Do You Need a Push?

Summer is upon us and I can’t tell you how it got here so fast!  It made me realize that if I have any clients thinking of selling their property, it would be best for them to make a move to get that started right away.  With the kids going back to school in mid-August, this is the best selling season and August will be here the blink of an eye.  

With the potential expiration of FHA loan limits in October which could press the market downward, this may be a window of opportunity to sell.  Many may not know that when the FHA  loan limits were raised a few years ago it opened up the opportunity to buy for a lot of people who would not have been able to get a loan otherwise.  FHA loans are government insured and the qualifying guidelines require a relatively low down payment and a slightly lower FICO score than a conventional loan.

Since the loan limits were raised to reflect home values on the Central Coast, the number of sales that have involved an FHA buyer has significantly increased and helped to keep our market going forward.  Although I’m not overly concerned about it, there is a possibility that we may feel the change for a short while until someone comes up with another plan.  The banks, I’m quite sure, will offer an alternative because if they aren’t lending, they aren’t making any money.

The point is that if you need a little push off the fence, today would be a good day to contact your real estate professional to discuss your optons.  I am also available to discuss your real estate needs. You may contact me anytime at (805)710-2415. Your calls are always welcome!

Nancy Puder is the Owner Broker of Signature Properties, a prestigious real estate sales and property management company in Arroyo Grande CA.  www.SignatureProperties1.com or contact Nancy directly at (805)710-2415

Nancy Puder
Signature Properties
(805)710-2415 direct line
(805)474-0100 office
www.SignatureProperties1.com

124 S. Halcyon Rd. Suite A
Arroyo Grande, CA 93420

The California Association of Realtors (CAR) has announced that foreclosure files have dropped 12.5 percent and sales on the court steps have declined by 24.5 percent.  Those facts combined with the five consecutive months of home sales gains (September 2010-January 2010) is reason to think positively about the real estate market. 

Many are taking advantage of the low interest rates that are averaging right now around 4.78%.  Interest rates are predicated to rise to around 5.78% before year-end.  I’m not a mathematician, but these numbers tell me that I will be paying much more for the same house next year than I will this year!   Perhaps I should consider getting off the fence?

Some buyers have shared with me that their sense of job security is preventing them from moving forward and making a purchase.  That is a valid concern which I can understand.  To alleviate some of these concerns, CAR has made available to home buyers a mortgage insurance plan, available upon completing a sale, which will pay up to 6 months of your mortgage payment if you find yourself unemployed.

The truth is that in most cases, none of us know what tomorrow will bring   The question is should you choose to worry  about the future and not do anything, or should you,  perhaps, carefully analyze your situation with  a respected professional who will help you decide if  this time might be right for you to make a move.

Nancy Puder is the owner/broker of Signature Properties, a prestigious real estate firm located at 124 S. Halcyon Rd., Arroyo Grande, CA 93420.  You may reach her at (805)710-2415 or visit the website at www.SignatureProperties1.com

Cheaper to Buy than Rent Right Now?

With lower house prices on the Central Coast and at the same time, rising rental rates, you may want to consider purchasing a home right now. Did you know that a home purchased for $300,000 with a zero down payment results in a payment of only $1900 per month? That includes property taxes and insurance! And yes, you can buy a house with zero down payment.

With the mortgage interest deduction still intact, your accountant will probably confirm that for many of you, a purchase similar to the one described above will result in approximately a $3600 tax savings!! If you are renting now for $1600, that sounds to me like a break even situation. I hope this news will prompt many people to investigate the possibility of owning versus renting.

With homeownership, there are so many benefits if you are brave enough to take that first step. For one thing, you won’t be getting the dreaded phone call from the landlord that they have decided to sell the property and now you not only have to allow it to be shown to prospective buyers, but you will most likely have to move pretty soon. I find that most people are usually unprepared emotionally and many times financially, for this sudden turn of events.

In addition, historically prices go up regardless of what you are hearing all over the media today. How many of us have heard a friend or neighbor tell us that they bought their house for $25,000 way back when and now even with the temporary decline in house prices, it is still worth $400,000? I know that even I cringe when I hear those stories. How do you become equity rich like your neighbor? Take a step out in faith and experience the joy of owning your own home! Paint the walls whatever color you want and live there until YOU choose to move. Who cares what the current value is on the home if you’re not going anywhere?

If you would like advice on whether this is the right time for you to buy, call me at (805)710-2415 or send me an email at Nancy@SignatureProperties1.com Nancy Puder is the owner/broker of Signature Properties Real Estate Sales & Property Management, located at 124 S. Halcyon Rd., Arroyo Grande, CA 93420. www.SignatureProperties1.com