Lee Sells More

After Christmas Sale, – Bay Area Homes up to 60% off

2012-01-29T14:16:00.001-08:00

That is a big statement. Macy’s, Target, Wal-Mart and all most other stores put their products on “After Christmas Sales”. Home Sellers in San Bruno, South San Francisco, and all over the San Francisco Bay Area have put their products on the “After Christmas Sale”

I have randomly selected two recently sold homes to use as an example.

3691 Exeter Dr., a 3BR/2Ba. San Bruno home just sold on Jan 18, 2012 for $452,000 it also sold on May 9 2003 for $600,000. That results into a 36% savings in monthly payments. Look at the numbers.

3875 Carter Drive, #106 a 2Br/2Ba. Condo in South San Francisco sold on Jan 4, 2012 doe $277,000 and in April 25, 2006 it sold for $550,000. A 59% savings. Look at the numbers.

As you look at the numbers please note the lower down payment required, and the lower property tax. Both due to the lower home price. You save all around. Numbers are deemed reliable but not guaranteed.

	3691	Exeter Dr.	San Bruno	3875, #106	Carter Dr	SSF
	2012	2003	Difference	2012	2006	Difference
Purchase Price	$452,000	600,000	25%	277,000	550,000	50%
Down Payment	90,400	120,000		55,400	110,000
Loan	361,600	480,000		221,600	440,000
Interest Rate	4.25	5.75		4.25	6.5
Principal and Int.	1726.	2801		1090	2781
Property Tax @1.1%	415	550		254	504
Monthly Payment	2140	3351		1344	3285	59%

I selected these properties randomly. You might find savings greater or lesser. I want to point out to you by using real numbers the “Perfect Storm” has arrived; Low interest rates and low home prices. In the past if rates went down prices would go. This is an opportunity of a lifetime. If the I Pad was on sale like homes are on sale you would be on line at 4AM. For all of the potential buyers waiting for the right time, this is your wake up call. The time is right. Ken Rosen of the Fisher Center at UC Berkeley says “This is the best time to buy a home in 30 years”

Considering buying or want to learn more call your favorite Realtor or come to my Free Home Buying Seminar. Click here for more info and registration.

"It is Better To Own Real Estate and Wait, Than Wait To Own Real Estate"

San Bruno Eye Sore is about to Go

2012-01-15T16:24:00.001-08:00

The Treetops apartments on Skyline and Sharp Park broke ground for renovation. (It’s about time)

I thought you would be interested.

7 years after being closed down, renovation will begin and is scheduled to be completed by summer of 2013.

for more information Click Here

http://www.mercurynews.com/san-mateo-county-times/ci_19731829

The San Bruno Ave. Caltrain Grade Separation Project is moving along. Can’t wait for completion.

Completion is scheduled for the end of this year. We'll see.

for more information Click Here

http://sanbruno.ca.gov/pw_proj_current.html#streets

I will be hosting a Home Buying Seminar. If you are in thinking about buying I think you will find it quite helpful.

for more information Click Here

http://leesellsmore.com/RealtorWebPage?custompage_id=1567686030

Lee Ginsburg on choosing a home loan

2011-12-23T22:16:00.000-08:00

Do I Need An Agent?

2011-12-04T13:02:00.001-08:00

I was at a recent home buying workshop and someone asked if she needs an agent.

In the Bay Area the buyer does not pay for the agent to help them find a home, help them negotiate; walk them through the process, etc. The buyer also does not pay the agent for helping them digest the comparable properties, or get inside information concerning the home or the comparables, educate them on the neighborhood, and more. The buyer never pays the agent anything. The seller’s agent pays the buyer’s agent for assisting them in selling the home, but the agent has a fiduciary duty and obligation to their client, the buyer.

So why wouldn’t you want someone to do all the dirty work, to bounce ideas off of, and to pick their brains with no cost to you.
Every transaction is different. The buyer’s agent does all of the above and more depending on each individual situation.

The most important task the buyer’s agent performs but hardly mentioned, is helping the buyer maintain their emotions. I have seen buyer’s get so excited about a home that they would pay anything for it. Well maybe not anything but more than necessary. A good agent will protect the buyer by making them see reality. On the other hand they might be offended by the seller’s response and might react by cancelling the transaction or respond negatively and blow the deal. An agent is the buffer.

An agent will help the buyer see through the seller’s messy home to see the bones and layout of the home. An agent will keep the buyer focused on the purpose of buying a home, facing reality and prevent them from getting sidetracked. I remember helping a newly married couple with a baby purchase their first home. They liked the well decorated home in a not so good area. They were not familiar with the area. They were prepared to write an offer and I did not want to discourage their enthusiasm. I suggested on the way home we drive by again. We did and they calmed their emotions and changed their thoughts on their own.

Even in this age of the web, Real Estate is still a relationship business. An experienced agent has contacts and often can find out about the seller’s bottom line, other offers, and the true selling price of the comparable homes (not necessarily the sold price in public records). An offer from an experienced agent with a good reputation will be reviewed more seriously than a part time agent or an out of area agent. An experienced agent in the area is familiar with the customs of the area. They are familiar with the area. I know of an instance that a buyer got very excited about a home with an empty lot next door. The buyer was excited until their experienced agent told them previous to the empty lot a home very similar to the one they are looking at sat there. An experienced agent with a good reputation among other agents and familiar with the area and has a lot more to offer than the internet or a part time realtor friend. Hope you don’t mind another quick story of a buyer working their part time realtor friend. The agent not understanding the loan the buyers were getting requested a $15,000 credit from the seller. Due to the way the contract was worded the buyer’s lender would only allow a $5000 credit and the seller received the $10,000 difference.

I ask the buyer or seller for that matter thinking of representing themselves or using a friend: Would you ask a first year med student to operate on you. You know what they say about attorneys: It is a fool whom represents themselves.

Please remember a good experienced professional agent is on your side, can save you a lot of money and will only “survive” by selling you a home. They will make a good living by selling you, your friends and family a home. They are here not for a one time deal but to transform you the buyer into a raving fan whom will recommend them to others.

To learn more about me and the home buying or selling process please go to: www.leesellsmore.com

Happy Thanksgiving!!!

Dates to Remember

2011-11-04T12:13:00.001-07:00

This Saturday Night Nov. 5 - Turn Your Clocks Back
Remember to turn your clocks back an hour on Sat. night so you’re in sync when you awake for your Sunday morning routine. You get an extra hour of sleep. It is also a good time to change your batteries in your smoke and carbon monoxide detectors.

Thursday Nov. 17 -6:30 – FREE Information Workshop on Energy Rebates -180 El Camino Real, San Bruno

Energy Upgrade California, a statewide program launched in March that provides rebates to homeowners for carrying out home energy efficiency retrofits with approved contractors.

The American Recovery and Reinvestment Act and utility ratepayer funds, is offering a Rebate for Energy Upgrades, The program is a partnership between the California Public Utilities Commission, California Energy Commission, Department of Energy, San Mateo County and PG&E. San Mateo County has recently announced that it will be doubling the program’s rebates. San Bruno is offering a Third Rebate. If you are considering replacing a Hot Water heater, Furnace, Windows, Roof, or adding insulation or solar this is the workshop you should not miss. You will learn how to reduce your energy costs by up to 40% and have someone else pay for the upgrades.

For More Information follow the links:
https://energyupgradeca.org/overview

http://www.co.sanmateo.ca.us/Attachments/cmo/pdfs/Energy%20Upgrade/FAQ.pdf

http://sanbruno.patch.com/articles/does-your-home-need-an-energy-upgrade
http://www.SDIHomePerformance.com

Thursday Nov. 17, -2-5PM - Free Home Buyer Workshop -
College of San Mateo, 1700 W. Hillsdale Boulevard, San Mateo, Bldg. 10 - Room 193
The San Mateo Association of Realtors will be hosting this workshop to help you understand the basics of how to buy a home - even if you’re not at that place in life yet – Home Ownership is still the key to reaching Financial Stability and in achieving the American dream. Now is the “Perfect Storm” with low interest rates, low housing prices and low down payments. Professionals in banking, title, credit, law and real estate will provide knowledge and interact with the public on the basics in planning for homeownership. No pre-registration required.

For Additional information follow the link: www.samcar.org/homebuyerworkshop

"It is Better To Own Real Estate and Wait Than Wait To Own Real Estate"

www.leesellsmore.com

Good Article on Light Bulbs

2011-10-02T21:41:00.001-07:00

I just read this article on light bulbs.

I went to Orchard Supply recently to purchase a light bulb and left with a head ache.

I wish I had this article and hope you find it helpful.

I am not able to remember it all so I am going to print out a copy next time I need a light bulb.

follow the link http://tinyurl.com/3ekxzfy

Great Loan Options are Here!!!

2011-08-28T17:34:00.001-07:00

Dear Homeowners and Potential Home Buyers,

I want to let you know of a great opportunity. Interest rates!!!

Interest rates are at record lows. We have been hearing that for a few years and our government plans to keep it way for a few more. With that said mortgage interest rates do fluctuate daily.

Many people think loans are difficult to get. That is a misnomer. Just prove you can afford the payments and you get the loan. The bank might ask lots of questions and request lots of papers but they are willing to offer you a loan and guarantee to hold the same price for the next 30 years. Do you know of another product or service that guarantees the price for the next 30 years?

30 year fixed rates today are 4.25-4.5%. For your knowledge a 1% increase will affect a $500,000 loan by about $300. A 10% price adjustment will affect your payment by about $250.000. I am trying to show the influence of interest rate on your monthly payment.

Many people believe you need 20% down payment or equity for refinancers to get a loan. Another misnomer, that is not correct. With all that has happened in our banking system it is unbelievable but you can still obtain a loan with only 3.5% down payment or equity. For homeowners considering refinancing you can get a $500,000 loan if your home is valued at $520,000 or more. For home buyers with $20,000 saved up you can possibly purchase a home valued at $520,000. Not bad. Let me give you some of the caveats. Any loan with less than 20% equity or down payment the lender will require Mortgage Insurance (MI). I have been talking about equity and I want to make sure we all know what equity is. It is the difference between the value of your home less what your loan balance is. Back to Mortgage Insurance; it goes away after you have built up 20% equity. Depending on the loan this 20% equity can be accomplished from upgrades, appreciation or paying down the loan. This is very important to ask your lender. I neglected to mention that mortgage insurance is tax deductible. Depending on your loan specifics Mortgage Insurance is about 1%. Some loans will have an upfront premium as well. Mortgage Insurance and the premium are deductible. Some people have told me they would prefer to save the 20% rather than pay mortgage insurance. I do not believe in that thought. Not many are good savers. Not many have income to support savings of $20,000 or more a year. Please keep in mind, owning a home is saving because with every monthly payment you are paying down the loan. I call it Forced Savings. Also if you buy now and you can still put your savings toward the loan balance to get the mortgage insurance terminated earlier. I am afraid for those people saving for that “20%” that home values will increase and they will need even more savings. Also while you are saving you are throwing out money by paying rent. Rents will continue to increase and you can get your home purchase costs fixed for the next 30 years. In fact it will go do down when the mortgage insurance is terminated. I understand this gets a little complicated. You might get information from someone that purchased 10 years ago and just like cell phones and technology loans have changed substantially. If you think this is something you might be interested or just want more information in I suggest you run and not walk because the 3.5% down loan is a Government backed and there is talk of changes. Call your favorite Realtor or your lender to get the facts on your specific situation.

I do want to bring to your attention a super opportunity for some people. The adjustable rate loan. In a recent Zillow survey 57% of the people questioned did not know how adjustable loans work. You can get a loan in the mid to high two’s fixed for 5 years or so. These are not teaser rates like we had back when things were out of control. These are not negative amortization loans like we had back when. These are loans for people willing to take on some risk in exchange for a low rate. You speak with people who have an adjustable loan for a while and they are thrilled. Their rates go down annually. Today’s adjustable rate loans are really hybrid. They are fixed for a limited time, often 5 or 7 years and then adjust annually. They all have a maximum rate they can increase to and a maximum annual increase. Commonly it is 5% above the start rate. Today the adjustable rate is about 1.5% or more, less than the 30 year fixed. This can be a great loan if you know your income will be increasing, you will be getting an inheritance; you will be relocating or just are comfortable with risk. Not only will your payments be substantially less with this type of loan you can be approved for your “Dream Home”, because some lenders will use the current rate to approve you. This can also be a good option someone refinancing a small balance. A suggestion from a lender I work with is to put the money you are saving on this loan vs. a 30 year loan towards the principal. When the loan adjusts it will be based on the remaining balance. I don’t think many people are aware of the savings with this type of loan.

One more type of loan I want to bring to your attention is the 15 or 20 year fixed loan amortized over the same time. With this loan your payments will be more than the 30 year loan but you will be paying for half the time; saving you in the long run about 30%. This is great for people considering retiring soon. Last quarter Lending Tree notes that 34% of refinancers used this loan. Keith Gumbinger of HSH Associates, a mortgage research company says because rates on 15-year mortgages are so low, some borrowers may be able to refinance to a shorter term without increasing monthly payments

And one more came to my mind. There is an energy efficient loan. With this loan you can have energy efficient improvements (windows, furnace, and insulation) financed for the term of your loan on top of the standard loan. No extra down payment, no qualifying ratio, no appraisal, no extra time and little to no extra costs. Similar to that is the 203K Home Improvement Loan. This is used when the home really needs work and possibly a bank would not even loan on it in its current condition. With this loan your home is appraised and your loan amount is determined as if the improvements are complete. You get the contractor quotes and the contractor gets paid through escrow as the work is completed. I have not been involved with this type of loan yet, but am been very intrigued by it. This does need some extra time and maybe some extra closing costs.

Loans are being offered to people with credit scores in the mid 600’s. The best rates are for loans with 20% down and under $417,000. The rate inches up a bit on loans to $625,500, and then a bit more above that. No matter what your situation is, rates are excellent. Talk to your lender about the different choices. In the Zillow survey 44% of people questioned said they did not have confidence in the mortgage knowledge. Ask Questions please. The guidelines and procedures have changed since the last time you purchased or the person advising you. I think too often people are geared towards the 30 year fixed with 20% down when there are many other and possibly better options. For investors and condominium owners the guidelines are slightly different.

I personally do not do loans. I work with several very qualified, knowledgeable and efficient lenders. Please do not hesitate to contact me or your favorite Realtor for their info or any real estate related concerns.
Here are links I found interesting on loans:
http://tinyurl.com/3jwahf3
http://tinyurl.com/3o8mcs2
http://tinyurl.com/3sdvowx

I would love to hear from you concerning your loan option choice.

Homeowner Special:

San Mateo County is offering to double energy efficient rebates
http://tinyurl.com/3wk4xzm

And now San Bruno is also offering its residents a direct match for the Energy Upgrade rebates, essentially tripling the incentives.
http://tinyurl.com/3c8saas

"It is Better to Own Real Estate and Wait than to Wait to Own Real Estate."

www.leesellsmore.com
Lee Ginsburg

Good New Finally!!! - New Energy Rebates

2011-08-07T18:09:00.001-07:00

Most of us living in San Mateo County are living in homes forty or fifty years old. Older homes are always in need of some repairs or upgrading. I recently heard that San Mateo County is announcing on Monday that they will match some of PG&E’s energy rebates. You can get up to $8000 in rebates. Not sure if you have to rebuild the entire home to get $8000 but here is the info.

These will double the currently offered rebates. Some upgrades might even qualify for Federal tax Credits. I have read there is even low cost financing with income qualifications.

Attic insulation, furnace and water heater replacement, roof, solar energy and more may qualify. It is certainly worthwhile to look into if you are considering doing some work.

Follow the links for additional information.

http://www.smdailyjournal.com/article_preview.php?id=164559&title=Homeowners%20eligible%20for%20big%20energy%20rebates

https://energyupgradeca.org/county/san_mateo/action_plans/property_type

http://www.co.sanmateo.ca.us/portal/site/cmo/menuitem.c62298d126a043af82439054d17332a0/?vgnextoid=3abf1ab5fe4fb210VgnVCM1000001937230aRCRD&vgnextfmt=DivisionsLanding

ATTEND AN UPCOMING WORKSHOP:

San Bruno - Tuesday, August 23 rd 7-8:30 p.m.

Burlingame - Wednesday, August 24th 7-8:30 p.m.

Half Moon Bay - Wednesday, September 14th 7-8:30 p.m.

San Carlos - Wednesday, September 28th 7-8:30 p.m.

www.leesellsmore.com

"It is Better to Own Real Estate Than Wait To Own Real Estate"

Monte Verde Student Wins Doodle for Google

2011-05-25T21:32:00.001-07:00

Our very own Monte Verde School wins big. Monte Verde is in San Bruno but is part of the South San Francisco School District. It serves Monte Verde area of San Bruno and a portion of Westborough area of South San Francisco. What did they win? Monte Verde Elementary School won a $25,000 technology grant and 7 years old, second grade student, Mateo Lopez won $15,000 college Scholarship. This is the results of “Doodle for Google” contest. 107,000 entrants ranging from Kindergarten to twelfth grade and a second grader from our back yard won. San Bruno and South San Francisco residents should be proud of the Monte Verde School and home grown Mateo Lopez. Hurray!!! Congratulations!!!

For additional information please click on the link: http://digitallife.today.com/_news/2011/05/20/6676677-doodle-4-google-winner-matteo-lopez-7

www.leesellsmore.com

Is a Home Warranty Beneficial?

2011-05-25T20:47:00.001-07:00

In a Real Estate transaction quite often the buyer or seller discuss with their agent the cost, the coverage, the pros and the cons of a Home Warranty. Many people think Home Warranty is the best creation since chopped Liver. I am not a fan of the Home Warranty Companies. I have found they try to find any excuse not to pay. With a Home Warranty you must pay a service call of approximately $50.00. The cost of a home warranty from most of the major companies is about $500 with a few options. Let’s say you purchased an older home and needed service 3 times. That would be a cost of $650.00. When I have called a service technician to my home with no warranty the cost is usually $150 for a total of $450 for 3 calls vs.. the $650 with the warranty. If the buyer can negotiate for the seller to pay for it then you come out a winner but if not it is not the best financial investment although it could be very comforting. Please do not get me wrong, I have had a client get a water heater replaced so it can be beneficial.

The following article was in the San Jose Mercury News recently and I thought it had some very good ideas on the search for good Home Warranty Companies.

http://www.mercurynews.com/real-estate/ci_18060185?nclick_check=1

The following are some of the major Home Warranty Companies servicing the San Francisco Bay Area:
http://www.homewarranty.com/ http://homewarranty.ahs.com/?mp=Google&ovchn=GGL&ovcpn=Competitors&ovcrn=sr3_167478364go+fidelity+home+warranty&ovtac=PPC&SR=sr3_167478364_go&gclid=CIWgzfzVhKkCFUgaQgodqk8SoA http://home-warranty.firstam.com/?code=BM51
http://www.orhp.com/
http://www.hiscohw.com/
http://hghw.com/

Is the Bay Area Home Buyer Obsessed with School Scores

2011-02-18T21:35:00.001-08:00

Many homebuyers in San Mateo, San Bruno, Burlingame, Millbrae and up and down the peninsula purchase their homes based on school scores. I am not sure if API, Academic Performance Index, (http://www.cde.ca.gov/ta/ac/ap/ ) scores is an accurate evaluation method to determine a young person’s education. I find the API scores of a school to determine the college you child goes to as reliable as a City’s Median home prices is in determining the value of your home. Homes in a city are varied and encompass a large diversified area just like a school’s diversified student enrollment and have high and low performing students.

Many of our public schools have a large population of intelligent non- English speaking immigrants. Teachers are trained and cater to that specific group and they also teach to the more advanced student by offering enrichment classes, honor classes, etc. Both of my son’s went to a public High School in San Mateo that possibly has the lowest scores amongst the San Mateo High Schools. They both graduated and went to very good schools. In their graduating class several students were accepted into Harvard, Stanford, MIT and more of the top schools. Some of their friends went to a private high school, were not happy, did not perform well and transferred out. A peninsula high school with a rating of 10 has had an epidemic of suicides. Top scores is not the final answer.

I think some parents feel if their child goes to a high achieving school their child will be a high achiever. I believe an educated, happy and successful child comes more from the family and home not from a school’s API scores. A parent must spend quality time with their child as a person and also as a teacher. They must work as a team with the teacher. They must read to them and listen to the child read. They must review homework and make sure it is completed. President Obama said in his state of the union address (http://www.whitehouse.gov/state-of-the-union-2011), "We need to teach our kids that it's not just the winner of the Super Bowl who deserves to be celebrated, but the winner of the science fair."

I believe some home buying parents depend too much on school scores. I think they should also look at the parent participation, the teacher/student ratio, the teacher relationship with the students and parents, the extracurricular classes, sports, clubs, spirit, music, language classes, art programs, fund raising, and more. They should visit the school and sit in on the class. We must keep in mind some people will perform better when they are the high performer amongst their peers rather than an average performer in a high performing peer group. Often a high self esteem will lead to a more successful, happy and satisfied adult. And isn’t that our goal.

Many buyers whom prefer a high performing school are on the right track. They are probably the same parents that will begin the leaning process in their home. They will read, do math, get involved in class projects and in the school. They will bring up their children with the idea education is of vital importance. In my home it was understood that after High School it was college. In today’s home after college it is advanced degrees. As caring parents we must understand our children. Not every child needs to go to college to be a successful adult. Many of the schools are beginning to offer vocational classes again. I applaud that. There are culinary, mechanic, nursing and other very good programs.

As Margaret Lavin writes in the San Jose Mercury news, http://www.mercurynews.com/san-mateo-county/ci_16994346?nclick_check=1 "we need to talk to our children. Often that is difficult as we are working long hours and try to have a life also but tete-a-tete with your school aged children is important."

I will close with a quote from Margaret; “Standardized test scores influence teachers reputations, school funding, and of course Real Estate Prices. Being a brainiac is great, but being personable and well rounded also leads to future happiness and success.”

I would love to hear your thoughts.

www.leesellsmore.com

2010 Remodeling Cost as Compared to Resale Value

2011-02-09T20:48:00.001-08:00

Remodeling Magazine annually researches the cost of remodeling with the help of Home Tech Information Systems. They also research the value remodeling adds with the help of the National Association of Realtors. They put this information together by regions. For a complete report please go to http://www.remodeling.hw.net/2010/costvsvalue/national.aspx

Below are the results for the San Francisco region.
A small difference in the size or scope of a project, or in the quality of finishes and accessories you choose, can dramatically affect the cost.

The “value” of a project at resale is always subject to forces that are difficult to predict. Changing how a space is used may meet the immediate needs of the current homeowner, but may be at odds with what prospective buyers are looking for. How the value of a remodeling project is perceived also depends on a variety of factors that traditionally affect home values, including the condition of the rest of the house, the value of similar homes nearby, and the rate at which property values in the surrounding area are fluctuating. Comparable values are particularly difficult to judge in the current economic climate, in which the effect on the value of surrounding homes of foreclosed properties and short sales are part of the equation. The mere presence of a large number of unsold homes, whether new or existing, well-maintained or distressed, can have a constricting effect on surrounding home values.

The Cost vs. Value Report provides an accurate snapshot of the general housing market, but it cannot be applied accurately to an individual remodeling project for your particular home. Resale value is only one factor among many that a homeowner must take into account when making the decision to remodel. I think the best course of action is to obtain construction cost estimates from reputable local remodelers and then give me a call at 877-Lee-Sells to discuss the value it will add to your home.

Project Job Cost Resale value % recouped

Attic Bedroom $70.938 $74,206 1 04.6%

Bath Addition $54,927 $44,476 81.0%

Bath Remodel $22,014 $22,440 101.9%

Deck Addition $18,636 $18,987 101.9%
(comp)

Deck Addition $15,091 $17,025 112.8%
(Wood)

Entry Door $ 4,197 $3,438 81.9%
(fiberglass)

Entry Door $ 1,546 $2029 112.8%
(Steel)

Family Room $113,274 $109,553 96.7%

Garage Addition $79,104 $64,208 81.2%

Garage Dr. Repl.$1,579 $1,992 126.1%

Home Office $34,574 $21,641 62.6%

Major Kitchen Remodel $71.015 $67,583 95.2%

Minor Kitchen Remodel $25,039 $27,816 111.1%

Master Suite Addition $143,853 $123,003 85.5%

Roof Replacement $28,699 $21,821 76.%

Siding Replacement $14,931 $11,111 74,4

Holiday Shopping for a Home? The next 10 days are Black Fridays In Real Estate!

2010-12-19T00:18:00.001-08:00

Are you serious about buying a home? Do you want to take advantage of record low interest rates and the lowest home prices in 5 years? If you answered YES to either question: Then do it now!!!

Why do I say that you might ask? You have much less competition. The people not so serious are fighting the crowds in the malls, (I hope at my son's store Designers Center at "The Shops at Tanforan") not at open houses. Sellers that have their homes on the market now are serious (desperate). Who wants people coming through their home during the holidays? Banks are even more motivated to get rid of these homes before the end of the year. The sooner they get them off their books the better. Now that the foreclosure moratorium is basically over they will have plenty more to sell. They want to get rid of these now. Make an offer. They will listen. They might even gift wrap it for you at no extra charge.

I suggest you hire a personal shopper to do your Christmas Shopping and contact your favorite Realtor to help you buy a home now! I congratulate you in advance. Merry Christmas and Happy House Hunting!

www.leesellsmore.com

Is the Giants Victory Similar to Buying a Home?

2010-11-14T21:15:00.001-08:00

How can the baseball World Series be anywhere related to Home Buying you may ask. Let me explain…

The San Francisco Giants won as a team, and that is the only way to successfully buy a home. You need a team. A great mortgage broker; Tim Lincecum. An excellent Realtor, who is not just a real estate agent (follow this link: http://ow.ly/39GSe); Cody Ross. A hardworking assistant; Edgar Renteria, an experienced inspector; Aubrey Huff, a dependable escrow officer; Busty Posey, and of course a reliable management team; Bruce Bochy.

Now you see the importance of a team. Without one player you may not get the home. A good Realtor has a good team.

Another correlation to the Giants TEAM Victory is the Team of Low Interest Rates, Low Prices, and Motivated Sellers. That leads to the Victory of Closing on a Home; Brian Wilson.

www.leesellsmore.com

Free Home Buyer Seminar

2010-10-27T21:41:00.001-07:00

Home Buying Seminar

Wednesday Nov. 10 - 6:00 P.M.
Location: 180 El Camino Real, San Bruno
Hosted by Lee Ginsburg and Wells Fargo Bank

One Person’s Loss, Is Your Window Of Opportunity!!!

·Learn How To Take Advantage of Today’s Real Estate Market. Yea!
· REO’s, Bank Owned Property, Foreclosures, Short Sales
· Qualifying For a Loan in Today’s Market. It’s not that bad.
· Low Down Payment Programs. Try 3.5% Down!
· Understand the Home Buying Process.
· Closing Costs, Inspections, Contingencies, Title Insurance.
· First Time Home Buyer Credits.
·Real Estate Auctions

Complimentary: Parking·Dinner· Home Buying Guide

There is NO CHARGE for this seminar. Pre-registration would be helpful. Guests and Walk-ins are welcomed. 877-Lee-Sells 533-7355 Or email lee@leesellsmore.com

Foreclosure Baloney

2010-10-21T22:44:00.001-07:00

I don't get this foreclosure moratorium stuff.

I don't understand why the press and politicians are putting so much into it. I can assure you the banks are not foreclosing on anyone current on their homes. Many of these home they are foreclosing on are vacant and some inhabitable.

A sad fact I heard recently is many homeowners are losing their homes due to medical bills. That should not be.

Making the banks review additional papers, re-file, and delay the inevitable is only getting revenge and that is not healthy. No good come out of that.

We should be putting pressure on the banks to modify the loans of homeowners who are good, honest, hard working people. Many of these people for whatever reason can't make payments at the current payment but can and want to make modified payments. I don't understand the need for a bank to go to the expense and foreclose on a home with a $500,000 loan and a month later sell the home to someone else for $300,000. The original owners would have been capable and extremely happy to make payments probably on $350,000. The banks would have been $50,000 + expenses better, with less property on the market values would be up protecting their equity in all their portfolio.

I have another idea to deal with this foreclosure cancer. Equity Share. Let the banks lower the principal and they share in the increase in equity with the bank getting the first 25% of any increase. This allows the bank to regain their loss and possibly make a profit. More important it keeps more people in their homes, and creates a lower inventory of homes for sale stabilizing and increasing home prices. With stable and increasing home prices it will eradicate the foreclosure cancer and increase the value of the homes already in the banks hands.

It sounds so simple. Why don't the politicians fight for that rather than trying to get revenge on the bank.

http://www.asianjournal.com/dateline-usa/15-dateline-usa/7268-california-officials-demand-foreclosure-moratorium.html

http://thehill.com/homenews/campaign/124533-foreclosure-moratorium-takes-center-stage-in-senate-battleground-states

www.leesellsmore.com

Investing: Bay Area Real Estate Vs. The S&P

2010-10-06T18:29:00.001-07:00

I personally have been investing in Bay Area real estate since I moved out here from Brooklyn in 1977. I have 75% of my assets invested in Bay Area Real Estate. Most of my remaining assets are invested in the stock market. I was curious which investment has had the best return on my investment over the last 20 years. Bay Area Real Estate has proven to produce an 8% greater return than the S&P over the last 20 years. Quite honestly I was expecting that number to be greater, but I am grateful, that with all of the ups and downs, I have made the right decision.

Let me quickly explain my numbers. I took a $100,000 investment in the S & P in 1990 and compared that to a $500,000 home purchase using the same $100,000, or the standard 20% down payment also in 1990. I am not a statistician so my numbers are rounded off and are deemed reliable, but certainly not guaranteed. These numbers are based on not selling and leaving it invested in an S&P index fund. Let me say if you paid cash for that same $500,000 home you would be substantially better off with investing in the S&P.

Please review the facts and would love your comments.

Year	S&P % CAGR *	$100,000 investment will be worth	Bay Area % Median Price Change *	$500,000 purchase with 20% down payment
1990	-3.42	$96,580	-0.005	$497,500
1991	30.94	$126,462	0.024	$509,440
1992	7.6	$136,073	-0.012	$503,326
1993	10.17	$149,911	-0.004	$501,313
1994	1.19	$151,695	0.022	$512,342
1995	38.02	$209,370	-0.004	$510,292
1996	23.06	$257,650	0.05	$535,807
1997	33.67	$344,400	0.072	$574,385
1998	28.73	$443,347	0.121	$643,886
1999	21.11	$536,937	0.131	$728,235
2000	-9.11	$488,022	0.253	$912,479
2001	-11.98	$429,557	0.046	$954,453
2002	22.27	$525,219	0.086	$1,036,536
2003	18.72	$623,540	0.077	$1,116,349
2004	10.82	$691,007	0.151	$1,284,918
2005	4.79	$724,106	0.115	$1,477,655
2006	15.74	$838,081	0.051	$1,553,016
2007	5.46	$883,840	0.071	$1,663,280
2008	-37.22	$554,874	-0.227	$1,452,043
2009	27.11	$705,301	-0.207	$1,151,470
	TOTAL GAIN	$605,301	TOTAL GAIN	$651,470

Tax consequences and principal pay down really need to be considered to compare real gains.

CAGR is the Compounded Annual Growth Return -http://www.moneychimp.com/features/market_cagr.htm

Bay Area Median Price from CAR Annual Historical Data Summary http://www.car.org/tools/smart/archive/2010ahds/

I consider Real Estate a safer and more conservative investment. The temptation to buy and sell as the market fluctuates while invested in the stock market is much greater than in Real Estate. I believe Real Estate has many other benefits; certainly the tax benefits are great. As an investor you can have a non-cash write off of depreciation, and as a homeowner you can deduct all interest and property taxes, plus you are allowed a tax free gain of $250,000. Picking a stock is much harder than picking a home. Most homes in a regional area appreciate in similar proportions. I quickly looked at San Bruno and San Mateo for the last 10 years and they both appreciated 19%. Not sure if you can say the same for the S&P. You could lose everything if you invest in the wrong stock. Having the discipline not to sell a stock is very difficult. With Real Estate you can never lose everything. Even if it burns down and you have no insurance, the land has value. Real Estate investments are a bit more difficult to liquidate so it is forced savings. Most important Real Estate offers you a home to live in. The cost of borrowing for homeowners comes with the tax benefits above and in 30 years it will be paid in full. The cost of borrowing for Real Estate investors is paid by the tenants and so is the principal payoff.

Many financial advisers believe in diversification; small cap, large cap, international, etc. I do not suggest that for Real Estate Investing. Managing single family homes is different than multi unit buildings and different again from commercial property. Managing properties in different areas even if they are the same type of property does not work either. Different areas have different rent control policies, different laws, and different expenses. I am a believer one should only invest in real estate you can drive to in an hour or two. I heard about a great investment on the east coast. If everything went as planned it would have been a great investment but being 3000 miles away I was not able to control the plan. I am happy to be out of that investment.

I would love to hear your feedback.

www.leesellsmore.com

Bless San Bruno

2010-09-11T23:28:00.001-07:00

You know we have seen other natural disasters similar to the San Bruno Explosion.

When we watch it on TV and it happens hundreds or thousands of miles away it a tragedy, it is terrible.

When it happens around the corner from you and it is heartbreaking.

When it happens to you, I doubt there are words to explain those your thoughts.

When you see the outpouring of volunteers, donations, and support it is heartwarming.
It makes me proud to say that I have lived and worked in San Bruno for 35 years ever since I moved from the East Coast.

Next time someone asks me where I work, I am going to say Loud and Clear;
SAN BRUNO, "The City of Care and Compassion"!

Want to read more on the Care and Compassion of San Bruno http://www.contracostatimes.com/bay-area-news/ci_16045332?nclick_check=1

http://www.sfexaminer.com/local/Donations-rolling-in-to-San-Bruno-102643424.html

Lets give credit where credit is due. The Police Department, The Fire Department, Mayor Jim Ruane, City Manager Connie Jackson, City Council People, neighboring Cities, Millbrae, Burlingame, South San Francisco, Daly City and others worked so hard and professionally. Within hours an evacuation center was set up and within 12 hours many state and federal agencies, Red Cross, along with insurance companies had tables set up to help with the recovery.

Want to know where to Donate -http://http://www.contracostatimes.com/bay-area-news/ci_16045332?nclick_check=1

http://abclocal.go.com/kgo/story?section=news/local/peninsula&id=7660232

Lee Ginsburg
www.leesellsmore.com

Is Your Home Under Water? New FHA Refi might help!!!

2010-09-06T22:17:00.001-07:00

So many home owners owe more than their home is worth (under water). Some have tried to modify their loan, short sale, refinance and have run into a frustrating brick wall.

Well here is a new alternative. FHA has a new loan that will allow refinancing for homes under water. They do have very specific requirement but it is worth a shot. Please read the following article from the Sunday September 5, 2010 S.F. Chronicle written by Kathleen Pender in her Net worth column. Please do not hesitate to contact me for FHA approved lenders. lee@leesellsmore.com or 877-Lee-Sells

KATHLEEN PENDER
September 5, 2010

S.F. Chronicle
Net Worth

FHA to offer short refis

On Tuesday, the government will launch yet another program for homeowners who need help with their mortgages.
This one will let certain borrowers who are current on their payments and owe more than their homes are worth refinance into a new mortgage guaranteed by the Federal Housing Administration, but only if the owner of their first mortgage agrees to reduce the principal balance by at least 10 percent.
    It’s called the FHA short refi program. Instead of selling a home for less than the outstanding debt (a short sale), the homeowner refinances for less than the outstanding debt.
   Like the government’s other mortgage modification and refinance programs, this new one is voluntary on the part of lenders and servicers and has lots of restrictions. These factors are likely to limit its reach.
Some of the new rules:
    The owner must use the home as a primary residence, be current on payments, be underwater (owe more than the home is worth), have a FICO score of at least 500 and meet certain debt-to-income ratios.
The existing loan can not be an FHA loan. It does not have to be owned or backed by Fannie Mae or Freddie Mac, although it can be.

   The homeowner must qualify for the new loan under standard FHA underwriting requirements. The new FHA loan can be fixed-rate or adjustable.
    The new loan balance must be less than FHA limits. In most Bay Area counties, the limit this year is $729,750 for a single-family home. To look up the limit in your county, see links.sfgate.com/ZKFV.
      The borrower’s first-mortgage holder must agree to write off at least 10 percent of the principal balance, bringing it to no more than 97.75 percent of the property’s market value.
     If there is a second mortgage, its owner must agree to subordinate it to the new FHA loan. Also, the balance of the new first and second mortgage combined can not exceed 115 percent of the home’s market value. That may require the second-mortgage balance to be reduced, perhaps to zero.
   The government is providing incentives to owners and servicers (which are often the same bank) to reduce the balance on second mortgages. The servicer can receive $500 per loan. The owner can get 6 to 21 cents for every dollar the balance is reduced.
    The money for these payments is coming from TARP, the Troubled Assets Relief Program.
Second-mortgage holders might agree to this deal if they think the homeowner is likely to do a short sale or go into foreclosure, in which case they might get zero.

Will lenders agree?
The program is not making payments to first-mortgage holders, who must agree to accept less than 100 percent of what they are owed so the homeowner can refinance into an FHA loan.
    But some might agree to it if they think it will net them more than a foreclosure.
“There are a bunch of costs in a foreclosure you don’t have in a refi,” such as attorneys’ fees, maintaining the vacant home and paying an agent to sell it, says Diane Thompson, an attorney with the National Consumer Law Center.
“Investors have been asking for a short refi program for at least two years,” she says.
“One big concern they have is that losses are being hidden or delayed.”
      Some investors might prefer taking a loss now, rather than waiting and having the loan go into foreclosure or into a modification that fails.
      Most home mortgages were put into pools and the cash flows (mortgage payments) were divided up and sold to investors as securities. The highest-rated securities get paid first, the lowest-rated get paid last.
       In a short refi, investors who own the top-rated securities could get back all their investment. Owners of lowerrated securities could take a loss, but it might be less than what they would lose in a foreclosure.
A short refi “may be a way for (lenders) to bite the bullet and take the loss now, especially in markets that are continuing to decline in value,” says Rick Harper, director of housing with the Consumer Credit Counseling Service of San Francisco.
      Borrowers who want a short refi should contact their loan servicer. If that’s not fruitful, they can refinance through any FHA-approved lender, although the original servicer still has to approve the refi.

To learn more about short refis, see links.sfgate.com/ ZKFW.
Other refi options
The short refi program probably won’t help borrowers who are barely underwater and can afford their payments.
“If (lenders) don’t think the customer is in danger of imminent default, they may not be willing to write down the principal balance,” says Vicki Bott, a deputy assistant secretary with the U.S. Department of Housing and Urban Development.
It also won’t help borrowers who are not underwater, but who cannot refinance into a Fannie or Freddie loan because their loan-to-value ratio exceeds 80 percent. These borrowers might be able to refinance into a standard FHA mortgage, which allows loan-to-value ratios of up to 97 percent. Rates and closing costs are competitive with conventional mortgages, although FHA loans require mortgage insurance. For more, see links.sfgate.com/ZKFX.
Borrowers who are underwater but can’t get a short refi might qualify for the Home Affordable Refinance Program, but only if their loan is owned or backed by Fannie or Freddie.
Under this program, a borrower can refinance into a new Fannie or Freddie loan for up to 125 percent of the home’s market value, although not all lenders will go that high.
There is no principal reduction in this program.
For more, see links.sfgate.
com/ZHOC.
To investigate these and other options, including mortgage modifications (in which a lender changes the terms of an existing loan), contact a HUD approved mortgage counselor.
To find one, call (800) 569-4287 or go to links.sfgate.com/ ZEVN.
Net Worth runs Tuesdays, Thursdays and Sundays. E-mail Kathleen Pender at kpender@sfchronicle.com. Read her blog at sfgate.com/blogs/pender.
“Investors have been asking for a short refi program for at least two years. One big concern they have is that losses are being hidden or delayed.”
Diane Thompson, National Consumer Law Center

To some Low Interest Rates are Better than the IPhone 4

2010-07-18T18:08:00.001-07:00

Low interest rates also have apps. 30 yr., 40 yr., 15 yr., conforming, adjustable, 1 yr, 5 yr jumbo and more. Oh they are getting the best reception in years.

You may not see the lines out the door but look at the stack of files on the loan agents’ desks. We are in record low territory. Rates have never been this low in the 50 years of record keeping. How low? Below 5% fixed for the next 30 years. 3.75 fixed for the next 15 years. That’s how low. If you are buying you must understand these are not normal times. Take advantage. Jump in. What other industry will fix their price for the next 30 years. Ask the gas station on the corner if you would commit to buying your gas there for the next 30 years will they hold today’s price.

Homeowners, no matter when you re-financed last review the situation again with your loan agent. If you do not have one I can recommend some I work with.

A note to both homeowners and home buyers: If you are comparing rates you must compare at the same time. Interest rates fluctuate throughout the day and you want to be sure you are comparing apples to apples. You want to know what the fees will be. Also I strongly suggest you work with a person you have worked with previously or you know someone who has. The reason being a lender can quote any rate in a conversation but it is another issue to honor when reality comes. Also I suggest going with someone that only does loans. The lending rules, programs and policies are changing daily. One must be in the market continuously to be on top of it all. Going in and speaking to your favorite bank teller is not recommended. Call me and I will give you some names.

In today’s market if you put down 20% or have 20% in equity you will get the best rates. Interest rates break at $417,000 and below, at $729,750, and then again over the $729,750 each bank has their own policy. You can obtain financing with only 3.5% down or in equity. Yes you have to pay a little premium but that is nothing as compared if interest rates increase. The average interest rate over the last 25 years is about 8 %. Right now it is like the day after Christmas sale. It is almost half price. It was not that long ago that we had 14-18% interest. Try it! You will like it!

When refinancing you want to consider how long you will live in the home, how much of your present payment is going towards principal and how much will go with your new payment. It used to be if you can lower your rate by 2% then it is worth the while to refinance. I don’t think there is any real number that says you should refinance. It is a personal choice based on your finances and your goals. I suggest multiplying your old payment by the remaining term and or how much longer you think you will be in your home. Compare that cost vs. the cost at your new rate. Then compare your remaining balance. Many home buyers are putting in cash to buy the loan down to get the lowest rates and to have 20% equity. Many are re-financing into 15 year loans. Keeping the payments about the same but paying off the home in half the time. Some are financing and taking money out to buy investment property. This is an opportunity not to pass up. Talk to your accountant, real estate agent, mortgage person, financial advisor and or fortune teller.

Homebuyers don’t realize how good it is today. Let me quickly review some numbers. If you qualified last year for a $400,000 loan when rates were 5.5%, today you can qualify for $450,000 and have the same payment. Today a $400,000 loan will cost about $2000 a month. Last year that same loan wild cost almost $300 more. Don’t wait any longer. We in the business are surprised how low rates are and how long they have been low. My crystal ball tells me rates will increase but it won’t commit to when. Buying a home is an exciting and nerve racking event. With a good team (real estate agent, lender, and inspectors) supporting you we can help alleviate a lot of the stress. Call me toll free at 877-Lee-Sells and I will refer you to the good lenders I work with.

www.leesellsmore.com

Prudential Ca. Realty Gives Locally

2010-07-07T20:10:00.001-07:00

Prudential California Realty is more than just Real Estate Company. We in the San Bruno office are a group of very giving and caring local people with lots of knowledge and experience in Real Estate. A portion of each transaction is donated to Shelter Network in San Mateo, each year we adopt a family from San Bruno, South San Francisco or Millbrae for Christmas, one of our agents feeds the homeless monthly, another agent is continuously baking cookies to raise money for Cancer, others walk miles for their causes and we all graciously chip in. It is an honor to work with people who care.

Prudential California Realty recently awarded grants to local teachers from Brisbane, South San Francisco and Daly City. With school fiancés drastically cut this year I am sure it is greatly appreciated. These grants are awarded to teacher whom made an exceptional contribution to their students.

My wife is a teacher and I know that most teachers contribute to their students. Unfortunately we can’t reward all of them. I will say all teachers are appreciated.
This year the following teachers were awarded grants:
Brisbane Lynn Howe Brisbane Elem.
Daly City Jane Chang Junipera Serra
SSF Feleciana Stevenson El Camino High
Ray Galela El Camino High
Meg Milana SSF High
Joslyn Negherbon Westborough Mid.
Cheri Howard Westborough Mid.
Congratulations to the winners and Thank You to all teachers.

When thinking about Real Estate contact the Local company that gives back locally.

Click or copy and paste the link to read more. http://www.prurealty.com/ssc/company_information/press_releases/Ed%20Foundation%20Release%20-%20San%20Mateo%20County%20-%202010.pdf

Baseball's "Field of Dreams" for Sale

2010-06-09T18:45:00.001-07:00

Yes! The baseball Diamond that Universal Studios built in
Dyersville, Iowa is for sale. Please let me know if you have interest. I would love to represent you in the negotiations. I can help you find a lender and possibly a moving company to more the field to San Mateo County. That would add value to our homes.

Follow the link
http://www.telegraph.co.uk/culture/film/film-news/7721998/Field-of-Dreams-for-sale.html

www.leesellsmore.com

Remodeling? Don't do it to resell!

2010-05-08T22:43:00.001-07:00

Midrange Remodeling Costs Vs. Payback from Remodeling Magazine
http://www.remodeling.hw.net/2009/costvsvalue/division/pacific/city/san-francisco--ca.aspx

Job Cost	Resale Value	Cost Recouped	Project	Job Cost	Resale Value	Cost Recouped	Change vs.. 2008-09
$13,114	$10,674	81.4%	Siding Replacement (vinyl)	$10,607	$8,476	79.9%
$12,760	$11,328	88.8%	Window Replacement (vinyl)	$10,728	$8,217	76.6%
$13,804	$12,175	88.2%	Window Replacement (wood)	$11,700	$9,044	77.3%
$47,052	$32,057	68.1%	Bathroom Addition	$39,046	$23,233	59.5%
$18,864	$14,517	77.0%	Bathroom Remodel	$16,142	$11,454	71.0%
$16,956	$13,922	82.1%	Deck Addition (composite)	$15,373	$10,904	70.9%
$12,838	$11,744	91.5%	Deck Addition (wood)	$10,634	$8,573	80.6%
$3,835	$2,930	76.4%	Entry Door Replacement (fiberglass)	$3,490	$2,275	65.2%
$1,353	$1,732	128.0%	Entry Door Replacement (steel)	$1,172	$1,470	128.9%
$100,023	$73,551	73.5%	Family Room Addition	$82,756	$54,051	65.3%
$83,463	$45,245	54.2%	Sunroom Addition	$73,167	$37,118	50.7%
$184,839	$143,073	77.4%	Two-Story Addition	$156,309	$107,286	68.6%
$63,803	$53,923	84.5%	Major Kitchen Remodel	$57,215	$41,260	72.1%
$124,579	$90,616	72.7%	Master Suite Addition	$103,696	$67,578	65.2%
$23,210	$21,991	94.8%	Minor Kitchen Remodel	$21,411	$16,773	78.3%
$24,712	$18,829	76.2%	Roofing Replacement	$19,731	$13,133	66.6%

Bay Area Prices up 20%????

2010-04-03T22:10:00.001-07:00

The headline reads Prices Up 20%.

What do these numbers mean? I am sorry to tell you, your home did not increase 20%. Buyers don’t get scared off and sellers don’t put your home on the market for 20% more than you paid last year.

These numbers are totally misleading. Prices are increasing in some areas and in some price points but not by 20%. Possibly 3-5%.

You can make numbers do whatever you want. First you need to know if the numbers are for Single Family homes or Condominiums or both. Then are they comparing it to the same month in a previous year or just the previous month. Are they talking about median price or average price. The Median price is the price that is in the middle; there are an equal number of transactions above and below. These numbers are very general. It is interesting and might give a slight indication as to the market in the country, in your state, in your city but Real Estate is very localized down to the neighborhood in the city. If you want to know the value of your home call your Real Estate consultant.

An example of Median prices:

220,000
350,000
480,000
490,000
510,000

AVER IS 410,000

MEDIAN =480,000

The numbers recently announced are really telling us that higher priced homes are beginning to sell. In San Mateo County 32% of Single Family homes sold in Feb. 2009 were under $500,000 that dropped drastically to 13% in 2010. Homes over $500,000 increased from 50% to 59% from Feb. 09 to Feb. 10, driving the median price up. Homes over $1,000,000 increased 11% from 17% to 28%.

The number that shocks me is that over 27% of all sales in the nine county Bay Area were paid in cash. That is with a median price of $354,000. Many people are taking money from the stock market and or IRA account and equity from their homes. Cash is King.

Please look at the numbers below. Inventory has decreased more than 10%, sales have increased almost 10% and the days on market has decreased a dramatic 25%. This is for single family homes listed on the MLS. All the numbers are indicating good things ahead.

San Mateo Cty. Inventory Sales DOM
Feb. 2009 1576 208 83
Feb. 2010 1346 228 64

http://www.dqnews.com/Articles/2010/News/California/Bay-Area/RRBay100318.aspx

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/03/19/BUG81CHVGJ.DTL

Good News! Good Bay Area Real Estate News!!!

2010-03-27T18:07:00.001-07:00

A lot of positive bills, thoughts and activities have been happening on the Bay Area Real Estate Front. I have been trying to write this for a while. Each time I sit down to write there is more I have to add to it. That is a good problem. So exciting! Enjoy the Good News.

Home Buyer’s Delight
You can still get the federal Home Buyer Credit of $8000 for the first time buyer or $6500 for the move up buyer. You must be in contract by the end of April and close by the end of June.
For additional information: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Because California Home Buyers are special Governor Schwarzenegger signed into law a State credit for home buyers. I personally think this program is great. It helps many people purchase their first home and it puts people to work. A Win-Win!!!
Under the provisions, the bill:

Provides a 5% tax credit, up to a $10,000 limit, to all buyers of new, never-occupied homes.
Provides a 5% tax credit, up to a $10,000 limit, to first-time buyers of existing homes.
Sets aside $100 million for each program, for a total of $200 million.
Requires buyers to close escrow between May 1 and Dec. 31 to qualify. New-home buyers have until Dec. 31 to sign a purchase contract, and then must close escrow by Aug. 16, 2011.
Requires buyers to live in the home for at least two years.
Provides for the tax credit to be paid in thirds over a three-year period.
Sets no income limitations on buyers.
Requires buyers to repay the tax if they fail to live in the home for two years or fail to close escrow on a new home by Aug. 16, 2011.

For additional information: http://gov.ca.gov/

http://www.mercurynews.com/news/ci_14758523?nclick_check=1

Bay Area Home prices increase 20%
The number of home sales in the 9 County Bay Area were down for Feb. 2010 as compared to 2009 but the median home price increased more than 20%. I wish I can tell you that your home went up 20%. What I can say is that the higher priced homes are beginning to sell after months of being stagnant.
For more details:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/03/19/BUG81CHVGJ.DTL

Having trouble making payments? Have no fear help is finally on the way.

Bank of America has announced a program for a select group of Countrywide loans where they will forgive the principal. Yea! Let’s hope others will follow.
Please click on the link for the details. http://www.bankrate.com/finance/mortgages/bank-of-america-offers-home-loan-forgiveness-1.aspx

HAFA –Home Affordable Foreclosure Alternatives
The federal government has recently announced a new program to take effect April 1 2010. It will make the loan modification and short sale process easier and more systemized.
For additional information: http://www.realtor.org/government_affairs/short_sales_hafa

Just yesterday Obama announced and even newer program focusing on people owing more than their home is worth, people underemployed or unemployed. Stay tuned. The details of that are not out yet.

All these programs are great but my solution I think is more of a Win-Win. I propose to reduce the principal to market value and then the bank and owner should share in any equity build up when the home is sold. Under the Lee’s Act, the homeowner stays in their home, we maintain home pricing by putting a stop the deluge of short sales and foreclosures and the banks and homeowners have a chance to make some money down the road. Everyone wins; Homeowner, bank and neighbors by stabilizing home prices and avoiding blight!

Tax Relief for Debt Forgiveness
State Tax Relief for those who incurred debt forgiveness from a lender through the loss of their homes to foreclosures and or short sales is still up in the air. I believe the IRS is ok with it until 2014 but California is still up in the air. Governor Schwarzenegger is asking for a proposal before April 15.
Click the link for additional information. http://www.sacbee.com/2010/03/16/2609494/california-tax-relief-for-forgiven.html

Homeowner Savings
Are you considering purchasing a new appliance. The California’s “Cash for Appliances” begins on Earth day, April 22, 2010 and runs only for a month. Purchase a new energy efficient appliance and recycle your old one and you are eligible to get up to $100 per appliance.
The program highlights are:
Purchases starting Apr 22, 2010 until May 23, 2010

· Claim within 30 days of purchase

· Claim by Jun 22, 2010

May be combined with other rebates
Must recycle existing appliance
State resident

Click on the link for the real details. http://www.energy.ca.gov/recovery/energystar.html or http://www.kcra.com/cash-for-appliances/21363879/detail.html

and More Energy Efficient Savings:
Our federal government still offering a credit if you purchase an energy-efficient product or renewable energy system for your home. You may be eligible for a federal tax credit if you replace water heaters, solar energy, windows, doors, heating and cooling systems and more.
You will find an overview of the federal tax credits for energy efficiency by clicking on the link: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

Capital Gains Tax
If congress does not act Capital Gains tax will be increasing by 5% in 2011. They could propose to increase it even more. Due to the economy it is doubtful for them to maintain the current capital gains rate OF 15%. If you are considering selling an investment property today might be the right day. Call me toll free at 877-Lee-Sells. http://money.cnn.com/2010/02/01/pf/taxes/obama_budget_tax_changes/index.htm

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