Click here for video or read Tips below.

1.  Be committed.  In a buyer’s market sellers are competing with distressed listings such as, short sales, bank owned properties (REO’s), and foreclosures.  This is not the market for sellers who want to ‘test the waters’.  The market will determine the price.  Money is not the primary motivator to the serious seller.

2.  The price must be right.  Check out the value estimator at www.zillow.com.  Hire an agent that you trust.  Be sure you understand current market conditions. Your agent should focus on both current listing that will be your competition and the most recent sales comparables.  Sellers seldom see their property objectively nor have they seen the competing properties the buyers are seeing.

3.  Staging is a must.  Listen to your agents suggestions. Agents know the importance of staging and presentation.  Many agents have a stager on their team as we do.  If not, consider hiring a professional stager. Ask your agent to show you competing homes.  This will give you a sense of how your home stacks up against other homes buyers are seeing.

4.  Your home must be available.  Lock boxes are electronic and enable the listing agent to see who is showing the property.  Easy access means more showings. More showings results in a quicker sale.

5.  Tell the world.  Your agent will want to place a prominent for sign with marketing material and contact information available.  The more people that know your home is for sale the better. Neighbors and others that drive by frequently might even have a friend or relative who they would want as a new neighbor.

6.  Listen to the feedback.  If one buyer says something, others are probably thinking the same thing.  If several similar comments are made, work with your agent to do something about the problem.

7.  Be flexible.  No showings means the price is too high.  No offers means the price is too high.  In a flat or declining market you must stay ahead of the price curve.  Set the price right in the first place and you won’t have to chase the market leader.  Set a price that makes your home the market leader.

8.  Take a deep breath…and then another.  Selling, buying, and moving are stressful events.  Ask them how you can help get the house sold.  Ask them what they would do if you were their relative, or it was their home.  Ask this question frequently.

9.  Time is of the essence.  This means sooner is better than later.  In a buyer’s market, time is not your friend. There is a real estate adage that states, “the first offer is the best offer.” This is especially true in a buyer’s market.  Don’t let a “low ball” offer “offend” you and short circuit your goal.  Remember, the objective to get your home sold.  Negotiation should be your agent’s forte’.  Let him or her do their job.  

10.  Patience is a virtue.  Your agent will discuss the average days on the market in your neighborhood with you.  If your goal is to sell your home sooner than the average days on the market use the tools of price and presentation.

Video version below.

 Hello……..It’s Wednesday, February 11th, 2009 and I’m Russ Boyd, with the Bay Area Home Teams market update and commentary.
In this message I am going to cover current very positive news that affects all homeowners and interested home buyers.

As you I mentioned in my last market update, the Senate version of the latest “stimulas package” includes a return of the high balance conforming loan limit, approved last year.  In its present form the senate version will set the new high balance conforming limit for most bay area counties at $729,750. With conforming mortgage rates in the low 5’s the outlook for home buyers and those wishing to refinance just got better.

The much hyped first time buyer’s credit of $7500 didn’t have much impact on home sales.  The senate version of the bill doubles the credit to $15000…and it is for all buyers which means “move up buyers” will benefit as well. AND even better, it doesn’t have to be repaid!!!   Plus it can be used in 2008 and 2009 to reduce a buyers tax liability.This should go a long way to getting buyers off the fence…..For more details, let me know…I’ve put a link below…

Third, if you haven’t heard, Bill Gross, co-CEO at the Pimco bond fund, said Monday in a CNBC interview.”I think at some point we’re going to see a 4.5 percent mortgage rate and the 10-year Treasury rate capped at some level,” he said. “When the Fed comes in to buy Treasury’s that will be a big day.”   If you are thinking this might be a good time to refinance, you could be right….give me a call to hear how today’s low rates can benefit you!

And…Have you heard about Fannie Maes HomePath program? In a nutshell, it allows buyers of Fannie Mae Foreclosures to borrow up to up to 97% of the purchase price on a primary residence,  with  no mi and no appraisal…and it can be used on second home and investment home purchases with as little as 10% down. The program even relaxes the  FICO score minimum to as low as 660.  For more information check with me…

Have you seen the Evolution of Dance video.  Six minutes and very funny….check out the link below ……
Until next time……this has been Russ Boyd with the Bay Area Home Teams Market update and commentary……

Senate version of stimulus bill delivers good news to homeowners and home buyers…

Click [more] link to the right to play video…..

http://bayareahometeamonline.com/2009/02/12/video-market-updatesenate-delivers-good-news-to-homeowners-and-homebuyersfannie-mae-foreclosure-purchase.aspx 

Hello……..It’s Friday, January 30, 2009 and I’m Russ Boyd, with the Bay Area Home Teams market update and commentary.

In this message I am going to cover three of the initiatives affecting home ownership that are likely to be part of the stimulus package being put together by congress and the new administration.

As I’ve mentioned previously, the stimulus package passed early last year raised the “conforming” loan limit in the bay area temporarily to $729,500 through 12/31/08.  On January 1, 2009, the new conforming limit became $625,000.  I believe we will see the limit raised to $729,950 in the new package.

This is important for bay area homeowners and homebuyers because the “jumbo” loan market is very overpriced relative to conforming loans.  This limits homeowners from refinancing and limits sales for homes valued above $850000.  $729,950 is a step back in the right direction.

Topic two concerns, the first time buyer’s credit of $7500 for those that qualify.  As it currently stands, the credit is repaid interest free over 15 years.  This credit is scheduled to expire on 7/31/09.   I believe we will see this credit expanded to eliminate the need for repayment.  It’s even possible that this credit may increased and be available for all buyers.

Third, possible changes to the bankruptcy code will affect some homeowners….up until now only the lender could agree to modifications to the rate or balance in a bankruptcy proceeding… for years consumer groups have fought for   and   lending groups have opposed what is called “mortgage cramdown”.  Essentially, if mortgage cramdown becomes part of the bankruptcy code a bankruptcy judge will have the authority modify a loan balance without the lenders authorization in a bankruptcy proceeding. 

Despite opposition from     lenders and wall street, it now seems likely that this provision, in one form or another will be included in  new legislation that will amend the present bankruptcy code.

A quick market update….year over year home sales in California were 47% in December. The number of sales has been up from 2007 for the past six months in a row…..

And…The 2008 Remodeling Magazines Cost vs Value remodeling report  is now available at the link below this video…

Remember, our Buyers Seminar is Saturday February 7th… contact me for details….

Now for a shot of  humor….check out the link below …who knew melons and art went together….

Until next time……this has been Russ Boyd with the Bay Area Home Teams Market update and commentary……..

Topics include information regarding new legislation affecting homeowners Raising the conforming loan limit First time buyers tax credit What is “mortgage cramdown” Buyers Seminar-February 7, 2009
http://bayareahometeamonline.com/2009/01/30/market-update-video-by-russ-boydnew-legislation-affecting-homeowners.aspx

Video
market updates and commentary by Russ Boyd.

Topics include:

Buyers Seminar-February 7, 2009
How low will they go? Is it time to refinance?
Lower home value may mean lower property taxes. We can show you how.

Our next video market update will include commentary about residential
investment property.
http://bayareahometeamonline.com/2009/01/14/market-updatebuyers-seminarlower-property-taxesrefinance-2.aspx

Seems like every day news “updates” bring us the latest about mortgages, some new Fed policy, Fannie/Freddie and mortgage rates. The most recent news tells us that rates may get down to 4.5%!
As many of you know, I’ve been in the mortgage and real estate industry over 30 years.

Here’s my view in a nutshell:

1. As of 1/1/2009, the new “conforming” loan limit will be $625,000 in bay area counties (down from the “temporary” limit of $729,950).
2. Conforming loans at $417,00 and below are still called “conforming”. Loans between $417,001 and $625,000 are referred to as “agency high balance” or “jumbo conforming”.
3. Fact not generally reported in the media: A price premium for loans in excess of the former conforming limit of $417,000 has been imposed. The low rates you hear about in the media and being advertised are almost always for loans at $417,000 or less.
4. The Good News! That price premium has been going down. As of this writing the spread for loan amounts between $417,000 and $625,000 range from .25% and .50% in rate.
5. Another fact not generally reported in the media: There have been price premiums imposed for any variation from the “gold standard”, i.e., 30 year fixed, credit score 720 plus, 25% equity, income fully qualified.
5. True JUMBO LOANS (over $625,000 as of 1/1/2009) are written by fewer lenders and rates vary considerably, however, it’s common for lenders offering JUMBO LOANS to only offer 5 or 7 year fixed rate loans that are currently priced in the high 6’s to mid 7’s. 30 year fixed rate JUMBO LOANS can be in the high 7′s to low 8′s. Loan to values are limited and there are premiums added to the rate for variations from the “gold standard”. See 4 above.

In the bay area, limited availability, high rates and restrictive underwriting criteria for JUMBO LOANS has been a significant contributor to fewer sales for homes priced above $800,000. This is another reason the median sales price continues to decline.

BOTTOM LINE
If your current loan is a 30 year fixed with a rate that is above the mid 5’s or an adjustable rate loan that will soon adjust to above the mid 5’s and there is at least 20% equity in your home based on current appraised value and you live in the home and your credit score is 700 or above and your income is verifiable and your new loan will be $625,000 or less and if fixed rates drop below 5%, refinancing may well be worth considering.

More News
1. For buyers, there are many loans available that make this a great time to buy, especially for first time buyers. These include Cal HFA, FHA, VA, CalVet and others. These programs offer low to no down payment loans and accept lower credit scores, however, there are insurance premiums (private or government sponsored) that increase the payment above the stated note rate.
2. With a new congress and new president, expect more changes. Two changes needed for the health of real estate in the bay area include; increasing the “Jumbo Conforming” loan limits to 125% of the median price and renewed market confidence in TRUE JUMBO Mortgage Backed Securities.

Here’s a set of interesting graphs. Click here: Graph-Fixed Mortgage Rates and Fed Funds Rates from 1971 to Present

As always we are here to assist you, your family and friends with mortgage, real estate, home decorating/staging AND something NEW…our Bay Area Team Mobile Notary Service. If you or anyone you know needs a notary, we invite to check out the link.

Abstract

The
United States is indisputably undergoing a financial crisis. Here we
examine four claims about the way the financial crisis is affecting the
economy as a whole and argue that all four claims are myths.
Conventional analyses of the financial crisis focus on interest rate
spreads. We argue that such analyses may lead to mistaken inferences
about the real costs of borrowing and argue that, during financial
crises, variations in the levels of nominal interest rates might lead
to better inferences about variations in the real costs of borrowing.

See report here:

Facts and Myths about the Financial Crisis of 2008-A Report by The Federal Reserve Bank Minneapolis

http://www.minneapolisfed.org/research/WP/WP666.pdf

1. Globalized Jobs Return Home

By Amanda Ripley

The world suddenly seems big again. A family of four can’t fly
cross-country for much less than $2,000. The cost of shipping a
standard 40-ft. (12 m) container of couches from Shanghai to New Jersey
has tripled since 2000. Trucking carrots from Mexico to Georgia makes
less and less economic sense.

When John Smith started a high-end furniture company in Washington
in 2003, he couldn’t make everything in the U.S. and stay competitive.
So his company, Willem Smith, started operations in Vietnam and
Ecuador. He found himself visiting factories 11 time zones away from
his four small daughters.

By last year, the cost of making and importing one of his favorite
pieces, the Caballero chair, was ballooning. He was shipping Italian
leather to Vietnam and then shipping the large chair back to the
States. There were other problems too, like inflation in Vietnam. So
last January, Willem Smith “repatriated” the Caballero to Hickory, N.C.
That shift helps contain shipping costs and has other perks. “People
are happy to buy American,” Smith says. “And it felt kind of nice to
bring this one home.”

In more industries, such as steel, lawn-mower batteries and upscale
furniture, doing business in the U.S. is starting to look slightly more
feasible. With reporting by Maya Curry

2. Sprawl Stalls

California provides for a Homeowners’ Property Tax Exemption. This is a
$7,000 reduction in the taxable value of a qualified owner-occupied
home. Here are some frequently asked questions regarding the exemption
and information about how to apply for the exemption if you are not
already receiving it.

Q: Who is eligible for the homeowners’ exemption?

A: Homeowners who own and occupy a home in California as their
principal residence on January 1st of the year for which they are
claiming the exemption.

Q: What type of dwelling units can qualify for the homeowners’ exemption?

A: Any of the following can qualify if it is your principal residence
and is subject to property tax: a single family residence, a
condominium, a unit in a cooperative housing project, a houseboat, a
manufactured home, or a mobilehome. However, manufactured homes and
mobilehomes that are subject to the California vehicle license fee
instead of local property tax do not qualify for the homeowners’
exemption.
Q: How do I know if I am already receiving the homeowners’ exemption?
A: Your annual property tax bill should reflect a $7,000 reduction in the taxable value of your home if you are receiving the exemption. It is always a good idea to double-check your tax bill each year, even if you have received the exemption for many years.
Q: How do I apply for the homeowners’ exemption if I am not already receiving it?
A: Your county assessor will provide you with a simple form to complete, free of charge. If you were receiving the exemption for your home in previous years but did not receive it this year, contact your county assessor to make sure your exemption was not removed in error. However, if you failed to apply for the exemption in previous years, it cannot be granted retroactively.
Q: What is the deadline for filing a homeowners’ exemption claim with the county assessor?
A: To receive 100% of the allowable exemption, you must file an exemption claim form with your county assessor by February 15th. If you file between February 16th and December 10th, you can still qualify for a partial exemption of the lesser of $5,600 or 80% of the taxable value of your principal residence.
Q: Will I need to reapply for the homeowners’ exemption each year?
A: No. Once you have qualified for the homeowners’ exemption, you should automatically receive the exemption for each year you remain eligible. You should double-check your annual property tax bill just to be sure.
Q: Can I receive two exemptions if I own two homes?
A: No. Only your principal residence can qualify for the homeowners’ exemption. If you are receiving the exemption for a home that no longer qualifies, it is your responsibility to notify your county assessor in a timely manner that your home is no longer eligible for the exemption.
Q: Can I receive a homeowners’ exemption if I receive Homeowner Property Tax Assistance?
A: Yes. If you otherwise qualify for the homeowners’ exemption, you can receive both benefits. Homeowner Property Tax Assistance is provided to qualified homeowners based on the amount of property tax assessed and paid on their home. You may be eligible for property tax assistance if you are 62 years of age or older, blind or disabled, own and live in your own home, and meet certain household income limitations. For additional information regarding homeowner property tax assistance, contact the California Franchise Tax Board at 1-800-868-4171.
Q: My home was damaged or destroyed in a recent natural disaster. Can I still qualify for the exemption even though I am not currently living in my home?
A: Yes. Recent law changes allow you to continue receiving the exemption even if you are not presently living in your home as a result of specific natural disasters for which the Governor has declared a state of emergency. However, it is best to check with your county assessor as to whether the natural disaster that damaged or destroyed your home was included in the recent law changes.
As you can see, the homeowners’ property tax exemption can be an important and valuable benefit to qualifying homeowners. If you are unsure about whether you qualify for the exemption or if you have additional questions, please contact your county assessor.