Bonnie Jessee

Truckee Real Estate Closing the Gap - Inventory vs. Sales

Bonnie Jessee, ABR 530 412 3984

Nation wide, home prices are closer to stabilizing today than at any time in the past nine years. Here in Truckee, Lake Tahoe we are seeing the same.

Nationwide, based on the latest data, median selling prices for new and existing homes combined now equal 2.9 times median household incomes, nationwide. This is exactly the ratio that prevailed during the peaceful days of the 1980s, when sales and construction of housing were booming.

Consider also the fact that interest rates are much lower today than they were two decades ago and housing is even more affordable to more people.

While obtaining a home mortgage can be more difficult these days than it was in the 1980s, I would suggest that those borrowers who are willing to be conventional to the values of the 1980s would not find it much harder to secure a mortgage loan today than they did back then; those of you not in the ‘market' at the time may be too young to recall that the standards included a down payment of 20% to 25%, several years' income-tax returns to document the household income and a pragmatic appraisal of the home's true value.

At current selling prices, inventories of unsold homes are still about twice as high as normal, nationwide. The greater Truckee area, however, has remained relatively stable.

Those folks that bought well are selling well and we hope to see a continuation of this stabilization here and nationwide. Give me a call to start your search for your High Sierra Lifestyle! Bonnie 5304123984

Truckee Real Estate

Lake Tahoe Real Estate Short Sale or Bank Purchase Preparations

Bonnie Jessee, ABR

530 412 3984

Having a Realtor who is working with your best interests and goals in mind is important during any home or property purchase. It is even more important to get the best of a situation during a short sale or bank owned property purchase.

Preparation is the key to getting the most out of a short sale or bank owned property purchase. It is imperative that we have in writing at the time of the presentation of a written offer the following:

A brief letter telling the seller (bank and/or current owner) about you and your family and your desire to purchase the particular property - not an in depth personal intrusion, however, merely basic family information.

A complete and accurate funds availability report from your financial institution (your bank account, savings or other account showing the amount of funds available to make the full purchase including closing costs).

If financing is involved, a letter from your lender indicating you are fully APPROVED for a specific amount - either the entire purchase price or the ‘difference' between savings and the new loan. We maintain in the contract that if the property does not appraise for the purchase amount you are legally not obligated to continue with the purchase.

Patience - during the short sale or reo purchase process the ‘path' to closing can be quite different than a normal purchase. Our in-house transactions coordinator is extremely educated, competent and knowledgeable about short sales transactions. All transaction fees are paid by me.

Typically there are inspections paid for by buyer, however, rarely does a short sale involve any repairs done by seller or bank.

Keep in mind the California Residential Purchase Contract has several ‘built' in safety nets on your behalf. Always write contracts with your financial security in mind and never release financial contingencies until the day of closing. This is totally for your protection.

Please contact me for additional information. Bonnie Jessee, ABR, 530 412 3984

The Business Cycle and Buying a Home ~ Home Buying Advice How to Time Your Home Purchase to the Market Cycle? Bonnie Jessee, Realtor 530 412 3984 This is an article written a few weeks ago – and worth repeating! Ah, if only we had that special real estate crystal ball! Then timing your purchase to the cycle would be an easy task! Attempting to time your purchase to the “business” cycle is sometimes getting lucky and sometimes paying attention to the small signs. Even economic advisors and consultants have inconsistencies accurately predicting the future economy. Even when these experts are relatively successful, the real estate market does not necessarily move in tandem with the economy as a whole. Part of the reason is the timing and inconsistency of interest rates. During periods of economic growth, interest rates are generally higher. Therefore fewer people can afford to purchase a home or second home unless they are cash purchases. When the economic situation is slower, interest rates fall, and more people can afford to purchase a home by obtaining a mortgage. As you can see, this cycle does not move in conjunction with the remainder of the economy. It is also influenced by levels of employment, pay scales of various jobs, and consumer outlook for the future. Such facts make it difficult to know ~ ahead of the time ~ whether the housing market is going to be a wise investment. The best advice is to preview the market where you intend to purchase, deal with a professional Realtor®, and plan on holding for as many years as possible. Unless, of course, you have a crystal ball! Call me – I know this market and I know it well! Bonnie Jessee, Realtor 530 412 3984