Realty World Tri-Shasta

Distressed properties are foreclosed homes or homes in a Short Sale situation. We have both available in the Shasta County real estate market. Here are some tips to help buyers who are looking to purchase a distressed property.

1. Have the money before you shop.
2. Be mentally prepared for delays, aggravations, and red tape.
3. No contingencies.
4. Flexibility as to the condition of the property.
5. Be prepared to make an offer.
6. Motivation rules the day.
7. Buy at the bottom of the market.
8. Quick settlement.
9. Inspections.
10. Examination of title.

Here is some great news for those of you who are buying real estate here in Shasta County. The U.S. Senate, on Wednesday, approved the extension of the tax credit for homebuyers.

An amendment was added to the $140 billion tax bill that renews a series of tax credits – continues federal programs such as the jobless benefits and flood insurance program, boosts fiscal aid to states and averts reductions in payments to doctors who treat Medicare patients.

As is already known, this tax credit provided buyers up to $8,000 for first-time homebuyers and up to $6,500 for those who are looking for buy another home as their primary residence. Under this new amendment the purchase contract still had to have been entered into by April 30 to qualify but buyers now have till September 30 to close the transaction.

• It is estimated that the average cost of handling a foreclosure for the financial institutions is right around $50,000.
• REO properties sell for more than comparable Short Sale properties because of the cost incurred by the financial institution in acquiring the property.
• Disclaimers on REO properties are not available from the lender because they cannot represent the condition of the property or neighborhood information.
• The average REO listing is for 90-days, this is based on a national average not the Shasta County real estate market.
• Most REO properties are sold in “As Is” condition.
• REO purchases are less of a risk than buying at a foreclosure auction, but contain considerably more risk than a Short Sale.
• REO properties can usually be purchased faster with less problems than a Short Sale.
• REO properties are usually priced to sell. Making ridiculously low offers is a waste of time and may not elecit a counter offer.

House hunting can be a very stressful task, especially if you are unsure of what you are looking for. The first step is to figure out what you qualify for (if you are not planning on paying cash for the transaction), the second step is to simply shop around.

To gain a better understanding of what you are looking for view as many homes as possible within your price range. There are many great homes out there for a great price, especially here in Shasta County. Have your agent show you homes or check your local newspaper for open houses and attend those on your own. By viewing homes you will gain a better understanding of what you are looking for.

When viewing homes bring along paper and pen. While walking through the homes take notes on what you like the most about that home, what was simply ok but livable, and what you disliked. Later on when you go over those notes you will start to get the picture of the certain features you are looking for in your home.

It is important to remember that no piece of real estate is perfect and no two are exactly the same. Do not be overly picky, but do focus on the one feature you find the most desirable and important to you and go from there. This will also make it easier for your agent to find homes to show you.

The most important thing to remember when viewing homes is simply feel. How do you feel upon first walking through the door? Can you see yourself living here comfortably for the next several years? If you are able to answer those two questions with an affirmative then it may be possible – just possible – that you have found the home you are looking for.

Following is an article posted by Susanne in the Home Buying 101, Real Estate, Today’s Market Place. This will be one of my longer posts, but for all of you  buyers here in Shasta County, looking to purchase a piece of real estate, this is some important information regarding the first-time home buyers credit that is available to you.

On November 6, 2009 President Obama signed into law an expansion and extension of the home buyer tax credit.

The credit is available for homes purchased on or after November 7, 2009 and before May 1, 2010. The federal income credit can be claimed on one’s individual or joint tax return for the purchase of any singly-family home (newly constructed or resale, single-family detached, town homes or condominiums) between the dates of November 7, 2009 and April 30, 2010. Home purchases subject to a binding sales contract signed before May 1, 2010 will also qualify for the tax credit as long as closing occurs by June 30, 2010.

The tax credit is now available for first-time home buyers and eligible current homeowners. A first-time home buyer is defined as an individual who has not owned a principal residence during the three-year period prior to the purchase. This law applies for both parties in a married couple; if you haven’t owned a home for three years, but your husband has, then neither one of you can qualify for the tax credit. A qualified current homeowner who wishes to move to a different home (a “move-up” buyer), must have owned and resided in their residence for five consecutive years out of the last eight.

Under the legislation, the income limits to qualify are the same for both first-time home buyers and current homeowners: Single taxpayers with income up to $125,000 and married couples with a joint income up to $225,000 qualify for the full tax credit. These income limits make almost all first-time home buyers eligible and approximately 70% of current homeowners eligible. Single taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive partial credit.

The maximum credit amount for first-time home buyers is $8,000; the maximum credit amount for current homeowners is $6,500. The federal tax credit amounts to 10% of the cost of the home, up to a maximum credit of $8,000 for first-time home buyers and $6,500 for current homeowners. Under the new legislation, a tax credit may only be issued for homes purchased for $800,000 or less.

Provided the home-owner stays in the home for three or more years, the tax credit is a true credit and does not need to be repaid. The tax credit is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if you own no tax or the credit is more than the tax owned. The credit is claimed using Form 5405, which you file with your original or amended tax return. Buyers can claim the credit on their 2009 taxes, even if the home is purchased in 2010, by filing amended tax return.

The current tax credit legislation has built-in fraud measures, therefore, anyone claiming the credit must provide documentation to prove that the sale has closed, such as a copy of their HUD-1 Settlement Statement. The law also prevents anyone younger than 18 from claiming the credit.

Well Shasta County, here is another charming real estate joke I have found. Hope you enjoy.

Best Deal In TOWN

One Sunday afternoon a couple sees an ad in the paper. They can’t believe their eyes. There is a house in the paper for $1000 that is in the nicest part of town. We are talking about a Highland Park mansion for $1000. They think this has to be a misprint, but decide to call anyway.
They say to lady who answers we saw your ad, and realize it is a misprint correct. She tells them no it’s not & you are actually the first ones to call.
They decide to go look at the house. They race over as fast as they can. They pull up to the most beautiful house on the block. In front of the house is a fountain that cost at least $30,000. They ring the door bell & the lady answers. She starts showing them the house. They realize this house is over 5000 sq ft and it is obvious that expense was not a problem in building this house. The house had marble imported from Italy & a chandelier imported from France. The landscaping was breath taking & the house had a great pool & a nice tennis court.
The couple said to the lady this is the most beautiful house we have ever seen, what’s the catch? The lady assured the couple there was no catch. The couple wanted the house for $1,000 but was leery of doing the deal. Finally the lady said you seem like a nice couple, so I’ll let you know the truth.
She told them this house is completely paid for, and not a penny is owed against it. Well, last week I got a call from my Husband. He informed me he is leaving me for his secretary. He then told me I could have everything we own as long as he could have the proceeds off the sale of the house. I agreed and he asked me if I could sell the house while he & his new girlfriend hung out in the Caribbean?
HOUSE SOLD.

There are definitely a lot of homes on the market right now here in Shasta County and the one question that is most likely keeps running through your head is how to make your home more appealing then all the rest in the same price range? The answer to that is simple presentation. Not only is it important to keep the house clean and free of visible damage for an appointments that potential buyers may schedule to view your home, it is also important to have an open house free of the same problems but with a little more effort.

If you read the paper you will notice that there is a section that advertises the times and dates an open house is going to be held, you will also notice that a majority of these open houses are held on the weekend during the afternoon. Why not schedule your open house and a completely different day? For example, old your open house on a Tuesday during the lunch hour or in the evening time when people are off of work.

Another tip is signage. Make your signs visible but also make them appealing to the eye. You will want something that is going to draw in any potential buyers.

When it comes to the home it is important to make sure every room within the home (even the garage and the yards) are clean. In the kitchen or dining room have drinks and snack readily available, this will cause the potential buyer to want to stay longer and talk about your home. If you have pets see if a friend or family member would be willing to watch them during your open house. And, get the family out of the house! You want a one-on-one basis with any person who walks through your door, and it is easier when you are the only person dealing with them.

So good luck on your next open house, I hope it goes great for you!

There was an article in last weeks Valley Post regarding the highly anticipated Anderson Vineyards here in Shasta County. Some of the lots and homes in the new subdivision have been on the market for a few months now, but just last there was finally an article regarding this break through. Here is a brief overview of what the article contained:

Water key to getting subdivision sales back on track

Just days after the City of Anderson issued a conditional occupancy permit for two homes of The Vineyards at Anderson subdivision, prospective buyers had a chance for a walk-through.

Jordan Taylor, a local developer who represents U.S. Acquisitions Real Estate III, LLC, a private equity company based in Denver, Colo., said that company purchased the foreclosed home loans from the previous builder after problems with adequate supplies of potable water with pressure sufficient for fire safety were discovered in 2007.

Work on all houses in the subdivision had virtually stopped until the water issues were finally resolved late last fall with the installation of a nearly $1 million pumping station that connects to the City of Anderson’s municipal water system and treatment plant.

Originally designed and priced for the top end of the real estate bubble in 2007, the 12 houses that were originally intended as showcase model homes have all been finished with first-class amenities and details, Taylor says.

All of the homes built so far have tile roofs with radiant barrier roof sheeting and drop attics, low emission windows that feature vinyl-clad wood construction, high efficiency HVAC systems, security features, vinyl or wrought-iron fencing, built-in fire suppression systems and more.

Taylor committed to the project that later this spring, his own development company has plans to start construction on some of the 115 available lots in Unit 1 Phase 1.

The article was written by George L. Winship, an editor for the Valley Post. The Valley Post is the January 13, 2010 paper and the article can be found on the front page of the paper.

I am also proud to say that our office is also involved with a couple of the lots there in The Vineyards subdivision and we hope to do even more business up there.

Prices are down here in Shasta County and so are interest rates, if you are looking to buy a home this is the time to do it. There are some great homes out there that are available at a good price, and they are not lasting very long on the market. On a majority of the homes listed for under $200,000 it at times has been a bidding war, and we have seen properties go for mare than what they are listed for.

First time home buyers, now is the time to move. Go out and get you pre-qualification or pre-approval done with the lender of your choice. If you go and do that first you will be able to figure out how much money you may have to bring into the transaction and be able to figure out how much home you are going to be able to afford.

Also figure out what area you want to live in and start to look there, if you don’t find what you are looking for expand the area you want to look. And the most important thing is to just go out there and view homes, even attend Open Houses if necessary, to get the feel of what you are looking for. That way when you come across that “certain” home there will be no question as to whether or not this home is made for you.

The best way to decide what you are looking for in your first home is to write it down on a list. Sit down and discuss with your partner esactly what you guys are looking for, what is important, what is not important, and what would be a nice feature but you don’t have to have. When you then view homes keep that list in mind, or refer to it with each home.

Now, if it comes down to more that one home compare those homes to each other and that little list you carry around in your pocket. Compare and contrast, even work out a special numbering system. If worse comes to worse go back and view those homes again. Your agent should be more than willing to take you back to those homes as many times as necessary to help you make your decision.

So good luck and good hunting.

I hope everyone had a great Christmas. I know I did, it may have been busy but it was enjoyable. I also hope every one got what they had asked for. But, now it is time to focus on the fact the the year 2009 it about to come to an end and we are about to begin another wonderful year, the year of 2010.

With the coming of a new year many people tend to set “New Year Resolutions” for themselves – the one recommendation I have for that is to make it a goal you can see your self achieving. Goals can be personal or professional. Personal goals could be to buy a new house, buy a new car, lose weight, etc. Professional goals could be to get a new job or get another pay raise. Whatever it may be make sure it is a goal you know you can achieve.

My goals tend to focus along the lines of real estate, probably because I happen to be in the real estate profession. Last year I had set a goal to sell at least one house here in Shasta County- which I achieved. For the year 2010 I am going to raise the bar for me to sell at least two houses this coming year.

That takes care of my professional goal, now for my personal goal. I will actually be setting a couple for my self her. For starters I would like to be able to improve my husbands credit, then after doing that I would like to have my husband and I buy our first house.

My New Year Resolutions are now set, now I am interested to hear what yours may be – so go ahead a tell me, comment on this blog on the goals who have set your self for the year 2010.