Buyers – Page 2 – Parsons Realty

Waterfront Properties: 11 Things You Should Know Before Buying

The North State is a great place to live, especially if you enjoy the great outdoors. If you’re into fishing, boating or other water sports, be sure to check out some of the affordable waterfront properties Redding has to offer. We all must live somewhere, why not live your vacation year round?

Eleven Things You Should Know Before Buying a Waterfront Home:

Pre-qualifying for a home, understanding navigable water use laws, conducting a professional home inspection, verifying property lines and purchasing insurance; buying a home can be a complicated process. But add “waterfront” into the equation and things get a little more complex. The good news is, real estate agents who regularly deal with waterfront properties know the ins and outs of this process. The following tips will give you a heads-up on what to expect when purchasing a home by the water.

Find a real estate agent that specializes in waterfront properties. Since there are fewer waterfront properties for sale, most agents won’t have the specialized knowledge of appraising or investigating waterfront properties. In fact, it’s not unusual for a real estate agent to never have a single waterfront transaction in the entire career. Sometimes “you may think you’ve found a great deal” but the reason it’s a great deal could be restrictive use conditions or protected plants and animals etc. You might not be able to create that private beach you’ve been dreaming about.
Consider the property more than the house. “Oftentimes, people fall in love with a house, but after they buy it, they realize the swimming is mucky, the view’s not very good, it’s difficult to get down to the water, or the place is not very private,” says Ted Silberstein, a real estate agent and GIS analyst with Parsons Realty. Ted specializes in land use restrictions and is an advisor to all of the Parsons’ real estate agents. Long story short, you can change the house, but you can’t change the location, so buy a property that you really love after you’ve checked it out first.
Can anyone use the waterway in front of your home? The answer is YES. Therefore it’s important to know if the area you’re considering is the “local hangout” on the weekends or during the summer months. Agents specializing in waterfront properties will know this. Here’s an excerpt of the regulations regarding waterways. The public’s right to use California waterways is guaranteed by the United States and California Constitutions and affirmed by California Legislative Codes. Both Federal and California case law further define and affirm these rights. The United States Constitution says – Freedom of navigation and the public’s right to use rivers are guaranteed by the Commerce Clause. The congressional Act admitting States to the Union requires that “all the navigable waters within said State shall be common highways and forever free.” Therefore, when you barbecue, be sure to throw on another shrimp just in case you have company.
Choose a property that dovetails with your lifestyle. You may find a beautiful property for sale, but it’s a 30 minute drive to the closest boat launch. “If you’re passionate about fly fishing on the Sacramento River, that’s going to make a difference in how often you actually do it. Focus on the activities you’re passionate about and choose a property accordingly.
Look into loans early. Since many waterfront properties are more expensive than other properties, loans will often fall into the jumbo mortgage category, In addition, there may not be recent sales in the area to justify the “cost per square foot” since a good chunk of the purchase price is allocated to the unique location. Chris Lamm of Security 1 Lending says “lenders will therefore only consider very qualified buyers.” And, buyers ought to start the loan process before they start looking for a property because waterfront property loans can take a lot longer than a normal home loan,” Lamm says.
Carefully check out the structure and look for deferred maintenance. Waterfront homes receive more abuse from the elements than the average home, so extra measures should be taken to protect them.
Insurance can be costly and complicated. Look into this early to make sure you know what you’re getting into. For instance, Tim Beasley of AAA insurance of Redding, CA says waterfront homeowners may have to cover additional perils such as a flood insurance policy and liability policies with higher than normal limits.
Find out what you can do with the property. If you want to make any changes to your waterfront property, such as adding a dock, start this process early to ensure that these alterations will be possible. Government agencies are very strict to deal with, and you don’t want to commit to purchasing an expensive home without knowing these limitations. Also find out what kind of activities are allowed on the body of water, as some areas have restrictions on jet skis, speedboats and other watercraft.
Talk to neighbors. Get insider information from neighbors by asking if they enjoy living in the community, if they have any issues with the property you’re thinking about purchasing, or if there are any waterfront-related problems.
In rural areas look into utilities. Waterfront buyers who are accustomed to the convenience of suburban life may assume that electricity, clean water, an adequate septic system, cable and Internet will be readily available at their new property, but this is not always the case. Bringing these services in to remote areas can be very expensive.
Get to know your responsibilities as a waterfront homeowner. If you’re part of a homeowners association, find out what kind of upkeep and maintenance of the property will be required from you by reviewing the conditions, covenants and restrictions also known as CC&Rs.

If you would like to search for waterfront properties in Redding and Shasta County, search our Waterfront Properties MLS page here:
https://www.parsonsrealty.com/parsons_realty/waterfront-properties-in-redding-shasta-county/

Mortgage Rates Drop to Lowest Level of the Year

(DSnews.com) Mortgage interest rates have fallen to their lowest level of the year. Economists say homebuyers have the financial turmoil in Europe to thank for that, as overseas investors have put their dollars instead towards what they see as safer U.S. securities.

The mortgage industry has been bracing for a rise in interest rates now that the Federal Reserve has ceased buying mortgage-backed securities. But with international money being poured into U.S. Treasury bonds, which are closely tied to rates for home loans, that rise has yet to come about – a definite plus for the residential real estate market here in the states as it confronts an expected drop in sales activity now that the homebuyer tax credit has expired.

According to Freddie Mac’s rate report released Thursday, interest rates on 30-year fixed-rate mortgages (FRM) averaged 4.78 percent (0.7 point) this week, down from last week when the average rate was 4.84 percent. According to the GSE’s study, the 30-year FRM has not been lower since the week ending December 3, 2009, when it averaged 4.71 percent.

The 15-year FRM this week averaged 4.21 percent (0.7 point), Freddie Mac reported. That’s a slight drop from last week when it was 4.24 percent. Freddie says the 15-year FRM has not been lower since it started tracking 15-year rates in August of 1991.

“These low rates will help to elevate homebuyer affordability and soften the effects of the sunset of the homebuyer tax credit,” said Frank Nothaft, Freddie Mac’s VP and chief economist. “The latest information from Freddie Mac’s repeat-transactions home-price indexes also show some encouraging signs, with national metrics either slowing their descent or showing a modest rise, suggesting that the sharp downturn in national indexes since 2006 may be nearing an end.”

A separate study from Bankrate Thursday also puts mortgage rates at 2010 lows. Bankrate’s survey is based on data provided by the top 10 banks and thrifts in the top 10 markets.

Thirty-year fixed mortgage rates dropped to 4.92 percent (0.42 point) – a record low in Bankrate’s weekly survey. Last week, the 30-year rate came in at 4.96 percent.

The average 15-year fixed mortgage was unchanged from last week in Bankrate’s study at 4.34 percent, as was the larger jumbo 30-year fixed rate at 5.75 percent.

“The angst of investors around the globe about European debt, slower growth in China, and saber-rattling on the Korean Peninsula all feed into what is known as the ‘fear trade,’” Bankrate said in its report. “That fear trade has helped bring yields on U.S. Treasury securities considerably lower and mortgage shoppers have been direct beneficiaries.”

Zillow Reports Redding Home Values Up Slightly

According to Zillow’s Real Estate Market Reports for March 2010, Redding home values were Up 0.23% compared to February 2010 and down 13.97% compared to March 2009.

I am not sure how accurate the numbers from Zillow are, but it is interesting to track.

Fannie Mae Improves “First Look” Program for REO Property Sales

First Look program helps owner occupant home buyers get first opportunity over investors to buy Shasta County bank owned (REO) properties.

Fannie Mae’s First Look, initially started in late 2009, is designed to provide owner occupants a “first look” at Fannie Mae homes. Under this policy, Fannie Mae will only consider offers from owner occupants and buyers using public funds during the First Look marketing period which is typically the first 15 days a property is listed. If the property is still for sale after the First Look Marketing period expires, investor offers may be submitted and will be considered. Properties in the First Look marketing period will have a timer with the number of days remaining on the Fannie Mae Home Path property details page.

To start searching for Foreclosures and Bank owned properties in Redding and Shasta County.

New 2010 California Home Buyers Tax Credit

Yesterday the State Franchise Tax Board announced a tax credit for new home purchases and first time buyers. The new credit will start May 1, 2010.

Here is some general information.

Tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011. Additionally, the New Home Credit is available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010. The purchase date is defined as the date escrow closes.

The tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over.

For more information about the tax credits click here

See all available Redding homes in the Shasta County MLS or Search New Construction Homes with our custom Shasta County New Home Search

Key Interest Rate To Remain Low – Good News?

According to what I read on Bloomberg’s web site, the Federal Reserve has decided to keep key interest rates near zero for an extended period. The Federal Reserve also confirmed that it will stop buying mortgage backed securities at the end of March.

So, what does this mean if you’re thinking of buying a house and need a home loan? As you may know, the Federal Reserve is the central banking system for the United States. Its job is to protect the stability of our monetary system. That is to keep inflation to a minimum and maintain economic growth. The Federal Reserve doesn’t interact with you or me; it sets the federal funds rate. The federal funds rate is the interest banks must pay to borrow money from each other. Many people think a bank receives money from depositors and in turn, loans out the money to borrowers. This is true, but wait, there’s more. Banks can actually loan out up to ten times as much money as it owns. That’s great for the Banks but I just want a loan.

Just like automobiles and hot dogs, if retailers can buy the product at a lower cost, they can retail (sell) the product at a lower cost to you the consumer. The number of consumers for any commodity increases as the retail price of the commodity decreases. As consumers, we like low prices. In this example, the money you want to borrow is the commodity and the cost of the loan is the retail price, also known as the interest rate you pay.

If the key interest rate stays low, it’s my opinion this is good news for people wishing to obtain a loan to buy a house. But what happens if the Federal Reserve stops buying mortgage backed securities?

First, a simple definition: A mortgage backed security is an asset backed security. In this example, the promissory note a borrower signs to obtain a home loan is only a piece of paper. However, the owner of the “paper” has the right to foreclose and take the house (asset) from the borrower if the borrower does not make their loan payments. Therefore, if the Federal Reserve stops buying mortgage backed securities (paper) there could be less “new” money for the banks to lend.

I have some concerns if the Feds stop buying mortgage backed securities. Primarily, what will happen to mortgage interest rates? Could near term interest rates rise? If so, how much will the increase be? I’ve been hearing from one quarter of a percentage point all the way up to three quarters of a point.

Long story short, sometimes it’s better to get going while the getting is good. Or, if you snooze you lose…you get the point. If you’ve been thinking about buying, NOW could be the time. With some Redding homes selling for less than the cost to build and interest rates at historic lows; it doesn’t get much better for buyers. Just my thoughts for the day, what do you think?