Real Estate Information

The Reno-Sparks market showed improvement for the second month in a row.  Sales increased and the number of months of inventory on the market decreased.  Although we typically see a surge in new listings at this time of year many would be sellers are recognizing that this is a "need to sell" market verses a "want to sell" market and holding off putting their homes on the market.  Therefore we only saw a very small increase in the amount of inventory. 

We still have a long way to go....Sales volume was down about 34.5% from last March.  But we are headed in the right direction.  Hopefully we will see April higher yet and continue this upward trend in sales.

Where do most buyers focus their energy when considering a new home purchase?  On the purchase price.  The purchase price is one of the primary concerns in a real estate transaction.  Often times buyers forget the importance of interest rates and the role they play. 

It is easy to understand the difference between paying $200,000 and paying $195,000 when purchasing a home.  But it is more difficult to understand the difference between paying 6.5% or 6.0% interest.  Interest rates have a large influence on your payments.  Let's look at a couple of comparisons.

$200,000 with a 6.5% interest rate on a 30 year fixed rate loan = payment of $1,264.13/month.

$195,000 with a 6.5% interest rate on a 30 year fixed rate loan = payment of $1232.53/month.

That is only a difference of $31.60 per month. 

Now let's look at what would happen if you were to find that same $200,000 loan, but at a better rate.

$200,000 with a 6.0% interest rate on a 30 year fixed rate loan = payment of $1,199.10/month.  That simple 1/2 point (percent) drop lowered the mortgage payment by 5.4% or $65.03 per month. 

Interest rates change constantly and lenders all have different programs.  It is very important that when considering a home purchase that you talk to a couple of different lenders and make sure that you are getting the best rate possible for your circumstances. 

The best way to compare lenders is to get "Good Faith Estimates" and compare the Annual Percentage Rate.  The Annual Percentage Rate reflects the cost of your loan including the payment and all the lender's fees.  This will help you clearly identify which loan is going to cost you more over the life of the loan. 

Working with a great lender is key to a successful home purchase.  Please feel free to contact me and I will gladly refer you to one of the great lenders that I use.

The City of  Sparks will be opening the new Golden Eagle Regional Park on Monday, April 14th.  At 10:30 a.m. ceremonies will begin with Mayor Gino Martini officiating.   This new $30 million park is home to picnic grounds and trail heads, the sports complex includes six softball fields, three multi-use fields, two baseball fields, and two little league fields along with numerous amenities such as dugouts, bleachers, volleyball courts, concession and restroom facilities, picnic shelters, lighting, roads and parking facilities.

Be there and be a part of history.

IT’S GREAT TO BE HOME:  A FREE WORKSHOP FOR PROSPECTIVE HOMEOWNERS

Now is the time to buy and residents of the Truckee Meadows can attend a FREE Home Buying workshop to learn how to reach the goal of home ownership and how to avoid common pitfalls.

This FREE workshop will show prospective homebuyers exactly what is needed to make the switch from renting to home ownership.  The workshop will include details on each step of the home buying process.  Homebuyers will receive information on finding the right home, finding the right mortgage, figuring out how much they can afford and how much is needed for a down payment, what to expect at closing and much more.

Bank of America’s Kathy McAlpine and Dickson Realty’s Amy Shocket have teamed up to provide this valuable information to prospective home buyers.  This FREE workshop will be offered on Thursday, April 10^th from 6 p.m. to 8 p.m. in Sparks.  To reserve your seat for the seminar and get location information please call 824-8253 or email amyshocket@sbcglobal.net.

Buyers are harder and harder to come by these days so sellers really need to make sure that they house is not only priced right but that is shows in the best light possible.  Here are some tips on how you can make your home shine.

• Curb Appeal - Stand out in front of your home and take an objective look at your home.  Look at the landscaping, paint, roof, shutters, front door, knocker, windows, house number and even how your window treatments look from the outside.  Add something special that will catch prospective buyer's eyes - a big flower pot with colorful flowers or an antique bench.  Give them something to remember your house y.
• Color - Paint is one of the least expensive ways you can add a welcoming affect to your home.  You want colors that invite buyers in and then help their eyes move from room to room. Tint ceilings a lighter shade of the wall color.
• Kitchen and Baths Are Where It's At - These are the make-or-break rooms in every home.  They need to be squeaky clean and clutter free.  Update the faucets and hardware. 
• Architectural Details - Install crown molding 6-9 inches in depth, proportional to the rooms size.  It's all in the details.
• Screen Hardwood Floors - This is a less expensive and less dusty alternative to refinishing hardwood floors.  It entails a light sanding and a fresh coat of urethane.
• Clean Out Your Closets - Organize and sort through all the stuff in your closets (it will be one less thing you have to do when you get ready to pack).  You want your closets to be only half full so they appear larger.
• Window Wear - Make sure your window coverings allow for the maximum amount of light and are not too frilly or fancy.
• Pre-Inspections - Many buyers are seeking homes that are move-in ready.  Have your home inspected and make repairs as not to delay the purchase down the road.

Want an expert opinion.  Give me a call today and I can help you get your home ready to sell.

Are you trying to sell your home in the Sparks or Spanish Springs area?  Do you know who your competition is? 

In the under $300,000 price range your biggest competition is from bank owned homes.  These homes have already been through the foreclosure process.  Now that the bank owns them they want to remove them from their inventory as soon as possible.  In the under $300,000 price range 60% of the homes that have sold in the Sparks and Spanish Springs area since March 1, 2008 have been bank owned. 

The over $300,000 price range has fewer bank owned sales, but also only accounts for 26.4% of the total homes sold. 

How do you compete?  If you are a traditional seller in this market you need to make sure your price is competitive with what is selling in your neighborhood.  If you have a large number of bank owned listings or short sales in your neighborhood you will need to price your home within range of these homes.  A good agent will give you a complete market analysis. 

If you are priced competitively you can also set yourself apart by publicizing that you are not a bank owned or short sale listing.  Many buyers are seeing the benefits of buying a traditional listing once they have had a negative experience with a bank owned or short sale negotiation.

Call me today for more information about pricing your home to sell in the Sparks and Spanish Springs market. 

With all the doom and gloom you hear in the press and the instability of financial markets many would be home buyers are anxious about making the big step into home ownership.  When prices are falling few people have the discipline to make the jump, but those who do will excel in the long run.

Why Buy Now?  Why Should You NOT Wait!

If you were to purchase a home today at $218,900 with a 20% down payment and a 30 year fixed mortgage at 5.5% your monthly payment would be $994.31.  

I you wait to buy until the economy recovers - interest rates will have gone up.  The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher. 

Let's say you wait a year.  The cost of the same home in the example above has dropped 10% to $197,010.  Unfortunately rates have gone up to 6% on that same 30 year fixed and you still put 20% down.  Your payment would be $994.94.  IT'S ESSENITALLY THE SAME PAYMENT!

In additon, as the market starts to recover sellers will be less likely to come down on price and inventory will shrink limiting your choices.

So even though the risk seems higher to buy now than to wait to see what happens, this example shows that in reality it's not.   This example shows that if you wait a year to buy, you will basically have saved nothing, and spent another year living in a place that's not really yours, and missed another year of the great home mortgage interest deduction on your income taxes. 

Now is a great time to buy.

The sales of bank owned foreclosues accounted for approximately 38% of the closed sales of homes in the Sparks area according to data from the Northern Nevada Regional MLS.  In addition, as of March 10th these types of sales are 62% of the closed sales in Sparks for March.  The number of pending sales in Sparks that were either bank owned foreclosures or short sales was 59% of all pending sales as of March 7th. 

Opportunities for buyers abound in the purchase of a bank owned foreclosure. 

What Are The Benefits of Purchasing A Bank Owned Property?  Bank owned properties are often times listed below market value for a quick sale.  When a bank gets a property back through foreclosure they are required to put aside a percentage of the properties value in reserves.  This takes away from the pool of money they can lend out.  The bank’s primary source of income comes from loaning money so they have a big incentive to sell the property quickly so they will have money to lend.

What Are The Drawbacks of Purchasing A Bank Owned Property?  When a lender sells a property they have gotten back through foreclosure they typically require the buyers to waive the Seller’s Real Property Disclosure.  This document is required by law of typical sellers so that any issues with the property can be disclosed up front.  In addition, most bank owned properties are sold in “as is” condition which means that the lender will not make any repairs indicated on the inspection reports.    The length of time the process takes to finalize an offer is often frustrating to buyers. 

 How Is The Buying Process Affected?  When purchasing a bank owned property, the process is basically the same with one exception - getting an accepted offer.  Many banks use a third party asset manager to negotiate on their behalf.  Negotiations with the asset manager once the offer is submitted may be verbal.  When an agreement is reached the asset manager prepares a counter offer with the agreed upon terms.  This agreement is then sent to the lender for their final approval.  This process can take several weeks.

For a email list of bank owned foreclosure properties please contact me.

The figures are in for January 2008.  In the Reno-Sparks area sales of all existing residential (stick built, manufactured homes and condos) there were 194.  There were 3,805 active listings.  This gives us 19.6 months of inventory.  This means that based on the rate of sales in January it would take 19.6 months to sell all the listings on the market in January.  This is the highest amount of inventory we have seen to date. 

As February has just come to a close we are anxiously awaiting the sales figures.  We saw an increase in buyer activity in February and hope that we will see an improvement in the numbers for February.  We many not see the effects of the increased activity until March's sale figures.

According to the Northern Nevada Regional MLS we saw a 480% increase in the use of FHA loans in January as compared to January 07.  Conventional loans, VA loans and cash sales are all down from this time last year, although the largest number of loans are still in the conventional loan category. This is a direct reflection of the tightening of credit in the conventional loan sector. 

The total number of sales in the Reno-Sparks area were down 36% from January 2007 with the average sales price only down 1% for the same time period. 

Looking forward to seeing how February sales come out....