Redding Welcomes Kool April Nites
Uncategorized
April 10th, 2010
Twenty-one years strong, Redding, California is hosting “Kool April Nites“, Northern California’s largest and most prolific car show. Kool April Nites features over 2,000 street rods and classic cars from all over the western United States. The event stretches five full days, culminating with the cruise along Hilltop Drive and Saturday’s car show at the Redding Convention Center.
The cruise is a “can’t miss” event. What’s more, Real Living Real Estate is hosting a barbeque right on the strip! Located at the corner of Hilltop and Commerce Streets, it might as well be the corner of “Main & Main” when it comes to this event. You’ll need a reservation, of course, and we’ve got just a few spots left.
If you are interested in joining at this great spot with dinner-on-us, please contact me at (530) 945-6457.
Whatever you do, find yourself on Hilltop Drive Friday evening at 6:30 pm and at the Convention Center all day Saturday.
FHA Tightens Its Belt (And Yours)……
Uncategorized
March 9th, 2010
March 13, 2010
The Federal Housing Administration (FHA) functions as an insurer of mortgages for millions of homeowners who might otherwise be squeezed out of the lending market due to insufficient credit, something less than top-notch credit, or both.
In January of this year, FHA announced new, and more restrictive, lending requirements for its insured mortgages. The changes are subtle and shouldn’t eliminate otherwise qualified buyers from the market, but prospective buyers should be aware of the FHA’s moves. Among them include:
- Upfront mortgage insurance premiums will raise to 2.25% from 1.75% of the loan amount;
- The minimum down payment for borrowers with credit scores less than 580 will increase to 10.0% from 3.5%;
- Limit seller credits and concessions to 3.0% of the purchase price, as compared to the current 6.0% level;
- Seek to increase annual mortgage insurance premiums above its current cap of 0.55%, potentially as high as 1.0% of annual loan payments.
None of these changes appear to result in a ‘tipping point’ for the average, or even marginal, borrower. But as with everything, it all adds up. Using a hypothetical $225,000 purchase price with a 3.5% down payment (assuming a credit score above 580), closing costs resulting from upfront mortgage insurance would increase $1,086, and the seller’s allowable concessions would drop another $6,750. The concession amount doesn’t necessarily affect the buyer’s actual cost of the home, as these credits are typically added to the offer amount to compensate the seller, but it once again increases the buyer’s cash requirement at closing.
According to FHA Commissioner David Stevens, these modifications are necessary in order to “strike the right balance between managing the FHA’s risk, continue to provide access to under-served communities, and support the nations’s economic recovery”. Bottom line – FHA is looking to up the buyer’s ante, particularly as it relates to cash at closing.
If you are a first-time homebuyer or relative newcomer to the homebuying market, now is the time to become knowledgeable and aware – not discouraged.
Randall Yelverton
Real Living Real Estate
(530) 224-6716
3 Great Reasons To Sell In A Soft Market
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February 21st, 2010
Letting go of your home or investment property at what seems to be a rediculously low price is hard to swallow, even for the most far-sighted among us. But selling in a soft market can actually be a financially rewarding prospect, provided you are looking to re-invest into a higher price bracket than the property you are selling. Consider the following:
Great Reason No. 1. Do The Math
Let’s assume our market is off 20% from stabilized value, or value assuming an equal number of active buyers and sellers at a given time. A house selling for $200,000 today would otherwise have sold for $250,000, resulting in a $50,000 ‘hit’ to the seller. But the sellers loss becomes his gain when he re-enters the market as a buyer purchasing a $350,000 home, which is $87,500 off its stabilized value, or value assuming balanced market conditions. In this example, the seller nets $37,500, an 18.75% gain on the selling price of the home.
Great Reason No. 2. All Sub-markets Weren’t Created Equal
Reflecting typical mid to post-recessionary trends, home prices are beginning to stabilize in the lower-tiered sub-market, as evidenced by the comparatively large number of homes selling below $150,000. Higher priced sub-markets are nearly always the last to recover from an economic downturn, and this cycle appears to be following suit. Therefore, the hypothetical example outlined above might better be demonstrated by applying a 20% hit to the lower priced home and a 30% hit to the higher priced home. This example results in a net savings to the seller of $100,000, or a 50% gain on the selling price of the home. Starting to feel better?
Great Reason No. 3. Choices, Choices, Choices……..
Buyer-favorable markets, for any commodity, including real estate, are all characterized by one unavoidable fact – greater choices for the buyer. If your next purchase may be your last, you may never see another market with so many choices from which to select. Price aside, ‘moving up’ should put you in the house you have wanted for many years, if not the home of your dreams. Selling today puts these odds in your favor.
If this logic appeals to you, give me a call at (530) 224-6716 and we can discuss how you can take full advantage of current market conditions to find your dream home.
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Our Customer Satisfaction Rating, based on an independent survey, exceeds 97%. This is reflected in our 2008 "QUIE" Award recognizing the TOP 10 REAL ESTATE COMPANIES in NORTH AMERICA! REP/GMAC in #2.
