What are the common mistakes made by second home buyers?

OOPS!According to real estate mogul Barbara Corcoran (you might know her from Shark Tank) if you are in the position to consider making a down payment on another property, now’s the time to do it. According to Corcoran, “It’s the smartest thing you can do right now,” adding that the second-home market is “the last area you can still get a steal of a deal.” But if you’re thinking of taking the plunge, Corcoran advises you act fast. “In the second home market, the homes are abundant but starting to shrink up.” As for Mammoth Lakes specifically, inventory levels are extremely low for both condos and single family homes.

If you decide to make a second home purchase, be sure and avoid some of the biggest mistakes made by second home buyers.

 Buying Where Your Friends Live:  Too often, Corcoran says, people fantasize about vacationing with or near friends and end up making a purchase that isn’t right for them.

Not Having a Budget: Set a budget and stick with it. “Look over your budget,” Corcoran says. She also adds that it’s a smart move to make a low bid on a property that is out of your price range, especially if it has been languishing on the market for months. “People who have the nicest homes always overprice, and it just sits on the market,” she adds.

Focusing on the Wrong Amenities: Don’t buy into a community because of its amenities. If you’re not a tennis player now, you won’t become one because your new development has a court. “Most people generally won’t use the extra stuff and they get blinded by all of that,” Cochran explains.

For previous articles, visit http://www.SonjaBush.com

For more information on Ms. Corcoran, visit www.BarbaraCorcoran.com


Distressed Sales in Mammoth Lakes

There are distressed sales in almost every market.   Before we look at Mammoth Lakes specifically, bank ownedit is important to understand the definition of distressed sale.

A distressed sale in real estate is defined as the urgent need to sell property when the owner can no longer make the mortgage payments.  He/she must sell the property immediately to pay off the mortgage, even if it involves losing money on the property.  There are two primary types of distressed sales:

Foreclosure:  A situation in which a mortgage lender takes possession of the property because the borrower  has not made payments on interest or principal for a certain period of time.

Short Sale:  An agreement between a mortgage borrower in distress and the lender that allows the borrower to sell the house and remit the proceeds to the lender.  A short sale is an alternative to foreclosure or a deed in lieu of foreclosure.

Foreclosure-related sales are on the decline but distressed sales continue to claim a “disproportionately high portion” of total home sales across the country, according to RealtyTrac’s most recent foreclosure and short sales report. The firm also found increases in prices for distressed properties in 2012.

Distressed property sales made up 43 percent of all home sales nationwide in 2012, according to RealtyTrac. Foreclosure-related sales made up 21 percent of all sales, while non-foreclosure short sales made up 22 percent of sales. Together, foreclosure and REO sales decreased 6 percent from 2011 with a total of 947,995 sales over the year in 2012.

Here in Mammoth Lakes, in 2012 distressed property sales made up 41 percent of all home sales.  Foreclosure sales made up 15 percent of all sales and short sales were 26 percent.

A qualified licensed real estate agent can provide information on available distressed sales.  Often the lender has special requirements for buyers and although there are some “good deals,” patience is a virtue when dealing with distressed sales.

For previous articles, visit www.SonjaBush.com