Why use a Realtor when I can get all the information I need off the internet?
The internet has swaths of information on everything and anything. fact, I bet I could find plans, lessons, and instructions on how to build a home myself. The fact of the matter is unless I had some background or personal guidance, I wouldn’t know how to interpret the information given to me on building a home.
That being said, Realtors are experts in their field and they are the ones who provide the knowledge buyers need and rely on. Knowing what inspectors, appraisers contractors that are trustworthy is a very important factor in your home purchase.
It’s one thing to look at comparable sales in the computer to try and determine value, but it’s another to have your agent see these homes first hand to know if they had functional floor plans or not.
The internet is a wonderful tool, but real estate agents with a vast amount of knowledge still hold a higher value. Buyers also put their trust in agents to protect them with the legal jargon in the contract as well.
Monday Mid-Peninsula Market Reports
Okay, Just stats this week. All the numbers are still looking good for market recovery, but remember due to stricter loan rules most of pending sales are going to take longer to get through escrow. How much longer will each transaction take? In the past, we would estimate a home taking about 30 days on average to get through escrow. But now, with new restrictions we are estimating escrows to take on average of 60 days. Short sales often taking longer than 90 days.
With that being said, here are this weeks stats!
How to Sign Up For Email Updates on Our Blog!
Lately, I have received multiple comments and emails asking, “How do I add your website to my RSS reader?” While I know this is a common spam response line, I have received a few sincere emails asking how it is done. So over time, I will address how to add our site to many different RSS readers. Today, I will give a step-by-step process on the easiest method; The Direct E-Mail Feed.
This type of feed does not require an “RSS Reader”. You simply sign up and every time an article is posted you get an email.
So here’s how to subscribe…
The Encouraging News Continues!
The encouraging news on Active and Pending Listings continues. The number of single family homes in the six city survey continues to be 4% lower than it was at this time last year. The “Actives’ trend line is flattening out after a rapid rise.
Pending sales are again 23% higher that they were last year at this time. In fact, last week our stats showed that the number of pending sales was higher than the previous two years and only one pending sale lower than 2006. This week ALL the pending sales in the previous 3 years were lower than what is currently pending. We now have one MORE pending sale that 2006 at this time.
Closed escrows remain on their downward trend, but the increase in pending sales should ultimately positively influence the number of closed escrows. It seems that the longer time periods negotiating the approval of short sales and increased buyer documentation for loan approval has increased the average number of days in escrow. We had several escrows that were scheduled to close in April that were pushed back to May and some of those transactions have now closed.
Again, the majority of closed escrows to date in San Mateo were sold over the asking price. 12 of the 18 closed escrows sold for the asking price or higher. Restated from last week, I think that it shows the buyers have confidence in the future value of those homes if they are bidding over the asking price. In today’s San Francisco Chronicle, Many Homeowner’s Face Facts article, Zillow’s survey of homeowners implies that the homeowners lack of confidence in home values may have bottomed out. The article’s author continues that they would be curious to see what homebuyers think the home values will go over the next six months. In the San Mateo area, I think we’re starting to see the answer.
2009 Tax Benefits for Home Buyers!
The main culprit for the current economic downturn is the housing market. Many say that the housing market got us into this mess, and it’s the housing market that would have to get us out. The government seems to agree with that view, and is doing to help stimulate housing recovery.
How The Federal Government will Help You with Purchasing a New Home:
With the recent passage of the American Recovery and Reinvestment Act of 2009 many new tax benefits have become available. The first time home buyer tax credit has been increased to $8,000. The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law test the home ownership history of both the home buyer and his/her spouse. The tax payer must live in the home for at least 3 years to qualify of they will have to repay the credit. These benefits are subject to income limitations. The credit applies to homes purchased from January 2009 to November 30, 2009. The credit allowable is phased out when the modified AGI (“Adjusted Gross Income”) is between $150,000 — $170,000, for MFJ (married filing joint), or $75,000 — $95,000 for all others.
The credit can be taken on the 2008 or 2009 tax return.
How the State of California will Help You With Your New Home Purchase:
The State of California has a tax credit available. This tax credit is available for qualified buyers who on or after March 1st, 2009 and before March 1st 2010, purchased a qualified principal residence that has never been occupied. The buyer must reside in the new home for a minimum of two years immediately following the purchase date.
Use must apply to the state of California for this credit by fax only (916) 845-9754. This Credit is allocated on first come, first served basis. Credit allocation letters will begin to be mailed no later than 5-01-09.
The state of California has allocated $100,000,000 for this credit. You can visit the state website for more information. At the site they track the total amount of credit applications recieved.
California allows qualified new home buyers a total tax credit amount equal to either five precent of the purhcase price or $10,000, whichever is less. Taxpayers must apply the total tax credit in equal amounts ove three successive taxable years (maximum of $3,333 per year) beginning with taxable year 2009 or 2010) in which the new home is purchased.
Requirements of the credit
The home must be a qualified residence. The home must:
- Be a single family residence (whether detached or attached)
- Never been previously occupied
- Be occiupied by the taxpayer for a minimum of two years.
- Be eligiable for the property tax homeowner’s exemption
If the available credit exceeds the current year net tax, the unsed credit may not be carried over to the following year. The credit is not refundable. Types of residences. Any of the following can qualify if it is your principal residence and is subject to property tax, whether real or personal property: a single family home residence, a condominium, a unit in a cooperative project, a house boat, a manufactured home, or a mobile home.
Owner-built property: A home constructed by an owner-taxpayer is not eligible for the New Home Credit because the home has not been purchased.
