Real Estate

Home Buying Paralysis? Tips for Getting the Best Deal Faster


The inventory of homes for sale has increased in recent months, causing some buyers to hesitate before making an offer on a home for fear a better home at a more favorable price will become available.

  • Although real estate agents are showing more homes to clients, people still are buying homes, especially first-time buyers.  According to the latest figures from the NATIONAL ASSOCIATION OF REALTORS® (NAR), first-time buyers now account for 50 percent of all home sales.
  • Some agents claim that today’s buyers are having a problem staying committed to the home search.  During the height of the market, home buyers were more apt to make housing hunting a priority and to move on a good deal.  Real estate experts advise today’s home buyers do the same to be successful in their home search.
  • Making a list of “musts” and “wants” for home features will help home buyers narrow down the search.  Identifying key features, such as the number of bedrooms or bathrooms, will help buyers avoid being overwhelmed by the number of homes available.
  • Buyers are best advised to work with a REALTOR® who is familiar with the area.  Media reports that home prices will decline further may be true for some areas, but not necessarily in all areas.  All real estate is local, so finding out what’s happening in a specific neighborhood is most helpful.

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For all your real estate needs Call
John J. O’Dell
Real Estate Broker
(530) 263-1091

DRE#00996641

Real Estate

A Little Known Strategy for Cutting Mortgage Payments

Merlin The Dog Photo by Cheeriotown
Merlin The Dog Photo by Cheeriotown

Homeowners looking to lower their monthly mortgage payments and reduce their interest rate may be able to do so without refinancing.  A little-known strategy called recasting or re-amortization is available through some mortgage lenders and servicers, and eliminates the hefty fees and daunting credit requirements of refinancing.

  • Re-amortization requires borrowers pay off a lump sum of the principal amount on the mortgage and asking to have the monthly payments reset according to the original interest rate and loan terms.  The lump sum reduces the principal, so the new monthly payments decrease slightly and interest paid over the life of the loan is reduced.
  • Lenders typically charge an administrative fee of $150 or more to re-amortize a mortgage; however, borrowers are not required to pay closing costs or submit to another credit check.
  • Re-amortizing works well for homeowners unable to qualify for refinancing, especially those who are self employed or have low poor credit.
  • Homeowners consider re-amortizing their mortgage should be aware that some lenders require a minimum amount to be paid toward the principal in the lump sum.  JPMorgan Chase, for example, charges a $150 fee and requires a minimum $5,000 payment toward the principal.
  • Another challenge is finding a lender, or loan servicer, that offers re-amortizing.  JPMorgan Chase and Bank of America exclude loans backed by the Federal Housing Administration and Dept. of Veterans Affairs, and loans that were sold off and securitized may also need investor approval.

    • Read the full story

    For all your real estate needs Call
    John J. O’Dell
    Real Estate Broker
    (530) 263-1091
    E-mail jodell@nevadacounty.com

    DRE #00664491

    nevada county fair

    Nevada County Fairgrounds Receives Top Honors at the Western Fairs Association’s Annual Achievement Awards


    Fairgrounds recognized in industry for work in community partnerships, Fair competitions

    The Nevada County Fairgrounds received 28 awards through the 48th Annual Western Fairs Association’s (WFA) Achievement Awards Program. The Nevada County Fairgrounds took home first-place honors for its community partnership with the Nevada County Library’s summer reading program, its Lego Experience exhibit, its “Decorative Chair” exhibit competition, its “tree” exhibit displays at the Fair entrances, and several of the Fair and Draft Horse Classic promotional pieces.

    For this year’s WFA Achievement Awards Program, offered to recognize excellence and to share fair ideas and programs, the Nevada County Fairgrounds competed against more than 50 Fairs with similar attendance numbers within the Western United States and Canada.  At the WFA Achievement Awards Ceremony, held later next week, the Nevada County Fairgrounds will collect a total of 10 first place awards, 10 second place, and four third place awards. The Fairgrounds will also receive four Honorable Mention awards.

    The Western Fairs Association is a non-profit trade association serving the Fair industry throughout the Western United States and Canada.

    With a theme of “Gold! Rush to the Fair,” the 2011 Nevada County Fair is August 10 – 14.

    By Wendy Oaks

    Publicist, Nevada County Fairgrounds

    (530) 273-6217

    wsoaks@gmail.com

    Nevada County Fair                          August 10 – 14, 2011

    Draft Horse Classic                            September 22 – 25, 2011

    Halloween at the Fairgrounds      October 29, 2011

    Country Christmas Faire                  November 25 – 27, 2011

    nevada county fair

    Enter Nevada County 2011 Fair Artwork Design Contest

    Art work by Janene Powell

    WIN $250 IN ARTWORK DESIGN CONTEST
    Submit the winning artwork for the 2011 Nevada County Fair and you could win

    There’s still time to enter the Nevada County Fairgrounds artwork design contest. If you’re a talented or aspiring artist, and you’d like $250, this is the contest to enter! All you need to do is create the best artwork to illustrate the 2011 Nevada County Fair slogan, “Gold! Rush to the Fair.”

    The contest is open to Nevada County residents only and takes place until January 14. If you submit the winning artwork, you will win $250 and a 2011 Nevada County Fair package. Additionally, the winning artwork will be used on various Fair promotional pieces, print ads, buttons, t-shirts, banners, posters, and flyers.

    Interested artists may use any medium and can submit up to three entries, which must be on 8-1/2 by 11-inch paper. Entries can be delivered to the Fairgrounds Office at 11228 McCourtney Road or mailed to the Fair Office at PO Box 2687, Grass Valley, CA  95945. A complete set of rules can be found on the Fair’s website at www.NevadaCountyFair.com, or by calling the Fair Office at (530) 273-6217.

    The 2011 Nevada County Fair is August 10 – 14.

    By Wendy Oaks

    Publicist, Nevada County Fairgrounds

    (530) 273-6217

    wsoaks@gmail.com

    Website: www.NevadaCountyFair.com

    Blog: www.NevadaCountyFair.blogspot.com

    Facebook: Nevada County Fairgrounds

    2011 Nevada County Fair                August 10 – 14

    2011 Draft Horse Classic                  September 22 – 25

    2011 Country Christmas Faire       November 25 – 27

    Real Estate

    Some Reverse Mortgages Are Now Cheaper

    A reverse mortgage has long been considered a loan of last resort because of its high fees. Now, a new type of reverse mortgage is attracting the attention of more-affluent borrowers eager to extract cash from their homes. But older homeowners—and the adult children who advise them—need to be aware of the new trade-offs.

    Reverse mortgages allow people age 62 or older to convert their home equity into cash. The homeowner can elect to receive a lump sum, a line of credit or monthly payments. The loan is due, with interest, when the borrower dies, moves, sells the house or fails to pay property taxes or homeowner’s insurance. (With a conventional loan, such as a home-equity line of credit, a borrower can tap into a home’s equity but must make monthly repayments.)

    One of the biggest criticisms of reverse mortgages is their upfront fees, which can total as much as 5% of a home’s value. Last fall, the Federal Housing Administration, which insures virtually all reverse mortgages, introduced the “Saver,” which reduces these fees by about 40%. Lenders such as MetLife Bank, Bank of America and Wells Fargo have since begun marketing them.

    To cover its potential losses on a reverse mortgage—which can occur when a home isn’t worth enough to repay the loan—the FHA traditionally pockets as much as 2% of the value of the property. This “mortgage insurance premium” is typically the largest upfront charge in a regular reverse mortgage.

    With the Saver, the FHA has cut this insurance premium to 0.01%. That is because homeowners who apply for a Saver are typically limited to borrowing about 80% to 90% of what they could get with a regular reverse mortgage, says Peter Bell, president of the National Reverse Mortgage Lenders Association. On a $500,000 home, for example, a 75-year-old New York resident would receive about $262,000 with a Saver, versus $331,500 with a traditional reverse mortgage, according to MetLife Bank.

    Source: Wall Street Journal

    For all your real estate needs Call
    John J. O’Dell
    Real Estate Broker
    (530) 263-1091

    DRE# 00669941

    Bits & Pieces, Recreation

    Exercise: Good, Leg Pain, Bad – Here’s How to Get One and Avoid the Other

    by Lisa J. Lehr

    Exercise is good. Some of us have undoubtedly made a New Year’s resolution to exercise more. And walking is, for most people, the best choice because it:

    1. Doesn’t require much training;

    2. Doesn’t require special equipment;

    3. Doesn’t (usually) require travel to a special place, such as a gym, pool, or recreational area.

    Now, number 3 is somewhat qualified because, while most people in Nevada County live on or near a road with reasonably little traffic, walking on a paved road poses its own set of problems. If you get your regular exercise by walking along a public roadway, you may have noticed persistent or intermittent pain in the joints or muscles of your right leg.

    In most places, public roads are constructed with “crowning”; that is, the road is higher at the center and slopes down to the sides. This is to help rain and melting snow run off more quickly instead of pooling in the middle, creating a driving hazard and damage to the road.

    We learned as children to walk facing traffic, for obvious safety reasons: if an approaching car is too close to you, you can see it in time only if it’s approaching from the front—unless you have eyes in the back of your head (or wear a little tiny rear-view mirror, as cyclists sometimes do). The problem for walkers is that, as you walk along the edge of the road, one foot is always landing on a higher surface than the other. And over time, this can lead to pain in the hip, knee, and/or other parts of your leg. That, in turn, may discourage you from exercising; or you may just “live with” the pain, having no idea that it’s fixable. I actually lived with this problem, off and on, for a couple decades before it dawned on me what might be causing it!

    Here are some suggestions to avoid one-sided leg pain:

    1. Traditional wisdom suggests that pedestrians “should” walk on the side facing traffic. Laws may vary from one locality to another, although I’ve never heard of anyone being ticketed for walking on the “wrong” side of the road—and I certainly see lots of people doing it. Safety is our primary concern; however, I spoke to a physical therapist about this matter, and he recommends alternating sides every quarter mile.

    2. If you walk on a rural road and/or exercise very early in the morning or late in the evening, you may be able to get away with walking in the middle of the road. Be aware of your surroundings, turn off your iPod so you can hear any approaching vehicles, and get out of the way if one comes.

    3. Look ahead as you walk and try to spot places where the shoulder flattens or slopes back up; adjust your path to give your right leg a rest. Much of Nevada County’s roadways have irregular curbing (meaning none, or covered with dirt, etc.), and there are often places where you can walk off the pavement.

    4. Whenever possible, walk at a park or other place that has designated walking paths. Yes, this may require a trip in a car, but it may be the solution for you.

    5. Do not walk on the sidewalk. Sidewalks may be flat, but concrete is an even harder surface than blacktop, and the resulting foot and leg pain may be even worse.

    6. Make sure you’re wearing good shoes—shoes that are designed specifically for walking and not for some other sport. Wear good socks too (not too thin). Interestingly, I just read an article in the Sunday Bee about running barefoot. The practice seems to have a lot of followers! Speaking for myself, the fear of foot injury is too great, but feel free to investigate this.

    Whatever you decide to do, don’t use one-sided leg pain as an excuse to stop exercising. Simply try the above suggestions to work with the problem. See a physical therapist if necessary. As a last resort, choose another type of exercise, at least until the leg pain eases.

    Lisa J. Lehr is a writer, copywriter, and fitness enthusiast living in Grass Valley. She can help you promote your business with a full range of online and offline marketing pieces. A member of Empire Toastmasters, she’s available to speak to your business or professional group. Visit her website www.justrightcopy.com for more information, opt in for a message series, and receive a free Marketing Guide.

    —
    Lisa J. Lehr
    I write words that make you money–just ask me how.
    Vist Just Right Copy
    Visit my website and sign up for my free marketing tips.
    New! No cost Marketing Guide now available at my website.

    Real Estate

    When Will Housing Come Back in California? Five Experts Offer Their Views

    Abandoned Subdivision Photo by Tyson Jerry
    Abandoned Subdivision Photo by Tyson Jerry

    Although the steep decline of home prices in California ended in spring 2009, the weakness in the housing market after the expiration of federal tax credits for home buyers last year has led to some speculation as to whether the recovery is sustainable.  Five experts, including Leslie Appleton-Young, the chief economist for the CALIFORNIA ASSOCIATION OF REALTORS®, were asked to provide their view on the state of real estate and what they think is needed to get the housing market moving again

    • In terms of home prices, the experts differed slightly with the majority predicting that home prices will remain flat throughout 2011.  Ms. Appleton-Young predicts home prices will rise 2 percent this year, while a foreclosure expert predicts housing prices to decline 5 percent in 2011.

    • According to Ms. Appleton-Young, there is little chance of home prices returning to their previous peak levels anytime soon.  “We are in a slow-moving recovery with prices stabilized at the moderate and low end,” she said.  “We are still seeing price attrition and price softening at the upper ends of the market.”

    • California’s recovery will hinge on location, according to Richard Green, director of the USC Lusk Center for Real Estate.  Areas between El Centro and Sacramento likely will not see a return to peak prices for a long time.  However, places like La Jolla, Laguna, Huntington Beach, Atherton, Palo Alto, the city of San Francisco, and Marin County could experience a return to their peak prices within the next five years, according to Mr. Green.

    • Foreclosure expert Bruce Norris of the Norris Group believes the market is being artificially boosted by government programs and is set to fall further this year.  Mr. Norris believes the demand for housing is most-needed for a sustainable recovery.

    • California’s coastal markets will make a return once the job market improves, according to Emile Haddad, chief executive at FivePoint Communities Inc.  In turn, that will lift consumer confidence.  However, California’s inland areas are more likely to lag behind, and builders will have to reconsider the kind of product they offer in certain places.

    For all your real estate needs Call
    John J. O’Dell
    Real Estate Broker
    (530) 263-1091

    DRE# 00669941

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    animals

    Having Bear Problems? Here are Some Tips

    By John J. O’Dell

    I’ve lived in Nevada County since 1965. As a licensed land surveyor and civil engineer, I’ve walked many a mile through the woods, and never have encountered a bear, a few rattlesnakes but no bears.  However, as we crowd into their neighborhood, their natural food supplies diminishes and human sources of food becomes attractive.

    I remember one of my neighbors waking up in the morning after he had strapped his garbage can lid down, finding his garbage can down the hill with large claw marks on it. His solution, he put the garbage out in the morning on collection date.  No more problems.

    Here are some tips on dealing with bear problems if you are really worried about it:

    Bear are attracted to anything that is edible or that they associate with food. Take precautions by implementing the following ideas:

    Garbage problems can be solved with the purchase and correct use of a bear-proof garbage container. Save money by sharing one with a neighbor! For Approved bear-proof containers and where to buy them. click here.

    Wait to put trash out until collection day.

    Don’t leave trash, groceries, or animal feed in your car.

    Keep garbage cans clean and deodorize them with bleach or ammonia.

    Harvest fruit off trees as soon as it is ripe, and promptly collect fruit that falls.

    Only provide bird feeders outside during November through March and always hang feeders so they are inaccessible to bears..

    Keep barbecue grills clean.

    Keep pets inside.

    Securely block access to potential hibernation sites such as crawl spaces under decks and buildings.

    Don’t leave any scented products outside, even non-food items such as suntan lotion, insect repellent, soap or candles..

    Keep doors and windows closed and locked. Scents can lure bears inside.

    Source: Tahoe Council for Wild Bears

    For all your real estate needs Call

    John J. O’Dell
    Real Estate Broker
    9530) 263-1091

    DRE# 00669941

    Real Estate

    Some More Possible Real Estate Scams to Watch Out For

    Real estate scams are more and more popular, even though we can’t see them yet. Compared to robbing a bank, stealing 50 0,000-worth property via a false deed or an identity theft is trivial – and remarkably safe for the thieves. Their imagination is remarkable and oftentimes we can’t do much more than minimizing the damage they inflict. By becoming aware of the most common real estate scams, you may be able to protect yourself or someone you know.

    False Deeds, Part 1

    Most real estate frauds revolve around forged deeds. The most popular scam is using a false deed in order to get a loan secured against a property. The thief then vanishes with all the money, leaving the real owner in danger of foreclosure by the bank – oftentimes the danger is real if the owner doesn’t react on the first warnings received from the bank.

    False Deeds, Part 2

    Another common real estate fraud is selling a property without the owners consent. The uninhabited, recently inherited and otherwise unguarded property is the most probable target for such scams. The most inventive thieves are able to even sell the same property to several buyers at the same time. However, if they have sold it only to a single buyer, the fraud can go unnoticed for months or even a year. By that time, the “owner” is long gone, usually in another state, selling another home to someone else.

    Real Deeds

    The false deeds are bad enough, as such scams usually hit at random and they often can be reversed after the deed is thoroughly checked. However, the problem begins when the fraud is performed using a real deed, one that was either stolen or simply taken from the owner. The sad thing is that such thieves often recruit from our family and closest friends, people we would never suspect of anything.

    The most popular way is to get some kind of authorization (or truly, just a signature) from the owner in addition to a deed. This way the thief can do whatever they like without any real risk for being caught. This is an especially popular scam used against elderly people – a nurse or a family member either take a loan in the name of the elder or just force them into taking it.

    Another, even more outrageous, real estate fraud is performed by unethical door-to-door loan sellers. Under the pretext of making home repairs, they force the seniors into signing some documents which are truly high-rate loan contracts secured against the property. As most seniors are unable to repay such debt, their homes are taken by the creditor (which was its goal from the beginning) and the elder is left homeless.

    Defense

    Defending against such frauds is difficult. If the thieves use false deeds, it is possible to prove that you had nothing to do with the loan or purchase. However, if they use a real deed and/or have your authorization, this gets dicey. And taking effective legal actions is next to impossible if you sign the loan papers.

    Here are some tips to help protect yourself from such scams: 1) never sign anything you haven’t thoroughly read and if you are in doubt have your attorney review the documents before signing; 2) throw out any peddling loan lenders; 3) keep important documents, such as your deed, in a safe deposit box.

    For all your real estate needs Call
    John J. O’Dell
    Real Estate Broker
    (530) 263-1091

    DRE# 00669941