San Diego Real Estate Blog

• Accurately pricing a home for sale continues to be one of the most important factors in determining whether a home sells or lingers on the market.  In some cases, sellers may need to reduce their asking price to attract buyers and offers.  Some homeowners may struggle with determining whether or not they should reduce their list price.  Receiving the guidance of a REALTOR® may help sellers decide if they should reduce the asking price.  Sellers also may want to consider reducing their asking price if the following applies:

                    The sales prices of recently sold homes in the area are
                    lower than the list price of the home listed for sale.

                    Feedback from buyers’ agents suggests the home is
                    overpriced.

                    The home isn’t receiving any showings, even though it is
                    well marketed.

                    There have been multiple offers, but they consistently have
                    been significantly lower than the list price.

PLEASE CONTACT ME TO EVALUATE THE VALUE OF YOUR HOME

LEONARDO.GONZALEZ@CENTURY21.COM

dIRECT: 619-709-2042

MAKING SENSE OF THE STORY FOR CONSUMERS

• Generally, lenders order a low-cost electronic valuation—based on publicly available statistical data—to review the accuracy of the information submitted by the appraiser. If there is a discrepancy between the electronic valuation and the appraiser’s report, the lender’s underwriters may reduce the appraisal figure.
  
  
• In some instances, real estate agents and consumers have reported that reduced appraisals have led to the derailment of home sales transactions, as some buyers refuse to pay more for a house than the appraisal says it is worth.
  
  
• This industry practice may soon change. In guidelines issued June 30, Fannie Mae said lenders must contact appraisers to resolve discrepancies between the valuations, rather than simply reducing the appraisal. If it is not possible to contact the appraiser, the lender should order a second appraisal.
  
  
• Borrowers and/or sellers who believe a home valuation is too low may appeal the valuation or request a second option. It’s important to note that the second valuation must be more than five percent higher than the first—anything less is considered an acceptable difference.

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Mortgage rates: Week ending 6/24/2010 30-yr. fixed: 4.69 Fees/points: 0.7% 15-yr. fixed: 4.13% Fees/points: 0.6% 1-yr. adjustable: 3.77% Fees/points: 0.7% (Source: Freddie Mac)

Congress has passed a bill to give homebuyers another three months to close on their home loans and receive tax credits up to $8,000. The bill applies ONLY to homebuyers who met the April 30, 2010, deadline with a signed contract to purchase a new or existing primary residence. The bill would extend the deadline to September 30, 2010, for homebuyers to close on their real estate transaction. The previous deadline was June 30, 2010. President Obama is expected to sign the measure into law.

The National Association of Realtors estimates that as many as 180,000 homebuyers who met the contract deadline of April 30, 2010, may be affected by the extension. They will now have additional time to close their transactions.

Even if you have clients in your pipeline who may not qualify for the homebuyer tax credit, there is still a tremendous opportunity available through the combination of low home prices and historically low interest rates. Encourage your buyers to act now on this opportunity before market conditions change.

PLEASE CONTACT US FOR MORE INFORMATION

The above content is for informational purposes only and should not be used as a substitute for consultation with a tax advisor.

Both the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the NATIONAL ASSOCIATION OF REALTORS® (NAR) released monthly housing reports this week. However, each report told a different story about the housing market. Nationally, home sales declined but in California home sales rose 14.1 percent in May compared with April and 1.2 percent compared with April 2009.

MAKING SENSE OF THE STORY FOR CONSUMERS

• The median price of existing single-family homes in California in May was $324,430, a 23.2 percent increase compared with a median price of $263,440 in May 2009, C.A.R. reported. The May 2010 median price increased 5.9 percent compared with April’s $306,230 median price.

• While home prices are rising month-over-month and year-over-year, affordability continues to remain at near-record highs. In the first quarter of 2010, 66 percent of first-time home buyers in California could afford to purchase an entry-level home in the state, according to C.A.R.’s First-time Buyer Housing Affordability Index.

• Many first-time home buyers in California timed the opening and closing of escrow to capitalize on both the federal and state tax credits, helping propel home sales in May. Although sales rose in May, the number of home buyers signing sales contracts declined nearly 17 percent compared with April, which C.A.R. Chief Economist Leslie Appleton-Young attributed to the ending of the federal tax credit. “Although there may be a lessening of demand compared with the first half of this year, the number of escrows opened on a year-to-date basis is about the same as last year, and sales for all of 2010 will be on a par or slightly below last year,” said Appleton-Young.

• Despite the number of foreclosures listed for sale, the inventory of homes for sale still is below the long-run average of 7-months, according to C.A.R. In May, C.A.R.’s Unsold Inventory Index for existing, single-family detached homes was 4.6 months, unchanged from the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

Market Matters is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide.

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Leonardo Gonzalez

http://www.ChulaVistaCommunities.com/