Home Net 123

Tel : (408) 275-1798

Personal Service for Positive Results

Real Estate Marketing, Sale, and Loan Consultant

Member of: National Association of Realtors, California Association of Realtors, Santa Clara County Association of Realtors and MLSListings Inc.

Home Net 123
Campbell, CA 95008
United States
ph: 408-275-1798
home@homenet123.com

Did You Know?

Talking Points …

The S&P/Case-Shiller Home Price Index, covering the entire nation, rose 4.7 percent in the 12 months ended in August, slightly greater than a 4.6 percent increase in July.

The 20-city index jumped 5.1 percent year-over-year through August, after July’s 4.9 percent increase. Economists surveyed by The Wall Street Journal expected a 5.1 percent increase in the 20-city index.

West coast cities remained the strongest markets over the past year, with San Francisco and Denver gaining 10.7 percent through August, and Portland, Ore., jumping 9.4 percent.

Talking Points …

Total mortgage application volume surged 13.9 percent on a seasonally adjusted basis for the week ended Sept. 18 versus the earlier week, according to the Mortgage Bankers Association (MBA).

Refinance applications, which are most rate-sensitive, increased 18 percent from the previous week. Purchase applications rose 9 percent to their highest level since June 2015. They are now 27 percent higher than the same week one year ago.

Mike Fratantoni, MBA's chief economist, commented, “We saw significant rate volatility last week surrounding the [Federal Reserve’s] meeting, and rate declines toward the end of the week likely drove applications from both prospective home buyers and borrowers looking to refinance.”

How to Get Rid of Ants

https://www.youtube.com/watch?v=q4KCzN-Fz-I

The Geography of Well-Being:

http://www.citylab.com/work/2015/04/the-geography-of-well-being/391188/?utm_source=nl_daily_link1_042315

How to win a bidding war in today’s outrageous housing market:

http://www.citylab.com/work/2015/04/the-geography-of-well-being/391188/?utm_source=nl_daily_link1_042315

Here’s a ranking of the 10 most competitive neighborhoods for homebuyers in 2014:

1.    Sunset District, San Francisco
2.    Castro, San Francisco
3.    Bernal Heights, San Francisco
4.    Jamaica Plain, Boston
5.    Silver Lake, Los Angeles
6.    Almaden Valley, San Jose
7.    Ardenwood, Oakland
8.    Cambrian Park, San Jose
9.    Ravenna, Seattle
10.    Allston/Brighton, Boston

Talking Points …

Slower price gains and the lowest interest rates in nearly two years did little to spur November home sales as low housing affordability and tight supply conditions remained obstacles to entering the market for would-be buyers, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 376,480 units in November, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. Sales in November were down 5.3 percent from a revised 397,400 in October and down 3.4 percent from a revised 389,580 in November 2013. Home sales have been below the 400,000 level since November 2013. The statewide sales figure represents what would be the total number of homes sold during 2014 if sales maintained the November pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The median price of an existing, single-family detached California home slipped 1.1 percent from October’s median price of $450,270 to $445,280 in November but was up 5.2 percent from the revised $423,090 recorded in November 2013. The statewide median home price has been higher on a year-over-year basis for more than two years, but price gains have narrowed over the past few months. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.

Everything About a Home—in the Cloud

http://realtormag.realtor.org/technology/cool-tools/article/2014/11/everything-about-home-in-cloud?om_rid=AAEF8w&om_mid=_BUgMtZB8$AiLvk&om_ntype=NARWeekly

Realtor.com forecast: Millennials will break out in 2015 - Realtor.com’s Chief Economist Announces First Annual Forecast

http://www.housingwire.com/articles/32239-realtorcom-forecast-millennials-will-break-out-in-2015

Talking Points …

Lower interest rates and minimal home price gains kept California’s housing affordability in check in the third quarter of 2014 and even helped improve affordability in some high-cost counties in the San Francisco Bay region, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in third-quarter 2014 was unchanged from the 30 percent recorded in the second quarter of 2014 but was down from a revised 32 percent in third-quarter 2013, according to C.A.R.’s Traditional Housing Affordability Index (HAI).

Home buyers needed to earn a minimum annual income of $94,960 to qualify for the purchase of a $467,700 statewide median-priced, existing single-family home in the third quarter of 2014. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $2,370, assuming a 20 percent down payment and an effective composite interest rate of 4.23 percent.

Talking Points …

California home sales remained steady in September, as home price gains eased back from an unusually high increase in August, according to the CALIFORNIA ASSOCIATION OF REALTORS®.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 396,440 units in September, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. Sales in September inched up 0.4 percent from a revised 394,700 in August and were down 4.2 percent from 413,850 in September 2013. September marked the 11th straight month that sales were below the 400,000 level and the 14th straight month that sales have declined on a year-over-year basis.

The median price of an existing, single-family detached California home fell 4 percent from August’s median price of $480,280 to $460,940 in September but was up 7.6 percent from the revised $428,290 recorded in September 2013. The statewide median home price has been higher on a year-over-year basis for more than two years.

Talking Points …

California home sales pulled back in August, reversing two months of increases, as the median home price rose from the previous month and year, according to the CALIFORNIA ASSOCIATION OF REALTORS®.

August marked the 10th straight month that sales were below the 400,000 level and the 13th straight month that sales have declined on a year-over-year basis. Sales in August decreased 1.2 percent from 398,940 in July and were down 9.3 percent from 434,910 in August 2013. The August 2014 sales level was the second highest for the year so far.

The median price of an existing, single-family detached California home rose 3.3 percent from July’s median price of $464,750 to $480,280 in August and up 8.9 percent from the revised $441,010 recorded in August 2013. The August 2014 price was the highest observed since 2007. The statewide median home price has increased year over year for the previous 30 months, marking more than two full years of consecutive year-over-year price increases.

Talking Points …

New research from Labor Department data and a Dartmouth College professor shows that today’s young Americans are burdened by debt at a far greater rate than prior generations. Overall, more than a third of Americans age 24 to 28—or 35 percent—have debts that exceed their assets.

Younger Americans today are taking on far less mortgage debt and far more student and credit-card debt than the early and late boomers did at the same age.

Only 19.8 percent of today’s young Americans have home-related debt, down from 29.9 percent of their peers in the late 1980s and 43.1 percent of those in the mid-1970s. Conversely, 22.4 percent of young Americans today have education debt, compared with 5.1 percent among late baby boomers.

Talking Points …

Lower interest rates in the second quarter of 2014 failed to offset continued home price increases, lowering housing affordability statewide and in 19 of 26 counties in California, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California fell from 33 percent in the first quarter of 2014 to 30 percent in second-quarter 2014 and was down from 36 percent in second-quarter 2013, according to C.A.R.’s Traditional Housing Affordability Index (HAI).

Home buyers needed to earn a minimum annual income of $93,590 to qualify for the purchase of a $457,140 statewide median-priced, existing single-family home in the second quarter of 2014. The monthly payment, including taxes and insurance on a 30-year fixed-rate loan, would be $2,340, assuming a 20 percent down payment and an effective composite interest rate of 4.32 percent.

Talking Points …

Housing markets in just 10 states and four of 50 metro areas are stable, according to Freddie Mac’s Multi-Indicator Market Index. The data shows an overall picture of the market that is neither grim nor prosperous, according to Freddie Mac Chief Economist Frank Nothaft.

Less than half of the housing markets that the index covers are showing an improving trend, whereas at this same time last year more than 90 percent of these same markets were headed in the right direction.

The 10 states on stable ground as of March are North Dakota, Wyoming, Louisiana, Alaska, Montana, Hawaii, West Virginia, Texas, Vermont and South Dakota. California is one of the five most improving states month-over-month.

Talking Points …

California’s housing market continued to perform better than expected in April with both the median home price and home sales increasing month to month, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).

Sales in April increased 7.4 percent from a revised 367,020 in March but were down 7 percent from a revised 423,690 in April 2013. The statewide median price of an existing, single-family detached home rose 3.2 percent to $449,360 in April compared with March, reaching its highest level since December 2007.

Housing inventory remained tight in April, with the supply of existing, single-family detached homes for sale slipping last month to 3.5 months, down from March’s Unsold Inventory Index of 4 months, but up from 2.8 months in April 2013.

Talking Points …

According to a new report from the Stanford Center on Poverty and Inequality, the recession’s impact on housing prices increased wealth inequality because houses are the main asset of less advantaged groups. Affluent Americans held more of their wealth in stocks or businesses.

Americans with higher-than-median earnings comprise the greatest bulk of recent gains in life expectancy. Researchers found a troubling trend toward growing income inequality in life expectancy.

The wealth of minorities was disproportionately affected by the recession, as the net worth of white Americans did not experience as big of a blow. Case in point, in 2007, the average net worth of Latino households was 26 percent that of white households; in 2010, it had fallen to 15 percent.

8 Staging Tips Using Feng Shui

The ancient Chinese art of feng shui (pronounced “fung shway”) is over 3,000 years old, and has been known to help many REALTORS® sell homes when applied to their listings. This method of arranging inner and outer environments so they consistently support the possibility of all the good things in life encourages health, wealth, great relationships, career, and wisdom – just to name a few. Karen Rauch Carter, author of the bestselling book Move Your Stuff, Change Your Life, works with many REALTORS® who swear by her techniques. Here are a few easy fixes to help prepare your listings for sale the feng shui way.

1. Create a happy front door. According to feng shui principles, the easier it is for people to bring opportunities to your front door, the more you’ll have. Make the walk from the car to the front door a delightful experience. That means no thorny plants nearby, no sidewalk trippers, and no cobwebs to walk through. Next, add details that draw people to the front door, such as a welcome mat and flowers. You might even consider painting the front door a shade of red to attract positive energy, especially if it’s positioned in shadow or under an overhang or porch. Make sure the doorbell and outdoor lights are in good, working order. Clean the door and stoop thoroughly -- shine the metal on the knocker, wash any windows -- make it the prettiest front door on the block!

2. Fix the leaks. This is, of course, basic common sense, but in feng shui leaking water is equivalent to leaking money. When a leak is fixed, the money stays, and you may just end up selling the home at a higher price.

3. For every room, a true function. When buyers see a treadmill in the bedroom, a computer on the kitchen counter, or a bike in the hallway, it may appear that the house doesn’t seem to have enough room for all the necessary functions. When staging a home, make sure every object in the room matches the room’s function.

4. Manage outdoor plants. Plants, especially dead ones, can block positive energy when physically touching the outside of the house. When the limbs of a tree are in direct contact, they may even transfer negative energy into the home. Remove worry and excess debris, and the house may sell faster.

5. Place furniture in a commanding position. This means different things for different rooms, but the feng shui basic premise is that furniture should be arranged so the back and head are protected. Don’t have your back to a door or window when you’re on a couch, chair, or bed, and avoid directly facing a wall, especially when sitting at your desk.

6. Keep the energy flowing. Doors and windows are the entry points for energy to enter or escape, so make sure all are in good working order to encourage positive energy flow. All doors (including closets) should open freely with nothing blocking their way. Windows should be easy to open – make sure none are painted or nailed shut. If they’re stuck, you might get stuck with a listing that’s hard to sell. If possible, open curtains and blinds before a showing to invite energy into the home.

7. Let the buyer find the view. When a home is designed to give you that big WOW view upon entering the front door, consider creating a bold, dramatic design statement to compete for that attention somewhere inside the home. This may seem counter-intuitive, but if buyers are immediately drawn outside, that means nothing inside is holding their attention. The more you can keep attention INSIDE the house before the eyes slip outside, the better energy and "greater likeability" you are creating.

8. Employ the power of red. Homes lacking a fire element may be more difficult to sell. This problem can be addressed with a quick fix of adding red or hot orange colors where appropriate. Place a vase of red flowers on the counter, or toss a few red throw pillows on the couch or bed if the décor allows. A bowl of red apples is another easy solution. Pointy, triangular shapes are also considered fire elements in feng shui, so consider filling a vase with flowers like birds of paradise. Animal prints can also provide a fire element, as can actual fire, such as candles. Try adding a few splashes of red here and there, and see what it can do for your next listing.

Weekend Open House Allowed For Tenant-Occupied Properties

A listing agent of tenant-occupied property can hold an open house over the weekend during reasonable hours (as explained below), according to a recent California court decision. A landlord’s right to enter leased premises during “normal business hours,” as authorized under section 1954 of the California Civil Code, means “objectively reasonable hours under the facts and circumstances of the case, keeping in mind the right of tenants to quiet enjoyment and the right of landlords to sell their property” (Dromy v. Lukovsky (2013 WL 4654568)).

In the Dromy case, a residential tenant refused to allow the landlord, who was trying to sell his property, to conduct open houses on weekends. The landlord, frustrated by what he believed was an undue barrier to selling, sought court intervention. To support the landlord’s position, the landlord’s listing agent submitted an uncontroverted statement to the court that the custom and practice of the residential real estate community is to conduct open houses on weekends.

No published court decision in California has previously considered whether a landlord’s right, under California Civil Code section 1954, to enter leased premises to show the property to prospective buyers during “normal business hours” includes weekends. In arriving at its decision, the appellate court in Dromy observed that “normal business hours” are generally those hours when persons in the community keep their places open for business. The court also noted that, in this situation, “the relevant community consists of licensed professionals working in the residential real estate sales business” who customarily conduct open houses on weekends. Weekends, after all, are more convenient for prospective buyers who mostly work on weekdays. As a result, the Dromy court ruled that a landlord seeking to exhibit a leased dwelling unit to prospective buyers may only enter the property during reasonable hours, unless the tenant consents to another time.

In light of the Dromy decision, landlords and their listing agents who want to arrange weekend open houses should obtain the tenant’s consent or comply with the reasonableness standard required by the Dromy court. To help ensure that what you schedule is objectively reasonable, landlords and their agents are strongly encouraged to, depending on the circumstances, pattern your weekend open house arrangements in a similar fashion to what the trial court ordered in Dromy as follows:

Listing agent could hold 2 open houses per month;
Open houses could be on weekend days between 1:00 p.m. and 4:30 p.m.;
Listing agent must be present during any open house; and
Listing agent must give 10-day advance email notice to the tenant of proposed weekend open house dates, and give the tenant 48-hours to acknowledge or provide an alternative weekend date.

Homes with negative equity declines in Q2,2013:

CoreLogic recently released its new analysis showing approximately 2.5 million more residential properties returned to a state of positive equity during the second quarter of 2013, and the total number of mortgaged residential properties with equity currently stands at 41.5 million. The analysis shows that 7.1 million homes, or 14.5 percent of all residential properties with a mortgage, were still in negative equity at the end of the second quarter of 2013. This figure is down from 9.6 million homes, or 19.7 percent of all residential properties with a mortgage, at the end of the first quarter of 2013.

Negative equity, often referred to as “underwater” or “upside down,” means that borrowers owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both.

Of the 41.5 million residential properties with positive equity, 10.3 million have less than 20 percent equity. Borrowers with less than 20 percent equity, referred to as “under-equitied,” may have a more difficult time obtaining new financing for their homes due to underwriting constraints. Under-equitied mortgages accounted for 21.1 percent of all residential properties with a mortgage nationwide in the second quarter of 2013. At the end of the second quarter of 2013, 1.7 million residential properties had less than 5 percent equity, referred to as near negative equity. Properties that are near negative equity are at risk should home prices fall.

Talking Points …

Adjustable-rate mortgages (ARMs) now represent 6.5 percent of mortgage applications nationwide, which shows they are becoming more appealing to borrowers. A year ago, only 4.2 percent of mortgage applications nationwide were for ARMs, according to the Mortgage Bankers Association.

These types of loans can carry more risk for the borrower, but initial rates are lower than those on fixed-rate loans. Rates may rise after an initial period of fixed interest. That being said, there is a lifetime cap that limits ups and downs.

A 30-year fixed-rate mortgage averaged 4.51 percent as of August 29, while a five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.24 percent, according to Freddie Mac’s Primary Mortgage Market Survey.

Do It Yourself Home Security

By Jill Hamilton

According to the FBI, there's a home burglary every 15 seconds. To keep your home safe from burglary, you don't need to make your house impenetrable, you just have to make it look unattractive to burglars. Thieves want to get in and out quickly, they don't want to be seen, and they don't want trouble in the form of barking dogs, tricky entrances and noisy alarms.

In most home break-ins, thieves simply walk in an unlocked door. The number one tip for DIY security is simply...locking the doors.

Here are some other tips—ranging from cheap and easy to a bit more involved—to help make your home less appealing to burglars.

Fortify the doors

Change any locks from a previous owner.

On doors, use a dead bolt in addition to a knob lock. For extra security, add a tiny lock that covers the dead bolt's screws so it can't be picked.

A common method of entry is to kick in the strike plate, the panel that holds the lock or latch bolt in place. For more protection, install a heavy duty strike plate using extra-long screws.

Install strong doors in a solid frame. A high-tech lock is useless on a flimsy door.

Put a peephole in the door.

Use landscaping for home security.

Choose plants that don't obstruct a clear view from the street—these give burglars privacy and added time to break in.

Remove climbable trees that allow easy access to second floor windows.

Plant thorny plants under windows like cactus, holly or roses. On fences, try blackberry vines which are thorny and grow quickly. A local nursery can give you good suggestions for your neighborhood.

Don't forget the garage.

Burglars frequently gain entry to a house through the garage via the windows or a flimsy garage door. Use the same care on garage doors as house doors--reinforce door hinges, make sure the frame is secure, and install a solid, strong door with a high-quality dead bolt.

Cover windows with shades or curtains so thieves can't peek in. Lock windows and make sure the frames are strong. Install bars for the highest security.

Put a lock on the garage door and lock it when you're gone. Unplug the garage door opener when on vacation. Don't leave the remote in your car. When you use a garage door remote, always make sure garage door closes and stays closed. Consider buying a timer that will lower the door automatically after a predetermined amount of time if you tend to forget to close it.

Scare burglars away with noise and light.

Install motion sensors on outdoor lights.

Install a home security system with alarms, flashing lights and/or a siren. You can use a security service or install inexpensive door and window alarms yourself. Remember to alarm all doors and windows including those in back or unused rooms.

Keep system in good working order and cover the wiring so thieves can't disable the system. Don't keep your pass code by the unit. Let a neighborhood or two know how you'd like them to respond when the alarm goes off.

Part of the effectiveness of an alarm system is letting thieves know about it. Prominently display a home security sign in the yard and put decals on windows.

Consider installing a camera system that you can monitor during vacations and other times when you're away.

Dogs are great burglar deterrents. Even tiny dogs will deter burglars with loud barking. A “Beware of Dog” sign—whether or not you actually have a dog—can also keep burglars away.

Secure the whole house.

Case the joint. Look at your house from the prospective of a thief to look for weakness. Don't forget alternate ways in like screened-in porches, basement windows and easily accessible balconies.

Reinforce wall air conditioners so they can't be easily pried out.

Use burglar-resistant glass in windows or cover them with an impact-resistant film. Reinforce window screws with solder. Don't put rocks or bricks by windows that thieves could use to shatter glass.

Install locking chains on bikes, ladders and trailers.

Put extra locks on sheds. Change out screws and bolts on exposed hardware with ones that require special equipment to undo such as hex-head caps.

Install a security mail box that requires a key to open. Don't put your name on the box.

Put a locking nut on each car tire to make them harder to steal.

Install a safe for valuables. Make sure it's not portable and secure it to a floor or wall.

Put a long dowel or bar into the track of a sliding door to keep the door from sliding open easily. You can also install a foot lock that clicks a strong bolt into the track or a lock fits onto the top of the door.

Don't hide a house key in your yard, especially not under the door mat, a fake rock, or flower pot. Instead leave a key with a trusted neighbor.

And don't forget to lock that door!

Talking Points …

The share of equity sales – or non-distressed property sales – has risen on a month-to-month basis for 17 of the last 18 months and now makes up more than four in five sales, the highest share since December 2007, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). In addition, distressed sales plunged by half compared to a year ago.

C.A.R. reported that the available supply of homes was essentially flat from June but remained tight. The July Unsold Inventory Index for equity sales edged down from 3.1 months in June to 3 months in July. The supply of REOs inched up from 1.8 months in June to 2.1 months in July, and the supply of short sales ticked upward from 2.4 months in June to 2.5 months in July.

Of the distressed properties, the share of short sales fell to the lowest point since April 2009 at 11.6 percent. July’s figure was down from 12.9 percent in June and was about half of what it was a year ago, when short sales made up 22.7 percent of all sales. The continuing decline in short sales indicates more previously underwater homes are moving into positive equity as home prices remain on an upward trend.

Talking Points …

An affordability index published by the CALIFORNIA ASSOCIATION OF REALTORS® reveals that just 44 percent of California residents were able to afford the median-priced home at the end of the first quarter. In comparison, during the same period last year, the rate was 56 percent, when affordability hit its highest level since the trade group began publishing its affordability statistics in 1988.

A sharp decline in household formation has been exacerbated by the share of 18-to-34-year-olds living with their parents, which rose from about 27.6 percent before the Great Recession in 2007 to above 31 percent, according to Trulia. Furthermore, stagnant wages and college debt may explain why the share of millennials with jobs living with their parents is higher in 2013 at 24.6 percent than before the recession at 22.8 percent.

The S&P/Case-Shiller Home Price index reported this week that home prices across America's 20 major cities in May climbed 12.2 percent higher from a year earlier, which was higher than most expected and the biggest annual gain since March 2006.

Have a question about Federal programs, benefits, or services?

http://www.info.gov/

California home prices up

California’s median home price marked a full year of annual price gains, propelled by strong sales of higher-priced homes in February, while a lack of inventory constrained total home sales for the month, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported this week.

Making sense of the story

Sales in February were down 0.9 percent from a revised 420,270 in January and down 5.9 percent from a revised 442,660 in February 2012. The statewide sales figure represents what would be the total number of homes sold during 2013 if sales maintained the February pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The statewide median price of an existing, single-family detached home slipped 1 percent from January’s revised median price of $337,360 to $333,880 in February. February’s price was up 24.2 percent from a revised $268,810 recorded in February 2012, marking a full year of annual price increases and the eighth consecutive month of double-digit annual gains.

The available supply of homes for sale was essentially unchanged from January, but was down markedly from a year ago. The February Unsold Inventory Index for existing, single-family detached homes was 3.6 months in February, up from 3.5 months in January, but down from 5.4 months in February 2012. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A six- to seven-month supply is considered normal.

Increased market competition has significantly driven down the time on market compared to a year ago. Homes sold more quickly in February, with the median number of days it took to sell a single-family home decreasing to 34.2 days in February, down from 36.6 days in January and down from a revised 57.4 days for the same period a year ago.

http://www.sacbee.com/2013/03/15/5266125/realtors-california-sacramento.html

Talking Points:

Homeowners who haven’t refinanced recently are probably paying a higher interest rate on their mortgage than is necessary. Borrowers should take advantage of today’s record-low mortgage rates while they last.

With mortgage rates near the bottom and home prices on the rise, it’s still a perfect time to buy a house. Buyers should get a mortgage preapproval before beginning the house hunt.

Credit standards remain tight, and as new mortgage rules are unveiled this year, the standards are not expected to loosen. Borrowers planning to get a mortgage anytime soon are advised to treat their credit score as one of their most valuable assets. Most borrowers need a credit score of at least 720 to get the best rate. Borrowers with a credit score of 680 or more can still get a good deal.

Home Prices Poised for Growth in 2013 listing prices were up 5.1%nationally in December

http://blogs.wsj.com/developments/2013/01/03/report-home-prices-poised-for-growth-in-2013/?mod=WSJ_3Up_RealEstate

Home PS

Solar Christmas lights don’t cost anything to operate, but the high purchase price might not add up to savings.

Now there’s a new kid in the string-light neighborhood: LED solar Christmas lights are appearing at retailers around the country, promising grid-free festive lighting for holiday-happy consumers.

Powering up solar Christmas lights

A string of solar Christmas lights uses a small solar panel for power; there are no extension cords that must be plugged into outlets. The panel — about the size of a hockey puck — powers rechargeable batteries that illuminate a 25- to 100-bulb string of LED lights.

Panels come with small stakes so you can put them in the ground, where they can take advantage of the sun. A fully-charged string of lights should glow for 6 to 8 hours after the sun goes down.

Solar lights vs. LED plug-in costs

Most consumers expect new technologies to cost more, but if saving energy and money is your main reason for considering solar-powered LED holiday lights, solar lights may not offer enough cost-saving to offset the higher initial purchase price.

Compare purchase prices:

The average cost for a 100-light string of miniature solar-powered LED lights is about $0.30 per bulb, or about $30 per string.

The average cost for a 100-light string of miniature plug-in LED lights is $0.08 per bulb, or about $8 per string.

Compare costs to operate:

Operating a string of plug-in LED Christmas lights for 300 hours — more than enough hours for an entire holiday season — costs about $0.30, using an average energy cost of $0.11 per kilowatt hour.

Solar-powered Christmas lights, of course, don’t cost anything to operate. That means you’re saving 30 cents per year in energy costs.

Do the math, and you’ll see that it’ll take about 45 years for the energy savings from solar-power to equal the difference in purchase price between a plug-in string and a solar-powered string.

Advantages of solar lights

no extension cords

no need for exterior electrical outlets

withstand cold temperatures and precipitation

zero cost to operate

light output comparable to plug-in lighting

a green option

Disadvantages

higher initial cost to purchase

may not operate under cloudy skies

unproven longevity (too new on the market for results)

Talking Points

Borrowers whose down payments were less than 20 percent of the value of the home likely were required by their lender to buy private mortgage insurance (PMI), a policy that protects any losses the lender might take if the borrower does not make loan payments.

And unfortunately, PMI isn’t cheap. According to a mortgage consumer guide published by the U.S. Federal Reserve System, PMI could cost anywhere from $50 to $100 per month.

Fortunately, borrowers can get rid of PMI. The first way, of course, is to put down 20 percent when the house is purchased. If that is not feasible, there is still a possibility of removing the insurance.

According to the Federal Reserve, when borrowers make enough payments to gain 20 percent equity in the home (based on the original purchase price), the owner can send a written request to the lender to cancel the PMI.
The Federal Reserve adds that federal law required PMI payments to automatically stop once the home has reached 22 percent equity – again based on the original purchase price and with a clean payment record.
It’s also important to know that PMI is different than LMPI, which stands for lender’s private mortgage insurance. Some lenders buy LPMI and charge borrowers a higher interest rate to cover the expense. According to the Federal Reserve, this type of insurance does not automatically cancel; instead, the borrower must refinance the home to possibly remove it.

Talking Points

The rate lock might be the most complicated issue mortgage borrowers need to understand.
A rate lock is a guarantee that the lender will offer the borrower a specific combination of interest rate and points. A point is a fee or rebate equal to 1 percent of the loan amount.
Also essential to a rate lock is a time period, typically 10, 15, 30, 45 or 60 days.
A rate lock protects the borrower from rate fluctuations for the duration of the lock period. If market rates rise after the rate is locked, the borrower will still get the lower rate, to the lender's detriment.
But there's a downside: If rates fall after the rate is locked, the borrower might not be able to take advantage of that opportunity.

You can't see it, smell it, or taste it; but it can kill you… a gas known as the “silent killer”.

CO is produced by common household appliances: Water heaters, clothes dryers, kitchen gas ranges, ovens or cook tops, wood burning stoves, charcoal grills, propane heaters, gas wall heater

Early symptoms of carbon monoxide poisoning such as headaches, dizziness, nausea, and fatigue are often mistaken for the flu because the deadly gas goes undetected in a home.

Advanced symptoms include confusion, depression, impaired judgment, hallucinations, agitation, vomiting, drowsiness, fainting, memory problems and visual changes.

California's Carbon Monoxide Poisoning Prevention Act of 2010 (SB183) requires that all residential property be equipped with a carbon monoxide detector when the property has… a) "fossil fuel" burning heater or appliance, b) fireplace, c) or an attached garage.

The law provides that all single-family homes, including individually-owned condos, (owner or tenant occupied) must be equipped with a detector as of July 1, 2011. All other residential units (multi-family apartments and condominiums) must be equipped with a detector on or before January 1, 2013.

The best protection from carbon monoxide poisoning is to install a carbon monoxide alarm on each level of your home.

Short Sale Soundoff: BofA streamlines short sale process:

Bank Of America recently announced it will begin to use additional methods to determine property values in an attempt to streamline the short sale process and reduce cycle time. As of mid-October, different valuation methods that do not require access to the property will be implemented on some transactions. This will reduce the time frame for the valuation stage from several weeks to a few days.

When access to the home is necessary to complete the valuation, the real estate agent or homeowner will be contacted to schedule access.

If the real estate agent disagrees with the valuation of the home, a reconsideration request may be submitted to the short sale specialist through an Equator message.

Talking Points

Most real estate professionals agree that the first offer sellers receive on their home is usually the best offer. Of course, this isn’t true in every situation, but there are reasons why agents believe this, and why they often suggest that sellers either accept the first offer or at least give it serious consideration.

Buyers in the real estate market usually start off slowly by going to a few open houses, checking out prices online, and doing their homework. They may even make first contact with an agent to assess what the agent thinks about the state of the local market.

From there, the buyers begin to get more serious. They may start going on private, second or third showings with their agent and become a “real dealer” – a buyer who is completely in the game, approved for a mortgage, and actively engaged with their mortgage lender or broker. Real dealers are often the ones who write the first offer a seller receives on a property, and that’s why their offers should be taken seriously.

An offer from a real dealer may not come in within days of a property going on the market. But it will come from an informed buyer who is knowledgeable of the market. If a home is priced too high and a month or two goes by without an offer, it will be the real deal buyer who has been watching the listing and waiting to see how the market responds. If the buyer notes that there aren’t any offers on it and there is no activity after some time, the real dealer will come in with a low offer, which actually may be a good offer, on the seller’s home.

While sellers may see a low offer as “insulting” and coming out of left field, the seller should still look at this offer closely and investigate who the buyer is, how long they have been looking, ask whether they’ve written other offers nearby, determine if they are working with a good local agent, and ask if the offer comes with a pre-approval letter.

As hard as it may be for a seller to contemplate an offer much lower than their asking price, serious sellers should look at all the signs leading up to it and consider if this is the offer to accept.

Talking Points

Sellers who are considering listing their homes for sale are advised to do the following:
Get rid of clutter and neutralize the home. Removing unnecessary furniture and painting rooms neutral colors will help potential buyers see themselves living in the home.
Homeowners also should put away personal items, such as jewelry and family photos.
Fix the obvious. Paint the peeling eaves, apply a fresh coat of paint to the interior and clean the carpet, especially if there are pets in the house.
Homes with dogs and/or cats immediately lose half the buyers on the market because of odors and allergies.
When the house is being shown, homeowners should leave and take their pets with them. Buyers do not want to feel like intruders by opening closets and cabinets.
Sprucing up flower boxes, adding new mulch, and trimming bushes are all recommended to increase curb appeal.

5 Things Most Don't Know About Cars . . .

Windshield wipers were invented by a woman. Mary Anderson patented the invention in 1905.
Ferrari sells about 6,400 cars a year.
Drivers kill more deer than hunters.
The first auto race was in 1895 when Frank Duryea won over 2 other gasoline-powered cars and 2 electric.
Car radios were invented in 1929 by Paul Galvin, who also coined the name Motorola.

Talking Points

Some borrowers who have sold their homes through short sales may be eager to buy another home while interest rates are still low. However, these borrowers should be aware of the downside of trying to purchase a home right away.
While banks are starting to lend again to those who have worked to polish their tarnished credit, and once-wary investors are starting to show renewed interest in sub-prime mortgage bonds, buyers who simply can’t wait will have to pay high interest rates and likely a down payment of at least 30 percent.
Working with a private lender is one option, but borrowers should first check to make sure that the lender is licensed to provide mortgages by searching the Nationwide Mortgage Licensing System & Registry.
Borrowers who kept their mortgage payments current until the closing of the short sale also may be able to get a Federal Housing Administration loan. If the mortgage was in default though, an FHA loan is not possible for three years.

Talking Points

Homeowners should be aware of these tax breaks that they may be eligible to receive.

Mortgage interest: Homeowners are generally entitled to reduce their taxable income by the amount of mortgage interest they pay, as long as they itemize deductions on their tax returns.

Private mortgage insurance: Homeowners who are paying PMI likely will be able to fully deduct the amount, as long as their adjusted gross income is $100,000 or less ($50,000 for married taxpayers filing separately). Borrowers with incomes above $100,000 may qualify for a partial deduction.

Energy-efficient home improvements: If windows, doors, or skylights that meet the requirements of the federal Energy Star program were installed in 2011, homeowners can get a tax credit equal to 10 percent of the product’s costs.

Points: The charges a borrower paid in points to get a mortgage are generally deductible if it was a first mortgage on the property. In the case of a refinance loan, all or some of the point charges might be deductible, but it gets complicated.

Property taxes: The amount paid in property taxes is deductible as long as it is based on the assessed value of the property. If the mortgage company collects money for property taxes, the amount actually paid should be on the 1098 form lenders send out each January.

Consumer Protection Working Group launched to Combat Consumer Fraud

The Consumer Protection Working Group, formed under President Barack Obama’s Financial Fraud Enforcement Task Force (FFETF), recently convened its first meeting to address consumer fraud, which can financially cripple households and can cause extensive losses to the economy.

The newly created group will work across federal law enforcement and regulatory agencies, and with state and local partners, to strengthen efforts to address consumer-related fraud, including schemes targeting vulnerable populations, such as the unemployed, those in need of payday loans, and those suffering from the burden of high credit card and other debt. The new working group will also focus on scams that exploit prospective students, active-duty military personnel and veterans.

More info

The San Francisco Chronicle

Home seizures may jump 25 percent this year
Banks may seize more than 1 million U.S. homes this year after legal scrutiny of their foreclosure practices slowed actions against delinquent property owners in 2011, RealtyTrac said.

Read the full story

The Mercury News

Mortgage rate drop sparks refinancing wave
Historically low interest rates coupled with a strengthening economy are getting the new year off to a fast start, stirring hopes that the housing and mortgage markets may finally come to life in 2012.

Read the full story

The Wall Street Journal

Five issues for housing in 2012
Just as in 2011, in 2012 many will be trying to figure out where housing is headed. While the housing market didn’t worsen in 2011, it also didn’t stabilize either. This year, the story will be about local markets. While many housing markets rose and fell together, they’re recovering at difference paces so talking about housing on a national level is not beneficial.

Making sense of the story

Confidence and jobs: Housing is more affordable than it has been in decades, but many would-be buyers are worried about buying today if prices are going to be lower tomorrow. Still, others don’t want to buy a house until they have more evidence that they’re not going to get laid off or see their hours cut back.
Foreclosures: Banks and other mortgage investors own around 440,000 foreclosed properties, but there’s another 3.4 million loans in foreclosure or serious delinquency, according to estimates by Barclays Capital. Because banks are faster to cut prices to unload inventory than are traditional sellers, home values can fall further as the share of distressed sales rises.
Rents: If low mortgage rates aren’t enough to give urgency to would-be buyers, rent hikes could accelerate buyers’ decisions to take the plunge.
Mortgage credit and rates: It’s still hard for many buyers to get approved for a mortgage because banks are demanding lots of documentation of borrowers’ incomes.
Regulation: Many analysts don’t expect Congress to make major changes to Fannie Mae and Freddie Mac during the election year, but several major regulatory changes could significantly reshape the future of the lending landscape in 2012.
Meanwhile, the regulator that oversees Fannie and Freddie is revamping the way that mortgage companies are paid for collecting loan payments. This could lead to a broader shakeup in the mortgage industry that ultimately influences how much borrowers are charged for mortgages and how banks handle loans that fall into delinquency.

California house sales up, prices down

California home sales posted an increase both on a monthly and annual basis in November, marking the fifth consecutive month of year-to-year sales increases, according to figures released today from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). Meanwhile, the statewide median price of an existing, single-family detached home sold in California rose 1 percent compared with October, but declined 5.2 percent compared with a year earlier.

Making sense of the story

Closed escrow sales of existing, single-family detached homes in California rose to a seasonally adjusted 503,570 units in November, up 2.1 percent from a revised 493,140 in October, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.

November home sales also were up 2.3 percent from the revised 492,040 units sold during the like period a year ago. The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the November pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The November statewide median price of an existing, single-family detached home sold in California was $280,960, up 1 percent from $278,060 in October but down 5.2 percent from the $296,480 median price recorded for November 2010.

The Unsold Inventory Index for existing, single-family detached homes was 5 months in November, down from 5.3 months in October and down from a 6.2-month supply in November 2010. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

Talking Points

Traditionally, the period between Thanksgiving and New Year’s is the slowest time of the year for home shopping. However, homeowners who must sell in the winter can use staging, the reduced competition and some seasonal opportunities to their advantage.
Remembering the basics is key. Taking care of needed maintenance and repairs is obligatory in any season. A thorough cleaning and decluttering are equally essential. Tidying up the yard and touching up the exterior appearance to improve curb appeal also can make the difference between deal or no deal.
Home staging takes on a new focus in winter. Rearranging the furniture and applying a fresh coat of paint to any room are just as important. But to convey a cozy impression in the winter, it may befit homeowners to turn up the thermostat and have a fire in the fireplace for open houses.

California REALTORS® win Good Neighbor Awards

California REALTORS® Marta Karpiel of Carmel and Wayne J. Shaffer of Santa Cruz were recently selected by NAR as two of this year’s Good Neighbor Awards winners.

Marta Karpiel’s personal donations have helped remove more than 350 landmines in Cambodia through the nonprofit, Freedom Fields USA. She developed a successful fundraising tool in the form of a map that lets donors choose the parcels of land that they are funding to clear, which has raised more than $250,000. She also handles all the marketing and promotion for the organization and secured a $50,000 grant from the U.S. State Department. Karpiel raised money to build a school on cleared land and provide backpacks, books and supplies for 200 children.

For more than three decades, Wayne J. Shaffer has been serving the poor and homeless of Santa Cruz, Calif. He is cofounder and president of St. Francis Catholic Kitchen, where he has volunteered since 1982. He went on to cofound Jesus Mary Joseph Home, a shelter for women and children. And in 2000, after meeting a soup kitchen client who was pregnant and living in her car, he founded Siena House Maternity Home, which provides emergency shelter, pre- and post-natal care, parenting skills, training and counseling for women experiencing a crisis pregnancy.

The Good Neighbor Awards have been granted annually since 2000 and are presented by NAR’s REALTOR® Magazine. Winners receive a $10,000 grant for their charity and a $2,000 Lowe’s gift card, and are profiled in the November-December issue of REALTOR® Magazine.

SAVING YOU MONEY

Bundling’s Not Always Best! Earlier this month, Gov. Brown signed AB 771 into law, preventing home buyers in common interest developments (CID), such as condominiums or townhomes, from being charged excess document fees.

Homeowner associations (HOAs) are required to provide specific documents to prospective purchasers of homes in a CID. Current law requires that this information come from the HOA and prohibits it from charging fees in excess of what is “reasonable,” not to exceed the actual cost of processing and producing these documents. HOAs generally have provided the documents for approximately $75 to $250. Increasingly, HOAs have been delegating document preparations to third party vendors or contractors who, under a 2007 court decision, are exempt from this fee limitation. This delegation of responsibility by HOAs sometimes resulted in home purchasers being forced to pay additional fees, as much as $1,000, for other documents which were “bundled” with the required documents.

AB 771 addresses this situation by specifying that only fees for the required documents may be charged when such documents are provided, effectively prohibiting any “bundling” of fees for other documents with these fees.

USA Today

Coming loan changes could squeeze high-priced home markets
Starting Oct. 1, Fannie Mae and Freddie Mac will cut the size of loans they buy from lenders. That will force many future borrowers into more expensive and harder-to-get jumbo loans.

Home buyer tax credit repayment begins for 2008 buyers

Most home buyers who claimed the federal tax credit of up to $7,500 for buying their first home in 2008 are required to start repaying the credit in 15 annual installments, beginning with their 2010 tax returns.

The credit—some form of which was offered for qualified home purchases in 2008, 2009, and 2010—has different repayment rules depending on when and under what circumstances the home was purchased. As tax season approaches, this may cause confusion among home buyers who received the tax credit.

The IRS is sending a letter to taxpayers who claimed the credit that explains if, when, and how the buyer has to repay the credit. There are different IRS letters for different situations, including a purchase of a home in 2008, 2009, or 2010; a sale of a main home; or a change in the use of the main home.

The IRS website at www.irs.gov contains detailed information about repayment requirements for the federal home buyer tax credit. For information about the tax benefits of homeownership, go to NAHB's website www.SaveMyMortgageInterestDeduction.com.

01/29/11

The Wall Street Journal

JP Morgan admits wrongful military foreclosures
J.P. Morgan Chase & Co. admitted that it wrongly foreclosed on 14 active-service military families and overcharged thousands more on their mortgages, a continuing internal bank review has found.

Read the full story

01/21/11

A little-known strategy for cutting mortgage payments

Homeowners looking to lower their monthly mortgage payments and reduce their interest rate may be able to do so without refinancing. A little-known strategy called recasting or re-amortization is available through some mortgage lenders and servicers, and eliminates the hefty fees and daunting credit requirements of refinancing.

Re-amortization requires borrowers pay off a lump sum of the principal amount on the mortgage and asking to have the monthly payments reset according to the original interest rate and loan terms. The lump sum reduces the principal, so the new monthly payments decrease slightly and interest paid over the life of the loan is reduced.
Lenders typically charge an administrative fee of $150 or more to re-amortize a mortgage; however, borrowers are not required to pay closing costs or submit to another credit check.
Re-amortizing works well for homeowners unable to qualify for refinancing, especially those who are self employed or have low poor credit.
Homeowners consider re-amortizing their mortgage should be aware that some lenders require a minimum amount to be paid toward the principal in the lump sum. JPMorgan Chase, for example, charges a $150 fee and requires a minimum $5,000 payment toward the principal.
Another challenge is finding a lender, or loan servicer, that offers re-amortizing. JPMorgan Chase and Bank of America exclude loans backed by the Federal Housing Administration and Dept. of Veterans Affairs, and loans that were sold off and securitized may also need investor approval.

cool:

http://www.moillusions.com/2006/06/still-life-preformance-by-johan.html

SPAM Email

Some things to be aware of when replying to and forwarding outside emails within Outlook!

1) Any time you see an E-Mail that says forward this on to '10' of your friends, sign this petition, or you'll get bad luck, good luck, or whatever, it almost always has an E-Mail tracker program attached that tracks the cookies and E-Mails of those folks you forward to. The host sender is getting a copy each time it gets forwarded and then is able to get lists of 'active' E-Mails to use in SPAM E-Mails, or sell to other spammers.

2) Almost all E-Mails that ask you to add your name and forward on to others are similar to that mass letter years ago that asked people to send business cards to the little kid in Florida who wanted to break the Guinness Book of Records for the most cards. All it was, and all any of this type of E-Mail is, is a way to get names and 'cookie' tracking information for telemarketers and spammers - - to valid date active E-Mail accounts for their own profitable purposes.

Crime Reports

They categorize the crimes for your neighborhood and the information you receive is derived from the SJ Police Department and it is free (You could also subscribe to auto emails regarding a specific address).

https://www.crimereports.com/

Home buyers may find the time is right
Low interest rates, affordable home prices, and rising rents. Is now the time to buy a house? Owning is a more attractive proposition than renting in many – perhaps even most – U.S. cities.

http://www.mercurynews.com/real-estate/ci_22793032/real-estate-watch-home-buyers-may-find-time

Good news about real estate: Home equity is growing again:

http://articles.latimes.com/2013/jan/06/business/la-fi-harney-20130106

Ten banks to pay $8.5 billion to settle foreclosure abuse review
Ten of the nation’s largest mortgage servicers have agreed to an $8.5-billion settlement with federal regulators to end a review of foreclosure abuses.

http://www.latimes.com/business/la-fi-mo-foreclosure-settlement-banks-20130107,0,1402857.story

What that Front Door Color Might Say About a Home according to the Paint Quality Institute:

    Blue: Conveys a place of refuge or retreat
    Green: Projects health, tranquility, and harmony
    Black: Projects strength, power, and authority
    Red: Conveys passion, energy, and excitement
    Brown: Offers a natural look that can convey warmth, stability, and reliability

Talking Points

Buying a home is one of the biggest financial decisions a person will ever make, and that means he should take time to not only get the best rate on an insurance policy, but also the best policy for his lifestyle and home.
Because a home insurance policy will protect a homeowner against financial loss from things such as theft, fire, flood, and other liabilities on the property, it’s important to get the right policy.
Purchase enough insurance in the event of a total loss, according to the Insurance Information Institute (III), which provides insurance information to the public, media, and government regulatory agencies.
Because home insurance also covers a homeowner’s possessions, the contents of the home should also be included for the estimate.
To get the best rate possible, a homeowner should take the highest deductible with which he’s comfortable. The deductible is the amount a homeowner pays out of pocket before insurance coverage is paid.
The III says that since most people only file a claim every eight to 10 years, having a higher deductible saves money over time and preserves the insurance for when it’s really needed.

Help with a down payment
With most lenders requiring borrowers to put down at least 20 percent as a down payment – unless using an FHA or VA loan, or purchasing mortgage insurance – the best holiday gift some people might receive would be help with a down payment on a house.

Making sense of the story

According to a survey by Trulia, the biggest barrier to buying a home these days is saving for the down payment. The survey, conducted over the summer, found that 51 percent of renters said coming up with money for the down payment was preventing them from buying, while 35 percent identified qualifying for a mortgage as the stumbling block.
Under federal tax law, each individual is permitted to give money or valuables worth up to $13,000 to a single recipient in a calendar year. A married couple could jointly bestow up to $26,000 a year per recipient.
According to one financial planner, there also is the option of lending a relative or close friend the money for the down payment, or the closing costs, then forgiving the loan in a future year. The recipient would have to pay interest on the loan until it was forgiven, at which point it would become a gift.
Another way to help with the down payment is to pay other expenses, such as tuition, thereby freeing up money to make a home purchase. Gifts for educational or medical expenses are not subject to taxes, as long as they are paid directly to the educational or medical institution.
However, prior to giving the money, gift-givers should consider their own financial picture, and they should make sure the recipient is responsible and not behind on other payments that could be subject to debt collection.

Asking prices, rents rise in October:

Asking prices on for-sale homes which lead sales prices by approximately two or more months increased 2.9 percent year over year in October, according to Trulia’s Price Monitor. Monthly, asking prices rose 0.7 percent.

Nationally, rent gains continued to outpace home price increases in October, rising 5.1 percent year-over-year. Rent growth in Oakland, Denver, and San Francisco accompanied strong for-sale price growth, while in Chicago and Philadelphia rents rose despite falling prices.

List of improving housing markets expands in November:

The number of U.S. housing markets showing consistent improvement in three key measures of strength increased to 125 in November, according to the National Association of Home Builders/First American Improving Markets Index (IMI). This marks the third consecutive monthly gain for the index, which now includes representatives from across 38 states as well as the District of Columbia.

The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment, and house prices for at least six consecutive months. Markets added to the list in November include San Diego, Calif.; Gainesville, Ga.; Omaha, Neb.; Louisville, Ky.; and Charlotte, N.C.

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, housing price appreciation from Freddie Mac, and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metropolitan area must see improvement in all three measures for at least six consecutive months following those measures’ respective troughs before being included on the improving markets list.

Talking Points

When it comes to assessing a home’s value, homeowners tend to be overly optimistic. However, appraisers are much more cautious, as they have to predict a realistic value for the home that the bank can use to extend credit to a buyer.

There are five areas where homeowners often misjudge the worth of their abode: The outside, basic systems, the basement, the market, and a remodel.

On the outside, if an appraiser sees overgrown bushes and chipped paint, he is likely to slice as much as 3 percent off the value of an average-size home. According to one appraisal firm, that’s because curb appeal is important, and an unkempt yard is a sign that there may be other issues.

A brand-new roof generally does not affect the value an appraiser assigns a house; however, if a roof is in disrepair, a homeowner should replace it to increase the chances of a buyer making an offer.

A recently finished basement with a half bath can add as much as 2 percent to the value of a home, but homeowners shouldn’t expect the value to increase as much as it would with the addition of first-floor space, which can increase value by as much as 20 percent.

Although similar homes in the area may have recently gone into contract for more than the asking price, this will have little to no effect on the value an appraiser assigns a house. Appraisers are bound by the data of recent comparable sales, meaning he must abide by the actual sale prices of homes in the area.

An expensive, custom-made, built-in entertainment center may be perfect for the current homeowners, but it could lead the appraiser to make a negative adjustment to the valuation because cost doesn’t equal value. Renovations that are trendy will be assessed at the cost of ripping them out. Timeless improvements, however, such as deep sinks or new wooden cabinets will add value.

Talking Points

The recent spate of earthquakes throughout Southern California is a good reminder of the importance to be prepared and create a plan.

For parents, knowing the policies of the school or daycare center where the children attend is essential. Parents should make plans to have someone pick up the children if they are unable to get to them.

If there is a family member who does not speak English, it is important that he or she carry an emergency card written in English indicating the person’s identification, address, and any special needs such as medication or allergies.

Talking Points

As home sales increase and contractors see improving business conditions ahead, remodeling activity in the U.S. is expected to grow by the end of this year and into 2013, according to the Leading Indicator of Remodeling Activity (LIRA) released today by Joint Center for Housing Studies at Harvard University.

Homeowners planning to renovate a home built before 1978 need to be aware that there are regulations concerning dust and other materials containing lead, a toxic substance formerly used in paint.

A contractor hired to remodel more than 6 square feet indoors in homes, schools, or child-care facilities built before 1978 must be, by law, trained and certified in proper practices.

Renovators must give homeowners and tenants a copy of an Environmental Protection Agency (EPA) pamphlet called “The Lead-Safe Certified Guide to Renovate Right,” which also can be read online.

The EPA recommends that a contract with a renovator spell out how dust will be handled and prevented from spreading. The contract also should specify that the contractor will clean up the work area, verify that it was cleaned adequately, and clean it again if necessary.

Talking Points

It has become standard practice for lenders to check borrowers’ credit scores in the weeks leading up to the closing, sometimes even the day prior to closing.
Large purchases can use up a considerable proportion of a borrower’s total credit limit, which can lead to a drop in the borrower’s FICO score and possibly change the terms of the loan.
Home buyers waiting for a mortgage loan to fund are advised to be conservative when it comes to buying new furniture, appliances, or the like for the house they are purchasing.

App lets homeowners compare energy use with neighbors:

Facebook, the Natural Resources Defense Council (NRDC) and Opower have joined with 16 utilities to launch a social energy app that leverages the Facebook platform to allow people to quickly and easily start benchmarking their home’s energy usage against similar homes, compare energy use with friends, enter energy-saving competitions, and share tips on how to become more energy efficient.

Talking Points

Owners of vacation homes, or those thinking of renting out their second homes as vacation rentals, must know the tax rules on rental income from second homes.

One of the best tax code’s freebies allows homeowners who rent out their property for 14 or fewer days a year to pocket the rental income, tax-free. It’s available to anyone renting out a home, and the income doesn’t have to be reported on the owner’s tax return as long as the rental period is 14 or fewer days. The taxpayer can’t take depreciation or maintenance deductions but can deduct mortgage interest and property taxes on Schedule A.

Things get much more complicated if a home is “mixed use,” meaning the owner uses it himself and rents it out. In that case, he has to count the rental days and determine what percentage they are of the total number of days the property was used. That gives the percentage of expenses such as maintenance, utilities, property taxes, mortgage interest, and depreciation that are deductible from the rental income.

For more information about the tax rules of renting out a vacation home, please visit http://on.car.org/Rm8SdY.

Real Estate Q & A . . .

Q. If I get multiple offers on my house, how do I decide which offer to accept?

A. Multiple offers are a good thing. Still you can make a mistake if you don't look at more than just the sales price being offered. Carefully weigh each buyer's offer by considering these factors:

Is the buyer pre-approved? Never take your home off the market without knowing that the buyer is able to purchase your home.

When do they want possession? When the buyer's timing fits your preferences, it can make their offer more appealing.

What repairs does the buyer expect before closing? Even if you are willing to make repairs, think about the time it will take before you accept.

What items does the buyer expect to remain in the house? Buyers may request to keep appliances or wall-mounted televisions. Factor the cost of replacing these in your next home into the offer before accepting.

It is important to know all the facts before you respond to any offers

Talking Points

The greatest hindrance to the sale of a home can be a seller who is seized by emotion. Home sellers who allow emotions and sentimental attachments to overtake them during the sales process run the risk of making hasty, sometimes poor decisions.
One is to overprice the property. Getting top dollar is the dream of every home seller, but getting a buyer to pay a premium for features that are valuable only to the seller is closer to a fantasy.
The truth is, prices have nothing to do with the seller’s emotional affinity for the property. It’s important sellers understand that as early as possible.
Sellers who bought at the top of the market likely won’t see that same price from today’s buyers.

The Orange County Register

Calif. house price drop 7th biggest in U.S.
California house prices had the seventh-biggest price drop among U.S. states in November, falling 5.9 percent from year-ago levels, according to data firm CoreLogic

Read the full story

San Francisco Chronicle

Fed to regularly forecast interest-rate changes
In a major shift, the Federal Reserve will start announcing four times a year how long it plans to keep short-term interest rates at existing levels, according to minutes from its December policy meeting.

Read the full story

Talking Points

In coming weeks, federal policy makers could roll out pilot programs to further test the concept of renting out single-family homes.
There are two different types of programs that officials are likely to consider. Under the first, the Federal Housing Administration could sell properties in bulk to investors who agree to rent them out.
A more likely option for Fannie Mae and Freddie Mac would be to set up pools of properties in which third-party investors would take a stake. Investors could be responsible for handling maintenance and day-to-day operation of the rental pool, with Fannie and Freddie sharing in some of the returns.
Read more about the pilot programs at http://blogs.wsj.com/developments/2012/01/12/six-questions-on-foreclosure-to-rental-programs/.

Talking Points

When the new year arrives, promises and resolutions abound, but few include home improvement. Here are resolutions every homeowner should make.
Cut energy use: Sealing and insulating ductwork can improve the efficiency of a heating and cooling system by as much as 20 percent, saving $200 per year or more, according to Energy Star.
Budget for home improvements: Creating a yearly budget for home improvement and maintenance helps prevent overspending, and encourages homeowners to put aside money for major replacements — such as new roofing or a kitchen appliance — that come up every few years.
Curb water use: The average household uses about 400 gallons of water each day, or almost $700 per year in water and sewer costs. Making a few simple changes, such as installing EPA-certified WaterSense products, could trim up to $200 annually from the water bill. Add to that energy savings from reduced costs to heat water, and the yearly savings could reach $300 or more per year.

alking Points

Installing home solar panels can cut your electric bill and shrink your carbon footprint. But the upfront costs of buying and installing a system can be considerable, even with government rebates. the cost and return from adding solar panels, and whether the home's roof is positioned to benefit from them, are some key factors to examine before making the move.
Those who have a section of roof that faces south with few obstructions, such as tall buildings or trees will benefit the most from installing solar panels.
Once the estimate for how big of a system is needed, an online calculator can be used at to help determine costs and how long it will take to make back the investment. The calculator takes into consideration equipment costs, loan interest rates, tax savings and more. One example of a calculator is http://www.consumerenergycenter.org/renewables/estimator.
Government programs can provide significant financial breaks on the system, but these offers frequently change. The http://www.dsireusa.org site has information on what's currently available in the area. Homeowners also should check with their local utility company.
An average home solar-panel installation can cost $20,000 or more, even after incentives, according to the Department of Energy. An alternative is to have a leasing company, such as SolarCity, install the system at no cost to the homeowner, and bill for the system monthly. In many cases, the electricity cost will be lower, but the system won’t be owned.
Rebates and other incentives are generally available only if the homeowner uses a licensed contractor or does the job themselves. When hiring a contractor, ensure his or her state license is valid by doing an "instant license check" at http://www.cslb.ca.gov.

Talking Points

Many homeowners considering a renovation think they will retrieve the costs when they sell. However, unless homeowners keep these projects practical, it is unlikely they will recoup the costs later on.
Some renovations are more likely to increase the value of the property, while others are more for the homeowner’s enjoyment. For example, a steel front door can be a good investment, while a master suite addition generally is not.
Each year, Remodeling Magazine looks at the hottest home upgrades and calculates the amount the owners are likely to get back when they sell. To see the 2011 Remodeling Magazine report, visit http://www.remodeling.hw.net/2011/costvsvalue/national.aspx

EIGHT SECRETS TO CAREER SUCCESS IN THIS MARKET

Follow these tips and make sure you live up to your career potential:

1. Motivation is everything. The talent you possess in your career can be irrelevant if you’re not motivated to use it. Getting satisfaction from a job well done will result in consistent performance and career longevity.

2. Think it through. Impulsiveness can get in the way of your optimal performance. The first solution you come up with might not always be the best, so bring your full intellectual resources to bear on a problem and translate your thought into action. Avoid becoming hopelessly enmeshed in details and make sure you stay focused on the big picture.

3. Don't give up. Perseverance can be the equivalent of preservation. Spend less time focusing on the problem and direct your energy toward overcoming the issues.

4. Translate thought into action. You come up with great ideas so do something about them! Initiate that project and don’t depend on others to accomplish what you should be tackling yourself. Avoiding the challenge won’t help you reach your peak performance.

5. You can't take it all on. Spreading yourself too thin by undertaking more than your fair share can result in fewer tasks being completed on time.

6. Maintain your perspective. Let's face it, life is going to happen. You're going to experience ups and downs, joys and sorrows. It's often difficult, but learning to put your personal difficulties aside will help you focus on the work at hand and maintain a better balance.

7. Procrastination = missed opportunities. If you find yourself unable to act without a certain amount of pressure or in search of minor tasks in order to avoid the big ones, you need to regain your focus. Distractions inevitably lead to reduced levels of accomplishment.

8. Get to know yourself. A lack of self-confidence can gnaw away at your ability to get things done and can ultimately become a self-fulfilling prophecy. On the other side of that coin, know where your strengths lie and be willing to admit when you might be wrong or in need of self-improvement.

The Wall Street Journal

Tying health problems to rise in home foreclosures
New research by two economists show a direct correlation between foreclosure rates and the health of residents in Arizona, California, Florida, and New Jersey.

The Mercury News

Robo-signed mortgages date back more than a decade, possibly invalidating deeds
Counties across the U.S. are discovering that illegal or questionable mortgage paperwork is far more widespread than first thought, tainting the deeds of tens of thousands of homes dating to the late 1990s.

Americans still view homeownership as part of “American Dream”

Despite the high number of foreclosures and underwater homes in the current housing market, 70 percent of Americans still view homeownership as being part of their American Dream, according to a survey by Trulia.com. Nearly 80 percent of respondents say their homes are the best investment they ever made. Conversely, only 20 percent feel trapped in their “underwater” homes, while 14 percent said they would walk away from their homes in a heartbeat if they could.

Although many of today’s young adults came of age during the decline of housing market, 26 percent say their views on owning a home have become more positive over the past six months. With 88 percent of 18-34 year old renters aspiring to be homeowners, this new generation of buyers will likely play a crucial role in stabilizing today’s uncertain real estate market.

01/29/11

Los Angeles Times

Lenders’ data mining goes deep
Mortgage makers are going beyond tax returns and bank statements to determine whether you’re a good risk. They’re checking such things as where you have pizza delivered and where you shop online.

To read the full story, please click here.

01/29/11

The New York Times

More transparency for variable-rate loans
Changes to the Truth in Lending Act have helped make loan documents more understandable for many borrowers, but some people with more complicated, fluctuating mortgages may still struggle to grasp all the terms.

Read the full story

01/21/11

CNN Money

Existing home sales jump 12 percent

Sales of existing homes jumped in December, marking the fifth month of gains in the past six months, based on an industry report released Thursday.

01,21,11

Smart people are buying real estate

A prominent hedge-fund manager said in a speech last fall: “If you don’t own a home, buy one. If you own a home, buy another one, and if you own two homes, buy a third and lend your relatives the money to buy a home.” He believes that interest rates and home prices will rise this year, so real estate bargains won’t last much longer.

Interesting pictures - Obama's inauguration

http://www.boston.com/bigpicture/2009/01/the_inauguration_of_president.html

Please take 10 minutes out of your busy schedule and watch this video. It explains that the tires on your vehicle have an expiry date!!

http://abcnews.go.com/Video/playerIndex?id=4826897&affil=kabc

After watching this, please take another 30 seconds and share this with your family and friends. You could save someone?s life!

What a cell phone's magnetic field can do.

http://fun.mivzakon.co.il/flash/20534/20534.html

Food Patterns of our Body Featuring Enya Metamorphosis:

'http://uk.youtube.com/watch?v=EAn1YHXQUhI'

An Amazing Mother:

http://uk.youtube.com/watch?v=Gkrajf-Y7xI&feature=related

Supermarket Secrets:

http://video.google.com/videoplay?docid=-5774892958354867332&q=&hl=en

http://video.google.com/videoplay?docid=3486838871531386599&q=&hl=en

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Did You Know?

http://www.info.gov/

Home Prices Poised for Growth in 2013 listing prices were up 5.1%nationally in December﻿

Home PS

Crime Reports

They categorize the crimes for your neighborhood and the information you receive is derived from the SJ Police Department and it is free (You could also subscribe to auto emails regarding a specific address).﻿

Home Prices Poised for Growth in 2013 listing prices were up 5.1%nationally in December

They categorize the crimes for your neighborhood and the information you receive is derived from the SJ Police Department and it is free (You could also subscribe to auto emails regarding a specific address).