Christi Nelson's Lake Oroville Real Estate Blog

So your agent has shown you a bunch of  houses and you might be getting a little frustrated if you havent found the right one.  Be patient! Sometimes it takes a few showings to really fine tune what it is that you REALLY want. 

 Then, you finally find it! Let the flood of emotions and questions begin!

In my opinion, it is good idea to educate the buyer as to what the process is and what decisions we will have to be made when finally making the offer.  However there are still little things that will need to be addressed and especially if there are going to be multiple offers on the property.  Thats where you will need to really listen to what your Realtor advises you to do. They have the experience and negotiating skills that will put your offer in its strongest possible position.

Although there are many part to the purchase contract here are a couple examples of things to think about:

The  purchase price. What is the amount you really want to offer? This will usually be a number you come up with according to the sold comps your agent has provided to you. Keep in mind this is probably the toughest part. There are a couple of factors to consider when finalizing the price. Is the seller being asked to give a credit for your closing costs? Are you asking for the seller to pay for all the inspections? How long is your escrow period?  These are things that need to be considered and your agent  will help you fine tune the numbers to make it attractive to the seller.

Escrow Period- How long of an Escrow do you need? Generally the normal time period is 30-45 days. Its a good idea to check with your lender regarding the time period they may need to complete the loan process.

Inspections- What type of inspections do you want to do? What is customary? What do you want the seller to pay for and which ones will you as the buyer pay for?  Your agent will be able to advise you on what the different types of inspections you can do and the importance of them. Your lender may also require certain inspections depending on the type of loan you have.

Here is an example of what a Califonia Purchase contract will look like.

Interest rates are low and prices have come down. Some buyers have decided that it is a good time to buy, even if it is a little while before the Oroville Real Estate Market fully stabilizes.

Buyers who have a house to sell face a more complicated situation than they did when they bought their first home. They may not be able to afford to buy a new house before selling the old one. And, it may be more difficult to find a home to buy because many sellers are not selling now due to current market conditions.

Despite complications, homeowners who want to trade up in a down market can benefit financially. They may sell their current home for less than it might have sold for a few years ago, but they also could pay a lot to less for the replacement home.

Let’s say your current home that was worth $300,000 two years ago is now worth $200,000, or 20 percent less. Even though you would sell for $100,000 less today, if you buy a $1 million house that two years ago was worth $1.25 million, or 20 percent more, you come out $150,000 ahead.

Interest rates are still at an all time low! Even edging up this week, they are 4.81 on a 30-year fixed. On a $200,000 mortgage the principle and interest payment at todays average rate would be about $1049, compared to $1,199 a year ago. A savings of $150.00 per month.

Combine those two major factors and add the $8000 tax credit to first time buyer and the $6500 credit to move up buyers and you have a win win situatuion!

Dont become the bait in this market!

Any property description using “REO”, “Foreclosure”, “Bank Owned”  etc., is drawing a crowd of buyers, especially first time buyers trying to take advantage of the current tax credit due to expire Nov 30^th.  If the property is in decent condition, there will be offers and multiple offers, at that. 

I have had some observations about the  Oroville Real Estate foreclosure market. A number of lenders have hit on a marketing strategy to create a buying frenzy which guarantees an almost instant sale. The properties are marketed well below market value, usually in the price range of the first time buyers and they will not accept any offers before one week on the market. 

A number of buyers may honestly believe that they can make a lower or even close to asking price offer. The result is buyers being disappointed and upset that their offer wasn’t accepted. A number of them believe their offer has a chance of being accepted. In reality, they not only have zero chance of getting their offer accepted, but in the majority of cases, they will not even get a counter-offer. 

Bargains are available and buyers can find themselves to be one of the lucky ones by selecting an experienced agent familiar with the areas in which they  A good agent will be able to advise you on writing a strong offer and which properties are worth the work and which ones to stay away from. Follow that advice! Oroville Home sales

Recently I went to the Realty World NCA event  where I was introduced to the team at Realty World Financial Services, Inc. I learned of some great programs they have to help homeowners in financial distress.

It is important to remember that we want to do everything we can to help homeowners KEEP their homes. Many homeowners are fighting like crazy to stay in their home and barley making it. Homeowners that are current on their payment but in trouble may find this a perfect solution. With all the different talk of scams and failure to find anyone to do a loan modification, I was pleased to hear that they actually were helping homeowners.

Their goal is to educate you on all aspects of the Short-Payoff-Refinance and Modification so that you are 100% aware of exactly how to obtain the approval that you deserve.
 
Unlike a Loan Modification, where you are modifying your existing mortgage to more  favorable terms, due to some form of ‘hardship’,  the Short-Payoff-Refinance is qualifying for a new FHA 30yr Fixed Loan or “New Money” as they say in the mortgage business, and paying off your existing lender for 90 to 97% of ‘Fair Market Value’ of the home.
 
With a Short-Pay, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor but more importantly the lender.  This negotiation is all done through communication with a bank’s internal department’s.  Once the Discounted Payoff Demand has been obtained by the current note holder, the refinance is completed and the proceeds of the refinance to the original lender is in full satisfaction of the 90 to 97% agreed upon debt.  In such instances, the lender would have the right to approve or disapprove of a proposed loan balance. These circumstances are usually related to the current real estate market and the borrowers’ financial situation. .

They are also very well equipped to perform Loan Modifications by using a streamlined approach using HTI (Home to Income) and NPV (Net Present Value) tools to assist borrowers.

If you are a struggling homeowner, please contact me at mail@ChristiNelson.com so that I can put you in contact with a loan officer.

I have had many people ask me ”are things are starting to pick up in our oroville market”. So I have decided to post our weekly stats for you to come and look at for yourself. Oroville market is its own seperate market. We have not seen quite the devestation some areas have like Sacramento. For this we are lucky.  When the market was good we were seeing people from out of the area come to purchase property and vacant land. However, without those buyers we are relying on mostly buyers from our area or relocation buyers. As we begin to get more lending options available ,like the tax credit, we will see an increase in sales which we are starting to see right now. It still seems to vary from week to week. Mortgage applications slow with each small raise in the interest rates. So until buyers understand that 5.38% is fantastic they will probably be buying later  at 6-7% maybe more..!  When was the last time we had low interst rates AND property values at the same time? As I said before NOW is the time to buy!

I will be adding a chart showing the comparison of 2007/2008 and 2009 up to the first quarter to get you caught up. Come back for weekly updates on how our market is doing!