Modesto Real Estate – Luz Martinez

With a short sale, the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the borrower. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender. Neither side is “doing the other a favor;” a short sale is simply the most economical solution to a problem. Banks will incur a smaller financial loss than foreclosure or continued non-payment would entail. Borrowers are able to mitigate damage to theircredit history, and partially control the debt. A short sale is typically faster and less expensive than a foreclosure. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.

Here are a few commonly asked questions:

Q: Which is better, a foreclosure or a short sale?
Both affect your credit scores, but a short sale quite often has less of an impact.

Q: Why would a lender agree to a short sale?
Lenders typically lose less money when compared to a foreclosure and the additional costs involved:

• Legal fees
• Twice the title transfer fees
• Maintenance of the property prior to sale
• Utilities, HOA fees, vandalism
• Commission & marketing fees

Q: Why would a seller agree to a short sale?
Potential Seller Benefits.

1. Your lender may agree to stop reporting missed payments to the credit agencies.
2. After a short sale you’re able to buy a home sooner than you would with a foreclosure.
3. It typically has less of an impact on your credit rating when compared to a foreclosure.

Contact your bank today and find out if a short sale is the option for you!

For More information contact us today!

www.teammartinez.com

209-571-1122           3421 Tully Rd. #H

Sales of new homes fell unexpectedly to the lowest level on record in February as stormy winter weather kept buyers on the sidelines. The weak results make clear the difficulties facing the housing industry as it tries to recover from the worst slump in decades.

The Commerce Department reported Wednesday that new home sales fell 2.2 percent last month to a seasonally adjusted annual sales pace of 308,000.

It was the fourth consecutive month of declines and the worst showing on records dating to 1963. January’s results, meanwhile, were revised upward slightly to a pace of 315,000.

Read more: http://www.modbee.com/2010/03/24/1100257/new-home-sales-drop-22-percent.html#ixzz0j7KEbEm5

With the average home size declining, owners are cleverly doing more with the square footage they have.

 Years before house staging came into vogue as a sales tool, Howard Hoffman was helping sellers rearrange their furniture to maximize floor space and enhance a home’s beauty. Hoffman, GRI, SRES®, now owns Stage & $ell, a home staging and redesign company in Indianapolis.

 Chances are he’ll have a lot more business in the years ahead from people needing to resize their lives. With baby boomers entering retirement, young adults delaying marriage, and the economy improving by fits and starts, Americans are starting to embrace the idea that less is more when it comes to their square footage. The average size of a new house decreased last year for the first time in nearly three decades. 

 ”Home buyers have been changing,” says Fran Litton, a planner with Evans Group, an architectural firm in Orlando, Fla. “They still want the luxury and toys, but they’re putting them into a smaller space.”

Read More

Read more: http://www.modbee.com/2010/03/04/1074733/fha-program-helps-home-buyers.html#ixzz0hKdOJxCy

by Robert Hunsberger, Sales Representative

Getting your home ready for sale can take anywhere from one to six months, depending on the condition, age of the house and how long you’ve lived there.

So before you list your house, go over the property to determine what needs to be repaired or possibly replaced. Make a list of both major and minor jobs. Tackle big projects first.

It’s tempting to wait until the home inspection and offer to adjust the price in lieu of repairs, but doing so may put the entire sale in jeopardy and may ultimately cost more. Buyers generally tack on extra dollars to any estimate. Most importantly, a major repair left undone creates the impression that the house has not been maintained.

So here is a timeline to help you prepare your home for sale:

6 Months

Besides looking at major systems, a home inspectors will test outlets, run appliances, and turn on faucets. Take this time to fix any obvious problems. You will have to make the repair eventually, so it’s in your interest to do it done ahead of time.

 For dated kitchens and baths consider a minor facelift such as re-facing or painting cabinets, replacing dated appliances and/or installing new countertops. Modernize lighting by replacing old fluorescent ceiling fixtures with recessed lights and/or pendants.

 Historically a minor kitchen renovation recoups a sizable portion, sometimes even all, of the dollars spent and makes a home more competitive. Still, it is important not to over improve compared to similar homes in the neighbourhood and price range.

 If cracked faux or cultured marble sinks and countertops in bathrooms can’t be repaired, replace them. Even inexpensive laminate is an improvement. Often this change, coupled with new accessories and paint, will neutralize dated tile.

 Whatever the season, be sure to take photos to show potential buyers landscaping or views at their best. And as early as possible, fertilize to give shrubs and the lawn a jump start. The payoff comes when the yard is greener than any nearby.

 3 Months

Begin to clean and de-clutter the home. Anything that may make a buyer feel uncomfortable such as grime in corners or grubby grout has to be eliminated.

 Clean out closets, cabinets and drawers so they appear spacious and well organized. If you appear cramped, buyers assume they will be too. Box the overflow and store off site if necessary.

 Don’t forget the garage. Make sure the door mechanism operates smoothly.

 Continue replacing inexpensive items that date a home. Exchange brass hardware for brushed nickel or oil rubbed bronze. While making this change, depending on the style of the house, consider replacing traditional knobs with levered handles which are more current.

 Nothing renews a house faster than paint. Some experts recommend painting the ceilings if it’s been more than 10 years since the last paint job since it immediately brightens a room.

 Tame colors that overwhelm or are passé. If you can’t part with them, leave the old color on one wall for an accent. The same holds true for wallpaper. You don’t have to remove every shred, but enough to ensure a feeling of continuity throughout the house.

 Traditional advice was to paint everything white; the new neutrals, warm beiges and taupes, cozy up rooms without closing them in. To really make a room pop, use white on the trim or as an accent.

 Begin your own market research as soon as possible. Pay attention to what’s newly listed and selling in your neighbourhood. Go to open houses; nothing will give you a better fix on what buyers will expect from your home.

1 Month

Fine tune everything. With major cleaning and de-cluttering completed, go back to see what you’ve overlooked. Make everything shine. Wash windows and even consider removing screens where it is practical to do so. Even the smallest detail like dusting the water heater lends to the impression that the house is well maintained.

 Have the carpets cleaned, especially if you have pets, just before you begin showing the house. If you have a cat, be vigilant about maintaining the litter box.

 To keep kitchen counters clear, plan for areas to store small appliances. Also stash mail and magazines.

All of this advance work makes it much easier to maintain the home while it’s being shown.

While many real estate professionals bemoan slow sales, and many homeowners fret over foreclosure, there’s another side to the ongoing slide in buying and selling homes.

Some buyers have been able to take advantage of falling prices, and some sellers still are able to cash in.

What it means is that even though there are people hurting in this real estate downturn, there also are people who have found a silver lining.

If you bought a house in 2001, you’re fine. You’ve seen the best of times,” said Ken Rivera, manager at American Pacific Mortgage in Modesto.

Despite recent declines, Stanislaus County’s median home sales price in September was $300,000, which is nearly double what it was in 2001, according to DataQuick Information Systems.

Rivera explained that the slump in prices and values is negative only if you’re trying to sell your home or refinance your loan.

He said the angst about the current state of real estate suffers from the same flaw that caused many of the problems in the market: a perspective that’s too short.
Read More at ModBee.com
By BEN van der MEER

The NATIONAL ASSOCIATION of REALTORS® this week launched HouseLogic, a new, comprehensive consumer Web site designed to help home owners make smart decisions to maintain, protect, and increase the value of their homes. HouseLogic will help consumers take responsible actions pertaining to what is likely the largest investment of their lives.

“Backed by the resources and industry insights of NAR and its REALTOR® members, HouseLogic will engage and involve consumers throughout the lifecycle of homeownership,” said NAR President Vicki Cox Golder. “It makes sense that, as the first, best source for real estate information, NAR should collaborate with today’s consumers to help them make the most out of owning a home. HouseLogic will help us do that.”

The free Web site helps home owners plan and organize their home projects and provides timely articles and news; home improvement advice and how-to’s; and information about taxes, home finances and insurance.

“Unlike other homeownership Web sites, HouseLogic helps consumers view their home through a financial lens and make smart, informed home improvement investment decisions,” said Golder. “Families can set goals for saving money on their home or increasing its value, and easily track the progress they are making on those goals.”

Registered users can save relevant information, create to-do lists, and set project reminders. The Web site can also be customized for individual owners depending on how handy or ambitious they are regarding home projects; how much money they want to spend or save; where they live; and their priorities, such as increasing the value of their home or improving their neighborhood.

HouseLogic also empowers home owners who want to get more actively engaged in shaping community life, advocating on neighborhood and homeownership issues that matter most to them. The site provides users with the tools and know-how to effect change, such as establishing a neighborhood watch program, building a community playground, or participating in city or county planning efforts.

“For more than 100 years REALTORS® have been bringing America home,” said Golder. “HouseLogic takes owning a home to the next level, partnering with consumers to truly help people build their futures through homeownership.”

Visit HouseLogic at www.houselogic.com

— NAR