peninsularealtor.com

It often is difficult for homeowners to objectively value their homes, which often reflects their sense of personal style.  However, by  consulting with a REALTOR®, using online resources, investigating neighborhood trends, and soliciting the opinion of friends, homeowners can arrive at a reasonably accurate appraisal.

 

• REALTORS® and real estate appraisers are the best sources of information on current market conditions. Consumers should begin the home valuation process by consulting with their REALTOR® or a local real estate appraiser. REALTORS® can provide homeowners with a list of homes that recently have sold in the area, and use that data to help determine the most accurate and competitive price for the home.

• Homeowners also can contact their local tax assessor’s or county clerk’s office, many of which post real estate transactions on their Web site.  The records will indicate what properties have recently sold in the neighborhood and the respective sales prices.  Consumers should look for homes that have sold within the last six months for a more accurate picture of current market conditions.

• Online sites such as zillow.com and trulia.com also provide free online home value estimators.  Consumers should be aware though that these sites derive some of their information from public records, including tax appraisals, and are subject to error.
  
  
• Some real estate experts recommend homeowners attend nearby open houses to see how their homes compare in size and amenities. Consumers also can consult the Marshall & Swift Residential Cost Handbook, which professional appraisers use to assess the value of features such as fireplaces, three-car garages, and the like.  The handbook costs $300 and is available in some business school libraries.  An online site,swiftestimator.com, enables homeowners to conduct an item-by-item calculation of the value of the home.  Online sites and books only should be used as guidelines though, and homeowners are advised to contact a real estate professional to help determine the current value of their home. read more from the NYTimes article
  
  
Source:CAR.org
Data:New York Times

Fannie Mae last week announced a new Deed for Lease™ program.  Deed for Lease allows borrowers to transfer their property back to the lender and then lease back the house at market rate.  The lease period is for up to 12 months, with possible month-to-month contract extensions after that period.  The program is designed for borrowers who do not qualify for or have not been able to obtain other loan-workout solutions, such as a loan modification.

To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance also may be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31 percent of their gross income. more

source: car.org

The past few weeks have been very favorable for home buyers and the real estate industry overall. President Obama signed a bill extending and expanding the federal tax credit for home buyers through April 30, 2010, and on Oct. 30 signed a resolution extending the current limits for Fannie Mae, Freddie Mac, and FHA loans through the end of next year.

These are important milestones that have and will continue to give real estate markets a shoot in the arm. 

It's a good time to buy a home. Take advantage of these incentives!

Real estate professionals do more for sellers than make the transaction easier.  We make them money!  In fact, the average seller who uses a real estate professional makes 16% more on the sale of their home than do sellers who go it alone.

That's an average of $123,840 per home!!

Real estate professionals assist both sellers and buyers with the services necessary for a successful real estate transaction, pricing, marketing and staging.

As your Realtor I will help price the property accurately and market it successfully using the variety of tools available today; internet, print, cable TV advertising, and our Alain Pinel network just to name a few.  I know what attacks qualified buyers. 

I will show your home objectively purely because I am not emotionally attached to the property. I can be objective and will not be unnerved or defensive towards a prospective buyer who makes a negative comment about the property.

If you need to sell your property consider the time and money that you will save by using a Realtor. Contact me today for a review of your property's value. There is no obligation.

As you may already have heard, the President signed the tax credit bill this morning.  The tax credit changes are effective tomorrow. Please see comparison chart below for what’s new like the new $800,000 purchase price limitation.

I suspect that this was added because they opened the credit to non-first-time homebuyers, but the chart below would lead one to believe that the limit would apply to both first-time and non-first-time homebuyers.  Stay tuned for clarification on this point as we find out more.

Chart Courtesy of National Association of Realtors
HOMEBUYER TAX CREDIT: REVISED NOVEMEBER 2009

FEATURE	Jan 1 – November 30, 2009 Rules as enacted February 2009	December 1 – April 30, 2010 Rules as enacted November 2009
First-time Buyer: Amount of Credit	$8000 ($4000 married filing separate)	$8000 ($4000 married filing separate)
First-time Buyer: Definition for Eligibility	May not have had an interest in a principal residence for 3 years prior to purchase	Same
Current Homeowner: Amount of Credit	No Provision	$6500 ($3250 married filing separate)
Effective Date: Current Owner	No Provision	Date of Enactment
Current Homeowner: Definition for Eligibility	No Provision	Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
Termination of Credit	Purchases after November 30, 2009. (Becomes April 30, 2010 on Date of Enactment.)	Purchases after April 30, 2010
Binding Contract Rule	None	So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
Income Limits (Note: Increased income limits are effective as of date of enactment of bill)	$75,000 – single $150,000 – married Additional $20,000 phase out	$125,000 – single $225,000 – married Additional $20,000 phase out
Limitation on Cost of Purchased Home	None	$800,000 Effective Date of Enactment
Purchase by a Dependent	No Provision	Ineligible Effective Date of Enactment
Anti-fraud Rule	None	Purchaser must attach documentation of purchase to tax return

 

As it now stands, the federal tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contractis in place prior to the deadline. First-time home buyers will continue to be eligible for a tax credit of up to $8,000, while existing homeowners will be eligible for a reduced credit of up to $6,500. To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years. The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000 in both instances.

Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The legislation maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

Source: car.org

Lawmakers voted 85-2 last night to move closer to a final vote on the extension of employment benefits and the tax credit bill, which would extend until April 30 the $8,000 homebuyer credit tax credit that otherwise would expire at the end of this month. The final vote should come Friday.  I'll keep you posted!

The Federal Housing Finance Agency (FHFA) is expected to announce, as early as next week, the new conforming loan limits for 2010.  The conforming loan limit determines the maximum size of a mortgage that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac can buy or guarantee.

Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan, increasing the monthly payment and negatively impacting affordability for households in California.

Currently, as a result of the economic stimulus plan, the conforming loan limit is$417,000 for most areas in the U.S., but $729,750 in high-cost areas, including many in California. 

The loan limits are set to expire at the end of this year, and could be lowered to$625,500 for high-cost areas. 

If the current loan limits are reduced to$625,500 for high-cost areas, lenders likely will adjust their loan underwriting standards to align with the new 2010 loan limits, to ensure the loans can be purchased or guaranteed by Fannie, Freddie, and the Federal Housing Administration(FHA).

source: California Association of Realtors 10.28.09

What is the Mortgage Protection Program?
Through the California Association of REALTORS® (C.A.R.) Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive $1,500 per month, for up to six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit.

How do I qualify?
To qualify for the Mortgage Protection Program, applicants must:*
-    Be a first-time home buyer – someone who has not owned a home in the last three years
-    Open escrow April 2, 2009, or later, and close on or before December 31, 2009
-    Use a California REALTOR® in the transaction
-    Purchase the property in California
-    Be a W-2 employee (cannot be self-employed)

How do I apply?
If you are interested in applying, you may request an application for the Mortgage Protection Program from your REALTOR®.

*For more information, including application requirements and possible restrictions, please visit: http://www.car.org/aboutus/hafmainpage/carhafmortgageprotection/

Source: California Association of REALTORS® and the Housing Affordability Fund.

The 2009 market presented a unique opportunity for first-time homebuyers. Homes were more affordable than they have been in years, interest rates hovered near historic lows, and the federal tax credit helped more than 1 million people become homeowners nationwide.

 

Unfortunately, the federal tax credit for first-time homebuyers is set to expire next month on Nov. 30. Yet research shows that the First-time Home Buyer Tax Credit arguably has been the most successful component of the federal government's efforts to stimulate the U.S. economy. 

According to a study conducted by the California Association of Realtors to gauge the role the federal tax credit played in the California market, nearly 40 percent of first-time homebuyers reported they would not have purchased a home without the tax credit. Nearly 70 percent of recent first-time homebuyers surveyed said the tax credit was "the most important "ora "very important" factor in their decision to buy a home.

As the expiration date for this successful program looms, REALTORS® are taking action by contacting their congressional representatives, and urging them to extend this vital home-buying incentive.

You can do the same, it’s easy to do.  Ask your congressional representative to vote for extending the First-time Home Buyer Tax Credit through 2010 and to include all home buyers-- not just first-timers. Historically, housing has led the nation out of economic downturns, and can do so again. Clearly, the tax credit played a critical role in driving home sales this year and in making the dream of homeownership a reality for many. By contacting our congressional representatives, we can make a difference in Washington, and help ensure the successful passage of this critical legislation.

source: California Association of Realtors Newsletter