Real Estate News
Multiple Offers Again in Los Angeles Westside Market
May 13th, 2009 Categories: Cheviot Hills - Rancho Park, For Buyers, For Sellers, Marina Del Rey - Venice, Real Estate, Real Estate News
Homes aren’t selling? In the last 8 days, our office has been involved in 16 multiple offer situations. This is happening in all neighborhoods. For example the home in Marina Del Rey at 137 Roma Court had over 10 offers on it over the weekend- a fantastic buy at about 3900 sf, asking price $1.575M after a price reduction. Another home in Cheviot at 10311 Glenbarr, a charming Spanish with courtyard, beams & all, also went into multiples after a price reduction.
That seems to be the key- most of these homes with multiple offers had price reductions. They didn’t sit, wait and hope for the market to catch up. Instead, they saw that they were overpriced right away, took charge and caught up to where the market had shifted. Thus, they sold.
| Currently No Comments »
$10,000 Tax Credit for Buyers! Breaking Down the New Home Tax Credit
March 19th, 2009 Categories: For Buyers, Real Estate, Real Estate News
To flush out the new homes on the market, California is offering a tax credit for qualified buyers who, between 3/1/09-3/1/10, purchase a qualified 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.
California allows the new home buyers a total tax credit amount equal to the lesser of 5% of the purchase price, or $10,000. Taxpayers must apply the total tax credit in equal amounts over three successive taxable years (max is $3,333 per year) beginning with the taxable year (2009 or 2010) in which the new home is purchased.
California has allocated $100,000,000 for this tax credit. Buyers must apply for the credit within seven calendar days after the purchase/close of escrow. Applications will be reviewed and credit allocations will be made on a first-come, first-served basis. Once the $100,000,000 has been allocated, the tax credit will no longer be available.
A qualified principal residence is defined as a single-family residence, whether detached or attached, that has never been occupied and is purchased to be the principal residence of the taxpayer for a minimum of 2 years and is eligible for the property tax homeowner’s exemption.
What is an acceptable property type? Any of the following can qualify if it is a principal residence and is subject to property tax, whether real or personal property: a single family residence, a condominium, a unit in a co-op, a houseboat, a manufactured home, or a mobile home. (Note: A home constructed by the owner/taxpayer is not eligible for the New Home Tax Credit because the home has not been “purchased.” )
Who is a qualified buyer? Any taxpayer who purchases a qualified principal residence.
For additional info and the details about how to apply for the credit (timing, forms, fax number, etc.), please click here and consult your tax professional.
Note: Thank you for Steve Kenilvort & Elly Carleton with First Capital for helping break down this tax credit.
| Currently No Comments »
Beverly Hills Homes & Condos are STILL Selling
March 4th, 2009 Categories: Beverly Hills - BHPO, For Buyers, For Sellers, Real Estate, Real Estate News
A quick update about our Beverly Hills real estate market… it’s not ALL doom and gloom out there! Though the properties may not be getting snatched up at the clip that they were in 2007, homes and condos in Beverly Hills are still selling and savvy buyers right now are doing very well. Currently there are 22 properties in escrow (4 in the Beverly Hills Flats) and we’ve had 50 sales since September 2008, in all price ranges from an $8,000,000 spectacular Trousdale home (closed mid-February) to a 2-bedroom condo selling for $510,000.
| Currently No Comments »
How the Isakson Amendment Went from $15K to $8K
February 18th, 2009 Categories: Real Estate, Real Estate News
Despite the unanimous approval in the Senate, in the final version of the stimulus package, Sen. Isakson’s proposed $15,000 tax credit for all purchasers of ANY home was removed. Instead, the House and Senate negotiators made small modifications to the first-time homebuyer tax credit that was enacted in 2008 as part of the Housing and Economic Recovery Act of 2008.
“This economic stimulus bill is yet another example of Congress throwing money at the symptoms but not getting to the root of the problem. This economic decline began in housing and it will only end when the housing market rebounds,” Isakson said. “I’m extremely disappointed the members of Congress negotiating the final package decided to eliminate my $15,000 tax credit for all Americans who purchase a home. I will continue to pursue my proposal as stand-alone legislation. We have historical precedent that shows this idea works and there has been so much public support for it. I believe my colleagues will go home next week and their constituents will ask them why a tax credit for all buyers and all homes wasn’t included in the final stimulus bill. I’m optimistic it can still be done.”
I heartily recommend everyone contact their representatives and let them know that you support Sen. Isakson’s ORIGINAL amendment. As a matter of fact, you think it’s so important that it needs it’s own bill! An $8,000 tax credit for first-time home buyers in nothing to scoff at, to be sure, but it certainly isn’t going to do enough to get the housing markets moving again. With something dramatic like the $15,000 tax credit for EVERYONE, people would sit up and take notice.
| Currently No Comments »
Unveiled Today: Homeowner Affordability & Stability Plan
February 18th, 2009 Categories: Real Estate, Real Estate News
Earlier today, President Obama unveiled the Homeowner Affordability and Stability Plan, which will offer assistance to as many as 9 million homeowners, while attempting to prevent the destructive impact of foreclosures on families and communities.
The plan contains three main components, and only applies to primary residences. The loans referenced in the plan cannot exceed Freddie Mac/Fannie Mae conforming loan limits. James Liptak, 2009 President of the California Association of Realtors® outlines the plan below:
“The first component is directed toward homeowners suffering from falling housing prices who still have equity in their homes, but no longer have the 20 percent equity needed to refinance. Under the plan, homeowners who have conforming loans owned or guaranteed by Freddie Mac and Fannie Mae will be allowed to refinance their homes, even if they do not have 20 percent equity left in the house. The U.S. Treasury Dept. estimates that about 5 million homeowners will be helped by this portion of the program.
The second component, known as the Homeowner Stability Initiative, is designed to assist homeowners who are “underwater” on their mortgages. The $75 billion initiative will bring together lenders, servicers, and the government so that all stakeholders share in the cost of the modification. Primary mortgages would be reduced to monthly payments that do not exceed a 38 percent debt-to-income ratio, with the costs of doing so borne by the lender. The government and lender then would split the costs of further reducing the monthly payments until they were at a 31 percent debt-to income ratio. An important aspect of the initiative is that homeowners do not have to be delinquent to participate.
The Homeowner Stability Initiative also will create incentives for servicers, mortgage holders, and homeowners. Servicers would receive an up-front fee of $1,000 for every eligible modification meeting the initiative’s guidelines. Guidelines are scheduled to be released by March 4. Mortgage holders will receive an incentive payment of $1,500, and servicers $500, for modifications made on loans that are current but at risk of imminent default.
The final aspect of the Homeowner Stability Initiative is creating clear and consistent guidelines for loan modifications. The Obama Administration plans to work with federal agencies, banking and credit union regulators, and the private sector in order to develop loan modification guidelines that can be implemented across the entire mortgage market. While adoption of the guidelines will be voluntary for the private sector, all financial institutions receiving Financial Stability Plan assistance going forward will be required to implement the loan modification guidelines.
The government estimates that between 3 and 4 million homeowners will benefit from the Homeowner Stability Initiative component of the plan.
The third component of The Homeowner Affordability and Stability Plan is supporting low mortgage rates by strengthening Fannie Mae and Freddie Mac. The Treasury Dept. plans to increase their Preferred Stock Purchase Agreements with both Fannie Mae and Freddie Mac from its current $100 billion in both entities to $200 billion in each. The Treasury Dept. also will continue to purchase Fannie Mae and Freddie Mac mortgage-back securities in order to help promote stability and liquidity in the marketplace. Additionally, the Treasury Dept. will increase Fannie Mae and Freddie Mac’s portfolios by $50 billion, for a total of $900 billion. The Obama Administration will work with Fannie Mae and Freddie Mac to support state housing finance agencies in serving home buyers, such as CalHFA. Funding for this will not come from TARP money but from the Housing and Economic Recovery Act.
While some of the details still are being developed, such as the modification guidelines, the Obama Administration plans on using programs and funding already allocated for The Homeowner Affordability and Stability Plan and will need little legislative approval for programs under the plan.”
I’ll keep you updated on the Homeowner Affordability and Stability Plan as more details and information become available!
| Currently No Comments »
Isakson Amendment Gives $15K Tax Credit to Homebuyers!!
February 11th, 2009 Categories: Real Estate, Real Estate News
The U.S. Senate on Wednesday unanimously approved an amendment to the economic stimulus bill by U.S. Senator Johnny Isakson, R-Ga., that gives a $15,000 tax credit to anyone who buys a home in the next year. Let’s hope this item stays in the stimulus package now being renegotiated in the house. I will keep you posted. Isakson’s amendment would provide a direct tax credit to any homebuyer who buys any home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislation’s enactment, and the tax credit would not have to be repaid.
The amendment would allow taxpayers to claim the credit on their 2009 income tax return. It also seeks to prevent misuse by only allowing purchases of a principle residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would end the current $7,500 housing tax credit on the date of enactment.
“It is rare that we have a road map to success in times of difficulty, but this country has once before realized a housing crisis every bit as bad as the one we have today and economic troubles every bit as dangerous,” Isakson said. “We have a pervasive housing problem, and we have a historical precedent that works. I am proud this Senate has joined together, learned from history and repeated a method that worked by adopting this amendment.”
In the mid-1970s, America faced a similar housing crisis when a period of easy credit and loose underwriting flooded the market with new construction. Interest rates rose, the economy slowed and America was left with a three-year supply of vacant homes. Congress responded by passing a $2,000 tax credit for anyone purchasing a new home for their principal residence. Isakson said he believes the results were clear and swift as home values stabilized, housing inventory dropped and the market recovered.
Keep in mind this is a tax credit- NOT a deduction. Which means $15,000 equals $15,000.
| Currently 1 Comment »
$145,000 Price Reduction!! HUGE Penthouse in Middle of Beverly Hills
January 19th, 2009 Categories: Beverly Hills - BHPO, Real Estate, Real Estate News
Hot off the press- not even in the MLS yet- listing on 121 N. Canon #402 in Beverly Hills is getting a huge price reduction- $1,775,000 to $1,630,000! That’s $145,000!
Incredible location, incredible space! Penthouse is over 3000 sq (per owner), totally private with no common walls and sun all day. Views everywhere- from downtown and the Hollywood Sign to Century City. 3 bedrooms/3.5 baths, balconies off of almost every room. Bright open living and dining room with hardwood floors, recessed lighting, fireplace & high ceilings- perfect for entertaining. Gourmet eat-in kitchen with island, granite counters, spacious patio. Huge private rooftop is crying out to be made into a gorgeous garden entertaining deck. Great building with low HOA dues of only $566/month. Secured entry, 3 side-by-side parking spaces & private storage unit.
Feels like a house & walking distance to everything in Beverly Hills! See former post for more pictures or go to the website:
| Currently 1 Comment »
HUGE Penthouse in the Heart of Beverly Hills!
December 5th, 2008 Categories: Beverly Hills - BHPO, For Buyers, For Sellers, Real Estate, Real Estate News
| Currently No Comments »
Los Angeles Times “Puts to Bed” the Real Estate Section
August 8th, 2008 Categories: Real Estate, Real Estate News
This really shouldn’t come as a huge surprise knowing about all the staff cutbacks that have happened at the Los Angeles Times recently, but the paper has printed its last edition of the Real Estate section. This part of the paper has been an important source of LA home information since 1901.
They’ll continue some regular columns in their new Saturday Home section and Sunday Business section, as well as put online content on their site throughout the week.
We all know that the emphasis in marketing for homes- and the corresponding advertising dollars- have gone online. Very few people are going to their local real estate pages in the paper and rely on that to find their future home. We’ve known this for awhile now.
I’d guess that the paper had the ad money for the length of time it did because when the market was booming, brokers had the cash to put into advertising that they knew wasn’t very effective just because they could. It was easier to appease sellers and continue the same old thing because it was less work that educating people about how the marketing paradigm had shifted away from print media. Now that everyone is watching their wallets much more closely, better advertising dollars are spent on being where the customers are.
Personally, I think this is unfortunate news about losing the section. Yes, anything people really want to know about, they can find online and do their research there. But in terms of replacing reporters, generating new content with depth and having the research behind feature articles, that’s pretty tough to replace with bloggers and a hodgepodge of web content.
| Currently 1 Comment »
Termite Inspections, Reports and Work - Who is Responsible?
May 21st, 2008 Categories: Bel Air - Holmby Hills, Beverly Hills - BHPO, Brentwood, Cheviot Hills - Rancho Park, Culver City, For Buyers, For Sellers, Hollywood Hills, Home Improvement, Home Resources, Inspection Resources, Malibu, Marina Del Rey - Venice, Pacific Palisades, Real Estate, Real Estate News, Santa Monica, Sherman Oaks - Studio City, West Hollywood, Westwood - Century City
So you’re about to buy or sell a house and the subject of termite inspections come up in discussion - usually when the offer is being written and/or presented.
Here is what YOU need to know:
CUSTOMARILY, the Seller is responsible for the inspection, providing the buyer with a termite report, and ultimately a termite clearance at the close escrow. The Seller usually pays for Section I work, and the Buyer can pay for any Section II work needed.
What is “Section I” and “Section II” work?
Section I is any EXISTING termite infestation, damage or wood destroying organisms such as dryrot fungus and the like. This may include local treatment, whole house tenting, and replacement of damaged timber.
Section II is anything found to possibly invite termite infestation or cause wood damage in the future, such as debris in the attic, earth to wood contact, etc.
There are circumstances when the Seller is NOT responsible for all the “termite work”, some examples are:
- When it’s an ALL CASH purchase. The termite clearance is necessary to close escrow because it’s often a condition for funding by the lenders.
- When the property is a TEAR-DOWN. If the intent by the buyer is to bulldoze the property to the ground, no one really cares if there are termites or rotted wood all over the place.
- When the SELLER specifies in the contract they will not do any work, or caps the dollar amount they are willing to pay for work needed. The Buyer then can agree to pick up the difference.
95% of the homes that are sold here in SoCal require some termite clearance action. Homeowners are well advised to maintain a termite treatment regime once a year to keep those buggers away.
Call us anytime for a referral to a reputable company to add to your home vendors list!
| Currently 1 Comment »
