Interest Rates are low! A good time to refi or buy!

Time to buy!

Wow! I am amazed at the Fed cutting interest rates yet again! In the last nine days the central bank has cut the rate at which they lend money to banks by 1.25%. This means that they are trying to increase borrowing and stimulate the lagging economy.


If a qualified buyer is looking to buy, now seems to be a great time. Why? There are three main reasons:


1. It will cost you less to borrow money at this time (1/30/2008) than it would have just 6 months ago. Consider a payment on a 200,000 loan at 5.5% vs. a 6.5% loan. At 5.5% the payment is $1135 per month vs. $1264 per month (these payments don't include taxes or insurance.)


2.Prices have come down from their historic highs, so first time buyers will find it is an attractive time to jump in the market.

3. With Increased Inventory comes a greater selection. Buyers will have more to choose from.
Additionally, you have greater negotiating power when sellers are competing with other listings for sale.

If you are looking for a new home feel free to use this link to search our MLS:

Or feel free to give me a call at 707-616-3456
email works too! andy@azalearealty.com

Realtors should always be looking for Buyers

Now you might say to yourself, "Well, Duh!" Of course a Realtor should always be looking for buyers, how else are they going to make a living? While the above is true, I'm speaking about looking for your buyers! In Humboldt County, there are 3 days of the week that you'll find Humboldt County Realtors on Tour (Or Realtor Caravan as they call it in other parts of California).
On Tuesday we hold tour in the South Bay, switching back and forth from North to South. The dividing line is Harris Street.
On Thursdays it's North Bay, Covering listings from Big Lagoon to Bayside/Indianola Cutoff.
On Fridays it's the Fortuna Tour, covering Loleta, Ferndale, Fern Bridge, Fortuna, Hydesville, Rio Dell and all points in between.
If you were to ask me, I'd say the most enjoyable tour is the Fortuna Tour. they serve a full breakfast and it is good!
But forget about the food, My point is that any Buyer's Agent worth his/her salt is attending these tours on a regular basis. There are a number of reasons why:

1. To be familiar with the listings that are out there! When you are working with a buyer and they ask you about a particular house, it's always good to be knowledgable about the house. If you've had "boots on the ground" you are in a position of having superior knowledge and information. We all know that the pictures online are (usually) the best ones. It might be the case that the agent used pictures that made the listing look better than it actually does. The reverse could be true as well. Maybe the listing agent only took one picture and it makes the house look like bad. Having visited the house, you might tell your buyer that it's a house they should look at. I alway walk into a house and ask myself, "What buyer do I have for this house?"

2. Going on tour gives the Realtor a sense of what a particular house is worth. It might be tomorrow that someone wants you to list their home and if you've seen one of the comparable homes, you get a better sense of the comparable value and how you can adjust the price on the comparable home you are using for a market analysis.

3. Invariably, on tour you have many of the same faces. These are Realtors, like me, that attend regularly. We want to keep abreast of Market Conditions. In many cases, we have developed a relationship, which can mean a world of difference when ou are submitting an offer. Assume for a minute that you have buyers that have submitted an offer with an agent you have developed a relationship with. This offer has the same terms as an offer submitted by an agent that the listing agent does not know. It's my belief that the listing agent will always push a little harder for someone they know than someone they don't know. Every little bit counts.

So these are some of the reasons why as a buyer, you should insist an agent who's aware of market conditions. What's available and what works for you!
For any information about any Humboldt County Property, call me at 707-616-3456 or email: andy@azalearealty.com
Feel free to browse Humboldt County Listings by clicking on the links below.

Buying a Home in Humboldt County

Whether you are a first time home buyer or a seasoned Real Estate investor, buying a home can be a stressful event. In 2008, one of the things you may be wondering is should I buy a house now? The answer is YES!

Buying in Humboldt County, California

1. Prices are falling.

On the whole prices are coming down from the previous years. Because homes are staying on the market longer and there is less competition to buy homes, Sellers must reduce their prices. also, gone are the days of buying a Home "AS-IS". Sellers are willing to negotiate on repairs.

2. Interest rates are low.

As of this posting (1/10/2008) Interest Rates for Buyers with good credit and full documentation on loans are BELOW 6%. The key is to have good credit and good income.

When money is cheap, it's a good time to buy!

3. Inventory is high.

Although, inventory isn't as high as it was a few months ago, it is still very high, so buyers have more homes to choose from. As prices fall, that house you want that was just out of your price range is liable to fall into your lap. but don't expect miracles, it's rare to find a house that will fall $100,000 in price, unless you're looking at high end real estate.

4. Fewer Buyers.

Fewer Buyers equals more competition to sell a home. These are favorable buying conditons that lead to...

5. Sellers that are willing to negotiate.

When there is more competion to sell homes, Sellers that are motivated will work with a Buyer, from the time the initial contract is signed to negotiation of repairs that are discovered during your inspection time frame (17 days, more to come on this in a later posting).

6. When the Investors are out that means its a good time to buy.

Blood is in the water, so to speak, and the Savvy buyers are coming out of the woodwork. These are experienced investors who were waiting around for these types of conditions. Investors are looking mainly at Houses priced in the 200K range. They may not be complete dumps

How many times have you heard "buy low and sell high"? That's what these investors are looking to do.

If you have any questions about the buying process call me at 707-616-3456.

Of course email works too: andy@azalearealty.com

If you'd like to browse the MLS for homes for sale click this link

Humboldt County Real Estate - Foreclosures and Short sales

FORECLOSURES IN HUMBOLDT

I get asked quite a bit about Foreclosures in Humboldt. The perception is that these properties are available for a "song". The reality is this: they can be quite a mess! The former owners can be quite messy or destructive (wouldn't you be?)
At times you can walk into a foreclosure and wonder, "How can someone live like this?" A distressed sale or a foreclosure is when a savvy investor can make quite a bit of money.

There are a number of ways to profit on distressed properties, the first way is the short sale.

While not a foreclosure, the short sale is when a seller (with the lender's approval) sells a home for less than is owed on the property. Commonly the Lender will agree because the Foreclosure process can be very long and costly. The process of the short sale is hampered properties that have a second deed of trust on them. The entity that holds the second deed of trust is second in line to get paid, so because they will commonly be left holding the bag, they will not agree to a short sale, thus allowing the property to go to a Trustee's Sale.

The next way is the trustee's sale
The holder of the note in foreclosure will auction off the note to the highest bidder. At this point a second deed of trust holder has an option, let the second deed go unpaid or buyout the first deed. This is the reason that the second trust deed always has a higher interest rate, more risk = higher reward.
To cash in on the foreclosure at this point takes a ready source of cash because the holder of the first trust deed wants cash or cashier's check. These sales are noticed in the Legal Section of many Newspapers as is the total amount due.

If the sale nets less than the total amount due between the First Trust Deed and the Second Trust Deed, the first is paid off and the second is wiped out. Not all encumbrances are removed from the property, there may be a mechanic's lien or a tax lien that is still on the property. You can find out if such encumbrances exist at the county recorders office. You'll need the Assessor's Parcel Number (APN) and you can perform a search to see if the seller has more recorded encumbrances.

If you do purchase a foreclosure at this stage, one major concern could be whether it is occupied. The former owner or a tenant could be living in the home. In either case if you want them out, contact an eviction service. These people could potentially stay for a long time if you aren't proactive in removing them.

If you do purchase a foreclosure at a trustee's sale, BEWARE! Presumably, you won't have any inspections, so be aware that adverse conditions could possibly exist either with the structure or associated systems such as a septic tank or water supply.

The Last Way to buy a foreclosure is through a broker. If the trustee's sale doesn't net a buyer, it becomes bank-owned or real estate owned (REO). These foreclosure properties are then marketed through a Broker . It is not necessary to have the Bank's broker represent you in a transaction, you can use your own Realtor. The one thing to be mindful of is this: Inspections are shortened by the Bank, usually 5 days. The best bet is to arrange inspections prior to an accepted offer.

Another concern is this: the bank will not be willing to negotiate the price down, so be ready to walk away from the transaction if they don't negotiate a major issue that is uncovered during your inspections. These listings are usually priced below market competition. Why? The Banks are not in the business to own property, they lend money, so it is possible to buy a home below market value and at an outstanding deal!

If you have a question about foreclosures or how you can profit from them, feel free to call me at 707-616-3456 or email @ andy@azalearealty.com

FOR A LINK TO FORECLOSURES CLICK HERE: