Santa Cruz County Real Estate

It's Prime Time to Buy A Home!

2011-05-09T14:53:00.001-07:00

I just read a great ebook called "7 Reasons Why now is a Great Time to Buy a Home!" it's filled with exciting information to help buyers seize the incredible market opportunities available to them right now. Over the next few weeks, I'll be sharing key excerpts from this ebook with you in this blog. For a free copy of the ebook, contact me and I'll send it your way.

Losing your house because of unpaid HOA fees?

2010-10-04T14:26:00.000-07:00

People Are Losing Their Homes Because of Disputes With Their Homeowners' Associations
What’s the latest reason people are losing their homes? It’s not just bankruptcies and late mortgage payments. It’s disputes with their Homeowners’ Associations. According to ABC News, over 80 million people in North America live in “self-governing” communities, run by boards that decide everything from the color of paint on houses, to trash pickups, to street parking, and collect fees to minimize crime, repair roads, and take care of pools, gardens and other public areas. Homeowners who break the rules – or don’t pay their fees – are fined and forced to bring their property into compliance. Fines can easily snowball to six figures, leading to foreclosures, violence, and homeowners jailed for small infractions.
For example, an ailing Florida grandfather couldn’t pay his mortgage and afford to re-sod his lawn. So, he let it die. He was thrown in jail until neighbors pitched in to replace his grass. A North Carolina man’s fines for unpaid dues and an illegal white picket fence reached nearly $25,000. A few days before he was scheduled to be evicted for the unpaid fines, he burned his house to the ground – while he was inside it.
So, how can you protect yourself? If you’re buying in a regulated community, read the deed restrictions and Homeowners Association requirements and penalties before you close escrow. If you already live there, re-read the paperwork so you know where you stand. Finally, don’t ignore any notices about late payments or violations, which can lead to a lien and even foreclosure. In fact, go out of your way communicate with your board – so you can work out a solution that works for everybody.
Moral of this story: Even if you can't pay the mortgage, if you want to do a short sale to save your credit...keep up to date on your HOA fees. Unpaid HOA fees can wreck or break a sale.

2010-09-03T11:58:00.000-07:00

5 Reasons Homeownership Is Better Than Renting
The seemingly endless run of bad housing news is discouraging some potential home buyers from considering a purchase. But the truth is that the advantages of homeownership have very little to do with investment gains. The best things about owning a home have a lot more to do with personal comfort and satisfaction.Here are five of them:·
1. Be your own landlord. The bank can only kick you out if you don’t pay; a landlord can be much less dependable – deciding to sell the property or choosing to live there themselves.·
2. Paying the principal is forced savings. Yes, it’s possible that home prices will fall further. It is also possible that your 401(k) will lose value. But over the long haul, both are likely to enjoy modest gains in value.·
3. Fixed-rate mortgages never rise – and eventually you pay them off. With mortgage rates at record lows, people who buy now are locking in real bargains.·
4. Good schools. Family-sized rentals are harder to come by in areas with excellent public schools.·
5. Spacious properties in pleasant neighborhoods. Sizable homes in attractive communities are almost always owned – not rented.
Source: The New York Times, Ron Lieber (08/27/2010)

Stage to Sell Your Home Fast- Some thrifty tips

2010-05-19T10:23:00.000-07:00

With today's market turnaround, more inventory is coming on the market, the median sales price is starting to rise and multiple offers are coming in in certain price ranges, so it's important to not only price your home right but to make it appealing on the first visit!

From RISMEDIA:
May 19, 2010--Surveys show that staging pays off and often helps to sell a home fast. But don't spend thousands to make a big impact. Put the home center stage with these thrifty tips:
1. First Impressions Count. Roll out the red carpet for potential home buyers by sprucing up your entryways, especially the one on a lockbox. Welcome mats, planters filled with seasonal flowers, and clutter-free foyers and hallways set the stage.

2. Sell the Space, Not Your Stuff. Remember that the goal of a successful showing is to make a prospect feel at home – like it's theirs, not yours. Put away your extensive personal collections. Less is more: open up your space so prospects can actually see what they're buying.

3. Paint and Elbow Grease Work Wonders. Fresh paint and a thorough cleaning will give you the greatest “bang for your buck”. Remember that neutral walls are your best bet when staging a home for sale. Lowe's has all the right shades to make your home more inviting. Get started with Lowe's online Paint Visualizer.

4. Go with the Flow. Arrange furniture for easy traffic flow. Consider placing a major piece of furniture at an angle, such as a couch or desk. Angles add interest and can create a more open feel.

5. See the Light. Move lamps to dark corners and arrange window treatments so that natural light floods your rooms. Brighter is better, and your rooms will look larger. Visit Lowe's extensive lighting section for the latest in fashionable, functional lighting.

6. Go Green. Live plants can add decorative flair, without spending a bundle. Plants and cut flowers have a way of warming up a room.

7. Don't Forget the Outdoors. If you have a porch, deck or patio, clean the furniture and replace worn cushions. Give your deck a fresh finish with a new stain and seal.

8. Make the Kitchen Sparkle. Declutter the countertops by removing toasters, food processors, and other non-decorative items. If you have a breakfast table or counter, put out a couple of table settings complete with place mats, napkins, and dinnerware.

9. Warm Up an Empty Home. If your home is vacant, consider renting furniture for key rooms, but don't go overboard. Ask your real estate professional for advice, based on your home's unique features and selling points.These home staging tips are a great place to start as you gather ideas for your open house.

(Jennifer and Marion have their own inventory of staging materials- make an appointment for staging ideas and ways to sell your home fast: jennifer@jenniferlistings.com or (831)254-8654, text OK)

How Many Credit Cards is Too Many?

2010-01-07T13:44:00.000-08:00

While one in seven Americans has at least 10 credit cards, the average is four, according to a report from Experian. The national average interest rate on credit cards as of November 2009 is 12.64%.

So what is the correct number of credit cards a consumer should have to most effectively manage and optimize their overall credit profile? The answer is not simple; it’s not the number of cards you have, but how you manage them.
TIP: utilize your credit card each month but do not allow the balance to exceed more than about 30% of your credit line.
Always pay at least the minimum payment but pay extra when possible and pay ON TIME.

By doing this your credit card utilization and payment history provides a strong contribution to your credit score and risk profile, which should help you obtain lower interest rates on new credit in the future.

Beware: Although you make your payment on time every month, if you are regularly “maxing out” your credit card limit, you are actually negatively impacting your credit score and profile. Your overall credit profile would be better served spreading the expense over two or three cards and maintaining the card limits at or below 30%.

The reality is that you can have excellent credit with one well-managed credit card with a positive established history. The primary variable is how you manage your credit versus how much credit you have access to use. The general makeup of a credit score is based: 30% on payment history, 35% on the amounts you owe compared to available credit, 15% on the length of your credit history, 10% on newly established credit and, finally, 10% on the types of credit you use.
Having the right balance of credit cards and overall access to credit can be extremely helpful. Additionally, well-managed credit cards will assist you in establishing a stronger credit profile and better credit scores that can potentially lead to lower interest rates and better terms when applying for new home loans, auto loans, credit cards or even insurance.
Think carefully about adding new credit cards. Do you need the extra card to manage your credit profile better or are you exposing yourself to a greater and potentially unmanageable debt situation? Whatever the reason, it’s important to know that when you add a new credit card, your credit score will likely suffer a temporary drop until you have established a payment history with that card.
Finally, don’t make the mistake of canceling your older credit cards, even if they have higher interest rates than ones you may get on newer cards. Remember, 30% of your credit score is based on payment history and 15% on the length of your credit history. Keep that older, well-established card for that reason and use it once in a while on smaller purchases.

TRADE UP! 5 Reasons why this is the BEST market to upgrade!

2009-12-15T10:42:00.000-08:00

Have you thought about getting that bigger, better house in a better neighborhood?
NOW IS THE TIME!
Whether you need more space, want to upgrade your location, or for any other reason, the current real estate market presents a unique opportunity to capitalize by trading up!

5 reasons why this is the best market to trade up!

1. You will make money NOW on the trade!
Here's how this works. You currently own a condo that was worth $1,000,000 three years ago, and now it's worth $700,000 (that's right, it's gone down 30%!). You may be thinking, I've lost $300,000, right? Wrong!
What you do is go out and sell your condo and purchase the home of your dreams for $1,400,000. That house, three years ago, was worth $2,000,000 and you probably couldn't have afforded it. By buying it now, what you've just done is bought your new home at a $600,000 discount! Just like that, on the trade, you've made $300,000! This doesn't even take into account the money you'll save on property taxes because you're paying taxes on a $1.4M house, and not on a $2M house.
2. ... AND you will make money LATER when you sell your new home!
OK you've listened to my advice, bought that new home of your dreams and traded up. YES! Fast forward five years and the real estate market has gone up 20%. Let's take a look at what has happened. Your old condo is now worth $840,000, for a $140K gain over today's value. Your new home is worth $1,680,000, or $280,000 more than when you bought it today. Just like that, you've made an extra $140,000 on the trade!
3. You can likely buy a house you otherwise could not have afforded, and may not be able to afford again!
Going back to my example above, you probably couldn't have afforded that $2M house three years ago when you bought your condo. You also may not be able to afford it again in 3 - 5 years when the market rebounds. If you've been dreaming about a bigger home or one in a nicer area, now is really the time to capitalize.
4. It's much easier to trade up in a down market than in an escalating market!
I've had clients say that they will trade up when the market "goes back up." Let's take a close look at that. Let's say that 5 years from now, the market is back up 20% from today's values. You then sell your condo for $840,000 and your dream home is now worth $1,680,000. You've gained $140K on your condo (from today's values) BUT your dream home is now worth $280,000 more! That means that, by waiting, you've now spent an extra $140K to buy that house!
5. You'll probably get a better house by trading up in a down market!
The current market presents some very unique opportunities. In most areas, inventory is pretty high and buyers have a lot of great choices. By shopping in this market, you can really get the home of your dreams and take your pick of all the inventory available. In most cases, you can get a good deal on a great property in a terrific area.
The bottom line is that if you can afford it, now is a terrific time to upgrade! Interest rates remain at historic lows and there is plenty of financing available.

Why Is Now A Great Time To Buy Real Estate?

2009-11-05T10:43:00.000-08:00

Let’s discuss two California families and the real estate market. We’ll call them Able and Baker.

Able sold a home at the top of the real estate market for $500,000 and bought a new home for $800,000, paying 10% down and getting a new adjustable rate mortgage for the remainder. Baker stayed in their existing $500,000 home, and we all applauded Able for selling at the top of the market.

There are many different opinions on the amount of the drop in prices but we can all agree prices have dropped, more in some areas than others. For our example, we will use a simplified 35% drop on all homes.

Today, Able is in their home with a loan still around $720,000 and can’t refinance because their value is $520,000. Their property taxes are still hovering around $8,000 per year. This is called being underwater, and they could be facing tax problems because of forgiveness of debt, etc.

Baker decides to sell today and finally move up to a bigger home. Their home has dropped in value and they think they have suffered a loss of $175,000 as the home is worth only $325,000. They sell and buy the former $800,000 home for $520,000. They get a loan for $468,000 at the current rate of under 5% and their taxes will be about $5,200 per year.

They might also qualify for a $8,000 tax credit and other inducements in today’s market. Also, there could be appreciation as the market recovers and would you rather have appreciation start now on a $325,000 home or a $520,000 home? Plus they’re living in their move-up home and the family is happy. So, who is better off now. Able or Baker?

Remember the old real estate advantage. Sell when everyone is greedy and buy when everyone is needy. Yes, I know the really smart thing to do would have been to sell three years ago and rent until now. Did many people do that? I don’t think so. I sure didn’t.

We can go back in time only in the movies and it’s too late for could’ve, should’ve or would’ve. Hey, we all misread the economy then so let’s move now and not misread it again. If you want to move up to a better home and can afford it, consider doing it now. Remember the $8,000 tax credit sunsets December 1st (but may be extended until June 2010). So, call your real estate agents and say hello. It just might be the best call you ever make.

By Duane Gomer

10 Homebuying Tips for Short Sales

2009-10-27T11:32:00.000-07:00

Top 10 Home Buying Tips For Short Sales - Guide to Understanding Short Sale Foreclosure Real Estate
Published on Friday, September 25, 2009, by Todd Foust

Modern homebuyers will inevitably come across one or more properties currently classified as a short sale. A short sale is an attempt by the current owner to sell a home in lieu of the bank taking it back through foreclosure proceedings, thus partially salvaging their credit rating and lifting the burden of heavy mortgage debt.
The entire short sale process hinges on the hope that the bank will take a loss now, approve the sale, and eliminate the costly process of foreclosing, clearing, and reselling a home. Obviously, this is a big hope on behalf of prospective homebuyers as well and they need to understand some things in order to lessen the chance for disappointment of unapproved short sales. This is what they should know:
1) Price is usually set by the agent & seller, not bank - The agent and seller often create a very low asking price in order to attract buyers. The bank is normally unaware of the asking price; however, the bank has the final say in what an acceptable offer will be. Since the bank has the power to ultimately accept or deny offers, their lack of price awareness often leads to the process taking longer than anticipated. The bottom line is that the buyer needs to remain positive and patient throughout the entire process, sometimes even for months.
2) Loans owned by 1 bank usually better than 2 - If the seller has loans owned by two different banks it is a lot more difficult to approve the short sale. This is something the agent or the buyer cannot control; it simply depends on the willingness of the bank or banks involved. While the reasons are beyond the scope of this guide, buyers should know that when the seller only has loan(s) with one bank the short sale often becomes more buyer-friendly. A savvy Realtor can let you know this type of information.
3) Lowball offers get slow or no response - Remember that the bank is typically unaware of the pricing during a short sale. When lowball offers stream into the bank they are often scoffed at and rejected, giving the prospected buyers little or no feedback. Surprisingly, it may also take painstakingly long to hear back even on good offers due to the high volume of transactions lenders are inundated with these days.
4) Agent must check comparables before submitting offer - The agent must be sure to check recent home sales in the area to give buyers a better idea of the properties that are selling. This will give the agent and the seller appropriate grounds for an asking price that will be more likely to be approved by the bank. Checking comparables will also give the buyer a better knowledge of what price homes in the neighborhood are selling for and ultimately make them a more informed homebuyer.
5) Don't hang your hat on the property - Short sales aren't necessarily "short." It can sometimes be a very long process. Don't get your hopes up for just one property, keep your options open and continue to actively look at multiple properties. Buyers must remain optimistic, the right property will come along. In most areas it is completely legal and risk-free to have multiple offers out at any given time with the proper contingencies.
6) Sellers with other properties or too strong of financials may not qualify for short sale and/or may be asked to pay the difference - Sellers that own more than a handful of properties or have an extremely large net worth will probably not be eligible for short sale. In some cases the seller will be asked to pay the difference of the sale. The seller might even need to sign a promissory note stating that they will pay back all or most of the debt. This has virtually no effect on the buyer as long as the seller cooperates.
7) "Approved" prices are quickest - It is important to remember that short sales are not always timely; however, making an offer on an "approved short sale" can be a quicker process. An "approved short sale" has a price that has already been given the green light by the bank. This could be due to the fact that another interested buyer made an offer that was approved, but didn't end up buying the property. These types of short sales are some of the most highly desirable.
8) Some banks look at and want strongest buyers, some want strongest offers - The bank has all the power in approving short sales. The bank can pick the most appealing buyer, which may mean different things to different banks. Some banks may prefer the buyers with large down payments while others just want the highest price regardless of down payment. Many buyers want to know if they will get a deeper discount for an all cash offer. This is very hard to predict and one will never really know until they make an offer. As long as the buyer is surrounded by a good team we would advise them to do just that.
9) Repairs are seldom done, credit is more frequent - If there are improvements that need to be made on a home, even if they are necessary to get a loan, it is often unlikely that they will be done. Typically there is some sort of credit issued and the buyer must take the responsibility of fixing anything that is broken.
10) When you get approval, must close on time - During a short sale there is no leniency with the closing escrow date as there often is in a traditional sale. During a short sale, exceptions are rarely made and the buyer must close on time. Because of this, it is important to take care of all loan paperwork immediately after opening escrow. We'd advise buyers to be extra prepared and try to have the loan finalized a few days in advance of the closing date. If there is going to be an issue that will prevent closing on time, a request for an extension will need to be made immediately. If the request is made early enough, many banks will grant an extension but don't just assume it will happen.
Conclusion Short sales can be a great opportunity to find your new home at a competitive price. A Short sale could also be a major headache that lasts for months. It is important to have a good understanding of the factors that lead to a successful short sale to make it an enjoyable and profitable experience. We hope that these tips will help you to remain positive and optimistic throughout the process.

Don't miss the 1st-Time Buyer Tax Credit- Expires 11/30/2009

2009-10-19T11:48:00.000-07:00

The first-time buyer tax credit is set to expire on November 30, 2009. New buyers in the real estate market can get up to an $8000 credit on their tax bill if they buy a home this year and CLOSE ESCROW by the end of November.
With the longer time frames on loans that means, you better scramble and buy something this week, (less time needed for all-cash buyers). There are a lot of buyers expected to make their offers this week to ensure time to close, but with the Thanksgiving holiday in there, don't wait. Talk with your REALTOR now about this stimulus program to see if you qualify.
www.JenniferListings.com

2008-12-12T19:21:00.000-08:00

Daily Real Estate News December 9, 2008

Study Shows Housing Values Have Climbed
News reports have been packed with stories about declining home values, but a recent government report shows that the situation is not nearly so dire as some reports make it sound.Despite big loses in some areas of the country, the majority of markets continue to show growth in home value over the last five years.According to the third-quarter survey released by the Federal Housing Finance Agency, out of 292 metropolitan markets, 273 showed positive net home values in the last five years. Only 19 percent were negative. While home values declined 4 percent on average in the last year, values were up nearly 29 percent over the past five years.According to the Federal Housing Finance Agency, markets that gained the most over the last five years were:
Honolulu: up 78.7 percent
Virginia Beach: 72.6 percent
Flagstaff, Ariz.: 66.5 percent
Bellingham, Wash.: 65.6 percent
Wilmington, N.C.: 62.1 percent
Baltimore: 60.6 percent

Source: The Washington Post Writers Group, Kenneth R. Harney, (12/06/08)

Bottom of the Market Secret

2008-12-11T09:39:00.000-08:00

I've got a secret...or at least the national news seems to be hiding it....let me say it here folks....we're at the bottom of the market in Santa Cruz County. Why do I say this you ask....well, we are seeing multiple offers on well-priced homes and that is a major turning point (yes they are still lower priced than they were even a year ago, but that's what happens in a buyer's market). But, you should know the market goes in cycles. Ask anyone that's been around the industry in the last dozen years and they'll tell you, they've seen it with their very own eyes.

Despite the doom and gloom of national media (which IMHO, you can't generalize something like the Real Estate market nationally, especially along the coast of California, because markets are totally different even within one county, but I digress) our office is buzzing around with happy and excited clients- both on the mortgage end AND the sales end.

Let's break this down...the bottom of the market is usually in hindsight... those that happen to buy during that time are considered investor "stars," but I call them lucky with good guidance by a Realtor. This is my job- I follow trends in this industry and I am telling you...don't miss this golden opportunity to buy some California real estate at prices you won't ever likely see again.

The rates for loans have dropped again and are expected to stay that way for the remainder of this year. This alone, is a good idea to buy or refinance. In any case, say you do buy a home in today's market...you'll need to sit on it (or in it) for 2 years because of tax reasons (or at least 12 months as an investor), by the end of 2009 we expect to see the market not only bottom out but slowly climb back on it's way to a sellers market..but by then you won't have the inventory selection you have now. So, even if today's market goes down 1-3% more in price, the difference is very small in your loan payments and you'll be in the market at a phenomenal deal AND you'll be ready for the turnaround when you sell.

SO, yes we're doing the Buyer's Dance right now...because we are at the bottom of the market folks!

Short Sale Vs. Foreclosure on your Credit Report

2008-09-25T15:28:00.000-07:00

Did you know?????
Generally speaking: a short sale on your property will ding your credit by about 100 points and a foreclosure will ding your credit by about 200 points. If you can make a short sale work, get a qualified real estate agent involved and work it to help save some points for your credit. Even an attempt at a short sale (selling the property at a lower price than is owed on the loan, with your lender's approval) may help show some efforts in your favor.
But don't wait....as soon as you think there might be a problem, call your lender and see if there can be a "workout" on your loan. They may be able to get you in to a better loan, reduce payments, refinance, tack missed payments on the end of the loan etc. you don't know until you ask, and it's more likely to happen if you talk to them BEFORE you miss a payment.

Shoulda, Coulda, Woulda- Don't Miss the Market

2008-05-05T13:54:00.001-07:00

I hear time and time again that my buyers are "looking for a deal" well they are all over the place-- properties for sale may not be "listed" at their ideal price, but that's not to say they can't be negotiated at an incredible bargain...don't miss the market waiting for a perfect house. Buy a fixer or one of these bank-owned REO properties and turn it in to your dream, or at least a great investment that you can hold on to for instant equity in a couple of years.

I see folks getting caught up in short sales for months with no guarantee that they will even get their offer accepted or not get bumped by a better offer...and I fear that they will lose out on these incredible deals because they waited and waited for something else.

The Santa Clara County market is usually a step ahead of the Santa Cruz County market and they are seeing multiple offers in certain price ranges...just like we are, and buyers are missing out. Now that buyers have realized the market is phenomenal and the rates are good, they are coming out and putting out offers and getting outbid...don't miss the market by waiting too long. Now's your chance to get 2004 pricing and better rates, what are you waiting for REALLY?

Work with a Realtor that knows your market and which properties are a great deal, don't get caught up on "list price" because it's a different negotiation for bank-owned vs. short sale/foreclosure vs. none-of-the-above listings...we can help you sift through it, but don't wait if you have the means to make an offer now, because the selection and possibly pricing may not be there.
www.JenniferListings.com

What is a Short Sale?

2008-03-04T14:45:00.000-08:00

A short sale is an agreement by the bank or lender that they will take less for a property than what is owed on the mortgage.

What does that mean? When someone is forced to move or relocate due to a job
transfer, for instance, and it is during a “down market” this can help them get on their way to their new location. More often, it is a “pre-foreclosure” move to help save a seller’s credit (it is a bit better than a foreclosure or
bankruptcy on your record but it still has it’s consequences).

The upside...you can often get a great deal on a home or property because it is often listed at “realistic” or slightly below market value.

The downside...the property is usually in “as is” condition and inspections are often out of the buyer’s pocket. And even though it is listed at a low price, it doesn’t mean the bank will accept that price. Afterall, the bank is in the business of making money and doesn’t want to lose anymore on this property than it has to. Another concern is that if your offer DOES get
accepted (which takes about 2 weeks) you are not guaranteed you get the property until it closes (average is 90+ days to close, rather than 30-45 for a non-short sale). You could be pending in escrow and the bank could get a better offer the day before you close, then they can bump you from the first position and sell it to the other folks.

SO, in some cases you are better off negotiating a good price with your Realtor on the home of your dreams rather than the select homes in short sale, foreclosure or bankruptcy. Don’t miss this booming buyers’ market.

Conforming Loan limits Rise for 2008, Great News for....

2008-02-13T15:01:00.000-08:00

President Bush Signed the Stimulus Plan

The bill will temporarily increase the size of loans that may be purchased by Fannie Mae and Freddie Mac, raising the current level of $417,000 to reportedly up to $729,750 in the highest cost regions of the housing markets. A change from a Jumbo Mortgage to a conforming mortgage will help you to possibly save hundreds of dollars a month on your mortgage payment. If you or someone you know has a loan that:
Has a loan balance currently between $417,000 and $730,000 at an interest rate higher than 6%.
Has a Second Loan with an interest rate higher than 6%.
Is a loan that is fixed for 3, 5, 7 or 10 years that will become an ARM anytime in the next 18 months.
Is an ARM that is scheduled to adjust anytime in the next 18 months.
Have been considering a purchase but you're not sure you could afford to or that you would qualify.

Contact us or your lender for more information

5 Investor Tips in a Slower Market

2008-01-04T11:52:00.000-08:00

“When markets go soft, things get interesting. Even though an abundance of opportunity exists in a soft market, many people still won’t take action. Why is this? Because by nature, people follow a ‘herd’ mentality. Most people believe that for something to be the ‘right’ thing to do, many people need to be doing it. Actually, this is not true at all. … An experienced insider’s secret — that many folks don’t want you to know — is this … When the markets go soft the playing field is being ‘reset.’ Short-term opportunities are removed and an abundance of opportunity gets created for the seasoned investors who know how things really work.”

1. Timing is everything. Enter the market cycle early. “When it’s quiet, when the media isn’t saying ‘record levels of appreciation,’ that’s when you want to jump in,” the authors write. As billionaire oilman J. Paul Getty once said: “Buy when everyone else is selling and hold until everyone else is buying.”

2. Get financially ready. Before you buy, consider holding costs, tax implications, and cash flow potential. Many things can go wrong when buying investment properties — such as a vacant rental or a property that won’t sell. Have cash reserves (get a partner if you don’t have any) and you’ll be prepared to ride out any market cycle. Identify your risk level and what you want: For example, an investor who wants to turn a quick profit with low holding costs would want to sell their new-home property before construction is complete. On the other hand, an investor looking for a bigger return with less capital gains tax would want to hold the property until after construction is complete and keep it as a rental property for at least one year.

3. Buy and hold. In a distressed market, this can be a smart move. A buy-and-hold strategy can help give the property an opportunity to appreciate over time. Buy at the right price, though. Compare the home’s price to what homes are selling for over a reasonable time period in that
community and what you expect is the lowest price the market will reach. Get in at that price. Consider lease option investments so you can rent the property to cover payments, having the property practically pay for itself each month. Also, continue to pay down the mortgage and eventually you may even have the home paid off — an ideal position for an investor!

4. Find best deal. In a slow market, you can get great deals — and some extras. Builders overbuilt during the housing boom, resulting in high inventories of unsold properties. Now, many builders report slashing prices, offering free upgrades, absorbing all financing points for their buyers, and paying closing costs or fees. Extras aside, other good investment properties include homes five years old or less and properties in the $500,000-range, which can particularly be desirable to a large pool of buyers. Also, look for a property in an emerging market. Some indicators: sales of existing homes and new construction permits are starting to trend upward, supply is steadily dropping, mortgage loan defaults are high but starting to fall, days-on-market move below 90, and low interest rates.
5. Have an exit strategy. Have a selling strategy in place before you buy so you’re not just randomly banking on the property appreciating and then doing a quick sale. Come in with a solid selling plan. For new construction investing, your selling options might be to assign your purchase contract during the construction period, sell when construction is complete, lease and then sell, or a lease option. Reduce the taxable impact of selling your real estate investments by talking to your tax adviser about a 1031 exchange or self-directed IRA. “Know how you will get out before you get in!” we advise.
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From the Book: 5 Investor Tips in a Slower MarketSlower markets can offer rich opportunities for investors: real estate sellers are more open to negotiate and lower home prices — and combined with low interest rates — can help you get properties at bargain levels. Yet, some buyers are reluctant. “The market may not look perfect,” the authors write. “This is why prices haven’t taken off yet” — and why you want to get in before they do!

Quick SkimThe slowdown in the real estate has sent some investors fleeing from the market. But those bailing out may be missing opportunities, say the authors of Making Hard Cash in a Soft Real Estate Market (Wiley, 2007). There are still big bucks to be made — even in a down cycle. In fact, authors Wendy Patton and Justin Ryan argue that “more money has always been made in a down market than in an up market.” They highlight how investors can snag the best buys, master market-timing and risk management, and prepare finances — all to better help you become a savvy investor in any type of market.

Top 10 Ways to Beat A Sluggish Housing Market

2008-01-04T11:48:00.000-08:00

FrontDoor.com's Top 10 Ways to Beat the Sluggish Housing Market
By FrontDoor.com Published: 12/21/2007

Don't let the slower market get you down. Whether you're a home seller looking for offers, or a homebuyer facing stricter loan requirements, rev up your real estate potential with these helpful pointers from FrontDoor.com.

FOR SELLERS:
Give your house a makeover that adds value and keeps it up with the Joneses'. That doesn't mean you should run out and install Italian marble. But if hardwood floors are the norm in your neighborhood, replace the carpet. MORE...
Use the secrets of staging experts, or hire one. Staging can be as easy as a fresh coat of paint, new cabinet hardware and strategically-placed lighting. Think of it as a creative, inexpensive facelift for your home.MORE...
Find out what's wrong with the house and get it fixed. Don't wait until that serious buyer finds faulty wiring or a termite problem and then pulls the plug on the deal. Be proactive. Get an inspection before hitting the market.MORE...
Come up with a comprehensive home-selling strategy. Selling your home in a buyer's market requires a well thought-out plan with accurate pricing, targeted improvements and focused marketing and exposure.MORE...
Hire an aggressive, well-connected real estate agent. Find an experienced agent with a proven track record and knows how to pound the pavement. In this market, name recognition is important, so find the go-to person for buyers and their agents in your community.MORE...
Help a buyer buy it. Offer incentives that put money in the buyer's pocket, such as buying down the interest rate, absorbing more of the closing costs or offering seller financing. MORE...
Consider renting or offering a lease option. Minimize the impact of two mortgages by renting your house out until you find a buyer. Or offer a lease option to a motivated buyer who doesn't have enough cash to buy a home outright.MORE...
Make the house move-in ready. Throw in the furniture, flat-screen TV, washer/dryer, appliances, backyard jacuzzi AND the kitchen sink. The less money a buyer will have to shell out to furnish the house, the higher the perceived value.MORE...

FOR BUYERS:
Use calculators and tools to evaluate your potential purchase. Be careful not to get caught up in the hype of a buyer's market. Make calculated decisions with FrontDoor.com's "Return on Investment" tool, for instance, which helps you determine your potential IRR (internal rate of return) on a property. MORE...
Evaluate and boost your financial profile. If you're having trouble finding favorable terms or interest rates on a mortgage, make yourself more appealing to lenders by boosting your credit score. MORE...

Federal Reserve Cuts Interest Rates Another .25 point

2007-12-11T11:53:00.000-08:00

WOW! The rates were already the lowest they've been in two years for a 30-year fixed rate mortgage and the Fed's just cut the prime rate another quarter point. If ever there was a great time to take advantage of the low housing prices, now is it. Get in while the selection is plentiful, the rates are good, and the prices are low. Buy, Buy, Buy!!! Go to: http://www.jenniferlistings.com/ for your home search now! We can also send you a list of "Deals of the Week" in your price range.

DESPITE PRICE DECLINES, HOUSING STILL SAFE LONG-TERM INVESTMENT

2007-11-15T10:29:00.000-08:00

Despite declining home prices as recently reflected in an S&P/Case-Shiller home price statistics survey, on average, the nation's top markets have experienced price appreciation by as much as 50 percent over the past five years, according to comparable data from the National Association of Home Builders (NAHB).

"It's important to keep things in perspective," said NAHB President Brian Catalde. "The current housing price correction is most pronounced in the once super-heated markets in California, Nevada, Florida and Arizona. In most other markets, price declines have been pretty modest."According to the NAHB's comparable data tables, home prices in Los Angeles dipped 5.7 percent in the last year, but have appreciated by 88.9 percent since 2002. San Francisco home prices have declined 4.2 percent in the last year, but have seen appreciation of 46.7 percent since 2002. Home prices in San Diego have fallen by 8.3 percent in the last year, but have appreciated 54 percent since 2002, according to the report.

"The level of pent-up demand reaching the market next year is a bit uncertain, and it is possible for even higher home sales activity than we're forecasting if buyers regain their confidence about the long-term benefits of homeownership," said Lawrence Yun, National Assoc of Realtors chief economist.

New Listing, Own Your Own Address

2007-11-06T14:26:00.000-08:00

Now that rents are going up and becoming more scarce, this is a great time to buy low and get in to the real estate market or move up from your first home. Investors and first time buyers alike, this is a good deal. Dare to compare-- this 3 bedroom home was just listed and a prime value at $509,000. With a remodeled kitchen, taller cabinets, granite counters, tile floor, breakfast bar island and hardwood floors in the living room, enjoy this open floor plan with high ceilings and views over the deck and yard.

Walking trails and parks complete this quiet neighborhood tucked away near shopping, freeways, and schools. The perfect rental, but even better, a home you can be proud of.

Buy Low Sell High

2007-11-06T14:20:00.000-08:00

Now's the time for real estate deals. Watsonville, in particular, can be a tremendous source of property at incredible deals. Once we get past these short sales, we expect the sales prices to level out and possibly creep back up slightly. With interest rates holding at a low, we can't tell you enough, THIS IS THE TIME TO INVEST IN REAL ESTATE in this area. If you have the means and can hold the property for two years or more, you can have a good investment with a handsome return. But be prepared to move fast when you do make the decision to move forward because these deals are selling quickly once they are at the right price.

We are tracking the "deals of the week" so contact us with your price range and we'll load you up on the properties we've investigated personally to let you know what's a deal. jennifer@jenniferlistings.com

Home Features Buyers are Willing to Pay For

2007-09-25T13:55:00.000-07:00

Statistics from NAR Research "profile of Buyers' Home Feature Preferences"

Percentage of buyers prepared to pay a premium for key features:
Interior:
Walk-in Closet in Master Bedroom 60%
Hardwood floors 57%
Granite Countertops 56%
Separate Showers in Main Bath 47%
Whirlpool Bath 40%
Cable/Satellite TV-ready 36%
Sitting Area in Master Bedroom 29%

Exterior:
Oversize Garage 56% (up from 6% in 2004)
Patio 54%
Fencing 51%
Porch 48%

Most Desired Home Features Very Important to Buyers

2007-09-25T13:50:00.000-07:00

"Everybody has become so dependent on their cars and technology, for both work and personal use, that they're expecting their homes to have these amenities now," says Fran Davis, chair of the NAR Economic Issues and Residential Real Estate Business Trends Forum.

Most Desired Home Features Ranked "very important" to buyers across the United States:
1. Central Air Conditioning
2. Oversize Garage
3. Walk-in Closet in Master Bedroom
4. Backyard/play area
5. Cable/Satellite TV-ready
6. High-speed Internet access
7. Separate Showers in Main Bath
8. Patio
9. Fencing

More Home Buyers & Sellers use Internet and Realtors

2007-09-25T13:48:00.000-07:00

More Home Buyers and Sellers Use Internet, Practitioners
Technology is transforming how Americans buy and sell homes in unexpected ways, and sellers using real estate practitioners sold their homes for 16 percent more than unrepresented sellers, according to new research released Jan. 17 by the NATIONAL ASSOCIATION OF REALTORS®.

Buy Retirement Home Now, Move in Later

2007-08-17T13:19:00.000-07:00

With prices in many areas at an all time low, it might make good financial sense for Baby Boomers to buy your retirement home now, even if you’re still years away from actually moving. Sherman & Boone Real Estate/ property management division, can help find renters who will pay the bills until you're ready to live there.
Call Jennifer Watson for more information and potential opportunities in your price range!
(831)254-8654

Private Mountain Getaway- Sold in only 61 Days on the Market

2007-07-17T13:51:00.000-07:00

End-of-the-road gated & private: "Live like you are on vacation" play in the stream (where Steelhead spawn), have a campfire in the ring, relax on one of the decks (situated for am or pm advantages) get back to nature in several garden areas, and indulge your creativity in the workshop/artist studio. Enjoy extra parking for all-sized vehicles and toys. This clean and charming 2 BR cottage takes advantage of it's setting with many dual-paned windows and no need for curtains. Live modestly or expand on what's there. It's just a hop skip to the famous Corralitos Market. Consider this if privacy and living out of the fog zone is important to you; You love the redwoods but like a bit of sunshine; a clean and comfortable, easy-care home for relaxed living is essential; and an acre in town is just not feasible, this is the home for you!

Contact Realtors: Jennifer Watson or Marion LL Lyng (marionl@shermanandboone.com) at Sherman & Boone Real Estate for a showing. MLS#734148 or visit: www.JenniferListings.com for more info and photos. (831)254-8654 or (831)786-2502.

It's a Move Up Market

2007-07-17T13:35:00.000-07:00

“It’s a Good
Move-Up Market”

There's this perception that people wait for a good market to sell their homes. Most people buy or sell because of major events taking place in their lives: births, deaths, marriage, divorce or a job change; no matter what the local real estate market is doing. In today’s market you may not get as much for your house as two years ago, but when you buy another property, it's not going to cost as much now either— thus it's a good move-up market.

Is now a good time to buy?…Yes, anytime you can get in to the real estate market, is a good time. The San Francisco Bay Area, over the last 20 years of major ups and downs has appreciated, on average, over an 8% return on the investment. So, if you plan to both buy and sell in the same market, it doesn’t matter what cycle we are in because it is all relative. You may sell for less but you are also buying for less. You’ll get a better deal right now if you are buying but, with the right Realtor, you can still get a great deal out of your property for sale too.

Are you planning to downsize or move up? Let us help with your buying and selling needs, we can provide a free analysis of homes in the area and price range you’d consider buying or selling in. OR call…(831)786-2502 (we work with a network of Realtors through Leading Real Estate Companies of the World in most locations worldwide to help you find the best Realtor in your area or the one you are interested in).

Question of the week? What is the longest you've seen a house for sale on the market for?

CIty of Watsonville 2006 sales statistics

2007-01-15T09:07:00.000-08:00

Did you know the average home in Watsonville sold for about $664,000 in 2006 and was on the market for 90 days...

Yes, it's a buyers market!

2006-12-12T13:11:00.000-08:00

It's a GREAT time to buy real estate. The rates are still good, there's quite a bit of inventory to choose from and sellers are getting antsy if they've been on the market awhile. New inventory is selling fast and older inventory is beginning to disappear. Buying in December/January is not only a good idea but you have less competition, while others have "taken some time off." Everyone is going to come back out in mid-January, especially investors. Get out there and look, talk to a knowledgeable (full-time) Realtor and put your offer in...heck, you just might get it at a steal of a deal. Using the right Realtor on your behalf can save you thousands in negotiations.
Sellers, get your property on the market now so you can get the early birds looking AND have time to prep the marketing materials for the search influx. www.JenniferListings.com, Jennifer Watson, Sherman & Boone Real Estate (831)786-2502