California property owners who are over 55 years of age may qualify to transfer the assessed value of their principal residence home sold in one County to their new principal residence they buy in another County.

A copy of the tax bill from the other county and a copy of the applicant’s birth certificate will be required by the County Assessor to be included in the application.

This website provides property tax answers for property owners who are selling and plan to move.

A Copy of the grant deed for the new purchase along with a copy of the closing statement of both the sale and purchase are also required.

Here is a short summary of the eligibility requirements…

• Either the seller, or a spouse residing with the seller, must be at least 55 years of age when the original property is transferred.
• The replacement home must be of equal or lesser “current market value” than the original property.
• The replacement property must be purchased or built (newly constructed) within two years (before or after) the sale of the original property.
• An application must be filed by the owner within the three years following the purchase date, or completion date of new construction, of the sale of the original property.
• The filing is a one-time-only opportunity.  Prop 60/90 cannot be granted if the claimant, or spouse of the claimant has already been granted this relief in the past.
• Prop 60/90 relief includes, but is not limited to: single family residences, condos, units in planned unit developments, cooperative housing, corporation units or lots, community apartment units, mobile homes subject to local real property tax, and owners’ living premises which are a portion of a larger structure.
• You, the taxpayer, are not eligible for this relief until you actually own AND occupy the replacement property as your principle residence

Proposition 90

Proposition 90 allows a homeowner to transfer the base year value of their principal residence in one county to a newly purchased residence in another county providing that certain requirements are met. Only a limited number of counties are participating in Proposition 90.

Proposition 90 Requirements (Santa Clara County):

• The requirements for Proposition 90 in Santa Clara County are the same as for Proposition 60 except for the following:

1.  Effective date: November 9, 1988.
2.  A non-refundable processing fee of $78 is required.

• The effective dates and filing fees vary from county to county. Those property owners interested in transferring the base year value from their principal residence located in Santa Clara County to a newly purchased residence in another county should call that county to make sure that the other county is participating in Proposition 90.
• Applications must be filed in the county where the newly purchased residence is located.
• The following is a list of those counties which have approved Proposition 90 and will currently accept base year value transfers from other counties.

It is essential for you to call the co-operating County to which you wish to relocate.  You will want to verify that they are currently accepting the value transfer under Prop 90 and what their particular requirements are.  For any further questions, the property tax office in Sacramento for all counties in California can be reached by calling (916) 445-4982.

Counties can and should be verified by calling the appropriate number…

• Alameda – (415) 272-3755
• Orange – (714) 834-2746
• San Diego – (619) 531-5507
• San Mateo - (415) 363-4500
• Los Angeles – (213) 974-3101
• Santa Clara – (408) 299-4347
• Ventura – (805) 654-2181

Assessor Real Property – General Questions, Property valuations and Propositions 3, 8, 60, 90
70 West Hedding St., East Wing
5th Floor
San Jose, CA 95110
Phone: 408-299-5300
Email: RP@asr.sccgov.org

131 Millrich Dr.  this Los Gatos house sold for nearly 1% less than the asking and 411 Clearview Dr., a townhome, sold for nearly 5% over the listing price !

A reminder that ‘sweet spotting’ your asking price will always pay off.

The good news….neither property was a short sale.

2 Los Gatos Houses sold this week,

131 MILLRICH DR, Los Gatos 95030 (Los Gatos)Single Family Home 3 bed(s) Baths: 4|1 bath(s)   SqFt: 2,593  Lot: 9,100 sq ft

List Price: $1,449,000     Sold Price $1,332,000.00

______________________________________________________

411 CLEARVIEW DR, Los Gatos 95032 (Los Gatos)Townhouse  3 Beds, 2|1 Baths:  SqFt: 2,122 Lot: 2,220 sq ft

List Price: $749,000 Sale Price: $780,000

Assoc. Fee: $428

We see a crossroads ahead…one where the buyers in the Los Gatos Real Estate Market aren’t in the driver’s seat.    Could this mean the homes for sale are in a Seller’s market?

Remember…

Spring is coming and the end of the $8000 First time buyer’s credit is there waiting.   I wonder if will  lead to more vigorous sales?…bidding?

The new law allows a long-time resident of the same main home to claim the homebuyer credit if they purchase a new principal residence. To qualify, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. The IRS has stepped up compliance checks involving the homebuyer credit, and it encouraged homebuyers claiming this part of the credit to avoid refund delays by attaching documentation covering the five-consecutive-year period.

what you can and cannot deduct as a homeowner

Get your taxes done FREE

Great short Video Explanation of Credit

The rumor several banks have agreed to streamline short sales is true and will certainly make the spanking a light one.  How do I know?  When I inquired why my calls were not being returned, for a few days in October, contacts at BofA told me they were being trained for a new program to expedite…something.

This ‘something’ has something to do with…

• What affect Loan Modifications have on Fannie Mae
• How does streamlining  Short Sales make any sense
• What is a  Shadow Inventory?
• How does Macro Economics play a roll?

Foreclosures are Down

From RealtyTrac.…“November was the fourth straight month that U.S. foreclosure activity has declined after hitting an all-time high for our report in July, and November foreclosure activity was at the lowest level we’ve seen since February,” says James J. Saccacio, CEO of RealtyTrac. “Loan modifications and other foreclosure prevention efforts, along with the recently extended and expanded home-buyer tax credit, are keeping a lid on the most visible symptoms of the nation’s ailing housing market — foreclosures and home value depreciation.”

But!  Loan Modifications are Failing

True, the temporary loan modification program just ended…opening the door for permanent modifications.   That is if the temporary loan mod payment schedules were met by applicants,  Right?   Yes.  That is not what is happening though.   After the inexcusable delays, lost documents and lack of communication borrowers are giving up on this failed theory.   Fannie Mae (may) be looking at a nasty spanking through increased foreclosures if alternatives aren’t implemented.

Shadow Inventory Myth or Fact

Have you heard the term  ‘Shadow Inventory’ (SI)?  The belief that banks have tons of foreclosures?  Keeping them in the ‘shadows’ as inventory?   It’s true but, not the conspiracy many have theorized.  I know of several cases where people are several months past the default deadlines and still have not heard from the Sheriff (meaning they have not been officially foreclosed on in practice).  This is one way a  shadow inventory is created.

Taking into consideration that modifying loans will not help those who can’t afford their payments, unemployment numbers comes to mind,  it makes perfect sense that an expedited short sale process is the best solution.

Short Sales -  The Next Best Thing to a Spanking

Since Short Sales net more money than REOs (foreclosures) it is reasonable to expect banks to promote them by doing… something like this.

Fannie Mae insures many mortgages and subsequently gets spanked for the losses following low net REO sales.

note: Watch for legislation changes next year.   Fannie Mae holds an enormous amount of political  leverage and the mid term elections are coming!

Removing the stigma that foreclosures place on the market, through short selling,  stabilizes prices, reduces shadow inventory and improves the outlook as a whole.   Perfect!  download FHA short Sale Guidlines PDF

Macro Economics…my tiny brain version

Since you have read this far let me create a ‘big picture’ with my tiny brain.    Banks are myopic to the degree that they are in the business to make money.    Looking at Real Estate as being a single issue for the banks,  makes us myopic.

A Real Estate investment is the single largest investment a person will make. When it fails to produce dividends (equity) it affects ones entire financial situation. This is no less true for banks.

Think about it..not only mortgages…they are battling delinquent credit cards, bad car loans, signature loans etc..  All leading to huge losses and fewer potential investors.  The banks see what is on their horizon and are working to prevent it at all ‘cost’ (or loan from the taxpayer).  Better save that for another time, so…

Fannie Mae (may) get a spanking, but it may be one of affection rather than discipline if the foreclosure fears are relieved.  This can ONLY be done through the streamlining of short sales.  Think I am wrong?  Don’t bet on it.

related articles

Only 4% get long term help

Mortgage help coming slow to many

Back taxes Plague Loan Mods

No Jobs!  No Deal!

The purchase of a fixer-upper house is often a catch-22 situation, because the bank won’t lend the money to buy the house until the repairs are complete, and the repairs can’t be done until the house has been purchased. Fixing up your new house is a costly idea in Los Gatos, San Jose and the whole Bay Area, really.

HUD’s 203(k) program can help you overcome this cost obstacle by enabling you to purchase or refinance a property plus the cost of making the repairs and improvements in one mortgage.

Dian Hymer of Inman News suggests “design your offer with a 60 day close and a 45 day finance contingency.”

The FHA-insured 203(k) loan is provided through approved lenders nationwide and is available to persons wanting to occupy the home

The 203(k) loan includes the following steps:

1. A potential homebuyer locates a fixer-upper and executes a sales contract after doing a feasibility analysis of the property with his/her real estate professional. The contract should state that the buyer is seeking a 203(k) loan and that the contract is contingent on loan approval based on additional required repairs by the FHA or the lender.
2. The homebuyer then selects an FHA-approved 203(k) lender and arranges for a detailed proposal showing the scope of work to be done, including a detailed cost estimate on each repair or improvement of the project.
3. The appraisal is performed to determine the value of the property after renovation.
4. If the borrower passes the lender’s credit-worthiness test, the loan closes for an amount that will cover the purchase or refinance cost of the property, the remodeling costs and the allowable closing costs. The amount of the loan will also include a contingency reserve of 10% to 20% of the total remodeling costs and is used to cover any extra work not included in the original proposal.
5. At closing, the seller of the property is paid off and the remaining funds are put in an escrow account to pay for the repairs and improvements during the rehabilitation period.
6. The mortgage payments and remodeling begin after the loan closes. The borrower can decide to have up to six mortgage payments (PITI) put into the cost of rehabilitation if the property is not going to be occupied during construction, but it cannot exceed the length of time it is estimated to complete the rehab.
7. Escrowed funds are released to the contractor during construction through a series of draw requests for completed work. To ensure completion of the job, 10% of each draw is held back; this money is paid after the lender determines their will be no liens on the property.

Dian Hymer of Inman News suggests “design your offer with a 60 day close and a 45 day finance contingency.”

Now,  what are you waiting for?   Call your Realtor and find a fixer..Quick!

Buying the listing is when an agent will do anything to stick a sign in your flower bed, including listing at a higher price just to get you to sign on the dotted line.  I call it,  sticking it to you.  That’s exactly what it is when you consider the fact that your home will see little exposure, sit on the market longer and end up selling for less than you expected.  It happens every time!

Elizabeth Weintraub writes “…Maybe the first agent knows there will be two other agents competing for the listing, so the first agent names an astronomical figure. The second agent, upon hearing the first agent’s price, beats it. The third agent comes in higher yet.”

This is all based on the fact you have already implemented the basic tips to sell your home.

Are you thinking “but, if a buyer offers less than we are asking we can’t negotiate”?  If your home is priced right you will have several buyers considering an offer.  This presents a problem for the buyers, a level of uncertainty that you will even consider their low offer.  Hence, the offers that come will be more in line with the market.  Less serious buyers will go fishing elsewhere and not waste your time.

This salesman ‘buy the listing’ tactic only leads to more work than is necessary. I had a similar experience of my own when I recently sold my personal residence.  I don’t use ‘buy the listing’ tactics but, market conditions led to the same result.    The market was falling and I had to lower my price two times to catch a buyer.  It was like chasing the market downhill.  If I had known the banking system was going to experience such failures I would have listed at the eventual selling price from the onset to avoid the trouble.

In reality, the chance a home will sell in the first few weeks is far greater when it is priced correctly and prepared well.  Sounds intuitive enough, Right?   Go look at some homes for sale and see how little thought is given to home preparation.   This is especially important when considering a short sale.   The sooner you can yield a willing buyer the sooner you can move the time consuming process forward.

Showhomes, a national franchised home stager staged Tracy Truitt’s listing and it sold in eight days.   Tracey said…“I had an almost full price offer within a week of Showhomes’ staging, and a 25% higher offer than the two offers that had come in previously to the home being staged,” Truitt says.

I found keeping my house prepared well, clean and neat, was tiresome after just a couple of weeks.  I am a terrible merry maid.  If I had to deal with a Realtor I would have lost my mind!  I know can do better than some..look at what  these people did.

Each time I made a price adjustment more people called and disrupted breakfast, dinner and quiet family time.  It was unnerving more than once.  Buyers  sense  desperation when you drop your price and lower offers will follow.

You can guard against this by simply stepping outside your bubble and looking at the competition in an unbiased fashion.  This means you will have to forget all the trouble and expense you suffered when you updated and improved your home.  A buyer’s eye only sees your home compared to other like properties that are available.  You must do the same. No one cares if Aunt Clara helped you cook your first Turkey there.

Is this boring yet?

Wake up!  Do a Walk Score or a Megans Law search for your home? How about a Crime Report review?   I will bet my favorite tie that buyers considering your home are.  Think like a buyer!

Following your internet searches and open house viewings you can reasonably determine what your home should sell for. This will afford you the knowledge and understanding to say no to –salespeople-.  Half hearted buyers will resist the urge to make low ball offers and serious buyers will make their highest and best offers.

Would you be interested in learning what buyers complain about most?  If so, please comment and I will provide a definitive list and some ideas to overcome them.

Tips on Appraisals

One in Four Homes Lowered Price

Why do agents take over priced listings

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Image by seier+seier+seier via Flickr

part 2

cont. – Start out on right foot. Trust begets trust. Only hire a Realtor you have every confidence is representing your best interests.  Be realistic and above all forthright.  Remember trust is earned.  The agent with the nice personality or “my friend’s friend”  isn’t the answer.   Every person who has been taken by a schiester says “…but they were such nice people.” Well, of course they were!  You wouldn’t give your money to an obvious ‘Vampire’ would you?

That darn Barry Madoff comes to mind.  Yuk!

Don’t run out and buy a box of  rope of garlic!

Note; refer to this list when considering who you should work with:

• Are they easy to contact?  Are their responses timely?
• Do they provide a list of past clients?
• Can I access a 3^rd party source where I can learn more about them?
• Do they possess the skills and principals required to work for me?
• Does their track record support their claims of success? …more

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“How many months is this going to take?”   This question is being asked with great regularity… too much really.   The answer…It depends on who has the mine.  Period.  If the Listing agent  (who has the mine or short sale) is not proactive then it doesn’t matter how hard your Realtor works or how high your offer is…you won’t find any gold.

Your Realtor is your mining pick.   They need to know how to qualify the listing agent’s knowledge, experience and ability or, at least, be willing to work to help the listing agent make progress with the bank who is ultimately going to approve the short sale and…shine the light on the gold.

A successful gold miner will have a map of the gold mine and know how to navigate it.   Your Realtor of choice will need to have a good map and understand the best way to navigate their way to the gold and extract it.   This map is developed through representing sellers AND buyers of  short sale properties, understanding all the pitfalls  and the best practices to avoid them.

More and more short sales will be coming to the market and,  the best homes and best buys available, will likely be short sales.   This is the market condition reality for the next year or longer according to Banking industry experts and Real Estate professionals based on market statistics and economic conditions.

The extremely low interest rates are bringing droves of buyers out and multiple offers on the best homes are the norm in San Jose as well as Los Gatos and all around Santa Clara County, for that matter.  Too many miners and not enough mines.  You can avoid having to compete with these buyers if you realize they are overlooking the opportunity in front of them.  The Short Sale properties.    Agents are avoiding them because they think  that most of them will never close.    Ahhaa!    The key!   Find other mines!  Be a good miner and have the sharpest pick!

Figure out how much your current home is likely to sell for.
Have your real estate professional conduct a comparative market analysis. “Be realistic about pricing the home so it moves quickly,” adds Sandy Guralnik, a broker with Coldwell Banker United in Charlotte, N.C. This will help you avoid a long gap between when you buy your new home and sell your old one.

Consider the market.
If you have only been in the home two or three years and made little or no down payment, you probably do not have have enough equity to sell at a profit in today’s soft market. You might even owe more on the mortgage than the home is worth.  This is far to common in the current foreclosure heavy market.  On the other hand, if your home has appreciated well, it might be easier to move up to a bigger and better home than ever before!  Especially in Cambrian Park, Los Gatos, and Saratoga.  Cupertino has consistantly bucked the market recently.

Consider your finances.
Your overall debt picture is important if you plan to move into a larger, more expensive home. In addition to a higher mortgage, you’ll likely have higher utility, insurance and property taxes as well. If you owe money on a home equity loan, you’ll have to pay that back when you sell the home, which will eat into your profit.

Get preapproved by a reputable lender.
The lender will tell you how much money they’re willing to lend you, which will tell you how much house you can afford. Then, figure out how much you’re comfortable spending. The two numbers are not necessarily the same.  Your comfort zone should be your guide here.

Determine your long-term housing needs.
Will you be starting or expanding your family in a few years? Will the larger home be as teen-friendly as it is toddler-friendly? Is there a place for a home office if one of you eventually works from home?  With the many economy issues this should play a large part in your decision process.   Not to speak of the inventory that is available today.

Be realistic.
Most people will not be able to move up from a starter home into their dream home. It’s a long-term process that occurs over several moves, says Debbie Wong, a certified residential specialist with Prudential California Realty in San Mateo, Calif. Plus, it’s harder to qualify for a loan if the jump in monthly payments is too big, she says. Not to speak of all the hoops many lenders are expecting you to jump through now.

Preview properties in your target price range and location.
Most importantly does that “Super Foreclosure Deal” really translate into a home. Look to see whether the homes match your trade-up goals.

Get your home on the market.
Moving up will go more smoothly if you are able to sell your home before trying to buy another. For one thing, many Sellers are leery of contracts in which the sale is contingent on the Buyer selling their current home. Foreclosures are held by Banks that are not willing to diminish there pool of potential buyers.  If they accept your offer they will be required to place the home on a pending status and other buyers will be considering it. Finances also are an issue.   Bridge loans to carry you from your current home to the next are almost impossible to get today.

Determine the best time for your move.
If you want to move in the summertime, start your other preparations early enough to meet that goal.

Wallpaper’s return has followed a decline in the popularity of faux finishes, noted Stacy Senior Allan, marketing director for wallpaper maker Thibaut Inc. Maybe one too many badly sponged walls convinced us to leave the wall decorating to the experts.

But like faux finishes, wallpaper adds a dimension that a plain coat of paint can’t, Allan noted. Especially in rooms without a lot of soft surfaces – dining rooms and bathrooms, for example – wallpaper adds softness and a layering effect, she said.

We talked to some leaders in the industry to find out the latest trends in wallpaper, and here’s what’s hot:

Tradition with a twist
Ages-old motifs are still around, but in oversized forms and surprising colors. ”Everything has gone large-scale,” said Paula Berberian, creative services manager for Brewster Wallcovering Co. Familiar designs such as damask and Jacobean prints are being blown up into bold proportions and rendered in unexpected hues or metallics.

The result is a less stuffy look that can work even in modern settings. It can be busy, though, so Lilly Sosic of the Brunschwig & Fils showroom in Beachwood’s Ohio Design Centre said wallpapers with oversized graphics might be best for areas where people don’t spend a lot of time – a powder room, for instance, or a foyer.

Or cover just one wall, suggested Gina Shaw, vice president of product development for York Wallcoverings. Not only is creating a feature wall a returning trend among designers, but it’s also a less costly way to bring interest to a room, noted her colleague at York, director of marketing LeRue Brown.

Sophisticated finishes
Texture adds a third dimension to many of today’s wallpapers. Thibaut’s Allan said improvements in manufacturing technology allow wallpaper to have raised textures and embellishments that weren’t possible earlier.

As a result, many of the new wallpapers enhance rather than dominate a room. ”Wallpaper used to be really ‘pay attention to me,”’ she said. Now it tends to play a supporting yet glamorous role.

Sand and tiny bead accents are popular, as are bits of bling such as crystals and pearls. Metallics are big, too, but don’t be scared away by bad memories of disco-era Mylar. Metallics now are more subtle, often used just for accents.

Eco chic
The world is wearing its Earth obsession on its walls. That means grass and leaf designs are popular, as is grass cloth, a classic look that’s making a comeback. It’s made of reeds, bamboo and other natural grasses, Berberian said, so it fits right in with people’s desire to decorate with renewable materials.

Spa blues and greens are strong from a color standpoint, as are other Earth-inspired shades. Brown remains popular, often paired with brighter colors.

’60s flashbacks
It’s a mod, mod world, at least for the people who missed the ’60s. The bold geometrics, pop art and bright colors that exemplified that groovy decade are in big demand among younger consumers, and that’s translating to wallpaper design.

Because many of the fans of ’60s design are young enough to be decorating dorm rooms or first apartments – or even their tween or teen bedrooms – the look is strong in lower-priced, repositionable decals. The peel-and-stick decals use an adhesive like the one used in Post-it notes, so they leave no residue when they’re removed.

Handcrafting
The renewed interest for handmade goods is apparent in wallpapers, too. Shaw thinks it’s an effect of the uncertain economy, an appreciation for things that are crafted thoughtfully and made to last.

Handmade wallpaper can be pricey, but more mass-produced wallcoverings have the look and feel of hand crafting. Berberian said many have raised inks, which give the illusion of hand-printing. Asian-inspired designs and line drawings or other simple motifs are common, too.

Such wallcoverings often include layered colors and small mistakes that make them appear handcrafted, Allan said.

Global influences
Our well-traveled society has shrunk the planet and brought the colors and designs of other cultures to Western walls. African countries and India are particularly strong influences in wallcovering design and in home decor in general, Berberian said.

You’ll see that in paisleys and ikat designs, elongated geometric patterns originally used in fabrics that have the appearance of having been stretched. Animal prints are strong, too, and you can even find wallpaper that resembles faux reptile skins so closely they almost look and feel real.

© 2009, Akron Beacon Journal (Akron, Ohio).
Distributed by McClatchy-Tribune Information Services.