Q: Is it a good time to sell my house?

A: Are you looking to buy a larger house? If so, the answer is probably, Yes.  The Move up formula is relative.  If you are going to sacrifice price and  sell in a down market than you benefit from buying in that same down market.  Almost everybody expects interest rates to rise over the next year.  Figure that a 1% bump in interest rates costs about $100,000 in purchasing power. The comprehensive answer is that you have to look at a long term plan and evaluate your goals and objectives in home ownership.

Q: Will home prices go up or down?

A: Most “experts” are predicting a further slide in home values, anywhere from 5% to 25% over the next year.  These numbers are based on “nationalized” statistics that include every type of home.  This broad interpretation defeats any accuracy in this prediction.  The “experts” I have found to be most accurate are predicting a 5-10% drop over the next year.  I think this is a more realistic guess.

 Q: What is a short sale?

A: A short sale is where the owner owes more on a house than it is worth.  They realize they cannot continue to make their mortgage payments and must sell.  They do not have enough to make up the shortfall themselves.  So they request that the lender accept an amount less than the full loan value as a payoff.  There are many ramifications from future lawsuits to income taxes and future credit damage that need to be considered by the seller.

 Q:  Is it a good idea to purchase a short sale?

A: They can be GREAT deals in the end.  But they can be very drawn out and very frustrating.  These deals are not for the faint of heart.  A buyer needs to approach such deals very realistically and informed of the process.

  Q: Are the banks lending money?

A:  Yes!  But their requirements are very stringent. Down payment requirements are higher, Credit restrictions are higher, asset verifications stricter and they look more carefully at employment income.  But, once approved the interest rates are still at record lows.

  Q:Can I get my property Taxes adjusted to reflect a lower current value?

A:  Yes, The process is fairly easy and is outlined at the LA County Assessors site under “Contesting Your Property Value”. Feel free to call me if you have any questions.

  Q: Are Zillow or Trulia good sources to determine my homes value.

A: These sites and computer models may be good places to start for some properties.  It mostly depends on your home characteristic.  They are most effective if your home is very similar to all other homes in your area and the area surrounding you is very similar.  The more variation in nearby neighborhoods and the more customization or your home the less effective the pricing is.