Michael Roberts' Blog -San Jose Homes, Real Estate and Houses for Sale

Buying a Home with Resale Value – Part One

Without doubt, the best time to think of selling your San Jose area house is before you buy it.  In fact, there’s a saying in professional real estate circles that, “You make your money when you buy.”  Unlike prior generations, today’s home owners will typically sell their house within five to seven years.  That may seem like a long time in your own personal life, but it is just minutes in the world of  San Jose homes for sale.

Wouldn’t it be nice to go into your purchase with a plan in mind?  Here are a few tips on how to choose a San Jose house for resale value, while also finding a home that you absolutely love.

• Purchase Price. Perhaps the biggest lesson learned from the housing crisis is to not overpay for a house.  This can be tough when you absolutely fall head over heels for a home.  But paying a fair price today means you’ll be able to accept a fair price tomorrow.  So check your emotions at the door, and proceed with your head.  It’s worth taking time to research pricing trends in San Jose area neighborhoods before committing to a purchase you may regret when it’s time to sell.  We have the resources, years of market insight, community knowledge and negotiation skills to ensure all our buyers pay only what they need to for  any San Jose home for sale.

• Location, location, location! Location can either be your best friend or your worst enemy when buying a home, and in essence, can make or break a home’s resale value.  San Jose area communities provide the life force for home price.  High ranking school districts, recreation facilities, and shopping are just a few amenities that you can bet will capture the eye of future home buyers.  Researching future development and zoning regulations will also help ensure your new home will be an asset when it comes time to sell.

Noting the details of the location is important too.  Does the lot back onto a busy street?  How about a shopping center or hospital?  Traffic noise, parking lot lighting and trash receptacles bordering your backyard will definitely have an impact on resale.  Noting the condition of neighboring houses will also play a key role in determining resale value.  Most neighborhoods will have similar lot sizes, with smaller and larger lots to fill in awkward spaces such as cul-de-sacs and road curves.  And while larger lots are usually more desirable, you may end up paying a premium that you won’t recoup when it’s time to sell your San Jose home or real estate investment property.

• Repairs, Remodeling, and Fixer-uppers. When deciding on a San Jose home for sale, know the difference between acceptable and unacceptable repairs and upgrades.  Cosmetic changes such as ugly wallpaper, paint, and door hardware are easy fixes and worth the time and money.  Foundation cracks, water damage, and roof damage are not as kind to resale value.  These are repairs that are necessary to maintain the current value of your home and, unless the home is priced below market, won’t add a penny to resale value when it’s time to sell.

And most importantly, you’re not alone in purchasing a home!

Our Buyers have the peace of mind to focus on finding the perfect San Jose home while we look with a critical eye at every home’s potential resale value.

Continue: read part 2 for buying a San Jose house for sale

This Video (below) is proof many homeowners in all areas are at risk of scammers, including San Jose homeowners.  When you ask for help selling your San Jose House, remember, if it sounds too good to be true..Then it probably is!

There are no ‘Magic Wand’ solutions if you find yourself against the wall with your mortgage.  Using common sense and a applying pragmatic approach is still the best and most effective way to determine whether you should sell your Los Gatos home or buy a smaller more affordable house in San Jose.

A good rule of thumb is to obtain 3 professional opinions and weigh them one against the other.   The first solution may not be the only solution and… Watch This Video!

Wow!  These are my 3 picks of the weekend for Los Gatos Homes for sale.  New Home Buyers will find they have all the best things to offer.

Some lucky folks are going to be new homeowners in Los Gatos!

Great prices and locations are just the beginning.   17250 Pine St.Los Gatos is a short sale,  I know,  Yuk.  Not really!  Look what the fundamentals look like…

Schools: Great!  Location: Great!  Price: Amazing!

Use ‘the proper strategy and be prepared for a few bumps’ is the bargain hunters code. One may be a foreclosure one a short sale, however what would expect a bargain to look like?

Los Gatos is a tough area to find affordable homes and these 3 are a step in the right direction. Preparing for an opportunity equates to good luck, right?

The 2nd homes for sale in Los Gatos is 15175 El Gato and the 3rd house for sale in Los Gatos that I see as a great first time buyer pick is 228 Calle Marquerita.

Searching for a Los Gatos foreclosure?   This one has a great price for a Los Gatos house and a huge yard of over 13,000sq ft.   Your own little orchard!

Buying a Los Gatos foreclosure like this, while taking advantage of the Home Buyer Tax Credit, is a winner all around.

See all the Pics Virtual tour and more for this Los Gatos Foreclosure (REO)

foreclosure related articles…

• Citi Announces Pilot Program to Avoid Foreclosures  dailyfinance.com)
• Foreclosures Fall 10% in January, But Remain 15% Higher Than a Year Ago  dailyfinance.com)
• Should You Ditch Your House?  cbsnews.com)
• Foreclosures will hang around  fresnobeehive.com)

That FHA mortgage looks like a winner for San Jose home buyers and Los Gatos home buyers.   Low Down Payment,  Great Interest Rate!  What more could you ask for?  A short sale?

Well, not much, obviously or , at least,  hoping is not going to change the new rule.   The upfront costs are going to be a bit higher.

To get that Low Down Payment and Great interest Rate you are going to be required to….

• Pay an upfront mortgage insurance premium of 2.25 percent of the total loan amount, up from the current level of 1.75 percent. A borrower taking out a $200,000 mortgage would pay a $4,500 fee, for example, rather than the current fee of $3,500. Borrowers will still be able to wrap these fees into the total amount borrowed. FHA officials also plan to ask Congress to increase the maximum annual premium that FHA can charge.

So, they may get more expensive.   This will  reduce the number of buyers who can qualify.   There’s more…the credit score benchmarks are changin too, further decreasing the number of buyers a home seller will be able to market their home to.

• Need a credit score of at least 580 to qualify. Many FHA lenders already require a higher score, but there had been no standard requirement across the program. Borrowers with a score lower than 580 will need a down payment of at least 10 percent.

Maybe this is what we should expect all things considered.  I want to remind you a HUD approved lender is not like any other and the more experienced they are, the better your chances of a quick approval and subsequent closing.

Yes, you can buy a short sale in Los Gatos or a house in San Jose that is listed for sale as a short sale.  Interesting concept.

Do you own a HUD-FHA financed home, and need to do a Short Sale? Here is a summary of the requirements to perform an FHA-insured HUD shortsale or “Pre-Foreclosure” Sale:

1. You must be delinquent 31 days or more delinquent at the time of sale.
2. You must list the property with an un-related Licensed Real Estate Broker
3. You must actively market the property for four months (up to six).For the first 30 days of marketing, the short sale lender Read the rest of this entry »

Q:  Short Sale definition.  What is a Short Sale?

Answer: In ”short”, a shortsale is when the lender agrees to settle the debt owed on the property for less than the full amount of the debt. In most cases “Settled” means the lender writes off the debt. You usually will receive a 1099 after a short sale for the amount of debt forgiven. The bank is agreeing not to go after you for the money they lost by filing a deficiency judgment in the future. The exception is the HELOC loan where they reserve the right to file a default judgment.

Answer: If you have a heavy asset portfolio that would cover the amount above the home’s value then the answer is likely to be no.  Each case is different and would be better answered after a professional review to help learn how to short sale.

Answer:  There is a lot of misinformation on the internet about this. A short sale is recorded on your credit report as “debt settled for less than the amount owed”.  In plain English, this will result in a relatively minor hit to your credit compared to a foreclosure or late payments on your mortgage. A short sale will affect everyone’s credit differently. The more established your credit, the less of an impact it will have on your score.

If you stop making your mortgage payments for 4 months, regardless of whether you do a short sale or not, 4 months of missed mortgage payments will have a significant negative impact on your credit.  A short sale will drop your credit 100 points or more.

If you are already behind on your payments, you have already incurred the majority of the hit that a short sale will have on your credit.  Moving forward with a successful short sale will insure that your debt is settled with your lender.

However, if you are current on your payments and can stay current throughout the short sale process, you will save your credit to a large extent.

Your neighbor Harry, the one that never shaves and causes you to wonder if he knows that there are still department stores that sell pants that fit, you know who I am talking about.  Harry will be the first one at your door telling you how much he is going to miss you when you move away.

Away.  From Harry.

Maybe you should buy a home in Los Gatos or West San jose.  is that far enough?   Cambrian sounds pretty good.   You need to sell your house first though.

You have decided you are going to save money and do it yourself.    More money for you will help you  get further from Harry.  So, where do you start?

Figuring out what your house is worth is probably what you are thinking.   Not exactly… and…. yes, it is.   Better be  quick.  Harry is getting really Buddy-Buddy since he learned you are selling your house.   Saving that 6% Realtor fee should help get it done faster.

Think about it.   You have more room to negotiate! Read the rest of this entry »

These two Los Gatos homes for sale prove that a listing price is rarely a selling price in our Real Estate market.  We are at a crossroads.   It just isn’t what you might think;

131 Millrich Dr.  this Los Gatos house sold for nearly 1% less than the asking and 411 Clearview Dr., a townhome, sold for nearly 5% over the listing price !

A reminder that ’sweet spotting’ your asking price will always pay off.

The good news….neither property was a short sale.

2 Los Gatos Houses sold this week,

131 MILLRICH DR, Los Gatos 95030 (Los Gatos)Single Family Home 3 bed(s) Baths: 4|1 bath(s)   SqFt: 2,593  Lot: 9,100 sq ft

List Price: $1,449,000     Sold Price $1,332,000.00

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411 CLEARVIEW DR, Los Gatos 95032 (Los Gatos)Townhouse  3 Beds, 2|1 Baths:  SqFt: 2,122 Lot: 2,220 sq ft

List Price: $749,000 Sale Price: $780,000

Assoc. Fee: $428

We see a crossroads ahead…one where the buyers in the Los Gatos Real Estate Market aren’t in the driver’s seat.    Could this mean the homes for sale are in a Seller’s market?

Remember…

Spring is coming and the end of the $8000 First time buyer’s credit is there waiting.   I wonder if will  lead to more vigorous sales?…bidding?