With only three months until the new $8,000 first-time homebuyer and the $6,500 existing home buyer federal tax credits are set to expire, time is running out on an opportunity that buyers and sellers may not see again. The tax credit, which was originally created in mid 2008, then expanded in January 2009 and extended again this past November, was only designed to be a short-term incentive to drive more buyers into the housing market.

That’s why many people in Congress are saying that, come April 30, 2010 when the credit expires, “That is it!”

So the clock is ticking. The average real estate transaction, from offer to closing, takes approximately 90 days and that is just about where we are now. To meet the federal deadlines, a buyer must have a binding sales contract in place by April 30, and have the home purchase completed by June 30. To achieve those time frames, buyers need to act almost immediately. Those deadlines also mean that this is also a prime opportunity for sellers. As the April 30 deadline gets ever closer, we are bound to see an influx of home-seekers who are hoping to find a house and make an offer in time to receive the tax credit. So for sellers who have been considering moving up in the market, downsizing, or relocating, now is an opportune time to put their house on the market.

We’re at a unique time in real estate. The tax credit deadline is helping to create the “perfect storm” in the market, due to four key elements – I.I.I.P:

• Inventory: Although there are an overwhelming number of markets where inventory is down, and even with a decline in inventory year over year, there are still plenty of homes on the market for buyers to choose from.
• Interest Rates: Mortgage rates remain at near historic
lows. This means higher purchasing power for buyers.
• Incentives: The extension and expansion of the homebuyer tax credit is providing benefits to buyers who may have otherwise not been interested in getting into the market.
• Prices: Affordability remains at an all time record level nationally and in many of our local markets as well. While the urgency of trying to find and close on a home before the deadline may seem stressful, it doesn’t have to be. For those who are in the early phase of the home buying process, there are a few key things that you can do to speed up the process:
• Find A Qualified Real Estate Agent. If you do not already have one, work with a real estate agent who will be able to help identify mortgage lenders, home inspectors,
lawyers and others who will play a role in helping to get the buying process completed by the April 30 deadline.
• Know Before You Go. Free online tools and mobile applications for smart phones are available to help you quickly and conveniently learn about neighborhoods and view homes on the market. Consult with your own tax advisor as to your ability to qualify for the tax credit based upon income levels, length of residency/homeownership and housing prices. Arming yourself with as much knowledge as possible in the beginning is bound to save time in the long-run.

3581 Earl Drive, Santa Clara

This Lawrence Meadows home was situated on a quiet street and was meticulously maintained by its owner for many years. Although the decor was outdated the home was clean and functional. Featuring dual pane windows, a 10 year old roof, and automatic garage door the home was in move in condition. I recommended that the owner do some quick updates but she had lived in the home for 40 years and didn’t want to go through the hassle.

After a few weeks we did get an offer and were able to negotiate a fair price of $600K and were able to close.

3581 Earl Drive, Santa Clara
Bedrooms: 3
Bathrooms: 2
Garage: 2 Car
Sqft.: 1,240
Lot: 6,500
Sold: $600,000

380 Hillsdale Ave, Santa Clara - Westwood Oaks

My listing in Westwood Oaks closed this week.  It was a great listing and located in the prized Cupertino School District.

This was an estate sale handled by children of the owners.   The home was fairly original with the exception of a spacious family room addition that was constructed in the 70’s.

My initial feeling about the house was that it was a great property.  The home featured a quiet location in the neighborhood and functional floor plan.  In spite of that there was plenty of room for improvement and the sellers were open to making the home more marketable.

After three weeks of remodeling we were able to put the home on the market.  Within a week we received 9 offers and sold the home over asking.  Take a look at the pictures below to see the progression of work that was done to make this home a spectacular listing.

hillsdale-pics

For those who are not aware FHA is a the only really viable loan solution for those who are considering buying a home right now with no more than 3.5% down. This may come as a shock to some, but yes people are still buying homes with very low down payments, and the government is insuring them. Restrictions and guidelines are tough so most realtors prefer not to have to deal with FHA especially on the selling side. They require additional appraisals, the home must be free of termites, all appliances must be working, chimney must be in tact, no roof leaks, over all the home must be in good and livable condition before close. Also the transaction may take a bit longer depending on the lender you use and if they are set up for FHA and have their own underwriters. Also is very difficult to sell a home over appraised value with an FHA loan. FHA has a special addendum that sellers and buyers are required to sign that absolves the buyer from any liability if the home does not appraise for the purchase price.

Recently I closed two listing transactions with FHA loans. The first was a nice well maintained home in Santa Clara in Darvon Park. The buyers really wanted the home and before we could get a open house done they sent us a good offer and my seller’s accepted it. It was a roller coaster ride from there, with several extensions to the contract, but nonetheless it closed and a very deserving family bought the home.

The other transaction was an older home in the Old Quad of Santa Clara. It had its fair share of problems but went through the FHA process with an approval. Due to the price of the home being under $400K a majority of the buyers were FHA and the likelihood was that we would have to sell it FHA. One thing about FHA buyers is they will generally pay more than non FHA due to the fact that their supply of homes is more limited than buyers using conventional loans. With that said, be sure to have an accurate assessment of your home’s value because regardless of what the buyers offer, FHA will not lend and will absolve the buyer from any liability if the property does not appraise for the purchase price.

Although some sellers and agents may consider them to be a hassle, but FHA loans do close. Its important to be patient with the process, allow substantial time for contingencies, and set your expectations accurately and it should close.

Immaculate Santa Clara home in Westwood Oaks neighborhood in Santa Clara. This home is updated and well maintained and features refinished hardwood floors, updated bathrooms, new fixtures, and a spacious family room. This home is also situated in the Cupertino School district and features Eisenhower Elementary, Hyde Middle, and Cupertino High.

Street: 380 Hillsdale Avenue
City: Santa Clara
Bedrooms: 3
Bathrooms: 2
Price: $849,000
Size: 1,689 Sqft.
Lot:  6,000 Sqft.
Schools: Cupertino Schools : Eisenhower, Hyde, Cupertino High
Virtual Tour: http://www.380Hillsdale.com
Property Flyer: 380 Hillsdale Ave. Flyer by Vinicius Brasil

This single family Santa Clara home in the Lawrence Meadows neighborhood just closed this past week.  This home had been neglected for some time and needed to be updated and cleaned up for sale.  Take a look at the slideshow to see the work that was done to transform this home into a contemporary styled home in move in condition.

I just closed the sale on this Santa Clara home this past week. My clients have two children and their home was set up to be more conducive to accommodating the children and being comfortable than showing the potential beauty of the home. Like most sellers they wanted to sell for the highest price the market would produce.

They took my advice and were willing to do some important updates to the home such as granite counter tops in the kitchen and bathrooms. The existing carpet was fairly new and they went with neutral and updated paint colors. The home was built 20 years ago, and features a very functional floor plan with high ceilings, a spacious master suite and an open kitchen layout to the family room. All we needed to do was de-clutter the space and bring in some suitable furniture to make the home feel more luxurious and appealing through staging.

Meeting with my clients I presented my marketing plan and the range of prices that their home could receive in the current market. To achieve a price in the top range, I recommended that we do some simple updates like refinishing the hardwood floors, cleaning up the landscaping, and staging the home. They agreed and we went to work. I coordinated with the gardener, the handyman, and rented some furniture and personally made some accents to the home with artwork and accessories to give it a professionally staged look while still making it comfortable for the owners.

In the end we were able to sell the home for full price. Take a look at the slideshow to get an idea of the complete transformation.

3120 Membrillo

Immaculate home in Santa Clara’s desirable Forest Park neighborhood. This home features 4 bedrooms 2 and a half baths with with 1810 Sqft. of living space and a spacious 8300 Sqft. lot. The home also features a newer roof, copper plumbing, dual paned windows, wall to wall carpeting, a granite kitchen, spacious back yard, updated baths, and much more.

Street: 3041 Pruneridge Ave.
City: Santa Clara
Bedrooms: 4
Bathrooms: 2.5
Price: $819,000
Size:1810 Sqft.
Lot: 8300 Sqft.

Property Flyer: 3041 Pruneridge Ave. – Santa Clara – Property Flyer

Send to a Friend	Single Family Res Type: Detached Single Family Status: Active List Date: 05/17/09 Price: $474,500 Last Modification Date: 05/18/09 Location: 2038 SAN RAFAEL CT, Santa Clara, CA 95051 (map) Area: 008 – Santa Clara Bedrooms: 3 Bathrooms Full: 2 Bathrooms Half: 1 Approx. Sq. Ft.: 1534 Approx. Lot Size: 5,795.sf Approx age: 51 MLS#: 80924264 Old MLS# (6 digit): 80924264

This bank owned home is a great buy in Santa Clara. Its the popular 3 bedroom 2.5 bath Windsor floor plan in Darvon Park. The home is in move in condition. The kitchen was remodeled some years back, both bath rooms are very client and have new vanities with granite countertops. The back yard is very good sized, the home has expansion options which leave plenty of space in the back yard.

Downsides are that there has been some settling which is typical for these older homes, but this one has a bit more than typical. The roof needs replacement, the windows are old, and the back yard and front yard need some attention. Overall for a price of $475K, this is a good Santa Clara home at a very good price.

Currently Santa Clara has 194 Notice of Defaults filled on properties. A notice of default gets filed on a property in Santa Clara County when the owner is behind on the mortgage by 2 or 3 months. This is the first stage of the foreclosure process referred to as pre-foreclosure.

Rivermark Townhome Short Sale

In order remove the notice the owner must make the home current and pay back the mortgage owed.

Newer developments have seen a higher rate of defaults due to the recent sales within the last 5 years of these homes. Home owners are unable to refinance their properties since many owe more than the current market values.

In Rivermark alone there are several short sales and 11 homes that have notices of defaults filed and 7 condo’s in the Miraval Complex. Many of these Rivermark home owners have already engaged in trying to sell their home as a short sale. Others may be attempting to renegotiate with their banks to stay in their houses, others perhaps bracing for foreclosure.

When confronted with this reality the homeowner needs to contact their bank and try to work out a resolution. This is where your persistence will pay off. Lenders seldom give any concessions to anyone let alone a debtor, but if you are persistent and can show hardship and willingness and ability to pay you should be able to modify your loan.

The other avenue is to sell your home short. The process is similar. The bank wants to know your financial situation before it can agree to any deficiency sale. Essentially you have to prove you can no longer afford your home or that you are forced to sell due to relocation or some other factor.

Both of these options have become more viable to home owners, so their is no reason why homeowners should be foreclosing these days.