We just wanted to make sure you see some of the great homes that have recently come on the market. If you would like to get more information on any of these properties please call (707) 441-1765 or email Kristi@thekesslerteam.com.

ID# 230226– EUREKA, 2BD/1BA - $265,000

http://www.youreurekahomesource.idxco.com/idx/4363/details.php?idxID=283&listingID=230226

ID# 230230 - MCKINLEYVILLE, 3BD/2BA - $269,900

http://www.youreurekahomesource.idxco.com/idx/4363/details.php?idxID=283&listingID=230230

ID# 230206 - EUREKA, 3BD/2BA - $299,000

http://www.youreurekahomesource.idxco.com/idx/4363/details.php?idxID=283&listingID=230206

ID# 230209 – ARCATA, 3BD/2BA - $249,900

http://www.youreurekahomesource.idxco.com/idx/4363/details.php?idxID=283&listingID=230209

ID# 230196 – ARCATA, 3BD/1BA - $289,950

http://www.youreurekahomesource.idxco.com/idx/4363/details.php?idxID=283&listingID=230196

ID#230198 – MYRTLETOWN, 3BD/2BA - $280,000

http://www.youreurekahomesource.idxco.com/idx/4363/details.php?idxID=283&listingID=230198

ID# 230192 – FORTUNA, 3BD/2BA - $194,900

http://www.youreurekahomesource.idxco.com/idx/4363/details.php?idxID=283&listingID=230192

ID# 230183– EUREKA, 3BD/2BA - $279,900

http://www.youreurekahomesource.idxco.com/idx/4363/details.php?idxID=283&listingID=230183

ID# 230144 – EUREKA, 2BD/1BA - $199,000

http://www.youreurekahomesource.idxco.com/idx/4363/details.php?idxID=283&listingID=230144

ID# 229822 – ARCATA, 3BD/1.5BA - $275,000

http://www.youreurekahomesource.idxco.com/idx/4363/details.php?idxID=283&listingID=229822

Please join us for our free February Home Owner Seminar. We are devoting the entire seminar to answering questions about loan modifications and short sales (Selling for less than is owed on the home).

• How to decide whether to loan modify or do a short sale
• What paperwork is involved
• What are the credit implications and when will creditors calls stop
• What are the benefits of doing a short sale vs. foreclosure
• Which are the best and worst banks to work with

WHEN: Tuesday, February 23rd -  7 to 8:30 PM & Saturday, February 27th - 1 to 2:30 PM 

WHERE:  The Adorni Center - Conference Room. 1011 Waterfront Drive, Eureka      

HOW:  Call 441-1765 or email Katie@thekesslerteam.com to reserve your spot. Space is limited

Sincerely,
The Kessler Team

2009 was a very tough year for many of us for a lot of different reasons. Many people are unemployed or underemployed and are feeling financial hardships or even losing their homes. I want to give you some tips and financial insights for 2010. 

Step 1: Start accounting for your money. Fill out a profit and loss statement every month for your family. I have bee doing this since 1996. Every month, track all your bills and spending along with your income.

Step 2: Pay off all revolving debt. Credit cards are making banks rich. Send in extra money every month to the smallest balance card first and pay them off one account at a time.

Step 3: Either refinance or modify your mortgage. Because of the drop in values, you may only be able to modify. Contact your servicer (the one you make your payment to) and go to their home retention department and file for hardship modification. You may need to call 100 times to get it done. The squeaky wheel gets the oil.

Step 4: Save 20% of your gross taxable income. You must do this or you will always struggle financially. I know it’s HARD to save 20% of gross taxable income (W-2 Income) but it will make the difference the next time the economy struggles.

 These are the great steps that I live by.

Thanks for all your support in 2009 and please, if you or someone you know wants to buy or sell a home, we would greatly appreciate the business in 2010. The economy is slowly starting to improve.

It’s saddening to report Eureka’s area foreclosure rate continues to increase, both in the number of home owners entering into pre-foreclosure and those going to bank auction. These numbers could have been significantly higher except for a 2-week foreclosure moratorium most banks extended over the last two weeks of December. I fear January’s and February’s foreclosure numbers will be dramatically higher. Please, if you know anyone who is unable to keep up with their mortgage payments, have them call me - right now. There are simply too many options available to let a catastrophic event like a foreclosure auction destroy a person’s financial future for the next 5-7 years.

I have set up a special website (www.EurekaForeclosureHelp.com) just for distressed homeowners. It has the very latest information on foreclosure avoidance including President Obama’s HASP, HARP and just released HAFA loan modification programs. If you or someone you know has questions about how to get out of a pre-foreclosure, my website has answers. Yet the best option is to just drop me an e-mail or give me a call.

              Looking at last month’s sales in Eureka, the homes for sale inventory is down, the number of homes going under contract and the number of homes sold is up. WAY UP! Great news for home sellers and for home buyers.

30-year, fixed rate interest rates are at their lowest levels in decades, averaging 4.71 percent. Freddie Mac, a gigantic lender in the home loan market goes onto state that the 30-year home loan interest rate has never been this low since they began their weekly survey in 1971.

If you have questions about how this tax credit could work for you or someone you know, get the up to minute real estate and loan information on my blog site. Or just drop us an email or give us a call.

1. Look for BANK OWNED homes in the Winter! Looking to buy a Eureka, Arcata, Fortuna or McKinleyville REO (Bank Owned) home? REO homes are often “winterized” with the power & water off. This makes them COLD and DAMP during the winter. Hearty souls can beat the competition by shopping mid-winter and get a bargain.

2. DECORATE LATER. Purchase at significant savings then bring in your contractor after closing. REO homes are sold AS IS (torn carpeting, water damage, missing appliances, etc.). Occasionally you can negotiate for repairs on major issues (leaky roofs for example).

3. Easy close. Close in a month. REO homes can close quickly. Purchase is much easier than you might think! FHA financing is available and title is clear. Liens that might have been a problem at auction are cleared out. The home is ready for you to buy.

4. NOT ALL REO HOMES ARE CREATED EQUAL Because a home is Bank Owned, doesn’t make it a bargain. Be sure to evaluate WHY the home didn’t sell before the bank took possession, or took it thru foreclosure. Does the home back to a busy road? Is it sitting in a hole? Under large power lines? Careful not to buy a home that will be hard to sell later!

Want to get on my "Hot list" of Bank Owned Homes? Starting next week I will be emailing a weekly update. Just let me know if you would like to be added to the list.

Many of these investors execute a typical “fix and flip” plan. They buy a distressed home, invest capital to make it marketable, and then place it back up for sale as quickly as possible. This is a tried and trued plan with numerous TV shows, infomercials and “how-to” books littering the landscape for investors to peruse.

Yet I recently heard about an emerging hybrid of this plan where the investor purchases with the intent of renting the property for three to five years and then selling it.

A brief overview of this plan starts with a property purchase well below retail value. In addition, the investor includes for a 2-step repair expense. The 1^st step happens at the time of purchase and pays for repairs sufficient to make the house rentable. The 2^nd step occurs after 5 years of being a rental when improvements are made to the property in preparation for being marketed. The idea is to delay the sale to a time in the future when the market is stronger and a higher return can be achieved.

One example I’ve studied is an investor purchasing single family homes in the Bay area for 50% of retail value, paying $80,000 to $90,000 per unit. He budgets $9,000 towards repairs necessary to attract a tenant. He achieves $1,200 a month in rent. He has included in his five year budget a $10,000 expense to make improvements desired to achieve competitive market value prior to selling the house. In five years he believes the houses should sell for $200,000 or more.

This type of investment plan is very focused on a niche market. To apply such a plan to our market would require a careful study of present and future market conditions and our evolving demographics of Eureka, Fortuna, Arcata and McKinleyville areas. And this would not be a passive investment with up to five years of property management. Yet the yield would appear to be very attractive and its risk tempered by time.

And it’s the laser focus into a niche strategy that makes this plan so unique. And every successful investor will tell you that the most important part of your investment strategy – is to have a plan, and then go execute your plan.

V,C,10,b

Nationally, the 30-year fixed rate mortgage average interest rate is 4.91 percent. This is .07 percent lower than the previous week. Last year at this same time the interest rate hovered at 6.13 percent.

Locally in the Eureka, Arcata, McKinleyville and Fortuna markets we’re seeing interest rates average right around 5 percent.

For our Humboldt County home buyers this is an awesome time to be purchasing. The Federal Government’s extension of the $8,000 tax credit for 1^st time home buyers and the $6,500 credit now being offered to the repeat home buyers, this is a great time to be making a move. And home prices are at their most competitive levels in a decade.

Buyers need to watch out as it appears we are seeing the bottom in sales prices for homes priced below $250,000. For homes priced higher than $250,000, there is still softness in market value. And in the $450,000 price range and higher, this market is still spiraling downward as it aggressively searches for its bottom. Our Humboldt Bay area home buyers are finding some tremendous values across the price range spectrum.

1. The $8,000 tax credit is available to “First Time” Home Buyers who have not owned a primary residence in the past three years.

2. A new $6,500 tax credit is available to “Current” Home Owners who have lived in their primary residence for 5 consecutive years of the last 8 years.

3. Although the $6,500 has been labeled a “Move-Up” credit, there is nothing in the law forcing anybody to buy a bigger or more expensive home. You can downsize or upsize and still get the credit.

4. Your adjusted Gross Income cannot exceed $125,000 if you file taxes as a single, or $225,000 if you are married filing jointly.

5. You must be under contract to purchase by April 30^th, 2010 and will need to close by July 1, 2010.

6. The cost of the purchased home must be less than $800,000.

7. This is a tax credit. If the home buyer owes the IRS zero dollars, they will get a check for $8,000 (or $6,500) from the IRS. Pretty nice!

Contact us if you would like to learn how these tax credits can be used to help you.

As predicted in my last report, sales soared to new heights in October unseen in many years. The number of homes going under contract are at new highs, fueled by the 1st time homebuyers lined up to take advantage of the $8,000 tax credit set to expire 11/30/09. And for the third month in a row we’ve seen the “domino” effect of where 1st time homebuyers are buying the homes move-up buyers are selling, allowing move-up buyers to purchase larger homes.

I remain very optimistic our Congress will extend the 1st time homebuyer $8,000 tax credit. And, the popular rumor circulating for the past few months is that Congress will add a tax credit for the “move-up buyers”. It may be a great opportunity for current homeowners at a time of historically low interest rates to shed the home they’ve outgrown and receive a tax credit, also. You should give some thought to becoming a “move-up buyer” if;

1) You have more children than you have bedrooms, or

2) Your family room used to be the garage, or

3) You’re renting multiple storage units for all your stuff

The top 3 groups of homebuyers:

• 52% were 1st time homebuyers
• 17% were move-up buyers
• 17% were investors

 Distressed Home Sales

• 4 were REO, or bank owned properties
• 2 were distressed sellers, or Short Sales
• 20 homes went into pre-foreclosure
• 4 homes were auctioned

 If you have questions about how this tax credit could work for you or someone you know, drop us an email or give us a call.

The new tax credit extends the existing credit for first-time home buyers, worth up to $8,000, and offers a new credit of up to $6,500 for some existing homeowners.

Click on the link below to learn more about the specifics.

http://www.realtor.org/HOME_BUYERS_AND_SELLERS/2009_FIRST_TIME_HOME_BUYER_TAX_CREDIT

If you would like to take advantage of this credit contact me at kristi@thekesslerteam.com. I can set you up on our automatic home finder search and you will have new listings emailed to you as soon as they come on the market.

California is one of the few states that allows lenders to foreclose on homes without a court proceeding. A lender can initiate a Notice of Default, wait 90 days, send out a Notice of Sale, and then 21 days later take the property back at auction. The process is systematic, efficient, and requires no judicial interaction.

The problem develops when a homeowner is attempting to pursue a loan modification. How many times have I spoken with a distressed homeowner who was thinking that the lender was working on a loan modification and auction day arrives. The lender forecloses and takes back the property. When challenged by a frustrated, distressed homeowner, the customer service rep typically responds under the guise of missing documentation or “non-responsiveness” from the homeowner. In many cases, it’s the lender at fault because of there keen ability to lose documents, failure to communicate with the homeowners, and the rampant turnover of employees in the lender’s loan servicing departments.

The law firm is attempting to demonstrate in court how lenders need to be held accountable for their actions, or some cases, their inactions. In some cases, the lender has ignored a home owner who may have qualified under Obama’s Home Affordability Stability Plan (HASP).

It will be interesting for Eureka, Arcata, Fortuna, and McKinleyville area distressed homeowners working thru the foreclosure process to see how the courts respond to this legal action.

Bucking the national trend of home sales dipping last month, our local area real estate market again showed an increase in sales. And next month our report will continue to get better. Our local market continue to show a pleasant increase in the number homes going under contract. I’m very excited about the numbers we’re seeing, and the increased volume of buyer traffic thru our office.

              This month, twelve 3-bedroom homes sold between $115,061 to $562,000. Four 4-bedroom homes sold between $260,000 to $497,000. Of the twenty-eight homes sold, seventeen where priced below the monthly average sales price of $251,893. For these sellers, it took an average of 66 marketing days to obtain an acceptable offer. We recommend home sellers in this price range price their home aggressively in this very active market.

The top 3 groups of homebuyers:

• 39% were 1st time homebuyers
• 21% were move-up buyers
• 21% were investors

Distressed Home Sales

• 4 were REO, or bank owned properties
• 2 were distressed sellers, or Short Sales
• 23 homes went into pre-foreclosure
• 8 homes were auctioned

If you find know someone 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).

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.

             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).

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 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 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.