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When A "Approved Short Sale" "Isn't".

 
Steven Keefe, Broker/Owner 
Coldwell Banker Sky Ridge Realty 

www.mountainmoves.com
steve@mountainupdate.com
909.744.7690

I received a call a week ago from a client that found a property on Realtor.com which had language in it stating “Approved Short Sale”.  The client first wanted to know what that meant because in general short sales are not approved until an offer has been submitted to the bank. 

When a listing agent lists this information in the remarks for a listing, they do so because at some point in the recent past, an offer was submitted that was accepted by the seller, and sent on to the bank for approval of the shortage the bank would receive.  This process sometimes takes an extended period of time… in some instances after the lengthy approval process the buyer decides to not move forward, or the approval from the bank came back at a higher price than what was submitted.  When this happens the agent will put the property back on the market knowing that the previous offer was approved at a certain amount, this becomes the pre-approved figure. 

Unfortunately, we sometimes are experiencing agents playing games by offering a property at a list price that they know is well below what the bank would accept…. Someone might ask what good does that do, the answer is not much except maybe for the listing agent.  In fact this practice of misrepresenting a list price can do a lot of harm. 

Back to my example above… I decided to contact the listing agent and I asked this question:  “Listing Agents Name, Address of the property, Is the short sale approved for $159,000?  I have someone interested in writing an offer.”  The answer I received was “Property Address, Is an approved short sale, but the price is not yet approved.  We have an offer on it that we have sent to the bank.”  A little confused, my reply was “If the price isn’t approved, what is approved about it?”  The agent answered “The bank will accept a short sale.  They sent us an approval for that only so far.”  Ladies and Gentlemen, that is not an approved short sale and should not be represented as such in marketing materials.  As a general rule of thumb, it is a given that a lender will accept less than what is owed on a property in today’s real estate market.  Agents representing that they have an approved short sale when they don’t  is a blatant mis-representation that can cause a great deal of problems.

My client chose not to pursue this property after the information was revealed to them.  Had we chosen to move forward, we would have requested a copy of the “Short Sale Approval” to see in fact under what terms the sale had been approved.  I guess in this case all it would have said is “yes, we will take less?”

Call me if I can help you navigate the complicated world of real estate.  I can be reached at the office at 909.336.7995, or via email at steve@cbskyridge.com  I would be happy to help you get the best deal and avoid the challenges.

For a Seller: How to Compete with Short Sales and Bank Owned Properties

 
Steven Keefe, Broker/Owner 
Coldwell Banker Sky Ridge Realty 

www.mountainmoves.com
steve@mountainupdate.com
909.336.2131

Six out of every ten homes sold in Lake Arrowhead year to date were not distressed properties.  Two of ten were negotiated short sales and 2 were sales of foreclosed properties.  Where other markets, the percentage of distressed properties is much higher, Lake Arrowhead has fortunately weathered the storm better than average.  That being said… 40% of the buyers out there purchased a distressed property so it is important to note that sellers must be educated on how best to compete with short sale sale and reo listings. 

I hear sellers say….”I’m not competing with distressed properties.”  When I hear this, my immediate response is unfortunately you are…. Sellers that are in denial about the fact that short sales and bank owned properties are a major competitor for them are working at a distinct disadvantage.  The first step in achieving the sellers goal of selling the property is the understanding they will be competing for buyers with bank owned properties and short sales and there are a few things they must keep in mind.

First, get rid of the emotion.  Sellers who is either a bank, or one that is upside down and negotiating a short sale have zero emotion in the transaction.  The property is priced below market value without consideration to the emotional aspects of the property.  It is simply a business transaction.  There are no memories.  There are no attachments.  Its business.  Traditional sellers are looking for the emotional equity in the home above and beyond the market value.   In this type of market where plenty of nice homes are available that are distressed, sellers trying to get more than the numbers dictate won’t sell.

Second, price is king!  The property must be price below market value.  In any given price range there are 85 homes on the market with between 6 and 7 selling.  Regardless of how “special” the property is, it must be priced within the lowest 10% of all properties in the range.  Less than 1 in 10 homes currently listed in most price ranges will not sell.  If there are 10 homes priced better than the sellers, the chances of the property selling in the current market is very unlikely. 

Third is access.  Sellers must make their property available and easy to be seen by both buyers and real estate professionals.  If the people who need to see it can’t, or if it is difficult, chances are they will move on to the next one that is easier to deal with.

Fourth, is condition.  Make sure the property is in the best condition possible.  Many distressed properties due to the sellers circumstances are not in the best condition.  Having the property in tip top shape, and clean is a big advantage in securing a buyer.  Consult with your real estate professional regarding the things that will matter most.

Fifth is to consider offering seller financing.  Often, sellers are not in a position to offer financing, but those that are can many times attract a buyer away from a property that does not have seller financing offered.  Again, discuss with your real estate professional whether or not offering financing will be helpful, and what that type of deal might look like.

Sixth which is equally as critical as pricing is to hire the right real estate firm and agent.  Not all real estate agents were created equal.  The current market conditions amplify the importance of hiring someone who has momentum in this market and is making deals happen.  Too often do sellers hire the person who sold them the property, or a friend which puts them at a distinct disadvantage.  It is critical in this market for sellers to have on their team someone with momentum and a proven track record.

Coldwell Banker Sky Ridge Realty has been the number one real estate firm on the mountain for nearly 30 years.  Contact me directly for a recommendation regarding which team member will be the best fit for your need.

State of the Mountain Presentation March 19, 2011

 
Steven Keefe, Broker/Owner 
Coldwell Banker Sky Ridge Realty 

www.mountainmoves.com
steve@mountainupdate.com
909.336.2131

 

Good Morning, I know many of you, for those of you whom I don’t know, I am Steve Keefe, I am a real estate broker  who owns the Coldwell Banker office here in Lake Arrowhead. 

 Thank you for braving the weather to show up this morning.  I am going to talk for a half hour or so about Real Estate and how it relates to the economy here on the mountain.  I have been asked repeatedly to put together an update on what is happening from my perspective locally here with real estate.  Some of you have heard some of this material at other presentations or functions I have attended in the recent past.  I’d also like to acknowledge some of my team members who are in attendance this morning.  If you guys wouldn’t mind standing up…  Name them, ….. these Real Estate professionals are part of the most successful real estate organization in the San Bernardino Mountains.  Our company is involved in nearly 50% of all transactions and they produce over 2 times the business volume as our next closest competitor.  I am very proud of them and it is because of them that I stand here before you.  Many of you are current clients of ours.  I would also like to acknowledge and thank you for you confindence in us during these challenging times.  We appreciate the opportunity to be of service to you.  Thank you all for being here… I am looking forward to sharing with you my thoughts on the current market and where the market is going.

 A little perspective…

 You have copies of a report I generated this morning that compares home sales, average sales price and total volume over the last 7 years from peak to peak.  These are single family homes in the mountain communities.  The figures demonstrate the following: 

 

• The market peaked in home sales in 2004 with a total o f 1779 sales or 3558 units or “deals”.  Last year there were 749 sales with 1498 deals.  The percentage decline from the peak was 58%.  Coincidently we have seen only a 25% drop in the number of Realtors in the market.
• For average sales price the peak was 2007 at $446,000.  Last year the average sales price was $260,693 representing a 42% decline from the peak.   This doesn’t mean that homes purchased in 2007 are worth 42% less than they were it just means the average sale in the market dropped to that figure.
• Dollars into our local economy was at a peak in 2005 where the real estate industry generated 1.279 Billion Dollars in sales and $35,568,070 in commission dollars.  Last years figures were approximately $390 Million in sales and $10,856,404 in commission dollars representing a decline of nearly 70%.... any guesses why money might be a bit tight. 

The charts included in your packet illustrate graphically what the differences year to year look like for both home sales and commission dollars generated. 

In looking at the first chart, “Peak to Peak Home Sales” I will offer the following observations: 

• From 2004 to 2006 we experienced the greatest drop in the number of transactions.  Over the last 4 years, we have experienced a stabilization of the market where we can likely expect this level of activity for the next few years. 
• 2009 and 2010 were very similar years.  2010 started out strong, but mid year when the first time buyer tax credit ran out, the second half of the year lacked the strong finish.
• The graph indicates that we are likely at bottom and will begin to see a moderate increase in the number of transactions. 

In looking at the second chart, “Peak to Peak Commission Dollars”, I see the following. 

• This graph is designed to move you to hug your Realtor.  The numbers are staggering.  Especially to me. 
• Real Estate generated in 2005 over $35.5 Million dollars in “Economy” on the mountain.  Due to market fluctuations and other factors that number last year was reduced as I said before by nearly 70% to Just under 11 Million.  Incidentally, my company in share of the market in 2006 was greater than the total number of commission dollars generated in 2010. 
• I have a question for John Lorenz… from your perspective, how does this graph affect our local economy….?
• Again over the last 3 years, the market has pretty much stabilized indicating an stabilization of the market. 
• I wouldn’t hope for the numbers in 04, 05, 06 anytime soon, but at least we are experiencing some stabilization of the market.  

So what is happening now… 

• The federal government is attempting to dig into our pockets further and raise taxes through the elimination of the mortgage interest deduction.
• The federal government is evaluating the viability of Fannie Mae and Freddie Mac and the dissolution of these entities is likely in the future.
• The federal government as a result of the “mortgage loan crisis” has imposed the egregious regulatory controls on the mortgage industry which has resulted in the restriction of available loan products and programs and has made obtaining a home loan challenging at best. 

All of which don’t help the cause, and in the case of the elimination of the tax deduction and the dissolution of Fannie and Freddie could have significant effects on the future markets.  Fortunately, there is strong support from our industry to influence outcomes and to minimize the damage. 

On a positive note, the Media… often a negative factor in the equation of late has been pumping out some positive information.  

• On January 10^th of this year across my desk came an article published in the Wall Street Journal entitled “Market for Vacation Homes on the rise.”  the first of its kind for a very long time hi-lighted the second home market in the south east and the increase in activity there.   
• Apparently the Press Enterprise follows the WSJ because a week later, 3 of my agents were contacted by them to talk about our market specifically.   
• The article had a positive spin which caught the eye of Channel 7 news who contacted me a week ago, said they were on their way up the hill and would like to interview me about good deals on second homes in the mountains and what opportunities are available to homebuyers here in our market.  I set them up with a buyer who was currently purchasing who did an excellent job and viola, we have something positive for people to chew on. 

Another positive note is that either through the media or otherwise buyers are discovering that now is likely the time.  

• Home prices are extremely favorable… a double edge sword good news for buyers, bad news for those “in the bubble”
• Buyers are perceiving that we at bottom.  Last quarter of 2010, many buyers were waiting on the fence thinking things were going to go lower, the word is getting out that this is not likely.
• Mortgage rates are at 40 year lows and despite the retraction in products and stringent guidelines, loans are being funded. 

Also positive, we are starting to see some of the upper end money come into the market.  We recently closed the Yeager estate which sold for 6 million and there are multiple deals over $800k in escrow which has been an extremely impacted market over the last 24 months.  

Is anybody having any fun in this market…. 

So what is like to be a seller in today?

• It’s tough to be a seller.  Sellers are feeling the gambit of emotions, fear denial, anger relief, frustration, and rightly so in the years ‘04 to ’06 it was great to be a seller wasn’t it.
•  Many of the sellers in the market are trapped in the thinking that you never lose money on real estate so they are waiting.  Unfortunately in nearly every instance those owners who purchased in 2004, 2005, 2006  what we call the bubble somewhere in the neighborhood of 2000-to- 3000 of them are going to lose money and some of them a lot of money.  
• It is true the market will rebound… it always does, the question is will it rebound to the extent that the initial investment is recovered plus the carrying costs while they wait.  If what I have said is true, if it truly will take 24 months for us to see meaningful recovery and it costs the owner $4,000 per month to carry the home will that home appreciate enough to cover the $100,000 difference.  I don’t believe so.  What is a seller left to do.  Make a business decision to stop the bleeding.  Taking the hit today will be less expensive in many cases than it will 2 to 3 years from now.  I am obviously speaking in generalities, but when someone comes in and tells me they want to sell their property, but they aren’t going to lose money this is the talk we have.  They will either lose it now, or they will likely lose more later.  
• Someone who bought in the bubble on average will be looking at a 30% loss in value on average.  What about those sellers that are totally upside down due to the market correction There are tough choices sellers that are underwater need to make.   

o       Some although they can afford it are effecting strategic defaults where they prolong the process while they discontinue payments because they believe it is a bad business deal

o       Some are attempting to take advantage of programs to modify loan terms.  Very few of the requests I am aware of actually have come through.  Until recently I didn’t personally know anyone who had been successful.  Nationwide the success rate is estimated at between 4 and 6 percent.  Unfortunately options dissolve for borrowers.

o       Some are avoiding foreclosure through the short sale process which we could spend hours discussing.  Across the mountain

o       Some are sticking it out in the hope that the market will return their investment. 

• Each scenario requires careful analysis this is why it is so important for a seller to choose wisely when they select the agent and brokerage that will represent them.  Choosing the wrong Realtor, the one that might be telling them what they want to hear can be very costly.   

So what is like to be a buyer today…. Are buyers having fun?  Lets just say it is better to be a buyer than a seller today, but buyers are realizing some frustrations as well. 

• Financing has become more and more challenging and in many instances buyers who have been accustomed to a streamlined home loan process are being subjected to ever more scrutiny.  Good news loans are being offered and funded, bad news be prepared for a pat down that would make the TSA proud.
• Multiple offers on foreclosures are also creating a great deal of frustration.  In some instances there will be up to 10 offers… only one person gets the deal.
• The short sale process is taking its toll with delayed approvals and extended timeframes.  Agents ill equipped to deal with the process is exacerbating the problem for buyers.

Despite the challenges, it is a very good time to be a buyer, in fact some might say it is the best time ever in that home affordability  and value for the dollar has likely never been this attractive nor will it be in the future. 

How about the Realtors… are they having fun? 

• In 2004, 2005, 2006 a monkey could have done this business.  Not so today.  The role that the brokerage/Realtor plays in the process is becoming more complicated and more challenging as time goes on.  In 1980, a client signed 3 documents and they owned the home.  Today the file containing all of the documents is 3 inches thick. 
• Unfortunately, many of today’s Realtors are ill equipped to deal with the current challenges.  Gone are the days that a client could just use a “Friend” to help them with the sale.  Unless of course the “Friend” actually knows what they are doing. 
• I talk to agents all of the time that are frustrated because they can’t keep up.  I love it, but it is a very tough business. 

Other service providers mortgage, title etc are all experiencing similar challenges.  It is not a lot of fun out there, but those that have dug in and are  grinding it out are getting the job done…. Better times will arrive for everybody. 

So where are we going….. 

I’ll come back next year and we will see how the following predictions pan out.  I predict that we will see both moderate increases in the number of transactions peak to peak and the average sales prices. 

• I am looking for 800 transactions with an average sales price of $285,000 which will translate to $456,000,000 in sales and commission dollars of $12,722,000 which represents a increase to the market of 7% on transactions and 17% on dollars pumped into our economy. 
• In 2009 49% of home sales peak to peak were “distressed” in 2010, that number was 51%.  In 2011, we will likely return to just below the 2009 levels as sellers become more keenly aware of what they need to do to sell their “standard” sale. 

o       Arrowhead Woods Distressed 2009= 37% vs. 2010 31%

o       Crestline/Lake Gregory 2009= 58% vs. 2010 68%

o       Running Springs 2009= 62% vs. 2010 66%

 Some of these figures are a little disturbing, but they are the reality of our market.  As I said, we will see these numbers decrease as percentages over time as sellers become educated on what they can do to compete. 

 I was asked in October of last year to predict how long before we will see recovery in our market.  There are a couple of factors that influence my prediction.  I could spend more time than we have talking about any one of these topics so I will keep it short. 

• #1 is the number of distressed properties in market, foreclosures and short sales.  Based upon current inventory levels and predictions being offered by greater minds than mine, it has been predicted that there is likely a minimum of 2 years of significant distressed property inventory. 
• #2 Jobs…Significant work needs to be done to enhance our job situation.
• #3 Consumer confidence goes hand in hand with Jobs and market stability.   

Based upon what I know, I publicly stated that in my opinion, we are looking at a minimum of 24 months… mark your calendars April 2013 is the magic date….

• In all seriousness, I anticipate that we will see improvement from here to 2013, and in that time I will be encouraging my team to do what is necessary to provide the best level of service possible to this community and capitalize on the opportunities to make the best of this challenging market. 
• I am personally grateful that I have the opportunity to work, live and raise my family in this great community and will do everything in my power to promote it.  Thanks for the opportunity to be with you today. 

 Not sure how much time we have….. if you would like I could field a couple of questions for you

Love this Graph... It says it all... no commentary needed

 
The only thing I need to say is we are at the point of maximum opportunity...

Credit to Steve Harney for providing this graph.  To find out about other graphs REALTORS can use visit his blog site at www.kcmblog.com

If the Seller is Upside Down... the Broker Must Disclose...

 
Steven Keefe, Broker/Owner 
Coldwell Banker Sky Ridge Realty 

www.mountainmoves.com
steve@mountainupdate.com
909.336.2131

When your real estate broker tells you that it must be disclosed that you are upside down, he’s dead serious because if a homeowner fails to disclose this fact to a potential buyer both of you can be in hot water.  A recent California Court of Appeals case Holmes vs. Summer  held that if a real estate broker knows that a listed property is upside down and can’t be sold without a short sale he has a duty to disclose this material fact to a potential buyer.  The listing broker has the duty to disclose to any buyer the fact that a short sale might not get lender approval and might not close.

 In the above cited case the buyer entered into a contract with a seller to purchase a home for $749,000.  The buyer then sold the home they owned to get the money to close escrow on the new home.  Shortly after the buyer discovered that the loans on the target house totaled over $1.14 million dollars.  The agreed upon price of $749,000 was about $392,000 shy of what was needed to actually close the transaction.  To complete the sale either the seller was going to have to kick in $392,000 or the banks… there were 3 of them would have to agree to take less than full payment. 

 The buyer sued the Listing broker claiming that the listing broker was under obligation to disclose to the buyers that the property was over encumbered and could not be sold for the agreed upon sales price.  The trial court ruled in favor of the broker, the court of appeal reversed the trial courts decision finding that the broker was obligated to disclose to the  buyer that there was a substantial risk that the seller could not provide equitable title.

 The seller’s broker argued that they had a duty not to disclose the seller’s confidential financial information.  The court ruled that the 3 loans were a matter of public record and should have been disclosed.  It was argued that there was enough information provided the buyer that they should have known that the 3 loans existed.  The court danced around this issue and found that the onus was on the broker to disclose as they are “more knowledgeable about such things.”

 The lesson in this is that the risks and details of a short sale need to be fully communicated to a buyer.  When there is a substantial risk that a transaction may not be completed, the brokers involved must disclose.

 Lesson for the seller… if your broker screws up in this disclosure you will also likely be sucked into the litigation and may be subject to awards of damages claimed by an affected party.  If you know you are upside down, make sure everybody is aware to stay out of trouble.

Need the Best Broker in Any Market in California?

 Finding the right real estate broker can either make or break your real estate transaction.  As the #1 Broker in the San Bernardino Mountains, I am uniquely qualified to understand what it takes to be a top Broker and how we do things differently.

Not all real estate professionals are created equal.  In fact a high percentage of real estate practitioners do little or no business.  Often consumers have difficulty in determining whether or not someone is a "producer" or not.  When the make the wrong choice, it costs them time, money and aggrevation. 

If you are looking for a top real estate professional in any market in California, you are in luck.  I have have relationships and access to a network of proven professionals in any market in California.  Contact me at steve@cbskyridge.com or via cell at 909.744.7690 if you would like to find out who I would recommend.

Economic Recovery... The Iron Will Never Be Hotter!

Steven Keefe, Broker/Owner 
Coldwell Banker Sky Ridge Realty 

www.mountainmoves.com
steve@mountainupdate.com
909.336.2131

It is becoming evident that the current economic conditions have affected significantly the American psyche.  From top to bottom, we have become a nation that is more cautious, more fearful, and more risk averse than we have been in a very long time.  This far reaching anxiety has hobbled recovery and is a primary reason  for the slow pace in job creation.

Recent events have contributed to this mass uncertainty.  Our nation is fearful of both those things we know as well as those things we don’t.  Previously unimaginable events such as the collapse of major financial institutions, the near death of General Motors, the governments massive rescue efforts, the Federal Reserves massive lending and the incredible budget deficits have all piled on to create a fearful consumer base.

Despite all the bad news, the U.S. economy produces almost $15 Trillion dollars in goods and services and employs 139 Million people so there are some things going right…. but the uncertainty and fright are a reality.

Currently, Americans are not only reducing debt, they are erecting protections against those unknowns that could attack their financial security.  Americans are rat holing away as much as they can to build up what they perceive to be the only source of financial security… their own savings.  In the recent past, Americans borrowed because they felt they could repay, now they are not borrowing because they worry they can’t.

Those at the top of the food chain share the risk aversion.  Companies are hoarding cash.  Businesses who usually invest 100% or more of cash flow in new buildings, equipment, and software are no longer doing so in an effort to boost cash reserves in preparation for uncertainty.  No new hires and layoffs are also a cost cutting trend that companies are currently embracing again to reduce expenses.  Companies are fearful of the known and unknown are are reacting by contracting. 

Recovery will prove reassuring… as confidence builds, the economy will spontaneously accelerate.  The current trend of pessimism and anxiety will delay that recovery.  In my opinion, the key to building confidence and reducing anxiety is in appropriately addressing Americans aversion to risk taking.  Many underestimated the risks in the previous cycle, and are overreacting now.  It is kind of the pendulum effect where the pendulum swings back to the other extreme.  We are currently on the outer edges beginning to swing back toward the middle which will stimulate recovery. The magic question is how long will it take for Americans to figure it out.

With regard to the purchase of real estate, those who respond first will be the ones who reap the most benefit by snatching up below market value opportunities.  It is tough to be a leader and step outside the comfort zone….but great reward is awaiting those who do take the steps to push past that uncertainty and take advantage of the available opportunities.  One thing is for sure the future will bring greater certainty, but it will also bring higher prices, higher interest rates, and more competition for those buyers wanting the good deals…. Strike while the iron is hot… The iron is very hot. It will never be hotter.

Just a Bit Off The Asking Price... Guinness Book Maybe?

Steven Keefe, Broker/Owner 
Coldwell Banker Sky Ridge Realty 

www.mountainmoves.com
steve@mountainupdate.com
909.336.2131

This last week, David Vail with CAPRE a local competitor of ours reported a sale as closed that sold for $4.150 million dollars less than the original asking price. 

In November of 2008 David listed 27818 Palisades Dr. in Lake Arrowhead, a lakefront property for $6,450,000 according to the Rim O' the World Association of Realtors.  During the 12 months or so he had it listed, he had reduced it one time to $3,995,000 which was the last published asking price when it was reported as "under contract" a month or so ago.  Last week it was reported as sold and closed escrow at $2,300,000.

Often sellers will list high hoping for a miracle.  In most instances, sellers with this strategy fail to accomplish their goal, and move from agent to agent gradually reducing the price until it either sells, or they quit trying.  It isn't often that an agent (in fact probably never) has successfully reduced a list price by over $4,000,000 and closed the deal.  Congratulations David, somebody call Guinness, we might have a world record.

A Matter of Perspective.... Descriptions Realtors Use

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

 

Out on tour every Thursday, the Listing Agents in our MLS provide comment to entice agents to view their listings.  After tour, our agents get together and make their own comment about the listings…. Sometimes it can be pretty humorous.  What follows is a week on tour from the listing agents perspective and then the rest of the world.

 

Listing Agent:  New on market, Big, Clean, 2.5 Bath, Vacant, Lives out of State, Must Sell.

 

Other Agents: Large House, Cute, Nice and Warm, Great Views, Showable, Priced to Sell.

 

Listing Agent:  Newer, Vacant, Stream Below

 

Other Agents:  Clean, Nice, Over Priced, 2 Levels.

 

Listing Agent:  #1946, Go left and Park at #26, Breakfast Quiche… Yum, Turn Key with a dock.

 

Other Agents:  Nice House, Nicely Built, Showable, 2 Car Garage.

 

Listing Agent:  REDUCED AGAIN!  LAKEVIEWS!, TWO LOTS, MAKE OFFER!

 

Other Agents:  Scary House but priced right.

 

Listing Agent:  Great Location and Lake Exposure

 

Other Agents:  Lovely House, priced a little high but showable.

 

Listing Agent:  1^st Access Road right off of Yukon, Boat in Garage can be purchased with house.

 

Other Agents:  Has potential, clean, Access Road, 3 Car Garage.

 

Listing Agent:  BIG PRICE REDUCTION!  THE LOWEST PRICED HOME IN MEADOW SHORES W/DOCK.  ENJOY GOURMET DESERTS.

 

Other Agents:  Didn’t like it, chopped up, no view.

 

Listing Agent:  ½ Double Dock Site

 

Other Agents:  Good Buy, Showable

 

Listing Agent:  Gorgeous!  Includes Single Slip Dock, furnished plus two boats lunch 10-1.

 

Other Agents:  Overpriced

 

Listing Agent:  Reduced again by 50k, Drive by only, Look past the mess please,

 

Other Agents:  Priced Right, Place is a mess, Short Sale.

 

Listing Agent:  See all three levels, large, large, large

 

Other Agents:  Huge house but sellers way ambitious, over priced.

 

Listing Agent:  GORGEOUS LIKE NEW, 4Bed, 4Bath, Game Room, Tour 10-1, Please leave card for a drawing.

 

Other Agents:  Beautiful House, but way over priced, should be under 1 Million.

 

Listing Agent:  Bring All Offers, Down 100k from day one, Bring All Offers, Looks new, 2 Car Garage and or Boat Storage.

 

Other Agents:  Cheap Construction, 2 Car Garage, They are getting there on the price.

 

Listing Agent:  42k reduction, Sharp house, large family room, well cared for, 2 car garage, can use access road also.

 

Other Agents:  Priced Right, driveway is a little tough, but otherwise ok house.

 

Listing Agent:  Dessert, see this great property, Large Home Shows Well.

 

Other Agents:  Priced a little high, big house, showable, 3 levels, nice back yard, Should be under 600k.

 

Listing Agent:  BLANK (Absolutely no comment, Zip, Zero, NADA!)

 

Other Agents:  Showable, interesting photos of this one.

 

It is all a matter of perspective…

 

California Tax Credit for New Home Purchase

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

The first step to stimulate economic growth in our state.

What the Bill Does?

• Establishes a tax credit for the purchase of a newly constructed single-family home htat will be used as a primary residence for a minimum of two years.
• Home must be purchased on or after March 1, 2009 and before March 1, 2010.  
• Tax Credit is equal to 5% of the value of the home, not to exceed $10,000. 
• The total program is capped at $100 Million dollars of credit. 
• Allows individuals to take a tax credit of up to $10,000 spread over 3 years in 3 equal installments.  
• The credits will be allocated by the Franchise Tax Board on a first come first served basis and the Franchise Tax Board may establish guidelines to implement the credits 

How the Bill will Benefit the State

•  The tax credit will put people back to work, stop the downward sprial of housing prices, and increase tax revenues. 
• Over a seven year period, the net benefit to the state is over $1 billion.  
• The tax credit will help to entice people that are waiting to see how far the market drops to buy new homes now.   

Why California Needs this Bill

•  The housing industry accounts for 11% of the states output and revenue.  
• New housing construction contributes nearly $40 billion per year to the California economy and supports over 266,000 jobs statewide. 
• Something needs to be done to stimulate economic growth and get California jump started.  This tax credit is the first step toward that jump start.