Greetings!Last month in our newsletter we attempted to shed a little light on the meaning of Fannie Mae and Freddie Mac. You'll recall that these are two quazi-government agencies that buy loans from mortgage lending banks, thereby insuring that there is a sufficient amount of money available for home loans. You may also recall that Fannie Mae and Freddie Mac stipulate under what circumstances that they will purchase loans - the loans that they will purchase are only the cream of the crop, the best of the bunch with stellar borrowers and perfect properties.
In this month's newsletter we are going to feature the "FHA loan" which serves quite a different segment of the loan industry.
The Federal Housing Administration was founded in 1934 in order to increase home construction and employment. Lenders who offer FHA insured loans must be approved by the Federal Housing Administration and there are some stipulations that must be clarified to the borrower by the loan officer such as the fact that the appraisal to be done on the property must be done by an FHA approved appraiser. The FHA appraiser is held to a slightly stricter set of rules when valuing the house. Also, it has been our experience that the FHA approved loan qualifications change constantly so everyone on the borrower's team (loan officer, borrower and real estate agent) must be sure to understand the game plan BEFORE writing an offer to purchase on a property.
Let us be clear. The FHA loan is actually a program by which, if a lender follows certain guidelines, and the borrower pays for mortgage insurance (to obtain mortgage insurance from the Federal Housing Administration, a mortgage insurance premium (MIP) equal to a percentage of the loan amount at closing is required, and is normally financed by the lender and paid to FHA on the borrower's behalf. Most often, in the case where there has been less than 20% downpayment by the borrower, there will be a monthly premium as well.), the Federal Housing Administration will then provide insurance to the lender should the borrower default.
In this case, let us say that borrowers with less than stellar credit or less than 20% downpayment apply for a loan from the Bank of America. When the loan officer takes the loan application from these borrowers he/she explains to them that they "do not fit into Fannie Mae and Freddie Mac's guidelines." The consequences to this for the bank is that whatever loan they find for this customer, they (the bank) will not be able to sell it back to Fannie or Freddie - they will have to keep the loan on their books. This is seen as a negative since banks cannot have outstanding loans that total more than 10% of what they actually have in real money - in their vault, so to speak.
Because this loan option is available for the "less than perfect" loan prospect, it is beginning to become known as the "new sub-prime." In reality, this loan is a viable option and should be investigated thoroughly - especially since it allows a homeowner to get into a loan and a home with, in some cases, 3% downpayment (watch this carefully as it is one of those things that keeps changing!). There are other FHA insured loans that can be used to buy a home that needs work and wrap the cost of construction into the final loan, but that's a different story. Contact your local loan officer or us to get more information and up to date loan limits on these products.
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Market Update - September 2011
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A BIG jump to 135 residential sales of homes and condos for the month of September, up from 81 sales in the previous month indicating a busy July & August when the offers were accepted and escrows opened. September and October are typically busy selling months as winter looms and buyers scramble to secure their High Sierra get-away while sellers hope to vacate before the snow falls. Of equal note to the increase in sales, is the decreased ratio of distressed sales; down to 13% for September as compared to 28% from just one month prior. Exciting news as we know that distressed properties must clear out before we can begin to feel a stabilization of the market.
Statistics from the Tahoe MLS: the solds from Sept. 1 - 30, 2011:
Tahoe Donner: 28 homes (1 SS) (1 REO), 2 condos
Northstar: 3 homes, 6 condos (2 REO)
Glenshire, Cambridge, Juniper Hill, Juniper Creek, The Meadows: 8 homes (1 REO)
Olympic Heights: 0 residential properties
Prosser Lake Area: 6 homes, 1 condo
Sierra Meadows: 4 homes, 1 condo (1 SS)
Martiswoods, Ponderosa Ranchos: 1 home
Winter Creek: 1 home
Lahontan: 1 home
Martis Camp: 0 residential properties
Old Greenwood: 0 residential properties
Gray's Crossing: 0 residential properties
Truckee Proper: 3 homes (1 REO)
Donner Lake: 5 homes (1 SS), 0 condos
Donner Summit: 7 homes (2 SS), 0 condos
West shore Lake Tahoe: 19 homes (2 SS), 1 condo
Tahoe City: 3 homes (1REO), 0 condos
North shore Lake Tahoe: 6 homes (1REO), 0 condos
Kings Beach & Tahoe Vista: 7 homes (2 SS (1REO)), 1 condo
Alpine & Squaw Valley: 4 homes (2SS) (1REO), 1 condo
Shared Ownerships - entire region: 7
Mobile Homes - entire region: 2
Sierra & Plumas Counties: 11 homes (2 REO)
Condos and Homes sold over $1M in Truckee and North Lake Tahoe: 14
Highest priced home or condo sold: Once again it is one of the classic Old Tahoe Lakefront estates. This one is set on 1.6 acres with approx. 135 ft. of sand shore overlooking endless blue water views. With an 8 bedroom main lodge and two detached guest quarters, 2490 West Lake Blvd. provides the quintessential Lake Tahoe experience. It sold for $6,400,000 cash after only 45 days on the market. Yes there is still money moving around out there!
Lowest priced home or condo sold: It is a fixer upper inside and out! This Kings Beach home at 206 Beaver St. sold for $150,000. This contractor's special is located just a few blocks from the beach. Assessed as a 3 bedroom duplex with 2 car garage, however being used as a 1 bedroom with loft and storage leaves plenty of room for improvements.
The list to sell ratio on the median was 97%. In other words, the homes sold within 99% of the list price! The median list price for this period was $429,000 and the median sale price was $415,000. Using the median price tends to take the extreme highs and lows out of the picture as it is based on the sale of the house in the middle of the pack. The average days on the market were 99.
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| Screaming Hot Deals | |
In this particular spot, we feature the 3 properties in the multiple listing service that we feel are well priced. These are the properties that we wish we had buyers for because we know they are of such value that they will not last long, even in this market. So, for this month, come and get 'em before they are gone. . . .(by the way if when you click on the link you get nothing -- they have already gone under contract).
1) Check out this great new listing located at 12951 Northwoods Blvd. 3 bedrooms, 2 bathrooms AND 2 separate 1 car garages. All of this for $210,000. Close to the Golf Course, the Lodge and Trout Creek Recreation center it will make someone a wonderful vacation home OR rental property. 2) Sweet little cabin located on Lake Tahoe's Westshore, this 3 bed, 2 bath home at 7122 8th Ave looks just right for the money - $345,000. It doesn't show its age since it has been lovingly dolled up. High ceilings make the place seem more spacious than its 1160 square feet. Only thing missing is a garage but for a 2nd home, it is just about perfect. 3) Here is a full time home located in the Glenshire area that is a great buy without being a short sale or REO. Located on a cul-de-sac with views and backing to Glenshire open space the property at 16186 Lancaster Place has been remodeled with taste including granite counters, hardwood floors and much more. Clean little place, it also has a 400 square foot storage area above the garage. We like it for $359,950.
Be sure to contact us if you would like to take a look at any of these properties!
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| Worst Deals on the Market | |
These are the properties for sale that we feel are the worst priced homes on the market in our multiple listing service. Every month we will choose 2 or 3 properties which, for one reason or another (usually price) are something we alone feel are not going to sell anytime soon. Remember, this newsletter is purely and solely our opinion - there is nothing here that indicates that it is ANYTHING but our opinion.
1) This condo has been on the market for over 600 days, that is the first clue. They originally asked $439,000 and are now listed for $399,000. Why they think that they sould get $100,000 more than the last units sold at the Boulders is beyond us. We think 11455 Dolomite Way should slash $100,000 off of their ticket price and maybe we'll bring them a buyer for this 3 bedroom condo! 2) 7165 5th Avenue is a perfect example of what $345,000 won't buy (because no one will pay that). Located in the same neighborhood and listed by the same agent as one of our best buys, this little home will really have to gussie itself up, or bring down its price in order to change hands. 3) Okay, now we are talking serious steps!! 4096 Gstaad Rd., located in the Alpine Peaks area has way too many and when you get there (the top) it hardly seems worth it. Plain Jane describes the house with 3 bedrooms, 2.5 baths and a garage. We hear there are views, which may salvage the place, but the day we saw it, we were experiencing a snowstorm -- so we were unable to confirm this asset. At $675,000 even views seem a little pricey.
Be sure to let us know what you think that any of these properties will sell for by contacting us here and when it does, the entry closest to the actual sale price will win a gift certificate.
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Congratulations Dottie and Cindy!!
|  Wow, there really is a property for everyone and somehow we had the right one for Dottie and Cindy. They found their dream home in Loyalton, CA and the listing just happened to be ours. The property is a new, never lived in home on 10 acres, backing up to USFS land. Here there will be plenty of room for their doggies to run. Two ladies who work in the tech industry and have been living in the Big City of Concord always wanted to get back to the country. We are glad to have met them and look forward to hearing how different their lives are up in the mountains. Congratulations also to Tom Parker who just managed to pass on the most beautiful property to the most appreciative new owners. |
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Kappy, Jennifer, Jody and Christie have a combined 67 years in the Real Estate Profession. We are committed to giving our clients the most up to date Real Estate information and Stellar Service because, We Love Our Work and So Will You! Call us or e-mail us for information about the Tahoe Truckee Real Estate Market. By the way, if you think any of this information might be of interest to anyone you know, feel free to forward this newsletter. We would really appreciate it!
Sincerely,
Kappy Mann, Jennifer Boehm, Jody Scowcroft & Christie Coker
Keller Williams Real Estate
530 563-6165 |
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Attention Propane Customers!!
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Last year the quantity of snow that fell in our region had some devastating effects on local homeowners. Besides the fact that many decks were crushed under the weight of the snow, there was a real crises involving propane.
I just had the opportunity to speak with Brent Armstrong of North Tahoe Fire District. This Fire District is on the warpath to avoid experiencing another year where propane leaks cause fires and possible loss of life and injury.
Apparently in 1983 there were some code changes that required retrofitting the propane tanks but over the years, and with the introduction of natural gas to our area, the importance of complying lost its sense of urgency and some tanks have slipped through the cracks.
In an effort to put some teeth into compliance, North Tahoe Fire has set a deadline of November 1st for the Alpine Peaks and Ward Canyon areas. What this means is that anyone who is not in compliance by that time will not be able to have their tank filled. The remainder of their district will be taken in a sort of grid like pattern until all homes are covered. If you live in the Northshore, you can contact Brent at armstrong@ntfire.net or (530) 583-6911 for more information. Or you can check it out here.
If you are the owner of a home ANYWHERE in the Truckee-Tahoe-Donner Summit area that has propane service, be sure to contact your local fire district and your propane supplier to make sure you are in compliance with the current code.
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Financial Planning |  | |
Do you have a financial goal you are thinking about? Buying a second home? Sending a child/grandchildren to college? A trip you'd like to take far away? Perhaps wanting to help a non-profit or others in need? Or just thinking about how to retire someday?
Leisa Peterson is a Financial Advisor at Wells Fargo Advisors and she helps clients develop an investment plan that fits their circumstances and is tailored to helping them accomplish their goals. When you meet with Leisa for an initial consultation, she'll take note of specific information regarding your current finances as well as your goals. Using this information, she will work with you to create a customized plan that identifies opportunities, potential problems as well as offers possible remedies and solutions.
Let's face it, the world of finance is very complex and it takes a lot of time to research and understand the choices available. So having someone help you navigate it all can be very useful especially when it comes to managing your personal finances.
For more information contact,
Leisa Peterson, MBA
Financial Advisor
Wells Fargo Advisors, LLC
925 Tahoe Blvd Suite 202
Incline Village, NV 89451
Office - 775-831-6107
Cell - 530-448-1558
Member SIPC
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Happy Halloween | |
Wishing all ghosts and goblins a frightful night and bags filled with goodies
Boo! |
| Termites in Truckee? |  | |
Yes it is true. We do have termites in Truckee. We were warned last week by Theresa and Richard Stikes, Owners of Gold Country Termite Control, that the frequency of occurrences of termite infestations are increasing up here in the Sierras, long thought to be immune to their infestations. Apparently the little buggers have decided to move up the hill. The type of termite that is infecting our local homes is the subterranean termite which is much more insidious and more damaging than the more common termite that you hear about down in the valley. This one cannot be eradicated by known ways of fumigation like "tenting." They must be treated by removing the infested area and treating the surrounding soil. According to the Stikes, the way to prevent this from happening is to treat the soil BEFORE the construction of the home has begun.
Other wood destroying pests that Gold Country deals with up here are Carpenter ants and dry rot. Check out their website to get more info on whether you should worry about these little critters too. www.goldcountrytermite.com Thanks Theresa and Richard for giving us one more thing to be aware of!!
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