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February 25

New homebuyer tax credit
As part of the government's economic rescue plan, congress made $8000 available to
every first time homebuyer who purchases a primary residence before December 1, 2009.
Qualified homebuyers who already purchased a home after January of this year also
qualify for the tax credit. The credit is equal to 10% of the purchase price upto a
maximum of $8000. First time buyers who's income is $75,000 or less ($150,000 if
married) qualify for the tax credit, which does not have to be repaid.
 
In order to receive the credit all the homebuyer needs to do, is file a tax return
and apply for the credit. But, what makes this such an appealing program, is that the
government has given authority to state housing agencies (like CalHFA) to advance
the full amount of the credit which would help homebuyers by putting cash in their
pocket right away. The advance though would be treated as a loan backed by proceeds
from tax exempt bonds.
 
New homeowners who purchased a home between April 9, 2008 and January 1, 2009 still
qualify for some tax credits too. The maximum credit for these buyers is $7500. This
credit though, is treated like an interest free loan which is paid back to the IRS
over 15 years.
 
-John Wall
CENTURY 21 Results
for more information about this and other real estate topics, including MLS access, please visit www.TeamResults21.com


11:39 AM GMT  |  Read comments(0)

September 07

Fixer Uppers
 

fixerupper

When I talk to a potential home buyers, the topic of fixer uppers comes up during the initial consultation almost everytime. It seems everybody wants a fixer upper these days. Perhaps its the hope that if property needs a little work, they'll be able to buy it at bargain. Let me say that; yes sometimes you can get a bargain
if you're willing to get your hands dirty. But more often than not, buyers don't really 'want' a fixer, especially after I show them a few. What buyers really want is a bargain. What constitutes 'a bargain' can vary greatly from one property to another, and also among different buyers. Different neighborhoods can affect the perception of a bargain too. In my Long Beach neighborhood we have quite a few homes well over the $1 million price range. Spending a million dollars on a home might not seem like a bargain to most buyers but if that home is surrounded by $3 million dollar homes then suddenly that million dollar home starts looking like a steal.
 
I would like to take a few moments to look at some myths and facts about fixer uppers in our marketplace. Obviously some points may not be true 100% of the time, but overall - I think they hold up. Understanding these things will help buyers make better decisions and yield a higher satisfaction regarding their purchase over the long run.
 
Myth
I can get a fixer that only needs minor repairs
Fact
A home that only needs 'minor repairs' isn't a fixer. Its every home on the
market.
Myth
If I do a little paint and landscaping I can save a lot of money
Fact
Yes you can save money by painting and lanscaping yourself. But you wont
save much on the purchase. Every home needs a little TLC, and cosmetic
changes. Thats what people do when they buy a home - They customize it
to fit their own lifestyle and design ideas.
Myth
This home needs a new roof, plumbing repairs, and new windows or doors. Its 80,000
less than the one next door. Lets buy it!
Fact
Yup! You just paid 80,000 less than everyone else on the block. You might have
also just bought a money pit. The need for extensive repair work often indicates
hidden problems that may cost so much that what you saved is now irrelevant.
You can see where this list is going, and just like the energizer bunny,
it keeps going, and going, and going...
One lesson to learn from these examples is spending more initially, may be
the best way to get a bargain in the long term.
If I've turned you off of looking for bargains or fixers, that wasn't my intent.
Lets go over some things I look for when considering a 'fixer upper'.
Outdated fixtures or appliances
 updating these yields the highest return when its time to sell

Enough space to add an additional bedroom or bathroom
 1. a home that grows with the family will remain useful longer
 2. the value of such additions at sale time means higher sale price, and better appreciation
Outdated facade.
 yeah, that remodel job they did in the 70's sure looked great, but now people want
double pane windows, central air, stucco, siding, brick, etc. This situation requires
some consideration because it might mean a big project. But it could also mean instant
appreciation.
Deferred Maintenance.
 Not necessarily in need of major repairs, but maybe the paint is peeling, the roof
has some cracked tiles, the T.V. antenna is leaning, sprinklers water the street instead of
the lawn (and speaking of lawns... Is that crabgrass?). You get the idea. This is the stuff
that is fixed with a hammer, screw driver, and a wrench, not a construction crew.
When we're talking about low level things like these, we're not really looking at
huge price reductions, but overall value and ways to help the value increase over
time. Besides a good listing agent has already taken these things into account before
setting the asking price. Getting a credit for this or that, or maybe asking the
seller to complete some repairs before escrow closes might be just as good as paying
80,000 less.
 
So the next time you call me to look at fixer uppers, let me know ahead of time if what you
really want is a bucket of paint, or a bulldozer. I'm only a phone call away from either!
 
 
John Wall
REALTOR
CENTURY 21 Results
Can you think of other 'fixer' myths? How about sharing your 'fixer' stories? Lets hear from you!


2:51 PM GMT  |  Read comments(0)

Mortgage Giants go into conservatorship
September 7, 2008
The Office of Federal Housing Enterprise Oversight has announced
this morning, it is placing mortgage giants under conservatorship
in an effort to stabalize their ability to perform under tighter
credit restrictions and low economic growth.
OFHEO cited the importance of these organizations and their
role in residential real estate in their press release issued
Sunday morning.
James Lockhart, Director Federal Housing Finance Agency, has taken
steps over the past six months to help stabilize Fannie and Freddie
including reducing capital requirements, removing portfolio caps, and others.
"I have determined that the companies cannot continue to
operate safely and soundly and fulfill their critical public mission".
Lockhart said.
Also released was a conservatorship Q & A which defines the conservators role
as well as the actions they will take.
View the conservatorship Q&A here
http://www.ofheo.gov/media/pdf/FHFACONSERVQA.pdf
 
John Wall
Realtor
 


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September 06

Blog Post
September 6, 2008

Long Beach - California

39,507 new and resale houses and condos were sold
in July (up 12.2 percent from month prior).

Almost half of all the homes sold in California
last month were foreclosure re-sales.

The average mortgage payment for a median home
sold last month is around $1500.00. Which, if
adjusted for inflation, would take those payments
to what they were in 2002.

Down payments and flipping (quick turn around) are
stable, while adjustable rate mortgage activity
is at an all time low.

John Wall
Residential & Investment Properties
CENTURY 21 Results
www.TeamResults21.com

TeamResults@CENTURY21.COM

Visit the website for valuable guides, how-to's, and other important information. Also, access properties for sale, foreclosure properties, VA, FHA, and other investment opportunities.


John Wall
Residential & Investment Properties
CENTURY 21 Results
www.TeamResults21.com
(562) 449-8421 (Mobile)
(562) 408-2121 (Fax)

Visit the website for valuable guides, how-to's, and other important information. Also, access properties for sale, foreclosure properties, VA, FHA, and other investment opportunities.

11:04 PM GMT  |  Read comments(0)

July 29

Notices of Default Filed (From DQNEWS.COM)

DQNews.com reports the following notice of default activty. (A notice of default is the precurser to foreclosure)

Notices of Default
houses and condos

County/Region           2007Q2      2008Q2      Yr/Yr%
                                                
Los Angeles             10,393      21,632      108.1%
Orange                   2,984       7,348      146.2%
San Diego                4,383       9,519      117.2%
Riverside                6,648      14,974      125.2%
San Bernardino           5,141      11,817      129.9%
Ventura                  1,059       2,303      117.5%
Imperial                   220         635      188.6%
Socal                   30,828      68,228      121.3%
                                                         
San Francisco              257         418       62.6%
Alameda                  1,612       3,812      136.5%
Contra Costa             2,316       5,046      117.9%
Santa Clara              1,275       3,751      194.2%
San Mateo                  463       1,066      130.2%
Marin                      118         284      140.7%
Solano                   1,065       2,427      127.9%
Sonoma                     462       1,376      197.8%
Napa                       128         336      162.5%
Bay Area                 7,696      18,516      140.6%
                                                         
Santa Cruz                 155         531      242.6%
Santa Barbara              434         922      112.4%
San Luis Obispo            208         499      139.9%
Monterey                   483       1,688      249.5%
Coast                    1,280       3,640      184.4%
                                                         
Sacramento               3,840       7,325       90.8%
San Joaquin              1,983       4,795      141.8%
Placer                     627       1,122       78.9%
Kern                     1,593       3,459      117.1%
Fresno                   1,380       2,821      104.4%
Madera                     215         555      158.1%
Merced                     642       1,936      201.6%
Tulare                     428       1,099      156.8%
Yolo                       232         548      136.2%
El Dorado                  222         442       99.1%
Stanislaus               1,286       3,464      169.4%
Kings                       75         188      150.7%
San Benito                 122         290      137.7%
Yuba                       171         373      118.1%
Colusa                      39          92      135.9%
Sutter                     109         374      243.1%
Central Valley          12,964      28,883      122.8%
                                                         
Mountains*                 328         662      101.8%
                                                         
North Calif*               847       1,412       66.7%
                                                         
Statewide*              53,943     121,341      124.9%

* includes additional counties

Visit www.TeamResults21.com or http://therealtyreport.blogspot.com for more real estate news and resources, as well as homes for sale or rent in southern california.

 



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May 22

California Housing Affordability
The California Association of Realtors announced today, the results
of the First-Time Buyer's Affordability Index for the first quarter of
2008.
 
The affordability index rose 11 points, at 44%. Translate that to
just under half of consumers in California can afford to purchase an
entry level home.
 
The report goes on to say that the minimum income
needed to qualify for a mortgage in California was 30% lower than this time
last year. Meaning only $67,830 in annual income is needed to qualify for
an entry level purchase, compared to the $97,000 that was required last year.
 
Great news for homebuyers, and an indicator that the Real Estate market in
California is still going strong. to see the numbers and the full press release visit
http://www.car.org/index.php?id=Mzg0ODk= or http://www.teamresults21.com


7:50 AM GMT  |  Read comments(0)

May 15

Seller Credit vs. Price Reduction
When buyers decide that they want to make an offer to purchase a property, often their fist instict is to offer less than asking price. This stems from a desire to save money, which we all want to do, and can perfectly understand. There is a problem with this approach though. In market where a property will see multiple offers (yes, even now, we are seeing many properties that are in a bidding war), you as a buyer stand a chance to loose out in the end. There are hundreds of ways to save money with real estate and during a consultation with us, we'll show you each and every way!
 
Here we present a scenario, in which the buyer saves a significant amount of money, without the hassle of having to justify a "low-ball" offer, or risk offending the seller (which is even worse).
 
 


Scenario #1 (traditional sale) Scenario #2 ($20,000 'low-ball') Scenario #3 (seller credit, 20k)
Sales Price $550,000 $530,000 $550,000
20% Down Payment $110,000 $106,000 $110,000
Loan Amount $440,000 $424,000 $440,000
30 Year Fixed Rate 6.25% 6.25% 5.0%
Payment $2,709 $2,610 $2,362
Savings of None $99 $347
As we can see, asking the seller to credit some money (at closing) toward buying down the interest rate, we have a greater savings over just asking for a discount on the purchase price. An additional benefit to this method is, a buyer who barely qualifies, or doesn't qualify at all, using the traditional, or discounted numbers, now qualifies with the seller credit because, the payment is less of a burden on Mr. Buyer's income ratio.


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May 09

30 Year Fixed Rates Drop Slightly

Daily Real Estate News  May 9, 2008

Freddie Mac Chief Economist Frank Nothaft says the housing slump, along with rising mortgage delinquencies and foreclosures, has taken a toll on homeownership rates and prevented significant movement in mortgage rates during the week ended May 8.

The 30-year fixed rate slipped to 6.05 percent from 6.06. The 15-year fixed rate bumped up to 5.60 percent from 5.59 percent.
 
Source;Realtor.org, et al.
 
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April 06

Home Buyer's Fair April 12, 13 9am-6pm Los Angeles Convention Center
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the “Los Angeles Times” are sponsoring the Southern California Home Buyer’s Fair at the Los Angeles Convention Center on April 12 and 13 from 9 a.m. to 6 p.m.

The event is free to the public and features more than two dozen educational “how-to” seminars designed to help home buyers navigate today’s real estate market with confidence and peace of mind. Seminar topics range from understanding home prices and monitoring and fixing credit to applying for a mortgage and the importance of the home inspection. Many of the seminars will be presented in both English and Spanish.

The Southern California Home Buyer’s Fair (www.homebuyersfair.com) also will feature more than 75 exhibit booths, where attendees can obtain information from industry experts about a vast range of programs pertaining to homeownership and the home-buying process.

The first 200 attendees to present an entrance coupon on each day will receive a free movie ticket (one ticket per person).

For complete information, go to www.homebuyersfair.com.
 
Visit http://teamresults21.com for more information, or contact us if you would like passes sent to you.


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April 05

February 2008 Home Sales Report

March 14, 2008

A total of 20,513 new and resale houses and condos were sold statewide last month. That makes it the slowest February in DataQuick's records, which go back to 1988. Sales were up 7.1 percent from 19,145 in January and down 34.3 percent from 31,228 for February last year.

The median price paid for a home last month was $373,000, down 2.6 percent from $383,000 for the month before, and down 21.0 percent from $472,000 for February a year ago. The median peaked last March/April/May at $484,000.

Around half the drop in median is due to shifts in the types of homes selling, and how those homes are financed. Last month 15.5 percent of the state's financed home purchases were purchased with "jumbo" loans over $417,000. A year ago it was 37.3 percent.

The typical mortgage payment that home buyers committed themselves to paying last month was $1,665. That was down from $1,743 in January, and down from $2,196 for February a year ago. Adjusted for inflation, mortgage payments are back to where they were four years ago. They are 22.2 percent below the spring 1989 peak of the prior real estate cycle. They are 32.8 percent below the current cycle's peak in June 2006.

DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. The numbers cover all sales, new and resale, houses and condos.

Indicators of market distress continue to move in different directions. Foreclosure activity is at record levels, financing with adjustable-rate mortgages is at a six-year low. Down payment sizes and flipping rates are stable, non-owner occupied buying activity is increasing, DataQuick reported.



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