Coldwell Banker Grass Roots Realty’s

SPRING OPEN HOUSE EVENT COMING

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Thinking About Doing a Short Sale?

FREE SHORT SALE SEMINAR

URGENT!
Don’t lose out on potential tax savings!

Tuesday • May 1st • 6:00-7:00 PM

RSVP 530-273-7293

Is your home worth less than your mortgage obligation?
Did you refinance?

If you answered “yes” to these questions, whether you are facing foreclosure or not, you should consider a short sale of your home. If you’ve been thinking about doing a short sale on your home, you might want to hurry up. The Mortgage Forgiveness Debt Relief Act is due to expire on December 31, 2012. To take advantage of this significant tax break, you necessarily have to complete a sale before this favorable law expires. Given the time a short sale may take to complete, time is running out.

In 2007 Congress passed the Mortgage Forgiveness Debt Relief Act. Upon completion of a short sale transaction, your bank is required by law to provide the IRS with a form 1099-C. This form will show the IRS the amount of debt cancelled or forgiven. Prior to 2007 the amount was considered ordinary income and taxed as such. The 2007 law provides an exception to taxation if the home is your “primary” residence, and you used the money to buy or improve your home. This applies only to primary residences, not investment properties. The bad news is that this significant law is going to expire on December 31, 2012 unless extended. That is not predictable, and you could have a lot of money at stake depending on your circumstances.

Because this process can be complicated, we are hosting a free informational seminar with our legal expert and Realtors® on Tuesday May 1st from 6:00 to 7:00 PM to provide insight and information on the short sale process and explain why it may be extremely important to act now, before this favorable tax law expires. Completing a sale in 2012 could save you tens of thousands of dollars! Please call 530-273-7293 to RSVP to this seminar as space is limited.

RSVP 273-7293

A week or so ago while I was at a listing appointment, my seller asked me, “If I were to do some upgrades to the house, would it increase the value of my home?”  I told them that upgrading a house in the attempt to get more money for their property would not be necessarily a worthwhile investment in this market.  Since our market started declining 6 years ago, many seller(s ) unfortunately did not get their investment  back on upgrades when selling their home.  I do feel that those who decided to upgrade their home with countertops, flooring, and fixtures might sell their properties a little faster than comparable properties that did not, as it has a newer, cleaner feel.

Whether or not you have done upgrades, I want to stress that the most important aspect of selling a home is to make sure that there is proper upkeep of “the bones” of the property.  Items like the siding, the roof, the electrical, the plumbing, and other major functioning items of the property need to be maintained.  If you have those items in order at the very least, you will have an advantage in selling your home than those who do not.

If I were to make any recommendations as to what to do to sell your property faster, they would be the following:

• If the paint job inside the house is getting tired, it might be time to put a fresh coat of paint on the house.
• If your carpets are dirty or stained, it is always good to get them professionally cleaned
• If you have old lighting fixtures in the house, it might be time for an upgrade
• Check the inside plumbing to make sure that there are no leaks
• Have your heating/air conditioning unit serviced if it has been a while since the last service
• Remove any excess “clutter” in the house
• One of the most important items:  Keep your kitchen and bathrooms clean during the listing period.  A dirty kitchen and bathroom can speak volumes to a buyer about the house itself.

Selling a home can be a great experience if you are prepared.  If you are thinking of listing your property for sale in the near future, speak to a REALTOR® about ways of getting your property ready for sale.  They will be able to give you get tips on how to sell your property in the fastest way possible.

Jason Dempsey is a REALTOR® with Coldwell Banker Grass Roots Realty located at 855 Sutton Way, Grass Valley.  He can be reached at 530-205-4650 or you may e-mail him at jason.dempsey@coldwellbanker.com.  You may also visit his website at http://www.dreamhomesnevadacounty.com

When a seller is getting ready to listing their property, most likely they are going to be choosing a REALTOR® from a local real estate company to assist with the sale.  What a seller needs to know is that REALTORS® and real estate companies do not always have the same ideal ology as to how to market a property.  So, it is a good idea to interview at least two different sale associates, as to how they are currently marketing the properties they have listed.  Also, during the interview process you will get an idea if you and your potential agent’s personality are going to be a fit which is important, as you will be in constant communication with the agent you choose.  The following are some questions that you should be asking during the interview process:

• How long has the REALTOR® serving their community been selling real estate?
• What types of marketing are they currently using?  Are they marketing their listings with newspaper ads, online advertising or with their personal website? 
• What type of advertising program does the REALTORS® company provide (some companies have their own marketing plan that goes alongside the sales associate’s  such as running their own website, advertising with various online real estate sites, and company newspaper inserts which will give your property even more exposure).
• How many listings does the REALTOR® currently have?  There are actually two ways of looking at answer to this question.  Some feel that if an agent has a multitude of listings then the agent may not have the time to handle the client’s listing the way they want them to.  Another theory is that if the agent has a good supply of listings then there are many people in the community who have entrusted them to sell their property, and they are successful at getting properties sold. This is especially true if they have a team of assistants working for them.  It all depends on your perspective.
• Does your REALTOR® promote your property with an open house?  Depending on the location of the property, an open house will not only give the agent an opportunity to promote your property, but also give your agent a chance to find a buyer for your property.
• Ask your REALTOR® if they have any testimonials on file that they are willing to share with you.  This will give you an idea of how respected the sales associate is in their work.  Also, you may want to ask them what kind of volunteer work that they do for the community.  It will show you how well rounded they are as an individual and it will also speak to their character. 

Taking the time to ask questions of the potential candidate should really help you determine which agent will work well with you in the sale of your property.  If you have a good rapport with your REALTOR® and you are confident in their abilities, the more likely you will have a great experience when selling your property.

Jason Dempsey is a REALTOR® with Coldwell Banker Grass Roots Realty located at 855 Sutton Way, Grass Valley.  He can be reached at 530-205-4650 or you may e-mail him at jason.dempsey@coldwellbanker.com.  You may also visit his website at http://www.dreamhomesnevadacounty.com.

As a real estate professional, it is always exciting to write or receive an offer from a buyer that is all cash with no loan. Most of the time with a cash offer, the buyer can obtain the house from the seller in a faster time period since there is no loan contingency. However, when a buyer is prepared to pay cash in a real estate transaction, it is important that they are aware of how fast they can get the cash from their banking institution. If buyers are getting their money from investments such as stocks, it can take longer than expected to get funds transferred to the title company. If you wait until the last minute to procure funding for the transaction, it can possibly delay the closing of the transaction which is never good especially if the seller has scheduled their move with a moving company.
Another item that is worth discussing is insurability of a property. When a buyer’s offer is accepted by a seller, normally you have a certain amount of days to conduct your inspections and review disclosures regarding the property. This includes insurability of the property. In some areas of Nevada County, insurance companies are no longer writing insurance policies due to the location of the property (how far away the fire department is from the subject property), and the amount of forestation that is around the property. So within your set time frame in the contract, it is important to get a hold of your insurance company so that they can send a representative out to preview the property for insurability. It may be required that work be done around the property such as trimming branches, or brushing some of the foliage in order to have a proper fire clearance so that the buyer can in-fact obtain fire insurance.
As a seller, you should be discussing with your real estate agent to see that they have checked with the buyer’s agent as to the funding of the transaction and the insurability as sometimes these important items do get overlooked. This is especially true during the inspection period where the buyer is focused on getting to know the property they are potentially purchasing. If as the seller, you know that you do not have proper fire clearances and tree branches leaning over the roof, it would be in your best interest to take care of it prior to listing your property.
If you are thinking of buying or selling real estate here in Nevada County, please contact a REALTOR as they will be there every step of the way making the sale or purchase of your property as seamless as possible.

Jason Dempsey is a REALTOR® with Coldwell Banker Grass Roots Realty located at 855 Sutton Way, Grass Valley. He can be reached at 530-205-4650 or you may e-mail him at jason.dempsey@coldwellbanker.com. You may also visit his website at http://www.dreamhomesnevadacounty.com.

Sellers: Here are some thoughts on how to keep your property looking great for potential buyers during the fall season:

Jason Dempsey is a REALTOR® with Coldwell Banker Grass Roots Realty located at 855 Sutton Way, Grass Valley. He can be reached at 530-205-4650 or you may e-mail him at jason.dempsey@coldwellbanker.com. You may also visit his website at www.dreamhomesnevadacounty.com.

As most Nevada County residents know, our market right now is much different than it was six years ago. What used to be a seller’s market years ago has definitely turned into a buyer’s market. If you are considering selling your property right now, it is critical that you do not overprice your home when putting it on the market. Most buyer(s) who are looking for property have a very good understanding of the market conditions, and will not purchase a property that is not in line with values.

When a seller contacts a REALTOR® to potentially list their property, your selected REALTOR® should come to your property to preview your home. After they review a list of the property’s features, they should put together a Current Market Analysis of your property. This is where your agent checks comparable(s) of similar properties that are currently active, pending and sold in your neighborhood to determine what they feel is a fair value of your property.
If your property is in good overall condition, and if you are competitive with your asking price, it is likely your property will sell. However, if you list your property for more than fair market value, your property will most assuredly be on the market for a greater period of time. You will be end up doing what the industry calls “chasing the market down” in your listing price. Some seller(s) feel that if the buyer(s) are truly interested in a property they are selling that they should just put an offer in even if the asking price is a little high. I want to stress that in this competitive market place, most buyers will not even look at a property if the asking price is not competitive with current market prices. Also, no amount of marketing such as listing flyers, postcards, open houses and online advertising will sell an overpriced property. So it is a good idea to review your CMA with your REALTOR®, and decide if it is the right time for you to market your property.

If you are thinking of listing your property, please consult a REALTOR®. They will not only assist you with determining the value for your property, but also create a marketing plan to help you sell your home. We are always here to help you with your real estate needs.

Jason Dempsey is a REALTOR® with Coldwell Banker Grass Roots Realty located at 855 Sutton Way, Grass Valley. He can be reached at 530-205-4650 or you may e-mail him at jason.dempsey@coldwellbanker.com. You may also visit his website at www.dreamhomesnevadacounty.com.

Here is a video perspective on whether it is a good time to market your property during the fall season.

Jason Dempsey is a REALTOR® with Coldwell Banker Grass Roots Realty located at 855 Sutton Way, Grass Valley. He can be reached at 530-205-4650 or you may e-mail him at jason.dempsey@coldwellbanker.com. You may also visit his website at www.dreamhomesnevadacounty.com.

Here is a video with a couple of tips that a first time home buyer should keep in mind before looking at property with a REALTOR for the first time….

Jason Dempsey is a REALTOR® with Coldwell Banker Grass Roots Realty located at 855 Sutton Way, Grass Valley. He can be reached at 530-205-4650 or you may e-mail him at jason.dempsey@coldwellbanker.com. You may also visit his website at www.dreamhomesnevadacounty.com.

As a follow up to my previous blog regarding first time home buying here in Nevada County, I felt it was important to discuss the area of inspections prior to completing the purchase of a property. When a buyer goes into contract with a seller, the buyer has a set number of days in which to complete their investigative period.  The investigative period includes the buyer’s right to conduct various inspections of the property.  In most cases, when purchasing a home, it is suggested that the buyer conduct all of the following relative inspections:

• Pest Inspection:  This is usually the first inspection that the buyer will conduct during their inspection period.  During the pest inspection, the chosen inspector will check the house to see if there are parts of the home that have termite damage, dry rot, or water damage from leaks in the plumbing. 
• Home Inspection:  When conducting a home inspection, the inspector will thoroughly examine the prospective house from stem to stern, looking at various areas of the home including the roof, chimney, siding, windows, plumbing, electrical, and all other major components for possible areas that need repair.
• Well Inspection:  If the property that the buyer is planning on purchasing has a well, it is recommended that a well inspection be conducted. A well inspection consists of checking the well’s systems and testing the rate of production (gallons per minute).  This test usually takes 3 to 4 hours.  At the end of the test, the well inspector will be able to determine how many gallons a minute the well is producing.  The inspector will also take a sample of the water to test for potability (to see if the water contains any harmful bacteria).  This sample will be given to a lab and the result of this test is usually available to the buyer within 2 days.
• Septic Inspection:  If the property you are purchasing has a septic system, it is recommended that the buyers conduct a septic inspection of the property.  During the inspection, the septic tank is pumped and examined.  In addition, the other systems such as the leach lines are also tested to see if they are working properly. 

Once these inspections are complete, the prospective buyer will have the results which outline the condition of both the home and the property.  They will also have a clear understanding of what repairs, if any will be needed prior to buying the home as well as those that may be needed in the future.  With that knowledge, the potential buyer will be able to make an educated decision as to whether they want to proceed with the purchase.  Although these inspections will cost the buyer a little bit of money, it will be well worth it in the end, as it will greatly reduce the amount of unforeseen costs the buyer might face when moving into their dream home.

Jason Dempsey is a REALTOR® with Coldwell Banker Grass Roots Realty located at 855 Sutton Way, Grass Valley.  He can be reached at 530-205-4650 or you may e-mail him at jason.dempsey@coldwellbanker.com.  You may also visit his website at www.dreamhomesnevadacounty.com.

In the past couple of weeks, I have been busy showing property to potential buyers here in the Nevada County area.  Upon arriving at one of the properties, I was reminded of how important it is for the seller to understand that making a good first impression is critical in generating a sale.  Curb appeal is the key to keeping a buyer interested in looking further to the inside of a home. Here are some simple things that a seller can do to the outside of their home to attract a potential buyer.

• Lawn- Mow and water regularly.
• In the yard- Cut dead, overhanging tree branches, rake leaves, remove any dead or dying vegetation in the yard.
• Flowers- Plant flowers that add color (especially at the front of the property)
• Exterior of house- Look to see if minor repairs may be needed to the siding, gutters, shingles on the roof, or the paint. 

If repairs are needed, it is highly recommended that these be made prior to the seller showing their property. Once these improvements have been made to the outside of the property, the next step is to focus on the interior of the home. 

• Clean- especially in the kitchen and bathrooms!!  Cleaning carpets and other flooring is also critical.  If there are wood floors that show a lot of wear and tear, it is suggested that the seller have them re-finished.
• De Clutter-open up the space inside your home, you may need to rearrange or possibly remove furniture in the house.
• Depersonalize the home- remove excess photos and art pieces.
• Paint – chose colors that are neutral.

Taking these steps will help insure that the home feels inviting and spacious.  This allows potential buyer(s) to imagine their furniture and other personal belongings in the home that they are looking to purchase. 

Though these ideas entail a bit of work, it will most likely pay big dividends.  Again, having a property that is show ready has the potential to get an offer faster and will increase the likelihood of the owner getting at or near their asking price.  After all, isn’t that the goal of every seller who places their home on the market?

Jason Dempsey is a REALTOR® with Coldwell Banker Grass Roots Realty located at 855 Sutton Way, Grass Valley.  He can be reached at 530-205-4650 or you may e-mail him at jason.dempsey@coldwellbanker.com.  You may also visit his website at www.dreamhomesnevadacounty.com.

I had the pleasure this last week of working at Coldwell Banker Grass Roots Realty’s Booth at the Nevada County Fair.  During my time working at the booth, there were many who stopped by the booth looking for information regarding what properties were on the market here in Nevada County, what a short sale is, and is it difficult to get a home loan right now?

However, I had one couple who approached me that inspired me to write this article. This couple shared with me that they are interested in purchasing a home for the first time, but had no idea on how to start the process.   They had been online for three weeks looking for information on how to get started, but they did not find any information out there.  So, I gave them some information on how to get started, and with a smile they were on their way.

Being a first time home buyer can be a wonderful experience, if you are prepared.  There are many steps a buyer should take in order to have a successful purchase of a new home.  Here are some tips for the first time home buyer:

• Think about what you are looking for in your first property (features you like or dislike number of bedrooms and bathrooms, etc.)
• If you are getting a loan, talk with a loan specialist to find out what your credit score is, what loan program is right for you & what loan amount you qualify for.  Knowing what you can spend makes the process more enjoyable for everyone involved.
• Connect with a Realtor® who is familiar with the area.  They will be able to help find a neighborhood and property that is right for you.
• Once you find the property that is right for you, make sure you get a home inspection by a licensed inspector.  Getting a home inspection will curtail surprises with the property down the road.
• Investigate the neighborhood you are thinking of moving to such as, what schools are nearby, what utilities are offered, etc.
• Remember that the purchase of a property has many steps, so take the time to process and do not make “hurried” decisions.

Remember your Realtor®, and your selected mortgage professional will be there for you every step of the way to make your home buying experience a success.  With property values where they are at today, along with low interest rates being currently offered, it is a fantastic time to buy a home!!

Jason Dempsey is a REALTOR® with Coldwell Banker Grass Roots Realty located at 855 Sutton Way, Grass Valley.  He can be reached at 530-205-4650 or you may e-mail him at jason.dempsey@coldwellbanker.com.  You may also visit his website at www.dreamhomesnevadacounty.com.

CLICK HERE to read a 1 page article in the Nevada County Land Trust’s Spring 2011 newsletter about Mark Weyman.

Mark Weyman

913.1200

SFGate.com

By DEREK KRAVITZ, AP Real Estate Writer

Monday, April 25, 2011

More people bought new homes in March, giving the battered industry a small lift after the worst winter for sales in almost a half-century.

New-home sales rose 11 percent last month from February to a seasonally adjusted rate of 300,000 homes, the Commerce Department said Monday. That follows three straight monthly declines. Still, the pace remains far below the 700,000 homes a year that economists view as healthy.

CLICK HERE TO READ THE FULL ARTICLE.

Mark Weyman

913.1200

Research looks at how mortgage delinquencies affect scores
How much impact does a short sale have on FICO® Scores? How about a foreclosure? Since I frequently hear these questions from clients and others, I thought I’d share new FICO research that sheds light on this very subject.

The FICO study simulated various types of mortgage delinquencies on three representative credit bureau profiles of consumers scoring 680, 720 and 780, respectively. I say “representative profiles” because we focused on consumers whose credit characteristics (e.g., utilization, delinquency history, age of file) were typical of the three score points considered. All consumers had an active currently-paid-as-agreed mortgage on file.

Results are shown below. The first chart shows the impact on the score for each stage of delinquency, and the second shows how long it takes the score to fully “recover” after the fact.

All in all, we saw:
• The magnitude of FICO® Score impact is highly dependent on the starting score.
• There’s no significant difference in score impact between short sale/deed-in-lieu/settlement and foreclosure.
• While a score may begin to improve sooner, it could take up to 7-10 years to fully recover, assuming all other obligations are paid as agreed.
• In general, the higher starting score, the longer it takes for the score to fully recover.
• Even if there’s minimal difference in score impact between moderate and severe delinquencies, there may be significant difference in time required for the score to fully recover.
This study provides good benchmarks of score impact from mortgage delinquencies. However, it is important to note that research was done only on select consumer credit profiles. Given the wide range of credit profiles that exist, results may vary beyond what’s in the charts above.

Last week the Nevada County Planning Commission held our meeting up in Truckee. The applicant was Teichert Aggregates. They currently have a plant known as the Boca Quarry. The site is appoximately one mile northeast of the Hirschdale community. They currently have an extraction area of 40 acres and the request was to expand the extraction area to 158 acres on approximately a 230 acre site. This exspansion would allow the operation to go from 100,000 to 1,000,000 tons of aggregate per year. Ten times the current level. This material is used to build roads and other construction needs.

The planning commission passed the Use permit with a 5-0 vote in favor of the expansion.

I personally feel that when companies are still investing in expanding their operations it is a positive sign that these companies feel that the economy is and will improve and the product that they have will be needed to put folks back to work.

Ruth Poulter
530-277-6960
rpoulter@coldwellbanker.com

I view

We at Coldwell Banker Grass Roots Realty have ended 2010 on a positive note.  Our year over year figures compared to 2009 show about a 16.3% increase in the number of homes/land sold.  This is good news for both our buyers and sellers.  Our average sales price did not see any improvement however the fact that we have some terrific inventory (homes/land for sale) and with interest rates still below 5%, it’s an ideal time to consider the purchase of a home.

According to the National Association of Realtors, pending home sales — which reflect contracts, not closings — rose in November. The trend over the last five months indicates a gradual recovery into 2011, said Lawrence Yun, the NAR’s chief economist, although the organization’s Pending Home Sales Index is still 5 percent below a year ago.

“In addition to exceptional affordability conditions, steady improvements in the economy are helping bring buyers into the market,” Yun said in a release. “But further gains are needed to reach normal levels of sales activity.”  Yun noted that the U.S. added 27 million people in the last decade, but the number of jobs is comparable to 2000 levels. The NAR is predicting existing-home sales to rise about 8 percent in 2011. But prices will remain essentially unchanged, up 0.6 percent.

To view all the properties for sale in our community please visit us at http://www.nevadacounty4sale.com.

HAS WELLS FARGO BECOME THE BIG DOG?

According to Bloomberg News, Wells Fargo’s 2008 purchase of Wachovia has pushed WF to the very top of mortgage lending in the entire country. Wells has just posted a record quarterly profit for the first time in more than a year: “Net income up 21 per cent.”

All of this occurred during the past two-year-plus period when many competing banks were driven out of business. NPR reports today that 157 banks were closed in 2010. Seven more just last Friday. Consolidation means that the Big Banks are getting bigger.

My current personal experience with Wells Fargo indicates that they are becoming the go-to institutional lender for properties for which financing is difficult to find elsewhere:

*Manufactured homes.

*FHA 203K Renovation Loans.

*Residential properties with unusual characteristics such as two homes on one parcel. Especially if one of the homes is manufactured.

*Properties which do not meet the secondary market purchase template of Fannie Mae & Freddie Mac — where most mortgages are sold.

My research indicates that most other Big Banks and mortgage brokers are not offering mortgages that fall outside the criteria required by the secondary market.

It is apparent that Wells Fargo is staffed and trained for loan products difficult to find through mortgage brokers, a couple of whom told me that Wells has some loan products only available on the “retail side”. In other words, mortgages originated at the bank with a bank employed loan consultant — not brokered to the bank.

WF was a quiet player in the mortgage origination world in the past. Few of our colleagues worked directly with WF. But many of our independent mortgage consultants brokered our clients’ loans to Wells Fargo.

Will Wells Fargo become a more dominant mortgage lender in the next few years? Stay tuned. Meanwhile, if you are having difficulties finding financing for an unusual property, ask me about the most competent lenders I have found at Wells Fargo.

Check in next week for another Blog on the 2011 real estate market. 

Mark Weyman

www.markweyman.com

mweyman@nccn.net

530-913-1200