain features you are looking for in your home.

It is important to remember that no piece of real estate is perfect and no two are exactly the same. Do not be overly picky, but do focus on the one feature you find the most desirable and important to you and go from there. This will also make it easier for your agent to find homes to show you.

The most important thing to remember when viewing homes is simply feel. How do you feel upon first walking through the door? Can you see yourself living here comfortably for the next several years? If you are able to answer those two questions with an affirmative then it may be possible – just possible – that you have found the home you are looking for.

Following is an article posted by Susanne in the Home Buying 101, Real Estate, Today’s Market Place. This will be one of my longer posts, but for all of you  buyers here in Shasta County, looking to purchase a piece of real estate, this is some important information regarding the first-time home buyers credit that is available to you.

On November 6, 2009 President Obama signed into law an expansion and extension of the home buyer tax credit.

The credit is available for homes purchased on or after November 7, 2009 and before May 1, 2010. The federal income credit can be claimed on one’s individual or joint tax return for the purchase of any singly-family home (newly constructed or resale, single-family detached, town homes or condominiums) between the dates of November 7, 2009 and April 30, 2010. Home purchases subject to a binding sales contract signed before May 1, 2010 will also qualify for the tax credit as long as closing occurs by June 30, 2010.

The tax credit is now available for first-time home buyers and eligible current homeowners. A first-time home buyer is defined as an individual who has not owned a principal residence during the three-year period prior to the purchase. This law applies for both parties in a married couple; if you haven’t owned a home for three years, but your husband has, then neither one of you can qualify for the tax credit. A qualified current homeowner who wishes to move to a different home (a “move-up” buyer), must have owned and resided in their residence for five consecutive years out of the last eight.

Under the legislation, the income limits to qualify are the same for both first-time home buyers and current homeowners: Single taxpayers with income up to $125,000 and married couples with a joint income up to $225,000 qualify for the full tax credit. These income limits make almost all first-time home buyers eligible and approximately 70% of current homeowners eligible. Single taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive partial credit.

The maximum credit amount for first-time home buyers is $8,000; the maximum credit amount for current homeowners is $6,500. The federal tax credit amounts to 10% of the cost of the home, up to a maximum credit of $8,000 for first-time home buyers and $6,500 for current homeowners. Under the new legislation, a tax credit may only be issued for homes purchased for $800,000 or less.

Provided the home-owner stays in the home for three or more years, the tax credit is a true credit and does not need to be repaid. The tax credit is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if you own no tax or the credit is more than the tax owned. The credit is claimed using Form 5405, which you file with your original or amended tax return. Buyers can claim the credit on their 2009 taxes, even if the home is purchased in 2010, by filing amended tax return.

The current tax credit legislation has built-in fraud measures, therefore, anyone claiming the credit must provide documentation to prove that the sale has closed, such as a copy of their HUD-1 Settlement Statement. The law also prevents anyone younger than 18 from claiming the credit.

There are definitely a lot of homes on the market right now here in Shasta County and the one question that is most likely keeps running through your head is how to make your home more appealing then all the rest in the same price range? The answer to that is simple presentation. Not only is it important to keep the house clean and free of visible damage for an appointments that potential buyers may schedule to view your home, it is also important to have an open house free of the same problems but with a little more effort.

If you read the paper you will notice that there is a section that advertises the times and dates an open house is going to be held, you will also notice that a majority of these open houses are held on the weekend during the afternoon. Why not schedule your open house and a completely different day? For example, old your open house on a Tuesday during the lunch hour or in the evening time when people are off of work.

Another tip is signage. Make your signs visible but also make them appealing to the eye. You will want something that is going to draw in any potential buyers.

When it comes to the home it is important to make sure every room within the home (even the garage and the yards) are clean. In the kitchen or dining room have drinks and snack readily available, this will cause the potential buyer to want to stay longer and talk about your home. If you have pets see if a friend or family member would be willing to watch them during your open house. And, get the family out of the house! You want a one-on-one basis with any person who walks through your door, and it is easier when you are the only person dealing with them.

So good luck on your next open house, I hope it goes great for you!

There was an article in last weeks Valley Post regarding the highly anticipated Anderson Vineyards here in Shasta County. Some of the lots and homes in the new subdivision have been on the market for a few months now, but just last there was finally an article regarding this break through. Here is a brief overview of what the article contained:

Water key to getting subdivision sales back on track

Just days after the City of Anderson issued a conditional occupancy permit for two homes of The Vineyards at Anderson subdivision, prospective buyers had a chance for a walk-through.

Jordan Taylor, a local developer who represents U.S. Acquisitions Real Estate III, LLC, a private equity company based in Denver, Colo., said that company purchased the foreclosed home loans from the previous builder after problems with adequate supplies of potable water with pressure sufficient for fire safety were discovered in 2007.

Work on all houses in the subdivision had virtually stopped until the water issues were finally resolved late last fall with the installation of a nearly $1 million pumping station that connects to the City of Anderson’s municipal water system and treatment plant.

Originally designed and priced for the top end of the real estate bubble in 2007, the 12 houses that were originally intended as showcase model homes have all been finished with first-class amenities and details, Taylor says.

All of the homes built so far have tile roofs with radiant barrier roof sheeting and drop attics, low emission windows that feature vinyl-clad wood construction, high efficiency HVAC systems, security features, vinyl or wrought-iron fencing, built-in fire suppression systems and more.

Taylor committed to the project that later this spring, his own development company has plans to start construction on some of the 115 available lots in Unit 1 Phase 1.

The article was written by George L. Winship, an editor for the Valley Post. The Valley Post is the January 13, 2010 paper and the article can be found on the front page of the paper.

I am also proud to say that our office is also involved with a couple of the lots there in The Vineyards subdivision and we hope to do even more business up there.

Prices are down here in Shasta County and so are interest rates, if you are looking to buy a home this is the time to do it. There are some great homes out there that are available at a good price, and they are not lasting very long on the market. On a majority of the homes listed for under $200,000 it at times has been a bidding war, and we have seen properties go for mare than what they are listed for.

First time home buyers, now is the time to move. Go out and get you pre-qualification or pre-approval done with the lender of your choice. If you go and do that first you will be able to figure out how much money you may have to bring into the transaction and be able to figure out how much home you are going to be able to afford.

Also figure out what area you want to live in and start to look there, if you don’t find what you are looking for expand the area you want to look. And the most important thing is to just go out there and view homes, even attend Open Houses if necessary, to get the feel of what you are looking for. That way when you come across that “certain” home there will be no question as to whether or not this home is made for you.

The best way to decide what you are looking for in your first home is to write it down on a list. Sit down and discuss with your partner esactly what you guys are looking for, what is important, what is not important, and what would be a nice feature but you don’t have to have. When you then view homes keep that list in mind, or refer to it with each home.

Now, if it comes down to more that one home compare those homes to each other and that little list you carry around in your pocket. Compare and contrast, even work out a special numbering system. If worse comes to worse go back and view those homes again. Your agent should be more than willing to take you back to those homes as many times as necessary to help you make your decision.

So good luck and good hunting.

Many people don’t realize how important it is to have that pre-approval letter in hand before viewing houses (unless, of course, it is a cash transaction). Getting pre-approved with a lender of your choice will help you set certain guidelines when it comes time to home shopping. There are plenty of lenders to work with here in Shasta County, go out there and find one you are comfortable with and go with them. Your real estate agent will be able to find you homes within your price range – that way you don’t have to worry about falling in love with a home and then finding out later on that you can’t afford it.

Another reason why it is so important to be pre-approved with a lender is because of the number of short sale and foreclosed properties on the market. When putting an offer in on a property that is in a short sale situation or is owned by a bank they usually require a copy of your pre-approval letter included with you offer – or they simply will not look at it.

The lenders try to make the pre-approval process as painless as they can. Also, after they have all of the necessary information you can give them your real estate agents information, that way both your lender and agent will be able to communicate directly to make your home buying experience less stressful and smoother for you.

For all of you first time home buyers here in Shasta County, buying a home can be very stressful. Here is an article I felt would be helpful to you. This article is even good for people who have already bought a home before, but still find buying a new home a stressful situation…http://homebuying.about.com/b/2009/11/16/you-dont-have-to-suffer-from-home-buying-stress.htm

There are some programs out there like the Shasta County DAP program that will help your first time buyers, but check out the following press release from MSNBC. This could be something good for you first time buyers out there; especially for the ones having troubles getting a loan.

Administration says new program would help support low mortgage rates…http://www.msnbc.msn.com/id/33382851/ns/business-real_estate/

A majority of closing costs will be the same, but some areas are different. Like here in Shasta County you pay a County Transfer tax but not a City Transfer tax. The lender must disclose a good faith estimate of all settlement costs. A check to cover your closing costs will probably have to be a cashier’s check. The title company or other entity conducting the closing will tell you the required amount for:

• Down-payment
• Loan origination fees
• Points, or loan discount fees you pay to receive a lower interest rate
• Appraisal fee
• Credit report
• Private mortgage insurance premium
• Insurance escrow for homeowners insurance, if being paid as part of the mortgage
• Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you
• Deed recording fees
• Title insurance policy premiums
• Survey
• Inspection fees – building inspection, termites, etc.
• Notary fees
• Pro-rations for yours share of costs such as utility bills and property taxes

A Note About Pro-rations. Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved.

Pro-ration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first 5 days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.