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Posts Tagged ‘“Davis’

home buyerIt’s more than just bad luck when a buyer misses out to a more attractive offer. Normally it’s a bad strategy that causes the continued anguish of losing out to better offers. Those that fail to learn from history are doomed to repeat it, that phrase actually works well when attempting to purchase a home in Davis, California. How can a buyer put themselves in a more favorable position?

I have personally worked on both sides of the spectrum. First with sellers that have been fortunate enough to receive multiple offers, but also with buyers that were competing with other buyers for the same property. The process of preparing an offer for a buyer on a home with multiple offers can be agonizing for each party involved. It always boils down to who wants the property the most.

Some buyers will not get involved in a competing war, so that shrinks a percentage of the competition. Here’s an itinerary for those that want to stay in the fray. In most cases, the highest price wins out, but understand it’s not always the price that wins. Buyers have to be willing to bite the bullet and give up some of their contingencies, depending on how many buyers you are competing with. An example, let’s say you make an offer $20,000 above asking price, to make this proposal even more appealing, you might consider removing your appraisal contingency. This only makes sense if the property can justify the higher price. Buyer beware with this tactic.

There are many cash buyers on the market that are purchasing homes and making strong aggressive offers. There are ways to combat those buyers that can at least put you on a more level playing field. Removing your loan and appraisal contingency will do the trick. This strategy only works if you are completely pre approved for a loan and there’s no chance the property won’t appraise at value.

Your realtor should try to get as much information as possible about the sellers needs and requirements. They can do this through conversation with the listing agent. For instance, a seller doesn’t mind a quick close, but wants a 30 day rent back or they desire to sell their home “as is”. Trying to adapt to the sellers needs puts you in a better position.

I also use a tried and true philosophy that seems to work if you have a motivated buyer. This one takes guts and not for the weak at heart. A buyer offers $5000 increments depending on the amount of competition. For instance, a home has two offers, that third offer might consider going $15,000 above the listed price. There are many strategies that can put a family in a stronger position and these are just a few. Please visit my website JohnnyBrooksHomes.com for helpful tips on selling or buying a home or to view all homes for sale in Davis, California and the surrounding communities.

 

 

 

 

 

 

 

 

 

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creekside-place-homeTiming is important in every aspect of someones life, never more so than the optimum time to sell their home. There’s probably fewer landmines when selling a home in Davis than other areas and timing is not as important here than maybe some other communities. Even now as the inventory increases, well priced homes are selling rapidly and in some cases, above asking price.

Even as the year started, home buyers were out in mass visiting open houses and making offers. As home values continue to increase, up 20% since 2012, there are a few concerns that might reverse the current trend. Mortgage rates are expected to rise between now and the Fall season. This will affect how much home a buyer can purchase and possibly put a dent in the surplus of buyers that are currently on the market.

The other obstacle is the new Cannery Subdivision that is now laying the ground work for a Summer grand opening. The expected price of these new homes will be in the neighborhood of $600,000 and up. They will also have some of the highest taxes in Davis, but families looking for a new home will certainly wait for this opportunity. Beware of the first phase of any new subdivision, they always offer the least desired location.

Enough of the negative. We currently have 85 properties for sale in Davis at an average listed price of $694,685 and a price per square foot of $346. There are 77 homes in pending status that average $593,195 and a price per sq ft of $334. As of May 11th this year, there have been 158 properties sold at an average sales price $556,608 and a price per sq ft of $330.

Through the same period in 2014, there wer 139 Davis homes sold at an average sales price $551,372 and a price per sq ft of $306. In 2013 we had 163 sold properties at an avg. sales price of $483,344 and a price per sq ft of $273. The early signs are obvious that property values are up, but those numbers would also suggest that home values in Davis will continue to rise for the immediate future.

The pending home sales will increase the overall sales price over the next few months. Timing is vital when selling a home in Davis, California and the time is perfect for home sellers in the current housing environment. Please visit my website JohnnyBrooksHomes.com for helpful tips on buying and selling a home or to view any property on the market in Davis or our surrounding communities.

 

 

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It’s human nature to assume a coverup when full disclosures are not made by any Police Department, especially when defenseless college students were violated by UC Davis campus police. An Alameda County Superior Court Judge gave authorization for UC Davis to release most of the investigative reports stemming from the pepper-spray incident and arrest of nonviolent Occupy UC Davis protesters that occurred on November 18th. Attorneys for UC and the University Police Officers have until a March 28th hearing to determine if the disputed portions of the reports are released. Concealing any portions of these reports would not be beneficial and would only prolong the embarrassment this situation has caused. It’s not known when UC will dispense the material.

The reports were only a fact-finding operation and do not recommend any disciplinary action. UC attorneys argued the reports should be released in full, while the Federated University Police Officers Association are asking that portions not be disclosed to the public. Everyone has seen the horrific YouTube and those pictures are worth a thousand words. Six to ten police officers are under investigation among the thirty-five that took part in the clearing of the protesters on the Quad at UC Davis. Three department employees have been placed on administrative leave. The dispute between UC and the Police Department are over the release of officer names that were involved in the pepper-spraying episode.

The judge’s ruling expressed some concerns about whether some material in the reports violated the privacy rights of the officers under investigation. Some officers that witnessed the pepper-spraying were given immunity from discipline, while others that were under scrutiny were not interviewed. How could union attorneys object to a photo that has went viral and been viewed worldwide. Now that bickering attorneys are involved, this case might proceed through eternity with lawsuits and court motions. This case will be discussed and analyzed among historians, college students and the general public for ages. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks at Twitter and LinkedIn and to view local area homes for sale in Davis, California and the surrounding communities.

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As a Davis,Ca realtor who deals with Short Sales and have sold many during the last 15 years, I have experienced euphoric highs of successfully completing the Short Sale and a few cases where the bank decided to foreclose. About 30% of the homeowners nationwide that apply for a Short Sale are approved. This percentage is slowly increasing with some pressure from the federal government and many banks now allocating some of the grunt work to outside entities like Equator.

Over the years I have had a few Short Sales in Davis,Ca and the surrounding communities close escrow in as little as 60 days but the majority can take six months or longer. My job as a Short Sale Specialist is the same with any home I market… get it SOLD. That means finding a buyer that will pay fair market value and willing to wait the time it takes for bank approval.

Part of getting a Short Sale to the closing stage is knowing the proper nuances and protocol. Unfortunately, there are many realtors getting involved with Short Sales that are clueless and are putting the seller at a financial risk for their own monetary gain. Here are a few mistakes that I see repeated by some realtors that could prevent the Short Sale from being approved  1) Submitting unsigned offers to the lender 2) Submitting low-ball offers to the lender that has no chance of being accepted 3) Allowing contingencies after the Short Sale approval 4) Not submitting required documentation in a timely fashion.

There are a few realtors that understand the Short Sale puzzle and know how to successfully navigate the waters. Short Sales that have more than one lien holder tend to be more difficult to get done than if there are only one lender involved. When there are multiple lenders, you need approval from both for the sale to take place. There are occasions where the 2nd lien holder has chosen to foreclose instead of granting Short Sale approval.

Here’s the scenario… a home is on the market for $350,000 and has a second for $50,000. The seller is financially unable to keep his mortgage current. A buyer makes an offer at $340,000, which has been determined fair market value. The seller accepts this proposal and the offer is then sent to both lien holders. The first lien holder accepts this offer and the second lien holder is offered a  payoff of $3,000, in order to approve the Short Sale. There are cases where the second will refuse this payoff and the home forecloses. Even though it appears the second will not benefit monetarily, it is still conceivable they could foreclose. The agent should build a relationship with both lien holders at the beginning of the process in hopes of curtailing this possibility.

The above scenario is why it’s imperative you have a Short Sale Specialist that has been challenged and succeeded with the  rigors of Short Sales. There are times when it is too late or virtually impossible to make the Short Sale work but having an expert negotiator on your side improves the odds. Please contact me with any direct inquiries or visit my web site at www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home and to view all local area homes for sale.

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A $1 investment in the S&P 500 index at the beginning of 2000, was worth 91 cents ten years later after ” The worst decade in stock market history”. What made the Lost Decade so bad wasn’t just the crash of 2008, but also the dismal years from 2000 through 2002. In order to earn an overall 7% return on stocks for the first 40 years of the 21st century, an investor would have to earn an average 10% return from now through the next three decades.

The other side of the pendulum would be the housing market. I’ll use my area of expertise ( Davis,Ca.) for the illustration. Our average home sales price in the year 2000 was $262,000. The sales price for 2010 was $496,000. Using the stock comparison for every $1 spent on your real estate investment, the return would be $1.89. There are no guarantees with any investment, but even though both markets ( housing & stocks) had declines throughout the last decade, the better investment by far was the real estate investment.

There are even more benefits now with mortgage interest rates at an all time low of 3.94%. How these rates are beneficial over the long haul are magnified by calculating the difference of just a 1% increase to 4.94%. Based on a purchase price of $400,000 with 20% down, you would pay an additional $70,000 over the life of the loan. A 2% increase and you would pay approximately $140,000 more over the loan life. Rest assured rates will go higher.  There’s no better investment than real estate, now and into the future.

” Learn the past, watch the present, and create the future”, a great quote to live by. Please visit my web site at www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, check out my other blogs and easy access to view local area homes for sale.

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Should I purchase today or should I wait until prices fall even further. It’s a great question and every situation is unique, though an underlining key point is the amount you’ll pay to borrow money. No one knows positively what the market will do, have we hit bottom or will prices drop another 5 to 10%. if your intentions are to buy now and sell in one to three years, you should be extremely worried about timing but if your looking at holding on to your home for another seven to ten years, you’ll be in great shape.

Let us assume the worse and say you buy a home now at $400,000 and the market drops another 10% or $40,000 in value, that would be considered a paper loss, you haven’t actually loss that money until you sell. Interest rates are being artificially held down with the Government, Treasury or Federal Reserve buying 70% of all mortgages that are financed today. Will these entities continue buying mortgages at that 70% clip, probably not. Interest rates have no place to go but up. The 30 year fixed rate is now at 4%, an historical low, but what happens when those rates increase to 5% or even 6%. Dan Chen at Wells Fargo was kind enough to supply a cost analysis using the $400,000 purchase price.

Purchase price-       $400,000       $400,000       $400,000

Down Payment-             20%                    20%                     20%

Loan Amount-         $320,000       $320,000        $320,000

Interest Rate-                 4%                       5%                        6%

Month/Payment-   $1,527.23       $1,717.83        $1,918.56

The difference over the life of the loan from 4% to 5% would be $68,436

The difference over the life of the loan from 4% to 6% would be an astounding $140,700

Even if the housing prices drop by 10% or $40,000, it does not come close to the monetary increase in interest rates. This scenario is also assuming that we have not hit the bottom in home prices. Home prices in Davis have decreased by about 25% since the peak in 2005, but in the last three years values have slightly decreased, which suggest we might be closer to the bottom and could start seeing appreciation in the next couple of years. The one anomaly that will surely increase will be those historically low interest rates. Please visit my web site at www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home and easy access to view all of the local area homes for sale.

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