Jeff Engle EnglePropertiesOnline

Hi Neighbors,

Zillow is reporting some interesting statistics on home sales. In most market analysis I've done in the Placer county area homes are in general selling about 101% of list price. They are reporting sales in Sacramento to be 100% of list price. The key takeaway here is that in most situations buyers need to be aware that 'deep discounts' are already on the table in the list price. Of course this varies and you should always consult your realtor to provide you with the appropriate details on the house you are putting an offer on.

More information:

Homebuyers continue to drive hard bargains, holding down prices while allowing properties to sit on the market for an increasing length of time, according to Zillow.com's market report.

Nationwide, buyers paid 3.3 percent, or nearly $7,039, less than the last listing price on homes for sale during the month of July. That is a slight improvement over June, when the discount was 3.5 percent and significantly less than the 4.6 percent discount in January.

Meanwhile, 22.8 percent of all homes listed for sale on Zillow had at least one listing price reduction as of Sept. 1. The median U.S. price reduction was 6.5 percent off the original listing price. Homes listed for sale on Zillow during August were listed for a median 96 days, up from 91 in July.

Florida homebuyers got the best deals with buyers in the Vero Beach area, paying 10.2 percent, or a median $23,500, less than the last listing prices. Other Florida cities with a percentage of discount in the top 25 nationally were Naples, Daytona Beach, Miami-Fort Lauderdale, Panama City, Punta Gorda, Melbourne, Ocala, Tampa, Jacksonville, Port St. Lucie, Gainesville, and Lakeland.

In California, the situation is swinging in the other direction. In El Centro, Calif., buyers paid 1.8 percent, or a median of $2,150, more than the listing price. In seven California markets - Sacramento, Merced, Modesto, Riverside, Stockton, Yuba City and Fresno - asking price and sale price were the same.

Zillow's top 10 markets for negotiating discounts were:

1. Vero Beach, Fla., -10.2 percent from the last listing price
2. Sarasota, Fla., -8.2 percent
3. Atlantic City, N.J., -8 percent
4. Naples, Fla., -7.8 percent
5. Daytona Beach, Fla., -7.5 percent
6. Miami-Ft. Lauderdale, Fla., -7.5 percent
7. Panama City, Fla., -7.1 percent
8. Punta Gorda, Fla., -7 percent
9. Melbourne, Fla., -6.6 percent
10. Detroit, Mich., -6.5 percent

Source: Zillow.com (09/10/2009)

Hi Neighbors,

Another note about mortgage relief. If you are interested in a loan modification, feel free to contact me as Neighborly has relations with a local and reliable loan modification service.

The Obama administration's $50 billion "Making Home Affordable" mortgage relief plan is picking up steam, with 360,000 borrowers, or 12 percent of the eligible group, signing up for a three-month trial mortgage modification.

"There are signs the plan is working," says Michael Barr, assistant Treasury secretary for financial institutions. "But we can do better."

Bank of America has enrolled about 7 percent of its 836,000 eligible loans, compared with 25 percent for JPMorgan Chase & Co.

The Treasury Department's decision to publish these numbers is driving the banks to do better. Lenders are "concerned about the report card showing them in a worse light than their peers," says David Stevens, assistant secretary for housing and FHA commissioner at the U.S. Department of Housing and Urban Development. "Nobody wants to be a low performer on that score card."

Source: The Associated Press, Alan Zibel (09/09/2009)

Jeff
(916) 303-0257

Hi Neighbors,

The California Association of Realtors (C.A.R.) has published a FAQ on legal issues on property loss during 'Acts of God' such as firestoms. This informative article is available here.

In the introduction, the article sums up it's goals:

The seasonal firestorms we experience in California raise several legal questions for REALTORS® and their clients. The following questions and answers may be helpful for property owners and residents who have suffered a loss, or for buyers who are in escrow to purchase property involved in the disaster.

Our hearts and prayers go out to those effected by the fires.

Your neighbor,

Jeff

Hello Neighbors,

This is very cool.

At a time when employment is challenging - yet buying a home is absolutely the right thing to do (and timing couldn't be better), CAR is offering "First Time Buyer Insurance". I love it.

Take a look:

C.A.R.'s Housing Affordability Fund (C.A.R.H.A.F) has committed $1 million to support the Mortgage Protection Program - and the National Association of REALTOR another $420,000 - an insurance product that kicks in when the unexpected happens: job loss.

Your first-time buyers who enroll in the program can draw upon their mortgage protection policy in the event they lose their job after purchasing their home. Under the program, first-time buyers will be eligible to receive $1,500 per month for six months in the event of a job loss; co-buyers are eligible to receive $750 per month.

To be eligible for coverage, the home must be a principle resident in California and a first-time buyer is defined as someone who has not purchased a home in the past three years. While there are no caps on the applicant's income or the purchase prices of the home, the applicants are required to use a California REALTOR in their transaction; they cannot be self-employed or older than the age of 70. Consumers can apply for the program via their REALTOR.


It's new - so we haven't tried executing on the program yet... but if you want it, call me! We'll figure it out together!

Putting 2009 in the rear view mirror... Neighborly!

Jeff

Hi Neighobrs,

Freddie Mac is offering clinics on avoiding foreclosure. A number of the sessions will be in California. Click here for a link to the California sessions.

If you are facing foreclosure and would like to explore options, please call. We are associated with local loan modification services that may also be of help. There are programs available to help families to keep their home.

Remember, we here at Neighborly are available to help. Give me a call.

Your neighbor,

Jeff
(916) 303-0257