5 Real Estate Terms You Should Know

By Maggie Francis, Sierra Pacific Real Estate

I have found, as a real estate agent, that sometimes just getting started with the home buying or selling process can be the biggest hurdle. There are a lot of unknowns. Finding a good real estate agent, lender and other industry professionals can certainly make the process smoother, but also having a grasp on some of the real estate terms you will encounter helps a prospective buyer/ seller know what to expect and can certainly ease the apprehension that may be associated with a real estate transaction. Here are a few of those terms to know:
• PRE-APPROVAL LETTER: Before a buyer applies for a mortgage or even start looking for a home, they should get a pre-approval or pre-qualification letter from bank/lender, which is an estimate of how much they'll lend. This letter will help a buyer determine what they can afford, and ensures home sellers that a buyer will be able to get a loan when needed
• INSPECTIONS: After a buyer has made an offer on a home, they will need to schedule a home inspection, a pest inspection and possibly well and septic inspections. These home inspectors will go through every nook and cranny, and review things like the plumbing, electrical, foundation, walls, heating, and appliances.
• APPRAISAL: When a buyer applies for a mortgage, the lender will require an appraisal of the home to be purchased. A licensed appraiser will estimate the home's value based on comparable homes that have sold in the area and an investigation of the property.
• CONTINGENCIES: When a buyer puts in an offer on a home, they can specify certain conditions that must be met before the deal will go through – these are called contingencies. There may be loan, inspection, appraisal value contingencies.
• CLOSING COSTS: Buyers and sellers should be prepared to pay a number of fees when selling or purchasing a home.  Common fees, negotiated between the buyer and seller, include escrow costs, taxes, loan-processing costs (paid by buyer) title insurance, a one year home warranty, and transfer taxes.
It's great to do your research before jumping into a decision as big as buying or selling a home, but also speak to your local real estate professional right away as you are considering your options. Your agent will be ready with a wealth of knowledge, great referrals and will be happy to help you make the most of your next real estate transaction.

Spring Housing Already Overheating

By Christine Schlittenhart, Sierra Pacific Real Estate

The spring housing market started early this year, not because of higher-than-average temperatures but because of hotter-than-average demand and overheating home prices. This year may be the starkest example of a post-recession reality that is redefining housing as we know it.
Housing affordability is the key to helping break yet another year of gridlocked inventory, but all signs are showing that homes this spring will be much less affordable than last year.
Affordability is being hit on several fronts: The foreclosure crisis is over, but it left behind an entirely new landscape for potential buyers. Entry-level homes are scarce because investors bought tens of thousands of them during the crisis and turned them into rentals. The number of single-family rentals jumped to more than 15 million, up from about 11 million in 2009, according to the U.S. Census.
  Homebuilders continue to operate well below normal levels because of higher costs and a lack of labor, and thousands of construction workers left the business during the recession, never to return. Builders don't focus on entry-level homes because the margins are simply too tight, and prices for new construction are also rising at a fast clip.
  What's more, credit is still tight, and the youngest cohort of buyers, the millennials, are delaying marriage and parenthood, the two biggest drivers of home ownership. The shortage of homes for sale has now pushed prices to a 30-year high. Rising mortgage rates only add to the pressure.
  Housing demand climbed considerably this year, even compared with last year, as the leading edge of the largest generation finally moves into home buying and a stronger job market supports them. A monthly demand index from Redfin jumped to the highest level since January 2013, when the index began. Compared to January 2016, homebuyer demand was up 23 percent, led by a 26 percent annual increase in homebuyers requesting tours and an 18 percent increase in buyers making offers.
  Soaring stock markets, still-low mortgage rates, and a steady economy bolstered homebuyers at the start of 2017.  Homebuyers were not just window shopping. They were serious about making offers and getting to the closing table. However, this uptick in homebuyer enthusiasm won't guarantee strong sales in the coming months. With pending home sales down across the country in January despite strong demand, the lack of supply is a formidable foe for buyers this year.
  Higher home prices in some areas are supported by improving local economies and employment, but in other markets, too much demand pitted against too little supply is resulting in overheated housing.
  Potential buyers today are facing tough new realities. Some houses are clearly overpriced, and renting is still a better financial option in some markets. Competition is fierce for the best homes, and buyers have to be
ready to pull out all the tricks.

Top 10 Summer Real Estate Selling Tips

By Christine Schlittenhart, Sierra Pacific Real Estate

Research from top Real Estate professionals produced the following ten Spring cleaning tips for homeowners who want to impress potential buyers. If you don't have time to do them all, start with the first three, which have the biggest impact.
1. Replace Popcorn Ceilings. Otherwise known as cottage cheese ceilings or acoustic ceilings, this type of treatment was common in homes built from 1950-1980. Unfortunately modern day homebuyers don't like it. Removing or covering a popcorn ceiling is a time intensive process, but can increase the value of your home.
2. Apply Fresh Paint. A new coat of interior and exterior paint dramatically improves the appearance of your home and makes it feel fresh and clean. To appeal to the widest audience, stick to neutral colors that will go with any furniture, and choose an exterior paint that matches other homes in the neighborhood.
3. Focus on the Floors. Steam clean all carpets, use a wood-cleaning product on hardwood floors, and consider professional cleaning for tile or marble. The walls, ceiling and floors are what potential buyers pay the closest attention to while on home tours, so it's important that they are as clean as possible.
4. Make a Grand Entrance. Consider replacing or painting the front door; if you have shutters, paint them a matching color. Clean and polish the door knob and fixtures, and dress up the entry with seasonal decorations such as flowers or a wreath. People are naturally attracted to symmetry, so place any accents on both sides of the door.
5. Replace or Repair the Mailbox. An old or damaged mailbox makes the wrong first impression. You can purchase a new one at most hardware stores and major retailers. If you replace the post, make sure it sits at a height of 42 inches above ground to meet federal regulations.
6. Maintain the Yard. Landscaping has a major effect on curb appeal. Make sure your home looks its best by mowing the lawn, weeding the flowerbeds, and pruning the bushes. Planting small flowers in the yard can be an inexpensive way to add a pop of color.
7. De-clutter and Organize. Keep only the essentials, and put everything else in storage or give it away. Not only will your home feel cleaner and bigger when it's not filled with stuff, this process will save you time when you're ready to move.
8. Let in the Light. Wash the windows inside and out, clean the curtains and blinds, dust any light fixtures and replace any burnt-out bulbs. A room filled with light will feel more warm and inviting.
9. Deep Clean the Kitchen and Bath. Wipe down or paint the cupboards, clean the grout between tiles, clear everything off the counters. Re-caulk tubs, showers and sinks and polish the fixtures. Make sure no mold is present.
10. Stage the Backyard. The backyard is often the last thing buyers see on a tour, so it should look nice. Simple staging can make a big difference. Get rid of decorations and clutter in the yard, add a table and chair set, power wash and stain the deck and fence, and clean the pool and spa. Remove any dying plants, and take down any shed or outdoor storage that's in poor condition. If budget permits, add a barbeque, fire pit, Koi pond or outdoor lighting to create an inviting space.

Make Your Home a HOT Commodity this Winter

By Christine Schlittenhart, Sierra Pacific Real Estate

Although the holiday season can be a hectic time to show and sell your house, there are distinct advantages to staging and showing your home at this time of year  you have a chance to show your home at its very best, adorned with warmth and cheer that's sure to charm. Nothing is more inviting than a home brimming with greenery, twinkling lights and holiday decorations.

First impressions are important. Do you have late fall leaves littering the ground? Rake them up. Also, make sure the walks and stairs are free of ice.

A few exterior holiday lights or decorations show pride in ownership and seasonal cheer, but they don't add anything during the day when potential homebuyers will be looking at your home, so don't overdo them. Another thing to consider: Would-be buyers may view it favorably if nearby homes are brimming with lights  it shows unity and neighborliness  so you'll want to find a tasteful balance.

As you set out to win over holiday homebuyers, here are a few other tips to keep in mind:

• Trim outdoor trees so unexpected winds don't knock down branches that could damage your home or hurt someone.

• Place a holiday welcome mat outside the front door.

• Keep the door area clear of bicycles, toys or parcels left by the mail carrier.

• Hang a festive wreath on your door.

• Play holiday music in the background.

• Keep the house cozy. Entering a cold house could chill potential buyers' enthusiasm.

• Light a fire in the fireplace just before the agent shows your house. (But never leave a fire unattended.)

• Choose a tree and decorate it to complement the room where it's displayed. You don't want the tree to appear to take over the entire living or family room. Remove furniture, if necessary.

• Keep decorations on the conservative side. You want your house to be noticed, not your decorations.

• Be certain your windows are sparkling clean.

• Let there be light. Open blinds and curtains and turn on interior lights to reduce the pervasive dreariness of winter months.

• Bake holiday cookies and treats to fill the home with enticing aromas before the prospective buyers arrive.

Ultimately, you want to convey the love, comfort and joy your family has shared in the house so that buyers will be eager to move in and create their own holiday memories.  As always, contact a local Meadow Vista Merchant Realtor today to get you started on preparing your home for sale during our Winter market.

The 5 Biggest Turn-Offs for Homebuyers

Written by Blanche Evans - Provided by Fred Eichenhofer, Sierra Pacific Real Estate

“Your agent can't get you the price you want unless your home is in pristine move-in condition.  That means no sticking drawers in the kitchen.  No leaning fences.  No rust-stained plumbing fixtures.  We could go on, but maybe we need to make it clear.  If you have even one of the following “turn-offs,” your home won't sell”.  (Fred's comment; every home will sell, but it may not be at the highest price possible because of the condition of the home, and the location.) Buyer's can get instantly turned off.  Here are their five biggest turn-offs:

1 - Over pricing your home

Overpricing your home is like trying to crash the country club without a membership.  You'll be found out and escorted out.
If you ignored your agent's advice and listed at a higher price than recommended, you're going to get some negative feedback, of course, is silence.  That could include no showings and no offers.
The problem with overpricing your home is that the buyers who are qualified to buy your home won't see it because they're shopping in a lower price range.  The buyers who do it will quickly realize that there are other homes in the same price range that offer more value.

2 - Smells

Smells can come from a number of sources-pets, lack of cleanliness, stale air, water damage, and much more.  You may not even notice it, but your real estate agent may have hinted to you that something needs to be done.
There's not a buyer in the world that will buy a home that smells unless they're investors looking for a bargain.  Even so, they'll get a forensic inspection to find out the source of the smells.  If they find anything like undisclosed water damage, or pet urine under the “new” carpet, then they will either severely discount their offer or walk away.

3 - Clutter

If your tables are full to the edges with photos, figurines, mail, and drinking glasses, buyers' attention is going to more focused on running the gauntlet of your living room without breaking any Hummel's than in considering your home for purchase.
Too much furniture confuses the eye-it makes it real difficult for buyers to see the proportions of rooms.  If they can't see what they need to know, they move on to the next home.

4 - Deferred Maintenance

Deferred maintenance is a polite euphemism for letting your home fall apart.  Just like people age due to the effects of the sun wind and gravity, so do structures like your home.  Things wear out, break and weather, and it's your job as a homeowner to keep your home repaired.
Your buyers really want a home that's been well-maintained. They don't want to wonder what needs to be fixed next or how much it will cost.

5 - Dated Décor

The reason people are looking at your home instead of buying brand new is because of cost and location.  They want your neighborhood, but that doesn't mean they want a dated-looking home.  Just like they want a home in good repair, they want a home that looks updated, even if it's from a different era.
Harvest gold and avocado green from the seventies; soft blues and mauves from the eighties, jewel tones from the nineties, and onyx and pewter from the oughts are all colorways that can date your home.  Textures like popcorn ceilings, shag or berber carpet, and flocked wallpaper can also date your home. When you're behind the times, buyers don't want to join you.  They want to be perceived as a savvy and cool.

In conclusion, the market is a brutal mirror.  If you're guilty of not putting money into your home because you believe it's an investment that others should pay you to profit, you're in for a rude awakening.  You'll be stuck with an asset that isn't selling. (Fred's comment; all homes will sell, the sales price will be dependent on the condition of the home, and location.  The less the buyer has to do to update the home and a good location, a seller should receive a higher sale price everything else being equal.)

How to Buy a Home in a Competitive Real Estate Market

By Christine Schlittenhart, Sierra Pacific Real Estate

Demand for real estate is growing in many markets across the country, but especially in our special area of the Foothills. That’s great, but it creates competition in the form of all-cash offers, offers for thousands of dollars over list price, and a growing gap between affordability and prices in a given area.

If you are a buyer who needs to have their purchase financed – pay attention to these 5 tips that may help you secure the home of your dreams. Don’t forget that price is certainly a factor – if not the most important factor to a Seller – but these tips can give you an advantage when you’re trying to secure an initial commitment from the seller.

1. Get the Right Lender - Your loan officer’s reputation in the community is critical, especially among the agents who are controlling the deals. If your loan officer has a trusted name, recognition and a favorable presence in the local market, this can be communicated via the listing agent, who has a direct influence on what offer the seller takes.

2. Get the Right Buyer’s Agent - You’ll need a real estate agent to represent you if you’re going to be making offers on properties listed on the open market. Ideally, the person you’re going to want representing you is someone who has a reputation for delivering in the local market. This is especially important as many real estate agents network with each other and work with each other on a regular basis. If your buyer’s agent has a favorable reputation not only in the local community, but with the listing agent in a previous transaction, for example, this is a very good sign that person can influence the seller because they know the offer is strong and they trust the other side.

3. Get an Introduction to the Listing Agent - Upon your buyer’s agent (who’s representing you) offer submission, your loan officer calls the listing agent to introduce themselves and explain how well-qualified you are to purchase that property. Many listing agents inevitably call the lenders of the buyers whose offers are strong on paper in an attempt to feel them out about the buyer’s qualifications. Preemptively, taking this step is a favorable approach that makes it easier for the listing agent to influence the seller to accept your offer.

4. Understand How You Appear on Paper - It doesn’t matter if you have $500,000 in income; if you’re buying a home and putting less than 20% down, even if another offer is higher than yours, the offer with 20% down still looks stronger on paper to agents. Another approach to take to increase your odds of getting the seller to accept: Don’t request a credit for closing costs in your initial purchase offer. When you ask for a credit for closing costs based on whatever purchase price amount you are looking for, that gives the seller less net proceeds at closing — that is, unless you offer a higher purchase price and ask for a credit that way. But be aware, doing the latter means the house must appraise for a higher value to support your higher offered amount with your requested credits for cash to close.

5. Offer a Short Closing - Upon making an offer to buy a property, making an offer to close in less than 30 days is an aggressive approach, communicating to the seller that your financing is lined up and it’s time to play ball. Know that lenders are up against federal mandatory disclosure time frames and, as such, have certain thresholds they have to meet in order to be federally compliant with recent regulatory changes.

By making sure you’re covering all these bases when you’re making offers and getting acclimated to the local housing market, your odds of getting your offer accepted could dramatically increase. Don’t forget to seek out one of your local Meadow Vista Merchant Agents, who are willing and waiting to help you!

Home Improvements that Pay Off!

By Christine Schlittenhart, Sierra Pacific Real Estate

Our Real Estate market is still experiencing low inventories and we still have a large number of buyers all competing for the same properties.  Are you contemplating putting your home on the market but you know it needs some work?  What home improvement projects actually “make” you money?  Below are the top 4 researched home improvement projects that you should consider:

1) REMODELING THE KITCHEN  You can expect to recoup 60% - 120% of your investment on a kitchen remodel as long as you don't go overboard.  You should never make your kitchen fancier than the rest of your house, or your neighborhood.

2) BATHROOM ADDITION  If your home only has one bathroom, you can recoup a large chunk of your investment by adding another one.  It is estimated that you can recoup 80% - 130% of whatever you spend adding another bathroom.

3) ADDING SQUARE FOOTAGE  Adding more square footage to your home with a new room can be an incredibly expensive project.  However, you can typically recoup 50% - 83% of your initial investment.  Just make sure you keep your costs under control.

4) DECK ADDITION - If you make your deck and your backyard more appealing, your house will be more appealing to prospective buyers when you decide to sell.  Homeowners can recoup 65% - 90% of their investment by adding a deck.

We need your listings, so contact one of your Meadow Vista Merchant Realtors today to find out what your home is worth and get your home listed and SOLD!

Should You Take Your Home Off the Market for the Holidays?

Submitted by Fred Eichenhofer, Sierra Pacific Real Estate

Many people who are selling their homes often think that the holiday season is slow season and if they didn't sell their home before labor day they might as well take their home off the market.
Oh contraire. The holiday season is the perfect time to showcase your home and profit from this misconception. Here are 5 advantages! Listing your home for the holidays could gain you the buyer you've been looking for.

• Take Advantage of Reduced Inventory
“Slow” season in the real estate world means reduced inventory available in the market place. Just because it's slow doesn't mean people aren't still looking. So by keeping your home on the market during the holiday season you have a better chance of catching the attention of a would-be homeowner.
• Decorate to Impress
With cheery holiday decorations you create the perfect environment to help others envision them selves in your home. It really is the difference between a potential homebuyer seeing a house versus a home.
• Smells of Home
Home is where the nose is, with holiday baking you will help entice potential buyers into believing this too could be their home with those lovely cookies baking in the oven.
• Tax Advantages
Many people will look to close on a home before the tax year ends so that they can take advantage of some of the home ownership benefits out there for their tax returns.
• Corporate Relocation
Many corporations relocate or transfer their employees at the beginning of the year. This creates a sense of urgency for those transferees to find a house to call home during the holiday season.
Just by keeping these 5 factors in mind, you can create your own holiday luck. Listing your home during the holidays is the first step to getting it seen and on the potential holiday wish list for that lucky family.

Are You Prepared For Our Multiple Offer Market?

By Christine Schlittenhart, Sierra Pacific Real Estate

If you're an active Buyer right now, then I'm sure you know what a wild market we are experiencing.   Gone are the days of the “Low Ball Offers”. Today's Buyer needs to be quick, prepared, educated and pre-qualified to keep up with our current fast paced multi-offer market.  Not only are most of our listings getting multiple offers within the first week of being listed, they are selling at or above listing price.
• Quick Buyer:  Today's Buyer needs to be looking at the properties sent to them by their agent on a daily basis, if not multiple times a day.  When the right property comes on the market, you need to be at the front door with your Realtor ready to see it and ready to write an offer.
• Prepared Buyer:  Today's Prepared Buyer has already met with a lender and knows the purchase price they are qualified for and has a current pre-qualification letter in hand along with proof of any cash being used for the home purchase.
• Educated Buyer:  Today's educated Buyer has asked their Realtor what homes are selling for in their desired area and has asked their Realtor to run sold comparables on the home they are interested in.  Today's educated Buyer will write the highest and best offer from the start, limiting the amount of work and money to be handled/spent by the Seller. Also, today's educated Buyer does not rely on inaccurate sites such as Zillow, Trulia and Redfin, and relies on properties being sent to them by their Realtor through Metrolist.
In the last six months (as of 7/16/13), 83 properties sold within the boundaries of Christian Valley, Meadow Vista, Applegate and Weimar.  Out of those 83 properties, the average sold price versus listing price averaged out at 99%!!  The average days on market was 64 days, with 22 of the properties selling within 10 days or less.  Even though we are seeing a slight increase in available properties, we still have an abundance of Buyer's all competing for these properties.  
Call one of your local Meadow Vista Merchant Realtors today and become the Quick, Educated & Prepared Buyer that will get the home of their dreams!  (Data taken from Prospector.Metrolist on 7/16/13.)

New Homeowner Protections for 2013

By Christine Schlittenhart, Sierra Pacific Real Estate

The New Year brings more protection to California homeowners, mainly those who are trying to save their properties from being repossessed.

 The Homeowner Bill of Rights, signed by the governor this year, is a set of new laws that puts the onus on banks to help consumers through the foreclosure process. The new laws went into effect Jan.

The legislation, lauded by housing advocates and heavily criticized by the lending industry, forces banks to:
• Stop dual tracking, the process of starting the foreclosure process while a loan modification has been submitted or being reviewed by the bank. Borrowers in the past have lost their homes to foreclosure as a result of this situation. Under the new law, banks must give loan-modification applicants a response before starting the foreclosure process. Banks also will have to inform consumers who don't apply for a loan modification that they have the right to do so.
• Stop robo-signing, the process of approving foreclosure documents without proper review.
• Assign one point of contact to borrowers who are trying for a loan modification.
• One of the laws also allows borrowers to sue loan servicers for violating any foreclosure laws.
Some of the provisions in the package echo those in the national mortgage settlement, a deal struck earlier this year between five major lenders and 49 states, including California. The Homeowner Bill of Rights though firms up those provisions into law, which is key because the mortgage settlement terms will end in 2015.  Are you a homeowner who is underwater and needs to do a short sale? Do you want to refinance but don't know what your home is worth? Call one of your LOCAL real estate agents today!

Home Selling Insight

By Fred Eichenhofer, Sierra Pacific Real Estate

Why do some homes sell in days when others take months or don’t sell at all?
 When sellers or their real estate agent overlook any of the important ingredients of a successful sale, a home can linger on the market. Here are 3 reasons why a home doesn't sell quickly:

1. Asking Price is Too High.  When a home first comes on the market, the list price should be at or near the market value so buyers see it as a good value and put in an offer. The first 30 days are crucial! Pricing a house is very important even with low inventory. When buyers do not see the value in the home at the current listing price, or it’s priced far above a reasonable price range for the current market, buyers usually will not look at the house or write an offer.

2. Poor Marketing. Most real estate agents will do nothing more than put the house in the MLS (Listing system). You want an agent that will be aggressive with their marketing especially within the first 30 days. It is amazing how many agents will place a house on our listing system with no photos for days, thereby missing potential buyers that have already viewed the listing (without a photo), drastically losing potential buyers interest.

3. Home is not staged properly. A buyer wants to buy a home they can imagine living in with their family. Get the facts on how to stage your home properly. When buyers walk in the home, they should be able to envision themselves in the house as their new home.
 It is important to hire a Realtor you feel comfortable with, and a Realtor experienced to deal with all of the intricacies of a real estate transaction.
 Many times we see sellers select an agent that said their house would sell at a far higher price than the market would bear, only to sell months later at a price lower than other agents suggested. Be careful not to base your decision solely on an agent that gives you a price range higher than others, or one who will instantly cut their commission…keep in mind the old saying “You get what you pay for”.  There are a lot of expenses a listing agent incurs in order to market your home properly, other agents may not do because of the expense involved.  Lack of marketing to the public is a disadvantage for a seller, as well as initial pricing of a home. Marketing and pricing are very important aspects for a successful sale of a home.

It's Safe to Sell Your Home Again

By Christine Schlittenhart, Sierra Pacific Real Estate

While analysts debate when the housing market will hit bottom, the turnaround has already begun and is ON FIRE in our local Placer County.
• For years, buyers were scared of overpaying for a home, but less so now.  Many buyers have grown accustomed to thinking they’ll score deals, so they tend to act slowly, and typically start bidding around 10 percent to 15 percent below list price.  However, a growing number of buyers are beginning to realize that if they wait too long in this market, they may miss out.  My buyers and I are witnessing properties going into pending status the same day they arrive on the market, and for OVER asking price!
• Sellers can hold firm on price if they’re patient.  The days of having to deal with low-ball offers are coming to an end.  The higher the price, the more patient the seller must be.  Cheaper homes are affordable to more buyers and appealing to investors, so recoveries usually start there.  • Sellers should keep in mind that while they don’t have to placate low-ball offers anymore, they also can’t shoot for the moon either.  Working with a local Meadow Vista Merchant Realtor and setting a realistic price from the get-go is key.
• Sellers should know what they’re competing against.  Homeowners should let their home’s value dictate the price.  While this may seem self-evident, some owners may have lost sight of it during the bust.  On the one hand, some sellers clung to the false hope of a return to boom prices, so they set prices unrealistically high.  Others may have gone too far the other way, and set their price too low.  Rely on the expertise of your local Realtor to guide you in a fair, comparable listing price.
• It’s also important that sellers understand they’re no longer competing with gutted foreclosures.  Buyers are tired of looking at worn-down, neglected, distressed properties and often don’t have much extra money to do a lot of fixing up.  Us local Realtors are seeing that our clients are willing to pay a little more for a home that’s ready to move into.  Also, our inventory is at historic lows.  We haven’t witnessed such a low inventory since 1986.
 NOW is the time to be a SELLER and a BUYER.  Don’t miss out on the incredible opportunities waiting for you in this fast moving real estate market.  Contact one of your local Meadow Vista Merchants Realtors today to get started on this exciting chapter of your life!

Investors - It's Your Game!

By Christine Schlittenhart, Sierra Pacific Real Estate

As home prices fall and rents rise, some investors are plunking their money into real estate, chasing the cash flow that comes along with becoming a landlord. For the first time in a long time, you can buy that home and can get a cash-on-cash return immediately.
 There are a lot of places in the country where an investor can buy a single-family home, rent it, and get a positive cash flow. In fact, investors bought 20% of all the homes sold in April, according to the National Association of Realtors. Some of them are buying with cash. But even if they do finance part of the purchase, they’re able to turn around a profit much quicker than they would have been able to in the past. The return on rentals can be much better than returns on other investments these days.
 In the past, investors would subsidize their monthly payments on a property with the rent they were able to collect, and the big payoff was the price appreciation he or she would accumulate. Now, investors can come in with a 25% or 30% down payment, finance the rest, and the rent they collect often can cover the mortgage payment, taxes and insurance — with additional cash left over. Investors are looking at these properties on a monthly income generating basis. They can start to realize instant profit margins, even as the market goes down more. There’s a turning point where the cost of owning a home is less than the cost of renting. I believe we are there, and when that disparity grows, we will see a push from investors to pick up investment properties.
 Before investing in a rental, make sure you’ve considered the harsh realities of becoming a landlord. I’m a landlord, and I’ve been blessed with wonderful tenants, past and present. But my experience is not always the same for everyone. Remember, often the best investment is a home you wouldn’t necessarily buy to live in yourself. These days, foreclosures can be snapped up at bargain prices, and as long as you have the means to make required repairs, they can represent good opportunities. Let your local Meadow Vista Merchant Realtors show you the great deals out there, so you can start making some positive cash flow!

7 Cheap Ways to Boost Your Home's Sales Price by Spring

By Glenda Harrison, Sierra Pacific Real Estate

Spring is in the air!!  Are you contemplating selling your home?  Is your home listed but you aren't getting offers?  Get your home ready for the Spring buying season with these 7 easy tips:
1.  Retouch the Front Shell - Touching up the paint on the front-entry portion of the house can be an inexpensive but effective way to make the entire property more inviting.  You would be amazed by the amount of people that drive by a house and say, “Ah, that's not for me.”  Buyers tend to judge the interior of a home by the exterior.
2.  Trim the Greenery - Ensuring that your property's landscaping is well maintained helps make your home more alluring to prospective buyers as well. Property owners can hire professional landscapers or break out the lawn mower and get busy themselves.  Trim the trees, trim the hedges and add a little color to the flower beds.
3.  Paint the Interior - Putting a fresh coat of paint on the home's interior is a cost-effective way for sellers to make their home more appealing to buyers, but when choosing the color, homeowners should be conservative.  The caution is that your favorite color may not be the favorite color of the buyer.

4.  Don't Forget the Floors - Improving the condition of a home's flooring is also a smart move for sellersand you don't need to refinish wood floors or install new carpets to make them more attractive.  Re-buff the hardwood floors and/or have the carpets and tile cleaned.

5.  New Light Fixtures - Replacing old or broken light fixtures with new ones can also be a low-cost way to add value.  Installing a nice new light fixture in the foyer near the home's entrance can be a particular benefit.
6.  Freshen Up the Bathrooms
Getting rid of mildew stains on the bathroom caulking can boost a home's appeal as well.  Such stains scream, 'These people haven't taken care of this house.  It's going to be a money pit.”  Use a razor blade to remove the old caulk, and replace it with new, mildew-resistant caulk.
7.  New Stove in the Kitchen - While some homeowners might think the only way to jazz up a dated kitchen is a full-on remodeling job, a much less costly alternative is buying a new stove.  If there is an updated stove in the kitchen, it is amazing how that draws people in!
Be sure to contact a local Merchant Realtor with all your Realtor needs and questions.