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Negative Sentiment Towards Buying Foreclosed Properties Decreasing

A recent survey conducted by Trulia and RealtTrac found that the negative sentiment towards buying foreclosed properties has decreased compared to one year ago. With 78 percent of U.S. adults believing there are downsides to buying foreclosed properties compared to 85 percent in May 2009. Among those who think there are negative aspects to purchasing a foreclosed home, the top concerns about purchasing a foreclosed property between May 2010 and May 2009 include:

Negative Sentiment	May 2010	May 2009
Hidden Costs	68 percent	71 percent
Process is risky	49 percent	46 percent
Home will lose value	35 percent	31 percent

“Although fewer consumers expressed interest in buying a foreclosed home than a year ago, the actual sales of bank-owned properties (REOs), along with sales of properties in the foreclosure process, continue to increase — accounting for more than 30 percent of total sales in the first quarter of 2010 according to our data,” said Rick Sharga, senior vice president for RealtyTrac. “We anticipate that there will be an increased number of both REO purchases and short sales throughout the rest of the year as the most active buying segments – first time home buyers and investors – continue to look for bargains.”

“It appears that potential homebuyers are taking a more realistic view of foreclosure purchasing,” Sharga continued. “Buying a foreclosure property still provides an opportunity for dramatic savings on a home, but the time and effort involved in executing a short sale, bidding against other buyers for an REO, or the need to do renovations may be issues for buyers not as focused on getting the best price.”

The Bank-Owned Discount

The survey also found that 18 percent of U.S. adults expect bank-owned homes to offer a realistic price discount of less than 25 percent off the value of a similar home that was not in foreclosure. However, not all consumers have realistic expectations, with 36 percent saying that they expect to receive a discount of 50 percent or more when purchasing a bank-owned property. Most consumers (95 percent) would expect to pay less for a foreclosed home than for a similar home for sale that is not in foreclosure.

The survey also found some interesting demographics of who is buying the foreclosed homes.

Renters are showing strong interest in buying foreclosed properties, with 57 percent at least somewhat likely to purchase a foreclosed home in the future. In comparison, only 40 percent of current homeowners would consider buying a foreclosure in the future. Additionally, the likelihood to consider purchasing a foreclosure decreases with age: 65 percent of renters ages 18-34, 63 percent of renters between the ages of 35-44, and 54 percent of renters ages 45-54 are at least somewhat likely to consider purchasing a foreclosure, compared to only 31 percent of renters 55 years and older.

Photo Of Shasta Dam Being Built In 1942

Last night I was doing some quick research for our website and I came across a great photo of the Shasta Dam that I thought you all would enjoy. This was taken in 1942 while they were building the dam.

The photo is from the Library of Congress Prints and Photographs Division. Shasta dam is 602 ft high and 3,460 ft long, with a base width or thickness of 543 ft. and when completed, was one of the great civil engineering feats of the world.

You can see this photo and others of the Redding area on our Photos page. Parsons Realty Photos

How To Lower Your Property Taxes In Shasta County

How to appeal your property taxes in 4 easy steps!

It’s that time of year again to pay your property taxes; providing your taxes are not impounded in your mortgage payment. Is there a way to pay less property tax? The answer is maybe.

First off, in case you’re in a hurry, here’s how and where to pay your Shasta County property taxes in order to avoid a penalty:

The remaining one-half of the taxes on all real property and personal property secured by real property are due by February 1, 2009, and will be delinquent on April 10, 2008.

Make your check payable to: Shasta County Tax Collector

Mail To:
Shasta County Tax Collector
P.O. Box 991830
Redding CA 96099-1830

Regarding the payment due date: Placing the envelope in the post office box does not guarantee that the mail will be processed the same day/evening. State law requires that a payment be treated as if it had been received on the date shown by the post office cancellation mark on the envelope. Only U.S. Federal Government postmarks will be accepted. To avoid penalties, ask to have the envelope hand canceled by the post office. Metered mail is not accepted as a valid cancellation. Contact the Shasta County Tax assessor at 530-225-3600 for specific questions.

You can also pay your property taxes online with a virtual check. Visit the Shasta County Tax Collector Web Site https://www.co.shasta.ca.us/html/TC/Virtual_Check_Intro.htm

Here’s how you may be able to reduce your property tax bill:

When the economy is faltering it’s time to scrutinize your property tax bill. As I’m sure you already know, real property values in Shasta County have dropped severely in the past several years. The Shasta County property tax rate is generally 1.1% of the assessed value. Therefore, if the assessed value of your property is high relative to comparable properties, you could be over paying your property taxes.

Step one: You can verify the value of your property yourself and you don’t have to pay anyone or any company. Be aware, there are many scams where companies offer to reduce your property tax for a fee. I recommend you save your money for all the other taxes you must pay.

Step Two: Make sure you’re not over paying you property tax by finding out the value the Assessor is using for your property. This is also a good time to check for errors in the description of your property. Errors such as: The reported square footage of the dwelling, bedroom and bath count and lot size all can affect the value of your property.

Step Three: Verify the Assessor’s valuation by determining the fair market value of your property. Any competent real estate broker should be able to help you with steps one and two. Should you need assistance, please email or call as I will provide you with an Assessor’s print-out and assist you with an expert property valuation at no cost to you.

Step Four: If you think the assessed valuation of your property is “high”, I recommend you contact the Assessor’s office at 225-3600 and request an informal review of your property. You may also wish to file a Request For Review form with Shasta County Assessor-Recorder. You can download the form by clicking on the previous hyperlink.

Once you have completed the form mail to:

SHASTA COUNTY ASSESSOR-RECORDER
1450 COURT STREET, SUITE 208-A
REDDING CA 96001-1667

The Request For Review Form is generally filed before filing an official Appeals Application. Like most things in life, it’s best to start out with a gentle request first. It’s my opinion you are better to try and fail than to never try at all.

An important side note: The Tax Collector collects property taxes that fund the activities of local government of the county including the school system. The Tax Collector does not determine how much to collect. The County Assessor determines the value of a parcel and gives the value information to the County Auditor-Controller, who applies the tax rates and special assessments to the tax bill. The Auditor-Controller then charges the Tax Collector with the collection of the tax bill.

You may also wish to review the Shasta County’s Assesment Appeal Handout. The purpose of this handout or pamphlet is to acquaint you with the process of appealing your assessment to the Assessment Appeals Board (AAB), including the statutory requirements for filing an appeal and presenting a case before the Board. The pamphlet will help you understand how the system works and what you can do to make the most use of it.

Was this information helpful? I’d like to hear your thoughts, please comment below. Also, be sure to let me know if I can help you in any way or if I left out any important information.

Foreclosures Affecting Reddings Rental Market

In an article today on Redding.com they discuss how foreclosures are affecting the landlords and tenants is Redding’s rental market.

The economy and Shasta County’s increasingly affordable housing market now are causing a downturn in the area’s rental market.

Banners advertising space for rent or lease are plentiful along Redding’s Hilltop Drive as landlords look to fill empty units.

“We see a lot of people losing their jobs. They have to relocate or find something much smaller,” said Michelle Connaught, business manager for River Knolls on Hilltop Drive. “Right now, all of Hilltop Drive has been hit hard.”

The number of people looking for apartments on Hilltop Drive has declined since the beginning of the year, Connaught estimated.

With its panoramic views of Redding and the Sundial Bridge, River Knolls typically has a waiting list. But Connaught has found it increasingly difficult to fill vacant units.

River Knolls recently dropped monthly rents $50. Rents range from $800 to $1,120 a month.

“There’s not enough traffic because there is not enough work,” Connaught said of people looking for rentals.

Shasta County’s unemployment rate in February was 16.2 percent, the highest for any month in 16 years.

“Three weeks ago, we were fully occupied. Now we have notices. It’s just turned around,” said Linda Morrison, who manages Redding Hilltop Apartments on Hilltop Drive, where rents run $630 to $640 a month for a one-bedroom.

“People are moving into two bedrooms with a roommate to save money or they’re moving back home, or out of state.”

But job losses are not the only reason vacancies are up in some areas.

The Shasta Creek Apartments in Redding have about 20 vacant units, roughly a fifth of the complex. Manager Thomas Turner said some residents are leaving because they’ve purchased a home.

“We just lost five residents who bought a home,” Turner said.
The number of people who can afford to buy a home in the Redding area has reached nearly 50 percent, according to the most recent National Association of Home Builders/Wells Fargo Housing Opportunity Index.

Of the new and existing homes sold in the fourth quarter of 2008, 48.8 percent were affordable to families earning Redding’s median annual income of $53,300, the index reported.

The median sales price in Redding from October to December of last year was $195,000, down from $209,000 the previous three months.

But the declining housing market has affected the rental market in other ways.
Walt Swift of Swift Properties in Redding said homeowners who can’t sell but don’t want to reduce their asking price are opting instead to rent their places out.

“We get a slug of calls every week from people who can’t sell,” Swift said. “We are talking upwards of $500,000 homes, or at least they paid $500,000 for it, but they can’t get that.”

North state property management firms, too, are renting homes and apartments to families who have lost their property to foreclosure.

Chad and Kerryann Barnes were in Redding this week to look at homes to rent. The Barnes, who have two children, are renting in Fresno after losing their home in Los Banos last August to foreclosure. They’re moving to the north state for a new start.

The Barnes want to rent a home on property for about $1,800 a month.
“There’s a ton available and at a decent price,” Kerryann Barnes, 33, said.
Chad Barnes, a 34-year-old California Highway Patrol Officer who’s transferring to Weaverville, said in one day they looked at 10 attractive rentals that were available.

“We will be up here in the middle of June,” he said.

North state property managers said that being foreclosed upon doesn’t necessarily mean a family won’t make good tenants.

“I’ve rented to a lot of people who’ve lost a home in foreclosure,” said Deborah Sain of Hubbub Properties in Redding. “Those can actually be good tenants: They are previous homeowners, they realize what they can afford, they can pay on time and they’ll take care of the place.”

Swift said occasionally his firm will encourage a family who’s lost a home to foreclosure to write a letter explaining their situation.
“We will present the letter with the application,” Swift said.

Real Estate Agents Demand Fair Distribution of Foreclosure Listings

This is getting a bit ridiculous. Now real estate agents are looking for a piece of the bailout. Heres the story from DSNews.com

A group of real estate agents is organizing a petition calling for changes to the Troubled Asset Relief Program (TARP) that would allow more real estate agents the opportunity to sell REO properties.

The petition, organized by Foreclosureu.com based in Rogers, Minnesota, a suburb of Minneapolis, says banks are unfairly limiting which real estate agents can sell REO properties. The petition says 0.006 percent of the nation’s real estate agents sell 95 percent of available REO properties in the country.

According to the petition, “The lenders disposing these real estate assets have made it exceedingly difficult and in many cases impossible, for the vast majority of Realtors to fairly compete for this business…With many markets around the country being totally dominated with foreclosure sales only, the rest of the industry of over 1 million Realtors has nothing left to compete for.”

The group called the bank actions “unfair, inefficient and anti-competitive,” but said they were tolerated when the government did not have a stake in the institutions. But now that banks that have REO properties are receiving TARP funds, those practices should change.

In a press release, the group said, “Now that the American taxpayer has a direct interest in a large number of these banking institutions, Realtors have acquired a legitimate say in how these institutions distribute this business.”

The petition calls for legislation that would require “fair and proportionate” distribution of REO listings to real estate agents that want to compete for work.

The petitioners hopes to get 100,000 signatures, and the petition will be sent to the members of Congress on March 1.

It sounds like one more step towards Socialism to me. Why stop at bank owned properties? Lets spread all the listings around, that way its fair for everyone.

Increased Tax Credit For Homebuyers

The price tag for the economic stimulus package Congress is developing got a $19 billion bump Wednesday when the Senate approved doubling the housing tax credit to $15,000 and expanding it to include all homebuyers, not just those buying their first home.

The proposal would create a credit worth 10 percent of the value of a new or existing home, and is capped at $15,000, up from the $7,500 first time homebuyer tax credit already in place. The credit would not have to be repaid so long as the homeowner stays in the home for three years, and would be available for a year after the legislation is put into law.

Georgia Sen. Johnny Isakson, who proposed the amendment, said, “It is time to fix housing first. We have a pervasive housing problem, and we have a historical precedent that works.”

Isakson is referring to a $2,000 tax credit Congress passed in the mid-1970s, when market conditions led to a housing crisis that left the country with a three-year supply of homes.

The credit comes one day after the Senate voted to give a credit to new car buyers.

Negative Sentiment Towards Buying Foreclosed Properties Decreasing

Photo Of Shasta Dam Being Built In 1942

How To Lower Your Property Taxes In Shasta County

How to appeal your property taxes in 4 easy steps!

Here’s how you may be able to reduce your property tax bill:

Foreclosures Affecting Reddings Rental Market

Real Estate Agents Demand Fair Distribution of Foreclosure Listings

Increased Tax Credit For Homebuyers

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How to appeal your property taxes in 4 easy steps!

Here’s how you may be able to reduce your property tax bill:

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