Peninsula Homes-San Mateo and Santa Clara County Real Estate News and Market Information

Latest Real Estate Market News

2010-10-28T15:48:00.000-07:00

BEYOND THE HEADLINES

read the latest info on Cost of No Cost Loans and the latest home sales data.

California Poppy Day

2010-04-06T17:41:00.000-07:00

Welcome Spring! Look for more active blog updates soon from Annette Schendel, Realtor!

OPPORTUNITY KNOCKS- Home buyer tax credit!

2008-11-11T08:39:00.000-08:00

6 KEY FACTS ABOUT FIRST TIME HOME BUYER TAX CREDIT!

1. Buyers have until July 2009 to make a purchase that qualifies.
The tax credit was passed in July of this year as part of the Housing and Economic Recovery Act (H.R. 3221). It’s worth up to $7,500 and can be taken in a single tax year. Authorization for the credit ends July 1, 2009, so if you wait to buy in the first half of 2009 you can take the credit on your 2009 tax return. Taxpayers can take the credit on their 2008 tax return if they bought their house this year after April 9.

2. Buyers don't really have to be "first-timers."
The tax credit is actually available to any individual or household that hasn’t owned a home for at least three years. And the NATIONAL ASSOCIATION OF REALTORS® has asked Congress to expand the credit to all buyers, not just those who haven't owned a primary residence in recent years.

3. Even if buyers exceed the income limit, they can benefit from the credit.
The actual credit amount is set as a percentage of the home purchase amount. That percentage amount is 10 percent, so your customers can get 10 percent of the home price credited against their tax liability, up to a maximum $7,500. Sounds like a great deal. But what if your clients make more money than the income limit of $75,000 for individuals and $150,000 for households? Good news: Individuals whose income exceeds the $75,000 limit but don't make more than $95,000 can still take the credit but on a reduced basis. The same thing applies to households earning up to $170,000. By the way, any house is eligible as long as it’s a primary residence and is in the United States.

4. Think of it as an interest-free loan.
The federal government requires the tax credit to be paid back in small, 6.67-percent increments over 15 years, although repayment will be no more than $500 yearly and payments will not start until 2011. For that reason, some analysts have likened the credit to a 15-year, interest-free loan to help make home buying affordable. NAR is pushing congress to remove the repayment provision, making this tax credit a true tax credit rather than an interest-free loan.

5. You don't have to be authorized before making a home purchase.
There is no pre-purchase authorization, application, or other approval process. Eligible buyers simply have to claim the credit on their IRS Form 1040 tax return and/or any form that the IRS might devise.

6. New-home construction qualifies.
For a home that a buyer constructs, the purchase date is the first date the buyer occupies the home.However, any home that is not a primary residence, such as a vacation home or income property, does not qualify.
Visit these links for more details on the tax credit!
http://www.irs.gov/newsroom/article/0,,id=186831,00.html
http://www.federalhousingtaxcredit.com/faq.php
http://www.realtor.org/gapublic.nsf/files/hbtaxcreditqa2008.pdf/$FILE/hbtaxcreditqa2008.pdf
http://www.realtor.org/GAPublic.nsf/files/chart_homebuyer_tax_credit_.pdf/$FILE/chart_homebuyer_tax_credit_.pdf
NAR Asking Congress to Expand Credit

As mentioned above, NAR has asked Congress to do away with the repayment provision of the first-time buyer tax credit and expand the credit to all home buyers, not just first-timers. The proposals were part of a four-point housing stimulus plan the association submitted in mid-October.

“Housing has always lifted the economy out of downturns, and it is imperative to get the housing market moving forward as quickly as possible,” said NAR President Richard F. Gaylord. “It is vital to the economy that Congress take specific actions to boost the confidence of potential homebuyers in the housing market and make it easier for qualified buyers to get safe and affordable mortgage loans.

Why use a REALTOR?

2008-01-16T09:18:00.000-08:00

Consult with a Real Estate Professional

Are you selling your home without consulting a professional? Think again!
SELLING WITHOUT AN AGENT MAY:
· Limit the exposure of your listing to interested buyers.
· Cause your property to stay on the market too long without getting offers.
· Force you to sell at a price below market value.
· Leave you open to liability, if you do not take the proper precautions and have an
in-depth understanding of the contracts, inspections, and procedures involved.
HERE ARE SOME QUESTIONS TO ASK YOURSELF:
· Are you pricing your home correctly? Do you know what your home is worth?
· Can you showcase your home on the Internet with the latest technological and
marketing tools like virtual tours, panoramic pictures, and open homes?
· Can you discern who is serious about buying your home vs. just looking
around?
· Are you knowledgeable about the legal, contractual, and procedural
components involved in real estate transactions?
· Do you have the time to arrange appointments and tours for the buyer?
If you are not choosing an agent, you will have to be selective in choosing a home,
skilled in negotiating the price, inspecting it to avoid problems and adept at gathering
information for an effective close.
Is commission an Issue?
Many sellers feel that they can save the real estate agent’s commission by marketing
and selling the property themselves. Pause to consider the following:
§ The agents experience and advice on how to showcase and “stage” your home
in preparation for sale will earn you more than the price of the commission by
commanding a higher selling price.
§ The agent’s ability to market your listing on the internet and to their personal
network can get you an expedient sale that could save you considerable time on
the market.
§ If your home doesn’t sell, are you prepared to keep it?
§ How long will it take you to acquire the legal, contractual, and procedural
knowledge of an experienced agent?
§ If you don’t have this knowledge, how much will your potential mistakes cost you
in terms of liabilities, lawsuits, and future contingencies with the property?

MISTAKES SELLERS MAKE

2007-10-10T15:58:00.000-07:00

Selling your home - 10 traps to avoid
Avoid the common seller mistakes to sell your home for more.
1. Is the price of your home way too high?
Overpricing is the most common reason homes don’t sell. Even if you find a buyer at
your inflated asking price, the property may not appraise at that figure and the
financing will not work. Want to find a reasonable price? Ask your agent for a CMA.
If your home remains on the market too long, agents and buyers may begin to
wonder if there are other, perhaps more serious reasons why it isn’t selling.
2. Your Home doesn’t look inviting?
Is your home competing against shiny new houses in pristine new subdivisions with
attractive prices, incentives and community amenities? Mostly even the best old
home needs a little makeover, if it hopes to attract a qualified buyer.
3. Lousy listing agent – Get Away!
It is a sorry situation to have a real estate agent who misrepresents and under
performs or even is a silent spectator to the unfortunate events. Hire an agent you
feel comfortable about representing your image and your best interests. You want
someone who can get the job done for you and represent you professionally. Here
are some common mistakes sellers make in choosing their agent:
􀀲 Making a decision at the spur of the moment without probing further and
asking more questions.
􀀲 Choosing an agent just because they agree to everything you say. Falling for
an agent who sounds like a salesperson.
􀀲 Hiring an agent without references and research about past sales, recent
customers and motivations.
Try to find an agent who is:
􀀳 Aware of the latest changes.
􀀳 Continuously updating their skills by attending seminars.
􀀳 Using technology to market homes.
4. Are you battling tough competition?
In a seller’s market, homes go fast. The number of houses on the market is low,
meaning less competition for you. But in a buyer’s market, sales are slow, the
number of homes on the market grows and buyers can find bargains, especially
when they know the seller is motivated.
5. You lack the Marketing paraphernalia and the technology that makes it ever
so simple.

Did You Know?

2007-09-27T14:38:00.000-07:00

Did you know?...

63% of most neighborhoods have at least one house that the residents feel should be better kept and maintained.

More often than not those homes go unreported and action is rarely taken and people just put up with it!

63% say they ave a sloppy neighbor

21% admit to being the actual sloppy neighbor

81% think action should be taken against the residential slob

BUT 64% say they have not yet complained about the neighbor or property in question.

*source: ServiceMagic.com, based on a poll of 900 homeowners.

PULL THE TRIGGER ON MORTGAGE TRIGGER LISTS!

2007-09-07T09:50:00.000-07:00

The Elephant in the room! All the Subprime and mortgage loan fallout in the news lately, it brings our attention to some little known ways credit/lenders work to get your business. If you are falling victim to a constant barrage of credit offers it may be due to a credit inquiry that was made when you applied for a mortgage loan or other credit product. A "Trigger List" is generated when a credit inquiry is made, like a mortage application. You can "opt out" of getting prescreened offers of credit by visiting http://www.optoutprescreen.com/, The Federal Trade Commission is telling Realtors and consumers to file complaints with the FTC if you encounter an unfair or deceptive practice relating to the use of trigger lists.

Have a great day!

Annette

Cottage on Top of the World

2007-04-05T12:06:00.000-07:00

I am sure there are plenty of other places in the western United States that boast beautiful landscapes. I just can not imagine that there are very many places that can compare to our peninsula hills. A top a hill in Portola Valley, CA, sits a cute little cottage/bungalow I have recently listed. Over the last two years I have had the pleasure of working with the seller to get the place prepared for sale and each time I have to go to the property I can not wait to hit the porch and enjoy the view. I am sure there are views all over the Bay Area, but this one just stays with you. The peaceful and serene location a top the hills just takes your breath away literally. The cottage is a little rustic, but in really well maintained condition. With small details like open beam ceilings in the living and dining area, Victorian crystal door knobs on the interior doors, and a big stone chimney off the front deck. The location of this property is very unique too. Not only is it at the top of the world, but directly across the road is a small lake/pond, with turtles, and majestic Heron that visit daily for a dip and a meal. Deer often visit too, and above you can hear a whole host of birds singing or calling out to one another. As a Realtor, it is my job to notice these simple but valuable nuances in each property I encounter. It is easy when a place like this has so many but even better when you can visit a place where you forget all the pressures below in the flats, and just Breath! Truly a Shan-gri-la. If you would like to enjoy this beautiful place just visit the virtual tour at

http://tours.tourfactory.com/tours/tour.asp?t=330531

Home Sale Tax Breaks

2006-11-30T21:36:00.000-08:00

Home Sale Tax Breaks – Find out more!
Are you filing jointly with your spouse or as a single tax payer?
How much financial gain have you made from the sale?
According to the federal Taxpayer Relief Act of 1997, when you sell your home you can keep tax-free capital gains of up to:
$ 500,000 if you are married and filing jointly and
$ 250,000 if you are filing as a single taxpayers However, you must have used your home as your principle residence for at least two of
the five years prior to the sale. What’s more, you can benefit from the exclusion as many times as you meet the qualifications. No longer only once in a lifetime! If you have sold the house before you met the two year residency requirement due to unforeseen events; such as a job change, illness or some other hardship, you can prorate the $250,000 or $500,000 exclusion. This information is based on the clarification received from The federal Internal Revenue Service Restructuring and Reform Act of 1998.
If you are a rental property owner, you can defer some capital gains tax if you purchase another rental property and qualify for a 1031 exchange.
Be aware that selling a home alone may not give you a lot of savings, especially if you are in the market for a moderately priced home. Based on the 2004 law, a single person will receive a standard deduction of $ 4,850, and the standard deduction for a married taxpayer is $ 9,700. This tax law allows you to claim either the use of the standard deduction or itemized deductions, whichever is higher. So, your itemized deductions reduce your taxable income only when they are more than the standard deduction. This information is not meant to reflect state laws or recommend strategies, but merely to promote awareness about possible tax benefits. Always consult with your tax professional about the details.
So, the next time you meet with your professional tax consultant, ask how you can claim a tax break and gain optimal benefit from selling or renting your home.

GLOSSARY OF TAX TERMS
Here are some of the tax terms you may want to read before you meet with your tax consultant:
§ Tax Credit: A tax credit is a dollar-for-dollar reduction in the amount of tax that is due. A tax credit is more valuable than a tax deduction of the same amount. An income tax credit is one that directly reduces the amount of income tax paid by offsetting other income tax liabilities.
§ Tax Rate: The rate at which the property is taxed is usually a percentage and is shown per hundred dollars of the property’s value.
§ Assessment Ratio: This ratio is a percentage of your home’s fair market value that each assessor uses to determine the property’s assessed valuation. This ratio may vary from county to county.
§ Notice of Revision: This is a notice mailed to the property owner after a property has been reassessed.

§ Uniformity: This is a legal principle that governs property tax assessments. It states that all property in a given area must be assessed at the same level. This principle of uniformity is the basis for many successful assessment appeals.

§ State Multiplier: This is the state equalization faction, a number the state assigns toeach county, depending on the assessment ratio the county uses to calculate assessed valuation. The multiplier either raises or lowers the assessed valuation to the state-mandated level. The multiplier ensures that taxpayers in each of the state’s counties pay the proportionate amount in property taxes.
§ Tax Deed: This is a type of deed used to convey title after the real property is sold at an auction by public authority for non-payment of taxes, or the instrument is used to convey legal title to property sold by a governmental unit for non-payment of taxes.
§ Tax Lien: This is a claim against real estate property for a specified amount of unpaid taxes. The government has the right to enforce a claim against the property of a person owing taxes.
§ Tax Sale: This is a public sale of property by a government authority as a result of non-payment of taxes.
"All information in this report is deemed reliable, but not guaranteed."

Home Inspection-Get it right the first time!

2006-11-16T14:13:00.000-08:00

Home Inspection – Get it right the first time!

When selling or buying a home the home inspection, if not done properly, can cost you a lot and jeopardize your bargaining position. It pays to be prepared!

An inspector who is a member of the ASHI (American Society of Home Inspectors) is a good choice. These inspectors are considered highly qualified and reliable.

Your Role in a Home Inspection:
1. Choose a home inspector who understands your situation as a home seller and is willing to guide you through the process.

2. Be prepared with questions on all the systems in the house and also the
environmental issues the buyer may be concerned about. Some of the
environmental issues may include lead paint notification, radon, UFFI and certification of the septic system.

Lead Paint: Homes built before 1978 are likely to have lead-based paint,which may lead to the risk of lead poisoning. Find out if your home falls in thiscategory.
Radon: This is a colorless, odorless, tasteless radioactive gas that comes
from the natural breakdown of uranium in rock deposits. High levels or radon
can increase the risk of lung cancer. Check your home records for any
references to radon.
UFFI: This is a type of insulation that was sprayed in the 70’s and emits a toxic gas due to which the state banned UFFI in 1979. Get more information on this if your home was built around the 70’s.

3. Get organized and compile good records of each of the components and structural elements of the house. You can create a folder with files on each of the areas and make notes. Here are some of the components you may want to begin with:
§ Foundation
§ Roof
§ Heating System
§ Air-conditioning
§ Electrical Service
§ Water Heater, Pool & Jacuzzi
§ Septic System
§ Deck
§ Garden
§ Fireplaces

4. Try to think of all the questions you may be asked. Be prepared with suitable responses to the questions below:
§ How would you describe the condition of the roof? What type of maintenance would be required going forward?
§ Based on the geographical location of the home, is any special equipment needed? Is this home equipped to handle natural occurrences like a tornado,hurricane, floods or earthquake?
§ Did you observe any safety issues? Considering that we will have children and pets in the home, do you recommend any enhancements or special proofing to avoid accidents?
§ Are there any other hazards that may cause long-term health issues? Are there any environmental concerns regarding the location and the zoning that I need to know about?
§ What is your estimate of the cost for fixing the major problem areas?
§ Can you explain the structure of your report? Will you be able to provide me with a summary of the vital issues in the report?
§ What section of the report will include information on energy efficiency and maintenance?
§ If I forget to ask something, or if my bank or insurance company has a
question after the inspection may we call you?
Look out for:
1. Mold stains and odors, particularly since black mold is toxic. Make sure the seller treats the area to get rid of any mold. Ask them to air the home to ensure that it does not buildup again.
2. Lighting: Test fixtures, both interior and exterior, and check the electrical systems.
3. Heating system: Test the thermostats to make sure the heating system is working. Don’t forget to purchase CARBON MONOXIDE detectors to provide alerts. Check for fire hazards and test that the smoke detectors are working.
4. Basements and crawlspaces should be inspected in daylight. Any exposed earth or moisture in basements should be covered and leaks plugged.
5. Make sure the septic system is checked. This can cause a great deal of
frustration and unpleasantness in the event of a breakdown. Some inspectors flush a color dye into the toilet and then see if the dye appears on the drain field. If it does, it signals a problem.
6. Check the gutters and clear channels to ensure uninterrupted flow. Downspouts will allow the water to be directed away from the house.
7. Get a termite inspection done by a licensed structural pest control operator. Yes, there is such a person! Find out how serious the problem really is.
8. If there is a well on the premises, ensure a complete potability and mineralization test.
Here is a concise alphabetical checklist of the areas you may want to cover:
A Air-conditioning, Appliances, Attics
B Basements, Bathrooms, Blinds, Shades & Drapes, Brickwork
C Carpet Spots, Ceilings, Closets
D Decks & Patios, Dehumidifiers, Dishwashers
E Electrical, Exterior walls, Energy Efficient devices
F Fences, Fireplaces, Floor scratches
G Garages, Gutters and Downspouts
H Heat Pumps, Humidifiers
I Insulation, Interior walls, Insects
L Laundry Rooms, Lawn & Garden, Lawn Sprinklers, Lighting
M Mirrors
O Odors
P Plumbing, Pools, Ponds
S Stairs & Steps, Skylights, Stains, Security, Septic system
T Tiles, Termites
W Woodwork, Wood Rot, Water Heaters, Wallpapering

"All information in this report is deemed reliable, but not guaranteed."