Aaron Cullen : Folsom & El Dorado Hills Real Estate

Keep an Eye on December 1st, 2009: The $8,000 tax credit currently available to First Time Home Buyers (defined as those who have not owned a home for the past three years) expires on December 1st, 2009. Because it usually takes around 45 days to close escrow on a house after a contract is signed, buyers have very little time left to act. As of Tuesday, Sept. 15, there are only 76 days left before the credit ends. There has been a recent push, to get Congress to either extend the program, or create a new program that would be available to all home buyers. The National Association of Realtors points out the current program brought 1.2 million new buyers into the market. The NAR's concern is, the recent buying frenzy will dry up once the tax credit expires. Analysts argue that without the incentive, the pressure on homebuyers to act quickly will vanish, and the nascent housing recovery could slump. As you will see below, August sales dropped off considerably in Folsom and El Dorado Hills.

Deal of the Month: I am selling a home at 120 Winterstein Drive in Folsom. 1,467 square feet, 3 beds, 2 baths, pool, 3-car garage. Needs some work, but a great starter home. Asking $268,998. OPEN HOUSE Sunday 9/20/09 from Noon to 4pm. Call me for details!

Regional Snapshot: The good news: The number of homes for sale in Sacramento County dropped again to 5,469 units. This is 29% below the peak in October of 2008. The number of bank owned home sales fell for the 5th consecutive month to 774 units, 49% below the peak in October of 2008. The average sales price rose for the 5th consecutive month. The bad news: For the first time in 2009, the number of home sales dropped in Sacramento County. From July to August, the sales fell by 12% from 1,854 units to 1,636 units. Hopefully this has to do with the seasonality of the housing market and the numbers will rebound in the coming months. Folsom and El Dorado Hills were not immune to the drop in sales with both experiencing a big drop in sales during August.

Folsom: It appears the local focus shifted from home buying to getting the kids back into school and to soccer practice during August. Although the average dollars per square foot of sold homes rebounded from $164 in July, back up to $185 in August, the number of sales dropped by 24% to 53 homes and the average sales price slipped to $386,000. Of the 53 home sales, 12 were bank owned and 8 were short sales, making 38% of total sales distressed homes.

Keep an Eye on December 1st, 2009: The $8,000 tax credit currently available to First Time Home Buyers (defined as those who have not owned a home for the past three years) expires on December 1st, 2009. Because it usually takes around 45 days to close escrow on a house after a contract is signed, buyers have very little time left to act. As of Tuesday, Sept. 15, there are only 76 days left before the credit ends. There has been a recent push, to get Congress to either extend the program, or create a new program that would be available to all home buyers. The National Association of Realtors points out the current program brought 1.2 million new buyers into the market. The NAR's concern is, the recent buying frenzy will dry up once the tax credit expires. Analysts argue that without the incentive, the pressure on homebuyers to act quickly will vanish, and the nascent housing recovery could slump. As you will see below, August sales dropped off considerably in Folsom and El Dorado Hills.

Deal of the Month: I am selling a home at 120 Winterstein Drive in Folsom. 1,467 square feet, 3 beds, 2 baths, pool, 3-car garage. Needs some work, but a great starter home. Asking $268,998. OPEN HOUSE Sunday 9/20/09 from Noon to 4pm. Call me for details!

Regional Snapshot: The good news: The number of homes for sale in Sacramento County dropped again to 5,469 units. This is 29% below the peak in October of 2008. The number of bank owned home sales fell for the 5th consecutive month to 774 units, 49% below the peak in October of 2008. The average sales price rose for the 5th consecutive month. The bad news: For the first time in 2009, the number of home sales dropped in Sacramento County. From July to August, the sales fell by 12% from 1,854 units to 1,636 units. Hopefully this has to do with the seasonality of the housing market and the numbers will rebound in the coming months. Folsom and El Dorado Hills were not immune to the drop in sales with both experiencing a big drop in sales during August.

El Dorado Hills: After having its best month in more than a year with 73 home sales in July, El Dorado Hills fell on hard times in August with sales falling 47% to only 39. Of the 39 sales, 10 were bank owned homes and 6 were short sales, making 41% of the sales distressed homes. The average dollars per square foot held steady at $161 while the average home sales price dropped to $492,000. Serrano continued to be "on sale" in all price points with high inventory, providing great deals for the El Dorado Hills home buyer.

Thank you for considering Folsom , California - CA as the next place you will live. Folsom is beautiful, has affordable homes / real estate and is centrally located in Northern California between Lake Tahoe, the Wine Country, the Bay Area and Central and Northern CA. Outdoor enthusiasts, families, retirees and singles love Folsom as it has something for everyone. If you are a home buyer and you are considering Folsom, California, you have come to the right place to satisfy your real estate needs.

Why do home buyers decide to buy real estate in Folsom, CA? There are many reasons, but here are the things that appealed to me and my family the most:

• Small town feeling - Coming from the Bay Area, I found Folsom to have a slower "pace" without having to sacrifice the "big town" amenities of shopping, restaurants, entertainment, outdoor activities, etc.
• Great schools - Several nationally recognized schools within the city.
• Lots of parks - Just about every home in every neighborhood is within walking distance of a local park.
• Beautiful scenery - Rolling hills, oak trees, open spaces, Folsom Lake and miles of hiking, biking and walking trails.
• Excellent Infrastructure - Folsom is a city, and offers an array of municipal services, including administration, police, fire, recreation, parks, and public works.
• Family based community - My wife joined "Sierra Moms," a grass-roots organization, made up by the mothers of newborns, toddlers and preschoolers, which provides moms with play groups, advice/information exchange, social interaction and an abundance of other services/activities. Most of the moms my wife met live in Folsom or El Dorado Hills. This organization was invaluable to my wife's integrating into the community.
• Cost of living- With Folsom's affordable home prices, you may be able to enjoy the luxury of one parent working and the other one raising your children... This was of major importance to my wife and I and a key reason why we relocated to Folsom from the Bay Area.

Why buy a home through Brokers Inc?

• Brokers Inc. is owned by Aaron Cullen who is a Folsom resident and has 17+ years experience helping home buyers and home sellers. Aaron Cullen also has experience with transacting in bank owned homes / foreclosure properties / REO real estate.
• Brokers Inc.'s "Helping Home Buyers Save Program" credits up to $2,500 to every home buyer that purchases a home through us. Just visit our website or call us to find out the details.
• Brokers Inc. has relationships with local banks & lenders to insure your loan will get the attention it deserves. If you don't have a solid pre-approval and loan lined up, you may end up wasting your time. Brokers Inc. will help you get pre-approved so you can focus on buying the right home.
• If you are interested in purchasing a bank owned home / foreclosure property / bank repo, Brokers Inc. has bank owned homes lists that are updated daily for you to look at.
• If the above reasons above are not enough, then perhaps you should consider the fact that we take your best interests to heart and we want you to be happy throughout the home buying process. Happy home buyers tell their friends and it helps us build our business!

Folsom CA Real Estate areas served include: Empire Ranch , The Parkway , Willow Creek Estates , Broadstone , Hillcrest , American River Canyon ( ARC ), Sierra Woods , Willow Springs , American River Canyon , Altura Villas , Provance , Lexington Hills , Natoma Station , Briggs Ranch and more!

Facing a Foreclosure in El Dorado Hills, CA?

At the end of July in 2009, there were 352 homes for sale in El Dorado Hills. The breakdown: 204 "Non-Distressed" listings, 128 "Short Sale" listings and 20 "Bank Owned" listings. In the same month, there were 41 Non-Distressed sales, 9 Short Sales and 23 Bank Owned sales that closed escrow. What does this tell us? 20% of the Non-Distressed inventory sold, 7% of the Short Sale inventory sold and 115% of the Bank Owned inventory sold. Bottom line: If you get foreclosed on, the bank will unload your home quick and cheap. Foreclosure may be avoided with a short sale, but time is of the essence and there is no margin for error. If you hire an experienced short sale specialist, the odds of your success will increase exponentially!

Short Sale or Foreclosure: Which is the Better Option?

Losing your home to bank foreclosure, resulting from your inability to make your monthly mortgage payment(s) is one of life's most challenging experiences. Foreclosure is also an event that will impact your credit score for years to come. Foreclosures often result from the unexpected: a major accident, serious illness, death of co-owner, divorce, job loss, or more and more often as the result of a resetting interest only or adjustable rate mortgage. If you are facing any of the above it is better to understand your options and take action, rather than standing idly bye and waiting for the foreclosure to take place.

Foreclosure is the worst of your available options

As most people know, the result of a foreclosure is the bank will take your home. Depending upon the circumstances and the state you live in, the lender can also get a judgment against you for the cost of the foreclosure and the arrearages you owe. The foreclosure will ruin your credit score for many years to come, and make obtaining any other type of credit very difficult. If at all possible, you want to avoid going through a foreclosure.

When foreclosure seems inevitable, consider a Short Sale

Banks first choice is rarely to foreclose. Typically, it is their last option in an effort make the best they can out of a bad situation. For homeowners who have found themselves in dire straights financially, a popular option is to pursue a short sale. In a short sale, you sell your home for less money than what is owed on it. The biggest challenge is getting your bank/lender to agree to the short sale. On the one hand, they don't want to foreclose and take ownership of your home, but on the other, they aren't thrilled about forgiving the debt you owe and passing the loss to their share holders and other investors. If you are considering a short sale, your best course of action is to pursue it the moment you realize you are falling behind on your mortgage payments and you are not willing and/or able make any more payments. Currently in California, it takes a bank/lender a minimum of seven month to foreclose. If you move quickly on doing a short sale, the bank/lender will have a lot to lose if they don't work with you. If you wait until 5-6 months have past, after skipping your first payment, it is unlikely you will have success with a short sale.

The downside to a Short Sale

Although a short sale will prevent a foreclosure, it will still have a negative impact on your credit score, often times lowering it by hundreds of points. This stigma can eventually be overcome and may dissipate much quicker than a foreclosure. If possible, keep some credit cards open, use them regularly and responsibly and pay them off every month. The next area of concern is the "forgiveness of debt." In years past, even though you never saw a dime of it, the IRS and the state tax collectors would consider the difference between the mortgage balance and the home sale proceeds from the short sale to be taxable income. The Mortgage Forgiveness Debt Relief Act of 2007 put a moratorium on federal taxes on short sales through 2012, but laws change regularly, and it is always a good idea to consult your tax planner/advisor prior to pursuing a short sale.

After considering your options, do everything you can to avoid foreclosure

Going through a short sale won't be pleasant and will take some effort, but it will be a better alternative than a foreclosure. When you realize you are in trouble and don't know where to turn, don't slip into denial and hope the bank/lender will go away. Instead, consider whether you will qualify for a short sale and approach your bank/lender with an offer from an interested buyer before you are out of options.

Ready for a Short Sale? Don't attempt to do it alone

For a number of reasons, most attempted short sales are unsuccessful. The banks/lenders have specific paperwork and guidelines that must be understood and adhered to. Each bank/lender is different and there is no single or broad approach that works with each. The idea of losing your home to foreclosure is scary and a short sale can lessen the blow, but it must be done in and efficient and timely manner.

When selecting a real estate agent to assist you, you need one that has years and years of experience in the business and knows how to close real estate transactions. More and more frequently, these experienced agents have realized that the most efficient way to effectively list and close a short sale is to partner with a professional "short sale negotiating firm" that will be the go-between the Realtor and the Bank/Lender. In this process, the real estate agent focuses on their area of specialty: listing, marketing, negotiating and closing the sale, and the short sale negotiating firm: collecting documents from the seller, compiling the short sale package and calling/emailing the bank's asset manager on a daily basis until an agreement with the bank is reached. Remember, you aren't going to get a dime out of the short sale... Your job is to hire professional(s) who will get the short sale done while keeping what's left of your money in your pocket.

Hire an experienced Short Sale team!

If you live in the Sacramento Area and are considering a short sale, I encourage you to consider my services. I am a licensed Realtor / broker / agent and have been serving California since 1992. I am the founder and owner of Brokers Inc. Residential Real Estate and I have partnered with a couple of Short Sale Negotiating Firms that specialize in closing short sales. If you live in other areas of California and would like a referral to an experienced agent in your area, email me and I'll send you the names of a couple of reputable real estate agents to help you out. If you are located in the Sacramento Area, give me a call and I'll come meet with you today!