Tag Archives: buyers

San Diego Real Estate Expert, David Tal’s HomeReach Weekly

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Get $3,000 to short sale your home?

April 8, 2010 – In an ongoing effort to stave of foreclosures, the government has been coming up with new ways to help troubled borrowers.  Their newest program may just do the trick!

A short sale is when a troubled borrower owes more on his home than it is actually worth; therefore, he can’t even sell it, but rather is forced to foreclose.  Short sales help the borrower sell the home, once approved by the lender to accept a short payoff.  Lenders like this method because it saves them tens of thousands of dollars in most cases to avoid the foreclosure process and sell it while it’s in a better condition.

Tragically, only a small number of homeowners have been approved for a short sale by their lenders, and the small percentage of people who were approved had to wait for a 6-9 month short sale process.  In many cases, they lost their homes to foreclosure during this tedious and time straining attempt.

On April 5th, the government enacted the new Home Affordable Foreclosure Alternatives program, known as HAFA.  Under this new legislation, borrowers will receive $3,000 to relocate.  Short sale servicers will earn $1,500 for handling the transaction.  The holders of the mortgages, or investors, will receive $2,000 for participating and helping to share proceeds with any secondary lien holders.

Lenders that participate must make it clear to the homeowners as to what market price they will be willing to accept, and they must approve offers that meet the guidelines within 10 days.

There is no doubt this program will help thousands of people, and speed up the short sale process.  In many market areas, it’s been estimated that up to 2/3 of all transactions this year will be from short sales.  A foreclosure does twice as much damage to your credit score than a short sale, so homeowners should really consider this option before they just walk away from their homes.

Consult your local agent to discuss your options and alternatives to foreclosure!

Visit us online at HomeReach.com to view all San Diego homes for sale.

The San Diego Business Journal quotes CEO, David Tal

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On March 22, 2010 the San Diego Business Journal wrote an excellent article on the San Diego Real Estate Market. HomeReach CEO and Real Estate expert, David Tal provides valuable commentary in the published article. To read the complete article, click on the following image below.

Real Estate Expert, David Tal’s HomeReach Weekly

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A new $10,000 housing tax credit for CA homebuyers!

March 25, 2010 – Last March in California, a $10,000 tax credit was enacted for homebuyers who purchased new construction homes in an effort to stimulate the housing market and help developers that were stuck with a glut of inventory on their hands.  The state allocated $100,000,000 for the program.  It was a huge success.  It was too popular in fact, because 4 months later, the fund ran out.

A new bill has been introduced in the California State Senate that would reintroduce this tax credit incentive as early as May 1st, coinciding with the end of the Federal first time homebuyers tax credit that ends April 30th.

With resale homes getting absorbed at rapid rates, many buyers are turning to new home sales which can offer great incentives from the developers like credits for upgrades, waiving Home Owner Fees for a given amount of time, major price reductions, and more.  If the state tax credit gets a new lifeline, so will developers of new homes, and homebuyers alike.

Stay tuned for more information on the California State Senate’s $10,000 tax credit for new home sales.

Visit us online at HomeReach.com to view all San Diego homes for sale.

San Diego Real Estate Expert, David Tal’s HomeReach Weekly

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Why You Should Always Use a Real Estate Agent

March 11, 2010 – Like any business, there are people who specialize in real estate.  Many buyers and sellers out there think they can do this without the guidance of a professional real estate agent by their side.  Now I’m not saying that all agents are created equal, but having an expert can save you time, money, and help you avoid the pitfalls of the real estate game.

Buyers have so many tools at their fingertips these days.  They can search all the homes for sale, find recent sales, and do plenty of research on their own. Not everyone is so savvy, but even those who are should understand the basic rule of thumb.  Going straight to the listing agent will not benefit you.  The main reason is the listing agent is representing the seller, and is negotiating on the seller’s behalf.  His job is to get as much money from you.  Let me repeat that.  The listing agent is trying to get you to increase your offer as much as possible.  Where is the benefit in this?  Exactly.  An agent representing you as a buyer will do exactly that, and will work and negotiate on your behalf to try and get the seller to lower his price as much as possible and get you the best deal.  But negotiating aside, everyone needs a second eye, and a guide to help him or her with their decisions, especially big ones like buying real estate.  Experienced and knowledgeable agents are looking at deals and seeing transactions daily, giving them much more information than a buyer who just decides now that he’s interested. They can share neighborhood trends and information and help you get a clear picture of what’s going on in the market.  They also know of deals before they hit the market, giving you a competitive edge.

Home sellers feel they can save on commissions by trying to list their home by owner and forego the exposure of the Multiple Listing Service, known as the MLS.  They don’t feel they need agents to bring them a buyer.  But time and time again they are proven wrong.  Here’s the latest statistic from the National Association of REALTORS®.

88% of for sale by owners end up using a real estate agent to sell their home!

That’s right, 88%!!!!  What these home sellers lost was time and time is everything when you are trying to get your home sold for as much money as you can get.  Simply listing your home on Craigslist just won’t do it.  Even if you do get lucky and get an offer that way, it’s probably not the best offer you can get.  Exposing your listing to every buyer and agent out there using the MLS system will drive more buyers and offers your way.  The more offers, the better your chances of getting top dollar for your property.

When it comes time to buy or sell your next home, always speak to an experienced agent that specialized in your submarkets of interest.

Visit us online at HomeReach.com to view all San Diego homes for sale.

What on Earth is a Short Sale and why should I care?

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If you’re house hunting these days, chances are you’ve run into dozens of short sale listings.  As a Broker, I’ve noticed quickly how little consumers really understand about the term.  The common misunderstanding is that a short sale is just like a foreclosure, but it’s not nearly the same.

Short Sales help people who are underwater on their homes with minimal financial loss.  For example, if homeowner Joe has a loan for $500,000 on his home, but his home is currently only worth $350,000, Joe is considered to be “underwater” on his property by $150,000.  Joe is most likely selling his home because he can’t afford the monthly payments, but how can he sell it when he owes more than it’s worth? Without a short sale, his only option is foreclosure or refinancing, if allowed to.

A common option for Joe is to just stop making the payments on his home, in which case the lender can step in and foreclose on his property.  Joe is kicked out and his credit will be affected for up to 7 years, making it harder for him to get credit cards, auto loans, mortgages, personal loans and even rentals.  Landlords check your credit too!

Joe has another option, in which he puts his home on the market and receives market offers for his property.  He then takes that fair market value offer to his lender, and he, with the help of his real estate agent will negotiate a “short sale” with the lender.  In this scenario, the homeowner and the agent will make the case to the bank that the owner can no longer continue to make the monthly payments.  In many cases, it may be far easier and cost the lender much less to “forgive” the $150,000 the home is “under” and let the sale take place.

For a lender, the short sale is becoming much more appealing these days.  The lender is strictly concerned with his bottom line.  If the homeowner is allowed to settle his debt or “short sale” with the lender, then he is very likely to leave the property in a good condition to ensure the sale takes place.  If, however, the lender decides to foreclose on the home instead, the lender will have to factor in extremely costly and time-consuming foreclosure proceedings, lawyers and other expenses, only to sell the property for fair market value anyways.  The other risk they take is that the homeowner, who may feel betrayed or taken advantage of, will destroy the property and cause major damage to the home upon vacating.  We see this all the time from angry homeowners who were kicked out.  This will in turn make it even harder for the lender to sell after foreclosing and the costs of repair are unpredictable.

The good news for a homeowner who completes a short sale is his credit will NOT be marked by a FORECLOSURE on his credit history, but rather a “debt settlement” flag.  Further, in most cases, this only affects their home buying power for 2 years.

If you find yourself in this position, consider short selling your home and renting for 2 years.  Prices will still be low, even if they rise a bit, prices will be very low compared to what they were in 2006’s peak, and you’ll find yourself owning another home sooner than you think.

Home Buyer Information Regarding the Tax Credit Programs

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A tax credit of up to $8,000 is available for “First-Time Homebuyers” purchasing a principal residence on or after January 1, 2009 and on or before April 30, 2010.  If you have a binding sales contract signed by April 30, 2010 and the purchase is complete by June 30, 2010 the transaction will still qualify for the tax credit. A first time homebuyer is defined as one who has not owned a home at all for the last 3 years. If married, this applies to both spouses. The IRS does allow unmarried joint purchasers to allocate the credit amount to any buyer who qualifies as a first time homebuyer. (IRS Notice 2009-12)

A different tax credit is offered of up to $6500 for “Repeat Homebuyers” who have owned a home for 5 consecutive years out of the last 8 years. This tax credit is only offered for a window of months to purchase a home this year and the beginning of 2010. It will apply to houses sold after November 6, 2009 and on or before April 30, 2010. Again, if a sales contract is signed by April 30, 2010 and the transaction is complete by June 30, 2010 the tax credit will still qualify.  Home sales above $800,000 are not eligible for either of these tax credits.

Income limitations are also in place to qualify for these tax credits.  From Jan 1, 2009 until November 6, 2009, income limits are $75,000 for individuals and $150,000 for married couples filing jointly. After November 6, 2009 it changed to $125,000 for individuals and $225,000 for married couples filing jointly. Please note that married couples are not eligible to qualify for the first time homebuyer tax credit if one of the spouses previously owned a home. They may, however, qualify for the repeat homebuyer’s tax credit. Also, to keep from having to repay these tax credits, homeowners are required not to sell their home for at least three years after purchase.

Lastly, to claim your credit, you must submit a copy of the HUD-1 settlement statement and the IRS form 5405 with your income tax returns. Those whose transactions close in 2010 can claim their credit by filing an amended 2009 tax return. I hope this information helps. If you have additional questions, give me a call. I’d be happy to help you with any and all of your real estate needs.

Your HomeReach.com Specialized Agent,

Lisa Morgan

(619)410-7002

Sound Advice for First Time Home Buyers

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It’s your first home, or maybe you made some mistakes when purchasing a property once before, so you’re not feeling so confident. You’re excited about the prospect of getting a good buy in today’s market, but you want to feel you’re making the right choice. You may feel ready to ask your REALTOR for a tour of homes, but first, here are a few tips to remember before setting out:

Know your Credit Score.

Get Pre-approved with an experienced, reliable lender, so you’ll know what you can afford. This will also help your REALTOR to be able to show you homes within your price range.

Create a Long-Term Budget. Don’t get caught short of cash, somewhere down the road. Make sure you have enough reserves.

Don’t forget about taxes, insurance, utilities, and other possible fees.

Work with a REALTOR who has experience and “know-how”, who will help you every step of the way, including negotiating, answering vital questions, and being there for you when you need advice. A good real estate agent will return your calls within 24 hours, but a great agent will get back to you as soon as possible.

Prioritize your “Gotta-Haves” and “It-Would-Be Nice-to-Haves”, and understand that each home will most likely have a bit of each, but will seldom fulfill all your desires.

Get a Home Inspection, and choose your own Home Inspector, so you are confident there will be no conflict of interest. Your REALTOR will surely be able to give you a list of professional inspectors, but in the end, it’s your choice.

Know what you’re getting into. If the Home Inspection Report lists too many expensive repairs, don’t be afraid to cancel the contract, and continue your home search for a home in better condition.

Know your neighborhood. Show up at various times of day and night to check it out, before you make the move. Be aware of noise, or any other factors that may make the area undesirable to you.

Resale Value. Consider what you pay for your home, and whether it will hold its value over the years. Life has many surprises for us. You may want, or need to sell sooner than you think. Be prepared.

This is one of the most important decisions you’ll make in your life. Don’t hesitate to call as I will be there for you throughout the entire home buying process.

Your HomeReach Certified Agent,

Bonnie Maffei

760-730-2191

The “Upside” for the “Upside Down” – Short Sales!

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If you bought a house between the years of 2005 and 2007, you are probably very familiar with the words “negative equity”. That means your home is “upside down” in its value, and you owe more on your home than it is worth.  The outlook ahead can seem very grim.  It’s heartbreaking to see the house next door being purchased for $200K less than what you paid.  You probably say to yourself, “What’s the point?” I know, I know… the point was to provide your family with a stable home, a nice neighborhood, good schools, and a place to grow old. But deep down I’m sure some of you were thinking, “This house could be worth so much more in the future and possibly help pay for our kids’ college, or go towards our retirement”.

Don’t worry, you’re not alone, and many people feel the same exact way as you do. Some are dealing with their current housing situation and simply accept the fact that their house is underwater and are willing to continue paying their monthly mortgage payment. Others are finding it very difficult. Maybe they have lost a job, or they feel that it doesn’t make sense financially to continue to pay on a home that could take practically the rest of their loan term to get their equity back. This is when they look to the short sale approach to “start over” in a couple of years. This is the “upside”. The short sale option will allow you to sell your home at a loss without having to be obligated to pay for that particular financial loss.  Thanks to the Mortgage Debt Relief Act of 2007, taxpayers can exclude that debt as generated income on their tax returns. You can go to www.IRS.Gov to read more about it.   This act, however, will only be in effect until the end of 2012.

How a short sale affects you: You will not be able to purchase a new home for a minimum of 2 years. A foreclosure will eliminate buying a home for 4. Which sounds better? I think 2 years of renting in exchange for eliminating an extremely high debt with no equity would be my answer. Worried about credit? A short sale will show up on your credit report as a “settled debt” vs. a big fat FORECLOSURE. It’s true, I’ve seen how they both look on a report. The FORECLOSURE does not look pretty. Plus, wouldn’t you want to at least have the opportunity to buy again sooner than later? Yes, it can seem very grim… but there are ways to salvage the situation and put yourself back into a position where you can again purchase a home and not worry about negative equity.  Not worry about an increasing mortgage payment.  If you feel you are underwater and simply can’t swim up, you probably can’t. You don’t have to go through this alone!  Call me, and we can discuss your options for planning a better future for yourself and your family.

Your HomeReach.com Specialized Agent,

Lisa Morgan

(619)410-7002

San Diego Real Estate Expert, David Tal’s HomeReach Weekly

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Three Cash Flowing Neighborhoods in San Diego!

February 18, 2010 – It would have seemed unimaginable for the past few years.  More neighborhoods in San Diego are cash flowing, making them extremely appealing for homebuyers and investors alike.  On average, San Diegan’s are now only paying 16% more to own than they would to rent.  That is a small premium to pay to own your own home and gain from it’s appreciation, tax incentives, and vast benefits.  Compare that to 2006, when it cost 66% more to own than to rent and it’s easy to see why the attractiveness of owning a home back in 2006 came to a quick and strong halt.  The last time owning a home was only 16% more expensive on average in San Diego was in 1999.

  1. Oceanside, CA – Oceanside is the 2nd highest selling community in San Diego County, selling thousands of homes each and every month.  Values dropped 40-50% from their peaks but dropped only 7% for 2009 with an upward trend in the last 4 months of the year.  Strong rental demands from government military and naval bases, as well as thousands of young families moving slightly farther away from city centers find great values here for their money.  Investors have taken note too!!!  See the Best Deals in Oceanside
  1. Chula Vista, CA – Believe it or not, Chula Vista is selling more homes each month than any other neighborhood in the County.  There are really two completely different areas of Chula Vista, divided by the 805 Freeway, and spread over 5 zip codes.  The greater part of 3 of those zip codes were only built in the last decade and they are stunning.  For those who have visited, they know what I mean.  It’s clean, brand new, beautifully landscaped, wide streets, homes with some actual land, it’s safe, exciting and the values are on a league of their own.  New schools, parks, shopping centers, business districts and restaurant/nightlife line the avenues of the new Chula Vista, nestled just east of the 805 freeway and just south of Bonita.  Chula Vista was hit the hardest by foreclosures since most of it was built during the peaking years of the housing bubble.  Now, homes values have dropped 40-60% and rents have remained strong because of the schools and low housing costs we have today.  Come take a look for yourself.  Chula Vista is cash flowing!  View Foreclosure Deals in Chula Vista
  1. Imperial Beach, CA – Imperial Beach hasn’t been as popular as other coastal areas like Pacific Beach, La Jolla and Del Mar.  But those areas have weathered the storm better and have always been expensive.  Imperial Beach is now getting a 2nd look, not just from homebuyers, but the city too, which has zoned coastal areas of Imperial Beach as a Redevelopment District.  The Imperial Beach in 10 years from now will be a very different place than it is now, but already we’re seeing major tenants moving into the neighborhood, and redevelopment along the coastline.   Dozens of home owners are taking time to upgrade and update their homes, realizing the future potential of their home.  Imperial Beach is San Diego’s most affordable coastal city for all that it has to offer, with direct access to Coronado Island and the 5 Freeway. Within a two block radius of the naval base, there are dozens of 1 and 2 bedroom foreclosures, completely upgraded, priced between $80,000 and $150,000 that can rent for $800 to $1,500 per month!  Cash flow baby!  View all Imperial Beach Bank Owned Homes!

Visit us online at HomeReach.com to view all San Diego Foreclosures by area or zip code.