Well, things are moving in the San Francisco Bay area (also known as Silicon Valley), especially REO's (Bank Owned Proeprties). If you want a deal, you'll have to move fast and many are. It's amaing to me the amount of cash that has recently come out of the woodwork. Most buyers for these types af properties are putting 50% or more down or just flat foregoing financing all together and paying cash. THe competition is getting stiff and the inventories are drying up. With interest rates slowly rising and as the summer months pass us by, mor than that weather is heating up.
A word to the wise...if you want to be ready to catch a good deal, have your ducks lined up in a row ahead of time. Get that pre-approval (OR BETTER YET) approval letter in your hands now, before you go out and shop for properties. Also, make sure your Realtor addresses some special verbiage in your offer that states that the financing contingency will not be lifted until the close of escrow. Due to recent times, lenders are ordering a second appraisals right before the close of escrow. If that second appraisal comes back lower than the sales price, you the buyer will be in breach of contract for specific performance if you fail to make up the differennce in order to close. Now that would really steal the joy that surrounds the purchase of a new home wouldn't it?
Friday, July 10, 2009
Sunday, June 28, 2009
Zoo of an open house
An example of what's happening with bank owned properties (REO's) and short sales in Santa Clara County (Silicon Valley) these days. I held open a house in Gilroy (bank owned) today and within 1 hour I had over 25 groups come through. I learned that the subject property has 25 offers on the table that the bank is looking over and considering. Values did go down, but it seems that things are rebounding. This is great news for the rest of the country!
"This open house I met a client at was crazy. Turns out its a short sale that is priced $160 below the 90 day median home price for the neighborhood for the size of home. At one point I counted more than 30 people in the 1100 SqFt home and about 50 outside with a traffic jam of people trying to park. Plus there was one traffic accident." (Louis Stone-Collonge- Keller Williams Realty, 6/27/09)
Friday, June 26, 2009
Real Estate Improves in California
Median prices for single-family homes in California have risen for the third straight month, reaching $267,570, up 4 percent from April, according to a report from the California Association of REALTORS®.
The inventory of homes continues to drop, falling a 4.2-month supply in May, compared to 8.7 month supply in May 2008.
California’s real estate market always has been seen as a leading indicator for the rest of the country. What is happening in California bodes well for the rest of the nation, observers say.
Source: The Wall Street Journal, Stu Woo (06/26/2009)
The inventory of homes continues to drop, falling a 4.2-month supply in May, compared to 8.7 month supply in May 2008.
California’s real estate market always has been seen as a leading indicator for the rest of the country. What is happening in California bodes well for the rest of the nation, observers say.
Source: The Wall Street Journal, Stu Woo (06/26/2009)
Thursday, June 18, 2009
Stimulus Plan - Tax Credit for Homebuyers
The $787 Billion stimulus bill is made up of tax cuts and spending programs aimed at reviving the US economy. Although the package was scaled down from nearly $1 Trillion, it still stands as the largest anti-recession effort since World War II. One of the major benefits of the plan is a tax credit for new home buyers. According to the plan, first-time home buyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit.
It's important to remember that the $8,000 tax credit is just that... a tax credit. The benefit of a tax credit is that it's a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if you were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, you would owe nothing.
Better still, the tax credit is refundable, which means you can receive a check for the credit even if you have little income tax liability. For example, if you're liable for $4,000 in income tax, you can offset that $4,000 with half of the tax credit... and still receive a check for the remaining $4,000!
The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.
The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying "homes" include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured or homes and houseboats used for principle residence also qualify. Buyers will have to repay the credit if they sell their homes within three years.
2008:The following excerpt is from IRS.gov …
http://www.irs.gov/newsroom/article/0,,id=186831,00.html
2009:The following excerpt is from IRS.gov …
http://www.irs.gov/newsroom/article/0,,id=204671,00.html
It's important to remember that the $8,000 tax credit is just that... a tax credit. The benefit of a tax credit is that it's a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if you were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, you would owe nothing.
Better still, the tax credit is refundable, which means you can receive a check for the credit even if you have little income tax liability. For example, if you're liable for $4,000 in income tax, you can offset that $4,000 with half of the tax credit... and still receive a check for the remaining $4,000!
The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.
The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying "homes" include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured or homes and houseboats used for principle residence also qualify. Buyers will have to repay the credit if they sell their homes within three years.
2008:The following excerpt is from IRS.gov …
http://www.irs.gov/newsroom/article/0,,id=186831,00.html
2009:The following excerpt is from IRS.gov …
http://www.irs.gov/newsroom/article/0,,id=204671,00.html
Wednesday, June 17, 2009
Do Not DIAL AREA CODES 809, 284, OR 876
Do Not DIAL AREA CODES 809, 284, OR 876
THIS IS VERY IMPORTANT INFORMATION PROVIDED TO US BY AT&T. DON'T EVER DIAL AREA CODE 809
This one is being distributed all over the US .. This is pretty scary, especially given the way they try to get you to call.
Be sure you read this and pass it on.
They get you to call by telling you that it is information about a family member who has been ill or to tell you someone has been arrested, died, or to let you know you have won a wonderful prize, etc.
In each case, you are told to call the 809 number right away. Since there are so many new area codes these days, people unknowingly return these calls.
If you call from the U.S. , you will apparently be charged $2425 per-minute.
Or, you'll get a long recorded message. The point is, they will try to keep you on the phone as long as possible to increase the charges.
WHY IT WORKS:
The 809 area code is located in the Dominican Republic ..
The charges afterward can become a real nightmare. That's because you did actually make the call. If you complain, both your local phone company and your long distance carrier will not want to get involved and will most likely tell you that they are simply providing the billing for the foreign company. You'll end up dealing with a foreign company that argues they have done nothing wrong.
Please forward this entire message to your friends, family and colleagues to help them become aware of this scam.
AT&T VERIFIES IT'S TRUE :
http://www.att.com/gen/press-room?pid=6045 http://www.att.com/gen/press-room?pid=6045
SNOOPS VERIFIES IT'S TRUE:
http://www.snopescom/fraud/telephone/809.asp
THIS IS VERY IMPORTANT INFORMATION PROVIDED TO US BY AT&T. DON'T EVER DIAL AREA CODE 809
This one is being distributed all over the US .. This is pretty scary, especially given the way they try to get you to call.
Be sure you read this and pass it on.
They get you to call by telling you that it is information about a family member who has been ill or to tell you someone has been arrested, died, or to let you know you have won a wonderful prize, etc.
In each case, you are told to call the 809 number right away. Since there are so many new area codes these days, people unknowingly return these calls.
If you call from the U.S. , you will apparently be charged $2425 per-minute.
Or, you'll get a long recorded message. The point is, they will try to keep you on the phone as long as possible to increase the charges.
WHY IT WORKS:
The 809 area code is located in the Dominican Republic ..
The charges afterward can become a real nightmare. That's because you did actually make the call. If you complain, both your local phone company and your long distance carrier will not want to get involved and will most likely tell you that they are simply providing the billing for the foreign company. You'll end up dealing with a foreign company that argues they have done nothing wrong.
Please forward this entire message to your friends, family and colleagues to help them become aware of this scam.
AT&T VERIFIES IT'S TRUE :
http://www.att.com/gen/press-room?pid=6045 http://www.att.com/gen/press-room?pid=6045
SNOOPS VERIFIES IT'S TRUE:
http://www.snopescom/fraud/telephone/809.asp
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