D.S.News.com reports that Capital Economics experts predict that the housing crisis will end this year.  The primary reason is that banks are loosening credit standards. You no longer have to be Donald Trump to buy a basic home!

Five years ago buyers could qualify for a loan when their FICO credit score was in the mid to low 500s. (Fair Isacc Corporation developed a formula to apply to an individuals credit history which predicts the likelihood of a that borrower being 90 days late on their mortgage payment. The scores range from 300 to 850) The factors considered are: 1) payment history, 2) credit history length, 3) Recent searches of their credit record, 4) Other factors, such as types of credit used, recent improvements or declines, court or tax liens…)  It now takes a FICO score of 700 to qualify for a mortgage loan.

During the housing spike, one could obtain a loan for 100% of the purchase price.  In the past year, few borrowers could get a loan for more than 75% of that purchase price.  Lenders have recently loosened that requirement and most are back to a loan of 80% of the purchase price if other factors pass muster.

Lenders are also now lending amounts of up to 3.5 times a borrower’s annual income, up from 3.2 times in recent years.

The days of 100% financing and “liars loans” are long gone.  Borrowers still have to meet stringent standards to qualify for financing.  The good news is that lenders are loosening up on most of those standards a little bit at a time.

The lenders are being very cautious, however, they have new loans to stay in business, so the market is slowly righting itself.

Select this link for the full DS News story:

http://www.linkedin.com/news?actionBar=&articleID=5567733516482908167&ids=dj8QdP4Ud3gQdzsRe34OejoRdiMRcPkVdjgUdzgUczkRdPsUdzkRb3sOdj8RdjAPcz0UcPcVdPASdjkIczsQejcRcj4Oej8TdPwQdPoRdiMTdz4Uc3AOe3gScjkPcPsTdzkR&aag=true&freq=weekly&trk=eml-tod2-b-ttl-0&ut=1jY48NKE9SMB41

If you have questions about obtaining a loan, feel free to call or text (916) 337-0658 or e-mail Mike@BuyYourVilla.com .

This is one in a series of brief videos designed to provide buyers and sellers information about the sale and purchase of real estate.  The data provided helps people better understand the market place and the process of buying or selling.  The tips are offered so that you can leverage your position in that purchase process.  Knowledge is power, or at least a tool with which to increase your chances of success.

If you are thinking of buying or selling in our area, we will be happy to assist.  Just call (916) 337-0658, text or e-mail us at Mike@BuyYourVilla.com.

This short video is designed to give those buyers a feel for the area. 

Serrano is a planned unit development just north of Highway 50 in El Dorado Hills.  It consists of a series of gated villages anchored by the Serrano Visitor’s Center.  The homes range from upscale tract homes, thorugh semi-custom to custom built homes and range in price from the low three uundred thousands to those above a million dollars.  The schools are excellent and Serrano includes an award winning golf course.

Enjoy the video and feel free to call, e-mail or text if you have any questions about homes in Serrano, El Dorado Hills or other towns in our beautiful area.

El Dorado Hills is a beautiful area, an ideal location to raise a family and meet life’s challenges.  Since El Dorado Hills is a bedroom community, there are many fine homes from which to choose at any given time.

A prudent buyer will investigate an area before they decide if it is right for them.  They will also learn as much as they can about the local real estate market.  The purpose of this post is to provide home sales data for single-family homes in El Dorado Hills.

Contrary to all of the media hype about the “national” real estate market, real estate markets are local and one can be very different from another.

For those of you who remember your Economics 101 class, the laws of supply and demand still apply, especially in the real estate market.  One of the statistics Realtors® monitor carefully is supply, or the inventory of homes available on the market.  

Pundits consider a six-month supply to be a neutral market.  An inventory of less than six-months is a seller’s market and an inventory of more than six-months is a buyer’s market.

The graph below provides the inventory data for El Dorado Hills for the past 15-months. You can see that there were two months in which the inventory level exceeded a six-month supply, both at the beginning of last year.  Homeowners are reluctant to put their homes on the market when sales prices are low.

The second graph lists the actual price per square foot that single-family homes sold for in each of the past 15-months. This is an important statistic to Realtors®, one used to determine to value of any specific property.

Naturally, there are fluctuations but there is no measurable trend.  We submit that the price point is bumping along at the bottom of the market. 

We can provide this data for any town in our seven county areas.  If you have an interest in a specific home, we will be happy to help you determine a value and assist you in getting the best possible deal.  Call (916) 337-0658 or e-mail Mike@BuyYourVilla.com

This posting is the forth in a series designed to help take the mystery out of the home buying and selling process.  That process can be confusing and, since it pertains to the single most expensive asset most of us have, our home; we feel that our clients are better prepared for the experience if they have some understanding of each step in the process in advance. 

If you have reached this point in the purchase of any real estate, congratulations, you are in the home stretch.  The seller has met all of your requirements and, with the exception of the loan, you have met theirs. You will have received final approval of your loan, completed all inspections, and reviewed and approved all inspection reports.

The deed of trust and the promissory note are two of the many documents that you will sign. The escrow officer will return all loan related documents to the lender, where they will be carefully reviewed.  The lender will fund the loan on the date of closing, sometimes the day before. 

The document signing usually takes place a few days before the recording of the transfer of title, and escrow is closed.  The escrow officer will have informed you about the exact amount of the funds you have to bring to close the transaction.

The signing usually takes between an hour and an hour and one half to complete, so make sure you set aside enough time.

Funds must be in the form of a certified check, or you can wire transfer them directly into escrow.  Sorry, no personal checks, cash or credit cards may be used. 

Don’t forget to bring identification.  Most people use a driver’s license or passport.  The person who conducts the signing is a notary and must notarize many of the documents.   

 First American produced a straightforward video that is easy to understand.  If, after you view the video, you have questions, please feel free to call, text (916) 337-0658, or e-mail Mike@BuyYourVilla.com for clarification. 

This posting is the first in a series designed to help take the mystery out of the home buying and selling process.  That process can be confusing and, since it pertains to the single most expensive asset most of us own, our home; we feel it best to provide our clients with an understanding of the process before it starts. 

The second posting and video in the series covers title insurance.  Title insurance is one of many types of insurance with which a homebuyer must deal.

Just as you have insurance on your automobile protecting you against a loss in an accident and hazard insurance for your home in case of fire or disaster, title insurance protects a homeowner against obscure or unforeseen issues from the past that could endanger your title (ownership of the property).

Title insurance only exists in the United States and a few other first world countries. In most of the world when you purchase real property, there is a danger that you could lose that property because of the actions of the past owners.

In the United States when you purchase property, you also purchase a title insurance policy. If, at some later date, issues arise, such as unpaid taxes, forged documents during a past transfer of the property or mechanics liens because a former owner failed to pay a contractor, title insurance protects you, the owner, and ensures that you do not lose your property as a result.

First American produced this straightforward video that is easy to understand.  If, after you view the video, you have questions, please feel free to call, text (916) 337-0658, or e-mail Mike@BuyYourVilla.com for clarification.

This posting is the first in a series designed to help take the mystery out of the home buying and selling process. That process can be confusing and, since it pertains to the single most expensive asset most of us have, our home; we feel that our clients are better prepared for the experience if they have some understanding of each step in the process in advance.

The first posting and video in the series covers escrow. A licensed, neutral third party that handles the many documents and all of the money involved in the purchase, sale or refinancing of real property. The escrow officer must follow all of the written instructions provided by the parties to the transaction. Once a buyer’s deposit earnest money or other funds into the escrow account, both the buyer and seller must agree to any action that the escrow officer can take with respect to those funds.

In essence, escrow protects all parties to the transaction.

First American produced this straightforward video that is easy to understand. If, after you view the video, you have questions, please feel free to call, text (916) 337-0658, or e-mail Mike@BuyYourVilla.com for clarification.

What is the MLS?  The MLS (Multiple Listing Service) is an organization that collects the data for all residential properties listed by real estate brokerages in a specific geographical area. There are many different MLS’s, one for each area of the country.  Although they all perform the same function, there are differences between them that are more apparent to the Realtors® who are members than to the public.

When a Realtor® lists a property for sale, they enter the listing (all the pertinent data about that property) into their local MLS, which notifies all of the other Realtor® members of that MLS that the property is available for sale. That listing Realtor® is required to keep all pertinent data about that property current in their MLS. In essence, the MLS data is the most accurate database available for properties that are for sale in that area.

Other Realtor® members of that MLS use the data on available properties to help buyers review and select properties they may wish to buy.

There is considerable data on each property and Realtors® have many ways to search and sort the available listings in order to zero in on the specifics that a buyer is looking for.

MLS organizations are particular about how their data is used and who they allow to use that data.  They have strict guidelines, which they enforce.  Their efforts result in high quality data that is not available on many property search web sites.  Realtor® members of an MLS may provide the data to their client base, or the public, if they meet the requirements of their MLS.

The property search data available on www.BuyYourVilla.com is an example of that high quality data.  The system automatically updates the data daily so that users do not spend their time looking at SOLD properties or those that are no longer available for sale.

Many large property search web sites do not have these high quality MLS feeds. Their data comes from different sources.  Some charge Realtors® for the privilege of entering listings.  Realtors® do so in an attempt to maximize exposure for their listings.  There seldom is a requirement to keep the data current. Properties that have been on off the market for months or years may still show up on those sites.

Anyone seriously considering a purchase should be selective when choosing a property search web site.  Sorting through useless data can be frustrating.

If you find a property that you feel may be worth a look, feel free to contact us at (916) 337-0658 (or text us) and we will be happy to review the property for you and, if necessary, arrange for a visit.  Happy Searching!

This is the latest monthly report of a four-year study of bank owned home sales in El Dorado Hills, CA.  This report covers December 2011.

There were six bank owned homes sold in El Dorado Hills in December, down one from the previous month.  A low inventory is the primary reason.

The average days-on-market increased from 29 in November to 79 in December.  One of the homes had been on the market for over 100 days.  Some old inventory was cleared out.  None of the homes that sold had been on the market for two weeks or less, which is very unusual.

The six bank owned homes that sold represent only 8% of ALL homes sold in El Dorado Hills this month.  This is a much smaller segment than normal, despite the increase in inventory.

The available inventory of bank owned homes in El Dorado Hills spiked at a 2.4-month supply in December, the second highest inventory level in 2011…  The available inventory for ALL homes available dropped from a 2.9-month supply the previous month to a 2.2-month supply in December, the lowest inventory level in 2011.  Pundits advise that a 6-month supply is a neutral market, so we are still looking at a strong seller’s market for ALL homes in El Dorado Hills. 

The average cost-per-square-foot for Bank Owned homes was $ 150 in December, up considerably from $ 126 in the previous month, and the highest in the past fifteen months. The average cost-per-square-foot for ALL homes sold in El Dorado Hills in December remained $ 153 for the second month in a row.   

The overall sales price for bank owned homes was 94.9% of the final asking price and 87% of the original asking price.  Only one of the buyers paid the full asking price in December.  The banks did not do a very good job of estimating the market value of their “toxic Assets” that sold in December.

Bank owned homebuyers paid 98% of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for ALL homes sold in December.  That is only $ 3 pre-square-foot savings.  When applied to a 2500 square foot home that represents a savings of $ 7,500, much less than usual. 

If you have any questions about purchasing any home in El Dorado Hills, an El Dorado Hills Bank Owned Home, or a Bank Owned Home anywhere in the area, feel free to give us a call (916) 337-0658.

The data follows:

This is the latest monthly report of a four-year study of bank owned (REO) home sales in Folsom, CA.  This report covers December 2011.

There were 16 REO homes sold in Folsom this month, up from 12 the previous month.

The average days-on-market increased from 49 the previous month to 67 in December. Two of the homes had been on the market for over 200 days and two others had been on the market for over 100 days.  Obviously, some of the old inventory was cleared out. However, 38% of the homes that sold were on the market for two weeks or less, proving once again that well priced homes in good condition sell quickly.

The 16 REO homes that sold represent 23% of all homes sold in Folsom this month.  The very low bank owned home inventory is one reason for this statistic.

The available inventory of bank owned homes in Folsom dropped to a 7-month supply, the lowest inventory level of bank owned homes in the past 15 months.  The inventory for bank owned homes in Folsom peaked at a 2.8-month supply in January and has steadily declined since. The available inventory for ALL homes available decreased to a 1.6-month supply, down from a 2-month supply the previous month.  Pundits tell us that a 6-month supply is neutral market, so Folsom remains a strong seller’s market for both bank owned homes and all other homes on the market.

The average cost-per-square-foot for bank owned homes was $ 141 in December, unchanged from November. The average cost-per-square-foot for ALL homes sold in Folsom in December was $ 157, up one dollar from the previous month.  It has been moving within a narrow range for the past year.   

The overall sales price for REO homes was 96.50% of the final asking price and 89.38% of the original asking price.  Both of these numbers are lower than usual.  The 89.38% number is a reflection of the banks ability to judge the true market value of their “toxic assets.” They did not do well on those homes sold in December.  In addition, only 32% of the buyers paid the asking price, or more, for their bank owned homes in December.  That too is lower than usual.

Based on the cost-per-square-foot statistic, bank owned homebuyers paid 10% less for their home than did buyers of non-bank owned homes in December. When we apply that to a 2500 square foot home, it represents a savings of $ 40,000: a considerable savings.    

If you have any questions about purchasing a home in Folsom, a Folsom REO, or an REO anywhere in the area, feel free to give us a call (916) 337-0658.

The Data Follows: