Sacramento Real Estate Gal

Farewell... For Now At Least!

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Tue, 22 Feb 2011 22:07:00 +0000

I have been meaning to write this for a while, but it keeps getting put off. The reasons are obvious - my focus today is on my family - my husband and raising my two wonderful little pre-schoolers.

So, although I do still have a broker's license to sell real estate in the greater Sacramento area, I am currently not selling real estate.

To my readers, thank you for reading and visiting this blog. To all the companies I worked at during my real estate career, it was so much fun. Thank you.

I'll see you around!

Last Day for Federal Tax Credit

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Fri, 30 Apr 2010 15:53:00 +0000

Obviously, this is not news to many home buyers but those of you wanting to get that federal tax credit with offers that are already out there should get the sellers to respond to your offer and create a binding contract by the end of the day today. A "binding contract" does not mean just an offer. It is imperative that you receive both the buyer and seller's signatures on the contract form and that the acceptance of the seller is conveyed to the buyers. It is only when acceptance is conveyed that a binding contract is created.

This is what the California Association of Realtors has to say about it:

This is the final day for home buyers to enter a binding contract to take advantage of the federal tax credits for certain home buyers. Eligible purchasers must enter contract by April 30 and close escrow before July 1 to claim the tax credits on their federal tax returns. A one-year extension may be available for members of the military and other federal employees who served on official duty outside the U.S. for at least 90 days from January 1, 2009 to April 30, 2010.

First-time buyers may be eligible for up to $8,000, while existing homeowners may be eligible for a tax credit of up to $6,500. Neither credit requires repayment if buyers live in the residence for three or more years.

Military Families Get Extended Housing Tax Credit

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Thu, 29 Apr 2010 15:56:00 +0000

Home buyers today are very aware that time is running out for the purchase of a new home - in fact the last few days of the month of April are probably going to be fraught with stress with many home buyers and Realtors alike because unless they are able to get into a binding contract by April 30, the federal tax credit will be lost. But military families do not need to rush. Their deadline for the federal home buyer's tax credit is April 30, 2011. April 30th is the last date to enter into a binding contract and the deadline to close a purchase transaction is June 30, 2011.

This includes military personnel, members of the Foreign Service and employees of the intelligence community. The extension applies to any individual and if married to the individual's spouse who serves on qualified official extended duty service outside the United States for at least 90 days during the period of December 31, 2008 and May 1, 2010.

All other home buyers must be under contract by April 30, 2010 and close by June 30, 2010 to qualify for the federal tax credit.

New Law about Lead Based Paint

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Tue, 27 Apr 2010 03:00:00 +0000

If you're renovating an existing home built before 1978, you should know that a new law is now in effect regarding who can work on the remodel. According to this law, renovations that disturb lead-based paint in older residential dwellings and child-occupied facilities must generally comply with the Lead-Based Paint Renovation Rule of the Environmental Protection Agency (EPA).

The EPA had made this rule in 2008 but delayed implementing it until now. It is now in effect since April 22, 2010. The rule applies to building contractors, handymen, residential landlords, property managers, and anyone else who is paid to perform renovations or to direct workers to perform renovations as specified. The lead renovation rule does not apply to homeowners renovating the homes they live in. However, sellers of target housing must, among other things, disclose to their buyers any known lead-based paint and lead-based paint hazards as always.

New Home Owners Garden Ideas

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Wed, 21 Apr 2010 15:42:00 +0000

As someone who remembers the allure the unplanted backyard presents to a new homeowner, I wanted to write a blog post about what does well in the Sacramento garden. In our first home we thought we had hit the jackpot when we were able to grow a few things, but the careful application of the gardening principles we learned then have made many such gardens elsewhere. So if you are a new homeowner in Sacramento or have just relocated from another city, or even another state, here's what grows extremely well. By experience.

Tomatoes. Well, this should have been obvious, or will soon become obvious when you're driving around on Highway 5 and see truckloads of tomatoes being transported around. Tomatoes are easiest vegetables to grow and The Home Depot lately has also been selling tomato cages which makes them even easier to grow because they need support. Just find a sunny spot in your garden and plot a vegetable garden with plenty of tomatoes. You won't be disappointed. Just make sure you water, water, water. Tomatoes like their feet in water and head in the sun, so to speak.

Okay, so you're not a vegetable person. Maybe you want flowers. If you want something that is very lot maintenance and just want something pretty to look at that makes your heart sing but don't want to commit yourself to it year after year, consider some morning glory seeds. They grow instantly, grow fast and they are the prettiest flowers you can imagine. My favorites are the blue ones that become purple in the summer. Plant along a fence and watch them grow.

Next time I'll have some more flower and tree advice for relocated homeowners!

No More State Tax on Forgiven Real Estate Debt

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Tue, 13 Apr 2010 21:13:00 +0000

This just in - Distressed homeowners no longer have to pay California state income tax on debt forgiven in a short sale, foreclosure, or loan modification. Enacted into law yesterday, Senate Bill 401 generally aligns California's tax treatment of mortgage debt relief income with federal law. For debt forgiven on a loan secured by a "qualified principal residence," borrowers will now be exempt from both federal and state income tax consequences. The existing federal exemption is for indebtedness up to $2 million, whereas the new California exemption is for indebtedness up to $800,000 and forgiven debt up to $500,000.

"Qualified principal residence" indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence. It includes both first and second trust deeds. It also includes a refinance loan to the extent the funds were used to payoff a previous loan that would have qualified.

The tax breaks apply to debts discharged from 2009 through 2012. Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.

Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.

Information from CAR Legal.

These are Days I'm Happy to be Broker!

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Tue, 13 Apr 2010 03:38:00 +0000

Our agent at Elite Properties Mike Keleshian just received this letter of thanks from his recent clients.

And boy am I proud of him! You can reach him directly at 916-997-4086.

Short Sellers & Loan Modification Receivers - Be Careful!

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Sat, 10 Apr 2010 15:23:00 +0000

This might be old real estate news, but I'm repeating here because it's so important. However, please keep in mind that you should always consult your tax professional before you take my word here regarding your specific tax situation. So that being said, as you've probably already been told, the IRS does not tax you on the difference in your principal for forgiven mortgage debt either through your short sale or a loan modification. You might still receive a 1099 showing that the loan company has reported it and you do have to report it on your taxes.

However, California state laws still require you to pay taxes on the difference, and it is definitely something to keep in mind not just at tax time but also during the process of applying for a loan modification. It's a sad situation that when you're already stretched that you have to consider that the state still requires taxes, but at least it might help to know that beforehand.

This is how the California Association of Realtors reported it:

Governor Schwarzenegger vetoed a bill that would have prevented California homeowners who sold their homes via short sales or received loan modifications in 2009 from being taxed on the forgiven mortgage debt. Schwarzenegger vetoed the bill, which would have aligned much of the state’s tax code with that of the federal government’s, because it contained an unrelated provision regarding tax refunds for the state’s largest businesses. Although the governor vetoed this particular bill, he expressed his support for banning taxation of forgiven mortgage debt, and immediately called for the legislature to send him a bill to provide tax forgiveness prior to the April 15 tax-filing deadline.

So be sure to go over your financial situation with a fine-toothed comb before making at decisions.

National Housing Survey Findings

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Wed, 07 Apr 2010 20:51:00 +0000

Fannie Mae recently conducted a housing survey and it seems that homeownership in the long term at least will never die. Nevertheless, the findings were interesting to note. I'm including just a few things that struck me and that might interest you to read. For the entire study and other details, visit Fannie Mae.

Just 31 percent of responders felt that the economy was on the right track but 44 percent expected their personal financial situation to improve in the next year. Renters are more optimistic about their personal finances (56 percent) than mortgage holders or owners. Delinquent borrowers are even more optimistic about the future, with 63 percent expecting they will be in a stronger financial position in the next year.

Nearly two-thirds (65 percent) of survey respondents prefer owning to renting. Respondents cited non-financial reasons such as safety (43 percent) and quality of local schools (33 percent) as driving factors in wanting to own a home, ahead of economic considerations.

With reference to specific mortgage choices, nine out of ten respondents are satisfied with the features of their current mortgage. But Americans with 30-year fixed-rate mortgages are significantly more satisfied than those with other types of mortgages. (This, by the way, I have experienced anecdotally as well. Even though most investment-type people will tell you that you can save a lot more in interest otherwise, I believe peace of mind in knowing next month's and next year's mortgage amount makes a big difference. Anyway, just one Realtor's opinion.)

Americans are split on whether banks should foreclose if the owners are unable to paytheir mortgage: forty-eight percent of respondents say yes; forty-three percent say no.

For the entire survey, you can go here.

Last Month for First Time Homebuyer Tax Credit

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Mon, 05 Apr 2010 11:40:00 +0000

That's right. This is officially the last month for the first-time homebuyer tax credit. Although the state has extended it in the past, as far as we know as things stand today, the home buyer has to have entered into a written binding agreement (contract) by April 30, 2010.

The written binding contract however might need some clarification - this does not mean submitted an offer, since an offer is not a contract. Those of you who are looking actively for a home and intend to close on a house and use this tax credit should hurry. It's not necessary to panic of course but do keep in mind that if you are looking for a home in which a bank is involved on the seller's side either through a short sale or a bank sale that they will take time. So do your shopping and don't take too long and waste time. If you are not in contract by the end of this month, you could lose your intended tax credit. "In contract" means that you have an accepted contract in escrow with all signatures on all eight pages. Yes, then. Only then is it considered binding.

You must close escrow by June 30th to avail of this homebuyer credit which is 10% of the purchase price not to exceed $8,000. No repayment is required if the buyer owns and occupies the home for at least 36 months after purchase.

Real Estate Finds in Fair Oaks

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Fri, 02 Apr 2010 15:05:00 +0000

Remember a time when there were no homes on the market that came even close to under $200,000 for a three bedrooms? I was meeting with a friend yesterday and she mentioned that on one of her walks she noticed "very pretty homes" (her words, not mine) around Fair Oaks, where she and her husband intend to buy a home someday. So I decided to look it up.

And here are some great real estate finds in the area for under $200,000.

Fair Oaks in the zip code 95628 has older established neighborhoods with homes approximately thirty years old. Many of these homes have been occupied by one or two owners, and bought new. Its proximity to highways 50 and 80 make it a good central location with plenty of businesses nearby. If you can tolerate the perpetual (it seems) construction on Hazel, you might find some real jewels in the area. Take a drive. Or better, a walk. I love looking at homes on a walk; don't you?

Welcome Back, Real Estate Mama!

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Thu, 01 Apr 2010 13:37:00 +0000

Whoa! What a time it's been. A whirlwind of a year since I've written seriously on this blog. You would think I would have realized that babies take time, but no. In our usual unbridled optimism, my husband and I have had two children and some major restructuring. But don't leave this page without getting a look at all this cuteness. Go on, look:

That's the youngest addition.

So now you know what I've been doing with my time and my brain, full of baby stuff has not been on real estate like it should. However, here it is - April is here! And that brings with it spring and home buyers. Even though this week is supposed to be rainy we should see some increase in activity soon. And you will hear all about it right here!

If you've been keeping up with the market updates I've been posting on the main Elite Properties blog over at Sacramento-Home.com you probably know that sales are down all over Sacramento county and that prices are stagnant or rising very slowly in some local areas, a sign of potential recovery. I do however want to write about short sales which could nip this recovery in the bud - the inventory is huge. But more on that in another post.

For now, Happy April! And I look forward to seeing you here more often. If you've just landed on this page, feel free to call me directly for assistance or fill out my contact form and I'll get someone over to help you in your real estate transaction as soon as I can!

Real Estate Market Report for Sacramento, El Dorado and Placer County

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Tue, 15 Sep 2009 15:53:00 +0000

I'm sure you're shuttling back and forth now reading market reports over at Sacramento Home as well as here, but I thought to get an overall idea of the real estate market, I would put up the statistics for all three counties combined right here. 2233 homes sold this August in the tri-county area as compared with 2630 last August. This points to a unit volume drop of 15.1% year over year. The hardest hit seem to be foreclosure sales with a 37.4% drop! Short sales in the meanwhile seem to be filling the gap with a 63.7% increase year over year. Non-distressed sales have remained mostly unchanged year over year with a 5.4% increase. Still, the overall market looks healthier with 37.4% of all sales now being non-distressed as compared with 30.2% last August.

Average sold price per square foot is now $127.69, down 15% from last August's $150.34. Average sales price rests at $226,416 also down 15.1% year over year from a high of $266,563. Median sales price in the tri-county area is currently $201,000. That's down 14.5% from $235,000 last August.

Inventory is at 4.1 months regardless of whether you're looking at the last year of sales or the last six months. Foreclosure inventory is hovering around the 0.6 month mark. Short sales have gained traction in the last few months but they still have a long way to go with 15.6 months of inventory based on the last 12 months of sales and 13.5 months based on the last six months.

Foothill Farms Real Estate Market Update: July 2009

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Mon, 31 Aug 2009 13:28:00 +0000

When home buyers are looking for a nice little community to live in close to the highway with solidly built homes with an old-world charm, they usually begin their search in the Foothill Farms area. There haven't been enough real estate buyers however to keep sales buoyed this month. Overall unit volume fell by 40% year over year in the neighborhood and the biggest drop was seen in foreclosure sales. REOs fell by 68% year over year from 53 homes sold last July to just 17 this July. Also, they went from being 88% of all sales to just a little over 47% of all sales. Short sales gained by 125% and non-distressed sales by 233% year over year. Distress sales now make up 72% of all real estate sales in the area.

Average sold price per square foot now rests at $103.37 which is 12.2% lower than last July's average of $117.71. Home buyers thus afforded themselves homes on average 9% bigger than they did last July. Average sales price in Foothill Farms is now $132,882 - 4.2% under last July's price of $138,755. Median sales price is at $134,000.

Inventory in Antelope is at 2.8 months based on the last year of sales and 3.2 months based on the last six months of sales. Foreclosure inventory is at 0.6 months and 0.8 months respectively. Short sale inventory is at 11.7 months and 11.5 months respectively.

Land Park Real Estate Market Update: July 2009

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Fri, 28 Aug 2009 17:01:00 +0000

Hey, welcome back! Since this blog is now part of the family of blogs of Elite Properties, you can now hope to read market updates as well as "ask the Realtor" type of articles along with some real estate quotes and trivia. Today we have a market update for Land Park for the month of July. (Statistics are available for the previous month when we update our database around the fifth of each month.)

Anyway, on to Land Park!

This has been a pretty impressive month for real estate in the Land Park community with unit volume up 108% year over year. 27 homes sold in the area and just 4 of them were foreclosures. None of the 17 short sales on the market sold but home buyers renewed their interest in non-distressed properties with a whopping 23 selling in the month of July.

Average price per square foot is now $257.41, which is a 17.8% drop year over year from a high of $313.20. The average home sold for $384,867 this July which is 4.3% lower than it sold for last July when average price was $402,146. Median sales price rests at $370,000 - 2.8% higher than last July's $360,000. However, keep in mind that the average home sold this July was also 16.4% larger than last July so the numbers can seem a little skewed. The most accurate measure here is the average price per square foot.

Inventory is at 4.8 months based on the last year of sales and 4.4 months based on the last six months of sales. Foreclosure inventory is at 0.4 months.

Dead? Not Quite Yet.

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Sun, 23 Aug 2009 03:21:00 +0000

I've been giving a lot of thought to where this blog is headed. Yeah, I guess you can tell by the fact that there haven't been any posts up lately. No, I haven't given up blogging. And no, I haven't given up selling real estate either. And yes, I still believe real estate can be a very strong investment. I would however temper and moderate that statement by saying you must have reserves to protect that investment.

But more to the point has been the concern that this real estate blog hasn't received the kind of attention lately that I would have liked to give it. As most of you know, my writing has been mainly over at Sacramento Home, the official company blog of Elite Properties. And between writing that and reviewing files for the company and taking care of my one year old (yes, she's officially a whole year old, believe it or not!) I've had my hands full. How in the world do people find time to juggle so much, I wonder sometimes looking at other brokers who have a post a day.

So, this is where this blog is going: I've made the decision that it's going to be another of Elite Properties' company blogs. You know we have Sacramento Home and Roseville Homes and Land and now we're adding Sacramento Real Estate Gal into the mix. What does this mean to you? Just that besides writing more here, I'll be adding more market updates and "ask the broker" kind of posts. And if you love reading them at the other blogs, chances are you'll enjoy them here as well!

Been a While...

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Fri, 17 Jul 2009 02:45:00 +0000

Well, hello! It has been a while and I'm happy to see you're back here. What can I say? Life got in the way of blogging... but you can see my market updates every day almost at Sacramento Home, so if you miss me, just hop over there and take a look!

So, the latest on the Sacramento real estate scene? I wish it was the same old, same old. I really wish it was something. Lately though the market seems to have gotten so lackadaisical that it refuses to get people (homebuyers and homesellers alike) interested in it. Even tenants seem to have trouble hanging on. We should know. Our tenants have decided to move out - get this - after fifteen days in the new home. Something between the husband and wife. And relatives. But they weren't on a lease, so what can we do? Just say okay. End of next month you're free to go.

Hmmm... this is going to be a looong summer.

Rent Slashed!!! Open House this Saturday 11 to 1!

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Tue, 02 Jun 2009 14:46:00 +0000

If you have been a regular visitor to this website, you should know that I have a rental home in Colonial Village that is looking for a tenant. Our last tenants were great - lived there for almost two years and we miss them.

Anyway, if you're interested, here's a link to the 3 bedroom 1 bath home in excellent condition. It's ready to move in now! So call me or email me for more information and to schedule a showing.

Also, I should mention that if your home has been foreclosed, we will still consider you as tenants if everything else on your credit report looks sound. We understand the financial hardships homeowners have been going through and will not hold a foreclosure against you if everything else looks okay.

For more information about this rental, you can reach me at 916-712-4255

Yes, We're Still Selling Homes!

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Fri, 29 May 2009 12:13:00 +0000

As Realtors and brokers cut down massively on their advertising budgets lately, our clients are beginning to wonder if we're still selling homes. Mention to someone that I'm a real estate broker and the look on their face changes. "How IS the real estate market?" is always the next question.

Look, it isn't a great market if you're a seller or a homeowner. I know. I have checked comps on my houses and I don't want to see them for a long, long time. But then, my brother isn't interested in looking at his stock portfolio either. For now. And he's a CPA and a very savvy investor. No one's happy right now.

Oh wait, did I say no one? I'll tell you who's happy. Home buyers are happy. They're more than that - they're ecstatic. And they should be. One look at our tenants' faces when they just bought the house of their dreams could tell you their story. And yes, they deserve it. Excellent care and not one month of missed payments.

So yes, if you're a homebuyer, wipe the worried look off your face. You're going to be just fine. And quit asking how the market's doing. We're still here. We're still selling homes! And it's a great time to buy!

Real Estate Article Worth Reading

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Thu, 28 May 2009 14:54:00 +0000

At a time when real estate prices have plunged - farther down than most people anticipated - it might seem like a good idea to just get rid of the mortgage payment. A disinclination to be in any kind of debt is one of the goals of most people but you might want to read this article before you get too hasty with paying off that mortgage. Then decide for yourself if it's really, really that high on your list of priorities.

Forget real estate, look towards men's underwear!

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Wed, 27 May 2009 13:49:00 +0000

This one gave me my first laugh of the day, so I'm sharing it here. Those of you who are homeowners might find this interesting. As we know, it isn't the homebuyers or even the home sellers and potential home sellers looking for signs of the market recovering. Home sellers and home owners believe the market will look much, much better in the coming six months. (Whether this means they will put their homes up for sale has to yet be seen.) The Sacramento Bee has already reported that median sale prices of real estate are beginning to stabilize in Sacramento.

But if you want to know the real state of the economy, forget real estate! Says Michael Brush of MSN Money, look towards men's underwear. Since they're not easily seen (thank God!) most men put off buying underwear during a recession. And that can give you a clue as to where the economy is headed.

Interesting read.

It's Here!

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Wed, 27 May 2009 03:23:00 +0000

If you're a novice real estate investor, the market is great for being a landlord or jumping into investment property. But, do you know the landmines to avoid? No? Then, pick up my book "Landlord Landmines." Available NOW at Amazon!

Amazon.com Widgets

Foreclosure Alternatives Program Details Announced

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Fri, 15 May 2009 03:21:00 +0000

The California Association of Realtors has just sent out news that new details have been announced under the Foreclosure Alternatives Program. According to the CAR email, the program "requires that prior to proceeding with a foreclosure, servicers must determine if a short sale is appropriate." The program is in place until 2012.

Incentives to lenders in this program include:
- $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure
- $1,500 for borrowers/homeowners to help with relocation expenses
- up to $1,000 toward the cost of paying junior lien holders to release their liens

As we have seen in the market updates, it is the short sale inventory that worries everyone and could hurt the return of a normal real estate market. If this program works, it could just be the answer. It's too soon to tell, however.

The FAP also claims straightforward and streamlined documents and procedures in dealing with short sales.

Watch that real estate inventory!

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Wed, 13 May 2009 16:27:00 +0000

The Sacramento Bee has today reported that inventory in the Sacramento real estate market is down to 2005 levels. After the peak in listed homes in 2007, inventory has been declining over the last 20 months. We have already been covering these market updates at the company website, so it's no surprise to us.

Could this be a recovery or the beginning of a recovery? REO listing agents don't believe so because they expect more bank-owned homes to be listed beginning June 1st. Banks don't want to flood the market with REOs all at once because the price drops will be scary. So with banks not listing REOs and individual sellers not willing to sell if they have to, inventory has shrunk quite a bit lately.

We'll just have to see what happens in June to get a better picture.

I love my job!

noreply@blogger.com (Purva Brown - Sacramento Real Estate Gal) — Tue, 12 May 2009 16:46:00 +0000

At the risk of sounding like I'm tooting my own horn (a little too loudly!) I want you to read this post on Sacramento-Home recently about me taking over as broker of record.

I love my job. Oh wait, did I say that already?