www.SellinLA.com NEWSLETTER
Real Estate News You Can Use:  Issue Number 7:  March, 2009
John A. Lucy, Keller Williams, Hollywood Hills/Sunset Strip, California
310-623-1376 JohnALucy@KW.com 310-415-7691

Dear Clients, Friends, Neighbors, Associates:
Several of you have requested more frequent email newsletters, so I plan to send these more often.  If you have suggestions or would prefer not to receive them, please just let me know with a reply or call.
 
1. Property Tax Bill Reductions:  (Pay less on your next bill!)
The Los Angeles County Assessor is in the process of reviewing all sales since 2003 and comparing them with more recent sales to determine whether their valuations should be reduced.  You can check whether your address is on the review list by following the link below after April 1st.  If you disagree with the new assessment and wish to file an appeal, the second link shows the process and the form necessary.  I can help with providing the comparable sales information necessary.
http://assessor.lacounty.gov/extranet/list/newsList.aspx?newsid=78
http://assessor.lacounty.gov/extranet/guides/prop8.aspx

2. Federal and State Buyer Tax Credits:  (Calling all renters or first timer buyers!)
The Federal Government is offering up to an $8000 tax credit to certain eligible buyers of a home for their principal residence.  They must not have owned a home during the past 3 years, must occupy the home for 3 years after purchase, and there are income limits.  But the best part is that this credit off your income tax need not be repaid.  This applies for purchases during 2009.  Consult your tax advisor and read the details at:
http://www.federalhousingtaxcredit.com/2009/faq.php#2
The State of California has also added a State Tax Credit up to $10,000 (5% of purchase price)for Buyers purchasing new (never occupied) homes.  This credit is spread over 3 years, but has less restrictions for Buyers, and is not just for first timer's.  Warning:  they only allocated $100 million, and $11 million are already claimed.  Call your tax advisor and read the details at:
http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml#def2

3. Mortgage Rates and Availability:  (Get ready to Grumble!)
As the banks once were giving loans to anyone with a pulse, they have now gone in the totally opposite direction, qualifying only the best borrowers.  Rates are great (5% or less) right now for loans up to $417,000 (the "conforming" limit) in this region if you have great credit (720+ FICO score) and 20% for a down payment.  Underwriting standards are tough though, and you must provide full documentation.  Be prepared for delays with processing as bank staff cutbacks and careful underwriters scrutinize your file.  Get a long rate lock and a long loan contingency.
If you have less than 20% to put down, you are pretty much limited to FHA (Federal Housing Administration) guaranteed loans.  These loans have the same "conforming" limit, but also have extra costs and restrictions such as a severe 1.5% mortgage insurance premium.
There are also decent shorter term (5 year fixed payment around 5.75%) "jumbo" loans available with the same strict guidelines, but the rates increase above certain dollar thresholds.
Start applications early, before you even begin home shopping.

4. Tax Exemption on "Short Sale" Mortgage Debt Forgiveness:
For those home owners attempting to sell for less than their loan totals (Short Sale) by proving financial hardship and negotiating with their lender, there is some measure of tax relief which has been extended.  Please consult with your financial advisor before assuming you can benefit and see the details at:
http://www.irs.gov/irs/article/0,,id=179073,00.html

5. General Market News:  (Location. Location. Location!)
Foreclosures and Short Sales, especially in outlying areas still dominate the market statistics and are driving down median prices.  Sales transactions are up for those categories as buyers snap up cheap properties.  The higher end properties in the more desirable areas have declined in price, but not as much.  They are just not selling quickly as uncertainty in the economy, fewer "move-up" buyers, and lack of affordable mortgage money take their toll.

Let me know how I can help:
The Finest Compliment I Can Receive is a Referral from Past Clients and Customers.
Thank You for your Trust.--John.
Please rest assured that your personal information is secure with me, and that this is not part of any outside vendor connection.  Please feel free to discontinue these mailings at any time by sending a quick "opt out" email to me at JohnALucy@KW.com, or by leaving me a voice mail at my direct phone number 310-623-1376.

 

"Putting the REAL back in Real Estate"

REAL Marketing Plans and Analysis
REAL Proven Strategies and Advice

REAL Competitive Pricing and Negotiation

REAL Service and Communication

REAL Opportunities and Goals

Each Keller Williams Office is Independently Owned and Operated.