The REAL Update

Valley Home Prices Up!

2009-06-29T11:40:00.000-07:00

From SGV Tribune article - June 26, 2009

All but seven cities in the San Gabriel Valley saw home values go up in May -- the third month in a row in which median prices rose across the state, according to a report released on Thursday. The statewide median -- the point at which half of the values are less and half the values are more -- was $267,570, according to the California Assoc. of Realtors.

And though that was a 30.4% decrease from May of last year, it was a 4.2% increase from April. It was also the third consecutive rise and the largest monthly increase for the month of May since 1979, C.A.R. officials said.

The rise is being fueled by affordability at the market's low end as first-time homebuyers continue to pick up deals on once foreclosed homes, said CAR's Chief Economist Leslie Appleton-Young.

"We've had this incredible burst in sales,... and it's in areas with numbers of foreclosures where we are seeing the activity."

Attracted by still-low mortgage rates and tax credits, buyers -- including a heavy spike in investors -- bought 556,590 homes in May.

"We are seeing an amazing number of multiple offers on everything priced competitively," said Tom Adams, a Monrovia-based real estate agent. One of his listings in La Mirada was already in escrow and pulled another 40 offers.

What Mark & Lauren have to say: "Don't believe the news hype, or the doom and gloom they spread. Overall, the national economy is struggling, as we know. But local markets are individual and should be looked at to see if there's good opportunities. We believe that the deals are out there for many of our friends and family!"

The Lava Lamp Effect

2009-05-21T15:14:00.000-07:00

A recent survey done by Zillow asked homeowners nationwide how they feel about the dropping prices over the last several quarters. The survey found that 74% of homeowners believe that their home will not decline in value in the coming six months, effectively calling a bottom on their own home's housing slide.

What we are seeing in Covina and surrounding areas is a reflection of that statistic. In the first-time buyer price ranges, sellers are receiving multiple offers on properties, both repos and standard sales. in other words, the competition among buyers is high for properties that are priced competitively and show well.

This is a result of lower interest rates and lower prices. Buyers that were on the outside looking in before, are now able to qualify. The new increased FHA loan limits have made buying a possibility for those who could not qualify otherwise.

One thing to remember, the rise and fall of values is like a lava lamp. When the heat is on, the bubble is rising. When the heat is off, it falls. But just when the heat turns back on, no one knows. The same for home values. By the time you've seen the bottom, prices are already going up. Now is your time to make a move! you know who to call, don't you?

Mark Andersen & Lauren Andersen-Ibarra

Stage Coach???

2009-05-14T11:30:00.000-07:00

Even if your bowling trophies and musty shag carpet feel like home to you, they might turn off potential buyers. That’s why staging — as seen on TV— has become a popular technique to help sell houses. But home staging is more than just redecorating; it’s a way to help potential buyers feel like your house could be their next home.

It might seem counterintuitive to spend money on a home that you’re leaving, but the cost might be worth it. According to StagedHomes.com, a leading home-staging organization, the final sale price on staged homes increased an average of 3 percent versus those that were not. Staged homes also typically spend 80 percent less time on the market.

Staging doesn’t have to be expensive or overwhelming. If you don’t know where to begin, talk to your REALTOR®, who can offer advice or help you find a professional stager. A basic consultation with a home staging professional might cost $200 to $400 depending on the market, but some are complimentary.

If you want to do it yourself, start outside. Clean the sidewalk and driveway and, if possible, add a fresh coat of paint to the house, garage door or railings. Use potted plants and new light fixtures for flash at the front door.

Inside, keep things clean and clutter-free. Pick impersonal art over family pictures. Purge unnecessary belongings, and stow what you can’t throw away in decorative baskets. Sparsely arrange furniture away from walls. Add accents with mirrors, plants, rugs, pillows, colorful cookbooks, fruit bowls and other accessories. Focus on lighting, from soft bedroom lamps to natural light from open drapes.

This is just one of the special techniques that we are using these days to make your house stand out from the others! Want to know more about what we do to sell your house? Give us a call today!

Mark Andersen & Lauren Andersen-Ibarra

4 Steps to Buying a Rental Property

2009-04-30T13:47:00.000-07:00

Prices on property are at their lowest in many areas and it puts the ball in your court if you're interested in buying. Buying rental property in a down market can be a lucrative investment but there are some factors you should consider before you jump in.

The following are the four basic steps for those considering investment property ownership:

1.Find out where renters want to live. Location, location, location takes on added economic urgency when purchasing a rental property. Ask your real-estate agent to show you properties that have an established rental track record going back two or three years, during which vacancies were limited to no more than three months at a time. Working a Realtor with Property Management experience is your best bet at getting some good advise.

2.Do the math. Before you buy, figure out whether the rents will cover your expenses and leave room for profit. To determine how much yearly rental income you are likely to receive, ask your real-estate agent for the going rates and scan the classifieds for comparable properties in the same neighborhood. Don't forget to take into account the possibility that the property may be vacant for a period of time. Then subtract annual mortgage payments and operating expenses -- insurance, utilities, projected repairs and maintenance and landscaping. Ideally, income tops outlays, and what's left is called cash flow. If outlays top income, producing negative cash flow, the property is too expensive. Either negotiate a lower price or continue hunting.

3.Assess the tax consequences. Anything left over after expenses is taxed as ordinary income. You can depreciate the cost of residential rental property, but not the land it sits on, over 27.5 years -- even if it is increasing in value. Suppose you paid $400,000 for a triplex on a sliver of property assessed at $50,000. Depreciation would come to nearly $13,000 a year, or, put another way, you could have that much rental income without paying taxes on it.

4.Consider a Professional Manager. Many new owners try to manage it themsleves. Neophyte landlords often fail to conduct a thorough background check on prospective renters. Such a lapse can be costly if the tenant stops paying rent or damages the property. Don't approve tenants until you have checked their credit and criminal histories and talked to references and employers. The lease should lay out rules about pets, parties, rent due dates and late fees. A Professional Manager can help you all of these aspects of renting that you might not be able to do yourself. If tenants already occupy the property when you buy, you will have to honor their lease until it expires.

The real estate market is ripe with foreclosures and standard sales at a great price. Many are in areas that are established neighborhoods for renters.

Want to know more??? Ask us!

Mark Andersen & Lauren Andersen-Ibarra

5 Reasons to Buy a Home this Year

2009-04-23T10:42:00.000-07:00

Many people are afraid to buy a home in times like these, with the economy tanking and home prices continuing to fall. But if you're brave enough to stray from the herd, you might be in for the home-buying opportunity of a lifetime.

If you're qualified to buy a home now, and the purchase makes sense for your situation, and you're prepared to live in that home for at least five years, there are five reasons you may be headed for a great deal:

1. Affordability is better than ever. According to the National Association of Realtors' housing affordability index, homes were more affordable in December than at any other point since the group started the index in 1970.

2. You have a large inventory to choose from. In many places it is taking months to sell a home, creating loads of inventory — from new homes to existing homes to foreclosures.

3. Builders are offering big discounts. Home builders are getting even more aggressive with their pricing. In fact, we recommend looking at completed new homes first because builders are offering such steep discounts. Plus, you'd have a warranty not only on the home itself, but also on the home's appliances. Don't forget to take your Realtor with you the first time though, or you'll be left with the builder's agent who doesn't have your best interests in mind.

4. Mortgage rates are historically low. It's not just the price of the home that will affect affordability; mortgage terms will also affect your monthly payments. Earlier this year, rates on the popular 30-year fixed-rate mortgage hit a level not seen in decades, and rates have stayed relatively near that low for weeks. The first week of February, the 30-year fixed-rate mortgage averaged 5.25%, according to Freddie Mac's weekly mortgage survey.

5. You can get a federal tax credit. There's currently a federal credit of up to $8,000 for homebuyers who haven't owned a home in at least three years (See last week's post).

If you're on the fence about buying, don't wait! Call us Today!

Mark & Lauren

First Time Buyer Tax Credit

2009-04-16T10:51:00.000-07:00

Wondering how you can get your hands on some of that Stimulus Money?

The new First-Time Homebuyer Credit is a fantastic opportunity to get some money back!

In 2008, Congress created a $7,500 First-Time Homebuyer tax credit for purchases after April 8, 2008 through July 1, 2009. The Big Problem??? The tax credit had to be repaid over 15 years... not a real benefit!

The NEW 2009 Tax Credit!

The tax credit has been expanded to $8,000 and the repayment requirement has been DROPPED! That's right, those buyers who get the tax credit on purchases between January 1, 2009 and November 30, 2009, don't have to pay the money back!

The National Association of Realtors estimates that hundreds of thousands of potential buyers will take advantage of the credit.

Are you a First-Time Homebuyer?

Don't sell yourself short! The definition of a first time homebuyer is someone who did not own another principal residence at any time during the three years (36 months) prior to the date of purchase. This includes many who thought they didn't fall into the category.

With interest rates lower than they have been in a long time, and a new tax credit to assist, we have now entered a time in the market where the opportunities abound. Standard sales and forclosures are both good buys, and many are in move-in condition.

Your Next Step?

Call us to find out how it works! We can help you decide if you qualify for the credit, and