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3.8% Real Estate Tax... Effective January 1, 2013

Steven Keefe, Broker/Owner
Coldwell Banker Sky Ridge Realty

www.mountainmoves.com
steve@mountainupdate.com
909.744.7690

Beginning January 1, 2013, a new 3.8 percent tax on some investment income will take effect.  Fortunately, it will not affect all real estate transactions.  It is a complicated tax that targets certain transactions.  It was passed in 2010 by Congress with the intent of generating $210 billion to help fund Obamacare.

As I said, it will not be imposed on all real estate transactions, which is a common misconception.  The new tax will be imposed on some but not all income from interest, dividends, rents and captital gains.  The tax will fall only on individuals with an adjusted gross income above $200,000 and couples filing a joint return with more than $250,000 AGI.

A large number of the sales in our market are second homes.  Pursuant to the new tax, it is a complicated calculation, but in some instances the 3.8% tax may be applied to the gain at the time fo sale.  Sellers are strongly urged to contact their tax professional to discuss with them the potential effect the new tax may have on them.

This new tax was never introduced, discussed, or even reviewed until just hours before the final debate on the massive health care legislation began.  It took a year for the legislation to be enacted.  Congress again foolishly attached the real estate transaction with the responsiblity to pay for this massive social program.  The real estate industry agressively opposed this new tax that will affect some homeowners, but unfortunately was unsuccesful with the legislation passing on a largely party line vote.

The new tax is sometimes called a "Medicare tax" because the proceeds from it are dedicated to the Medicare Trust Fund.  That Fund is scheduled to run dry in only a few more years, so this tax is a means of extending its life.

National Association published a online handbook giving multiple examples of how the new tax may affect homeowners, if you would like a copy of the handbook.  Email me a request with 3.8% Tax in the subject line and I will forward it to you.  Use steve@cbskyridge.com as the email.

 

Tough Real Estate Times Bring out Sketchy Deals

 
Steven Keefe, Broker/Owner 
Coldwell Banker Sky Ridge Realty 

www.mountainmoves.com
steve@mountainupdate.com
909.336.2131

Tough times bring the scammers out of the woodwork.  No where is that statement more true than in aquisition and finance.  Of late we are seeing an influx of deals where one or both of the principals wants to do an AITD or Wrap.  Don't misunderstand me, there may be instances where this type of vehicle can be utilized for the benefits of the parties, but in general, this type of financing can be dangerous. 

Candidly, in any transaction where the buyer takes title to the property subject to the existing loan or loans without consent of the lender is fraught with danger and potentially fraud.  Any measure designed to "trick" the lender could be construed as fraud.  There are all kinds of financing "tricks" that surface in a market like this.  When you have excess inventory... sellers become desperate to look at any deal, coupled with many home buyers fresh off a short sale or foreclosure wanting to buy the "creative juices" start flowing.  Caution to sellers... if the bank won't loan them the money, maybe you should consider putting yourself at risk to do what the banks won't.

In a AITD (all inclusive trust deed) or wrap, the principle is the same.  The buyer essentially takes over the existing sellers mortgage without the lender knowing about it.  The usual method is for the buyer to make a payment to the seller then the seller makes the payment to the bank and pockets the rest.  Usually in the agreement, the buyer promises to get a loan at some point in the future, which sometimes happens but often does not.  Here are a couple of the many things that buyers and sellers need to think about when entering into an agreement like this.

• What if the buyer makes the payments to the seller and the seller never pays the bank?
• What if the buyer stops making payments?  What is the sellers remedy?
• What will the lender do when they find out title has been transferred to another party without their consent?
• Who is protected in the event of catastrophic loss... fire, earthquake, flood etc.?
• Who gets the interest deduction?

Most loans contain a clause in the deed of trust that states that the seller can't let someone else take over the loan. The lender throught the acceleration clause can excercise it's right to ask the seller to correct the problem, or they have the power to initiate the foreclosure process. 

Anyone who comes to me with a scenario utilizing out of the box or unconventional financing is advised that they need to seek advice from their chosen expert regarding the dangers and consequences of unconventional financing.  We are not qualified to offer advice as to the legality and viability of this type of transaction. In this type of transaction there are many moving parts that any of which can create a problem down the road so make sure all parties understand the risks involved.

Men vs. Women in the Home Buying Process

Steven Keefe, Broker/Owner 
Coldwell Banker Sky Ridge Realty 

www.mountainmoves.com
steve@mountainupdate.com
909.336.2131

 

COLDWELL BANKER REAL ESTATE SURVEYS 1,000 MEN AND WOMEN TO DISCOVER GENDER DIFFERENCES IN THE HOME-BUYING PROCESS

Survey Finds that While Couples Make Real Estate Buying Decisions Together, Women Make Up Their Minds Significantly Faster than Men
   
It often seems as though men and women are from different planets, but every day millions of couples navigate through day-to-day and even life-altering decisions. Because a home is the biggest purchase most people will make in their lifetime, Coldwell Banker Real Estate surveyed 1,000 individuals to discover how much men and women differ in the home-buying process.

Coldwell Banker engaged a third-party research firm, International Communications Research (ICR), to delve into the inner psyche of men and women, asking questions such as “How long did it take for you to know that the last home you purchased was right for you?” and “If you found the home of your dreams but had concerns about its security, would you still be interested?” Coldwell Banker also surveyed couples on additional topics, such as “Who wears the pants in the relationship?” when it comes to making major financial decisions.

“The results were surprising.  Not only did we uncover some of the inherent differences between men and women, but we also pinpointed a number of ways that the two genders are actually the same. For example, both men and women are increasingly concerned with having a space to work in their homes – something we would not have seen 40 years ago.  We also found that feeling insecure about a home’s safety is a deal-breaker for most people, regardless of gender.”

Below are some key highlights from the Coldwell Banker Real Estate study:

Women may be inclined to make up their mind more quickly than men …

When asked how long it took before they knew their home was “right” for them, almost 70 percent of women had made up their mind the day they walked into the house, vs. 62 percent of men. Conversely, significantly more men needed two or more visits: (32 percent of men vs. 23 percent of women).

Women would rather live closer to their extended family than to their job …

55 percent of women find it more important to be closer to their extended family (those that do not live in their household) than to their job, compared to only 37 percent of men.

A home’s security is a deal-breaker for both men and women …

64 percent of women said that if they found the home of their dreams but had concerns about its security, they would no longer be interested. More than half of men agreed (51 percent).

Couples say that no one “wears the pants in the relationship” in terms of major financial decisions …

When asked who wears the pants in the relationship (when it comes to major financial decisions, such as purchasing a home), almost 70 percent of respondents living with their significant other said it’s actually mutual.  However, 23 percent think that they, themselves, wear the pants in the relationship, not their partner. More men than women said this (26 percent vs. 20 percent, respectively).

Men and women agree on how they would use a spare room, for the most part …
When the respondents were asked how they would use an extra 12 x 12 room if it could be anything they wanted, men and women agreed on the top three most popular, and very practical, responses:

Bedroom: 25 percent

Office/Study: 15 percent

Family Room / Den: 11 percent

However, men really do want a “Man Cave”…

Interestingly, out of the 8 percent who indicated they would turn that spare room into an entertainment center, it was a preponderance of men leading the charge.  In fact, four times as many men as women said they would use the extra space for recreation / entertainment.

In addition to providing background on the survey results, Coldwell Banker agents are able to offer tips for couples who are currently going through the process of buying a home.  “These results further validate how critical it is for couples to recognize each other’s differences and work together, from deciding a neighborhood to how to use a spare room.  Online tools and the expertise of a real estate professional can be particularly helpful for couples, especially if they work together step-by-step along the way.”

Contact the professionals at Coldwell Banker Sky Ridge Realty for all of your real estate related needs.

Realtors aren't Born a Realtor

 
Steven Keefe, Broker/Owner 
Coldwell Banker Sky Ridge Realty 

www.mountainmoves.com
steve@mountainupdate.com
909.336.2131

 

Although the recent real estate market has been a challenge for many real estate professionals, opportunities still exist and as the market improves, it will again be a lucrative opportunity for those who have sales skills and a good work ethic.

I have had the good fortune to study up close some of the best realtors in the business as the owner broker of one of the most successful offices in the Coldwell Banker System.  Something interesting that I have found is that all top producers have had previous lives... what follows is a list of occupations held by some of my top producers prior to joining us in real estate.

Nurse
Car Parts Salesman
Plumber
Painter
Policeman
Fireman
Sailmaker
Retail Sales Manager
Engineer
Homemaker
Food Service
Retail Sales
Actor
Model
Insurance Sales
Loan Officer
Bank Manager
Secretary
Customer Service Rep
Teacher

Successful Realtors come from all walks of life.  The occupation offers significant financial rewards, an opportunity to build a business of your own, and has a relatively low barrier for entry.....

If you are tired of what you are doing and looking for a great career, Real Esate might be a good thing for you to look at.  Contact me to discuss the opportunity.

 

California Association of Realtors (C.A.R.) Releases California Housing Market Forecast for 2010

Steven Keefe, Broker/Owner 
Coldwell Banker Sky Ridge Realty 
Arrowhead Home Loans, Inc.
www.mountainmoves.com
steve@mountainupdate.com
909.336.2131

 

"California's housing market continued its strong sales rebound this year resulting from the continued pace of distressed properties coming to the market," said C.A.R. President James Liptak.  "This follows two years of double-digit sales declines in 2006 and 2007.  Looking ahead, we expect sales to moderate to a more sustainable pace."

"After experiencing its sharpest decline in history, we expect the median price to rise moderately over the next year,"  Liptak added.  "2010 will mark the beginning of the 'new normal' for California's housing market.  This 'new normal' will likely feature a steady stream of sales driven by distressed properties in the low end of the market, coupled with moderate home-price appreciation."

The median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 this year, according to the forecast.  Sales for 2010 are projected to decrease 2.3 percent to 527,500 units, compared with 540,000 units (projected) in 2009.

"Housing in California has become a tale of two markets," Liptak said.  "The low end continues to attract first-time buyers and investors, with a resulting shortage in the number of homes that will be availble for sale.  Sellers at the high end, however, continue to be challenged by the ability of home buyers to secure financing as well as their concerns about where prices are headed.  While demand from first-time buyers for low-end properties will continue throughout next year, sales could be impacted if discretionary sellers do not return to the market by the second half of 2010."

"2009 marked a unique opportunity for first-time buyers, " Liptak said.  "Homes were more affordable than they have been in years, interest rates hovered near historic lows, and the federal tax credit helped more than 1 million people become homeowners nationwide.  Now is the time for Congress to extend the Federal tax credit and expand it to all buyers, not just first-timers."

"With distressed properties accounting for nearly one-third of the sales in 2010, inventory will be relatively lean, under six months during the off-season months, and roughly a four month supply during the peak season," said C.A.R.  Vice President and chief economist Leslie Appleton-Young.  "We expect the median price to decrease slightly through the remainder of 2009 and into next year, then rise before leveling off next summer.  For the year as a whole, home prices are forecast to reach a median of $280,000."

"Although it appears at this time that lenders are closely monitoring the flow of distressed properties onto the market, there could be an exertion of downward pressure on home prices should a heavier than expected wave of foreclosures come to the market next year," she said.

"The wild cards for 2010 include foreclosures, loan resets, the labor market, and the California budget crisis, as well as the actions of the federal government," Appleton-Young said.

To get a copy of the full forecast go to:

Download Car-forecast1

Arrowhead Lake Association General Manager Presents to CBSRR Staff.

Thursday October 8, 2009 ALA general manager John Rutledge addressed the staff of Coldwell Banker Sky Ridge Realty, Arrowhead Home Loans, and Alpine Escrow on the topic of ALA's new policy with regard to Conveyance of Pier Site Easments.  The new policy and a copy of the ALA's Frequently Asked Questions can be found as an attachement to this blog post.

John presented the new ALA policy that became effective September 1, 2009 that will require a seller of a lakefront property that wishes to convey a pier site easment in conjunction with a sale to identify the boundary between the ALA reserve strip and the subject property.  What will be required is for the boundary to be located and identified through a survey.

"John as always did an excellent job of representing and clarifying the ALA's new policy.  We appreciate the good working relationship we have with him and the ALA", stated Steve Keefe Broker/Owner of Coldwell Banker Sky Ridge Realty.  Keefe went on to say: "this new intiative is important because it will assist new buyers in better understanding the boundaries and how the reserve strip works.  Generally, we as an industry are opposed to any type of point of sale compliance requirements... in this instance it really is in everyones best interest to be clear on the boundary.  ALA has our full support in this initiative."

For further information, or questions regarding ALA, go to their website at: www.ala-ca.org or call the office at 909.337.2595

Go here to get the document referenced above: Download Ala notice

 

For Referrals Only a Real Estate License Holding Company

For Referrals Only (FRO) is a Real Estate Brokerage organization devoted exclusively to referrals.  It provides the opportunity for those with a California Real Estate license to keep “active” and receive a “referral fee” for helping friends, acquaintances and past clients with the difficult choice of selecting a real estate agent.  Payment of a fee would not otherwise be possible as license law prohibits paying a commission to anyone without an active license with a broker.

 

We believe that real estate sale is a more than full-time job.  Part-time agents do not provide the best services to the client and equally important, it is very frustrating and usually an unsuccessful experience for your client.  As a Referral Specialist, you will serve your friends’ and clients’ interests by helping them use the services of a full-time agent.  The FRO Referral Specialist Independent Contractor Agreement specifies that the Referral Specialist will not perform any services of a real estate salesperson.

 

 

What “For Referrals Only” will provide:

 

1.       A framework which better defines the roles and responsibilities of those who choose not to be full-time agents.

2.       A system and organization to maximize the income of the Referral Specialist.

3.       Association with the good name and reputation of Coldwell Banker Sky Ridge Realty.

4.       The experienced full-time agents at Coldwell Banker Sky Ridge Realty to refer your friends and customers.

5.       Access to Coldwell Banker’s National Referral Network to refer friends and customers throughout

North America

.

6.       An accelerated fee schedule.

If you are a real estate licensee who has your license inactive and would like to collect referral fees, contact Steve Keefe at steve@cbskyridge.com

Call for Action- Extend and Expand the Homebuyer Tax Credit

Steven Keefe, Broker/Owner 
Coldwell Banker Sky Ridge Realty 
Arrowhead Home Loans, Inc.
www.mountainmoves.com
steve@mountainupdate.com
909.336.2131

As I have communicated with you during this past year, we have taken a leadership position vocalizing our strong support of extending and expanding the existing homebuyer tax credit.  With the existing tax credit window now rapidly closing for first-time homebuyers, and congress back in session, now is the time for you to make voices heard. 

Earlier today, the National Association of Realtors issued a Call for Action to its 1.2 Million members in support of this objective.  I urge you to go online to NAR Realtor Action Center and use the turnkey communications tool in order to contact each of your elected officials in Washington D.C.  We must impress upon Congress the importance of extending and expanding the homebuyer tax credit legislation in order to accelerate a broader economic recovery.

Specifically, I support expanding the tax credit from first-time buyers to all homebuyers, increasing the maximum amount of the tax credit from $8,000 to $15,000, eliminating the existing income caps for eligibility purposes, and extending this homebuyer tax credit for one year from the date of enactment.

These are all the issues that our corporate leadership addressed during its meetings with key members of the House and Senate in Washington D.C. recently.  This Call for Action is an opportunity for you to follow up with your local legislators and have our voices heard once again.  

It is my opinion that stimulating demand for housing- particularly in the repeat or move up buyer part of the market is the most effective way for Congress to help lead the U.S. economy into a recovery and back to a path of growth.  Timing is critical.  We ask that you take action today regardless if you are a Realtor or not  

Buyers Market... The Perfect Storm

Steven Keefe, Broker/Owner 
Coldwell Banker Sky Ridge Realty 
Arrowhead Home Loans, Inc.
www.mountainmoves.com
steve@mountainupdate.com
909.336.2131

 

Friday of this week I did a training for my agents on "Buyers Reluctance."  The following are a few points that I hi-lighted in that session.

In a buyers market, there are opportunities that come available to buyers that a normal market does not afford.  It often surprises me how often buyers fail to realize these opportunities.  In our market currently, rates are at all time lows, there is a lot to choose from, prices are very favorable, and sellers are extremely motivated and willing to sweeten the pot to move their property.  These variables contribute to what I feel is the best buying opportunity I have seen in my 20 years in the business.  I will call it the perfect storm. 

Eventually, each one of the variables that are contributing to this great opportunity will vaporize.  What buyers need to understand is that if they are going to buy, now is the time to make the move. 

Why aren't they....

Many buyers are in a fence-sitting, waiting, loitering, delaying, dawdling, postponing, vacillating, hesitating, wavering, faltering, pausing, footshuffling mode when they should be seizing the day and taking advantage of the opportunity to make a really good deal.  Some buyers are imobilized by the fear of paying too much.  They are attempting to "time" the market and buy at the bottom.  What buyers fail to realize is that there is no bottom and waiting to try to time is will only cost them money and missed opportunity.  No one can time the market.

The real buyers... the ones making a good deal aren't trying to predict the floor, they are just trying to buy smart and make a good deal realizing that we are near the bottom of the market and the next cycle will likely be and upswing.  Smart buyers ask the question: "Has the market dropped enough to make a sensible purchase?"

The first step for a buyer making a good deal and maximizing opportunity is to get in contact with the one person who has a finger on the pulse of the market, your professional Realtor.  I own a brokerage where I have approximately 60 top agents who day in and day out come across those opportunities that buyers dream of.  Buyers need someone who can educate them on what is happening in the market and how best to structure a deal to maximize the gain.

If you need to be put in touch with someone who can do that for you, don't hesitate to call me at the office at 909.336.2131

Go Jump in Lake Arrowhead! Pola-Rotary Jump

No, we are not mad at you!

Go Jump in the Lake is the brain child of Dr. Pat Rains, president of the noontime Rotary Club, to help raise funds for those in need of help on the mountain. On February 14th at 10am, volunteers will take part in the first annual "PolaRotary Bear Jump" at the Lake Arrowhead Resort and Spa Beach..

Currently, about 20 individuals, possibly suffering from frostbite of the brain,have volunteered (see list below) to "jump" into the frigid water of Lake Arrowhead for charity. All proceeds raised from this event will go to non-profits helping improve the lives of so many on this mountain. Each volunteer jumper must have sponsorships totaling $500, or more, from those who wish to see them freeze.

For just $5, $10, $20 or more, employees, friends, and relatives now have the perfect opportunity to go tell their favorite boss, friend, brother or sister, wife or husband to go "JUMP IN THE LAKE".

Everyone is welcome to come out and enjoy the fun. Hot cocoa and coffee will be available along with a good time for all who attend. But be sure to bring a nice warm coat!

Here is a partial list of those brave individuals who have volunteered to jump (in alphabetical order):

1.    Butch Baumann - Owner, Rim forest Lumber
2.    Holly Brown - Soroptimist President
3.    Reverand Randy Buecheler -Mt. Calvary Luthern Church
4.    Steve Caloca, Gen. Manager UCLA Conf. Center
5.    Kirk Coult - Chairman, GC Properties
6.    Tom Cutler - Owner, Cutler Ins. Agency
7.    Jeff Goss, President, LACSD Board of Directors
8.    Charlie Harrison - CEO, Mts. Community Hospital
9.    Steve Keefe - Owner/Broker, Coldwell Banker Sky Ridge Realty, Arrowhead Home Loans, and Alpine Escrow, Inc.
10.  Kathleen Kirk, Owner/Chef, Casual Elegance
11.  Mike Kuroyama - Store Manager, Stater Bros. 
12.  Anne Lorkowski - Lake Arrowhead Mt. Sunrise Rotary Club
13.  Lewis Murray - President/CEO, Lake Arrowhead Chamber
14.  Tony Nicassio, Capt. San Bernardino Co. Sheriff's Dept
15.  David O'Brien, Crest./Lk. Greg. Rotary Club
16.  Marc Peebles, Battalion Chief San Bernardino Co. Fire Dept
17.  Pat Rains - President, Lake Arrowhead Rotary
18.  Leslie Dodge-Taylor, President, Crest/Lk Greg. Rotary Club 
19.  Pat Welsh - Owner, The Royal Oak
20.  Lynne Wilson, Real Estate Broker.

Help support these brave individuals who are "jumping" by sponsoring one or more today! No sponsorship is too small (or too large)!