Brian Ripp ~ Your East Bay Area & Fremont Real Estate Agent

Today’s real estate market isn’t what it used to be.  If you want to sell your house, you may be thinking of ways to set your home apart from others.  How can you make the decision easier for you the buyer and help yourself as well?  On way is by doing a pre-sale inspection.

A pre-sale inspection can benefit both the seller and the buyer.  With a pre-sale inspection, you’ll know what condition your house is in before it goes on the market.  This information allows you to have a better idea of what your house’s listing price should be, and it avoids surprises that might arise after it goes into escrow.  Discovering conditions early in the sales process allows the seller to decide how to handle the conditions when they aren’t under the additional pressure of already being in contract.  It also helps avoid a possible disclosure lawsuit.  With a pre-sale inspections, the buyer also benefits by knowing the condition of the property before making an offer, which can mean a quicker and easier sale.

At this inspection may look at your home’s roof, structural, plumbing fireplace, and heater.  Inspection prices range from $300 – $500.

Pending home sales rose slightly in December, increasing 1.0 percent from the previous month, according to NAR. The Pending Home Sales Index (PHSI) was 10.9 percent above December 2008. In November, the index had fallen 16.4 percent after several months of surging activity.

The index in the Northeast rose 2.3 percent in December and was 14.9 percent higher than December 2008. In the Midwest, the index increased 5.2 percent and was 8.7 percent higher than a year ago. In the South, pending home sales rose 2.2 percent and were 5.5 percent higher than December 2008. In the West, the index fell 3.8 percent but was 18.6 percent above a year ago.

NAR chief economist Lawrence Yun says it’s important to recognize how the tax credit is skewing market data. “There are easily understood swings in contact activity as buyers respond to a tax credit that was expiring and was then extended and expanded. These swings are masking the underlying trend, which is a broad improvement over year-ago levels. December activity was the fifth highest monthly tally in two years,” Yun says.

from CRS Member Connect newsletter

for additional information go to my Real Estate Market Weekly Update Webcast: http://realtytimes.com/REUv/BrianRipp

The Dept. of Housing and Urban Development (HUD) announced Friday it will eliminate for one year the Federal Housing Administration (FHA) 90-day anti-flipping rule. 
FHA’s anti-flipping rule generally prohibits insuring a mortgage on a home owned by the seller for less than 90 days.  That rule already has been waived for certain transactions, including REOs.  Beginning Feb. 1, buyers may use FHA-insured financing to purchase properties resold through private developers and investors.  This one-year waiver will give FHA buyers access to a broader array of recently foreclosed properties. 
Under the temporary waiver, all transactions must be made at arm’s-length and may require additional documentation of improvements and justification of certain price increases.  Additional documentation may include a second appraisal and a property inspection ordered by the lender.
C.A.R. recently submitted a letter to FHA Commissioner David Stevens detailing the challenges facing many FHA home buyers, such as the lack of housing inventory available to them, and the need to revise this rule to reflect current market conditions.  The reexamination of the 90-day anti-flipping rule was passed as an action item during C.A.R.’s board of directors meetings in October.

from: C.A.R. Newsline e-mail update

Key points

• The new year is a great time to reevaluate where you stand financially.

• Consider these five resolutions to reshape your finances in 2010, including tips on budgeting, estate planning and more.

• Helpful information for everyone, regardless of age or income.

It wouldn’t be the new year without resolutions. But whether it’s trimming your waistline or firming your financial profile, the key isn’t making the list, it’s sticking with it! That’s particularly true now, given the recent bear market and economic downturn.

Here are five steps to get you started. You don’t have to do everything at once. Just get going. We believe that, as you move from one step to another, you’ll feel stronger—and closer to achieving your goals.

  Resolution No. 1: create a budget for life Financially speaking, life can be viewed as a series of cash inflows and outflows. Saving and investing during your working years should hopefully lead to a rising net worth over time, enabling you to achieve many of life’s most important goals, like funding your retirement. Creating your own budget and net worth statement can help you build your road map and stay on track, even during tough times.

  Resolution No. 2: manage your debt Debt is neither inherently good nor bad—it is simply a tool. For most people, some level of debt is a practical necessity. That said, problems arise when debt becomes the master of the borrower, not the other way around. Here’s how to stay in charge.

  Resolution No. 3: invest with a plan Getting better investment results are a goal we all share. But investing is a means to an end, not an end unto itself. So stay focused on your goals. Create a plan that will help you stay disciplined in all kinds of markets. Follow it and adjust it as needed.

  Resolution No. 4: prepare for the unexpected Risk is a fact of life. Your financial life can be upended by all kinds of nasty surprises—an illness, job loss, disability, death, natural disasters or lawsuits. If you don’t have enough assets to self-insure against major risks, resolve to get your insurance in shape.

  Resolution No. 5: protect your estate Without an estate plan, the fate of your assets or minor children may be decided by attorneys, government bureaucrats and tax agencies. Taxes and attorneys’ fees can eat away at your estate, and delay the distribution of assets just when your heirs need those most. Here’s how to protect your estate—and your loved ones.

Finally, remember you don’t have to do everything at once. Take one step at a time. Make some real progress on your journey in 2010.

When looking at the real estate purchase contract, most buyers focus on the sales price – but the price isn’t the only factor that determines the bottom line.  Is a bargain really a bargain if the buyer is paying all the transaction costs?

Before you decide to go with a great price, make sure you know the transactions costs and who will pay for what.  Typical costs include  a home inspection, a termite inspection, title and escrow fees, transfer taxes & recording fees.  These costs vary grealty around the country.  Who pays for what can be negotiated, and sometimes the customary local practice is applied.

Starting Jan. 1, 2010, the Federal Housing Administration will adhere to new credit standards and appraisal guidelines for FHA-insured mortgages.  The new guidelines, which essentially align with HVCC rules, will prohibit the undue influence of appraisers, or the choosing of an appraiser, by mortgage brokers or commission-based lender staff.  In addition, the FHA’s appraisal validity period will be reduced to four months for all properties including existing, proposed, and new construction.  The action also provides new guidelines allowing a second appraisal to be ordered in some instances including when a borrower switches lenders.

for more info, go to www.hud.gob/office/adm/hudclips/letters/mortgagee

From “Housing Matrix . com”

Home sales have been rising since Nov. 2008, and looks like 2010 will be a good year for home sales.

http://housingmatrix.com/hot-sheets/exhome.pdf

The report tracks the number of existing homes sold during the previous month. The data is collected from more than 650 Boards/Associations of Realtors and MLS (multiple listing services) listings across the nation. It includes a two year historical graph and a table of long-term trends for existing home sales, by areas of the country, month’s supply, median and average sales price. Ideal resource to stay on top of existing home sales.

Buying a home is a big step and process can be complicated.  That’s why it’s so important to have a knowledgeable real estate professional working to protect your interests.

One of the first things you should do when shopping for a home is to obtain prequalification for a home loan.  This will help you understand your budget and narrow your home choices.

In order to get a mortgage, you will need to provide proof of income and assets.  The amount of necessary paperwork will vary somewhat from lender to lender, but most likely you will need:

• Federal income tax returns for the previous two years.
• If you are self-employed, 1099 forms and year-to-date profit/loss statements.
• Three recent consecutive paycheck stubs.
• Three consecutive bank statements.
• Investment and savings account statements.
• Recent year’s canceled rent/mortgage check or other verification of payments.
• Documentation of additional mortgage loans or rental properties.
• Recent statements from each of your credit card companies.
• Recent statements or other documentation of car loans, student loans and other debt obligations.
• Divorce documents or other legal documentation, if applicable.

If you have questions or concerns, feel free to contact me anytime.

Brian Ripp, CRS, GRI
Broker, Notary, Property Management  
Realtor since 1985
 DRE Lic. 00886348

Fannie Mae and Freddie Mac will suspend foreclosure evictions from December 19, 2009 through January 3, 2010.  To help struggling families over the holidays, both owner-occupants and tenants living in properties foreclosed upon by Fannie Mae will not be evicted.  Freddie Mac’s suspension of evictions will be limited to properties up to four units.
In a similar move, Citigroup Inc. will suspend foreclosure sales and evictions for 30 days through January 17, 2010 for loans it owns.  Citigroup’s foreclosure moratorium, however, does not extend to loans it services on behalf of other investors.  Given these developments, other lenders may follow suit, so check with the lender if appropriate.

The Federal Reserve today announced it will maintain its target for the federal funds rate in the 0 percent to 0.25 percent range, and expects economic conditions to warrant exceptionally low levels of the federal funds rate for an extended period of time. “Information suggests that economic activity has continued to pick up and that the deterioration in the labor market is abating,” the Fed said in a prepared statement.

“Financial market conditions have become more supportive of economic growth, although economic activity is likely to remain weak for a time.  The Committee anticipates that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a strengthening of economic growth and a gradual return to higher levels of resource utilization in a context of price stability,” the Fed said.
 
To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve also said it will purchase a total of $1.25 trillion of agency mortgage-backed securities and nearly $175 billion of agency debt, and will gradually slow the pace of these purchases in order to promote a smooth transition in markets.