Cabins to Castles

Is NOW the time to buy or sell Real Estate?

Pierce County Real Estate Update — Fri, 01 Oct 2010 10:05:00 GMT

A better question might be, is the Real Estate market really on the rebound?

In this Broker's opinion.... yes! And no. I'm seeing that prices have stabilized a bit in Tacoma and Pierce County as a whole. But the market seems to have slowed a bit and the inventory is definitely robust. Some of that may be due to a natural slowdown in real estate once school gets underway but still... buyers have a lot to choose from and sellers can count on a competitive price.

That means, if you're waiting for a bargain....BUY NOW! The prices really aren't going to get better. The bargains are out there and in most cases sellers can and will negotiate with you for closing costs. Not to mention that the inventory looks solid and if you've got a great Realtor to help you find that dream home or great investment, don't wait! Interest rates are still low and there is a lending program for just about anyone. Buy, buy buy!

If you're thinking of selling, now would be a good time to start that process. Talk to a good Real Estate Broker and get advice on any small improvements or clean-up projects needed to have your property in the best condition possible. Be strategic about when you hit the market and at what price and be willing to discuss smart, logical price reductions at the start instead of waiting until the market has passed you by. You could be on the market, sold and closed by Spring.

Bottom line.... get moving! The deals and the buyers are out there make it work for YOU.

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Let's Talk About Second Mortgages

Pierce County Real Estate Update — Wed, 15 Sep 2010 08:23:00 GMT

When is a mortgage not a mortgage?

When it's a Home Equity Line of Credit. On the street we call it a HELOC (hee-lock) and it's actually similar to a credit card in the way it's processed and collected. The rub is.... a HELOC will not be forgiven in the case of foreclosure or short sale.

The fact that your home and the equity you have were used as collateral to secure the HELOC make the difference. The HELOC does, in fact, show as a lien on your home and that's where the second mortgage nick-name comes in. As with any lien, the home cannot be sold, transferred or taken without paying off or re- the loan. All of this combines to make the situation very confusing and can leave homeowners feeling desperate.

In the case of a short sale, the bank that holds your mortgage can, and most times will, approve a short sale and a small sum will be offered to the bank that holds the HELOC (sometimes the very same bank) but it is seldom enough to satisfy the loan. In this case you may be required to agree to continue paying part of the HELOC. If you can't or won't agree to continue payments the short sale will not be approved and the home will most likely go to foreclosure and you will STILL have to pay the HELOC.

There is nothing pretty about this scenario but educating yourself about the process and having an experienced team of professionals behind will make a BIG difference. Your Real Estate team will be invaluable as will the advice of a tax professional and attorney.

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A Short Sale Is NEVER Just A Short Sale

Pierce County Real Estate Update — Tue, 08 Sep 2009 15:23:00 GMT

This article, a list of myths and truths, is meant for REALTORS and for homeowners that may be considering a short sale - selling your home for less than what is owed to the lienholder(s).

MYTH: Short sales are all the same.

TRUTH: Each one is different from the next. Here are a list of factors that vary in every case: The lienholder, number of lienholders, when the home was purchased, the type of loan, the borrowers hardship, employment status, use of the home, condition and value of the home, homeowners current income AND their plan, the commitment level of the homeowner to a favorable conclusion, bankruptcy and many more. ...(Continued)...

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The value of a good Real Estate Professional!

Pierce County Real Estate Update — Tue, 04 Aug 2009 14:05:00 GMT

Right now, with all of the Short Sales, Bank Owned (REO) properties and the extensive bargain shopping you need a Real Estate Professional who can handle any and all situations. Short Sales can benefit buyers and sellers in that the property actually sells for less than is owed and an REO property is usually priced below market value making them a bargain. Both Short Sales and REO Sales come with their own list of challenges for the client and the Real Estate Professional they choose to work with.

Most Real Estate Agents can handle a traditional real estate transaction of buying or selling a property that is priced right and the loan is approved. Seems easy, huh? Even in those circumstances things can go wrong.... and often do.

Add a seller who is in a situation requiring that you Short Sale your home. What if you're a buyer who is shopping for, or can only qualify for, properties that are well below the average market price and will only be found if a Short Sale or REO is considered?

Now, who will help you? Who can get you through all of this with the least amount of hair pulling?

A good Real Estate Professional! One who is smart enough to re-train themselves in the market as it changes! One who is not afraid to ask questions and never too naive to think that everyone else in the transaction is doing the same. They're out there and not too hard to find!

Try asking questions like....

Have you handled many Short Sales?
Have you shopped for (or sold) many properties in this price range?
How long do you feel it should take us to sell (or find) this home?
How will we communicate during this process?
What will you need from me to make this a success?

AND MOST IMPORTANTLY....

Who can you get help from if things get tricky?

In this varied market place, EVERYONE needs help from a Professional. Finding the right one will make the process much easier for you.

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Short Sale...everybody's saying it!

Pierce County Real Estate Update — Sun, 26 Jul 2009 15:47:00 GMT

Whether it's a cabin or a castle, short sales happen. A short sale occurs when the debt owed on the property is larger than the amount that can be made when the property is sold.

Short sales can be the result of a down turn in the local real estate market, making the property worth less than what the owner owes. They can also occur when an owner has a change in their circumstances and fall far behind on the mortgage payments, creating too large of a debt to be re-payed through the sale of the property.

As the owner this is a tough time, but a short sale can be easier to negotiate than you imagine and it's much kinder to your future credit than a foreclosure or bankruptcy. It can take time and you must prove you qualify for the short sale option. There can be tax liabilities but most families can qualify for a one time exemption. A short sale is the simplest and most logical choice for many sellers today!

As a buyer, a short sale is a chance to buy a home at about 15%-20% less than its current market value. That's called instant equity! It does take more time to close a short sale purchase. As much as 45-90 days longer than the norm. This occurs because the bank, investor or financial institution involved will be losing money and they must be the ones that make the final approval of the sale. In most cases the rest of the process is no different than buying through a traditional contract.

The good news is that there are professionals out there who can and will help. Answers to your questions and advice on your choices is available. The first step is consulting a real estate professional, we can listen to your current situation and needs and advise on the next step in process.

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