Crescent City Real Estate News

Selling your Crescent City Home - Part 3 - You're in Escrow

Congratulations! You've made it. Your Crescent City home is in escrow. Don't make moving plans just yet. You have SEVERAL HURDLES to overcome.

First, if your agent didn't get a preapproval letter from the buyer when negotiating the offer, you will definitely want to see one now.  Why let one more minute go by without knowing your buyer is truly qualified to purchase your home.  If that's a go then start praying your home appraises for the purchase price. 

The lending industry is in CYA mode big time. Underwriter's, account executives, mortgage brokers and yes, appraisers, have all been made out to be the bad guys in the subprime fiasco to varying degrees depending on who you talk to.  This has caused the lending industry to become VERY conservative, overly so.  Lending went from, "Just state your income, no verifciation is needed," to the buyer needing to have a rectal exam to qualify. 

All that to say that appraisals sometimes come in under the purchase price, even when your agent did their job diligently in pricing your home.  Thanks to HVCC there are appraiser's who are now doing appraisals outside of their preferred niche or area of expertise. You don't have to look far to find blog fodder about this topic. 

I prepare my clients when we are listing their Crescent City home, especially if they are listing above my recommended price range, that the appraisal may be an issue.  If you price your home high and are blessed to get a full price offer, but the appraised value comes in lower than the purchase price, you generally have a problem. If the buyer is financing the home, the bank will not loan above the appraised value.  Even if a buyer has cash to bring to the transaction, my experience has been that a buyer is not willing to pay more than the appraised value and who can blame them? Would you pay more for a home than it is worth with prices projected to continue to decline?

If this happens to you then you can, A) Renegotiate, B) Cancel the escrow, C) Hope the buyer doesn't care and will bring the additional cash to close the deal (do not hold your breath on option C).  In my humble opinion, renegotiating is the best option as all experts point to increased foreclosures in 2010 which will further decline list prices.  If you were breaking even at the originally negotiated purchase price talk to your agent about ways to negotiate other aspects of the offer, i.e. inspections costs, commissions, title/escrow fees, etc. to keep your escrow moving forward. 

So your home came in at the appraised value.  That's great.  What else can go wrong? Don't even ask.

The pest inspection came back with $3000 in section 1 repairs.  Holy cow, now you're done for.  The buyer has 17 days from the date the contract is fully executed to back out and retain their deposit if they find out anything adverse about your home (the due diligence period). $3000 in pest work would qualify for adverse.  This is one example but there are dozens of pitfalls and hurdles to overcome in an escrow even if the home is in perfect condition.  Use a full-time agent with a proven track record that sells a lot of volume.  If the agent sells a lot of volume, the agents escrows MAKE IT TO CLOSING!  No small feet in the current Crescent City real estate market. 

If you would like to talk to an experienced, full-time agent regarding selling your Crescent City home, give me a call and I would be happy to do a free market analysis for you using up-to-the-minute market data.  Please subscribe to my monthly market report for an indepth look at the Crescent City/Del Norte County real estate market and how it affects you.

Be sure to check out:

Selling your Crescent City Home - Part 1 - Proper Pricing
Selling your Crescent City Home - Part 2 - Negotiating an Offer 

       

Thank you for stopping by. Your comments on this post are welcomed and appreciated.
No one sold more homes in Del Norte County in 2009--*both in number and volume--than Fran. Put Fran to work for you!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

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Selling Your Crescent City Home - Part 2 - Negotiating on Offer

Congratulations. You properly priced your home and now you have at least one offer on your Crescent City home.  Yippee!

What, the offer is asking you to pay up to 3% of the buyer's loan fees and closing costs?  You already took it on the chin in pricing your home to sell in a timely manner and now they want you to take 3% less and PAY their fees?  What's that all about.

Remember, the Crescent City real estate market is a BUYERS MARKET.  You already know that if you read my blog and subscribe to my market reports.  You would also know the predominant form of financing in the Crescent City real estate market is the USDA Guaranteed Rural Housing Program.  The GRH program is designed to put low to moderate income families in homes in rural areas and thankfully, ALL of Del Norte County is considered rural for this program.  GRH is 100% financing, however, there are loan fees that the buyer frequently asks the seller to pay for.  I counsel ALL MY SELLERS that more than likely any offer they receive will ask for a seller's contribution or seller's concession of at least 3-5%.  My seller's are prepared for this and therefore have already worked this mentally into their net profit .  If my sellers receive an offer that does not ask for a concession then that's gravy and they are really happy. 

So, Crescent City home seller, do not be surprised if you are asked to pick-up the tab for your buyers loan fees.  Be thankful you have this offer to negotiate and do your best to work it out because offers are few and far between.  You will be asked to pay for a pest inspection, well and septic if applicable, maybe a roof and in Del Norte County traditionally you will split the title/escrow fees.  If the buyer wants a home inspection they generally will pay for that out of their own pocket, but everything is negotiable. 

It would be a shame to come this far and not walk away with an open escrow, so remember, negotiations aren't personal and a reflection of what the buyer thinks of your home. The buyers goal of purchasing your home for the lowest price possible is diametrically opposed to your efforts at selling for the highest price possible.  Stay unemotional and look at your bottom line.  Your agent has a wonderful form called the sellers net sheet that he/she should use when presenting any offers.  It takes into account the costs associated with the offer and shows your net profit.  Keep your eye on the net and off the fees.  Remember, the net is why you're selling your home so don't get distracted by having to pay for the buyers home warranty if you are netting what you hoped for. 

There is one more thing to consider when negotiating an offer and it's a biggy these days, what if your home does not appraise for the sale price?  Better read part 3 of this series because that is a real possibility.

If you would like to talk to an experienced, full-time agent regarding selling your Crescent City home, give me a call and I would be happy to do a free market analysis for you using up-to-the-minute market data.  Please subscribe to my monthly market report for an indepth look at the Crescent City/Del Norte County real estate market and how it affects you.

Don't miss:

Selling Your Crescent City Home - Part 1 - Proper Pricing
Selling Your Crescent City Home - Part 3 - You're in Escrow

       

Thank you for stopping by. Your comments on this post are welcomed and appreciated.
No one sold more homes in Del Norte County in 2009--*both in number and volume--than Fran. Put Fran to work for you!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

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Selling Your Crescent City Home - Part 1 - Proper Pricing

Proper pricing, how important is it?  In the current Crescent City real estate market; it's everything. 

Unless you have been living in a cave for the last year or so, you are highly aware that the Crescent City real estate marketis a buyer's market. There are a plethora (oversupply) of listings for sale versus the supply of ready, willing and able buyer's.

What that means for you the seller is that you have a lot of competition in selling your home.  The number one factor in getting your home sold in this current buyer's market is to price your home below the mid range of the competing listings (or lower if the home is in worse condition than most of the competing listings).  Foreclosed listings are coming onto the market at the bottom of their price range and getting snapped up, so in order to compete, you have to price accordingly. If you don't have the stomach for this and plenty of seller's don't, you more than likely will not sell in a timely manner.

Your full-time real estate agent should be a huge help in this regard.  A full-time real estate agent who sells a lot of volume does so because they work hard, KNOW THEIR MARKET, and have competitively priced listings.  A good agent is worth their weight in gold in this market, so choose wisely. 

Statistics show that homes that sell in the first few weeks, sell for more than if they languish on the market for many months and if you think about it, that just makes sense. Why?  Anything, whether it be a movie, a new brand of clothing or new listing has a "newness excitement factor" attached to it that doesn't last long.  If the item proves to be genuinely excitining, like a really good movie, then large crowds attend for many weeks and people go see the movie more than once (think of Star Wars when it first came out).  However, if the first wave of lookers spread, through word of mouth, that the movie is a dud...well, that's usually the end of it and it gets sent to the DVD rental store.   

Same thing with a house for sale. It comes on the market--especially in a small market like Crescent City-- and it gets a flurry of showings.  This is the time when a home has the greatest chance of getting competing offers and therefore higher offers.  The old adage that, "Your first offer is usually your best" is so true most of the time. The longer a home is on the market, the more shop worn or stigmatized it becomes.  I know you don't want to give your house away but remember, a home is worth what a buyer is willing to pay IN THE CURRENT MARKET, not what a buyer would have paid in 2005.  I know that's painful, but unfortunately it's a fact. 

What if, by chance, you do price high and a buyer that just has to have your home offers full price?  You better read Part 2, because having an accepted offer is not the end of the story, it is only the beginning.

If you would like to talk to an experienced, full-time agent regarding selling your Crescent City home, give me a call and I would be happy to do a free market analysis for you using up-to-the-minute market data.  Please subscribe to my monthly market report for an indepth look at the Crescent City/Del Norte County real estate market and how it affects you.

Don't miss:

Selling your Crescent City Home - Part 2 - Negotiating an Offer
Selling your Crescent City Home - Part 3 - You're in Escrow

       

Thank you for stopping by. Your comments on this post are welcomed and appreciated.
No one sold more homes in Del Norte County in 2009--*both in number and volume--than Fran. Put Fran to work for you!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

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Are you Selling Your Crescent City Home and want to know how to get Top Dollar?

I recently had several local agents share their surprise at the sales price of two of my listings that sold earlier this year.  These two homes fetched Top Dollar in the Crescent City market.   In fact, in their opinion, these homes sold for more than the market value at the time. 

I had the same reaction from several local real estate agents at the sales price of my personal residence that I sold in 2005.

All three of these homes had something in common, something that set them apart from the competition and caused them to sell for Top Dollar in their market.

How do you get Top Dollar for your Crescent City, CA home or your home where ever it is located? 

My home was unmistakeably the nicest home in it's price range.  Every buyer I showed my home to made that comment and so did the agents who previewed the home.  I sold my home quickly because in comparison to other homes in that price range, it had much more to offer. 

The other two homes in question were both located next door to one another in a HIGHLY DESIRABLE neighborhood that does not have homes for sale very often.  The location, for the price, was deemed desirable.  One home sold within a few months and the other was in escrow within 16 days.  Both homes were in good shape, but the location was outstanding. 

How do you sell your Crescent City home for Top Dollar?  Price it according to it's level of desirability.  I suggest you get a list of all the active listings and homes that have sold within the last 3 months in the price range you are contemplating.  This will be a huge eyeopener for most seller's and will be very helpful in getting you grounded in the reality of the current market. 

You can ask whatever sales price you like for your home, but your home's desirability and price are what is going to bring you a buyer.  Are there 5, 10, 20 homes in your price range that have a better location, are in better condition, are newer and are priced the same as your home?  if so, why would a buyer choose yours?  Chances are they wouldn't.  However, if your home is the nicest in location, condition, etc for your price range, chances are really good your home will sell quickly and for a good price.  Why?  Because it's highly desirable for the price and a buyer will want to lock it up quickly before a better offer comes in.

It is tough sometimes to take a realistic view of your home. 

 A seller's view of their home

The appraiser's view of the seller's home

The buyer's view of the seller's home.

Know your homes competition, have a realistic view of your homes worth in the current market and price accordingly for a timely sale that should bring Top Dollar.

Thank you for checking out my post.  Please leave a comment.

       

Thank you for stopping by. Your comments on this post are welcomed and appreciated.
No one sold more homes in Del Norte County in 2009--*both in number and volume--than Fran. Put Fran to work for you!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

*PER CCMLS

Crescent City/Del Norte County June 2009 closings are up, so far 24% over May 2009 and the month isn't over!

Since closings are generally 45 - 60 days, we can attribute the below 5% interest rates in April for this flurry of closings. 

But what about the coming months?  There are currently 33 listings pending or in contingency status, about the same as when I checked in April, so it looks as though closings will be up for awhile. Interest rates, although inching upward, are hovering around 6%, which is still very good and Crescent City/Del Norte list prices are still coming down.  It is still a buyers market, however buyers can expect competition and mulitple offers on the below market priced REO's that are hitting the market with greater regularity. 

There is talk that the $8000 first time home buyer federal tax credit may be extended past the November 30th deadline.  That may keep this rally going past the busy summer season despite the inching up of interest rates. The $10,000 CA New Home Buyer tax credit is spurring on purchases of new home construction as well.  That credit ends when the money the state has set aside runs out, so better check before your purchase and see if you will actually qualify and if funds are still available for the credit. 

Crescent City/Del Norte County inventory is still high in comparison to the amount of homes that are selling, but the absorption rate is at a much healthier 12 months, versus the almost 23 months we have been experiencing.  The absorption rate is how long it would take to sell all inventory at the current sale rate of 21 homes a month. 

In order to have a home sell in this market it has to be competitively priced.  Competing with REO's and extremely motivated sellers may give homeowners who do not really need to sell pause to wait until foreclosures decline and inventory shrinks a bit.  Otherwise, you may be faced with a long Days on Market, a shop worn listing, and a frustrated real estate agent who wants very much to sell your home for you, but finds that despite their best efforts to price your home for the current market, you "Aren't in any real hurry," "Don't really need to sell at this time," or "Aren't going to give your home away."  If this is your mind set, in my opinion it would be much better to wait until prices come back up to where your home is properly priced for the market.

Your home is only worth what a ready, willing and able buyer is going to pay for it at that moment in time.  Ask your real estate agent to show you comps that can give you a price range that will get your home sold.  If your home is listed and has been on the market for more than 60 days, you may want to ask your agent for a new market analysis, but be warned, you may not like what you hear; prices are still coming down in Crescent City/Del Norte County.  

       

Thank you for stopping by. Your comments on this post are welcomed and appreciated.
No one sold more homes in Del Norte County in 2009--*both in number and volume--than Fran. Put Fran to work for you!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

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I have found that signs bring business, lots of business.  Good signage is one of the best and most affordable marketing tools in a real estate agents arsenal.

These custom made riders just arrived and I am going to add them to the signs in front of my new home listings.  There is no better way to get the word out about these tax credits.

I average two - three signs per listing and they bring in the calls.  I have currently sold more listings in volume and number sold than any other agent in Del Norte County. 

If you want to up your sales, increase name recognition and get more listings, order more signs and have your name on them. You won't regret it.  It is money well spent and has a great return on investment.

Here is more information on the tax credits:

California Tax Credit
Federal Tax Credit
Federal Tax Credit can be used as down payment

       

Thank you for stopping by. Your comments on this post are welcomed and appreciated.
No one sold more homes in Del Norte County in 2009--*both in number and volume--than Fran. Put Fran to work for you!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

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Yes, encouragement for sellers - It makes me very happy to be able to be able to write some encouraging words for sellers, something I haven't done for quite awhile.

Those of you who read my blog on a regular basis know I follow my market stats closely and do not paint a rosey picture unless it's warranted. 

Sales are picking up all over the U.S., not just in Del Norte Country.  In most of the hot markets in California, housing sales are strong because of foreclosures.  It has been that way in Del Norte County as well for the last 4-5 months, but in the last 4-6 weeks, there has been increased activity in homes over $250,000, the majority of which are not foreclosures.  This is welcome news for sellers.

Here are my stats (I love stats):

• Homes $200,000 and under comprise 43% of active listings and 50% of pending/contingency sales
• Homes $201,000-$300,000 comprise 23% of active listings and 27% of pending/contingency sales
• Homes $301,000-$400,000 comprise 14% of active listings and 13% of pending/contingency sales
• Homes $401,000-$500,000 comprise 8% of active listings and 7% of pending/contingency sales
• Homes $501,000 and up comprise 13% of active listings and 3% of pending/contingency sales

40% of sales are between $201,000 and $400,000.  That is a big increase over previous reports. 

There is a caveat to this optimism--you knew there would be--home prices continue to decline.  The increase in activity in the upper end home market is coming from buyers who are taking advantage of low interest rates.  Foreclosures have not gone away, quite the contrary, they are still with us and the banks are more aggressive than ever in pricing well below market value, driving down prices for surrounding sellers.

If you are selling your home, talk to your real estate agent and find out what CURRENT comps have to say about the list price of your home.  Make sure your are competitively priced to take advantage of this flurry of selling. 

       

Thank you for stopping by. Your comments on this post are welcomed and appreciated.
No one sold more homes in Del Norte County in 2009--*both in number and volume--than Fran. Put Fran to work for you!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

*PER CCMLS

Are you facing foreclosure?  According to a recent article by the Associated Press, one way to stall the process it to ask the bank for the original loan documents. 

You may think that is a simple request, but actually, but lending institutions are finding that request can become quite complicated.

The derivitives market of the past decade brought about the bundling of mortgages, securities and other financial instruments.  These bundles were bought and sold, and many times rebundled and bought and sold several times.  The original paperwork on many of these loans has been filed away in a warehouse or lost in the shuffle.

Many homeowners in the foreclsoure process are buying themselves time by asking for this proof of their loan.

If you find yourself in foreclosure, check out the Consumer Warning Network.  Homeowners can find the paperwork to submit to their lender demanding the original documentation of their loan.  You may be looking at retaining a lawyer, which may incur upfront fees, so be aware the process is not cut and dry.

Tom Deutsch, deputy exectuvie director of the American Securitiazation Forum dismiised the strategy as merely as stalling tactic, but one homeowner the Associated Press interviewed siad she filed her procude-the-note demand last fall and there has been no activity ont he foreclosure since. 

       

Thank you for stopping by. Your comments on this post are welcomed and appreciated.
No one sold more homes in Del Norte County in 2009--*both in number and volume--than Fran. Put Fran to work for you!

Brought to you by Fran Gatti at  No one works harder for you!  Bus: 707-464-5400, Cell: 707-218-8162 Email: frangatti@remax.net Website: FranGatti.com My Blog: Fran's Blog RDCPro®

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