There are 183 homes for sale in Mission Viejo today that will qualify for the new and expanded Home Buyer Tax Credit program. The new program, which goes into effect December 1, 2009 applies to any home for sale in Mission Viejo, or anywhere in Orange County, that you buy for less than $800,000.00 The expanded offering also has higher income limits, is not restricted to just first time home buyers, and is available until April 30, 2010. This short video will give you more of the details.
Showing posts with label Home Buyers. Show all posts
Showing posts with label Home Buyers. Show all posts
Tuesday, December 1, 2009
Wednesday, November 11, 2009
New Expanded Home Buyer Tax Credit
New legislation has extended and expanded the old “First Time Home Buyer Tax Credit” – it now applies to people who already own home as well. The picture of the chart from NAR has the details.
Here are the main points:
· First time buyers are people who have not owned a home in over 3 years
· Credit for first time buyers is $8,000
· Credit for current home owners is $6,500
· Current home owners must have lived in the home being sold for 5 consecutive years out of the last 8 years
· The income limits are increased to $125k/$225k single/married
· You must be under contract by April 30 and close escrow by July 1, 2010
Tuesday, August 18, 2009
Bank Owned Home - Pre-Market Scoop
Wednesday, July 8, 2009
Down Payment Help From Surf City
If you currently live or work in Huntington Beach and would like to become a home owner, the city has a new program that may help you get there.
The city council just voted to scrap their controversial "foreclosure purchase" program in favor of a new initiative that provides down payment assistance for low-to-moderate income families.
The program provides over $1,000,000 to be loaned to qualified home buyers, with a maximum loan amount of $100,000 per buyer. The loans are "interest free", but call for a portion of any future profit from appreciation in the value of the home to be shared with the city. This "equity increase sharing" is phased out over time. If the buyer stays in the home for 30 years only the original loan principle would be due.
There are several qualification requirements, including residency and income limits, but for the right family this could be a real boost.
The program will be administered by the Affordable Housing Clearinghouse, which also administers several other programs.
Interested in what's available in Surf City? Click here to search for homes for sale in Huntington Beach.
The city council just voted to scrap their controversial "foreclosure purchase" program in favor of a new initiative that provides down payment assistance for low-to-moderate income families.
The program provides over $1,000,000 to be loaned to qualified home buyers, with a maximum loan amount of $100,000 per buyer. The loans are "interest free", but call for a portion of any future profit from appreciation in the value of the home to be shared with the city. This "equity increase sharing" is phased out over time. If the buyer stays in the home for 30 years only the original loan principle would be due.
There are several qualification requirements, including residency and income limits, but for the right family this could be a real boost.
The program will be administered by the Affordable Housing Clearinghouse, which also administers several other programs.
Interested in what's available in Surf City? Click here to search for homes for sale in Huntington Beach.
Friday, June 26, 2009
Property Tax Info at Your (Cyber) Fingertips
While homes in Orange County are more affordable than they've been in years, there's a potentially expensive trap out there for the unsuspecting buyer.
Property Tax Basics
California's Prop 13, passed in 1978, capped property taxes at 1% of a home's value, and also limited the amount of increased assessment as a property's value rises to 2% per year. Of course, a home's value is reset each time it is sold, so no matter what the seller's property tax was, a home buyer can expect an annual property tax bill of 1% of the purchase price.
Sounds simple, but there's a catch. The "property tax" is not the only liability that shows up on your property tax bill. It may also include a wide array of "special assessments" for various voter approved bonds or other initiatives. The most notorious special assessment is the dreaded "Mello-Roos" Tax, which is typically a fixed amount rather than a percentage of the home's value. Mello-Roos taxes can range from a few hundred to thousands of dollars per year, while in some communities there are no Mello-Roos taxes at all.
What Will Your Tax Bill Be?
How can a buyer determine what the tax bill will be on a home he or she is considering buying? Obviously your Realtor should have this information at his or her fingertips, but it's at your fingertips too! Most counties make such information quickly available online, and Orange County's website is particularly easy to use.
The Orange County Treasurer/Tax Collecter Search Page allows you to search for a specific home by parcel number or address, as well as various other criteria. Once you've found the right home, you can "drill down" to see a summary of the tax assessment - but don't stop there. A the bottom of the page under the summary is a link in small text: "Click Here for Details". This is where the real meat and potatos are hidden.
A Tale of Two Cities
Let's take a look at the "details" for two home currently listed for sale - one in Misson Viejo, the other in Ladera Ranch.
28292 La Caleta in Mission Viejo is currently listed for sale for $699,990. Here are the tax details from the Tax Collector's website:
You can quickly substitue the assessed value of $447,754 with your purchase price to determine what your new tax bill will be, but what we're really interested in are the special assessments - those that are fixed amounts regardless of the value. In this case there are four special assessments totalling a whopping $33.81 per year.
30 Bedstraw Loop is a similar home located in Ladera Ranch, listed for $700,000. Tax details:
Mello-Roos rears it's ugly head - those two special assessments add over $4,500 to the annual tax bill, no matter what price you pay for the home! That effectively adds $375 to the monthly cost of owning the Ladera Ranch home.
Knowlege is Power
Obviously there may be many reasons a buyer would prefer a home in spite of a higher tax bill, but the key is to be aware of the difference in advance so that you can make a well informed decision and not face any unpleasant surprises late in the buying process.
Property Tax Basics
California's Prop 13, passed in 1978, capped property taxes at 1% of a home's value, and also limited the amount of increased assessment as a property's value rises to 2% per year. Of course, a home's value is reset each time it is sold, so no matter what the seller's property tax was, a home buyer can expect an annual property tax bill of 1% of the purchase price.
Sounds simple, but there's a catch. The "property tax" is not the only liability that shows up on your property tax bill. It may also include a wide array of "special assessments" for various voter approved bonds or other initiatives. The most notorious special assessment is the dreaded "Mello-Roos" Tax, which is typically a fixed amount rather than a percentage of the home's value. Mello-Roos taxes can range from a few hundred to thousands of dollars per year, while in some communities there are no Mello-Roos taxes at all.
What Will Your Tax Bill Be?
How can a buyer determine what the tax bill will be on a home he or she is considering buying? Obviously your Realtor should have this information at his or her fingertips, but it's at your fingertips too! Most counties make such information quickly available online, and Orange County's website is particularly easy to use.
The Orange County Treasurer/Tax Collecter Search Page allows you to search for a specific home by parcel number or address, as well as various other criteria. Once you've found the right home, you can "drill down" to see a summary of the tax assessment - but don't stop there. A the bottom of the page under the summary is a link in small text: "Click Here for Details". This is where the real meat and potatos are hidden.
A Tale of Two Cities
Let's take a look at the "details" for two home currently listed for sale - one in Misson Viejo, the other in Ladera Ranch.
28292 La Caleta in Mission Viejo is currently listed for sale for $699,990. Here are the tax details from the Tax Collector's website:
You can quickly substitue the assessed value of $447,754 with your purchase price to determine what your new tax bill will be, but what we're really interested in are the special assessments - those that are fixed amounts regardless of the value. In this case there are four special assessments totalling a whopping $33.81 per year.
30 Bedstraw Loop is a similar home located in Ladera Ranch, listed for $700,000. Tax details:
Mello-Roos rears it's ugly head - those two special assessments add over $4,500 to the annual tax bill, no matter what price you pay for the home! That effectively adds $375 to the monthly cost of owning the Ladera Ranch home.
Knowlege is Power
Obviously there may be many reasons a buyer would prefer a home in spite of a higher tax bill, but the key is to be aware of the difference in advance so that you can make a well informed decision and not face any unpleasant surprises late in the buying process.
Thursday, June 18, 2009
OC Median Price Up Again in May
Median Increases 3rd Month Out of 4
As reported in the Orange County Register, "By one measure, Orange County home prices increased for a third time in four months, perhaps indicating that housing is ricocheting off the bottom of the worst recession since the 1930s." The median home price rose about $20,000 to over $400,000. That's the same measure that they most frequently site, even though by their own admission, it is easily skewed by the number of homes sold in a given price range rather than actual price changes for a given market.
Price Per Square Foot
Let's take a look at what I feel to be a more accurate measure of actual market value, the sales price per square foot. In the same article linked above, the Register said "one local broker predicted that the price per square foot of Orange County homes could fall another 10 percent in the next nine months", but provides no further evidence or even explanation for why this might happen.
In 2006 Orange County's average price per square foot stood at $532, and it peaked in 2007 at $540, just before the 'bubble burst". Since then, there has been a steady and continuous decline to the bottom reached in February of this year at $246 per square foot - a drop of 53% over 2 years. That all seems pretty grim, but let's look at the monthly data:
The Good News
As you can see from the above chart, the average price per square foot for all homes sold in Orange County has held steady for 4 consecutive months at about $248. That flattening of the trend is not surprising considering the feeding frenzy for homes priced below $500,000, as well as the continual drop in available inventory. When was the last time that Orange County homes were selling for less than $250 per square foot? The first quarter of 2003! Prices are at a 6 year low, almost 50% of households can now afford to buy a home, the number of homes sold has increased year over year for 11 consecutive months, and interest rates continue to hover around 40-year lows.
The Time to Buy is Now
The message is clear - the current housing market represents a once-in-decades buying opportunity. First-time buyers may never see conditions this favorable, especially taking into account the Federal $8,000 Income Tax Credit. Investors have recognized the opening, and are bidding up lower priced homes with multiple all-cash offers.
The Move-Up Market
There's another group that has an excellent opportunity, and some are beginning to recognize it - homeowners with equity. Yes, they've taken a hit from the peak value of two or three years ago, but for those who didn't "cash out" the depressed prices and excess inventory of larger homes represent a unique chance to "move up". Let's say you bought your 1500 square foot home 8 years ago for $350,000 with 20% down. Through all the ups and downs, it's still probably worth $100,000 more than you paid, and your loan balance as actually fallen some. That $200,000 or so in equity represents the chance to buy a home in the $500,000 to $1,000,000 range at a time when such homes are priced at 6-year lows, and there are hundreds of motivated sellers to choose from!
As reported in the Orange County Register, "By one measure, Orange County home prices increased for a third time in four months, perhaps indicating that housing is ricocheting off the bottom of the worst recession since the 1930s." The median home price rose about $20,000 to over $400,000. That's the same measure that they most frequently site, even though by their own admission, it is easily skewed by the number of homes sold in a given price range rather than actual price changes for a given market.
Price Per Square Foot
Let's take a look at what I feel to be a more accurate measure of actual market value, the sales price per square foot. In the same article linked above, the Register said "one local broker predicted that the price per square foot of Orange County homes could fall another 10 percent in the next nine months", but provides no further evidence or even explanation for why this might happen.
In 2006 Orange County's average price per square foot stood at $532, and it peaked in 2007 at $540, just before the 'bubble burst". Since then, there has been a steady and continuous decline to the bottom reached in February of this year at $246 per square foot - a drop of 53% over 2 years. That all seems pretty grim, but let's look at the monthly data:
The Good News
As you can see from the above chart, the average price per square foot for all homes sold in Orange County has held steady for 4 consecutive months at about $248. That flattening of the trend is not surprising considering the feeding frenzy for homes priced below $500,000, as well as the continual drop in available inventory. When was the last time that Orange County homes were selling for less than $250 per square foot? The first quarter of 2003! Prices are at a 6 year low, almost 50% of households can now afford to buy a home, the number of homes sold has increased year over year for 11 consecutive months, and interest rates continue to hover around 40-year lows.
The Time to Buy is Now
The message is clear - the current housing market represents a once-in-decades buying opportunity. First-time buyers may never see conditions this favorable, especially taking into account the Federal $8,000 Income Tax Credit. Investors have recognized the opening, and are bidding up lower priced homes with multiple all-cash offers.
The Move-Up Market
There's another group that has an excellent opportunity, and some are beginning to recognize it - homeowners with equity. Yes, they've taken a hit from the peak value of two or three years ago, but for those who didn't "cash out" the depressed prices and excess inventory of larger homes represent a unique chance to "move up". Let's say you bought your 1500 square foot home 8 years ago for $350,000 with 20% down. Through all the ups and downs, it's still probably worth $100,000 more than you paid, and your loan balance as actually fallen some. That $200,000 or so in equity represents the chance to buy a home in the $500,000 to $1,000,000 range at a time when such homes are priced at 6-year lows, and there are hundreds of motivated sellers to choose from!
Monday, June 15, 2009
Industry Leaders Push Congress to Help Housing
The Housing Working Group of the Business Round Table recently released detailed recommendations for Congress and the White House aimed at jump-starting the housing market and the economy in general.
One key action the group is pushing for is expansion of the existing $8,000 tax credit for first-time buyers to a maximum $15,000 tax credit for all home buyers, with no income limitations, and the removal of several other restrictions.
Other recommendations of the group include:
One key action the group is pushing for is expansion of the existing $8,000 tax credit for first-time buyers to a maximum $15,000 tax credit for all home buyers, with no income limitations, and the removal of several other restrictions.
Other recommendations of the group include:
- Keep mortgage interest rates at historically low levels (below 5 percent) for at least one year
- Conduct a thorough review of current foreclosure mitigation and loan-modification programs in light of rising loan-modification re-default rates
- Make permanent the current temporary conforming loan limits
- Continue to review and strengthen government efforts already underway to review and refine mortgage lending practices
Sunday, June 7, 2009
First Time Buyer Information Page
Thinking about taking the plunge and buying your first home? We've created a new web page just for first time buyers. Check it out to learn some of the details of the Federal Tax Credit and the new CAR Mortgage Protection Plan. You can also visit our Home Buyer's Quick Start page.
Wednesday, June 3, 2009
Use Your Tax Credit to Lower Closing Costs!
First-time home buyers got another boost from HUD last week, when it was announced that buyers who qualify for a one-time tax credit of up to $8,000 can now apply that credit towards closing costs on an FHA loan, or to increase their down payment from the required 3.5%.
Thinking about taking the plunge? Check out our home buyer's quick start tips!
Thinking about taking the plunge? Check out our home buyer's quick start tips!
Monday, May 11, 2009
Has the OC Housing Market Bottomed Out?
The Orange County Register reported that the median price of a home in OC climbed for the second consecutive month. The March median was $385,000, up from $375,000 in February and $370,000 in January. Another bullish sign is the continued climb in the number of homes sold. March was the ninth consecutive month of year-over-year sales increases, with 2,433 homes sold - a 46% jump from March of 2008.
There are still plenty of concerns in the market, with homes priced over $500,000 selling slowly, and short sales accounting for about 30% of the homes on the market. One interesting wrinkle is that bank owned homes have become a scarce commodity. Just a few months ago bank owned properties also made up about a third of the transactions, but today only represent 5% of the homes for sale. REOs, especially in the lower price ranges, are in huge demand because of the relative simplicity of the transaction compared to a short sale, and the market is hot. Most bank owned homes are selling within a few days or weeks, and often at full price or higher. The Wall Street Journal has even dared to use the term "bidding war"!
There has been talk for months about a so-called moratorium on foreclosures related to the Federal financial bailout, TARP, and consolidation of banks, with speculation that it would soon end. This, of course, could lead to a new round of foreclosures and another influx of REO inventory on the market. That might lead to more downward price pressure, but it also might signal the final phase of a long and painful process.
Thursday, March 12, 2009
Straight Talk on Short Sales
Short Sales are a big part of today's Real Estate market in Orange County, but what exactly are they, and what does it mean to me? Here's a little Q&A.
What is a short sale?
A short sale is a sales of Real Estate in which proceeds of the sale are less than the amount the seller owes, and the lender agrees to accept a payoff of less than the balance due on the loan. The lender may also agree to pay other costs associated with the sale. There may be more than one lender on a property - if any of them agrees to accept less than the full amount owed it is called a "shor sale" or "short pay".
How long does a short sale take?
It can take anywhere from one to six months, or even more. Short sale transactions have to go through several phases that may normal sales don't, and they take time. Any normal sale of a home can happen quickly, or take up to 180 days or more. Once those normal negotiations are complete, the short sale process starts in earnest. The homeowner must establish eligibility for the short sale by showing hardship and providing a comprehensive picture of financial condition to the bank. The "package" with the negotiated offer is sent to the lender who will evaluate it from a financial perspective. If they agree to the sale in principle, the real negotiations then begin.
Should I try to sell my home in a short sale?
If you are struggling with house payments and considering a short sale, you need to know you have other options - and get professional advice. Some alternatives to short sale include:
- loan modification / refinance
- deed in lieu of foreclosure
- foreclosure
- bankruptcy
Why would a lender agree to a short sale?
For the lender, it is purely a financial decision. Foreclosures are expensive and take a long time to complete. Once the foreclosure is complete, the house may be worth less than what they could sell it for now. If the homeowner is in a true hardship situation, a short sale may be the best financial outcome for the lender.
I would like to buy a short sale. Where do I start?
Choose a REALTOR® who has the ability to identify a short sale property that is likely to result in a successful transaction. There are many homes listed on the market as short sales that are not likely to sell before forclosure. We can help you find the ones that will work, and we can work through any difficulties that may arise during the buying process. Take a look at some of these, then let us help you find the gems. It's not a simple process, but the potential reward is high.
Cross-posted from www.leslieeskildsen.com
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