Tax Credit Extended – Repeat Buyers Eligible

Congress passed the Homebuyer Tax Credit Extension. Here are the main facts that you should know:

* The tax credit has been extended to April 30, 2010.

* Repeat buyers who have owned their homes for at least 5 years are now also eligible for a credit of up to $6,500 from the government.

* If you’re a first-time homebuyer you may be eligible for a credit up to $8,000.

* To qualify, buyers have to sign purchase agreements by April 30, 2010 and have 60 days to close by June 30, 2010.

* The credit is available for the purchase of principal homes costing $800,000 or less.

* The new tax credit has increased income limits.

* Individuals with annual incomes up to $125,000 and up to $250,000 for joint filers are now eligible before the credit begins to phase out.

* The credit is equal to 10 percent of the purchase price of a primary residence.

* Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment.

* Taxpayers who want immediate refunds can amend their tax returns for 2008 to claim the credit.

* Those who sell their new home or stop using it as their main residence within three years would have to repay the credit.

* You must be at least 18 year of old to claim the credit.

Homes selling for closer to list price

U.S. homebuyers paid 3.3 percent less than listing price, on average, during July — a smaller discount than the 3.5 percent average in June and 4.6 percent in January, listing and valuation site Zillow.com said.

At the market level, Zillow’s July Real Estate Market Reports shows buyers paid the asking price or more in some California markets where sales are heating up.

In the El Centro metropolitan statistical area (MSA), one of 161 tracked by Zillow’s report, buyers paid 1.8 percent more than listing price. In seven California markets — Sacramento, Merced, Modesto, Riverside, Stockton, Yuba City and Fresno — the asking price and sale price were the same, on average.

Zillow attributed declining discounts from listing price to increased sales and a high proportion of foreclosures resales, which are already priced relatively low.

Homebuyers in Florida had the most negotiating power in July, Zillow said. Buyers in the Vero Beach metro area paid 10.2 percent less than the last listing price, on average.

Other Florida cities ranking in the top 25 markets for discounts from list price were Sarasota (8.2 percent discount), Naples (7.8 percent), Daytona Beach (7.5 percent), Miami-Fort Lauderdale (7.5 percent), Panama City (7.1 percent), Punta Gorda (7 percent), Melbourne (6.6 percent), Ocala (6.4 percent), Tampa (6.1 percent), Jacksonville (6 percent), Port St. Lucie (5.7 percent), Gainesville (5.5 percent) and Lakeland (5.5 percent).

Zillow reported that 22.8 percent of homes listed for sale on Zillow.com had at least one listing-price reduction as of Sept. 1, with a median reduction of 6.5 percent from the original listing price. Homes listed for sale on Zillow during August were listed for a median 96 days, up from 91 in July.

Source: Inman News

Pending Home Sales On the Rise

Pending sales are a great indicator of activity in a market.  According to the National Association of Realtors, it’s Pending Home Sale Index, a foward looking indicator based on contracts signed in May,  pending sales in May of 2009 were 6.7% higher than May of 2008.  This marks the 4th straight monthly gain – the last time there were 4 consecutive monthly gains was in October of 2004.  The pronounced increase in April and the fact that May sustained this rise does indicate that number of home sales are poised to rise in the coming month or two.

Appraisal Check List

Here are some of the factors that appraisers Joni L. Herndon of Real Property Analysts/Gulf Coast in Tampa, Fla., and John A. Hillas of Hulbert & Associates Inc. in Modesto, Calif., say they consider when determining value.

Seller Incentives and concessions. Most of today’s buyers expect to pay the lowest possible price and still get some extras. Sellers and home builders are offering money toward closing costs, remodeling and decorating, upgrades, and association dues. The price set initially may not be the final price once concessions are factored out. Appraisers care about that final number.

Closing date. Forget what comparable neighborhood houses sold for a few months back. Appraisers want prices from the most recently closed transactions. “If a sale was more than 45 days ago, even 35, the price may be irrelevant,” Hillas says.

Condition and curb appeal. Appraisers typically find several properties with similar interior and exterior features to determine value. When markets are healthy, blemishes matter less, but when markets soften, problems—a dated kitchen or barren lawn—can reduce prices and deter buyers. “The difference in value is not just the repair costs but the time and hassle to make them. It’s better for sellers to do work in advance,” Hillas says.

Foreclosures. Appraisers technically shouldn’t consider neighborhood foreclosures when valuing a home, since foreclosures don’t meet the Appraisal Institute’s definition of a property reasonably exposed in a competitive market, says Herndon. “But when several neighborhood homes are abandoned, it’s hard not to caution sellers that this is a troubling trend and may affect home values,” she says.

Changing demographics. If a house is in an up-and-coming area, the value can be expected to rise. A location that’s perceived as safe also may help attract the increasing number of single female buyers.

Economic clouds. If there’s an oversupply of comparable homes for sale, or if the local job market is suffering, buyers may be hesitant to invest. Hillas advises setting prices aggressively from the get-go.

Chemistry. It’s hard to account for those times when buyers fall in love with a house, despite a high price, poor condition, or tough economy. “Emotional attachment is a factor that can’t be predicted,” says Herndon. Hillas agrees, “It’s what makes it harder to appraise homes versus commercial buildings, where buyers care more about the bottom line.”

8 Quick Fixes to Increase Home Value

With buyers scarcer, sellers must up the ante to convince them that their property offers what many want most — top value for dollar expended. Here are eight fast fixes:

1. Buff up curb appeal. You’ve heard it before, but it’s critical to get buyers to want to look on the inside. Be objective. View listings from the street. Check the condition of the landscaping, paint, roof, shutters, front door, knocker, windows, house number, and even how window treatments look from the outside. Add something special—such as big flower pots or an antique bench — to help viewers remember house A from B.

2. Enrich with color. Paint’s cheap, but forget the adage that it must be white or neutral. Just don’t  get too avant-garde with jarring pinks, oranges, and purples. Instead choose soft colors that say “welcome,” lead the eye from room to room, and flatter skin tones. Think soft yellows and pale greens. Tint ceilings a lighter shade.

3. Upgrade the kitchen and bathroom. These make-or-break rooms can spur a sale. But besides making each squeaky clean and clutter-free, update the pulls, sinks, and faucets. In a kitchen, add one cool appliance, such as an espresso maker. In the bathroom, hang a flat-screen TV to mimic a hotel. Room service, anyone?

4. Add old-world patina. Make Andrea Palladio proud. Install crown molding at least six to nine inches in depth, proportional to the room’s size, and architecturally compatible. For ceilings nine feet high or higher, add dentil detailing, small tooth-shaped blocks used as a repeating ornament. It’s all in the details, after all.

5. Screen hardwood floors. Buyers favor wood over carpet, but refinishing is costly and time-consuming. Screening cuts dust, time, and expense. What it entails: a light sanding, not a full stripping of color or polyurethane, then a coat of finish.

6. Clean out, organize closets. Get sorting—organize your piles into “don’t need,” “haven’t worn,” and “keep.” Closets must be only half-full so buyers can visualize fitting their stuff in.

7. Update window treatments. Buyers want light and views, not dated, fancy-schmancy drapes that darken. To diffuse light and add privacy, consider energy-efficient shades and blinds.

8. Hire a home inspector. Do a preemptive strike, since busy home owners seek maintenance-free living. Fix problems before you list the home and then display receipts and wait for buyers to offer kudos to sellers for being so responsible.

10 Popular Kitchen and Bath Trends

See what David Alderman, vice president of the National Kitchen & Bath Association, discovered in touring the floor at NKBA’s recent annual convention.

Green. With the green wave spreading, manufacturers are bringing out more products like stainless steel and glass that can be reused when life cycles are up. Plus, growing in popularity are more products that save energy, conserve water, and are made locally.

Beyond granite. Granite countertops may still reign because they’re practical, but glass, stainless steel, and mahogany are gaining a foothold.

Black and white kitchens. The all-white kitchen is being tweaked with crisp black. One example: white cabinets on the perimeter, black on the island.

Faster, healthier. Steam ovens will captivate health-conscious buyers who also desire moist food cooked quickly.

Less space. With many people now opting to downsize, manufacturers are debuting smaller 15” refrigerators and 18” dishwashers. Less space also means fewer multiples—one instead of two sinks. Mirrored backsplashes and higher vaulted ceilings also help to magnify space.

Greater value. To keep prices down for cost-conscious, value-oriented home owners, manufacturers are limiting selections but maintaining quality.

Multiple levels. The two-tiered island in multiple colors has gained ground to provide an upper-level eating and serving ledge that conceals dishes in the sink on the lower level. Wine coolers are often built in for entertaining pleasure.

Less maintenance. Since saving time and expense are on home owners’ minds, manufacturers now deliver longer warranties on everything from equipment to hinges and finishes.

More modern. Simple, straight contemporary lines, floating cabinets, and no toe kicks offer the hot contemporary look.

Dual, more private. Toilets with dual flushes are catching on, as is placing a toilet in its own private cubicle.

For more information, go to www.NKBA.org.

Estimates indicate most homes are undervalued by 12.2%

10 Most Undervalued U.S. Cities

Housing research organization IHS Global Insight estimates that the average U.S. home is undervalued by 12.2 percent, and many previously pricey communities are undervalued by considerably more.

A recent study released by IHS used home prices, interest rates, area incomes, population density, and historic premiums and discounts to analyze housing values. It examined 330 markets and found homes are underpriced in 248 of them.

Despite the high percentage of undervalued areas, IHS says “it is too early to call a bottoming,” as “job losses continue, housing inventories remain elevated, and consumers remain wary in light of economic uncertainty.”

Here are the 10 most undervalued areas:

1. Vero Beach, Fla., -42.5 percent
2. Houma, La., -41.4 percent
3. Las Vegas, -40.9 percent
4. Merced, Calif., -40.1 percent
5. Cape Coral, Fla., -39.1 percent
6. Houston, -36.9 percent
7. Midland, Texas, -34.8 percent
8. Lafayette, La., -34.4 percent
9. Vallejo, Calif., -34.3 percent
10. Stockton, Calif., -34.3 percent

Source: CNNMoney.com, Les Christie (06/04/2009)

The outlook us UP

EHS – Existing-home Sales: 4.57 million

Seasonally adjusted annual rate, which is the actual rate of sales for the month, multiplied by 12 and adjusted for seasonal sales differences.

PHSI – Pending Home Sales Index: 84.6

The Pending Home Sales Index measures housing contract activity. An index of 100 is equal to the level of activity during 2001, the benchmark year.

Source: NAR Research

Sales Dip, But Outlook Is Up

The pace of existing-home sales slowed 3 percent in March to 4.57 million units, giving up some of the gains it had seen in February. Yet the easing could be short-lived because NAR’s forward-looking Pending Home Sales Index is up. The index gained 3.2 percent to a level of 84.6. NAR says first-time buyers make up half of those in the market, drawn by low rates and the first-time buyer tax credit.

*Numbers are adjusted from figures published in the May 2009 issue.

Buyer Traffic Drives Optimism

Practitioners’ expectations for sales activity over the next six months continue to trend up. In April, practitioners said they expected improved conditions, led by gains in buyer traffic. Confidence has been on an upward swing since December.

Results are based on 2,758 responses to 6,000 surveys sent to large and small real estate offices. The survey asks practitioners to indicate whether conditions are strong (100 points), moderate (50), or weak (0). Responses are averaged to derive results.

Lawrence Yun// <![CDATA[// | June 2009

Sellers – What if the Appraisal misses the mark?

What can be done if a home appraisal comes in dramatically lower than the agreed-upon sale price?

Lenders will consider an appeal, but sellers must provide them with evidence.

Start by examining the appraisal carefully for errors. If the appraiser missed one of the bathrooms, miscalculated the square footage, or didn’t note the garage, the seller has grounds for an appeal.

Look at the comparables: Are the homes used as comparison in a different and more challenged school district, are they in the same condition? Is the comparable home next door to something undesirable? If possible, pull some more realistic comps.

Source: The Wall Street Journal, James R. Hagerty (06/09/2009)

Tips for Selling in a Buyer’s Market

It’s a buyer’s market, but don’t despair.

If you must sell your home, you can increase your chances of selling your house in a reasonable time by following a few good guidelines.

First, face reality. A successful home sale begins before the house is listed, when you decide not to expect to make a killing. If you must sell, all you can do in a declining market is to have the best possible product out there priced where it should be priced. Not what you wish you could get, not what the neighbor got two years ago or last year, but at the price you should and can get now. That’s the reality.

It takes discipline to face that reality; humility, too. Don’t let your ego get in the way when you’re trying to sell. Buyers do not care that your friend got more for their house when they sold it six months ago. Also, don’t be unrealistic and think that housing prices in your area, or street, have not declined. While real estate is a local business, and some areas have maintained their values better than others, it is highly unlikely that your particular home has not been affected by the decline in housing values.

Second, look at the good deals being offered in your neighborhood. Shop the competition on the market right now. Get out in the car and spend a weekend looking at everything you can. Visit some weekend open houses. Just get a feel for what buyers are looking at.

Third, make it a turnkey, not a turkey. The word “turnkey” means a home that is move-in ready. If you want to sell for top dollar, your house must be in tip top condition, especially when buyers have so many houses to choose from. Buyers never want to buy a house that needs a lot of work unless it’s an absolute bargain. You have to take away all their opportunities to say no.

Fourth, offer incentives. Besides a low price, incentives for buyers include paying discount points to lower the mortgage rate, paying closing costs or providing flexibility about the move-in date.

90% of buyers are working with a buyer’s agent. Consider offering a premium to the buyer’s agent. Add a half point or a point to the commission. It may not cause the deal to happen, but it can attract a little more attention and make your home stand out.

Fifth, and most important, price realistically and competitively.

It takes research, often conducted by a real estate agent, to come up with a realistic asking price, and discipline to abide by it.

In a seller’s market, sellers typically ask for 10% to 20% more than they expect to get. You simply don’t have that luxury in a buyer’s market. In a buyer’s market sellers should ask for just 3% to 5% more than you realistically expect to get. Another effective strategy is to price your home BELOW market value – you will be surprised how many offers you get and your home will likely sell for more than what you anticipated. Setting an aggressive asking price attracts more prospective buyers to your door, discourages lowball offers and saves negotiating time. You’ll know fairly quickly whether buyers are willing to meet you or not. In a market where prices are falling, asking prices must fall too.

If you’re considering selling your home, give me a call. I would be happy to provide a professional Comparative Market Analysis on your home, answer any questions and address any concerns you may have. No obligation. No pressure. You may reach me directly at (818) 339-5466.

Adeline Miele
The BZPros Real Estate Team
Keller Williams Realty

Donald Trump on the Real Estate Market

Watch this video to see what Donald Trump has to say about the current Real Estate Market.   (He come’s on after the commercial, be patient – it’s worth the wait!)

Safety Tips for Home Sellers

• Once you list your home for sale, never leave a message on your answering machine informing callers that you are not home. It’s better to leave a message that says you are unavailable to answer the phone right now.
• Never set an appointment with anyone to see your home unless you have their name and number and have called back to verify that number.
• For security’s sake, before you conduct an open house, remember to remove keys, credit cards, jewelry, crystal, furs and other valuables from the home or lock them away during showings. Also remove prescription drugs. Some seemingly honest people wouldn’t mind getting their hands on a bottle of Viagra, uppers or downers.
• Consider hiring a security guard, especially if you have many valuables you can’t remove.
• Request that all visitors sign in a guest book or roster. You are giving away a lot of information about your house and you have a right to know who is getting that information. Feel free to explain to protesters that it’s a security measure. Certainly some visitors will use a false name but at least they will be aware of your organized procedures and might think twice about victimizing you.
• Request that visitors enter and leave through one door only, except when you escort them to the back yard, garage, etc. You should personally have quick and easy access to all your exits.
• Without hovering, escort prospective buyers through your home by following them (never leading them) and keeping them within sight at all times. Keep a reasonable distance between you and your visitor. Never enter a bedroom, den or other room with a visitor. You could be trapped inside. Keep your path clear for a speedy exit.
• If you expect a crowd, draft a few friends and relatives to help out. If simply too many show up, ask some to wait outside for the next “tour”. If the market is simply loaded with shoppers, schedule appointments.
• Never discuss your personal schedule or habits with potential buyers. Statements like “We are so near the work center, I can leave my home at 8:45 and arrive by 9,” tell potential criminals when you aren’t home. Likewise, don’t discuss issues involving your home security including deadlock bolt locks, security systems, alarms etc. Don’t divulge information on your flyer or other marketing tools that might breech security.
• Always let someone who is not at the open house know what hours you are conducting your open house and have them check in on you from time to time. When open house has ended call your friend and let them know all is well.
• Don’t park your car in your garage or driveway. Your exit could be blocked. Also don’t allow other cars to use or block your drive way.
• Carry a cell phone with you at all times with a single button programmed for a 911 call. If a friend is assisting, consider using two way radios to stay in touch.
• After an open house, check all the windows, doors and other entrances to make sure they are locked.
  

  Adeline Miele, Realtor

  The BZPROS Real Estate Team

  Direct (818) 339-5466

  Toll Free (800) 941-2297

  www. BZPROS.com

Is now the time to downsize?

Today’s Real Estate market creates opportunity for those homeowners looking to downsize, such as empty nestors.   Knowing you’re working with less equity in your current home than last year,  many of you are wondering whether or not this is the right time to make the move.  This article from Time Magazine offers some great insight for empty nestors or anyone looking to downsize.  Read full article

Common Misconception Keeps Investment Profits in the Hands of the Wealthy

 “The wealthy are trolling for bargains,” snipes Blanche Evans of RealtyTimes.com. Evans’ comments betray a limiting viewpoint common to working-class Americans. Many people believe that investing – whether in business, stocks, or real estate – is only for those who are already wealthy. In reality, investing is the easiest way to grow wealthy, and the reason that wealthy investors are “trolling for bargains” is because they are aware of this fact and are eager to take advantage of the phenomenal opportunity created by the current housing situation.

Limited viewpoints cause people to exclude themselves from investment opportunities – and therefore the opportunity to be financially free – before they even try. Further supporting this picture are the results of a University of Michigan study on consumer sentiment, reported on by RealtyTimes.com’s Kenneth R. Harney. While the study found that people do see opportunities in the declining real estate market, it also showed that people are too worried about losing their jobs as a result of a recession to take action on those investment opportunities. They have taken themselves out of the game before they even step on the field!

T. Harv Ecker, author of Secrets of the Millionaire Mind and founder of Peak Potentials training, teaches that beliefs like “investing is only for rich people” and “investments are too risky” are what hold working-class citizens back from reaching their full financial potential. Real Estate is known to be the most solid long-term investment one can make, and can be quite reliable as a short-term investment if one has educated oneself to make smart decisions. Peak Potentials offers several courses on investment that will be beneficial to poor, middle-class, and rich people alike; Peak Potentials training comes highly recommended by this blogger, whose viewpoint, drive, confidence, and general level of happiness were all radically improved after attending the Millionaire Mind Intensive 3-day seminar. To get a glimpse of what the seminar is like, take a look at the free online teleseminar!

Other Resources:
Investment training & resources from http://www.mikewatsoninvesting.com/
How to Buy Stocks from http://www.ehow.com/
Investing in Real Estate from moneycentral.msn.com
Your Financial Health from http://www.brookestephans.com/
Try buying stocks online through www.sharebuilder.com/
T. Harv Ecker’s Rich Life Club (membership fee)

Articles used in this post:
http://realtytimes.com/rtpages/20080417_realtyviewpoint.htm http://realtytimes.com/rtpages/20080417_realestateoutlook.htm http://www.realestateabc.com/insights/roi.htm

“What Is A Short Sale?”

Sellers Advice In Today’s Challenging Real Estate Market