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Expert Advice
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Lyon Real Estate
Auburn/GV Office
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EXPERT ADVICE...
as featured in the Auburn Journal, Gold Country Media
Colleen writes this advice column on a regular basis to give information on how to deal with a variety of Real Estate Issues.
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Q. What will the stimulis package do for the real estate market?
A. If it goes as we understand, it will provide lender funds that are currently rather limited. With the interest rates being very reasonable and home prices continuing to decline, more buyers will be able to be home owners. Of course, job development would be a boon to those who have lost theirs and enable other businesses to thrive with the infusion of purchases made by working people. Have faith. We are a creative and industrious nation of doers!
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Q.We are ready to downsize from our 3000 SF family home to an empty-nester style. Should we wait for the market to rise or
sell now?
A. Selling and buying in the same market can be a good idea. Best senario: Groom your home to the highest level possible within you financial and physical ability. Buy a home that may need cosmetic updating but will be an attractive price. There is effort involved in this venture but can be rewarding. Call me or your favorite Realtor* for further ideas.
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Q. If we list our home for sale, do we have to consider bank-owned properties to be our competition?
A. Buyers definitely have a high interest in bank owned property due to the good deals that are available. However, most of these homes have deferred maintenance or other issues. There are still buyers who will prefer not to deal with these types of homes. If yours is in impeccable condition and priced for the market, you have a good chance to sell it. Good luck.
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Q-Should we apply for a short sale?
A. If you are qualified, i.e. no assets, can't keep payment committments, have health issues, loss of employment,divorce and perhaps other reasons. What doesn't qualify is lack of incentive to pay your mortgage due to loss of property value in the current market. To obtain approval from your bank/mortgagor to take less that you agreed to pay must be based of serious financial
distress. It is not a panacea for the obligated to become unobligated. Call your lender before you are in a crisis situation.
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Q. What is your opinion of the current market?
A. It is a time of "Improved Affordability". While many of us cringe at the loss of value, this period offers an opportunity to those who earlier were unable to buy-to be homeowners. Communities are stabilized and diversified since teachers, law enforcement, and others who serve us so well, can live and be involved in the communities where they work. Let us appreciate their good fortune.
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Q.I am buying a bank owned home. Some items are missing since the contract was signed. Do we have recourse for compensation?
A. The rules have changed in this real estate climate. When the seller is a bank it is very difficult, but not impossible, for a buyer to receive a credit for items that may have "disappeared". I suggest to buyers that they take photos of all aspects of the property for proof of what was present at the time of sale. In a "regular" sale, the contract protects the buyer by placing the responsibility of "property to be in the same condition as it was on the date of acceptance" on the seller. That is a part of the risk factor when purchasing bank-owned homes. Caveat emptor:buyer beware!
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Q. What is the ideal home?
A. There is no one ideal home for everyone. That would be too easy!! But the following may be some elements of a home that would have wide appeal: One story-suits those that can’t or don’t choose to have stairs. Manageable yard that affords some privacy. Major components in working order. Location near highway/freeway access. Desirable school district (important for resale even if you are childless). Close to services such as markets, medical care, schools, etc.
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Q. Do you think that well water is safe to drink?
A. Yes, but it is important to know the quality of the water. I strongly suggest that a sample be taken to a local laboratory twice a year to determine quality that will ensure that you, family members and guests are protected for any contamination that can occur in well water. Call me for information on procedure and local laboratories.
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Q. I have no mortgage on my home. Do I really need expensive homeowner's insurance?
A. There are several local homeowners that feel their insurance policy was well worth the cost. In the recent firestorm tragedy, there were uninsured homes, owned outright, and had no mortgage company that demanded a policy be in place. Any equity in those homes is gone with the windliterally. That is the real tragedy. To recover from such an event may be impossible for some. RENTERS! Be aware that for little cost, your personal belongings can be insured so you won’t be left with no recourse and perhaps little resources in the case of loss due to fire, flood, theft, etc. This generous and supportive community has, and continues, to offer help, supplies, and money to the victims. It is an ill wind that blows no good.
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