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.

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?

Nobody knows!  That’s right, nobody really knows when the bottom will hit as far as real estate prices.  The best way to see a change or a trend is to track the data.  For example, you may want to track the data in a certain zip code of interest to you.  Look for the number of active listings vs pending vs actual closed escrows.  Keep track of the number of bank owned, REO”s, properties vs short sales vs just regular sales.  If you track this information, along with list price vs actual sales price, you will begin to see trends.  If you have them on a line graph you will see them even more clearly as the graph lines begin to change directions.  Usually a 3-6 month trend will indicate a change in the market.  So you, along with the experts, will know when the bottom hit about 3-6 months after it hit.  That is just the way it is unless you have that magic ball we all are looking for.

There seems to be a big window of opportunity for home buying in San Jose and throughout silicon valley due to the number of foreclosures.  For many future home owners that felt left on the sidelines during the real estate boom of a few years ago an opportunity to buy home has not been this good in the past 6-8 years.  The increasing  foreclosures have driven home prices downward and word has it that a second wave of foreclosures this summer will help keep prices low.  This along with historic low interest rates have made it a home buyers haven. 

Buyers, don not miss out on this opportunity to making home ownership a reality.  Speak with your Realtor and get all the information you need to be ready to get into the market and be able to get your offer accepted and close escrow on your future home.  There is no better time than to start today!

A good time to sell is when you are ready. 

The market will be the market weather you sell or not.  The focus should be on what your need s are and in what time frame you would like to meet those needs.  For example, it may be a declining market but you have a job opportunity that in the long run will benefit you and this opportunity may not come again.  Or, you may not get top dollar today if you sell but you are buying at a much lower price and your property taxes along with low interest rates will all help you get that bigger home you want at a lower monthly payment and lower down payment.  As long as the Realtor you choose gives you accurate market information to make a wise decision you will be fine.

So remember, the best time to sell is always when you are ready and not the market.