Walnut Creek Homes Real Estate Agent California | Clocktower Realty

Moving Up or Down Can Be A Challenge in Today’s Real Estate Market

Ken Jacobs — Tue, 07 Feb 2012 21:46:11 +0000

Whether you’re busting out of your current house and need something bigger, or with the kids gone you’re looking to downsize, buying a new home while you still own your current home can be challenging. There are a number of different routes one can take to achieve this goal, but you can expect some added stress along the way. With home lenders being as conservative as they have been, many are reluctant to lend to home buyer that still has an outstanding loan on another property. They generally won’t take any rent income into consideration unless you have a signed lease and the tenant is already in the property—not very workable for most homeowners. Given the circumstances, here are the options most potential move up buyers have in this situation:

Buy with a contingent offer

—in this scenario, you would simply make any offer on a new property contingent upon the successful sale of your existing home. This is by far the easiest route to take, but there are some downsides. First, the seller of the home you wish to purchase may not be willing to accept a contingent offer, especially if there is other interest in the property. Second, even if the seller of your desired home is willing to take a contingent offer, you may find you’re at a bit of a disadvantage in price negotiations since the seller will be making a concession in accepting the contingency and therefore less willing to negotiate price and other terms.

Sell First

—there are a few ways to proceed in this strategy, one is to make any offer you get on your house contingent upon finding a new home. Another is to negotiate a rent back with any buyer of your home to give yourself time to find a new property. This can be an effective strategy, but you could find yourself in a situation where you feel some pressure to buy a home you’re not entirely happy with, or if you take too long, you could find the buyer of your home getting restless and backing out of the sale to pursue another property.

Buy First

—this is a solution that requires you be able to qualify for a new home loan while still paying the existing loan on a current home. Lenders are not giving any credit for possible future rent that is not being received, so this option isn’t available to many people If it is available to you, it certainly can provide more certainty and strength of negotiation position. However, you do need to be aware of being stuck in a situation where you’re paying on two mortgages at once if your current home doesn’t sell as quickly as you like. Since you’ll also be purchasing first and committing to a new mortgage, you may be unhappy if your current house then doesn’t sell for as much as you expect.

Please contact us to discuss these options further as it relates to your individual situation.

2548 Jones Rd. #3, Walnut Creek

Ken Jacobs — Sun, 05 Feb 2012 18:23:44 +0000

Upper end unit in small 13 unit complex. 2 bedrooms, 1 full bath + separate sink area, approximately 924 sq. ft. Gorgeous kitchen with updated cabinetry, newer appliances, and granite counters. Spacious living room with fireplace and adjacent dining area opens to a large deck. Newer dual pane windows throughout, central A/C & heat. Includes 1 covered parking space and community pool

What’s Happening in Today’s Market – Walnut Creek Area Real Estate

Ken Jacobs — Fri, 03 Feb 2012 19:50:52 +0000

The real estate market is going through a pretty substantial change now. Demand has increased dramatically, especially in the lower price ranges, as many foreclosures and short sales on the market are seeing multiple offers and sales over asking price. There has not been a sufficient supply of homes on the market to quench the demand recently, as illustrated in this table. In what many would call a “normal” market, you’d typically expect to see a 3-5 month supply of homes on the market at any given time. As you can see in the table below, in Walnut Creek, Pleasant Hill, Concord, Martinez & San Ramon, there is less than a two month supply of homes available for sale. We have also seen a modest recovery of home prices in most areas in the 4th quarter of 2011, with home sales up in many areas from the same period last year and an increase in the median price or at least a stabilization of it in Walnut Creek, Lamorinda, Pleasant Hill, Concord, Martinez & Danville . The banks have been strategically holding foreclosed homes back from the market and are also waiting longer to foreclose on borrowers, which is adding to the lack of available home supply. Many people considering selling their homes also tend to wait for the Spring, thinking that is the best time of year to sell. With what we’re seeing in today’s market, it may be worth re-thinking that time frame if you are planning on putting your home on the market in the near future. It’s unclear how the market will move forward with more demand but many more foreclosures and short sales to work through the system.

Walnut Creek Area Home Sales for January, 2012

Ken Jacobs — Thu, 02 Feb 2012 22:42:19 +0000

Click on the links below to see sales that finalized and closed in our area in January, 2012. The link will show pictures and information for all properties sold though the MLS during the past month.

Walnut Creek Home Sales for January, 2012

Pleasant Hill Home Sales for January, 2012

Concord Home Sales for January, 2012

Clayton Home Sales for January, 2012

Martinez Home Sales for January, 2012

Lamorinda Home Sales for January, 2012

Danville Home Sales for January, 2012

San Ramon Home Sales for January, 2012

Dublin Home Sales for January, 2012

Pleasanton Home Sales for January, 2012

Looking to Buy a Short Sale or Foreclosure?

Ken Jacobs — Mon, 30 Jan 2012 21:26:05 +0000

Short sales and foreclosures are a large part of home sales in our local market area. Often, buyers that are new to the market are confused by the difference between the process of purchasing one of these homes. The similarities between purchasing a short sale and a foreclosure are that the buyer should expect to get somewhat of a discount below market value and that they can expect the sale will be “as-is” – no repairs will be done regardless of what the buyer finds in the course of any exceptions. Beyond that, the transactions are typically very different.

Short Sales

A short sale occurs when a homeowner is attempting to sell a property for less than what is currently owed on it to one or more lenders. What you can expect when trying to purchase a home in a short sale:

The purchase agreement is between the buyer and the current owner. There is a contingency written into the contract on getting approval from the seller’s current lenders. Offers are submitted to the owner and signed off
Time periods in the purchase agreement don’t begin until full approval has been given by the seller’s lenders to complete the short sale. So, from the time a buyer and seller agree on a purchase contract, it could be weeks or months before the sale is able to proceed.
The listing price is set by the seller, not the seller’s lender, so if the seller’s lender determines the price is too far below market value, they may decline the short sale, or offer a price with which they would accept it. So, there is an opportunity a buyer could wait a long period for short sale approval only to have the bank decline it and have no possibility of finalizing the sale.
During the short sale period, the seller’s lender could continue moving towards foreclosure, so it’s important that the listing agent is on top of that situation and obtaining any necessary postponements of that process. Banks short sale and foreclosure departments generally don’t work in sync with each other, so simply because a short sale is approved, it may not stop the foreclosure process.
Much of the possibility of success in a short sale is determined by the listing agent’s ability to coordinate all required actions and documentation with the seller’s lender, so a buyer has little control over the process. It’s really just a waiting game.
The standard Short Sale Addendum written into the purchase agreement generally requires the buyer to give the seller a set period of time to obtain short sale approval. By default, this period is currently 45 days, but that can be changed with the agreement of both buyer and seller. During this period, the buyer is agreeing to wait for that process to play out and not back out of the agreement.
Once short sale approval from the seller’s lenders is finalized, the sale can proceed as a typical sale but must close within the time period specified by the seller’s lender. Although the buyer may do any inspections they deem necessary and may exercise their right to cancel the agreement based on the results of those inspections, the seller is not in a position to do any repairs, nor will the seller’s lender allow any repairs to be completed as a condition of their approval.
Since this is still a sale by the current owner of the property, all disclosure requirements that exist in a regular sale still exist.

Foreclosures or REO Properties

REO stands for real estate owned. These are properties that have been forclosed on and are now owned and being sold by the bank directly. In some cases, these properties can be purchased at a trustee’s sale at the courthouse. In that situation, it is a cash only transaction with the property sight unseen. However, most REO properties are sold through agents on the open market. When you purchase a foreclosure property, here’s what you can expect:

Banks generally don’t respond to offers quickly, so you could wait 2-5 days for a response. During this time, the bank can continue to receive other offers.
When banks do respond, they will typically include a lengthy legal document called an addendum or counter offer which removes most of the rights a buyer typically has in a real estate sale. It’s important to review this document carefully, as it limits your rights and dictates the terms. Usually included are clauses limiting any inspection and cancellation period to 5 or 7 days.
You don’t have a valid agreement until the bank representative signs all of the contract documents, which could take a few days longer.
The bank is exempt from most mandatory disclosures as they have no knowledge of the property, so your only information on the property will likely come from your own inspections.
With some exceptions, the bank will not generally complete any repairs, regardless of what is discovered during your inspection process. If a major issue is found that the bank would have to disclose to other potential buyers, they may be willing to bend on that issue.
Sales can close in a timely manner since the bank owns the property directly. You can generally expect to close the sale in the same time frame as a regular sale, 30-45 days.

312 Borel Ln., Danville, CA

Ken Jacobs — Thu, 12 Jan 2012 17:54:24 +0000

Upper level end unit in Fostoria Terrace, beautifully remodeled throughout. Gorgeous kitchen includes newer cabinetry, granite counters, newer appliances including stainless steel refrigerator, stylish glass tile backsplash & laminate flooring. Both bathrooms have been completely renovated with granite counters, newer cabinetry, tile shower surrounds and modern fixtures & finishes. Additional features include custom window coverings, crown molding throughout, and recessed lighting.

2706 Alpina Ct., Pleasanton

Ken Jacobs — Fri, 06 Jan 2012 06:08:33 +0000

Built in 1998, this beautifully maintained 3 bedroom, 2 1/2 bath home in Stoneridge Place is just a short walk to top rated Mohr Elementary School and Amaral Park. On entering, you’ll find a comfortable living room with vaulted ceilings, gorgeous plantation shutters, wood burning fireplace and attractive laminate flooring. An adjacent formal dining area opens to the recently refurbished yard area. The spacious kitchen features granite countertops, including an extended top suitable for barstools, a gas cooktop, built in microwave and abundant cabinet storage. A cozy family room located off of the kitchen also opens to the yard and patio, perfect for a BBQ area. Upstairs you’ll find all 3 bedrooms, including a sizable master suite featuring substantial counter space in the master bath with dual sinks and stall shower as well as a large walk-in closet. A separate laundry room is conveniently located upstairs, so no need to lug the laundry down to the garage. Homeowner’s association fees include access to the community pool and common area maintenance.

1684 Parkside Dr., Walnut Creek

Ken Jacobs — Thu, 05 Jan 2012 02:40:14 +0000

Spacious 2 bedroom, 2 1/2 bath townhouse convenient to BART and downtown Walnut Creek. Large living room and dining area with separate family room off the kitchen that opens to a private rear patio.

Kitchen has a built in microwave, included refrigerator and electric range, 1/2 bath downstairs and two full baths upstairs. 2 parking spaces included, additional storage in attic with drop down ladder, community pool

Walnut Creek Area Home Sales for December, 2011

Ken Jacobs — Mon, 02 Jan 2012 03:41:08 +0000

Click on the links below to see sales that finalized and closed in our area in December, 2011. The link will show pictures and information for all properties sold though the MLS during the past month.

Walnut Creek Home Sales for December, 2011

Pleasant Hill Home Sales for December, 2011

Concord Home Sales for December, 2011

Clayton Home Sales for December, 2011

Martinez Home Sales for December, 2011

Lamorinda Home Sales for December, 2011

Danville Home Sales for December, 2011

San Ramon Home Sales for December, 2011

Dublin Home Sales for December, 2011

Pleasanton Home Sales for December, 2011

What’s Happening in Today’s Market – Walnut Creek Real Estate

Ken Jacobs — Wed, 07 Dec 2011 21:34:32 +0000

The total number of sales in Central Contra Costa County increased in all areas versus the previous few years over the same period, a reflection of more buyers taking advantage of low interest rates to purchase a home, as well as investors entering the market place in greater numbers. The median sales prices in most areas continued to drop slightly. The biggest factors influencing that are the high number of distressed sales, both short sales and foreclosures, that continue to permeate the market. As you can see from the chart below, short sales are continuing to increase as lenders have put more systems in place to work through this process, and foreclosures, which had been decreasing, are ramping up again with so many homeowners in financial trouble. In all, about 40% of all sales reported through the MLS system are some sort of distressed sale. Distressed sales frequently don’t show well and are in need of some repairs and the sheer volume of them affects prices for all home sellers. One interesting and somewhat unexpected development is the demand for nicely updated, move in ready properties that are not distressed sales. There is a great demand among home buyers, especially first time buyers, to purchase a home that does not need considerable work, as many people lack additional funds to do major repairs or upgrades. On a few occasions, we are seeing multiple offer situations on just such properties in the last few months.