Realty World – Innovative Realty Service

If you have been waiting to buy a home, NOW is the time.
If you have been waiting to refinance your current home today is the day.
Neither these rates nor the sale prices will remain down here much longer.  Some day soon the bills for “CHANGE” will come due and we’ll see the rates begin to rise.
Look at this AP article for more details.
Gilroy home values have already bounced off the bottom.  Likewise, Morgan Hill and Hollister homes have seen a balance in demand and supply.
Time for your co-workers, friends and family to make their move.
What do you think?

Wow! You’ve got to see this VIDEO Tour!
The featured home is literally “Off the Grid” (zero PG&E costs) and sits on 22 beautiful acres in the East foothills of Morgan Hill, CA.  Even the well has it’s own generator.
Although you feel like you are in the mountains, on vacation when on this property, you’re only 15 minutes from Hwy101 and 40 minutes from down town San Jose.  You pass Lake Anderson on the way to and from this home and can see Coyote Lake from this tree-studded parcel.
Call me for your own, on-site, personal tour.  I look forward to your comments.

Your home is on the market and your water heater goes out.  That’s the last thing you want – spend  money on something you will not get any return on.
It happened again.  A seller in Morgan Hill had their home on the market.  One cold morning they went to turn up the heat and found their furnace had gone out.  The cost of the installed new furnace: $1,800!  While they were warm again their net proceeds from the sale just dropped by a cold, $1,800.
Water heaters, microwave ovens, compactors, ovens, disposals…they all have a functional life and then give up the ghost – without warning.  Those repair bills are aggravating and, unnecessary.
A Cool Solution: Home warranty policies are available for sellers as well as buyers.  For roughly $.73 a day you can cover all of your major appliances during your listing period.  Should something go out you only have to pay a set fee, usually around $55, and the warranty company will repair or replace your appliance for no additional cost.  Click here for more information.
The payment for this warranty can be from your net proceeds in escrow.  Additionally, if your home doesn’t sell some of the warranty companies won’t charge you anything.  So you just can’t lose.
Selling your home can be an anxious time but this little tip will keep your equity in your pocket and provide some peace of mind.

We all know home values have dropped over the last 3 years.  Will that slide continue?
Single family home values in Hollister dropped by 41.6% from 2007 to 2008.  In 2009 they fell another 17.4% . Townhomes values have likewise dropped: 54.3% from 2007 to 2008 and 25.5% from 2008 to 2009. 
The average sales price of Hollister homes in 2007 was $548,562.  In 2008 it was $320,419, and $264,601 the average sales price for 2009.
Townhome sales show a similar pattern: their average sales price was $339,780 in 2007, $155,354 in 2008, and $115,725 in 2009.
However, it appears that the value slide has hit bottom.  A closer look at 2009 average values suggests that we may have bottomed out in 9/09 and are beginning to see a rebound in both single family residence and townhome values.
Morgan Hill & Gilroy home and townhomes reflect a similar trend in values although the downward adjustments in value are more dramatic as you go south to Hollister.
(Data: MLSListings)

It is getting harder to find homes for those buyers we have been working with for months.  The entry level prices are rising and qualifying for prospective buyer’s  is shrinking.    
After looking at several Hollister homes I heard the frustrated buyer sigh:  ”I think we’re just going to wait to buy a home“.  I tried to reason with him regarding rising prices and the likely increase in home loan rates.  He was just too disappointed to hear anything right then.  So, this post is my therapy for today’s weary home buyers. 
Home loan rates WILL go up.  It’s only a matter of when will they start.  All of the attempts to stave off a sick economy cost money and will begin to push rates higher.  As they rise, ‘purchasing power’ drops:                      
Let’s say my buyer waits 6 months and the rates then are up .5%.  His $300,000 loan will cost $92 MORE each month than he could get today.  To qualify then he will have to earn $225 MORE per month for the same loan he could get now.  If his income hasn’t changed his purchasing power will drop by $17,150!
If the rates go up by 1.0% the payment will jump up by $192 per month for the same $300,000 loan he could have gotten today.  $192 PER MONTH!  Yikes!   His income will need to be $460 more per month to qualify for the same loan he could have gotten today.  With no change in income, his  purchasing power will drop by $32,800!
Postponing the purchase of your home doesn’t make cents.  Get a good night’s sleep and go back at it tomorrow.  Afterall, somebody is buying these homes.  Why not you?