Real Estate and Real Life in the Wine Country

Reporting from Washington - If you’re thinking about applying for the new $6,500 home buyer federal tax credit or the extended $8,000 version, the Internal Revenue Service has just issued its first formal guidelines for you.

A great article in the Los Angeles Times: it is an easy to read outline of the new rules.

It is still a great time to buy but also a great time to sell with the tax credit for repeat home buyers. So you can sell your home and take advantage of the tax credit to buy your new home. The housing inventory in Sonoma County is so low, properties priced well sell fast and you are able to take advantage of the current market to move into your dream house.

  Mirjam

This came in my email news feed today:

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®

The State Bar of California has recently launched numerous investigations against attorneys for misconduct related to loan modifications.  In a rare move, the State Bar has released the names of 16 attorneys under investigation, by opting to waive investigation confidentiality in favor of public protection.  These attorneys have allegedly taken fees for promised services, but failed to perform those services or even communicate with their clients who face the possible loss of their homes.  Their non-attorney staff may also be under investigation for unlawfully practicing law.

Not all attorneys engaged in loan modifications are unscrupulous.  However, this announcement from the State Bar serves as a good reminder for REALTORS® and their clients to be careful when dealing with attorneys and others for loan modifications.  Scam artists may intentionally associate or affiliate themselves with attorneys in an attempt to lend credence to their fraudulent schemes.  The list of attorneys currently under investigation is available at http://calbar.ca.gov/state/calbar/calbar_generic.jsp?cid=10144&n=96395.

Your Realtor will be a great source of information and help to look at your options. Recently I finished the CPDE training: a training for Realtors to help distressed homeowners with options to avoid foreclosure. Foreclosure has serious consequences and for some it might mean not only loosing a home but also loosing a job… There are many options out there, contact your Realtor for help.

  Have a great day!

Mirjam

Yesterday we received a ‘Red Alert’ email from our local MLS board about the Rental Scam on Listed properties. The PressDemocrat had an interesting article about the subject earlier this week.

There is a rental scam taking place in which listed properties are advertised on Craigslist and other online classified services for rent, when the property is not for rent at all.  The ads run for a very brief period of time.

 How can you protect your listings from being a part of the scam?
Some brokers have removed the address of their listings on the internet.  While this hides the address from the scammers, both the buying public and the seller could be disadvantaged.
Monitor classified advertising internet sites like Craigslist to watch for ads using your listing information “for rent”.
Put a “NOT FOR RENT” rider on your signs.

The FBI’s guidelines for the general public to avoid being victimized.

• Only deal with landlords or renters who are local.
• Be suspicious if you’re asked to only use a wire transfer service.
• Beware of e-mail correspondence from the “landlord” that’s written in poor or broken English.
• Research the average rental rates in that area and be suspicious if the rate is significantly lower.
• Don’t give out personal information, like social security, bank account, or credit card numbers.

Should you have your property listed, please follow the advise your Realtor gives you. He/She is made aware of the problem and knows how to handle this. So far we do not know of people being victimized in Sonoma County and right now it is a major nuisance.

Enjoy the rest of this wonderful weekend, it’s a bit breezy still sunny and warm.

  Mirjam

In talking to people I have come to realize that some people have an interesting view on banks. You might blame the bank for offering you the ‘bad’ loan, however you might ask yourself: who ultimately signed? Also, banks are not social security, they have obligations to their share holders. I know, some ‘not so smart’ decision in life have dire consequences ;-(

One of the statistics I recently received from Bank of America was that 80% of all the loan modifications they did was in default again within 8 months. That is a poor success rate considering the time and effort put into this.

So when looking at you situation, figuring out what to do, ask for a loan modification, do a short sale (talk to your CPA when considering this), or wait for the foreclosure (might, depending on your job, cost you your job too), think what you would do with yourself should you be the bank.

When pursuing a loan modification think about this: if I were the final decision maker who was held accountable for my decision, would I offer myself a loan modification? If yes, it’s worth pursuing the loan modification.

Last week I had an interesting conversation with Darren Seliga from Seliga Financial, he mentioned some really good ideas to come up with when talking to the bank.

Any loan modification is hard work, doesn’t come easy but if it keeps you in your house and the result is a good mortgage, it’s worth it.

Oh…. and don’t forget the beautiful weather outside, enjoy it, despite all the hardships, it’s only money, spending time with friends and family that’s what’s really important. Don’t let your money worries keep you from being and enjoying time with your spouse, kids, friends, name it.

Have a wonderful day!

  Mirjam

Isn’t it great, all the tools we have to totally check out a property before setting foot in it? Of course when a property is for sale there is the property website : www.3605Sumatra.com is an example, the virtual tours: here’s on of my newest versions and the Google satellite views. 

And now there is Google Street View…  And MSN has bird eye view. Here is my office, it’s on the corner… Did you get a chance to travel through your neighborhood?

The Pressdemocrat had an article about the privacy issues involved. The people who are concerned to make a point, in the meantime: it’s a great tool to ’scope out’ a property and a neighborhood before even visiting the property.

There is ofcourse lot’s more to learn about a property when you decide to sell or buy, but technology today gives a great start.

Have a great exploring day!

Mirjam

I know the market fluctuates all the time but I have been noticing that a lot of homes have been going into escrow, it has been rising over the last 5 weeks. It started slow but then it picked up. And yes, a lot of the homes that went into escrow also closed. Look at the statistics that I pulled from Broker Metrics a program that very conveniently pulls the data from our local MLS system.

The media is giving you info that the economy is going through the drain, the Fed will have to cut interest rates again. Perhaps they are right, but keep in mind John D. Rockefeller who said “The way to make money is to buy when blood is running in the streets.”

The info is also great for sellers, should you need or want to sell your home, the numbers clearly indicate the  ‘new reality’.

The above statistic is from all Sonoma County. The drop shows that a some people have take their home of the market at the end of the year, some home owners who were trying to do a ’shot sale’ did not succeed and the property went into foreclosure (these properties will come back a few months later as an REO) and it clearly show the increase of activity.

I look forward to your feedback!

   Mirjam (707-486-2638)

Yesterday we had what most likely will be the last in a series of the Smart Home Choices Workshop. It was a great success, I counted about 80 home owners and great feedback.

It was great to see that banks have ramped up their assistance for troubled homeowners but it was clear that if you need help from your lender you do need to do a lot of homework -> banks are not social security. Should you like a copy of the handouts given, please let me know.

Data from Harvard University’s Joint Center of Housing Studies illustrate not only that the median net wealth of homeowners is 34 times greater than that of renters, but also that over half of that wealth is generated from home equity.

The website Housing Markets Facts mentions :The Department of Commerce reports that between 1995 and 2004, the average renter accumulated a little over $4,000 in net worth. The average homeowner accumulated $184,400. That translates into $180,000 more, or $1,500 per month. In other words, each month that the average first-time buyer continues to rent, it costs them $1,500 in lost wealth accumulation. Furthermore, renters are subject to rent increases as well as higher tax rates because they cannot take a mortgage deduction.

So no matter how difficult it is: if you can, hold on to your house.

Have a great day!

Mirjam de Rijk

In today’s housing market, the media’s continued focus on negative real estate news is keeping many people solidly on the sidelines. But remember, you are not getting the whole story.

FACT #1: THERE IS STILL OVER $23 TRILLION OF VALUE IN U.S. HOUSING STOCK. Home ownership continues to be the basis of our wealth in this country.

FACT #2: THE HOUSING MARKET CANNOT HELP BUT GROW. Our country’s tremendous wealth, liquidity, and entrepreneurship will continue to drive our economy. 70-100 million people will be added to our market in the next 40 years.

FACT #3: REAL ESTATE IS CYCLICAL. The biggest fear in good times is that the fair weather won’t last forever—because it doesn’t. But the reality of a cyclical real estate market also provides its brightest hope in bad times—foul weather won’t last forever either. What’s happening today is a market correction, severe in some places, but it’s not the end of the world. The markets will stabilize.

FACT #4: 2008 IS THE BEST YEAR TO BUY A HOME IN 35 YEARS. 1973 was the last time mortgage rates were this low in a buyer’s market. We had rates this low in 2001 and 2002, but those were strong seller’s markets with little inventory. The last two big buyer’s markets, in the early ‘80s and early ‘90s had much higher rates. Low rates and good inventory make 2008 the best year to buy in decades!

FACT #5: FIRST-TIME BUYERS HAVE A REAL ADVANTAGE IN TODAY’S MARKET. First-time buyers can buy at a reduced price without having to sell at one too. Higher limits on lower cost conforming loans also help first-time buyers purchase more home for their money. Today’s ‘starter’ homes can be pretty impressive.

FACT #6: FIRST-TIME BUYERS LOSE MONEY WHILE THEY WAIT ON THE SIDELINES. First, renters typically pay more state and federal income taxes than homeowners with a mortgage deduction. Renters are also losing the wealth they could be accumulating as they pay down their mortgage and as their home increases in value over time (as it surely will). Lastly, renters who wait to buy will lose money if interest rates increase by the time they finally act. Higher payments from higher interest rates represent money buyers could have kept if they had bought earlier. Conversely, if they were willing to spend that amount of money earlier, they could have bought more home.

FACT #7: HOMES SELL WHEN THEY’RE PRICED RIGHT AND SHOW WELL. When sellers make their home’s value obvious, they make a sale—it’s as simple as that. The facts are showing this. In Sonoma County we see investors coming back into the market.
… Have a great day!

Mirjam (707) 486-2638

Today a totally different thought. You will read everywhere how bad the market (Press Democrat) is, that we are in a depression (see CNBC article), but don’t forget, the current market conditions do have a silver lining.

Here it is, my thought of the day, should this make you think about selling, you probably have an idea about the market value of your house and contact your Realtor (Of course, feel free to contact me) and get a professional opinion and get started.

P.S. This weekend we went to pick up our wine club shipment at Francis Coppola in Geyserville. They are doing a major remodel but the temporary tasting room is worth a visit. It’s food and wine tasting, the wines are great. Love the Diamond Collection Claret!

Have a great day!

Mirjam (707) 486-2638