As a Real Estate Broker, focused primarily on distressed property sales, I can honestly say that I have. August – October of this year I was just about as busy as I have ever been in the business of Real Estate. Most the people I chat with in Mortgage, Title, Inspection Services, etc. say the same thing. The transactions were typically affordable in nature but it was nice to see a lot of them. More importantly there was a sense of urgency in the market-place. In certain price ranges and neighborhoods demand clearly exceeded supply. When considering the following points I can’t help but feel as if another shoe is about to drop.
The extension and expansion of the credit has left some recent buyers wondering why they were in such a big hurry. Meanwhile some would-be buyers are feeling a little less confident. All are worried they will or have paid too much.
Housing demand is typically created by one or more of the following: Household formation, employment opportunities, attractive financing and the lure of home equity. All of these are lacking in my market.
I sense that many if not most of the recent first-time buyers would have eventually purchased a home regardless. The looming expiration of the tax credit served to get them of the fence. This created a somewhat false demand.
In short I do think we’ll suffer a bit of a hang-over this next year. As a generality banks are holding a bit firmer to their prices when dealing with fore-closed properties. I do expect interest rates to rise at some point. Short sales are just as mixed up as they ever have been. It will be interesting to see how things turn out for the big auto companies after the “cash for clunkers” revenue stops showing up on their bottom line. Perhaps an indicator for the near future in our housing market.
That said, if you’re in the market for a home now, don’t be too concerned. Your income should be secure. The monthly payment should be conservative in relationship to your income. It needs to be the right house at a fair price. If all those pieces fall in place, I say go for it. Prices will inevitably rise & fall and I think the joy of home ownership has been relatively under-rated lately. Planting a tree or shrub wherever you wish, knocking a hole in the wall to hang the family heirloom or driving down your street to the “best” house on the street; some things are priceless.
Our county can conserve more energy. Let’s pledge and win the $5,000.
As of 11/3, Washoe County is only a couple hundred pledges behind Volusia County, Florida in a national competition to conserve energy. Please help us win the competition by signing the pledge and getting your friends and neighbors to sign up by November 30th. Our goal is to capture the $5,000 first place prize to make energy conservation improvements.
We have less than thirty days to go and only 350 more pledges to win! If you haven’t taken the conservation pledge please visit www.greencounties.org/changetheworld.
Also, send this message to your friends, special interest groups, and families. Other than the prize of $5,000, we will receive national recognition and the satisfaction of beating Florida!
STEP2, a local non-profit organization that provides recovery treatment for chemical dependent women and their children, announced that it’s 17th Annual Homes for the Holidays fundraiser will showcase five magnificent homes in Montreux for public tours. The annual home tour represents the organization’s largest fundraiser of the year.
Nearly one out of every five women of childbearing age in Washoe County is in need of substance abuse treatment. As the area’s only organization to specialize in drug and alcohol abuse treatment for women and children, STEP2, in response to the staggering statistics, is expanding its treatment capacity. “STEP2’s new facility will double our treatment capabilities from 160 to 320 families per year. This expansion is more important than ever considering the economic downturn which can cause an increase in substance abuse and homelessness. We are honored to be a resource for women and their children to turn to in their time of need,” explained Diaz Dixon, STEP2 Chief Executive Officer.
This year, five generous homeowners in Montreux will open their doors to the public on the weekend of December 4, 2009 to help raise funds for STEP2. The kick-off event for the weekend-long affair is the extraordinary Jingle and Mingle Preview Party gala which will be held on Friday evening, December 4th at The Grove. The evening’s events begin at 4:00 p.m. and include a sneak-peak tour of the homes, an elegant hors d’oeuvre buffet, hosted bar and auctions. The cost per person is $125 for the Jingle and Mingle Preview Party and Twilight Tour.
On Saturday and Sunday (December 5-6, 2009), the homeowners will welcome the public to tour their homes which will all be decorated in the spirit of the season. For only $35, guests may tour the featured homes and get an up close and personal look at stunning architecture, interior design and holiday decor. There will also be a Holiday Shoppe boutique, featuring unique holiday gifts as well as delicious Hollyberry Lunches. The tour will run from 10:00 a.m. through 3:30 p.m.
All proceeds raised from the tour will benefit STEP2 and help the organization provide substance abuse treatment for women and their children in the Truckee Meadows. Without the Homes for the Holidays event, STEP2 would not be as successful as it is today. Tickets went on sale October 12, 2009 and can be purchased at the following ticket centers: Aqua Salon, Best Wishes, Dickson Realty (Caughlin Crossing and Montreux Visitor Center), GJ Rhodes, L’Uva Bella, Paper Moon, St. Ives Florist, Tassels (formally Name Droppers), Whispering Vine and Vista Grille. Tickets can also be purchased by visiting www.step2reno.org or by calling (775) 787-9411.
An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction (also known as a Trustee’s Sale). Trustee Sales (often an auctions held on the courthouse steps) begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney’s fees and any costs associated with the foreclosure process. In order to bid at a foreclosure auction, you must have a cashier’s check in your hand for the full amount of your bid. If you are the successful bidder, you receive the property in “as is” condition, which may include someone still living on the property. There may also be other liens against the property. Trustee’s Sales are typically advertised via local, public notices such as local newspapers.
Since what is owed to the bank is almost always more than what the property is worth, very few Trustees’ Sales result in a successful closing. If the Trustee’s Sale is unsuccessful the property reverts to the bank or loan servicer and is now considered REO, or “real estate owned” property.
The bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will typically negotiate with the IRS and local municipalities for removal of tax/municipal liens and they normally pay off any homeowner’s association dues. As a purchaser of an REO property, the buyer will typically receive “clear title” and the opportunity to thoroughly inspect the property. These are the properties buyers will typically see on MLS.
A bank owned property might not be a great bargain. Do your homework before making an offer. Make sure that the price you’re offering is comparable to similar homes in the neighborhood. Consider the costs of renovation. Last but not least, consider your loan type and down payment amount. Loans with high “loan to value” (small down payment) generally require that the home be in good condition.
A well informed real estate agent, representing the buyer exclusively is invaluable in such a transaction. There are many pitfalls and complications that can be avoided with such representation.
Les Maisons is tucked back in the pine forest lots in the heart of the master planned community of Montreux and adjacent to the 7th hole of Montreux’s Jack Nicklaus Signature Golf Course. This idyllic community is set against the majestic backdrop of Mt. Rose and is strategically nestled around a quaint Parisian-style linear “Parc” to facilitate the true sense of social community that Montreux embodies.
Les Maisons at Montreux, built by award-winning custom home builder Pearce Construction, features Country-French architectural design highlighted by a striking roof design showcasing 18:12 and 16:12 pitches engineered exclusively for the community. These exquisite homes include as standard, 3-car garages, full landscaping and year-round maintenance as well as all of the luxury upgrades you’d expect in a one-of-a-kind Tahoe home, yet it is located in the heart of Montreux, minutes from both Lake Tahoe and the bigger-city conveniences you need and desire.
Visit Les Maisons today and learn about this one-time, limited opportunity to secure a home backing The Parc in Phase One. These single level living two story homes range from 3,200 to 3,600 square feet. These may be some of the finest homes and lots in all of Les Maisons at Montreux. Starting at $1,535,000.
OPEN HOUSE each Saturday and Sunday from 1pm to 4pm.
Dan Rider, an Owner/Broker of Dickson Realty, talks about Freddie Mac properties and the Homesteps program in the first part of our Freddie Mac series. Watch the video and learn what Freddie Mac and Homesteps is all about.
Spend an afternoon in Truckee exploring eight remarkable one-of-a-kind custom homes in Northstar and help raise money to benefit local schools during the first Excellence in Education Luxury Home Tour taking place Saturday, September 19, 2009 from 10am to 4pm.
Excellence in Education has partnered with the Tahoe Sierra Board of Realtors for this unique event that showcases a group of distinct homes. Discover many of the latest trends and creative ideas in luxury home building as envisioned by several of the region’s premiere architects, builders, designers and landscapers.
“Our goal is to invite participants to enter a world brimming with inspirational architecture, lavish interior design and creative landscaping,” explained Lil Schaller, Excellence in Education Board Member and Home Tour Chair. “We are looking forward to this new fundraising event and hope to make it a popular annual tradition.”
Proceeds from the Home Tour will benefit quality public education within the Tahoe Truckee Unified School District. Money raised will go directly into the school district via the Excellence in Education Foundation’s grant and teacher training programs.
Tickets for the tour are $30 per person in advance, $35 at the door and group discounts are available. Tickets may be purchased at Dickson Realty, Sheridan Northstar Real Estate, Tahoe Mountain Resorts Real Estate in the Village at Northstar, in person, from any Excellence in Education Board Member and online at www.ExinEd.org.
For more information or to volunteer call 530-550-7984 or visit www.ExinEd.org.
The Tahoe Truckee Excellence in Education Foundation is a private, nonprofit organization that supports quality public education with the Tahoe Truckee Unified School District. Each year the Foundation raises money and provides grants, resources and partnerships to benefit students, teachers and educational community as a whole.
Proper ball position is critical to well struck golf shots. For full shots I have a very basic system. I call it the 3-ball method.
Start with three balls place the first in the middle of your stance, then the second ball one ball over and the third one more ball over to the left. The rule of thumb is that the ball in the middle in your stance should be the proper position for your lower irons, say 7 thru the wedges, the second ball for your mid irons, the third position, just inside your left heal works great for the woods.
You want to catch the ball before the clubhead reaches it’s lowest point by setting the ball just before where the club makes contact with the ground. This will ensure solid contact and you’ll avoid hitting “fat” or thin shots.
Thirty-nine Dickson Realty agents have recently earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by “distressed” homes in the foreclosure process.
Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.
In the Northern Nevada area, currently it is estimated that close to 1,800 homes are in danger of foreclosing. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.
Dickson’s new CDPE designated agents: (shown)Teri Shields, Jeff Geisler, Tammy Olivas, Claudia Byrne, Chris Barns, Victoria King, Jill Deeter, Dan Rider, Andrea Green, Helen Graham, Beth Nitz, Amy Shocket, Mary Robinson, (not shown) Bonnie Beck, Cindy Henderson, Donna Clark, Ivy Cohen, Cyndi Dawson, Gary Edwards, Pam Eikleberry, Denise Fox, Jan Houston, Jen McDonald, Mandie Jensen, Christy Klinger, Anne Lavoy, Gerry Martin, Margie McIntyre, Dee McNeely, Brenda Mee, CJ Risley, Darlene Sharp, Jan Sluchak, Alison Elder, Norm Nicholls, Lil Schaller, Kane Schaller, Emily Sterling, and Maryann Truitt.
“Our job as REALTORS® has changed over the past several years. In our area, our number one goal is to help homeowners stay in their homes. If we are unable to do that then assisting them in a short sale may be a very viable option. A short sale doesn’t impact a homeowner’s credit as disastrously as a foreclosure does. A short sale usually nets the original lender more money and it does not devastate the neighborhood pricing. However working with lenders in a short sale situation can be very frustrating for sellers, for buyers and for real estate agents. We believe successful short sale closings require specialized training and we were pleased to have had 54 agents in this two-day training.” said Nancy Fennell, president of Dickson Realty. “In addition to this two day training, our firm holds monthly “short sale conversations” at each of our branch offices. We have sent our managers to short sale training around the country and we have pooled that information into our Short Sale Toolkit. Because policies and procedures change daily in this market, we find meeting monthly is a tremendous advantage for our agents. We are proud that our agents believe as we do in training, training and more training.”
Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that REALTORS such as these Dickson agents with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts have a better understanding of market conditions and can help sellers through the emotional experience, he said.
The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales.
To find our CDPE agents, visit us online at www.dicksonrealty.com or call any of our local offices: Caughlin Ranch 775.746.7000; Damonte Ranch 775 850.7000; Sparks 775.685.8800; Montreux 775.849.9444, or Truckee 530.587.
So I’m trying to explain our market conditions to an entry level buyer. In this case he’s considering homes in the $120,000 range. Key points for him to consider:
Overall, inventory is relatively low with less than two months supply on the market now at this price point.
In this price range, in some areas we are actually seeing appreciation. It’s not uncommon to see multiple bids and often the price is actually bid up from the list price.
We may have some challenges with the purchase appraisal.
The well priced, active inventory is dominated by REO’s & Short Sales
Sans the distressed inventory this is exactly how we counseled buyers when the market was hot (in my market ’03 – ’06). Kind of ironic under the circumstances and one would hope that consumers and real estate professionals proceed with some caution
The five year ARM’s originated during the boom are beginning to reset now. For many if not most homeowners a lack of equity makes refinancing impossible. Meaningful loan modifications are still pretty rare and short sales still anything but “short”. With this in mind we will undoubtedly see increased foreclosure activity and that will likely create another drop in median value. So how should we proceed?
Fist of all Buyers & Agents should talk about this. Some areas and types of properties are more vulnerable than others. For example smaller, poorly funded condo associations may really struggle if a significant number of homeowners stop paying dues.
Secondly focus on the monthly payment and long term tax benefit rather than the market value of the property. We often see monthly payments equal to or less than monthly rental value. For the moment we shouldn’t consider home equity our nest egg.
Buy conservatively. I know, there are a few ½ priced mansions out there and that can be alluring. I like to recommend that the buyer at least consider the possibility of hard financial times ahead. Contemplate job status, reserves and the length of time the buyer anticipates owning the home. I have a physician client that recently told me for the first time in his career he now has big gaps in his daily appt schedule. It seems that few people are immune from this downturn.
In short I think we all must keep our wits about us and learn from the recent past. Those that ignore history are doomed to repeat it…
Nearly one out of every five women of childbearing age in Washoe County is in need of substance abuse treatment. As the area’s only organization to specialize in drug and alcohol abuse treatment for women and children, STEP2, in response to the staggering statistics, is expanding its treatment capacity. “STEP2’s new facility will double our treatment capabilities from 160 to 320 families per year. This expansion is more important than ever considering the economic downturn which can cause an increase in substance abuse and homelessness. We are honored to be a resource for women and their children to turn to in their time of need,” explained Diaz Dixon, STEP2 Chief Executive Officer. 
Les Maisons is tucked back in the pine forest lots in the heart of the master planned community of Montreux and adjacent to the 7th hole of Montreux’s Jack Nicklaus Signature Golf Course. This idyllic community is set against the majestic backdrop of Mt. Rose and is strategically nestled around a quaint Parisian-style linear “Parc” to facilitate the true sense of social community that Montreux embodies.
Dan Rider, an Owner/Broker of Dickson Realty, talks about Freddie Mac properties and the Homesteps program in the first part of our Freddie Mac series. Watch the video and learn what Freddie Mac and Homesteps is all about.
Proper ball position is critical to well struck golf shots. For full shots I have a very basic system. I call it the 3-ball method. 
Tuesday, November 17, 2009 By: Dan Rider
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