Mirjam de Rijk, REALTOR

May 10

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Foreclosures …

By Mirjam | Buyers, Financial news, Foreclosure, RE by the numbers, RE Investing, Sonoma County info, Wine Tasting | No Comments

With so much said in the news about foreclosures and short sales just some facts.

At this moment the bank owned properties are selling well, the lower price range of our market is selling, some bank owned properties were priced so low that they had more than 20 offers on them and I know of one property ( NW Santa Rosa) that went into escrow $100,000 over asking. It will be interesting to see the numbers when these transactions close.

Financial Title did sent me enclosed stat, an overview of the sub prime ARM’s that will mature the coming months/are maturing now. Sorry to say that quite a bit of these will end up as foreclosure. Banks are only interested to sell these properties as fast as they can.

While you have to be careful buying these (use a good Realtor), they are excellent opportunities for investors and buyers. Should you like to be on my ‘opportunities watch list’, just send me and email with your contact info so I can set you up. By the way, not only bank owned properties are great deals, sometimes a regular sale might be a better deal.

We are going to have a wonderful weekend, great for touring around Sonoma County an enjoy some wines. I did meet Pat Maier at the Chamber Expo this week, she was pouring an excellent 2005 Cabernet. Check out their website, you have to make an appointment to taste their wines, they are also available at some great restaurants in town (one was Willi’s Wine bar in Larkfield).

Have a wonderful weekend!

Mirjam (mirjam@C21alliance.com)

May 07

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Snapshot of our market

By Mirjam | Buyers, Economy, RE by the numbers, RE Investing, Sellers, Sonoma County info | No Comments

I know the market fluctuates all the time but I have been noticing that a lot of homes have been going into escrow, it has been rising over the last 5 weeks. It started slow but then it picked up. And yes, a lot of the homes that went into escrow also closed. Look at the statistics that I pulled from Broker Metrics a program that very conveniently pulls the data from our local MLS system.

The media is giving you info that the economy is going through the drain, the Fed will have to cut interest rates again. Perhaps they are right, but keep in mind John D. Rockefeller who said “The way to make money is to buy when blood is running in the streets.”

The info is also great for sellers, should you need or want to sell your home, the numbers clearly indicate the ‘new reality’.

The above statistic is from all Sonoma County. The drop shows that a some people have take their home of the market at the end of the year, some home owners who were trying to do a ‘shot sale’ did not succeed and the property went into foreclosure (these properties will come back a few months later as an REO) and it clearly show the increase of activity.

I look forward to your feedback!

Mirjam (707-486-2638)

Apr 27

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Smart Home Choices Workshop

By Mirjam | Buyers, Foreclosure, Sellers, Sonoma County info | No Comments

Yesterday we had what most likely will be the last in a series of the Smart Home Choices Workshop. It was a great success, I counted about 80 home owners and great feedback.

It was great to see that banks have ramped up their assistance for troubled homeowners but it was clear that if you need help from your lender you do need to do a lot of homework -> banks are not social security. Should you like a copy of the handouts given, please let me know.

Data from Harvard University’s Joint Center of Housing Studies illustrate not only that the median net wealth of homeowners is 34 times greater than that of renters, but also that over half of that wealth is generated from home equity.

The website Housing Markets Facts mentions :The Department of Commerce reports that between 1995 and 2004, the average renter accumulated a little over $4,000 in net worth. The average homeowner accumulated $184,400. That translates into $180,000 more, or $1,500 per month. In other words, each month that the average first-time buyer continues to rent, it costs them $1,500 in lost wealth accumulation. Furthermore, renters are subject to rent increases as well as higher tax rates because they cannot take a mortgage deduction.

So no matter how difficult it is: if you can, hold on to your house.

Have a great day!

Mirjam de Rijk

Apr 17

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Let The Facts Decide…

By Mirjam | Buyers, Economy, RE Investing, Sellers | No Comments

In today’s housing market, the media’s continued focus on negative real estate news is keeping many people solidly on the sidelines. But remember, you are not getting the whole story.

FACT #1: THERE IS STILL OVER $23 TRILLION OF VALUE IN U.S. HOUSING STOCK. Home ownership continues to be the basis of our wealth in this country.

FACT #2: THE HOUSING MARKET CANNOT HELP BUT GROW. Our country’s tremendous wealth, liquidity, and entrepreneurship will continue to drive our economy. 70-100 million people will be added to our market in the next 40 years.

FACT #3: REAL ESTATE IS CYCLICAL. The biggest fear in good times is that the fair weather won’t last forever—because it doesn’t. But the reality of a cyclical real estate market also provides its brightest hope in bad times—foul weather won’t last forever either. What’s happening today is a market correction, severe in some places, but it’s not the end of the world. The markets will stabilize.

FACT #4: 2008 IS THE BEST YEAR TO BUY A HOME IN 35 YEARS. 1973 was the last time mortgage rates were this low in a buyer’s market. We had rates this low in 2001 and 2002, but those were strong seller’s markets with little inventory. The last two big buyer’s markets, in the early ‘80s and early ‘90s had much higher rates. Low rates and good inventory make 2008 the best year to buy in decades!

FACT #5: FIRST-TIME BUYERS HAVE A REAL ADVANTAGE IN TODAY’S MARKET. First-time buyers can buy at a reduced price without having to sell at one too. Higher limits on lower cost conforming loans also help first-time buyers purchase more home for their money. Today’s ‘starter’ homes can be pretty impressive.

FACT #6: FIRST-TIME BUYERS LOSE MONEY WHILE THEY WAIT ON THE SIDELINES. First, renters typically pay more state and federal income taxes than homeowners with a mortgage deduction. Renters are also losing the wealth they could be accumulating as they pay down their mortgage and as their home increases in value over time (as it surely will). Lastly, renters who wait to buy will lose money if interest rates increase by the time they finally act. Higher payments from higher interest rates represent money buyers could have kept if they had bought earlier. Conversely, if they were willing to spend that amount of money earlier, they could have bought more home.

FACT #7: HOMES SELL WHEN THEY’RE PRICED RIGHT AND SHOW WELL. When sellers make their home’s value obvious, they make a sale—it’s as simple as that. The facts are showing this. In Sonoma County we see investors coming back into the market.
… Have a great day!

Mirjam (707) 486-2638

Apr 16

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Great time to sell too!

By Mirjam | Sellers, Sonoma County info, Visit WineCountry, Wine Tasting, Winery with picnic place | No Comments

Today a totally different thought. You will read everywhere how bad the market (Press Democrat) is, that we are in a depression (see CNBC article), but don’t forget, the current market conditions do have a silver lining.

Home owners who are reluctant to sell because prices have fallen, should do the math, and realize that the market downturn could work in their favor. Yes a home owner will sell their home for less than a few years ago, but the home he or she would love to move up to, is also a lot less.

For example: if the house you covet used to be $500,000 but its price has fallen 20 percent to $400,000, it is a deal, even if your own home also has lost 20 percent of its value.

Of course this is really tough for people who bought about four years ago at the height of the market, but even then, selling now may make sense as long as you can at least break even. When the market was so hot, many people bought homes that was their second or even their 3rd choice. Right now, if moving will help you to get rid of the most negative unchangeables in your current home, and replace them with better unchangeables in a new home, moving does make sense. Once the market really turns around, the growth will be bigger in the better house, that’s a historical fact.

Here it is, my thought of the day, should this make you think about selling, you probably have an idea about the market value of your house and contact your Realtor (Of course, feel free to contact me) and get a professional opinion and get started.

P.S. This weekend we went to pick up our wine club shipment at Francis Coppola in Geyserville. They are doing a major remodel but the temporary tasting room is worth a visit. It’s food and wine tasting, the wines are great. Love the Diamond Collection Claret!