Lee Ginsburg

An Open Letter to Potential Home Buyers and Fence Sitters
January 19, 2010 · · 2 Comments

Dear Home Buyer and Fence Sitter,

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.

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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.     Read more

Lee Ginsburg

It’s Working and Working Well!!!
December 27, 2009 · · 1 Comment

You might ask, what is working and working well.  I am speaking about the $8000 Home Buying Credit.  A recent home buyer brought up the $8000 credit and told me that was the motivating factor for him and his wife purchasing a home.  The termination date creates urgency and action.  Low prices are motivating but not the cause of action. Many think they can time the market.  Good Luck to them.   People in the business think the lowest interest rates in 40 years should be creating urgency.  It certainly makes people think but low rates is all many of these young first time buyers know.  I purchased a home in 1982 at 14% interest and that was considered good.  Today’s 5% and below interest rates are like the “After Christmas Sale”.  But still does not create the urgency since many believe it will last forever.

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The $8000 federal tax credit was extended and now sounds like it will really terminate April 30, 2010.   Now that creates urgency!  OK; the credit created a home sale and that helps stabilize pricing.  Let’s not forget all the mouths a home sale feeds: the realtor, mortgage broker, title people, escrow company, termite inspector, home inspector, city tax coffers, and more.  Now let me show you all the mouths my client fed by spending his credit on: landscaping, painting, double pane windows, window coverings, furniture and more.  Others may remodel a kitchen or bath, carpet, appliances, roof, etc.  My client purchased the home from a flipper who must have put $50,000 into the home.  Add that up, and the $8000 quickly turns into over $100,000 of added income to local people. That feeds lots of mouths.  Being employed in Real Estate and related fields, as Americans and Smart business people we should be ecstatic.  I know I am. I am a believer.       Read more

Lee Ginsburg

Buyer’s Market?
July 22, 2009 · · 4 Comments

Buyer’s Market?  You bet it is.  I will be speaking about the low end of each market area. On the Peninsula and San Francisco we talk about Single Family homes priced under $700,000.  In the East Bay it is below $400,000.  Buyer’s Market yes but not in the traditional way.  Today’s buyer cannot expect to purchase a home for 20% off the list price, but they can expect to purchase a home 30-60% off of 2004 prices.  Today’s buyer cannot expect the seller to take care of all necessary repairs, but the buyer can expect to receive an $8000 Federal Tax Credit and an extra $10,000 State Tax Credit if they are purchasing a brand new home.  Today’s first time buyer cannot expect to be the only offer, but they can expect to receive the lowest interest rates in 40 years.  I think it is just in a different way.  

The Real Estate Market in San Bruno, South San Francisco, Daly City, San Mateo is hot just like the weather. Prices are based on supply and demand.  Demand is strong as all smart people want to take advantage of the buyers market.  By the way the $8000 Federal Tax Credit terminates Nov. 30 of this year.     Read more

Shokoofeh Nowbakht

My Happy First Time Home Buyers
March 22, 2009 · · 4 Comments

I went to visit my clients who just bought their first home 2 weeks ago. They had bought new dining set, living room set, and a flat screen TV over the fireplace. They were very happy and their little toddler boy had the greatest time running around the house, climbing over the couch and the dining table. He hugged me so many times and blew kisses at me. I enjoyed watching them. We were so used to meeting several times every week especially since the loan was getting approved and funded, that it was hard to say goodbye.

I’m going to miss not seeing them as often.happy-home

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