Should You Sell Your Home Now ... or wait?

"To be or not to be" that was Shakespeare's question, while todays question that many are asking me is, "To sell or not to sell".

While I cannot predict what our future holds, there are some questions that I can ask that can help you deicide if you should sell now ... or wait.

Question 1:
Do you HAVE to sell?
Obviously, if the answer is yes then call me and we'll sell your home.   But ...

Question 2:
Could you rent your home out instead of selling?
This is a good question to think about because if you have to move but you are "upside down" in your mortgage and you don't want to pay money in order to sell your home, or if you think you would like to try to hold on to your home and see if it's value goes up, then renting out your home could be your answer.

Which leads to the next big question on everyone's mind which is:  Is the real estate market going to keep going up?

We have certainly seen bidding wars during this 2012 season (see my article HERE telling how many bids are showing up on some houses) and we have no signs that the bidding wars are slowing down even as we head into the Thanksgiving/Christmas Season, but does that mean that 2013 will see a great increase in the prices of homes?

My personal opinion is that we will not see housing prices climb too quickly ... at least not like we got used to seeing in 2005.  The appraisers and banks, it seems, are bent on keeping the prices of houses in check this time around and so we are not seeing the prices of homes climb like one would think they would be doing when bidding wars are taking place on every single home that goes up for sale.

Sure, cash investors are jumping into the bidding wars and outbidding everyone else's bids by a few thousand dollars because they don't have to worry about getting an appraisal when paying all cash, but still these prices are not affecting the majority of prices of homes ... again, for fear that an appraisal will not come through.

And yes, there are a few brave Sellers who are indeed asking $20,000 or more over what their neighboring comps show support of, hoping that Buyers will be frustrated with the bidding wars enough to find the extra $20,000+ in their own pockets and pay the Sellers their price, thus avoiding dependance on the appraisers to give them the extra value for their Loan, but this has not proven to be very effective.  After all, most Buyers don't want to overpay too much on any home.  They just don't.  And so I'm watching some Sellers sit and wait on their over-inflated asking prices.

Homes are indeed SELLING FASTER right now than they have since our prices started declining in 2006 so now IS A GREAT time to sell, if you are able.  Bidding wars are in full-force so you won't have to have your home up For Sale very long if you are priced correctly, and with interest rates still at all time lows you could move on and get the next house of your dreams! A bigger home ... or the smaller home that you need ... at a really great price and with a great interest rate.

So generally speaking, YES this is a great time to sell your property.

Question 3:
But what if you owe more money on the home than what it could currently sell for?
Banks are still doing Loan Modifications if you are "underwater" and can't afford your current mortgage note yet you would like to stay living in your home or Banks are currently eager to allow the SHORT SALE of your house versus having to go to Foreclosure, as it means less time and less expense for the Bank.  So SHORT SELLING your house is another option for you to consider if you need to sell your home.  (Call me today to discuss a Short Sale of your home and BE SURE TO ASK ME about your Banks offer of anywhere from $3,000 to $30,000 when you sell your home by Short Sale!)

I know that selling a property can be a very confusing time and a very emotional time for many, so call me to discuss some of the points that I have brought up in this Article or to discuss your particular situation.  There are solutions and you may find that right now is a GREAT TIME TO SELL REAL ESTATE for you too.

Call me at:

LeeAnn Bell -- 661-309-2364

It is always my pleasure to answer all questions that you have and help you with your decision in any way that I can ... no pressure! 

Below is what one client had to say about working with me:

“I appreciate your professionalism and keeping me up-to-date throughout the process.  It was a real pleasure to work with you." - Lynn G.

Warning: New Veterans Scam

There is a current telephone SCAM taking place targeting Veterans. 

Our veterans are being telephoned and told that they can receive VA BENEFITS if the Veteran will simply send a check for either $500 or $1,000 to get the VA Benefits started.

DO NOT WRITE THIS CHECK and do not mail it to the person on the phone!  THIS IS A SCAM. 

Please call the local Santa Clarita Sheriff's Department at 661-255-1121 and give them any information you can about the Scam Telephone Call.

If you can get an address from the person on the phone, where they want a check to be mailed to, then please give that address to the Santa Clarita Sheriff's Department.

 * *

Information provided as a courtesy by LeeAnn Bell

For help buying or selling Real Estate in Santa Clarita please call 

LeeAnn at 661-309-2364

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Here is what one client had to say about working with me:

"Thank you for all of your patience.  You are the most gracious real estate agent I have worked with." 

- Billy P.

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LeeAnn Bell, REALTOR(R)
DRE License #01260650

The Benefits of a HomePath Loan

If you are currently in the Home Buying process, you may have noticed that some of the Bank Owned homes currently For Sale offer special HomePath Financing.  But what exactly is a HomePath Loan?

Bank Owned homes that offer HomePath Financing are Fannie Mae bank owned homes with Fannie Mae offering special financing to help people who may not have the conventional 10-20% Down Payment to purchase a home*.  There still are FHA Loans currently available for people who do not have this 10-20% saved up for their Down Payment, but if you have been trying to purchase a condo recently, you may have noticed that not many condominium complexes are FHA approved any longer and therefore 20% is the required Down Payment in such complexes!  (read my article about the FHA problem many condominium complexes are facing HERE).

(*Note: ask me for a list showing which properties are currently offering HomePath Financing in the Santa Clarita Valley and surrounding areas as not all Bank Owned properties offer this special HomePath Financing)

So, for those who can't find an FHA approved condo, or for those who don't qualify for the FHA program, a HomePath Loan could be of help to you.

Some benefits of a HomePath mortgage are:

• 3% down option that can be gifted from a close blood relative
• Flexible mortgage terms with fixed and adjustable rate options
• Interest only is available
• You can have as low as a 660 credit score
• You can get financing as an investor with 15% down
• No appraisal required
• No Mortgage Insurance 

No appraisal required?  That can be a great benefit in the current small "bubble" that we are again experiencing this Summer of 2012, as bidding wars continue (read my "bidding war" article HERE).

And although Fannie Mae is doing a great job in cleaning up most of the properties that they are selling, they even offer a Renovation Loan for certain properties to help you make your new Home even more liveable. 

Some benefits of a HomePath Renovation Loan are:

• 3% down option
• You can have as low as a 660 credit score
• You can get financing as an investor with 25% down
• An Appraisal is required on the renovation
• No Mortgage Insurance
• Cosmetic renovation up to $33,500 built in

The Fannie Mae website (HERE) reads:

Properties with this logo are eligible for HomePath Renovation Mortgage. HomePath Renovation Mortgage allows a buyer to purchase a property that requires light to moderate renovation. The one loan amount includes both the funds for the purchase and renovation — up to 35% of the as completed value, no more than $35,000. Available for owner occupants and investors.

The downside of taking a HomePath Loan is that their interest rate is between .5%–.625% higher than a regular conventional loan.  But I ask you, aren't today's current interest rates still some of the lowest we have seen in history?  So, if you don't have the conventional 10-20% saved up, but you really desire to purchase a home, condo, or townhome at the current low prices being offered, then why should a slightly higher HomePath interest rate frighten you?

I am not a Loan Officer ... I am a licensed REALTOR(R) in the State of California ... so I do not know all of the ins-and-outs or pros-and-cons that a HomePath Loan may or may not offer you, but please feel free to contact me for the name of a local Lender who can answer your questions!

At the time of my writing this Article, there are currently TEN HOMEPATH PROPERTIES For Sale in the City of Santa Clarita ... priced between $121,900 all the way up to $445,900!  Call me now, to find out where they are located or to see inside any of the properties!  It would be my pleasure to help get you into a property you can call "home" ... with as little as a 3% Down Payment!

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LeeAnn Bell, REALTOR(R)
Contact me at:
661-309-2364  or at  LeeAnnRealtor@yahoo.com
DRE License #01260650

Here is what one client had to say about working with me:

The best part I liked about working with you was your ability to always fulfill our requests for more information.  You always came prepared and you were courteous and helpful"

Millie R.

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(c) 2012 LeeAnn Bell

Real Estate Multiple Offers and Bidding Wars ... again!

Have you been out house hunting lately?  Are you surprised at hearing that multiple offers are coming in on the properties you are looking at?  Are you even more surprised to see that the offers on properties are more than the asking price ... again?

While this is nothing like the 2006 market where we were seeing the prices of all homes, condos, and town-homes climbing in price almost monthly, Realtors and their buyers are talking about the current bidding wars and slight price increases they are seeing this summer (2012) ... especially with the properties that are priced around $350K or lower (in the Santa Clarita Valley, at least).  And buyers are asking, "Why?"

The number one reason why we are seeing the multiple-offer-bidding-wars game return is:

Very Little Inventory

Along with historically low interest rates, there just simply is not enough inventory in this current market to meet the demand.

Why is there little inventory?  Because many sellers simply cannot sell yet.  Many sellers, who are making their mortgage payments, are still "underwater" and cannot sell at any profit so the majority of the homes that are coming on the market are the Short Sales or the Bank Owned/Foreclosed properties.

And little inventory is usually met with multiple offers.   And with multiple offers, there is usually a bidding up in offer prices. 

Buyers who write an offer or two, and loose in the multiple offer game, usually start bidding higher.  And sometimes even higher.

I recently sold a condo in Canyon Country, California where 7 offers came in on the condo, with two of the offers at $32,000 OVER the asking price.  $32,000!  I don't think any appraiser would justify that loan in this current market.  But some buyers are even willing to pony up their own money right now, when the appraisal doesn't support the winning offer amount.  And Investors, who pay with cash, don't need any appraisal at all, if they really want the property.

So with the multiple offers come the bidding wars ... and surprisingly soon to many, after the very recent collapse of our nation's housing market ... yet apparently this is happening in many areas of the nation and not just the Santa Clarita Valley.

Redfin recently had this to say about the matter:

Where’s the inventory? As banks have fewer foreclosures ready to sell, regular home-owners aren’t picking up the slack. In lieu of listing their home for sale, owners can re-finance the place — or just wait for the teaser rate on their 2007 loan to re-set at what has turned out to be a far-lower rate — then find a renter.

And finding a renter isn’t hard to do: after four years of short sales and foreclosures, an unprecedented number of Americans can only rent, not buy, regardless of price-to-rent ratios, just because of their low credit score. As a result, owners can get $300 more in rent than their mortgage payment, all while waiting a few years to see if prices improve. 

Redfin elsewhere reported:

“This townhouse was listed for $475,000 and has a $389/month homeowners fee,” said Redfin agent Miawand Bayan. “My clients offered $486,000, all cash with no contingencies and a ten-day closing. The result: The home was pending after seven days with 16 offers. It went to an all-cash buyer for over $520,000 with a seven-day closing and no contingencies. That’s $40,000-$50,000 over asking on a townhouse with a $400 per month HOA.” 

... and this ...

“My client offered $375,000 with 20% down, and was willing to cover $20,000 for a low appraisal with ten-day contingency, said Redfin agent Frank Wong. “The seller got 53 offers on the home, and the listing agent finally had to tell people to stop submitting offers.” 

Wow.  So buyers take note!  Your real estate agent isn't trying to get more money out of your pocket and into their own ... they are telling you the truth:  multiple offers and bidding wars are back ... at least in some areas and in certain price ranges.   It is another very interesting time in real estate!

For any questions regarding the above or if you are thinking about Buying or Selling Real Estate in the Santa Clarita Valley, 

feel free to call me at: 

LeeAnn Bell at 661-309-2364

Here is what one client had to say about working with me:

Given the difficulties this sale presented (the foundation was cracked) you offered every option, answered all questions, and explained all paperwork immediately.  I would not hesitate to refer you to my family and friends. 

- Gary R.

Read This Related Article: Historically Low Interest Rates make this a great time to buy real estate

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(c) 2012 LeeAnn Bell, REALTOR(R)
DRE License #01260650

Buying A House In Santa Clarita?

For my daily updated list of HOMES FOR SALE in Santa Clarita click on the TAB at the top of this page, entitled
HOMES FOR SALE IN SANTA CLARITA

 
Is it a good time to buy?

Buyers are still asking me that question, with some still nervous that the price of Real Estate could drop even further, with new Buyers loosing equity, even though housing prices are the lowest they've been in years!!!

What do I say to that question?  My usual answer is, "Of course it is a GREAT time to purchase property!"

With interest rates the lowest they've been in History, it is an awesome time to purchase property! (Mortgage rates hit a new low: 30-year fixed at 3.87% - February 2, 2012 Article found HERE).
But if you are a Buyer who is interested in purchasing property, just be aware that of course prices could drop lower.  I don't have a crystal ball to read the future, but consider these two questions:

If you are going to live in the property, with the current interest rates being so low, would your new mortgage note be less than what you are paying in rent?  Or, if you are going to rent the property out, will you actually make some money every month because the interest rates AND purchase prices are so low?  (read my TIPS FOR POTENTIAL LANDLORDS TO CONSIDER BEFORE PURCHASING)  It is quite possible that the answer to either of these questions is, "Yes!"  

Of course, I am not posting anything here that is brilliantly new regarding Real Estate, but with the number of First Time Home Buyers still seemingly squeamish about putting their hard earned cash into this kind of investment, I thought I would remind everyone about the historically low interest rates, along with the below Article reminding us that the purchase prices are also at the lowest in twenty years in some places!

So what is holding you back?  Give me a call to talk it over and let's see if buying your first property (or second or third) could be the right thing for you to do:

LeeAnn Bell,

REALTOR(R)
661-309-2364

DRE License #01260650

NEW YORK (CNNMoney) -- Buying a home is now more affordable than it has been in the last twenty years.
By Les Christie @CNNMoney February 17, 2012: 12:10 PM ET

Thanks to continued declines in home prices and rock-bottom mortgage rates, the National Association of Home Builders/Wells Fargo Housing Opportunity Index hit a record level of affordability.

According to the index, 75.9% of all new and existing homes sold during the three months ended Dec. 31 could have been comfortably purchased by families earning the national median income of $64,200.

That was the highest percentage recorded in the 20-year history of the index, and a sharp increase from just three months earlier when 72.9% of all homes sold were considered affordable.

(Read the full Article HERE)

For all of your Real Estate questions,  do not hesitate to call or email me:
LeeAnn Bell, 661-309-2364
LeeAnnRealtor@Yahoo.com 

Here is what just one of my clients has said about working with me:

"Thank you for your help and patience in my search for the right house.  I would not hesitate to recommend you to my friends or relatives." 

-Rachel S. 

(c) 2012 LeeAnn Bell
All Comments Welcomed

FHA says: FLIP THAT HOUSE

Good news for investors in 2012. 

The Federal Housing Administration has announced that they will extend their waiver of its "anti-flipping regulations through 2012".   See the full news article below: 

For my daily updated list of HOMES FOR SALE in Santa Clarita click on the TAB at the top of this page, entitled
HOMES FOR SALE IN SANTA CLARITA

By Les Christie @CNNMoney January 2, 2012: 10:48 AM ET 


NEW YORK (CNNMoney) -- Flippers, the real estate investors who buy homes on the cheap and quickly resell them at a profit, just got a reprieve from the Federal Housing Administration.
In an effort to help stabilize housing prices and unload some of the foreclosures that are flooding low-income communities, the mortgage insurer extended a waiver of its anti-flipping regulations through 2012.



The waiver, which was initially issued in 2010 and set to expire this month, suspends regulations that prohibit the agency from insuring mortgages used to purchase homes that are bought and resold in less than 90 days. 


"This extension is intended to accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight," said Acting Federal Housing Administration Commissioner Carol Galante. 


Low-income neighborhoods are particularly plagued by foreclosed homes that lower property values and act as magnets for crime and other social ills. Real estate flippers often rehab these damaged homes before reselling them, improving conditions for neighborhoods. 

The FHA, which does not issue mortgages but insures them, is a primary player when it comes to mortgage lending in low-income communities. Many loans in these communities could not be issued without FHA backing. 


The ban against flipping was initially put in place to prevent predatory flipping, in which homes are quickly resold at inflated prices to unsuspecting borrowers. 


In order to qualify for the waiver, certain conditions must be met. The transaction must be "arms length" with no other relationship between seller and buyer. 


In addition, if the new sale price is 20% or more above the previous selling price, the lender has to document and justify the increase and meet other conditions, such as making sure the home has been inspected. 


Since the waiver went into effect in February of 2010, the FHA has insured more than 42,000 loans to purchase homes that were being resold within 90 days. These totaled more than $7 billion in mortgage principal.

 Original Article found HERE



Whether you are planning on "flipping" a house, or thinking about buying some property to rent out, now really is still a great time to do so because of the current low interest rates.  Call me today and lets talk about which areas could be the right fit for you:  LeeAnn Bell, 661-309-2364.

Below is what one previous client had to say about working with me:

"We really like that you had patience with us and explained everything to where we understood it.  You also pointed out things that were wrong with the house that we didn't see, showing your honesty to protect us and not just close the deal."

- Chuck and Teresa M., buyers

LeeAnn Bell,  REALTOR(R)

DRE License #01260650

SantaClaritaRE@gmail.com

(c) 2012 LeeAnn Bell