Schwarzenegger’s New Homebuyer Tax Credit Starts May 1

April 30, 2010 Real Estate News No Comments
Schwarzenegger’s New Homebuyer Tax Credit Starts May 1

Different Than The Previous First Time Buyer Credit

Gov. Schwarzenegger signed Assembly Bill 183, the Homebuyer Tax Credit legislation, into law last week.

AB 183 will provide $200 million for home buyer tax credits, allocating $100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. The eligible taxpayer who purchases a qualified personal residence on and after May 1, 2010, and on or before Dec. 31, 2010, or who purchases a qualified principal residence on and after Dec. 31, 2010, and before Aug. 1, 2011, pursuant to an enforceable contract executed on or before Dec. 31, 2010, will be able to take the allowed tax credit.

The credit is equal to the lesser of 5 percent of the purchase price or $10,000, in equal installments over three consecutive years. Under AB 183, purchasers will be required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).

The previous federal home buyer tax credit was considered a success as nearly 40 percent of first-time home buyers said they would not have purchased a home if the federal tax credit for first-time home buyers was not offered, according to C.A.R. research conducted last year.  It also ran out of tax credits by the end of June 2009, eight months before it was set to expire and just as housing markets appeared to be turning a corner.  Unlike last year’s legislation, AB 183 adds a tax credit for the purchase of an existing home by a first-time home buyer.

AB 183 will help to incentivize first-time home buyers to purchase homes that have been abandoned, foreclosed upon and returned to the lender, or have been sitting on the market for extended periods of time.

What is still to be figured out is the purchase of new construction or previously unoccupied homes as that extends to any buyer, not just first time buyers.

Palo Alto Home Sales = Multiple Offers

Palo Alto Home Sales = Multiple Offers

Every week, we have staff meetings to discuss listings, sales etc. and we are seeing a change in the market that I thought would be interesting to pass along to all of you.  I know you’ve seen me write for the past couple of months that the published stats will start to support what I am seeing on the market.  Here is an example of just one segment of the market as reported in last weeks meeting, and this is only from Alain Pinel.

1. 5 offers received on 2553 Emerson street in Midtown Palo Alto with 3 bedroom, 2 bath, 1784 sf.  Listed at $1,398,000 and went  pending within a week on the market. Top offers went over $1.5M.

2. 4 offers on 2671 Emerson with 4 bedroom, 2 bath listed at $1,648,000, sold to an all cash buyer. No contingency, as is, quick close clean offer.

3. 6 offers on 3250 Murry way with 3 bedroom, 2.5 bath 1548sf, listed at $1,098,000 sold within a weeks.

4. All cash buyer bought 2340 Dartmouth house for its tear down value and will rebuild it. It was listed at $1,295,000 last year. Sold off the market.

5. Approx. 3 offers on 3715 Whitsell with 3 bedrooms, 1 bath listed at $895,000.

6. One all cash offer was received on 3145 Emerson new construction house. Seller rejected the low ball offer.

7. Multiple interested parties are taking disclosure packages for 601 Matadero.  Multiple offers to follow.

The same thing is happening in Menlo Park, Atherton and areas along the Peninsula.

Home Sales Surge As Tax Credit Deadline Approaches

April 28, 2010 Real Estate News No Comments
Home Sales Surge As Tax Credit Deadline Approaches

But What Will Happen After April 30?

New-home sales jumped in March as buyers rushed to qualify for a federal tax credit and realtors homed in on the soon-to-expire credit as a way to ramp up interest.
Sales of new single-family houses jumped 27% last month to a seasonally adjusted annual rate of 411,000, according to the Census Bureau. That was up from the revised pace of 324,000 for February.
The Census estimate is based on a small sample and is frequently subject to large revisions.
Some economists believe the latest report may overstate the increase in sales activity and that the credit is simply moving sales forward that otherwise would have occurred later in the year.
Still, some home builders say foot traffic at developments has picked up in recent weeks, spurred by buyers hoping to qualify for a federal tax credit. The credit is available to many people who sign a contract to buy a principal residence by April 30 and complete the purchase by June 30.
“The tax credit has been a huge boon to the industry,” said Tim Minton, executive vice president of the Home Builders Association of Raleigh-Wake County in North Carolina. He said inventories of unsold homes in his area have dwindled, and “the national builders are starting to ramp up new production.”
The tax credit can be as much as $8,000 for first-time home buyers and as much as $6,500 for people who already have owned a home for at least five consecutive years during the previous eight years. The credit is available for individual taxpayers with annual incomes of as much as $145,000 or joint filers with incomes as much as $245,000.

Lower Your Propety Taxes Now!

April 12, 2010 Real Estate News No Comments
Lower Your Propety Taxes Now!

Property Taxes Being Reduced
Santa Clara County Assessor Reductions Growing

Keep your deadlines in mind if you want to get a review of or appeal their property tax assessment.

The Santa Clara County assessor’s office is one of 10 in the state that mails assessment notification cards to homeowners early every year. This year the notification cards will be sent out to 465,000 property owners on June 23.

The assessor’s office received thousands of requests for informal reviews and reductions which led to a reduction in value of 98,000 properties, which took a total of $19.3 billion off the county’s assessment roll. They believe most reductions will carry over this year, and an additional 30,000 to 40,000 properties will be placed on Proposition 8 temporary assessment relief status, as well.

Homeowners are asked to wait until they receive their notification card before asking for an informal review or appeal. In the meantime, homeowners can gather information regarding the value of their home based on values at the beginning of the year. Remember, in accordance with Proposition 8, the market value of a property has to drop below the assessed value before a homeowner can seek a property assessment reduction. The time to take note of comps begins on the lien or valuation date, which is January 1 of the current year.

Once homeowners receive their assessment notification cards, they have until August 15 to seek an informal review. Homeowners can do this online by going to Homeowners have between July 2 and September 15 to file a formal appeal. Requests for appeals cannot be considered past the deadline.

Each year the county’s assessment roll growth has declined. In 2006, the roll grew 9.6 percent; 2007, 8.3 percent; 2008, 7 percent. Last year, the roll grew by just 0.18 percent. They expect the roll to be negative this year.

My Contact Information

Gary Kurtz
BRE# 01710776

Kathy Kurtz
BRE# 01876966

HOM Sotheby's International Realty
1200 Newport Center Drive, # 100
Newport Beach, CA 92660

949.565.5201 (cell)
949.478.7769 (office)
650.796.5507 (Silicon Valley #)

Contact me now with any questions:

Kurtz Real Estate Group

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