That’s right Simi Valley home buyers, the tax credit is waiting for Obama’s signature. The tax credit legislation passed the House today in a 403 to 12 vote. The Senate vote was 98 to zero.  This time around there a few additions, these are pointed out in my video blog below. One thing I did not cover was the income limitations which have been raised to $125,000 for single buyers and $225,000 for couples, from the prior limits of $75,000 and $150,000, respectively. To curb any abuse of those claiming the credit, the claimants must attach proof of purchase to their tax return.

Thanks for reading Simi Valley’s Premiere Real Estate Blog!
Author – Ted Mackel Simi Valley Real Estate Agent – Keller Williams Realty
Ted Mackel is a top producer at Keller Williams Realty Simi Valley,
specializing in Simi Valley Real Estate
(805) 432-7705

Don’t miss the 1st Annual Simi Valley SnowFest on Sunday November 8th.  This new event runs from 10:00 am to 4:00 pm as a kick off for the holiday season. This event is organized and run by the Rancho Simi Recreation and Park District, at the Rancho Santa Susanna Community Park in Simi Valley located near Stearns and Los Angeles Ave across from the Metrolink station.

The park district will be bringing in equipment to manufacture several tons of snow for sledding and winter play. The Simi Valley SnowFest is also an arts and crafts fair so there be plenty of activities for the whole family to enjoy. This is a free event so bring the kids down for a great Time on Sunday.

CLICK to ENLARGE this Chart

Simi Valley Housing Market Update YTD September 30, 2009

Simi Valley Home Sales are following the typical pattern we’ve seen over the last several months. Home sales are still below prior year levels and the impact of the first-time home buyer tax credit, historically low inventory, historically low interest rates continue to drive the entry-level end of housing. I posted a colorful chart which shows the bulk of the sales still are under 500,000.  What has been surprising is, as I went back over June, July and August there were additional closings that wee reported late which move those numbers up.  We’re still averaging about 80 sales a month for 2009 but with the new information the summer months were more stable than indicated prior to the late reporting.

If you are a Simi Valley home buyer the market still poses obstacles for those looking to purchase homes under $500,000. We are seeing competition for these homes in the form of large down payments and multiple buyers.

In reviewing the Simi Valley home sales from January 2009 through September 2009, approximately 65% of all homes sold in Simi Valley were purchased with conventional financing, another 10% with all cash offers.  This leaves approximately 25% of the sales using VA or FHA low down payment financing.   What this means for future home buyers is that your competition will not only be the low inventory, it will be other buyers with higher down payments. While an FHA or VA loan can bring the same offer price to a seller, sellers tend to feel more comfortable with higher down payment conventional loans than their FHA or VA counterparts. Also sellers who have homes with any deferred maintenance could  obstacles for FHA or VA financing over those maintenance items.

If you are a home seller to low inventory, low interest rates and the tax credit has definitely created interested buyers. If your home is below $500,000 to low inventory is created fewer competing homes for potential buyers to view. What is interesting about this market is that if your home is over $500,000 low inventory becomes less and less a factor as the price of your home movies up. In fact earlier charts have posted show inventory surpluses in the homes that are in the 700,000 $1 million range.

Part of my day involves completing Broker Price Opinions for several area banks. A  “BPO” is requested by banks trying to value distressed properties on their asset sheets. My task for the bank is to evaluate the property they have given me by locating closings and listings in the area that will give the bank an idea of the value of the subject property. I’m completing BPO’s for Simi Valley, Moorpark, Thousand Oaks, Westlake, Agoura, Hidden Hills, Calabasas, Woodland Hills, West Hills, Chatsworth, Tarzana, Canoga Park, Winnetka, Northridge, Porter Ranch, Reseda and Encino. I have completed close to 200 in the last 12 months.

This look into the values of properties and surrounding areas shows interesting trends in the general market from entry level to high end. The trends I have been reporting on in Simi Valley are seen in these other areas.

A number of issues remain unresolved for the market from here going out, there is discussion in Washington DC to extend the first-time buyer’s tax credit and also open the tax credit to existing homeowners however this has not been voted on or finalized by the House or Senate. Any hikes in interest rates over 6% or higher will impact buyer payments as well. There are still record amount of loans in trouble, foreclosed properties and the unemployment levels will have lingering effects on the market over the next couple of years.

There are big advantages in purchasing a home in this market if the purchase is not an impulse buy. Affordability is at the highest levels in a very long time combined with low interest rates, Simi Valley home buyers have a great opportunity to make a smart buy.

Thanks for reading Simi Valley’s Premiere Real Estate Blog!
Author – Ted Mackel Simi Valley Real Estate Agent – Keller Williams Realty
Ted Mackel is a top producer at Keller Williams Realty Simi Valley,
specializing in Simi Valley Real Estate
(805) 432-7705

Should the listing Agent be present on Showings?

What do you think? Once consideration for California is that our trade areas cover far larger areas than other places in the United States. The Supra Lockbox system works very well in the Simi Valley Moorpark, Conejo Valley & San Fernando Valley areas. It is very easy for an listing agent to be far away when a property needs to be shown.

Other related Articles:

The importance of a lockbox

Lockboxes Part II

Update on Extending the First Time Home Buyers Tax Credit

The First Time Home Buyers Tax Credit is set to expire on November 30th.  The reality of this deadline means that the buyers out now need to get a home in escrow by the 20th of October.  The Thanksgiving Holiday will add days to any escrow with financing, so a typical 30 day escrow may not be enough time to close before the deadline.

There has been much talk about extending the deadline for another year and more likely six months.  All that has happened to this point is that the House has passed a bill to extend the credit for Service Men and Women who are overseas for the next year.  This bill is expected to pass through the Senate.  The question remains: will the Tax Credit will be extended for all first time home buyers?

My hunch is that Congress may take a wait and see approach through the first quarter of 2010.  If sales slow, the credit most likely will come back.  Right now the big winners on this are the home sellers.  The price range of homes that have been impacted the most by this credit are the entry level homes and we have seen those home prices in Simi Valley rise by as much as $12,000.00.  The increased competition among buyers has caused may first time home buyers “settle” for homes with serious deferred maintenance, termite issues, inferior floor-plans, and inferior locations.  If come December 1st the tax credit is not renewed for everyone, I suspect many buyer will be much more patient and pickier over the low inventory offerings.

Silverthorne Tract Models

Simi Valley, California

The Silverthorne Tract at Indian Hills Tract built in the late 1990s by Centex Homes of Texas is comprised of 5 different base floor plans with room and garage options.  The front Elevations offered three different option for each Silverthorne Floor Plan.  The Silverthorne Floor Plans offered four singel story plans and one single story plan. Split between the Slate and Granite Series the homes range from approximately 2,900 square feet to 4,800 square feet. The East Simi Valley Location of the Silverthorne Tract is ideal for buisness professionals that need to be located close to Los Angeles yet desire a retreat from the city.  The older much desired Indain Hills Tract is located just South of the Silverthorne tract.  The  model section is hyperlinked to the floor plans and evelation styles. Updates for the the Silverthorne Tract will be posted on the Silverthorne Market Update page on my blog www.HomeBuysBlog.com.

Silverthorne Granite Series Model: Residence Two Floor Plan Residence Two Elevations
5 Bedrooms	3 Bathrooms	3 Car Garage
Builder: Centex	aprox. sq. ft. 2,994	Two Story

Silverthorne Granite Series Model: Residence Three Floor Plan Residence Three Elevations
5 Bedrooms	5 Bathrooms	3 Car Garage – Tandem or configured as 2 Car & additional Bedroom
Builder: Centex	aprox. sq. ft. 3,183	Two Story

Silverthorne Granite Series Model: Residence Four Floor Plan Residence Four Elevations
4 Bedrooms	3.5 Bathrooms	3 Car Garage – Tandem or configured as 2 Car & additional Bedroom
Builder: Centex	aprox. sq. ft. 2,650	Single Story

Silverthorne Granite Series Model: Residence Five Floor Plan Residence Five Elevations
5 Bedrooms	3 Bathrooms	4 Car Garage – Tandem or configured as 3 Car & additional Bedroom
Builder: Centex	aprox. sq. ft.  3,863	Two Story

Silverthorne Granite Series Model: Residence Six Floor Plan Residence Six Elevations
5 Bedrooms	4 Bathrooms	4 Car Garage – Tandem or configured as 3 Car & additional Bedroom
Builder: Centex	aprox. sq. ft. 4,500	Two Story

All information was taken from reliable sources. The author and owner of this website cannot guarantee the accuracy of the information, especially square footages.  Square footages were taken from the county tax assessor and the MLS records, but should be verified by a physical measure and such physical measurement is not the responsibility of the author or owner of this website.  These models came in several configurations substituting garage space for living space, which dramatically impacts square footage calculations for each model.  Square footages above only represent one builder configuration.  Please follow through the Floor Plan links provided to see the builder configurations.

Hey everyone,  I just uploaded this new design for the site.  It will  take me a few nights to iron out the wrinkles, but in the end it will make the site easier to navigate and use.  Some of the improvements you will see include a Active homes for sale search tool.  Thanks again for your support!

Below is the sales data for the Silverthorne tract in Simi Valley from May of 2003 up through September of 2009.

The tables below contain the the Average Sales Price, High and Low Sales Prices, the List to Sale Price Ratio, all broken out by year.  The Multiple Listing Service Vendors for Simi Valley was changed twice over the past several years and much of the historical data from 2003 and prior is no longer available.  The long and short of the information is that the Silverthorne Simi Valley Real Estate market peaked in 2006 at almost a 1.2 million average sale price.  Currently the average sale price is a little better than 2003.

Currently there are two homes For Sales in the Siverthorne Tract.  Evening Star has been on for 68 days and Rising Star for almost 200 days.  Three homes are on the market in the Shadow Hawk Development with one of those homes in Escrow under $800,000.  In both Tracts, all homes are below $1,000,000 with average asking price of the mid $800,000 range.

Click on the chart to enlarge

]]> http://homebuysblog.com/2009/09/28/silverthorne-tract-simi-valley-sales-trends/feed/ 0 http://homebuysblog.com/2009/09/24/are-you-being-eaten-out-of-house-home-simi-valley-termite-inspection/ http://homebuysblog.com/2009/09/24/are-you-being-eaten-out-of-house-home-simi-valley-termite-inspection/#comments Thu, 24 Sep 2009 23:49:57 +0000 Ted Mackel http://homebuysblog.com/?p=871

Are you being eaten out of house & Home Simi Valley Termite Inspection?

Understanding how a termite inspection will impact the sale of your Simi Valley Home is an important issue.  Early action can save you frustration and headache.  If you are planning to list your home, now is the time to get and inspection.  Inspections are cheap ranging form $75.00 to $100.00 depending on the company.  If you have a pest control service for regular pest control call you company and ask if they have a discount for inspection and any work they recommend.  If you do not have a termite company here are a few local companies you can call.

Simi Valley Termite Inspectors

Simi Valley Termite Company  (805) 522-4334

Gold Coast Termite & Pest Control (805) 526-1150

Zwaag Termite Control (805) 526-7040

Once you are in escrow, a termite inspection will be ordered if you did not do this prior to accepting an offer on your home.  Generally, unless otherwise agreed, the Seller will pay for a termite inspection and any corrective work that is outlined in the inspection report.  The repair cost will vary dependent upon what is found and the size of structure.  Fumigation is based off the cubic volume of the structure and other repairs can include replacing any wood damaged by wood destroying pests and wood destroying organisms (dry rot).  The inspection is limited to the accessible areas of the structure, which include the attic and the crawl space under a raised foundation home.  The inspector will look for moisture damage, dry rot and evidence of wood destroying pest activity.  The inspector will also look for a tag on the structure (usually located in the garage) of previous termite inspections.  A corrective list will be itemized in the report along with a cost to repair any damage found.  Older homes that have not been inspected in a long time can not only have physical repair, but also require fumigation, heat treatments or foam treatments.

Make sure to that anything stored up against the walls of your garage is moved back so the inspector can see the perimeter of the garage on the inside.

Here are some of the tell-tale areas you can check for in your home to see if termites and dry rot are about to run up a large repair bill.

• Exterior paint on trim and siding.  If the paint is flaking and wearing away, exposed wood will be susceptible to wood destroying organisms such as dry rot.  Exposed wood needs to be scraped, sanded, primed and repainted.  Minor cracks in the wood should be filled with caulking or bondo before primer is applied.  Wood areas that are exposed to direct sunlight  for the longest hours of the day will show the biggest signs of paint failure.
• Any wood touching dirt or grass will be a candidate for dry rot and termites.  Keep these areas well sealed with paint and try to control the moisture this wood may be exposed to.
• Do not pile fire wood, yard trimmings, debris or lumber up against the side of your home. This will create a perfect highway for termites and other insects to attack your home.
• Look for piles of droppings near base-boards, window-sills, interior garage walls, exterior walls of the house.  Droppings are small, course, pepper-like pellets that can be reddish-brown in color.

Understanding Section 1 and Section Two repairs on your report.  Generally Section One covers any infestation of damage the inspector finds.  Repairs and treatment under this section are the responsibility of the seller.  Section Two are noted conditions that may lead to future infestation or damage.  These items are the responsibility of the buyer.

Multiple Listing Service – Flawed Data

Days on market is a number used to try and gage how the market is moving.  I am going to point out why this number is becoming very unreliable.  Two abbreviations you may hear are Days On Market DOM and Cumulative Days On Market CDOM.  Until just a year ago CDOM was not tracked in the Ventura County Multiple Listing Service.  Homes that do not sell start racking up days on market. The longer a home sits on the market , the more potential buyers want to know why that home is not selling.  Listing agents aware of the handicap of a listing with a large days on market count, will cancel a listing or let it expire so the home can be re-listed. As a new listing, the DOM clock is reset to zero, however, the CDOM clock keeps ticking.

When a property is re-listed in an attempt to reset the DOM clock, a data error now enters the picture.  The MLS tracks the percentage of the Sale price to the Listed price, but when a property is re-listed this percentage calculation is not based off the original listing price or the prior listing contract (if expired).  It is calculated off the current list price which would include any reductions form the original list price. In fact the MLS always calculates the percentage off the current List Price which can seriously skew that percentage ratio.

Let’s look at two properties that this has happened with and how the MLS now presents inaccurate information on these sales.

1768 Mesa Ridge Ave Westlake Village CA was listed for $1,875,000.00 on 6/4/08. The listing expired one year later and was re-listed by the same brokerage on 6/3/09 for $1,700,000.00.  The price was lowered four times down to $1,300,000.00.  The home finally sold for $1,435,000.00 and closed on 9/15/09.  The MLS now reports a DOM=103, CDOM=454 and the Sales Price to List price percentage of 110.38%. How can that be?  $110.38% ?  It should be calculated off the $1,875,000.00 and the Sales Price to List price percentage correct number is really is 69.34%.  Even if one could make a plausible argument that the old listing period should not be counted, the second listing period started with a list price of $1,700,000.00 and that is still far below a 110.38% result.  Even though the CDOM is listed, the CDOM is left out of the average DOM calculation which is misleading to the true story of the market timing for homes in this price range and area.

1777 Yarnton Street Westlake Village, CA was listed for $1,095,000.00 on 4/29/09.  Approximately 60 days later the price was reduced to $1,074,900.00 and the property quickly picked up an offer and sold for $1,075,000.00 after a 60 day escrow.  The MLS shows the Sale price to List Price percentage as 100.1% using the reduced list price vs the sale price incorrectly.  When using the original list price that Sale to List percentage should be 98.17%.  The CDOM and DOM is correct, but the DOM is averaged in with the incorrect DOM numbers presented on homes like1768 Mesa Ridge.

The story of Measa Ridge is that the Sellers tried for a year to get a price for their home that the buyers did not agree with; once the Sellers of Mesa Ridge finally lowered the price to a range that brought out buyers, it sold taking 454 days. The 103 days on market and the 110.38% sale to list percentage that is being used does not tell the real story.

The Story of Yarnton is very similar…..THE SELLERS HAD TO LOWER THE PRICE to get it sold.  It did not Sell at 100% of List Pirce.

This is very important to understand as days on market is not revealing a true picture of the actual market condition.

Next time you ask for the numbers from a Realtor, keep in mind that the quick answer just based off a quick look at a standard MLS report is going to reveal an inaccurate number.  This market is very different than any other.  Lower price ranges are selling faster and closer to asking price that higher end homes.  Trying to ascertain market conditions has to be done regionally maybe even hyper-locally and definitely price range specific.