Newsflash:
December 6, 2007: In an effort to provide some stability to the mortgage market, while helping homeowner’s – as many as 2 million sub-prime ARM loans made at the start of 2005, through July 30, 2007, whose interest rates are scheduled to jump to higher rates between January 1, 2008 through July 31, 2010 will be locked in at their current rate.
Being called a ‘teaser freezer’ – the rate freeze is aimed at owner-occupied homes whose monthly mortgage payments may rise as much as 30% if adjusted to current rates. Its another effort to quash the “avalanche” of foreclosures that some in the industry are predicting. For more information visit www.federalreserve.gov or www.teamresults21.com.
Showing posts with label Team Results. Show all posts
Showing posts with label Team Results. Show all posts
Thursday, December 06, 2007
Sunday, April 01, 2007
Real Estate & the Economy
Business Week televised a couple of good items about the real estate industry as a whole yesterday. Their video can be seen here: http://feedroom.businessweek.com/index.jsp?fr_story=1164424c0c16afd06ab22f7edc11e1b8de2f5ab5 I've pulled information from other current videos as well.
Some of the bullet points I thought were important are:
Buyers still have an edge in real estate.
Seller's are becoming more flexible and responsive to buyers' terms. It was specifically pointed out that buyer's who low-balling the selling price won't produce the desired result and indicated that 10% below asking was a reasonable price reduction to request.
Seller's can increase their returns by upgrading with environmentally friendly improvements. Shown by the trend in eco-friendly home buyers.
Sellers were directed to post at least 6 high-quality photos (recommended by Realtor.com) because 80% of home buyer's check out listings online before touring in person.
Buyer's too have some work to do like; giving a boost to their credit score, and finding the best deal (budget friendly) on a mortgage.
Mike Mandel, Business Week Economist, talked about the economy as a whole & the real estate market's effect on it. He says there are factors other than the mortgage market that consumers should be keeping an eye on.
Mike pointed out that 30 year fixed rates are actually lower than they were a year ago and that borrower's who have an adjustable rate mortgage, and decent credit will have little trouble re-financing into a fixed rate and will be "sitting pretty".
As a whole the mortgage market is doing just fine, though the sub-prime market is in a bit of trouble. The market will no doubt affect the economy but won't cause a recession according to Mandel. One of the more important aspects to watch closely is business investment which he says have slowed and is at very low levels.
Also the increase in foreclosure activity was localized to areas that didn't have strong real estate markets in the first place.
Some of the bullet points I thought were important are:
Buyers still have an edge in real estate.
Seller's are becoming more flexible and responsive to buyers' terms. It was specifically pointed out that buyer's who low-balling the selling price won't produce the desired result and indicated that 10% below asking was a reasonable price reduction to request.
Seller's can increase their returns by upgrading with environmentally friendly improvements. Shown by the trend in eco-friendly home buyers.
Sellers were directed to post at least 6 high-quality photos (recommended by Realtor.com) because 80% of home buyer's check out listings online before touring in person.
Buyer's too have some work to do like; giving a boost to their credit score, and finding the best deal (budget friendly) on a mortgage.
Mike Mandel, Business Week Economist, talked about the economy as a whole & the real estate market's effect on it. He says there are factors other than the mortgage market that consumers should be keeping an eye on.
Mike pointed out that 30 year fixed rates are actually lower than they were a year ago and that borrower's who have an adjustable rate mortgage, and decent credit will have little trouble re-financing into a fixed rate and will be "sitting pretty".
As a whole the mortgage market is doing just fine, though the sub-prime market is in a bit of trouble. The market will no doubt affect the economy but won't cause a recession according to Mandel. One of the more important aspects to watch closely is business investment which he says have slowed and is at very low levels.
Also the increase in foreclosure activity was localized to areas that didn't have strong real estate markets in the first place.
Tuesday, March 27, 2007
Monday, March 26, 2007
Home Loans and Homework
When shopping for a home loan, it is important to choose reliable sources that offer reasonable rates, and that don't make claims that seem far fetched.
I like Mortgage Lenders that allow you to research your options before signing up for anything. The internet is an excellent resource for doing just that. Sites that have posted current rates and terms upfront are best. By doing a little homework ahead of time, you will be better able to make the right choices for you and your personal financial situation. In the end, it all makes for a smoother transaction.
Mortgage Lenders , is a lender site that we tried and really liked. The information is current and accurate and the website is easy to navigate. (essential because our attention span is getting shorter)
I like Mortgage Lenders that allow you to research your options before signing up for anything. The internet is an excellent resource for doing just that. Sites that have posted current rates and terms upfront are best. By doing a little homework ahead of time, you will be better able to make the right choices for you and your personal financial situation. In the end, it all makes for a smoother transaction.
Mortgage Lenders , is a lender site that we tried and really liked. The information is current and accurate and the website is easy to navigate. (essential because our attention span is getting shorter)
Sunday, March 11, 2007
Its Tax Season Again
Its Tax Season Again.
This year Tuesday, April 17, is the deadline to file your federal tax returns. And this is a good time to remind our friends to double check your returns before sending them off whether electronically or the old fashioned paper method.
The IRS has been touting via public relations officials with the agency, its increased audit efforts. On the radio this morning a spokesman for the IRS stated that the agency has upped its audit efforts and is trying to close the gap on non-payers. He also reminded listeners that not filing a return in many ways is more serious than not being able to pay your taxes, or willfully filing incorrect information. That is because the fines and penalties for not filing, are higher than other tax infractions.
Having been audited myself several times, I know it’s a pain in the butt and I would not wish the experience on anyone. In order to avoid being an audit victim, and I say that with all sincerity, make sure to keep your records organized and available. Remember that there is no statute of limitations for the IRS to come after you for failing to file. Here are a few questions and answers you’ll find useful.
Q: WHO NEEDS TO FILE?
A: Anyone who is employed, receiving earnings more than $8,450 in this tax year, and anyone who is self-employed or independent contractor, earning ‘net’ (after expenses) income over $400. (yes four hundred).
Q: WILL YOU HOLD MY HAND WHILE I AM BEING AUDITED?
A: Yes, I Will.
Q: WHERE CAN I GET GOOD TAX ADVICE?
A: I think the IRS itself is a good source of information. The website has every single form and publication available for download, or you can request that they be mailed to you. I would urge you to request your forms now, because, they won’t get to you in time to do any good if you wait much longer. The IRS website is http://www.irs.gov.
If you don’t have internet access, please e-mail me at john.wall1@century21.com and let me know how you are reading this blog.
Q: WHEN YOU WERE AUDITED, DID YOU CRY?
A: Only once.
Q: WHAT MAKES YOU SUCH AN EXPERT ON TAXES?
A: I am not! You should seek the advice of a qualified tax professional, and I would suggest you find someone who can represent you during an audit.
Some things I would like to remind you of is the long distance phone tax credit available this year. Every individual who has paid for long distance phone service is likely to qualify for this credit. You must however request it on your tax form (any of the 1040 forms) or if you don’t need to file a return, but want to receive your credit, you can file form 1040EZT. The EZT version of the 1040 is used only to request the credit.
Also, make sure you look at other available credits like the EIC or Earned Income Credit. While we are at it, I would like to mention that TAX CREDITS are better for most filers because a CREDIT means REFUND! When a tax credit is available to you, it means the IRS is holding money just for you. The caveat is that you must ask for it in order to receive it. Whereas, a deduction is a dollar amount that reduces your taxable income and possibly your tax liability (the amount you owe the IRS).
Remember a self employed person earning more than $400 must file a return? In theory if you earned $100,000 but had $99,600 in expenses that are deductable on your return, you would meet the qualifier for not having to file a federal tax return. (Don’t take my word on that – this is theoretical)
Some other things to remember are if you file zero income tax returns because you subscribe to certain beliefs such as ‘taxes are illegal’, you might end up in jail. The courts have tried many cases like these and the filer always looses. When the IRS comes after you, it will most likely cost you more than you would ever pay just filing an honest return.
For our home sellers and buyers, remember to get your 1031 and IRC 121 figures together now because in my personal experience, these transactions are audited more frequently (the IRS officially disputes this). If you are audited, don’t panic – Until you are called into an IRS field office. In which case, you shouldn’t go alone. Bring along your CPA, Tax Advisor, or advocate.
Having said that, most tax audits are ‘correspondence audits’ which are very painless, and easy to complete. They’re scary for tax payers because the notice comes in ‘official IRS – you’re about to be horse whipped stationary’. But really, this type of audit basically says, “Hi – This is the government. We have a question about line 22 of your tax return. Would you mind clarifying it please?” See, that’s not so bad! Just answer their questions and all will be okay.
A final thought; tax auditors are not the brutal, meanies that they are portrayed as in comedy sketches. In fact, I’ve never met one that wasn’t pleasant, friendly, and helpful except for one and he’s a jerk.
Go Download Publication 17 for more information on taxes – and remember that taxes are the cost of free society.
Agent Page ||Active Rain Blog ||E-mail
This year Tuesday, April 17, is the deadline to file your federal tax returns. And this is a good time to remind our friends to double check your returns before sending them off whether electronically or the old fashioned paper method.
The IRS has been touting via public relations officials with the agency, its increased audit efforts. On the radio this morning a spokesman for the IRS stated that the agency has upped its audit efforts and is trying to close the gap on non-payers. He also reminded listeners that not filing a return in many ways is more serious than not being able to pay your taxes, or willfully filing incorrect information. That is because the fines and penalties for not filing, are higher than other tax infractions.
Having been audited myself several times, I know it’s a pain in the butt and I would not wish the experience on anyone. In order to avoid being an audit victim, and I say that with all sincerity, make sure to keep your records organized and available. Remember that there is no statute of limitations for the IRS to come after you for failing to file. Here are a few questions and answers you’ll find useful.
Q: WHO NEEDS TO FILE?
A: Anyone who is employed, receiving earnings more than $8,450 in this tax year, and anyone who is self-employed or independent contractor, earning ‘net’ (after expenses) income over $400. (yes four hundred).
Q: WILL YOU HOLD MY HAND WHILE I AM BEING AUDITED?
A: Yes, I Will.
Q: WHERE CAN I GET GOOD TAX ADVICE?
A: I think the IRS itself is a good source of information. The website has every single form and publication available for download, or you can request that they be mailed to you. I would urge you to request your forms now, because, they won’t get to you in time to do any good if you wait much longer. The IRS website is http://www.irs.gov.
If you don’t have internet access, please e-mail me at john.wall1@century21.com and let me know how you are reading this blog.
Q: WHEN YOU WERE AUDITED, DID YOU CRY?
A: Only once.
Q: WHAT MAKES YOU SUCH AN EXPERT ON TAXES?
A: I am not! You should seek the advice of a qualified tax professional, and I would suggest you find someone who can represent you during an audit.
Some things I would like to remind you of is the long distance phone tax credit available this year. Every individual who has paid for long distance phone service is likely to qualify for this credit. You must however request it on your tax form (any of the 1040 forms) or if you don’t need to file a return, but want to receive your credit, you can file form 1040EZT. The EZT version of the 1040 is used only to request the credit.
Also, make sure you look at other available credits like the EIC or Earned Income Credit. While we are at it, I would like to mention that TAX CREDITS are better for most filers because a CREDIT means REFUND! When a tax credit is available to you, it means the IRS is holding money just for you. The caveat is that you must ask for it in order to receive it. Whereas, a deduction is a dollar amount that reduces your taxable income and possibly your tax liability (the amount you owe the IRS).
Remember a self employed person earning more than $400 must file a return? In theory if you earned $100,000 but had $99,600 in expenses that are deductable on your return, you would meet the qualifier for not having to file a federal tax return. (Don’t take my word on that – this is theoretical)
Some other things to remember are if you file zero income tax returns because you subscribe to certain beliefs such as ‘taxes are illegal’, you might end up in jail. The courts have tried many cases like these and the filer always looses. When the IRS comes after you, it will most likely cost you more than you would ever pay just filing an honest return.
For our home sellers and buyers, remember to get your 1031 and IRC 121 figures together now because in my personal experience, these transactions are audited more frequently (the IRS officially disputes this). If you are audited, don’t panic – Until you are called into an IRS field office. In which case, you shouldn’t go alone. Bring along your CPA, Tax Advisor, or advocate.
Having said that, most tax audits are ‘correspondence audits’ which are very painless, and easy to complete. They’re scary for tax payers because the notice comes in ‘official IRS – you’re about to be horse whipped stationary’. But really, this type of audit basically says, “Hi – This is the government. We have a question about line 22 of your tax return. Would you mind clarifying it please?” See, that’s not so bad! Just answer their questions and all will be okay.
A final thought; tax auditors are not the brutal, meanies that they are portrayed as in comedy sketches. In fact, I’ve never met one that wasn’t pleasant, friendly, and helpful except for one and he’s a jerk.
Go Download Publication 17 for more information on taxes – and remember that taxes are the cost of free society.
Agent Page ||Active Rain Blog ||E-mail
Monday, March 05, 2007
Week in review
YOU KNOW WHO IS LOOKING FOR STOCKS? NOBODY! Last week's volatility in the stock market stabbed at the hearts of both the Stock and Bond markets, with home loan rates swinging higher and lower throughout the course of the week. Economic news releases took a backseat to the massive movements in Stocks. Amazingly, when all the smoke cleared, home loan rates were unchanged to slightly improved for the week overall.
What happened? First, remember that the Stock and Bond markets compete for the same investment dollar. This means that when Stocks are worsening and investors are selling off their holdings, some of that money gets moved over into the Bond market, which helps home loan rates improve. And vice versa, when Stocks move higher and investors are buying into the Stock market, some of that money comes back out of Bonds, which causes home loan rates to worsen.
Last week's volatility began with the Chinese Stock market plunging, setting off a string of worldwide stock selling. Our own Stock market was ripe for a reversal lower, and money flowed out of Stocks and into Bonds, helping home loan rates improve. The next day, Stocks began to rebound, moving money back out of Bonds and causing home loan rates to worsen. But the "see-saw" action continued for the balance of the week - and may not be done yet, causing high amounts of volatility in Stocks and Bonds - and therefore, home loan rates.
Compiled by TeamResults Affiliates as a service to our clients. Always seek advice from your own experts. E-mail TeamResults@Century21.com with questions, comments or concerns.
What happened? First, remember that the Stock and Bond markets compete for the same investment dollar. This means that when Stocks are worsening and investors are selling off their holdings, some of that money gets moved over into the Bond market, which helps home loan rates improve. And vice versa, when Stocks move higher and investors are buying into the Stock market, some of that money comes back out of Bonds, which causes home loan rates to worsen.
Last week's volatility began with the Chinese Stock market plunging, setting off a string of worldwide stock selling. Our own Stock market was ripe for a reversal lower, and money flowed out of Stocks and into Bonds, helping home loan rates improve. The next day, Stocks began to rebound, moving money back out of Bonds and causing home loan rates to worsen. But the "see-saw" action continued for the balance of the week - and may not be done yet, causing high amounts of volatility in Stocks and Bonds - and therefore, home loan rates.
Compiled by TeamResults Affiliates as a service to our clients. Always seek advice from your own experts. E-mail TeamResults@Century21.com with questions, comments or concerns.
Tuesday, January 16, 2007
Median Sales Price LA County
Los Angeles County – The median sales price for single family homes rose 6.5% since this time last year. Even with a 12.9% drop in sales, prices have remained strong and continued to climb. Homes may sit a little longer on the market, but, there is no longer a rush on housing.
The market is correcting itself (as any free-market should) after a steady climb for the past couple of years. Although, many realtors and professional real estate players are calling this market a “buyer’s market”, many buyers disagree. According to the Los Angeles Times today, Mr. Brandon Brennan has been trying to purchase a home by making [buyer’s market] offers only to be rebuffed by seller’s who can’t even be bothered to counter-offer.
Home-sellers know that offers will come in and someone will come along with a fair market value offer. That is the offer that sellers are holding out for. Brennan finally closed on a home, eventually paying more than he had hoped, but less than the original asking price, and only beating other offers by offering to close the deal within 2 weeks.
So for seller’s I guess, I’d say it’s a seller’s market and to buyer’s I would say it’s a buyer’s market. For a market analysis of your home please give me a call at 562-433-1914 or e-mail john.wall1@century21.com. Buyer’s too – for a complete Buyer Potential Report use the same e-mail link.
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