Realty World - Viking Realty

Investors Buying more Real Estate

Tom Lee — Sat, 19 May 2012 17:30:00 +0000

Investment-home sales surged an extraordinary 64.5 percent to 1.23 million last year from 749,000 in 2010.
Investment sales jumped to 27 percent in 2011 from 17 percent in 2010.
“During the past year investors have been swooping into the market to take advantage of bargain home prices,” said NAR Chief Economist Lawrence Yun. “Rising rental income easily beat cash sitting in banks as an added inducement. In addition, 41 percent of investment buyers purchased more than one property.”
The median investment-home price was $100,000 in 2011, up 6.4 percent from $94,000 in 2010.

Fraud in the foreclosure prevention programs.

Barry Ripp — Sat, 12 May 2012 15:07:00 +0000

Fraudulent foreclosure prevention providers are coming out of the woodwork to take advantage of today’s loss mitigation culture, according to the Homeownership Preservation Foundation (HPF).
The nonprofit group, which helps distressed homeowners through the group’s HOPE hotline, says the number of mortgage foreclosure scams grew nearly 60 percent in 2012. The scammers, they say, are able to capitalize on the hype surrounding homeownership preservation as federal programs are being modified to help more and more borrowers.
HPF said it’s unknown whether all of the reported instances were truly fraudulent, but the agency still forwarded all of the complaints to the appropriate regulators and law enforcement agencies.
About half of the scams involve an attorney or individual claiming they can offer special legal services to distressed borrowers. HPF says, in fact, the services they offered are already provided by nonprofits for free.
HPF put out a warning nationwide, saying no one searching for a home-saving remedy should pay upfront fees to a firm offering assistance.
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Benefits of Working with a Real Estate agent

Brian Ripp — Sat, 12 May 2012 00:26:00 +0000

If you are considering buying or selling a home, you may think you will “save some money” and do it yourself. But did you know that by using a knowledgeable real estate professional, you are more likely to save not only money, but also valuable time and energy? With the many tasks you are currently trying to juggle, do you have the sales skills – not to mention the contacts and resources – to do it on your own? Instead of trying to take on more work for yourself, think about what a real estate representative can do for you.
As buyers, you know what your financial reserves are and what your future earning potential may be. You can give your real estate professional information about your income, saving and current debt. Then, your agent can take that information to help you make a choice about which homes best meet all of your needs, and to offer you objective information about homes that are on the market.
If you are selling property, a real estate representative will be aware of ways you can significantly increase the salability of your home. In addition, a real estate professional knows how, when and where your property should be advertised.
As a real estate professional, I can help with all of your buying and selling needs.

Six “Worth-the-Price” Fix-ups

Brian Ripp — Tue, 01 May 2012 15:11:00 +0000

Simple and affordable do-it-yourself projects can greatly increase a home’s resale value, according to HomeGains annual home improvement and staging survey. The marketing company surveyed nearly 600 real estate professionals to discover which DIY home improvement projects five sellers the biggest return for their buck.
Here are the six projects under $1,000 (approx.) that made the list.

Cleaning and decluttering. Remove any personal items, unclutter countertops, organize closets and make the home sparkling clean.
Brightening. Clean all windows inside and out, replace old curtains, update lighting fixtures, and remove anything that blocks light from the windows.
Smart staging. Rearrange furniture, bring in new accessories and furnishings to enhance rooms, incorporate artwork, and play soft music in the background.
Landscaping enhancements. Punch up the home’s curb appeal in the front and back yards by adding bark mulch, bushes, and flowers and ensuring current plants and grass are well-cared and manicured.
Repairing electrical or plumbing. Fix leaks under the sinks, remove any mildew stains, and ensure all plumbing is in good working condition.
Replacing or shampooing dirty carpets. Steam-clean carpets, replace any worn carpets, and repair any floor creaks.

Excerpted from HomeGains 2011 Home Sale Maximizer Survey
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Investment Home Sales Surge in 2011.

Barry Ripp — Mon, 30 Apr 2012 21:44:00 +0000

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More “Stratigic Defaults” Expected in 2012

Barry Ripp — Sun, 22 Apr 2012 21:37:00 +0000

FICO survey of bank risk professionals found that 46 percent of them expect the volume of strategic defaults in 2012 to surpass 2011 levels, as more than 25 percent of U.S. homeowners owe more on their mortgages than their homes are worth.
Concerns about strategic defaults were also reflected in response to a question about the consumer payment hierarchy. When asked if the current generation of homeowners considers their mortgage to be their most important credit obligation, 49 percent of bankers said NO and 29 percent said YES.
Although concerns remain regarding strategic defaults, other signs point to growing stability in the housing market. More respondents (26 percent) expected delinquencies on mortgages to decline in the coming months than at any previous time in the two years FICO has been conducting this survey. Furthermore, 53 percent of respondents said the housing market would improve by the end of 2012, compared with 24 percent who said the market would deteriorate.
More than half of survey respondents expected the supply of credit for residential mortgages to fall short of demand over the next six months. A similar majority (53 percent) expected the supply of credit for mortgage refinancing to fall short of demand, indicating that lenders remain cautious about the risks in the real estate market.
Article was reprinted with permission from the Calif Assoc of Realtors.
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Predictions Are That In Two Years Real Estate Will Be Well On Its Way Back.

Dawn Rivera — Fri, 20 Apr 2012 18:01:00 +0000

Hi All, I am re-posting this article written by Steve Cook…..or is it Nick at nick does loans? Either way it is well written and informative. It sounds to me as if the buyers who are on the fence better jump off and jump in if they want to get in at the bottom…………
In two years Real Estate will rock!
Written by: Steven Cook
Housing starts will nearly double and home prices will begin to rise in 2013, with prices increasing significantly in 2014.
Those rosy predictions come from a new semi-annual survey of 38 of the nation’s leading real estate economists and analysts by the Urban Land Institute’s Center for Capital Markets and Real Estate. The economists foresee broad improvements for the nation’s economy, real estate capital markets, real estate fundamentals and the housing industry through 2014, including:

The national average home price is expected to stop declining this year, and then rise by 2 percent in 2013 and by 3.5 percent in 2014.
Vacancy rates are expected to drop in a range of between 1.2 and 3.7 percentage points for office, retail, and industrial properties and remain stable at low levels for apartments; while hotel occupancy rates will likely rise;
Rents are expected to increase for all property types, with 2012 increases ranging from 0.8 percent for retail up to 5.0 percent for apartments;

These strong projections are based on a promising outlook for the overall economy. The survey results show the real gross domestic product (GDP) is expected to rise steadily from 2.5 percent this year to 3 percent in 2013 to 3.2 percent by 2014; the nation’s unemployment rate is expected to fall to 8.0 percent in 2012, 7.5 percent in 2013, and 6.9 percent by 2014; and the number of jobs created is expected to rise from and expected 2 million in 2012 to 2.5 million in 2013 to 2.75 million in 2014.
The improving economy, however, will likely lead to higher inflation and interest rates, which will raise the cost of borrowing for consumers and investors. For 2012, 2013 and 2014, inflation as measured by the Consumer Price Index (CPI) is expected to be 2.4 percent, 2.8 percent and 3.0 percent, respectively; and ten-year treasury rates will rise along with inflation, with a rate of 2.4 percent projected for 2012, 3.1 percent for 2013, and 3.8 percent for 2014.
The survey, conducted during late February and early March, is a consensus view and reflects the median forecast for 26 economic indicators, including property transaction volumes and issuance of commercial mortgage-backed securities; property investment returns, vacancy rates and rents for several property sectors; and housing starts and home prices. Comparisons are made on a year-by-year basis from 2009, when the nation was in the throes of recession, through 2014.
While the ULI Real Estate Consensus Forecast suggests that economic growth will be steady rather than sporadic, it must be viewed within the context of numerous risk factors such as the continuing impact of Europe’s debt crisis; the impact of the upcoming presidential election in the U.S. and major elections overseas; and the complexities of tighter financial regulations in the U.S. and abroad, said ULI Chief Executive Officer Patrick L. Phillips. “While geopolitical and global economic events could change the forecast going forward, what we see in this survey is confidence that the U.S. real estate economy has weathered the brunt of the recent financial storm and is poised for significant improvement over the next three years. These results hold much promise for the real estate industry.”
A slight cooling trend in the apartment sector – the investors’ darling for the past two years – is seen in the survey results, with other property types projected to gain momentum over the next two years. By property type, total returns for institutional quality assets in 2012 are expected to be strongest for apartments, at 12.1 percent; followed by industrial, at 11.5 percent; office, at 10.8 percent; and retail, at 10 percent. By 2014, however, returns are expected to be strongest for office, at 10 percent, and industrial, at 10 percent; followed by apartments at 8.8 percent and retail at 8.5 percent.
The forecast predicts a modest increase in vacancy rates, from 5 percent this year to 5.1 percent in 2013 to 5.3 percent in 2014; and a decrease in rental growth rates, with rents expected to grow by 5 percent this year, and then moderate to a growth rate of 4.0 percent for 2013 and 3.8 percent by 2014. This may be indicative of supply catching up with demand.
For the housing industry, the survey results suggest that 2012 could mark the beginning of a turnaround – albeit a slow one. Single-family housing starts, which have been near record lows over the past three years, are projected to reach 500,000 in 2012, 660,000 in 2013, and 800,000 in 2014. The overhang of foreclosed properties in markets hit hardest by the housing collapse will continue to affect the housing recovery in those markets. However, in general, improved job prospects and strengthening consumer confidence will likely bring buyers back to the housing market.
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Update Your Mantle with Style

Brian Ripp — Tue, 17 Apr 2012 16:46:00 +0000

A mantle can be the place where you highlight treasured family photos; it can also be a show-stopping focal point for your room. Whether you like minimalistic design or prefer to be surrounded with your favorite objects, here are some ideas to help you decorate your mantle:
* Go Bold. If you tend to use neutral colors for your walls and furnishings, you can make your mantle really stand out by adding a bright “pop” of color. Consider using a vase of crimson tulips, a bowl of sunny citrus fruits or an array of colorful glass bottles.
* To balance or not to balance. If you like traditional decor, you might like a symmetrical look for your mantle. Try hanging a large painting, photo or mirror centered above your fireplace, then arrange a set of candlesticks, books or other matching knick-knacks on either end. But if you prefer to be a little different, go for an asymmetric look by using the decorator’s rule of “three to one”. According to this rule, artfully group three similar (but not the same) objects at one end of your mantle, then place one large object at the other end.
* Show off those photos. Select photos of friends, family and pets, then place them in a variety of frames. Mix shapes, styles and colors. Try to coordinate colors in the photos with the frames for a sophisticated, finished look.
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BUYERS MARKET OR SELLERS MARKET?

Serena Russell — Sun, 15 Apr 2012 16:00:00 +0000

Which one is it?
Simply put, buyers’ markets exist when there are a lot of homes on the market and very few buyers. If inventory–the number of homes on the market in your neighborhood–has been rising, it’s likely that the days on market have been increasing. Couple that with declining sales figures over previous months, and home buyers are in an enviable position to negotiate. Here is how you can write a buyer’s offer to your advantage.
Almost 80% of home buyers today start a home search online. However, many buyers are unaware that the data they are viewing could be dated. Many Web sites reboot every 24 hours. On other sites, agents sometimes leave expired and sold listings as active, hoping for ad calls. To avoid wasting your time, ask your agent to register your e-mail address so you can receive daily MLS changes of reduced prices and new listings. This is one way to gain access to the same data agents receive.
Current market conditions would indicate it is a buyer’s market due to the number of lower priced homes scattered all over the country; however in some areas it might be a sellers market; these tend to be the high end areas where prices have not decreased as much as other areas.
Make sure you can secure a loan from a stable lender, as many lenders are not coming through at the last minute. Have your produce proof of funds readily in your possession and keeping current all throughout the escrow process. Your real estate professional and lender should give you a list of itmes to collect and keep ready in case requested by the lender at the last minute.
Loans (Photo credit: jferzoco)
OPTIMISM: Is almost a requirement in this market of declining prices and interest rates. These happenings are actually VERY GOOD NEWS for buyers looking for a bargain. Find out how to make th situation work for you soyou can come out ahead.
Serena is a Realtor & property manager in the bay area. Meet with Serena for your free consultation, and to begin your search for that perfect rental property. Call or text (510) 303-2549.
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The White House is trying to help people with NON Fannie Mae Freddie Mac Loans Finally!!

Dawn Rivera — Mon, 09 Apr 2012 16:30:00 +0000

Official photographic portrait of US President Barack Obama (born 4 August 1961; assumed office 20 January 2009) (Photo credit: Wikipedia)
President Barack Obama on Wednesday announced a sweeping plan to help underwater homeowners refinance into lower-interest loans, but funding for the proposal must be approved by a combative Congress, lowering the possibility that it will help anyone soon.
The refinancing program would be a major source of relief for the many Bay Area homeowners whose loans are for amounts higher than the value of the home but are not held by two government-sponsored entities — Fannie Mae and Freddie Mac.
Operated by the Federal Housing Administration, the plan would allow underwater homeowners to refinance into cheaper federally insured loans up to $729,750 — the FHA’s conforming loan limit in the Bay Area. Borrowers with good credit who are current on their loan payments are eligible.
Since a highly partisan Congress must approve $5 billion to $10 billion in funding, housing experts were skeptical about it passing this year, but they praised its objectives.
“We’re supporting it because it will help to stabilize an already difficult housing market,” said LeFrancis Arnold, president of the California Association of Realtors.
“It is a big deal for homeowners here who can’t qualify under normal criteria,” said Ken Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at UC Berkeley. “A lot of people would take advantage of this if it were up and running.”
The measure also streamlines the process of refinancing an underwater mortgage, eliminating the need for an appraisal or submitting a new tax return.
Upside-down and out
Obama announced the plan in a speech in Fairfax, Va., saying it would save an average $3,000 a year per borrower. “No more red tape,” Obama said. “No more runaround from the banks. And a small fee on the largest financial institutions will make sure that it doesn’t add to the deficit.”
The plan will help “millions of responsible homeowners,” Obama continued. “If you’re ineligible for refinancing just because you’re underwater on your mortgage, this plan changes that. You’ll be able to refinance at a lower rate, saving hundreds of dollars a month you can put back in your pocket.”
To qualify, borrowers must be current on their mortgage, have a minimum credit score of 580, and they must be refinancing a loan on a single-family, owner-occupied principal residence. Lenders only need to confirm that the borrower is employed. Loans that are more than 140 percent of the home value probably would not qualify until banks wrote down part of the balance.
“There are so many people that could be helped” by the new plan, said Cathy Warshawsky, a San Jose mortgage broker and officer in the California Association of Mortgage Professionals. “They are people who are making lots and lots of money, who purchased homes that are now upside-down. They are making enough money to be able to pay their mortgages, but nobody will refinance them. If we drop their mortgage payment, they are going to go out there and spend money, buy cars and washing machines.”
Congressional clash
Mortgage market and housing analysts were doubtful that the plan will become a reality this year.
“The goal of the program is good,” said Kevin Stein of the California Reinvestment Coalition who is also concerned about Congress. “Whether they can reach the goal is another question.”
Dustin Hobbs of the California Mortgage Bankers Association called the plan “a positive sign,” but added that “the proposal is a long way from being a reality, so at this point it’s tough to say what the end result would be.”
The proposal to pay for the program with a tax on large banks will likely be dead on arrival at a fiercely partisan Congress in an election year, noted Ed Mills, a financial policy analyst with FBR Capital Markets in Washington, D.C.
The White House also announced several other measures to shore up the housing market, several of which were announced by Obama in his State of the Union address. The measures include a “homeowner bill of rights” to protect borrowers from hidden fees and penalties and provide an appeal process for families fighting “inappropriate” foreclosure; a pilot program to transition foreclosures into rental housing and a program to rehabilitate neighborhoods hit by foreclosures.