Q. Every year I read about predictions of an improving economy, yet the housing market stays stalled. For this year, I’m reading again that the market will heal and become active. Are all these predictions just so much smoke blowing in our faces? J.M. Rio Vista
A. I’ve read as well that borrowing for a home loan could be easier this year, but when does that start? My last deal spent 15 days with the underwriters to get funded, and that part of the process used to take 48 hours.
There are many ingredients to make a brisk market, like low prices and interest rates, low inventory, and abundant buyers, and we have all those. We could see multiple offers bidding up prices. The stock market is the strong and maintaining a high average, and loans are in place for low or nothing down.
Even short sales could get streamlined; there are 2 bills being presented to speed up the short sale process which currently takes 4 to 9 months on average. One bill would demand completion in 75 days, with only 1 lender extension for 21 days, and a lender fine of $1,000 for violation of provisions of the Bill. The other Bill is similar but allowing only 45 days. Since the majority of homes in our area are worth less than people owe, this would speed up the process and retain potential buyers who are getting tired of waiting and walking away, forcing the seller into foreclosure.
All the things mentioned here could certainly help our market start moving, but wait, there may have been a light wind blowing through those smoke signals; we’ll have to wait and see if we’re getting the right message.
Q. I live in an HOA community, and I’ve learned that even changes in landscaping have to be approved by a committee. This seems like overkill, doesn’t it? R.M. Rio Vista
A. Statistics show that communities with Home Owner Associations (HOA) and Codes, Covenants, and Restrictions (CC&R’s) hold their value better than neighborhoods that have no guidelines or HOA’s. The balance to strike is what you need to make the home feel like your own, and what the HOA allows. This should be evaluated prior to purchase since these limitations are not uncommon.
Not all HOA’s do this, but Trilogy in Rio Vista transfers documents to the buyer prior to close of the sale for buyer review. After purchase they hold an orientation and answer questions, and they point out the architectural committee is where you must submit your changes.
I recently was turned down on a project by the architectural committee, but I was offered a review by an executive committee that gives the applicant the opportunity to review the decision and seek clarity, and possibly overturn the denial.
I was still denied, but the process is a democratic application of the interpretation of the intent of the CC&R’s. The decision was made according to guidelines as to the intent of how the community should look and be maintained.
I cover this aspect with clients looking to purchase there so there are no surprises after they move in.
Call with your questions to 707-374-6491 or visit www.richards-realestate.com