What is your name?
Tiffany Pivoda
City
Yuba City
What part of the current real estate market has personally impacted you?
As a Realtor, I have been impacted by the recent collapse in the real estate market in several ways. First, and probably most obvious, is that the dramatic decline in home values has caused my commissions per transaction to decrease significantly. While this is not a fun thing, the high foreclosure rate has increased my total number of transactions, which now consist of lots of bank-owned properties and short sales. All in all, I am slightly better off financially than I was prior to the collapse. Granted, I am working harder now than ever before!
How has your ability to secure financing directly impacted your ability to purchase or refinance properties of critical interest?
I have not personally been able to refinance my home, which I bought at a slightly above market interest rate to avoid complications with the lending process, because my home's loan to value ratio is now "upside down." I have also noticed that my clients are sometimes having difficulty coming up with a down payment. This is due to the over-reliance on "no-money-down" mortgages and a sense of entitlement that seems pervasive these days. It seems that nobody wants or knows how to save money anymore. Now that government-backed loans are requiring at least 3.5 percent down and downpayment assistance programs are drying up, many buyers whose monthly income would otherwise qualify them for a loan are no longer able to get one.
What impact will adjustable mortgages have on your upcoming (or recent, past) finances?
Adjustable rate mortgages (ARMs) will continue to drive the high foreclosure rate for another couple of years. I have positioned myself to capture as much of the foreclosure and short sale segments of the market as possible to weather the storm.
What words of advice do you offer to those considering real estate investment?
There has never been a better time to buy (assuming you can come up with between 3.5 percent and 20 percent down or more). Interest rates are at historic lows, prices are as low as they've been in nearly a decade, there is a large selection (inventory) of quality homes affordably priced, and rents have remained relatively stable (due to displaced owners). If you have ever thought about buying a home but thought you couldn't afford it, you might be surprised. Can you say buyer's market?!
What is your website?
RE/MAX Gold - Northern California Real Estate and Homes for Sale by Tiffany Pivoda
