Tax Credit Extended

Obama Signs Extended Tax Credit into Law

 Expected to contribute approximately $22 billion to the economy, Congress overwhelmingly passed a bipartisan measure this week extending the $8,000 home buyer tax credit to April 30, 2010. The legislation, which is part of a larger bill that also extends unemployment benefits, was signed into law by President Obama today. More people are now eligible to take advantage of the law, which includes a $6,500 tax credit for buyers who are current home owners and have lived in their home for five of the past eight years. Income limits for eligible home buyers were also expanded to $125,000 for single buyers and $225,000 for couples, up from $75,000 for individuals and $150,000 for couples. Qualifying home prices are capped at $800,000. NAR’s Government Affairs Division has compiled facts on the changes made to the current tax credit. NAR members sent more than 500,000 letters to leaders in Congress and made nearly 13,000 telephone calls to Senate offices last weekend to encourage support. So far this year, REALTORS® have spent nearly $14 million lobbying Congress, according to federal campaign finance records compiled by the Center for Responsive Politics.

Tax Credit Extended to April 2010

Homebuyer Tax Credit Plan Agreed to by U.S. Senate Democrats

 Below are the Highlights: 
1) It would allow homeowners to qualify for a $6,500 credit if they have lived in their residence for five years. In addition they wouldn’t have to be first-time home buyers.  
 2) The income limits will go up to individuals earning up to $125,000, or $250,000 for couples, up from $75,000 for individuals and    $150,000 for couples under the current law.
3.            The new plan would extend the credit which is due to expire Nov. 30. The home purchaser would have to be under contract by April 30, 2010. The purchaser would be allowed another 60 days to close the escrow to get the credit.
 
 Check out the link below for additional information:
 http://www.bloomberg.com/apps/news?pid=email_en&sid=a6e4fQQHzg6U

This is great news for many, many people especially those who are in a short sale and still waiting for bank approval.  I would still encourage buyers to continue to work towards finding a house now because they will be able to apply to for tax credit in only a few months.  Buyers who wait will have almost 9 months before they are able to touch their tax credit.  Another factor to consider is that the winter months are traditionally the slowest sales months.  Finding a house now could give buyers more opportunities to negotiate price and terms. 

Search for all the homes for sale in San Diego at

www.SanDiegoForeclosureGuide.com

Thanks

Janet McCarthy

858-243-5719

jmccarthyhomes@gmail.com

Penasquitos Market Report – How Much is Your House Worth?

News about the real estate market continues to bounce around almost daily.  One report states prices are expected to drop 10% and the very next day another report states, prices have stabilized and the economy is improving.  With information like that how do you plan?  One thing I know with absolute certainty is the cycle of real estate.  In spring and summer more buyers enter the market and activity increases often driving prices upward.  During the fall and winter fewer buyers are active and sales time often increases and prices drop according.  It is the simple supply and demand formula that most of us learned in High School and applies to real estate.  So..

If you are thinking about buying a house NOW, NOW, NOW is the time to be making offers and working at finding a home.  Sellers will be negotiating and making deals. 

Here are some market statistics for Rancho Penasquitos – 92129, for the last 90 days. 

16 houses sold in the $400,000 to $615,000 price range.  Homes were between 3 and 5 bedrooms with 2 to 3 baths and a minimum of 1900 sq.ft. 

The highest sales price was $612,500, $10,400 less than asking price.  Market time was 34 days , although the average is 58 days.  The lowest sales price was $336,000 for a house that had a cracked slab and needed major repairs.  Personally, I don’t consider this house a typical sale because of the issues involved and the need for special financing.  I decided to eliminate it and two others from the group of solds because they also had very unique issues which seriously affected the sales prices.  The lowest price then becomes $525,000, down almost $14,000 from asking price.

This data doesn’t surprise me and that is why I encourage all buyers to get moving and don’t worry about asking prices.  It isn’t unusual for sellers to accept offers 10,20 even 30 thousand dollars less than asking. 

How much is your house worth in today’s market?  Email me with your address and I can give you a ball  park estimate.  If you let me see the inside than I can give you a better estimate. 

See all the homes for sale at – www.SanDiegoForeclosureGuide.com

Thanks

Janet McCarthy

858-243-5719

Interest Rates Drop

According to Freddie Mac, 30-year-fixed-rate mortgage average fell further to 4.87 percent with an average 0.7 point for the week ending Oct. 8 from 4.94 percent last week. “Such low rates are spurring mortgage demand,” said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement.

“Interest rates for 30-year fixed-rate loans were the lowest since mid-May; 15-year FRMs were at a record low since data were first collected in 1991 and 5-year ARMs also hit an all-time record starting in 2005. Compared to a year ago, consumers could shave almost $134 off their monthly mortgage payments on a 30-year fixed-rate loan for $200,000 by refinancing.

Here is the break down on a purchase of $450,000

3.5% for FHA loan down payment = $15,750

1% deposit = $4,500

Loan amount = $429,750- monthly payments  @ 5.5% = $2,440.77

                                                                                                @5.0% = $2,306.99

                                                                                                @4.87% = $2,272.97

That’s a difference of $167.80 a month between 5.5% and 4.87%. Which could be the difference between qualifying for your dream house or not.  Remember interest rates affect your monthly payments for the life of the loan or until you refinance.   These numbers do not include property taxes which are approx. 1.5% of the purchase price.
Considering the $8000 tax rebate and the drop in prices plus the end-of-the-year specials I strongly encourage buyers to get moving.

To see all the houses for sale in San Diego visit – www.SanDiegoForeclosureGuide.com

Start your search today or contact me and I will set-up a custom search for you. 
Contact me at

jmccarthyhomes@gmail.com

Thanks

Janet McCarthy

858-243-5719

$8000 tax rebate

With time running out on the $8000 tax rebate unless congress extends the Nov. 30th deadline – and they are discussing both extending and expanding the rebate, I am curious about what buyers are thinking, so I created a poll.  Personally, I think a house is too big an investment to allow a mere 1% incentive to guide your actions. Take the poll and let the world know what you think.

Search for all the homes for sale in San Diego at – www.SanDiegoForeclosureGuide.com

Or just ask me to set-up a custom search and you will receive price changes, new listings and solds directly to your email.

Thanks and don’t forget – Ask me about Real Estate!

Janet McCarthy

858-243-5719

jmccarthyhomes@gmail.com

Penasquitos House for Rent

4 bedrooms, 3 baths, family room, backyard with a view.

I have a lovely house for rent in Rancho Penasquitos.  4 bedrooms, 3 baths, approx. 2005 sq. ft., kitchen with an eat-in nook, family room with fireplace.  Indoor laundry closet, 2 car garage.  Four large rooms upstairs.  Quiet neighborhood, near school, shopping and Doubletree Golf course and swim and tennis.  Rent is $2600/mo with gardener included.  Please contact me at 858-243-5719 or email jmccarthyhomes@gmail.com for more information. 

I can handle your rental needs too!  Property management experience for over 12 years.

For ALL your real estate needs contact me

Janet McCarthy

858-243-5719

jmccarthyhomes@gmail.com

$8000 First Time Home Buyer Tax Credit

This Month In Real Estate: 2009 First Time Home Buyer Tax Credit Special Edition

64 days and counting until Nov. 30th when the $8000 tax credit will expire unless extended. Buyers need to learn the details about the credit and act now to take advantage of this opportunity. Wouldn’t you like to have Uncle Sam give you up to $8000 just for buying a home this year? Watch the clip then visit – www.SanDiegoForeclosureGuide.com to search for houses or just email me and I will set-up a custom search for you.
Thanks
Janet McCarthy
858-243-5719
jmccarthyhomes@gmail.com

Home Sales Prices Drop

Todays San Diego Union (Sept. 25,2009) reported that, “single-family-home resales dipped unexpectedly last month (Aug), falling 2.7 percent from a month earlier (July)”.  This is a little odd considering that the summer months are always the most active.  Historically sales and market activity increase during the spring and summer months because many buyers and sellers want to move before school starts.  Considering the low interest rates ( still around 5%), and the $8000 tax credit deadline ( Nov. 30th until further notice), buyers certainly were inspired to buy.  Doubts about whether prices were going to drop even more weren’t part of the conversation.  Most buyers feel confident that they are buying at the low of the market and aren’t worried about negative equity.  However according to the Union article, “ Though prices have stabilized this summer, many economists are forecasting a downward turn over the fall and winter and expect prices to finally hit bottom early next year”.  Wow, I’m impressed with their crystal ball.  Although there are still lots of foreclosures, pre-foreclosures and short sales which seriously effect a regular sellers sales price and ability to sell, they are no longer offering the deals they once did.  Stories about banks paying closing costs and giving buyer concessions have almost disappeared, so if you’re getting one or got one, kudos to you.  Consequently, buyers are on the hunt for the “regular seller” and determined to avoid the bank market.  The economists prediction about prices bottoming out next year doesn’t make sense to me because the market always picks up at the beginning of the year.  Once the holidays are over and the decorations are packed away sellers get serious and buyers start shopping again.  It’s a predictable cycle.  My personal advise and remember I want to list houses, is to wait until at least the middle of January.  Yes, you could sell your house now, but  you’ll probably get a lower offer and they will ask for concessions. 

I strongly advise that sellers study the market, prepare their house; that means cleaning, de-cluttering and updating and plan a strong debut.  The more you maintain control of the situation the better the results.  If you don’t prepare properly – even by simply timing the market right, then you can expect to take a hit.

To see all the houses for sale in San Diego visit, www.SanDiegoforeclosureGuide.com.

Call me today for a FREE market evaluation.

Thanks

Janet McCarthy

jmccarthyhomes@gmail.com

858-243-5719

House for Rent in Penasquitos – 92129

 Lovely 4 bedroom, 3 bath house with 2005 sq. ft.  Vaulted ceilings, eat-in kitchen, fireplace in family room, full downstairs bath and in-door laundry area.  Four large bedrooms upstairs, large master with walk-in closet all in like new condition.  Back yard has tile and stone patio with three-tiered fountain and unforgettable views of the mountains.  Near shopping, golf and PUSD schools.  Avail Oct. 1st,  Rent is $2600.  Pets on approval. 

MLS # 090053957

Call me today to arrange a visit

Thanks

Janet McCarthy

858-243-5719

jmccarthyhomes@gmail.com

 

Pre-foreclosure versus Foreclosures – When is the Best time to buy?

Most buyers want to buy a foreclosure because they think it is the best opportunity to buy a house.  However, it is often a difficult process to deal with and meet or rather accept the banks demands.  Often foreclosures or REO’s ( real estate owned) receive multiple offers because banks list these houses at below market prices.  The bidding wars created from the multiple offers drive the price up and very often the final sales price is typical.  Banks don’t want to accept VA loans because they require the bank to make repairs necessary for habitability.  This complicates the process and increases the banks committment.  Most REO’s are sold, “As Is”, simply because the bank does not want to get involved with making repairs.  Buyers are faced with paying to replace appliances, termite costs and all other issues.  Another purchase option is the pre-foreclosure. 

There are four distinct time periods:

 (1) Preforeclosure – the period before the notice of default ( NOD) is filed

 (2) the period after the notice of default is filed

 (3) the foreclosure sale itself

 (4) after the sale when the property belongs to the bank-REO.

 Buying in the preforeclosure stage over the foreclosure auction are numerous.

1. You will be able to inspect the property. This is a huge plus because you will know how much to budget for fix up. There is no guessing or nasty surprises. Auction properties are usually not available for inspection.

2. The foreclosure auction requires that you have the MONEY at the auction. You must make arrangements in advance to have all the funds available.

4. Title insurance is may be difficult to obtain.  Leins, attachments and other issues remaining fromt he previous owner may not have been cleared properly. 

5. When you buy at the foreclosure auction you don’t know what type of people you will have to deal with that may be living in the property or any information about the previous owners.  Renters left behind could be very difficult to deal with. In preforeclosure you will have worked directly with the owners so you know what to expect.

6. Property insurance may be difficult or even impossible to obtain. Insurers are selective about what they will insure and they will run checks to see if the property has ever had a claim filed against it. You can verify that the property is insurable in a preforclosure situation.

7.  If you win the bid for the house you can not re-negotiate any issues.  All sales are final.  Discover a cracked slab or crumbling roof during the physical inspection and you can re-negotiate with the owner, not at an auction – All Sales are Final.

8. You have the added bonus of being able to help the owners save their credit from further damage resulting from a foreclosure when you buy preforeclosure.

These are just some reasons you may want to avoid the foreclosure auction and look at preforeclosure investing.

If you are searching for a San Diego home visit – www.SanDiegoForeclosureGuide.com, or contact me and I will set-up a custom search for you.  You will receive all the homes that match your search criteria automatically.

Thanks,

Janet McCarthy

858-243-5719

jmccarthyhomes@gmail.com