David Verbera's Blog

The other day I was holding an open house for sale and welcoming the guests.  As I have done for many years I always like to ask a series of questions to find out first if it is a serious buyer or seller and second to see if they understand the process of  how a realtor helps and if they are currently working with a realtor.

Most buyers answer that they are working with a realtor, great news.  What is surprising is that most don’t understand the process and that is the lack of our industry sitting down and educating the client as to what the protocal is for having a realtor represent a buyer and assist them in the proocess.  The is an edicate in the real estate industry that needs to be communicated at the first meeting with the buyer.  So for all you buyers that this information has not been passed on here is some basics.

Your realtor should be your exclusive agent to help you in locating homes, previewing homes if market time allows, and set up all showings appointments as well as accompany you at all times when seeing homes.  Too often I hear ” I don’t want to bother my realtor so that is why I am looking on my own”.  Guess what, that is why the realtor gets paid the big bucks-to show you homes based on what you have told your realtor of your needs.  If your realtor has given you the impression that you are bothering  them then you may want to find a realtor that has time to invest in one of  life’s biggest investments, buying a home.  Besides, a busy realtor has a team to help with the other details of our job so that the realtor can focus on the client’s real estate needs and showing them homes.  Can you imagine if a realtor just sat at the office and buyers just showed up on the day they want to make an offer and got paid .  I think the real estate industry would be flooded with people wanting an easy dollar.  Don’t get the wrong impession, realtors do earn thier keep.

Next is the phrase I hear quite often and that is, “I’m working with my relator but I want you to show me homes”.  I then follow up with the qualifing question of  “If I show you this home  and you want to buy it will you allow me to represent you and write up the offer?”  9 out of 10 buyers say they would have thier own agent write it up.  Proper real estate edicate is that if you are interested in seeing a home  call your realtor, isn’t that why you hired them.  You have to remember that realtor’s  time is valuable and they can better serve thier clients than someone who they just met and know nothing about thier needs.  Build your real estate relationship with your realtor by using them and asking questions along the process.

  Your realtor has to care and have the desire to help reach your real estate needs and you have to be respectful and loyal to your realtor for all the time and work they are spending and doing for you before they ever see a dollar.  Realtors need to explain the procedures to thier clients.  The more your realtor talks with you and shows you home, the more they will understand your true needs and be able to show you what you really want and can afford.  Save yourself time and heartache and call your realtor, they are there to take care of your real estate needs once you commit to eachother.  Make sure you understand the process as this will help with realtors better representing thier clients and not stepping on fellow realtor toes. You will get the most out of the home buying experience.  Happy buying!

Finally, spring is hear and the sun is shining on the spring real estate market!  The Santa Clara Valley is in the best time of the year for sellers thinking of selling to get off thier seats and have thier local Realtor put thier home on the market.

Image via Wikipedia

Why now?  Well, first many people get that feeling of a new beginning as spring settles in and the trees and flowers are blooming and popping out the new leaves.  We seem to get an itch to make a change and break out of the same routine we have been in all winter.  Tax time is here and many people will get the tax advise to get into a home and take advantage of the benefits  home-ownership provides.  Buyers come out of the woodwork and begin their hunt for their new beginnings and with the longer and warmer days we couldn’t ask for a better time to market homes for sale.  Statistics show that in a flat market the best time of the year to have the best probability of a solid price in a short amount of time will be in April, May and June.  Once school is out for summer vacations the focus becomes more on vacations and how to keep busy and most homeowners enjoy already being settled in their home so they can have those summertime parties and gatherings.

So if you are one of those sellers thinking about selling, call your local Realtor TODAY.

Wow, what a year we have had. It really has been a roller coaster ride for real estate. We began the year with a very slow sellers market. Prices were dropping and homes just sitting on the market and buyers were getting amazing home buys. By the time June came around we saw multiple offers and all cash began to be the norm in some of our markets. We also saw interest rates drop to a 50 year low down in the low 4% range. By November we saw inventory of homes available for sale drop below average, an increase in the number of sales and more motivated and happy sellers. Bank owned properties in the high end market began to appear and short sales began to actually close and with quicker turn around times than we had seen in the previous two years.  By the end of December we saw rates begin to slowly climb in order to keep inflation in check and the market becoming a more stable environment.

The good news is that we have all found a way to survive this ride and we should see a payoff of this emotional trek we have been on  in 2010. Happy New Year’s and hope 2010 will be one filled with peace and prosperity!

If you would like more specific information please feel free to email or call me and I will be more than happy to provide that to you.

RISMEDIA, November 6, 2009—President Barack Obama has approved the first-time homebuyer tax credit extension which will extend the tax credit until April 30, 2010.

The extension is part of a $24 billion economic stimulus bill that will extend the $8,000 tax credit for homebuyers who are purchasing their first home from the current November 30 deadline and expands the program to offer a credit of $6,500 to homeowners who have lived in their current home for at least five years and are seeking to relocate.

The following details apply to the homebuyer tax credit expansion:

Who is Eligible
-First-time homebuyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit.
-Existing homeowners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for up to a $6,500 tax credit.
-All U.S. citizens who file taxes are eligible to participate in the program.

Income Limits
Homebuyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.
-For married couples filing a joint return, the combined income limit is $225,000.
-Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
-The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000.

Effective Dates
-The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.

Types of Homes that Qualify
-All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.

Tax Credit is Refundable
-A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.
-For example:
-A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time homebuyer tax credit).
-A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit).
-All qualified homebuyers can take the tax credit on their 2009 or 2010 income tax return.

Payback Provisions
The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

The www.federalhousingtaxcredit.com site is being updated. Check the site next week for more detailed information on the new tax credit.

For more information, visit www.nahb.org.

Below is the latest information regarding the first-time home buyers tax credit:

“WASHINGTON (AP) — Senators agreed Wednesday to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers.

The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November. The Commerce Department said Wednesday that new home sales fell 3.6 percent in September, and some industry representatives blamed uncertainty about the tax credit.

Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev.

The tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, according to a summary of the legislation being circulated among lawmakers.”

Please feel free to comment on the above article. I’d love to hear what first buyers or soon to be buyers are thingkng about the credit.

Qualifying for a mortgage under current lender standards is more difficult nowadays than in years past.  Beginning Nov. 1 or Dec. 12, depending on the type of loan, Fannie Mae is tightening its lending standards to the 620 credit score benchmark—including loans backed by the Federal Housing Administration and Veterans Affairs.  Borrowers with credit scores of less than 620 will find it very difficult to qualify for a mortgage.   However, to qualify for the best rates, consumers generally need credit scores of 720 and must have verifiable, steady income.

 As for loan type, most real estate professionals agree that a fixed-rate mortgage is the best choice for buyers and refinancers.

Today’s question is focused on your needs.  Too often Realtor just focus on what they think thier client wants or needs instead of listing to thier client.  Today’s question gives you the opportunity to really state what it is that you want from a Realtor.  Don’t be shy.  You need to be heard so I invite you to please comment on today’s question of the week.

That is a very good question that many buyers are having in our current market.  There are three main reasons; price, terms and paper work & process.  We have to remember that when dealing with REOs, bank owned  properties, we are dealing with an asset manager who will make decisions based on guidelines and policies not emotions.  Let’s address these three categories that if done properly by buyer and Realtor will get offers accepted in most cases.

First is price.  Currently many REOs are being price just below the market value range of a property in order to create the activity needed to produce multiple offer and obtain the highest possible price for the owner.  Your Realtor should be able to give you a market value range so that you know what you are willing to pay for that property.  Just because it is an REO doesn’t mean it will sell for less, more likely it will sell higher than asking price if there are multiple offers.   If you really want the home put your best price and make sure you will qualify and/or have the cash to close.

Second is terms.  Terms under what circumstances are you willing to buy the property.  This can be the amount of cash down and financing needed, all cash, as-is, how quickly you will  remove any contingencies and close escrow.  You have to be able to perform on the terms in the contract and the easier the terms the better for the owner.  Know how much you can qualify for, will the lender accept and as-is purchase for the loan they will give you, what repairs will they require for the property to qualify.  If all cash you should be able to provide evidence of money to close and even if it is not all cash this will be a requirement.  Make sure your terms are not only acceptable to you but very likely acceptable to the owner as well.  Keep it simple and the less you ask of the owner the better.

Third is the paper work and process.  If yo have the first two solid and this one weak, your offer will not get accepted.  This part is where an experienced Realtor  is so important to have in your representation of buying any home.  Your Realtor should inform you on how many offers there are, when is the deadline to have an offer in, how long the response time should be, what paper work will need to be included with your offer and what will be the process for presenting your offer.  Your Realtor should follow up to confirm you offer has been received and when it will presented and communicate all information to you immediately.

If you do all of the above you should have a strong edge in getting your offer accepted.  Put you best foot forward when making your offer.

If you have any comments, opinions or questions I’d love to hear from you.

The other evening I decided to enjoy a nice family walk in Downtown Campbell.  As we walked and enjoyed the lovely summer evening we began to to get hungry.  We saw this quaint restaurant and decided to go give it a try.  We were pleasantly greeted and escorted to a table where we sat and looked over the menu.  The selection of dishes are inspired by the  mediterranean cuisine.  The waiter took our orders.  Well let me tell you, this was a meal that we will not forget for a long while.  Everything we ordered tasted fresh, delicious and just mouth watering.  The portions where just right, except for my son who took some of his order home.  The desserts a work of art in appearance and to die for in taste.  I highly recommend Olio to anyone who enjoys good food in a wonderful setting.  Prices are moderate so you don’t have to break the bank.  By the way, they have an excellent wine collection as well.  They are located in Downtown Campbell at 384 E. Campbell Ave., Campbell, CA 95008  408-378-0335 so if you are in the area stop on by or call if you prefer to make a reservation.  Please let us know how  your enjoyed your visit there.

I read this article today and wanted to share it with everyone.  It comes from an online leading real estate news publication:

Friday, June 12, 2009

Definite signs of a false recovery
Interest rates stabilized at the conclusion of $65 billion in new Treasury borrowing this week, mostly by sales of long-term bonds.“Stability” is a relative term: All long-term rates have risen roughly 1 percent in just six weeks, and a further run-up will undercut any economic recovery. The question is whether current prospects for recovery justify this rate-surge, or is this surge already unsustainable? If the latter, what’s the chance for a reversal, especially in mortgages? More »  http://www.inman.com/buyers-sellers/columnists/loubarnes/definite-signs-a-false-recovery 

What’s your opinion?