It looks like “The Race Is On” at the Placerville Fairgrounds this Saturday (April 2nd) featuring the 360 Sprints and Pure Stock Cars. Come on out and enjoy a fun night of speed and a little dirt!
Update – The race for today (April 2nd) has been postponed due to weather damage to the track. Check back for updates or visit the Placerville Speedway web site.
A call to all Baseball fans – the Sacramento Rivercats season opener is scheduled for Thursday, April 7th at 7:05 pm. The weather is supposed to cooperate and baseball is in the air! Come support your local team and cheer them on towards another great season! See the full schedule below or for more information; check out the official web site by clicking on the link/icon at the bottom of the page.
This chart shows the results of Bank Owned (REO) and Short Sale Activity since December of 2009 in all of El Dorado County. Take note that inventory levels have decreased since the totals peaked in September of 2010. In addition you can see that pending sales are dramatically higher. As we approach the summer months the demand will no doubt start to outpace the supply.
This chart reflects “Traditional” or non REO and non Short Sale properties in all of El Dorado County. The thing to notice here is that the inventory levels are also decreasing which indicates a move toward a normal to improved market. The other thing to notice is that pending sales are increasing which also indicates a move toward a healthy real estate market. We are a long way from a robust market but by the spring or summer of this year (2011) we should start to see more positive results and even better as we move towards 2012.
These charts provide a small picture of what is going on in the El Dorado Real Estate Market. For additional information about your specific local market/area; feel free to contact me (mikesouthwick@gmail.com).
If you own a home with a Home Equity Line of Credit (HELOC) it is possible that your credit score may be impacted in a negative way depending on how it is being reported on your credit report.
Most HELOC’s are reported by the three credit bureaus as revolving accounts because they are basically set up in the same way as a revolving account, even though they do not fall under the typical revolving terms. The unique difference between a HELOC and a typical revolving account is that the security for the Line of Credit is actually the home itself.
The confusion and typical unfair reporting for a HELOC is that it really is not a traditional revolving type account. The Fair Credit Reporting Act requires the reporting agencies to report true and accurate information and since a HELOC is secured by an asset then it simply needs to be reported differently.
What can be happening without a consumer even knowing about it is; should the HELOC be maxed out to the limit then it can drop your credit score significantly. In some cases it has been reported to drop the score by as much as 75 points which is pretty dramatic. Even if you have not maxed out your HELOC, it is still a good idea to check and see how it is being reported to the credit bureaus.
The first thing that you need to do is check your credit report to determine how your HELOC is being reported and if it is showing as a revolving account. If it is, then you can send a letter to the three credit bureaus and ask them to change the type of account from “Revolving” to “Line of Credit” or to “Other”. You should send it as a Certified Letter and enclose a copy of your HELOC agreement. It is possible that you may need to be persistent and send the letters more than once. Once this is corrected you should re-check your credit score to see if it has changed.
As always, should you have additional questions regarding buying or selling real estate or questions about financing, please contact me at mikesouthwick@gmail.com.
The information in this article was taken from information provided by Linda Ferrari who is the author of “The Big Score: Getting it and Keeping it, Buying Power for Life”. You can find additional information on her web site; http://lindaferrari.com.
I am seeing some real good signs of improvement in the major real estate markets in Northern California that I service. As I had previously written in some of my earlier blog postings; this up-tick in housing sales is being fueled by a decrease in unemployment (although there is still much room for improvement), a slowing down of foreclosure activity and relative low interest rates. These three factors alone are significant components in a healthy and long term real estate recovery. I would like to republish a portion of an article I wrote in October of 2010 and also posted in a February blog post:
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Here is an interesting portion of an article that was published in Time Magazine back in 1992 which stated; “The US economy remains almost comatose. The slump already ranks as the longest period of sustained weakness since the Depression. The economy is staggering under many ‘structural’ burdens, as opposed to familiar cyclical problems. The structural faults represent once in a lifetime dislocations that will take years to work out. Among them: the job drought, the debt hangover, the banking collapse, the real estate depression, the health care cost explosion, and the runaway federal deficit” It’s a little scary, but this picture of the state of the economy in 1992 mirrors what we are experiencing today in a lot of ways. The thing that I want to point out is that the years following 1992 witnessed an enormous amount of growth and opportunities in the economy, stock market and in housing. I would agree that history often repeats itself (sometimes over and over) and perhaps we should be looking ahead to a better future with some of the opportunities in the present. There are some good long term buying opportunities in today’s real estate market. You will find it more often than not, that the best investors buy during the most pessimistic times. |
I am seeing the housing supply decrease across the board but more so in the under 200,000 price range. What this means to me is that first time buyers and investors are realizing that any further downward shift in pricing is probably over. If the rate at which the supply of homes in this range continues to decrease at the levels they have in the past few months, then I think it stands to reason that the demand will start to outpace the supply. The reason that I use the 200,000 figure as a bench mark is that for most first time buyers the monthly mortgage payment on a home purchase in this range is equal or greater than what a typical rent payment would be. If you have been waiting for the bottom to drop further on pricing, perhaps you should jump back into the housing hunt and contact me right away (mikesouthwick@gmail.com). There are still some good real estate deals to be had but with our market improving you don’t want to miss the opportunity that is here now.
I just wanted to pause a moment and break from my usual real estate articles and just share a small personal note to those who read this blog:
We are facing some rather troublesome and unique world events that will clearly define the resilience of not just our country but the entire world. The immense devastation and loss of life in Japan will forever be etched in our minds as we mourn for those who have suffered such loss. In addition the political turmoil that exists in the other parts of the globe will also continue to produce additional heart ache and despair. These factors will impact all countries and all economies in one way or another from shortages to economic volatility. It is what we do while these types of challenges occur that has the potential to makes us better people and then it becomes how we learn and improve that sets a course for increased stability. There remains plenty to see and do, but in spite of these tremendous calamities; there remains hope that all of our efforts to provide help and relief will ultimately result in a better future for us all. Pray for peace and pray for the people of Japan.
A reverse mortgage is a loan for senior homeowners that use a portion of the home’s equity as collateral. The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time and in most cases, the estate has approximately 6 months to repay the balance of the reverse mortgage or sell the home to pay off the balance. All remaining equity is inherited by the estate. In most cases the estate is not personally liable if the home sells for less than the balance of the reverse mortgage. To be eligible for a reverse mortgage, the Federal Housing Administration (FHA) requires that all homeowners be at least age 62. The home must either be owned free and clear, or all existing liens must be able to be satisfied (paid off) with the reverse mortgage. If there is a mortgage balance, it can be paid off completely with the proceeds of the reverse mortgage loan at the closing. Generally, and in most cases, there are no income or credit score requirements for a reverse mortgage. The homeowner must remain in the home and stay current on all property taxes and insurance.
Basically a reverse mortgage makes it possible for older homeowners (62+) to convert part of the equity in their homes into tax-free cash without having to sell the home, give up title, or take on a new monthly mortgage payment. The reverse mortgage is aptly named because the payment stream is “reversed.” Instead of the homeowner making monthly payments to a lender, as with a regular mortgage, a lender makes payments to the homeowner. There are some restrictions and unique variables which is why it is important to discuss such a program with a professional who specializes in reverse mortgages.
Purchasing a Home with a Reverse Mortgage
If you meet the eligibility requirements for a reverse mortgage and the home qualifies, then you may be able to purchase a home using a reverse mortgage. I am finding that some older homeowners would like to make a move to one of the retirement communities (i.e. Del Webb in Roseville, Lincoln, Elk Grove or Manteca) but those communities may exceed their affordability. In other words the sale of their existing home may not provide enough cash to purchase a replacement home and the idea of taking on a new mortgage doesn’t seem appealing when facing retirement. This is where purchasing with a reverse mortgage come into to play. In most cases the required down payment on a reverse mortgage falls somewhere between 35-45%. On a 300,000 home this equals to 105,000 to 135,000 for the down payment. There are also fees involved and it is wise to consult a professional who specializes in reverse mortgages. If you would like to discuss whether you would qualify for a home purchase using a reverse mortgage and or how to evaluate the feasibility of selling your home and purchasing a replacement home using a reverse mortgage, then please contact me.
The new 2011 racing season is about to get off the ground in Placerville. The schedule for this season is packed with all sorts of exciting venues. Please come out and support your local drivers and the Placerville Speedway. It is lots of fun for the whole family!! Listed below is the tentative schedule through the end of May. For a full schedule of events please click on the link below. See you at the races!
One of the most frequently asked questions that I have been asked over the last 22 years of being in Real Estate is; “What should I do to get my house ready for sale”? Perhaps the best way to answer this is by putting yourself in the buyers place. Start by considering what you want in a home and a good place to begin the process is with the model home concept.
What do you find when you go to a model home? The walls throughout the house are clean and fresh. All of the appliances, countertops and cupboards are clean and shiny. There is lots of artwork around the house and you will find fresh flowers or fruit on the kitchen counter or table. The windows and mirrors sparkle, the towels in the bathroom are fresh and new and the bathroom smells fresh and clean. The furniture is strategically placed in such a way that it makes the rooms looks spacious. The closets are either empty or organized. The two car garage floor is clean and neat and it looks like you can put more than two cars in it.
Now think about an open house that you might have gone into where the house is pretty equal in size. The walls and doors might have had dirt, marks or fingerprints on them. There is clutter in all the closets. You might have found dirty dishes in the sink, the appliances are dirty, and there are all sorts of objects and knick knacks on the counters. You find personal pictures all over the house instead of art work. The bathroom has worn and used towels and there are personal items on the counter. The carpets throughout the house might have been spotted or worn. The children’s room and the bonus room have toys on the floor and there might be droopy or dead plants throughout the house. You go into the garage and the two car garage doesn’t look like you can even get one car into it.
If these houses are pretty equal in size which house would you rather buy? Perhaps you are thinking of selling now or in the near future; here are some tips that can make your house show ready:
De-Clutter/De-personalize – Remember as you begin this process you want to look at it as a buyer. Your house became a home when you added your personal touch to it so the prospective buyers need to envision your home as their own. Start by removing personal photos and albums and replace them with inexpensive prints or artwork. Remove wallpaper off the walls and give the inside walls a fresh coat of paint with a neutral wall color. Box up any personal items or those items that you know you won’t be using and place them in a rented storage facility. You will have to box these things up when the house sells so you might as well begin the process now. Pay close attention to detail by ensuring that your closets, cupboards and drawers are neat and tidy and remove any items that you aren’t using and box them up also. The dishes should be neatly stacked and your pantry should be thinned out and organized. Make sure there is nothing on the kitchen counters except fresh flowers or fruit. Look at your clothes closets and be sure that your shirts, blouses, pants and dresses are neatly hung together and your shoes are lined up. This may be a good time to get rid of clothes that don’t fit or that you don’t want any more. You might want to pack up any window coverings, or fixtures that you want to take with you. If a prospective buyers see these things and you don’t want to give them up it could be a problem later on.
Clean it up – Make sure all surfaces, floors, counter tops, sinks, and cupboards are nice and clean. This is a good time to shampoo your carpets or replace them if they are worn and out of date. Your windows and mirrors should sparkle and window coverings should be free of dust and stains. Take a good look at your window coverings and if they are old and dated, you might consider replacing them. Visualize your large living spaces and make sure all surfaces, shelves, entertainment centers etc. are clean and nothing is left out to trip over or draw an eye too. Make sure your bathrooms are sparkling clean and if the grout or tile looks bad, try bleaching it or replace it if necessary. Clean and air out any musty smelling areas. Bad odors are a no-no. Put an air freshener in the entry way so that your house smells clean and fresh. You can bake bread or cookies to give your house a warm and inviting smell, and if you don’t have time to make cookies or bread make sure you have a plug in air freshener going. Now is the time to also fix any leaks, fixtures and toilet seats that look bad. Polish chrome faucets, make sure your refrigerator is clean on the inside and outside. Pay close attention to detail by keeping your stovetop, oven and microwave neat and clean. New bathroom towels look great fastened with ribbon and bows. Make sure your garage is clean and swept and if it is a two car garage make sure it looks like you can get two cars into it. This might mean boxing things up and putting them in storage.
Make each room have one distinct purpose – For example a dining room should have a dining table in it and not be the office. Make the bedrooms look like bedrooms and remove any furniture that makes the room look smaller. Taking the guess work out of knowing what the rooms are helps the buyer visualize what they can do with them. Stage relaxing areas by placing a tea serving at a small table by a window overlooking a garden, or place an open book and cozy throw blanket on the upholstered chair in your bedroom. Put a vase of fresh flowers in the entry hall and arrange some beautiful cookbooks on the counter or shelf in the kitchen.
Check the curb appeal – You might have a wonderful model home on the inside but if the buyer won’t get out of the agents car because they don’t like the outside of your house they will never know how beautiful your home is inside. Be sure that your sidewalks are cleared and swept. The lawns should be mowed regularly and the landscaping should be freshly manicured. You may even need to freshen up your outside paint job and there should be no peeling paint in view. Try planting some new flowers, trim your bushes and make sure your house number can be easily read. All exterior lighting should be in working order and you should plan on keeping the house well lit even at dusk.
If you desire to sell your home for top dollar then you should consider completing the items on the list above. Your home will be as desirable as the new model home that everyone enjoys going into and it will certainly place you above the run down bank owned model in your neighborhood. There are all sorts of options to consider and a way to make the improvements fit your budget. Your home is one of your most significant and important investments. It is a good idea to obtain sound advice on preparing your home well in advance of your need to sell in order to achieve the top sales price in your neighborhood. This is my specialty – please contact me for a no obligation consultation.
Written by Mike Southwick
Use by permission only
Placerville Real Estate Guy - Mike Southwick 
