Feeling Trapped by your Mortgage?

June 6, 2011 By Michael

Break Free From Unaffordable Mortgage Payments!

A recent study in Nevada (a state that holds the nation’s highest foreclosure rate), found that only 5% of distressed homeowners knew they had alternatives to foreclosure, and only 3% took advantage of them. It was also found the 1 in 4 homeowners chose to “strategically default,” or allow their homes to be foreclosed upon on purpose!

Clearly, too few distressed homeowners know their options and the fallout of foreclosure. If they did, they’d soon realize that there’s nothing ‘strategic’ about foreclosure, and that avoiding foreclosure is always the best plan to create financial stability.

Millions of Americans feel alone and trapped by mortgage payments they can no longer afford. In fact, 27% of Americans with mortgages now owe more than what their home is worth. However, more and more of them are finding education on the responsible alternatives to foreclosure is helping them move toward financial stability.

The Latest Bay Area Real Estate Sales Statistics (Source: DataQuick, www.DQNews.com)

Education is key.

The more distressed homeowners know about solutions, the more likely they are to overcome their financial challenges. I’ve seen this firsthand.

I can help with the education part—it’s up to you to contact me!

In the meantime, you can download my report on this topic HERE.

Filed Under: Featured Properties Tagged With: Foreclosure, Loan Modification, Market Statistics, Mortgage, Short Sale, Under Water

Rental Prices Are About to Blast Off

April 18, 2011 By Michael

Thanks to the KCM Blog for this article!

We are often asked whether it is better to rent or buy in the current housing market. The answer to that question is: “It all depends”. There are certain situations where renting short term probably makes sense. It may make sense if you are retiring to a different region of the country and are not yet sure where you want to set down roots for the next 25 years. It may make sense if you have a one year employment contract which will probably require a move to another place upon termination.

However, in most other cases, renting right now makes little sense for several reasons.

Even though prices may still soften, waiting to buy makes no sense as the cost of owning a home may still increase.
Mortgages may soon become much more expensive than they are right now.
Owning a home is less expensive than renting a home in 72% of major U.S. cities.
Rental costs are about to explode.

Let’s take a closer look at the last reason. We have often said that the cost of anything is based on supply and demand. The number of widgets for sale and the number of widget buyers together create the price for widgets. That will also apply to rents. There is a much larger demand for rentals right now. The economy has forced many to leave their foreclosed homes and other buyers are afraid to plunge into homeownership.

At the same time, the supply of rentals is rapidly decreasing. Here is a graph from Calculated Risk showing the apartment vacancy rate in the United States:

When supply is rapidly decreasing and demand is quickly increasing, prices have only one place to go – and that is UP! That is exactly where rental prices are headed.

Bottom Line

Is now a good time to rent? We think not. You can buy a home today at a discounted price and get a 30 year mortgage at a historically low interest rate. You can set your housing expense for the next thirty years. On the other hand, rental costs are poised to increase for years to come.

Thanks to the KCM Blog for this article!

Filed Under: News Tagged With: Buyer, Market Statistics, Market Timing, rental

Housing Double Dip? Not a Bad Thing.

March 3, 2011 By Michael

Why I think the double dip housing economy is not a bad thing: The S&P Case-Shiller Home Price Index showed that 18 of 20 markets in the nation experienced (or came very close to) a double dip.

I don’t think it’s necessarily a bad thing. Why? It gives home buyers a second shot at buying a home at near term historic lows; and that’s in addition to the near historic low interest rates. This is not marketing BS, it’s just statistics. Go research the data to verify.

I wouldn’t be waiting around for a third dip, as I honestly don’t see it happening. As distressed properties gradually get flushed out of the system, it will provide renewed housing price support. So we are at critical crossroads now.

I gave you the knowledge, now go make something of it! And of course, if you’re located here in the San Francisco Bay Area and have additional questions, or want to know where some great deals are to be found, just drop me a line, I’m easy to find.

Filed Under: Featured Properties, News, Video Clip Tagged With: Bargain, Case Shiller, Consumer Tip, double dip, homebuyer, Market Statistics, Market Timing, video

Dublin CA: Recent and 5 Year Housing Statistics

January 26, 2011 By Michael

Market statistics in Dublin CA. Reporting on housing statistics over the past years, and the past 2 quarters.
Thanks to Kevin from Dublin, CA for the question.

Here are the 5 most recent properties listed for sale in Dublin, Ca:

Showing properties 1 - 5 of 92. See more Dublin-All.
(all data current as of 2/8/2012)

$350,000 : 8647 GALINDO DR, DUBLIN

3 beds, 2 full baths

Home size: 1,038 sq ft

Lot size: 7,063 sq ft

Year built: 1961

Parking spots: 2

Days on market: 2
$1,049,000 : 5662 W COG HILL TERRACE, DUBLIN

5 beds, 4 full, 1 part baths

Home size: 3,595 sq ft

Lot size: 5,662 sq ft

Year built: 2005

Parking spots: 3

Days on market: 2
$299,000 : 7856 GATE WAY, DUBLIN

3 beds, 2 full, 1 part baths

Home size: 1,434 sq ft

Lot size: 1,306 sq ft

Year built: 1988

Parking spots: 2

Days on market: 3
$528,000 : 983 Springview, SAN RAMON

3 beds, 2 full, 1 part baths

Home size: 1,887 sq ft

Lot size: 3,049 sq ft

Year built: 1989

Parking spots: 2

Days on market: 6
$305,000 : 3465 DUBLIN BLVD, Unit: 116, DUBLIN

2 beds, 2 full baths

Home size: 1,066 sq ft

Year built: 2007

Parking spots: 2

Days on market: 7

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Filed Under: Video Clip Tagged With: dublin, dublin ranch, housing, Market Statistics, sales, video

Fremont CA Foreclosure Sales Statistics: 2 Year Comparison

January 19, 2011 By Michael

Comparing the percentage of regular sales vs foreclosure sales in Fremont from January 2009 through December 2010. Short Sale statistics thrown in for good measure too. Thanks to Joel Valencia of CalCoast Financial for submitting this question in behalf of his client Chandra!

Here are a few Fremont REO listings to get you started. Message me for more a more specific search.

Showing properties 1 - 5 of 29. See more Fremont REO's Detached Homes.
(all data current as of 2/8/2012)

$324,900 : 36329 PIZARRO DRIVE, FREMONT

3 beds, 2 full baths

Home size: 1,168 sq ft

Lot size: 435 sq ft

Year built: 1955

Parking spots: 2

Days on market: 2
$360,000 : 39960 MICHELLE ST, FREMONT

4 beds, 3 full baths

Home size: 1,350 sq ft

Lot size: 5,999 sq ft

Year built: 1958

Parking spots: 2

Days on market: 3
$275,000 : 33186 Lake Pyramid St, FREMONT

3 beds, 2 full baths

Home size: 1,060 sq ft

Lot size: 3,092 sq ft

Year built: 1969

Parking spots: 2

Days on market: 3
$515,900 : 3106 ORWELL PL, FREMONT

4 beds, 2 full baths

Home size: 1,714 sq ft

Lot size: 7,385 sq ft

Year built: 1972

Parking spots: 2

Days on market: 7
$309,900 : 6196 LAFAYETTE AVE, NEWARK

3 beds, 2 full baths

Home size: 1,134 sq ft

Lot size: 7,187 sq ft

Year built: 1962

Parking spots: 2

Days on market: 7

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Filed Under: Video Clip Tagged With: Bank Owned, Bank Owned Listings, CA, comparison, December, Fremont, January, Market Statistics, REO, Short Sale, video

The 9 Steps to Home Ownership

April 28, 2006 By Michael Koenig

Step – 1 Make the Decision to Buy

It seems obvious, but it’s good to note that the first step to buying a house is making the decision to buy. Consider the reasons you want a new house and write them down. Determine how long you want to live in the new house does buying still make good financial sense? Can you afford a house that will meet your list of requirements? A good rule of thumb is your mortgage payment should not exceed 1/3 of your net monthly income.

Step 2 – Seek Professional Guidance

I’d like to schedule a time to meet with you to hear the reasons you want to buy a house and your plans for the future. We’ll talk about neighborhoods, schools, economic factors liable to affect the market today and tomorrow, as well as how you would like your house and neighborhood to grow with you.At this time, I will also help you get pre-qualified for a mortgage loan. Pre-qualification is a written statement from a loan officer indicating his or her opinion that you will be approved for a mortgage loan up to a certain amount. The fact that you are pre-qualified will help us when we are negotiating the deal.

Step 3 – Begin the Hunt

After our initial meeting, I’ll search all my resources for houses on the market that fit your criteria. I’ll preview these houses to eliminate the duds. Then, I’ll schedule appointments to tour the houses at times convenient to you.As we tour houses, I’ll point out positive features and negative features. I’ll ask you to tell me what you like and what you don’t like. You’ll probably amend your “wish list” as we tour houses, some things will become more important and others less important. With this new information, I’ll refine our search criteria to narrow in on the house of your dreams.

Step 4 – Know the Market

My knowledge of the local market is an essential factor in the house search. I’ll let you know when the market in a particular neighborhood is “hot” and requires immediate action or when the market is “cool” and allows for thoughtful consideration.As we tour houses, I’ll let you know when the asking price has negotiating room and when the house is “priced to sell”. My unique market knowledge will keep you a step ahead of the “house hunting competition”.

In a “seller’s market”. It is not unusual to see multiple offers on a property, full-price offers and even above-price offers. On the flip side, during a “buyer’s market” there are more houses for sale than buyers. This gives us more negotiating room as houses are taking longer to sell.

Step 5 – Find Your Dream House

I’m confident we’ll find your dream house. When we do, I’ll put together the purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.).The offer is normally presented with “earnest money”. This is a cash deposit made to a home seller to secure an offer to buy the property. The amount is applied to closing costs. If the seller accepts the offer, generally closing is held 30 to 60 days from the offer date (generally dependent on the turn around time of your mortgage financing).

Step 6 – Negotiate the Deal

It is not uncommon to receive a counter offer when the initial purchase offer is submitted. Don’t let this discourage you. We will discuss the counter offer and decide whether or not to accept the counter offer, submit our own counter offer, or reject the counter offer and move on.Market conditions will play a role in how aggressively we negotiate the deal. We will also work within your limits. Emotions can lead to buyer’s remorse. It is better to set limits prior to negotiating an offer and stick to these limits.

Step 7 – Get a Loan

During the closing period, you will be working with your mortgage lender to close the loan. Since you pre-qualified for the loan before starting your home search, you will be that much closer to the end. I’ll gather the necessary property information your lender will need to close the loan.

Step 8 – Close the Deal

You will receive a “Good Faith Estimate” of closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer’s past experience and may not include all the closing costs. I will be glad to review the “Good Faith Estimate,” answering questions and highlighting missing costs and estimates I believe to be low.

Step 9 – Move In

Congratulations! It’s time to move into your new house and make it your home. Enjoy this exciting time. I’ll give you a checklist to help you remember the numerous details that will make your moving day a pleasure.