Home Ownership is Staging A Comeback

According to a recent national survey by FindLaw.com more Americans are taking an optimistic view of the housing market in today's economy. Back in 2010, 63 percent of Americans said they were less likely to buy a house because of the state of the economy. This recent survey shows that number has fallen to 30 percent.

Meanwhile, because of low housing prices and mortgage rates, the percentage of people who say that the current economic situation now makes them more likely to buy a house has risen from eight percent to 11 percent.

Forty-nine percent of people surveyed said the economy is making them neither more likely nor less likely to buy a house.

For more information, visit www.findlaw.com or Click here to read the full article: http://rismedia.com/2012-11-07/survey-shows-people-becoming-more-likely-to-participate-in-the-housing-market/

Five Rules for Buying a Foreclosure or Short Sale

Buyers are still clamoring for real estate deals in this market. Foreclosures and short sales still offer some of the best bargains, but also have a higher risk level because you are no longer dealing with the seller but with the banks. Still, more than four in five adults think foreclosures and short sales can be good deals, according to a recent survey by the American Society of Home Inspectors (ASHI).

Some analysts say the rebound has begun and home prices may rise by the end of 2012. We’re already seeing that to some degree around here.  This means now may be buyers' last chance to take advantage of affordable properties and low interest rates. But if you want to score a bargain before the housing market recovers, you'll need to follow a few rules to invest with certainty.

 

Rule 1: Position yourself for success
Before starting your search, get preapproved for a mortgage so when a good deal presents itself, you're positioned to submit a bid right away to be the first offer on the bank's desk. Work with an experienced real estate agent who can help guide you through the process.  Bidding can be complicated and time-consuming, especially when working with a home sale needing bank approval. A good agent will know how to navigate through the paperwork and red tape.

Rule 2: Do your researchAre there any undisclosed liens on the property? Is the seller behind on his property taxes? What permit records does the city have on file? This information will be critical during decision-making. Work with your agent to ensure the contract requires that any delinquent taxes, liens or assessments will be paid prior to you taking ownership of the property.

Rule 3: Always get a home inspection
84% percent of adults surveyed by ASHI said they would be more likely to purchase a distressed property after a home inspection has determined its condition. A home inspection gives you the confidence to move forward with your purchase because you'll have as much knowledge as possible about the condition of the property. An inspector will visually examine the condition of the home's roof, attic and insulation, foundation, basement and structural components, as well as interior plumbing and electrical systems. Be sure to find an ASHI-Certified Inspector (ACI) to ensure your inspector is experienced, as many states have minimal licensing requirements. To find a local ACI, use ASHI's "Find an Inspector" tool on www.ASHI.org. 

Rule 4: Budget for repairs
When looking at short sales and foreclosures, remember price is only one aspect to consider. A home will almost always require some type of repair. After receiving your inspection report, you can estimate costs associated with necessary repairs, maintenance or energy-efficient improvements.  Keep in mind that in a short sale or bank owned property there is usually no money for credits toward repairs so you actually have to figure the costs in to your bottom line.

Rule 5: Assess the neighborhood
Location should be a top consideration when purchasing real estate, and in a tough housing market, it's even more important. A home has limited worth if it's located in a less desirable neighborhood. High foreclosure rates can turn a once-desirable neighborhood into one many might likely avoid. These locations are likely to see a slower recovery than more populated or favorable areas less affected by the economy. Make location as important as price when making a purchase decision.  This is especially true here on the Monterey Peninsula.  Even the difference of a few blocks in Carmel can make a huge difference in value so always work with an agent who knows the neighborhoods.

You need to protect yourself with knowledge and expert advice to make a confident, smart decision about your largest investment, perhaps ever.

FYI, in Monterey County (minus Salinas) there are 21 bank owned and 24 short sales out of 532 listings at the present moment.  That number quite a bit down from the last few years. Let’s take a look at a new listing short sale in Carmel ..

© Patty Ross, KRXA Radio Show #235  November 2012