In my part of the country, many professionals are speculating that we are a year or so off on hitting the bottom. Every time it seems that things are starting to get better, another wave of foreclosures hit the market extending the inventory from 11 months to 15 or more. In Stockton, national figures assume that 1 in 30 homes are bank owned. That is just under 4 times the national average. There were almost 1000 homes put up for auction last month in Modesto, alone.
With almost every home being listed in some state of foreclosure or being a short sale, it is very rare to see active listings that are not bank owned. However there are signs that we are nearing the bottom. Investors are starting to enter the market and are buying homes at low prices. There are bidding wars for REO properties, above asking price. In fact, the majority of homes that are listed are now selling above the asking price. These signs show that a bottom is going to be occurring in the California region in the near future. The big question is when will this happen? My guess is within the next year, but I also realize that many parts of the country it could be years down the road.
Even with the wave of foreclosures, properties are selling quickly and there is renewed hope that a bottom will be here soon.
This means that rates are potentially going up, since the feds funds rate which was just cut, mainly applies to corporations on the bank investor. The ten-year treasury note is tied in directly to the bond investor,(not the fed funds rate as is commonly thought) and that is what causes mortgage rates to go down. The catch is that if interest rates go down then bond investors will demand a higher return, thus causing interest rates to go up for mortgages. In addition, many banks or mortgage lenders are charging fees to help them make profits, which causes the mortgage payment to go up.
So to sum it up, what does the fed rate cut over the last two days mean for the consumer? The answer is higher interest rates. Don't be surprised to see rates up to 7% in the near future.
There are tons of real estate agents out there. Many people are innundated with the choice as to which agent to choose when buying a home . Here are some hints for the consumer to realize the difference between an average and a great agent:
1. The agent will present to you a list of homes in a binder of some sorts that lists all the homes that you will be looking at.
2. The agent will have no homes that do not meet your original criteria. For example, if you specify at least 3 bedrooms, 2 baths, there should not be any homes that are 1 bedroom or 2 bedrooms on the list.
3. They will be dressed professionally. A great agent will be dressed for success. They may not be in a suit, but they will be dressed to impress.
4. They will be on time. Your time is important, any agent that is late does not value your time.
5. They will return calls the same day. Realtors cannot talk during appointments, but they should get back to you in a reasonable amount of time that same day.
6. They will understand your taste very quickly. Immediately after seeing a few homes, the agent should revisit the list and eliminate home styles that you do not like.
For further assistance contact me at 209-614-3103 or visit my website at http://www.buysellmodesto.com.
Matthew Zgonc
ERA Village ONE Real Estate
Escalon is located in the crossroads between Modesto, Oakdale, Riverbank, Stockton, and Manteca. From this town you have a gateway to any of these cities. It is located along HWY 120 with McHenry Rd in Modesto turning into Mariposa Rd, which ends up in Stockton. It is home of the Escalon Cougars, which usually have one of the best football teams in the state. It is located in Stanislaus County, very near San Joaquin County.
In terms of homes, Escalon is fairly moderately priced, with a 3 bedroom 2 bathroom home going for a median price of $275,000. It is a fairly small town with many people living along the outskirts or near the Valley Home area in the country. Crime is at a minimum, with almost no need for a police force.
Even though Escalon is a small town, it has wonderful places to eat. One of the Top Chef's finalist worked in an eatery just outside of Escalon. For a town with affordable housing, good schools, and a safe environment. Escalon is the place for you.
Matthew Zgonc
ERA Village ONE RE
209-614-3103
Living in the Central Valley of California, and working primarily in Modesto, the majority of the homes that are for sale are either foreclosures or short sales. Every one in real estate understands what a short sale is, but many consumers are confusing bank owned homes with short sales.
A bank owned home is one that the bank has taken back from the owner. It has generally gone through the entire foreclosure process or has been given back to the bank through a deed-in-lieu of foreclosure (where the owner gives back the title to stop a foreclosure). The bank usually will have a short turn-around time for approval on selling the property.
A short sale on the other hand is when the bank accepts a payoff amount for less than the amount that is owed on the property. For example, a bank that has a loan amount remaining for $100,000. The consumer sells the home for $60,000. The consumer is short $40,000 of the amount that is needed to pay off the loan. The amount That $40,000 is what makes the home a short sale. The consumer still owns the home, but must have bank approval before a contract is made with the buyer. This also does mean if someone else puts in a higher offer before the bank approves the contract, that the bank can accept the other contract, and reject yours. This process can take anywhere between 30-90 days. It just depends upon the bank and their workload.
I hope this clarifies to the consumer the difference between a short sale and a bank owned property.
Matthew Zgonc
209-614-3103
I provide quality customer service for all buyers & sellers in Stanislaus county --- without the hassle and stress of most deals. For free MLS and home valuations, visit me at www.buysellmodesto.com.
The satisfaction of helping a buyer/seller achieve a positive result. That’s why I am in Real Estate. It energizes me every single day. I get extremely motivated when I’m entrusted with the responsibility of selling someone’s home, I’m driven by the knowledge that my mission is to find the perfect seller/buyer match. I feel that the consumer is the main objective and their satisfaction is my key to success.
I love the flexibility and variation of real estate; every home and every apartment is unique. Every deal is different, but my role is to help sellers find suitable buyers for their never ending myriad of designs in equally diverse locations. To find the location that suits their needs and wants best is what I look for. I have learned the neighborhoods of my city and cities surrounding us and know what types of houses are in each. It is important when proceeding with a transaction the knowledge of who you clientele is and how you need to market accordingly.
When I’m not working in real estate, I treasure my time with my family particularly the simple pleasures of a meal together or just catching up on everybody’s day. Above all it’s vitally important to me that I’m a great husband and role model for my children.
People say I’m result orientated, tenacious and that I’m client focused. I’m perfectly comfortable with that. Selling your home is a big decision and it’s one that I take very seriously indeed. I make it my mission to get you house bought or sold in as little time as possible. Even in this time of short sales and foreclosures, I try to get the process expedited so that the deal is completed in a timely manner. I understand the stresses that occur when buying a house and try to help take most of the burden off of the homeowner or buyer.
I also love to help buyers in their quest for the perfect home. So, whether you're selling or buying, I look forward to being able to help you in your upcoming endeavors in real estate. It is extemely important now to find an agent that will be able to meet the needs of homes that you desire. For me, service comes first. I promise you to make the home buying experience as painless as possible. I have a great website that can help you fill your needs in real estate at buysellmodesto.com. I am efficient and will find the perfect house. I understand how to complete short sales and pre-foreclosures and will fight to get you the best deal for your money. For all your home needs, buying or selling ask Matt at 209-614-3103.
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First time home buyer or seller?
I can help you find your perfect next home or sell your existing real estate whether it's your first time or your last. I make the home buying experience as stress-free as possible. This is one of the biggest decisions that a person or couple makes during their lifetime. I can help you find the home that is the best fit for you.
I specialize in all areas of Stanislaus and San Joaquin County, with exclusive knowledge of cities and neighborhoods.
Contact me anytime on my cell @ 209-614-3103
Matthew is an excellent realtor! He put the deal together when another deal fell apart and got the job done, quickly. I would definitely work with him again. He would always communicate to us what was going on and helped to take the stress out of the homebuying experience.
-Roger Tamayo
Matthew has been really patient with us and helped us find the right house for the right price, in a market that was extremely volatile and fluctuated continuously. We would use him again when or if we make our next purchase. He made the process go smoothly and kept us informed before we made a decision. He knew the neighborhoods inside and out and only showed us houses in our price range and that would meet our needs. I definitely would work with him again. He continuously goes out of his way to make sure that the deal on the house that we would get was the best possible. In addition he made sure that it was a house we could enjoy and not have to worry about losing in a few short months. It has been a pleasure to work with Matt and I look forward to working with him again in the future. I hope others have the same success in finding a home that we did.
-S.M.
Matthew puts together deals that are beneficial to his clients. He will try to get the highest price for the market for the seller, but will also get the best bargain for the buyer. In my experiences with Matthew, he is a consummate professional and is client-focused. If you want one of the best agents in California representing you, then he is your man. He is very ethcial and will go to great lengths to get the job done. He even went to our loan meeting to make sure that we got the best rate. We are very appreciative as to the help that he gave us. We would recommend him to any and all of our friends. Thanks a lot for your help.
-C.R.
Matthew helped us get the loan and the house that we wanted. We really appreciated working with him. He made the house hunting process simple and easy and was very helpful throughout. We would definitely buy another home through him again. He attended a meeting with us and our loan agent to make sure that we got the best deal possible. He is very committed and did not rest until he found the perfect house for us. I would definitely work with him again and in the future. In addition, he was straight forward and helped us move out of our old house into this new one. I would have been lost throughout the entire process, if he did not step in and help us find a deal in the highest priced area in town.
-J.P.
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