5 Buyer Tips for Today’s Market - Multiple Offers

If you are a buyer and have been looking to buy a home here in the Truckee/Tahoe area you may have encountered the experience of being ‘skunked’ by multiple offers, maybe even after offering higher than the asking price! We are experiencing much lower than normal inventories in the past year and increased buyer activity- with the end result that multiple buyers are making offers on the same property. How does one get the advantage in a multiple offer situation and get their offer accepted by the seller?

There is no sure way but here are 5 tips to help you win the deal:

1.       KNOW WHAT YOU CAN AFFORD. Talk to a lender and find out what you can afford. You may be surprised with the current low interest rates that buying makes more sense than renting and you may be able to afford more than you thought. There are also various loan programs available now including some with low down payment options, first time homebuyer, renovation loans and FHA/VA loans. Make sure your lender can give you a prequalification letter or preapproval letter to present when you make an offer.

2.       BE PREPARED. Know what you are looking for: price range, neighborhood, style and size. Be ready to go when a listing comes on the market to look at the property and make an offer.

3.       USE A REALTOR. Find a realtor who you can trust, has a good knowledge of the market and who can keep you notified when listings come on the market and one with great negotiating skills.

4.       TAKE IT TO GO. There are several apps for smartphones or pads: Dickson Realty, Realtor.com, Google and Trulia that can keep you up on the new listings. Your realtor can also set you up with instant email notification when new listings come on the market.

5.       MAKE YOUR OFFER COMPETITIVE. The highest price doesn’t always win the deal. Have your agent find out what the sellers want or need from the listing agent. For example, they may want a long escrow rather than a short escrow. Make your offer stand out: write a letter stating why you love the house and a little about yourselves. Be prepared to offer over asking price, ask your agent for advice.

If your offer isn’t accepted, have your agent try and put your offer in first back-up position. If the first offer falls through, you will be in place to purchase the property.

 Good luck!!

New Protections for Homeowners Facing Foreclosure

Starting in January 2014, the Consumer Financial Protection Bureau (CFPB) will issue new mortgage servicing rules to put in place ten strong protections for homeowners facing foreclosure.

Background:

Mortgage servicers collect payments and handle customer service for borrower’s loans. Because borrowers don’t choose these mortgage servicers- the lenders do- customer service has been disastrous in the past for struggling homeowners, especially during the housing crises of the last few years.

Ten New Protections:

1.     Restrict Dual Tracking- Servicers can’t start foreclosure proceedings if a borrower has applied for a loan modification or other alternative to foreclosure.

2.     Early Notice- Servicers must provide information about delinquency after 2 missed payments.

3.     Notification of Foreclosure Alternatives- Servicers must let homeowners know about their options after they have missed 2 consecutive payments.

4.     Access to Servicing Personnel- Servicers must have procedures and policies in place to help borrowers get direct, easy access to help.

5.     One Application- Servicers must provide a single application for all available options and they must be considered for all options at once.

6.     Prompt Review- Timeframes for servicers are: 5 days to notify borrower whether application is complete, 30 days to review and respond to applications.

7.     Fair Review Process- All options to prevent foreclosure (allowed by investor) must be considered and servicers cannot steer borrowers to apply for ones more favorable for the servicer or investor.

8.     No Foreclosure Sale Until All Other Alternatives Considered- Servicers must consider and respond to a borrower’s application if it is received 37 days before a scheduled foreclosure sale.

9.     No Foreclosure Sale With A Loss Mitigation Agreement- If a servicer has come to an agreement with the borrower for loss mitigation they can’t start foreclosure proceedings.

10.                         Borrower Recourse – Servicers must explain if they reject a borrower’s application and provide specifics.

 

In addition, the CFBP will put in place rules so that borrowers will not be surprised buy sudden interest rate changes or fees and use clear monthly mortgage statements. They also have addressed the need to avoid the ‘runarounds’ borrowers experienced in the past- where mortgage servicers made mistakes, processed payments too slowly or didn’t have up-to-date account information.

 

For more information check out this article: CFPB Article

2011 Weekly Real Estate Market Report

North Lake Tahoe-Truckee MLS
Week of:
May 16th to 22nd

Active Listings: The active inventory for residential and lot listings increased 6% from 1,592 the previous week to 1,681 active listings in the market; 1,165 residential properties and 515 lots and land listed for sale. As is typical in the spring, more homeowners begin to place their properties back on the market for the summer selling period.

REO-Short Sale Listings: Of the active listings, there are 159 properties listed as short sales, (9.5%) and 46 properties listed as an REO sale, (2.7%).

Months of Inventory: Based on the current inventory and sales for the previous 30-day period, the market has over 14-months of inventory available. The inventory of homes and land at today’s prices continues to favor the buyer interested in an investment property, vacation home or moving up to a larger home or better location.

Sales Summary: Year-To-Date
Total Sales 2011 Vs 2010:

Sales: For 2011, there have been 439 properties sold in the market as compared to 476 for the same period in 2010 which is an (7.8%) decrease in sales.

REO & Short Sales: Of the properties sold, 109 have been REO’s, (24.8%), and 62 have been Short Sales, (14.1%) which results in over 39% of the properties sold being a distressed property. In 2010 for the same period, there were 109 REO sales and 68 short sales or roughly 37% of the total sales.

Price Range: For the year, there have been 307 properties sold priced below $500,000, 102 properties sold between $500,000 and $1,000,000 and 30 properties sold over $1,000,000.

Median and Average Sales Prices: The median sales price for properties sold year to date is $360,000 while the average sales price is $470,985. For the same period in 2010, the median sales price was $400,000 and the average sales price was $524,100 which is an (10.0%) and (10.1%) decline in price respectively year over year.
Last Week’s Sales: For the week of May 16th a total of 23 properties sold which was up slightly from the previous week’s sales of 18 properties. Of the properties sold last week, none of the properties sold were priced over $750,000.
Pending Sales: Currently there are 184 pending sales in the market which is up 15% from the previous week. Of the pending sales, 17 are short sales and 32 are REO properties.


Market Activity Summary:

Overall sales year to date as compared to last year are down 7.8% from 476 sales in 2010 versus 439 sales in 2011. The drop off in sales has primarily occurred in the second quarter as the first quarter sales were slightly higher in 2011 than in 2010. While we would all like to see this trend reversed, there are some positive indicators on the horizon with a 15% increase in pending sales and a 6% increase in active listings in the market. Spring is underway and the summer is around the corner where more activity is anticipated.

The hottest segment of the market continues to be homes priced under $500,000 as roughly 70% or 307 properties have sold in this price range. Sales of homes priced above $1,000,000 continue to lag behind 2010 sales in this price range as 30 properties have sold year to date as compared to 47 properties last year which is a 36% drop. The mid range market sales, $500,000 to $1,000,000 are down as well from last year with 102 properties sold or 23% of the total sales as compared to 123 properties sold in 2010.
Distressed properties, REO and Short Sales represent 39% of the sales in the market which is almost identical to REO and Short sales in 2010. However, there is still considerable interest in non distressed properties as many are priced at levels that are too good to pass up.
Median sales prices have decreased by 10% to $360,000 while the average sales prices have also decreased by 10% to $524,100. While other parts of California are reporting median prices stabilizing or increasing slightly, that is not the case thus far in the Tahoe-Truckee market.

All in all, with the existing inventory levels, the lower median and average sales prices, favorable interest rates available to qualified Buyers, now may be the right time for that investment in a vacation home or investment property especially before the busy summer months.