Home Buyers Tax Credit Extended: Great News for Military Families

In an effort to spur economic growth and home ownership, President Obama signed the Worker, Home Ownership, and Business Assistance Act of 2009 into law on Nov.6. And, a special provision in this new legislation will help military families take advantage of the tax credit for at least two more years. Now, military home owners won’t have to rush to close on a new home by the old deadline of Nov. 30, 2009 in order to be eligible for the $8,000 tax credit — the new deadline is April 30, 2011.
This bill's extension for military families is one year longer than civilian home owners’ extension — April 30, 2010 — and will also help financially strapped military personnel by making mortgage payments tax deductible.
Current home owners will also benefit from the newly signed law. If they have been in their principal residence for five consecutive years home owners will have until April 30, 2010 to buy a new home and receive a $6,500 tax credit.
Charles McMillan, president of the National Association of Realtors, and a proponent of this bill, stated on the organization’s website that the original home buyers tax credit bolstered the national housing market and will continue to do so if extended.
“This important incentive is helping to stabilize the housing market, stimulate the economy, and create new jobs in communities all across our great nation,” said McMillan in a NARS press release.
“Extending and expanding the home buyer tax credit will enable more families to take advantage of low interest rates and affordable prices to invest in their future through home ownership,” McMillan added.
Additional provisions include expanded income limits for single and married home owners. Previously, single home buyers couldn’t make more than $75,000 to be eligible for the tax credit — the limit is now $125,000. And, the income limit for couples has been raised from $150,000 to $250,000. However, you’re not eligible for the tax refund if the purchase price of you new home is $800,000 or more.
Speaker Nancy Pelosi praised the legislation stating on her website that it has “already been successful” and that the new provisions will help more American home owners and will promote further economic recovery.
“We've seen the positive impact -- the steadier foundation in our housing market. Most significantly, we've watched a new generation of Americans start living out their dream of home ownership and economic security,” continued Pelosi.
If you want to learn more about using your VA Loan to buy a new home and eligibility for the $8,000 tax credit, visit Military.com’s Home Buying channel.

What $300,000 Buys You Now

Five years ago, an upscale version of the American Dream -- living space, location, property, charm and more -- in most U.S. metropolitan areas started at around $500,000. Then the housing bubble popped. Since October 2005, values on existing homes have dropped 27% nationally, according to the National Assn. of Realtors.
Is $300,000 the new $500,000? Here's a look at 12 properties on the market, all in the $250,000-$350,000 range. See how far your real estate buck stretches now.


Detroit, Mich.
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Asking Price: $245,000 Square Footage: 3,288Bedrooms: 4Bathrooms: 4Acreage: 0.35
Palmer Woods, a neighborhood of the Motor City, is an architectural preservation district of English Revival and Tudor-style houses just like this one. This home was built in 1938, with hardwood floors throughout, stained glass windows and doors, and a fireplace. With an asking price of $75 per square foot, you'd be hard pressed to build a new home with such amenities more economically.


Rowlett, Tex.
Price: $250,000Square Footage: 3,670Bedrooms: 4Bathrooms: 4Acreage: 0.21 acres
Priced at $81 per square foot, this Texas-style mini-mansion includes a two-story entry foyer, open floor plan, two dining areas, a game room, study and a three-car garage. If landscaping isn't your thing, the grass-less backyard features a large stone pool. And it's only 16 miles from downtown Dallas.


Omaha, Neb.
Price: $260,000Square Footage: 2,726Bedrooms: 4Bathrooms: 3
Built in 1909, this corner-lot house is in the Old Market neighborhood of Omaha, an historic preservation district with a lively rhythm and blues scene. The nine-room home has all its original woodwork -- hardwood floors, giant ceiling moldings and baseboards and an ornate staircase. It also features important updates, such as a new roof and new siding.


Marietta, Ga.
Price: $279,000Square Footage: 2,622Bedrooms: 5Bathrooms: 3Acreage: 1
Located on an acre of land in a quiet cul-de-sac, this home typifies the great values available in the Atlanta metro area -- at about $106 per square foot. Marietta, 23 miles outside of Atlanta, is one of the area's premier suburbs, and the local school district is one of the most coveted in the state.


Roland, Ark.
Price: $287,900Square Footage: 2,752Bedrooms: 4Bathrooms: 4Acreage: 4.37
Here's a real estate trifecta -- four bedrooms, four bathrooms... and four acres. The home features stainless-steel appliances and granite countertops in the kitchen and a backyard pool. It offers a combination of luxury and privacy 25 miles from Little Rock, which has fared better than most cities during the downturn.


Newport Center, Vt.
Price: $299,000Square Footage: 2,416Bedrooms: 3Bathrooms: 2.5Acreage: 4.60
This chalet with plenty of property overlooks Lake Memphremagog in northern Vermont. It also features a detached two-car garage, patio and two fireplaces. Quiet Newport Center has less than 2,000 residents, although it is only about a two-and-a-half-hour drive from Montreal.


Portland, Ore.
Price: $309,900Square Footage: 2,008Bedrooms: 3Bathrooms: 1Acreage: 0.13
This corner-lot home in the Beaumont Village area of Portland was built in 1926. But it has been fully updated and remodeled with hardwood floors, a fireplace, stainless-steel appliances and new windows. It features a beautiful backyard with deck and stone patio, and a full garage. The Portland rail system and Interstate 84 are less than two miles away. Portland is a charming city with plenty of diversity. And it's quite green, like the house.


New York, N.Y.
Price: $325,000Square Footage: 450Bedrooms: StudioBathrooms: 1
This studio apartment in Midtown Manhattan has more the feel of a one-bedroom because of its layout. Located in a building with doormen on duty 24 hours a day, it's close to the subway, Central Park and Columbus Circle, to name a few attractions in the Big Apple.


Lihue, Hawaii
Price: $334,900Square Footage: 1,032Bedrooms: 2Bathrooms: 1.5
Lihue, on the island of Kauai, boasts the island's premier shopping district. This two-bedroom town home is part of a community with access to a pool and the Puakea Golf Course, and it's close to the beach. Who needs the indoors in Hawaii?


Tucson, Ariz.
Price: $339,900Square Footage: 3,108Bedrooms: 4Bathrooms: 3
This spacious home is designed to stay cool during hot Arizona days. Other amenities include a three-car garage and a loft, all situated on the 16th green of an adjacent golf course. It's located 17 miles outside Tucson, which is in the midst of a downtown revitalization.


Boston, Mass.
Price: $339,000Square Footage: 1,240Bedrooms: 2Bathrooms: 2.5
This duplex is in the heart of Boston's historic Charlestown neighborhood. It has two levels, two bedrooms, two and a half bathrooms, two decks and high ceilings. The large space is perfect for a young professional, new family or retirees. It's also close to the Boston T and Route 93.


Sacramento, Cal.
Price: $339,500Square Footage: 1,036Bedrooms: 2Bathrooms: 2
Built in 1910, this home combines cottage charm with modern conveniences in midtown Sacramento. Everything is within walking distance: restaurants, art galleries, shops and a diverse culture. Small? Yes, but architecturally appealing and very practical.

In Sour Home Market, Buying Often Beats Renting

In much of the country, for much of the last decade, renting a home has usually been a better financial move than buying one. It's been true in Southern California, San Francisco, Phoenix, Las Vegas and large parts of Florida, the Pacific Northwest and the Northeast.

Renting required you to suffer the scorn of many real estate agents and the skepticism of friends and relatives who believed that owning a home was almost always superior. But renting also would have typically saved you thousands of dollars a year.



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Now, however, the situation is getting more complicated because the housing bust has been playing out unevenly across the country.

In some once bubbly markets, prices have fallen so far that buying a home appears to be a bargain, based on a New York Times analysis of prices and rents in 54 metropolitan areas. In South Florida, Phoenix and Las Vegas, house prices — relative to rents — are as low as in places that never experienced a bubble, like Indianapolis and St. Louis.

But in a handful of other areas, including San Francisco, Seattle and Portland, Ore., house prices remain significantly higher than they were before the bubble began. People who buy a home in these areas will face higher monthly costs than if they rented, even after taking tax deductions into account. As a result, buyers are effectively betting that prices will rise enough in future years to cover the difference.



The country's two biggest metropolitan areas, New York and Los Angeles, are a microcosm of today's more nuanced real estate market. Average house prices across both areas have fallen enough that buying may now be a good deal for many families. Yet there are still significant pockets where renting looks promising — including parts of Manhattan, the New York suburbs and Orange County, Calif.

The buy-versus-rent question is particularly relevant right now. To qualify for an expiring federal tax credit of up to $8,000, home buyers must sign a contract by April 30 and close on the house by June 30. Many economists also expect mortgage rates to rise in coming months.

Camela Witters, a 38-year-old trophy engraver in Las Vegas, plans to close on her first home purchase — a four-bedroom, $164,000 house nearly identical to the one she is now renting — in the next few days. She decided to buy, she said, when she found out she could save money by doing so. "I didn't buy a house when everyone did," said Ms. Witters, who lives with her companion and their children. "So I'm kind of taking advantage of all the foreclosures."

The Times analysis is based on comparing the costs of buying and renting a similar home, using data from Moody's Economy.com, a research firm, and from real estate agents. This kind of comparison can never tell someone for sure what the best financial move will be. But it does show whether a buyer will need a big jump in future prices to cover all the costs of owning — including the down payment, closing costs, property taxes, mortgage interest, repairs and co-op fees.

A simple way to do the comparison is to look at something called the rent ratio: the purchase price of a house divided by the annual cost of renting a similar one. The number 20 provides a useful rule of thumb. When you do the math, you discover that a ratio above 20 means you should at least consider renting, especially if you may move again in the next five years or so. When the ratio is well below 20, the case for buying becomes a lot stronger.

In many large metropolitan areas, including New York, Los Angeles, Chicago, Houston, Dallas, Atlanta and South Florida, the average ratio is now 16 or lower. It was more than 25 in several of these places at the peak of the bubble, about five years ago. With a ratio as low as 16 and interest rates as low as they are, the costs of owning can be less than the costs of renting — and buyers will end up worse off only if prices fall considerably more.

A two-bedroom Spanish-style condominium in Beverly Hills, Calif., for example, recently went on the market for $1.075 million, notes Don Heller of Prudential California Realty. Including taxes, condo fees and the tax deduction for mortgage interest, a typical buyer making a 20 percent down payment would face an effective monthly payment of about $6,000. Compare that with the monthly rent on a similar two-bedroom condo nearby — $7,600.

The math works out similarly in less costly areas, too, be it once booming cities like Phoenix and Orlando, Fla.; Midwestern cities like Minneapolis and Cleveland; or the outer-ring suburbs of most big cities. Much of New York's outer boroughs appear to fall into this category.

The problem for potential buyers is that many real estate agents argue for buying even in places where the numbers don't add up. In the Bay Area, the rent ratio remains around 30. In Seattle, it's about 28. In parts of Manhattan, it appears to be about 25, according to current listings.

"In most markets, you're better off buying," Thomas Lys, an accounting professor at Northwestern University, says. "But once the ratio gets to 25 or 30, I'd say, 'You know what? There may be a bubble.'"

The rent ratio has long been higher in New York and San Francisco than most places, perhaps because of zoning rules or because the cities are home to large numbers of affluent households willing to pay extra to own. So it's possible that prices will not fall. But they are already high enough that the monthly costs of owning often exceed the cost of renting — even without taking into account the down payment or other one-time costs.

A big reason is that prices still haven't fallen much in some places. In Rye, N.Y., the average per-square-foot sale price was only 9 percent lower early this year than at its 2007 peak, according to MDA DataQuick. Some similarly affluent parts of the Los Angeles, Miami and San Diego areas have experienced declines of 25 to 50 percent.

Obviously, owning a home brings benefits that are not strictly financial. It offers stability and, for many people, comfort. As I have written, I bought a house in 2008 (in part because the rent ratio in my area had fallen to about 16). Even in Manhattan, San Francisco or Seattle, a family confident that it will stay put for a decade or more may well be wise to buy today.

But it's worth remembering that the advantages of homeownership are frequently exaggerated. The mortgage-interest tax deduction doesn't eliminate the cost of borrowing money; it merely reduces it. The freedom to paint your house any color you wish comes with the responsibility of paying for a new roof when the time comes. The $15,000 or $30,000 or $50,000 that real estate agents' fees add to the price of a house can wipe out a lot of other savings.

The most striking part of the current situation may be that despite everything that has happened in the last few years, there are still places where renting does not get enough respect.

The 5 Factors Of A Good Home Location

In a real estate boom, buyers will clamor for almost any house that hits the market. This is great while it lasts, but unfortunately when the party's over, some homebuyers will be left holding property that depreciates at a much slower rate. This discrepancy is largely a result of a home's location.
"Location, location, location" is a common mantra in real estate. And it's good advice - except for one thing: most people have no idea what this really means.
A "good location" can mean different things to different people, but there are also subjective factors that determine a home's value. Depending on your personal needs and preferences, you may not be able to buy a home with all of these factors. And that's OK - after all, a home is much more than just an investment. However, next time you're shopping for a new property, keep the following factors in mind.
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Centrality
What part of a city you choose to live in will undoubtedly affect how much you pay for your home. Land is a finite commodity, so cities that are highly developed and are bound from large amounts of additional growth, such as San Francisco, tend to have higher prices than cities that have too much room to expand. For example, many suburban communities have become what the media has dubbed "slumburbs" because such a large number of homes are uninhabited that the areas have fallen into disrepair. In most cases, this urban sprawl occurs as a result of population growth, according to the U.S. Bureau of Census Data on Urbanized Areas. Between 1970 and 1990, the 100 largest urban areas in the U.S. sprawled out more than 14,000 square miles. When sprawling cities experience a population exodus, it's the outlying areas that tend to suffer the most sever declines in property value.


Neighborhood
The neighborhoods that appeal to you will largely be a matter of personal choice. However, a truly great neighborhood will have a few key factors: accessibility, appearance and amenities. Your neighborhood may also dictate the size of the lot on which your house is built.
In terms of accessibility, you should look for a neighborhood that is situated near your city's major routes and that has more than one point of entry. Commuting to and from work is a big part of many people's day, so a house with easy access will be more desirable than one that is tucked away and can only be accessed by one route.
The appearance of the neighborhood is also important. Large trees, landscaping and nearby green or community spaces tend to be desirable. You can also judge the popularity of the neighborhood based on how long homes in that area tend to stay on the market; if turnover is quick, you're not the only one who thinks this is a desirable place to live.
A great neighborhood should also include important amenities such as grocery stores, shops and restaurants. Most people like to frequent places that are convenient - if you need to drive a great distance to get to anything, this is likely to make your house less attractive. Schools are another important amenity - even if you don't plan to have kids, if you want to sell your home this is something many buyers will be on the lookout for. The distance from and quality of local schools both play into this.


Development
It's not just present amenities that matter, but future ones as well. Plans for schools, hospitals, public transportation or other public infrastructure can dramatically improve property values in the area. Commercial development can also improve property value. When you're shopping for a home, try to find out whether any new public, commercial or residential developments are planned and consider how these additions might affect the desirability of the surrounding areas.


Lot Location
The next thing you need to consider is where the house is actually located. In this instance, there are a few things you should watch out for.
For example, if your home is on a busy road, you will probably get it for a lower price, but it will also be more difficult to sell down the road. The same may hold true for houses that stand next to or back onto commercial property, such as a grocery store or gas station, or houses on streets that get an unusual amount of parking traffic and parked cars, such as those near large churches or community centers. This is why a large number of such homes are rentals.


The House Doesn't Matter
Suppose that you have narrowed your choices to two homes that stand side by side in a great neighborhood. One needs repairs and updates, but has a huge lot. The other is in tip-top shape but sits on a lot half the size. The prices of the two homes are similar. Which do you choose? This is one aspect of house hunting that surprises a lot of people (except for maybe real estate investors). In most cases, the beat up house is the better investment.
Why? Your house is a depreciating asset. The lot, on the other hand, will maintain its value (or likely appreciate) relative to the house. If you bulldozed both houses, the larger lot would sell for more. So, if you can, choose a bigger, better shaped or better situated lot over a nicer house. A less attractive house can always be updated, added on to or replaced altogether while the lot can't be changed.
Location isn't entirely subjective - in fact, it's based on a fairly static set of criteria. So, when you set out to shop for a new home, make sure the neighborhood isn't just desirable to you.

California's Tax Credit Monies May Go Fast

The $100 million allocated for California's first-time homebuyer tax credits may be depleted in about 10 to 20 days or sooner, according to C.A.R.'s Economics team. California's Franchise Tax Board (FTB) plans to begin accepting applications on May 1, 2010 for tax credits up to $10,000 for first-time homebuyers and for homes that have never been previously occupied. However, the total tax credit allocation for all taxpayers is $100 million for first-time homebuyers and $100 million for new homes, both on a first-come, first-served basis.
C.A.R.'s forecast of 10 to 20 days to deplete the $100 million allocation for first-time home buyers is based on estimated May sales figures and other parameters. It does not take into account the possibility that buyers scheduled to close escrow in April may delay closing until May to take advantage of the tax credit. If a shift in closings from April to May occurs, the first-time homebuyer tax credits may be depleted even more quickly than indicated above.
Applications for the California tax credit must be faxed to the FTB after escrow closes. The FTB will update its website when the 2010 application form and other information become availablee.
REALTORS® are reminded not to give their clients any tax or legal advice, such as the availability of funds under the California tax credit program. Agents should encourage their clients to seek specific advice from an accountant, attorney, or other professional as they deem appropriate.
For more information, please refer to C.A.R.'s Homebuyer Tax Credit Chart 2010.
SIGN UP FOR TAX CREDIT WEBINAR: Join us on April 27, 2010 at 1 p.m. for a C.A.R. Legal Live Webinar on the homebuyer tax credit. In this one-hour session, C.A.R.'s Senior Counsel Stella Ling will discuss the California and federal homebuyer tax credits. Topics to be addressed will include the eligibility requirements for both tax credits, how quickly California's $200 million allocation may run out, and potential liability issues for REALTORS®. Registration is simple, but space is limited, so sign up now at www.car.org/legal/legal-live-webinars.

Economic indicators in these metros have gone from bad to worse, with no sign of recovery

Miami boasts a popular South Beach club scene, Art Deco Architecture, and perhaps the best Cuban food in the country. But residents don't have much else to celebrate.
More than three years after the economy started its downward slide, the Miami metro area, like a handful of Sun Belt cities, still hasn't begun to recover. Median home prices in Miami have fallen 38% since its market peaked in the second quarter of 2007; the city's 11% unemployment rate is above the national average and has grown more than most of the 40 cities we surveyed.


List: 10 U.S. Cities In Free Fall
Cities in the "Sand States" of Florida, California, Arizona and Nevada, where overbuilding was rampant, are also in trouble, claiming nine of the top 10 spots in our list of cities in free fall. In Las Vegas, Riverside, Calif., and Phoenix, median home prices have fallen 50%, 44% and 37% from their respective peaks. Jobs are vanishing. Though country-wide, employers added 162,00 jobs last month, Riverside gained 13% fewer jobs in February 2010 (the latest numbers available by metro) than it did the same month three years earlier. Tampa, Fla., saw a 10% drop, and Los Angeles added 9% fewer jobs over the same time period.
These cities are also slow to absorb their glut of unsold foreclosed homes, keeping recovery at bay.
"These were highly speculative housing markets," says Jonathan Miller, president of Miller Samuel, a Manhattan-based real estate appraisal firm. "In the markets that have unloaded a lot of foreclosed housing stock there's still a lot more coming."
Behind the Numbers
To find the country's cities in free fall, we rated its 40 largest Metropolitan Statistical Areas (MSA) on six metrics.
We ranked each MSA on the percent its median home price has fallen since its individual peak, using data provided by Local Market Monitor, a housing market data tracker. To get an estimate for the number of new homes being built, we used data from the U.S. Census Bureau, which tracks how many building permits are issued. Roughly 98% of these permits become new home starts. We looked at the percent change in new building permits between February 2007 and February 2010.
We also wanted to know how many people were moving in and out of these metros, since a growing population buoys a local economy. We used the Census Bureau's most recent population estimates to rank each metro on its net population change between July 2006 and July 2009. To judge each city's productivity we also ranked each metro on its per capita gross domestic product in 2008, the most recent year available, using data from Moody's Economy.com. Finally, we ranked the metros on the percent change in unemployment between January 2007 and January 2010 and the number of jobs they added between February 2007 and February 2010, with data from the Bureau of Labor Statistics. We averaged these rankings to arrive at a final score.
Sunshine State Stagnancy
Florida cities dominate our list, with Tampa, Orlando and Jacksonville joining Miami. Florida's real estate market keeps falling even as some herald the start of a rebound. The state's comparatively sluggish foreclosure process keeps those homes from getting easily flushed out of the market. Because every foreclosure must be approved by a judge, the procedure takes a minimum of five months to complete.
"In states with complex foreclosure laws, the recovery is clearly being delayed," says Mike Simonsen, CEO of Altos Research, a Mountain View, Calif.-based real estate research firm, who adds that lengthy foreclosures may be driving away real estate investors in these cities.
A Trouble Spot in the Northeast
Picturesque Providence, R.I., is the only New England metro on our list. Economically, it's struggling far more than other cities in the region. Although Providence saw a slower three-year increase in unemployment than some other major metros, it still has a high unemployment rate, at 14%. The city also added 9% fewer jobs in 2010 than three years earlier. Workers are getting the message and leaving town. Providence is the only city in our top 10 to see a net loss in population.
Grim News for the Golden State
California cities are struggling too. Riverside, Los Angeles and Sacramento are suffering because of the knocks they took after their inflated housing markets began to plummet. Unemployment in the City of Angels has nearly tripled in three years, to 12%. Riverside's unemployment has also ballooned, to 15%. Meanwhile Sacramento saw a 75% drop in new building permits. These are troubling signs for Cali metros, but not surprising. The end of the state's home-price climb triggered more than just a housing slump.
"In California, so many jobs were concentrated in construction," says Michael Fratantoni, vice president of research at the Mortgage Bankers Association, the professional association for real estate financiers. "Jobs building single family homes wound up not being sustainable, and there were a lot of job losses."
The long-term consequences of the housing crash in these cities are still playing out, and new factors that complicate a recovery keep cropping up.
"Places like Phoenix and Riverside may take even longer to recover because people might just pick up and leave to go to places doing better," says Fratantoni. "It may make more sense to leave, rather than wait for jobs to return."


Top 5 Cities in a Free Fall

1. Miami-Fort Lauderdale-Pompano Beach, FLNet Population Change, 2006-2009: 1.47%Per Capita Gross Domestic Product: $42,645.52Change in New Building Permits, February 2007-February 2010: -77.46%Change in Unemployment, January 2007-January 2010: 202.70%Change in New Jobs Added, February 2007 - February 2010: -9.68%Change in Median Home Price from Market Peak: -38%

2. Tampa-Clearwater, FL Net Population Change, 2006-2009: 2.33%Per Capita Gross Domestic Product: $42,562.92Change in New Building Permits, February 2007-February 2010: -44.18%Change in Unemployment, January 2007-January 2010: 235.90%Change in New Jobs Added, February 2007 - February 2010: -9.87%Change in Median Home Price from Market Peak: -32%

3. Riverside-San Bernardino-Ontario, Calif.Net Population Change, 2006-2009: 4.40%Per Capita Gross Domestic Product: $32,403.49Change in New Building Permits, February 2007-February 2010: -65.69%Change in Unemployment, January 2007-January 2010: 177.78%Change in New Jobs Added, February 2007 - February 2010: -12.94%Change in Median Home Price from Market Peak: -44%

4. Jacksonville, Fl.Net Population Change, 2006-2009: 3.83%Per Capita Gross Domestic Product: $16,035.65Change in New Building Permits, February 2007-February 2010: -66.09%Change in Unemployment, January 2007-January 2010: 227.03%Change in New Jobs Added, February 2007 - February 2010: -7.74%Change in Median Home Price from Market Peak: -23%

5. Phoenix-Mesa-Scottsdale, AZNet Population Change, 2006-2009: 7.85%Per Capita Gross Domestic Product: $40,870.16Change in New Building Permits, February 2007-February 2010: -83.61%Change in Unemployment, January 2007-January 2010: 148.65%Change in New Jobs Added, February 2007 - February 2010: -10.01%Change in Median Home Price from Market Peak: -37%Click here to see the full list of Ten U.S. Cities In Free Fall

Why Knocking on Doors is Back in Fashion?

There is no question there have been hundreds of tantrums regarding the control of inventory REO agents have had in the past couple of years. Many who had those tantrums failed to create the relationships early enough to get a foothold on any meaningful accounts is the main reason. Other reasons follow – many discovered that being a rock and roll REO agent requires a lot of patient capital; extremely disciplined work standards and the fact REO agents resign themselves to server side applications that keep them at the keyboard for hours on end.
Well, times are changing and I’m going to make a short explanation of why door knocking is vogue…
Lenders statistically net more money on a Short Sale than on a REO. That is the shift that is taking place and the key to capitalizing on this requires an effort similar to what successful REO agents did; simply create the relationship before anyone else!
The only way you are going to find out who these sellers are is to find them prior to the Notice of Default (NOD) being filed. Once that happens, they are open and fair game for everyone and a new target for a litany of mail. Good old fashioned shoe leather will beat out direct mail on this one. Why? Because nothing beats a face to face call on a prospect and especially on this subject. Also, direct mail cannot ask and receive referrals like you can in person. Pretty simple.
Count on NOD’s rising too. There will still be an REO market of sorts, as a result of poor documentation of liens, uncooperative subordinate lien holders, high income sellers that don’t fit guidelines and poor yield spreads that will cause the lender to elect foreclosure over a short sale.

Home Buyers Can Go Green without Buying a Green Dream House

It’s becoming more common that buyers are looking for homes with Energy Star approved appliances, windows, and fixtures, solar panels and more. This presents a problem for sellers whose homes were not built with the “going green” movement in mind. It’s time to think outside of the box with ways to amp up the environmental friendliness of a home without the expensive additions.
Here are some considerations that are healthy for the planet and helpful for the wallet to consider:
Use a service like WalkScore to figure out how to reduce carbon footprint – consider the home’s proximity via walking or biking to frequently used amenities, then play up how many fewer miles the home owner would drive in a month by living in this home.
Plant a garden – or at least rope off area for one. Home grown fruits and vegetables are environmentally sustainable, contain less pesticides and cut grocery costs.
Provide Neighborgoods information – a new website that is dedicated to helping people borrow, rather than buy, the things they need for single use. Perfect for home buyers and sellers who are trying to get packed up or settled in.
Plant a tree in the buyer or sellers name (preferably on site or in the area) and promise that it will benefit families, flora and fauna with clean air for years to come.

California's Home Buyer Tax Credit... Are you Staying Informed?

There are a variety of places to go read about the latest home buyer tax credit that California is implementing starting up on May 1. As more of these credits come available from federal and state government groups, Realtors are responsible for helping buyers understand and be aware of these types of credits and whether or not they’re ready to take advantage of them.
So, to help you stay in the know about Cali’s latest fiscal endeavors and how it will affect your world, here are some links to stories that will give you the lowdown.

SF Examiner – California’s improved home buyer tax credit a day late, but still great

SF Chronicle – Some home buyers get new state tax credit

International Business Times – California Extends Home Buyer Tax Credit