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Homes And Land News, August 24, 2009
60-Second Real Estate {weeklY} By L. Randy Drew
Ready, Set, Go!
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Tips On Getting A Great Deal On A Great Home/Investment Property -
1. Buy a cluttered house. It’s amazing the number of buyers who cannot look past the junk to see a great value of a home. Plus, listing agents will often convince sellers to lower their asking price substantially simply because THEY cannot see past the clutter. Their lack of vision can be your advantage.
2. Buy a home that needs a paint job, fixtures, and new counter tops. Minor upgrades are inexpensive and they can make a huge difference in the perceived value of a home. One look at dinghy paint or a grimy, dated kitchen, and many buyers have made up their minds. Then, the brief tour of the rest of the property is just an exercise. Their lack of vision can be your advantage.
3. Buy a home with a dead lawn, or overgrown landscaping. These are also huge turn-offs for many buyers.
4. Buy a home around the fourth quarter of the year. Many buyers will forego shopping for a new home after the kids go back to school, and during the holiday and vacation season (approximately September to February). Less competition often means better deals.
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60-Second Real Estate Is Moving to Fridays - I will be adding the “Weekend P.O.C.A.” (Preview of Coming Attractions).
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Countdown to CLOSE Escrow to Get the $8,000 Obama Stimulus Tax Credit1 - 98 Days.
1. Call for details.
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Alternative Dispute Resolution (ADR) - Meaning alternative to litigation, ADR consists of negotiation, mediation, and arbitration. Many of you know I’m attending the final course to complete my MBA from Pepperdine’s Graziadio School of Business and Management, having completed the ADR Certificate program at the Pepperdine School of Law, Straus Institute for Dispute Resolution1. The Straus Institute is currently ranked number one, and the Harvard program is number two.
A Realtor® with a Masters Degree in Negotiation2 from the best ADR school in the World; how’s that for going the extra mile? So…vigorously support a starving student; tell a friend that you know an outstanding real estate agent serving Los Angeles County, and Eastern Ventura County (licensed for all of California).
1. Randy is not a lawyer and is not qualified to give legal advice.
2. Loosely phrased
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Homes And Land News, August 17, 2009
60-Second Real Estate {weekly} By L. Randy Drew
Ready, Set, Go!
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Homes And Land News, August 10, 2009
60-Second Real Estate {weekly} By L. Randy Drew
Ready, Set, Go!
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Disclosures, Getting Away With Murder - After an offer is made and accepted, as part of a “traditional” or standard real estate transaction, the seller provides disclosures to the buyer. Broadly, disclosures are designed to tell the buyer about anything that may affect the buyer’s decision to purchase the property or to purchase the property for a particular price. After escrow is opened there is an “inspection contingency period” which is commonly 10 to 17 days. During this time the buyer may decide to opt out of the purchase and get her/his deposit back. The deposit is typically 3% of the purchase price.
Two common disclosure forms are the Transfer Disclosure Statement (TDS) and the Seller Property Questionnaire (SPQ). If a traditional seller efforts to conceal a material defect in the property, the buyer may seek remedy through negotiation, mediation, arbitration, litigation, or a combination. Typically, the buyer sues the seller for reparation.
Probate sellers, and foreclosures sellers are not required to provide buyers with a complete set of disclosures. The idea is, the seller doesn’t really know the defects with the property, because they have not (recently or ever) lived in the property.
The law should be changed, and here’s why. Recently, locally, the body of a real estate agent was found stabbed several times in a vacant home. This is a fairly extreme example of something that would require disclosure on the SPQ form…by a traditional seller. But, banks and trusts are exempted from this form. I say, they should have to fill out the forms. A typical question on one of these form begins, “Seller, are you aware of…” If most of the answers are left blank, fine. But, banks and probate sellers should be required to disclose what they DO know.
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Homes And Land News, August 3, 2009
60-Second Real Estate {weekly} By L. Randy Drew
Ready, Set, Go!
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The Ethics Of Negotiation - {(Extremely) condensed from an article I wrote for Pepperdine, last year} The likely defense given for lying in negotiations is that lying is expected; it’s part of the game. Lying in negotiations only works to the extent that it is believed. In fact, it is generally counterproductive when it is not believed. A lie occurs when one attempt[s] to create in [one’s] audience a belief at variance with [one’s] own.[1]
Carefully chosen words get the job done, simultaneously preserving one’s reputation and integrity. That is what is expected of great negotiators. If you plan to work with people in the future, remember: word gets around and people remember - like elephants - when they feel wronged.
When you say you are a great negotiator, what are you saying about yourself? (I’m just asking.) I mean things like: trained, educated, polished, practiced, and with a dash of natural ability.
The Ethics of Lying in Negotiations. p 3. Gerald Wetlaufer [FNa]. 1990. (75 Iowa L. Rev. 1219)
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Interest Rates Are “The Canary In The Coal Mine” - They will tell us when what happens next happens. Heavy-handed borrowing by a government (budget deficit), and currency dilution (printing money) will eventually work to drive up interest rates. What other factors act on interest rates? When will the chickens come home to roost?
Importantly, higher interest rates are bad for buyers and sellers alike. A higher available interest rate lowers a buyer’s purchasing power, because the same loan amount now comes with a higher monthly payment. If buyers can afford less, there will be downward pressure on home prices, but not to anyone’s advantage (unless you own a bank, credit card company, &c.)
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Real Estate Is Seasonal - Once the folks start buying school supplies, the competition drops like a rock. I’ve consistently gotten some of the best deals for my clients in the late third, fourth, and early first quarters of the year.
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Homes And Land News, July 27, 2009
60-Second Real Estate {weekly} By L. Randy Drew
Ready, Set, Go!
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Negotiation - There are two broad categories of negotiation, Win-Win (Integrative), and Win-Lose (Distributive).
Two boys had one orange. One did his best to cut the orange in half, and the other chose his half. Each got 50% of what he wanted. This was a Win-Lose Negotiation.
Two boys had one orange. A Mediator walked by and asked, “Why do you want the orange?” One boy wanted to eat it. The other boy wanted to use the rind to top a pie. Each got 100% of what he wanted. This was a Win-Win Negotiation…And that’s 200% satisfaction.
Distributive Negotiations focus on Positions (The What).
Integrative Negotiations focus on Interests (The Why).
That’s one reason I spend so much time asking about needs, wants, and motivations during an initial consultation.
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Mayor Villaraigosa’s Renter Protection Ordinance, In Practice - L.A. City’s new ordinance says (in a nutshell) that renters cannot be evicted until after a foreclosure property has been sold. Here’s an excerpt from the Agent Private Remarks section of a listing in the MLS (Multiple Listing Service). “Bank-owned / REO / Foreclosure …Available …except LA ordinance applies precluding seller from evicting occupants so property will not be delivered vacant. Buyer can evict/negotiate after close. As a result properties like this [will drag home values down. Tenants uncooperative because they like living there for free. No way to verify interior condition. Buy at your own risk. Good luck, sincerely.]” Okay, I added that last part, but it’s really happening.
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Homes And Land News, July 20, 2009
60-Second Real Estate {weekly} By L. Randy Drew
Ready, Set, Go!
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Part of Van Nuys, Now Part of Sherman Oaks - The Los Angeles City Council voted last week, as reported by the Daily News. The portion of what was Van Nuys, from Sepulveda to Hazeltine, and from Burbank to Oxnard is now Sherman Oaks. I grew up in that very area, my family still owns property there, and the price of real estate just went up, literally overnight. Nice.
{Does it bug you when someone adds, for emphasis, the word “literally” when they mean “figuratively”…or is it just me being neurotic? Damn that Van Nuys Jr. High Vocabulary class.}
The vote for the change was reportedly opposed by the President of the Van Nuys Neighborhood Council. It was/is disadvantageous to plans for the neighborhood of Van Nuys to secede from the City of Los Angeles. (If that’s true, why not secede from California while you’re at it? They’re broke anyway. Aren’t neighborhood councils a hoot?)
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Fiduciary Responsibility - I’ve heard it described as, the highest duty recognized in our system of law that one party can owe to another. A Real Estate Agent owes a fiduciary duty to his/her client/s. It involves words like, integrity and loyalty.
The first form you should sign:
DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP.
(Top portion pictured here.)
- Source: California Association of Realtors® (CAR)
Be sure your agent has read it. I’ve read it…And oh wait; I’m a Real Estate Agent. Coincidence? Practically.
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“The Foreclosures Are Coming; The Foreclosures Are Coming…” - The most recent 90-day moratorium on foreclosure is set to expire soon. The last of the 3-year & 5-year “exploding” loans was pretty much in 2007. We’ve got more to flush out of the system. While the process could theoretically go on through 2012, it will more likely be very “front-loaded” (more sooner and less later). Here’s why.
If:
1. One has a loan that’s going to “blow-up”, and
2. One is upside-down (owes more than the property is worth),
Then, one is either:
1. Scrambling to refinance with these (near historic low) interest rates, or
2. Going to cut one’s losses with a short sale, or (Why wait?)
3. Hiding under the bed. (These may take longer.)
(I am saddened that some people are getting a tough break; others reaped the benefits of huge cash-outs.)
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Homes And Land News, July 13, 2009
60-Second Real Estate {weekly} By L. Randy Drew
Ready, Set, Go!
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Reduce Your Property Taxes - Don’t pay a 3rd party to reduce your property taxes. Here (attached .pdf) is the form to request it yourself. Call with your questions.
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Jumbos Getting Easier - A “jumbo loan” is a loan amount (not purchase price) over $729,750 (as low as $417,000 in low-cost areas). Rates on jumbo mortgages are higher than rates on “conforming loans” (under $729,750), and have the most stringent underwriting requirements. Borrowers typically must have six months’ reserves, a 700 credit score, and a down payment of at least 20 percent. Jumbo loans are not subject to the new appraisal rules that are slowing much of the lending market.
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Multiple-Offers, This Year; Higher Prices, Next Year? - (Incentives & Low Interest Rates, not so much.)
“Recently, about 45 percent of buyers have been first-timers (typically 35 to 40%). The California housing market is experiencing a tipping-point phenomenon: potential buyers suddenly wanting to enter the market…have waited and waited for the best time…
Multiple-bidding on lower-priced homes [is]…common in California. People who ‘lose out’ during a bidding war…come back with almost vengeance-like determination…people who buy in June 2009 will likely see a price gain in June 2010…[Not] in all markets. The sharp upturn is likely to occur in markets where home prices are overshooting downward (after having overshot way upwards…
…one home-buying incentive that could disappear is current rock-bottom rates. The Federal Reserve has been actively trying to push down mortgage rates…But the fast-rising budget deficit and the printing of money…is raising concerns…the yield on the 10-year Treasury, the benchmark rate against which mortgage rates are pegged, has risen.
…the [$8,000] first-time buyer tax credit is scheduled to expire by November 30th. That means trying to entice buyers to sign contracts by early October in order to get the mortgage underwritten by November…[the National Association of Realtors (NAR)]…efforts to insure that home-buying incentives continue.”
- Source: Lawrence Yun, Chief Economist, NAR Research
http://www.realtor.org/research/reinsights/economistcommentary
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Homes And Land News, July 6, 2009
60-Second Real Estate {weekly} By L. Randy Drew
Ready, Set, Go!
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Discount Points, To Pay or Not To Pay - “Point” = “Discount Point” = a percentage point (1%) of the loan amount. Example: on a loan amount (not the purchase price, but rather the amount financed) of $540,320 a point = $540.32. Points may be used to pay the lender, loan officer, and/or loan broker for their services (in addition to probable fees). Fees are generally assigned to specific services (real or imagined) such as “Administrative Fee”, “Processing Fee”, &c. Fees and points are both negotiable, and should be negotiated. (This is not my negotiation. It is my job to inform you. I negotiate other things for you.)
Points can also be used to “buy-down” the interest rate. The value of paying one or more points varies. We can tell when a lender wants us to pay one or more points by the amount of incentive they give us. Lately, lenders are giving big incentives for at least the first point, and then less and less for each additional point.
Points can be paid up-front (= in advance or “out of pocket”), or they can be “rolled-into” the loan. When a point is rolled-into the loan, it increases the total loan amount by 1%. Points and fees are/may be tax-deductable.
What I don’t care for is when a lender, loan officer, or loan broker hides points in the loan. It’s very difficult to tell when this is happening. The indicator is when the stated “Annual Percentage Rate” (APR) varies greatly from the Interest Rate. The APR will always be a bit higher due to fees and expenses. You will find these amounts in the government-required “Good Faith Estimate” that your lender must provide to you up front (= in advance of commitment).
The Pay-Off For Points: (I’m ball-parking (estimating) some of the numbers here.) Let’s say the interest rates are 5.7%. For the first point, the interest rate may drop to 5.4%. For the second point, the interest rate may drop to 5.2%, &c. as shown in the chart below. So in our example,
Loan amount = $540,320, and 1 point = $540.32
Estimated fees that are not affected by points:
Estimated Lender Fee = $0 to $995
Estimated Appraisal Fee = $450
Estimated Escrow Fee = $550
Estimated Title Insurance Policy Fee = $1,000
Estimated “Garbage” Fees = $?
Estimated Broker Garbage Fees
Other Broker = $225 to $375…& up..?
Keller Williams = $0
Cost of Discount Points =
| | | | | (Used for calculation only) | |
Interest Rate (i.r.) | Change in i.r. | Change in i.r. | Points Paid | $ Cost of Points | Decrease in Monthly Payment | Total Decrease in Monthly Payment | Pay-Off in Years |
5.700% | | | 0.0 | $ - | $ - | | |
5.400% | 0.300% | 3/10 percent* | 1.0 | $ 5,403.20 | $ 102.00 | $ 102.00 | 4.4 |
5.200% | 0.200% | 2/10 percent | 2.0 | $ 10,806.40 | $ 67.00 | $ 169.00 | 13.4 |
5.100% | 0.100% | 1/10 percent | 2.5 | $ 13,508.00 | $ 33.00 | $ 202.00 | 34.1 |
5.085% | 0.015% | .015/10 percent | 3.0 | $ 16,209.60 | $ 5.00 | $ 207.00 | 270.2 |
* Read: three tenths of one percent, or one third of a point. |
This chart tells us: That in or example…
The first point will be paid-off (by the lowered monthly payment) in a little over 4 years.
It depends on how long you plan to own your home (or until likely refinancing of the loan). At least 5 years?
The second point will be paid-off (by the lowered monthly payment) in a little over 13 years.
It depends on how long you plan to own your home (or until likely refinancing of the loan). At least 14 years?
The next 2 half points will not be paid-off in a reasonable time for the loan.
It doesn’t make sense to pay these additional 1/2 points.
Conclusion: Here, we will want to pay between 1 and 2 discount points.
If you roll the points into the loan, it affects the pay-off timing somewhat, due to the interest paid on the point(s).
Discuss the details with your financial professional, and how this all applies to your particular circumstance with you tax professional.
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Homes And Land News, June 29, 2009
60-Second Real Estate {weekly} By L. Randy Drew
Ready, Set, Go!
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Dead Cat Bounce? - Let’s look at the numbers.
| SFR | SFR | # Days | Condo | Condo | # Days | Special |
City/ies | For Sale | In Escrow | Supply | For Sale | In Escrow | Supply | Agents |
Burbank, CA | 93 | 123 | 23 | 70 | 89 | 24 | 1 |
Chatsworth, CA | 82 | 71 | 35 | 20 | 30 | 20 | 1 |
Glendale, CA | 147 | 165 | 27 | 111 | 108 | 31 | 0 |
Pasadena, CA | 317 | 197 | 48 | 210 | 114 | 55 | 4 |
Sunland + Tujunga + Shadow Hills | 131 | 120 | 33 | 13 | 14 | 28 | 0 |
Sylmar, CA | 131 | 228 | 17 | 91 | 97 | 28 | 30 |
Van Nuys, CA | 103 | 131 | 24 | 62 | 59 | 32 | 2 |
Woodland Hills, CA | 190 | 151 | 38 | 72 | 68 | 32 | 5 |
| - SFR = Single Family Residence = a House | | |
| - Condo = Condominium or Townhouse |
| - Special Agents = R.E. agents who don't know the difference between |
| | a "SFR" and a "Condo" | | | |
| - # Days Supply = 30 x (# For Sale / # In Escrow) | | |
From a sampling of San Fernando Valley cities, we see that the inventory (quantity of homes for sale) ranges from only 17 days to only 48 days. Meaning, there are more homes in escrow in many cities than there are for sale. The competition for buyers of desirable homes is intense. Need an outstanding agent?
Data collected from the Multiple Listing Service (MLS). 6/29/2009. By: L. Randy Drew
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Home Loans - “FHA” is a government-secured loan that only requires 3 ½ percent down payment. The other option is called “conventional” and it typically requires 20% down payment.
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Appraisal Nightmare, By Lawrence Yun, Chief Economist, National Association of Realtors®
- A groundswell of dissatisfaction is developing regarding appraisals. Minimal or low-calibrated appraisals, often by a non-local specialist, are killing deals at the last moment.
- Because of appraisals coming in lower than the previously agreed-on price by both the buyer of a home and the seller, the real estate transaction requires either a renegotiation, thereby ensuring a delay, or an outright backing-out on the deal. If the price does not budge with the appraisal, then the buyer has to come up with additional cash to bring to the closing table to make up the amount that the lender will not fund because of the lower appraisal.
- The problem has began to spike following the implementation of a new appraisal rule arising from the New York State Attorney General’s lawsuit against Federal Housing Finance Agency, the regulator of Fannie and Freddie. If lenders want to sell the newly originated loans to Fannie or Freddie, then the loan must abide by the new rule that favors using Appraisal Management Companies (AMC), many owned directly by large banks.
- Many of the properties are being appraised against non-comparable properties. Normal homes are being compared to distressed homes. New improvements to the home are not being considered.
- Though banks are able to get cheaper appraisals through the AMCs under the new system, banks are also collecting additional processing fees. The bottom line is that consumers today often pay more to order appraisals.
- This is very puzzling to me, as a non-lawyer, how one state can impose its rules nationally.
- There needs to be a moratorium on the implementation of the new rule. There is too much confusion in the market place about the rule and, as a result, the adoption of new, more onerous rules will surely delay the housing market and economic recovery. Any delay will in turn mean more foreclosures and more suffering for those affected families.
Forecast
- GDP Q2: - 1.2%
- GDP Q3: +0.2%
- GDP Q4: +0.8%
- Average 30-year fixed mortgage rate by the end of 2009: 5.6%
National Association of REALTORS®. June 19, 2009
* Side Note: Appraisals are not science; they are opinions based on selected information. How about a deal blown to bits by a comment by an appraiser that read, simply: “Overdeveloped for neighborhood”. (Thanks for that.)
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Homes And Land News, June 22, 2009
60-Second Real Estate {weekly} By L. Randy Drew
Ready, Set, Go!
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Waiting To See The Bottom Of The LA Real Estate Market? How Did You Like It?
“Home prices edge up for 1st time in nearly 2 years”
- Los Angeles Times, Business. Thursday, June 18, 2009
“[Interest] Rates Jump Dramatically to Six Month High” - www.Mortgage101.com
http://blog.mortgage101.com/2009/06/04/rates-jump-dramatically-to-six-month-high/
That being said, it is also true there are many more foreclosures yet to come on the market. These will continue to put downward pressure on home prices. The Obama Administration has imposed another 90-day moratorium on foreclosures in an effort to buy time to come up with the elusive, workable solution. Interest rates are key. Watch the interest rates.
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Obama Loan Modification Initiative Unsuccessful - …a good faith attempt at keeping people in their homes, but there are a few economical and operational components missing. You could give stressed homeowners a 1% interest rate with a 40 year term and most would still walk away from their homes if they owe more than the home is worth. President Obama's 105% refinance/loan modification program does not address this problem. Making matters worse, people are able to walk away from their homes at almost no cost to them (state specific).
- Matt Martin. Real Estate Management. 6/1/09
http://www.mortgagenewsdaily.com/channels/community/why-has-the-obama-loan-modification-initiative-been-unsuccessful.aspx
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Housing Affordability Index Is Up –69 Percent of California households can afford to buy an entry level home in Los Angeles, as of the first quarter of 2009, compared with 46 percent (revised) for the same period a year ago. The affordability index is the most fundamental measure of housing well-being for first-time buyers in the state.
The minimum household income needed to purchase an entry-level home ($213,040) in California in the first quarter of 2009 was $38,090 (based on an adjustable interest rate of 4.96 percent and assuming a 10 percent down payment).
- CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
http://www.car.org/newsstand/newsreleases/q1ftbhai/
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Homes And Land News, June 15, 2009
60-Second Real Estate {weekly} By L. Randy Drew
Ready, Set, Go!
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UPDATE TO: $8,000 May Now Be Used Towards Down-Payment –
1. As it is designed by our government today, the mechanism {the way of converting the tax credit into escrow funds} is faulty.
2. Therefore, lenders are not expected to participate in the program.
3. The $8K tax credit is still available through Dec. 1 this year, but not for closing costs.
4. Historic low interest rates (which ticked up a full point in the last 10 days) remain the best reason to buy now.
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The Three US Mega-Banks Are: Bank of America, Chase, and Wells Fargo. - I have an awesome “secondary” direct lender that plays by the rules, but does a much better job of getting things done, than the “big three”.
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Appraisals Are The New “Deal-Killers” – Lenders are now required to isolate appraisers from loan agents. {That’s sort of okay, but…} The “big three” have standardized their appraiser pools to the point where we are getting (for example) Orange County appraisers appraising Burbank properties. They don’t understand the area, and may (for example), use nearby “comps” (comparable sales) in the Burbank Airport flight path to value a home in nearby Magnolia Park, (which is very desirable, right near the major TV studios)…It’s not going to appraise for its full and correct value. Banks don’t seem overly interested in listening to reason. There’s a way to avoid this problem, which most agents don’t seem to know.
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3 & 1/2 % Down-Payment Is Still Available Through FHA. – It’s not that hard to qualify folks, as long as you have “documentable income” (2-year’s tax returns, &tc.) {Wait, if you have all cash. Hurry, if you don’t.}
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Homes And Land News, June 8, 2009
60-Second Real Estate {weekly} By L. Randy Drew
Ready, Set, Go!
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Consumers Getting Scammed –
1. Ask Randy for a free Proposition 8, Reduction of Property Tax form. It’s easy to complete, and Randy can help you with the Brokers Price Opinion section, for free.
2. A copy of your Deed of Trust is publicly available, for free. Do not pay for this. Call Randy if you would like yours, for free.
3. That same loan agent who was selling garbage loans 2 years ago is now selling loan modifications. Consider using an attorney for about the same price.
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Less Than a One-Month Supply of Homes - According to the Multiple Listing Service (MLS), there are more homes in escrow, in Burbank California, than there are for sale. This often leads to multiple-offer situations, particularly in the mid to lower price ranges. Your agent better know her/his stuff; Randy does.
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Forget About the Prices; Interest Rates Hurt Buyers and Sellers Alike – A 1% increase in interest rates (like we saw last week) approximately offsets a 10% drop in prices. Interest rates typically move a lot faster than prices…2%:20%, 3%:30%, &tc. Now is the time, ladies & gentlemen.
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Homes And Land News, June 1, 2009
60-Second Real Estate {weekly} By L. Randy Drew
Ready, Set, Go!
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Federal HUD Tax Credit Can Now Be Used on Closing Costs - FHA-approved lenders can now develop bridge-loan products that enable first-time buyers to use the benefits of the (up to $8,000) federal tax credit upfront. The credit is available to households that haven't owned a home in at least three years. The credit does not have to be repaid. Speak with your tax professional and your FHA-approved lender for details and issues affecting you.
Reference: REALTOR® Magazine Online. http://www.realtor.org
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Nationally, Distressed Properties Accounted For 45 Percent Of All Sales In April.
Source: REALTOR® Magazine Online. http://www.realtor.org/RMODaily.nsf/pages/News2009052701?OpenDocument
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Existing* Home Sales** Jump
*{Existing = as opposed to new construction}
**{Home Sales = Number or Quantity of homes sold}
[Nationally, e]xisting-home sales rose (2.9%, to a seasonally adjusted rate of 4.68 million units) in April…according to the NATIONAL ASSOCIATION OF REALTORS®.
Lawrence Yun, NAR chief economist, says…“Most of the sales are taking place in lower price ranges and activity is beginning to pickup in the midprice ranges, but high-end home sales remain sluggish…It's critical that distressed homes be quickly cleared from the market…Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California…this will set the stage for healthy market conditions going forward”
NAR President Charles McMillan says conditions are optimal for buyers with good jobs and long-term plans…“We have record low mortgage interest rates, a wide selection of homes and affordable prices in most areas,” he says. “When you add the $8,000 first-time buyer tax credit, it’s hard to imagine a better time to make an investment in your future through homeownership.”
In “the West”, home sales rose 3.5 percent to an annual rate of 1.17 million in April and are 19.4 percent higher than a year ago. Median price is down 21.8 percent from April 2008.
Source: REALTOR® Magazine Online. http://www.realtor.org/RMODaily.nsf/pages/News2009052701?OpenDocument
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Homes And Land News, March, 2009
60-Second Real Estate {weekly} By L. Randy Drew
Ready, Set, Go!
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Good News - There are proven Strategies for: Success in Tough Times
Many of us are facing adversity, but this too shall pass, and we’re going to be okay. Uncertainty can be scary, and these are uncertain times. If it’s time for a change for you or someone you know, we’re ready.
Be willing to accept reality.
For a moment, accept the worst case. Set out to improve on the worst case.
We can all pick each other up here and now...When it matters most. This too shall pass.
“Adversity reveals genius, prosperity conceals it.” - Horace, @ 10 BC
“Anyone can hold their head high and smile when it’s easy.” - Mom, 2009
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Homes And Land News,
60-Second Real Estate {weekly} By L. Randy Drew
Ready, Set, Go!
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Glossary of Terms
Historic Interest Rates*
How rising interest rates affect your monthly payment as prices go down
National Association of Realtors CAR
Encyclopedia
Randy: (818) 257-0007
Randy@LRDrew.com
Back to Home page
*Primary Source of Information: Federal Home Loan Mortgage Corporation's (Freddie Mac) Weekly Primary Mortgage Market Survey (PMMS), Weekly Average Values. Each week Freddie Mac surveys 125 lenders and the mix of lender types (thrifts, commercial banks and mortgage lending companies) is roughly proportional to the level of mortgage business that each type commands nationwide.
Real Estate Service & Values:
Our Standard Disclaimer: Our clients’ interests are our number one priority, ensuring our mutually successful future. We endorse neither running in the hallways, nor playing Frisbee® indoors. The information provided is from sources deemed reliable, but is not guaranteed if it has not been independently verified. Figures are estimated. Consult your Attorney for legal issues, CPA for tax issues, and Project Manager for performance issues. Your Values & Service Team may be providing information about homes listed or sold by other real estate brokers. Ignore this if you already have a great agent. No one can predict the future. We have our doubts about UFO’s & don’t believe in ghosts, but it’s okay with us if you do. Call for details.
The contents of this web page and "60-Second Real Estate" are the original intelectual property of L. Randy Drew, and may not be reproduced in whole or in part without the express written consent of L. Randy Drew. You may link to this site without getting permission.
Leverage - “Give me a place to stand, and with a lever I will move the whole world.” - Archimedes
Leverage refers to the use of borrowed resources to maximize return on investment (ROI).
Let’s say you spend $10,000 to buy a stock. Then, you will receive in return $10,000 worth of that company’s stock. If the stock goes up 10%, you have earned $1,000. That’s not a leveraged purchase.
Let’s say you spend $10,000 to buy land, a home, or an investment property. Then, maybe you purchase (with a loan) $300,000 worth of real estate. If the property value goes up 10%, you have earned $30,000. That’s leverage. It works both ways.
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Loan Prequalification - A ballpark estimate of a buyer’s borrowing power, based on summary information about the buyer’s income and assets.
Loan Pre-Approval - Provides proof to real estate agents & sellers that a buyer is approved for a specific amount. A lender has verified the buyer’s income, assets, debts/expenses, and credit history.
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Approximate Days Left To CLOSE Escrow & Get the $8,000 Obama Stimulus Tax Credit - 115 Days.