Recently, they decided to go ahead with just the kitchen and bathroom remodel. Apparently, a neighbor called the city which resulted with a stop work notice even though the previous plans were approved, the application expires a year from the approval date. 

 I attended the meeting with the code enforcement officer, who met the homeowner, and I was pleased on how he interacted with them.  It is a very intimating to have a stop notice on your door, and a city official in your home scrutinizing all the work that is in process.  Even though they were in violation, the officer went thru the house, and told them what they needed to do to get back on track.    The good thing is that most of the work (wiring, plumbing) was exposed, and they do not need to rip out any cabinets and walls.

 They still need to come in with new drawings, etc, and there will be added costs, yet in the long run, with approved permits, they have the peace of mind that everything is up to code and documented correctly. The inspector had mentioned that there are many homes that are in escrow and have been delayed or fallen apart due to nonconforming issues.

 Before you start a project, make sure you check with your local building department.  If you are getting ready to sell your home, you may want to make sure that you house is in order and that permits are on file.  If you are purchasing a property, you may want to check with your agent if there are nonconforming issues.  They should be able to help you check for the necessary permits. 

Terry Birt
Prudential California Realty
www.TerryBirt.com

 If a seller wants to sell and a buyer wants to buy then there is no reason a deal can’t be worked out.  This is predicated on the idea that both parties are going into this with a willingness to negotiate in good faith.  Writing under asking is not a bad idea, writing a reasonable offer below the asking says to the seller “I like your house and want to buy it, we just have a difference in opinion of value.”  A low ball offers sends a different message.      Like it or not, the seller may see your low offer as an insult based on the idea that you think they are an idiot who doesn’t recognize the value of their asset.  It says, “I’ll throw something out there and see if anything sticks.” It does not say, “I’m committed to getting this deal done from start to finish.” 

I witnessed buyers missing out first hand with a listing currently on the market.  The first buyer wrote an offer below asking, that the seller accepted as is.  It was below what she wanted, as well as the comparables, but the she liked the other terms.  Upon hearing the offer was accepted, the buyer backed out.  A week later the same buyer wrote another offer but even further below his original price.  He felt he had not negotiated well as the seller accepted the first offer.  At this point, she felt he was not negotiating in good faith and was trying to take advantage of her.  He refused to budge and the deal did not happen although he really wanted the house.  The seller just couldn’t take him seriously.

 In the second case, an offer came in even lower.  I was open with the agent about other interested parties and was going to let them know if they wanted in, they needed to write an offer immediately.  Another, much better offer arrived.  The seller decided to outright reject the first low offer.  She didn’t feel it was close to fair and not worth bothering with.  This was much to the dismay of the agent.  She kept repeating “I told you to counter!!”  My response, “Nothing says the seller has to!”  There are 3 answers on the table for the seller, an outright “yes”, they can counter, and again, they can just say “NO!”   

If finding a house with a distressed seller, that is willing to let the property go for a song, is what you are looking for, then by all means, go in low.  If however, you really want the house, you will have much better results if you go in with the attitude of co-operation and fairness.

Shokoofeh Nowbakht
www.shokoo.com

Thanks to Zillow for providing a detailed video of “A Guide to the Zestimate” to explain how the home values are generated. I hope you will find this video helpful!

Posted by Annie W. Chang | www.TalkofRealEstate.com

The takeaway from Carson and Dastrup’s research is that the farther prices ran up in a hot market, the farther they tend to run down in the subsequent cooling. Not surprisingly, the hottest markets – Las Vegas , Riverside , Miami and Sacramento – have fallen the farthest and cooled the fastest. Many of these markets are now as cold as an Arctic winter, particularly Las Vegas , where home prices have dropped 50% and more.

However, cold markets often provide the best buying opportunity. Consider Las Vegas : a home that cost $200,000 in 2007 and lost 50% of its value costs $100,000 today. A 50% gain pushes its value up to $150,000. In other words, prices do not have to appreciate back to their peaks for people to book considerable equity or an investment gain. This simple math is worth repeating to homebuyers and residential real estate investors, especially to those residing in or near frigid markets.

www.deanrizzi.com

Shokoofeh Nowbakht, Realtor
Prudential California Realty
www.shokoo.com

Nicole Machado- Prudential California Real Estate

The window of opportunity is closing. Let me explain my thoughts. Prices in the Bay Area are already inching up, same with interest rates. The time to receive the Federal Tax Credit of $8000 or $6500 is rapidly approaching. (Must be in contract by April 30, 2010) FHA is talking about increasing the minimum required down payment and or increasing the cost of required mortgage insurance.

You can purchase a home today and your costs will be fixed for the next 30 years. What else can you buy and maintain the same cost for the next 30 years? Rents will continually go up. You are at the Landlords mercy. It is time to get off the fence. The first step is to get pre-approved. This will tell you what the bank will loan you. There are many loan programs out there. I could refer you to someone if you would like. The pre-approval process is easy, is no cost and with no obligation. If you don’t do it now you will never know.

You do not need a large down payment. You can purchase a home with only 3.5%. Yes you need mortgage insurance. I don’t like mortgage insurance but if that is the only way to own a home, then go for it. Mortgage insurance will go away once you have 20% equity. Economists think values will increase substantially in the next 3-5 years and that will more than make up for the mortgage insurance. Some people tell me they want to save for a larger down payment. That bothers me because from my experience most people cannot save as much as prices increase.    

Some people tell me they do not like the home they qualify for so they want to wait until their income increases to get qualified for a larger home. My response is; your first home is not necessarily your dream home. Most Americans move every 7 years. Get into something now. Hold it for a few years, make some money and then move into your dream home. Read my blog http://www.pruvoices.com/2009/09/is-a-condo-the-right-choice/

Also, mortgage insurance, mortgage interest and property tax are all deductible on your income tax. That will save you approximately 20-30% of the payments. Check with your tax preparer for your individual situation.

I am concerned that some people whom do not take advantage today’s market may never be able to purchase a home again. They may not qualify if rates go up or may not qualify for what they want if prices go up. If interest rates increase just 1% you will need an annual income increase of $8000 to qualify for a $500,000 home. If that $500,000 home increases just 5% and interest rates remain the same you will need an income increase of $3600.

I believe home ownership is the first step to financial freedom. It is forced savings. You build up equity. If you look at most of the wealthy people in this country and around the world real estate is the asset that attributed to their wealth. Home ownership may not be for you but if you don’t look into it you will never know. Today’s market with both record low interest rates and low prices at the same time is quite unusual. They generally work in opposites. This is a blue moon, once in a lifetime opportunity. If you want to take advantage of today’s opportunity please call me for a free consultation to discuss your options, the market, and the process. I would love to help you so please contact me lee@leesellsmore.com or your favorite Realtor now. Don’t put it off any longer.

Sincerely,

Lee Ginsburg CRS, SRES DRE# 01391378