In today's economy, many homeowners are struggling to make their mortgage payments each month.  Many are on the brink of foreclosure and are considering walking away from their homes, especially if they now owe more than the property is worth.  Another option for struggling homeowners is the short sale, a method of selling the home for less than what is owed on it.  Banks may agree to this if they decide taking a moderate loss on the home sale is a better option than trying to press current homeowners, who may end up in foreclosure anyway.  If a homeowner meets certain requirements, they may be eligible for a short sale.

 Deciding if a short sale is better option than foreclosure involves taking several factors into consideration.  During a short sale, the homeowner is in control over who purchases your home.  It may help you accept the fact that you are selling your home to know that you have control instead of the bank.  The sale of your home and property are handled just like any other standard property sale.  You do not have to be behind in your payments to qualify for a short sale, so choosing to pursue one helps you maintain a good credit score.

 While allowing the home to fall into foreclosure is simpler in the short term, essentially freeing you of the responsibility of selling the property, it can damage your credit significantly.  You will likely be unable to purchase another home or piece of property for at least five years or, more often, seven years.  Effecting a short sale saves you this damage.  In fact, if you have never been more than thirty days behind on your mortgage payments, you can technically purchase another home immediately.  Qualifying for another home loan in this scenario is difficult, but possible.  You may even qualify for an FHA loan.

 If you're struggling to escape a high mortgage payment, the easy answer may seem to be foreclosure.  But the damage done to your credit when entering foreclosure is severe, and can be hard to escape.  Utilizing a short sale avoids this stigma.  In nearly every instance, choosing the option of a short sale is a better option for a homeowner.  If you qualify for a short sale, be sure to review all the terms associated with it and compare them to the specifics related to foreclosure.  You'll most likely come to the conclusion that a short sale is the proper course of action.

In effect since Jan 1 2011

SB 458 extends the protections of SB 931 (2010) that have been in effect since Jan 1 2011, to ensure that any lender that agrees to a short sale for a residential 1 to 4 property, must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans. This applies to 2nd mortgage liens, 3rd mortgage liens, etc. (a.k.a. junior lien holders; e.g. home equity line of credit – HELOC).

If you want to Stop The Bank’s Foreclosure Today!    A Loan Modification could be an alternative.

Save your home from foreclosure. The Silicon Valley Real Estate Team is here to help homeowners understand foreclosure alternatives and avoid foreclosure. Free consultation for home owners in financial hardship.

The southern portion of California's Bay Area is home to Silicon Valley. More than anywhere in the world, this famous region is synonymous with technology. In addition to tech giants, Silicon Valley is also home to numerous luxury estates and other lovely real estate properties. Depending upon property location and house design, homes are on the market listed at prices as low as 100,000 dollars and as high as 30 million plus. Recent happenings in the housing market have forced thousands of homes into foreclosure, and numerous layoffs from neighboring companies have caused many homeowners to list their homes in the hopes of a quick sale.

More than any other time in history, the Silicon Valley real estate market is now a buyer's market. Over most of last year average home prices fell steadily before leveling off in the latter months. Recent data suggests that the list prices of homes are increasing, but the truth is that sales are still low, and expected to drop even more. With over five thousand homes in different stages of foreclosure - auction or pre-foreclosure, for example - the market is flooded with opportunities for the smart investor. With the right knowledge, and an agent who knows where the best deals are, the time is right to make unbelievable purchases.

Overall, the median sales price of a home in Silicon Valley is still two percent lower than January of 2010 at around $460,000. Resale home prices actually increased, however. The number of homes sold dropped nearly eleven percent from last year. These slow sales figures suggest that many homeowners may consider negotiating the price of their property in the hopes of selling it. Numerous short sale homes may be listed for a lower than average price, as homeowners and banks try to sell them before they fall into foreclosure. These homes may be difficult to find without a real estate agent, however.

Foreclosed homes are another great opportunity for investors. As lenders look to recoup their losses, the prices of properties in foreclosure are lower than ever. The market generally picks up in the spring and summer months, and figures show that homes sold in these months sell for four percent more than other periods. Purchasing real estate prior to spring may pay off as the warmer weather rolls around. Most experts agree that the real estate market will pick up eventually, and taking place of the buyer's market currently available in Silicon Valley can pay off tremendously in the future. It's an investment worth making.

Once you approach the reality of foreclosure on your Silicon Valley home, you may be wondering if there is truly a reliable way to avoid foreclosure.  You will be eager to learn that there is!  In fact, there are three completely different ways you can avoid it.  Each should be considered before you choose one or the other.  Also, it is wise to get in touch with a lawyer, an accountant, and a real estate agent to discuss your legal rights, the taxes and other kinds of money involved, and other aspects to do with your home.  Hopefully, these three ideas will give you what you need to avoid foreclosure.

The first idea is to file for bankruptcy.  This will be the most beneficial to you with the help of a bankruptcy lawyer.  This option gives you more time to repay your debt and excuses some debt altogether.  Whatever decision is made in court must be met by you.  If you fail to do so, the lender may continue with the foreclosure of your home.  While bankruptcy is an option open to everyone, it should be a last resort to avoid losing your home.  There are two other options that will have a far lesser effect on your credit while still allowing you to avoid foreclosure.

Next is the option to sell your house.  Before foreclosure becomes unavoidable, you can choose to sell in order to avoid foreclosure and use the earnings from the sale to pay your lender.  To help you accomplish this, you will need to contact a good real estate agent in Silicon Valley so you can get the most for your home and possibly even make a profit after paying your debt.  The best way to make a larger profit is to fix up your home before putting it on the market.

If you are too close to foreclosure to be able to take your time selling a home on the regular real estate market, you can short sell your home to avoid foreclosure.  Of course, short selling means you will sell your home for less than it is worth just to get it sold quickly.  To be successful, again you should be in close touch with a Silicon Valley real estate agent who knows about potential buyers and can get your home sold quickly.  Clearly, there are ways you can avoid foreclosure if you simply know where to turn.

To learn more about Silicon Valley Real Estate, you can view all Silicon Valley Foreclosures and Silicon Valley Short Sale Listings.

Real estate is a market that tends to be ever-changing. Earlier in 2010, things appeared to be either frozen or declining on the nationwide housing market. This is discouraging because the spring and summer months are usually booming when it comes to housing sales. However, since the 2007 housing crisis, the market has never fully recovered. However, Silicon Valley real estate is making a strong comeback. Perhaps the naturally warmer temperatures of the area are having an effect on the market that so desperately needs a boost in this dreary market.

It looks like the extremes seen in Silicon Valley real estate a few years ago are mellowing out now. From 2000 to this point in 2010, how far has the Silicon Valley real estate market come? Well, there have been ups and downs, but it pretty much has come full circle. In the year 2000, the amounts of closed sales on homes in Santa Clara County were 4% higher than they were this year. Also, selling prices in 2000 were 3% lower than they are now in 2010. The spikes in sales that have been seen within the decade were the result of natural market cycles that peak in the warm months and dip in the colder winter months.

While many changes have occurred to the Silicon Valley real estate market in the past 10 years, what is closest to buyers' and sellers' hearts is the housing crisis that reached its low point in late 2008 into early 2009. However, because of the areas strong economy, its recovery rate has been better than many other parts of the country. If the economy continues on the incline that it is in Silicon Valley, it could switch into a seller's market before long. However, sales numbers are only one part of the market's recovery, and other areas are still down.

Another facet that is taken into consideration is the average number of days on the market, or DOM, before a home is sold. In 2000, Silicon Valley real estate was only on the market an average of 15-20 days. The DOM increased and fluctuated until it reached record selling pace again in 2005. Since then, a steady increase in DOM has been seen until it peaked in 2009 at more than 100 days spent on the market on average before being sold or simply taken off the market by sellers. Recovery is visible, though, as these numbers are decreasing into 2010, now with an average DOM of about 65.

Don Orason

Silicon Valley Real Estate Team

There are many things about San Jose real estate that you will want to know before you begin getting serious about the homes for sale there.  As of October 2010, there are specific price trends, demand trends, total inventory of homes, and market conditions that you should educate yourself about.  This will help you know when and where to buy your first or next home in San Jose, California.

Prices on homes for San Jose real estate are looking very good right now.  In November of last year, prices were a bit steep at a median of $540,000 as opposed to just under $500,000 now for an identical home.  Keep in mind that “median” is not the same as “average.”  In real estate, medians are generally used instead of averages because a few high-end homes can skew the numbers significantly.  By calculating the median, or midpoint, a more accurate representation of local housing prices is given.

The demand for homes raised and lowered a bit from January to May of this year.  In May, the demand for house skyrocketed in the popular spring buying time as the average number of days on the market plummeted from 150 days to about 80.  Since then, the number of days that San Jose real estate stays on the market before being sold has leveled out at about 100.

The amount of “inventory” simply means the amount of San Jose real estate that is for sale.  When the inventory is higher, there is a great supply for buyers to choose from, allowing them to have a greater say in setting the price.  The number of homes for sale in San Jose has been climbing steadily since mid January of this year.  Then there were 1,500 homes for sale and as of October 3, 2010, 2,858 homes were for sale.

The San Jose market conditions have been heading steadily in one direction since January of this year.  By taking median price, inventory levels and days on the market into consideration, it is possible to calculate what kind of market it is. Currently, listed homes can last for several months on the market while maintaining a current sale rate.  This is called a “cold market” or a buyer’s market.  In markets like this, prices are bound to fall and buyers can negotiate lower prices.  This means if you are interested in investing in San Jose real estate, now is the time to do so! 

Don Orason

Silicon Valley Real Estate Team

The internet is about 85% of my business.  It works 24/7 for me and never complains :-)

There are a few points about internet leads that come to mind that will help get more deals.

Have a webpage that gives "valuable" information that is constantly changing with the market.

It is a numbers game.  So you need to play the numbers.  Find a way to track your results and try and improve those results by making changes to your content that attracts more customers.

Instant gratification.  The buyers or sellers have an agenda and are looking for "certain" information and the faster and easier they receive that information the better.  By giving them what they want when they want it will give you "value" and start to gain rapport with hopefully new clients. :-).

Follow Up.  Internet leads want answers NOW...so if you get someone to fill out a form, send an email or call...Hopefully someone is there to answer the email or phone ...immediately!

The internet gives people "anonymity" and some want to stay that way.  So make sure you let them know, understand and appreciate their privacy.

So even if you have figured out the whole SEO game on the internet and you are getting a lot of traffic to your sight...you need to be able to give people what they want and then know how to follow up with an internet lead.

I know there is much more that can be said and many ideas to different approaches but the basic strategies remain the same: Give Value. Instant Gratification. Follow Up (respect privacy)

Let me know your thoughts.

Don
Silicon Valley Real Estate

Silicon Valley Real Estate

Silicon Valley is located in Northern California, and sits in the southern part of the San
Francisco area. The once sleepy valley started to thrive in the 1940's and 1950's when
many graduates and faculty from Stanford University started their own companies, with
the encouragement of Stanford's Dean of Engineering. The area began to grow with
technology companies and high-tech firms springing up everywhere. Companies like
Hewlett-Packard, Bell Telephone Labs, Xerox, and Fairfield Semiconductor led the way
for many more companies to come there. Silicon Valley developed the microprocessor and
the microcomputer which encouraged talented scientists, engineers and venture capitalists
to move into the area. Interest from the U.S. Navy, already in the area, led to aerospace
firms like Lockheed locating here. In the 1970's with the explosion in the computer
industry, Silicon Valley also exploded with the growth of companies like Apple and
Microsoft. The result by 2006, Silicon Valley was the third largest high-tech center in the
United States, creating more than 225,000 high-tech jobs. Homes for sale in Silicon Valley
over the last ten years have increased significantly to meet these requirements.

Rapid growth over the last thiry years has drawn people into Silicon Valley looking for
employment, and of course, homes. Silicon Valley real estate has flourished with new
families moving here and new developments going up. Homes for sale in Silicon Valley
have become a hot commodity with rising Silicon Valley home values. The Silicon Valley
encompasses a large area, with cities like Los Altos, Los Gatos, Mountain View, Palo
Alto, San Jose, Santa Clara, Sunnyvale, and others. Though on the outskirts, areas like
San Mateo County, Alameda County and Santa Cruz County are often thought of as part
of the Silicon Valley.

In addition to the high-tech job market, people are drawn to Silicon Valley because of
several major universities like Stanford University in Palo Alto, San Jose State University
in San Jose, and Santa Clara University in Santa Clara County. Faculty, employees and students
come to Silicon Valley in record numbers, and housing needs must be accommodated.
Silicon Valley home values in these areas are competitive, and Silicon Valley real estate
here is in high demand because of the university populations.

The temperature is pleasant all year in Silicon Valley, never too hot or too cold. It's a
great place to enjoy the outdoors. Hiking, boating, swimming, cycling and horseback
riding are popular activities with stables, trails and picturesque parks found in every city.
There are vineyards offering tours, wine tasting, and relaxing afternoons. Restaurants,
nightlife, museums, theme parks, and golf courses are abundant in Silicon Valley. There is
a lot to do here in this high-tech valley that is not just high-tech. Silicon Valley attracts
families, singles, job-seekers, and students, and has something to offer everyone. Silicon
Valley real estate is still in great demand. Silicon Valley home values are still good in
today's economy, and employment in the area is steady. Homes for sale in Silicon Valley
are still competitively priced, and there are many beautiful areas to see.

If you need ANY information regarding Silicon Valley Real Estate and Homes for sale. 
Contact the Silicon Valley Real Estate Team - "Helping You Make Good Real Estate Decisions"
408-833-6331

Silicon Valley Real Estate markets show strength in closing 2009

Though the business areas in Silicon Valley don't seem to be packing nearly as much punch as they used to, it looks like the residential Silicon Valley real estate market made some strong gains to close out 2009. The last couple of years has been tough on the area, with prices for both homes and condos sagging during that time period. This could be said of pretty much all areas around the country over the last couple of years, so it's no surprise that Silicon Valley home values have dropped off. With that said, those looking to sell their homes in the coming months should be encouraged to learn than a turnaround might be on its way.

December's big gains
In closing out the year, the homes for sale in Silicon Valley sold a little bit better at the end of the year. Likewise, Silicon Valley home values appear to be shooting up at rates that are unusual. According to those pundits who track the Silicon Valley real estate market and understand its peaks and valleys, this type of movement is an indicator that the market is starting to turn around. The gains were not just for the home market, either. Many like to look at the condo market to tell if the market's making a recovery, and they were pleased to learn of the condo industry's nice December.

Looking at the statistics - Silicon Valley Real Estate Market Statistics

If you were to look at Santa Clara County Real Estate alone during December, you would see a 44% increase in the number of homes sold during that month. That was quite a close to the year for that county, as 2009 ended up at the most prolific home selling year since 2006. Though not all counties across the Silicon Valley saw that high level of success, this is a sign that people are once again looking to move into the area and that homes for sale in Silicon Valley have a chance to succeed. Home prices in that county were also up 15% over December 2008, a strong indicator of the demand for new homes across the area.

So what is powering this increased demand? It looks like some of the apartment options are shrinking up around the Valley, which is causing more and more individuals to look into higher end Silicon Valley real estate. Instead of settling for renting, people are taking the dive and buying their home. For the last couple of years, the big problem with this has been financing for many buyers, but the banks around Northern California seem more and more willing to give out home loans at this time. The mortgage market has still not opened back up completely, but we are now at the level where people who have acceptable credit can once again get approval for a home loan.

In all, Silicon Valley real estate looks to be on its way back up. The strength of December 2009 in many counties is a sign of things to come, at least to those who follow the trends closely.

Here's a general list of tasks that you should be ready to do and complete if you are planning to sell a "For Sale by Owner" home.  Following these steps will lead you to a successful closing of your home for sale by owner.  

Set your asking price.  This should be based on the selling price of homes that have recently sold in your area. Called a CMA (Comparative Market Analysis)

Estimate your cash profit.  Your cash profit is the amount you receive from the sale less mortgage and other bills.

Make necessary home improvements.  Only make the improvements if the cost will create a justifiable increase in the asking price for your "for sale by owner" home.

Prepare the for sale by owner home for viewing by buyers. 

• First work on the exterior of the for sale by owner home.  Manicure the lawn.  Rake the leaves.  Spruce up shrubs and trees.  Repair fences and touch-up the paint if necessary.  Repair shutters, gutters and shingles.  Clean and paint siding.
  
  
• Then work on the interior.  Brighten up your home by painting with light colors.  Remove clutter from your home.  Consider having a yard sale to get rid of items you don't need.  Clean everything!  Eliminate all squeaks, leaks, and rattles.

Obtain the necessary forms.  In most cases, you will need sales contracts and disclosure forms.  You can get these from any major office supply store like Office Depot, Office Max, etc.  You can also find these online.

Fill out the forms in advance.  Make several copies to have on hand at all time.  That way if a buyer accepts your price, the only thing you'll have to do is get his or her signature.

Get a professional appraisal or inspection or both, if desired.  While neither of these is required for you to do, the lender and the buyer will often have their own appraisal and inspection done.  Having your own completed gives you a chance to make any necessary repairs.

Hire a real estate attorney or escrow.  During the process, you will need a third party to hold onto the deed and deposits made by the buyer.  You can kill two birds with one stone by hiring an attorney since you will likely need one in the process anyway.

Decide your for sale by owner home showing days.  Set the date in the future to give you enough time to prepare it for public viewing.

Start advertising your home.  Choose among several methods of advertising your for sale by owner home.  From internet advertising to yard signs to newspaper advertising, many options are available.  Start getting the word out about your home.  You can also add your home to the MLS online.

Negotiate with serious buyers.  If you receive a complicated offer from a buyer, you should review it with a real estate attorney to make sure you completely understand the terms before agreeing to the offer.  Always use qualified, professional help when preparing the contract and disclosures.

Have the buyer sign the sales contract.  At this time you also collect an earnest money deposit, which is held by the escrow agent, or your real estate attorney, until closing.

Select a real estate attorney, if you haven't already, to handle the closing.  In some states, the lender's attorney handles the closing.  In this case, your attorney is your representative during the process.

Recalculate your cash profit from the sale given the final sale price of the for sale by owner home.

Review the settlement statement before closing.  Make sure the calculations match your estimations.

Closing day.  Bring your driver's license.  Collect your cash.  Hand over the deed.

Congratulations! You have sold your for sale by owner home.

Contact Don Orason for more information regarding "For Sale By Owner"

San Jose CA Real Estate Agent - Area Expert.  Serving San Jose and all Santa Clara County. San Jose, Almaden Valley, Blossom Valley, Los Gatos, Saratoga, Willow Glen, Silver Creek, Evergreen, Campbell and surrounding areas. Search ALL Homes and Real Estate for Sale. Free Home Evaluations. Buyers and Sellers have access to important information which affects Santa Clara County Real Estate. Consistently on the cutting-edge of new real estate technology that will benefit YOU!

I would like to get some feedback from anyone reading this what they think about home buyers putting in their offer based on what they "think" is going to happen in the real estate market vs...where the market is TODAY.

In a declining real estate market, buyers would love to catch the bottom, just like in a declining stock market.  So some buyers try and put in offers based on their prediction on where the market will be in a few months etc...not a bad idea ... but... the bottom line I feel is "If a home is price correctly, then it will sell at the most the market will bear" and get top dollar and sell quickly for that area.  It's hard to justify putting in a low ball offer on a home that is already "priced correctly" for TODAY'S market.

I know it's a real estate agents job to give direction in price to the buyers by giving accurate comps and explaining the comparisons...

So what do you think?  Are you seeing much of this?