Pre-Turkey Day Stats for Santa Clarita Valley

Same old news posting around so I decided to share the latest stats just before the Thanksgiving holiday....I suppose it's to remind everyone that we do have some things to be thankful for.

ACTIVE LISTINGS ~1143
REO's ~ 160
SHORT-SALES ~ 510
Everything Else ~ 473

IN ESCROW ~ 787
(I include Pending and Taking Back-Up Offers here)
REO's ~ 160 (weird, huh)
SHORT-SALES ~ 497
Everything Else, again ~ 130

CLOSED IN LAST 30 DAYS ~ 295
REO's ~ 83
SHORT-SALES ~ 102
And, one more time...Everything Else ~ 110

So, I am again thankful that homes are still selling. I did finally have a buyer denied a loan in this market. Not my buyer, of course!

HAPPY THANKSGIVING, Enjoy what you have!

How To Figure Out Your Homes' Value Using The Internet?

Hubby is out working, I just finished a delicious dinner salad. Opened a new escrow today, still waiting to hear back on another offer out. Closing a listing escrow Tuesday. So, obviously, settling in for the evening. Thought I'd peek around and see what's interesting in the news, etc.

Came across an article that is so right on. "How To Figure The Fuzzy Math Of Internet Home Values". There are several websites that give Zuestimates on a home value. Some sellers like to start here before they talk with a Realtor about possibly selling their home. I say, right on, again! I want my clients to have as much information as possible about what they think their home is worth before I even walk in the door!

But, I want them to get it from a reliable source.....(yes, that would be me).....before they make a firm decision.

Zillow, Realtor.com, Trulia...and several more will certainly assist a seller in determining an approximate value, but they have self-admittedly found numerous errors in their calculations. I'm glad they admit them.

Now, they have gotten much better, trust me. I used to hate going into a home that the seller met me with "Zillow says my house is worth xyz!" When xyz was significantly higher, or lower, than my knowledge presented.

And, Realtor.com, they were weeks behind. They are better too!

All of them are getting better....but, they are not perfect. And, neither is any Realtor that says they are. We can show our stats of list price ratios to sale price. We can show the market as it stands now, and 3 months ago. We can suggest, based upon our experience, where we think the market is going to be in 3 months. We can tell you what our marketing plan is. And, because we are the ones that are pounding the streets, seeing the inventory, working the escrows....we know significantly more than a computer algorithm.

Enjoy the full article:

How To Figure The Fuzzy Math Of Internet Home Values

When the House-Hunt is Taking too Long

I'm one of the most patient Real Estate agents I know. I work hard to try and keep my buyers patient about the home buying process as well.

Sometimes there just doesn't appear to be a home out there for them. Sometimes they think they should write an offer on something that really doesn't suit their needs.

A great article for those of you that think it's taking just waaay tooo long:

Five Ways To Course Correct When The House Hunt Takes Too Long

These 5 items noted are good, appropriate and justified.

But, sometimes, the right house just doesn't come along at the right time ~ therein lies the need for patience.

After all, it is a Virtue!

Don't Worry ~ You're Probably One of The Many!

The Internal Revenue Service is still struggling with the tax credits that helped boost the housing market a few years ago. And, the article I read today made me giggle.

Why anyone, IRS included, would put together a program without considering all the T-crossing and I-dotting required is beyond me.

Now, they are asking people for money that don't owe it. And, not asking people for money that do. Had to hire an outside agency ~ more money wasted ~ to try to figure out if people still lived where they were supposed to, if they owe it or don't. Yikes!

More Problems Are Found With The Home Buyer Tax Credits

But far more commonplace, according to auditors, were shortcomings by the IRS in distinguishing between taxpayers who were supposed to repay their credits over a 15-year period — as required under the original $7,500 program in 2008 — and people for whom there was no such requirement under later versions of the program allowing credits up to $8,000.

So, you know who you are and you know what you owe. Don't fret if you get the wrong notice from the IRS, a lot more tax-payers are too!

Triggers of Lender Scrutiny ~ A Refresher Course

I know I've touched on this before, but it bears repeating, repeating, dare I say it .... repeating. 

I read this article in the NY times this morning. Feel free to read the whole thing via the link below:

Triggers Of Lender Scrutiny

At any rate, people are talking about how hard it is to get a loan these days. Only until this month did I have someone denied for a loan that I was working with. Not one of my buyers, one that was purchasing a listing of mine. Regardless, it happened. And, it happened because the paper trail that needed to be followed just got narrower and narrower. So minute, that the lender couldn't follow it any more. So, poof, he was gone. No worries, we got another buyer in 48 hours!

So, really, just stick to the basics. Don't do something fraudulent, or even attempt something round to fit in a square hole. It's not going to work these days.

Loans of today are far different than loans of years gone by. And, when it comes down to that last few days of escrow and the damn lender is asking for things you feel are redundant and downright stupid? Just do it, send them what they ask for. 

You won't get your house if you don't! 

Home Price Depends On Interest Rate, Yes?

I just read another doom and gloom article. It, of course, depends on the hour, the day, the author, the locale, and more.....as to whether I read a doom and gloom or something more upbeat about Real Estate.

Earlier in the day I received an update about Interest Rates on mortgage loans.

So, I did a few calculations that I am going to jot down, share, and summarize.

For simplicity, let's use round numbers and a conforming conventional loan ~

Home price $350,000
Current rates 4.00%
20% down payment.
Monthly payment = $1336.70
Finance charges over the 30 year loan life = $201,235.49
Total cost of home = $551,235.49

Next example ~ let's say with a 10% drop in value that some say may still happen.....


Home price $315,000
Future interest rates 5.00% (that's a guess, as of course, we have no idea!)
20% down payment.
Monthly payment = $1352.79
Finance charges over the 30 year loan life = $235,004.67
Total cost of home = $550,004.67

And another example ~ with a total of 50k drop.....eeeck!


Home price $300,000
Again guestimating a future interest rate 6.00%
20% down payment.
Monthly payment = $1438.92
Finance charges over the 30 year loan life = $278,012.58
Total cost of home = $578,012.58

I don't think I have to summarize this that thoroughly ~ I believe it shows you how much you save on a home price can frequently be eaten up on the interest rate you are paying. I've been involved in Real Estate for over 30 years, as a Realtor for over 10....I've never seen rates where they are right now for a 30 year fixed mortgage...never. And, I do believe that will go up more likely than going down much further.

You can do the math, as they say....and do I even need to mention the tax benefits of home ownership?

Video of You? And, Maybe Win a $500 Lowe's Gift Card!

I received this via e-mail this morning and wanted to share with my peeps!

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October 28, 2011

Dear Lauren,

In August, we had the pleasure of announcing C.A.R.’s brand-new 2011 consumer advertising campaign, “California REALTORS^®. Champions of Home.” It’s been airing on cable, TV, radio, and online. Today, I’m thrilled to kick-off the campaign’s social media effort, C.A.R.’s first-ever Facebook contest, called “Stories of Home.” This contest features a new app built specifically for this campaign, one which enables consumers to automatically and easily record evidence of their testimony about “home,” and the value of home ownership and of working with their REALTOR^®.

Now through Nov. 30, 2011, California home buyers and sellers with a Facebook account can either submit a video to compete for a $500 Lowe’s gift card, or simply vote for their favorite videos. Building on the effectiveness of the commercials in which California home buyers and sellers talk about the invaluable qualities of using a REALTOR^®, the Facebook contest helps to extend this message into the social media realm and offers satisfied home buyers and sellers a place to sound off about their own positive experience.

To participate, consumers simply visit C.A.R.’s Facebook page and “like” the page. Selecting “Stories of Home” from the left menu provides prompts to either record a video on the spot or upload a previously recorded video. Additionally, visitors to the Stories of Home page may view other videos and vote for their favorites.

This is a terrific opportunity for you to tell your clients to be a part of this exciting contest and have a chance to win a $500 Lowe’s gift card.

For complete information about the 2011 consumer advertising campaign, please visit here.  I hope you are as pleased with this campaign as we all are in bringing it to you.

Sincerely,

Beth

Beth L. Peerce
2011 President
CALIFORNIA ASSOCIATION OF REALTORS®

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Isn't that nice???