Reno Sparks Real Estate Today

FHA Lifts Flipping Rule

This is good news for buyers, sellers, and investors in the Reno Sparks area.

The Federal Housing Administration is temporarily lifting an "anti-flipping" rule, allowing borrowers using government-insured loans to be more competitive in bidding on foreclosed properties recently purchased from banks and even the government.

The Department of Housing and Urban Development's anti-flipping policy prohibits FHA financing on purchase transactions where the seller has owned the property for only 90 days. HUD found this policy blocked potential FHA borrowers from taking advantage of quick resales of real estate owned. REO sellers, generally, are unwilling to go with FHA borrowers because of holding costs and vandalism risk during the 90-day holding period. FHA is lifting the 90-day rule for one year starting February 1. FHA borrowers have "often been shut out from buying affordable properties," said FHA commissioner David Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity." FHA has been burned by property flipping scandals before. This time around it insists that all sales must be arms-length transactions with no evidence of flipping in the previous 12 months. If the resale price is 20% higher than the REO sales price, the lender has to provide supporting documentation and a second appraisal in some cases.

It’s about time!  I applaud the FHA for finally using some common sense. This “anti-flipping” rule was having a negative effect on everyone in the market.  The majority of today’s buyers are using FHA loans to buy homes. Many investors are turning down FHA buyers due to the 90-day rule, or they have to extend the closing period to reach the 90 days, which raises holding costs. Eventually these costs get passed onto the buyer.  A 90-day holding period is doing nothing but extending the transaction.

I’ve long said, to get this market cleaned up we are going to need investors.  Banks are not in the real estate business; they are in the money business. They have already screwed up the money business; we need to keep them out of the real estate business.  Investors are the best group to buy up foreclosed properties, fix them up, and sell them or rent them.   Investors have the knowledge and local resources to get the job done quicker and more cost effectively than banks. 

Don't Stop Believing!

I was driving to the store the other day and I saw this altered stop sign. First of all let me say I do not agree or support in any way defacing public property, in fact nothing drives nuts more. With that said, I have to say my first reaction was to smile, and think whoever did this hit the nail on the head.

I think Reno, Sparks, and  most of the country (myself included) have stopped believing. We’ve stopped believing in our economy, our government, our jobs, and our future. I’m the first to admit we live in challenging times but we have so much to be thankful for, and so much to look forward to. We need to have faith and believe in what makes the US
the most incredible country on the planet.

I believe in the Reno Sparks area. I believe we will grow, thrive, and continue to be one of the best places in America
to live, work, and raise a family. The American dream is not dead, it’s just going through a much needed correction.

Keep the faith and don’t stop believing! 

 

Ok I will get off the soap box now. 

Washoe County Housing: January 2008

Northern Nevada housing data

Brian Kaiser, Center for Regional Studies, UNR
March 13, 2008

Our first look at the 2008 housing numbers for Washoe County revealed no change in the downward trend of single family home sales and sales prices – there were 64% fewer single family home sales in January 2008 compared to a year ago, and the median sales price was 13% lower. Looking for the bottom? We haven’t hit it yet, but as I pointed out last month, the 10% price decrease experienced in 2007 is not that pronounced or dramatic when viewed in light of the tremendous run up in values from 2002-2005. Plan on another year of moderate decreases in home values before things begin to settle down in the Truckee Meadows.

Condos, again, showed some pricing strength in January, increasing an average of 8.4% from the year before. This is good news for the area and demonstrates that there is some semblance of stability in the market. With several new condo projects set to break ground in 2008, this type of product may fill a void in the marketplace created by the battered single family market.

Foreclosures more than doubled in January from the previous month – there were 177 homes seized by the banks in January, compared to 83 in December and only 29 in January 2007. Bank owned properties are likely to keep increasing through most of 2008 as more adjustable rate mortgages made in the past few years begin to adjust upward, pushing many people’s mortgage out of reach. Although the overall percentage of homes in foreclosure is relatively small compared to the total stock of homes, they are significant because they show up on the market as inventory being offered at cut rate prices, which helps drive overall market prices down. So long as foreclosures are on the rise, it’s going to be difficult for prices in the rest of the market to gain enough traction to start climbing back up.

For more information regarding the local real estate market, please check out our website at www.nvdata.org and scroll through the free data and downloads section. The Center for Regional Studies is an economic development partnership between the Nevada Small Business Development Center and the University of Nevada, Reno.

Buying a Home: 12 Tips for Cruising from Contract to Closing

Some tips for making the complicated process of buying a home a little easier.

Reno, NV, March 15, 2008 --(PR.com)-- The spring home buying season is fast approaching and many people are preparing to take advantage of low interest rates and a great selection of well-priced homes. Buying a home is exciting but it can also be overwhelming. Here are some tips to make the process a little easier:

1. Get pre-approved (not just pre-qualified) for a mortgage before making an offer on a home or even doing a home search. A pre-approved home buyer is effectively the same as a cash buyer, which makes you stronger in the eyes of the seller.

2. Deliver all requested documents (e.g. bank statements, pay stubs and landlord affidavits) to your lender in a timely manner.

3. Check from time to time to make sure your lender has verified the details of your mortgage application—sometimes a little nudging from you is needed to keep the application moving along.

4. Be careful not to do anything that may affect your mortgage application. Remember, the lender can withdraw the approval if your situation changes substantially. Don't apply for new credit cards, take out a loan or make any major purchases (like cars or furniture). Also, now is not the time to change jobs.

5. Make sure you and your significant other are on the same page about neighborhoods, home price, home size, amenities, etc., before you start the home search.

6. Work closely with a real estate agent you trust and are comfortable with. He or she will help you learn about the current market and home values so you'll be ready to act with confidence when the time comes to make an offer. A purchase agreement is a binding contract. The time to do research is before you sign on the dotted line.

7. Have confidence in yourself and in the professionals you chose to guide you. It’s fine to seek guidance from trusted advisors, but once you make the decision to purchase a home, stop looking for confirmation that you’re doing the right thing. Everyone has an opinion but unless they’ve done the research, like you, don’t rely on them for validation.

8. Direct all communications through your real estate agent. He or she will work with your lender, home inspector and other parties throughout the entire home buying process.

9. Understand that no home is perfect and every purchase involves some compromise. On resale homes, repairs or deferred maintenance may be necessary. Hire an objective home inspector who won’t try to sell you on hiring their firm to make indentified repairs. Then review their report with your real estate agent and focus on items that indicate major repairs and/or replacements.

10. Avoid closing the last week (and certainly the last Friday) of the month, if possible. Everyone is trying to get their sales closed by the end of the month, which means overworked title companies, lenders, etc. Better to close a week early and have more time for the move. Also, if there is a last minute glitch, you'll have time to get it fixed.

11. Try not to let your emotions guide your decision-making process. Buyer’s remorse happens to nearly every home buyer. Accept that it is a normal emotion and don’t let it distract you too much.

12. Make this home buying experience an opportunity to learn. If you have questions, ask them. Chances are you'll buy and sell several homes during your lifetime.

Tips based on feedback from Assist-2-Sell franchise owners and brokers. Assist-2-Sell is a full-service discount real estate company with more than 550 offices throughout the United States and Canada. The company offers full brokerage services to home buyers and home sellers. Find an office at www.assist2sell.com.

How to Get your Dream Home

If your dream house is on the verge of becoming a reality, make sure you don?t make any huge blunders that will turn it into a nightmare.

Pick the Right Lender
Shop between banks and mortgage companies to find the best percentage rate and best loan terms. A little research can save you thousands over the long haul.
Get Pre-Approved.  Talk to your banker or selected mortgage lender and get pre-approved for your loan. It’s best if you know what you can afford before you start shopping.

Bargain Shopping
The dream home is probably unrealistic, you know that so convince yourself of it by making a list of what you believe you cannot live without and what you?d like. Then, at the top of the list, make note of how much you were pre-approved for and start looking for a bargain.

Hire the Inspector
Even though it looks perfect and the seller assured you that everything is in perfect condition, spend that extra money to have the home inspected. It’s another preventative measure that can end up saving you thousands (if not more) when all is said and done.
Taking these steps will help you insure that your home purchase will be something that you love for a long time and will make you feel as if you’ve turned your dream into reality

Buying a Home: 12 Tips for Cruising From Contract to Closing

The spring home buying season is fast approaching and many people are preparing to take advantage of low interest rates and a great selection of well-priced homes.  Buying a home is exciting but it can also be overwhelming.  Here are some tips to make the process a little easier:

      1.            Get pre-approved (not just pre-qualified) for a mortgage before making an offer on a home or even doing a home search.  A pre-approved home buyer is effectively the same as a cash buyer, which makes you stronger in the eyes of the seller.

      2.            Deliver all requested documents (e.g. bank statements, pay stubs and landlord affidavits) to your lender in a timely manner. 

      3.            Check from time to time to make sure your lender has verified the details of your mortgage application—sometimes a little nudging from you is needed to keep the application moving along.   

      4.            Be careful not to do anything that may affect your mortgage application.  Remember, the lender can withdraw the approval if your situation changes substantially.  Don't apply for new credit cards, take out a loan or make any major purchases (like cars or furniture).  Also, now is not the time to change jobs.

      5.            Make sure you and your significant other are on the same page about neighborhoods, home price, home size, amenities, etc., before you start the home search.

      6.            Work closely with a real estate agent you trust and are comfortable with.  He or she will help you learn about the current market and home values so you'll be ready to act with confidence when the time comes to make an offer.  A purchase agreement is a binding contract.  The time to do research is before you sign on the dotted line.

      7.            Have confidence in yourself and in the professionals you chose to guide you.  It’s fine to seek guidance from trusted advisors, but once you make the decision to purchase a home, stop looking for confirmation that you’re doing the right thing.  Everyone has an opinion but unless they’ve done the research, like you, don’t rely on them for validation. 

Direct all communications through your real estate agent.  He or she will work with your lender, home inspector and other parties throughout the entire home buying process.   

      9.            Understand that no home is perfect and every purchase involves some compromise.  On resale homes, repairs or deferred maintenance may be necessary.  Hire an objective home inspector who won’t try to sell you on hiring their firm to make indentified repairs.  Then review their report with your real estate agent and focus on items that indicate major repairs and/or replacements.

10.               Avoid closing the last week (and certainly the last Friday) of the month, if possible.  Everyone is trying to get their sales closed by the end of the month, which means overworked title companies, lenders, etc.  Better to close a week early and have more time for the move.  Also, if there is a last minute glitch, you'll have time to get it fixed.   

11.              Try not to let your emotions guide your decision-making process.  Buyer’s remorse happens to nearly every home buyer.  Accept that it is a normal emotion and don’t let it distract you too much. 

12.               Make this home buying experience an opportunity to learn.  If you have questions, ask them.  Chances are you'll buy and sell several homes during your lifetime. 

Light At The End Of The Tunnel

Home foreclosures in Washoe County more than doubled in January from December and rose six-fold from a year earlier, a report released Thursday shows.

While the sum amounts to a fraction of a percent of the Reno-Sparks-Incline Village region's homes, the growth in foreclosures reflects a weakened economy and housing market in general, said Brian Kaiser, an analyst at the Center for Regional Studies in Reno.  And the trend follows the same path through all of 2007 that saw a 614 percent rise in foreclosures compared with 2006, Kaiser said.

"I don't believe that we will see a turnaround in the housing market until we first start seeing the foreclosure rate return to more historically normal levels," he said.

Using data from the Washoe County Assessor's Office, Kaiser's office calculated a total of 177 foreclosures of single-family homes and condominiums in Washoe in January, all but one in Reno-Sparks. That's up 113 percent from December's total of 83 and a 510 percent jump from 29 in January 2007.  By comparison, there were 169 sales of new and existing homes and 57 sales of condos countywide in January.

Among foreclosed properties, there were 58 sales in January, all in Reno-Sparks, up 20 percent from December and a 480 percent increase from a year earlier, the report showed.  Wayne Capurro, president of the Reno-Sparks Association of Realtors, said the rising number of foreclosures is holding back any market recovery as it adds to the inventory of homes for sale.

"It's great for buyers, but's really rough on sellers," he said.

But in the past month, Capurro said he's seen a "fairly substantial" increase in the number of pending sales of existing homes.

"If that continues to increase, we'll be able to possibly see the bottom of this thing," he said.

Speed up Home Sale in a Slow Market

JOE LOPEZ (online@rgj.com)
February 24, 2008

With so many amazing new homes on the market here in northern Nevada, many homeowners are looking to move up on the property ladder. By expending a bit of effort before it goes on the market, you can ensure that your home presents well, stands out from the crowd and doesn't turn off potential buyers so that you can sell quickly -- and at the best price.

Here are a few tips to improve the marketability of your current home:

Use a Realtor

A Realtor can help you in both the selling and buying processes by helping you determine a selling price for your current home and finding new homes that meet all of your needs. The Realtor will use professional tools and networks to market your home much more efficiently than you could do on your own. A Realtor also will provide you with current information about the marketplace, pricing and the condition of competing properties. A Realtor is an excellent source for community information such as utilities, zoning and schools.

Tone down personality

Your bookshelves may be filled with Pulitzer Prize winners and your collection of Americana figurines may reflect your personal interests, but to homebuyers, it looks busy and cluttered, and may distract them from truly seeing your home's unique architectural features and spacious rooms. Also consider whether family pictures help or hinder a sale. Future homeowners may not be able to look past your kids' smiling faces plastered all over the walls and see themselves building their own future in your home.

Since you hope to move soon anyway, go ahead and box them up and put them in storage.

While that red accent wall opposite the lime green fireplace perfectly ties in with your ultra-modern furniture, potential buyers at your open house may be turned off immediately and decide the entire house doesn't reflect their style. Consider painting walls a neutral color such as beige or taupe.

Don't burden buyer with repairs

If there are problem areas in your home, get them fixed before the showing. When prospective buyers tour the house and see leak stains on the ceiling or peeling paint, they also will see future work and assume that bigger maintenance and repair issues are lurking behind those small problems.

This particularly is true in kitchens and bathrooms, which often are the two rooms that make or break a sale. The expenses you incur on the front end sprucing up your home will be cheaper than the profits you could lose by having to lower the price to meet buyer demand.

For more helpful hints, contact the Builders Association of Northern Nevada at 329-4611 or online at www.thebuilders.com.

Maximize exposure

As I suggested earlier, use a professional Realtor. This really is the best way to get the most exposure for your home.

You also can take advantage of new technology to find different ways to market your house. Use Internet social networking sites such as Facebook or MySpace to create a Web link with a profile of your home. Include pictures and a description of your home's features. E-mail the link to your friends and ask them to forward it on to their network of contacts.

Joe Lopez is secretary for Builders Association of Northern Nevada.