The Engels Real Estate » Advice & Tips

Tri-Valley Market Update! (July/August 2010)

Cindy — Fri, 30 Jul 2010 20:21:14 +0000

THE ENGEL TIMES (July/August 2010)

WHERE DO WE GO FROM HERE?

The Real Estate Market in the Near Term:

Our take on it is that it all depends on…jobs.

Affordability is the driving force impacting home prices right now. If in the East Bay’s economic future, employers start hiring, (and paying competitive salaries), then demand for homes will continue and strengthen.

Having to forecast based on current conditions, our expectation is that values will stay pretty much where they are now, with a possibility of lowering somewhat further. We are currently transferring ownership at mid-2002 price points.

Depressed sales are accounting for:

SHORT SALES REOS [BANK OWNED]

LIVERMORE 27.83% 18.26%

PLEASANTON 13.82% 5.69%

Please contact us for any specific data you may require as to your particular situation and location.

CURRENT INTEREST RATES

Conforming (up to $417,000)

15 year fixed

3.875% at zero points

4.00% at no cost

30 year fixed

4.3750% at zero points

4.5% at no cost

Rate Information (as of 7/16/10) Provided By:

Rusty Anderson
Emery Financial, Inc.

rusty@emeryfinancial.com

OUR BLOG

Please visit our Blog www.TheEngels.com for Current Listings, Market Activity in Your Neighborhood, Interest Rates, and Valuable Market Updates!

Become a Fan on Facebook! http://www.facebook.com/EngelRealEstate

BACK TO SCHOOL!

As we start thinking about Fall and Back to School, here are some resources that you may find valuable!

For School Scores (Academic Performance Index Scores):

(Pleasanton) http://www.pleasanton.k12.ca.us/PublicInformation/PressReleases.cfm

(Livermore) http://www.livermoreschools.com/cms/page_view?d=x&piid=&vpid=1228578823365

(Other Areas) http://www.cde.ca.gov/ta/ac/ap/

For School Boundaries:

(Pleasanton) http://www.pleasanton.k12.ca.us/educationalservices/pupilservices/AttendanceArea.cfm

(Livermore) http://www.livermoreschools.com/cms/page_view?d=x&piid=&vpid=1228578823332

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(March 2010) Mortgage Rates!

Joel — Tue, 02 Mar 2010 18:17:54 +0000

(March 2010) Mortgage Rates!

Rates are still good!!

5% 30 year fixed.
5-1 Arm as low as 3.875%
And Jumbo 30 year fixed at 5.50%

Rate Update, Thanks to:

Staci M. Fraser
Home Mortgage Consultant
Stagecoach Priority Certified
Wells Fargo Home Mortgage
MAC A0327-011
5075 Hopyard Rd. Ste 200
Pleasanton, CA 94588
925.251.4307 Tel
925.321.0744 Cell
866.512.6975 eFax

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(February 2010) Mortgage Update!

Cindy — Tue, 02 Feb 2010 18:41:49 +0000

(February 2010) Mortgage Rates!

Conforming Rates:                    APR’s:
0 Points

30 yr fixed - 4.875                   4.96
15 yr fixed - 4.250                    4.33
10/1 ARM -   4.500                    4.59
7/1 ARM -     4.125                    4.21
5/1 ARM -     3.750                    3.83

High Balance Conforming Rates up to $729,750:
0 Points
                        Rates:                    APR’s:
30 Yr Fixed -   5.125                    5.21
15 yr fixed -    4.500                    4.59
5/1 ARM -       4.250                    4.33

Rates & APR’s based on $417,000 loan amount & 0 points. Rates, fees & guidelines are subject to change without notice.

Rate Information Provided By:

Lori Smith

Certified Mortgage Planner (RPM)

925-461-6959

lsmith@rpm-mtg.com

30 W. Neal Street #105

Pleasanton, Ca. 94566

R.E License #01125965

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The Engels (Good time to Buy? Sell? )

Joel — Wed, 16 Dec 2009 00:29:27 +0000

As lifetime members (third generation) of our community, the Engel Team, Joel & Cindy, would like to introduce themselves!

Joel and I have been full-time Residential Realtors in the Tri Valley area for 22+ years. We have an excellent understanding of the local builders and the communities. This experience and knowledge speak to our years of success in the Real Estate Industry.
As Broker/Owners of Engel Real Estate, and our association with Prudential California Realty, we have over the years put a team together to handle all aspects of transacting Real Estate efficiently. We have personally transacted over 1000 residential sales in the Valley!

Many of our clients call and inquire from time to time as to whether or not it is a good time to purchase or sell their property. We answer, as best we can, based on the type of market we are experiencing. Currently, of course, we are solidly in a “Buyers Market”, with local home values at a 2003-2004 level. It is a great time to buy especially if your expectation is to live in that home for at least the next 5 years or more. This does not necessarily mean that it is not a good time to sell. In a declining market, where home prices are falling, depending on your time horizon, it may indeed be a wise time to sell. For instance, if we look back to 2008-2009, we can see that in general, values declined about 10% in that year. If you are planning on selling within the next 5 years and you believe values will continue to drop for at least another year or so, then it may be wise to preserve your equity and sell now. Please call us with any questions about your specific situation!

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Short Sales

Cindy — Wed, 16 Dec 2009 00:09:11 +0000

With the many changes in the market, we wanted to help to educate our clients and answer some frequently asked questions about short sales. If anyone you know has any questions about short sales, please contact us, as we have relationships with CPA’s and Attorneys who have the latest information. Since each transaction is unique, it is imperative that any person in this situation gather the best advice prior to moving ahead.

What is a short sale?

A short sale is when a lender accepts a discount on a mortgage to pay-off the loan to avoid a possible foreclosure auction or bankruptcy. The lender must approve the contract and terms of the discounted pay-off. Foe example: A homeowner facing foreclosure has an existing first mortgage of $700,000. A buyer writes an offer for $580,000, which is accepted by the lender as full payment for the loan.

What happens to the seller’s credit rating after a short sale?

What typically happens is that the loan will show as “paid” on their credit report, with a notation that says “settled for less than the original owed”, or something similar. It is more favorable for a homeowner to short sell their home than to have a foreclosure on their credit report.

Can an owner profit from a short sale?

The seller cannot profit, monetarily, from a pre-foreclosure short sale.

How do bankruptcies affect the possibility of a short sale?

Most mortgagors will not consider a short sale if the homeowner is in bankruptcy. This is because negotiating a short sale pay-off is considered collection activity, and collection activities are prohibited in bankruptcies.

How late in the foreclosure process can you start a short sale?

Try to allow a window of at least 90 days to effectuate a mortgage approved pre-foreclosure short sale.

For all other questions, leave us a note, or e-mail me at cindy.engel@comcast.net

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Interest Rates & Market Update

Joel — Sun, 22 Nov 2009 05:36:23 +0000

(November 2009 Update)

Since home sales and home values are so closely tied to the cost of borrowing money, we thought we would focus some attention on current interest rates, along with the general Real Estate related topics we usually discuss.

The cost of borrowing money to finance home purchases are currently at very low rates. 30 year conforming, loan amounts of under $417,000 are below 5% and jumbo loans, above $417,000 are about 5 ¾%.

With these almost historically low rates, we would expect to see a frenzy of buying activity and in fact we are, in the entry level and first time buyer category. The Federal tax credit for first time buyers is set to expire in November. With the affordability of homes and the possible extension of the tax credit we will probably see these entry level home sales continue. However, with the lack of equity many of the traditional move-up buyers have all but disappeared.

Various economic reports assert that recovery to peak levels may take as long as 10 years. As we all assess our housing needs relative to family size, community services and commute distances, we may find that what we thought was a basic requirement may indeed be a luxury in the reality of today’s economic truths. More and more families are exploring the possibility of expanding and remodeling their existing property instead of replacing it with a newer/larger one.

Whether or not to expand/remodel or move to a replacement home is a traditionally difficult decision. If we as your trusted Real Estate Consultants can provide any assistance or information to that purpose, please contact Cindy or me at your convenience.

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The Middle Man

Joel — Tue, 20 Jan 2009 04:27:29 +0000

There are many new companies that offer their service as “negotiators”. These companies for a fee (usually 1-2% commission) will negotiate directly with the lenders involved. Their claim is that they have experience and will stay in constant contact with the lender. Usually, they are employed by the listing agent. It is important to know if one of these companies are involved in the process. Many times it can be more complicated and you can end up with “too many cooks in the kitchen”!

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Over-pricing vs. Under-pricing

Joel — Tue, 20 Jan 2009 04:14:12 +0000

When listing short sale property, a Realtor may start with an asking price that looks to be too high compared to the current market. This may be a part of a required process on the part of the lender involved. Many times the lender will require the home to be marketed for several weeks. If there is no interest, then lower the asking price. Continue to market the home at the new asking price for several weeks and, again if no offers, lower the asking price. This is a process continued until you have an offer to be considered. Now the lender has a history of pricing and marketing the home for maximum return. Sometimes when listing a short sale property, a Realtor may have an asking price that seems very low relative to the current market. This may be the over-anxious agent trying to get several offers going right away on the home. Until there is an offer received on the home, the lender will not begin to process a short sale.

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Short Sale Approved!

Cindy — Mon, 19 Jan 2009 19:56:20 +0000

Really? After submitting an offer to be considered by the lender for a “short sale”, you may be informed that the offer price and conditions have been approved. Many times the “waiting game” takes so long that the buyer making the offer decides to move on and find another property. At that point, the listing agent knows the acceptable price and terms from the lender. Reading in the “confidential remarks” agents are informed that the current asking price has been approved. Get ready, because as you know, things change! Lender situations change…, you have prices of homes in a downward trend and you do not know the current status of the seller’s mortgage payments. You could be thinking you have an offer that should be accepted but not having all the facts, the home could go to “Trustee Sale” and you have nothing!!!

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