Real Estate Information

Every year thousands of homeowners relocate to another city or state for new jobs, educational opportunities or other reasons both personal and professional. If you are planning to relocate, planning ahead is your best stategy for a less stressful and successful move. 

Purchasing a new home in an unfamiliar area can be difficult and you don't want to make a home buying mistake or buy in the wrong neighborhood. Below are a few tips to help you make the right decisions.

Start your research online by searching for information on the city, coupled with information or housing. Check out the websites of the local Chamber of Commerce, the major newspaper for the city, the local police department's Web site to check crime stats.

Locate a real estate agent in the area. Agents can be a wealth of information and can help you with your search. Many agents tend to specialize in neighborhoods and can assist you.

Work on a moving budget. Relocating to a new city can be expensive, the further you have to move the more it will cost. Start your research by investigating different moving companies and how they charge for their services. Check out this website, that will help to give you quotes for moving based on different specifications.

Tax season is in full swing and while tax time is dreaded by many, homeowners are typically able to deduct many home-related expenses. Below are a few of the deductions that are typically available for homeowners.Because there are many different tax laws it is a good idea to check with a qualified tax advisor to find out which deductions apply to you.

First-time homebuyer credit.  A $7,500 tax credit is available to eligible taxpayers must have bought, buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return. and before July 1, 2009.  You are considered a first-time home buyer as long as you did not own a home during the three years leading up to the purchase of your new home.

Moving expenses. If a move is connected with taking a new job that is at least 50 miles farther from your old home than your old job was, you can deduct travel and lodging expenses for you and your family and the cost of moving your household goods.

Deducting Loan Points Paid on a Purchase or Refinance. The points you pay on a loan for a home purchase are tax-deductible for the year you made the purchase. You can deduct the points you paid as well as those a seller paid on your behalf if you meet the following criteria:

•   The loan is secured by your primary residence
•   The loan was used to buy, improve or build the home
•   Paying points is a common practice in your geographic area
•   The points are calculated as a percentage of the loan principal

Deducting Real Estate Taxes. Real estate taxes are deductible in the year paid. They are generally reported on Form 1098, Mortgage Interest Statement, the annual statement from the financial institution holding your mortgage, or on your county real estate tax assessment statement. You should also deduct any prorated taxes collected from you at closing. These amounts are not always included on Form 1098, but may be itemized on your real estate closing statement.

The Federal Reserve is facing a difficult but necessary transition from activist investor to pulling back its involvement and allowing higher short-term rates when the economy can stand on its own.

Last week the Federal Reserve took a small step toward reducing its involvement by raising the discount rate by .25% (The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility). The Fed did recently indicate that the move might be coming, yet the timing of their announcement was surprising to many.

At the start of the credit crunch in mid 2007, nearly one-third of the U.S. lending mechanism was frozen. To increase their liquidity, banks had the option to access the Discount Window at the Federal Reserve (Federal Reserve Banks offer three discount window programs to depository institutions: primary credit, secondary credit, and seasonal credit, each with its own interest rate. All discount window loans are fully secured.) However, because costs for these funds were high AND repayment had to be done within 28 days, most lenders were unable to utilize this option. As a result, the Fed held an emergency meeting, lowered the Discount Rate and extended the repayment period to 90 days. These changes made the Discount Window option a viable solution for lenders and helped curtail the severity of the mortgage meltdown. Last week's announcement reverses those emergency measures.

When making this change, the Fed noted that the continual improvement in financial market conditions gave them the foundation for this move. The Fed also said that they do not anticipate this raise to lead to tighter financial conditions for households or businesses nor does this move indicate any change in their outlook for the economy or for monetary policy.

However, as the Fed makes changes, the government backs out of Mortgage Backed Securities (MBS) purchases and slows down stimulus programs, we continue to assess economic growth and inflation concerns.

With that in mind, one of the most popular measures of inflation within the U.S. is the Consumer Price Index (CPI). The CPI measures the estimated average price of consumer goods and services purchased by households. This index rose by 0.2% for January, less than the 0.3% expected. With the publishing of the January results, the year-over-year CPI is at 2.6%, below expectations of 2.8%. The more closely watched Core CPI (which strips out food and energy costs), actually fell by 0.1%, below expectations of a 0.1% rise. The last time Core CPI showed a negative monthly reading was 28 years ago. This helped to drop the year-over-year Core CPI rate to 1.6%, a bit below expectations of a 1.8% rise.

These results show that, for the time being, inflation is a non issue. However, it will likely become a factor in the next year or two. And, the best hedge for inflation is to fix as many costs at today's prices as you can. A home purchase today with a historically low mortgage rate allows buyers to fix the price of their home and the associated financing costs. We will continue to keep an eye on this index and other economic indicators.

Please call me to discuss specific situations or to review what actions to be in to meet both lifestyle and financial goals.

Andy Block - Mortgage Advisor & Financial Advisor
Opes Advisors
Email Me
Direct: 650.931.0605
Fax: 650.931.0601

License #01096311
400 S. El Camino Real
Suite 250
San Mateo, CA 94402
Fax 650.931.0601

Opes Advisors is licensed as a registered investment advisor with the Securities and Exchange Commission (SEC) and is licensed as a Residential Mortgage Lender by the CA Dept of Real Estate.

Author and Business are endorsed by Samia Realty Group
Move2CA - our website
San Francisco Bay Area Home Search  - find San Francisco Bay Area properties for sale
What’s Your San Mateo - San Francisco Bay Area Home Worth? - get current market information for your San Francisco Bay Area home

If you are planning on purchasing a new home or even refinancing your home you may find all the options for financing confusing. Every year, misinformed homebuyers, often first-time purchasers or seniors, become victims of predatory lending or loan fraud. Even if you have been thru the loan process before it can be easy to fall victim to a loan scam. While most lenders are professional and legitimate, there are predatory lenders who are willing to take advantage if you are not a smart consumer.  Unfortunately with the current economomic status and the availability of loans more difficult, loan scams are on the rise.  Below are some tips to help you from being a victim.

Avoid Being A Victim

• Shop for a lender and compare costs. Be suspicious if anyone tries to steer you to just one lender.
• Avoid Unsolicited phone calls. Be wary of any phone call offering remarkably low interest rates on loans, especially if you have registered your phone number with the Do Not Call Registry. Most major nationwide lenders do not solicit business over the phone. Never give out personal information over the phone unless you are absolutely sure who you are speaking with.
• Be informed. Research and get information about the prices of other homes in the neighborhood. Don't be fooled into paying too much.
• Shop for a lender and compare costs. Be suspicious if anyone tries to steer you to just one lender.
• Never sign a blank document or a document containing blanks. If information is inserted by someone else after you have signed, you may still be bound to the terms of the contract. Insert "N/A" (i.e., not applicable) or cross through any blanks. If the terms aren't what you'd agreed on, do not sign the document.
• Avoid bad credit mortgage rates when looking for a loan.
• Many loan scammers use high pressure sales tactics, so if you feel pressured or uncomfortable in anyway, never sign anything. It is a good idea to contact a real estate lawyer if in doubt to review the documents. If the company is legit, they should have no objection to a lawyer looking over the loan agreements before you will sign them.

Warning Signs

• Do business with reputable companies, stay away from unsolicited calls, e-mails or letters offering you a loan.
• Never do business with anyone who asks for money to be sent in advance to cover "processing", "application", "insurance", or the "first month's payment". Legitimate lenders never ask for these things to be paid before a loan is disbursed.
• Requests that you "wire" or "send" money, as soon as possible to a large U.S. city or to another country, such as Canada, England, or Nigeria, by Western Union, Moneygram, or similar means.

What To Do If You Think You Have Been Scammed?

If you feel that you have been scammed or the company you have been in touch with is suspicious, contact the below agencies.

• The FTC
• The FBI
• File fraud alerts with each of the three credit bureaus. This is important if you have provided the scammers with your sensitive information, such as your Social Security Number and information on your driver's license. They can use this to obtain credit in your name.

For more tips to help you be an educated consumer and to avoid loan scams, visit the US HUD website for more information

The current buyers market is perfect for purchasing a home. With historically low interest rates, first time homebuyer credits and low home prices, many potential homebuyers are making the leap into homeownership.  Purchasing a home is a big step, so how do you know if you are ready to take that leap and become a homeowner? Below are some things that you can consider when making the decision

• If you maintain a budget and are able to stick to it. If you have your finances in order that is the major first step. Becoming a homeowner, especially in a difficult economy can be financially challenging. If you have created a budget and stick with it you are on the right path. Having good money-management skills are a must-have so that when you do own a home you will be able to have a smooth financial flow for monthly home expenses.
• If you have a sizable down payment of at least 20%, you are on the right path. While this is a large amount of money to come up with it is important to have as you will start out with having some equity. There are options out there for zero or low money down loans but if you have to sell your home before you expect you can potentially loose money and you will also need to pay for PMI (priviate mortage insurance).
• It is important to have a steady source of income. Of course in a recession there is no real thing as job security but when you buy a home you are going to be required to have a reliable source of income to cover not only mortgage payments but all the other monthly and unexpected expenses that come along with homeownership. It is important to look at how stable your source of income is as well as having an emergency savings fund where you will have enough funds to cover these expense in case of a loss of a job or other emergency.
• Your debt and credit are clean. Having a good credit score will help to not only get a home loan but will also get you a lower interest rate on your mortgage. Hold off on any large purchases such as cars before applying for a loan as this could effect your rating. Also review your credit report for free at annualcreditreport.com before even applying for the loan to check for any errors.
• You are ready for the responsibility. In addition to the financial aspect of homeownership, you need to be sure you are ready for the other things that come along. Things like lawn care, upkeep as well as unexpected repairs need to be considered as part of owing a home. 

Interview with Samia Morgan regarding Short Sales

A new set of changes have been announced from The Federal Housing Administration (FHA) in regards to their home loan program. These new changes are aimed to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The agency hopes that these changes will help the FHA in a better position to manage its risk while continuing to support the nation’s housing market recovery.

Habitat Enhancements

Nancy Linebarier
Stager/Designer

Maximizing Your Home’s Sales Potential Through Staging

In today’s challenging market conditions, most Real Estate professionals and savvy sellers recognize the importance of Staging and properly preparing a property for sale.

In order to maximize your homes sales potential there are several very important things for you to consider:

Whether you are selling a $300,000 starter home or a $3,000,000 executive estate it is critical that your home captures the interest of your targeted market One of the most important things to accomplish this is for your buying demographic to see your property in the best possible light

• Staged homes will generally command top dollar
• Staging of your home highlights the more positive and sought after aspects of a home and softens and diverts attention from the less desirable aspects
• Staged homes will generally sell faster and spend fewer days on the market .
• Staged homes increase the likelihood of generating multiple offers even in today’s challenging market conditions.

Remember; “You only have one chance to make a good first impression”.

In follow up articles I will go into detail on how to implement a successful stage.

Nancy Linebarier
Interior Designer and Stager
Feng Shui Consultant
Habitat Enhancements
Email Me 

Author and Business are endorsed by Samia Realty Group
Move2CA - our website
San Francisco Bay Area Home Search  - find San Francisco Bay Area properties for sale
What’s Your San Mateo - San Francisco Bay Area Home Worth? - get current market information for your San Francisco Bay Area home

Andy Block of Opes Advisors is welcomed as a contributor to Samia Realty Group Blog for San Mateo County and the Bay Area.

Opes Advisors is licensed as a registered investment advisor with the Securities and Exchange Commission (SEC) and is licensed as a Residential Mortgage Lender by the CA Dept of Real Estate.

Author and Business are endorsed by Samia Realty Group
Move2CA - our website
San Francisco Bay Area Home Search  - find San Francisco Bay Area properties for sale
What’s Your San Mateo - San Francisco Bay Area Home Worth? - get current market information for your San Francisco Bay Area home

Being a homeowner comes with many expenses, one large one being property taxes. There are some ways you can your property tax bill, one being a propery reassessment.

Property taxes are typically calculated based on an official assessment of your home’s value. Because the value of many home's have dropped in the last few years, you can challenge what the value of your home is currently valued at and thus reduce your tax by hundreds of dollars. Even before you seek an assessment, it is a good idea to check your records to make sure there are no mistakes. Simple typos and incorrect information can cause homeowners to be.

With the current economic crisis, many counties are raising property taxes in an attempt to balance their fiscal budgets and reduce their deficits. According to a survey by the National Association of Counties, a group that represents county governments.property taxes, about 18% of counties whose fiscal year begins between January and June increased property taxes to address revenue shortfalls.

Whether you are planning to sell your home in the near future or are planning to stay for a few more years, it is worth trying to get a reassessment. Keep in mind that if you can reduce your taxes, it will be a great selling tool.