Christi Nelson's Lake Oroville Real Estate Blog

Did you know the  City of Oroville currently offers a program to assist senior and disabled homeowners who don’t have financial resources to complete minor and emergency property repairs?

 This is really great for those that just that really need that  repair but have been putting it off due to financial reasons!

Basic Eligibility Requirements

• Applicant must own and occupy their home or mobile home
• Applicant must be a senior citizen, 65+ years of age or physically disabled
• Applicant must live within the Oroville City limits

Eligible Repairs

The program was designed to help senior and disabled persons obtain assistance with small but important health and safety repairs. Eligible repairs include, but are not limited to such jobs as:

• Plumbing: Leaking, broken, non-operating sinks, toilets, faucets, garbage disposals and water heaters.
• Small Electrical Hazards: Lights, outlets, and switches.
• Weatherization: Weather stripping, caulking around doors and windows.
• Maintenance Repairs: Evaporative coolers, furnaces, roofing, gutters, steps, railings and hazardous trees.
• Correcting Trip Hazards.
• Installation of Grab bars
• Smoke Detector Repair or Replacement.
• Health and Safety Hazards.

If you are in need of a program like this contact the City of Oroville

Phone: 530.538.2495
Fax: 530.538.2539
Email: housing@cityoforoville.org

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!

 First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers has been extended until April 30, 2010. The  improvment to this? There is now a credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010. Home buyers can still take advantage of the prices in the Oroville, Chico and Paradise Real Estate Markets as well as take advantage ofgreat interest rates!

This is a great  “MOVE UP” market. If you have been thinnking about upgrading to a larger home..there is a credit for you, here is your chance!

Who Qualifies for the Extended Credit? 

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase. 

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase. 

Can a Buyer Still Qualify If He/She Closes After April 30, 2010 

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

So last night about 3am, there was this terrible scratching on the door in my back room.

It sounded as if something was trying to rip through the wood door to get in. I was sure it was a coyote as we had just had an ordeal with them 2 nights previous. To my surprise however, that was not the case at all.

I open the kitchen door to look in the back room and there is a full sized “Peppy le Peeeww”! Oh yeah, you read it right!!!

I looked at him and he at me and we both froze for a second before I slammed it shut, saying “Oh *#%@”

At this point I realize he got into the house through the cat door to eat the cat food and can’t figure out how to get back out…!!! OMG

The door is locked, he’s in front of it and the door to my boy’s room is wide open… So I wait. Thinking I hear him leave, I peak again…he’s nowhere, ok I am guessing he got out…but noooooo…

I look in the back room, no sign of him, so I open the door just in case. I decide to check on the boys, turning on their light just a bit, he runs from under the desk to under my son’s bed!!!

I can’t leave them in there with him, what if they get up? I wont be pretty. So I turn the light up a bit more and say their names in what must have been the “freaked mom voice” I tell them a skunk just snuck into their room and to slowly get to the edge of the bed and then run to me…and now I know they will follow directions in an emergency situation…without question they both did what I asked.

Peppy eventually found his way back out, luckily without scenting the place. It could have been a disaster, we were very lucky!!!

Pests getting in the home can be a real problem. Especially if you have pets and the food is available. There are many helpful articles on the internet about the damage pests such as skunks, mice and even squirrels can cause. Here is one article on how to prevent and invasion into your home such as mine.

Here is just one I thought was helpful. It identifies different types of pests and how to keep your home free of them. Read article...

Oroville Homes for sale

So in our office, we are witnessing many things going on for all the “First-time Homebuyers”. Especially if trying to take advantage of the tax credit, as they are under a time line.  Many of them had no idea what the process of buying a house was. Like talking to a lender, getting pre qualified, learning about the different loan types, learning what properties they would be looking for etc.. they did not speak to a realtor first .You should always consult a realtor, they will educate and guide you through the buying process. Oroville Real Estate

Several buyers went out and traded that old “Clunker” in to get a new car! Don’t they always smell so good!  Then they find out they qualified for the home but cant now because of the “New Car” payment or they are qualified for less..its sad really.  Most would have waited on the car, if they had only known what it was going to do to their dream of home ownership. Oroville Homes

 Majority of the first time buyers also qualifying for the same properties as all the other first time buyers. Majority are properties that are in foreclosure, short sales or are in such bad shape they don’t qualify for the loan. Typically first time buyers are FHA loans. These lower priced properties are getting offers same day and sometimes multiple offers, which multiple is never fun with the banks!

So I thought I would put a few key notes in here I thought might help.  I guess its information and advice.

 It is still a GREAT time to buy! Interest rates are still great and property prices are down. The Magic Combination.

The Tax Credit

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers. You should consult you tax advisor.

Who Qualifies?

First-time home buyers who purchase a home between January 1, 2009 and December 1, 2009. To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase. You must have closed escrow by midnight November 30th.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale. Consult your  tax advisor on this if you do decide to sell.

Short Sales

These can be very attractive. The sellers have taken care of the home , they are usually in good condition and the price is right!.Perfect! However, it is critical that buyers understand the time frames for short sales before they make an offer. Although response times vary from lender to lender, it can take two weeks or as long as 60 days to receive an approval of a short sale from a lender. With the tax credit time frame running out, it could be a real gamble to get it closed on time. 

Foreclosures / Bank Owned

These are usually priced well for the first time buyers. A foreclosure can be that perfect price and they usually close within a realistic time frame. These however need to be checked carefully as they may need repairs that the appraiser will make note of. These will need to be repaired for an FHA loan. FHA loans are stricter with the condition of the property.  Banks may do repairs but most of the time they only care about their bottom line, which didn’t include repairs..

Most properties under $150,000, get ALOT of activity. As soon as they come on the market, there are multiple agents and buyers looking. If you like it ,dont wait. It will either end up with multiple offers and could price you out or it will be gone!

I guess most importantly…Do Not buy ANYTHING during your escrow process. It can change your credit score and/or you debt to income and cause you to lose your loan and so the house.

Thought we could use some positive news! 

The National Association of Realtors®   reported for the first time in five years, existing-home sales have increased for four months in a row. The monthly sales gain was the largest on record for the total existing-home sales series dating back to 1999. read more..

On that note, the tax credit is due to run out soon (Nov 30th) so if you are on the fence, act now!

You should be actively looking for a home at this point. Escrow process is averaging 45 days in our oroville market. You would need to have your property going into the escrow process around mid September, as you need to give yourself a little buffer for the whole loan process. This is assuming you are not trying to purchase a foreclosure or a short sale, as they are typically taking much longer just to get an accepted offer. The Oroville market is experiencing multiple offers on many of the lower priced properties. If your offer isnt accepted, this puts you back on the search for a new home!

So take advantage of this great opportunity!

Here is the sales summary for the first quarter Jan-Mar of 2009