SactoRealEstate

Many of today's real estate conditions and fluctuating interest rates are making potential buyers apprehensive about whether or not now is a good time to make an investment in a new home. Stories of slowing appreciation in some markets are also contributing to that apprehension. However, now is indeed a great time for buyers!!

Why right now is a good time to be a buyer:

More selection. With more and more houses in inventory, there is greater selection. Today's buyers can be very selective, taking the time to be sure they find a home with all the amenities they want.

 

Greater negotiation power. Because inventory is so high, sellers are more likely to negotiate. Today's buyers often walk away with a lower purchase price, paid closing costs, and additional incentives.

 

Less competition. A few short years ago, buyers often found themselves outbid by another buyer or found themselves in the middle of a bidding war. Today, bidding wars are rare and buyers can take their time to fully assess whether or not a house is right without having to hurry to make an offer.

 

More comparables. Higher inventories means there are more and more comparables on the market. If some of those comps are at lower prices, buyers can often use this to help them make and win a lower offer.

 

Nearly perfect homes. Today's sellers of older homes are more willing to complete any repairs a buyer may request.

These are just a few of the reasons why today's buyers may have the upper-hand in today's markets.

When faced with the possibility of foreclosure, many people are paralyzed by fear. But it's important to contact your lender as soon as possible to discuss your options. If a lender believes you are acting in good faith, it will often work with you to find an alternative payment schedule.

But your chances of getting assistance go way down after you've missed three or four payments, according to the Federal Trade Commission.

If you're having trouble making mortgage payments on your home, you may consider the following alternatives to foreclosure:

Repayment plans. If you haven't missed many payments, you can ask your loan holder to allow you to pay off the money bit by bit, adding a portion of the past due amount to your regular payments.

Reinstatement. If you're experiencing a temporary shortfall of cash, your lender may offer you a fixed amount of time to pay off the past due amount. But be aware: you'll also be responsible for covering any late fees and penalties you've incurred.

Forbearance. If you lose your job or are otherwise unable to make your monthly payments, your lender may agree to reduce or suspend your payments for an agreed upon period of time. Once your monthly payments kick back in, you will required to pay off the past due amount, in pieces or in one lump sum.

Loan modification. If your income is permanently reduced, your lender may consider changing the terms of your mortgage by reducing your interest rate, lengthening the term of the loan, or adding the past due amount to your loan balance.

For more information on foreclosure options, visit the website Housinghelpnow.org.

Q:  What should the Seller or Buyer understand about a home inspection?

A:  The inspection is between the buyer (who pays for the inspection) and the inspector. I can recommend some of the inspectors that are most often selected. It is the responsibility of the listing agent and the seller to allow the buyer and the inspector to freely inspect the property. 

If you're a buyer:
1. You can only expect the seller to correct the deficiencies that are
outlined in the home inspection paragraph of the contract.  Let's review the Transfer Disclosure Statement to see how it compares to the inspection report.
2.  This is not the time to request a "laundry list" of items, nor is it the place to try and "renegotiate" the contract price, unless there are some larger issues where the seller would prefer not to have work completed before close of escrow.

If you're a seller:
1. It doesn't matter how well maintained your home is; inspectors generally find some deficiencies, so don't take it personally.
2. Any deficiencies that are discovered will need to be disclosed to future buyers anyway, so let's deal with the inspection report issues now.
3. It is better for ALL parties to have necessary work performed by licensed contractors.

I’d like to introduce myself as the GMAC Real Estate professional in your area. As your local real estate expert, I know the many advantages this neighborhood has to offer. That’s why you chose it and why I'm building my own career here.

As part of my commitment to deliver Premier Service®, I make it my business to learn everything that could make a difference to the value of homes here – homes just like yours. If there’s any new construction, zoning changes, new schools, changes in the economy--ANYTHING that affects your home's value, my job is to know it and to share that information with anyone like you who is interested.

I hope you’ll take advantage of my specialized knowledge. Call me anytime.

GMAC Real Estate. Service You Deserve. People You Trust.® 

Recently a buyer asked me if home sellers age 55 or older were still allowed a once-in-a-lifetime tax exemption of up to $125,000 in sale profit. That is no longer true. On May 7, 1997, the home-sale tax law changed. If you live in the house for two of the five years before you sell, the IRS won't collect tax on sale profit of up to $250,000 if you're single or $500,000 if you and your spouse file a joint return.

Currently the law rewards people who sell frequently. In this current market, homeowners who sell every couple of years can benefit. Still, remember to always keep track of what you paid and what improvements you make. The improvements add to your home's basis, which you subtract from the sale price to determine your profit and whether any of it is taxable.