12 Hidden Costs of Homeownership

July 29, 2010 · Rommel Yema · 3 Comments

Hi everybody! I know, it’s been awhile..but here’s an awesome article I found earlier this year that would benefit first-time home buyers especially!

-via Luke Mullins, USNews.com (April 8, 2010)

As the selling season gets underway, many Americans will be looking to take advantage of the lower real estate prices, attractive mortgage rates, and federal tax credit by purchasing a home. But remember: Not all of the costs associated with homeownership are reflected in the listed price. Indeed, many buyers — particularly first-time buyers — may be surprised by the amount of cash they’ll need to set aside for housing-related expenses that they hadn’t previously considered. These often-overlooked expenses can include everything from title insurance to lawn mowing. To give would-be home buyers a better sense of the budget they’ll need to buy and maintain a home, U.S. News spoke with a handful of real estate experts and compiled a list of 12 hidden costs of homeownership:

1. Home inspection. Since a home purchase is likely to be the largest financial investment of your life, it’s a good idea to have it professionally inspected beforehand. A home inspector can point out areas of the property that may need repairs. Buyers can use this information as leverage during home-price negotiations or simply to determine whether or not the property is worth purchasing. “It’s not required, but certainly I recommend it to buyers,” says Judy Moore of Re/Max Landmark Realtors in Lexington, Mass. “It is actually very helpful in that [buyers] learn about the property and how to maintain it and it also alerts them to any potential issues that may be coming up in the near future or need to be taken care of.” The cost of a home inspection, which can run several hundred dollars or more, is typically incurred by the buyers before they go to closing, Moore says. Read more

The Post-Credit Era

May 19, 2010 · Dean Rizzi · 3 Comments

We’ve been saying for the past month or so that we’re not particularly worried about the end of the federal homebuyers tax credits. We also weren’t particularly concerned when the Federal Reserve said it would cease purchasing mortgage-backed securities. After all, the only way to discover if a market is truly healthy and viable is to stop subsidizing it.

It’s still early to render a verdict, but so far so good. People recognize that the combination of low rates and lower home prices represent a great opportunity, while many shoppers who failed to find a home to qualify for the tax credit remain undeterred and, just as important, rational – understanding the go-go days of the early 2000s are over. And that’s a good thing. The market of that era was driven more by speculation and less by fundamentals. And though it was highly remunerative for many of us, we see how it turned out.

In housing, slow and steady wins the race, which is why we continue to advise our clients that today’s market offers good fundamentally sound deals that can be financed at good economically advantageous interest rates. Sounds like a win-win deal to us.

www.deanrizzi.com

San Mateo County Real Estate Wrap up 2009

January 20, 2010 · Nicole Machado · 2 Comments

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

A Look at the Past and a Look at the Future

December 30, 2009 · Dean Rizzi · 1 Comment

This time last year we predicted that 2009 would end a lot better than it began. We were right, though it wasn’t a great accomplishment to be right considering how low the housing market, stock market, and overall economy had sunk during the latter half of 2008. As we’ve stated repeatedly over the past year, a low base and a dour outlook provide an excellent buying opportunity, so we weren’t surprised when buyers stepped forward to exploit the opportunities.

Looking ahead to 2010, we see continued improvement in home sales and home prices. In fact, we wouldn’t be surprised if the market turns to a sellers’ market from a buyers’ market by year’s end. We are almost certain that will be the case if we see a two to three percentage point drop in the unemployment rate. Low mortgage rates and income tax credits are contributing factors in stabilizing the market, to be sure, but no factor is more important than employment in not only maintaining stability but stimulating activity. Read more

5 Advantages for Move-Up Buyers In This Market

November 13, 2009 · Adam Chinn · 3 Comments

moving up Five reasons current home owners should consider upgrading to a new home.

1. Interest rates are at historic lows: Lower interest rates means you can now buy more home then you could have a year or two ago.

2. Prices have come down: Even if your current home may be worth less than the last peak in the market, the next home you are looking for will probably be as well. The percentage decrease will actually help you get more house when buying up to a larger home.

3. There are still a good amount of homes on the market right now, both new construction and existing, giving you lots of choices and negotiating power.

4. You can move in to your new home faster, as many builders either have completed homes in inventory or they can start working right away due to the production slowdown.

5. You may have outgrown your home, but its probably someone else’s ideal starter home. With the $8,000 tax credit just recently being extended and the new $6,500 tax credit for move up buyers, now is the time to market your home to first-time home buyers.

For more information about the tax credit please visit http://www.federalhousingtaxcredit.com/

This Real Estate Blog is by Adam Chinn

Good News or Bad News?

May 23, 2009 · Jean Joh · 8 Comments

good-news-bad-news The other day, I was manning our Prudential kiosk at the Tanforan mall, and a gentleman came up to me and asked how the real estate market is doing. I enthusiastically told him that our office has become quite busy lately and that we’re seeing a lot of activity, especially among first-time home buyers. His response surprised me.

He looked somewhat downcast and said, “Oh, that’s not good…” When I probed a little further, I found that his main reasoning was that he was Read more

Is the Tax Credit Working?

April 19, 2009 · Adam Chinn · 7 Comments

new-construction I recently came across an article by the (CBIA) California Building Industry Association entitled, “New-Home Sales Still Historically Slow in February”. The title does suggest that this is indeed another sub-par month for the real estate business as well as our economy but as I read on I did find some very positive news that will hopefully bring us closer to the bright future. Positive news such as, us finally seeing the bottom of the housing declines.

I am current working with some clients who are interested in purchasing their first home in a New-Home Community. They would be Eligible for both the $10,000 New-Home Tax Credit as well as the $8,000 First Time Homebuyers Tax Credit. This of course would make a huge difference for them financially, who wouldn’t want an extra $18,000 in credit when purchasing a home?

If you would like to view the article please visit California Building Industry Association.

Highlights of the 2009 First-Time Homebuyer Tax Credit

April 16, 2009 · Annie Chang · 5 Comments

tax-credit_faq Recently, I have received many questions from prospective homebuyers about the 2009 homebuyer tax credit bill — which provides $8,000 tax credit to first-time homebuyers for the purchase of their principal residence between January 1, 2009 and December 1, 2009. I wanted to share with you a very informative FAQ (http://tinyurl.com/b8mysm)from National Association of Realtors (NAR) to address many of your questions and concerns about the details of the bill.

Here are some highlights:

You must be a “first-time” homebuyer, which is defined as someone who has not owned a home in 3 years prior to the day of your 2009 purchase.
The 2009 tax credit is refundable (i.e. IRS will send you a refund check if your tax liability is less the $8,000).
The income restriction for a full tax credit is $75,000 for individuals and $150,000 for married couples.
You may receive partial credit for income up to $95,000 for individuals and $170,000 for married couples.
The home must be your principle residence and owner-occupied.
You do not have to repayment 2009 tax credits; However, if you sell the property within 3 years of the purchase, your are required to pay back the full amount of any credit, including any refund you received from it.
You can claim your 2009 tax credit when filing your 2008 tax returns by April 15, 2009.
Close of escrow must occur on or before Dec. 1, 2009; if the property is under construction when purchased, you must occupy the home before Dec. 1, 2009.