Buy & Sell your home with Bliss!

When they first begin looking for a home, many buyers ask “can’t we do this on our own? Do we really need to use a Real Estate Agent?” The answer is yes, you can do it on your own.  You can search for homes, arrange showings, and even negotiate on your own (although, in some localities, the actual contract for purchase will need to be drawn up by an Attorney).  The real question may be “do we want to do it on our own?”

There is a misconception among many first time home buyers that by using a Real Estate Agent, they will be subject to paying a commission. In virtually all situations, this is not the case. The commission for the sale of a home is paid for by the seller, not the buyer. 

If you do decide to “go it on your own,” your choices will obviously be very limited. The only homes that you can buy without any Agent assistance are those that are “For Sale By Owner” (FSBO)–generally a small percentage of the market. These are home owners who, for whatever reason, have decided not to use an Agent in the sale of their house. It may be because they think they can get more return by not paying a commission, or it may be because there was no Agent who would take their house listing at the price they demanded. Many Real Estate analysts have found that the selling prices of FSBO homes are equal to–or higher–than those listed by Agents. A problem arises when, as a “do-it-yourself” house buyer and without the benefit of a Comparative Market Analysis, you need to make a determination whether or not the house is worth the asking price. How do you decide? There is too much money potentially involved to make a “seat of the pants” decision. In this case, you will need to either secure an independent appraisal to determine a realistic price range for the property or develop your own determination of value.

The next mistake that many buyers make, when they find that their choices are so limited by only dealing with homes for sale by owners, is to jump into the “listed” market by checking advertisements and calling Listing Agents directly or visiting Open Houses. There is not a dime to be saved with this strategy (the seller is still going to pay a commission) and you run the risk of ending up with no representation, since the Listing Agent is duty bound to represent the seller.

Following nearly three decades of increases, the size of newly built single-family homes declined to an average of 2,438 square feet last year, according to data collected by the Census Bureau.  New homes constructed in 2009 had fewer bedrooms than those in previous years.  After increasing for nearly 20 years, the number of single-family homes with four or more bedrooms declined to 34 percent in 2009 compared with its peak of 39 percent in 2005.  The number of single-family homes with three bedrooms increased from 49 percent to 53 percent between 2005 and 2009.
 
Homes built in 2009 also had fewer bathrooms. The proportion of homes with three or more bathrooms declined to 24 percent in 2009 compared with 28 percent in 2008.  The percentage of single-family homes with two bathrooms rose to 37 percent in 2009 compared with 35 percent in 2008.

NEW YORK  CNNMoney.com) — Home prices rose 0.8% in April compared with March and were up 3.8% from a year ago, according to the S&P/Case-Shiller Home Price Index of 20 major housing markets.

That good news is tempered by a couple of factors. First, the one-year comparison was against a low-ebb mark. In April 2009, prices were just above a five-year low. Overall, prices are off 30% from their peak.

Secondly, the improvement came during a time when the federal government was heavily subsidizing home sales through an $8,000 homebuyer’s tax credit. That credit is about to expire.

“Other housing data confirm the large impact, and likely near-future pullback, of the federal program,” said David Blitzer, a spokesman for Standard and Poor’s.

Once the tax credit fully expires, home prices are likely to take a beating, according to Pat Newport, a housing market analyst for IHS Global Insight.

“The housing glut and foreclosures will drive the national Case-Shiller index down another 6% to 8%, with prices bottoming in 2011,” he said.

The strongest rebound has been in California, where S&P tracks three major markets. San Francisco prices jumped 2.2% month-over-month and are up 18% year-over-year, more than any other city in the 20-city index.

San Diego prices rose 0.7% compared with March and 11.7% since April 2009. Los Angeles prices rose 7.8% over the past 12 months, and 0.7% in April.

The biggest loser over the past 12 months has been Las Vegas, down 8.5%. Prices rose there 0.3% there month-over-month.

Only two cities saw values fall during the month. Miami prices fell 0.8% for the month, which pushed the city into negative territory for the year at -0.5%. New York dropped 0.3% month-over-month and is off 1% year-over-year.

Home sales increased 1.2 percent in May in California compared with the same period a year ago, while the median price of an existing home rose 23.2 percent, C.A.R. reported yesterday. 

“Home sales posted their third largest increase on record for May, due in part to first-time home buyers who timed the open and close of escrow in order to capitalize on both the federal and state tax credits,” said C.A.R. President Steve Goddard. “May also marked the fifth month of double-digit gains in the median price, indicative of strong buyer demand relative to the supply of homes for sale. With a 4.6-month supply of homes for sale, unsold inventory continues to be well below the long-run average of seven months, and will continue to drive price appreciation over the next several months.”

The median price of an existing, single-family detached home in California during May 2010 was $324,430, a 23.2 percent increase from the revised $263,440 median for May 2009, C.A.R. reported. The May 2010 median price increased 5.9 percent compared with April’s $306,230 median price.

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Governor Schwarzenegger on Monday signed SB 401 (Wolk) into law providing distressed homeowners with state tax exemption on debt forgiven in a short sale, foreclosure, or loan modification.  Effective immediately, this bill generally aligns California’s tax treatment of mortgage debt relief income with federal law.  For debt forgiven on a loan secured by a qualified principal residence, borrowers now will be exempt both from federal and state income tax consequences.  The tax exemptions apply, with certain restrictions, to debts discharged from 2009 through 2012.  Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.
 
Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions.  Most notably, taxpayers who are bankrupt are exempt from debt relief income tax.  Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.

Californians have a brief window of opportunity to receive up to $18,000 in combined federal and state home-buyer tax credits.  To take advantage of both tax credits, a first time home-buyer must enter into a purchase contract for a principle residence before May 1, 2010 and close escrow between May 1, 2010 and June 30, 2010 inclusive.  Buyers who are not first time home-buyers may use the same time frames to receive up to $16,500 in combined tax credits if they are long time residents of their existing homes as permitted under federal law, and they purchase properties that have never been previously occupied as provided under CA law.

A first time home-buyer may receive up to $8,000 in tax credits, and a long time resident may receive up to $6,500 for certain purchase contracts entered into by April 30, 2010 that close escrow by June 30, 2010.  Additionally a home-buyer may receive up to $10,000 in tax credits as a first time home-buyer or buyer of a property that has never been occupied.

With Short Sales becoming the norm of our real estate market it surprises me to find out that many homeowners and home buyers are still very confused about what exactly the term short sale is and how it works.  Although there is a tremendous amount of information out there to the public about what a short sale is there are still many questions that homeowners and home-buyers have about Short Sales.  So I am hear to tell you please don’t be afraid to talk to a Realtor about the questions and concerns you have.  A short sale can be a win-win-win situations for the homeowner, lender and buyer.  If you can not afford your home  mortgage anymore a short sale can save you from going through a foreclosure.   A  Short Sale is basically when a homeowner sells their home for less than the amount that is owed to their lender. For example:  Outstanding Mortgage is $500,000, Market value of the home is $300,000, lender will forgive homeowner $200,000 of the outstanding mortgage.  There are many homebuyers that believe the term Short Sale means “a quick sale” which is not true, the process can actually be very lengthy depending on how quick or slow the lender is at approving a short sale.  This is a very brief discription and If you would like more details on Short Sales please call me direct 925.584.7058 or email me and I would be happy to answer your questions.

Governor Schwarzenegger today signed AB 183 providing $200 million for home buyer tax credits.  The bill allocates $100 million for qualified first-time home buyers who purchase existing homes and $100 million for purchasers of new, or previously unoccupied, homes.

Eligible taxpayers who close escrow on qualified principal residences between May 1, 2010 and December, 31, 2010, or who close escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit.
This credit is equal to the lesser of 5 percent of the purchase price or $10,000, taken in equal installments over three consecutive years. Under the bill, purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state).  Buyers also must be at least 18 years old and be unrelated to the seller.  First-time buyers are defined as those who have not owned a home in the past three years.

The California legislature on Monday passed AB 183, providing $200 million for home buyer tax credits. The Governor is expected to sign the bill into law this week. C.A.R. supported this important legislation since its inception.  Part of a package of four bills passed at the request of the Governor, AB 183 is designed to help stimulate the economy and create jobs.  It allocates $100 million for qualified first-time home buyers who purchase existing homes and $100 million for purchasers of new, or previously unoccupied, homes.

The eligible taxpayer who closes escrow on a qualified principal residence between May 1, 2010 and December, 31, 2010, or who closes escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit.

This credit is equal to the lesser of 5 percent of the purchase price or $10,000, taken in equal installments over three consecutive years. Under AB 183 purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state).