Real Estate Information

Join the Foreclosure Bus Tour on October 18th!

See some of the many great deals that are available to home buyers in this market! 

Bank Owned - Foreclosures - Short Sales

SUNDAY, October 18 - 1:00 pm

• Van will leave from the Eureka Inn located at 7th & G
• Tour time approximately 2 hours
• Space is Limited to amount if seats available in van
• Registration is required

OUR GOAL IS TO SAVE YOU TIME & MONEY

Space is limited. For information please call 44-1765 or email info@thekesslerteam.com. To register now click here.

If you haven't picked up a National Geographic Magazine this month you should! They have put together a wonderful article on the impressive Redwoods that we have the privilege of living amongst. The photos are absolutely amazing and many of them show just how beautiful our area is.  You can also read the article online http://ngm.nationalgeographic.com/redwoods/redwoods.

Our Eureka area real estate market continues to show positive signs of recovery. Maybe a little slow, yet strong signs of a recovery just the same. And even though there where less homes sold in August then in July, the number of homes going under contract in August is huge, a whopping 69% increase over the same time last year. I’m very excited about the numbers we’re seeing, and the increased volume of buyer traffic thru our office.

             Home sellers, this is great news as homes are selling faster and for more money than previous months. 

This month, twelve of the homes sold where 3 bedrooms with a sales price between $166,950 and $470,000. Only six homes sold where 4 bedrooms with a sales price between $205,000 and $420,000. Of the majority of homes sold, sixteen where priced between $145,000 and $255,000. Four homes sold where priced between $279,500 and $300,000. We recommend home sellers in these two price ranges price their home aggressively with the mindset of accepting an offer within 3% of their asking price. .

The top 3 groups of homebuyers:

• 37% were 1st time homebuyers
• 19% were move-up buyers
• 15% were investors

For the first time this year, investor buyers made it into the top 3 buyer group. 19% of the home sales last month where REO, or bank owned properties. I’ve noted  that the REO properties are selling at or above the bank’s asking price. If you find yourself in a distressed situation where you are behind on monthly payments or think you may be late soon, contact us right away. Dean is the only real estate agent in Northern California that is an Advanced Certified Distressed Property Expert (CDPE).

Join the Foreclosure Bus Tour on August 30th!

See some of the many great deals that are available to home buyers in this market! 

Bank Owned - Foreclosures - Short Sales

SUNDAY, AUGUST 30 - 1:00 pm

• Van will leave from the Eureka Inn located at 7th & G
• Tour time approximately 2 hours
• Space is Limited to amount if seats available in van
• Registration is required

OUR GOAL IS TO SAVE YOU TIME & MONEY

Space is limited. For information please call 44-1765 or email info@thekesslerteam.com. To register now click here.

EUREKA AREA HOME SELLING TRENDS

Eureka Real Estate expert, DEAN KESSLER of THE KESSLER REAL ESTATE TEAM reports that home sales in the greater Eureka area gained positive momentum last month.

Kessler notes “As we went into June from a lackluster May, not many homes had sold yet we saw a dramatic increase in the number of buyers out looking. The results are in for June and we see now there was a 34% increase in the number of sales from May. With the increase in buying activity we have also witnessed home prices stabilize from their downward trend over the past couple of years.”

Kessler went onto say “First Time Home Buyers have some awesome opportunities to purchase right now. A large amount of home inventory at tremendous values coupled with loans at historically low interest rates make this a great opportunity for many buyers and sellers. And without a lot of press fanfare a huge plus developed last month where a first time homebuyer can now borrow a down payment against their future $8,000 tax rebate. This change allows a homebuyer to obtain a No Down Payment loan.”

“In addition, The California Association of Realtors came out with a program where by they guarantee to make a First time Homebuyer’s monthly payment in the event of a borrower’s loss of income. With all these incentives/guarantees it’s no surprise that the majority of home buying activity is being led by the first time homebuyers.”

The chart below shows real estate activity for the Eureka area as compared to the same time last year.

Kessler reflected on June’s real estate statistics by saying “The average sales price of a single family home in Eureka decreased slightly over the past month. This indicator does not necessarily mean that home prices have dropped. My opinion is that the First time Home Buyers are buying more entry level homes, which drive the “average” prices down.  June’s sales price average of $253,125 meant a home buyer purchased a newer 3 bed, 2 baths, 1400+ square foot home.”

A quick look at the least and most expensive homes sold in the Eureka area include a $95,000 1bed/1bath home “Resale” sale in Fields Landing and a $461,000 3bed/2bath “New Construction” home in the Cutten area.

So who were these buyers that are keeping our real estate market active? The top 3 groups of Home Buyers last month included:

· 45% were 1^st time homebuyers

· 19% were relocating to the area

· 16% were move-up buyers

Dean Kessler is the Broker/Owner of RMK Realty, Inc and Seller Specialist for The Kessler Real Estate Team. He holds the Realtor®, Accredited Buyers Representative (ABR), Certified Distressed Property Expert (CDPE), and Certified Residential Specialist (CRS) designations.

All statistics courtesy Humboldt Multiple Listing Service.   

EUREKA AREA HOME SELLING TRENDS

Eureka Real Estate expert, DEAN KESSLER of THE KESSLER REAL ESTATE TEAM reports that in the past month home sales in the greater Eureka area dropped off from prior months.

Kessler notes “The slow down in home sales demonstrates a market where Buyers are looking for value. If the buyer does not perceive the seller’s home to be a good value, buyer says next. Buyers are choosing to either wait for a value change in an existing home for sale; or wait for a home for sale new to the market that they perceive to be an better value.”

Kessler went onto say “More than ever, home buyers aggressively comparison shop. They have to see the value in the home in big, bold, letters. Sellers no longer have the luxury of offering to replace carpet or ask a buyer to visualize what a home would look like if the buyer remodeled the kitchen or fixed the deck. A seller’s home has to be the prettiest home for sale at the best price. If not, the seller’s only recourse to be competitive in this market is to reduce their asking price.”

“With over 11 months of inventory, home sellers where in intense competition with each other. For every 11 homes for sale in the Eureka area, only 1 home sold. If a seller was serious about selling, their home had to be a better value than the 11 other homes for sale a prospective homebuyer looked at.”

The chart below shows real estate activity for the Eureka area as compared to the same time last year.

Kessler reflected on May’s real estate statistics by saying “The average sales price of a single family home in Eureka increased for the second month in a row. May’s average of $275,926 increased 4% from April’s average of $264,311.  At $275,000 home buyer typically purchased a newer 3 bed, 2 baths, 1500+ square foot home.”

A quick look at the least and most expensive homes sold in the Eureka area include a $165,000 2bed/1bath home “Resale” sale in the downtown Eureka and a $460,000 4bed/3.5bath “Resale” home in the Cutten area.

So who were these buyers that are keeping our real estate market active? The top 3 sales groups of Home Buyers last month included:

· 48% were 1^st time homebuyers

· 26% were move-up buyers

· 9% were investors

Dean Kessler is the Broker/Owner of RMK Realty, Inc and Seller Specialist for The Kessler Real Estate Team. He holds the Realtor®, Accredited Buyers Representative (ABR), Certified Distressed Property Expert (CDPE), and Certified Residential Specialist (CRS) designations.

All statistics courtesy Humboldt Multiple Listing Service. 

BUYING A HOME WITH NO DOWN PAYMENT IS BACK

Just a few days ago the Federal Housing Administration (FHA) issued a policy change concerning a home buyer’s down payment. Previously the FHA had required 1^st time home buyers to have a down payment prior to obtaining an FHA loan. For many 1^st time home buyers, having that much cash in hand was difficult, especially in these economic times. The FHA’s new policy now allows 1^st time home buyers to borrow their down payment.

In the past year FHA loans have become the number one loan product used by 1^st time home buyers in a home purchase.  FHA loan funds are available, require a low down payment, and have very competitive interest rates. The FHA’s recent announcement should help the many home buyers who have the desire to buy a home and could qualify for a FHA loan, yet did not have the down payment funds required to participate in these loans. They can now borrow the down payment.

So how does this policy change affect prospective homebuyers and home sellers? With any home purchase loan, a buyer has had to fund two distinct expenses. The first expense was the “Closing Cost”, a catch-all category of expenses where all the home purchase and loan acquisition expenses are lumped into one “Closing Cost” expense.  “Closing Cost” expenses generally equal 2 to 4 percent of the loan amount.  A mortgage broker or banker assembles these expenses for their buyer on a document called the “Good Faith Estimate”.  In a prior market, a buyer typically would have paid these expenses “out of pocket” at the close of escrow.

Yet the great thing about “Closing Cost” expenses is that they don’t have to be paid by the buyer. So in this market a seller can help sell their home by offering to contribute funds toward the buyer’s “Closing Cost” expenses from the seller’s proceeds at the close of escrow. This concept has been used with great success by numerous home buyers and sellers in our area.

The second expense for buyers is the down payment. Earlier this year the Federal Government came out with an stimulus plan to help assure the down payment to where a first time home buyer in 2009 can receive up to an $8,000 tax credit in their 2010 tax return. A great concept, yet it doesn’t help a home buyer today who is unable to fund for a down payment expense but could otherwise qualify for a FHA home loan. This tax credit initiative is set to expire 12/01/2009.

To help out the home buyer with a good job and great credit but little cash participate in this stimulus package, some municipalities began offering down payment “bridge loans” to 1^st time homebuyers. These bridge loans gave the home buyer an ability to borrow their down payment against their 2010 tax return and make the home purchase. Homes sold benefiting both buyer and seller and the community benefited by turning vacant homes into active neighborhoods.

Apparently the FHA loan folks thought the idea of a loan against an eventual tax return was a secure loan. On May 29^th, the FHA circulated a policy letter that now will allow a home buyer to borrow their down payment from an institutional lender and still participate in a FHA loan. The foundation for this down payment loan appears to be the $8,000 tax credit the home buyer will receive with their 2010 tax return and their ability to pay the loan back promptly.

How does this new policy apply to the Eureka area where the average sales price last month was $275,000? Under FHA rules, for a $275,000 purchase price a Buyer’s closing cost expense could be $5,500 to $11,000. As discussed previously we have seller’s agreeing to pay part or all of this expense at the close of escrow.  The buyer’s down payment expense would be $9,625. Under this new FHA policy, a buyer can now “borrow” the down payment today and can still apply for a $8,000 tax credit in 2010 against that down payment.

(To round out the discussion of tax credits, there is an additional $10,000 tax credit for those home buyers purchasing newly constructed homes).

This is not a “free money, stated income” loan like we experienced a few years ago. Borrowers must qualify under the FHA’s funding guidelines. Yet with over half of all Eureka home sales attributed to 1^st time homebuyers, this new program should help many more home buyers achieve the dream of home ownership in a time where home prices are very competitive and interest rates are at historical lows. On behalf of the many home sellers and prospective home buyers, and our community, I’m so very thankful for this new FHA policy. The rewards are great for those who see and use the opportunity.

Dean Kessler is the Broker/Owner of RMK Realty, Inc and Seller Specialist for The Kessler Real Estate Team. He holds the Realtor®, Accredited Buyers Representative (ABR), Certified Distressed Property Expert (CDPE), and Certified Residential Specialist (CRS) designations. He can be reached at Dean@TheKesslerTeam.com.

All statistics courtesy Humboldt Multiple Listing Service. 

Eureka Real Estate expert, DEAN KESSLER of THE KESSLER REAL ESTATE TEAM reports that in the past month home sales in the greater Eureka area remained consistent.

Kessler notes “It’s unfortunate to have to report a dramatic increase in the number of “bank owned” home sales in the past month. It simply means a prior home owner went thru the pain of foreclosure rather than pursue the many other available options to foreclosure.

Kessler went onto say “The pain of foreclosure severely degrades property values of all homes in our community. For example, last month a “bank owned” 3bed/2bath home in Myrtletown sold for $233,600. Previously a comparable “resale” home in the neighborhood sold for $257,500, a difference of $23,900. This difference now reduces property values by $23,900 of all comparable homes. Reason being, appraisers have to use the “bank owned” home sale in their valuation assessment of future home sales. Let’s take it to another level. Using the same “bank owned” home sale, let’s say there are 200 comparable homes in the greater Eureka area. The County’s tax base was just reduced $4,780,000 as a result of this one “bank owned” home sale. Keep in mind, there were 5 other “bank owned” home sales that had occurred last month. If my example “bank owned” home sale was the average sales price (and it was), the County’s tax base was reduced by almost 29 million dollars as a result of the six “bank owned” home sales last month”.

The chart below shows real estate activity for the Eureka area as compared to the same time last year.

Kessler reflected on April’s real estate statistics by saying “The average sales price of a single family home in Eureka increased 8% to $264,311 from March’s average of $241,922. This increase appears to be an anomaly attributed to a couple of large dollar home sales last month. Most of the home sale activity is occurring below the $250,000 price point.”

A quick look at the least and most expensive homes sold in the Eureka area include a $169,900 3bed/1bath home “Bank Owned” sale in West Eureka and a $570,000 3bed/2.5bath “Resale” home in the Humboldt Hill area.

So who were these buyers that are keeping our real estate market active? The top 3 sales groups of Home Buyers last month included:

· 43% were 1^st time homebuyers

· 14% were move-up buyers

· 14% were buyers relocating to the area

For the fifth successive month, 1^st time homebuyers continued to be the largest group of buyers in our real estate market. With the availability of really low interest rates and accompanying low home prices, 1^st time home buyers are listening to the advice of  Buy now, it’s simply too great of an opportunity to pass up.  The $8,000 tax rebate being offered by the government just about covers the complete down payment needed for an FHA loan. And the FHA loan is the most popular loan product used by 1^st time homebuyers. And the news keeps getting better. Factor in an additional $10,000 tax rebate being offered for purchasing a newly constructed home and one can see how1^st time home buyer’s are realizing a smart home purchase now, and a sizeable income tax return in 2009/2010.

Dean Kessler is the Broker/Owner of RMK Realty, Inc and Seller Specialist for The Kessler Real Estate Team. He holds the Realtor®, Accredited Buyers Representative (ABR), Certified Distressed Property Expert (CDPE), and Certified Residential Specialist (CRS) designations.

All statistics courtesy Humboldt Multiple Listing Service. 

Eureka Area Real Estate Distressed Property Inventory Hits New High

The number of distressed properties facing foreclosure in the Eureka area continues to increase. Over the past 4 months, 164 homeowners received a Notice of Default, the first step in the pre-foreclosure process. Unfortunately, an additional 64 homeowners received a Notice of Sale, the final step before their property is sold at auction on the courthouse steps.  Finally, an additional 85 homes went to auction and where foreclosed on.  (Statistics retrieved from RealtyTrac.com)

Facing a foreclosure is a scary thing, but there are things you should do – and shouldn’t do – to avoid making the situation worse.

DO answer the phone and read your mail. Avoiding your lender won’t make the problem go away. In fact, it will only make the problem worse. Your lender may be able to help you, so be sure to answer the phone and read any mail they may have sent you.

DO realistically assess you situation. Are your financial problems temporary? If you are temporarily out of work and will be fine once you find a new job, call your lender. Lenders may be able to offer a forbearance or repayment plan.

DO consider your options. If you are not in position to keep your home, consider selling it before you face a foreclosure. If you have already missed a mortgage payment, call your lender. There may be purchase options, like a short payoff or assumption.

DO be aware of certain financial responsibilities. Even if your lender sells your property, you may still be responsible for the difference in the sale price and what you owe. It is important to realize that you may be responsible for certain taxes when a lender forecloses on your property. However, the IRS does provide tax relief in certain situations.

DO protect your wealth. Recognize that you may have significant equity in your property that must be preserved.

DON’T move out of your home. In order to qualify for assistance, homeowners are often required to be living in their home. Be sure to talk to your lender before you think about moving.

DON’T ignore the problem. It may be possible to keep your home, but if you wait to take action, fewer options will be available. You have certain rights and can take certain actions to help keep your home; however, you only have a limited amount of time.

DON’T convince yourself you can afford a home if you can’t. Most lenders will only lend what a borrower can afford, but some less scrupulous lenders will allow borrowers to get in over their heads. In some cases, a home that was affordable becomes unaffordable due to changes in your life circumstances. Call your mortgage company; they may be able to help you avoid foreclosure by agreeing to an assumption or a short payoff.

DON’T fall victim to a scheme. Some people want to profit by your misfortune by offering to contact and conduct all work-outs and negotiations with your lender on your behalf – for a fee.  

Reprinted from www.freddiemac.com