Truckee Real Estate and REO’s

December 2, 2009 by bjessee

 

What are REOs – Real Estate Owned?

Buying an REO is similar to buying a short sale except the property is already owned by the lender. The property has already gone thru the foreclosure process and the bank typically lists the property with a qualified real estate agent.  Hopefully the agent and the lender have open lines of communication to enhance a smooth sales and purchase

Sometimes the lenders will sell foreclosure homes for less than the past loan balance. Most lenders have ‘guidelines’ for the amount they will accept.  In our Truckee and Lake Tahoe areas most lenders are looking for a number within 5% to 8% of the amount currently owed.

Bank owned properties (land or homes or apartments) are called REOs, meaning real estate owned by the lender.

Banks might end up owning the property when no offers come in at the public auction bid enough to cover the amount owed against the property. REO homes are often considered the best way to buy a distressed property because the seller is already out of the picture. At this point you are dealing with the investor’s agent, the bank and the bank’s agent who are negotiating the transaction. Some REOs can be purchased directly from the lender.

For more information, seek the advice of a real estate lawyer, and work with a competent buyers’ agent.

Truckee and Lake Tahoe Real Estate

November 17, 2009 by bjessee

What Is And How to Handle A Short Sale of Your Home?

Although there are many ways one might lose ones home, most avenues are rather undignified for the seller/home owner. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a “short sale.”

Less than one third of the sales in Truckee and Lake Tahoe over the past few years have been short sales.  And even though the numbers might be low – the expertise required is high.

When lenders agree to do a real estate short sale, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose and not all sellers or all properties actually qualify for short sales.

If you are considering conducting a short sale there could be roadblocks in your path. Typically I suggest that all borrowers do the following:

A. Obtain legal advice from a competent real estate lawyer and B. Call an accountant to discuss short tax ramifications.

As a Realtor, I am not licensed as a lawyer or an accountant and cannot advise on those consequences. Except for certain conditions pursuant to the Mortgage Forgiveness Act of 2007, be aware the I.R.S. could consider debt forgiveness as income, and there is no guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid. In some states, this amount is known as a deficiency. A lawyer can determine whether your loan qualifies for a deficiency judgment or claim.

Although all lenders have varying requirements and may demand that a borrower submit a wide array of documentation, the following steps will give you a pretty good idea of what to expect.

1. Contact Your Lender
You may need to make a half dozen phone calls before you find the person responsible for handling short sales. You want the supervisor’s name, the name of the individual capable of making a decision with regard to your potential short sale situation.

2. Submit Letter of Authorization
Lenders typically do not want to disclose any of your personal information without written authorization to do so. If you are working with a real estate agent, closing agent, Title Company or lawyer, you will receive better cooperation if you write a letter to the lender giving the lender permission to talk with those specific interested parties about your loan. The letter should include the following:  Name/Address/Loan Number/Real Estate Agent Contact/Date

3. Preliminary Net Sheet
This is an estimated closing statement that shows the sales price you expect to receive and all the costs of sale, unpaid loan balances, outstanding payments due and late fees, including real estate commissions, if any. Your closing agent or lawyer should be able to prepare this for you, if you do not know how to calculate any of these fees. If the bottom line shows cash to the lender you will probably not need a short sale. However, if this is a negative number, it’s obvious you are in a short sale position.

4. Hardship Letter
This statement of facts describes how you got into this financial bind and makes a plea to the lender to accept less than full payment. Lenders are not inhumane and can understand if you lost your job, were hospitalized however lenders are not going to be empathetic to situations involving dishonesty.

5. Proof of Income and Assets
It is best to be truthful and honest about your financial situation and disclose assets. Lenders will want to know if you have savings accounts, money market accounts, stocks or bonds, negotiable instruments, cash or other real estate or anything of tangible value.

Truckee Real Estate

July 13, 2009 by bjessee

Thinking of Moving Your Money From the Market to Real Estate?

 

Now may be the time.  With overall markets losing on a daily basis, watching your portfolio dwindle can be frustrating to say the least.  It’s not your fault, you made good investments at the time, but with things changing so rapidly it’s a difficult situation to deal with.

 

Is there a safer alternative to invest your monies? With real estate prices at all time lows, interest rates holding at the current lows, now may be the time to get out of the market and into real property for many.

 

Currently I am working with a buyer who intends to do just that.  Unfortunately, the bank has been slow in responding to her all cash offer and during a one week period, her portfolio dropped in value by a whopping 4%.  Her situation could change tomorrow if the bank continues to wait to respond to a great offer.  Common sense would tell us that cash for property is better for the bank being in the property holding mode.

 

So let’s look back at history…here in the Greater Truckee area, the past few years have seen close to 18% in price fall off.  Not such great news for those who just entered the housing market during or purchased during the highs of the 2005 and 2006 years and need to sell now.  Those, however, who purchased earlier or are purchasing now with a long term hold are in good financial positions. 

 

The Why and How of it:  interest rates are down from those years and those able to qualify can refinance into lower rates.  Those that don’t have to sell know that historically property values have always increased in eventuality.

 

Your personal goal, like many, was to leave a legacy for your family thru wise investments.  Property legacies have been the alternative for many wise investors over the years – rather than those stocks and bonds that are losing value all too rapidly.  The family vacation home and lifestyle might just be the perfect option for you to pass on to your family.

 

Give me a call and we can discuss your thoughts while I can provide you with detailed insight into our current market.  As a relatively stable housing market has provided many with family legacy trusts – it just might be the best option for you to consider.

 

Always your best in mind!  Bonnie Jessee 530 412 3984

What’s Happening With Real Estate In Truckee, California?

April 30, 2008 by bjessee

Truckee RealtorWHAT’S HAPPENING WITH REAL ESTATE IN TRUCKEE?

 

BONNIE JESSEE, Realtor®

530 412 3984

 

New Properties for Sale

 

Over the past few weeks, I have had several new friends from out of the immediate area calling to view and potentially purchase properties in Truckee, North Tahoe and the Soda Springs area.  It has been quite a surprise to our out of town friends (or our part timers as I like to think of everyone) to see that low-ball offers are not typical and if placed are being rejected – on occasion even verbally.

 

For instance, today (Friday the 25th) 25 new listings were on the MLS – of those 25 new listings, 8 were single family residences, 6 were in Truckee and pricing ranged from $459,000 to $1,350,000.  The remaining were shared ownerships, out of the immediate area properties and even 2 boat slips in Tahoe City listed for $375,000 and $385,000 (yes, a boat slip in Tahoe City)!

 

Bank Owned Properties

 

Despite the fact there are bank owned properties on the ‘market’ and there truly are some fabulous deals to be had, for the most part, these bank owned or pre-foreclosure properties sell almost immediately when displayed in the MLS.  The down fall can be that the ‘bank’ or lender will typically provide no assistance with repairs and what you see (or don’t) is what you buy!  In relation to what is for sale and what is selling, the number of these types of properties available is quite insignificant.

 

What is Truly Happening

 

On a very personal note, I have a buyer I am working with who owns a property (vacant land) that we are attempting to use as a trade/down payment.  We made an above full price offer on a new property which I felt as a professional was a terrific offer.  In any case, the following day, the seller received an additional three, yes three offer, on the same property and the result was a sale well above listing price.    Not uncommon for this much localized area.

 

What Does Localized Indicate?

 

Although Truckee has a full time base population of around 17,000 individuals and approximately 12,000 properties (including Northstar and Squaw) it appears that each ‘neighborhood’ is currently rather independent of another when it comes to the sales price point being reached in negotiations.  In other words, a property in Tahoe Donner may command a price of $750,000 which in Serene Lakes that property would be close or higher in price, in Glenshire it may command $675,000, regardless of the fact they may be almost identical properties.  And, of course, the North Shore of Lake Tahoe is another localized area.

 

What Now?

 

While most of you know I work almost exclusively with buyers, my goal has been to get the best deal for my buyers.  I do see economic healing on the horizon; I also see with that an increase in the cost of owning in our beautiful Sierras!  I truly believe, from what we see daily in this real estate industry/market (localized) now is the time to buy.

 

Bonnie Jessee

530 412 3984

TIMING YOUR HOME PURCHASE –

April 17, 2008 by bjessee

The Business Cycle and Buying a Home ~ Home Buying Advice

How to Time Your Home Purchase to the Market Cycle?
Bonnie Jessee, Reatlor
530 412 3984
 

Ah, if only we had that special real estate crystal ball!  Then timing your purchase to the cycle would be an easy task!

Attempting to time your purchase to the “business” cycle is sometimes getting lucky and sometimes paying attention to the small signs.  Even economic advisors and consultants have inconsistencies accurately predicting the future economy. Even when these experts are relatively successful, the real estate market does not necessarily move in tandem with the economy as a whole.

Part of the reason is the timing and inconsistency of interest rates.

During periods of economic growth, interest rates are generally higher. Therefore fewer people can afford to purchase a home or second home unless they are cash purchases. When the economic situation is slower, interest rates fall, and more people can afford to purchase a home by obtaining a mortgage.

As you can see, this cycle does not move in conjunction with the remainder of the economy. It is also influenced by levels of employment, pay scales of various jobs, and consumer outlook for the future. Such facts make it difficult to know ~ ahead of the time ~ whether the housing market is going to be a wise investment.

The best advice is to preview the market where you intend to purchase, deal with a professional Realtor®, and plan on holding for as many years as possible. 

Unless, of course, you have a crystal ball!

 

The Differences Between REALTORS® & ‘Real Estate Agents’

April 14, 2008 by bjessee

The Differences Between REALTORS® & ‘Real Estate Agents’

Bonnie Jessee, Realtor® 530 412 3984

People use the terms REALTOR® and real estate agent interchangeably, however, this is not appropriate or correct. There are many differences between REALTORS® and real estate agents. The names alone are similar. Although both are licensed to sell and or list real estate, the basic difference between a real estate agent and a REALTOR® is that a REALTOR® is a member of the National Association of REALTORS®. Therefore, the main difference that we hear a lot about and might be confused by is that a REALTOR® must subscribe to the Realtors Code of Ethics. But what does this mean to you as the consumer or client of either?

The Code of Ethics is strictly enforced. It contains 17 Articles and various underlying Standards of Practice.

These are not ‘suggestions’ but rather rules that REALTORS® are sworn to uphold and adhere to at all times under all circumstances. The Standards are much more restrictive and confining as to conduct than those governing ‘real estate agents’ who simply hold a real estate license. Of course, there is no guarantee that all REALTORS® are morally and ethically better than unaffiliated real estate agents, it is a goal set by the industry to regulate and of course deserves recognition.

Here are 17 things that a REALTOR® promises, that a ‘real estate agent’ is not sworn to.

1) Pledge to put the interests of buyers and sellers ahead of their own and to treat all parties honestly and fairly.

2) Shall refrain from exaggerating, misrepresenting or concealing material facts; and is obligated to investigate and disclose when situations reasonably warrant.

3) Shall cooperate with other brokers / agents when it is in the best interests of the client to do so.

4) Have a duty to disclose if they represent family members who own or are about to buy real estate, or if they themselves are a principal in a real estate transaction, that they are licensed to sell real estate.

5) Shall not provide professional services in a transaction where the agent has a present or contemplated interest without disclosing that interest.

6) Shall not collect any commissions without the seller’s knowledge nor accept fees from a third-party without the seller’s express consent.

7) Shall refuse fees from more than one party without all parties’ informed consent.

8) Shall not co-mingle client funds with their own.

9) Shall attempt to ensure that all written documents are easy to understand and will give everybody a copy of what they sign.

10) Shall not discriminate in any fashion for any reason on the basis of race, color, religion, sex, handicap, familial status, or national origin.

11) Expects agents to be competent, to conform to standards of practice and to refuse to provide services for which they are unqualified.

12) Must engage in truth in advertising.

13) Shall not practice law unless they are a lawyer.

14) Shall cooperate if charges are brought against them and present all evidence requested.

15) Agree not to bad mouth competition and agree not to file unfounded ethics complaints.

16) Shall not solicit another REALTOR’S client nor interfere in a contractual relationship.

17) Shall submit to arbitration to settle matters and not seek legal remedies in the judicial system.

The National Association of REALTORS® was founded in 1908 and has more than one million members

 

Truckee Real Estate ~ Bonnie Jessee, Realtor

April 9, 2008 by bjessee

Down Payment Assistance Planning~Truckee Real Estate

Bonnie Jessee, Realtor

530 412 3984

We have all been taught to follow the rules that it is best to put down 20(%) percent on the home you are buying (or the loan you are obtaining). With a 20 (%) percent down payment, you will secure a loan on the best terms, without paying private mortgage insurance (PMI) or the FHA equivalent of PMI, also known as MI, and typically obtain a lower monthly or annual interest rate.

And as housing prices stabilize in most states, coming up with that kind of cash can be difficult for first time buyers.  Most first-time buyers don’t have 20(%) percent to put down on a home. Many buyers are attempting to get in to a property with as little as 3(%) percent to 10(%) percent.

While getting a 100 percent loan (no down payment necessary) is still possible, it can be difficult to find a good lender who will do it at a reasonable cost. And we know that getting that 20(%) percent down payment is important.

In conjunction with saving as much as possible for that 20(%) percent down payment there are other options to consider:

401K MONIES. If you work for a company that offers a 401(k) plan, it’s in your best interest to fund it to the maximum allowed for your income. Not only will you be able to tap into the power of compounding (and have your money work harder for you), but you’ll be able to more quickly build a sizeable nest egg for your retirement. When it comes to borrowing from a 401(k) plan, not every company allows it. Check with your plan administrator to see if your company will allow you to borrow, if there are limitations on what you can do with the cash, and what the interest rate will be on the money you borrow. You should also be aware that you’ll typically need to repay this cash within 5 years. But if you should leave the company, or be fired, you’ll need to repay the cash within 60 days, or it will be considered a withdrawal (and you’ll owe federal income taxes on that money along with a 10 percent penalty, if you’re under the age of 59 1/2).

IRA MONIES (UP TO $10k).  If you have an individual retirement account (IRA), the IRS allows you to withdraw up to $10,000 for the purchase of a first home. (For those of you who have purchased a home before but haven’t owned a home in the last 3 years, you’re considered to be a “first-time buyer” for this specific purpose and can make a withdrawal). When you withdraw cash at any time from a tax-deductible, tax-deferred IRA, you’ll owe federal income taxes on the amount you’re withdrawing at your current marginal tax rate. However, if you’re withdrawing for the purchase of a first house, you will not owe the 10 percent under-age penalty if you’re less than 59 1/2 years old.

Gifts. If you’re buying a house, your parents, siblings, other relatives or friends can give you a gift of funds to be used toward your down payment. However, for a lender to accept that this is a gift, and not a loan, you’ll need your friends and family to sign a gift letter that states that this cash is a gift and does not need to be repaid. That letter will become part of the documents that you provide to the lender who will be approving your loan.

Rent-to-own or lease/options. If you don’t have enough cash in your IRA or 401(k), and you can’t get your lender to give you a 100 percent loan, you might put your plans to purchase on hold for a year or two and find a seller who is willing to do a rent-to-own or lease/purchase arrangement for his or her property. Often, the seller will provide down payment assistance by giving you a credit for a portion of your monthly rent payments. In a year or two, you can easily build up a 5 to 10 percent down payment, depending on how much of a rent credit you’re given. For example, if you pay $1,000 per month, and the seller gives you a 20 percent credit, $200 per month will accrue toward a down payment on the property. After a year, you’ll have $2,400 for your down payment. If you’re going to go down this path, be sure to work with a real estate attorney who can help you negotiate the fine print. You may want to negotiate the purchase price of the property upfront, and you will definitely want to include the down payment credit terms as part of the lease.
 

March 14, 2008 by bjessee


TRUCKEE’S FIRST BUILDING
graycabin.jpg
Story by Guy Coates

 

In 1863 the town of Truckee did not exist. In fact, all that was visible along the banks of the Truckee River were rocks and virgin forest—except for one solitary log house built by pioneer Joseph Gray.

Native Americans roamed this Sierra region. A small white settlement hear the head of Donner Lake served the many coaches and their teamsters and passengers who passed daily along the Dutch Flat-Donner Lake Wagon Road, enroute to Virginia City and the luring Comstock Lode.

Joseph Gray believed that this area would be a good place for a tavern and way station for weary travelers. It was near this spot that transportation routes converged—the Henness Pass route from the upper North Fork of the Yuba, and the Dutch Flat-Donner Lake turnpike. Five years hence the Central Pacific would choose the same area as the focal point for its mountain operations.

Constructed of native tamarack and lodgepole pine in about 1858, Gray’s cabin was located at today’s southwest corner of Jibboom and Bridge Streets. Experts have examined the 24’x20’ building and noticed no evidence of any kind of saw used to build the structure. The timbers had all been hewn with axes into the shape of a house.

Initially, the small cabin sat alone beside the only road, and it was here that Gray ran a frontier hostelry, which served weary travelers arriving on the six-horse Concords of the California Stage Company. Twenty and thirty-horse freight wagons rolled past the cabin day and night. Gray’s establishment was a place where travelers and teamsters could rest and enjoy all the comforts and hospitality of a friendly roadside inn, purchase supplies, and obtain directions or information.

Joseph Henry Gray was born in 1826 in Middleton County, Durham, England. He was the son of Thomas and Ann Gray who emigrated to Tumockwa, Pennsylvania in the late 1820s. In 1833 the family, including Joseph and his nine brothers and sisters, moved to Dubuque, Iowa, “the heart of the Indian country”. In 1834 the family again moved, this time to Galina, Illinois where they settled and farmed.

Young Joseph, restless and bored with farming, heard of the rich gold diggings in California. In 1849 he ventured westward with two of his brothers, seeking adventure and fortune. But contrary to the motivation that inspired most men moving West at the time, it was business opportunities rather than mining that attracted Gray. He first went to Texas, purchased a herd of cattle, drove them to California and sold them at a high profit. He then purchased a quarter section of land on the Old Auburn Road at Sylvan, in Center Township, Sacramento County, and later became the proprietor of the “Fourteen Mile House,” a station and inn located in the present day town of Citrus Heights. Joseph Gray settled there with his wife, Ann, and three daughters, Annie, Georgiana, and Nellie.

Gray became a successful businessman, both in buying and selling cattle and in the drayage business. He met and became friends with Charles Crocker, one of the railroad’s “Big Four,” whom he considered “his partner”. Perhaps it was from Crocker that he learned the proposed route of the Central Pacific over Donner Pass and decided that better opportunities might await him in that area.

When Gray first visited the present-day Truckee area in the late 1850s, he and two other men constructed a cabin on his 640 acres along the Truckee River. Soon after, Gray and his family moved in. When the railroad surveyors arrived, Gray’s 640 acres of land were confiscated. Resenting this seizure, Gray took the appropriate legal steps and, by 1864, re-acquired most of his land.

Interestingly, the only recorded Nevada County deed reflecting the transaction is dated August 16, 1864 from S. W. McDonald to Joseph Gray consisting of two quarter sections of land and improvements on the Dutch Flat-Donner Lake Wagon Road. The sole consideration of all this land was a mere $200. There is no record as to the identity of who S. W. McDonald was or how he became involved. It took years for Gray to finally gain clear title to the land that became the town of Truckee.

When Gray and his family eventually settled into their two-story log home, family life flourished. Ann cooked large meals of beef, lamb or venison for her family and the cowboys. Joseph loved dogs and there were usually from 15 to 20 canines whose job it was to chase badgers and coyotes. In the wintertime these four-legged companions also served as sled dogs.

Business was good. Gray owned several freight teams, sixteen or eighteen mules, four to six horses and a number of wagons. His teams hauled freight from Grass Valley to Virginia City and the Gold Hill Districts. Huge supplies were stored near the cabin for winter consumption.


Gray’s Station, as it existed at the time, encompassed the entirety of the present downtown district of Truckee. Most of the area was a fenced corral. Next to his cabin, Gray built a horse stable and blacksmith shop; the stable was located on the land that is now Truckee’s downtown post office.

Gray made many trips east to buy cattle. Assisted by his crew of youthful cowboys, he drove his herd across the plains. The beef cattle were slated to feed the thousands of hungry railroad construction crews that, by mid 1866, were struggling toward Donner Summit. During Gray’s long trips from home, his wife capably managed the station.

As the railroad approached, a man named S.S. Coburn purchased land to the west of Gray’s Station and built another depot which grew into a larger settlement called Coburn’s Station. 

About the same time, Joseph Gray met lumberman George Schaffer. The two men recognized the need to supply lumber to the Central Pacific and the Comstock Lode and formed a partnership to build Truckee’s first sawmill, located across the river from town.

On June 8, 1868, Joseph Gray and his family joined the cheering crowds as the first eastbound locomotive slowly chugged its way through the settlement. By now the community included a large number of permanent homes, two churches, a school, several hotels, and a myriad of saloons, Central Pacific roundhouses and a flamboyant red light district.

When Coburn’s Station burned down a month later, Gray sold portions of his land along the railroad to a number of entrepreneurs who built the present town, now called Truckee.

Notable townsmen such as John Kaiser, Frank Burckhalter, Stuart McKay and Elle Ellen were among the new arrivals. Almost overnight, the new town emerged just east of the rubble of Coburn’s Station.

On November 8, 1868, the Grays were blessed with their first son, Joseph Henry Gray II, who his proud father named after himself. Joseph Jr. became the first white child born in the new town of Truckee.

Prosperity created recognition for the ambitious pioneer; Gray became a familiar face in town and was affectionately called Uncle Joe. His children played, grew up and went to school in the bustling little town and soon the family moved to a newer and larger residence on Church Street.

Seeking new opportunities, Gray sold his interest in the lumber mill to Schaffer and hired large numbers of Chinese to cut cordwood for the railroads and to fuel the stoves of the growing town.

Gray’s business ventures branched out. He opened the American House Hotel. In 1875, he became president of the Peoples Ice Company located at Camp 20 east of town where he also owned and operated a sawmill.

In the early 1880s, Gray purchased the old Cadwalder Mansion at 720 N Street in Sacramento and moved there with his family. Perhaps the move was instigated because the severe Sierra winters were becoming difficult, or it may have been because he didn’t agree with the town’s growing sentiment to expel Truckee’s Chinese population. He remained in Sacramento, making frequent visits to Truckee.

Joseph Gray Sr. passed away on August 6, 1897 at age seventy-one. His widow, Ann, lived until 1909. They are both interred at the I.O.O.F. Cemetery in Sacramento.

But the story of the Gray family did not end with the passing of “Uncle Joe”. Joseph Henry Gray II moved to Reno, Nevada and became a successful partner in the Gray, Reid & Wright Department Store that existed until 1970. A registered historical place and beautifully preserved, his huge mansion, which still stands at 457 Court Street, now houses professional offices.

Georgiana Gray married George E. Bullfinch, who served as principal of Truckee’s school and also as general manager of the Union Ice Company. They raised nine children.

Annie Gray married John Rodda; they had three children and resided in San Francisco.

Nellie Gray married Andrew Carlaw and lived in Sacramento. Joseph Gray III, along with John K. Koeneman and Harold G. Laub, became one of the founding partners of Southwest Gas Company of California, Nevada and Arizona.

Gray’s cabin served as a copper shop and was later donated by D.J. Smith to the Native Sons and Native Daughters of the Golden West, Donner Parlor #162 who used it as a meeting hall. In 1912 the Native Sons moved the cabin to its present location at 10030 Church Street, west of the Recreation and Park District. The land for the new site was obtained from William Englehart Sr.

Standing on the site of Gray’s Station is the Stone Garage, now occupied by Sierra Mountaineer. A portion of the old livery stable is said to form part of the newer building’s wall. Below the paved parking lot is what was once the corral.

The Truckee Republican commented that after a lapse of fifty-four years, most of the cabin’s timers were “as solid and firm as the day they were fashioned into the shape of a house”.

Reconstruction and restoration required taking the entire building down, piece by piece, and putting it up again on an alternate site. A new roof was needed while rafters, floor and ceiling joists from the old building were adapted to form an ante-room portico. In the 1950s the aging building was, again, extensive remodeled by Bill and Irene Englehart who used the cabin as their residence. More recently, a larger addition was added to the rear of the building and the entire structure was improved to meet current building codes.

Despite the many fires, which razed the town, the ceaseless construction of roads, freeways and commercial developments, winter storms and a continuous barrage of occupants, the old log house still stands today.

The structure exemplifies a memorial to Joseph Gray’s accurate, prophetic vision. It is a tribute not only to Truckee’s past, but also to the future of a town steeped in History and to its citizens who have accepted progress while still embracing the pioneer spirit and determination of the town’s founder, Joseph Gray.

 

TRUCKEE REAL ESTATE ~ SECOND HOME OWNERSHIP IN TRUCKEE, CALIFORNIA

March 9, 2008 by bjessee

Truckee Real Estate ~ Second Home Ownership or When Should I BUY?

TRUCKEE REAL ESTATE

 

SECOND HOME OWNERSHIP OR

WHEN WILL THE ROLLER COASTER STOP?

 

Is now the time to buy that perfect second home in Truckee/Tahoe?  The streets and shops are busy with locals and tourists, however, are most of the people visiting here contemplating that home purchase or waiting for some sign that pricing has reached bottom?

 

What have the ‘trends’ been in the Truckee/Tahoe area?  It all depends on what angle you are viewing this situation from.  A full time homeowner needing to move for a new job or personal reasons have felt some pain as their equity position has weakened during the past year or so.  Those second homeowners with no need to sell have placed their homes on the market and tempted by buyers, have sold for slightly less than they wished or held out for a better price.

 

Attractive interest rates seem to come and go so quickly that buyers are not certain what move to make!

 

In actuality, as a buyer, consider this your smorgasbord time.  Truckee/Tahoe has an excellent selection of properties available, some priced well below market, while others are priced incorrectly and may remain on the market for an extended period of time.

 

Right now buyers should recognize that it is time to step up to the plate and take advantage of the entire market situation!  While no one knows or can predict the exact timing to purchase your home – where do you want to me when the roller coaster stops?  My recommendation is to be on the track and be one that has already become a winner in this market and not the one who waited too long to buy!

 

Respectfully

 

Bonnie Jessee, Realtor

530 412 3984

www.welcomehometruckee.com

Truckee Real Estate~Buying in Truckee, California

March 7, 2008 by bjessee

Famed Money Manager is perhaps best known for his timeless wisdom that you can beat the pros by focusing on stocks of companies where you either work or shop or have some other edge. But a more relevant Lynchism today is this gem: Ignore the headlines.That’s no easy thing. How do you tune out all the chatter and ink on recession, housing, subprime woes, the credit crunch, rogue traders, insolvent bond insurers, $100 oil and nukes in Iran? It’s enough to make you sit on your thumbs and wait before making any big moves. But what, exactly, are you waiting for?There has rarely been a moment in history when you couldn’t scare yourself into doing nothing. And yet, as Lynch observed nearly 20 years ago, “in spite of all the great and minor calamities that have occurred … all the thousands of reasons that the world might be coming to an end–owning stocks has continued to be twice as rewarding as owning bonds.”A top reason to not buy stocks, in Lynch’s view, is if you don’t already own a home–in which case, that should be your first investment, since an owner-occupied home is nearly always profitable. Through a spokesman, Lynch reaffirmed these views to me–housing debacle and all.When prices are falling, few people have the discipline to buy stocks, a house, gold, art or any other asset. But those who do pull the trigger excel in the long run. As John D. Rockefeller famously said, “The way to make money is to buy when blood is running in the streets.”And the streets are stained crimson. Start with stocks. They have been pummeled this year. GDP braked sharply last quarter, and there has been plenty of panic about a recession. The Federal Reserve is slashing short-term interest rates at the fastest clip in decades. But if you stick to your steady, diversified plan while everyone else is retreating, you will be happy years from now. For one thing, Fed rate cuts always lift the economy eventually, and the stock market typically starts responding just as headlines get gloomiest. Sure, the market could fall again before recovering. But the recession may be half over already–or we may avoid one altogether. You just never know.As for housing, certainly some skepticism is in order. Formerly sizzling markets in Florida, Nevada, Arizona and California probably haven’t seen the worst headlines just yet, though they may well be close. And “jumbo” mortgages, those more than $417,000, are likely to remain artificially high for a few more months while banks work through their credit issues.But let’s say you are emotionally ready to be a homeowner. You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. It’s time to get serious–before an inevitable rise in interest rates wipes out your advantage. “The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher,” says Jim Svinth, chief economist at mortgage firm Lending Tree. So anything you gain by a further drop in prices might be offset by rising financing costs.Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today’s rate of 5.5%. Monthly principal and interest come to $994.31. Let’s say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you’d have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you’d rather not be.It’s more complicated if you must sell before you can buy. But that logjam won’t persist forever–and if it appears you’ll be trapped for a few years, try to refinance at today’s lower rates. Risks always seem most acute when the headlines give you ulcers. But that’s exactly when you should think long term–and get off your thumbs.  Reprinted from Time Magazine by Dan Kadlec