Realty World – Viking Realty

The sharp upturn in the housing market over the past year has more economists and housing hunters worried about a housing bubble.
But a new report from the real-estate website Trulia has a different message: chill out, there’s no bubble right now.
Yes, home prices in many parts of the country are rising today at the same rate that they did during the bubble years of 2003, 2004, and 2005. But the Trulia analysis found that, when compared with traditional price drivers such as rents and incomes, home prices are undervalued on a national basis by around 7%, compared to being 39% overvalued in early 2006. (Home prices were undervalued by 15%, relative to rents and incomes, at the bottom of the downturn in late 2011).
“Today’s price gains are actually still a rebound, not a bubble,” writes Jed Kolko, chief economist at Trulia.
 
Information obtained by California Asso of Realtors with permission.

English: Male House sparrow in a birdbath in Makawao, Maui (Photo credit: Wikipedia)
If you think you’d enjoy watching a playful bunch of colorful, melodious guests frolic in your yard, why not install a birdbath?  Here are some tips to attract and protect birds;

Birds prefer a shallow pool of about 3 inches or less.  If you already have a birdbath that may be too deep, you can simply add decorative rocks to the deepest areas.
The sound of flowing water is alluring to birds, so baths that have a fountain can dramatically increase the number of visitors.
Another important factor to keep in mind is the safety of the birds.  If they feel threatened, they’ll avoid your bath.  Be careful not to place the bath close to where a predator – like a pet cat – is likely to be lurking.  When birds are wet, their ability to fly away quickly is impaired, so they need to be able to spot predators well in advance to feel safe.  Placing the bath under a few low-lying branches will make it easy for the birds to flutter up into a tree if danger is spotted.
And to make cleaning simpler for you, place the birdbath within easy reach of a hose.  You also will want to separate your birdfeeder and the birdbath so the seeds and droppings can’t dirty the water.  Finally, change the water every few days to prevent algae growth and to keep your feathered friends happy.

Making exterior improvements to your home before putting it on the market will draw more potential buyers once it is listed.  This is known as improving your home’s ‘curb appeal’, and because first impressions are important, it may help ensure a quick sale.  But the first thing you need to do is decide how much time and money you are willing to invest in presale improvements.
You can go as far as resurfacing the driveway or applying a fresh coat of paint.  The good news is that you should be able to recover the cost of these larger improvements in the sale.
If you’d rather not invest so much time and money, smaller improvements can also do a lot to improve the curb appeal.  Try adding colorful flowers to your landscaping or simply adding potted flowers to your doorway.  Painting the front door an inviting new color may attract potential buyers.  Even polishing your doorknob and putting out a new doormat can help make a favorable first impression.

There is a lot of information out there regarding short sales…some accurate, some not.  I thought I would clear up a few of the misconceptions. Here are some myths that people are talking about when it comes to short sales.
You must be behind on your mortgage payments in order to qualify for a short sale.  You do not necessarily need to be behind on your mortgage payments to qualify for a short sale; you just have to show that it’s going to get harder to make your payments. These are known as hardship reasons, and can include recent pay cuts, a divorce, a serious illness, job loss and more.
Short sales can take over a year to close.  Most short sales close within 2-4 months. However, there is no specific time frame promised in which homeowners can expect to have their property approved and closed as a short sale. Each short sale transaction differs and can take more or less time depending on the circumstances.
 If you short sale your house, you cannot purchase another property for the next five years or more.  Under conventional lending guidelines, many people can obtain a Fannie Mae backed mortgage two years following the close of their short sale, and other lenders can also lend in 2-3 years time.
 Short sales almost never get approved.  Short sales are getting approved more than ever, since banks prefer this outcome compared to a foreclosure.  Experienced agents like me are far more likely to get your short sale approved.
After a short sale, the homeowner is forced to declare the loss as income and will receive a 1099.  The 2007 Morgage Forgivenesss Act among other considerations protect homeowners from declaring the loss as income and in most circumstances will not owe any taxes on their transaction. This act expires at the end of 2012 but is expected to be extended.  Talk to your tax advisor for more information.
Please contact me if you have any questions or comments about short sales or foreclosures. Contact me before it’s too late and I may be able to help.
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Currently, there are some mortgage lenders providing loan approvals with 10% down or less.  This is great for many buyers who can only afford with this much down payment.  However because of the low inventory of homes for sale in most areas, having a down payment less than 20% by buyers, doesn’t help them.  Multiple offer situations usually considers offers with at least 20% down or more.  Hopefully, more sellers will be motivated to sell.
Click here  for article on lenders giving loans that requires less than 20% down payment.
 

Credit Cards (Photo credit: 401(K) 2013)
If you’re wondering where all your money goes, you’re not alone.  Financial services company along with credit card management advisors surveyed more than 1,300 working people on their spending habits during the summer of 2012.  Here’s some of what they discovered:
Rent/mortgage payments were cited by 83% of men and women as one of their top three monthly expenses. (Homeownership is also the single largest source of wealth for most Americans.) Credit card debt was a major expenditure as well, named by 28% of men and women.  Car payments, on the other hand, weren’t in the top three lists of either males or females.
Only 38% of participants in the survey said they follow a monthly budget.  Less than half said they didn’t know how much money they have available each month for discretionary spending.  Among those who could name a figure, men tended to have more discretionary cash than women: $1,180 per month for men and $631 for women.

What does it mean when a residential property is “in foreclosure”?  Before a property is “in foreclosure”, the recording of a Notice of Default occurs, as the initial stage of foreclosure.   This means that the borrower has not paid their payments and after three months, the lender of trustee records the Notice of Default.  The NOD is then mailed and published.  The borrower still has a chance to cure the default within three months.  Then the following occurs:
- After three months, and if the borrower didn’t resolve or pay the default payments, an auction date is set and a Notice of Trustee Sale is issued;
- The Notice of Trustee’s Sale is published for three weeks before the sale date, recorded and then mailed to the borrower.  The sale date (auction) is usually scheduled for a date three weeks following the expiration of the three month reinstatement period;
- The borrower’s right to reinstate the loan expires 5 business days before the sale.  This means the borrower can still pay what they owe and make their payments current (including any fee or interest that accrued).  If the borrower pays in full, then the lender can stop the foreclosure.  However, it isn’t required by the lender,  to the let the borrower cure the default;
- The trustee’s sale is held and the property can be sold at a public auction (published in newspaper, ie) or the lender can choose to postpone the sale to another date.  The borrower doesn’t have the right to have the sale postponed.
 

If you are carrying mortgage insurance on your home loan, you may be wondering how long you will need to maintain this policy.  Although you have some say in the matter, typically your lender determines how long you will be required to carry this coverage.
Private mortgage insurance (PMI) is designed to protect lenders in case borrowers default on their loan.  Borrowers who put less than 20% down on the loan are generally required to carry this coverage.
If you are carrying PMI, there are some precautions you can take to avoid paying premiums beyond the necessary time.  The must obvious thing is to ask your lender what will be required before you can drop the coverage.  Some lenders require the insurance for a specific amount of time, such as five years.  Others, however, require that you reach a certain amount of equity.
Make sure you know the value of your home.  Appreciation alone can account for some increase in equity.  You also should keep track of your payment schedule and your mortgage balance.  Even if you discount the appreciation of your home, equity is likely being built with each payment.
If you have any questions about this or any other real estate matter, contact me .  I am here to assist you with all your real estate needs.

Tile is a durable, versatile addition to any home.  But even the toughest tile can get spots and stains from time to time.  Here are some ways to clean your tile:

Remove mildew and make tiles sparkle by sponging with a solution of ammonia and water.
For stubborn stains, apply a paste of scouring powder and water, and let it sit for five minutes.  Scrub with a nylon scrubbing pad, rinse and wipe dry.  Avoid using a brush with stiff bristles, which could scratch the surface of the tiles.
to keep the grout joints on tile clean longer, wash with a solution of 1 to 2 tablespoons of chlorine bleach in one quart of water.  Dry thoroughly, and then apply an acrylic sealer or three coats of lemon oil.  Let dry one hour between coats.
If tiles have a dull film, wash them with a solution of vinegar and water. Polish with a towel.

Sales of new single-family houses rose 8.8 percent in December compared with the previous year to a seasonally adjusted annual rate of 369,000, according to estimates released jointly by the U.S. Census Bureau and the Dept. of Housing and Urban Development. Compared with the previous month, new home sales declined 7.3 percent.
The median sales price of new houses sold in December 2012 was $248,900; the average sales price was $304,000. The seasonally adjusted estimate of new houses for sale at the end of December was 151,000. This represents a supply of 4.9 months at the current sales rate.
An estimated 367,000 new homes were sold in 2012. This is 19.9 percent above the 2011 figure of 306,000.