San Diego Real Estate Buyers Win Again
November 5th, 2009 Categories: Aviara Real Estate Carlsbad Real Estate Encinitas Real Estate San Diego Real Estate la costa real estate
It’s official:
The $8000 first time homebuyers income tax credit has been extended by Congress — and (hallelujah!) buyers who have owned their homes for at least five years may be eligible for a $6500 tax credit for move-up purchases. President Obama is expected to sign it into law in the next day or so.
Both buying groups must have signed a purchase agreement April 30, 2010 and closed escrow by June 30.
It appears the credits will be good on primary home purchases up to $800,000, while vacation homes don’t count. Qualifying income limits are $125,000 per year for individuals and $225,000 for joint filers. Military members serving outside the United States for at least 90 days are expected to have these credits extended an additional year–until June 30, 2011.
As an added bonus, taxpayers may be able to retroactively claim the credit on home purchases completed in 2010 on their 2009 income tax returns. At the same time, buyers must remain in their newly-purchased homes (as primary residence) for 36 months after purchase or face repayment of the credit. This latter requirement is waived for active military personnel who are transferred due to military orders.
The passage of this legislation will help relieve much of the pressure for San Diego first time home buyers.
Through August, 2009 1.2 million first time home buyers have qualified for this income tax credit and the National Association of Realtors estimates that 350,000 of these purchases are directly attributable to the first time home buyer credit. –Roberta Murphy Carlsbad, CA
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San Diego Real Estate Hunt: Trick or Treat?
October 31st, 2009 Categories: Carlsbad Real Estate San Diego Foreclosures San Diego Real Estate San Diego Relocation la costa real estate
Carlsbad, CA–This past year has been tough for both San Diego real estate sellers–and buyers–and both sides of the fence have had to wonder if they are being tricked or treated by market conditions.
On one hand, home sellers hear that we are in the toughest market for San Diego home sales in years. Prices have dropped off the cliff and these home sellers have heard of neighbors who finally took their home off the market after trying to sell for a year or more.
On the other hand, we have buyers who have made multiple offers on multiple properties (usually San Diego’s fabled short sales and foreclosures), and have given up hopes of ever being able to buy a home in San Diego County. Their exhausted real estate agents are also about to throw in the collective towel.
So what is really selling in San Diego–and who are the succesful home buyers?
The successful home sellers are those whose homes are not only well-priced, but are also squeaky clean and show better than their neighbors. They fortunately are also able to advertise their homes as having equity–and can brag that they are neither a fabled San Diego short sale or foreclosure. They allow lockboxes, and make showings simple for both agents and their buyers.
Successful San Diego home buyers are realistic. They acknowledge those fabled short sales and foreclosures–but more frequently, they are requesting to see realistically-priced foreclosures and homes that are NOT in the foreclosure or short sale process. These buyers have money for down payments, have good credit histories and are realistic in home buying expectations.
In our practice, these buyers are experiencing great success–and those who qualify as first time home buyers are also reaping the $8000 tax credit–an additional treat.
Our successful home sellers have homes priced to the market and work hard to make them as attractive as possibleto picky buyers. They know these two elements will do more than anything to bring themselves and qualified buyers to the closing table.
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The Siberian Dilemma: Foreclosure or Short Sale?
October 27th, 2009 Categories: Aviara Real Estate Carlsbad Real Estate Encinitas Real Estate San Diego Foreclosures San Diego Real Estate la costa real estate
Carlsbad, CA–When considering the hard choices faced by distressed San Diego real estate owners, it’s not too difficult to recall what is called the Siberian Dilemma:
If you are stranded on a frozen lake in Siberia and fall through the ice, you have four minutes to live. If you crawl out of the hole into the frozen air, you have two minutes to live. Neither are good choices.
The frozen dilemma may seem out of place in sunny San Diego, but some make the mistake of assuming that the long term consequences of short sales and foreclosures are essentially the same. That assumption could be disastrous.
If you are faced with the dilemma of pursuing a short sale or allowing your distressed property to go to foreclosure, there are some important factors to consider:
Credit Issues
If you lose your San Diego home to foreclosure, your credit or FICO score may be dinged 250 to over 300 points and will typically harm your score for at least 3 years. A short sale, on the other hand, may only reflect late payments–and after sale, the mortgage will be reported as paid or negotiated. If all other credit payments are being made on time, the credit score hit could be as little as 50 points.
It’s also important to note that a foreclosure will remain as a public record reflecting one’s credit history for 10 years or more, while short sales are currently NOT reported as such on credit histories.
Future Mortgages
A foreclosure may wreak havoc with your attempt to obtain a mortgage in the next 5 to 7 years. The standard 1003 mortgage application currently asks, “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” One whose primary home has gone to foreclosure is not eligible to receive a Fannie Mae-backed mortgage for 5 years. And it’s even worse for the investor, who cannot receive a Fannie-backed investment mortgage for 7 years.
Short sales are treated quite differently. A homeowner or investor who has sold via short sale will be unable to obtain a Fannie-Mae back home or investment mortgage for just 2 years. Quite a difference!
Employment
This will hopefully change in the future, but currently a foreclosure in one’s background can create real challenges with federal, state and local security clearances. This could be a real problem for both prospective and active military, police, FBI and other positions requiring security clearance. Additionally, many employers require credit checks for all job applicants as well as periodic checks on employees in sensitive positions. A foreclosure could result in loss of employment—or none altogether.
Meanwhile, a short sale is currently NOT reported on credit reports and therefore presents NO challenge to current or future employment.
San Diego County homeowners who are under huge distress with escalated mortgages, homes that are worth less than what was originally paid, and/or loss of income may feel that all is lost–including their homes and future possibilities.
Dismiss those defeating thoughts.
After much research and personal experience, we have determined that a leap out of freezing water (pre-foreclosure) might offer hope of salvation if immediate action (short sale) is taken to settle old mortgages so that distressed homeowners can eventually reclaim their lives.
We are now aggressively seeking San Diego area home sellers who wish to avoid foreclosure. On a selfish level, we believe that a successful short sale might result in a lifelong client.
On a realistic level, we know that each home saved from foreclosure saves not only a future homeowner, but potentially our entire economy.
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San Diego REO Buyers: Rejoice or Growl?
October 18th, 2009 Categories: Carlsbad Real Estate San Diego Foreclosures San Diego Real Estate
Carlsbad, CA–I’m not sure whether San Diego REO buyers should be rejoicing or rolling their eyes about Assembly Bill 957.
This new California law went into effect October 11, 2009 and prohibits an REO lender from requiring buyers to purchase escrow or title services from any particular company. And an REO lender who violates this law that applies only to residental property (up to four units) can be whacked for 3X the charges incurred by the buyer.
And if the seller’s real estate agent tries the same thing, he or she could be subject to license disciplinary action.
It sounds like a consumer-friendly action, and it’s about time that buyers of San Diego bank-owned or REO real estate get a break–especially when it comes to excessive fees that are slid their way at the closing table. Sellers and servicers have been in total control of the transaction, and almost always demand that escrow be handled by their escrow company of choice. That escrow company may be in another county, may have overloaded staff (dedicated to REO’s) who are unable to answer phone calls, and may very well be pushing excessive fees onto home buyers.
On the other hand, most of the San Diego REO’s we deal with are subject to multiple bids from other buyers, and just one of the ways we try to get our buyer’s offer accepted over others is to allow escrow and title to be of “seller’s choice.”
Why? Because if we stipulate our own responsible, reasonable and local escrow service provider in the offer–it could cost our buyer the home. The successful bid will be the one closest to what the lender wants.
And unless the REO is languishing and has no other offer, we will likely continue suggest to our buyers that they allow servicers and lenders to select escrow and title companies–and warn our clients about the possible overcharges that could amount to a few hundred dollars. What we may be trading is small change for savings in the thousands.
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The Latest San Diego Remodel: Staircases
October 15th, 2009 Categories: Aviara Real Estate Carlsbad Real Estate San Diego News la costa real estate
Carlsbad, CA–Over the past decade, there has been a flurry of home remodeling in San Diego County–particularly in coastal areas, where building activity first blossomed. During the last ten years, tile and formica surfaces in kitchens and baths have been replaced with natural stone products, while stainless steel appliances dominate kitchens. Popcorn has been scraped from ceilings and energy efficient dual-paned windows are replacing their single-paned predecessors.
Now, the staircases in 1970’s and 1980’s homes are being replaced.Being torn down are enclosed staircases, along with those stem walls with
wrought iron toppers and 2×6 handrails (see photo at right). Some are being replaced because of safety issues that could result in a child’s head could get stuck between the stair rails–or a disastrous fall .
We had the opportunity to interview San Diego’s original staircase replacement expert, Gregg Kuzara, who happened to spend a few days in our home performing his wood and metal magic. He explains that because of the advancement in tools, technology and trade that what might have cost $30,000 (or much, much more) just 15 years ago can now be had for perhaps $10,000.
Where once wrought iron staircase pickets had to be handcrafted, they can now be largely manufactured offshore. Cordless tools, computer drafting and other construction advances have made staircase replacement far more efficient–and far more affordable, than we had imagined. Count on teardown and reconstruction taking at least a week–and probably longer.
The results, though, might add an entirely different dimension to your home. As we show homes throughout North San Diego County, it is easy to see the difference newer wrought iron, railings and woods can make to older barriers. And finally, this article has nothing to do with what we are paying for our staircase replacement. Consider this a heartfelt and unpaid endorsement.
Would we recommend Gregg Kuzara and his San Diego staircase replacement services? We would–in a heartbeat!
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San Diego Named a Top City for Cyclists
October 4th, 2009 Categories: Carlsbad Real Estate San Diego Activities la costa real estate
by Roberta Murphy
Carlsbad, CA–As San Diego Realtors, we are noting an increased number of bike racks hanging or sitting in area garages. They are also commonplace at business venues. If not, bicycle enthusiasts might do as my hairdresser in Solana Beach does: Just roll the bicycle indoors and park it near the stationary hair dryer–and hang the helmet from the handlebars.
And why shouldn’t Forbes Traveler name San Diego as one of America’s most bicycle-friendly cities?
San Diego has a population of 1.2 million and is blessed with 850 miles of biking trails that take riders from beaches to canyons to mountains. Moreover, our balmy and sunny weather with constant temperatures between 50-80 degrees make not only San Diego real estate a dream–but one come true for riders seeking dry weather and spectacular terrain.
In fact, says the Forbes article:
The Bayshore Bikeway, which conveys peddlers along a 24-mile oceanfront corridor, may be North America’s most sublime trail, though escaping to mountain trails is also a snap. Try to visit during August’s Midnight Madness ride (the party starts at 8 p.m.), and also make sure to visit the downtown velodrome and Olympic Cycling Training Center.
Kudos to San Diego for this recent recognition by Forbes–but cyclists from around the world come here to enjoy our cycle-friendly terrain, scenery and incomparable weather. It’s a great group activity, and we see clusters of cyclists ride by the streets of Carlsbad, Encinitas and La Costa almost every weekend.
They are a colorful and welcome sight!
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Carlsbad Beach Area Townhome Bargain
October 3rd, 2009 Categories: Aviara Real Estate Carlsbad Real Estate la costa real estate
Carlsbad, CA–Sometimes people live in homes so gently that years barely wear on the surfaces.
Cabinets still gleam with their original finishes, tiling sparkles, and nothing has soiled the walls. Even paintings are hung on steel straight pins in order to avoid nail holes.
We just listed such a home in South Carlsbad’s highly-desired Las Playas. The owner bought her 1292 square-foot townhome in 1986–and has tenderly cared for it ever since.
Her initial attraction to this Carlsbad condo development was its wonderful location so close to beautiful beaches and other North San Diego County attractions. The location of this 1292 square-foot Mediterranean-styled residence within Las Playas was also very appealing. The broad front lawn, the quiet tree-lined street and nearby pool all made the setting an irresistable one.
Inside is an open living area with fireplace, a sunny kitchen with view, two bedrooms with baths, downstairs guest bath and mirrored closet doors. A detached 2-car rear garage is adjoined to the home via a spacious private patio–and is entered through an alley. The exterior has been freshly painted and montly HOA fees are only $202 per month.
The price? A true bargain at $389,000. The owner is packing, so the home is not in the MLS yet–nor is it a short sale, Carlsbad foreclosure or bank-owned home.
For a private preview, call Mike Murphy at 760-402-9102 or Scott Murphy at 760-402-9102 and to see more photos of this Carlsbad Condo:
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Carlsbad Oktoberfest Today!
October 3rd, 2009 Categories: Aviara Real Estate Carlsbad Real Estate San Diego Activities la costa real estate
Carlsbad Oktoberfest
Carlsbad, CA–It’s a beautiful fall day and what better way to spend the afternoon and evening than attending the annual Carlsbad Oktoberfest to be held at Holiday Park at the corner of Chestnut Avenue and Pio Pico Drive, 92008. The Carlsbad Rotary festivities will run from noon until 10 p.m. and tickets for all ages run $10 each.
A hearty German dinner will be served from noon to 8 p.m., while Roger and the Villagers will entertain the crowds with traditional polka music from 5 until closing. Kids can enjoy the excitement with face painting, fun clowns and a pumpkin-decorating contest.
Tickets can be purchased:
Al’s Cafe in the Village (760-792-5448)
Boys & Girls Club of Carlsbad (760-729-0207)
Women’s Resource Center (760-757-3500)
Carlsbad Convention & Visitors Bureau (760-434-6093)
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Appeal Your San Diego Property Tax Value: FREE
September 28th, 2009 Categories: Aviara Real Estate Carlsbad Real Estate Rancho Santa Fe Real Estate San Diego Real Estate la costa real estate
Carlsbad, CA–We (or really husband and partner Mike Murphy) have been busy helping our San Diego real estate clients appeal the assessed value of their homes–and in some cases are helping homeowners to save over $200 in property taxes each month. Mike is all smiles when each form is completed.
The cost? Nada!
Want to lower your San Diego property taxes? It’s something you can do yourself by visiting the San Diego tax assessment appeal site and mailing in the application. But do it quickly, because the deadline for these appeals is December 1, 2009.
If you need any assistance, please feel free to give Mike a call at 760-402-9102 and he’ll guide you through the process (as well as dodging bullets from those charging a fortune for the service). He’ll also help provide you ammunition with comparable sales that may help lower your assessed value.
What’s more, you’ll both end up smiling.
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Taking the Ha$$le Out of Your San Diego Move
September 25th, 2009 Categories: Carlsbad Real Estate San Diego Real Estate San Diego Relocation
Carlsbad, CA–Local discount movers, Jerry and Kirstie Berzanski have been kind enough to share 7 moving tips that may benefit some of our San Diego real estate readers who are preparing for a San Diego relocation. All are valuable tips– and ones that could result in huge savings in your home move:| Currently No Comments »
