New Regulations For Mortgage Lending..!

I think this is going to be interesting…if it actually goes through.

Folks take a look at this video from The National Real Estate Post.

New Fannie Mae Rules Defined

 

After you seen the video, Click Here to down load the rules if you want to see them for yourself.

 

In the mean time…?

Make it a Great Day…!

 

Ed Favinger, Broker, CRS, GRI, SFR, CDPE    916-203-1260     favinger@rwnetwork.com

 

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More Inventory – Higher Rates… A Connection…?

When Money Gets a Little Tighter… People Think A Little More.

I have some stats and graphs here from the METROLIST system that track some info over the last few months.

As you can see the AVERAGE PRICE PER SQ.FT. has gone up some over the last year or so.

These stats are for Folsom only..!

______________________________
avg price per sqfoot 8-27-13 from metro list

Below here you’ll see the AVERAGE DAYS ON MARKET for the same period shown above.

average days on market______________________________

I have an update….I just ran down the data for the Active for sale properties & the Pending Sales.  You know what… it looks a little interesting.

  • # Homes On For Sale Now…? 136
  • # Homes with Pending Sales (includes short sales pending approval)…? 122
  • Average Days On Market from Listing Date to “Pending Date”…?   30
  • Average Costs Per Sq. Foot…?  $211

So What Do You Think the Bottom Line is…?

If You Are a Seller – Don’t get discouraged just because it’s going to take a little longer to sell.  Remember this… Because Buyer’s are having to pay a little more in interest to get a loan,  you must have your home “priced right” because they are going to be a little more “selective” and you’re probably not going to see as many multiple offers.

By the way, what these stats don’t show are the “price changes” during the listing period.

If You Are a Buyer –  Hey it’s a great time because you don’t have to rush to get your offer in fear that you might lose out.   Yes… you are going to pay a higher interest rate for the loan, but you’re going to get a better deal on the pricing side especially if you have a motivated seller wanting to move up.

In the mean time…?

Make it a Great Day…!

Ed Favinger, Broker, CRS, GRI, SFR, CDPE     916-203-1260     favinger@rwnetwork.com

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Home Protection Plans Getting Tough on Claims…!

For Big Ticket Items, You’d Better Beware and Don’t Take the Short Cuts

First American

Home Protection Plans have been around as long as I’ve been in the Real Estate business and I’ve made them part of just about every Real Estate transaction I’ve been involved in.

They are useful if you want to try and keep your “repair costs” down.   I always recommended this service whether you are a Home Buyer or a Real Estate Investor and you’re buying a property that is not brand new construction.

Fidelity Home Protection

 

Did you notice I didn’t say “maintenance”…?  That has always been your responsibility..!

 

I’ve Noticed Some Changes Recently

It seems to be an industry trend because I’m getting the same treatment from more than one company and that is, they are closely scrutinizing service calls,  especially for HVAC  systems.

I have an old friend who is a long time Escrow Officer for First American Title Insurance Company which owns First American Home Buyer’s Protection.   She purchased a Duplex in Roseville through me in 2005 and we have been managing it ever since.   On a recent service call for one of the air conditioners, First American H.B.P.Corp demanded to see a recent receipt from the owner that we had actually completed a “routine” servicing of each of the units…. BEFORE THEY WOULD GO OUT.

Luckily we had done that because they weren’t going to complete any repairs if we hadn’t.
It also didn’t matter that she was a 35 year employee of First American Title.  You’d think in that case there’d be some “dispensation”, however, there was no sympathy even for her.

In another case, Fidelity National Home Warranty, was reluctant to make repairs even though my client had purchased the property almost a year ago.   They wanted to see if we had completed a “home inspection” prior to the purchase which we had not done.   We did however have the Air Conditioners inspected prior to close.

My suggestion is if you are going to purchase a home or an investment property be sure to:

  • Have any Heating and Air Conditioning unit inspected before you close escrow.  
  • Have it serviced annually.    

If you don’t do the above…?   You might be on the “short end of the stick” as they say and be stuck with an expensive repair.  They are now looking for a way to deny your claim if they can show you didn’t maintain it.

You don’t want to have an argument with them if it’s 110 outside and you need service.  You don’t want to be a Landlord and your tenant calls up with a service request for a non working unit.   They won’t care about your relationship with the Home Protection Plan company, they want it fixed NOW…!

By the way… if you need services for your HVAC system, call or email me and I’ll give you the names of some people we use that are very reasonable because we deal with this a lot as part of our Property Management business.

In the mean time…?

Make it a Great Day..!

Ed Favinger, Broker, CRS, GRI, SFR, CDPE     favinger@rwnetwork.com    916-203-1260

 

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More Inventory of Duplexes – Not Bank Owned – Traditional Sales

Been Looking for a Duplex…?  I’ve got a few profiled below…!!

I’ve been out and about the last few days looking at property.   I have noticed with the rise in interest rates, some buyer resistance exists at the higher prices some of the Sellers of these duplexes have thrown out there.

Below you’ll find some properties that are currently rented.   I’ve provided a proforma cash flow analysis of each one, with what I think they should sell and rent for.  In addition I’ve added a short slide show/video of the exterior of each property and immediate surroundings.

I hope you find this useful and informative.   Let me know what you think.

I’ll have more later… hopefully today.    The ones above though are pretty decent,  given the rise interest rates.   As I wrote above, I do think some of these sellers are asking a lot when you factor in the rents are low in most of them and there may not have been any updates/upgrades.   I have not seen any of the interiors so it’s difficult to tell their real condition.

I’ll be out looking at more property in the next few days so come back soon.

 

In the mean time…?

Make it a great day…!

 

Ed Favinger, Broker CRS, GRI, SFR, CDPE     916-203-1260    favinger@rwnetwork.com

 

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