Chance Gates' Blog

Sales are starting to increase especially in the under $150,000 range. The sale price remains under pressure from bank owned properties.

April had 419 properties sold compared to 366 in March. This makes 4 straight months of a positive swing in sale in the Reno – 100 Area. However, April saw a 6% drop in median price after three months of relative stability. Of the 419 sales in April 215 were bank owned and another 80 where short sales.

649 new listing came on the market in April a drop of 12% from March. 370 of these listing were either bank owned or a short sale.

Send me a message if you want to know how this effect your particular real estate situation

As prices continue to fall, why are people suggesting buy now? Why not wait until the Reno/Sparks Nevada Real Estate Market has bottomed out? The simple answer is the interest rate. With buyer being able to get rates as low as 4 7/8, the monthly payment is lower.

House Cost $250,000

At 5% For 30 years = 1342.05 a month plus taxes and insurance.

Same House Cost $220,000 next year

At 6.5% For 30 years = $1,390.55 a month plus taxes and insurance.

The real question needs to be where do you think interest rates will be next year?

Interest rates will vary.

Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.

Previously, most buyers wouldn’t receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.

The goal is to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment
He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

Consult with your approved FHA lender for availability.

The asking price is just that, what they are asking for the property. The buyer should know and understand they want this property sold quickly. The buyer makes an offer asking for everything: seller to credit buyer 3% for closing cost and home warranty are just a few. The longer the house has been on the market the more the seller wants to get rid of the property. The seller will likely counter any reasonable offer trying to get the highest amount possible. The buyer needs to understand the just part of the process in buying a foreclosure property. The trick is to negotiate a price that will meet the seller’s bottom line. A buyer needs to get a Licensed Nevada Real Estate Agent, who has done a number of foreclosures, to assist them in reaching the best purchase price.

As a Reno/Sparks real estate professional I encourage all questions and comment on the Reno/Sparks real estate market or any article posted.  I can be reached by email at chance@ballard-company.com or http://www.myspace.com/chancegates

Too many people now of days are getting those irritating phone calls from debt collectors. Other are just barely making the monthly mortgage payments on a house they owe more on, than its worth.

Don’t walk away and let the house go into foreclosure. This will prevent someone from being able to buy another house for at least 4 years.   Plus the money the lender loses on the resale of the foreclosure, the IRS counts as earn income and my charge taxes on the difference.

If a home owner is a couple months behind with his mortgage payment here is a couple of things he can do to keep his house. First call the bank to see if they will refinance the loan.  If the bank is not cooperating don’t threaten to walk away from the house. The second thing to do is for the home owner to go see his senator.  He might be able to help get the bank to refinance you house. The Senator might even get them to reduce the principle of the loan to be comparable with Reno/Sparks Nevada Real Estate prices.

If steps one or two doesn’t work or if a person doesn’t want to live in the house. Sell the house for less than owed. This is called a short sale. This will allow a person to buy another house in two years instead of four. It is still advisable to see a lawyer and a CPA to make sure the debt is forgiven and the IRS doesn’t tax the seller on the forgiven debt. I would NOT recommend taking on a short sale purchase without your own representation of a knowledgeable licensed Nevada Real Estate Agent.

As a Reno – Sparks real estate consultant I encourage any question or comments on the Reno – Sparks real estate market or any of the articles I posted here.

I can be reach at  chance at ballard-company.com