Buyers Can Help Themselves During The Course Of Escrow

Buyers Can Help Themselves During The Course Of Escrow

Congratulations to you Buyers that are in escrow. Great price and great interest – it is a great time to be a Buyer. To make sure your buying experience is smooth and successful there are some ways you can help yourself through the course of your escrow. It isn’t automatic that escrows close, and it is important that you help yourself along the way to make sure that yours does.

One area that causes delays, and frustration, in escrow is not having all the documents signed, or signed in a timely manner. There are many, many documents to sign during the course of negotiation, escrow, loan, and closing. If you are asked to sign something, something you agree with, make a point to sign and return it in a timely manner. If you have questions, ask them right away and get your answers. Don’t delay your performance because you are not happy with, or are questioning, something.

If you are getting a new loan, don’t make any purchases without talking to your lender. We’ve seen a simple new $1,500 credit line at a department store blow a Buyer’s ratios and almost cause the Buyers to lose their new home. Without a private money swing loan they would not have been able to buy their home … this news coming in while the Sellers are actually loading the moving van anticipating closing the next day. Credit will be rechecked before funding. If you get a new credit card, buy a new car, etc. you can jeopardize your loan.

When you get your inspection reports – read them and make your repair requests immediately. Repairs must be ordered, tradesmen scheduled, re-inspections made. A delay of a couple of days can cause you grief at the closing end.

How is your communication with your lender? Are you talking about locking your interest rate? Do you know your rate … for sure? A shocking higher rate when you are ready to close, even if you can qualify and make the payment, is not a pleasant experience – especially if it could have been avoided. Are there pre-doc conditions? Pre-funding conditions? If so, get them handled as quickly as possible as things will be delayed until you do.

Be available to your agent, be responsive to your agent, talk to your lender, stay active. You don’t have to be alert 24/7, but don’t go underground. If you travel stay in touch. With email and faxes it is easy to get documentation to you most anywhere on the planet in a timely manner.

Our advice: Delays in your actions can lead to a delay in the close of escrow. These days there are new potential delay factors that we must deal with. The appraisal may be reviewed. The underwriter may initiate an unexpected and unexplainable hurdle that must be dealt with. You can’t control those items, but you can control your actions. Be timely, pay attention, keep smiling, take action. Be sure to bring certified funds to close the escrow, i.e.- cashier’s check or have the funds wired, no personal checks.

Remember to set up your utilities for the close of escrow. If the Seller schedules them to be turned off you might be without power, gas or water for a few days. It’s the details of the transaction that will help you maintain your peace of mind as you move towards home ownership … pay attention to them for your own sake. When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

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Lisa Wetzel and Jim Valentine are the authors of this blog. Lisa, Jim and Jessie are experts in Carson Valley, Carson City and the tri-county area of Douglas County, Carson City and Lyon County. Call our team anytime at 775-781-5472 or 775-781-3704. To Search for Homes go to: www.findhomesincarsoncity.com of visit our website at www.CarsonValleyLand.com

You’re Taking Action … How To Look At A Home

You’re Taking Action … How To Look At A Home

So you’re getting off the sideline and into the game … ready to look at houses. You’ve been pre-approved, have a good agent, have your wants and needs figured out and you’re ready to go see the insides. What do you do?

Many homes are vacant these days. Vacant homes are easy to access, but will require some imagination to see how the home will work for you, your furniture, and your lifestyle. Take some time to visualize in the empty space how your life will flow. Imagine it in the condition you want it to be in and what it will take to get it to that point.

Don’t be bashful when looking at an occupied house. You are about to make a substantial purchase and you should know how it will work for you. Open the closets to see if they are big enough – many are surprising when you open the door. Open the kitchen drawers to see how they function. Visualize how your furniture will work in the house. They may have it set up right … or not. Don’t miss the right house because of decorating … and vice versa … don’t buy the wrong house because of decorating. Don’t like the color of the bedroom? Paint can be changed quickly so don’t pass up the right house because of the wrong paint. The same applies to carpet albeit at a greater expense than paint.

Be sure to look at the outside of the home. Go around the sides and look at the paint, siding, drainage, etc. Look at the roof – especially the southwest side in our area as that is where the prevailing weather comes from causing it to be the first part of the house to deteriorate. Check out the neighbors’ situations, i.e.- visual blight, obnoxious dogs, encroachment on the subject property, etc. The inspectors will find the physical deficiencies later, you must find the aesthetic ones when you view the property.

Look at the items that are included in the sale, or that you might want included in the sale. This can include the wood stove, refrigerator, lawn ornaments, etc. Make a note of what it looks like – especially it has been disclosed that something will be substituted, i.e.- they are replacing the heirloom chandelier.

Leave the house how you found it. If the blinds were closed – close them. Whether to prevent heat build up and sun fading the carpet/furniture, or simply for privacy, it’s what the owner wants. Turn off the lights that you turned on. Re-lock the doors and windows that you unlocked as you checked the home out. Don’t lock the doors that were unlocked – you might unwittingly lock an owner out of the house. Pets must be left where they were found – inside or out. They’ll make a break for the “greener pasture”, but they know they shouldn’t be there and you should know that as well.

Our Advice: Take a lot of pictures of the homes that meet your general criteria. It is easier to remember details later if you have pictures of the properties you liked. The pictures can help you if there is a problem between what was seen during your inspection and what is there at the close of escrow. Rare, but things can happen. If you forgot your camera most agents have a digital camera ready.

Be bold when looking at houses – it is going to be your home. Ask questions … get answers. Its work, but it’s worth it. Your agent will help you along the way. When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

Spring Cleaning For Living And Selling

Spring is a time of transition, especially in how you live in your home. You’ve been buttoned up all winter, but now you can break out of your “winter cocoon”. Open the windows and let this fresh spring air circulate through your house. Clean out the debris gathered around the your home, inside and out. Flower gardens, ditches, nooks and crannies all seem to be gathering places of “stuff” all winter.

Winter has a way of causing dirt to accumulate in a house. Tracking in mud and snow doesn’t show much at the time, but the potential for damage is realistic. Dirt granules in a carpet that chafe on the fibers will dramatically reduce the life expectancy of your carpet. Even if you don’t see discoloration it’s a good idea to clean them for the maintenance factor. Wood cabinets and furniture can also be affected by winter. The closed up house can cause the wood to dry out excessively - treat each item appropriately.

Spring is also a good time to change your furnace air filter. You’ve been recycling the air in your closed environment all winter, and the filters worked overtime all that while. You will soon be deluged by pollen and other environmental “pollutants” that will readily enter your domain because your home will be open more as you begin sleeping with the windows open, and leaving your windows and sliders open.

Windows … yes, you’ll need to do windows! Clean the fog off and enjoy the clarity of Spring. Can’t get the fog off? You might have a broken seal. This will need to be replaced to sell your home so you might as well fix your broken windows now so your home will show better and build confidence in prospective Buyers. Open your window coverings – you are between summer heat and winter cold insulation needs – let the light in. Clean the blinds and drapes.

The days are getting warmer so be sure to get your watering going. Show the green of your lawn – most Bank Owned properties won’t be able to compete with that. Keep up with your weeds – it is essential for a groomed inviting look. Surely, we have a freeze or two still coming so be careful how soon you add your flowerful colors.

Our Advice: If you are considering selling your home, the above should be considered minimum standards for preparing your home for market. Consider this “Staging 101”, the basic essentials. A Buyer will be naturally put off by driving up to a home with weeds all around it, or trying to look at the beautiful views through a foggy veil. The stale winter air should be moved out and the house generally freshened up in the natural spirit of Spring. You can get good separation in your market from Bank Owned and Short Sale properties by cleaning, freshening, and making your home appealing as a home that a Buyer will relate to and want to live in. Not moving? Do it anyway and enjoy the results!

Have you ever washed your car and fixed the brakes so you could sell it … and wondered why you didn’t do it for yourself? This time is just like that time! Do it and enjoy the results … whatever your ownership future or fate. When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

Do Not Let Your House Go To Foreclosure Without Taking Every Step To Prevent It.

If you owe more than your property is worth, you have as a Distressed Property. Until recently, working with Distressed Properties was fraught with peril for agents, and owners were often told to “let it go”, ie.- stop making payments and let the lender foreclose. We’ll spare you the horrific Short Sale experiences as well as our speculation as to why the lending industry was so slow to adapt to the need to cooperate with home owners and their agents. Times have changed and Short Sales are now viable and should be given serious consideration.

Unknown to most of us until about 18 months ago, Short Sales are now very common, and it is very important to understand their benefit to the homeowner. Consider some of the following differences between the effects of a Foreclosure versus a Short Sale:

Credit Score: A Foreclosure will lower your credit score 250 to over 300 points for over 3 years. A Short Sale will show late payments, but the score will be lowered as little as 50 points, and the affect can be as brief as 12-18 months.

Credit History: Foreclosure will remain on credit history for 10 years or more. Short Sale is not reported on a credit history as there is no specific reporting item for “Short Sale”. Foreclosure remains on public record forever as it is recorded.

Employment: Employers often actively check credit of employees in sensitive positions – especially security clearances (Military, Police, Public Communication, Public Utilities, etc). Foreclosure can result in immediate reassignment or termination if employed, or can prevent you from being hired if you are looking for work. A Short Sale is not reported on credit report … is not a challenge to employment.

Deficiency Judgment: In a Foreclosure the bank has the right to a deficiency judgment. Some successful Short Sales provide for the lender to give up the right to a deficiency judgment. If a deficiency judgment is pursued the Short Sale’s higher yield from the sale results in a lower potential judgment amount.

Future Fannie Mae Loan: After Foreclosure you’ll be ineligible for a Fannie Mae backed loan for 5 years. Short Sale - 2 years.

Future Loans: For 7 years you will be asked on your application if you have had a foreclosure, but there is no similar declaration regarding a Short Sale.

Our Advice: There is now a designation known as Certified Distressed Property Expert that has been earned by local real estate agents to help Sellers and Buyers of Distressed properties. If you have cash flow or moving issues, we suggest you get professional help to assess your situation, determine alternative options, and make an action plan. The world of Short Sales and Foreclosures has changed from the frustrating mass confusion that it was to today’s smoother processes with positive results. Though there is still frustration and emotion, help is available to you that can help you establish and achieve your goals through the confusing maze.

Whether getting the financial elephant off your back, moving to put the family together, or other bona fide reason for selling … if you have a Distressed Property get with a Certified Distressed Property Expert and take control of your future. Foreclosure is the last option…do what you can to avoid it.

When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472, carsonvalleyland@hotmail.com, www.carsonvalleyland.com

We Are Reading Better News! … Is The Real Estate Market Improving?

We’ve been teased by market surges before during the past eighteen months, but there seems to be a different feeling this time. Yes, things are getting better, and in some cases much, much better. We have seen the entry level market, up to $225,000, getting tremendous activity lately. That includes many showings, offers – in some cases multiple offers on the same property, and offers greater than the asking price. More than half of the listed homes in some of those markets, i.e.- the Gardnerville Ranchos, are now in a Pending status. That means the owners have accepted an offer and they are in escrow.

Other price points have not seen the surge, but it could be coming soon for a couple of reasons. The first is the obvious, as the move-up Buyer is finally able to sell they will be actively shopping. The move-up Buyer has been teased watching the prices fall on homes in their desired neighborhood, but unable to act because of the lack of activity on their home. That is changing, and they will soon be shopping.

In the past few days the terms on Jumbo loans were greatly improved. Lenders had clamped down on Jumbo loans when the debacle started because they didn’t want the risk. Rates were two or more points higher than a conventional loan, and qualifying was a nightmare. That slowed the upper end market to a crawl … one of imperceptible motion if truly analyzed. With the new terms just being announced it will take some time to see their effect on the market, but it is likely that it will create new activity after the word gets out about it. Homes that were once appraised at $1.6 million now available for under $800,000 is too much of an attraction to the qualified Buyer. The Market will be there now that reasonable financing is.

Another Market changer is the Lenders new attitude about and their responses to short sale offers of late. This is having a significant impact on the Market as it is slowing the amount of foreclosures. Short sales are better for neighborhoods as the property remains in good condition while the owner continues to reside in it. That means there will be fewer bank-owned properties dragging the values down so far and fast as they have been doing. This is a change from what we’ve experienced over the past 18 months, one we’ve been hoping would occur. The process has been enhanced by special short sale services of some escrow companies that are getting good results from their communication with the lenders, something that agents came to loathe before this attitude change.

Our Advice: It is apparent that the First Time Home Buyer Tax Credit incentive is having a positive effect in our real estate Market Place. If you qualify for that and are thinking that it might be a good idea to buy a home now … quit thinking and start doing! The Market is changing and as it gains traction the pricing will also change. You have great interest rates and pricing available to you, but now you have competition in the Market place. Good old capitalism (remember that?) is again in play. The same dynamics will soon occur in the other price ranges for a variety of reasons. If real estate is on your mind be sure to update your expectations … you might be pleasantly surprised.

Don’t hesitate to act now if you are timing the Market … you may just be outfoxing yourself instead of the Market and Sellers! When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

I Really Want To Buy A House But Can’t Do It By Myself … What Can I Do?

The good news is that you are aware of what a great time this is to buy a home. Interest rates just went down again and prices are still very low. So what can you do to buy a house? The traditional source of assistance was family. Your parents might be happy to assist you, but there are other options with broader thinking.

If you need additional income to qualify, another way to buy a home is to partner up with somebody. Are you living with a roommate now – why not own together? How about your college friends or co-workers? Is there somebody you really get along with that is responsible? Is your brother/sister renting in the same town? You lived together for many years up to this point, why not do it again and have a business investment together? Your good income with your partner’s good credit, or vice-versa, is the combination your are seeking. With the low interest rates and prices it is amazing how low monthly payments are … and the income needed to qualify for them. Check it out – you will be amazed at what you can buy.

Our youngest son recently closed escrow on a wonderful home with two friends. They put 3.5% down, got a new FHA loan and their total payment, including taxes and insurance, is just about equal to what they’d have to pay in rent! Plus … they will share the $8,000 first time homebuyer’s tax credit. Their anticipated holding period is 5-8 years, enough time to get done with schooling, and establish careers. What will the market do during that time? We think it will be kind to them and give them a good financial start in life with this initial real estate investment.

The mechanics are important when buying with a partner … be sure you get along. Not only is this a business venture, you will be living together. Select carefully. Determine in advance who will get the master bedroom, use of the garage, etc. Have a pet policy … cats, dogs okay? Snakes? Be sure you have a household account with reserves. Our son and friends set up a household bank account titled “Three Amigos”. That makes for easy record keeping and assurance that there will always be funds available when needed for a common expense.

It is important to memorialize your agreements in writing. A Memorandum of Understanding should include responsibilities, and how future decisions will be made. What if one of you wants out? What if one doesn’t make their share of the monthly payment? What is one gets married and another person is suddenly involved (hint - get a Quitclaim Deed). Do this in advance when everybody is getting along.

Our Advice: Understand, the statement “partnerships were made in Hades” is very true, but they can work well with the right preparation and circumstances. There are 100% loan programs available in some of our communities. You can buy with nothing down and get an $8,000 tax credit for doing it. These are the good old days. Look at your options … these and others.
While the present economic situation is causing heartache and pain for many … there are some silver linings to these dark clouds. This is a wonderful opportunity for young American entering the work force to partake in the American Dream. When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

Rub A Dub Dub There’s a Goose In Our Tub!

Its never dull in the country. Went out the other morning and one of our Toulouse geese wouldn’t stand up. Just sat there in the mud. She stood up and couldn’t walk so I picked her up and took her in the house to “sick bay”. As she is a rather large bird, and our dogs are very curious, a box just didn’t seem to work. Ended up using the guest bath tub. Set her up with grain, lettuce and water. She was docile and timid … not her normal demeanor.

Our grandson came to visit and seeing her in the tub exclaimed, “she’ll probably lay an egg”. Ha! A sick goose laying an egg in the tub …right. You guessed it – the next morning there was an egg in there … a big goose egg. Nothing like an eight year old to expect the unexpectable.

It has taken a couple of days, but now she’s starting to stand, and even squawk a bit when we aren’t in the room. We’re going to plug the tub and float her in a little bit. It’ll take the load off of her sore leg, and she can get a bath … one of a goose’s most pleasurable pastimes. Happily, it looks like she is recovering nicely and can join her fine feathered friends in a few days.

For our city friends, we call our Toulouse geese “Granny Goose Geese” – now you know what she looks like.

What’s Up With Sneaky Buyers and Sellers?

To have effective representation you must have good honest communication with your agent. It is surprising how many people don’t tell their agent what’s on their mind, or even answer questions in an honest manner. When you go to the doctor’s office and are asked, “Where does it hurt?”, do you stay mum and have him push, pull, twist, prod, and poke until he finds where you are hurting? Of course not!

Walking in to a real estate office and not being candid about your wants, needs, abilities, and overall situation is no different in its absurdity, but it is truly amazing how often that happens. Most agents will quickly ask you a simple question, “Are you working with an agent?” You might have been, but aren’t happy with the service. If so, explain it just that way. You might not like what the other agent told you, or how you were treated - explain it that way. If an agent won’t show you certain properties, if an agent only shows you listings from their own office or won’t show your listings from a specific other office, or if an agent doesn’t hear what you are trying to tell her … you have good cause to change agents. Share your frustration with your new agent – don’t keep it a secret.

If you simply don’t like what you are hearing from that agent, though you know it to be true in your heart, you aren’t being realistic. In that case you aren’t being fair to you and your family, or to either of the agents involved. You can’t escape the truth by agent shopping. If you find an agent you can push around, or one that says only what you want to hear, you’re setting yourself up for frustration and failure.

It’s okay to be cautious with personal information until you reach a level of comfort with the agent you’ve just met, but be truthful when your agent is asking qualifying questions. Qualifying questions are what the good agent asks about you and your situation so she can get an understanding of how she can help you. The weak agents don’t ask the hard questions because they are afraid of the answers they will hear. The good agent knows that they need the information in order to properly assess your situation and match it to the market. Without it they would be like a doctor that gives you a pain pill without knowing your broken bone is in need of repair.

Real estate is multi-dimensional … it is not a black and white business. You have personal Past Experiences, i.e.- grew up in a two story farm house; future Goals, i.e.- want horses; present Needs, i.e.- want kids in certain elementary school … all which must be understood and applied by your professional real estate practitioner to the market. If you don’t share and they don’t ask you are both in the process of finding the proverbial needle in the haystack – a waste of everybody’s time.

Our Advice: Whether buying or selling, it is more important now than ever to have competent professional representation in your real estate transaction. Your agent can help you keep the right perspective and separate fantasy from reality. Understand that there are those that will abuse your candor so proceed with caution as you develop your relationship with your agent. Your honest agent will listen to you and serve your needs based on what you are saying … sharing their thought process along the way.

You’ll know when you are in the hands of a professional. Its then that buying and selling real estate is a magical process as your dreams manifest. When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

It's Not Every Day We See Our Critters In The Newspaper! Corky Makes Her Debut!

Oh! The Joys of Country Living!

We live in a small community in Northern Nevada just 15 minutes from Lake Tahoe and an hour south of Reno.

Although we have lived and worked in Carson Valley for a long long time we just moved “out” to the country 5 years ago. Leaving our ”in town” home of 25 years to relocate on to 5 acres was a long term goal for Lisa. Jim … with the bribery of a new Kubota tractor to “farm” with … was a fairly easy convert.

This morning, a quite country Sunday, we opened out local small town paper to find a good sized photo of our newest miniature donkey smiling at us from the second page! Apparently someone on the Record Courier staff thinks she’s as cute as we do!

For All you Carson Valley Real Estate or to look through all our Northern Nevada Real Estate Listings … Search the Entire Northern Nevada MLS …Click Here

My Agent Keeps Telling Me To Reduce My Price … Can’t She Sell Anything?

Your Agent is continually talking to you about lowering your price because the market keeps dropping and your home clearly hasn’t sold. Quit the ostrich act! It isn’t your Agent that is necessitating the downward price adjustment - it takes a willing Buyer and a willing Seller to make market value. When there are many listings and few Buyers, the market value declines … supply and demand. It isn’t your Agent’s lack of selling skills or incompetence (we hope) that are causing your home not to sell if it isn’t priced right for what you are offering.

Agents don’t make the market … but the good ones monitor the variables closely to enable you to stay current in the market such as: interest rates; the economy – local, regional, National… even Global today; the inventory – existing and new product coming on line, the overall Market activity, Buyer demographics; other investment opportunities or vogues; changing area amenities, i.e.- increase in medical services in the community; and many more.

When the market runs up some Agents don’t have their Sellers make adjustments. When the property sells the Seller doesn’t know how much was truly left on the table. When the market drops it is evident to all if a property isn’t priced right – the property sits on the market … and sits…and sits. Properties that are priced right are for the most part selling. The price is up to you, the Seller, and what a Buyer is willing to pay for what you have.

Buyers today want a great buy … your Agent can’t control that. She can tell them how your home stacks up in the Market, but she can’t prevent the “lowball” offer that so offends you. She can tell them why your home is priced so well, but she can’t overcome their “media paralysis”, their fear to act because of what others have told them they should fear. Some are so afraid by what they see and hear that you could give them your home and they’d be afraid of “the catch”.

Our Advice: Your Agent cannot overcome the collective consciousness of our society which today is in such a panic that many people have simply put their lives on hold. She can, however, be realistic, positive, energetic, and attentive to your needs as she approaches her fiduciary duties daily to get your home sold by finding the good smart Buyers that are out there today taking action. Good agents can help you save, or make, money by helping you make good decisions. That can be interpreted for some Sellers as minimizing their ultimate loss. It shouldn’t be a test of wills between you and your Agent – you should be working towards a common goal – selling your home for the best possible price in a reasonable time and protecting you from problems.

Money seems to be ready to flow back to real estate from stocks given the great real estate prices, incredible interest rates, and brilliant future of real estate. As the money flows, prices will gain traction and things will turn around. This is now the peak opportunity for Buyers to make their best buys, and for Sellers to maintain their optimism about their home selling. Enjoy it – these are the Good Old Days! When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com