Americans See Major Home Equity Gains

 

Some Highlights

• Today’s home price appreciation is driving equity higher throughout the country.
• If your needs are changing and you’re ready for a new home, your equity may be a great asset to power your next move.
• Now is a great time to put your equity toward a down payment on the home of your dreams

For information on what your equity looks like, visit MoveWithMel.com

Melanie Wright

REALTOR

Big Block Realty North

Cell: 707-410-6634

CA DRE 01701771

Is now the time to consider a new home?

Our current market is experiencing an uptick in home values which is great news.  The bad news is that this market value increase is being caused by low inventory which means more buyers are looking for homes than homes are available to them.  This is causing most homes on the market to receive multiple offers and most of those may be over the asking price.  Most homes are receiving 10-20 offers each with some offers coming in $50,000 or more over the asking price.  I heard the other day that one home in the $250,000 range received 52 offers!!!  Another trend we are experiencing is sellers realizing that they are in the driver’s seat and asking buyers to completely remove any appraisal contingency, even if the buyer is using financing to purchase the home.

Because of this fierce competition, many home buyers are considering purchasing a brand new home if they can qualify for the increased prices that come along with new construction.  There are more homes available and less competition in the new home communities, but you can expect the prices to be 25-30% more for a comparable resale home in many cases.

Many buyers don’t know that a real estate agent can assist them with a new home purchase (if the builder has a co-op agreement).  All buyers must take their agent with them on their first visit to the community.  It is highly recommended that buyers have their own representation if allowed.  The builders sales agent’s primary focus is the seller/builder.  Having a Realtor on your side allows you to ask questions and have someone working only for you to make the process as smooth and understandable as possible.

New home under construction

Did you know that home builders have their own contract which is different than the standard CAR contract used in a resale purchase?  If you have been writing offers on resale homes in California, be prepared for a completely different offer and verbiage when buying a new construction home.

Builder confidence is at its highest in years and many new home communities are in the works.  Seeno is releasing new homes March 2^nd in Fairfield and KB Homes has a new community in Vacaville.  Other communities are currently open as well.  Call me to take a new home tour or talk more about new homes vs. resale homes.  Make the Wright move today!

www.MoveWithMel.com

(707) 410-6634

Vacaville/Dixon area home prices are on the rise

Over the past 8-10 months the real estate market in Solano county and surrounding areas has been showing signs of life.  I wrote a post last October about buyers being subjected to limited inventory and having to make an offer quickly and many times having to offer over the list price to have a chance at getting their offer accepted.  We are seeing more and more of that currently which is causing home prices to go up month over month.

The same is happening accross the nation and in a recent USA today article they posted these statistics:

The National Association of Realtors said sales of previously occupied homes rose 2.3% from June, to a seasonally adjusted annual rate of 4.47 million. That was still the second-worst pace of the year and followed a decline in June. A 5.5 million rate is considered healthy.

The median price of homes sold rose 9.4% from a year ago — the sharpest increase since January 2006 — but the gain may be deceptively large. The Realtors association says that higher median prices are due to fewer sales of small, less-expensive homes.

The lower price ranges are definitely experiencing the most competition due to first time owner occupant buyers entering the market with record low interest rates on home loans as well as buyers paying all cash or utilizing large down payments to invest in real estate.  I am currently working with many buyers (both requiring financing or paying cash) looking to buy homes under $250,000.  All of them are experiencing competition when pursuing a home, meaning writing more than one offer to get one accepted as well as having to write over asking to be considered.  A few days ago, my buyer & I stood in line with 5 other agents/buyers to preview a home in North Vacaville priced at $200,000.

Many homes are selling in a few short days, some in hours of hitting the market.  Just to give you an idea of the local market, I pulled the following details today from BAREIS MLS.  I ran a search of homes in Solano County up to $250,000 (SFR/Condo and Farm/Ranch) and this is what I found:

• Available homes: 192
• Homes in escrow (have an accepted offer): 1163
• Homes sold in past 3 months: 1041

If you are thinking now is the time to buy, it really is a great combination of affordable prices and extremely low interest rates.  But, here is a list to help you be better prepared when you start your search:

1. Stay on top of the listings coming up and see them as soon as you can.  I offer a great service where listings come straight to your email.  Click here to request that be started for you.  Or you can do your own search as well. 
2. Assume you will have to look at many homes and write multiple offers before you get an offer accepted.
3. Don't be afraid to write an offer over the list price if you & your agent feel it can be supported by an appraisal.
4. Lastly, if you will not be paying all cash, get pre-approved for a loan before going out to look at homes.  Your offer will not be considered most of the time if you can't provide written loan pre-approval with your offer.

Are you thinking about selling your home?  Due to the competition among buyers, now is a great time to sell as more buyers on the market demand more homes available to purchase.  Short sales (you owe more than your homes current value) are selling just as fast as fair market and REO (real estate owned) homes.  Wondering what your home is worth?  Request a FREE CMA today and let me help you sell your home quickly and for TOP DOLLAR in today's market!

Above excerpt pulled from http://www.usatoday.com/money/economy/housing/story/2012-08-22/existing-home-sales-july/57205914/1

Why do I need a "Pre-Approval" letter

One of the first steps to buying a home is getting pre-approved with a lender.  It is also a good idea to use a local lender that is familiar with local lending guidelines as well as loan programs you may be able to take advantage of.  Take the steps necessary to get a letter from the lender stating you are "pre-approved" for a loan in a specific price range. It's important to have this letter before you make a contract offer to buy real estate. Once you're pre-approved, you know what price range of homes you should be looking at.  

An example of loan programs that may be available to you are ZERO down financing through USDA rural housing loans or pay as little as .5% down with the CHF Platinum loan program*.  There are also many other great loan options such as Conventional, 3.5% down FHA or ZERO down VA financing (buyer must meet VA guidelines).  Plus, there may be individual city grant/loan assistance options as well.  Visit my preferred lenders website today to get pre-approved and find out about all of the unique lending opportunities available to you!

Contact Chris Kohler of Alpine Mortgage Planning today!

www.alpinemc.com/chriskohler

916-847-5912

For more information on loan programs click below:

Platinum Loan Program

USDA Loan Program

*USDA rural housing loans have income limits and property must be in a pre-determined rural area.  Platinum Grant program has income limits and the 3% grant can be used toward your down payment or toward closing costs.

If at first you don't succeed...

Try, try again!  The real estate market in our area is showing signs of life and many homes are going into escrow quickly.  Some homes are experiencing multiple offers causing bidding wars and usually when that happens the home ends up selling for higher than list price.  If you are considering buying a home and are concerned that values may drop more, there may be cause to reconsider purchasing a home sooner than later.  Interest rates are amazing and home prices are at record lows.  Overall, home prices have been slowly increasing over the past 4 months.

I am working with roughly 8-10 active buyers in Solano county right now so I am seeing first hand what they are experiencing when they find a home they like.  Many times they write an offer at or above asking and they are still losing out to other buyers that have cash or have simply written a higher overall offer than theirs.  As the market pendulum swings the other way it's important to remember that there is still a lot of inventory on the market.  If you don't get the home you like the first time, keep looking and remember that you will find a home that works for you, even if you have to make a few compromises to get it.  And, make sure you are working with a Realtor that is as dedicated to finding you a great home as you are.  One of my buyers wrote 4 offers over a 3 month time span and after losing a few homes to other buyers (or simply having a bank reject his offer), he re-grouped and re-prioritized what he was looking for in a home and just found a wonderfully updated home which he was able to negotiate a price slightly under the list price.

Commitment and hard work are key to your home buying success!

You may also be noticing that when you call to inquire about a home you saw online, it's already in escrow.  Are you hearing that a lot lately?  If you are tired of missing out on homes that you like you need to get the listings coming to you.  Most MLS service providers (via a Realtor) can automatically update you via email when homes within your criteria hit the market.  Don't be left out!  Request your home search to be set up today.  Visit www.SolanoMoves.com

There will never be a perfect time to buy (once the bottom hits it is easy to miss) & their may never be the perfect home in your price range, but if you can be open to compromise and continuing to search for homes even if you have lost a few that you like, you will find a great home for a great price and will have a fantastic interest rate to top it off in today's real estate market.  Now truly is a fantastic time to buy a home!

10 tips to avoid being the next victim of a home robbery

Our home is our castle and we work hard to provide for our families and buy the things we want to make our house a home.  When someone feels they have the right to take your belongings and our sense of security by breaking into our home and taking whatever they want leaves you with a sense of loss, fear and hopelessness.  Here are some great tips to protect yourself & your family from being the next victim of a home invasion.

Provided by ConsumerReports.com

A home is robbed every 14.6 seconds and the average dollar loss per burglary is $2,119, according to statistics just released by the Federal Bureau of Investigation. And that's the good news because burglaries were down slightly in 2010 compared to 2009. Sure you lock your doors and windows when you're not home (you'd be surprised how many people don't). But here are ten things that you're probably doing that make your home a target, and what you should do instead:


1. Leaving your garage door open or unlocked. Once inside the garage, a burglar can use any tools you haven't locked away to break into your home, out of sight of the neighbors. Interior doors between the garage and your home often aren't as strong as exterior doors and may not have deadbolt locks.
Instead: Always close and lock the garage door. Consider getting a garage-door opener with random codes that automatically reset.

2. Hiding spare keys. Burglars know about fake rocks and leprechaun statues and will check under doormats, in mailboxes, and over doorways.
Instead: Give a spare set to a neighbor or family member.

3. Storing ladders outdoors or in unlocked sheds. Burglars can use them to reach the roof and unprotected upper floor windows.
Instead: Keep ladders under lock and key.

4. Relying on silent alarm systems. Everyone hates noisy alarms, especially burglars. Smart thieves know that it can take as long as 10 to 20 minutes for the alarm company or cops to show up after an alarm has been tripped.
Instead: Have both silent and audible alarms.

5. Letting landscaping get overgrown. Tall hedges and shrubs near the house create hiding spots for burglars who may even use overhanging branches to climb onto your roof.
Instead: Trim any bushes and trees around your home.

6. Keeping your house in the dark. Like overgrown landscaping, poor exterior lighting creates shadows in which burglars can work unobserved.
Instead: Replace burned out bulbs promptly, add lighting where needed, and consider putting fixtures on motion sensors or light sensors so that they go on automatically.

7. Not securing sliding doors. These often make tempting targets.
Instead: When you're out, put a dowel down in the channel, so that the door can't be opened wide enough for a person to get through.

8. Relying on your dog to scare away burglars. While barking my deter amateurs, serious burglars know that dogs may back away from someone wielding a weapon, or get chummy if offered a treat laced with a tranquilizer.
Instead: Make your home look occupied by using timers to turn lights, radios, and TVs on and off in random patterns.

9. Leaving "goody" boxes by the curb. Nothing screams "I just got a brand new flat-screen, stereo, or other big-ticket item" better than boxes by the curb with your garbage cans.
Instead: Break down big boxes into small pieces and bundle them together so that you can't tell what was inside.

10. Posting vacation photos on Facebook. Burglars troll social media sites looking for targets.
Instead: Wait until you get back before sharing vacation details or make sure your security settings only allow trusted "friends" to see what you're up to.


Copyrighted 2009, Consumers Union of U.S., Inc. All Rights Reserved.

What is PMI?

In the real estate world we have a lot of acronyms and they can be a little confusing.  Many of you have heard of or seen PMI and may wonder what it means or how it works.  PMI stands for Private Mortgage Insurance.  Here is a bit more detail about PMI, when you will need to have it for a home loan and when you may be able to cancel you PMI coverage.

Private Mortgage Insurance

Normally, PMI is required for any home loan purchase with less than 20% down.  Private mortgage insurance is a type of insurance that helps protect the mortgage company against losses due to foreclosure. This protection is provided by private mortgage insurance companies and allows mortgage companies to accept lower down payments than would normally be allowed.

Private mortgage insurance also enables mortgage companies to grant loans that would otherwise be considered too risky to be purchased by third party investors like the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC). The ability to sell loans to these investors is critical to maintaining mortgage market liquidity, which in turn, allows mortgage companies to continue originating new loans.

PMI vs FHA MIP

Although the insurance protection concept is similar, there are differences between private mortgage insurance and FHA mortgage insurance. FHA insurance is a government-administered mortgage insurance program that does have certain restrictions. FHA has maximum regional loan limits that are lower than those with private mortgage insurance. FHA may be more expensive, take longer to receive approval, and have fewer payment plan options. FHA insurance lasts for the life of the loan, unlike private mortgage insurance which is cancelable in most circumstances. FHA is a good choice for some borrowers with credit history problems that might need special assistance.

PMI Cancellation

Mortgage insurance can usually be canceled by the home buyer after he or she has at least 20 percent equity in the home. Borrowers should contact their servicer to find out the procedure for canceling mortgage insurance when they think they have achieved 20 percent equity. Guidelines for canceling private mortgage insurance are set by investors. Typically, investors will require an appraisal on the property. The servicer can recommend qualified local appraisers.

What's happening in Dixon?

Dixon is a wonderful small town located in Solano County close to larger cities such as Sacramento and San Francisco.  It also borders the college town of Davis which offers large commercial shopping opportunities, amazing restaurant selections and beautiful parks.

Every Saturday from 9am-1pm enjoy fresh produce and other food & craft items at the certified Farmer’s Market through the Solano County Ag Department.  The farmer's market is located at Women's Improvement Club Park on the corners of C & North 1st Streets. 

At the same time as the farmers market, take an opportunity to check out the Dixon Used Book Store which is right next to the park and library.  They have amazing deals on used books for everyone.  We have purchased many children's books for my 2 year old and they are only a dime a piece. 


August 27th is the Downtown Dixon Business Associations 9th Annual Wine & Art Stroll.  The event will start in the Women's Improvement Club Park this year and continue throughout the downtown core along North First Street and including businesses on A, B, and Jackson Street. Tickets are available through the DDBA website DowntownDixon or they can be purchased at Saturday's Farmer's Markets for $20. They will cost $25 on the day of the event. Cost is for the commemorative wine glass and a map of where the various participating wineries are pouring. Live music will be at North First and A Street throughout the evening. Adults only please.


Looking for something to do with your little ones?  Stop by the Dixon Library for preschool storytime & crafts.  Every other Wednesday at 10:00am through October.  The next session will be August 24th and you must register for the craft portion.  Contact Katrina Bergen at 707-693-2747 with questions.


Dixon has so much to offer with that small town atmosphere so many of us enjoy and feel priviledged to call home.  If you are considering buying a home in Dixon, please visit my website SolanoMoves.com today.  I also assist home buyers & sellers in Solano & Yolo counties as well as some areas of Napa & Sacramento counties.

Giving back to the community!

I have always been taught to be there for others and show compassion when people or animals are in need.  It's also a part of my nature to be a caretaker and look out for others that struggle to look out for themselves.  That's why I have always tried to reach out to the community in any way that I can. 

I was a volunteer with the VacaValley Kiwanis club for 2 years in 2007/2008.  One of those years I was the Key Club liason for Vacaville High School.  I also volunteered my time with Central Lab Rescue assisting them with adoption days and transporting labs to/from foster homes. 

My most proud accomplishment was becoming a big sister with Big Brothers Big Sisters of the North Bay.  I was matched with my "little" Brittny in April of 2008.  We were matched for 3 years and she is a very big part of my life & always will be.  I am an only child and this was something I had wanted to do since I was in high school.  I feel very grateful that BBBS was able to match me with such a wonderful young lady right here in Solano County.  Both of our lives are forever changed for the experience BBBS gave us!  If you have ever thought about becoming a "big", this program is an amazing opportunity and there are so many "littles" in need.  Please visit the BBBS Northbay website today!

In my real estate career, giving back is just as important.  After my first year or two selling homes I decided I wanted a way to make a difference by making a $50 donation in my clients name after close of escrow.  I give my clients the option from one of 3 charities that are near and dear to my heart for many reasons.  Those charities are:

-Shriner's Hospitals for Children  
-Solano County SPCA
-Susan G. Komen Foundation

I am grateful for my health & the opportunities I have been provided in my life from my family and friends.  This is my way of giving back to those that for whatever the reason may not have had those opportunities or have been dealt a bad hand over the years (four legged critters included.)  Please visit the websites above for more information about these wonderful organizations!

Be prepared & install a carbon monoxide detector in your home

Are you currently selling your home or planning to list your home in the near future?  With the new carbon monoxide detector law in effect, it is important to be proactive in installing the detector prior to entering into escrow to avoid hold ups with the loan or added costs for re-inspection.  Appraisers are now required to note if a carbon monoxide detector has been installed or not.

FYI....New HUD changes effective Immediately....please take note of the new requirements regarding Carbon Monoxide Detectors!!!

California Properties: Effective July 1, 2011, all California properties (purchases, refinances and on all loan programs) require a Carbon Monoxide Detector.

Since we do not want the borrowers to have to pay for a re-inspection fee ($150-$165) for the installation of a $45.00 detector, if the appraisers did not indicate if a detector is present, the Underwriter will condition for the borrower(s) to provide evidence of the installation of the detector (copy of the receipt for purchasing the detector and photo of the installed detector is sufficient).

We will not require a 1004D until August 1st to allow time for our AMC’s and borrowers to become compliant with this new California ordinance.

Please make sure all of your properties are equipped with a carbon monoxide Detector, and please make sure that this is pointed out to the appraiser at the time of inspection....

Information provided by Deanna Shimboff of Downtown Lending Group
http://www.downtownlendinggroup.com/
DRE LIC# 01848060

NMLS LIC # 230201