Archive for September, 2009

According to a survey from the California Association of Realtors, nearly 40 percent of recent first-time homebuyers said they would not have purchased a home if the federal tax credit for first-time homebuyers was not offered, and 70 percent said it was either “very important” or “most important.”

The $8,000 credit is expiring Dec.1.

“It is clear that the federal tax credit for first-time homebuyers is working, as evidenced by the spike in home sales in recent months,” said CAR President James Liptak. “This tax credit is arguably the most successful strategy employed by the government’s efforts to stimulate the housing market.

“Because the tax credit has helped so many first-time buyers become homeowners, it is critical that Congress extends the credit beyond the Dec. 1 deadline and includes all buyers, not just first-timers,” he said.

“While affordability has improved in California over the past two years, it is still lower than affordability nationally. As a result, the tax credit is an even bigger factor in California compared with elsewhere in the country,” added Mr. Liptak. “Going forward, the credit will be even more important to the housing recovery.”

While the deadline is not until Dec. 1, buyers need to put in their offer by the end of September in order to qualify, according to the National Association of Realtors.

Sen. Johnny Isakson, R-Georgia, and Senate Majority Leader Harry Reid, D-Nevada, introduced Senate Bill 1678 extending credit to June 1, 2010.

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Analysts are expecting another wave of foreclosures due to the readjustment of many option ARM mortgages.

An adjustable-rate mortgage is a mortgage loan where the interest rate on the note is periodically adjusted.

It can be adjusted for a variety of reasons including rates on one-year constant-maturity Treasury securities, the Cost of Funds Index and the London Interbank Offered Rate.

Adjustable rates take some of the risk from the lender to the borrower and tend to be used when unpredictable interest rates make fixed rate loans difficult to obtain.

From North Bay Business Journal

Valerie Fitzgerald is pleased to announce the launch of her Heart and Sold Mentoring Program.

The first call is scheduled for Thursday, October 1, 2009 at 9:00 a.m. PST. As a special bonus for the first call we’re offering $25 off. Use FALL101 when you check out.

This program is an authentic transformative mentoring experience designed to help you move your business forward using proven strategies that are effective and efficient that Valerie has developed and implemented over the last 20 years.

Members will receive all the tools, resources, and materials relevant to each call with Valerie, so you won’t just be loaded up with information. We’ll give you the tools to put it into action.

This program has been designed for Small Business Owners, Entrepreneurs, Real Estate Professionals, and Individuals Changing Careers.

During the process we will:

• Define what your “Desired Life” looks like.
• Strategize your best Next Steps to move your business forward.
• Hold you accountable to take massive action!

To register visit: http://www.heartandsoldmentoring.com

Message From Valerie:

As part of my “Designed Life”, this tele-workshop is in response to numerous requests to share my experience, strategies, and tools with a wider audience.

I’ve been privately coached for the past 15 years and I know the positive effects of that guidance and accountability. And what derived as a result, was not only a greater acceptance of my deeper self and mission in life, but greater productivity, success, jumps in income and understanding, and, most of all, the peace of mind I always sought but had never been able to find anywhere else.I look forward to offering you the same support through this group program.

I am now offering the potential for these results with monthly tele-workshops (All classes recorded for those who may miss a class). I am making my program available in an innovative tele-workshop format that will include live group participation, as well as transformative exercises that help you discover your most efficient and effective way of moving your business forward while expressing your unique gifts and talents.

……………………………………………………………………………………………………

If you are unable to make the call at this time, all calls will be recorded and you can access the call within 24 hours on your Member Resource Page.

After you sign up for the Mentor Program, you will create your unique username and password to gain access to the Member Resource Page.  There you will find everything relevant to the live calls, including an audio recording you can replay at your leisure.

To register visit: http://www.heartandsoldmentoring.com.

Consumers with sufficient credit scores to qualify for a mortgage have benefited this year from a popular government tax credit that provides further incentive for first time homebuyers.

However, the $8,000 credit is expected to expire on November 30, which has some would-be buyers scrambling to get their financial affairs in order to qualify for the incentive.

With that in mind, an organization representing many of the nation’s real estate professionals is calling on Congress to extend the tax credit. According to the National Association of Realtors, 350,000 people who would not have otherwise purchased a home did so because of the tax credit.

The NAR is highlighting the credit as a valuable part of an emerging economic recovery, while warning that allowing it to expire could weaken consumer demand for housing at a crucial time.

“The credit needs to be available for an additional period of time in order to sustain the progress that’s been made so we can continue to see our markets fully recover,” said NAR President Charles McMillan.

A New York Times report this week noted that the NAR would like to see the credit extended until at least next summer, although it cited concern from some opponents who worry that program could end up lasting indefinitely, adding to an already large federal deficit in the process.

Consumers have had various obstacles when it comes to selling their homes. Falling real estate prices have left many underwater on their mortgages, making it far more difficult for them to sell existing properties in favor of news ones. The credit crunch has also taken a toll as lenders have tightened their standards, leaving many buyers out in the cold despite the low prices that have characterized the market in recent months.

From Credit.com By Timothy Jones

The Valerie Fitzgerald Group specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author of Heart and Sold: How to Survive and Build a Recession-Proof Business.

Subscribe to this blog: Valerie Fitzgerald Group Blog.

Follow me on Twitter: http://twitter.com/ValreFitzgerald

The Los Angeles Times reported this morning California’s unemployment rate has set a new postwar high to a tune of 12.2%

Wow. One sees that on paper, but it doesn’t seem to be fathomable.

According to the L.A. Times:

“The state is one of 14 in the nation with an unemployment rate in the double digits, the Bureau of Labor Statistics reported today. Only Michigan, Nevada and Rhode Island, at 15.2%, 13.2% and 12.8%, respectively, have higher unemployment rates than California. The national unemployment rate in August was 9.7%.

California has shed 741,000 jobs in the last year, and the state’s unemployment rate has climbed 4.6 percentage points from August 2008. The state’s July unemployment rate was 11.9%.”

How has the economic climate impacted you? Your family? Your business?

Have you developed creative ways to combat the economic challenges? Have they worked? What are some examples.

I’d love to share your “winning” experiences so that they may be examples and inspiration for others out there who are finding this period challenging.

Decreased home values makes it a difficult time to sell. It’s a buyer’s market, with home prices extraordinarily low. But sellers are not at a complete loss. Despite challenging times in real estate, homeowners can make some wise decisions along the way that will improve their chances of selling their home more quickly and getting more money for it.

Here are the top 10 mistakes homeowners make when selling their home according to Dana Bauguss, managing broker in ReMax Greater Atlanta:

Lots of homeowners cry when they sell.  Sometimes it begins before the sign is stuck in the yard.  Why?  Sellers have developed relationships with their homes.  Homes hold treasured memories so it is no surprise for Sellers to become emotional.  However, some Sellers cry for another reason.  They sob because they are victims of the top ten selling mistakes and they can’t sell their home.

1. Sellers don’t hire a qualified agent. The biggest mistake sellers can make is they don’t hire a REALTOR to professionally market their home, Bauguss said. All real estate licensees are not the same. Only those who are members of the National Association of REALTORS are properly called REALTORS. No matter whom you hire, as a seller you need to interview the agent for the “job” of selling your home and review marketing plans.  Selling (and buying) your home is one of the largest financial investments you’ll make.  Considering the small upside cost and the large downside risk, sellers need to hire a professional.

2. Sellers price their home too high. Pricing a home is an art.  Of course market value is based on comparable sales but market movement, demand, location and condition are factors also.  If the home is overpriced then buyers won’t look at it or they will submit lowball offers.

3. The house isn’t ready for showing.  Sellers need to listen to their real estate agent and do everything on the list to prepare the home to sell at least two weeks before the first showing.

4. The home is in bad condition. Sellers need to get their home ready to sell.  They need to do more than make the beds and clear the dishes out of the sink.  Minor repairs and quick fixes can boost the chance of a quick sale.  If buyers see deferred maintenance then they will wonder what else is wrong with the house.  So fix sticky doors, dripping faucets and torn screens.

5. Sellers don’t get rid of the clutter. Throw out anything that is not needed and pack away most of your decorative items.  Make your closets as big as possible by packing out of season clothes.

6. Sellers don’t deep clean. Make everything extra clean inside and out.  Clean fingerprints and appliances. Mop and wax until the house sparkles.  Tidy the yard and add flowers for color.  Make sure there is great curb appeal and an inviting front door.  A great first impression will make the buyers think the house has been maintained.

7. The house smells. The seller needs to get rid of all smells.  Sellers are so comfortable with their homes they can’t smell the odors.  Clean the carpet and drapes and open the windows.

8. Sellers don’t stage their home. The house needs to be staged and depersonalized so the buyer looks at the house and not the seller’s belongings. View this professional staging PHOTO GALLERY.

9. Sellers don’t leave during showings, inspections or appraisals. When buyers are looking at your home, they want the seller gone! They need to talk about your house, talk to the inspector and be able to think out loud.  Sellers don’t need to chit chat with buyers or the selling agent.  This is a huge mistake!  You will tend to look desperate, needy or controlling.  Remember you are paying an agent for representation.  If you stay, this will cost you money.

10.  Sellers refuse to drop the price. If the home has been on the market for more than 30 days without an offer, the seller must be prepared to lower the prices.

What tips do you have for selling your house more quickly? How long has your house been on the market?

From Atlanta Journal Constitution.

The Valerie Fitzgerald Group specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author of Heart and Sold: How to Survive and Build a Recession-Proof Business.

Subscribe to this blog: Valerie Fitzgerald Group Blog.

Follow me on Twitter: http://twitter.com/ValreFitzgerald