Sacramento CA vs Folsom CA Real Estate Stats

The median sales price in Sacramento CA for June 09 to August 09 was $142,000 compared to Folsom CA at $314,662. This represents an increase of 9.2%, or $12,000 for Sacramento and an increase of 30%, or $104,374 for Folsom compared to the prior quarter and a decrease of 13.9% for Sacramento and an increase of 19.1% for Folsom compared to the prior year. Over the last 5 years sales prices have depreciated 50.3% in Sacramento and appreciated 8.1% in Folsom.

(Information provided by Trulia.com)

It's a perfect time to buy wherever you are looking!! Contact Jeff Kaut & Associates, jeffkautreteam@yahoo.com or 916-505-7355, to help you find the perfect home for you.

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Homeownership Myths

Myths About Homeownership

How lenders assess mortgage applications has changed a lot since 2007. What was acceptable a few years ago may not be so today. The following are some common homeownership myths:

Myth: It’s a bad time to buy a house. Fact: Mortgage rates for fixed-rate mortgages are at historical lows, creating stable payments and long-term savings for today's homebuyers and house prices have fallen at a record pace. Additionally, there is some financial relief for first-time homebuyers through the recently enacted Housing and Economic Recovery Act of 2008 and foreclosures have increased to record levels, leaving lots of housing supply on the market with unequalled demand. The combination of these factors generally equals greater affordability, and makes now a good time for many to consider homeownership.
Buying a house is just too risky; I'll end up in foreclosure.Fact:The recent news on foreclosures is understandably frightening. Certainly if you lose your job, go through a divorce, or suffer an illness, you could have real trouble paying your mortgage, or rent for that matter. In recent years, we've even seen an increase in excessive obligation–just too many bills–as a reason for delinquency. While you can't always solve for the unexpected twists and turns of life, good budgeting and responsible credit practices can decrease the likelihood of a foreclosure. Also if you have trouble paying the mortgage, contact your lender immediately!

Myth: You can't buy a home in the U.S. if you're not a citizen. Fact:If you're a permanent or non-permanent resident alien, you can purchase a home in the U.S. In order to qualify for a loan you typically need to be a permanent resident alien with a valid USCIS card or, a "Green Card" and Social Security number. If you are a temporary resident alien with a valid work permit and Social Security number and have been in the United States continuously for the last 2 years, with steady employment and good credit history you may also qualify for a loan.

Myth: If you don't have a bank account or credit cards, you can't qualify for a mortgage. Fact: Having a bank account is always a good idea and helps you establish credit. However, lenders can approve you for a mortgage even if you don't have a bank account or credit cards. You'll likely need to keep records showing a history of payments you've made for items such as rent, utilities, and car payments.

Myth: Lenders share your personal financial information with other companies. Fact: By law, banks and other financial institutions are restricted in their uses and disclosures of information about you. In some situations, you may choose to restrict the disclosure of your information if you don't want it to be shared. If you are unsure how your information will be used, don't be afraid to ask – it's your right to know.

Myth: If you're late on your monthly mortgage payments, you'll lose your house. Fact: If you have a financial hardship, like the death of your spouse or a medical emergency, and fall behind, it's possible to keep your home and get back on track if you contact your lender early (the organization to whom you make your monthly mortgage payments, sometimes also referred to as your mortgage servicer).
If you experience a change in your financial situation and think that you will fall behind or have fallen behind on your mortgage payment, call your lender immediately.
Despite popular belief, lenders do not want to foreclose on homes. They want to keep you as a customer for life. In fact, lenders typically lose money in the foreclosure process, so they are always looking for ways to help you make ends meet.

Myth: You can't get a mortgage if you've changed jobs several times in the last few years. Fact: Not true. You can change jobs several times and still get a loan to buy a home. Lenders understand that people change jobs. The important thing is to show that you've had a stable income and good credit. (http://www.freddiemac.com/)

The Kaut & Associates Team have the knowledge, experience and perserverance to find the perfect home for you.
Contact us at jeffkautreteam@yahoo.com
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What Goes Down, Must Come Up

During these tumultuous times a lot of people are really struggling to see the upside of this dramatic fall in the real estate market. But have no fear there is hope! What goes down, must come up and now is the time to take charge of that. Foreclosures are a serious matter that no one wishes to go through. However they are prevalent in our neighborhoods, all over the country. An estimated cost of a foreclosure is around $50,000 to $80,000. This is a frightening number but there is help and opportunity for homeowners. Numerous programs have started to infiltrate our market and can assist the everyday homeowner in finding ways to not go into foreclosure. Although many people have found themselves in the foreclosure predicament, homeowners need to know that there will be a time in the near future that the market will stabilize and they can resume living the life they had. Another upside is, due to the influx of foreclosed properties there now are many homes available for purchase with prices that are extremely low. Many of these foreclosed homes need to be off the market, hence the ultimate drop in housing prices. This is a prime time to take advantage of these situations, which can in turn help to bring the real estate market back up to par.

Our knowledge in real estate and foreclosures insures that you will get the best assistance with your personal situation. We take pride in our honesty and integrity, and hope to help you today. Remember our motto:

“Real Estate Experience You Can Count On!”

New Trends in Today's Real Estate

Recently we have been seeing new trends in today’s real estate market. First time home buyers are dominating the market these days, due to the collapsed economy we have endured this last year. The ominous tell tale signs that the market will be picking back up is evident by the amount of new programs available within the mortgage and real estate world. The average selling price in El Dorado County is approximately $450,000. This is a 25%-30% drop from last year’s market watch. Another explanation for the new trends within today’s market watch, are the reasons pertaining to why people need to sell their homes. The unemployment rate is largely to blame, so people will either try to do a short sale on their home in order to downsize and save their financial status, or just let their home go into foreclosure. The short sales, which are now becoming a new trend in today’s real estate market, give the seller kind of a last ditch effort in an attempt to reclaim any money for their home to save their financial standing, and to stop it before it becomes bank owned. Then again, those people will be usually buying another property that is downsized and cheaper; again adding to the influx of this buyers market. A short sale is normally the first plan of action the owners will take; but because they are not a traditional real estate transaction it takes a lot longer to execute the procedure.
Another hot trend right now is the ‘greening’ of U.S. homes. This incentive has been booming because it offers numerous tax breaks to individuals who decide to buy a ‘green’ home, or to those who decide to make green improvements at their existing homes. According to the National Association of Home Builders, expanded tax credits for energy-efficient home improvements in the new economic stimulus package puts more money in consumers' pockets by providing financial incentive for home owners to go green on their renovation projects in 2009 and 2010. While more efficient homes save on water and energy bills, these tax credits will make such home upgrades even more affordable. (Mosca, 2009) The list for energy efficient appliances and improvements has almost tripled since last year. More and more people are being rewarded for their ‘greener’ efforts in helping not only the economy but also the environment.
So let’s keep these trends going in order to stimulate and maintain our real estate market.

Tax Credit For First Time Home Buyers!

DON’T MISS THE BOAT, OR HOUSE FOR THAT MATTER!

The First Time Home Buyers credit is here but will end soon! Buying your first home is not only an exciting and adventurous procedure, but it is also rewarding. During the 2009 calendar year, First Time Home Buyers have the opportunity to get a tax credit for their principle home purchase of up to $8,000. This is definitely the time to purchase a first home in order to receive this intriguing offer, given by the IRS. However, there are some stipulations in accordance to the credit. The end date of this credit is creeping up on us very quickly, as it ends December 1, 2009, so for those of you who are seriously interested in purchasing their new home, we highly suggest you take advantage of this remarkable credit. The IRS defines a First Time Home Buyer as someone who has not owned a principle residence during the three year period prior to the purchase of the property. Joint purchasers who are unmarried also have the ability to be eligible for the credit. For example, if a parental guardian is helping purchase the property for their child, they are able to do so and still claim the credit on their 2009 taxes, under the child’s name only. Buying from an ancestor, descendant, or spouse will automatically disable your ability to earn the First Time Home Buyers Credit. Since there can be numerous stipulations and exceptions, one is highly encouraged to consult the IRS or any legal professional to ensure their eligibility of this offer. http://www.irs.gov/newsroom/article/0,,id=186831,00.html Unlike the 2008 tax credit, an individual does not have to repay this credit. Last years’ tax credit was a little misinforming because the individual needed to repay that credit in some form or another. It was kind of viewed as an interest free loan. The tax credit for 2009 is equal to ten percent of the homes actual purchase price and not the asking price, up to $8,000. Single taxpayers must have a verified income of $75,000 per year, and married couples must earn a verified $150,000 per year in order to qualify for the 2009 tax credit. Mobile homes, attached homes, detached homes, condos and even houseboats can be considered a first time home purchase. So call one of us today, so we can help you get on board with this offer that will not last for long.