Sales Up Foreclosures Down

The past two months of home sales are at the highest levels in 5 years if you don’t count the temporary spikes we had when the government was offering tax incentives in 2009 and 2010.

I find it  interesting to see that vacation home sales have surged along with investment sales.  In close to half of these sales, buyers have paid with all cash.  Foreclosure sales are finally down a bit, and all signs are indicating that the housing economy is on the move to recovery.

The report from NAR on vacation home sales is good news for homeowners on the Central Coast. I think we all know that many vacation home buyers will seek to buy in our area as it is still one of the most beautiful areas in the world to live. Savvy investors are snatching up the most competitively priced homes, causing a bit of a buying frenzy in certain price ranges.

How this will affect your particular situation? If you are thinking about buying, you should realize that the deals are disappearing fast.  When you find the home you want, don’t be surprised if there are several offers on it at the same time.  Be prepared to possibly pay over the asking price if it is priced particularly low.  This has become a common scenario.

If you are selling your home, be encouraged because if sales remain strong, you will have a much better chance of  getting your price this year, than last year. With foreclosure activity finally easing a bit, hopefully, we will see more regular sales, therefore making the playing field a little more even and “fair” for the average seller.  My advice is to contact a professional to determine what your property would sell for in today ‘s market and be sure to ask them what your net proceeds will be after the costs of sale.

Nancy Puder is the owner and broker of Signature Properties, a prestigious real estate sales and property management firm in Arroyo Grande, CA.  Nancy is endorsed as a trusted Realtor by Dave Ramsey, well known speaker and author. You may reach her at 805.710.2415 or email Nancy@NancyPuder.com. Website: www.SignatureProperties1.com. We always enjoy hearing from you!

Buy Now..Mortgage Fees Go Up in April

Buyers are purchasing now to beat the April deadline for increased mortgage fees on Fannie Mae and Freddie Mac backed loans. Currently 90% of new home loans are guaranteed by these two government controlled mortgage buyers.

Although interest rates will remain low for some time according to the latest reports, sometimes the fees can make a big difference in the amount of cash required to close an escrow.  My recommendation is that if you are on the fence, this is a good time to jump off and do something now.

My  observation and comments about the real estate market gradually turning around was confirmed this week as information released by NAR showed that home sales rose 2% in January of this year.  This means that the number of signed contracts in January is the highest it has been in 2 years.  Although this recovery is and will continue to be slow, I think we can all agree that it is nice to be pointing in the right direction at last. 

Activity in our local CA Central Coast market is already showing a shortage of lower priced homes with many properties receiving  5 or 6 offers on the same day.  Buyers who thought they were making s good offer are losing out on the deals because someone else is coming along and making a better offer, often at the asking price and sometimes even higher when a bidding war breaks out.  Yes, techically, it is still a buyer’s market, however, we can’t ignore the facts.  This type of situation is typical before prices begin to rise upward.

The truth is that If the property is priced right and marketed properly,  it is going to sell in today’s market.  Don’t let anyone tell you that nothing is selling because that is simply not true.  My advice is to get  your information from a good reliable source and don’t depend on the opinion of your neighbor, fellow worker and especially the news channels to make your most important financial decisions. I know that sounds elementary, but that is exactly what I find most people do.

I have found that thr biggest enemy of success is fear of risk and ultimately failure.  Don’t let the fear monster hold you back! Knowledge is power and you may be surprised that when you connect with a true professional and get good sound advice and create a plan, how easy it becomes to fulfill your dreams and accomplish your goals.

Nancy Puder is the owner and broker of Signature Properties, a prestigious real estate sales and property management firm in Arroyo Grande, CA.  You may reach her at 805.710.2415 or email Nancy@NancyPuder.com. Website: www.SignatureProperties1.com. We always enjoy hearing from you!

Own a Home Pay Less Taxes

It’s that time of year again, and most of us are diligently trying to come up with as many legal deductions as we can so that we owe less to Uncle Sam and can keep more in our own pockets.

The mortgage Interest deduction continues to be the “number one” largest deduction that a homeowner can enjoy and is happily reminded of at this time of year.  Still in place, this deduction can be applied against thousands of dollars of income and  you get to enjoy the benefit of owning your own home instead of forking over the money to Uncle Sam each year.

If you are still renting, you are paying your landlord’s mortgage so why not consider putting this opportunity to work for you instead.  This is often easier than you think and yes, the banks are making loans, contrary to what you may have heard!

Amazingly, some are waiting for property prices to fall even further and are so focused on getting the lowest price, that they are missing out on a great opportunity now.  Today is the best day to buy, not tomorrow or next year.  Home prices have not been this low for over 10 years!  Interest rates are unbelievably low. This period is called OPPORTUNITY and is a period that is allowing many to enter the door of homeownership that were shut out before because prices were so far out of their reach.  Haven’t we always been taught that when opportunity knocks, open the door? 

Don’t be fooled into thinking that this current housing situation will last forever.  If you look at the historical graphs of the increases and decreases of home values, you will see that we are right on course.   A lot of what we hear on the news, including the internet, is either incomplete or inaccurate.

Owning your own home is still the American dream and over 80% of Americans still feel that way.  My advice to you is to never give up on your dreams and find out today if you are in a position to buy a home.  If you aren’t quite ready now, a good Realtor or mortgage lender can evaluate your current situation and put you on track to possibly buy a home by this time next year!

Talk to your tax advisor and ask them how homeownership will save you money.  Since I am not a tax professional, I cannot give you tax advice, but as a Realtor for over 30 years and a homeowner myself, I can confidently assure you that this is something that you should get proactive on right now!

Nancy Puder is the owner and broker of Signature Properties, a prestigious real estate sales and property management firm in Arroyo Grande, CA.  You may reach her at 805.710.2415 or email Nancy@NancyPuder.com. Website: www.SignatureProperties1.com. We always enjoy hearing from you!

Looking out for Landlords

Whether you are a new landlord or have held this title for a long time, there are some important tips that can help make the management of your properties simple and profitable.

The number one thing that seasoned landlords understand is that time is money.   For instance, if the value on your rental unit is $1500 per month, that means that every single day it sits vacant, it is costing you $50 per day.

Now close your eyes and imagine yourself putting $50 cash into an envelope each day there is no occupant in your rental and then when it finally does rent, take all of those $50 bills and put them in the shredder. Sounds radical?  Does 3 weeks not sound like a lot of time?  Your thinking may change if you were going down to the bank and withdrawing $1000 in cash and then throwing  it away!

The point is that if you are going to be a landlord, think smart.  Once  you know that you are going to have a vacancy, immediately begin your marketing plan to obtain a new tenant.   I highly recommend that you visit the property the same week that you get the notice, so that you can determine any work that may need to be done prior to the next tenant moving in.  This is also a good opportunity to make your tenant aware of damaged items that they will be charged for if not corrected prior to their move.

Schedule the work in advance beginning the day after the property is vacated.  I cannot express this strongly enough.  Allow the minimal amount of time possible to complete the work and move your new tenant in as quickly as possible. Don’t forget to do a very thorough walkthrough, take pictures and give your tenants copies of the pictures along with the signed inspection.  A word of caution..Do not give the keys to the tenant until you have  completed this process!

Now, since I know that you have written an excellent rental contract after conducting a thorough background and credit check on your tenant, be sure to enforce timely rental payments and make any necessary repairs that come up immediately.  Since you have found a great tenant, treat them well as long as they are holding up their end of the agreement.  A great tenant will typically appreciate you and the property and you will often keep them for a long time and enjoy uninterrupted income.

For more information on how to choose a good tenant, tips on how to choose a great property manager, rules regarding security deposits and other matters concerning landlord issues, go to http:www.SignatureProperties1.com or you can email Nancy@NancyPuder.com or call (805)710-2415.  We always enjoy hearing from you!

What Should I Expect From My Realtor?

Q. We recently decided to start looking for a home and began calling on a few properties for sale.  As a result, we have one agent who is sending properties by email.  The problem is whenever we want to see one of the properties, he is always busy with his kids.  He also says that we need to go get pre-qualified, but we don’t know where to go.  He is a nice guy but we feel like we are stuck.

A.  You are right to question this agent’s ability or level of desire to represent you well in the biggest purchase you have ever made.  There are lots of agents out there, but not as many who operate professionally and as a business.  Sadly, the general public is often unaware of this and end up in a situation like yours and do nothing about it. 

It is very important to feel good about your relationship with your agent and to know that your agent hasyour best interests in mind.  While no one should be expected to work on demand, a professional agent will have a backup system and other agents in place to accomodate their client ‘s schedule on those occasions when they are not available. A good agent will also personally introduce you to one or two reputable lenders in the area and will help walk you through the process.

You should feel free to look around for another agent who is as excited about you buying a home as you are.   I recommend that you look for an agent who is experienced and who has a good track record of selling homes even duing the past couple of years.  A good agent will not tell you that their performance is based on the market because a good professional agent should be able to naviagate through any market, adjusting their game plan so that they continue to sell homes and serve their clients.  If your agent is telling you that they haven’t sold much because of the market, that is a sign that they may not have the skills necessary to give you the representation you need.

Once you find an agent that you feel comfortable with, stop speaking to other agents.  A great agent will give you what you need to have a successful experience but you should return the trust by only working with them from that point forward.

Nancy Puder is the owner and broker of Signature Properties, a prestigious real estate sales and property management firm in Arroyo Grande, CA. You may contact her at (805)710-2415 or email Nancy@NancyPuder.com Www.SignatureProperties1.com. Your calls are always welcome!

Five Reasons Why Homes Don’t Sell

With the market now returning to a normal rhythm, some homes sell right away, but often some sit on the market for several months.  It can be a very frustrating time for homeowners when they need to sell but just can’t find a buyer.

The best thing to do in this situation is to step back and examine why there is no interest in your property and what you might need to do to attract potential buyers.

Here are five reasons why your home may not be selling.

1. Want to sell your home but it won’t sell? 

Perhaps it is over-priced!  Everyone wants the best price when they sell their home but it is important to be realistic when you list your property.  Over-pricing is the most common reason that homes don’t sell.  The truth is, ultimately the buyer, not the seller will determine the price of a home.  You must take a look at comparable properties in your area and determine whether you have priced your home at the high end of the curve.

2. Maybe it doesn’t show well? 

Even the best kept older homes show their age.  The good thing is that you can make some relatively minor changes that will enhance the buyer appeal.  The absolutely number one best bang for your buck is paint.  Think $10 in the can and $1000 on the wall!  Touching up the rooms will give the house a fresh appeal and a clean smell.

3. Bad real estate agent

Yes, they do exist.  While most agents are hard-working and earn their commissions, there is always the chance that your agent just isn’t up to the job.  If your agent is difficult to work with and doesn’t communicate clearly and frequently, chances are you may have to start looking around for another representative.

4. Poor or ineffective marketing to try and sell your home

It used to be a “for sale” sign and an advertisement in the paper would be all the marketing you would have to do to sell your home.  Nowadays, most agents use a multi-level system which may include professional photography and extensive internet advertising.  Talk to your agent to see how much exposure your home is getting in digital media.

5. Location.

If your neighborhood is in a less than desirable area, next to a noisy highway, or has a large number of messy neighbors, your location may just be the problem.  The bad news is there is nothing much that you can do about it.  The other side of the coin is to lower your price.  It may not be your number one choice to sell your home, but if your location is bad, it just might be the only way.

Take a few moments to consider these suggestions and how each one may apply to you.  Sometimes it’s a question of getting good advice from the right real estate agent. Nancy Puder is the owner and broker of Signature Properties, a prestigious property management and real estate sales company in Arroyo Grande, CA.  You may contact her at (805)710-2415 or email Nancy@SignatureProperties1.com

Landlords Should Make Repairs Now

As we all know, a repair made sooner is usually handled more simply than one that is done much later. This is because most problems only get worse when left unaddressed. The cost that we are trying to save by putting the repair off until “later”, often ends up costing us 2-3 times more than if we had just fixed it (and fixed it right) in the first place!

I think that some landlords honestly believe that the tenant should just be grateful for a place over their heads and actually get irritated when the tenants ask to have repairs done, or worse, improvements to the property! Of course, I’m teasing “those few of you out there” a little, but for some of you, it hurts to hear this.

My company  has worked with landlords for many years now and has helped many of them to bring their properties up to a standard that a good tenant expects. (Now…if you are satisfied with below average tenants who only pay their rent sometimes and who aren’t interested in a nice, clean residence and enjoys living like a slob, this article won’t be for you).  But, if you want a nice, clean tenant who treats the property in a respectful, appreciative way and who runs down to pay you on the first of the month, every month, then you may want to hear the rest of what I have to say.

It makes sense that a tenant will  want to get the most they can for their rental dollar and feel safe in their surroundings.  That said, It is almost always less expensive to make repairs immediately, than to delay action and allow the problem to worsen.  Ongoing preventive maintenance to reduce the need for large maintenance expenditures should be the goal of all landlords. This approach makes good sense and, ultimately, provides more profit for the owner.

When there is a tenant move-out, the landlord should not be only concerned with what they are going to charge the out-going tenant before their security deposit is returned.  Normal wear and tear should be expected. The realistic landlord should usually factor in some expense out of their own pocket to keep the property in optimal condition in between tenancies.  Some landlords feel that the outgoing tenant should bear all of that cost, however, the law actually forbids landlords from charging the outgoing tenant cost of normal wear and tear.

There is a law in effect,  since January 2004, that gives the tenant a right to a pre-inspection prior to their move-out. This is a good time to take a good look and start making plans for perhaps paint, if needed, minor or larger repairs, replacement of toilet seats, etc.

It has been my experience that a happy tenant is usually a good tenant. I am, of course, not referring to the constant complainers who are never happy with whatever you do. My advice is to establish good communication when you show  the home to a prospective tenant and do a thorough walkthrough.  This will all but eliminate complaints shortly after their move in and throughout their tenancy. Let the tenant know that you are trusting them to take good care of the property and that you can be reached easily if there is a concern.

If you have any questions concerning your rental property, please call me  anytime at (805)710-2415 or email Nancy@SignatureProperties1.com. I always enjoy hearing from you! Nancy Puder is the owner of Signature Properties, a prestigious real estate sales and property management firm in Arroyo Grande, CA.

Reasons that sellers should list their homes in January. The holidays are behind us again and here we are about to experience a new year in 2012.  If you have been contemplating on whether to sell this year, this is a good time to put your home on the market.  Let me explain why.

One reason is that many buyers have put their home search on hold over the holidays.  As the decorations are being put away,  most people reflect on the past year and think about how they would like to improve their lives over the next 12 months. Often, these thoughts include a move whether up or down or for the first time.

Another reason to sell now is that buyers have pent up energy after trying to gauge what the market is going to do over the past couple of years.   They are beginning to realize that prices have stabilized in many areas, homes are affordable and interest rates are historically low.   Those who have been waiting for the bottom are making the decision to go forward now.

The mortgage interest deduction is a big factor as people are beginning to think about what they will pay in taxes soon.  The mortgage interest deduction is still a wonderful opportunity to pay less to Uncle Sam while enjoying the benefits of owning your own home.  Most buyers realize this and resolve to get into a home so that they will have a big tax deduction to write off next year.

Retirement is also a factor in buyer decisions to move forward at the first of the year.   As we all know, the Central Coast of California is one of the most beautiful areas that someone can choose to retire in.  Many of these buyers are purchasing their retirement home now and leasing it until they are ready to actually move.

After a long slump in the market, this buyer energy is exciting and should be taken advantage of.  As in any recovery, it usually surges, slows down, sometimes stops and then gets going again.  Timing can be everything so this is a good time to take action.

If you need to short sale your home, this is also a good time to make a move in that direction.  There are new laws to protect homeowners from the banks going after them for the difference owed.  This is a good time to make a decision on whether to go ahead and sell  or not and make a plan for you and your family.  If this is your situation, refer to my last post on Short Sale or Foreclosure.

If you need help to sort it all out, contact me for a free consultation and I will do all I can to help guide you to the best decision and show you how to accomplish your goals.  Nancy Puder at (805)710-2415 Nancy@SignatureProperties1.com 

Short sale or loan modification? What if I have to choose? What is the next step if my loan modification is turned down? These are questions that are on the minds of many as we go into 2012 and I can help answer your questions individually and confidentially. 

It is going to be a great year.  Yes, I said it! One way to make this happen is to stop listening to the bad news on the television or in the newspaper!  The truth is that sales have been up in California for seven months in a row.  Consumer confidence is on the rise and the American people are figuring out how to make  necessary adjustments, if necessary, and are moving forward in their lives regardless of the obstacles they are facing!

The truth is that we are resilient people and we will not be beaten down by the economy or the negativity that threatens to consume us daily.  There are solutions to many more of our problems than we think and it is important to speak to someone who can help put things into perspective for you if you are struggling with a decision.

If you know someone who has been unsuccessful with a loan modification or is behind in their mortgage payments,  ask them to give me a call or contact me by email,  and I will help them sort through their options before it is too late to do anything at all.  There are options available other than foreclosure and there are no fees for my consultations.  Beware and warn your friends and family against anyone who is charging money up front with the promise of results.  This includes attorneys!  These are often scams and they can’t do anything for you that I can and will do at no cost to you.

Let me help you get past the pain of indecision and make 2012 a great year no matter what is going on around you! 

Nancy Puder is the owner and broker of Signature Properties, a distinguished real estate firm on the Central Coast of California.  You may contact her at (805)710-2415 or email Nancy@NancyPuder.com

Christmas 2011 — Birth of a New Tradition

A  friend of mine sent this to me and I wanted to share it with you and your friends.

As the Christmas & Hanukkah holidays approach (& other gift giving events), the giant Asian factories are kicking into high gear to provide Americans with monstrous piles of cheaply produced goods — merchandise that has been produced at the expense of American jobs.  This year let’s make a difference.   This year, why don’t we Americans give the gift of genuine concern for other Americans.   There is no longer an excuse that at gift giving time, nothing can be found that is produced by American hands. 

Yes, there is!  Join me this Christmas 2011 — Birth of a New Tradition

It’s time to think outside the box, people.  Who says a gift needs to fit in a shirt box, wrapped in Chinese produced wrapping paper?

Everyone — yes, EVERYONE gets their hair cut.   How about gift certificates from your local American hair +/or nail salon or barber? Gym membership?   It’s appropriate for all ages who are thinking about some health improvement.  How about a massage?  I would love that! Who wouldn’t appreciate getting their car detailed?   Small, American owned detail businesses and car washes would love to sell you a gift certificate or a book of gift certificates.

What teenager wouldn’t like a few certificates to the local pizzeria?

Does someone on your list want to learn how to play golf…tennis…horseback riding…sailing?? Think lessons.

Are you one of those extravagant givers who think nothing of plonking down the Benjamins on a Chinese made flat-screen?   Perhaps that grateful gift receiver would like his driveway sealed, or lawn mowed for the summer, or driveway plowed all winter, or rounds at the local golf course, or gifts from the gardening center.

There are a bazillion owner-run restaurants — all offering gift certificates.  And, if your intention isn’t the fancy eatery sort, what about a half dozen breakfasts at the local breakfast joint.   Remember folks, this isn’t about big National chains — this is about supporting your home town Americans with their financial lives on the line to keep their doors open.

How many people couldn’t use an oil change for their car, truck or motorcycle, done at a shop run by the American working guy?

Thinking about a heartfelt gift for mom?   Mom would LOVE the services of a local cleaning lady for a day.  How about a few hours from a local handyman?

My computer could use a tune-up, and I KNOW I can find some young guy who is struggling to get his repair business up and running.

OK, you were looking for something more personal.   Local crafts people spin their own wool and knit them into scarves.   They make jewelry and pottery and beautiful wooden boxes.  Go to the Arts & Crafts & Street Fairs & Farmers Markets.

Plan your holiday outings at local, owner operated restaurants and leave your server a nice tip.   And, how about going out to see a play or ballet at your hometown theatre? 

Musicians need love too, so find a venue showcasing local bands.

Honestly, people, do you REALLY need to buy another ten thousand Chinese lights for the house?   When you buy a five dollar string of lights, about fifty cents stays in the community. If you have those kinds of bucks to burn, leave the mailman, trash guy or babysitter a nice BIG tip.

Donate to your church, feed the homeless, or start any other tradition of giving during Christmas, but let’s keep it going throughout the entire year for we are blessed.

You see, Christmas is no longer about draining American pockets so that China can build another glittering city.  Christmas is about caring about US, encouraging American small businesses to keep plugging away to follow their dreams.  And, when we care about other Americans, we care about our communities, and the benefits come back to us in ways we couldn’t imagine.

Let’s make THIS the new American Christmas tradition.

This is a revolution of caring about each other, and isn’t that what Christmas is about?