Dear Friends and Clients,

Recent economic events have left a lot of people with many questions about the state of the Reno/Sparks real estate market. I hope this brief update on the real estate market is useful to you.

First, however, I thought I should let you know that I have sold Ferrari-Lund Real Estate to my partners, Vince Rossi and David Graham. About three years ago, before the market tanked, Nancy and I (after much thought) began the process of selling the business we started back in 1988. I have been selling real estate for over 30 years and both selling and running the company for the last 20. It was time to simplify my life and go back to the thing I loved enough to never give up—just selling real estate.

I opened Ferrari-Lund hoping to build a company where real estate transactions were handled how I thought they should be. It has surpassed any of my dreams and expectations. I have loved and taken care of it for years. We started with six agents and two brokers. As of today, the company has 150 agents and 4 brokers.

Selling Ferrari-Lund allows me to concentrate full time on selling real estate. I have retained a minority share in the company until the buyout is complete, but Vince and David are now responsible for the day-to-day management of the company. This gives me more time to focus on helping my friends and clients. I have been blessed to find a career at an early age that I loved, and I still love it. I don’t see giving up selling real estate in any foreseeable future.

Despite the tumultuous economy, real estate is still a great investment. The market upheaval has left people with a lot of questions. Here are some great questions I am frequently asked. I hope these answers are helpful to you.

What should I do if I am upside down in my house?
Call me. I can explain your options. Some options include waiting it out, renting rather than selling, approaching lenders for loan modifications, negotiating a short sale, or letting the bank foreclose. There is also bankruptcy. I will refer you to an attorney or accountant if they are needed.

Is it a good time for me to buy?
Yes! There are so many good reasons to buy. Interest rates are low, prices haven’t been this low since October 2001, and there are special tax credits for first time buyers.

What is going to happen to the interest rates?
I wish I had a crystal ball. I recently refinanced one of my properties and did a 15 year loan at 4.375%. My previous loan had a 5.75% rate. I think there is a good chance that rates will rise in the future and that is why I refinanced.

What is the difference between a short sale and a foreclosure?
In a short sale you sell your home for less than you owe, and negotiate with your bank to accept the lesser amount. In a foreclosure, the bank forces the sale of your home at auction to recover what you owe the bank. If your home sells for less than the amount you owe the bank, it can file a court action against you seeking a judgment foe the remaining amount owed, known as a “deficiency judgment.” There is no difference between a short sale and a foreclosure as far as your credit is concerned, at least right now. This could change in the future. If a short sale is handled properly, however, it takes away the banks’ right to seek a deficiency judgment against you.

Are new loans harder to get now?
Yes, if you are looking for the old 100% loans with no down payment. Unless you are a veteran, down payments are required. On the other hand, if you have the 3.5% cash down payment (or a relative who will gift it to you) and a FICO score of 620 or higher loans are still easy to obtain. Further, I have negotiated many offers with the seller’s paying all of the buyer’s closing costs.

Is it better for me to rent for the time being?
It depends on your situation. We are back to the old rules of real estate. With a normal market appreciation of 2-3% annually, you must plan on staying in your property for 3-5 years just to break even. So if you are expecting a job transfer in the near future, then renting may be your best move.

On the other hand, if you have no plans to leave this area any time soon and your housing needs are not going to change much in the coming years, then, of course you should buy and not rent.

Market inventories are shrinking again. The less expensive end of the market will soon see prices going up again. It will start with the sellers no longer agreeing to pay buyer’s fees and then you will see prices begin to edge upwards.

I’m sorry I can’t say this about our exclusive home market. In homes that are $500,000. and up, there may still be some painful times ahead, and unless you can get a great buy, renting might be a better option.

How is the rental market?
At Ferrari-Lund Real Estate we have really expanded our property management services. We are successfully renting the homes, but owners need to be willing to make repairs or be prepared to possibly lower the rent. It is a renter’s market. Tenants have plenty of homes to choose from.

There are so many more things we could talk about, so please contact me. Every situation is different. If you have a good job and good credit – this may be your time.

I can be reached at my office 775-850-7033 or on my cell 775-742-6537;
email is great too: sold@ricklund.com

I would love to speak with you and answer any questions you may have.

Sincerely,
Rick Lund

Get Ready for Change!!!

“It will come” says our new President Barack Obama.

The biggest change since the last time I updated you has been the number of homes for sale and the total months of inventory of available homes.

In January 2008 we had 19 to 18 months at the end of December 2008, there is presently 10 to 9 months in the Reno - Sparks real estate market respectively.

What does this mean?
We are still in a buyers market. It also could be telling us that the bottom is getting closer. It better be getting closer as prices are lower than they have been in many neighborhoods since 2001.

Don’t believe all of the bad news about Nevada being the state leading the nation in foreclosures per households as the numbers were recently found to have been in error. The database was counting the total number of notices filed and it was learned that many of the homes had multiple filings. So it isn’t as bad as it sounds.

Is it bad?
If you are a property owner now, then yes it is bad. If you have a need or a desire to buy your first home or wanting to upgrade your home then this is great news.

• Interest rates are as low as they have been in years.
• The number of great properties to choose from is numerous.
• Also, don’t let the rumors that there isn’t money to lend get you down.
• The banks no longer have Non-or Limited Qualifying loans, but there are exceptions to this rule.

If you have ever wanted to buy additional properties now is the time. There are investor loans readily available as long as you don’t already have 4 or more unpaid real estate loans.

I still don’t have a crystal ball so I can’t tell you what is going to happen with the national economy. When it does show signs that will improve the consumer confidence, it might be too late to catch the bottom.

What's next?
Right now we are about to see another wave of California buyers who will be looking to buy in other states. Nevada has a Governor who is trying not to raise taxes and California’s Governor is hoping to pass some of the largest tax increases in history.

Once our builders start building again, construction workers who were laid off will be headed back here again when building does start up again.

I don’t know if this will happen in 2009 or 2010, but when it happens things will start hopping in a hurry.

Meanwhile, this is the first time in years that with the combination of low interest rates and low housing prices where an investor can do a 20%-25% down payment and have a positive cash flow without depending on market appreciation and after tax benefits.

There is so much I would like to talk to you about. There is so much that I can’t explain in a blog posting. I may have said something that you don’t agree with or understand. Please don’t get mad or brush this off. I can explain and discuss these issues with you. Just call me at 775-850-7033 or email me at sold@RickLund.com.

If you know of anyone who should be buying but they don’t know the process, please have them call me or just give me their contact information and I will contact them and help them out.

Many homes are being purchased with just 3.5% cash down payment and we are able to get the seller’s to pay the buyer’s closing costs. The buyer’s payments are some times lower than the rent for similar homes.

Remember “Nothing Ventured, Nothing Gained.” One thing I’ve learned from my hunting and fishing experiences, if you don’t go out and try, you are guaranteed to get nothing. My wife will say, "But think of all the gas you would have saved." When we look at homes I buy the gas, you don’t pay the commission so give me a call.

And one more thing: If you have a need to sell I can give you the best service available. I am an expert in negotiating short sales and saving you from foreclosure. Call me for details. My general answer for people thinking of selling is: If you don’t have to sell, then please don’t, as the prices are at record lows. If finances or relocation forces your need to sell, then give me a call and I’ll do the best job available in this market.


Rick Lund
www.ricklund.com
www.ferrari-lund.com

Real Estate Market Update for Reno-Sparks, Nevada (September 2008)

It has been awhile since I gave some of my favorite and most important people a market update.

The only real sure thing in this market is that real estate values have declined.

AND, important to those who want to make a real estate investment, NOW could be the time. If it weren’t for the world and national uncertainties, it could be said that all of the indicators would be pointing to BUY NOW.

The unknown factor is - who knows what will happen with the elections, the war in Iraq and conflicts in Iran, Russia, etc. or the price of oil and will we drill in new places, build new refineries or build more nuclear power plants or will we go GREEN?

I am not an expert in these areas and I will not even try to guess what will happen in those arenas. I am an expert in real estate in Reno-Sparks, Nevada. I have had a track record for all of these 30 years of being one of the most active in dollar volume in sales and units sold. I read and analyze way too much on this subject and I will share a few figures with you.

One of the biggest reasons for this down market we are in is because so many major builders came to Reno at the same time. Did they not check with their competitors before they came and figure out that if six large builders come to the same market at the same time that there could be an over built situation? Did each of these builders just hear that their competitors were going there and they didn’t want to miss out? Did each of them really think that they could build a better product for less money or that their marketing was so good that they could outsell any of their competitors?

The only thing I will say is that the old saying is still true, “The only thing we learn from history is that we don’t learn from history”. Wherever you have a California type peak market you have to expect we might see a California type valley.

The big question most of us have is, will the Reno-Sparks market improve and will prices ever go up again. The only thing I know for sure is that our local market is in a position to only go up. The only thing that will keep our local market from going up is if some of the world and national items I mentioned above really get out of control.

Supply and demand was out of balance. Once buyers and investors heard the news they panicked and they became sellers. Many builders slashed prices in neighborhoods by as much as $70,000. This happened in areas where people had just closed their loans at the higher prices and many times with zero to only five percent down payment. This is why we started having foreclosures and yes, we all learned about “short sales”.

We still have builders and developers who own land that they need to sell or build on. Everything I am about to tell you will require that these parties have learned from recent mistakes and they go back to the old rules of real estate. These are 1) location does matter and 2) supply and demand does matter.

If builders see a little bit of sunny skies and think this is our chance and start all of their projects at the same time we could have a problem, because there is a huge backlog of approved and pending projects to be built in all areas of town and the suburbs.

Some figures that will help you understand where we are now and where we might be heading. When our market was crazy with multiple and frantic offers and when people were sleeping in lines to be the lucky buyers to get the next release of homes we were down to as little as 1.5 months supply of inventory of homes to buy. The only homes that didn’t sell were where sellers had a very unreal expectation of the market. This was also when only a very few wise builders were letting Realtors in the MLS sell their homes.

It is many times said that 0-3 months supply is a seller’s market, 3-6 months supply is a normal market and more than 6 months supply is a buyer’s market. We have been in a buyer’s market for sometime now.

We now have (July 2008) Reno with 10.6 and Sparks with 9.5 months supply of homes. In January 2008 Sparks had 15.9 months supply. In February 2008 Reno had 19.6 months supply of homes.

The market is improving. Earlier this year we had builders giving up to $50,000 in free upgrades and loan incentives to get people to buy standing inventory homes. It is now difficult to find builders with standing inventory homes.

If you know you still want that larger, newer, or just a different home, now is the time to call me so I can show you what your options might be.

Call Rick Lund today at 775-850-7033 or 775-742-6537 or email at sold@ricklund.com

Rick Lund is a lifelong resident of Reno-Sparks, Nevada. There are few Nevada natives that can teach you about the area like Rick can.

www.ricklund.com
www.ferrari-lund.com

2008 Q1 Real Estate Update.

Many people are wondering what is happening with the Reno-Sparks, Nevada real estate market? Some are asking whether it will ever get better.

There have been some improvements in the market recently. In preparing a report for my agents at Ferrari-Lund Real Estate, I learned that listing agents and sellers have a 1-for-every-2.87-residential-properties-listed-chance of selling in the $200,000-or-less list price range. In the $1,000,000-or-higher range they have a 1-for-every-17.33-residential-properties-listed chance of selling. In the $500,000- $750,000 range there is 1 for every 8.16 chance of selling.

The good news is that we have seen an increase in the number of sales.

The bad news is that most of these sales are either bank owned or short sales approved by the banks. The prices of these homes have dropped to levels that our normal resale sellers don't want to compete with.

Here are some things you should consider if you have been trying to sell or are thinking about selling a property in Reno-Sparks, Nevada.

1. If you don't have to sell, then why would you try now?

2. If you've had your property on the market and no one has come to look in the last 30 days or if you haven't even recieved a low offer, take your property off of the market if you are not ready to lower the price or make needed improvements.

3. It may still be a good time to sell if you are selling to buy up in the market. In most parts of town the lower priced homes have not been hit as hard with declining values as the higher priced homes.

4. If you must relocate and you don't want to hurt your credit, then consider renting. The loss you take month after month may not be as large as the loss you will suffer by selling and taking your loss all at one time now. This would be in hopes that the market would improve in a 12-24 month period of time.

5. If you walk away from your property by way of foreclosure or short sale you could ruin your chances of purchasing again for 3-5 years. Fannie Mae just released these new guidelines and there will be more clarification in the near future.

Last and most important, now is a great time to buy!

You have more homes to choose from, interest rates are very affordable and prices in many areas are nearing 2001 levels.

For more information on the market or short sales, contact Rick Lund at Ferrari-Lund Real Estate Phone 775-850-7033 or Email: sold@ricklund.com

Suka the Gyr-Pergrine Falcon

When you are on your way to the Damonte Ranch High School and you see the dark helium balloon in the air, be sure to look around and you might see my falcon getting her exercise nearby. Thanks to friends like Steve, Dave, Martin and Gary I have recieved enough good pointers to get Suka flying and almost ready for Sagehen and Duck hunting. When it gets colder and most of the rifle and shotgun hunters have decided to watch football games instead of hunt, then she will get her chance. She is up to approximately 1000 feet and getting stronger. Wish us luck. Everyday is an adventure with her.

Salmon Run in 2007 is a bust

The friends who have fished with me this year will all agree that it's nice to have Rick on the boat to take the photos and net the salmon. The fish have all made me a good host and chose to bite on their poles and not mine.

Dan Ripple with 15 lb. , Mike Radcliffe with 30 lb. ,Bob Livinston with 27 lb King Salmon

The fishing has been slow at best. The guides are even having a hard time catching many fish this year. We are lucky to catch what we have caught. We can hope for a better winter run on the Sacramento River if not we hope for a better 2008.

Rick Goes to Big 10 Football

Ohio State has some serious fans.

My son told me two years ago that he wanted a different experience for his graduate school. I asked "why would you want to experience anything east of the Rockies?" He is now finishing his last year of his MBA program at Purdue University. When he first called me to tell me he had been accepted to Purdue I said "now you can get me into the Notre Dame football game I've always wanted to see." While discussing the schedule it was determined I would have to go out the weekend of the Ohio State game. I have season tickets to UNR and love to catch a tailgate party when I can. Steven assured me that what goes on the day of a Big 10 game is nothing like UNR. He was right. Starting at 9:00 AM they have the breakfast club. I am so glad none of my kids are part of this breakfast club. They dress up and drink their breakfast. They restricted the tailgate parking so it could not start until 1:00 PM because this game was going to be a late ESPN 8:00 PM. In the Big 10 the people drink all they can before the game as they don't allow beer sales in the stadium. UNR fans are complaining that they stop selling beer after half time. I have great seats at the UNR games, we are almost on the 50 yard line and we only stand up for kick offs and big plays. At this game we only sat down during half time. Unless you like seeing lower portion of bodies and getting no fresh air, sitting is not an option. The electricity is felt before you're in the stadium and it never stops. The band is huge and when they go on the field, they fill the entire field. The volume of noise vibrates your ears at times. There are the usual beach balls being hit around the stadium and a few other objects that you just don't want to touch let alone hit. You know you have had a great experience when your team loses 23-7, you get a phone call that your UNR lost 49-41, the crowd is huge and never ending when you leave and still you think to your self, that was a fun night. My thanks go to my son for being brave and smart enough to get accepted so that he could go east. Because he did this,I got to experience something new and yes it was exciting.

Of course visiting his family and seeing the grandson would have been enough without the game.

Now is the time to buy!!!

It is a slow afternoon here in the office. I just read that gas prices maybe going up again. This morning stocks were well over 14,000. Gold is over $700. per ounce and interest rates for home loans are holding steady at just over 6%.
I have been going over market statistics for the Reno/Sparks, Nevada market and they really have some bright spots that people are letting the media dull.
Now is a great market for buying that larger, newer home you've been wanting for so long.
You can make a super buy in the next 4 months and motivated sellers are going to welcome you to make it. You won't be competing with multiple offers like we had in previous years. If you buy your new home through Rick Lund you will get contributions towards your closing costs and negotiated prices that you've never seen in the past. Even the lender might be willing to throw something in to get your business. There are still plenty of great loan programs available for either owner occupied or investor's.
Don't let the media scare you away. The loan programs that have been cancelled by lender's and now outlawed by the State of Nevada in SB 440 shouldn't have been available anyway.
What you don't realize about the Reno/Sparks real estate market is that the prices have only dropped by approx. 5-15% depending on the price range and location.
RENTS HAVE NOT COME DOWN....
Many people were buying rentals like we were going to run out of them soon when the prices were high and now I can show you the same home for substantially less money and the same amount of gross income and you've let the press scare you away.
We are now in a great buyer's market. Probably the best I've seen in my 29 years of selling real estate and people are afraid to buy. I have seen times where we had as equally motivated seller's in the early 1980's but the interest rates were so high no one could afford to buy. This market is different because prices have dropped and interest rates are affordable and many seller's would even pay to buy down the buyer's interest rate if they were asked to.
If I represent you,"I am not afraid to ask"! If you have a smaller home and want to buy a larger home you have an option of selling your existing home at a small loss to buy a larger home at a huge savings. I have all of the documentation to prove what I've just said, so why not call me.

Looking For A New Construction Home?

Let me remind you that before you head out to look at the model homes, call Rick Lund to take you.

Now you are asking why do we need you to tag along with us?

The market is very competitive between the new home builders. These builders are willing to pay me to represent you and you need my representation.

I know what questions to ask the salesperson to help you in your negotiations. I know how to help you get builder incentives that you may not be aware are available.

When you go to the builder's models, the nice sales agent works for and represents the builder. They have no responsibility to let you know of available builder concessions unless they need to.

Most new home builders will not accept a contingent sale. If you need to sell your existing home please call me. I can help you know how much equity you will have to work with and the different types of financing that are available to help you with a new home purchase.

I have been selling homes in Reno/Sparks since 1978. I was the seventh highest volume agent in 2006 and Ferrari-Lund Real Estate has been the second highest volume company since 2003 in the Reno/Sparks area.

Call me Toll Free at 1-800-622-1777 or 775-850-7033 or 775-742-6537
Email me sold@ricklund.com

Market Update May 2007

I wanted to give you an update on what Rick Lund is up to and what is happening with Ferrari-Lund Real Estate. Since 2003, Ferrari-Lund Real Estate has been the second highest volume company in the Reno/Sparks market. Not bad for a company that I co-opened in 1988 with 6 agents total. We opened with no goal of being a market leader but rather a company that was needed to take care of my client’s real estate needs the way I knew they should be handled. I can also say thanks to all of you who let me help you with your real estate needs. I was the seventh highest volume agent in the Reno/Sparks market in 2006. Considering there are over 2500 agents in our market, I feel grateful for your support.

Ferrari-Lund has also been able to build ownership relationships with First Centennial Title Company and Lakeside Lending. With four convenient office locations and with escrow and lenders nearby, a one-stop hassle free real estate transaction is available for you.

What I really want to inform you about today is a service I have been providing for a few years now. I am aware of a private pension that purchases real estate notes, loans on hard to finance real estate and private loans to buyers that might be credit challenged.

If you are refinancing your existing loan or buying a home please consider Lakeside Lending and ask to use First Centennial Title Company for your escrow service.
If you need cash, or need to sell a note or need a loan to buy rural land, please call me.

I am often asked if the rumors are true:

1) The value of real estate in our area has dropped - Yes
2) The lenders who use to be available for 100% loans with limited qualifying are leaving the market. - Yes
3) Interest rates like gas prices may be headed up? It seems possible

Please call me if you have any questions or would like to discuss any real estate issue.

For all of your real estates needs or questions call me, Rick Lund
850-7033 or 742-6537 or email me at sold@ricklund.com

Sincerely,
Rick Lund
www.ricklund.com

Striped Bass Season 2007

The Striped Bass season for 2007 for me has ended. It was the best I've ever had and it's too bad I have to quit when it is still red hot. My boat had days where we caught zero fish but the day we caught 53 fish was a record for me. The Sacramento River and Delta were great depending on wind, rain and water color.

My personal biggest fish were 11, 10,10, 8 1/2 and 8 pounds with most fish in the 18-25 inch range.

Now, I can't wait for the Salmon coming in August. Now it's time to sell real estate.

There are new homes with great views!

Just when many people thought the best lots for new homes were all gone, some of the best views in Reno-Sparks have been found at Skyridge. TMB Builders has them and the quality and setting can't be beat. You can meet Ryan Flynn who is very knowledgeable about these homes and the Skyridge Community Thursday-Monday 11:00am to 5:00pm.

For more information about these affordable and beautiful homes call Rick Lund at 775-850-7033 or 775-742-6537 or 1-800-622-1777. Ferrari-Lund Real Estate is the listing broker for these homes.