Don’t Expect Too Much From Tax Credits
We are speaking of the federal homebuyer tax credits, in particular, which seem to be invoked as the blanket explanation for anything that does or doesn’t happen in the housing market. We were more circumspect than most of their ability to sustain any market rally after being extended and embellished in November. That appears the case today. Credits are good at pushing demand forward, but not so good at sustaining demand over time.
We’ve also been circumspect over the ability of low interest rates to keep things moving forward in perpetuity. To be sure, low rates matter and low mortgage rates make more homes more affordable to more people, but it’s still a matter of taking on new debt with a home purchase or lower-cost debt with a refinance. The only way debt can be serviced is with income, usually a job.
It’s really all about employment at this point. Fortunately, the news is improving on that front based on the past three months of employment data. Things might be moving slower than we’d like, but for potential borrowers, that’s actually good news. When employment shifts into gear, interest rates are likely to follow.
So, we’ve said it before, but we’ll say it again: improving employment, low mortgage rates, and stabilizing home prices (which, by the way, we think will remain stable, even with the REO and foreclosure overhang) coupled with soon-to-expire tax credits suggest to us that now is not the time to procrastinate
From the weekly newsletter of Dean Rizzi
Visit my website at www.deanrizzi.com
Whadda Ya Mean They Said “NO”?!?!
There is a subject that’s been coming up a lot lately…the subject of Low Ball offers. It would seem many are advocates of offering a price on a house that is well below asking & what the current market will support. The thinking goes, you are showing the seller you will not be taken advantage of and you have the upper hand in negotiations. What never seems to be addressed is the notion that the seller might not be interested in playing this game and will simply say “NO”. No counter offer and negotiations officially over.
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. Read more
REOs, Short Sales, or Regular Sales?
I met a lady today at the Tanforan Mall. She says, “My husband wants to buy a house but only if it’s REO.” I asked why, she says because he believes he gets a great deal and that he can also bargain and offer less if it’s foreclosed. He believes that short sales and regular sales are not good real estate investments. She said that her husband doesn’t want to look at anything but foreclosed properties.
Is this how the public thinks? But, how about short sales? And what about those regular sales? As one of my colleagues says, “Regular sales, are really the short sales these days!” Isn’t that the fact? What, in your opinion, is a regular sale in today’s real estate market?
Shokoofeh Nowbakht
www.shokoo.com
Realtors Help Seniors
RSVP is Coming
May 3-7
Get The Word Out!
Register now at http://www.samcar.org/userfiles/file/RSVP10_homeownerAPP.pdf
WHAT IS RSVP?
RSVP is an annual week-long community outreach program that takes place in May 3-7 during “Adopt-A-Senior” Week. Realtors of San Mateo County provides free assistance to seniors who cannot otherwise perform certain household tasks due to physical or financial constraints.
FREE HOME SERVICES FOR SENIORS & THE HOMEBOUND
Washing windows, changing furnace filters, turning over mattresses, vacuuming, changing light bulbs, replacing smoke detector batteries and other similar household tasks are just a few chores that Realtors will perform.
The program is one way Realtors and Affiliates can give back to their communities.
Who is eligible? If you are a senior or homebound and live in San Bruno, South San Francisco, Daly City, Millbrae, San Mateo, Burlingame, Belmont, Foster City or anywhere in San Mateo County.
INTERESTED IN FREE HELP
Please call San Mateo County Association of Realtors at 650-696-8200 or
register now at http://www.samcar.org/userfiles/file/RSVP10_homeownerAPP.pdf
Where To Eat In San Bruno?
Ok, so I love to help people buy and sell houses but still I need to eat! I LOVE to eat and I love to cook! I love to dine out and I love family and friend gatherings at home over a large home cooked meal. Since I live and work in San Bruno, I like to dine locally. Sometimes I go to San Francisco, my hometown, but most of the time, when we have the opportunity to dine out, we go local!
A few of my favorite places are Don Pico’s for Mexican fine dining, La Paloma Taqueria, Hon Lin for Chinese, Sushi House, Famous Johnny’s for pizza and beer, Amma’s Kitchen for Indian, and the West Coast Cafe for Italian. All of these places are walking distance from my house.
Living in San Bruno is really super convenient. From my house, I can walk to the Mexican market, the dry cleaners, the library, and the corner grocery store. Not to mention I can walk to my kids’ school, our friends’ houses on Friday nights for “family fun nights”, and my office, if I am so inclined. I always drive and it’s just 6 blocks away!
I love Don Pico’s a lot! I mean a lot lot! My favorite dish is the crab enchiladas with green sauce made with “real” crab! I could live on the chips and salsa. I love spicy salsa with good flavor! I also love the ambiance at Don Pico’s. It’s a warm, comfortable room with a lot of traditional Mexican decorations and some impressive ones, too! My favorite being a big framed picture of Frida Khalo! The booths are from Original Joe’s on Powell Street in San Francisco! The proprieter is Isaac Mejia. He’s great! He is welcoming, enthusiastic about his food, and keeps his menu delicious and interesting. He’s currently the president of the San Bruno Lion’s Club. His sisters help at the restaraunt, too. They are fantastic! On Friday and Saturday nights there is a live guitar player/singer. It’s just awesome!
Check out their website: www.DonPicosBistro.com
Do you have a favorite San Bruno restaraunt?
Short Sale vs. Foreclosure – Ethical Considerations
I have recently begun thinking a lot about the ethical considerations of short sales and foreclosures. Please believe me when I say that I am completely empathetic with those people who are losing their homes because they were tricked into going for one of those terrible loans or because they have lost their job. That being said, I question the ethical decision making process in a lot of other cases. Just a couple of examples:
We hear stories all the time about people who bought second, third and fourth homes using those crazy interest only, “pay what you want, when you want to” loans. They all thought that they were going to be land barons, making big bucks on the rentals or buying the property, fixing it up and flipping it for a huge profit.
Now, the homes that they bought in Fresno, Sacramento, Lodi….heck, all over the country… are no longer worth what they paid for them and, because of the economy, they can no longer require the high rents they were getting in the beginning. In many cases, the owners can still afford to make the payments, but now don’t want to because they feel the value is not there, so they simply walk away from the properties. That seems wrong to me. Read more
What Does Zillow Tell You About Your Home?
Ever since the launch of its website in 2006, Zillowhas increasingly gained its popularity as a convenient tool to look up home values. When I work with prospective buyers or sellers to explain the market value of their homes, I often hear the famous line “but Zillow says…!” followed by “so how accurate is the Zestimate?”
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
San Mateo County Real Estate Wrap up 2009
Below is a chart that compares the San Mateo County Real Estate Market in 2009 to the San Mateo County Real Estate Market in 2008. As you will see the results are comofrting and shed some positive light on what is to come in 2010. Although interest rates are scheduled to rise as early as this Spring and foreclosures loom in the back ground, as long as inventory stays slow and steady the market should remain on a positive steady but upward incline. Now is a great time to take advantage of the low interest rates and tax credits that are currently provided. Please click on the thumbnail below for a full picture.
Nicole Machado- Prudential California Real Estate
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