Chico CA Real Estate News
What’s All This Talk About Short Sales on Chico Homes?
November 10th, 2007 categories: Anatomy of a Chico CA Real Estate Transaction, Chico CA Real Estate News, Chico Financing
By guest author Mike Wiegert, Broker, Chico Homes
For Chico, CA homeowners that can’t afford to pay their mortgage, there is an alternative to bankruptcy or foreclosure proceedings – it is called the short sale.
The short sale really begins when you finally realize that your house just isn’t worth what it was just a few short years ago.
The next realization is that if you sell your house for what it’s really worth, you’re not going to actually get any proceeds back from the sale. That’s a big pill to swallow, but after you do, you might have the final realization that you’re really just starting from scratch like you did a few years ago. Back then, you’re credit was pretty good, you had your health, all your kids were fairly normal and you had a job. So rather than losing your home in foreclosure AND ending up with a terrible credit report, you think “I wish we could just be back to where we were back then.”
It’s at this point that a “short sale” might be the answer.
A short sale occurs when the net proceeds from the sale of a home are not enough to cover the sellers’ mortgage obligations and closing costs such as property taxes, transfer taxes and commission.
In other words, what a buyer might be willing to pay for your home isn’t going to cover what you owe on it and what it’s going to cost you to sell it. Unlike a foreclosure, a short sale can keep the homeowners credit intact. The first step is to do some research a find a Chico, CA Realtor that knows the Chico real estate market and has had experience and success in the short sale process. Your Realtor will need special skills and a persistent attitude in dealing and negotiating with your lender.
Banks are not in the business of owning and marketing homes and many would much rather discount the current amount of their loans than have to go through the process of marketing and holding a property in a slower market. This lender attitude will certainly grow as the number of foreclosures and repossessions increase. Conversely, the popularity of buying in the short sale market appears to be spreading rapidly.
Be advised, before you contract with any Realtor to market your home utilizing a short sale concept, you should consult a real estate attorney for the legal implications of the short sale and an accountant about the tax liabilities involved in the short sale.
You must understand everything upfront before the short sale process begins- look to your Chico CA Realtor for assistance.
1. You must prove to your lender that you are unable to afford to pay your mortgage.
If your lender is aware that you possess certain assets such as stocks or bonds, or you have a high paying job, your lender may require you to sign a note promising to repay at a future time any discount of what you owe that they make in the short sale. If you do not possess these types of assets or your job clearly indicates that you would not be able to repay such a debt, it is possible it may be forgiven.
2. Next the lender will appraise the current market value of your home.
The lender, with the help of your Chico, CA Realtor will calculate the amount of the outstanding debt and the customary costs of selling. If the proposed short sale will bring them more money than they would get during auction, the lender will mostly likely agree to it. End result, you didn’t pull the equity out of your home that you might have thought you had, but your credit is still intact, you’re out of a mortgage payment you can’t afford and the dream of once again owning a little corner of this world still burns brightly!
If you find yourself in a situation where your payments are are becoming too much to handle, please contact us at Chico Homes! We may be able to assist you in selling your home and avoiding a credit-destroying foreclosure.
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Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
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Chico, CA Real Estate Market Report October 2007
November 3rd, 2007 categories: Chico CA Real Estate Market Stats, Chico CA Real Estate News
Statistics for: Single Family Detached, Condo, Duplex, Mobile On Land
Date Range=10/2007-10/2007
Current Active Avg List Price Avg DOM
464 $404,743 105
Listed Sold Pct Sold Avg List Price Sold Avg Price Sold
123 53 43% $368,148 $349,222
Sale Price/List Price Ratio Avg DOM Sold Pct Expired
94.86% 79 34%
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Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
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Short escrow? Get your ducks in a row BEFORE you make an offer.
November 2nd, 2007 categories: Anatomy of a Chico CA Real Estate Transaction, Chico Buyers, Chico CA Real Estate News, Chico Sellers, My Opinion on Things
There is no disputing the fact that Chico, CA is currently in what is commonly known as a “Buyer’s Market.”
That is FABULOUS news for all the buyers out there who have patiently been waiting for this day. The inventory is high, the prices have dropped, and the interest rates are still phenomenal!
Now is the time to get a great deal! 
A “Buyer’s Market” is a wonderful thing. A Chico, CA home that might have cost $400,000 in 2005 may only set you back $350,000 today. On average, prices seem to have corrected between 10 and 15 percent for residential properties.
I have noticed a growing trend with buyers. In an effort to get the absolute lowest price on a property, they attempt to entice the sellers with a very short escrow period. For some sellers, a quick sale in this market is a dream come true! They need out from under that house payment, and will gladly accept less than asking price just to be DONE.
However, when representing a seller, I have had to caution against signing the first contract we see, simply because the buyer promises to make it the pain go away with a 10 day escrow. The offer to close in 10 days is an empty one if the buyer has not done his homework.
The following items must be taken into consideration to close an escrow quickly:
- Is the buyer preapproved?
- Is the lender local and knowledgeable about our issues and resources?
- Is the lender willing to commit to closing on time?
- What kind of loan product is the buyer applying for? A VA loan, for instance, is highly unlikely to close in less than 30 days.
- What inspections does the buyer request? Well potability tests may require 14 days or more to obtain results.
- Can we get the appraisal completed immediately?
- Will repairs be required by the lender to fund the loan? If so, is there a contractor available to bid, complete, and final the work within a days notice?
An escrow that closes quickly can be a wonderful solution for both the buyer and the seller, but it doesn’t happen without forethought, preparation, and a willingness for all parties to be focused on immediate results.
If you are a buyer, hoping to get the best deal of the year by offering to close quickly, get your ducks in a row BEFORE you make an offer. No seller in their right mind will accept your offer if you aren’t prepared to close the deal.
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Shopping for Chico foreclosure property? Give me a call- I’m currently working with several REO departments on bank-owned Chico property. Sandi Bauman 530-864-5407
Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
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My perspective: The Chico, CA Real Estate Market is not THAT bad!
October 7th, 2007 categories: Chico CA Real Estate Market Stats, Chico CA Real Estate News, Chico Sellers
Call me a hopeless optimist if you like, but I don’t think the Chico CA real estate market is half as bad as everyone makes it out to be!
The power that the media has on people’s perception of reality is both amazing and frightening.Considering the facts stated below, can anyone really argue that the Chico CA real estate market is all that horrible?
These numbers represent all class of property including single family homes, residential income, commercial, manufactured homes, vacant land, ranches and farms, year to date as reported by the Sierra North Valley MLS.
Year Listed Sold % Listed Sold Avg List Price Avg Sold Price List/Sold DOM
2007 6498 2067 31.81% $303,327 $289,171 95.33% 92
2006 7401 2430 32.83% $302,084 $290,848 96.28% 73
I’m thinking the numbers look pretty gosh darn good! My biggest caution to sellers would be to expect an extra 20 days on the market for a reasonably priced house to sell.
To sum it up, approximately 40 less properties per month have sold in 2007 than in 2006. Nearly 400 Chico Realtors have closed at least one transaction this year!
Compared to the statistics that are being posted for other regions in the United States, I really think that Chico CA has faired very well. Take Ponciana, FL for instance. Only 1.77% of their total inventory is actually selling! It appears that Chico CA property is a safer investment than you might find somewhere else.
Am I really the only one seeing this glass half full?
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Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
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Chico, California Foreclosures and West Nile Virus
September 16th, 2007 categories: Chico CA Foreclosure Listings, Chico CA Real Estate News
Rumor has it that the United States’ foreclosure epidemic could be contributing to the spread of the West Nile Virus.
Reports are showing that the number of people in California testing positive for the West Nile virus has increased three-fold compared to last year. Many experts are blaming the increasing problem on the pools located in the yards of foreclosure properties.
The electrical service is typically suspended on properties in the months between the time the former owners have stopped paying the bills and the time a Realtor or management company begins to look after the maintenance of the home. The pumps on the pools cease to operate, creating a giant, stagnant pool of water in which mosquitoes often breed. Mosquitoes are known to transmit the virus to humans after being infected from a bird.West Nile often takes a harder toll on the elderly, people with suppressed immune systems, and children. The West Nile virus is to blame for as many as 5 deaths have in California alone this year. A state of emergency was declared by California Governor Schwarzenegger for Colusa, Kern and San Joaquin counties.
Two of my three Chico, CA foreclosure properties that I’ve had listed in the past month had pools. Both of these pools were NASTY! I specifically cautioned my daughter on a recent trip to one of the properties. She’s only 9, but took heed and stayed in the front yard. This particular pool had 2 dead birds in it, as well as an unbelievable little ecosystem full of assorted little critters… some not so little!
People can reduce their risk of West Nile infection by following some common sense procedures.
1. Avoid time outdoors, especially when mosquitoes are most active. This typically is at dusk and dawn. 2. If you must be outside, wear appropriate clothing: long pants, long sleeves, shoes and socks. 3. Make sure that you apply mosquito repellent. It should contain DEET, eucalyptus oil, or Picaridin. 4. Make sure your screens and doors are adequately sealed. Replace any screens that have holes or tears. 5. Do not allow water to sit anywhere on your property. Empty birdbaths, buckets of water, keep the pool filter running, monitor your sprinkler operation, and change the dog’s bowl frequently!
Remember, your best protection is prevention. Use good common sense to avoid bites and illness.
For more information about West Nile Virus:
- California Web site: http://www.westnile.ca.gov/
- California Information Line: Toll-free 1-877-WNV-BIRD (968-2473).
- Butte County and Chico, CA www.buttecounty.net/publichealth
Informational Brochure (PDF):
Also, report any dead bird that may have died less than 48 hours prior to http://www.westnile.ca.gov/.
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Looking to buy or sell Chico CA Real Estate? Need a Top Producing Chico CA Realtor? Call Sandi Bauman 530-864-5407 or email [email protected]. Specializing in REO, residential, relocation, investment & ag property.
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